Tiny drips fill a bucket! Speech in Khal Bnei Yissuchor by Reb Mendel Feferkorn

Good evening Very short, I was wondering How is it What? Okay. I was wondering how is it That when somebody uh Gets a phone call from a friend who have an investment for you Takes minutes And the investment happens Could be millions Or somebody calls up somebody says Do the being a habit Have a citizen check for you It's really really great and then the verification start It starts with a full FBI verification and uh Once the time that the citizen uh Either waits or it gets diluted with numbers of people that sign on the right but then the investment Unfortunately, you know, happens and then people lose millions of dollars And uh Unfortunately, it takes effect on the poor citizens The support families, people >> [clears throat] >> People lose their lives And they know people every day and they they have uh You know, a lot of pain So, I'm not going to say more than that. This is why we As I'm in New York, I was was kind enough to bring up a subject to say that we should have a speech here. I was very for it and I'm still very positive about it. I believe That it could save uh countless lives, it could save families It could save the full generations if people do the proper money management And they understand that all this stuff can be handled with a shim But if we don't do the proper research, then basically it's like we jump into a lion's den So, without the actions we have here in the middle of the corner, you know, what that is? Yeah? And then people really Come back Ocean Atlantic Ocean means the living is in the Atlantic Is it the right place? Go ahead Is that what you call it? They got pictures It's going to >> [cough] >> Shalom aleichem. Good evening. The diamond called me and gave me the honor to come speak over here to this highly beautiful community. And I was thinking to myself, what do I have to come speak to these even? These are even that understand by themselves way before me and have way more knowledge than me in these kind of things and I should come speak for them. But I I'm a servant of Hashem. [snorts] I've been giving these speeches for about 18 months and Hashem thousands and thousands of even Hashem got saved. Millions and 100 of millions of dollars with Hashem in the last year from Ponzi schemes and from bad investments and from a little bit of knowledge. Even though we all know it is that you get a feeling of feeling of feeling of them. You know what I mean? It's for learning the supper. As I'll start like I started all of my speeches that I'm not a life insurance agent. Neither am I a stock broker. I don't work for any agency or for any organizations. [snorts] I do this mitzvah. I don't make any partners out of this in the meantime. And I go out to speak to communities and bring a strong awareness on all the issues what's needed in today's days especially in today's days. So I do this literally in this month my three brothers and a brother extremely he was a lively he was 21 year old that never passed away didn't leave over any he didn't we speak about how to put away money in order to be able to marry off your children but others. And then he needs he was a man in his 60s he was 44 years old and had a sudden passing left over and we had to go around and put up a big carrying for them. So I bring out importance of life insurance and then I have a brother he was also a man he passed away in his 60s in the age of 60s I speak in this month the Indian from retirement IRAs cyber to over. So I have four topics what we speak about. Topic number one is proper planning living with an how we eat has to live with an ice being responsible for all you do with your financials. The safe master of a master of the killer. So we speak the nicer from budgeting we speak the nicer from credit cards we speak the nicer from extra spending that's not necessary. We speak the noises from bad investments. The second noise that we speak about we said is how we put away money for marrying of the children without needing to be needy from someone else. And then life insurance and then retirement. So we'll start with the first topic is budgeting. I will have the honor to call Rabbi Chaim Leib to give a little introduction on budgeting. What does budgeting mean? How do you budget? How does a person with a big family, large family budget? How do you get to put away to save up enough for a appeal? >> Good evening. My name is Chaim Leib Campell. Known as Coach Chaim Leib. I actually live in Toms River and Hickory Pines. I follow it sometimes to the head for men for a matter um I would like to talk a little bit about budgeting. Now budgeting can sometimes sound very limiting. I putting people in a place that they don't feel like they could budget and if they need a budget then I can live my life or do my life or do anything else in life. That's very restricting. But the truth is the opposite. The truth is the opposite. That by proper budgeting and doing it the right way it only gives people the ability to be able to enjoy what Hashem gives them and to be calm about it and know what they could spend and what they can spend. The reason that I went into financial coaching is because a few years ago, I found myself in a lot of debt. I had over $100,000 worth of debt, and I literally couldn't pay my electric bill. And Baruch Hashem, Hashem helped me that I bumped into two people. Number one is Reb Shayele Shpitzer. And I started learning to listening to Shayele my father-in-law, Reb Shayele Shpitzer. And from that, I was able to understand what money really means, what money really is, what's the purpose of working, what's the purpose of interacting with people, and I got that spiritual understanding. The next thing happened was I bumped into someone called Dave Ramsey. Have you ever heard about him? It's either lovers or haters. Either people love him or they hate him. There isn't really a middle ground. And through learning his steps, I was Baruch Hashem able to get out of debt and get onto the right path. So, obviously it's with Shayele Shpitzer, believing that everything is from Hashem. It's not only just believing in Ramsey, but using Ramsey's mahalach as a tool to be able to get to financial stability. And Baruch Hashem, I was able to get out of it. And the reason I went into financial coaching is to be able to show people that it's possible. Even if someone's in debt, or even if someone is just living paycheck to paycheck, as a frum Yid, it's possible. It's shayach. Now, I want to come and say Ramsey's for non-Jewish people. It could work for Jewish people also. Obviously, a little bit tweaks, but it works. So, that's when I went and I took a course by Ramsey for to become a financial coach. I took the course by him. And then I also took taking the course by Mesila to get a little bit more of a Yiddish aspect of it. Back to the budgeting. And like I started saying that budgeting is not limiting, it gives people freedom. I once had a client that she told me that every time she goes to the grocery, she starts panicking. They didn't have any more credit cards. That was maxed out and already finished. But even with a debit card, every time she went to the grocery, she had to call her husband to ask, "Is there money on it?" And if the husband didn't answer the phone, she didn't she was standing there waiting. And when she went to the register, is it going to go through? Get declined? I mean, these are things that I personally went through in my life, so I know what that feels like, so I know how to connect to people that have that feeling. And I sat down with a couple and I told them, "Okay, how much money do you think you need to spend a week on groceries?" They gave me a number. And a side note, when it comes to spending on groceries, groceries and clothing are usually the topics that could be big differences between the different families. And people ask me, "So, what's what do people spend for groceries? What do people spend for clothing?" You can't compare. Everybody is different. So, they said X amount of money, probably approximately. And I said, "Okay, please go tomorrow morning to the ATM machine, take out this amount of money, put it in an envelope." And that's what he did. First, he asked, "Am I allowed to take out cash from the from the [snorts] ATM machine? No one's going to report something?" I said, "No, it's your money. You're allowed to take out of the ATM machine. It's yours. It's okay. No one's Put it in an envelope, divide it for other stuff also, but the main thing that we talked about was the grocery. And she started using that to go to the grocery. >> [clears throat] >> A few weeks later, she told me that from having panic going to the grocery, not knowing if the card is going to get declined or not, she goes to the grocery calm, knowing that I have this amount of money in my envelope, and I know what's in my cart, and before I go to the register, I know if I can afford it or not. And she said, "It could be that now I even have less money. I spend now less money in the grocery than I used to spend, but at least I know I walk in calm knowing I'm going to be able to pay the register. So, and the same thing goes also for everything else in life. all the other expenses. Doesn't stop in the grocery. So, budgeting is not limiting, budgeting is giving freedom. Knowing that, "Okay, my kids asking me now, can I go Motzei Shabbos to buy pizza?" Can I afford it or not? So, usually what people do, "Yeah, we're going to go. I'm just going to swipe it because we need it." And that's it. And then person suddenly feels guilty. Maybe I can't afford it. I should have said no. But if someone knows that he allocated funds, if he could afford to go buy pizza Motzei Shabbos, if he could afford it, not on a credit card, obviously with cash or with a debit card if that works, and they could afford it, then going to buy pizza Motzei Shabbos is not a headache. Take out $50, whatever it is, pizza, ice cream, pizza and a cake. You don't think about it that before and that after. It gives freedom. And the same thing also with with preparing for Yom Tov. Most people, when it comes to Yom Tov time, they take out the credit card, and they swipe the credit card, and then it comes after Yom Tov, that's when they deal with paying back what has to get paid back. And they don't know, Yom Tov is going to cost me $20,000. A Pesach cost me It's not really $20,000. It's just you put onto the credit card everything from that month. The real proper way is to prepare it in advance. So, a person sits down, him and his wife, obviously something that's hard conversation sometimes to have between a husband and a wife. Sometimes they're not on the same page. But at the end of the day, whoever wants to be successful and wants to be able to get out of whatever they're in, some people are just stuck paycheck to paycheck, and some people are in debt. Some people wonder if they put away for Chasanus. You have to start with the first thing is to make a budget meeting with the spouse, and to discuss it, what are our goals, where are we up to, get together all the income amounts, the expenses, and so on and so forth. And besides the putting aside every week what you need for that week to spend, you have to understand also that if you have let's say a thousand dollars, you can't just take that thousand dollars and say, "Okay, we're going to spend this thousand dollars. I'm not using a credit card. I'm basically have a thousand dollars I can go spend on whatever I need to spend. Groceries, clothing, and something left, I can go to the pizza store." No, you have to also think about Yom Tov. If Yom Tov costs you, let's say a thousand dollars extra every Yom Tov, argument sake, and you have five human beings to feed them, so every week you have to put a hundred dollars into an envelope marked Yom Tov. And then it come again every person for their numbers. Then it comes to Yom Tov. Every Yom Tov you take out the envelope. This is Yom Tov. And a person budgets, let's say a thousand dollars a week for groceries, let's say. Thousand dollars a week for groceries. So comes the week before you Yom Tov, you have already allocated a thousand dollars for every week before Yom Tov for regular groceries. So what's still left on top of that? Matzah costs, a little bit more wine, a little bit more other stuff, but it's not like it's costing thirty thousand dollars because you already allocated funds for that week. And then you're taking that money that you already prepared and you're using that for Yom Tov. So from the beginning of the year, you're already putting away for Yom Tov. Comes Yom Tov time, you calm about it. And that goes for putting away for Yom Tov and also for Chanukah. The Shaar Ha Halacha, I saw Shiva, someone asked him if it's kosher in a minute if someone puts away money now for Chanukah. It could be, you're not supposed to put away money for Chanukah now. When the time comes, Hashem is going to send you, he's going to send you. So he answered that anything that a person knows, any expense that a person knows is going to come, is a mitzvah to start putting away for. You don't have to start putting away for things that that never happened and might not come, those expenses. One expense that you know, you have five kids, the marriage of each child in your community costs, let's say, a hundred thousand dollars. Every community is different. Then you have an obligation to start putting away those amounts of money. I want to hear from a Mendelsohn exactly how that works with fidelity and investments. He's going to be marking a little bit in that aspect. Also, a lot of people when they get a raise, when they only smell the raise coming, they're already spending it. But really, it's not supposed to be like that. When a person knows he's getting a raise, right now he could live on the money that he's living on, keep that raise and start putting that towards Simchas retirement, paying off the house, paying off the mortgage, or putting towards other things. But it's things that needs to start getting thought not on the song that he raised, he smelled the raise, it's already spent already. And I would really advise everyone who needs to should get themselves a coach. Today, it's not embarrassing to get a coach. People have life coaches, people have health coaches, people have weight coaches and and nutritionists. All these things are coaches, helping people get from where they are to where they want to get to because they don't have that information. It's not an embarrassing thing. There's an an an organization called RSK that run 30 coaches all around the Jewish communities. There's an organization called Mesila. There's Tal over solution. There's Prosper. There's also another thing in the moment over here, his name is Shmuly Heitler in Toms River that also does it. But the main thing is to be able to get out there and to make a plan. If someone could sit down with their spouse and figure out how to do it, they could do it on their own, no problem. But if someone has a little difficulties and they feel like with a little bit of a push from a coach, they're able to make it, they should they shouldn't be embarrassed of it. And regarding budgeting, there's different ways to do it. Some people, for them writing pen and paper and tracking it like that, that works. Some people use Excel sheets, some people using apps like the EveryDollar or Budget Eat lately came up with a site that you also could uh could do budgeting on. They want to do what they could do. Just two more words. A person needs to look at their personal finances as if it's a small business. You can't just say it is what it is what it's going to be. It has to be looked at as a small business. The same way a business has profit and losses and balance sheets. You can't operate on a minus. Income minus expenses. Expenses are all expenses that you need to take into consideration that they're going to come in the coming years. Has to equal either zero or a plus and then you allocate it to something, but you can't operate a small business on a minus. And you can't operate a family, especially, on a minus. It causes Shalom Bayis problems. It causes stress. It takes away from from learning Torah. It takes away from everything. So, if some people could just take the initiative, each one for themselves not to be embarrassed by themselves, with their spouse, with to reach out to anyone they need help from, and to be able to get onto a plan of how to either get out of debt, it's possible, or to stop living paycheck to paycheck and start putting away money. All these things are are possible to do. And the main thing is to fund your lifestyle. Us as coaches, we will never tell someone what they could or can't spend on. People ask me all the time, "Can I buy this? Can I buy that?" As a coaches, we don't tell people what to buy or not to buy. You have to fund your lifestyle. If you're making $500,000 a year, you got to know what's in your bracket you could afford. If you're making $100,000, you got to know what you could afford. If you're making a million dollars, you can't spend like the guy making $500,000. Everyone has to fund their own lifestyle. And I find that the people that have a lot of money and they want to spend on whatever they want to spend, because they died or something gave them a lot of money. The people that don't have money, they don't have money. I feel like a lot of times that the middle class is I'm not going to say their own fault, but it's as a society it's a little bit of a problem that everyone needs to have the same standards, the same leased car, the same house, the same cousin is, the same Simchas Torah and everything. It was never like that. And there's no reason to do it to overstress ourselves to be able to live with someone else and then and then all the middle class are suffering from it. I'm just going to add a little bit to this and give over the mic to the Mendel. I once these are these are books. I forgot the name is Mesila gave it out. It was in the Amud Daled 25 years ago. They had letters in the paper. And someone once sent a letter asking, "Why do we need a organization like Mesila these days? Our grandparents didn't have organizations. They didn't have anything. And they lived. They were fine. They were good." And the answer was, "Uh grandparents, when they needed to buy something, they picked up the tiles of the floor. If there was money there, they spent it. If it wasn't there, they didn't spend it." Today we're living in a society that most people that are not getting educated and not being aware of it before the time are spending money that we don't have. So therefore it's very important to budget and to live within the lifestyle. And it's not embarrassing sometimes to say, "No, I can't afford it" to the kids in a healthy way or to the friend, "No, I can't afford it. It's not in my bracket." It's okay. I shouldn't have that everyone should in their place where they are should have Siyata Dishmaya. And I saw it myself in my personal life and I see with my clients, when a person starts doing things, he just has Siyata Dishmaya that follows. A lot of times people say, "It's never going to happen." I had a client and I'm going to finish with this for real now. I had a client that they had $60,000 of consumer debt besides for all the debt. And they were not even making ends meet. And they told me, "Well, why are we talking about paying back debt to set on the middle budget?" And they sat and they wrote a goal, "This $60,000 should be paid off in 12 months. This is my goal." They made the goal. Five months later, they paid off $30,000. How? It's not magic. When people set themselves goals, Hashem made a special process, a natural process of siyata d'Shmaya that happens. So, everyone should could set themselves goals you need to get out of debt by what time? By what date I need to say? Or to start putting away for for for weddings and simchas and retirement. And this is going to be a special siyata d'Shmaya that people see that they can get to those goals better Hashem. >> Shkoyach, Reb Chiel. So, Reb Chiel takes privately clients. And also Reb Shmuel Yaniv, he mentioned him, takes privately clients if you need specialty coaching. I'm just going to touch a little bit more on the topic, what does budgeting mean? What is the importance of budgeting? And um how to go about it. People think most people think, "I don't need really budgeting because I'm basically okay. I'm here, I'm there, you know. Skim tough choidesh is end of the month. You cratz here, you cratz there, and and and you push it through." It's true, most a lot of people can just push it through the way you say it. The fact of the matter is you push through this month, you push through the next month, but Pesach comes and then you don't have the money, the five or $10,000 you need for this Yom Tov. Or camp comes and you need that few thousand dollars for camp and you don't have it. And you start pushing again. What happens? You pull out the credit card from your pocket, you swipe it. Which is okay. Everybody swipes credit card, me too, you know? This is our lifestyle today's days. When we used to have just cash in the under the under the balatas as he said it before, you never spent a dollar more than you had. You had, you spent it, you couldn't you couldn't go to shul and borrow from someone few dollars to spend it. So, kimcha d'pischa was a big thing. Today's days, you're embarrassed to go to the pischa that I asked for Pesach. So, what do you do? You swipe your credit card. So, from Pesach till Rosh Hashanah, you have 6 months that you're paying off you you can't pay the whole credit card shots in one shots it's you know it's $10,000 or 15 or whatever your Pesach bill was. You start Okay, I'll pay it off in 5 months, 6 months. I'm not going to pay that much. On credit cards, you're paying between 25 to 35% interest. So, you had a sale, you went out, you bought yourself a new suit because it's 30% off, then you pay 30% on your credit card for the 6 months coming. So, not only you got a bargain, but you even paid even more money. So, instead of taking credit card and swiping it at Pesach and paying till the shkoydish Elul, your Pesach bill, do the opposite. Pesach finishes, take an envelope as Chilly said, start putting in the money for Sukkos. Once that's finished, Sukkos comes, you have that few thousand dollars for Yom Tov. Sukkos finishes, the shkoydish finishes, you take an envelope, you start piling in money in that envelope for Pesach. This way, you always have that money. Now, not for everybody is easy putting envelopes, keeping cheshbonos, and whatever. It it it it could go on the nerves. So, there is today's days fantastic apps. There is wine app, there's There is other net There's a dime a dozen of apps that you can download on your phone. You connect all your bank accounts, all your credit cards, everything gets connected to that. You set up budgets over there. That will keep you on track and that will show you and they will take your your weekly pay and your monthly pay, whatever it is and it's going to put you on a track and you're going to see exactly what's happening and this way you can have a nice budget. But it open the cranny good for a person that could take out his credit card and put it away and not use it and take his debit card and take out cash from the bank and live off cash. Not even using a debit card. Why? It's very simple. Ain't no brocha ain't no siman min ha'ayin. Why is that? Today's days is the opposite. Ain't no clue ain't no siman min ha'ayin. You don't see pricing in the stores, you don't see pricing in nothing. You start piling up a carriage of stuff, you come to the cash register, you don't even look what it says on the cash register, you just take your credit card and zoom throughout, done. You don't even have what's happening. And as it goes this day after day, week after week and it really dries you up and then you end up not having enough money to cover your budget. When you start living with cash and you start your week, your month, whatever it is, you go to the ATM where you set it, you take out your pile of cash, you go into the grocery and you have a thousand dollars in your pocket of cash. It comes to the cash register and you see on that machine it comes at 675, 7, 725, 780, 800, you start getting jitters in your stomach. You only have a thousand dollars in your pocket. What do I do now? So all of a sudden that beautiful ice cream that you thought is necessary, it's not so necessary. All of a sudden the second pack of potato chips with a crust, without a crust, whatever it is, hard, soft, million things you start finding things that you really don't need. I had a big income and that came over to me and he came speaking to me. He says, "You really want me to put away money to marry off my children or whatever. I can't cover my month and you want me to put away money." So I asked him, "Why can't you cover your month?" So he said, he gave me groceries a thousand dollars, this, that, that. So I said, "Do me a favor, bring me a grocery bill for the la- next coming four weeks. Bring it over. Let's just study the grocery bill." We found on that grocery bill approximately between fifty to seventy-five dollars out of the thousand dollar grocery bill that he was able to get away without it. And I'm not talking about taking off essentials. We're talking some extra stuff that really unnecessary stuff. So that was about three hundred dollars a month. I said, "This three hundred dollars a month for thirty for for twenty years is three hundred thousand dollars." That three hundred That seventy-five dollars a week that you're talking that that's a shazam. Okay. Look over Shabbos. That one is three hundred thousand dollars in twenty years. So when you need to come and marry off your child and you don't have money to marry off your child because you you live a certain lifestyle, and most people that fall into this problem is people that are not earning enough to make them feel comfortable, so they should be starting saving. I'm a mission of the Torah anyways. My budget is already I can't cover. What's the difference? Ten, fifteen, twenty bucks, big deal. Nobody say. All I am saying is it's small money that accumulates to huge money. Small money. People think you got to put away millions in order to have money. No, no, no. You got to put away singles to have millions. I'm going to show you calculations here. It's going to be mind-blowing to see what small money brings for a person down the road. So, [clears throat] if a person lives with Like he really said, you sit down with your once in 6 months with your wife. Take out a piece of paper. What's my income? What's my expenses? What is it costing me? What can I try to maneuver? And I'm talking about the person that does not make the full-blown money. Talk to a person that's having a little harder time. And a person that is making but nice money. Sit down with your wife again and see how much money can I really put away. People asked me, how much should I put away? I said, there is no dollar amount that you should put away. You should put away everything you can for your future. Because the future shows up yesterday. We all had nice black beards just yesterday. And so forth we are and we are gone. We finished, you know, before you know it you're marrying off children. It goes so fast. And then when I came to you get to that point and you need to come up cough up that 100 to 200,000 to marry off your child. They say to where do I start? Which do I go? So, who he needs to or he needs three he's going to and people push off doing for 2 years because they don't have the money for the next child. He just made he just made a wedding he just married off his child. He can't go into the next because he's still busy paying the bills of the first child. So, with a little bit of bonus beforehand, when a person makes the before how to maneuver his lifestyle now in order to get the future and have a normal good living living. And I want to tell you something. I don't know whoever married off children here. But I can tell you when there is not enough money to marry off your children the is not a child. You fight with your wife on every item. It's necessary. It's not necessary. Can we get a better deal? You don't need so much makeup, ladies. You do need the hair. You need the flowers. Everything goes bam bam bam one thing after the other. Why? Because you do not have the budget. You don't have enough money to cover it. Everything it becomes such But when a person has the and he had his little bit thinking in advance coming to the right way putting away the money for the right time You know, I always say that I gave us such a gift. Before we have a baby, he gave us 9 months of notice. He didn't make it to one day boom you're pregnant you're out and done like I didn't talk. Why? One of the reasons we should be able to prepare. You have 9 months prepare the dish prepare the carriage, prepare the crib, prepare the whatever you need. You have 9 months of planning. Don't come to the dish and take out your credit card and swipe the few thousand dollars and then don't know where to pay it back from. And the same is for you have 13 years of planning. You have 19-20 years minimum of planning for marrying off your children. The boys, I tell you the bill for marrying off children does not come the day of the wedding. It's a huge mistake you people have. The bill for the wedding you get the day the child is born. And Hashem gives you hesed that you have 20 years to pay this wedding. And with small money. With really small money. If you look on this sheet that I have right over here, the first sheet, you put it for the for the nishum, and you give it to the nishum these papers. If you look on this sheet that I put over here, the first sheet on the left side, it says has in the plan $5 per day, 5 days a week, $25 a week. I'm sorry, $5 per day, that's 5 days a week, comes out to $25 a week. That's $100 a month. Now, boys, I it's small money. $5 a day, a coffee, a Danish, good nish. You put it in a fund, an ETF like the S&P 500 that we'll explain soon, what kind of funds we do, not we, not me, what kind of funds we should invest in. At an annual rate which gives approximately 10% on a duration of 20 years. Periodic additions, $25, the weekly is circled, $82,000. You hear me? $5 a day, that's $25 a week for 20 years gives you $82,000 plus. Contributions was $26,000. That's approximately $1,200 a year for 20 years is about 24 depends on the months you're talking about between 24 and $26,000 investment. Your profit is $56,000. The same amount, the same average that has the baby takes at the starting and look at the right side. He takes $3,000 a kicker, he puts it in there. Instead of spending by the by the bris Whatever he does, you know, if he could spend his entire He take that $3,000 kicker, you put it in and you run the same you end up $104,000 in 20 years. $3,000 investment when the baby is born gives you another $20,000 plus. It's mind-boggling what small money could accumulate to. You know, you there's this word they say the drip this faucet drips this drip drip drip drip it amounts to huge amounts of money and people think ah it doesn't matter. It's not true. It's this little drips that make this huge bucket of water. And if you look down at the bottom, you know, a lot of communities $100,000 to marry off the children is not enough. You put away $10 a day. That's $50 a week, $200 a month. Put it away side. Living today with an ice for tomorrow's for your future, for your kinderlach. That's so important. It's so good in you know, you go out and you buy yourself whatever you buy yourself. I'm not here to take away anything from nobody. That's the shul. You mention it chef, you should have enough to buy your daily needs, your monthly needs, and you should have when you need to marry off your children. But if we will not come with the right planning to marry off our children, we will be up against a brick wall. Unfortunately, I don't know this community, but where I come from and most communities I spoke about, over 80% people cannot marry off their children by themselves. Unfortunately, it used to be 20%, 30% today we are up to 80%. Mind-boggling. 80% of can not marry off their children by themselves. They need help. Some go out for home equity loans. By going for a home equity loan, you're just plain not making it and you take a home equity loan, you're going to pay enough for the coming 100 years to pay off your married to marry off your children. Why do it that way? Why do it the opposite when you can start in the beginning? Start when you're young and you'll have a much more of slacker. And I'll show you a fasting calculation. Look at page number three. Okay? I want to show you what time and money means when small money becomes huge money and how someone can build his wealth, build his future just by right calculations and doing the right things. Okay? The first box on top, first 13 years invest $1,800 a month. I know it sounds a lot, but I'm just going to give you a little what small money can be. $1,800 is not small. >> [panting and sighs] >> If a person took in August 2005, which is 20 years ago, okay? $20,000 as a down payment, his wife came in with money or he took his first $20,000 he earned, whatever it was, he put it into the S&P 500. He did in this green box, the first box, he did an additional monthly investment of $1,800 for 13 years. That's from age 20 to age 33, where your life expenses is very minimal. You don't have a lot of money because you don't have yet camps, you don't have yet high schools, you don't have yet bar mitzvahs. It's the first years of your life where life is the is is is is the least expensive. Now, I'm speaking I know I'm speaking not speaking to these age over here most of the people, but you all have children that are going to get there, are being there, are going to be having children that are getting married. They show them a calculation like this and this is massive, okay? >> [snorts] >> So, look under that box, nominal contribution was $300,000. That's $1,800 a month, which is approximately $22,000 a year for 13 years, plus the 20 at the beginning year of $300,000. Your final nominal value is $693,000, okay? And it was the green line that's under this first box. Look then the next 7 years, the next box, you took that $693,000, you leave in the account, and you don't add a penny anymore. You use all your money that you have, you start using it for your own use for bar mitzvahs, camps, all your expenses. You don't need to put up another penny to this fund. You leave this fund from 2018, August 2018, till August 2025, last year, you would have $1.7 million. Small money, $1.7 million. And I'm not finished. Now, look at this next column right next to it, okay? At age 40, that means he started at 20, he put it on into age 33, age 33 he left it till age 40 to sit and bake in that S&P 500. At age 40, he starts withdrawal of $125,000. And he goes down as you go age 41, 42, 43, he increases his withdrawal with $5,000. That's every single year. That means your first 13 years you had to put away $20,000. And then you start taking out $125,000 and you increase it every year with $5,000. By age 60, you're taking out $225,000 a year and you still have 2.6 in the account. At age 70, look at age 70, you're taking out 275. At age 80, 325. At age 90, 375. It's going to last him up to age 95. And if a person passes away at age 80, 70, he's still left the share of $2 million. All from $18,000 or $1,800 a month for 13 years. This is how powerful money and time is if you calculate it the correct way. And that's why we come out to people and we tell them, you know, society gets a living my good living. You want to drive a nice car cuz you need to drive a forgiveness to You can drive. I also drive a nice car. But if you're set up. If you know you have a future and everybody has this future. Everybody. Life should help we should have a all have a human mission But we all have children we're going to have to marry you off and we all have a future that we're going to have to finish. And if you do the right calculation from the beginning, you will see that the Hashem you'll have these huge pools. And the same is with retirement. We said we're going to speak about retirement. The same is with retirement. If you see on the bottom box over here, the the the bottom box. If a person took the first year of his work at age 20, he was in 1975, he was age 20, and he took his first $7,800 and put it away till today, which is 50 years later, and he is 70 years old, he has over $2 million. $7,200 is over $2 million for retirement. That's why I say so important these things. You live with a highest. Be careful with your money. You live with a credit card. I'm not saying I'm again We have a life. We have to run it. We all have a It's It's It's a whole mice. It's a company that we're running as Kelly said. You have budget. You have to figure it out. But just keep in mind that these bills are going to pop up and you're going to have to cover it. So I gave a speech last year in the basement dish in Borough Park. After the speech, a young man came over to me. Your husband is beautiful, he says. But I have can I have a nine children. My oldest is 11. And you're telling me now that I need to put away for each child at least $100 a month. That's $900 a month. Plus for the older children, I have to do catch-up. We have to put in more money in order to get to this number. How in the world do you think I can do this when I can hardly cover my month? So I just asked him one question, one simple question. Do you agree with me that in nine years from now you will need your first $100,000 to marry off your son? He says, yes. So if you cannot collect together now $900 a month, how will you collect together then $100,000? Now just explain it to me. What's your husband? You're right, I can't now. So whatever it is told him, "Listen, you're going to make it work." I met him a a few weeks ago in the grocery, a year later. He comes over to me and he asks me if I remember him. I said, "Sure, I remember you. I remember what you told me." He pulls out his phone, he shows me his account, over $40,000, $49,000. Every child had an account set up for every child in 1 year. He couldn't cover his monthly bills. He has $49,000 put away for every child and it's growing. He says, "I went home, I sat down with my wife, we made the calculations. And we are careful. We used to, you know, go away for a weekend, whatever you want to call it, a weekend, we get food and kind of stuff, whatever you call it, all these names. We had good good good good reasons to go, whatever it is, we went to, you know, we lived a life. And all of a sudden, you made sense. I didn't have a penny in my bank account, a dollar put away for my life, and all of a sudden, here I have $49,000. Now, boys, I everybody can do it. I'm telling you, everybody can do it. It's hard. It's adjustments, you got to do it, you got to think about it. It's going to take you time. Put it into your system. I can tell you one thing. It doesn't pass a day in my life since I started this, that I don't get messages and WhatsApps, or I go into shul, that people come over to me, "You saved my life." And this is what gives me to go on. I don't charge money for my speeches, and even makes like this. People, it's it's not that we are half care. It's not that we are living a a a a a kind of kindness. It's push it we don't have the knowledge. Nobody knew and understood that $5 a day can accumulate $100,000. And it's physically possible. Nobody thought about it. You know what I mean? Kind of an issue is all good. And my number one question I get from people is, "Where were you 20 years ago when I started off? Now you're coming to tell me?" So if you weren't there and I wasn't there for you 20 years ago when you started off, at least teach it to your children. The first thing you should do when you're marrying off your children, sit down with the couple, explain them what a budget is. Our education system does not talk a word about financial stuff with children. Now I don't know if it's their job or not their job or yes their job, but the fact of the matter nobody teaches them. So if you will not teach them, nobody will teach them. They will spend their first 10, 15 years of their life, spend their money, and then be in in choyvis nacham will nacham. So do yourself a favor, you're marrying off your children, sit down with your kids. Explain them what a budget is, explain them what money is. I'm telling you you know a lot have done it all the time. They put away their their drushy gift money, they put away their the savings that they did when they worked as a girl, as a bachur, whatever it is. You have a bar mitzvah bachur, you're making bar mitzvah. I want to ask you, does anybody remember how much money he made by his bar mitzvah? And where is the money now? Nobody. I can tell you from people that I've spoken to that took their kids' bar mitzvah money and put it away, the kid got married, and they gave him a beautiful fund by the time they got they come to marry to to to to buy a house. It's just a 13 the two, three, four, five thousand dollars, whatever it is at age 13, you put it in for him to to when the kid is 28, 30, 35, he's going to have a beautiful down payment for a house. Just his bar mitzvah money. Now, it's very important to open an account for every single child individual. Not make one big. Yeah, before I give you a beautiful cash one of one big account. You open up an account for each individual child. I like Fidelity because Fidelity is the most flexible, gives you all the flexibility to open multiple accounts per child. You can link it to your bank account. You can rename the accounts and you can buy fractional shares. You open up an account for every child. Let the children see those accounts. Let them be part of these accounts. They have summer jobs. They have They sell lemonade in the street. Whatever it is, they get Hanukkah money. Let them put it in. Let them be part of it. Let them be part of the wealth building. It's going to teach them It's going to teach them what money is. They're going to understand it better. And I keep on telling the story with a with with the with the milkshake that that people, you know, I mean, it's it's it's like once you start teaching children the value of money, you First of all, you yourself start understanding the value of money. And then you teach it to your family and the whole thing is a different story. So, you open up a separate account for each individual child, you fund it, you make sure it gets there the money, it gets linked, and the kids see it, and together you know, people say you got to make a a takanah that every child should marry off themself. And then, if everybody pays for their own wedding everybody's going to be more careful. The husband will be way more careful with the way they spend. The color will be more careful. Everybody going to make careful. First of all, I want to tell you something. Most of the spending is not by the chassan kallah, it's by the parents. So, stop blaming the kids. There's nothing with chassan kallah. You want to make a beautiful kiddush. You want to wear a nice gown and show off for all your friends. Whatever it is, is in the height. I I You know, I really forgive us. We really do. But, when you have an account that's a $100,000 in their Fidelity account that is $100,000 and you make a shidduch and you sit down with your son or your daughter, whatever it is, and you say, "Tatte, this is the amount. This is going to pay our simcha b'ezras Hashem. I promise you and you tell the child like this, "Whatever stays in this fund goes to you. You're boss on this fund. That means it was ours till now. From the day after the chasunah, it's yours for a down payment, whatever it is." He's going to watch that money like a hawk. He's going to make sure that you don't spend $1 more than you need to to be able to stay in that fund more possible. I did it for myself. It works like wonders. Now, boys, I chuchum in the brishas. Good budget. Be careful how you spend. If you have a credit card, there's another thing to say about credit cards. If you do use a credit card, Fidelity, if you have open an account over there, you can open up a credit card with Fidelity. Fidelity gives you two points, that's 2¢ per dollar you spend. It goes directly into an investment account. You can choose it to put into your IRA or to put it into investment account. You will not believe it. People spending like 10, 15, whatever. I don't know everybody's budget. If you spend $10,000 a month on your credit card, that means you will have in your account $200 a month in your account without you putting in a penny. That means in 20 years, you'll have $200,000 because every dollar you put away a month, that's $1,000 in 20 years. So, if you put away $200 a month, it's $200,000 in 20 years. So, instead of using the points flying first class and business class and whatever, you can get a fidelity card that the points go into your investment account where you have a future. I heard that American Express also offers it that you can put it into your Schwab account. And and and this is how you grow to without even having to put in money. It's just by using a credit card if you use a credit card. Again, it's not lots, but if you are the person that uses the credit card, at least use the one that you have something of it because a first class ticket, a business class ticket after 15 hours is gone. You forgot about it. This money that goes into your fund and you have $100,000 to $200,000 out of this credit card spending is here forever. This is the nicest of saving, being careful with your money, putting away, and living with the I'm not going to talk about spending on extras, fish boards, meat boards, and all the stuff because it's I'm not really about most of these things. It's it's not my business. Everybody should live their life. Just be careful, understand what your future is and what's in front of what's ahead of you and what's your children's future. The next thing I want to talk about is life insurance. Life insurance is a good dish that everybody must have. And I'm specifically speaking about term life insurance. You should have on yourself and on your spouse. Nobody is immune. I lost three brothers under 60. My mother was 52. And I'm telling you Life insurance is so cheap these days. You buy a term policy, it's like 30, 40, 50, 60, that depends on the age, $100 a month per million coverage. Now, if a person has to have today's days between 300 and $500,000 coverage per nefesh of the family, that means if a person has six children, he has to have at least $3 million coverage plus a million for his wife. That's a $4 million coverage. Minimum $2 million. And it's so easy. Every second day we hear nachat rigedien, nachat rigedien, nachat rigedien. You know, do a accident, do a heart accident, do a heart attack. There's so many tragedies and I'm sure everybody in this room knows someone that passed away in young years. I'm sure. And yet they try eh, ich nicht. Chobber minner, chobber tuchen. Fake a minner, fake a tuchen. You got to do what you got to do. It's minimal of minimal, minimal, minimal that you got to do. And then we spoke about retirement, which is very important. I'm sure a lot of people over here already have it. Companies offer 401(k)s, you should make sure to match it. Put away the maximum you can. I'm telling you, I'm sitting with older people now. They're trying to figure out their social security that they're getting. They're getting $2,500 a month. I buy stuff, it's not even to cover half of their expenses, a quarter of their expenses. I have people that put away IRAs. They can sit now al minicha and they can marry off eine klach and they can have enough to give Chanukah money. M'miz hobben de gelt. Don't take it lightly. Take that $500 a month if you can afford it. Push it in. I promise you s'atter kem in tzigit. You'll thank me later. I know you can't use the money now or this is locked up. You're not going to be able to use it. Do yourself a favor. Build yourself your future. It Your future is in your hands. Understand if I didn't have one yet the S&P. I don't know how much the people over here educated about the stock market or not. But I want to show you on page number four. There is one very important thing that we must know about investing in the market. The US stock market had every year a certain point where it was in the negative. If you look the red dots on the bottom picture over here on the bottom one, it shows you all the years since 1980 till today, the years the percentage it was up, the years the percentage it was down, but it also shows you percentage down the middle of the year the number with the dot. You see every year. Right now we were in April, we had a a tremendous low. When I speak investing in in the ETFs in the stock market, I specifically speak to invest in funds. Buy funds. Do not buy individual stock as a rule. You want to buy individual stock, buy the Cadillacs. Buy the top companies, the Apples, the Microsofts. Also, but this shouldn't be what we are saying to put away the $5 a day, the to put away to marry off your children, put into something that's stable like the S&P 500. You know this food gets a clock to hire. You want to take extra money, put in the, you know, to push, put it into Apple, put it into Nvidia, put it into whatever. Be careful. I've been on this roller coaster. You see this picture, the top picture, the roller coaster. Goes ups and downs, ups and downs. I've been sitting on this ride before 2007. This starts in 2007. I've been sitting on this ride since way back. I lost all my money, made back money, lost again all my money. How? Why? What I've done know now what I know if I would knew then what I know now, I would not have lost my money. I think a man called me up a few weeks ago from from Lakewood, a young man from here. Heard my speeches, heard my lectures a year ago. He put away his money, he bought ETFs, the S&P 500. He had $125,000 saved up. Some get cracked, he put it into funds. He came to shul, was a cream over there. And everybody was talking the AI and this and that. It's booming, it's she thinks it's already 300%, 400%. I'm thinking to myself, I'm a loser. I'm making 5, 7% of my money, 10% is going up like little goodish, you know. And he didn't hear this company, that company. And they told him five companies in this this company makes energy and this company makes the chips and this company builds the the infrastructure and this builds this whatever. You know what I'm Everybody's making big money now, AI. He went and he has an account in Robinhood and he sold his positions in the S&P 500. And he bought these five companies. By the time he bought them, it was 300% up. The average was about by the 80 to the 90 to 120 dollars when the stocks were in beginning trading of 10 11 12 dollars. So, Rabbeinu told him, gave him good news, you're approved for margin. They gave him margin another 125,000 dollars that he can invest. How much is margin? 7%. Mach day the 7% I'll pay 7% margin. He's now buying for 250,000 dollars and he bought all five companies. He sold his position, bought all five companies on margin. He's up 250,000 dollars. It's a full 1 2 3 took a week 2 3 and he sees his money growing and he's jumping for simcha. And Oracle get a kimah rolls with bad news, some kind of a correction and made a 30% correction that whole sector made a 30% correction. Now come to see the guy had 250,000 dollars 30% correction. What was that? About 75,000 dollars. Boom, in one day, one morning. What happens? He gets a margin call. Bank is not going to say, okay, give me half of that. No, no, give me the whole 75,000 dollars. He had no way to come up with 75,000 dollars. The next day it went another 5 10%. Basically they liquidated him. He stayed with 35,000 dollars from his 130 25,000 dollars. This is mass in the whole you and these things happen every single day. Reb Moishe said, he should have a zoo. Be careful. Do not buy single stocks and if you buy, only buy on cash. Do not take out home equity loans. Do not take out mortgages. Do not take out margins. Zich in a sugar hit. You know, you buy it with cash. As gemacht a schlechte investment, it's a bad investment. You sit it out. These are good companies. Maybe yeah, maybe no, they'll make it. Okay, you made back your money. But if you take on margin, you will lose your money without a doubt. And then you're going to start trading with in trading and then trading it with emotions, and then you're going to do wrong moves, and you're going to lose your money. When we say to open accounts for every child, we say to open and put in money not to trade, to never sell your position until the day you marry off your child. I don't care if the market crashes, and I don't care if the market flies up. You do it consistently. You open up the accounts for each individual child, and you set up a weekly withdrawal from your bank account every week $25 for Moshie, 25 for Ari, for Suly, for everybody. You set it up automatically, and you do not trade. We just put away into the balata. Again, under the pillow, under the mattress. This is the way our mattress is today. Don't have zippers anymore, so we can't put it in the mattress. We have the S&P account that we put it in there. And believe you me, it's like a schmucky cushion when you see it growing. Anybody that needs help setting up an accounts, I have my son Dudi. He does this so panasa. He gives private setups everybody. You need coaching, we have coach Shilly. And the drive shall happen. You should all have a nuses gedoyles. With the nuses of God, have enough money, be able to budget your life. And be careful with your money, and do not do a I didn't speak about bad investments. There's another thing. Every few years, every I would say every few months, there's a new Ponzi scheme growing every few months. This guy buys buildings in Georgia. This guy buys buildings in Texas. And this guy uh gold mines. And this guy has oil fields. And the guy is mad at me. He don't want my money. I'm going to go millions and millions and millions get flushed down every single year. Do not trust anybody with a penny of your money and I don't care if it's your best friend that comes into that has a great investment. He will take away all you have. You want to buy yourself a piece of real estate, you want to be in the management, you want to go in there, you want to drive down to the building, you want to have your own buildings. Go for it. Get into the height. But to take your money, give it to a fund manager, to give it to someone else to manage it for you, he will take your money. Believe you me, so fast. And I'm telling you in this area, Lakewood, Monsey, Borough Park, in the last 3 years, over a billion dollars, you hear me? Over a billion dollars got flushed down. Fish show me show me show me show me show me show me show Gone. Over a billion dollars on these investments. And all of those investments started off well. Everybody had beautiful sheets, Excel sheets and they sent you an email with 600 pages. You tell me you ever read one of these pages? Do you understand anything that it says in these pages? Did you send it to your lawyer? Did anybody verify it? You don't know he's my and he has this Cadillac. He comes to show and he's to tell you don't know and he is flying his private chopper and his private jet gets his room and he takes all your money and he takes it and he flies in his private choppers. Do not invest by private individual any money. And even to find a good fund manager is also not easy to find someone that's in the back life to make sure that your money gets put into the right places. I have over here on on page number two, I have a copy of my my website. If anybody wants to know what to do, you can go to mendyfefercorn.com and there is this calculator where you put in all your children's age and it gives you a pure a very clear calculation of how much you need per child to put away. So you see on the top this is a $100,000 goal, start age is nine. Let's say this guy has 1 2 3 4 5 6 children. The oldest is nine, end age when he wants to marry off his children is 20. The rate is 10%, initial investment zero. And then you put in each individual child age seven, age five, age three, age one. And you hit calculate and it gives you weekly how much you have to put away per child or monthly or yearly and it gives you a full total calculation so you get clarity. So if you have a can I not even children you want to know clarity how much do I need to put away for every child to reach my goal? Go to mendyfefercorn.com. You'll be able to calculate it there. So that I wish you health and you should have shaffa, rav, chol tiv sela. If anybody has any questions, feel free to ask. >> [clears throat and cough] >> Huh? I didn't you didn't hear the milkshake All right, he asked me what's the story about the milkshake. I'll give you the story of the milkshake. I mentioned before a story of a milkshake. So he asked me what's the story of the milkshake. I had a a friend of mine that used to go out every motzei Shabbos with his son to buy a milkshake for $14. So he bought one for himself, one for for the boy, and one for his wife. Four three milkshakes, $14 each milkshake, it's $42. One week he told his son, "Let's go buy the machine on Amazon, a milkshake machine for about 50 bucks. We'll buy a bucket of ice cream and milk and chocolate syrup, and we'll make a milkshake by ourself." So, figure a milkshake, what is it called? A bucket of ice cream is 10 $12, a bottle of milk is $3. You'll be able to make many milkshakes out of this 15 bucks. But, after the first week, he opened up his laptop Motzei Shabbos, and he told his son, "We saved approximately 30 35, whatever it was." He took that $30, and he opened a fund in Fidelity, and he called it a milkshake fund. This is how he called it. And every Motzei Shabbos, he deposited the $30 that he saved that week. Now, come to figure, $30 for 10 years, that's $300,000 of milkshakes. Okay? Just a milkshake, that's called planning correctly. You still have the same milkshake, you still have the same fun, and you still have the money. Now, someone asked me, "So, what? You want to take out this whole thing? You're going out with kids and family?" I said, "No. If you go out once in a while with your kids and your family, you buy it's it's it's a normal thing, you know? We all have a normal life. But, when you're in a weekly habit and a monthly habit, or whatever it is, steady, and the same thing is with monthly subscriptions. I promise you, everybody in this room should look at their credit card bill, or on their phone automatic things, they have subscriptions that they don't even know they have. You needed to use one strategy PT, so they say you need to make for free 30-day trial for $20 subscription. And then you stay with this in it runs. You can find on your bill 20, 40, 50, even $100 a month that goes to Tim Miller for no reason. Everybody go through your bill, you'll see that you have subscriptions that you don't need. This is the newspaper magazines you made once and it's a life to connect. This called being mindful with your money. >> Thank you. >> Wow. Wow.