Q and A on Personal Finance, Investing, Motivation, Spending Money, and Frugality

Hey friends, we are doing a Q&A session right meow I’ve had a lot of you requests that I do a Q&A video and that’s what this is now I couldn’t get to all the questions that you all asked but I’m gonna get to the majority of them and these questions will range from some personal questions about me so you can kind of get to know me a little bit better to Personal finance questions to investing questions to questions about motivation and and things like that So please stick around and also Hulk smash that thumbs up button leave any comments down below I’d love to hear some feedback on these questions or you can ask any Questions that you have for future Q&A videos that I shall do if you like it first up is a non personal finance related question I’ve heard this question So many times what famous person do a lot of people say that you look like I’ve been told this for years And I used to get told by customers all the time when I worked in the restaurant industry as a server I’ve been told that I look exactly like Jake Gyllenhaal. I hope that’s a good thing. I don’t know either way I just roll with it. How did you get started with personal finance? So my personal finance journey started essentially by being in debt I had eighty two thousand dollars in debt seventy thousand in student loans ten thousand dollar car loan two thousand dollar credit card Debt, and I paid it all off in 40 years forty years four years so I began by learning from Dave Ramsey and he kind of taught me the the basics and Then as I started digging deeper into the personal finance and investing space I realized very quickly that Dave Ramsey’s away isn’t the only way and that got me excited I was like what other kind of ways are out there so that’s Kind of how I got involved in this and then I made a video about how I paid off my debts in four years on YouTube semi blew up and I decided to make some more videos about personal finance because I didn’t because I enjoy talking about the topic and Educating on the topic. Yeah, I guess people keep watching for whatever reason What are your thoughts on relocating to a lower cost of living City to achieve financial independence? or financial freedom possibly decrease in salary But then again not really for example moving from New York City where we pay city and state taxes to Texas where they don’t pace In state taxes, so I would see more of my net pay I would do it I think if you live in a very high cost of living area and it makes sense to move to a lower cost of living area for sure do it that would speed up your process to Financial independence or financial freedom. I don’t think you have to stay where you were born I think a lot of people should expand their their life By going out and see what it’s like to live in different states and different cities and get out of that bubble that you grow Up in yes, you can make a lot more money by essentially switching companies that you work for especially going to a different state because that’s where you usually make the most money is what I’ve Seen is when you switch company employers that you work for you make your biggest salary Level jumps if you will by doing that I know that all the the new companies I’ve gone and worked for every time I’ve switched companies I’ve made a I’ve had a salary increase of at least $10,000. So I think it’s always good to switch Employers to make sure that you’re continuing to level yourself up nowadays It doesn’t make sense to be loyal to one particular employer for the rest of your life like our parents were you know? Because they’ll get rid of us as quickly as we’ll get rid of them So there’s no more loyalty when it comes to staying with an employer for long periods of time anymore We don’t have pensions like our parents or older folks Did so feel free to hop jobs and hopefully into a different state and hopefully a lower cost of living State if you can I’ve mentioned this before but if you want to get an idea of what the cost of living is for any Particular city in the United States go to a website called best places net search for the city you want to live in or you want to move to potentially and Look up the cost of living and it rates the each city on a scale of 100 So 100 is the US average anything above is obviously a higher cost of living area Anything below is the lower cost of living area. So for example an expensive, we’ll say la in California is probably well above 100% It’s probably 200 times or 200% of What the national average is maybe even more than than two times. So go look at that You have an idea of what kind of salary range you should be expecting if you move to a certain city. Am I married? No, I’m not married. Do you have kids? No, I don’t have kids I enjoy kids they’re fun, but I don’t have any kids right now. I might not ever have them I don’t know at this point. I’m kind of open to having them. We’re not having them. It doesn’t matter Do you have a girlfriend? No, I don’t have a girlfriend at this point in time You never know that I’m always dating and going out on on dates with women To potentially find someone that I want to spend a lot of time with that’s my thing right now or my issue I guess some is finding the right girl that I actually want to spend time with because I haven’t really found that girl at this point in time and You know, so I’m always always looking for and I’m not getting bummed out by being single not finding her yet I’m the kind of person where I’ve learned to be happy alone And I also know I know how to be happy in a relationship So I’m not one of those people that that has to be in a relationship all the time I think that’s that’s not very good for from an individual perspective or from a relationship perspective when you get into a relationship with a significant other Largest gain or gains if you won’t stocks bonds mutual funds you’ve had and what was the story behind it? so not counting any retirement stuff, but my largest gain in a short period of time was when I bought my first stock Individual stock it was back 2009 and I didn’t really know what the heck I was doing It wasn’t very smart of me to do what I did But I ended up Coming out ahead because of course we’ve been on the longest bull run and I bought when the market was at its lowest point I bought a stock called Textron te XT ro n it’s like Conglomerate if you will so they it’s like a holding company that owns a bunch of different companies I think one is a golf cart company and the other is another one is Cessna planes I think they’ll incessant planes and some other ones I just bought it because I don’t even know and I didn’t have any rhyme or reason it was kind of stupid because I couldn’t Last just as much money But I sold it after a year because I knew that I wanted I didn’t want to sell it before it within a 12-month period because I don’t want to pay the the capital gains tax the highest rate of capital gains taxes So I waited till after a year and I think I made a couple thousand dollars But I would never do that again without actually thinking about my decision. Don’t do that folks. That was dumb I just got lucky. What are you willing to splurge on that others might think is ridiculous. I’ve got to that I don’t know if people will think it’s ridiculous or not, but I would assume that’s us There’s some people out there or there probably would the first one is education I spend thousands of dollars every year on continuing education and that’s online courses that’s books I go out of my way to Buy books and and buy online courses that cost money so that can continue Gaining knowledge. I think that’s very important as we get older is making sure that you’re always learning and trying to improve yourself That’s huge. I mean, there’s a lot of millionaires and billionaires out there who are always working on continued education and and Self-development there’s a reason you know They don’t want to stay stagnant and be the kind of people that just go home and watch television all day Or all night after they get off work and do nothing with their life, you know They want to make sure that they’re continuing to push the limits for themselves. So Education is huge for me the second I splurge on Spending money on people who have made an impact on me now Let me explain So you understand what that means going back to the book? Thing if there is an author that’s really impacted my life or changed my life I am more than happy to spend money on their books I know I can go to the library and rent it for free, but I would rather support them by buying their books another way is if some of the people who have really impacted my life or who who I firmly believe are making the world a better place for the future I will invest if they have like or not invest I will contribute to like a monthly subscription plan that they have one person is is an author and a podcaster who has he has he has a meditation app, and then he also has a Patreon or not patreon me. You could donate to him every month I do that every month for a handful of people because I really believe in these people and I want to Make sure that I’m supporting them so that they can continue to do this awesome work and and and put out more content That is helping me improve myself. What is your career field? So I actually still work in the same career field that I got my degree in My degree is in supply chain and operations management. Fun fact, you want to know how I picked that degree. I basically did this Saw which way the wind was blowing Seriously, I didn’t even know what supply chain and operations management was when I picked that degree I just thought the name sounded cool and I got kind of lucked out and I enjoy what I do a lot supply chain is Essentially the movement of a product where I getting a product to the customer and the whole process of getting a product to a customer So for example, here is an iPhone will say that an iPhone is is what you want to buy Well, how does this iPhone get to you? And not just how does it get to you? But how does it get assembled and put together so that it can be sent to you to buy it in this case? That’s what the supply chain takes care of from creating this this screen Right this hard screen and the raw materials that come in to make that go into making this screen and creating it and planning for those raw materials to planning and forecasting and manufacturing this phone so taking all the pieces and parts that go into this phone and assembling it that way that we can transport it to the store so that you can buy it supply chain also has to do with Inventory as well because there’s two ways to get this phone after it’s made it can either sit on a shelf Waiting for you to buy it from a store like will say Best Buy or it can sit in a warehouse So inventory management has to do with the supply chain as well and making sure that you don’t have too much inventory just sitting around because it costs money for inventory to be held in warehouses and Yeah, that’s kind of the whole planning process forecasting Manufacturing transportation and that’s kind of the whole field that I work in I’ve done jobs in all of those different areas over the many years that I’ve been working in this field Who do I work for who is my employer? I’m not going to tell you I don’t want to but it’s a well-known company It’s been around for over a hundred years If you heard the name I guarantee 99% of you would recognize that Company you basically you see their product or you see our product on the road I’ll just say that on the road every single day. You just don’t realize it hint hint It’s not a car company rent or buy. I love this question a lot I think both and then it just depends on your specific situation It’s important to run the numbers to make sure where it works for you Everyone wants to buy a house and and live the American dream because they think that’s the American dream But it’s not always the American dream. Sometimes it makes sense to just rent based on how much you have on hand how much cash you have on hand on a regular basis or the lifestyle that you want to live a home purchase is something you Really have to think about because it’s not just the mortgage that you’re paying for You’re paying for the upkeep in the yard the upkeep in the house that costs money or it’s gonna cost your time I just hate seeing people buy homes and ending up spending so much more money than they realized they were going to and then that Really exciting time that really exciting purchase turns into a nightmare turns into a burden that straps you Down when it comes to your cash and you don’t have any more money left over because you’re like I didn’t plan for This when it comes to buying a house or this when it comes to buying a house I always tell people if you’re gonna buy a house If you can’t afford one and a half times the mortgage every single month and still still feel comfortable financially Then don’t buy the house. For example, if your mortgage payment is $500 per month. I would say if you can’t afford Seven hundred and fifty dollars per month then don’t buy the house because you got to think when you buy a house like I said There’s normal upkeep there’s normal maintenance that has to be done in the house outside of the house around the house Outside on the house and you have to set money aside Every single month back to my example if you buy a house where the mortgage is $500 a month you should be setting about two hundred and fifty dollars aside every single month for those future repairs and Upkeep that might pop up because you want to base your numbers Essentially on just being able to pay the mortgage because it’s way more than that You also have to furnish the house which cost money if you want to buy a house the smart way Here’s what uncle Jared would suggest to do Only buy homes with the main purpose of eventually turning it into a rental property, and I’m not talking hoping for appreciation forget appreciation if you buy a house You have to run the numbers like eventually you were going to rent it out and make sure that it’s going to cash flow for You especially if it’s your first house ever because you’re most likely not going to live in that house forever It’s very unlikely that you’re gonna live in that house forever You also have to make sure that you’re going to be committed to living in that spot For I would say at least 5 years to make sure that you were coupe some of your expenses from the initial purchase Do you have any problems fitting into your social circles due to wanting to be frugal and everyone else being Yolo? I’m very fortunate to where I’ve had the same friends for the past 20 years since grade school and everyone is pretty low-key no one’s Real flashy some I’m very fortunate in that case but if you are someone who has friends that just love spending money, I think you have to Do two things a I would find another group of friends that Have more of the goals that align with yours when it comes to finances and number 2 Don’t get rid of those those friends that spend like crazy You can still hang out with them, but you have to set up your own boundaries when you were hanging out with those people Sometimes you might have to explain why you can’t spend all this money like they do If it’s going out to dinner or going out for drinks Maybe have a few less drinks than they do maybe eat before you go out to eat with them That way you can just go spend time with your friends Spending time with your friends shouldn’t be based around money But it’s up to you to take ownership of your own life and your own finances and decide What is going to be the best decision for yourself if you want to hang out with these people? Just explain yourself explain why you’re doing what you’re doing. So they don’t just assume that Oh, you don’t want to come hang out with us? Okay. I guess we’re not friends anymore You don’t want to be friends with us. You’re like no which just I don’t have the money right now. So explain yourself So they understand if they’re really good friends, then they understand. If not, then there’s nothing you can do about it find new friends Let’s end with a really deep one prepare yourself What or who motivates you there’s two people that motivate me? The first one is my mom and that is because she was a single woman Single mom raising four kids on her own when I was younger So I saw her work working really hard and trying to give us as much as she possibly could even though it wasn’t very much But she gave us, you know, the basics food shelter Clothes on our back and a warm home She motivates me and just watching all the horror scene all the hard work that she put in kind of Rubbed off on me as I’m older because we were very poor. We were on food stamps welfare I was I’m basically a child of the system if you will because we took out government asset we had government assistance To help us through those tough times. So food stamps welfare can food drive Recipients in and out of battered women shelters, but it’s made me a better person in the end The second reason my mom motivates me is because she has a genetic disease. It’s called Huntington’s disease It’s essentially where her mind just is slowly going her Mechanics and movements physically are not all there. She’s kind of all over the place and she forgets a lot so she’s in a nursing home right now and just seeing how much she struggles just to go through her daily life and think and talk and Move it Motivates me to make sure that I’m not taking advantage of this life that I currently have as such Especially because I’m a healthy individual I can talk I can think I can move she motivates me to just make sure that that that I’m doing my best to Do the things that I’m able to do and not take advantage of the gifts? I’ve been given even if it’s a gift that that everyone should have the right to have which is a clear thinking mind speech Movement the second thing that motivates me is another bad thing But I’ve found the silver lining of the whole situation and it’s made me a better person in the end the second Person who motivates me is my little brother So a lot of you don’t know but my little brother Suddenly passed away at the age of 19 two years ago. Almost three years ago now and he passed away of a drug overdose He was on an element open-book So I’ll tell you anything you any questions you have about it, but he he died of a drug overdose He was doing some cocaine that he didn’t know was laced with fentanyl and he died because of it just knowing that Someone like him who was so young and had so much potential Doesn’t have a chance to live this life that you and I are able to anymore motivates me It motivates me to make sure that I’m squeezing the most out of life as I possibly can So I think about him a lot I he’s the only pictures that I have in my house because you know, I look and I think It’s crazy when you look at the pictures because it’s still nuts to think like oh my gosh, she’s gone like he’s gone He’s gone gone Like he didn’t just go on vacation and he’s gonna come back like he’s he went on vacation and he’s never coming back unfortunately So he really really motivates me, especially man. He had so much potential he was so athletic and I grew up not being athletic my whole life and He was taller than me. He was a really good-looking kid. He had more money than me go figure because he inherited some money That I didn’t inherit but that’s that’s another that’s another story that I might tell that’s a funny story but anyways He motivates me alive Or his his death motivates me to make sure that I’m just continuing to live my life and do my best in this world While I’m here and trying to make the best and biggest impact on my little group of people I know I won’t be able to change the whole world But I can possibly change the little my little world if you will and I would consider you all who watch my videos a part of my little world I hope that I can help you in some way that Motivates you and inspires you to go out there and do things on your own to improve your own lives and then hopefully there’s a wildfire effect where you do the same thing to the people in your life and They change their lives and I think this thing kind of spreads I think that that this is how this whole life thing works is we’ve got to inspire each other and help each other to push ourselves forward to improve our lives our finances our personal lives our professional lives and Just make ourselves better and make the other people around us better We’ve got to lift the the boats together because it’s not just me and it’s not just you It’s us it’s us together. And this is I don’t why I’m going on the spiel. I’m sorry But yeah, so that’s motivates. Mainly my mom and my little brother

24 thoughts on “Q and A on Personal Finance, Investing, Motivation, Spending Money, and Frugality

  • I learned so much about you from this video! Thanks for being so open and sharing some of your life with us! -Akeiva

  • Thank you for sharing. I think you're right, we have to share inspiration and positivity and hope that fire catches on somewhere else and we all improve. My mom is currently on a debt free journey after watching me go through mine and it. is. awesome! Wonderful video. I personally feel you look like Chase Rice and not JG. 🙂

  • Sorry to hear about your brother, Jarrad. I lost an older sister I was very close with in a car crash. It can be rough, but I definitely have great memories of her, and how she lived her life inspires me to be a better person. Oh, and he was definitely taller than you.

    I do have a question for your next Q&A segment. The only debt I have is a car loan with a low interest rate. I was planning on throwing $2000 at it a month to pay it off fast and get it off the books. However, watching your videos and others, would it be smarter to pay just $1000/mo until I fully fund a Roth IRA, and then go back to $2000?

  • Jared I'm very sorry for the loss of your brother. Dealing with drug and alcohol abuse and addiction is hard in itself. I'm sorry about your mother's health problems.

  • Cool I also got my undergrad in Supply Chain management. Still looking to get some certified in APICS to jumpstart my career.

  • I am so sorry to learn about your mother and your brother. Huntington's is a horrible disease, and I can appreciate how difficult it has been for you to see her suffer. An awareness of our mortality can definitely motivate us to live the best life possible.

  • Meditation App + Patreon style support (but not a patreon app) = Sam Harris? That guy is brilliant. Him and Jordan B Peterson are absolutely fascinating. That whole "intellectual dark web" crew is what society needs more of, imo.

    Love the content man. You keep it real and are definitely a value add in my life. Keep up the great work!

  • Oh so sorry to hear about the passing of your brother and of your Mom's illness💔 I lost my Dad in April from Alzheimer's. He lived in a nursing home too. I can't imagine how you must feel but I can empathize💟 Edit: I just remembered a neurologist who is also a fiction writer named Lisa Genova. She wrote a book about a family's struggle with Huntington's called Inside the O'Briens. It's amazing. She also wrote a few others including Still Alice (it became a movie with Julianne Moore). I stumbled upon her when my dad was diagnosed. She writes novels about different neurological diseases with the background knowledge of a doctor. It can hit a little close to home at times but personally I find her books informative and easy to read. Maybe check it out 🙂

  • It's awesome that you enjoy learning. I love learning too, which is why I'm back in school for yet another degree in my 30s. Anything in particular outside of finances that you like learning about?

  • Same. Also started out with debt, still working on it actually, but it didn’t take long for me to branch out from him as I started to learn more!! 🧡💪🏻🔥🔥

  • I've let go of friendships that were toxic in the sense that they didn't want to better their lives and were okay being complacent with where they were. I love being around other people who are go-getters and want more in their lives. Totally agree with you on the renting vs owning!!

  • Anytime I see someone discussing motivation, I always reach out and say hello. How long have you been constructing videos?

  • Jarrad I'm so geeked right now, you answered my question about job relocation to help achieve financial independence! I feel so encouraged. I'm going hard on my debt pay off with a debt free date of 12/6/19 (previously it was 11/22/19) as I commented on one of your videos. I shouldn't think of my potential move as a lowering of my salary but as an increase. I changed the lens. Any tips on planning for a job relocation when I'm in the middle of making so much progress? I can't let this debt take me into 2020 lol. I know you have an idea of what mean. 🙂

  • You know I’m new to your channel. Now I’m stocking you. Well I’m watching all your videos.
    I’m a natural saver now learning to invest. I appreciate you and your videos. Definitely keep them coming. I definitely going to max out my Roth IRA. I have an 401k I save 42 percent. Seriously jealous you are at 70 percent. I have 16 months of saving but looking to buy a new car in 2 1/2 years. Thank you for the help and out look you have already gave me.
    On the friends note I’ve had the same for 30 years and I’m definitely know as the cheap one.

  • Hi Jarrad, I have a investment question. I am unable to open a Roth IRA due to filing my taxes "married filing separately" (that way works better for our household). I have a job where I will have a great pension upon retirement so I do not have a 401K. My employer offers a deferred comp plan but I am looking at investing on my own for retirement. What are some good alternatives to a Roth IRA? I plan on opening a Roth if I ever file jointly. Also, thanks for showing that people raised on the system can achieve success and don't always fall victim to generational poverty. In many situations the system can afford people with less the same opportunities as people with more. Thank you for all the great information!!!

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    Get a FREE stock worth up to $200 when you open an account with Robinhood through this link: https://share.robinhood.com/jarradm14

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