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We Can All Save Another $100 | Series 7.6
Episode 611th April 2022 • Enjoy More 30s: Family Finance • Joseph P. Okaly
00:00:00 00:11:18

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A bit more savings is almost always possible and what that means for your future self!

  • Goal statement: I better understand how impactful it can be to consistently push my savings just a little bit further. (01:58)
  • If your kid gets sick and needed a medicine costing $100 a month, you would figure out a way to afford that right? That means that you can also figure out a way to pay yourself another $100 a month. (06:43)
  • So when we take that original $100 a month scenario, and we do the same thing, but assume that you increase your payments every year because you make more every year so it should go somewhere towards you. (08:39)

Quote for the episode: "The more you can keep pushing that upwards in small incremental feasible amounts, the greater that exponential long term number can grow to. Do that for yourself." (09:17)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Transcripts

Voiceover Audio:

Welcome to the Enjoy More 30s Family Finance

Voiceover Audio:

podcast. The only podcast dedicated to making life more

Voiceover Audio:

enjoyable for young families by hitting on the financial topics

Voiceover Audio:

that tend to weigh on us, stress us out, and distract our focus

Voiceover Audio:

from simply enjoying life.

Joseph Okaly:

Hello, and welcome once again to the Enjoy More 30s

Joseph Okaly:

Family Finance podcast. We're talking to you today about the

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next episode of this Raising Your Investment Mindset series

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that we've been focusing on. Now, if you remember, this is

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not about how to pick stocks better. This is not about how to

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do any specific you know trading or timing. This is about trying

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to help you reframe how you may view the scary unknown that is

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investments as a whole and therefore be able to utilize

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them in a more constructive way, better reach your goals, and

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make life more enjoyable because of it.

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As always, if you like what you're hearing, please make sure

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to subscribe, follow us on Apple podcasts wherever you listen.

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Star clicking, review leaving, it really really helps us reach

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all those other young families out there that are just like you

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that need help just like you.

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Last week, we discussed how winners and losers so to speak

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in our portfolios, so the pieces or funds that do really well or

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do really poorly, are temporary more times than not. So "every

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dog has its day" kind of thing. And so how to best emotionally

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and more importantly practically deal with that. So if you

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haven't checked that out yet that episode, definitely do that

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soon.

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Today's episode though, is titled We Can All Save Another

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$100. Me too. Everybody out there can do that. Where we're

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going to discuss how a little bit more is almost always

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possible and just how far that little bit extra just a little

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bit can take us. So the goal for today's episode, so the if you

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can say this by the end of the episode, then you have succeeded

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statement is "I better understand how impactful it can

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be to consistently push my savings just a little bit

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further." So "I better understand how impactful it can

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be to consistently push my savings just a little bit

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further."

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For those people out there just like me who have ever tried

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getting into a new exercise routine, pushing yourself

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consistently could sometimes be let's say a bit of a challenge.

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Maybe a lot, a lot of a challenge more times than not.

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Getting up early to exercise, it seems like such a great idea the

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night before, right? "I'm going to wake up. I'm going to feel

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great. I'm going to get into it." But that's nighttime Joe

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speaking and nighttime Joe doesn't have to worry about

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getting up. Morning Joe makes quite the convincing argument

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every single morning it seems like you just sleep, you know, a

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little little bit longer.

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In January 2018 though, my sister Lauryn passed away just

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29 years old. During that year, I stopped playing soccer. That

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was my lifelong thing and for basically how I got the majority

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of my exercise was through soccer. And just injuries

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building up so it felt like it was no longer fit for me. And so

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I was looking for a new challenge. So I came across the

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runs that take place in physically in Disney World. Run

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Disney. And saw that there was a half marathon set up through the

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parks that happened to be the day before my sister Lauryn's

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one year anniversary of her passing. So to me, it seemed

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like a sign from Heaven. This is clear confirmation that this is

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the next thing that I should take on. Now I researched of

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course what it took. I'm very organized in that way. I spoke

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to other people I knew who had done it, and I set a schedule to

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make sure I would reach that required 13.1 miles of distance,

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ya know, physically be able to complete that. Now while I

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didn't exactly spring out of bed every morning, I wasn't super

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pumped and excited the way nighttime Joe would make me feel

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like I was going to be the next day. The race was in January. So

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training in New Jersey during November and December. Those

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weren't too pleasant. But overall, I was able to get up

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the majority of the time because I had a clear goal of what I

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wanted to accomplish and knew that the feeling of completing

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that goal would just be tremendous right? Now when I hit

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the mileage for the first time when I was practicing, I mean I

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When it comes to investments, pushing yourself just a little

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still remember rounding that that last corner. I felt like

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Lauryn was with me. I was actually looking up speaking to

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her that I was doing it rounding that last leg of the run. So

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January comes, I completed the run in Disney. I got injured so

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I was a little bit slower than I was anticipating but I did

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complete it and having my wife Lauren and my daughter Avery

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there to greet me at the end was just this fantastic, you know

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momentous like indescribable type feeling.

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bit more can make all the difference. It can lead us to

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the end, where we feel fantastic, where we feel

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tremendous. If I had not kept to my schedule training for the

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run, I wouldn't have been able to make the distance required

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for the race. There's no way I would have been able to do it.

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There was a goal date, though. So I had, you know, a time

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period, I knew what was at stake, if I didn't do it, you

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know? Many of us out there would like to retire early. Some

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people just love their jobs. I'm one of those people, I love my

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job. And that may not be the goal. But all of us definitely

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want to have that flexibility down the road, to choose our

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options, whether it's early retirement or something else. We

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want our options to be open to us as early as we can. We want

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to feel that tremendous feeling of having the freedom to do what

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will make us happy as early as possible. And saving just a

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little bit more, that can do a lot more than you think to get

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into that goal that we all have.

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First, if you think of your credit card statement, does it

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vary every month? Is your credit card statement exactly 100% the

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same every single month? Of course not right? Nobody's is.

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Some months, it may be a few 100 or even more higher or lower.

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This means that your budget has some flexibility built into it.

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There's some amount of flexibility in your plan. If

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your kid gets sick, your dog has to go to the vet, you handle it

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right? You don't take out a second mortgage. You figure out

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how to get that extra $100 out of your budget. Now, most people

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use this flexibility to allow for additional spending, not for

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additional savings. A vet bill, a doctor bill, those are

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additional spending that we're being flexible about. If your

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kid gets sick and needed a medicine costing $100 a month,

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you would figure out a way to afford that right? That would

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not even be a question, it wouldn't be a problem. That

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means that you can also figure out a way to pay yourself

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another $100 a month. If you saved an extra $100 a month for

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the next 30 years until retirement at just 8% growth,

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you'd be at almost an extra $150,000. Money that you

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probably wouldn't even miss $100 a month, you probably would not

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even miss it but you're definitely going to be super

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grateful for an extra $150,000 down the road. Would an extra

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$150,000 allow you to do what at retirement? Retire a few years

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earlier? Take a dream vacation around the world? Buy a sports

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car that you've always wanted to have? You know it'd be something

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significant though, right? And that math is linear. If you can

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come up with an extra $200 a month, now that's an extra

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$300,000 extra in 30 years with those same assumptions. Again,

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money that you probably wouldn't even notice.

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Again, credit card, my bill goes up and down by more than $200 a

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month. If your car lease went up by 100 bucks, you probably

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wouldn't lose too much sleep over that right? You need a car.

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This is the new model. Three years later, okay, it costs a

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little bit more, that's how it goes, I'll figure it out. How

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about you need to pay yourself. You need to treat yourself with

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that same high level of respect, that same high level of need

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that same high level of attention. You need to give that

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to yourself too.

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This doesn't even count the fact that your income goes up over

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time. So let's go back to those same examples. Let's say every

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year your income goes up 5%, on average. So right now, let's say

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you can afford $100 a month. Next year, it should be $105 a

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month. The year after that would be like $111 a month, and so on

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and so forth. So when we take that original $100 a month

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scenario, and we do the same thing, but assume that you

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increase your payments every year because you make more every

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year so it should go somewhere towards you. Now that comes out

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instead of to about $150,000. It's over or almost I should say

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$260,000. So same $100 a month just growing a little bit every

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year 5% like you do. $260,000 now after 30 years with those

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same assumptions. So if you can do $100 a month now, don't stop

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there. $105 a month is even better. $115 a month, the year

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after that even better. The more you can keep pushing that

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upwards in small incremental feasible amounts, the greater

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that exponential long term number can grow to. Do that for

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yourself. If you could afford $100 a month I'm guessing $105

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is not going to break the bank.

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So as we get to the end of this episode, let's circle back

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around to the goal statement for today. If you can say now "I

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better understand how impactful it can be to consistently push

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my savings just a little bit further" then you have succeeded

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in the main point of this episode. So congrats. Now get

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out there, myself included and just save a little bit more

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towards you.

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Thanks as always for tuning in today and join us for next

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week's episode called Bingo, You Probably Own More Than the

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Market, where we're going to cover how what you see on TV

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described as the market very likely isn't what you actually

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own in your entire portfolio.

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So overall if you're able to implement what we covered today,

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then that's just fantastic. Less to worry about is great. More

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focus on enjoying life, also great. If you're wanting help

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with these things, though, or you have questions you need help

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in clarifying, check out the ASK JOE section on the show's

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website. EnjoyMore30s.com that's EnjoyMore30s.com. Until next

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week. Thanks for joining me today and I look forward to

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connecting with you again soon.

Voiceover Audio:

The conversations on this show are

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Joe's opinions and provided for general information purposes

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only. They do not constitute accounting, legal, tax, or other

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professional advice for your specific situation. You should

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always seek appropriate advice from a financial advisor,

Voiceover Audio:

accountant, lawyer, or other professional before acting upon

Voiceover Audio:

any content or information found here first. Joe is affiliated

Voiceover Audio:

with New Horizons Wealth Management LLC, a branch office

Voiceover Audio:

of TFS Securities, Inc., and TFS Advisory Services an SEC

Voiceover Audio:

Registered Investment Advisor, Member FINRA/SIPC.

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