Get Good with Money with Tiffany Aliche

TIFFANY: I do want you to be whole.

Financially whole.

And I want you to never, ever, ever run out of money.

ANNOUNCER: Tiffany Aliche is an award-winning teacher of financial education, an author of the New York Times bestselling book, "Get Good With Money."

TIFFANY: This is about transformation.

So I want to give you three tangible benefits that I promise I will help you achieve by the end of this program.

ANNOUNCER: She's created a financial movement that has helped over two million women worldwide and transformed the way they think about their finances.

(audience cheers and applauds) TIFFANY: (exhales sharply) Welcome, welcome, welcome, and thank you so, so much.

There's a question that I get all the time no matter where I go, whether it's the mechanics, whether it's when I'm grocery shopping or even at the doctor's office, which is a little awkward because I wasn't here for you, sis.

I was here to see the doctor.

And that question is, can you help me get good with money?

Does that sound like something that you want me to help you with?

AUDIENCE: Yes.

TIFFANY: Well, good, you're in luck, because hey, hey, hey, it's me, Tiffany Aliche, better known as The Budgetnista, America's favorite financial educator.

And I'm literally here to help you get good with money.

So that means that I'm gonna help you use money as a tool to design the life that you deserve.

I'm gonna help you use money as a resource to not be afraid anymore.

The number one fear I hear from people when it comes to their money is that they're afraid of running out of money.

They're afraid that one day they're not gonna have enough to support themselves and their families.

But I don't want that for you.

And if you will allow me to help you, that does not have to be you.

You don't ever have to run out of money, okay?

AUDIENCE: All right.

TIFFANY: All right.

So this is not just about talk today.

This is about transformation.

So I want to give you three tangible benefits that I promise I will help you achieve by the end of this program.

These three things are I'm gonna show you how to have freedom from stress and anxiety when it comes to your money.

That's number one, my number one promise.

My second promise is I'm gonna show you how to have enough money to buy the things that you enjoy that are gonna bring you happiness, okay?

And my third promise is I'm gonna help you have peace of mind today when your head hits the pillow because you know that you're on financial track.

So this is how I like to think about money, that you're in this car, and you can't touch the steering wheel.

And many of you have your hands covering your eyes, and you feel very much out of control.

How does that feel when you can't touch the steering wheel?

It feels scary.

It feels like you don't know where you're going in your financial car.

But with me by your side, we're gonna grab hold of that steering wheel, and we're gonna drive ourselves toward our ultimate goal, which is what I like to call financial wholeness.

And we're gonna get there in a minute.

So lemme tell you a little bit about myself.

I grew up in a household, all girls, yes.

And my father was a CFO and an accountant.

My mom was a nurse.

And every single week, we would have family meetings.

And during those family meetings, we talked about everything from why I didn't do my chores.

It was always about me.

(chuckles) Why I didn't do my homework.

(laughs) But also, we talked about money as a family.

So that was my financial background.

I really got to learn about money from home with my parents.

And about age 25, by then I was what I call financially perfect.

I listened to what they said.

So I had an 800 credit score.

I think I'd saved like $10,000 by 25.

I was considering buying a home.

I was a teacher.

I felt like I had it goin' on, okay?

Then I did what so many 25-year-olds do.

I decided I was grown, and that I didn't need my parents' help anymore when it came to advice.

And so I decided to stop asking for their financial advising.

Guess what happens when you're 25 and you stop taking financial advice from people who know more than you?

I messed up, right?

So I like to call my mess-up Tiffany's Financial Fiasco.

Right?

Let me list it for you.

So picture this.

So I'm 25 years old.

I said I'm grown.

I said I have money saved.

I wanna buy my first property.

I decide I'm gonna buy a condo.

Sounds good, right?

AUDIENCE: Mm-hmm.

TIFFANY: I bought the condo for $220,000, which was fair at the time, but it was right before the market crashed in 2008.

I did not know that 'cause I did not do research.

So my $220,000 condo ended up being worth $150,000.

(audience groans) Exactly.

Oh, that's just one.

Oh, wait.

No, you gotta hold on.

Yeah.

No, we're gonna keep track.

Second, I said, you know what, I wanna learn how to invest, I'm grown.

Why should I ask my father who has two degrees, one in business and a master's in finance, I don't need his help.

I'm gonna ask my friend, who ended up being a thief, to help me.

(audience laughs) So, my friend the thief left me $35,000 in credit card debt because he tricked me.

Yeah, so let's add that to the list, okay?

Then I decided I'm gonna get my master's, and I wanted to get my master's in education because I was a teacher, which is a good thing.

But I didn't listen to my parents who told me I really should work hard on trying to get a scholarship 'cause I had good grades.

I was like, "Oh, I'll just get student loans."

$50,000 later, I had my master's, but I also had student loan debt.

So let's add all that up.

We're looking at about $300,000 in debt in my 20s.

And remember, it was the recession.

During the recession, I remember hearing that people were losing their jobs, and I would clutch my pearls and say, "Ooh, couldn't be me, 'cause I'm a teacher."

Guess what?

It was me.

(audience laughs) Mm-hmm, so my school was a non-profit-based school, and they lost their funding.

And as a result, I lost my job.

So now I have all of this debt, I'm unemployed, and so I lost my house too.

(sighs) At that time, I remember feeling so helpless and overwhelmed.

I ended up having to move home with my parents, and it was my friend, Linda, who was like, "What's happening?"

I told her about my fiasco, and she said, "Honestly, Tiffany, you know what to do.

"You know the financial fundamentals.

Why not just lean into them?"

And so I did.

I was a teacher for many years by then already.

And I said, "I'm gonna build myself basically a curriculum.

I'm gonna build myself a plan."

And I called that plan my plan to financial wholeness.

And there were 10 steps.

And so through these 10 steps, I was not only able to achieve financial wholeness, but wealth for myself, and that- I was able to pay off my parents' house.

I was able to pay off that student loan debt.

I am now officially debt-free.

And so these 10 steps really transformed not just my life, but the lives of over two million people in the last 16 years that I've been able to help.

And so I wanna share those steps with you, and that's what you're gonna learn today.

I'm gonna show you, in those 10 steps, how to reach financial wholeness so you never run out of money.

You wanna know what those 10 steps are?

AUDIENCE: Yes.

TIFFANY: I know you do.

(audience applauds) (Tiffany chuckles) So step one, I'm gonna show you how to budget.

Step two, I'm gonna show you how to save, specifically like a squirrel.

We'll get there.

Step three, I'm gonna show you how to get out of debt.

Step four, I'm gonna show you how to manage your credit and score high.

Step five, I'm gonna show you how to invest for retirement.

Step six, I'm gonna show you how to wealth build.

Step seven, I'm gonna show you how to protect all of that through insurance.

Step eight, I'm gonna show you how to grow your net worth and maintain your net worth.

Step nine, I'm gonna to show you how to build a financial team that can support you.

And last and final step, step 10, I'm gonna show you how to leave a legacy through estate planning.

Each of these 10 steps is 10%.

So when you add all of those up, they're gonna equal a hundred percent financial wholeness.

Doesn't that sound amazing?

AUDIENCE: Yes.

TIFFANY: Well, let's get started.

(audience applauds) So let's get in our financial car, put our hands on the steering wheel, and we're gonna drive to our first step.

And because I'm the Budgetnista, guess what stuff we're gonna start with?

Budgeting.

Yeah.

Some of you are like, "Ah, girl, move on."

(audience laughs) (chuckles) So budgeting, the thing is, budget gets a bad rap.

You know, people think about budgets because they think that they're gonna be restrictive.

Your budget honestly is not there to say no.

Your budget really is your say-yes plan.

As a matter of fact, your budget is a physical picture of what your money is doing.

If you don't like what your money is doing, you know can tell your money to do something else, right, that you are in charge.

Some of y'all act like your budget is like a bad two-year-old that just does whatever it wants.

It's like, "No, girl, tell him and sit down."

Right?

And so it is your say-yes plan.

If you had a mom, like I had a mom, or whoever raised you, you know that sometimes they would say yes, but with contingencies.

So I might say, "Mommy, can I have dessert?"

And she would say, "Yes, after you had your dinner," right?

Or I might say, "Mommy, can I go outside to play?"

And she would say, "Yes, if you did your homework."

Or I might say, "Mommy, can I watch TV?"

She would say, "Yes, when your room is clean."

Yes if.

Yes when.

Yes after.

Why would my mom do that?

Because she wanted me to get a yes in a way that was sustainable and kept me healthy and safe.

Your budget is the same.

It's your say-yes plan, but it wants to say yes in a way that will keep you healthy, sustainable, and safe.

So if your budget is telling you no, it's because you're not ready for the thing you're asking for.

But I'm gonna show you how to get your budget to say yes.

I'm gonna tell you first a story about this woman named Nikita that I met in London.

And so for my bonus daughter, 16th birthday, Alyssa.

I say, "You're turning 16.

"You've never really been out of the country.

"Let me take you someplace.

"I have so many points on my credit card "that we can go just about anywhere.

Where do you wanna go?"

And she said, "Ooh."

I said, "Pick a place."

She said, "London, Paris, Italy."

I said, "That's three places.

(audience laughs) "Girl, you're 16.

You should know how to count by now."

But, you know, she's spoiled.

So I said, "All right, girl, we're gonna go."

And so we stopped in London first, and we're in front of Big Ben.

And I just remember thinking like, wow, what a wonderful experience.

And then I heard, "Budgetnista!

Budgetnista!"

It was one of y'all.

(audience laughs) By y'all, I mean the two million people that I've helped worldwide, these are what I call my Dream Catchers.

Some of them are in the house right now, right?

(audience laughs and applauds) Right?

And so she was a Dream Catcher, and she said, "I just want you to know, Tiffany, you helped me get here with my family."

She was there with her three boys.

And I thought, wow.

She said, "You taught me how to get my budget "to say yes so I can now travel the world with them."

I mean I couldn't believe it.

And so that can be you.

You can get your budget to say yes, and I'm gonna show you four ways to create a budget.

Right, so number one, you're gonna create a money list.

This is just a list of everything you spend money on.

Think your bills, groceries.

Think eating out.

I want you to think about grooming, whatever you spend money on.

That's number one.

Put it on your money list.

Number two, I want you to look at that money list and look at that list that you've written down and how much does each thing cost you a month.

Because your budget is a physical picture of what your money is doing for the month.

Number three, I want you to add up your money list.

How much does your life cost you monthly based upon that money list?

And number four, that I call the tears and tissue step, right?

Mm-hmm, some of y'all know already 'cause you're gonna subtract what you spend from what you make.

And oftentimes, you might squeeze that a tear or two because you're spending way more than what you make.

So once you have this physical budget, I want you to realize that you can exert control over your budget.

I want you to put your budget in categories of control, right?

So those categories are B for bills.

Put a B next to all of your bills.

What are some bills?

Rent, electricity, telephone.

AUDIENCE: Electricity.

Gas.

TIFFANY: Exactly.

Car note, right?

So you put a B next to all of your bills.

So basically, you know it's a bill because if you don't pay it, someone's gonna come see about you, and not in a good way.

You have the least level of control when it comes to your bills.

The second level of control are your UBs.

You're gonna put a U in front of that B.

Those are utility or usage bill.

Any bill that fluctuates based upon your usage, you're gonna put a U in front of it.

So think water bill, electric bill.

Everything else in your budget, you're gonna put a C in front of.

Those are your cash expenses, or I like to say this is where you have the most choice.

So it starts with a C, right?

So whenever you wanna make some changes when it comes to your budget, well, guess what?

You're gonna start with your cash expenses first 'cause you have the most amount of control.

Does that make sense?

AUDIENCE: Yes.

TIFFANY: Good.

Right?

And so let's just say you're like, "Okay, Tiffany, I've got my budget.

"I know my- where I have my levels of control, but I still am all over the place."

Well, I want you to separate your money so you can see.

Sometimes, we got to separate, like a relationship, so we can get clear, you know?

And so I want you to separate your money into four different bank accounts.

Those four different bank accounts are two checking and two savings.

But I wanna make sure that you're checking your savings at are different banks, that's important.

So checking number one is gonna be your spending account.

And so that spending account is where you're gonna put your Cs, 'cause you did your money list.

Checking number two is gonna be your bills account.

So it's okay to have a debit card for your spending account, but no debit card for your bills account.

And you're gonna put your Bs and UBs in that bills account at your bank that you already have.

Over here at your new bank, you're gonna look for a high yield savings account, right?

And so a high yield savings account is gonna pay you more interest than a regular savings account.

Savings account number one is gonna be for emergencies.

This is where you're gonna put money for in case something happens, and you wanna put at least three to six months, sometimes more, of emergency savings there.

Savings account number two is your goals account.

Maybe you wanna save for vacation.

Maybe you wanna save for, I don't know, like that jacket.

Maybe you wanna save for a home, something under five years because anything over five years, you really wanna have invested.

So once you separate your money into these accounts, now the budget can start doing what it does and things can get paid automatically.

And when I say automatically, that just means from your bills account, bills can be paid.

I don't really like for people to come in and take their bills, 'cause what if I don't have it?

Right?

So that's real, right?

So instead, I automate my bills outside of my account.

And so basically, I tell my bills account, pay this bill on this date if I have the money.

And if you don't know how to set that up, literally, if you go to the bank, they'll do that for you.

Okay?

AUDIENCE: Mm-hmm.

TIFFANY: So now you have your money separated, and you're really ready to rock and roll.

You got your physical budget.

You've got your money separated.

You have your categories.

And that means you're already 10% financially whole.

Look at you!

We just got started, you- you're already putting markers up on the board, right?

You're 10% whole.

You know what goes together like peanut butter and jelly though, budget and savings.

See that transition?

(audience laughs) Mm-hmm, we're gonna head on to savings now.

Not just any kind of savings, I'm gonna teach you how to save like a squirrel.

You might be like, "A squirrel?"

Yes.

Not like you.

Here's the thing about you.

(audience laughs) This is not judgment, this is just observation.

When we get abundance of money, what do we do?

We spend the most, and we also chill the most, right?

We get our refund check.

We get a raise.

And we get some sort, like, of influx of money.

We spend the most, we work the least.

Squirrels are not like that.

I live in New Jersey in the Northeast where we get the seasons.

So during the fall and the spring when the acorns are everywhere, those squirrels are hustling.

You ever seen a squirrel outside in the spring?

It is acorn abundance.

So they work the hardest, and they save the most when things are in abundance.

Because you know what the squirrel knows that we forget, that winter is coming.

AUDIENCE: Mm-hmm.

TIFFANY: Child, winter is coming.

And so the squirrel says, "The money that I save in spring and fall is also supposed to support me during the winter time."

We forget every year that financial winter comes.

You know, that at some point, you're not gonna have the money.

And you can then lean in to your savings.

And so I'm gonna show you two things to save for.

We talked about it before.

The first type of savings we're gonna talk about is really that emergency savings that I mentioned because I want you to have enough money to cover whatever those emergencies might be.

I like for you to have, like, six months of emergency savings.

It might take you time to get there.

I used to say at least three months, but quite honestly, post-COVID, we have to be ready.

AUDIENCE: Yes.

Mm-hmm.

TIFFANY: And also, six months of emergency savings should be the aim, just slow and steady putting that money in there, right?

The second type of savings is really saving for a goal.

Things are not just gonna happen magically.

If you want something.

Let's say, you wanna plan your 50th wedding anniversary and you're like, "It's gonna cost $10,000, and it's gonna be in 10 months."

Well, well, then that's $10,000 divided by 10 months.

That's a $1,000 a month that you need to get to saving now.

You know, but whatever that is, you get to choose your goal and work toward that goal.

And remember I said earlier that I want you to make sure that you put your savings in a high yield savings account because the banks that are outside give you a piece of a piece of a piece of a penny, right?

A piece of a penny, right?

And so at least with a high-yield savings account, honestly, you're gonna get more pennies for your savings.

And last but not least, I want you to practice mindful spending when it comes to savings.

So what is mindful spending?

That is when you ask yourself four different questions before you spend money.

Some of y'all know this already.

Those questions are, do I need it?

Do I love it?

Do I like it?

Do I want it?

Need it, love it, like it, want it.

Need it, love it, like it, want it Need it, love it, like it They're not ready for this, right?

(audience laughs) Right?

So those are four questions you're gonna ask yourself.

Your needs come first.

You know y'alls needs, right?

If you don't do your needs, then you're not gonna be healthy.

You're not gonna be okay.

Most of us take care of those needs.

Second are our loves.

I want you to think of loves like this.

A year from now- a year from now, will this thing still bring you joy?

If it will, like for me, travel, then okay, then that's a love.

Pick two loves, right?

For me, it's my nieces and nephew and travel.

And that's what I focus on.

And then there are likes.

So likes are things that are gonna give you joy for, like, temporary, like six months from now.

So like a good meal.

You know, I'm not typically thinking about that a year later unless I'm feeling greedy.

But typically, you know, so likes are okay.

And then wants.

(fingers snap) Just instant gratification.

Like a lip gloss.

I can't even tell you where my last lip gloss is.

I've spent a fortune on lip gloss, all right?

And so I want you to think to yourself that like, if I spend less money on my likes and wants, well, that's what?

I can have more money to spend on my loves 'cause you're already taking care of your needs.

And so you can find the money there.

And you know where we are right now?

20% financially whole, okay?

(audience applauds) If you'll stick with me, coming up, we're already at 20% financial wholeness, but we're gonna get you to 60% financial wholeness.

I promise you, if you stick with me, you will never run out of money.

Are you guys ready for that next part?

AUDIENCE: Yes!

TIFFANY: All right, so I'll see you in a minute.

(audience cheers and applauds) (audience cheers and applauds) TIFFANY: Welcome back.

We are at the next stage of your Get Good With Money journey, okay?

So now that we've gotten 20% financially whole, I wanna talk about something that's gonna make everybody groan when I say this word.

I think it's every- the most hated word in the financial space.

And that word is debt.

AUDIENCE: Mmm.

TIFFANY: Yeah, see, I know it.

(audience laughs) I know it.

I'm wanna show you how to dig your way out of debt though.

So here's three ways that we're gonna get debt free.

One, I want you to identify your debt.

This is the hardest part for me.

When I was really struggling with my debt, oh my gosh, I was getting all kinda pink and red envelopes, some of y'all know what that mean.

You know, they try to shame you so the mailman know you're late.

I know I'm late!

Send me an email!

What's this pink envelope, "Past due," you know?

And so I would have them piled up, and I just was like, I know the first step to debt freedom is to identify my debt.

So I would call my best friend Linda like, "Hey, girl, come on over."

And I would hand her- hand her the envelopes and say, "I need you to open them," 'cause I was too scared to.

So Linda would open up the envelopes and read off the debt.

You owe this much.

Here's how much you owe.

Here's who you owe, what the interest rates are, and what the status is.

Late, right?

So even if you need yourself a Linda to help you open up your debt so you can identify, you know, your debt.

Step one, you have to identify your debt.

Step two, I want you to identify a debt pay down method that you're gonna lean into.

So there's two methods that I like.

There is the snowball method, and there's the avalanche method.

And so here's how they work.

So let's do snowball method first.

You are going to pay off the debt with the lowest balance first, and you're gonna pay them off in order, from lowest balance to highest balance.

This is for people who need that early win, you know, who are like, "Oh, I did it."

And so the snowball method starts with listing your debt from lowest to highest, and then you're gonna pay the minimum to all the debt on your list except for that lowest debt.

And because we've done our budget and we've done our savings plan, I'm gonna be able to grab money from that budget and savings plan, let's say an extra $100 a month.

The first debt on my list, that minimum debt is gonna get its minimum and that $100 from my budget, right?

So now it's getting two payments in one, and it's paying off, it's paying off, it's paying off.

Once it gets paid off, I'm gonna roll over.

I'm not gonna absorb that money.

I'm gonna roll over that payment to the second debt on my list.

The second debt on my list is gonna get three payments in one, the first debts' minimum, its' minimum, plus the hundred dollars I took from my budget.

So now, you know how, like, when you watching on TV, the snowball, as it rolls down the hill and it collects snow along the way and gets bigger and bigger.

Well, you are collecting minimums along the way and the payments get bigger and bigger.

So if you keep doing that, you will eventually get debt free.

And if you really wanna get down with it, you can automate that process, right?

Meaning that you can tell your bank account to make the payment for you.

And if you don't know how to do it, like I said before, ask the bank, they'll help you set that up, okay?

And so that is the snowball method.

Now, the avalanche method is for y'all folks who are extra left brain, and- right?

So- Right, is that my Scorpios?

Mm-hmm, mm-hmm, mm-hmm?

AUDIENCE: Yeah.

TIFFANY: Scorpios are like, "Yes, yeah, that's me."

So these are folks that are like, "No, it has to make sense."

So you're gonna pay off the most expensive debt first 'cause you wanna get rid of that first.

And so that is a debt with the highest interest rate.

And so what you're gonna do is you're gonna list your debt from highest interest rate to lowest interest rate.

And you're gonna do that same method.

Pay off the first debt on your list by paying a minimum plus the money from your budget.

When that's paid off, roll over that full payment, when that's paid off, roll over that full payment.

And before you know it, you are closer and closer to debt freedom, okay?

AUDIENCE: Mm-hmm.

TIFFANY: All right, and then last and final step to debt freedom is restructuring your debt.

So what does it mean when you restructure your debt?

That just means that you're gonna take your debt from being more expensive to less expensive.

You can do this by looking at your credit cards and seeing which has the higher interest and seeing if your credit is good, if you can roll it over to a lower interest credit card, okay?

And also too, you might go to a credit union and say, "Hey, can I get a low interest loan?"

And from that low interest loan, you could pay off your credit card debt, not use those cards, or you'll be right back in debt.

And then you can actually pay- the more money that you pay toward your debt, it will actually go to what you owe and not interest.

So you can do that.

And if you feel like that's really overwhelming, there are literally so many nonprofits that will help you restructure your debt.

You don't have to go it alone.

So now that you know how to pay off your debt and you know that it's a goal, not the goal, you are 30% financially whole.

Can we get a round of applause for you?

(audience applauds) And I get to keep my promises.

I get to keep my promises.

Promise number one, I get to keep my promise to help you to have freedom from stress and anxiety when it comes to your debt and your wealth, right?

Because I don't know that there's anything that brings people more anxiousness than debt.

And so we're gonna free you from that stress and anxiety.

I told you my second promise is that you're gonna have enough money to pay for things that bring you joy.

Guess what happens when you don't have to pay- make debt payments.

You have more money.

Maybe you wanna plan your 50th wedding anniversary.

Maybe you wanna plan the next family reunion.

You can do that if your money is not going toward debt.

And last but not least, my- my third promise is peace of mind when you lay your head down at night.

Do you know what it is to sleep debt free?

I know.

It's the best sleep in your life.

I'm gonna share with you some of the things that we've learned already, right?

Because you're already 30% financially whole, and this part, we're gonna get you to 60%, and then eventually a hundred percent.

So you learned how to budget, 10%, right?

You learned how to save like a squirrel, 20% financial wholeness.

And you learned how to dig your way out of debt.

That's 30% financial wholeness.

Well, now I'm gonna get you to what honestly is the easiest part of your financial wholeness journey and your- your journey toward getting good with money.

I wanna show you how to fix your credit.

I know- some of the people think like, credit is such a big deal.

Can I tell you that of all the financial wholeness tips, quite honestly, it's the easiest one.

It's just a bunch of tips and tricks.

I'll give you an example.

I'm about to tell my baby sister Lisa's business a little bit, but whatever.

She owes me money, okay?

(audience laughs) Lisa.

So when she was in college and she had just graduated, Lisa wanted to get, like, an apartment and get a car, but Lisa had no credit, and no credit, quite honestly, is considered bad credit, all right?

So she said can I help her raise her credit score?

And I said, "Yes," that I can actually give you a piggyback.

And it's not just like a piggyback like when you're a little kid.

Piggybacking when it comes to your credit is when you add someone on as an authorized user to a credit card that you're using, ideally, that you're paying off every month in full, and they get to piggyback off your good credit and inherit your good behavior.

So when I paid the card off, it looked like we paid the card off.

And so that's what's great.

But do you see that credit is like tips and trick?

That she was able to raise her credit score because I was good at paying off my credit card debt.

There are five specific ways though that I want you to pay down and pay off your credit and really get strong with your credit.

These are the five components of your credit score, and they all have different weights, and I'm gonna show you how to maximize them.

So way number one is payment history.

That is 35% of your score.

That is the biggest chunk.

So payment history is, did you pay those people?

Did you pay what you owed, when you owed, and how much you owed?

Okay, well then that's 35% of your score.

And the way to maximize that is just automate from your bills account.

Remember we talked about bills accounts before.

Well, if you automate your bill payments from your bills account, you won't forget to make your payments on time.

Your bills will be paid, 35% of your score, on your way up.

The second component is amounts owed or utilization.

This just means how much could you owe versus how much do you actually owe?

So I want you to imagine that you have a credit card and the limit is $1,000, right?

And so if you have $1,000 limit credit card, and let's just pretend that your balance is $900, so you're almost maxed out.

So because you're almost maxed out, you are tanking your credit score by 30%.

30% of your score is your amounts owed.

And if you have $1,000 card, you really wanna stay under that 30% mark, meaning you don't wanna really owe more than $300 on $1,000 card.

So when it comes to amount owed, you remember 30 and 30.

Stay under 30%, and it's worth 30%.

Does that make sense?

AUDIENCE: Yes.

TIFFANY: Good.

Third way to maximize your credit, and third component of your credit score is length of credit history.

That is 15% of your score.

So I still have my credit card from when I was in college two years ago.

(audience laughs) Two years times 20.

So honestly, if you keep your oldest credit card open, you can actually elongate your length of credit history by keeping that card open because every time you pay off a debt, guess what?

Over time, that credit will- that debt will come off of your credit report, and you'll lose that credit history.

So you keep your oldest card open.

So we have two more.

The fourth one is type of debt.

So type of debt just means they like to see that you have a credit mix.

And the truth of the matter is you don't have to really do anything here.

As an adult, this just happens naturally.

You have revolving debt, which is credit card debt, and you'll have installment loans which are like your mortgage or your car note or student loans.

Just know that's 10% of your credit.

And last and final are inquiries.

Inquiries are also 10% of your credit score.

That just means like, think about the last time you went into a store, right?

And they said, "Oh my goodness," you know, wherever you're going, maybe you're buying power tools or buying all these clothes, and they said, "You know what?

You can save 15% if you sign up for a card."

You know what I say?

No.

AUDIENCE: No.

TIFFANY: You wanna know why?

Because what they don't say, the quiet part out loud is, "And you can lose eight to 30 points."

(audience groans) Bad credit is expense of life, when you have a bad credit score, because the credit score ranges from 300 to 850.

So the closer you are to 300, the worse your credit is, right?

But- So when you have a bad credit score, it means that you're gonna pay higher interest.

It means that you're gonna have to put down bigger deposits, okay?

So truthfully, you really wanna get your credit score to the point of about- about 740, 750.

That's the beginning of perfect credit.

So your friend that's bragging that they had the 800 credit score.

Well, you and your 750 can get about the same amount of interest.

(audience laughs) Well, now that you know how to master your credit, you are now 40% financially whole.

40%!

Oh my gosh.

(audience cheers and applauds) Right?

And I am here to keep the promise to you that I promised you from the very beginning, my three promises.

One, freedom from stress and anxiety.

When your credit score is where it needs to be.

Remember I said that bad credit is an expense of life.

Well, you get less stress when life doesn't cost you quite as much, especially unnecessarily.

When you master your credit, you can lower the cost of your life.

And when you lower the cost of your life, it lets me keep that second promise, which is to have enough money for the things that actually bring you happiness and joy, right?

Because when you're not spending money on a larger deposit or paying higher interest, well, guess what?

That means you're gonna have extra money to spend on the things that really bring you joy.

If it's me, I would say, like, I really love spoiling my niece and nephew and ignoring my sister.

So I'm the type of auntie, I'ma buy you the drum set.

(audience laughs) Right, but maybe for you, you wanna spoil your grandkids.

Maybe your grandkid wants a pony.

What?

(laughs) Let their parents deal with that, right?

And then the third promise is peace of mind when you head- when your head hits the pillow tonight.

Because, honestly, when your credit is where you need it to be, that means that if there is an emergency that arises, guess what?

Credit can really help you attack that emergency and have enough to see your way through.

And that is peace of mind and a peaceful sleep.

So now that I've shown you the fundamentals of managing the money that you have, I wanna talk to you about increasing the money that you have.

And the number one way to do that is to invest, okay?

So I'm gonna show you how to invest for retirement.

That's 50% financial wholeness, okay?

All right, we just got you to 40% financial wholeness for credit, and now we're gonna get you to 50%.

So people say all the time, "Oh, I wanna save for retirement.

I wanna save for retirement."

Well, you really can't save your way to wealth.

And I think that words are really important.

And so we're gonna invest for retirement because certainly you save at first, but then you have to put the money to work so the money can grow, right?

And so when you are saving for retirement, I want you to remind yourself that you have to look to the left of your life and to the right of your life.

It basically means you get to maintain your current lifestyle.

So, you know, you're not gonna get that private island when you invest for retirement, but, you know, you can live your current lifestyle.

And if you're a little bit younger, you can start at 10% of your income.

If you're starting later, really you wanna get to 15% or more of your income, especially if you're older, you wanna catch up.

Many people actually don't save for retirement because they feel disconnected from the version of their older self.

I read this study that said that many years ago, and I thought, well, I'm gonna lean into it.

I wanna, like, fully disconnect from my older self and make them a separate person, almost like the grandma version of myself, if you will.

And I named that person Wanda, right?

Ooh, child, Wanda is sassy.

(audience laughs) Wanda is like, "Child, I did not get to this age worrying about holding my tongue."

And if your ball goes into her yard too many times in the week, she might keep it at first and say, "Baby, be careful with this ball now," right?

And so I think about Wanda when I make my financial choices.

I think to myself, you know what, how will this affect Wanda?

Will she be able to garden in the future?

Will she be able to travel the way she wants?

Will she be to live where she wants, get that second home?

And so as I make my financial choices, I think about Wanda.

And so I want you to do the same.

So one, when it's investing for retirement, I want you to think about what is the older version of yourself, no matter what age you are now, the older version of yourself, because it's your younger self's job to look after your older self.

All right?

I'm gonna say that again, okay?

It is your younger self's job to look after your older self.

No matter how old you are now, you're still younger than you will be in the future.

AUDIENCE: Mm-hmm.

TIFFANY: Okay?

And if you think to yourself, you know what, I actually don't know how to manage the money on my own.

You don't have to.

There are three words I want you to think about when you're investing for retirement, and those are target date fund.

Not Target, okay?

(audience laughs) Target date fund, right?

So a target date fund really is just an investment fund that will rebalance your money for you.

So what does that really look like?

It means that you put your money in every month.

And if you're working, you might have a target date fund through your retirement account.

You should ask.

So you put your money in every month or every pay period, if you're working.

And what happens is that the closer you are to the target date, which is your retirement date, the more conservative your investments become because you're about to pull that money out.

So if you've got 10 or 15 years before you are meant to retire, then your money's gonna be invested in more growth, meaning that it'll be a little riskier because you have time to make that money up and you're more likely to make more money, right?

But if you're only a year or two out from pulling your money out the target date, then it's gonna be very, very, very conservatively invested.

So a target date fund means that you don't have to worry about like, rebalancing your portfolio.

You don't have to worry about picking what investments you should have.

It means you can set it and forget it when it comes to investing for retirement.

Does that sound good?

AUDIENCE: Yes.

TIFFANY: I know it does.

And that's why we are 50% financially whole.

Are we halfway there?

(audience cheers) Okay?

(audience applauds) So you're not just gonna invest for retirement, we're talking about investing for wealth.

Investing for wealth looks like this.

And this is 60% financial wholeness that we're trying to achieve here.

It means that not only are you gonna be able to take care of your Wanda, it means that you actually get to live a better life now and leave a legacy for the people, your heirs, that you care about, all right?

How beautiful is that, that you get to leave a little bit of a legacy, right?

So when you invest for wealth, I want you to remember that, like, you have to invest in a way that's in integrity with yourself.

So the number one thing I want you to think about when you're investing for wealth is what kind of investor am I?

So there are three types of investors that we're gonna explore.

And if you hear yourself, go ahead and raise your hand.

So there is the active investor.

So the active investor is like, "Let's go, let's get it.

"I want- I want growth.

"I don't mind the risk.

"I have time to invest.

"Go, go, go.

"Money, money, money.

Grow, grow, grow."

Okay, okay, that's an active investor.

Now, there's the opposite, which is the passive investor, say, "Hold up, slow down.

Slow and steady wins the race," okay?

I don't have time for all this.

You said, "I have to do some research."

Oh, no, no, no, no.

I'd rather have less money and keep my money safe than lose some of it.

I mean, so just slow down.

I don't care, I'm okay as long as I have enough to make sure I'm good.

I don't like all that fussin', hoopin', and hollerin', right?

(laughs) So that's kind of like the passive investor who is a little bit more safe.

There's nothing wrong with that 'cause low-key loves me, right?

Who's a passive investor?

Okay.

Right.

And then there's the in-between investor.

So really steady growth is really what they're looking for.

They don't mind taking risks here and there.

They're like, "Not too much, but not too little," you know?

And also too, there's someone who's like, "You know what?

I'm willing to take, you know, a little bit of risk and willing to do a little bit of research.

I'm someplace in between."

Who is that?

Good, 'cause it's important to know who you are, with no judgment, because once you know who you are, then you can start looking for help in a way that's going to honor how you wanna show up as an investor, right?

Because the second way that you're gonna invest for wealth and hit that 60% is you're gonna find a financial advisor.

A financial advisor.

This portion should be a certified financial planner.

That is the gold standard of all financial planners.

They're the top of the top, okay?

And you're gonna look for someone who is fee-only.

Fee-only means they only get their fee from you.

They don't get any back end.

No one- They're not gonna sell you something and get extra money from someone else.

They are fiduciary, which means that they are legally bound to put your needs first.

So you wanna a fee-only, certified financial planner.

You're gonna understand what kind of investor you are, and you're gonna list all your current assets, what you own, all your current liabilities, what you owe, and what your financial goals are so they can help you reach that wealth that you seek.

Does that sound good?

AUDIENCE: Yes.

TIFFANY: I know it does, 'cause you are 60% financially whole.

(audience cheers and applauds) Okay?

60%!

If you stay put, I am going to get you to 100%, coming up next.

(audience cheers and applauds) And here's how.

We are going to cover insurance.

We're gonna cover your net worth.

We'll cover your financial team and estate planning.

And remember, I'm gonna show you how to never ever, ever run out of money.

So don't go anywhere, I'll be right back.

(audience cheers and applauds) (audience cheers and applauds) TIFFANY: Woo!

I'm so excited because we are finally gonna get to 100% financial wholeness.

Yes!

Okay?

(audience cheers and applauds) Right, we're here.

So let's just do a quick review, right?

One, you've got your budget for 10%.

We did that.

Two, I showed you how to save a squirrel.

Savings, right?

Three, debt, 30%.

Your credit, we knocked it out at 40%.

Retirement at 50%.

You're investing there.

And investing for wealth at 60%.

So more than halfway there.

You are really so close to truly answering that question, can you help me get good with money?

The answer is yes.

Now that we built up all of those assets, we have to protect those assets.

The best way to protect your assets is going to be insurance, right?

Some people look at insurance as a way to make money.

I'm like, "Mmm, no."

I think insurance really there is to protect your assets, protect the things that mean the most to you.

So I'm gonna share with you some insurances that you might wanna make sure that you have.

Number one, health insurance, right?

Nobody can afford to go to the doctor without health insurance, unless you are married to the doctor, right?

And even then, she might charge you, okay?

With the way their premiums are.

(laughs) Right, so health insurance is just gonna make sure that you can go to the doctor.

I just found out that I needed glasses, which, ugh, I don't want 'em.

But, you know, because of my insurance, I'm able to afford those classes because I didn't know how much glasses cost without insurance.

Yes.

So that's insurance number one.

Insurance number two is life insurance.

So not everyone needs life insurance.

I've heard people say, "Go ahead and get your baby life insurance."

Uh, I don't know if I agree with that.

I feel like I much rather you put that money aside for their college fund.

That insurance really is there to protect your wealth, and it maybe doesn't quite have wealth yet, but maybe you started to grow some assets, right?

And so you would get life insurance for yourself to make sure that if you're not here, guess what, there's money left over to look after your child if you're not here.

So if you have children, you should definitely have life insurance.

And also too, if you have debt, you know, that you should also look into life insurance.

I got my first policy when I was, I was- I think, I was 26 'cause I had bought the house.

And I wondered, if something happen to me, that my parents who were my beneficiaries could pay off the house.

And so life insurance is going to cover you ideally for 10 years after you're not here.

So you would multiply how much you're making a year or contributing to a family member.

Maybe you have a disa- disabled sister you look after, multiply that for 10-plus years and see how much insurance that you might wanna get and add on the fact that you might have debt.

The third type of insurance is insurance that like, I think a lotta people overlook, and this is disability insurance.

AUDIENCE: Mmm.

TIFFANY: I didn't really think about this until my neighbor across the street got into an accident, and he asked me to help him fill out his disability paperwork.

I said, "Sure."

And he had disability through his job.

Oh my goodness, I did not realize how long it took to get that money, right?

He was back at work before he got his first check.

That's crazy.

And so I realized he should have had this disability insurance, like additional disability insurance, but I went out and got it right away 'cause I didn't know that you could be covered.

And still he was behind on his bills because it took forever for that money to come in, right?

So disability insurance.

if you're currently working, you wanna make sure that you can cover when you're not working should something happen to you.

Now, the fourth kind of insurance is property and casualty insurance.

So that is really just insurance that is your- you car insurance and your homeowner's insurance.

There are some states that tell you that if you pay off your house, you don't have to have homeowner's insurance.

I say, "Oh, no, no.

No, no, no, no."

You want to make sure that if something happens to your house that it can be replaced or repaired.

And certainly, if you get into a car accident, that you can make sure that you are okay and whoever else was in the accident with you is okay, okay?

So some other insurances that might not apply are pet insurance.

If you have a fur baby, and any of you who have taken your dog or your cat to the vet and they needed surgery, you're like, "Hold up," right?

So pet insurance could help take some of those costs down.

And renter's insurance, if you're still renting, right?

Renter's insurance is, like, the cheapest insurance.

It- sometimes, it could be low as like nine, 10 bucks a month, because, quite honestly, you might not be covered under your landlord.

So you wanna make sure you have your own insurance.

Your insurance is not like a Gucci belt to keep you cute, it's a safety belt to keep you safe, okay?

And with that, you are 70% financially whole.

(audience cheers and applauds) Right?

Well, now that we have protected our wealth, let's make sure we know exactly how much wealth that we have.

And this is your net worth.

Net worth is really simple.

We're gonna do this one, two, (fingers snapping) right?

So the way net worth works is that you know how you have that scale in your bathroom and you're like, "Let me take off all my clothes."

You know what, let me- let me not even take a shower yet, the water on my skin might... You put on your little baby toe, you're like, "This thing is broken," right?

So the scale in your bathroom kinda tells you a little bit about your health.

It's not the whole picture, but it's close enough.

Now it shows you the direction that you're going into, right?

Well, your net worth is the same, that your net worth is your health wealth number.

It doesn't tell you everything you know- need to know about your- though- the health of your wealth, but close enough, right?

And it's super simple.

Net worth is just a calculation.

It is your assets, what you own, minus your liabilities, what you owe.

Assets are things like cash, jewelry, your car, your house, artwork, maybe you have a business, right?

And then your liabilities are the opposite.

They are the things that you owe and take money out of your pocket.

So maybe you still have student loans.

Maybe you have a mortgage, a car note.

Any other debt that you owe, these are your liabilities.

So you're gonna subtract your liabilities from your assets and you get that health wealth number, and you just have to monitor that.

Check in on your net worth because if your net worth is skewing negative, you know that maybe your assets are dwindling and/or maybe your liabilities are going higher, and you- you need to manage that by managing your debt and managing your credit, or maybe you need to manage it by managing your budget and managing your saving.

Does that make sense?

AUDIENCE: Yes.

TIFFANY: All right, we're 80% financially whole.

(audience applauds) All right.

So we're gonna talk financial team.

Financial team is 90% financial wholeness.

And here's just some people that you might consider to be on your financial teams.

This is not mandatory.

An accountant, if you need help with your taxes, right?

A CFP, a certified financial planner.

Remember we said if you're gonna build wealth, when you're ready to do that, you might want to lean in and hire one.

An estate planning attorney.

As you start to plan for the day that you're not here anymore, you want to leave a legacy, that's what they're gonna help you do.

An insurance broker.

So an insurance broker can help you every single year look to see, okay, how much, am I properly insured?

Am I properly covered?

Am I paying too much?

They'll help you check in on that.

You don't necessarily need one, but something to consider.

And last but not least, I believe everybody should have an accountability partner.

They don't have to be financially savvy.

They just have to be kind, and they have to be consistent with you to lean in.

There's a little old lady from around the corner from me who was able to sell her house, Grandma Joy, for a whole lot of money.

The- a developer bought it, and she held out, and they bought one house for 200, another house for three, another house for four and five, but not Grandma Joy.

She said, "I'm gonna wait."

Her grandson convinced her to wait.

She had a huge payout 'cause she was the last one on the block, more money than she ever had before.

She was scared and asked me, "What do I do?"

I said, "One, get your accountant.

"Two, get your CFP, "your certified financial planner, and three, an estate planning attorney."

And Mama Joy still has most of her money today as a result, okay?

(audience applauds) So with that, that makes you 90% financial- financially whole.

And we have one more piece of the puzzle.

And that is leaving a legacy with estate planning.

Okay, now there are five components of your estate plan.

And so component number one are your beneficiaries.

If you don't do anything else, it's the most important part of your estate plan because your beneficiaries trumps everything.

So let's just say your beneficiaries say, "Okay, I want to leave my money to my cat."

But then you change and your will says, "I wanna leave my money to my dog."

Guess what?

The cat is getting the money.

Why?

Because your beneficiary literally trumps everything.

This is what you add to your life insurance policies.

If you have a pension, if you have any sort of, like, investment account, they typically ask for beneficiaries.

You don't wanna leave it blank, and you wanna make sure every year who you want on there is who you want on there, you know?

You can also do partial beneficiaries.

People don't know this.

So I have four sisters.

And if I wanted to, I can say 10% for Lisa.

No, just joking.

(audience laughs) I love you, Lisa.

(chuckles) 25% for each of my sisters, right?

So you can- you can break up your beneficiaries, but it's important that you keep that up to date, okay?

So your beneficiaries, number one.

Number two, a will, you know?

A will is also the bare minimum, ideally because with a will, you get to tell your family what to do with your money six months out, you know?

What to do with your house six months out.

After something happens to you, it really gives instructions for about six months after you've passed away.

And so a will, they might not be happy about it, but at least they have those instructions.

Now sometimes, people can get past the will.

I've seen some slippery folks, you know?

But one of the things that's harder to get slipped past is a trust, right?

If you have, say, about half a million dollars worth of assets, which in New Jersey, that's just called a house, okay?

You know, consider a trust.

If you have a million dollars worth of assets, then you definitely wanna have a trust, because a trust will let you transfer wealth in a way that will help to minimize some of the tax burden.

You wanna work with an estate plan attorney, so- to navigate that.

But also, a trust allows you to reach further into the future, past the six months, you know?

A trust will allow you to, say, a year from now.

So I have a trust, for example, and I actually have my life insurance policy beneficiary is my trust.

And then the trust says, because I have a nephew and two nieces that I want them to have money, but not until they're older.

If they go to school, some of that life insurance money for them will go to their college.

And if they don't, they get their first payout at 21, second payout at 25.

And by 30, we hope they have some sense, the final payout by 30.

You know, you see how far into the future the trust can- can lead you?

And so a trust is- is a great component to your estate plan.

Fourth component is long-term care plan.

So a long-term care plan can be pretty pricey.

So this is a medical insurance policy that will cover you if you have disabilities, if you have any sort of illness.

Maybe you have diabetes.

Maybe you had prostate cancer.

And so it can be pretty expensive, a long-term care plan, just something to consider, 'cause it's even more expensive to just pay out of pocket, to be honest.

And the last of your estate planning components is advanced directives.

God forbid something happens to you, right, and you're not able to communicate for yourself, who will speak on your behalf?

And so it doesn't have to be the same person for everything.

You can have someone who is gonna speak on your behalf financially, someone who's gonna speak on your behalf when it comes to your health.

And so you wanna do these things where you're of sound body and mind now.

You know, you wanna estate plan now.

I know estate planning can feel really morbid, and it can just feel like, later, later, later.

But honestly, the time is really now.

(sighs) So a few years ago, I joined one of the worst clubs that you could ever join.

And no, this is a club that so many women and men find themselves in, and this is the widowship club.

I lost my husband three years ago.

Jerrell.

It was an aneurysm.

And literally, he was here on November 9th, and November 14th he was gone.

He was 40 years old.

He went to the hospital with a headache and didn't come back out again.

And I remember at the time, and sometimes it still shocks me, 'cause it's like, "How is he not here?"

You know, this man was 6' 6", so handsome, so kind.

He was a twin.

He just, like, a great dad.

All the things.

And we did- we were 90% financially whole, but we weren't 100%.

We didn't do our estate plan.

We didn't have a will.

We didn't have a trust.

'Cause I was like, "We're 40, later, later, later, later, later."

Thankfully, because we did so much of what I'm telling you to do now that I get to just miss Jerrell.

I know some widows that lose their husband and their home, you know?

(audience groans) Like, baby girl, my bonus daughter Alyssa, she's in school, that's paid for.

We just got her a car.

Her dad basically paid for that.

You know, so he put things in place that we will always be okay financially.

And I want that for you too.

But I wish we would've had that will in place.

I wish we woulda had that trust in place because it just would've, like, saved a lot of heartache when it came to figuring out what to do with money, you know?

And so, I am sharing all of this with you today because now that you've reached 100% financial wholeness, I want you to know that it's not just me, the financial educator talking, this is me, Tiffany, the wife, the- the bonus mom, the woman, the business owner.

I want for you for what I want for myself, which is to have freedom from stress and anxiety when it comes to money.

I don't wanna have to worry about money.

Financial wholeness allows me to navigate from that space.

I want you to have enough money to buy the things that bring you joy, you know?

I- I love when Alyssa said that she wanted a car, I said, "You could- you could drive?"

Because I was in the car with her.

It didn't look like driving.

(audience laughs) But, you know, sometimes, you just gotta leave things up to God.

And so she didn't get a new car, although she told me, "You know what I love?

Audis."

I said, "Me too, girl."

(audience laughs) Look at that, we're twins.

You're getting a Honda.

(audience laughs) So a 2017 Honda later, she's happy, right?

But it allowed me to buy things, you know, that really brought her- brought me joy to be able to do for her.

When I paid off my parents' house, it was like one of the best days of my life.

So when you have the money, you could do things like that.

Maybe you wanna pay off your children's house.

Maybe you wanna buy a house for your grandbaby.

Maybe, like I said, you wanna travel the world or start a hobby.

You can do all of these things if you master financial wholeness.

And last but not least, my promise of giving you peace of mind when you lay your head down on the pillow tonight.

Financial wholeness allows you to do that because you don't have to worry about money.

Certainly, there are other worries that the world has to bring, but money doesn't have to be one of them.

And you especially don't have to worry about ever running out of money, which is typically the number-one thing that we're most concerned about.

So you've reached 100% financial wholeness.

You know how to budget, 10%.

You know how to save like a squirrel, 20%.

You know how to dig your way out of debt, 30%.

You know how to fix that credit, 40%.

You know how to invest for retirement, 50%.

You know how to grow wealth, 60%.

You know how to protect that wealth with insurance, 70%.

You know how to grow that net worth, 80%.

You know how to harness that financial team, 90%.

And you know how to estate plan and leave an abundant legacy, 100%.

(audience cheers and applauds) I want you to know that you are not meant to do this alone.

You are part of a greater community now.

I am officially making everyone a Dream Catcher.

(audience cheers and applauds) Right?

So you are now part of the Dream Catcher community.

You're also part of the PBS community.

And think about it this way.

I want you to know that you don't have to be perfect, but I do want you to be whole, financially whole.

And I want you to never ever, ever run out of money.

And when you get good with money, that's exactly what you get.

Thank you so much.

(audience cheers and applauds)