The Cost of Control | EP 311: Sharon Hodde Miller

Today’s show is an extremely requested episode. My husband, John, is a financial advisor and is here to answer all your money questions. Many of you have emailed and DMed me asking for this episode, so let’s jump into it.

3:11 – Why take financial advice from John?

• John is a financial advisor and owns a media company, Third Wheel Media.
• He migrated from journalism to interviewing financial advisors. He decided to do the job himself.

5:45 – John’s financial lessons

• Both of John’s grandfathers were good with money but in different ways.
• One grandfather was good at earning money by selling candy for a living. He was also a good investor.
• His other grandfather was good at not spending money. He didn’t make much money but he was a good saver and sent his kids to college.

8:39 – John’s first house

• John bought his first house at age 25 and put 20% down.

11:20 – Question: How to budget on one income and make decisions jointly?

• This is more of a marriage question. All of the money that comes into the household is joint money, no matter who earned it.
• With second marriages, spouses often maintain separate financial lives.

19:36 – Question: Do we have an allowance?

• Yes, we each have our own spending money each month.
• And yes, we have a monthly budget.
• If you have a blow money spending category, you can buy whatever you want.

27:05 – Question: Should kids get an allowance, tithe, etc.?

• Our son is 61⁄2, so he doesn’t understand as much about money. Our daughter, who’s older, understands more.
• We have kids’ piggy banks – spend (80%), share (10%) and save (10%).

35:15 – Question: What is a good dollar amount for retirement?

• No offense, but this is a pointless question because it’s impossible to answer.
• John has clients who retired with $175,000 in retirement savings. Most people would say that’s not enough, but they don’t spend much and are happy that way.
• John also has clients who aren’t getting much of a Social Security benefit. They have almost $2 million in savings, but they spend a lot each month.

42:38 – Question: Where do I start when living paycheck to paycheck?

• People in this boat are often so stressed that they can’t get out of their own way.
• There is a path out of debt, but it won’t happen overnight.
• Define your priorities (rent, car payment, food, etc.) and increase income.

52:12 – Question: Are you comfortable talking about money with family and friends?

• We’ve made money this thing you can’t talk about in our culture, but it isn’t like that in other cultures.
• It drives John crazy that families don’t talk about money, and children don’t know the financial situation of their aging parents.
• Why can’t we have these generational conversations about money?

56:01 – Question: Should I do a 529 or IRA for kids?

• Do a 529 for kids. A Roth IRA is not the best use of this money.

58:14 – Question: How do you save for a vacation when there are other priorities?

• You don’t have to spend a bunch of money on a vacation. It can be simple.
• If money is that tight, the vacation probably isn’t a priority.

1:04:08 – Question: What to do if my finances feel out of control?

• If you’re in financial despair, you don’t have a good command of your numbers.
• Find out what you spend on groceries and miscellaneous expenses.
• Spend a couple months and look at every expense.

FEATURED QUOTES

There’s always a way out (of debt). The question is, how disciplined and motivated are you to make it happen? – John

If you are in a marriage or partnership ... it has to be a mindset shift where this is our money, and not his money and her money. – Molly

This is why you need a financial advisor. We can figure this stuff out with you and determine what your life looks like and how much money you need. – John

Why can’t we have these generational conversations about money? – John

CONNECT:

https://rosewoodwealthmanagement.com/

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