Change My Mind Fund (BA Q&A)

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can do to build wealth. I have an Old Faithful car Okay, Tiffany, just like in your early days, and I'm slowly saving for a new car, but I'm not pressed about it. I'm in a long distance relationship, not married. I have ten K in my emergency fund and fifteen K save for a car in the future or if Old Faithful breaks down. My rent is seventeen fifty. I

travel frequently because it's my favorite thing to do. Not interested in purchasing ta a home right now because of how often I travel, and I don't know if I'll stay in my current city. I'm grateful for I'm grateful for the position that I'm in, especially having no debt, but I feel immen's personal pressure to not squander this time where I could really be building wealth. What I'd like to know from you all is what things I can be doing right now that will set me up

for wealth in the future. PS. I love y'all's disclaimers for the BAQA. My attorney brain is always like, yes, tell the folks, did you.

do to like enhance. So one, I'm curious to know how many months is your you know, the you have a ten thousand dollars save for emergency funds? You know how many months saved is that? Is that at least three months? And as an attorney, how long did it take you to get your job? And how quickly do you think you can replace that job? So if you're like to be on a super safe side five months, I could definitely get a new job whatever that is.

I would just want you to make sure that that emergency fund is at least three months and ideally the amount of months you think it would take for you to secure another job with similar income, So that'd be one. And you might be like, we good on that, Like it's three months, and I can get a job with three months to.

there's investing for wealth. So it looks like you have the investing for retirement part down, and so you've maxed out your four one K. You might want to sit with a financial advisor to make sure that there's no other tax advantage maxing out that you can do. You might just be under the threshold where you can potentially put money into a rowth IRA. But I don't know like you would want to, you know, like look at

those numbers, because I laughed when I checked. It was like, yeah, it was like it was like one thirty nine as long as you made under that. But I can't remember if that was like a couple or a single person. And also too, I don't know how much money you're putting, Like what when you say you max out, I don't know how much money you are putting in your four one K because there is a max in general when you can put money into a tax advantage retirement account.

So I would want you to max out across the board if you have the excess, to max out all that you can when it comes to tax advantage retirement accounts, whether it's four one K, roth ira ira whatever, that looks like, okay, so that's one, so that's two actually. And then the third thing is I would want you if you are like, no, girl, I'm retirement is max. There's nothing else I can do? Great, then I would want you to look at investing for wealth so you

are in the position to do so. This means that it could be a brokerage account just like it's similar to your four one K, but you know you would be in you might be in the market via ets, mutual funds. This is something that you would want to sit with a financial advisor to kound and decide what's best for you. You are in a space where you would want to ask yourself, Hey, financial advisors. So there are there are sites like x y z x Y planning right,

there's like that's where you can find financial advisors. There are sites like wealth Ramp is one of them. There are sites like I have one called my Money. No, your moneymatch dot com is one of them. I know is one way Mandy that you work with.

that you kind of tell them. So that's the position that you are in now where it's like it seems like you have the foundational things down pat which is great. Now you get to kind of future plan and say by fifty, I don't want to work anymore. By fifty, I want to live in you know, BALI whatever that is. And a certified financial planner can help reverse engineer. But not only that, because that's only a small piece of what they do. I want because you are starting to

grow well for yourself. A certified financial planner is going to help to holistically look at your life. They might say, are you fully insured for where you are now? You know, like do you have enough insurance? They're going to look at like, you know, depending on what other assets you have. Do you need do you have a will? I know? You know have children right now? You know, does it make sense for you to get a trust? It might not for where you are because you're still in your twenties.

But a certified financial planner is going to look holistically at your life and find any holes and help you to plug them, and you can kind of it is possible literally to get to a point this is where I am in my financial journey where there's nothing quote unquote left to do other than to continue on the path that I'm on, because it's like nexting out on my retirement.

Make sure you're retired, your emergency account is fully funded, make sure your retirement account is fully funded on both sides of the aisle, and sit with a certified financial planner to plug in any of the holes and continue to enjoy your amazing, fabulous life.

different than twenty nine. And I mean the way I was at twenty nine versus now is just so fundamentally different. I would say save additionally on top of your emergency fund for like the what if I want to change my mind fund? Like can we just have a change my mind fund a pivot fund and what you don't have to have a name for it or have a

plan for it. But I would be like, as you're continuing to invest in build wealth, that's true, But I just feel like the financial elasticity, the financial flexibility to grab some money that you just have and then just make something new, like do something new, whether it's starting

a business, buying some property, whatever. Just having a little bit of that, not a little bit, but having some of that on the side or at least acknowledging that you may want to have it on the side, is just Yeah, it's a game changer, I think for your mentality and also like get you out of that that cycle of like, oh, this is my job period. I'm going to do this job and do this job and do this job and do this job forever and ever

because it might just change down the line. And yeah, I think we all have that personal pressure we should always be doing more, always be doing more, Yeah, I would say, And I think Tiff and I we talked about all the time, like there's what people are doing, and there's sort of like what helps you sleep at night? Yes, so what other people are doing maybe not is not enough for you for your level of peace that you want.

So learn all the things like you've been doing and then do it your own way, you know, do it whatever, do whatever you need to feel safe and secure. And I'm super proud of you.

and all advice will be greatly appreciated. Oh maybe, what do you say for lady Die?

So for me, what was crucial in my twenties was creating a savings fund that was hard to get to. So I mean a separate like I literally had a separate bank account and I had my I had my primary bank, which was I don't know, I'm not gonna name names. It was blue. And then I had my this is my savings bank, which is purple. And I made sure that when I got paid everything was automatically like it would automatically go to my and my online

savings was where I kept my emergency fund. You can get to it, but it's not as easy to get to. I didn't carry the debit card in my wallet, and you know, little things like that, so it wasn't really easy to get to. This was before you can just pay with your face and it's so freaking easy top money. Now there's nothing we can do. But yeah, keeping a little bit far away, at least mentally for me was great.

So I logged into my primary bank account and I would know this is the money I can spend because all my other bills to myself have been paid. And giving a name, like, for example, at that online savings I created, you can create sub accounts of that main saving so you can have you know, a savings for my down payment, which I say, for a savings account for maybe holiday spending, student debt, payoff whatever it may be, and then having a name attached to it just reminds

you of what you're saving for. That's the biggest thing. And you know, paying myself first, automating those savings and keeping it separate and apart from my main checking account was a huge reason that I was able to do things like pay for my wedding in cash and buy a home, you know, with a huge debt with a

huge a twenty percent down payment too. You can pay for a car in cash, like these things that I think should be celebrated, right along with getting a big raise or getting a new job and things like that.

you can't roll upon it in person. And the reason why that's so critical is that if you're going to transfer savings from this savings account at this online only bank to this checking account at this regular bank, you're looking at minimum twenty four hours, maximum seventy two hours. Depending when you do it, you're transferred, so like if it's a holiday or whatever. So that means if you are at Target, like me, oh, I just love me some Target. It was just thinking about what I want

to go back. If you're at Target, Oh, it's cute. And so if you are at Target like me and Nady's baby police and your checking account says gird now you know, daggone, Well, ain't no money in here like that. Normally, if your savings was at the same bank, you would just make a quick transfer within seconds, your savings money will go to your checking account and you could swipe.

But if your savings is at a separate bank, unless you're rolling out like a sleeping bag, you know, because it's gonna take twenty four hours minimum to go from your savings to your checking account at a different bank, and it's going to force you to say, isn't even that serious? Girl? Likely it isn't. So that's one that like, I agree. So and then what I will say is, oftentimes people dip into savings because they are not honest

with the way they're wanting to spend. So if you set aside some spend money for yourself, it will reduce your desire to dip into savings, meaning like I give myself an allowance, you know, because if not, I used to put almost everything into saving, being super ambitious, right like you get paid and it's like I have bills in savings. That's it. Like bo wait, I want to pizzas.

all the money left over after bills. You might want to allocate twenty five of those dollars for yourself or thirty of those dollars, you know, so that way, when things come up, you feel good about being able to enjoy life now while also setting aside for savings. So that would just be my second piece of advice, which is set aside some spending money for yourself so you're not going to be dipping and then feeling bad every time you dip. It's like, well, I don't have to.

You know when I did, we did. We did, lift your hands upon my hips when I did, we did, we did. So one said I love how your manage if you break it out into song, I'm like, yeah.

it on something that you like. Get clear on what brings you joy, what puts what fills your cup, you know, so that when you spend that twenty five dollars, it's on something that you can really feel good about, because you don't you're not going to have you're in your mid twenties, you may not have a lot of that spending money. So if it is just twenty five bucks, you know, let it be a delicious meal that you share with friends. Let it not be you know, a

shake che shit. What can twenty five dollars by these days like half a shake shack Burger and like a couple frieses.

in questions. Yeah yeah, I was just saying that. But when you are like your big sisters, you know what I mean, like more.

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