Welcome back to wake up with, I'm do.
And now to stretching your dollar setting yourself up for
financial stability can be tricky if you got some bad
money habits. So what are some things you shouldn't
spend money on here to give us some dos and
don't is certified financial planner and wealth strategist. Rebecca
Walzer. Rebecca. Welcome. Thanks for having me
here. We're so happy to have you. Let's
start with everyday spending. What types of purchases should
people avoid? Well, it's the impulse purchases,
right? If you are on a budget and you
know that you need to stick to the budget.
Um I think, you know, Ramsey has a
very good, don't go to do the, the
$5.05 bucks for her coffee, make it at home
. But honestly, I don't agree with any financial
advice that says avoid luxury. You have to have
luxury in your life. If that's what your goal
setting is about. If you care about achieving certain
things, don't just be like a luxury is frivolous
. Therefore, I'm not going to build and,
and buy luxury, but make it a part of
the budget and then stick to the budget what about
credit cards? People keep in mind when it comes
to those interest rates. Well, first of all
, a lot of people move balances for introductory offers
of 0% interest, but they don't read the fine
print. They don't see that it's only a six
month introductory offer. And then if they transfer a
balance that, that, that offer of 0% ends
either six months, 12 months, 18 months.
And now they have this high 24% rate that's applying
to whatever balance they transferred. So if you're going
to, you know, use some kind of,
you know, strategy like that to sort of pay
off high credit card debts faster. That's great.
But make sure you're very on top of the fine
print and you really do set a budget and a
payment plan together when you're doing things like that.
Rebecca, I do want to talk to you about
emotional spending. Let's say you have a bad day
at work. You fight with a loved one.
We've all treated ourselves to a new outfit, maybe
a night out. How can that impulse purchase affect
our finances in the long run? Because we've all
done it well. First of all, I'm not
gonna knock retail therapy. I think we're both very
much uh uh addicted to re therapy. So,
no, it is a drug. It's psychological.
It does help us with a pick me up and
let's face it. If you're not going to be
able to enjoy spending money in your life, then
why are you going to continue to make it?
We have to allow ourselves to have that enjoyment.
That's the whole point, money in and of itself
is just a means to something else. So if
we sit here and degrade ourselves for allowing us to
have those, those feelings, then we're, we're
just not, we're missing the boat. You have
to budget with that in what about when it comes
to where we live, renting or buying? This
is a very difficult question for a lot of people
. Which one is the better one, in your
opinion? Well, obviously building assets is way more
superior from a financial perspective than simply, you know
, throwing something away. So think about like building
putting money into, let's just use insurance as an
example, you could buy a house insurance policy,
you never make a claim. All that money is
just gone to nowhere or you could buy a different
insurance policy that you're building actual value and, and
that money gets stored up. So it's a preservation
thing, but I would say that the market is
certainly oversold right now or over bought right now.
The prices are too high because rates have been too
low for too long. And so we're seeing now
Hanna really a pricing adjustment across with the higher interest
rates. And so I think now is not the
time to buy necessarily if you're gonna actually buy,
I'd wait. I have about a minute left with
you. I want to ask about other investments.
Are there some things we shouldn't do when we think
about investing? I think that you have to have
a plan first. No, I, I mean
, you'd be surprised. I sit down and one
of the first questions I ask is how much cash
flow do we need to maintain lifestyle? What lifestyle
level are we living and how much cash flow does
it require to maintain that lifestyle? People can't even
answer that very, very first basic question. How
are we supposed to build a plan and achieve goal
? If we don't even know what the goal is
? Let's define the goal first and then we can
reverse engineer and make it happen in about 20 seconds
. I don't want to rush this question, but
it's an important one we talked about. Don't,
what about do do, do the plan make a
plan? Know that when you're 20 your life will
go so much easier if you actually have created the
plan fast if you start in your forties? Yeah
, that's ok. Let's make a plan. I
love that. Thanks to certified financial planner, Rebecca
Walzer. Really great advice.