Questions About Money? The Answers You Need To Hear
The following is the transcript of the video above, “Questions About Money”. Therefore, it may be awkward to read. If you can, I would encourage you to watch the video. Automatically generated closed captioning is available on the video.
Hey, Adam Hagerman, financial coach here. As we launch the channel this week I just want to kind of give you an idea of what you can expect and how I’ll answer your questions about money.
My videos are going to be about how you can take the information and use it to really help you improve your personal finances and that’s kind of the main point here, it’s the “you factor”. It’s helping YOU better understand your finances because everybody’s different, right? The term is personal finance and the keyword there is personal. This is very personal to you and what you’re going to do with your finances.
What you’re going to define as Financial Freedom for you is going to be different from the person that lives next door to you, to your co-workers, to your family and friends. It’s going to be very different for you.
How I’ll Answer Your Questions About Money
Your definition of a lot of these things are things that you’re going to want to do financially, so when I talk about personal finances I want you to understand that when I say things, a lot of times there are so many other things that you kind of have to go through in the processing of the information that I’m providing because it’s not very cut-and-dry.
A lot of times people want me to kind of tell them exactly what to do. They want a rule of thumb. Maybe you want rules of thumb and unfortunately, that’s not something that I provide. In most cases, I might give some general guidance on something. Some kind of like, “Hey here are some thresholds to hit this mark, but then maybe you need to go a bit further than somebody else somewhere else”.
So, it’s important to know that because many other people out there, you know your family, friends, co-workers, and other financial professionals, many times will just give you that [quick answer], “This is exactly what you need to do. You need to save 15% of your income for retirement or if you want to buy a house you need to put 20% down or at least put 5% down”.
Those are those rules of thumb that I’m talking about here and you got to be careful about those things because when people ask me financial questions if you asked me for an answer to questions about money, I would usually respond with, “it depends”. It really depends on what your personal goals are. The things that you want to do, things that you want to accomplish with your finances. Unfortunately, many of those family, friends, other financial professionals, they’re going to kind of answer in one of two ways.
How Others May Answer Your Financial Questions
Number one, they’re going to probably answer with a response is going to justify THEIR decisions. Things that they did. For example, if you asked me if it was a good idea to buy a house, if I purchased a house myself I might say, “Yes! You should absolutely buy a house!” because I’m trying to justify my decision to purchase a house. If I can get other people to feel like they should buy a house, then I’ll feel much better about my decision to do so. I wasn’t really thinking about you in that conversation.
I’m letting you know that I’m going to think about you in that conversation. I don’t have any bias [when it comes to] buying a house. I’m not a real estate professional. I don’t want you to buy a house so I can make a commission on it. I just want you to do the thing this right for you and that’s what’s most important here about your questions about money.
So again, family and friends will either answer to justify their decision in that process or they might just think that hey if I know a little bit about this let me talk to them about this particular thing. It might be then that they’re just trying to sound smarter than you because they obviously know that you don’t know the answer to that question because you’re asking them for the answer. A lot of financial professionals will do this kind of thing. Give you a little bit of line of, not necessarily BS, but it’s information that they know if they throw in some technical terms or whatever, you’re going to feel dependent on them.
I want you to be independent though. I want you to make an independent decision based on your current financial situation. Now, I’m not going to just say, you know there’s going to be a video on should you buy a house or not, and I just say “it depends” and then that’s going to be the end of the video. Absolutely not. I’m going to give you the tools that you need to take out and make a decision on your current financial situation. How you should answer those questions about money for yourself.
For example, many people assume that I believe that [as a financial professional] that you need to buy a house. But I don’t feel that way about everything. When it comes to being a homeowner, I think there are lots of people out there that come and talk to me, maybe you included, that probably shouldn’t be a homeowner or don’t want to be a homeowner. Because you know there are things that come with homeownership that won’t come with renting.
You have to replace your roof every 10, 15, or 20 years. Things that are expensive and it’s not just a simple decision to say, “oh well my mortgage payment is going to be less than or equal to what I’m paying in rent, I’m going to be making money here and then again that’s not what you want to here”. You want to understand the steps that you need to take to figure out if homeownership is right for you and what you want to do financially. So, just understand that I’m not just going to cut it off and say it depends. I’m going to give you the tools that you need to make those more informed decisions.
This may or may not be the first video you’ve seen of mine. But make sure you check out this video right over here on defining Financial Freedom. I give you a very important thing that you needed to define and I’m going to loop back to your definition of financial freedom a lot. So, you want to make sure you watch that video to find out what your definition of Financial Freedom is because have your other decisions that you’re going to need to make around your personal finances that are going to be based on that definition of Financial Freedom. If you’re new here, make sure you click on the circle down here to subscribe to the channel. I put out weekly videos on many different topics related to personal finance.
And remember that YOU deserve financial freedom. Take care of your money, so it can take care of you later. See you next time.