Episode 38: How Decisions Today Affect Your Life Later

ABOUT THIS EPISODE

On this episode of the Build Your Life Podcast with Financial Expert John Browning, we're discussing how the decisions you make today can affect your life later...in retirement.

Tune in today to hear John speak about how you can keep doing all the things that bring you joy while still keeping an eye on the big picture. Your retirement days will show up, but if you plan accordingly there is no reason why you can't live an amazing life now!

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you. Or, give us a call at (312) 372-5000.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert John Browning. John's the founder of Guardian Rock Wealth, with offices in Hawaii, Colorado and Illinois. John's also the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mild right to your door. I'm Michael Delan, your host for the next few minutes as we chat with financial expert, business owner and author John Browning. Well, hi, John Browning, welcome back to your podcast. or how are you this fine afternoon? I am doing just fine. And how about yourself? You know I'm pet it can. Yeah, you got kind of a peach shirt done there. Yeah, Huh. You're trying something a little different and trying to match your collor scheme,...

...because you got, you always have bright colors country in Hawaii, and so I had it up my game just a little bit. Yeah, good, yea. Well, thank you. Thank you. I appreciate that. Some you know you've changed your lifestyle just a tad in the last year because you moved from Chicago area to now Hawaii. So that's a little change of lifestyle. You're still working like real easy and then, of course, you did it right before the whole pandemic it and so that's that's affecting like everything. But what I want to talk about it today is how choosing. How, when people choose a specific or particular lifestyle now, wow, how does that affect them later when they think about retirement or anything else? How did these decisions today affect life, life later? That's what I want to chat about. You get thoughts on that? Yeah, I mean that's you know, it compounds, which is something that we've talked about before and we'll probably...

...talk about a little bit, I think, in a future podcast. We've already we've already mentioned that. We need to address that. But the whole idea of compound interest right and apply here, because you make a choice today and and I'm all about you know, here's my disclaimer. I'm all about building your life, right. That's hence the book's life, not a portfolio, right. That's that's why I wrote it and I believe that you should do things that bring you joy, and you should experience life now, not just keep building and building and building your portfolio to, I guess, this great big and then wonder why and you haven't made any friends and you haven't invested in any relationships and you haven't had any joy, and you don't even know how to have joy then, because you don't even know what you like to do once you get to that point. So I'm all about that. However, and this is where it comes in, right, okay, you...

...have to look at what you're really working with, HMM, and that means you know, based on your income and where you were today, the choices that you make now can significantly impact where you are in the future and in retirements. So, in other words, if you decide I want that apartment to or I want that house with the Marble countertops and the sub zero refrigerator and and I want that Mercedes and I want that port show whatever it might be, that you know it is bringing you joy, right, then you're going to have to pay for that now, and that's that much less that you can start with today in terms of your investing. Okay, all right, all right, all right, so that's good. So that. Yeah, because I've heard the stories of people who accumulated, accumulated, comulate for retirement because, wow, that's the dream, hmm. And then they get to retirement and they quickly die, unfortunately. Right. And and so it's...

...said. This is true, though it is totally proven. Yeah, as much as you can prove anything with statistics. That does happen. Yeah, and and so what you're saying is they sold your life today, live the life you want to live today and at the same time, dude, and kind of moderation where instead of driving the high end portia, you might drive a smaller in portia or maybe a Nissan Z seventy or whatever it is. Right. So you save some money today to invest it so that when you hit retirement it's there's that kind of the the catching it. Yep, you, you are catching it exactly correctly. And even I think about the the average student loan balance carried today by a graduating senior in college is about thirty sevenzero dollars. You can buy a pretty nice car for thirty seven Tho.

Now, I'm not seeing that that's wrong. It may be the absolutely right thing for you, but I think there's this pervading idea that I have to have a college education or I have to accumulate that, or I have to have a college education right now, otherwise I won't be, quote unquote successful, whatever that behinds, right. Right, being successful means different things different people, right. Yeah, and if you consider that that's another choice that people make that can significantly impact their financial future in two different ways. Right. So it maybe, although it's turning the time here, or it may be that if you have a college education, then you can get a better job which then pays you more money so that you can save more later. Right. That's been the theory for decades. What we're seeing now in actuality is that the trades, given all the benefits that are there, are actually...

...becoming higher paid than college graduates in many, many cases. How So, if when you take trades, explain that? So. So we're talking things that you don't necessarily need a college education to do, but you need a skill set to do. So you start as as an apprentice, you move all the way forward through their program which is basically on the job training. You're talking about pipe fitters, carpenters, plumbers and things. You know, those type of trades. Okay, HBAC, yeah, okay, mechanics, things of that nature. All right, got it right. I just wanted to make sure we were on track right. And the and the tide is shifted so that there's such a need for save mechanics like diesel mechanics and huge demand now. And he said, well, everything's going on electric what?...

Guess what the next one is? It's probably going to be who works on the Electric Motors for Tesla and for all the their electric car manufacturers that are coming up right right. Those jobs are are going to continue to be in demand, and so you get what we're seeing now, to is college grads are going into the trade. So they get their college education, they end up with, say, maybe thirty seven thousand or thirty or forty thousand dollars in student loan debt and then, on top of that they have to start out as an apprentice in the trades. You Seen College grads do that and did they really need to go into that much debt and put themselves behind the eight ball, so to speak? Yeah, that's interesting, because the the the whole College Grad thing is they get there, they get the degree, then they realize that there are about ten million people who have the same degree and they're not employable. Could be one aspect of it, right. So that's really interesting. The other aspect that I want to touch on is, and this is more personal, because my youngest son is on track. He's...

...just started his three year Doctor Program for to be a physical therapist. Right. So he's going to come out of that program with carrying some debt. It'll probably be a little more than thirty seven thousand, I'm guessing, but he's looking down the road. He's like, yeah, but look at the Sury I'm going to have, and we're counseling him going okay, that's all well and good, as long as you maintain, you're a tight lifestyle for the first you know, five to seven years to pay that off and start saving for retirement. And don't get stuck in the Oh, I'm a doctor, I can now buy a big house and buy fancy cars and talk up a little bit about that mentality behind what you're talking about. Yeah, that's a really important, great transition. By the way, it's really important to understand the behavioral finance behind it. All Right, and so you've gone through school and you scrimpt and you've saved and you borrowed money and you you've lived like a monkey, you know. You, you've saved every time lag,...

...you've eaten rum and noodles, whatever took right, love it. And suddenly you're making a pretty big paycheck, I mean comparatively to nothing or actually spending the money. You're making a big paycheck. And you I I want that car, you know, I deserve that car. Deserve that car. I deserve it. And Yeah, I am not going to argue with you. Put in a tunnel. Work there and and that's where I actually talk to some people who are just starting out. We don't just talk to people who have millions of dollars to invest. You know, we we do have those folks as clients and we love those clients right, because that's our redden mother, just to be honest. Yeah, but we like to help everyone, and so we talked to people who are just starting out. We're actually getting ready to launch a masterclass that will be very low cost for people who are just starting out in this whole idea of investing and saving for tirement. So...

...as I talk to people like that, I don't tell them what you might expect, which is scramps Ay, live on Robin Noodles and and and continue to live that way. But I talked about moderation and prioritization. And maybe not a porsche right, maybe not a porch just yet, or maybe not the marble countertops we're okay with from MICA, but get your own place, maybe first time you've had your own place or or whatever it might be, because you do need to reward yourselves. And and one of the things we talked a lot about is starting with a budget. As you get started, have that budget and people laugh, but I like the envelope system. A man, Hey man, I'm an envelope and this is for groceries. Grocery envelope, and you put literal. I mean maybe it's not safe right because you get robbed the litterally little cash in there, and what they think, but you need to have one. You need to have one envelope that is...

...for entertainment or saving for the Porsche or whatever it is that's going to bring you joy, because you need to see that it's a behavioral thing and we all haven't. Don't deny that it's there and don't continually deny yourself's kind of going on a diet and you just go cold Turkey and there's absolutely say, no sugar. I did that once, he or bid John. That's blade. I thought I was going to die, I can tell you. And eventually we got to a point where we're now in an extremely low sugar die it and and it's helped. But you know, going going there and absolutely nothing, no cheat, they or anything makes it just that much easier to cheat. It will. It really does. And the other aspects of that. That mentality is what you said earlier. Maybe not the new Porsche, or maybe buy a three to five to seven year old port of that looks...

...brand new, because you know what nobody else knows. But you get that feel. Or what I what I've tried to do sometimes. It's go take a test drive in a car and just get the feeling. Oh that was fun. Okay, I that last me. Now the three six months. Right, I don't have to spend the money. A little bit of the fun. But it is that mentality to understand that the decisions you're making today and going back to the you know somebody, whether it's an HBAC guy who's climbing the ranks or somebody right out of college buying a house, and I'm sure you talk to you some of your younger clients about this, is but you buying that first house as a potential rental investment. Right that maybe in three to five years you're going to outgrow it by the next one. But now you've got a rental property that is part of a portfolio. That would be another idea that you could talk with people about. Say, let's be strategic and how you do things right. Right, that's right. And there's there's a myriad of different things that you can do. Clear you can set up a LLC, you can set up and into howls like the rental properties,...

...or if you have a hobby that may at some point become a business, you can set that up. I mean that's what we mean by comprehensive financial planning. Not just about your investments, it's about your whole life and and building that out and planning all the different parts of it that feed into what you want your in goal to be and deciding what they in goal is. And and sure it might change along the way, of course, most people's do. Right, I wanted to be fireman when I was a kid. Did now I'm a financial advisor, but film advisor, but out different fires and people's lives, but about different fires. And but I but I love doing it. So that's right, you know, and it but it is. It is really is looking down and having a plan and realizing that plan can can more, but that's okay. You got to have guard rails and that's where John, and you know, you really help people understand those guard rails of don't go it's a the whole pendulum thing right. Don't go...

...too far in either direction, but stay focused and realize that the decisions you're making today do have consequences and those consequences can bite you down the road or they can be some of the greatest blow less scenes of your life. And really, when you have the plan, you're not going to be eating Rama noodles all of your life. You're going to be moving up that you know. You don't go from Rama noodles to Ruth's Chris. That's probably not the best way to go. So you you, you know you can go to Ruce Chris a couple three times a year, but it's all medicated, right. So it's really making decisions today that impact the future, and I love your compound interest thing. That really played out really well. So great concept and I'm sure we've just scratched the surface here. So we'll probably come back to this discussion in a future episode, but until then, let me just encourage those who are listening you just to reach out to John and ask him some questions about this. Get a copy of his book. That will help...

...you understand his philosophy and how to build a life, not just a portfolio, because, again, you don't want to retire with millions of dollars and then, well, not be able to enjoy it. John wants you to enjoy the life you have today and the life are going to have in retirement. He can help you do that with its comprehensive retirement plan and strategy that he has. So, John, thanks for another great episode. All right, thank you, you're welcome. We will talk to you again very soon, my friend. Take Care, by bye. See You. So thanks for listening to the building your life podcast was John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it is released. Have a terrific day.

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