- 7 months ago
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08:33Hello? Tiffany?
08:35Yeah. Yeah. Can you hear me?
08:37Can you hear me?
08:38Yeah, I can hear you.
08:39I can't hear you.
08:40Ah, are you kidding?
08:44Do you want me to leave you and come back in?
08:48Tiffany.
08:49Yeah, I can hear you.
08:51I can't hear you.
08:53I can see your audio.
08:56Let's see.
08:58Are your headphones now into your phone or to here?
09:02No.
09:04No, I haven't touched anything.
09:06I'm not on my phone.
09:06Leave the stream.
09:07Leave the stream and come back in.
09:09Okay.
09:10All right.
09:11Leave.
09:42All right, Tiffany?
09:45Can you hear me?
09:47I'm not getting sound out of you.
09:49What is going on?
09:52Nothing.
09:53I didn't touch anything.
09:54Can you hear me?
09:55Yeah?
09:55Yeah, I can hear you.
09:59Should I restart my computer?
10:01Just joined and rejoined.
10:03And did your headset turn off?
10:06No, it's the same I've always used.
10:10Hold on, Tiffany.
10:11Can you hear me?
10:12Yeah.
10:13Okay, I got you.
10:14We're good.
10:14Oh, you can hear me?
10:15All right, yeah, yeah.
10:16Okay.
10:17All right.
10:18All right, yeah.
10:18All right, yeah.
10:24All right.
11:27Hey, hey, hey, it's me, Tiffany, the Budgetnista Aliche, your favorite financial educator.
11:38And today I am going to help you get your money straight during these uncertain times
11:44between the pandemic, market crashes.
11:48What's a sister to do?
11:49We're going to talk about it today.
11:51So I don't know if you know, but I used to be a school teacher for over 10 years.
11:55So we're going to class.
11:57That means I want you to get a pen, a pad, a piece of paper, something to write on, because
12:02you're going to want to take a lot of notes.
12:04Here's what's going to happen.
12:05We're going to talk recession, the do's and the don'ts.
12:08And we're also going to talk stimulus.
12:10Are you going to get money?
12:11Are you not?
12:12What should you do with that money?
12:13And then I'm going to take your questions because I know you have a lot of them.
12:17You ready?
12:18Let's set.
12:19Let's go.
12:20All right.
12:20Let's talk about recession.
12:22A recession is an economic decline, a consistent economic decline for six months or more.
12:30And so you might hear people say we're in a recession, but it's hard to call it just yet
12:34because it hasn't been six months.
12:36But that's what they're estimating.
12:38So when a recession is pending or if we have a little bit of warning right now, there's
12:44some things that you can do.
12:45So let's go over some of the things you can do.
12:47Got your pen ready?
12:48Pull it out.
12:49One, I want you to create a noodle budget.
12:52So what does that mean?
12:53I need you to drop down and get your noodle on, girl.
12:55Hey, drop down and get your noodle on.
12:57So a noodle budget is this.
12:59It is your baseline budget.
13:01Remember back in the day that you had to eat ramen noodles because you didn't have much
13:05money for anything else, meaning that you really only took care of your necessities.
13:10You should have your noodle budget on deck.
13:12So in case you have a loss or a decline in income, you could drop down and get your noodle
13:16on and live at your noodle budget.
13:19Two, call your service providers now.
13:22They're a little bit overwhelmed, I'll admit, but almost everyone that you pay money to, your
13:27utilities, your mortgage, your insurance places, everything, almost everyone you pay
13:32money to has some sort of program in place because they understand we're in unprecedented
13:37times with COVID-19 and how that's affected your income.
13:41So share something like my income has been negatively affected as a result of COVID-19.
13:46What program do you have in place and how do I apply for it?
13:49So do that.
13:50Three, reduce your debt payment.
13:52So I am a girl who loves to be debt-free.
13:55I'm currently debt-free.
13:56I'm sitting in my debt-free house.
13:58I have an investment property that's debt-free.
14:00I paid off my student loans.
14:02I don't have a car note.
14:04I don't like debt.
14:05But when a recession is potentially looming, it's more important that you have a strong
14:11cash position, meaning that it's more important that you have more cash and I would worry less
14:16about debt.
14:17So it doesn't mean that you shouldn't pay your debt, but I would honestly be paying the
14:21minimums to my debt and putting the rest in an online-only savings account because an
14:27online-only savings account is going to give you more interest and I would not open a checking
14:33account at that online-only savings account.
14:35So that way, the only way for you to get your money is to transfer it back to your normal
14:39bank at your normal checking account.
14:42And that's about a 24-hour wait.
14:44So it makes your money inconvenient when you use an online-only savings account and inconvenient
14:50money gets saved.
14:51That's a tweetable.
14:52If you won't quote me, you better tweet me at the Budgetnista.
14:56Four, I want you to prepare to invest.
14:58So if you're someone whose bills are great, if you're someone who has a good amount of money
15:03in savings, then prepare to invest.
15:05So preparing to invest just means do you have your brokerage account?
15:09Is it open?
15:10Preparing to invest means that is the money transferred there?
15:13Have you taken a class or a course?
15:15Have you reached out to your financial planner, financial advisor?
15:18Preparation is key.
15:20Then five, assess your current job.
15:23So what does that mean?
15:24Do you think that your current job is pretty stable?
15:28Are you an essential worker?
15:29If not, then that means it's potentially on the chopping block and I want you to move
15:33accordingly now.
15:35If you think that you might not have a job in a little while, then I want you to make
15:39a move now.
15:40Should you be looking into applying for unemployment, especially dropping down to your noodle budget?
15:45So just assess your current income and your current job because at this point, nothing's
15:48really guaranteed.
15:50Now let's talk about what not to do.
15:52Do not go running to the bank and pulling out all of your money.
15:56Sis, there's something called FDIC insurance.
15:58It's not 1930 when they didn't have this insurance and if the bank closed, your money was gone too.
16:04No, FDIC insurance will protect your money up to $250,000 per account per bank.
16:13So if you have more than $250,000 in that account, holla at me.
16:18No, sincerely, if you have more, then certainly transfer it to another account so that all of
16:23your money is protected.
16:25Don't go pulling it out.
16:26Also, don't go pulling money out of your 401k if you have more than 10 years to retirement.
16:32What we forget sometimes is that recessions are a natural part of our economy.
16:38They happen every 10 years or so.
16:40The last recession happened 2008, 2009.
16:43It is now 2020.
16:45We've been late.
16:46Recession was coming.
16:47COVID-19 did not cause a recession.
16:50It was merely like the switch that flipped it on.
16:52And so what that means is, is that with recessions, declines come inclines, right?
16:59So we will go up and we will go down.
17:01Think about a roller coaster.
17:02You can't continuously go up on a roller coaster forever.
17:05Eventually it comes down and that's what we're experiencing.
17:08And you can't go down forever.
17:09Eventually it will go up.
17:11And so within the next 10 years, we will go up.
17:13So if you pull your money out of your retirement account now, you're going to lock in your loss.
17:18Right now it's a loss on paper, not in real, real, real life.
17:21You're going to lock in your loss.
17:23If you have more than 10 years to retire, we're going to go back.
17:25And so will your retirement account likely.
17:28So don't pull money out of your retirement account.
17:30I also too, during these times, I don't want you to co-sign.
17:34Now I'm not a big fan of co-signing anyway, but especially now, and here's why, because
17:39someone who is normally very responsible might lose their job through no fault of their
17:44own.
17:44So you might co-sign for your sister who's never late on a bill.
17:48And then during the, during this time that we're living in now, she loses her job.
17:52And then that means you are equally responsible for that bill.
17:56I also don't want you to get any new debt.
17:58People have been asking, should they buy a house right now?
18:00And I'm like, eh, I would wait to see how this pending recession is going to, um, to,
18:06it's going to really shake out because I really rather you have cash on hand for one of two
18:11reasons.
18:11One, having more cash on hand means that if you do lose your income, you will be able
18:16to continue to, to survive.
18:18And two, having cash on hand means you'll be able to take advantage of what happens during
18:23recessions, which is that you'll be able to invest in things that you'll be able to pay
18:29pennies on the dollar for things that cost more money.
18:31Home prices tend to drop during recessions.
18:35So does the stock market.
18:36We've seen it drop already and it rebounded, um, somewhat, um, but I don't want you to
18:41lock up your money in debt if you are able not to, and five and what not to do.
18:47Don't take your income for granted.
18:49I know, you know, when I was a school teacher before I was the budget needs to during the
18:53last recession, I just knew I couldn't lose my job.
18:56There's just no way.
18:57And, um, I did my whole school closed and I took my income for granted.
19:01And so I wasn't quite prepared.
19:03So don't take any income for granted.
19:05I don't care if you're a police officer.
19:07I don't care if you're a doctor or a nurse, nothing is for certain.
19:10So be mindful of that.
19:12So y'all good on recession.
19:13Let's talk about what you really want to talk about stimulus.
19:16All right.
19:17So let's talk about stimulus.
19:18So the, the president signed a $2 trillion stimulus package and people are geeked because
19:25they know that there's some money that's potentially coming to them.
19:28So what does that mean for you?
19:29An estimate $3 billion of that stimulus package of that $2 trillion stimulus package.
19:35It's going to come to taxpayers, um, directly as cash or direct cash deposits, whether it's
19:41a cash, whether it's a check or a deposit in your direct deposit account.
19:46So let's talk about when you're going to potentially get that money.
19:49One, you're looking at about mid April because treasury secretary, Stephen Munchin, I love
19:56his last name, Munchin.
19:57Um, he shared like about three weeks and from when he said that it's about mid April.
20:03So you're expecting it.
20:04And here's the thing.
20:05It is going to be contingent upon your adjusted gross income.
20:10So what is that?
20:11I want you to look at your, the last, your last, um, tax filings, right?
20:15Pull out that paper.
20:16It's probably a 1040 or 1040 easy.
20:18Look at line eight B that is your adjusted gross income.
20:24And so when you look at that number, you're going to ask yourself, am I single ready to
20:28mingle?
20:29And if you're single and you make under $75,000 according to line eight B you qualify for the
20:36max, which is $1,200 and ask yourself, how'd you get your money?
20:40Last year, if you got your money to be a direct deposit, it likely will come that way.
20:45If you got a check last year, physical check and likely it will come that way.
20:48If you don't use that direct deposit anymore, just assume you're going to get a check.
20:52So under $75,000, 75,000 or under as a single full amount, $1,200.
20:59If you are a married couple, double that.
21:03If you guys make under 150 collectively as a married couple and you, you file jointly,
21:09then you will get, um, up to $2,400.
21:13Okay.
21:14Now here's the thing.
21:15If you're single and you make over $99,000, you know, according to your adjusted gross
21:21income, you're not going to get anything.
21:23So anything below 99,000, there's something to receive.
21:27There are all these, um, stimulus calculators online.
21:30Do your Googles and find a stimulus calculator to see if you're between 75 and 99, what you'll
21:35receive, and if you are a couple filing jointly, then anything over earning over anyone earning
21:41over, um, $198,000, then you're not going to get anything because they're like, you're
21:47good, right?
21:48You might not feel like you're good, but you're gooder than most.
21:51I know good is not a word, but we're trying to have a little levity here.
21:54Um, so then, so let's talk about who else is going to receive the baby.
21:58So your child under the age of 17, they have to be under the age of 17, um, via the tax
22:05year that they're using to, um, determine your, your stimulus.
22:09You don't have to do anything.
22:10The IRS and the federal government are going to look at your taxes together and determine
22:14and give you your money.
22:15If your child is under the age of 17 via the tax year that they're looking at.
22:20So they're going to be looking at 2018 at 2019 taxes.
22:24And, um, so if you haven't filed your 2019, they're going to look at 2018.
22:29If they haven't, if you haven't filed your 2018, what you waiting on, you want this money
22:34and all.
22:34Okay.
22:35And so they're going to look at that.
22:37And if your baby is under the age of 17, um, then you are, um, potentially qualified to
22:43get $500 per child.
22:45I have not seen that there's a limit on how many children.
22:48So if you have a lot of kids and they're all under the age of 16 and under, then you should
22:53be getting $500 per child.
22:55Now here's where it gets a little sticky and people are upset because if your child is 18,
23:0119, 20, up to 23, and you're claiming them as a dependent, you're not going to get money
23:06for that child because they're past the age and your child, unless they are a student or
23:13unless they have filed taxes for themselves and they're not dependent on you, then, then
23:18they're not going to get money either.
23:20So let's talk about as we move into the actually.
23:21And so, you know what, a question people ask me all the time, is this check going to be
23:26taxable?
23:27No.
23:28And is your 2019 refund going to be affected by this, um, by this check?
23:33No.
23:34Um, and let's talk about who's not getting money.
23:36Cause I think people really want to know who's not going to get any money.
23:39So one, I'm sorry, but if you owe back child support, you are either getting nothing or
23:44reduced.
23:45Um, so I'm not clear whether they're going to put that money towards your back child support,
23:49but just be on alert that it's not happening.
23:52Children.
23:53This is who's not getting money.
23:55Children who are over the age of, um, uh, like I said, 17, 18, 19, 23 children who are
24:01dependents, but are over the age of, um, of, of 16 are not going to get a check for themselves
24:07or their parent.
24:08Um, if you are a adult and you are dependent, like, so there are people who are adults, which
24:14seems kind of unfair, but I don't make the rules that adult dependents are not getting
24:18money and you are not getting money for the adult that you've claimed as a dependent.
24:23That's what it says thus far, um, non-residents.
24:26So if you don't have your green card, you're not getting a stimulus check.
24:30Um, individuals, like I said, who make too much or not, I don't want to say too much individuals
24:34that make over a certain amount, not getting a stimulus check and people who did not file
24:39the 2018 or 2019, um, tax return.
24:43So you need to do it, right?
24:45So folks have asked, but it needs to budget needs to, what would you do with the money?
24:48Let's talk about it.
24:49What I would do is first things first, I would pay my bills.
24:53So let's just say my bills are, you know, I was just a little bit behind because maybe
24:58recently I lost my money due to, um, I lost my income due to coronavirus.
25:02Um, so I would pay those bills because you want to make sure that those bills are paid
25:07up.
25:08And so ask yourself this, but I would not go overboard.
25:11I would ask myself if I don't pay this bill, will I be unhealthy or will I be unsafe?
25:15So I want you to really prioritize the bills that will help you to maintain your safety and
25:20your health.
25:21So, because you know, $1,200, it, you know, it might not be enough to cover all your bills.
25:26So focus on those first.
25:27So let's just say bills paid good girl.
25:29I'm good.
25:29What next?
25:30Then I would say now it's time to really lean into your savings.
25:34Remember we talked about that savings, having a strong cash position is going to be key because
25:40if you were to lose your income, you want to lean into your savings.
25:42Ideally, the goal is six months of your noodle budget save.
25:47So six months of your baseline budget save.
25:50So you're like, girl, I'm good on savings.
25:52Okay.
25:53Moving right along then.
25:54Then I, although I told you, I don't want you to go too heavy on, on paying off debt.
25:59You do have an opportunity.
26:01If you have savings and your bills are up to date, you have an opportunity to lean heavily
26:05into paying down your student loan debt if it's federal.
26:08So what does that mean?
26:10The federal government is suspending student loan payments and interest until September 30th, 2020.
26:18That means they're not going to take your money up until September, 2020, September 30th, 2020,
26:23but it doesn't, you don't, you don't have to, well, you don't have to pay it, but you can.
26:28So normally when you give money towards your loan, some of it goes to the loan, that's the principal.
26:36And some of it goes towards your interest.
26:39That's the fee that whoever you owe is charging you because they lent you money.
26:43What the federal government is essentially saying, you don't have to pay interest or the principal,
26:48but if you do give us money, all of it is going to go to the principal.
26:52So you have this unique opportunity that every dollar you send to them is going to go towards your student loan.
26:56So I would maybe look into that.
26:59Then also too, if you're like, I'm good on bills, I'm good on savings.
27:03I don't have student loans.
27:05Then I would, honestly, I would look to start investing, lean into finding a financial planner, financial advisor,
27:13and I would look to invest in, if you don't know anything else,
27:16you can use that money to increase your money that you're putting towards your 401k.
27:20Maybe you have a retirement account, an external retirement account.
27:24Maybe you don't.
27:25If you don't have a retirement account or maybe you do have a retirement account and they're already funded
27:30and you're like, I just want to invest for wealth, which is always a good thing.
27:35Remember these three words, target, date, fund.
27:39Target, like, you know, bullseye, date, like, oh, you want to take me out?
27:44And fund, like, let's have some fun with a date.
27:47Target date fund.
27:49And a target date fund is merely just a fund.
27:51It can be a retirement account.
27:52It doesn't have to be.
27:53There are a big major, you could Google, like, who has the best target date funds.
27:57Use your Googles.
27:58It's your friend.
27:59And what you're going to look for is what year do you want to pull that money out?
28:04Is it your retirement year?
28:05Is it another year that you want to pick?
28:07Target date funds usually roll out every five years.
28:10So you'll see target date fund 2030, 2035, 2040.
28:14You get the drift.
28:15And what I like about target date funds is that you don't have to be savvy with your investment.
28:20You choose a fund, put your money in every pay period like a savings account, and the fund will rebalance itself every year for you.
28:28The closer you get to your target date, the more conservative the funds are invested because the fund understands you're about to take your money.
28:36So when you're about to take your money, your funds should be conservatively invested because you don't be out here wilding, and then the market is going up and down, and you're invested in risky investments, and you lose your money right before you're about to pull in.
28:48The target date fund knows this and adjusts accordingly.
28:51And that's why I like target date funds.
28:53Tell a friend, tell a friend.
28:54So, yeah, I know that you guys have a ton of questions, and I think that I just want to make sure that you understand some of the other stimulus things that they have available to you.
29:10Like right now, if you apply for unemployment, there are some resources available in that you can receive up to 39 weeks of unemployment.
29:20That's about 13 weeks more than the average state is normally a lot.
29:26And also, too, the government is doing this federal boost up until July 30th, where they're giving you an additional $600 a week, although people are applying for unemployment in record droves.
29:37And it's a little frustrating right now, so you might have to wait online for a long time.
29:41You might have to call and wait for a long time, but it's worth it if you're needing the help.
29:47And what's so great about unemployment right now is that normally, you know, unemployment is pretty strict about who can apply, but now they're letting independent contractors apply for unemployment.
29:57Furloughed workers apply.
29:59Gig workers apply for unemployment.
30:01Freelancers, that really wasn't there before.
30:04So if you're like, oh, normally I can't apply, you likely can apply now.
30:07You definitely want to lean into that.
30:08When it relates to your mortgage, if you have a federally backed mortgage, that's like an FHA loan or VA loan, then your mortgage company cannot, for the next 120 days, they cannot foreclose upon your property.
30:25And also, you can apply for assistance with your mortgage company up to six months and an additional six months if you need it of not making any payments to your interest or your principal.
30:37So six months of no mortgage payments, but you're wanting to make sure what does that look like for the back end?
30:41Because some mortgage companies are allowing you to tack it onto the back end and some mortgage companies are making it all come due.
30:48So you want to make sure that what your mortgage company is doing, even if you have a private mortgage company, I've definitely heard that they're giving up to three months of non-payment, but then it comes due after three months.
30:59So it's like, so instead of paying monthly, now all of it is due at the three month mark.
31:04And I think that's ridiculous.
31:06So you want to make sure that when you are looking and reaching out for help, asking those important questions, like if I'm not paying now, when is it due?
31:15What does that look like?
31:16So like I said, there are all of these resources in place, but I know you have a ton of questions.
31:21So I'm actually going to pull out, they sent me these questions on my trusty phone.
31:26So I'm going to pull it out and read some of your questions and answer them for you.
31:31Okay.
31:31So I already explained, oh, somebody asked, can you please explain the stimulus package?
31:37Is everyone eligible?
31:39Who is and who's not?
31:40And how long before I received them?
31:42I explained already who's eligible, your income amounts, and you're receiving it about three weeks, mid-April, and you don't have to pay taxes on them.
31:52And it's not going to affect your 2019 income tax either.
31:57Two, I'm being told to stretch my dollars right now, but without any pay, I don't have anything to stretch.
32:05Which bills can I skip without hurting my credit?
32:08How do I get letters to give me extension?
32:10So here's the thing.
32:11I need you to woo side and understand that there's no such thing as skipping a bill and not hurting your credit.
32:16I get it.
32:17I have been there.
32:18My credit in my 20s was like in the 800s.
32:22I, during the last recession, I had to skip bills.
32:25I didn't have it.
32:26My credits fell to a 547.
32:28Guess where I'm at now?
32:30802.
32:31Credit is one of those things that you can rebuild.
32:33I wouldn't concern myself with that unless you were trying to buy a house soon, which I'll probably hold off on.
32:38So what I would focus on if you don't have income coming in is paying the bills that you not paying them will leave you unsafe or unhealthy.
32:48So make sure you get your medication.
32:51Make sure you're paying for where you stay.
32:53Make sure you're taking care of your groceries.
32:54I would be dropping down and getting my noodle on ASAP.
32:58The worst thing you can do is when a financial crisis is arising is to wait too long to get frugal.
33:08People will be like, oh, I'll probably get a job in the next month or a few weeks.
33:11So until then, you need to drop down immediately and get your frugal on.
33:16You need to be cutting off any subscriptions, any membership, anything that is not essential until you replace that income and you need to apply for unemployment ASAP.
33:27Because like I mentioned before, you will be able to receive unemployment for an average about 13 weeks longer than usual.
33:34Also, you might be eligible for that $600 federal weekly boost to your unemployment, which will be tremendous.
33:41So in how you get your lenders to give you extensions, they're giving out extensions like lollipops right now because they get it.
33:48It's a pandemic.
33:49It's known.
33:50Just call.
33:51Call and ask what resources do you have available for me?
33:55I need them.
33:56And call right away.
33:57So what are three most important things we should be doing now to prepare for the recession?
34:01Said this already, boo-boo.
34:03So most important things to prepare is getting frugal, saving, saving, savings, and getting frugal, saving, savings.
34:12I'm trying to think of third most important for me.
34:14Honestly, I'll be preparing to invest if you have dropped down and got your frugal on and you do have savings.
34:21The number one thing is a saving, saving, savings, but preparing to invest to me would be the third.
34:27Four, all right, do you see any E4C rent mortgage relief based upon the shutdown?
34:32Absolutely.
34:32I actually wrote it down somewhere because it's a lot.
34:36So I mentioned earlier that for the, so there's something called the mortgage relief for homeowners.
34:42And like I said, it requires homeowners with federally backed, well, if your loan is federally backed, like I said, FDA, FHA, VA loan,
34:52then there is, there's something there for you.
34:55If you have a conventional loan, then you have to call your lender, but they're under no federal obligation to assist you.
35:04Although most of them are offering some sort of assistance.
35:06And like I said, there's a foreclosure memorandum where you cannot have your house foreclosed upon for the next, I said, I'm sorry, at least the next 60 days.
35:15I think I said 120, so at least the next 60 days.
35:18And then also too, if you are a renter, your landlord, if your landlord has an FHA loan or a VA loan or a federally backed loan,
35:26they are not allowed to evict you for the next 120 days.
35:30That's where I got the 120 from before.
35:31So yeah, there are some things in the works.
35:35Let's see.
35:35Is now a good time to buy stocks?
35:37Good question.
35:37If so, do I recommend these stocks?
35:39Should have said this before I open.
35:41I am a financial educator.
35:44I am not your financial advisor.
35:45I am not your financial planner.
35:47So what does that mean?
35:48That means you need to lean into your accountant, your CFO, your financial advisor, your financial planner,
35:55that you, I'm just someone online being helpful.
35:58I'm your financial girlfriend and I'm here to be helpful.
36:02But for you to take this information and to then vet it through the financial professional that you are paying.
36:08Okay.
36:08In other words, sue your grandma.
36:10Anyway, it's not a good time to buy stocks.
36:13So I'm not going to tell you what stocks to buy because, sis, you're not getting me hemmed up.
36:17But it's always a good time to invest.
36:20But the key to investing is typically unless you're trading.
36:25Investing is long term.
36:26It's a long term strategy.
36:28And trading is really like kind of getting in and out of the market to make money now.
36:34So is it a good time to invest?
36:36It's always a good time to invest.
36:38Is it a good time to trade?
36:39Maybe not.
36:40If you have not taken trading courses, if you have not practiced with a practice trading account, they're available.
36:47I think there's one, my friend Tila, who has this company called Trade Your 9 to 5.
36:52She recommends one called Think or Swim.
36:55Think or Swim.
36:56They have a free, you could do it like a free full trading account where you could practice.
37:00Now is not the time to lace up your sneakers and jump into the all-star game.
37:06And you just learned how to play basketball.
37:08Now is the time to work on the fundamentals.
37:10So indeed, yes, investing now, I mean, for long term, it's always the time.
37:15And if you are like learning how to read charts, if you've been following companies, investing in long term companies is really the way to grow solid wealth.
37:25So I would say, yes, it's a good time to invest.
37:28But is it a good time to buy stocks?
37:31It's going to be up to you.
37:32Like what's your risk tolerance?
37:33Because the market is up, the market is down, the market is up.
37:36And if you don't know how to invest, you're definitely going to lose money.
37:39What else?
37:40What tips do you have for borrowing against your 401k?
37:44Here's the thing.
37:46I'm not a big fan of borrowing against your 401k, but I am going to share with you what the federal government is doing, which I don't know if this is the greatest idea, but we're here now.
37:55I say don't borrow against your 401k unless you are hungry or homeless, meaning that it would have to be dire, a dire situation for you to borrow against your 401k because truly it is your younger self's job to look after your older self.
38:12What does it mean?
38:14It means one day, God willing, I will be old.
38:17And so I've already named my older self.
38:19Her name is Wanda and Wanda is sassy.
38:22So I can just imagine Wanda sitting on that porch, you know, like just minding everybody's business but her own because she don't have no real business.
38:32And so what is your old lady name?
38:34Let me know.
38:35So it is my job to look after Wanda because Wanda is old.
38:40Imagine me expecting that Wanda is supposed to pick up the slack for myself now.
38:46That's not fair.
38:46I am young now, you know, and I am able to put in the work to save a little bit more, to put in that effort, to wake up a little earlier, to go to bed a little later, to do the work now because it is your younger self's job to look after your older self.
39:04Tweet it, quote it, send it to me.
39:05And so I say all that to say that when you pull money out of your retirement account, you are essentially going in your grandma's self's purse and taking money.
39:14She don't like that.
39:15So let's not do that.
39:16But if you must, so there is a memorandum that that was added to the CARES Act.
39:22So this is what the stimulus package is tucked into and that if you've been diagnosed with COVID-19 or spouse or family member, or you've just been negatively affected your income by this virus, that you can take up to $100,000 out of your 401k, basically your tax advantage retirement account.
39:42So that's like an IRA, a Roth IRA, a 401k, a 403b.
39:47And you can take it out penalty free.
39:49What does that mean?
39:50Because typically, if you are not of retirement age and you take out your money, not only do you have to pay tax on that money, but you also have to pay a 10% penalty.
40:01So let's just say you pull out $10,000 or just a full $100,000.
40:06Let's just say you have $100,000.
40:07Normally, they would be keeping $10,000 of that $100,000 as a penalty.
40:13But they have waived that penalty, but you still would have to pay taxes on that amount pulled out.
40:21Well, not if it's a Roth IRA, but you would still have to pay taxes on that amount pulled out if you don't pay back that money within three years.
40:30You have a three-year window to pay back that money.
40:32And if you don't, then you're going to have to pay taxes on it because that money, they're assuming, you know, with your 401k.
40:38Remember, they take that money from you before you actually get your paycheck.
40:43So the way a 401k and a traditional IRA, an individual retirement account works, is that your money is taken before you're taxed on it.
40:53And so they're like, we never taxed this money, so we need to tax this money now.
40:58All right?
40:58So that's a good question.
40:59Let me see, let me see, let me see.
41:02Any recommendations to generate cash now?
41:05Well, I mean, I don't know what you mean by generating cash.
41:09So there are definitely some, like, I know, like, Amazon is hiring.
41:13You know, there are online programs you can work for, call center.
41:18A friend of mine just got a job doing that.
41:20But also, too, if you are searching for additional income or you just need income in general, then there are definitely programs available.
41:28So there are, there's unemployment, like I mentioned.
41:31I'm trying to think, I know I wrote it down somewhere.
41:33There are unemployment benefits.
41:36There are also, of course, I can't find it because I got so many things.
41:41Oh, I know off the top of my head.
41:43Employment benefits.
41:45There are also food programs tucked into this CARES Act that you can lean into.
41:50There's also family leave that you can lean into, paid sick leave.
41:55So I'm assuming that's what you're meaning.
41:57And if not, then, yes, looking for jobs online.
42:01I mean, it's a little crazy for everyone and everyone is running to unemployment.
42:04But I also would be looking to hone my skill set and to see how can I pivot.
42:09That's going to be the word for 2020.
42:10So I saw this online.
42:11I thought this was excellent.
42:13It was an influencer.
42:15Her name is, like, Olo, Olo Ski, I think her name is.
42:18And she's got, like, the blue, beautiful, like, weave that she normally wears.
42:22So she said, hey, if you're a stylist and you normally work in a salon, you know, we can't go outside right now.
42:30So what are you going to do for income?
42:32Here's a pivot.
42:33Why not post on social that you will do a wig refresh, right?
42:36All the girls are wearing wigs now, right?
42:39Everybody got their 22-inch, 26-inch.
42:41I don't know the inches because I have locks.
42:43So you can, if you were a stylist, you could pivot and say, you know, I can refresh your wig, wash, style, cut, whatever, for a certain amount of money.
42:54So do you see how that is a pivot?
42:57So I would be leaning into my skill set and asking myself, how can I pivot?
43:01If I was a teacher, you know, these parents are having a hard time.
43:05So if I was a teacher, is there a way maybe I can offer my services digitally to parents?
43:10Like, can I do morning circle time if I'm a preschool teacher in charge for that?
43:16Can I do tutoring, online tutoring?
43:17Because, like, I have my bonus daughter.
43:20She's 13.
43:22She's going to be heading into high school next year.
43:25I mean, God willing, I don't know what's going to happen.
43:27And we're worried about, you know, what is she going to do about math and science and all these things that she's going to need to know.
43:33So we're looking for tutors for that.
43:34So I would pivot and figure out in this new order, in this new world order, how can I make an income?
43:42Now is really the time.
43:44So many businesses are created during down in economic times.
43:49So many.
43:50Example, myself.
43:51I started the Budgetnista during the last recession because I could not find a job, but I did know how to do a few things well.
43:58I was a good teacher and I was good at my money.
44:01So I started helping people little by little, $50 one-on-one, then $75.
44:06Then I started doing speaking engagements and I wrote books.
44:10And then I started an online school, the Live Richer Academy.
44:13And I just recently wrote my first children's book, Happy Birthday, Molly Moore.
44:17And so, but you see how I've built on top of the thing I knew how to do, teach and financial education.
44:23And I have built more and more things on top of that.
44:26So it's possible to pivot.
44:28And I encourage you to do so.
44:29We all have skill sets that other people would pay for.
44:32Lean into that and learn to monetize those skill sets.
44:36Somebody asked, what's a noodle budget?
44:38Again, your noodle budget is if you had to eat ramen noodles.
44:43If you had to eat ramen noodles, what does that look like?
44:46You know, what is that?
44:47And not literally eat ramen noodles because I post this online and sometimes I'm like the socials.
44:51I'm like, I don't mean literally ramen noodles.
44:54Figuratively, if you had to cut all the way down, what does your budget look like?
45:00So maybe your normal budget with the mortgage and the kids and extracurricular activities and hair done, nails done, everything did is $5,000 a month.
45:09Let's just say that's how much your life costs you normally.
45:13But your noodle budget, if you cut out all the excess, is $4,000 a month.
45:19Now, one, you should never be living at the max.
45:22And I don't really recommend living at the lowest either unless tough economic times call for it.
45:29So if you're like, you know, right now, my job seems pretty secure.
45:34So instead of living at $5,000, it's still pending recession.
45:38I'm going to live at $4,500, right?
45:41But I lost my job at, you need to be at that $4,000.
45:43You need to be at your noodle budget.
45:45You need to be at your baseline.
45:46So that's what your noodle budget is, your baseline budget.
45:48It's just a fun way to drop down and get your noodle on, girl.
45:52Am I able to work from home?
45:54Oh, I am able to work from home, another question.
45:56Um, because of this time of social distancing, she's getting her salary.
46:01Awesome.
46:02I'm not spending as much on gas, lunches, and not doing any shopping.
46:06Should I save, invest the extra money?
46:08Or should I save or invest the extra money I'm saving each pay period?
46:13Great question.
46:15So first I want to, so it sounds like your bills are up to date.
46:18So that's awesome.
46:20Now, here's the question.
46:21Do you have six months worth of noodle budget saved?
46:25If you do, then I would be investing.
46:29Um, if you don't have six months of noodle budget saved, honestly, I would put that money
46:34toward my savings in an online only savings account, like I mentioned earlier.
46:39And I would, that's where I put that money.
46:41Now, let me explain what the, the four factors you should look for when you're looking for an
46:46online only savings account.
46:47Cause people ask me, there's a great website called magnifymoney.com.
46:53Magnify, I have a little bit of a list.
46:56So sometimes people are like, what's she saying?
47:00Magnifymoney.com.
47:02And so, uh, magnifymoney.com rates online banks, um, and they give them like grades.
47:07So you're going to look for a, cause don't nobody want to see bank.
47:10Okay.
47:10Um, so you're going to look for a bank that has an A and you're going to look for a bank
47:14that's FDIC insured, because for obvious reasons, if that bank closes, you want to have access
47:19to your money.
47:20You're also going to look for a bank that offers the highest interest rate.
47:24It's not great right now because interest rates have been slashed, but still.
47:28And you're also going to look for a bank where the deposit requirement is low, low, low, low.
47:36So sometimes banks will have a deposit requirement of like $10,000.
47:40Tried it.
47:41So you're going to look for a bank, maybe the deposit requirement is like a dollar, $2, maybe
47:45even zero.
47:46So what that means is that it doesn't cost hardly anything to open it.
47:49And it doesn't cost a lot of money for you don't have to maintain a high balance to get
47:54that interest rate.
47:55So you want to make sure of that if you do those four things, then you'll find the best
47:59bank and you're, you know, like I said, open up an online only bank account and I would
48:03put my money there.
48:04It's critical that just because you don't spend money, I need you to understand.
48:09It doesn't mean that you are saving money.
48:12Saving money means not spending it and then putting it somewhere.
48:16You see that second part?
48:17It's important.
48:18Not spending it.
48:20Part one, putting it somewhere.
48:23Part two.
48:23So I would, you know, that's really important.
48:27I want you to do that and then link your online only bank to your regular bank, your brick
48:32and mortar physical bank.
48:33Link the checking account from your regular bank to your, the savings account from your,
48:38your online only bank savings account.
48:40You don't want to open up a checking account at your online only bank.
48:43Speaking of banking, I feel like I should break down for you the three types of banking
48:48institutions I suggest that we all get cute with.
48:51Okay.
48:51So one, get cute with your regular bank.
48:54That's good.
48:54Like you want ease of checking.
48:56You want no matter where you go in the country that you can hit up your big bank.
49:00We all know, know the names of the big banks.
49:02I'm not going to say them because they don't give me no money.
49:04Um, so big banks, right?
49:06So have that for, for convenience.
49:10Banking institution number two, online only bank.
49:13I don't save that man money really at my big bank because big banks don't give you any money
49:19to save.
49:20They give you a piece of piece of piece of a piece of a piece of a penny.
49:24And I'm not even joking.
49:26So you like, you know, your interest rate might be like 0.01%.
49:30What?
49:31What?
49:32That doesn't make no sense.
49:33So I'd rather save my money at a, at a online only bank where at least I get a penny, two
49:38or three.
49:39Okay.
49:39Um, and then two, I want you to have the third financial institution that I suggest
49:45is a credit union.
49:47Here's why.
49:48And credit union is a, typically they're nonprofits.
49:52And what that means is that they don't need to make high profits in order to have a successful
49:58business.
49:59So they get to, to, to pass that savings onto you when you're looking to borrow money.
50:03So if I was borrowing money, I would not borrow money typically from a big bank.
50:06I would be looking at a credit union.
50:08They have credit unions for teachers, for janitors, for Google credit union in your area.
50:14Sometimes they have credit unions based upon where you live, what you do for a living, you
50:18know, your, your ethnicity, you know, I've seen credit unions for like, you know, Armenian
50:23credit unions.
50:24And so I suggest that you like get yourself a credit union, get it now before you need
50:31it.
50:31And I suggest that, um, that's where you look first when you're looking to borrow money
50:35for a house, a car or any of those things.
50:37Those are the free, the three financial institutions that I suggest.
50:41Um, I hope this was helpful.
50:43I hope you got a little, you know, all the tea, no shade when it comes to recession, all
50:48the tea, no shade when it comes to stimulus.
50:51And you feel good about that.
50:53Um, I hope that you feel strong.
50:55Um, and I want you to know that economic ups and downs are a part of the economy.
51:01It's a part of life and I'm always here to help.
51:04I am Tiffany, the budget Nista, your favorite financial educator.
51:08If you need more assistance, you can find me at the budget Nista.com.
51:13You can also find me at, um, I am the budget Nista on all the social platforms.
51:18So Instagram, Twitter, um, Twitter, YouTube, Facebook.
51:24I'm the budget Nista.
51:25And especially, especially, especially, I will encourage you to, because in times like
51:30this, three things are most important, knowledge, access, and community.
51:33And I provide all three for free in my private Facebook group called dream catchers live
51:39richer with the budget Nista.
51:40And there are over 400,000 women just like you who work together collectively on their
51:45finances, 24 hours a day, seven days a week.
51:48It's just free assistance and we all can use it right now.
51:51So hopefully this was helpful and I will see you in these internet streets.
51:54Okay.
51:55Bye.
52:18Is this supposed to be my social security number?
52:34Because that's not it.
52:34No, that's actually the amount you owe for your four years here at CalU.
52:38Student loans have skyrocketed.
52:41I am on a strict bologna and cup of noodle diet for the next rest of my life.
52:46But Freeform and Essence want to help.
52:48We're paying off $150,000 in student debt and sending the winners to Essence Fest.
52:54So before you go here.
52:56College, who needs it?
52:58Go here and enter for your chance to win.
53:00Spread the word.
53:16Hi, this is Reverend Al Shopton.
53:39I am so godly proud that National Action Network has partnered with the World Central Kitchen
53:49to provide prepackaged food to people during this coronavirus pandemic.
53:59Faith without works is a dead thing. People don't just need us to pray for them, we need to serve
54:06them. And what I'm excited about is when they came, worked with our leadership in New York,
54:16and then went into New Jersey with Rev. Steffi Bodney and former Governor McGreevy and went
54:24from North into Irvington with Rev. Amir. This is blowing up to say that we want to be of help.
54:34So check out what Nan is doing along with this partnership, because we've got to realize that
54:41as people are shut down, they still need to eat. And some of them don't have to wear with also.
54:47Giving them prepackaged, checked out food is our way and our partnership to make things happen,
54:56even in a pandemic.
55:10We'll do it together.
55:24On to L'Anmin We'll probably go to L'Anmin We'll probably be κά 125 frames per week,
55:27but we'll be right back.
55:30And we'll be right back.
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