I know this is not where I want to stay forever but for right now mentally I'm okay physically I'm okay so it's just like at least for the first in my how much years of living I ain't gonna say it I feel like I am in control of my financial even not but might be the best control but I'm in control like it feels good
Welcome to the Journey to Launch podcast with your host, Jamila Sufrant, as a money expert who walks her talk. She helps brave juniors like you, get out of debt, save, invest, and build real wealth. Join her on the Journey to Launch to Financial Freedom in 5, 4, 3, 2, 1.
Hey, hey, hey, juniors. Welcome to the Journey Tunch podcast. I'm just recording this quick intro, because what you're about to hear is a conversation between me and my sister, one of my many sisters, Aymani, and it's a real life conversation. You'll hear it in the actual episode, but just to give a little more context,
My sister was visiting me for the weekend. She was here for like a day and she spent the night. And before she was leaving, we started to talk about just life and catching up. And then, you know, I just had to ask her about her finances because I had instructed her to open up a rock IRA back in 2020 actually. And so, you know, I'm always asking her like,
Are you contributing to it? How's it going? And, you know, she's like, yeah, you know, she did that first. And then she was living life and just was giving me an update. And as we were talking and as she was sharing, just being real with me about some questions she had or maybe why she wasn't doing certain things, I was like, you know what? This is a conversation that I know.
other journeyers would benefit from there is someone who is also just has these questions or things that are preventing them from moving ahead and maybe this can help. So she very graciously allowed me to record the conversation. So what you'll hear is that raw conversation.
little back and forth between sisters, try my best not to be too pushy with her or anyone really. And you also hear, we're talking on one mic. So I'm sure my editor will do her best to make a sound great. And if you want to hear the previous conversation, so I did have a conversation with both my sisters, Imani and Shayna back on episode 221, you can go to journeytolange.com slash episode 221.
And if you want to follow me, I'm at Jamil Sufran, at Journey to Launch, and then my sister is at Yod Chef under score 45. Can you tell she is Jamaican? It's Y-A-A-D-C-H-E-F under score 45, all on Instagram. Oh, and by the way,
I can't believe like I just almost forgot to say this, but the journey to launch podcast has exceeded or has approached the 400 episode mark. So this, I think this episode that you're hearing is episode 401, which is like.
insane that I have over 400 episodes. And so I couldn't go on without at least acknowledging that and saying, I'm so grateful and happy to have made it this far in podcasting. So thank you so much. Maybe I'll do like a episode or something around just what I've been, I've learned over all these episodes in a future podcast. So just thank you journeyers for continuing to listen, share the podcast with your family and friends. And let's keep growing. Let's keep learning. Let's keep journeying on.
If you want the episode show notes for this episode, go to journey to launch.com or click the description of wherever you're listening to this episode. In the show notes, you'll get the transcribed version of the conversation, the links that we mentioned and so much more. Also, whether you are an OG journey or brand new to the podcast, I've created a free jumpstart guide to help you on your financial freedom journey. It includes the top episodes to listen to.
stages to go through to reach financial freedom, resources, and so much more, you can go to journeytolaunch.com slash jumpstart to get your guide right now. Okay, let's hop into the episode.
All right, so I was having a conversation just now with my sister, my little sister, Aymani. We're literally upstairs in my kitchen. She was visiting for a night, which was cool for her to come over. She was in the area and we were talking about so much things that I know that other journeys and people would relate to, I think.
And I was like, you know what? Let's pause the conversation. Let's turn the mic on. And let's talk about it because I think this could be so helpful. So just a little backstory before she comes in and chats. Imani has been on the podcast before. She was on the podcast with my other little sister, Shaina. And I'll link that in the show notes, but basically Shaina and Imani, both my little sisters are
more creative types. And in that conversation on the podcast, we talked more about their journeys individually and saving and earning money and not kind of having a consistent income, but like, how do you make progress to your financial goals and all that? Imani also is an amazing chef. She actually catered for my book launch party, your journey to financial freedom last year. And she just, she does amazing work in the food space.
And what happened a couple of years ago, I think it was in 2020, is that I encouraged her along with my other sister to open up Roth IRA accounts. So, you know, investment accounts for the first time. And because she wasn't at the time earning a lot of money and money was inconsistent, it was scary for her to do that. But I kept telling her like, look,
open up this Roth IRA, even if you only put $100 in, or just a little bit a month, it will pay off. All the things I talk about on this podcast. And so she did it, and she did see success in terms of her money. Once she put her bulk, the starting deposit in, I think a year later you had called me, you were like, oh my gosh, the money has grown. And this is amazing. You were right.
So now, right? Like that happened. She came on the podcast. She knows my work, all that stuff, right? So then we're having a conversation in my kitchen four years later. And I'm like, okay, so have you been contributing to your account, your Roth IRA, what's going on? And that's kind of where the conversation came in. So I do want Imani and I just, hopefully we can like forget it's, this is all recorded. I'm just talking naturally. Because I think there was so many great points that you brought up about why it's hard for you to
I guess continue the investment and saving all these things. And I think that that's so relatable to so many people and maybe can help other people too. So I'm going to go back a bit. So the question that I asked you upstairs in the kitchen was, okay, how's your Roth IRA going? And what did you say? I think I said I don't even know because I don't be checking it.
Honestly, I don't be paying attention. Sometimes I'll be forgetting. I don't even remember sometimes that I do have that ROT IRAs set up. So I don't know. It's kind of like a little scary thing to like, you know, just take your money and just put it all at once into something. It's like, for me, I just feel real comfortable when I don't know if it makes sense to a lot of people, but it makes sense to me. I want to see my money. I want to have like,
full on access to my money, not saying that I'm gonna draw everything out of the bank one time, but there's this thought in my head like, suppose I want to, I want to be able to like see my money and be have access to it. I could take it whenever I want to.
And it's funny because I was like, you know what, we were talking. The computer wasn't out in my phone. I was like, you know, I'm going to take some notes because I actually think us talking through this will be helpful for maybe an episode of the podcast for other people. And I was like, you know what, let's look at the accounts because I think that matters. Like, I think like when I just say it to you and we talk about it, the visuals is good.
Because it's just like, okay, you're just saying it. But like when I'm like showing you stuff. So there's a couple of things I want to like talk about now. And it's like, I totally get the seeing your money thing and not wanting to like the hard earned money that you're earning to take that and to put it in.
like this account that you, you had asked me a good question. You were like, you were like, so when can I take this money? And I'm like, well, technically you're not supposed to take this money out at all because you want it to grow. The whole purpose is it grows over time. Now, if you needed to access your Roth IRA contributions, you can do that at any time, but, and you wouldn't pay a penalty for that because you're already taxed on it. But any of the interests earn you be taxed on that. And there's a penalty.
So you're really supposed to leave that money in, let it grow for the next couple of decades. And then when you have, you know, you're entering your retirement age, you have this lump sum of money that is going to help supplement your income or be your income. And one thing I said, I was like, let's open up your account. So you, she, you were logged in. Well, first of all, you have to get like access codes because you forgot all the codes, right? Yeah. That's how long I haven't been on it. Right.
you logged in on your phone. And this, you knew this already, but literally like you doubled what you put in, like you doubled in just interest earned over the last four years. So you see like it works, like investment, investing does work.
And I was telling you, I was like, look at that. Now, if we can get you to a place where you can max out, and I know that's like, you know, the next step. Sometimes I think I'll go from zero to a hundred because I'm like, let's max it out. It's not sometimes most of the time, especially with saving. Yeah, it goes from zero to a hundred. But I was, all right, right. Let's, okay. Something, let's put some money away on a monthly basis or annual basis into this Roth IRA.
So there's a couple of things I'm going to like challenge you or want you to do after this conversation. And I hope that you follow through. But one of them is contributing to your Roth IRA regularly.
And in order to do that, this is what you talked about in the beginning. This idea of not having your money in one account, you have a regular traditional checking account or savings account or both. So you have a traditional checking and savings account with one bank. And you like to log in and look at that account, right? It's like a thing. And so here I am asking you, asking you, dear listener, also, if this is also something you struggle with is
Obviously, I'm not going to ask you to take all your money from your savings account or check an account to fund or max out your Roth IRA this year. And we're listening to this in real time. It's November, 2024. So it's only two months left for the year. Because one, you need to live. There's expenses you need to pay. You have rent. You have life going on. And you still need an emergency fund. And so I'm not asking you to put everything to the side.
But what I told you was, okay, here's a plan I think that could work for you. I think I know how much money you have. You don't have to say it on the podcast. But you should one, open up a online high yield savings account and put some money in there to help earn interest on savings. Because what your traditional bank, you're only getting probably like 0.003 or 5%.
Whereas a high yield online high yield account, you can earn up to three, four percent. So remember, I logged in, I showed her my high yield savings account and showed her how much interest I'm making a month on just keeping the money there. I don't put anything in there. So I said, okay, let's optimize and look at your money. So put something doesn't have to be everything. Let's put some money into an open up a high yield savings account. That was one.
And then the second thing I said that I'd like you to do is let's start contributing on a monthly basis to your Roth IRA that's already set up with you have it with Vanguard. But let's make it an ongoing payment. And you don't have to go because I did the calculation for her. I was like, OK, if you were trying to max out the contribution limit is $7,000. So I said to her, if you want to max it out starting in January,
And you can, you know, contribute every month. 7,000 divided by 12 is $583. And because it's hard to remember to do that every month, let's just make that automatic. So automatically $583 will be taken from your checking account and sent to your Vanguard account and reinvested, you know, and buying index funds.
So that was the second thing. And then the third thing that I realized that you're doing, that I want you to, and we're gonna talk about this. I'm gonna let her talk with it, but I said to you, I actually, I was like, so how are you doing with your debt? Cause from the last time we spoke, you actually, you don't have student loan debt. You really didn't have a lot of credit card debt. So I'm like, you're in such a great place. Like, you know, like you're single, you don't have any kids. Like, you know, you're earning, you know, decent income. That could be a part of it too. Because I'm single and I don't have any kids.
the mind is like, it's just you, you just got you to worry about. So I feel like that's a push to save. And like, when you got people that...
on your side that really, really depend on you. Now it's not really about you no more. You still have to make better decisions. Probably it's a case where I'm just by myself. So it's like, I could be a little bit more carefree. That actually is a good point, right? Because I'm looking at it as like, you don't have kids, you know, you single, you could really push it to the limit and like use the money that you're earning to push you further financially.
Whereas for yourself it might be well because I don't have those things I feel like I don't just venture and do like more stuff because I Don't have that right. So that's a good point So we're gonna get to that too We're gonna talk about that too But the third point that I want you to do is your debt because you do have credit card that you said that you spend on your credit card Yeah, and I was like, okay, that's fine with me I spent on my credit card all the time Yeah, and I said are you paying off your credit card every month and you said no
And I was like, OK, you need to be paying off every month because.
I know there's a reason mentally or emotionally why you do it that way, why you were doing it that way, but we're going to get this. So let's tackle each bucket. One by one, because I do think these are steps that I'd like everyone to consider if you're able to. And if you want to get to a better place financially and then progress on this journey of financial freedom and independence. So three things, remember, I said, oh, hi, yo.
contributing to your raw diary and then paying off your debt, your credit card. So let's go back to the high yield savings account. Do you understand why I'm asking or why I'm recommending that you open up a high yield? What are like some of the questions you have around that or like reservations? I mean, more piggybacking on the conversation that we did have upstairs
I got more clarity on it. It makes sense. Like why not? Because I do have money in the bank. So why not put it in something that I'm actually getting return on. So that is something like now you'll be like, all right, you really be.
crazy not to do this so that's something definitely I'm looking into because it's like this whole time I had my money just sitting down just sitting and earning not a lot of earning nothing when actually I could be doing the same thing with getting interest on it so yeah that's a that's a great one and some of the pushback I've heard from people who just don't understand the high yield savings account model with a high online bank is
Well, with a traditional bank is it safer, you know, you can walk into a bank and talk to someone about your money at like one of the big banks or brick and mortar banks. Whereas most of the online banks, I can understand the reservation because there's no real location. But the reason why they're able to give you higher returns is because they don't have that big overhead. And the money is still insured. So I don't, I think I'd have to like search up like
I think it's up to two, like just like a regular brick and mortar bank, your deposits are FDIC insured so that if the bank went out of business or something, you would get your money back in theory. Same thing with the online, same as accounts or accounts. They are insured. So you're not just sending your money off and like, I don't know if I'll see it again.
The thing about your high yield savings account, I do think obviously for anyone, you're going to be, if you're using your check in the savings account to pay bills or for certain things, you want to keep money in there to help cover your expenses and cash flow. So with the high yield, I'm not saying drain your account to zero. I'm saying maybe take a portion of some money and just put it there to park it there for emergencies. And then I also said, you can also save money, like let's just say you're saving for,
down payment for a home or even like a trip or something. And it's going to be a year or two years out that you need to save that money, you could save it in that account. You wouldn't like drain your savings or check an account. You don't need to do that. But if you're saving for like a long term, even like a year out goal, you could save it in that account and at least earn interest on it. So how are we feeling about that? Feeling great about that. Feeling great, you know, like all the time too, when I talk to you about stuff like this, I get more
It's like I'm more encouraged. I feel like, all right, I'm safer. I'm safe for the information that you gave me. I know it's just for my best interest. So at that point, I'm like, all right, you know, if Jamaica says it's cool, I mean, it could only be cool.
So I think that, like, just getting more clarity on that made me feel more comfortable, like, all right, you was going to keep the $1,000 in your account. Anyway, you wasn't going to use it to do nothing. Why not put it over here? Right. And with the, with the online accounts, you can still, that's, that's not an investment account or it's, it's not a retirement account. So you can access that money anytime. I know some banks, they might be like a day or two, like if you need to transfer it back.
you got to wait. You got to maybe wait a day or two, but you'll get that money if you need it. It's not like, oh, I got to call and request with my online bank. I can just literally transfer money. I guess they're in a couple of days if I need that money again. I think what's important too, because it's probably just a barrier for just a lot of people, is
Trusting the advice that you're getting, which I understand. That's the number one thing. Because it's like, who can you trust? Like most, if you were hearing this from the bank, the online bank, like, let's say they were talking about it, you'd be like, oh, you just want my money. Like, are you really gonna like, is it a scam? Like, yeah, you're thinking all of that stuff. Yeah.
And so I do think it's really important. Like it is like me really wanting to help you just as my sister. Like I'm not, like I don't get anything from telling you to like open up a high yield now. So you have that safety, it just feels, all right, if you don't do this, that's on you. So I think that's a good step is the high yield savings account, right? And again, you can fund however much you need.
in there and then you don't even have to put it, put more money on it if you don't want to. Just leave what's there. Or if you're saving for something, like let's just say, so for anyone else, if you're thinking about this, you could put your emergency fund in there or your FU fund in there. That's what I did when I was quitting my job. I funneled more money into that account because I knew that if I needed to cover our expenses, I'd had that money, but Lisa could earn more interest. It could earn some more. So you could figure out, okay, what is my monthly expenses?
you can figure that out and say, okay, I'm just going to put that three months of that in this online savings account. So that way if ish is the fan, I know I got three months worth of expenses and is earning interest in that account just for safety, just for safety. And then on top of that, if I'm saving for goals, I can save for my goals in that account, saving for a car or down payment, it can earn more money in that account. So that's like
I feel like anyone or people should look at in terms of their financial foundations is like where your account's set up and do you have a high yield savings account that you can open up or contribute to that can earn more money than a traditional account. So that's one. Now let's go to your Roth IRA and investing. I think, and I don't want to count your pockets, but I was like, wow, I think you're doing a decent for yourself.
like going back to like kind of just being you and you're renting and you know there's some expenses you don't have like you don't really have a high debt payment which gets to the third point the debt before but like you I feel like okay so you're getting money yeah
So you should be able to, I think, max out your Roth IRA every year. Max out. Max out. $7,000 now that you can contribute to a Roth IRA, which is a after-tax retirement account that you can open up at any brokerage or investment firm. Fidelity, Vanguard are just a couple of the established
brokerage firms and investment companies that you can do that with. You currently just, you're with Vanguard because I helped you open up that, right? So when I did the math, as I said, when we were just talking, it would take $583 a month to do that. How does that feel? I mean, put it like this. I know the result is chef kiss, right? But instantly in my head, I start thinking like, all right,
That's like a next build. Even though it's beneficial in the long run, I think we, let me say me, I placed a lot of emphasis on the nose, even though I should be open about the later. Like in the moment, yes, in the moment. So I instantly start thinking about, all right, that's another build to my rent, to my this, to my dad.
When nine out of 10, I might still have that money not spending on a bill. You get what I mean? So I think that's, though, that's, this is good because you're saying almost setting it up where you're putting away $583. It doesn't feel like something that's helping you today. Yes. It feels like an obligation and bill, like all the other bills, which is so interesting. Then I'm not seeing, so all right.
You're monthly rent. Nobody get excited to pay the rent, but at least when you know you pay it, your landlord ain't going to knock you down. So you kind of see in what you just spent on, right? I feel like that 583 is like, I'm paying a car note that I'm not, I don't got a car to drive. Okay, but you're putting it into this retirement account, right? That you can log in and see. So we're going to talk about access to your accounts to make that for you as a big deal for a lot of people.
But it is because even just from when you contributed and opened it up in 2020, you earned double the money, almost double the money. So it is increasing in value. Yes.
So it's almost you're just switching, it's like switching your mindset to feel like it's not like I'm putting it into a car cars that depreciating acid, like literally as soon as you know, it's going to go down mostly in value. But with this, your account is increasing. Now, if you check it every day, there's going to be some days, it's going to be down, but it's going to go up. So I think it's a more of.
Just tying like that five in 83 is actually in two, three years is worth $6,000, $7,000 or it's gonna increase in value, not decrease.
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Oh, it's not like I don't understand the benefits to it. It's just changing the perspective of the mind, like, listen, all right, 583 next year is going to be probably 1083 that I'm getting back versus if I just spend $500 on a shirt or something like the minute something spill on that, my 500 is done, right? Right. Or it's just
It's the value is not there anymore. Yeah. So it's like, it's literally just switching how my mind said about it. But it's valid. Cause I think these are all reasons that people have a hard time with investing. Because one of the other things you asked me upstairs, you were like, so yeah, like what is this for? Like it's like, what is, what is the point of this money that I'm putting away? Cause you just also said you'd like to think about the now and I am asking people when they do this, it's like,
It's more about securing a future. Like, so yes, this money is not meant to be touched for like 15, 20, 30 years. So it almost feels like, so then how, I want to enjoy it now, like that's money. And I'm telling you like, especially when like my work is a lot on my body, right? So even again, even though I know that's the investment in me is, is my money is going to grow is like, I'm like,
So I just did all this work right now to wait for 10 years.
If you want to enjoy it now, yeah, I want to enjoy it now What I do understand the 10 years is still as important as now and I get that like but I do feel like so that what I was telling you is okay Let's just say you don't want to max it out because I think this is a key thing for a lot of people even me now It's like you want to enjoy your money you work hard and you don't want everything to be so far from the future. I do think one
You don't have to necessarily max it out. I think you can, but let's just say I say this, because I told you, I was like, if you just do like, let's just say $200 a month. Yeah. And you decide I want that other money that I would have spent investing, I want to use for fun. Yeah. You can still do that.
You might not earn as much or, you know, you're not putting away as much money over time, but you can still like say to yourself, all right, I'm going to still go out like I want to eat what I want to eat. It's not going to be spent at $500 like on those things, but maybe I'm spending $200 on it or $300 on it because I'm going to invest. So I'm not asking like,
If it feels too much upfront, I'm not saying push everything and only be financially inclined and focused. I still want you to enjoy your life, but what if you split whatever money that you could do and put towards your responsible investing long-term goals, but then still have that money to do what you want. I think one of the
Not easiest ways but a way to accomplish that is to make it automatic Yeah, because you're not gonna remember to go in every month and to like like we can't that's a point like human beings like this even me I'm not even gonna remember to do that on a monthly basis. It has to be automatic for me Yeah, so you don't got to start with five hundred eighty three dollars a month if it feels too much But you can do maybe like a hundred two hundred and then we can revisit this conversation in six months and
where I'm like, okay, how you feeling financially? Do you feel really restricted? You might not even notice a difference, because from what I understand, you're not, you don't budget, right?
So that's another thing. I think because you're not budgeting and not everyone needs to budget, I think in the real world, the people who don't really think about this a lot, like budgeting is not something people do. They don't want to do this, want to like spend their money. I get it. But if you're able to set up systems that like you already got your, your high yield savings account that has a bit of money in it earning, you're already putting 100, 200,000 a month into your Roth IRA.
and we'll talk about the debt in the third point. But you can then now still do what you're doing, even if you're not budgeting. Well, I'm making a difference. But I think even just understanding what your cash flow is, you'll probably see like, wow, I actually can do more. I can still actually put more towards my rock and still. Probably that's what the scare is. If I really take the time, I'll talk of be like, boy, you could have been doing probably that spot of it too. Like you don't want to like realize that you have to do that. Yeah, because you know, sometimes realization would hit you like,
I could have been really saving more or I really could have been doing this. So what's interesting is, is that I know if it's shame and you know, or that regret or not wanting to feel bad, but then it doesn't like it prevents you from changing course, like in doing the thing that will help you moving forward.
It's kind of like you're stuck and you're like almost like, okay, I might be not doing the right thing, but it's almost like I don't want to admit or see that I'm not doing the right thing. So I'm going to continue to like, yeah, not the wrong thing, but not take action. And then, but it's like, it's okay. Like you're not wrong. Like you've actually, you're doing very well. But there's still time that you can make up and do.
because we're gonna hopefully be having like many like conversations about this moving forward. And in 20 years, I wanna sit down with you and be like, remember when we had those conversations, now look at your account versus in 20 years, now you still have to work at hustle because you have nothing.
Because that's the thing, the time is going to pass anyway. God willing. Because look how fast four years passed from all did that. So right. And you're going to want to be like, Oh my God, I'm just so glad I just put the hundred two and even if it's not Mac, I'm just so glad I put that away because I have a hundred thousand now. I have two hundred thousand now. Versus zero.
So I know that that's not like easy for people to change that mindset, but I think hopefully talking about this more helps people realize it's normal to think this way. And it's normal that it prevents you from taking action, but that just starting is helpful. You know what it is probably in my brain.
because I feel like even though I'm not where I need to be on a saving wise investment, I've got so much better from what I was. So I think with me getting better, I am living the proof of like it actually works. And in my mind, I'm just in the state of like, I just want to enjoy this. It feels good.
your bills come. I mean, you don't want to pay bills, but it feels good that when bill time come, I could pay my bill. I could do that. It's just, it's such an amazing feeling. Like sometimes I'm in awe of it. Like, wow, I really just paid rent and I could go here. And so sometimes I just want to leave. Even though I know it's not enough, because, you know,
For me, once I hit a goal, I'll stay in it a little bit, then I'm like, all right, what's next? So because I've just hit this.
comfortable pad in like font. All right. Stability. It sounds like a good stability. Yes. As for you, stability is like, that should be fine. And so many people have not his stability yet. And I think too, so environment matters, right? So if you're a kind of person who is like, you do really well, and stability is kind of like, you've done it.
it can feel like, okay, like I don't want it like this is it. When it's just like, I think I do think that stability is like just one of the wrongs of the latter. And if some people, that's what they'll hit and that's all they're hitting, that's fine too. But I think there's more for you. I know, like a lot of times I sit down, I know there's way more for me, but I just feel like for right now,
It's the first I've done it in a space where it's just me. I could be like, yo, you put yourself in the position where you work hard enough.
He's going to enjoy it now. Yeah, even though I know that's just there's a next step after but in my brain is like before I get to that step, let me at least enjoy this little part because it's been so rough before I got to this part that all right, I don't want to let me just.
I just want to relax and not have my brain even though the investment is doing all the thinking for me and all of that but it's like alright right now I just I just want to stay in this I know this is not where I want to stay forever but for right now
mentally I'm okay, physically I'm okay. So it's just like, at least for the first in my how much years of living, I ain't gonna say it. I feel like I am in control of my financial, even that might be the best control. But I'm in control like,
It feels good. Yeah. And that's why I'm recommending the first two steps, even the third one that we're talking about with the debt, like I'm actually saying just one, open up the online savings account and put some money in there just so, cause it earns, it's sitting there anyway. So you don't really have to do much after you do that. That's one too. Just set up automatic transfers, even if it's just $100. You don't have to go 500 a month, but $100, $200 is something, right? Depending on what you feel like,
you could still do but live your life. That's automatic. So I'm asking, you know, like mentally you have to do that every month. Like I want you to set up automatic transfers and have that. So that way it doesn't feel like you're putting everything towards like maybe the more responsible, saving and investing goals. You're just putting something a little bit more than you're doing. And then you can still enjoy and live your life. And then we can check back in six months in a year, like we kind of been doing and say, okay, how does that feel?
I mean, I know, I know I'm gonna do it. I know I'm gonna do it because it's the same advice that I got four years ago that put me to be in such a financially stable position. So of course, I know it's very beneficial, but it just feels good right now that in my brain, I'm just like,
Wow. I just want to enjoy it a little bit. But I know what you are telling me is like key factors, which I am going to do. Because as I said, me listening to that four years ago versus now is like, if I didn't do that, my money got doubled by not doing nothing. So just imagine if it was in that high yield account, it would have been doing way better. Right. Yeah. So.
Okay. The third thing I want to talk about that I'd like you to do is with your debt. So I'm very happy that you don't have any, you don't have student debt. You don't really have a high credit card balance debt. But what's happening is you are spending on your credit card, which I'm not, I'm not opposed to because I do that. Yeah. But when I said, Oh, are you paying it off every month? What'd you tell me? I paid a minimum. Sounds like great. Went to be honest. Yes.
I be having the money to pay the entire stuff. The bill is like 500. Let me put two. When I could have just did the whole 500 one time. And so I was telling you, I think people feel, sometimes people feel like this, like it's not like a flip to the man or the credit card. Like, oh, I'm not giving you all my money. I'll give you just a little bit because what's happening is you have to pay interest on the balance that you're not paying off.
So the $100 shirt, I'm just making things up or the $10 Wendy's, whatever that is. It's like $3, $4 more. It's like $50 more based on you're not paying it off full. So it's really just spite in yourself. But this is only works if someone is doing this and they have the money to pay it off and they don't want to or they refuse to. I'm not talking about you if you like, you can't do when you really have to pay the minimum or whatever you're on a repayment balance.
But if you have the money to pay it off, you're like, no, not paying it. I'm just going to pay a little bit. It's like you literally are paying more money than you need to.
So what I want for you now is to pay that credit card off in full every month. Every month. Every month. And hopefully it's a credit card you're earning points on. Hopefully. Right. And they tricked us too because why would they tell you to pay a minimum? They want to make their money. Well, so that's the thing. Like they, there are people like me who spend everything on my credit card by paid off a month. They don't really make up. They don't make a lot of money off of it.
me or any money, but there's people like you and people who can't pay off the full balance. That's where they're making the money off of the interest. So of course, they want you to pay the minimum. So if anything, you're feeding into their strategy because you're thinking like, well, I get to have more of my money in my bank account, but they're like, I spy. And this is to go back to what I mean when I say like when it comes to investment and saving,
I am like a brick wall when nobody else is talking to me because stuff like that, because you know, you doing that is leading your consumer, your banker down the wrong aisle, but you still have us do it, right? Versus when I talk to you, you're gonna point out all those stuff. You get what I'm saying? So it feels more, okay, this is more like a plan that I could go with versus this one. Right. Yeah, I'm about a minute. I'll walk out of here.
So three things, okay, to recap, I want you to open up a high yield savings account. I put some money in there to grow and hopefully if you have some short-term or long-term goals you can put in. The second goal is I want you to set up automatic transfers to your Roth IRA.
If it's like $100, $200, we can work up to maxing it out, but let's first start there. And then three, pay off that credit card on a monthly basis every month. So it's not a problem spending on it, but pay it off.
I think overall what I'd like to see you to work on and do is I think you probably have cash flow. You have your main job, you have additional money that you have coming in from your other ventures that you do. I think there's because you're not tracking it or you're not aware that there's probably so much like hundreds. You probably will be pleasantly surprised at how much more you can do if you really just looked at what's going on.
take control. Yeah. How are you feeling about this? I feel good. You know, I have this feeling we're like, I don't think I say this a lot, but you're right. This feeling you are because I know if I was supposed to sit down like one good month and just budget, I might be like, whoa, you might find a thousand extra dollars. You're like,
Wow. Yeah, that, to be honest, is just sitting there like, but I think like, you know, that's what I like to come over here.
I wore conversations that don't always start out like this, but it always end up like this, you know what I mean? Well, so I try to get, I invited to come here so she could bring me food or cook for me. And she'd be like, oh, I do this all the time. I don't want to do that. But she'll like, yesterday you brought me some good meals. I don't have to cook for a couple of days. But I was like, when we were talking, I'm like, we got to talk about the money stuff just because I just know by starting and by doing something.
that you'll be so happy. Just like four years ago, when I got you to open up the Roth IRA and now there's results. I just know that we'll have this conversation, God willing, in 15, 20 years will be a lot older. Our kids will be a lot older. I'll pull that up.
Oh, here's the other thing I want to talk about because I think this is a valid concern. You were saying to me that one of the reasons you didn't, you have your check in and savings at one bank. And you like to just open up that account on your phone and see everything. I just like to see my money. And I get it.
And a lot of what, you know, is being asked of you and journeyers and even myself, it's like, okay, but you're like delaying gratification. The money is like in place you forget. Like you're like, oh, wow, I do have like extra amount of discount. So I was like, okay, optically or just like, um, practically what about, you know, on your iPhone, you have your, let's just say your, your regular bank account app.
what if you put the Vanguard app also there and then whatever high you'll save is how you're going to use in one folder. So that way when you, you know, it's a habit that you have now. You open up that whatever account and you look at it, right? Because they all have apps. You could click on it and see your money in those three places. So if you need that itch, you got to like see your money. Sure. Open up the traditional account and open up your investment account afterwards and then open up
the high yield account. Make it a habit of when you do one, just to do with the two, and then you, so you see the money. Eventually, maybe you won't have to do it as much, but I get it, it's a valid kind of like, at one point in my, let's just make a number up. At one point, I had $10,000 in my, all my account, in my traditional account. Now, you're asking me to send some money away somewhere and like, not
So it feels like it's not my money. But what if you just have it all in one? And there are some apps that combine all of it into one. But I don't think let's just start with the actual apps that are for those accounts. But what about doing that? Will you feel like that might be helpful?
Definitely. And it's the small stuff like logins. I think like it's such a small thing like not knowing your login like that's annoying. Some people that's the reason people sometimes don't do something. But if you have like face identity or certain thing like it's easier just to open it up and access it. You know what it is? This saving stuff is just like diet.
We know the right stuff we got to put in our body. We'll be like, why we don't look like that person? Because you're not putting the right stuff in your body. We know. But I guess it's easier sometimes not to do the right thing, even though it's not right. Your body getting that algorithm of just being like, hey, we just going to do the bare minimum.
With saving though, I'm getting more into it. I think every time too, I don't really want you to take it just because you're my sister. But I feel like money conversation with you is very...
You get it, you get it more and there is like more clarity on it as versus somebody telling you, hey, just put the money there. You explain what's going to happen when you put it there. You explain what's not going to happen when you don't put it there.
It's only you know to be like, hey, do you want to make 5% or 0%? If you're smart enough, which one you're going to go with, I definitely want to make 5% and not make 0%. So now it's a fuel to be like, all right, now, push the money out. It's going to be beneficial. Because remember, just now I couldn't find my to log in for the stuff. The last time I went on it, it was not that money.
So just not when we both see it. I was like, right? It increased. It didn't like a good 1500 like crazy. So it works. I think, you know, again, I don't think any of this is necessarily natural or, um,
easy. I think it's simple things that most of us, like you said, you kind of know what you should be doing. I think there's just so much psychology and internal things and why we're not doing it. So I think I just want to like, even say to you and anyone else who kind of
can be doing more, it wants to do better and knows there's like some opportunities for growth is that let go of any shame of what you should have been doing or any past stuff. It doesn't matter. What matters is like maybe hearing something and even just educating yourself on something. That's it. And I know that just because you're aware of this, you're doing better than a lot of people who are just not even aware of this information.
That's true. And even if, you know, you can max out and do the most and all these things that I, you know, I encourage people to do is like, just doing a little bit will get you so much further than not doing anything. All right. So again, I'm encouraging you to, I'm going to do it. I'm going to do it. I don't know if I'm going to do all three at once. Yeah. Yeah. But.
the higher yield saving. And I think with my right ROA, just making it more consistent, it's not gonna hurt me. And I think that when they just automatically take, I think I could do that. Because that way, I think that the hard part is me literally logging in and doing it. It's not because, hey, you don't got the money to do it. It's just taking the time out to do it. To do it, yeah.
So all right, so you hear that journey. So we're going to check in with Imani. Maybe next year at some point have another conversation to see if she listened and followed through. And thanks for being vulnerable and being open with Sharon. You know, I said when we're talking upstairs, I was like, Oh my gosh. I need a solo episode for this week.
would do about sharing this like do you mind having this kind of like tape in the conversation and she was like yeah let's do it so I appreciate you for coming on and sharing hopefully this not only helps you but it helps people other people listening and they will keep you updated and thanks for coming on the show again your welcome sister all right no problem
Okay, juniors, I hope you really enjoyed that conversation. You can check out me at Journey to Long, or at Jameela Sufran on Instagram. Again, if you want to follow my sister, she is at Yod Chef, underscore 45. That's Y-A-A-D-C-H-E-F underscore 45 on Instagram. And if you want to pick up my book, you know, you can find that your journey to financialfreedom.com. All right, until next time, keep on journeying, juniors.
Don't forget, you can get the episode show notes for this episode by going to journeytolaunch.com or click the description of wherever you're listening to this. And you can still grab your jumpstart guide for free to help you on your journey to financial freedom by going to journeytolaunch.com slash jumpstart.
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