An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J.
Trump's leadership.
I'm Christy nom the United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported.
You will never return.
But if you register using our CBP home app and leave now, you could be allowed to return legally.
Do what's right. Leave now.
Under President Trump, America's laws, border and families will be protected.
Sponsored by the United States Department of Homeland Security earners.
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Let's do it.
My graduates from my school being forced backdrop drop mic drop backdrop drop.
We're gonna talk about some financial tips day people. Right, We're going to try to give a few gyms that people can use in a day to day life because a lot of times, as you said, we don't know, and it's an ongoing learning process.
Right.
So one of the things I want to talk about is that we covered credit and the importance of credit. And I know you have a credit company, right for sure. But I got a question a DM where somebody says, like, what's the best way to pay off your debt? Like, I know some people have a process where they pay off the higher interest credit cards first. Some people do the lowest balances first, Like what's your philosophy on that?
Yeah?
So so I like, I like the lowest balanced philosophy, and so I wrote a book called you know what the fight goes? Twelve steps are paying your credit? Right, and I talk about the snowballs is what it's called. But the reason though, right, the reason why the philosophy on taking your lowest balance and paying that all first is important is.
Because you want some small wins, right.
It's the mindset I've seen people who try to say, all right, you know what this credit card is charging me? The highest interest rate, and so I'm gonna pay that one first, and then they're paying the minimums and they're trying to pay that off, and they wind up looking at their credit card balances each month and it looks like nothing is going anywhere. They get discouraged, and they wind up doing something else because they don't see any
forward motion. The best way to pay down credit card debt is it will always be to take all of your credit card your credit cards, put them in order from smallest to largest balance, make sure that you pay off the minimums on all of the cards. But it's gonna start with a budget. Right, You're gonna have to
budget a certain amount. You're gonna say, you know what, I'm gonna budget four hundred dollars each month towards debt, pay the minimums on all of the cards, and whatever's left over from that four hundred dollars, you're gonna take that money and you're gonna pay off the lowest amount completely.
Right. The following month, you do the same thing.
You take the lowest amount, you pay the minimums, and then whatever's left over you snowball that amount to the next one. You keep doing that until you get this one account that's your biggest account, and now you take that four hundred dollars and you tackle it. You keep tackling and keep tackling it, and then eventually you'll realize
that you'll be debt free. That works because it motivates you. Right, If you have a credit card that has two hundred dollars on it and you're you went from having five cards to four cards, you see like, oh wow, I see the result.
I saw that.
I that if I stay focused, you know, I cut down this one balance, then the next month, you know, that card that has five hundred dollars, it takes you two months to pay that off.
Then that's that.
Those are those small wins, and psychologically it gives you the you know, the motivation to keep it.
At the same time, when you're chopping them down, you're decreasing the utilization rate absolutely.
So we're trying to keep that under thirty hundred thirty.
Percent, and I think what people people love that thirty percent number. But the fact of the matter too, is that so your credit goes three hundred to eight fifty, anything over seven twenty is excellent credit. Those who have a seven twenty or above actually keep their utilization between ten and fifteen percent, lower even lower, right, because the mindset, or the way the Fyco algorithm works is that it rewards people who don't seem as if they need credit.
So the more it looks like you need credit, the more they'll lower your school That's.
A fact because actually, I just I haven't checked my credit a long time. I just checked it and it was a seven eighty and at fifteen percent futization ragual exactly that same number in seven eighty.
So if you think about it, right, if I got one hundred dollars card and I'm paying ninety dollars, right, that seems affordable, right. But if I got a five thousand dollars debt and I'm paying ninety, you don't feel it exactly. You know what I'm saying. They gonna take interest on that. Now you really only pay fifty dollars, right, It doesn't feel the same.
But let me ask you this. Let me ask you this, though.
So Let's say you have ten credit cards, right, you pay off all ten? Yeah, four, Now you only start using one on a regular basis, You're not using the other nine.
Does that hurt you? It doesn't, So, yes, and no. Right.
So what happens is this is that your utilization ratio is an aggregate of all the cards that you have, right. And so if you have you know, ten cards, you're not using any other nine and you're only using the one, it's gonna help you because that one card is a small percentage of your total utilization. But what happens is if you're not using the other nine cards and the credit card companies realize that, you know what, this person's not using the card, so I'm going to close this account.
Then as they close the account, that hurts you because now fifteen percent of your score is based on your length of credit history. And so one of those cards might have been a card that you had for a long time which was helping you score, and once that
card is closed, it negatively impacts you. Plus use, you lose that utilization, right because now that credit limit is no longer available, so that your utilization ratio is going to go up once they close those cards, right, And so it definitely is sort of like a gain, like
if you have that many credit cards. A lot of times I like to say, if you want, like if credit matters, right, if credit doesn't matter like, if you're not gonna buy anything in a short term, then you know, I wouldn't put stuff on your credit cards just to keep this number up, right, But if credit matters, or if you're gonna buy something or whatever the case may be, and you need credit, I would say, you know, use your credit some credit cards for things that you would have paid cash for anyway.
Right.
And so if let's say, for instance, you use cash to buy gas, right, use a credit card and that money that you would have, you know, paid or that money you would have used to buy the gas, pay off the card with that.
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An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from El Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J.
Trump's leadership.
I'm Christine Nohm, the United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lower levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you were here illegally your next you will be fine nearly one thousand dollars a day.
Imprisoned and deported, you will never return. But if you register using our.
CBP home app and leave now, you could be allowed.
To return legally. Do what's right. Leave now.
Under President Trump, America's laws, border and families will be.
Protected sponsored by the United States Department of Homeland Security.
For that way is at least some activity on it. So the credit card companies don't close.
Let me ask you this. Also, let's say you get because they got all kind of credit card. Now they got cards for like medical purposes.
Right.
So let's say you have a low utilization rate, but you get one card for a medical purpose and you max that card out. Yep, but your other utilization is good, but you max that one card out, that hurts you.
It doesn't because it's the aggregate, the right. And so if you let's say you had ten cards with one thousand dollars, right, and you max out one card of one thousand dollars, your your utilization is still only ten percent, right, because your total available limit is ten thousand when you look at all of the cars.
And so that's what I was saying, where when it Yeah.
When you close it, it can hurt you because if now, if you max at one thousand dollars and let's say the non card say, you know what, he ain't using these cars to let me close these out. Now, your utilization go from ten percent to one hundred percent. And that's gonna immediately.
You know.
That's a smart shress, you though, Right, if you have ten cars, maybe you have ten different purposes.
So if it's a supermarket, or if.
It's gas, or if it's you know, electronics or something like that, like you have a purpose for each one, just like I'm randomly all right, that one's max.
Let me go to the next. What I'm saying, make a purpose for each car?
Yeah, because because because credit card debt is the worst type of debt that you could possibly have, right, Like credit card debt, you're paying more than what it's worth.
So yeah, and.
Student loans, I mean, but even with student loans, you know, you know, at least with student loans you get a degree, you know you're able to like, you know, you know what I'm saying, Like I'm not a you know, because I didn't get a degree till later on in life.
So I'm you know, I could go either way with student loans.
But credit cards are like is there's no reason why you should be paying credit card debt?
You know what I'm saying.
All right, let's good information, very good information. So let's go retirement plan. Yes, right, people ask another question I got in the DM Okay, so four one k yeah, Ira raw ira cantut with the four one K?
Why is it a good idea for people to put money into a four months man? So the foll on k is it's like free money. So so first of all, is this right?
Is that when you think about your the money that you pay to the I R s uh, when you put money into a retirementcount, it lowers you, you know, what you have to pay to them, because part of that money is now tax is not tax deductible, right, or you don't pay taxes on that money, right. And so putting your money in a full one K allows you to say, you know what, Uh, in the future, I'll have this money to retire off, but I don't have to pay ten on it right now.
Right.
But also a lot of employers will match your four one K, so they might they might match you up to four percent, which means that if or four percent six percent. Four percent has been sort of like the industry norm that I've heard. And so if a job says if you they want to encourage you to say for retirement, so they say, if you put it, whatever you put in, we're gonna we're gonna match it up to four percent, which means that four percent is free money.
And as long as you're invested, they might they might have a stipulation, all right, you have to be with our company five years or whatever the case may be. You keep that money and so not investing in a four one K, you're actually losing money, free money that the employer would have given you. And so you know,
so that's one reason. But then when you think about a retirement, just as a whole, social Security might not be here for us, and so by the time you know, we become of age and it's time to retire, there's gonna be a certain number that you're gonna need each month to live off of, and you're gonna want to have an account that will be able to supply some of that income so that you you don't have to be sixty seventy working at Walmart.
So and in terms of people who come from the education field, obviously, I mean I speak to teachers all the time, and yes, they educate our children, but they have no idea about finance. So we don't have a four to one kid, we have a four H three B.
Yeah, same thing.
Same, same exact thing, right, Because the importance of that, especially you know someone that works in the education field, is that you want to make sure that you're not going to be able to teach forever and then when it's time for you to leave that you know that institution. You want to be able to have money coming in.
You want to diversify your income, and so putting putting that money out up front is going to allow it to grow and if you find right So you know a lot of people are like weary, you know, especially when you think about the Bernie madeoffs and what happened in the you know, the great recession two thousand and eight, two thousand and nine, people are like leary of you know,
putting their money in the markets. But if you remove that isolated incident out on average, you know, you know, when you look at the stock market, markets are you know, it's always positive, right, and so just kind of keep an eye out on where your money's being invested. But that money is also gonna it's not like the money that you put in is that's not gonna stay at the amount that you put in. You're actually gonna earn interest on that and that money is going to grow
through compound interest. So that way, you know, what you start off with is gonna give you a nice little cushion, you know, for you when you retire.
And also the raw there's another great way, Yeah, I love it.
That's the way where you you don't pay you don't save money or taxes today.
But it's tax freelated.
On absolutely, And honestly I like that better, right, because what happens is this, you know, tax deductible means that you know, I can deduct this amount if I put If I put ten thousand dollars, or let's say I put five thousand dollars towards my retirement, uh, and I made forty five thousand dollars, then I'm only I could deduct that five thousand off my taxes. I'm paying forty
thousand taxes. But then now that five thousand that I put, when it grows to one hundred thousand when I retire, you know I now need to pay taxes as I will withdraw that money, right and so and so it's it's you know, it's tax deductible, but you pay taxes later. And the the whole thought process is that when I get older, I'll have lower a lower tax burden, and so that so.
That that works that way.
But with the WROW, I love the ROT because it's not tax deductible, but it's tax free distribution, right, which means, all right, great, I put five thousand dollars into this into this rough IRA. This year, I made forty five thousand dollars, I'm gonna pay forty five thousand in taxes right But now that five thousand, when it grows to one hundred thousand, and I could withdraw a tax free, I never have to owe the irs anything on that money, on that on that growth of that money. It's you know,
I love that especially for young people. Maybe if you're a little older, you know, it may not necessarily be the right thing to do. But the reason why I love it for young people is because you know, right now, as as a young person who has more, you know, more earning ability.
You could take you know, bigger risk.
And if you take that money that's in a raw and you put it into something that is giving you a great rate of return, all of that growth, you don't have to pay taxes on.
Yes.
Yeah, somebody said one time, they said, if if you, if you, if you were never told the information, you can't be help responsible. If you were told the information and just chose not to do anything with that's on you, absolutely, So you can.
Never say you weren't told.
The information applications to your application to you were trying to give you as much information as we can give you, but ultimately you have to apply it.
My graduates from my school being forced bad drop Drop, Mike Drop bad Drop.
An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J.
Trump's leadership. I'm Christy nom the.
United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported.
You will never return.
But if you register using our CBP home app and leave now, you could be allowed to return legally.
What's right? Leave now?
Under President Trump, America's laws border and families will be protected.
Sponsored by the United States Department of Homeland Security,