Are you in debt? Do you need a strategy?
to get out of debt? Well, today I've got a
guest that's gonna help you do just that
so, stay tuned.
How do I bring my faith to
work how do I tap into the power of God.
Why am I going
through this adversity?
Hi I’m Os Hillman. I've
been helping leaders like you answer
these question for over 30 years.
That's what this podcast is all about.
Let's learn and grow together.
Welcome to TGIF Today God Is First .
So welcome to our podcast this week. It is such
a delight to have my daughter as my
guest this week and her name is Charis
Brown and Charis is in the media and she
has a new book out and it's a book that
everyone's gonna benefit from and so she
is author of two books she actually
created a new book when she was working
for me called TGIF for next generation
and her new book is called Alt Money
Choices: Securing financial freedom one
choice at a time and she speaks to
groups about faith and finance she's
also an editor for ClarkHoward.com and
managing editor for ClarkeDeals.com
daily deals website started by a
consumer expert radio talk show host and
New York Times bestselling author Clark
Howard. She lives with her husband just a
few miles from a with their cat in North
Atlanta well. Charis great to have you on
today thanks for having me dad well
you've done a great job with this new
book and we're gonna get into some
details but before we do let me just
tell people that you know this is your
second book and you wrote TGIF for next
generation which is a daily devotional
and you can get it online at your
website what website is that if they
want to go and sign up for your place oh
well if they want to get the free
devotional its prison ministry at work
but of course you guys have copies so I
would encourage people to get copies
from you too so yeah it's a it's a 365
day daily devotional
and her ministry site is Prismministries.org or prism ministries.org but
today we're talking about this new book
and Clark Howard you know it's
interesting he is a household name in
Atlanta and a few other cities. How many
cities is he in now? He's in quite a few
there's a there's a long list of media
affiliates that will air the show in
different markets um you know LA it's
one of those big cities that
regularly air the Clark Howard show so
yeah well he's quite a name in different
markets and he helps people save money
and it evidently has rubbed off on
Karras because she now has a book that
he is endorsing and he won't endorse a
book that doesn't prove it's going to
save people money so you can be sure
this has been field-tested by a Clark
but he gave a great recommendation for
the book and today we're going to talk
about this and listen to what Clark says
about the book
I loved Charis’s book. I couldn't stop
reading it and I finished it in a couple
of hours what I love about Charis’s story
is she's so methodical about her process
and she's not preaching at people she's
teaching how to get their money in order
and so that's what we're going to learn
today and so we're going to go ahead and
shut our video off so today we're going
to talk about top 10 financial mistakes
people make that cost them money and how
you can avoid them you know curious when
I looked at that list I thought that was
an incredible list of things that you
know money just flows out of our pockets
so easily sometimes and you put together
a list and different aspects of what
those ten things are that eat people's
money and so we're gonna go through each
one and you're gonna tell us what we
need to know about it and mistake number
one is over buying on a home tell us
about that alright well a home you know is probably
the biggest one of the biggest financial
decisions that will make in a lifetime
because a home is generally the most
expensive part of somebody's budget if
you look at someone's pleasure
like a pie you know if the housing cost
is going to take up a big portion of
that pie and so um you know you really
want to think about that and not in
terms of what your Realtor is telling
you and what your banker is telling you
because often they're going to try to
get you into something that is at the
max of what you can afford but what you
really want to do is you want to look at
your budget and you don't want your
housing expense to eat up you know more
than 25% 20% if you can get it down to
15 that's really ideal um but you know
people so many people over buy on their
house and then they don't have money
later in retirement when they need it
most and so just to give you a couple of
figures you know if you buy a $250,000
house that's gonna end up with interest
being over $400,000 if you buy a
$500,000 house that's gonna end up being
over $700,000 because of the interest
and so you can see how much that adds up
over time you know one of the things
people don't realize is if you just pay
a little extra every month you can
significantly reduce the overall amount
that you're going to spend and reduce
the term of your loan just paying an
extra fifty or hundred dollars a month
can make a big difference yes that's so
true yes and that's one of the things
that we highlight in the book just about
you know it's little changes that you
can make that will make a big difference
so that's definitely one of those
choices that you can make yeah all right
mistake number two over buying on a car
well we just actually bought a new car
new to us it's not a brand new car it's
a 2009 Honda but we were really feeling
good about this decision because we were
able to buy cash and just like you dad
like when you helped me buy my first car
my dad helped me you know you put 50%
down I put 50% down and we paid cash for
it which is great so we paid for this
car in cash and you know when an expense
starts to meet a psychological need
versus a physical need that's when we
tend to overspend so I don't know about
you but like I saw all these Lexus
commercials and different brands of cars
over the holidays it's like this
December to remember event and you know
it's like Oh your spouse could be
surprised by this forty five thousand
dollar car and you know I think for most
America
that would be a surprise but not in a
good way because you know if you're
married you want to talk to your spouse
and your significant other about any big
financial purchase and so you know with
cars seeing these table. you at CNBC no it's
actually forms so Forbes wrote a piece
about how buying new cars can delay your
retirement by years it can delay it 14
years 15 years just because people you
know um take cues from commercials to
buy their cars and so what you really
want to do is the sweet spot in car
ownership is buying a two-year old used
car because you know once it starts off
a lot it's lost a lot of value so and
then really being intentional about
researching the kind of car that you
want to get making sure it's reliable
making sure it's good on gas you know
because we want to get all the bells and
whistles but those bells and whistles
can cost us and when we're paying for
image when it comes to cars that can
really cause us to overspend yeah that's
good I know that we recently bought a
car and found out that you know we we
searched all over Atlanta and we went
beyond Atlanta and don't be afraid to
look beyond your own city to find the
best deal because sometimes it's it's
not in your particular city Atlanta is a
very competitive market for certain
types of vehicles and so you want to
really look everywhere when you're
searching for a car but that's good
advice all right number three is mistake
number three is going out to eat too
much ooh that one hurts well yeah I mean
you know it's just so convenient to go
out to eat one of the things that we did
in our 11 month long experiment is you
know this book is about the little
choices that we made and that we
journaled throughout 11 11 months
timeframe and one of those choices that
we made was making different decisions
when it came to going out to eat and
maybe choosing a less expensive
restaurant over a more expensive one and
just knowing how much that adds up over
time that can make a huge impact in your
budget but even you know you don't have
to deprive yourself maybe going to
Chipotle or chick-fil-a or something
like that um you know instead of going
to a sit-down more expensive restaurant
that can really make a big difference
and just to put it into perspective a
$50 meal out once a week cost twenty six
hundred dollars per year so you think
and you think about wow what can I do
with that money I could put that money
into my retirement account my brought my
IRA I could go on a vacation with it and
so it's just about figuring out where
your money is going and putting it in
places where you really want to go
because it's so easy to spend that money
going out to eat but maybe you know
there's something else that you could do
with that money yeah and you say habits
you know a lot of a lot of times we get
in the habit of just going out and don't
even think about it so it's I think it's
what you're saying is let's be
intentional about you know being frugal
or being disciplined about how many
times we're going to eat out etc exactly
well mistake number four is not saving
enough for retirement yeah that's a big
one and unfortunately it's it's one that
affects so many Americans um you know
most of us don't have enough retirement
money saved but it is the top financial
regret of the elderly and so and that's
according to an article by CNBC and so
you know if at all possible you know if
you're you know even just starting you
know start at 1% saving for retirement
and then just build up you know year
after year and once you get used to a
certain amount of income it makes it far
easier to live with that income later in
life and so um you know I would
encourage people whether you're in your
20s 30s you know start now just start
with a little bit and see how much that
little bit can grow because anything
that you put into a retirement savings
account a Roth IRA is a great place to
start um with a company like Vanguard or
fidelity and you know you can see that
income really start you know beefing up
as it you know works with compound
interest and so that would definitely be
something that we need to do better at
as Americans
when you say Roth our IRA why don't you
explain what that is for the folks sir
so I RA is an individual retirement
account and you can use these accounts
to stash away money for retirement you
can do a traditional IRA or you can do a
Roth IRA and a Roth IRA is a better
option to many people something that
clerk talks about a lot when people are
just getting started
because you pay the tax now with a
traditional IRA you pay the tax once you
take it out later but you can stash I
believe this year at 6500 dollars in
either of those and that's the maximum
that you can put in there but if you're
not already contributing to a 401k at
work the 401k would be the number one
place to start because if you have a
match that's like free money so
definitely want to start with a 401k and
then see if you can add them to an IRA
probably a Roth IRA if you can yeah and
you know saving it's not just saving by
putting money away but it's also not
spending and you know that's one of the
your testimony about writing your own
book was about in fact why don't you
share briefly with the folks what
happened with you and kind of what
motivated you to get out of debt yes
absolutely and you know this is kind of
school of hard knocks for me because dad
has always told me not to get into that
but I did for school and I started start
a business and I was like nineteen
twenty and so um I had over thirty five
thousand dollars in student loan debt
hanging over me and when my husband
Justin I got married we had a combined
total of three hundred thousand dollars
of debt because we had two homes and we
bought them at the height of the market
and we had to we have credit card debt
we had car loans and so we really had to
work hard at getting all of those debts
out of the way but we kept knocking them
out and so the student loan was was the
final kind of straw and I really wanted
to pay that off as quickly as possible
so that's where this whole idea about
many choices came from and recording
expenses and making a better financial
choice and so we were able to pay off
that student loan that was $27,000 at
the start of the year and we were able
to pay that off within 11 months mm-hmm
that's awesome so one of those things
that you had to do was budgeting and
that's mistake number five how important
is budgeting that is still hard I think
it's always going to be hard for us and
many people and you know budgeting is
something that you know people hear it
and I was chatting with a women's group
and I mentioned budgeting and they're
all I go it's a groan that will echo
throughout the room but budgeting is you
know not necessarily constraints it's
just kind of guidelines and a plan and
so you know there's plenty of free
budgeting
out there budgeting doesn't have to be
hard there's you know clarity money
there's mint there's all kinds of apps
that you can just plug in you know your
info and it'll spit out what you're
spending and then you can kind of decide
where your thresholds are for different
categories so another way to do it is
cash one thing that we did is and we
continue to try to do is especially with
food expenses and grocery expenses we
try to use cash because you have that
set amount and we treat cash much
differently than we treat a credit card
that one yeah with a credit card it's so
easy to swipe and studies have shown
that we spend less when we use cash
because we have a different relationship
with cash because we see it leave our
hand and so it's a much different
experience even though most of us are
encouraged to use plastic because it's
so convenient so budgeting is definitely
you know one of those things that we
want to try to get a hold of when it
comes to success with money yeah and I
think that you know talking about credit
and debt and you know nowadays they're
really trying to lure us into the credit
cards because of a 2% cash back or 3%
and you know all of that that may be
good on the front end but it actually
encourage you to spend more because you
think oh I'm putting a say I'm putting
getting money back though and all you're
doing is spending more money and but
that's so true you know when I go to the
grocery store and pull out cash to pay
for something I take it more seriously
than if I just use my credit card right
exactly exactly and one thing that you
could do is you know if you want to use
credit cards and you want the benefits
of the cashback or whatever you can use
credit cards for fixed expenses that
you'd be paying for anyway and you know
use cash maybe for those more variable
expenses that you know can get out of
hand easily yeah and it's so important
for you to not carry over in your
spending and kirie debt on a credit card
because that will absolutely eat you up
with the high interest rates of most
credit cards and so you know the the way
you beat the credit cards is those
recurring incomes or recurring expenses
use the credit card for that if you want
to build miles or you want to you know
bill cash back but the way you beat them
is you
that thing off every month and that's
that's when it that that card becomes
your servant instead of you being the
servant to that death right exactly
exactly I mean if if you can't do that
with credit cards maybe just stick to
the cash or the debit you know but yeah
that's definitely I mean number one roll
of credit cards make sure you can pay it
off every single month yeah
mistake number six falling for scams
well you know there are so many scams
that steal people's money and Clark's
Consumer Action Center gets calls um you
know every day hundreds of calls from
people who are who have fallen prey to
some kind of scam you know there's tons
of scams that are happening right now um
one of the most popular ones has been
the IRS Social Security scam where you
get a call from the IRS and they're
telling you that you owe money and are
threatening you um you know but the IRS
does not communicate that way they send
letters and mail so security is the same
way so what you want to do is if you're
faced with something like a phone call
or somebody that wants to sell you
software or something do a little bit of
research about it um don't immediately
take action try to stop yourself from
taking action when it comes to any of
these things and do some research and
see if there is a scam out there that
you need to be aware of a lot of times
there's government websites that have a
list of scams that are popping up and
greater frequency I say you can check
that out um but that's definitely
something that you know to watch out for
even gift card scams where you know
someone might want to sell you a gift
card and then it ends up not having any
money on it so just be aware of the
scams that are out there um Clark coms a
great resource for looking for scams and
then some of those other websites are
really great too yeah and be careful
with investments that are promising very
high returns you know back in the 90s I
got taken I became a victim to a Bernie
Madoff type of scam where he was having
20% interest and you know he just you
know that interest those those reports
came every month saying oh he made this
much he made this much then all of a
sudden I get a phone call from my
manager and he says all of your money is
gone the man
that we'd been working with was a scam
artist and they had fled the country and
that was over half a million dollars and
we never got one penny back and so be
careful with the types of investments
that you go into and when they claim to
have incredible returns it's probably a
situation that you really need to think
twice about Wow and I know that was a
really painful and I'm glad that you're
sharing it with everyone because so many
people have gotten taken by scams like
that and you know as the slide says if
it's too good to be true it probably is
you know you just have to watch out and
don't use any income that you really
need in an investment you only want to
use cash that you can afford to lose in
an investment that's a very good word
their mistake number seven shopping as a
hobby
okay well this goes back to habits and
you know in the book um I just shared
that habits are one of our most
money-saving assets and that is so true
and what you know being in debt taught
Justin I was that you know we'd learn to
live on less than what we made and so
that was something that I think will
just you know have such an impact on me
for the rest of my life just trying to
live beneath our means and pay off that
debt but shopping you know I mean some
of us or shopaholics I you know of
course I'm looking at deals all the time
with my job and it's very tempting but
you want to be careful not to make
shopping one of those things that's
filling another kind of void you know
shopping can be fun it's fun to get
those deals
I love deals deal hunting but we just
want to make sure that our habits are
not leading us as you said before into a
path of you know bondage where you know
we're becoming a slave to a certain
habit or whatever so that's something
that is just good to watch out for well
I think the other things addictions can
come in a lot of different forms and an
addiction is anything that you can't lay
down voluntarily and if you find that
you simply have to shop or have to do
something else then you most likely have
some kind of an addiction and you need
to look at the root cause of that and
what need you're trying to meet that
that shopping or whatever
it activity it is is trying to meet and
so this is an area that is very
practical and we need to look at it and
see what it might be doing to us mm-hmm
yeah that's good
mistake number eight not having
insurance yes and so you know we often
think about insurance like car insurance
homeowners insurance renter's insurance
but other kinds of insurance are often
overlooked for example a disability
insurance you know Social Security the
Social Security government website tells
us that one in four of today's young
people will be disabled at some point in
their lives and so it's really important
to consider disability insurance as
you're looking at budgeting and monthly
expenses because um you know anyone can
become disabled at any moment so it's
really good to think about short term
disability and long term disability I've
got a friend of mine she's she's
chronically sick and she's been that way
ever since she was 27 and so it's just
sad for me to watch that because you
know she could have probably had a much
easier time if they had known about
getting disability insurance when they
were in their 20s I said that's just
something that I would just just plead
everyone to look at just because the
statistics are real 25 percent of us
will be in some you know place where
we're not able to work and so it's
really important that we are covered not
just in our car insurance but also
disability insurance and of course
health insurance another factor in that
is to make sure that you have income
that you can live off of two to three
months you know set aside in an account
on a amount of money that if something
happens that you can go to that money to
be able to offset what might happen you
know you never know it was what comes
across our path sometimes and having two
to three months of operating income is a
wise thing to do and that's separate
from your long-term insurance not
insurance but long-term retirement
savings this is a short-term money that
should there be an emergency in other
words it's your emergency fund
right so if you can't put that much
aside yet just start putting a little
bit toward that account and set it up as
a separate account as a money market or
something like that and just put money
in there until you get to at least three
months of operating income and if you
have that money saved up maybe you won't
need the short term disability insurance
but yes that is that is definitely
something that that would be good for
everyone to consider mistake number nine
not paying bills on time well you know
we live in a credit-based society and I
know that there's some financial experts
out there that you know don't use the
credit cards and don't want to rely on
credit but you know credit becomes a lot
easier if you're looking at buying a car
or you need to buy a house and so paying
bills on time is definitely a part of
that and so when you're looking at a
credit score thirty five percent of
credit history is based on our thirty
five percent of the credit score is
based on your history and then thirty
thirty percent is the amount owed so
that's over 60% of the total credit
score and so when you're paying bills on
time especially credit cards your credit
score is going to go up and you want to
make sure that your debt to credit ratio
percentage is below 30% overall which
means that the amount that you owe is
thirty percent is thirty percent of the
overall credit that you have if that
makes sense because that also has a big
impact on your credit score yeah now a
lot of times we get these promos for
apps that will give us their credit your
credit score do you recommend people
getting that how important is it for
this them to stay in touch with their
credit score yes that's a really good
idea and when you know the whole Equifax
breach happened a lot of people are very
concerned about their credit and rightly
so so one of the great ways to keep
track of that is Credit Karma it's over
the K and so you can go on that site and
you can monitor your credit and if
there's any changes to your credit say
if somebody opens an account in your
name Credit Karma is going to alert you
of that and so you'll be able to catch
it in time a lot a lot of things that
people or times what people do is
they'll actually freeze their credit and
if they're concerned about you know
stealing their credit history or
whatever or opening accountant accounts
in their name they can actually freeze
their credit you know if you don't have
anything that you need to apply for you
know you have a house it's pretty much
set you're not making any big changes
that's another great way to keep
criminals from accessing your credit
would be to do a credit freeze good
mistake number 10 getting into debt
this is probably my top mistake
and the book you know all money choices
this is all about our journey of getting
out of debt and making better financial
choices you know but that can cost us so
much overtime um you know in Proverbs I
know you've said this many times says
borrower is slave to the lender proverbs
22:7 and so we want to be careful that
money is our slave and we're not a slave
to money but the cost of financing can
be pretty high we think about mortgages
they're generally considered good debt
because you're actually you know going
to get your house but you're still
paying a whole lot in interest for
example a one hundred and fifty thousand
dollar mortgage is going to cost almost
five thousand dollars in interest in the
first year and so you know when you
think about that compared to um you know
the tax write-off you're getting most
people don't even Ida Mize so it's kind
of a wash so you know when people are
touting like home ownership you just
want to be aware of what you're actually
spending an interest because that can
really add up over time I remember you
know one of my biggest mistakes was you
know buying a house with an
interest-only loan I don't know what I
was thinking but I thought the market
would go up and up and it didn't crash
just almost as soon as I bought that
house and so when I look back at how
much money I was paying an interest it
is absurd and how much I could have
directed that money in other places like
you know saving for retirement or
business or whatever and so um that's
one thing that you know work generally
accustomed to as a society is getting
into debt but we you know in order to
save more money and you know have more
financial stability in our lives we
really need to think about and think
hard when we are faced with getting into
that because that can cost so much in
the long run you know over the years
I've had people talk about the whether
you should pay off your mortgage if you
have the ability to pay it off and I
have always said yes
absolutely you want to do that and some
would kind of you know argue that point
to say that well why would I want to do
that you know I've got my money over
here collecting interest and I get an
interest deduction on my mortgage and
the answer to that is you're presuming
upon the future for the first thing now
you don't know that you'll be able to
pay that in the future when you have the
ability now and that's exactly what
happened to me back in the 90s when I
had that Bernie Madoff situation I could
have paid my mortgage off at that time
but I didn't based on that logic so then
after that happened it was tough for me
to make that mortgage for season and so
they also that the premise that you're
having a tax deduction
look you're paying a whole lot more
interest than the benefit you're getting
from a tax deduction then if you had
paid off that completely so there is no
better feeling than living in a house
that you know is paid for and nobody can
take it from you you never know what's
coming down the pike and so you know
that presumption upon the future is not
faith it's presumption so if you have
the ability to pay it off
paid off if you have the ability to pay
an extra hundred a month do that
anything you can do to reduce the amount
of interest you're paying and to get
that house under your belt and not the
banks bill right exactly
all right so we've been talking about
all money choices securing financial
freedom one step at a time you can get
it on our bookstore at tji at bookstore
calm you can also get it on Kara's
website at Alton money choices calm and
you know some of the practical things
you're going to learn in this book are
how small choices can really add up
and why changing your money habits have
a big impact over time and you're going
to read about Karis is strategy for
paying off twenty seven thousand dollars
of debt in 11 months she took small
choices that added up over time and how
to make saving funny money fun
and the science of making better choices
money mentalities have separate the rich
from everyone else and simple steps you
can take I encourage you to get this
book so you know Kerris has been on this
journey with me for many years and after
all these years we've been equipping
leaders and we've been thinking about
how we can help those that we've been
serving for these years go deeper and
help them with specific things that they
tell us they had help need help with and
so we've been listening to some of our
listeners and I would encourage you that
if you'd like to know about these coming
things that we're about to do that we're
going to announce very shortly within a
month or two about a new program you can
get on the waiting list for that it
become God's change agent com that's
become God's change agent calm and if
you get on the waiting list you'll be
the first one to be notified you'll get
a discount on this new program that
we're going to be doing plus you will
get a download that's free of my top ten
biblical truths for succeeding in life
and work and so if that's of interest
you just go to become God's change agent
comm will cost you anything just to be
on the waiting list and that'll be a
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and so let's curious when we come back
on the video just for a moment as we say
goodbye to our friends and let's see if
I can do that there we are there we are
both so again the book is all money
choices and it's a great read it's not a
very big book it's only 118 pages so you
you know I like those kind of small
books you can read almost in one session
but you won't do that in this cuz you
need to really study what to do and take
the advice that she has there well Kara
says we close out today any final words
for those that that are out there well I
think one of the things that just became
such a big theme of the book is you know
just realizing how much God gave us
choice and how it's one of the gifts
that he gave us you know in the Garden
of Eden he gave Adam and Eve a choice
and so you know one of the most
impactful things that I want people to
get from the book is just to realize you
know you might be in a certain situation
or you might be facing a big challenge
right now but you know there are choices
that that you have that you may not even
have thought of yet and you know God has
given us creativity as well and so you
know even though we might feel like
we're in a tough spot um you know he can
give us ideas and solutions to those
things that we're facing and so um you
know he just gave us such a big gift
when it came to her choice and so I just
want to encourage people with that yeah
and that's a good word I think that
whenever we are intentional about
something like this God sees that it's a
it's a step of faith and sometimes when
you put your first foot forward towards
something God multiplies it and it's
amazing how many things can change you
know in my own situation although I'd
lost a half million dollars at the end
of seven years God restored all of it
back and I had no idea that was going to
happen but I was just seeking God and
asking him to help me walk through that
season and I paid off all the debts I
owed as a result of that crisis and
that's important so be faithful in the
little things and the big things and God
will honor that faith so what cares
thanks so much and everybody joining us
today god bless you and we'll see you
next week