Maximizing Savings and Financial Planning for the Jewish Community with Chaim Tauber

rarely do I say you got a cut an expense almost never welcome to the let's talk business podcast a project of the PEX group gain valuable actionable ideas from the world's top Business Leaders to help you take the next step in your business journey and now here is your host Manny Hoffman coming to you from the PEX headquarters in Brooklyn New York this is the podcast for No Nonsense advice to help you learn grow and lead today I'm so excited to welcome our guest k t Kim shares invaluable insights on setting clear financial goals long-term planning and budgeting especially in the face of today's high inflation and living costs we explore the psychology of using credit cards and debit card spending particularly with en large families and among frequent Travelers tune in to hear of real life success stories and Rapid Fire advice on impactful books and personal aspiration this episode promises transform your financial life with practical wisdom and proven strategies for responsible spending and long-term savings get ready to be inspired and empowered to Achieve Financial Freedom with expert advice without further Ado here is my interview with K tabber now before we get to the full interview I want to ask you for a favor if you enjoy this episode please share with at least two friends you'll help them get to Financial Freedom and learn so much from this episode and maybe they'll get hooked on this podcast and learn from all the other guests on the show thank you [Music] you K thank you so much for joining me on the let's talk business podcast Hi how are you good so first of all you know how how long I've been after you um to schedule listen to you and the reason for that is um most people are used to the guest on the show speaks about business growth uh personal development and we also sometimes bring on people speaking about Finance but usually it's related to business finance and understanding numbers and so on and so forth however with the climate and the economy what's out there and people are suffering and inflation and people's personal budgeting is becoming a bigger issue and when I'm saying a bigger issue it's not only because um just they can't cover their own their their personal expenses but once a person gets in the rabbit hole of of running around all day all week all month just to cover in the basics it takes away their head from doing anything else so it's a very important part of the growth of a person on the on the personal growth and ultimately on the on the family growth and ultimately on the business as well whatever they do should they be our employer should they be employee they can focus because they're running around covering their budget so to speak you are throughout the years I've seen people praise the work you do and the work you've done with them on the personal side and helping people um create that Financial Freedom and ultimately understand what what that needs to look like on up every every person depending on their budget so I figured it's time to bring you on to discuss a couple of those um a couple of those fundamental topics that you're very passionate about and our I know that our listeners will will enjoy a lot and hopefully adopt a lot of what we're going to be discussing today in their everyday life okay so let's start um how you got into the space it's not something that is a you wake up as a kid and then you dream as a somebody that's starting off something and saying you know what my profession will be helping people in their financial um in their financials so tell us a little bit the backstory for our listeners to get a better understanding of how you got into the space in the first place so it happened by accident I would say or just I had a friend that complained that hey I can't cover my month I earn more money than you in debt I have credit card debt at the time I didn't even realize the dangers of credit cardit cards and he just couldn't cover his bill he had told me that remember a couple of months ago when you were by me for shabas and I hosted that chabas meal I still didn't pay it off and I'm paying interest on that chabas meal so I offered to help him I took a couple of weeks until we decided yes I look into his Finance it's to the topic of one's finances how much they earn where they spend but then he begged me and I helped him we made a plan of him being able to become that few within 12 months 3 months later he was dead free and then I just spoke to the next guy about finances and living responsibly saving for the future saving up to buy a house or an investment property and then another friend and another friend I started talking about helping out just my friends until people I didn't know started reaching out hey can you help me as well and that's how it slowly but Surly turned into a business got it so when you sit with someone and discussing the finances um where's the first place you start um and and usually are those people that know they have a issue or they know they're just drowning and they're all over the place we start first with our financial goals what is it that you're looking to accomplish in our meeting and what what is it that you're looking to accomplish with your financial life we create a long-term plan even if someone's currently in Deb I don't stop by okay Let's help you become debt free it's about building a bright financial future achieving Financial stability First Financial Freedom later and being able to accomplish everything that you want to accomplish even if you think that it isn't attainable in most cases it is and we work towards getting that so I want to start with the question that's probably on everybody's mind um everybody listening to this um would want to ask you is if the numbers don't add up which means is the cost of living is so high inflation is so high a a bag of grocery Goods is mighty as expensive this is the income I'm making for the last couple of years yes I got a couple of arrays here and there it just doesn't add up how could you like how do you make it work what's the magic Source it isn't Magic it's just that we have to make it work we have no other choice so by writing it down by having it in a clear budget and seeing this is my income this is my expenses when you have it in front of you all of a sudden you see that many of the expenses that you think that you need all of a sudden hey I don't need you think that you can afford all of a sudden you see hey I don't afford I can't afford it so perhaps we should go away with it for the time being we start finding of other ways to make the budget work we look at s other sources of revenue in order to make it work for some people it's easier some people we find the solution immediately and other people it takes a couple of months but there's always a solution now in terms of in terms of you mentioned before about credit card and I know that you are very vocal about the topic of credit cards I know in the in the secular World Dave Ramsey is known to have um that policy and speaking about very vocal about speaking about credit cards in general what is it the issue of credit cards that you know if you speak to every j u person I'll say you know what I love using my credit card I earn points I earn this so on that and ultimately I could gain 30 days 60 days depending on when the purchase is and so on and so forth what is the main issue from your lens that you're seeing with people using credit cards I'll start with what what most people think the issue is most people think that the the biggest issue is the interest and the late fees and people say hey look I don't have any late I've never in my life paid any interest so I'm good and I actually believe that the interest is the best part of credit cards because it wakes people up 0% APR cards are way way worse than interest credit cards the main problem of credit cards is that you end up spending more than you otherwise would have you mentioned points when you spend on credit cards you get one up to 2% in cash back in points and rewards the statistic is the statistic shows that the average American spends 7 to 12% more on a credit card than on a debit card and it just spends easier and that's not true to our community in our community with human to large families constant we go travel to to the country in the summer you um to we mentioned Sim large families and everything else it's probably closer to 30 to 40% that people spend more on the credit card than on a debit card it isn't that their budget is 30 to 40% higher because the mortgage and rent is included the car isn't included in that equation necessarily but it's things that you just wipe you spend more probably around 15% um the monthly expenses whether it's Amazon shopping Walmart all the other all the random purchases take out buying ready food and then there's the annual expenses that with a credit card hey look I can afford my Kal and take a family trip take a midwinter vacation and all the other expenses that with a debit card wouldn't have happened or would have happened on a way lower level would you say it's it's a mindset u meaning to say is it like let's say you mentioned the you know a a family trip do you think is if I put it on my credit card I don't pre-plan exactly how much the cost will be and therefore whatever it is at door I just pay versus if I spend it in a debit card I'm much more I have a mindset to understand okay how much will this trip cost or is it the actual purchase because we're we're not because there are all kinds of people yeah we're not talking about the Reckless person that rake up his credit card um um you know without without any understanding of how he's going to cover it we're talking about even the responsible person if you feel the statistic is they're going to be spending more but what is it is it the planning of it or is it the actual transaction it's the actual transaction is the impulse at the purchase is hey can afford it I want it and um let's just do this swipe I can tell tell you a thousand stories of people that words made a difference to them I remember this one guy he told me that he we started the meeting he came with his wife we started the meeting he said by the way before you start I got I just come came back from vacation paid for J by points I don't want to discuss credit cards I want to continue living on credit cards I asked him okay sure just one question if you don't mind do you feel like you spend more on a credit card than on a debit card and he told tells me no I don't I told him okay let's move on around a half hour later into the meeting he leans over to his wife tells her a secret they start counting with their fingers and then he tells me okay so first of all we just realized that there's a $500 on certain expenses that run monthly on the credit card for the past three years that on the debit card we would have stopped it so that ended of itself is $118,000 over the past three years and then he came up with with with another $5,000 in expenses on the spot and that's what he was counting the thousands of dollars that he that he spent just because hey I had money he had $220,000 in his account he walked through Duty for you and picked up a $1,500 watch that's still in the back and you never opened it with a debit card with the money going out of your account even though the person can afford it he wouldn't have made that purchase that's what he came back saying and we see that every day my friends and I we went to Israel on a trip and the one person that spent on a debit card found themselves staying spending $1,500 more than the other of us that spent on a debit card oh wow so so you're saying that the impulse buying and the buying patterns of those people because they have the credit card and they feel okay here's here I might have a return later and the here might might return it this is I might uh maybe I want it I don't need it versus the debit card purchases are made because you know the money is leaving the account immediately correct it's human nature got it now is there instances that you do feel that using a credit card is helpful for financial stab ility for personal use yes I don't think so now I have a credit C I actually have two cards my wife has one we keep our cards open for our credit one of the arguments is hey I need to build my credit I keep my cards open and I use it every January for a $5 swipe and pay it off immediately just to keep the card active yes once a year is good enough I get a question a lot so we use that once a year what I also do is whenever I travel I spend the entire trip on debit card but we take along the credit card in case the car inal or sometimes the hotel in some instances um requires a credit card in many cases I check out that A's budget hurt and use a debit card but in some cases if you fly with a oneway ticket or some car rentals in Israel I remember I had that they do require a credit card afka so I take it along and I swipe just the car in just whatever is required on the credit card and even if someone has a Chase um debit card that charges 3% foreign transaction fee that 3% on your trip to Israel or wherever you are the 3% is cheaper than what you'll be spending on in access to your in access to your trip had a been on credit card so it's a good deal hey listeners are you struggling to create beautiful looking proposals is it a hassle every time you need to prepare a quote or proposal for your clients is collecting signatures still a manual process well it's time to upgrade to pandadoc at PEX we use pandadoc for all our proposals employee documentation and so much more it saves us time keeps everything organized and our documents look incredibly professional with customizable templates real-time collaboration and E signatures pandadoc turns creating documents into quick and easy steps plus it integrates with so many other tools streamlining your workflow and boosting productivity try pandadoc today by visiting px. c/ pandadoc and start your free trial trust me it's going to be game changer for your business that's pte x.p da do o obviously there are people that that would counter that and say you know what I I've been living with credit cards paying as you said without any late fees without any interest and I've been having healthy uh budgeting you're saying for those people could be they have the means they have the Avail you know the capabilities of having their extra spend but not necessarily they're not spending more right I have a friend that a millionaire he just switched from debit from credit to debit and he says that during his switch you realize that he's overspending by approximately $155,000 a month an extra spending because it's on the credit card and as his switch he said hey look look I can afford it but now I'm saving $180,000 a year other the people that say that are either people that can afford it and otherwise they just would have had more money because some debit still buy everything you need and want as long as you can afford it it's just the extras that happen happens on a credit card you still go to the steakhouse but on when you can afford it but in the steakhouse on the credit card it just naturally you end up buying more than you needs and food stays over on the table now that's number one number two where we hear this argument a lot is by people in their 20s or low 30s which life hasn't really kicked in they don't have teenagers they don't have the large family yet and they say hey look I can afford it well of and I and I never paid interest and I never paid extra of course and I'm on top of every transaction I paid off every week yeah that's only when the expenses are still minimal in according to life once you you hit 35 you have larger grown kids and you start making Hass at that point too many people fall behind even those that managed to stay responsible for years for for for many years so so that's why even those people just get credit cards as soon as possible got it now let's go back to to obviously you've met with uh many many people and you helped those people get that free and ultimately create their budget where would you say is the you know obviously there's always the the one or two places where you find the money okay so which means is where are the places where you immediately tell people here is where you need to focus on stopping doing this or starting to do this like what are the some common things you could share for listeners that may not get to meet with you personally while they're hearing you now and they want to take some action where are the places where a person could start focusing up so the fun part is that rarely do I say you got to cut an expense almost never only when it's a a mindset like hey there is no other option I have to do this and I do you really have to or just the limitations that you thought and we with a five minute conversation your mindset can completely switch and and we have that a lot but I rarely do I say you're spending too much in this in this area instead we let the numbers do the talking then the idea of the budget isn't that you're restricted you can't spend you must cut it isn't that the budget just tells you your reality and it shows you hey if you can't cover your month if you have $10,000 in income and $113,000 in expenses the budget tells you that you can't afford to buy a breakfast every day for $10 plus a drink plus perhaps lunch the budget tells you that you can't afford it but it isn't me telling a a client what it is that they're overspending and it's everyone in a different way is human nature is that you spend probably 110 120% of your income it's called Parkinson flow you can go into that another time or soon but the person naturally spends more so it's across the board and then by seeing the numbers you see where where it is that you want to cut down yeah I think I think one of the things is that when you know your and it's like in everything in business if you are able to identify the problem not necessarily find a solution to it but at least it's makes it easier to find a solution or ultimately you are able to pinpoint and pay attention to the problem in the first place I think um from a budgeting perspective I think I mentioned to you last time we spoke is um You probably have your way of of doing the Excel file but at one point I put together an Excel file for people to download and for listeners you can go to pexg group.com / budget and just download a copy of an Excel uh you know Google sheet uh budget and the reason for that is some people say you know what I rather don't want to know my numbers because it's not going to add up what I say if you know your numbers sometimes it's not yes you're off with the numbers so let's say this I think I Shar with you this guy that created a spreadsheet put in this information and he was off with $85,000 for the year but this $85,000 he felt it every single day every single month he kept on feeling it but now he knows the number five minutes before putting in the numbers on the sheet he didn't know the numberers eight and a half and even if we'd say put a spread it's $10,000 fine it's $110,000 but then I told him let's be creative um what do you do for a living he works for a company is your is your boss satisfied with you and he says yes okay is there a way that you should have a sit down conversation with your boss and ask them is there a way you should earn another $10,000 in the next couple of months and and says absolutely I think I could add so much more value to what what I'm existing doing and it didn't pass four to five weeks and made a phone call to me and it told me that I got a raise for $155,000 with obviously conditions and what I'm going to bring to the table but now you went from totally unknown being in in pain every single day or every time he needs to pay a credit card or any type of expense to knowing their numbers to finding a solution and actually having the solution so I think living in denial because it's anyway not going to match up you're hurting yourself because sometimes it's not going to match up but you could do something if you know what that number is all about great have you found that as well to be the case absolutely and the first story that comes to mind and of course we have dozens if not hundreds of such stories is nker um our coach here had also a client that came in and said hey I'm over budgeted by $1,500 a month and what solution can we come up with they ran the budget and they saw that the actual numbers and negative $5,000 a month so that's $60,000 per year and he said that there's nothing I can do I'm already maxed at my position unlike um the story that you were saying he said I'm already maxed there's nothing I can do but then they spend some time on brainstorming what could I come up with they came up with one solution immediately which increased as salary by $330,000 a year oh wow the step two was to come up with additional $8,000 and they're actively working on how could we even though we think that we're maxed out how can we can we to cting expenses the raising income close the gap but without knowing without seeing the numbers in front of you you think it's 1500 when it's 5,000 you don't realize what actions are necessary to be done got it now let me let me ask you a very important shift the conversation to a very important uh topic and this is something that I would love to hear your opinion about because um this is something that um I think is part of the problem where you see spouses uh not being on the same page sometimes the bread winner is the husband or vice versa and they seem not to share the full Financial um story because they're seen as a potential failure if they're not bringing up to you know if they're not making enough money as what the cost of living is so I've heard that from a lot of people that rather I'm not going to share the financial um story to you know to my SP with my spouse first of all I want to ask you have you also seen that as part of the problem and what is your um response to that and how do people deal with that um making sure that both spouses are on the same page when it comes to the financial stability I've seen that because we've seen almost everything or close to it at least I don't see it as a general problem yes we've seen people have this issue and then people have others but we work overcoming everything in this case if one people one spouse has um a dire financial situation and they're hiding it from the other spouse and they want to come we always recommend spouses couples come together this way we can really represent the two and create something that works for both not just one spouse but in such cases if someone has this we say okay you can come by yourself and we work it out we work on a solution and then in a couple of months we can be 100% open of the financial situation that we're in and nothing needs to be hidden anymore we've had success in that bar as well and we have just with spouses he has his goals and she has her goals different Visions different things that they want to accomplish by both coming together we find a common ground um a plan that works for both MH one of the things that I'm just going to just go back to what I like the point about um sharing with your spouses is because a lot of times you could see a person that's really really in in a financial healthy State and one of if you'll speak to the person you'll say why because I have money coming in but my spouse is a spender and ultimately whatever comes in goes out so to speak before it even hits my bank account and my response to that sometimes is because maybe you never had that conversation of what you could afford or you can't afford and I want to make sure that our listeners on the stood what he said right from the getg go when we started the conversation is you start off with the end goal of the financial goals because nobody wants to live payche to paycheck and just just to survive you want to thrive which means you have financial goals should it be savings should it be a buying a car should it be buying a house whatever it is and the goal with your spouse needs to be that once you start off that that on that how many families have made a decision oh we're not going Upstate this year because we're going to renovate our house that's a decision between two spouses you know it's not one person says okay I'm leave I'm going up State and I'm using the the money there and you're spending over here it was a calculated decision between both spouses so my response to those people that say you know what my you know my spouse might be a spender could be because you didn't share anything else ultimately of course if the money is there I'm going to try to spend it but if you'd say let's save more money because let's do this expenditure or even even a honeymoon maybe it's a honeymoon next year uh and therefore we're not going to buy you know $6 lattes for for for a couple of months that's a decision that the two of you make together and ultimately it's not yes spent not spent we're gonna we're g to put the money where the the things that are most important for both of us absolutely and finances is actually statistically the number one cause of marital issues in the country um Financial issues and working the finances is actually something that's fantastic for of creating first having financial piece which is eliminating the anxiety Financial anxiety or um and the other issues that might rise through it and it's also building something together um achieving the financial goals and of course saving up from marrying of children retirement working on passive income and all those other other things as well I want to ask you another question which is um the concept of we see a lot in the housing markets is pretty pretty high especially in New York and the surrounding areas where rentals are spending a lot of their income just to cover their Basics which is rent uh this conversation come up all the time and probably to you way more than to me or to anybody else um which is should I spend a little bit more go above and beyond and stretch myself to the Limit and rather put a down payment and buy a house but at least the money is going to my mortgage the house that I own versus maybe live a little bit more comfortable or even less debt and ultimately spend for rent I know that each situation is differently but as a overall principle what's your response to that as an over as an overall goal buying a house is essential rents always increase and if we're seeing now prices in B park for a three-bedroom apartment going from 500 a month or 3,000 a month to $5,000 a month it won't stay at 5,000 the long term it'll increase even more so the solution is to buy a house and then you lock yourself in with this price for the next 30 Years and then the the mortgage is paid for and all you pay is taxes and insurance now I know the tax and insurance might increase but it's a couple of pennies barly inflation it increas it increases barely at the rate of inflation probably less versus rent increases and increases and increases so buy buying a house is essential then you have the equity if you need to upgrade you have additional Equity to sell this house and go and buy another house if you need to move as well you don't have the issues of a land landlord saying hey I need this house now spend 50,000 on moving and and and finding another apartment in a different area as well finding owning a house is essential now when it comes to the current market we're in an extremely expensive market right now while rents are increasing to insane numbers buying a house is also in many areas many H areas also add the same inane numbers and we see people um going for mortgage the the last going for mortgages for $6,000 a month and larger family spending 10 or 12,000 a month on their mortgage I wouldn't advocate in the in the current market go and buy a house and spend $10,000 or $7,000 for any man to buy a house but what I'm confident is that even though the numbers don't make sense right now it will make sense in the years to come it's a we had stability in the market until 2007 then we had 07 that inflated 08 we had the market crash and then it was stable from 2010 until 2021 and now with increase things AR stable but stable times will be coming ahead but let me ask you um let's let's go a little bit deeper on this topic um so let's say and this is actually a conversation that I had with someone he's a salesperson he's three years in the business he have he has a track record of how much he made the last three years but it's not a it's not a stable income because it's commission based so he's looking to actually go from a rental to to buying a house he found a good opportunity is it reckless from him to decide okay based on what I made the last couple of years as commission I'm G to I'm going to dive into something that I feel would make sense for me financially or maybe not because I don't have anything saved as a cushion maybe next year's um with the market I won't have that that amount of commission coming my way how long in advance do does a person need to plan out to say you're making this uh this commitment to yourself you know how much of data or how much money do you need to be able to predict as far as the salary or the same thing could be maybe tomorrow you get fired of your job you now you're undertaking is this huge mortgage and buying your own house so H how do you calculate those those risks so there's always always always risk when someone drives home from from his office to to his house he doesn't know if he'll have an accident so just there's a small chance so it is always a risk so you don't have to go all conservative and not take risks and of course you need to buy a house and you need to calculate the risk if it's an unstable business which has taken a hit some Industries recently have taken a hit where people have made a lot of money over the past many years if he if he's in such a line then it isn't about hey should I buy a house or not it's you have to think about your income is your income stable or not and if it is then yeah of course take the risk and assume that hey um my my my income has been my commissions have been increasing over the past year past few years 10 20% I'll be able to handle my growing family and the mortgage as well absolutely do it even though there's the risk of who says the company will perform or not there's a risk with everything you want to calculate what's the risk level in it but of of course if you have the ability and it makes sense and you mention that if you has a good opportunity to buy a house which makes sense absolutely go ahead and buy the house got it let's talk about savings um I think nobody is is you know it's it's it's young enough to start saving you have to start saving as soon as you can you know it's something that even a principal like now I told my my kids that went to Camp I'll give them money for canteen and for goodies whatever it is but for every dollar that you bring home you're gonna get another dollar in return I love it yeah because I felt that let me give them an incentive not that I'm not giving you the money in the first place not I'm not telling you to not to buy but if you decide I could get away without it there's going to be a reward because I want to you know teach them the lesson of starting to save when they're young I guess I guess part of the budget part of your when you sit with someone and you're planning out their budget there needs to be a save saving mechanism in place especially if they're younger and eventually they're going to have weddings other expenses as life um grows and the family grows and and and so on and so forth are you a believer of starting slow and fast on on the growing on the on the savings which means is even it means couple of dollars because they can't afford more or rather wait in a certain time and when your budget allows to to to do larger savings no you you have to start start as soon as you can and if someone doesn't have the ability to save up for marrying go his children as long as he isn't in Deb to say hey let's create a wedding fund and just add $10 so the wedding fund is open and then you know that you have to increase it I'll just go back you mentioned what you did with your children and their Contin money I love it have a client that tells me that his parents helped him out after the his for the first years and his father would give him ex x amount of money every month and every month that he stayed over with extra money he would give him a bonus oh wow and it came to the month of p and he used up all his money and he came to his father and said t I need more money P is expensive and his father asked him okay how much money do you have left he said I used everything up said sorry come back next month and it was the son told me that that was a valuable lesson um spend less than what you have I won't bail you out I can help you out but know how to save so yes you want to start any mechanism or any um practical advice you would be able to give on that so that means putting it in a different bank account like the profit first mentality is it putting it to some sort of uh mutual fund or whatever like what what do you suggest for average person that could start saving and has the capabilities of so let's review the financial goals that most people have which include say the first goal is cover the month so many people don't even realize that their First Financial goal should be cover them up they don't realize that they're in the negative I see people constantly that hey yeah I'm covering I earn $300,000 a year life is good when we review their expenses we see that they're a minus of $3,000 a month despite earning um close to $30,000 a month so number one goal is cover the month regardless of your income level if you're in a minus if you don't cover cover the month goal number two is as long as you have't debt paid it off immediately Med switch from credit card to debit card if you owe friends or any other institutions just pay it off and live a debt free life says the borrower is slave to the lender don't be a slave be free goal number three is have an emergency fund set up an x amount of of dollar let's say it's two three months worth of expenses let's say $25,000 save that up keep it in the savings account and don't touch don't invest it people say hey I have my money it's losing value with inflation let it lose value it buys you another value it buys you the TR tranquil Tranquility a peace of mind of knowing if something happens we all remember Co that's the best example it's a macro example but we all remember it all of a sudden one week to the next everything got shut down unemployment was the all the other bailouts who weren't here yet businesses were shut people didn't know how they live people that had an emergency fund had a peace of mind hey whatever happens I can Co cover my life in the next few months then we have in the micro level as well someone has a financial emergency um during a suddenly you have a $6,000 expense come up and you can handle your Sima easily uh someone mentioned that he had to be in in a hospital with his children for a few with a child for a few months he had his emergency fund he was able to focus on his family's health and well-being instead of worrying about money you want to have that emergency fund and if it's tied up in the market or tied up in the property or tied up elsewhere you lent it all of a sudden when you need it the money isn't there you want to keep it safe now you also want to keep it in a high savings account there are bank accounts that offer between two to four% for just keeping the money there if you keep it in Chase we have two issues number one you keep on borrowing money from that account and never paying it back whenever you do it's money that you would have saved otherwise and you just keep on tring in you want to keep in a different bank number two in Capital One they currently offer 4.25% of your money if you have $10,000 you'll earn $400 $425 a year just to keeping you there it's free money why not so you want to keep it in a high Yi savings account the next goal is if you want to buy a house or an investment property save up for that and that money also you want to save it up in a savings account as long as you have the ability to buy the house in the next years up to five years keep in the savings account and just watch the watch the money grow and grow and grow so when the opportunity comes you can buy that house when it comes to marrying of children as soon as a baby is born that's when you need to start focusing on the wedding fund the best place to put the money is in mutual funds the best example of a mutual fund is the S&P 500 we can going to explain what it is in two minutes essentially a company that's on stock market let's say apple is on the stock market you can buy a sheare in apple and you become a partner in Apple so if an Apple shares $100 and now you have one to share if Apple doesn't perform and people people don't want to buy the Apple stock it drops down to $50 and you still own your share but it lost value because the share is worth less if Apple's performing then people want to buy and become Partners in apple they buy this year and it goes up to $150 and therefore if you sell you made $50 buying stock an individual company I'm not a financial advisor but I don't recommend I I wouldn't advise my brothers my children to buy um Stacks in single companies because it's essentially as gambling because had you bought stacks and in 2007 you would have bought blackberry and not Apple a couple of years ago you would have bought Bed Bath and Beyond so you don't know which stack to buy so you don't know which company will perform in the long term so you don't want to buy at least I don't recommend my friends and family to buy individual stocks but the S&P 500 is a large portfolio of 500 large American companies which America is the largest economy in the world So when you buy a share in the S&P one share of S&P 500 and the majority of companies increase and historically have increased then your value goes up we had years that that it crashed for example 20 2003 the do com bubble in 2008 it crashed again in 2022 a draft but for the long term it might be down for the short term it might be down for the long term historically it's been up so where I put uh the wedding fund for my children I buy a share in the S&P 500 as long as my son isn't 16 17 or probably even 15 and three four years leading up to when they might become engaged for the short term I wouldn't invest in the S&P 500 for them but in the long term if I I have a baby I invest in the S&P 500 put there the money and watch over the years Gro very very nice I open a separate mutual fund account per child to each child if I have one account then my oldest son gets married and I'll use most of the money for him now I know that this money is dedicated to the oldest this to the second and third and we save up we buy funds of it increases and if we see a crash then if it drops for example the weekend of August 2nd I believe it dropped like six% that's when we say hey it's for sale we can buy we can buy even more we don't panic that hey I lost money that's where I recommend people save for the wedding nice let me ask you another um maybe a little bit controversial um I know we mentioned before Dave Ramsey and he's no known to be um very vocal about a lot of the topics related to financials in the non-jewish world and there's a lot of debate people that do financial planning within the Jewish world and saying okay his his way of doing financials don't work for us because we have way larger expenses on ongoing basis more than typical just buying a house just by the the way of living our as you mentioned before our human our marrying off our children the way our our society tuition and so on and so forth do you agree with that premise or you disagree so when I started coaching just my friends about finances a nice couple of people asked me hey who do you follow Dave Ramsey Dave Ramsey and after I heard the name so many times I looked him up and I started listening to his podcast and I saw that what he says makes sense it's absolutely fantastic but just it isn't gear to our community so if someone has the extra time they should absolutely spend some time and listening to him the principles are amazing but if we want to apply it to Lifestyle what I've done is I've taken personal finance and applied it for it to work for the h lifestyle he didn't interview with let the money podcast that's what that name yeah kosher money kosher money so he didn't interview there and many people really appreciated the interview and other said hey he just change said his basic radio show and use h words like private school he changed the words for us and if you can't afford um the P season just don't buy M I'm not sure if you said that but um people said it wasn't gear to us so the idea is that it absolutely it's Absolut abolutely important to listen to him for the person that has the ability and the time to and wants to accomplish it just we can customize the plan to work for us got it another question is obviously you meet with different types of people and obviously also different age groups um do you see different Trends by let's say somebody that's 4050 versus somebody that's 2030 when it comes to handling money today's day and age I don't think so I see you with the best in all age ranges I guess my my question is um let's say you mentioned credit card let's say once upon a time at least my father's generation was all about having their bundle of cash spending money with cash once in a while using credit cards and so on and so forth today the younger people are getting married right now they're living over the credit card you ask them for A Dollar Cash they don't have a dollar cash in their pockets it's part of the society and those those changes actually make having a ripple effect on the financial challenges that people are facing or or it still comes back to the mindset everything is mindset um but absolutely the way life is set up nowadays people do um splurge on credit cards and people don't understand the value of a dollar as previous generations but if see even older people forgetting what the value of a dollar me Meed them growing up and they've caught up got it in terms of obviously you as I mentioned before you met with a lot of people and you have I've seen um some of the messages that you be you've been getting from people living death free what is the most rewarding part of your job seeing that the amount of people that have literal Freedom it's amazing and the best part is we can have clients here that say Hey I can't cover the month I have so much stress I can't cover Basics and then just six months later they don't even remember that they were in such a scenario I tell them because I remember because if they couldn't cover the month now I write down cover the month as a goal Financial goal and then we six months later um I ask him how is this with covering expenses yeah what do you mean it's easy life is good life is great and they don't even remember the position that they were in and that's just fantastic wow we see people with wedding funds someone just sent me a message that he has a few week old baby and he already has 600 and change in the wedding fund 300 change in the bz fund it's absolutely amazing setting yourself up with your stopus um for the future and living life freely I want to just um um you know ask you one more question before we wrap up uh which is um we touched obviously personal uh finances which is your own personal budgeting does a lot of those same principles rely on business or business usually has much more flexibility because you're running and you're investing and so on and so forth I don't coach business businesses per se we've had some exceptions I don't I like to stick to my field got it how could people find out more about you um they can reach out to us how Solutions our phone number is 845 322 6500 845 322 6500 we're available on call phone text uh WhatsApp for the links resources mentioned this episode check out the show notes at www.p group.com podcast we will link um to find out more about um's work and on tabber Solutions let's close with a four rapid fire questions are you ready sure number one a book to change your life thinking gr Rich number two a piece of advice you got that you'll never forget oh so many um I wasn't prepared for that that's that's why it's called rapid fire questions remove your limitations most people have their limitations they created by themselves and then they follow those limitations and think it's not possible I can't I can't you could just remove those limitations wow number three anything you wish you could go back and do differently I don't think so beautiful and last and final question what's still on your bucket list to achieve passive income nice K thank you so much for joining us I know your time is valuable that is why in the name of our listeners we forever be grateful for sharing some time with us today it's been a blast thanks for the [Music] opportunity that's my conversation with K tabber my takeaway from this one number one take inspiration from real life success stories of individuals who Achieve Financial Freedom through disciplined savings and Smart Financial Planning this can provide motivation and practical strategies for your own Financial Journey number two focus on paying off high interest debt first such as credit card balances once those are cleared you can allocate more funds for savings and investment number three if you need to build or improve your credit use credit card strategically for essential purchases and always pay on time this help build a positive credit history without falling into de trap number four for long-term saving goals consider high yield savings accounts on mutual fund such as the S&P 500 to grow your money more effectively and number five Begin by identifying your long-term financial goals whether it's paying off debt saving for a house or preparing for retirement having a Clear Vision helps in creating a focused financial plan and that's a wrap for today's episode of the let's look business podcast I hope you enjoyed the Practical non-nonsense advice that our guest shared if you found value on listening I would be so grateful if you could share the episode with your friends and if you could give the show a five star rating on Apple podcast or wherever platform you listen subscribe to the show and get notified every time we publish a new episode The let business podcast is a Pex group original production until next time make it a great day [Music]