>>> WE ARE ONLY 17 DAYS INTO OUR
NEW YEAR'S RESOLUTIONS FOR 2017.
WHY NOT SET OURSELVES UP TO
TACKLE SOME REALISTIC FINANCIAL
GOALS.
SOME FINANCIAL PLANNER AND
PRESIDENT OF THE SHAKIBA GROUP,
TREVOR IS HERE.
LET'S START SAVING SOME MONEY
AND WHERE IS THE SPOT THAT WE
NEED TO START?
>> WELL, I THINK BEFORE WE EVEN
GET INTO 2017, WHAT MOST FOLKS
NEED TO DO IS LOOK BACK TO 2016
AND BE BRUTALLY HONEST AND
TRANSPARENT WITH THEMSELVES.
AND WHAT I MEAN IS ARE YOU IN
MORE DEBT NOW THAN THE BEGINNING
OF 2016?
ARE YOU STILL LIVING
PAYCHECK-TO-PAYCHECK?
IF THAT'S THE CASE, HOW DO WEA
VOID THOSE MISTAKES AND -- DO WE
AVOID THOSE MISTAKES AND
CHANGING THE PARADIGM.
>> WE'VE BROKEN THESE DOWN INTO
FIVE TIPS.
SO THAT'S THE FIRST ONE.
>> RIGHT.
>> WHAT'S THE SECOND ONE?
>> I THINK NUMBER TWO IS JUST BE
REALISTIC.
AND WHAT I MEAN BY THAT IS IT'S
GREAT TO ACHIEVE GOALS AND GET
THAT MOMENTUM ROLLING.
SO IF YOU'RE MAKING $60,000 A
YEAR AND YOU'VE GOT $40,000 IN
CREDIT CARD DEBT, IT'S PROBABLY
NOT REALISTIC TO SAY I'M GOING
TO BE COMPLETELY DEBT TROY
TULOWITZKI BY THE END OF THE
YEAR.
-- DEBT-FREE BY THE END OF THE
YEAR.
FINANCIAL GOALS NEED A TIME
FRAME AND AN AMOUNT.
MAKE IT'S CUT YOUR DEBT IN HALF
BY THE END OF THE YEAR OR SAVE
5,000 IN YOUR CAR RESERVE BY THE
END OF JUNE -- CASH RESERVE BY
THE END OF JUNE.
>> HOW DO WE PUT THAT PLAN IN
ACTION TO USE A SPREAD SHEET?
AN APP?
I DON'T KNOW.
ASK YOUR WIFE TO KEEP TRACK OF
IT FOR YOU?
>> DO YOU USE A LEGAL PAD AND
WRITE IT DOWN?
>> I THINK ALL OF THE ABOVE.
BUT YOU HAVE TO BE GOING BACK TO
NUMBER ONE, BRUTALLY HONEST.
WHERE ARE YOU SPENDING YOUR
MONEY, CAN YOU SAVE MONEY IN
THOSE AREAS?
CAN YOU FIND MONEY?
ARE YOU EATING OUT TOO MUCH?
THOSE ARE ALL THE TIPS THAT
WE'RE GOING TO TALK ABOUT
PROBABLY IN A LITTLE BIT MORE
DETAIL.
BUT STARTING BEING BRUTALLY
HONEST WITH YOURSELF.
>> SO BEING REALISTIC IF GETTING
OUT OF DEALT IS UNDEROF YOUR
GOALS -- DEBT IS ONE OF YOUR
GOALS, MAKE PROGRESS TOWARD
THAT.
SAY YOU'VE GOT FOUR OR FIVE
DIFFERENT CREDIT CARDS, DO YOU
GO AFTER THE ONE WITH THE
SMALLEST BALANCE OR THE ONE WITH
THE HIGHEST FINANCE CHARGE?
>> IT DEPENDS.
I LIKE TO SEE PROGRESS.
SO IF YOU'VE GOT A CARD THAT
MAYBE DOESN'T HAVE THE HIGHEST
INTEREST RATE BUT A SMALL
BALANCE, I LIKE THE IDEA OF
GOING AFTER THAT AND GETTING RID
OF IT.
NOW YOU'VE GOT FOUR.
CUT THAT CARD UP.
CELEBRATE V. A GLASS OF WINE AND
THEN YOU MOVE ON.
IF THERE IS A CARD THAT HAS A
SUBSTANTIALLY HIGHER RATE, YOU
PROBABLY WANT TO TACKLE THAT
FIRST.
>> WHEN IT COMES T CUTTING
CREDIT CARD DEBT, YOU RECOMMEND
A CASH RESERVE IN PLACE.
WHAT IS A GOOD TARGET FOR US TO
HAVE AS A CASH RESERVE?
>> SO GENERAL RULE OF THUMB IS
THREE TO SIX MONTHS OF EXPENSES.
BUT FOR SOME FOLKS, THEY HEAR
THAT AND THEY SAY THAT'S WAY TOO
MUCH.
AND THAT'S WHAT I MEANT BY
SETTING REALISTIC GOALS.
IF YOU'RE LIVING PAYCHECK TO
PAYCHECK, TRY TO GET TO A
THOUSAND DOLLARS.
AND MAYBE BUMP IT UP TO 2,000
AND 5,000.
SET THOSE GOALS SO YOU CAN
DWAYNE THAT MOMENTUM, ACHIEVE IT
AND -- GAIN THAT MOMENTUM,
ACHIEVE IT AND KEEP MOVING ON.
>> LOOKING BACK AT 2016, YOU CAN
SEE WHERE SOME OF YOUR EXPENSES
WERE AND WHERE YOU COULD CUT A
LITTLE BIT.
>> EXACTLY.
LOOK, I SAT DOWN WITH CLIENTS
BEFORE AND WE TARGETED EATING
OUT OR ALCOHOL.
AND WE'VE BEEN ABLE TO UNCOVER
10, 12, $15,000.
>> COFFEE.
>> GEES, COFFEE.
>> THAT'S A BIG ONE.
>> ALCOHOL ALONE YOU ADD THAT
UP, YOU BUY A ROUND OF DRINKS
FOR YOUR FRIENDS, AND THERE GOES
YOUR SAVINGS FOR THE WEEK.
YOUR THIRD TIP IS THAT WE SHOULD
PAY OURSELVES FIRST.
WHAT DO YOU MEAN BY THAT?
>> IF YOU DON'T PAY THRURS
YOURSELF FIRST, IT'S VERY LIKELY
THAT YOU'RE NEVER GOING TO GET
PAID.
WHEN THE MONEY HITS YOUR
ACCOUNT, YOU'RE ATTEMPTED TO
SPEND IT, RIGHT?
WE LIVE IN A SOCIETY THAT
ENCOURAGES TO BUY THINGS WE
CAN'T AFFORD, TO IMPRESS PEOPLE
WE DON'T KNOW.
AND SOMETIMES DON'T EVEN LIKE.
>> EXACTLY.
>> RIGHT?
BUT LOOK, PAY YOURSELF FIRST.
SO A GREAT EXAMPLE IS IF YOU GOT
A RAISE AT THE END OF LAST YEAR
OR THE BEGINNING OF THIS YEAR,
IMMEDIATELY BUMP YOUR 401(K) UP
A PERCENT OR TWO.
IMMEDIATELY.
DON'T BE ATTEMPTED TO SPEND
IT -- TEMPTED TO SPREAD IT ON
FREFLOUS THINGS -- FRIVOLOUS
THINGS.
>> IT'S TENDING TO PULL MONEY
OUT OF THAT 401(k).
GOOD IDEA, BAD IDEA?
>> IF YOU'RE PULLING IT OUT AND
GET TAXED AND PENALIZED,
TERRIBLE IDEA.
IF YOU'RE GOING TO TAKE A LOAN
AGAINST IT AND PAY YOURSELF BACK
WITH INTEREST, SOMETIMES THAT'S
THE BEST WAY TO DO IT.
BUT FOR THE MOST PART, AVOID IT
BECAUSE REMEMBER, WHEN YOU TAKE
MONEY OUT OF YOUR 401(k), IT'S
NO LONGER INVESTED.
AND WORKING FOR YOU.
>> SHOULD YOU ALSO RIGHT NOW
KIND OF ANALYZE YOUR 401(k),
KIND OF SEE IF I'M MAKING --
SAY, TWO OR 3%.
BUT THE COMPANY IS OFFERING UP
TO 6%.
SHOULD YOU RE-EVALUATE?
>> I THINK 100%.
THAT'S A GREAT POINT.
THE OTHER THING IS LAST YEAR WAS
A CRAZY YEAR.
MARKETS UP, DOWN.
WE ALMOST HIT 20,000 ON THE DOW
IN THE LAST MONTH OR SO.
SO LOOK AT YOUR 401(k) AND
YOUR OTHER INVESTMENTS AND
CONSIDER REBALANCING.
SELLING SOME OF THE BIG WINNERS,
REINVESTING TO OTHER AREAS.
AND THAT'S THE WHOLE POINT OF
BEING BALANCED AND DIVERSIFIED.
>> BEFORE WE MOVE ON TO OUR NEXT
POINT, I DON'T WANT TO DWELL TOO
MUCH ON THE 401(k), BUT IF
PEOPLE ARE WONDERING, HOW MUCH
SHOULD THEY BE CONTRIBUTING?
IS IT A DOLLAR AMOUNT OR
PERCENTAGE?
>> THE FIRST THING IS IS YOU
NEED TO LOOK AND SEE IF YOU HAVE
A MATCH.
IF YOU HAVE A MATCH, THEN YOU
HAVE TO GET THE MAXIMUM MATCHED.
SO AS AN EXAMPLE, IF YOUR
COMPANY CONTRIBUTES 50% UP TO
6%, GIVING YOU 3%, YOU'VE GOT TO
GET THAT 6% IN.
OTHERWISE YOU'RE GIVING AWAY
FREE DOLLARS.
>> GOT IT.
>> THAT'S A STARTING POINT FOR
EVERYTHING.
IF YOU CAN DO MORE THAN THAT,
DEFINITELY DO IT.
>> ALL RIGHT.
YOUR FOURTH TIP IS REBALANCING
DEBT.
HOW DO WE DO THAT?
>> AND I WAS ACTUALLY JUST
ALLUDING TO THAT
BUT REBALANCING NOT JUST DEBT
BUT YOUR OVERALL PORTFOLIO.
>> YOUR INVESTMENTS.
>> WHAT FOLKS ARE TEMPTED TO DO
LIKE ENER DID WELL AFTER
FEBRUARY.
THEY HAD GOOD GAINS THERE.
THEY WANT TO LEAVE IT, RIGHT.
>> LET IT RIDE.
>> THAT'S A GAMBLING STRATEGY.
BUT FOR YOUR INVESTMENTS, IT'S
VERY LIKELY THAT'S NOT THE BEST
PERFORMING AREA NEXT YEAR OR THE
YEAR AFTER.
SO YOU WANT TO REBALANCE, MAKE
SURE YOU'RE STILL DIVERSIFIED
ACROSS ALL SECTORS.
>> IS THAT ADVICE TRUE FOR A
25-YEAR-OLD, A 35-, 45-, 55?
HOW DOES THAT COME INTO PLAY?
>> ABSOLUTELY.
IF YOU'RE OLDER YOU MAY NOT BE
TAKING AS MUCH RISK, BUT IF
YOU'RE 100% IN EQUITIES IN THE
MARKET, YOU WANT TO BE
DIVERSIONFIED ACROSS
DIFFERENT -- DIVERSIFIED ACROSS
DIFFERENT ASSETS.
STAYING DIVERSIFIED IS CRITICAL
AND ONE OF THE FAMOUS QUOTES IS,
IS WHEN YOU'RE DIVERSIFIED,
YOU'RE NEVER GOING TO MAKE A
KILLING BUT YOU'RE NEVER GOING
TO GET KILLED.
>> EVEN IF YOU'RE YOUNGER,
SHOULDN'T YOU HAVE SOME OF YOUR
INVESTMENTS GOING INTO SOMETHING
THAT'S MAYBE MORE MODERATELY
AGGRESSIVE AND NOT SUPER
AGGRESSIVE?
>> II DON'T THINK YOU EVER WANT
TO BE SUPERAGGRESSIVE.
BUT WHEN YOU'RE YOUNGER YOU WANT
TO BE ALMOST ENTIRELY IN
EQUITIES IF YOU'RE IN YOUR
TWREANLTS.
IF YOU HAVE -- 20s.
IF YOU HAVE MORE TIME TO MAKE
THAT BACK UP, YOU'RE FARTHER
AWAY FROM RETIREMENT AS AOPPOSED
TO SOMEONE THAT'S 5 -- ASA -- AS
OPPOSED TO SOMEONE THAT'S 55 OR
60.
IT DEPENDS ON YOUR RISK
TOLERANCE.
>> DON'T BET YOUR ENTIRE FARM IN
ONE PLACE.
>> THAT I DON'T HAVE TO BET
ANYWAY.
>> THAT'S WHY WE HAVE THIS MAN.
TO GUIDE YOU.
>> YOU TWEETED THIS OUT.
AND PROCRASTINATION IS AN ABC
SALUTE WEALTH -- AN ABSOLUTE
WEALTH KILLER.
>> I'M EXCITED TO TALK ABOUT
THIS IN DETAIL, BUT THE TWO
BIGGEST COMPONENTS TO BUILDING
WEALTH, ARE SAVE, SO LIVE BELOW
YOUR MEANS, BUT TIME.
COMPOUNDING INTEREST.
YOU'VE GOT TO GET STARTED AND
THAT'S WHAT BUILDS WEALTH.
DON'T DELAY.
>> THAT'S THE TIP STARTING NOW.
>> RIGHT.
>> START YESTERDAY.
>> DON'T WAIT.
>> EVEN IF IT'S JUST PUTTING
AWAY THE $5 A DAY OR $10,
FIGURING OUT SOMEWHERE.
>> ANYTHING -- IT ALWAYS ADDS
UP.
>> AS YOU MENTIONED, THE NEXT
SEGMENT IS COMING UP.
STAY TUNED, FOLKS, BECAUSE
TREVOR WILL STILL BE HERE AND