00:00.31 archpodnet Hello and welcome to the CRM archeological podcast episode 253 and for today I am your host Andrew Kingculla coming at you live from Southern California and with me is heather. 00:16.33 Heather Good morning or hello everyone good morning Andrew because it's morning you can hear my cats in the background meowing for their food. So no. 00:21.66 archpodnet Ah, yes. 00:27.16 archpodnet Ah I can at at first I'm like is that a person. What's happening there. 00:33.29 Heather So my husband went to go walk our dog and now my cats know that it's it's a breakfast time so they're going to me out until he comes back. So just so you know that will be in the background for the next five minutes 00:41.30 archpodnet Oh right right? I I I can't believe they're going to meow over all the genius things that I'm about to say it's It's shocking. Um. 00:48.62 Heather Yeah, you know when you let me tell you when you have to start worrying Andrew when I start meowing. Overall the genius things that you're saying. 00:56.64 archpodnet Um, when's that yeah you know that I think I think that will be a time to worry. Yeah, okay, yeah, if you can just keep keep it keep it locked up. Everything's going to be Okay, ah so. 01:04.86 Heather Ah, so I'll try to refrain myself. Okay, okay, um. 01:14.31 archpodnet For today I thought we would talk about sort of savings and investing and what to do in the long term with your money because I know that when I was a young person starting out in crm that I I was always super curious about this I always tried to learn. About long term finances and investing and saving and I ultimately did but it was slow because I was always a little reticent about it. I was always a little scared I was like oh my god what if I get taken advantage of you know so really early on i. I could have made better decisions than I did I didn't do terrible but I definitely could have done much better. So for today's show I hope that we can kind of go through the different styles of savings and investing and we can talk about our own experiences and kind of give give people. An idea of what to do and for them to realize that they don't need to be scared that there's a lot of different ways to invest your money for the long term and they are relatively safe. You know so that's where I'm going with this heather. What what do you think about that. 02:25.41 Heather Yeah I I think it's great. Um, because I'll just be honest I I just kind of for a while just put my head in the sand it was overwhelming. Um I didn't know it looked it sounded like a big. 02:34.77 archpodnet Yeah. 02:41.22 Heather An adult problem and I didn't see myself as an adult yet. So so and that's the problem like um, smart people start with the process early on. In fact, they start saving. You don't even have to be an adult to start saving so you know and the the exponential growth of. 02:42.45 archpodnet Yeah, me too. 02:55.26 archpodnet Yeah, yeah. 03:00.75 Heather Funds can make a it makes a huge difference so you know you don't want to catch up but it's never too late even if you're like right now you're 40 and you've been a shovel bomb your entire career and you've never saved anything. It's not too late. You do it now start now it's better than starting when you're 50 So. 03:18.20 archpodnet Ah, absolutely. 03:19.31 Heather You can't put your head in the sand and any little bit helps any little bit. Yeah. 03:21.64 archpodnet Yeah, yeah, it I man I can't agree more because here I am sitting here at 50 you know and and thinking like thank god I did some investing and I think I have the feeling that so many people in this age range do where it's like oh man I should have invested more you know, but at least there's. 03:37.97 Heather Yeah, can't look at it that way. It's just wasted time Really I mean unless you're looking at it in a solution based way. It's just you know? Okay, these are mistakes that I've made how can I How can I improve on that That's fine. 03:40.85 archpodnet Something sitting there. So I think ah I now I know yeah right. 03:53.93 archpodnet Exactly. 03:56.50 Heather But if you sit there and you use it as an excuse in your mind to not do anything because you're like you know what? I've already I'm already too old. What? what? what can I do now mights will just enjoy it. Enjoy my money now. Ah right exact. 04:05.22 archpodnet Yeah what's that's right? What's left except death. You know why should I put money away. Um, no, but I I I just agree so much that this is so important. So. I thought I'd started at the bottom you know? yeah for young people. It's like oh so do you have a savings account now I am not here to recommend a savings account as any kind of long term investment because it's not the percentages you get on the savings account are terrible. You know they're like 1 % or something um, but. 04:23.51 Heather Right? ah. 04:33.33 Heather Um, up now. 04:37.14 archpodnet I do think it's worth it to have one I I tend to use a savings account as like a way station for my money meaning like I need some money that's easily available that I know I'm going to need in like three months or something you know, but I'm ah not. 04:49.24 Heather Right. 04:54.48 archpodnet Thinking of it as an investment I might have some money in there that I will invest in like three months but I'm not I'm not ah pushing a ton of money into my savings account thinking oh in 20 years this is where the big money is because it's not right? yeah. 05:03.17 Heather Right? It not at all it literally you're going to lose money on it with the interest that you have versus inflation you will lose money if you keep it in the bank. But the 1 thing I think it's a good start. 05:13.53 archpodnet Exactly Yeah, it's yep. 05:22.60 Heather Because you really should have especially people in archeology. They don't have a full time job. You should always have like three four months of what you need moneywise to keep you going if you couldn't work at all so you should always I mean like the key thing is three months you should have three months worth a salary in your bank. 05:27.19 archpodnet Ah. 05:31.33 archpodnet Right? yep. 05:41.54 Heather Just in your savings for the rainy day for the time that you know you need it. You just can't find work or whatever. Um, and and that should be I think your first savings like that is what you should be building up first and then get. 05:48.24 archpodnet Um, yeah, and that. 05:56.48 archpodnet I I agree to a point. Um I I think you should build that up but also do some of the other stuff we're going to talk about because what can happen is as we talk about three months of savings I mean. 06:04.67 Heather But right neither do I Neither do I Yeah I think the reason I say that in in and I think it's kind of a common practice is because there are places that you put your money for investment. 06:07.67 archpodnet I personally don't have that right now and you know and when you think three months savings you're like oh my god that is so much money. Yeah. 06:20.40 archpodnet Um. 06:23.46 Heather Um, that you can't take money out of so let's say you're putting everything into 4 1 k and now all of a sudden you need money now you can't take it out without a big penalty. So that's why you know that's why they say it's good to have some savings here I don't have three months either but 06:23.74 archpodnet Yes. 06:30.57 archpodnet Um, yeah, yep. 06:39.77 archpodnet Yeah. 06:42.90 Heather If we plan for 3 and we have a month that's better than nothing. Yeah. 06:44.32 archpodnet Exactly and I think that's where we really all fall and I'm I'm so glad you brought that up because I hope that makes people feel a little more comfortable about this, you know like because yeah, you don't have three months I don't have three months but we have we try you know to have a little bit just in in case. 06:54.60 Heather Ah, yeah, um. 06:58.39 Heather Yeah, yeah. 07:02.42 archpodnet And that idea of getting the money fast. That's what a savings account is good for you can take it out right now you know, um I would also say sometimes people weigh the difference between a regular old savings account like it. You know like a wells fargo or something which are the very worst. Um, but things like a credit union. 07:04.75 Heather Yeah, yeah. 07:13.99 Heather Hidden. 07:19.86 Heather Yes, yep. 07:20.16 archpodnet Is a little better. It's still the same idea if you don't use it for long term you know savings. But you'll get a slightly better rate. It's great to be a part of a credit union because um, you can also get things like um ah help with buying a car. You know they'll they'll give you really good rates. 07:38.11 Heather Um, ah. 07:40.23 archpodnet On ah money for for a car that kind of thing I'm a member for credit Union and I I do recommend them. Ah, it used to be a little bit more difficult because the branches they never have any branches barely right? That's why you'd be like okay that's why I do well fargo. 07:53.76 Heather Right? Fees Yeah, you have fee? Yeah, just be careful. You do credit Union Just got to find a credit unions not goingnna you know have fees on rich on Etms and things like that because I can be quick. Oh now you know with venmo and and. 08:02.35 archpodnet Exactly? Yeah yeah. 08:12.73 Heather Their types of platforms are really I don't I I don't use Atms like I used to at all. Yeah, right? yeah. 08:19.68 archpodnet Exactly That's what I think is a boon for credit unions because you don't need the physical spot like you used to So they're they're a better deal than they used to be basically ah and actually as you brought up. There's also this sort of online savings accounts. 08:35.00 Heather And that. 08:36.49 archpodnet You know there's there's sort of this third party which will give you the best rates of all still not good for long term investing but um, it will give you slightly better rate and in my experience the online ones it does take a couple days to get the money out. It's not like a 4 1 k but it's not quite as liquid as you know. 08:49.10 Heather Right? right? and you know what like I think maybe we talk just a little bit since we are talking about banks because you know my my son he's he's 21 he's going and you know he has an account and everything we've talked about. 08:55.57 archpodnet Um, a bank. 08:58.77 archpodnet Um, yeah. 09:08.97 Heather You know how how to set things up. Um, when you're getting paid and and I think there's a lot of people that aren't being taught that like when you and I were in school Now we sound like old people. But now you and I were in high school we had We were taught how to write a check. We were taught how to have a you know how to keep a um, a register on your bank. How to. 09:14.85 archpodnet I. 09:23.11 archpodnet Um, yeah. 09:27.92 archpodnet Yep. 09:28.46 Heather But just like that book. We actually keep track of your expenditures. Ah nobody does that anymore. Yeah, yeah, yeah, it's really important and I think you know there's these really, there's great. 09:31.46 archpodnet Yeah, the old school checking. Yeah, the the life Checkbook with the like writing down all the numbers I know nobody does that. But it's such good experience. 09:46.98 Heather There are really good banks out there that have ah credit cards that are tied to them and I think that is 1 thing when it comes to um, especially archeologists that are in the field all the time with expenses you know I I see I hear people say well I want the company to put everything. 09:49.78 archpodnet Um, yeah. 10:00.90 archpodnet Ah. 10:05.87 Heather Ah, take care of everything for me now as long as you're working for a company who's going to give you expenses regularly like they you get the expenses within a week or 2 tops then then I don't think that's the way to go. You should be purchasing. 10:15.00 archpodnet Yeah, yeah. 10:23.76 Heather Ah, paying for hotels and all your food yourself and do it on a credit card that gives you points and you get oh my gosh. It's amazing. What you can what you can do and then you can start you know paying for let's say some of your hotels are for free. 10:27.93 archpodnet Yes. 10:41.40 Heather Although be careful about that because you have to have receipts for some but you have to be strategic and you can use these you I mean think about how much you pay for as a field archeologist. It's thousands of dollars a um 10:41.88 archpodnet Yep. Yes. 10:52.35 archpodnet Um, yep. 10:57.49 Heather A week or I mean a month thousands of dollars a month if you're in the field all the time and you're traveling. Um that is definitely ah the the way to go and make the most out of you know all your purchases. 11:08.86 archpodnet Absolutely I can't agree more get a credit card that has some sort of points some sort of cash back. You can get you can get cash back at like one and a half percent without even trying you know and so. 11:23.20 Heather I for. 11:24.61 archpodnet If you're charging thousands of dollars like for me I do that and I get like I don't know fifteen hundred bucks a year back? Yeah, like it's it's great. So ah yeah. 11:31.68 Heather Yeah, like Chase ah chase sapphire they have a great their card. Their points are terrific and then they have if you watch them. They have like 25% you you can pay with your points and you can buy things. 11:38.24 archpodnet Yeah. 11:45.41 archpodnet Right. 11:47.52 Heather And you get a 25% discount on what you buy with your points. It's like yeah, you just but you have to you just have to do your homework on it. Yeah. 11:51.88 archpodnet Yeah, you're right, you have to be strategic like I have a american split express blue cash one that that goes up to 5% depending on what I buy um and then I have a ah. Capital one one that does the one and half or two percent or whatever. But again I'm knowledgeable I looked for these I specifically you know, picked them out also of course with credit cards. They can give you deals on um, rental cars too like they can give you really good rental car insurance and that can. 12:18.60 Heather Yes, no. 12:22.83 archpodnet Matter for CRM depending you know if you need to do something like that um travel perks. 12:26.95 Heather There's there's one, there's there's one absolute must though if you're going to do this which I is really extremely obvious but you have to say it you got to pay it off after the month or you're paying interest. Yeah I know raise the idea. 12:32.70 archpodnet Which is what what? no I don't want to do that. That's that part is no fun at all. Okay. 12:44.22 Heather Yeah, and so people ask Well why do like I you know my son asked early on. He's like what why would credit cards loan me money like this I said because more often than than not people do not pay it off and they get the interest and just think about the millions of people that they have on these credit cards. That's a lot more money that they're earning. So. 12:50.12 archpodnet Yeah. 13:00.40 archpodnet Right? right. 13:04.35 Heather That's what they're counting on your credit cards are counting on you not paying off your monthly balance and so you know it so everything that you're saving. You're giving back to the credit card. So as long as you are good about making sure that you you know pay it off at the end of the month as soon as you get that expense report or the expense check. 13:07.44 archpodnet Yeah. 13:14.40 archpodnet Yep. 13:19.70 archpodnet Ah. 13:22.94 Heather And you pay it off immediately. You're golden I mean it, you're working the system. Yeah. 13:24.93 archpodnet Right? It's awesome and and there are years when it doesn't happen like for me right now I have a credit card balance on one of my credit cards and they are making you know they're all the money they're given me they're getting back. You know, but yes that is exactly my experience. 13:33.24 Heather Sure I do too. Yeah happens it happens it comes and goes Yeah as long as you wash as all assists of wash. Ah for for credit cards. You just don't want to hold it too long and the the other thing is like. 13:44.61 archpodnet Yes, no. 13:50.42 Heather Understanding and I know we're here on investments but part of investments is being smart with your money right? not throwing away money. So um, the more you throw away the less you have to invest but you know also also understand if you're late on a car they can increase your percentage rate and of interest and so that's 1 thing just at least. 13:58.12 archpodnet Um, perhaps ah. 14:04.43 archpodnet Yeah. 14:09.98 Heather Minimum balance. One thing I just do the automatic payment and then I put plus a hundred or plus 200 just to be safe. Yeah. 14:14.12 archpodnet Yeah, me too always me too same thing because they'll get you at any angle you know. 14:21.40 Heather Oh sure. Yep, and then there's so no turning back at that point they won't negotiate a lower and or they will but very rarely is that successful. 14:29.75 archpodnet Yeah, exactly you're just you're at their whim. Um all right? Well on that note, this is I think a pretty good spot to kind of stop and go into our next round of investment Advice. So when we come back. The roth Ira and the 4 ah 1 K See you guys in a minute. 14:49.77 Heather Um, woo woo.