I'm gonna give you my four best tips
to get you financial organized,
which everybody can do no matter all shapes and sizes,
ages, that you can do from home,
and we're gonna dive right in.
And step one is to take inventory of your finances.
So Rachel, I cannot tell you how many times
people don't even know where all there money is.
So what I want you to quickly do, Irene--
Yeah.
Tell me biggest financial pieces
that exist that I should know about,
and we're just gonna take that inventory.
So what are you're assets?
So my house is probably my biggest asset.
You're house, what else?
Jewelry.
Jewelry, okay.
So, it sounds like you have some fancy jewelry,
that sounds good.
What other assets do you have?
Checking accounts-- Checking and savings.
Got it, checking and savings.
Okay, so what we would do for everybody at home
is you would literally make a list
of all of the different things that you have
that you have that are your financial assets.
And Rachel, I cannot tell you how many people
have the bank note that is on a piece of paper,
or the old IRA that they actually didn't roll over,
and we just literally need to get them all in one place.
So after we do this, we dive into step two,
which is create a digital money management system.
We're recommending the app PersonalCapital.com.
It's a free app, you can download
and as you can see in this next image,
it actually allows you to track all your cash flows too.
So, you link your accounts-- Oh wow, look at that,
it even has charts
like MSNBC! It's so great.
Exactly. (laughing)
And it's really straight forward,
it shows you where you're money is going every single month,
and you can, I call it a money minute, you take one minute,
you log in, you see what's happening with your finances.
So after we do that, then the second thing that we do
is we create an email address.
And then you take all of your assets
and of the places those exist,
and you have all those bills go to one place.
Rachel, nobody reads their bills.
I actually was going through my own finances last night
and found a mistake on of my bills
where I've been overcharged $89.
Wow! Every time you check,
there will be extra money,
so I want people to read their bills.
So we do that, and then the final thing that we do
is we wanna take all of your really important documents,
and, guys, technology is amazing,
you can take a screenshot of it,
and this like things like a state wills trust,
and what we want you to do is digitize them all,
and then put them in a safe place
or give them to a family member or sister etc.
so that they're all there,
and that is basically your digital management system.
You can only close one credit card a year, not more,
because it actually dips your credit score,
but we just want you to rain in the amount of places
that you have banking because think of them as live wires.
Yeah. That's a
direct place that somebody have--
Exactly.
could have identity theft against you.
And then the final thing is know your numbers.
So for everybody in the audience, everybody everywhere,
we care about three major numbers, and here's what they are.
The first is know your net worth.
Rachel, you know, planning with families all the time--
Absolutely. It's really straight forward
but most people don't know it, so it's what are your assets,
which is what we put up here minus any debts,
so things like you're mortgage, or car payments,
and then what is that number.
Everybody should know this, this is your true net worth.
Step two is making sure
that you know your second most important number.
For us, this is actually knowing your take home pay
as a household.
So, people tell me, and I'll use a good round number,
our household makes $100,000,
and I am the fun person
who always person has to remind you no it doesn't.
Uncle Sam takes a lot of that,
it's actually more like $65,000.
Right, you have to look at what you're net is.
Not what you think you earn
but what you actually get to keep
of what you earn. What you actually,
it goes to your bank account.
Exactly. So the really important
thing here is just starting
to think about your life in post-tax dollars,
and it really makes a big difference.
And then the final thing we want everybody to know
is their credit score.
So there's tons of great sites,
Annual Credit Report and CreditKarma.com that we love.
And the take away here is
your credit score is your only grade
that matters after you leave college, period.
Right. It's the only one,
and it ranges from 300 and 850,
and I want you to be above 760,
and you just need to always know this number.
So after that,
we now have a full digital financial managing system,
and you now can like stand in your own truth
and tackle your finances
so that you can start to focus on that cool business.
(applause) Yeah, thank you.
This makes sense?
Totally makes sense.
(crowd cheering) (crowd applauding)