Color Full Lives Season 5 | Ep. 1: Things I Wish I knew Before Getting into Debt | State Farm®

(soft instrumental music) – Welcome to an all new season of Color Full Lives
presented by State Farm. I’m so happy to be back with my ladies. – Oh my gosh Schmoney Team unite. – I know we’re back. This is so exciting. – And we’ve got a lot of
things happen in our lives. Last time we saw you,
you were still pregnant. – Oh my gosh yes I had a whole — – You have a whole human
being that you made. – A whole little awesome human, I’m about 60 pounds lighter (chuckles) do I look the same? Do I like look like look like Tonya? – You look as talented and as beautiful as ever. – Yes, yes thank you so much. Knowing you guys, Angela, you finished your property that you were. – Oh yes. I finished flipping one
property in Detroit, I still have two, one of them I’m keeping one of them I’m selling and I’m also in the process of acquiring another property in Brooklyn. – What? – Yes condo in Williamsburg. – We’ll say mogul. – And I launched my Drink
Fresh Juice business. – You did, you did. – A lot happened cause
you guys motivated me. – Oh my God and I forgot to share, I did start a nonprofit like well
after I had the baby, it inspired me to start a nonprofit for mothers who want to experience pregnancy on their terms but might not have the financial means. So I’m really excited about that. – That’s amazing. – That’s so cool. I love that. – The last time your
baby was on the way too. (laughs) – Yes. – My child, I wrote a whole book. – Yes. – I wrote a book with
my friend Anne Friedman, it’s so exciting. – I can’t wait to read that book I mean. – It’s gonna be out in 2020 but the bulk of the work is done so. – And that was a process for you which was a great process. But I’m so happy when you were done, she hit us up like I’ve finished my book. – I finished my book because you guys motivated me so much you
know like I was doing that and doing the show with you last season and also I like learned a lot so it was really exciting for me. – Cause that’s what this is all about. And this season we’re focusing on the things that we wish we knew before major life events. And this week’s episode, we’re going to dig into all the things that you should know before getting into debts. There are many different
ways to accrue debt, we all know that, but there’s nothing wrong with having debt and in fact paying off the debt can actually help you build your credit. So how can you request a credit limit? – So a credit, well a credit loan or a credit line increase, a lot of times what you can do is you can log on to your mobile app or whatever it may be however you do your banking and you can apply in there. It’s a lot easier now for people to apply for credit or to apply for a credit line increase. You just wanna make sure that you have information about your financials accessible et cetera because of course if they’re going to give you money or give you debt, they wanna make sure you can pay it back. – Of course. – That’s not gonna be anything out of the ordinary it’s gonna
be like, what do you do? – Right. And they usually ask your
like what your income is and they, you know, there’s
a whole process for that and you can also just
call, I call all the time. I just call them and say
like what are my options? – Yeah. – What are my options? – And then a lot of times you pay on time, it automatically, they
automatically give it to you. I’m sure you guys you know, you’re going about your day minding your business and you get an alert,
like your credit line has increased, I mean credit line has increased by X ,
Y, Z amount of dollars. – And don’t forget you don’t have to use all that credit. – Yeah. – By the way you don’t have
to push it to the limit. – That’s not what the line means. (laughs) – Yeah. It’s just like you have it available but it’s like we really don’t want you to use this cause if you use it all, like they want you to use it but they don’t want you to use it all. – Don’t max out baby. – They kind of want you
to use it all though because then they can get the money, like you pay fees on that and et cetera. But that will drop your credit score. – For your own sanity. – But if you’re you
know, if you’re someone who you pay off your credit card on time every month,
that’s always good for you. And also the more credit you have, the smaller you know,
the smaller percentage of it that you use, the better it is for your credit overall. So that’s why it’s nice to have a very large credit limit. – Right. – But it’s also great to not keep up with the Joneses
on your credit limit. So that’s the secret. – And I like to pay off my credit card bill every month when possible. If you can do that, I think that’s great for your credit score. Also when they see that you’re you know, charging whatever, but then you also are being able to pay it off every month. – Yeah. And you know I think when I’m working with people, there are some people who have concerns are like you know, Tonya, I can’t afford
to pay this off at once. And so you know, pay the minimum, you have that minimum,
they’re like at minimum, this is what you need to pay to remain in our good graces. And for some people that’s
all they can afford to do. But if you can afford to do more, do more because the more you pay off, the more it benefits your credit score, the more you’re keeping that utilization below the magic number, which
is 30% of the utilization and it just helps you out in the long run. It helps you pay less in interest, helps you avoid those fees and it’s just better all around because when you’re borrowing money then you don’t really, you
have to pay someone back and it’s not your money
when you make money, it’s their money until
you’ve paid them back and then it becomes your money once you’re done paying them off. – So don’t ignore those bills. At least pay the minimum at least. – And if you don’t, they’ll definitely remind you about it so. (chuckles) – And if you miss a payment or you miss two payments, that does really hurt your credit score. I know I did that before and it wasn’t on purpose not like I didn’t have it but I just missed it and I definitely saw my credit score drop just from missing a payment. – I feel like things are so instant now you can miss one payment and you’d get an alert in your email almost immediately letting you know. But the thing to keep in mind is that you know, 30 days you have about a 30 day grace period
from that missed payment but then after that 30th day then it goes, you know that mark will go
on into your credit history and you can’t change your credit history like that’s one thing you can’t change, once that’s in there you know, you have to call them
and they have to amend it and they don’t really wanna do that. – Also you can pick the date that you wanna pay your credit card. That’s a thing that I didn’t realize, I would get really stressed out, I was like, but I get paid on this day, but all my bills are
due on this other day. And actually I was like oh,
you can just call people and say I wanna pay my bills on this. You can do that with your gas company, you can do that with your credit card, usually takes like one
pay cycle to happen. But you don’t have to feel that you have to be disorganized about that kind of stuff. – Right and with any relationship,
communication is key right? – [Tonya] So important. – So some of us are
experiencing financial hardships and the best thing that you can do is talk to your lender. A lot of them are very understanding, if you let them know what’s going on and you work out a plan. They can also tell you if there is programs that are available that they can help you out with. So communication is key. – Yeah and most people you know, we think about when we open up new accounts, when we move into a new place and so forth usually it’s around the first of the month if you’re moving into a
new apartment or so forth and so your bill is gonna be due the day you opened that account. And so unless you change it, you’re gonna be paying your rent, your
mortgage or whatever else and the bills that you opened up around that time frame. So it is important to call ahead of time, not on the due date,
so call ahead of time, I mean they’ll be like you know what, we need to pay this today and then we’ll change it around for you. But yeah you can go ahead and you can make changes. I know for me, I like to make, I like to pay all my other bills in the middle of the month and then I pay you know, the major bills at the beginning of the month. – Right. – So just spread it around. – You know and thinking also about like staying on top of all of that stuff. One of the things that’s really important I think if you have a credit card is to have some sort of
credit monitoring service. – Oh my gosh. – You know like I was telling, I was telling y’all earlier about how I, you know something just popped up on my credit card bill that was like, this is, I did not spend this money and if I wasn’t paying attention to it, then it would’ve never,
it would’ve been an issue. And so I think that like you know, the more technology is
a part of your life, the more you should be really, you should actually really pay attention to that because even the big banks and big companies all have data breaches. So you don’t have to lose your wallet for your information to be compromised. It’s compromised because you’ve shared it with someone. And so part of being
responsible financially is also really being responsible for your cyber health and you know and a lot of credit cards and a lot of services will offer you credit monitoring for free. So you don’t have to feel that that’s something that it costs on top of what you’re doing,
it’s pretty cheap to get. And I think that it’s
a good way to implement a system for yourself where you are watching your financial
health at all times. – Yes I definitely manage my credit and I wasn’t, I was
only proactive about it when something happened to me. – Can I ask y’all a question of something that I, I have credit cards and I’m happy with how
I use my credit cards but I have to say I’m a little bit ashamed that I don’t quite
understand interest rates. So like for me I’m always you know, when I get a credit
card, I never think like oh, the interest for
this is 30% versus 20%. I just know that because,
because of the way that I live, I just pay it off. – [Tonya] That’s really
high interest by the way. – Yeah. – Right but that’s what I’m talking about. I never understand that. So it’s not a point of
consideration that I have and I’m just wondering like do you, can you explain that to me? Like what is, what should I be thinking about when I’m opening a new credit card with the APR situation? – So interest is essentially the money they’re charging you to use the card. It’s like nothing in life is free and that’s how they’re making their money. So whenever they lend you money, they’re charging them, charging you a percentage on top of that that you are responsible for paying and also with the money
that they lend to you. – Unless you pay it off. – And unless you pay it off or unless it’s a 0% interest rate
card, which those do exist. And so when you’re looking for a card, the first thing you wanna look for is a card that comes with 0% interest. A lot of times it’s a promotional. – It starts off. – Opportunity yes, it’s like
a 12 to 18 month period. – I don’t know like it’s gonna be $495 if you keep this card. – Yeah, well then that’s the annual fee and then they’ll tack on you know, their interest rate,
which is like you know, 27% sometimes or 18%, credit card interest rate is just higher. Our credit card interest rates are higher because the balances tend to be smaller. So but I have seen some auto loans with credit card interest rates but most of the time auto loans are around zero to three,
zero to 8% interest rate. But that’s just because it’s a larger amount that you’re borrowing so they’re gonna make more money over the time of that loan. So to think about is interest is the money that you pay to borrow debt. – And when you have better credit, you get a lower interest rate usually. – Which doesn’t seem like
it makes sense right? Like the better your credit is but I guess it’s an incentive for people who have good credit
to utilize the services. – It’s also because they trust you. – Yeah. They feel more confident that you’ll be able to pay this back and pay it on time. – Exactly. – Just a reward for you
having done the right. (laughs) – Yeah but interest is you know, as long as you pay your
bill off every month, then you can avoid that interest. But I think that a lot of people have anxiety when it comes to debt. And I was really interested to find out from you guys, what are some of the things that you learned about debt or heard about debt growing up? – I thought that all debt was bad and I think that it’s, it’s a very immigrant kind of way to be you know, it’s like you don’t
borrow money from people, you just, you don’t need debt. But that’s not how America works in fact. – [Tonya] No it’s not. – In fact I didn’t get my first credit card until I was almost 30. And I have to say that that really hurt me in the long run right, because I had to establish my credit, I had to and I’m somebody who
travels a lot for example and I didn’t realize that I was always like having to pay the, you know, like I didn’t have a
card to like hold my room and so I would always have to like leave the entire, like to rent
a car, to do whatever and you know it’s like if they do that on a debit card for example, you don’t see that money for like weeks right? Because they have debited the whole thing from your account. – Which dings a lot of people. – Right. And sometimes it’s a hole too when you get a room and you have a debit card and they hold that money and then now you don’t have access to your own money. – [Tonya] While you’re on vacation. – So it’s just you know and I think that psychologically is really hard for me
is I have a hard time like carrying debt, it’s why I pay my credit card off every month. But it’s also because I haven’t had to use my credit card to do any kind of investment right, I was like, I’m using it to pay for
the things that I need and get the perks that I want for the cards that I have. So the money is always, the money is always allocated. Even if I do a big purchase, I usually will transfer it immediately. I pay my credit card off multiple times in the month because I just don’t like carrying the balance. But I think that in the
long, like that was, it was not a good way of thinking because it costs you a
lot not to participate in the credit card economy.
– Yes it does. – You know and so I’m somebody who, you know, I’m like now I’m like I’m reasonably financially healthy but I’ve had to play a lot of catch up. And if I had known that
earlier in my twenties, I would’ve made different decisions right. And so it’s, I just think that it’s, you have to really weigh your own like bias against actually the reality of what the financial market is. – Well I grew up getting credit cards as soon as I was in college. (laughs) As a freshman I signed up for two credit cards cause you know, they are on campus like. – Giving you a pizza and a T-shirt. – Here’s T-shirt right,
here’s a water bottle. (laughs) – Yeah but I did not fall for that. (laughs) – Well I fell for it and I think my whole life growing up, my mom, she uses credit
cards all the time. Like her credit card bills are crazy and she’s the type of person who will pay the minimum for ever and
still keep charging things up and not open a bill when it comes. And so there would be a bunch of unopened bills in the drawer in the kitchen cause she just knew I’m not opening this. So I think I fell into that habit when I was in college of running up my credit cards to the limit. I think the limit was
$600 but I didn’t have it. – But we started out with
those micro limits, yeah. – I didn’t have it cause
you know it was college and I had two credit cards. I remember I went to the mall when I got one of them and I bought like a brand new coat and I just maxed it out
like right away immediately. – The first day. – Yeah immediately okay. – Wow. – And so that’s been my relationship with credit cards so it’s taken me a while like I’ve always been in debt, graduated from college in debt, I remember my grandfather
gave me like a check and I had to use all of it to pay off but my credit card debt but it was a good feeling to be able to do that even though I didn’t have any fun money to play with after that, at least I paid off those credit cards but then my credit was ruined for a period of time. So it took a while for me
to re-establish my credit and I remember when I went to get my car and I didn’t need anybody
to co-sign it for me, that was so exciting that I have finally gotten myself into a space where I don’t need to ask somebody to co-sign for a car for me, I can do it on my own. – Yeah, this feels like
it’s freeing, isn’t it? And I think that’s one of the things about you know, having bad credit or having debt is it can complicate your life if you’re not in a good place with it. That’s where a lot of
the anxiety comes from I mean, that’s why I
started my Fab finance was because I made so many bad mistakes, I was like you Angela,
but I don’t even think I got a free shirt when I
got my first credit card. I was like just here,
ruin my credit for free. Like just don’t give me anything. – Oh man you didn’t get a shirt? – I didn’t get a shirt,
I didn’t get pizza, I didn’t get like a Frisbee, nothing. But I was going to Miami right before I got my credit card in the mail so I bought things when I was in Miami and you can’t tell 18
year old Tonya nothing who’s on South beach buying
things through her credit cards. – [Angela] Absolutely not. – Full adult with no job to
pay this credit card off. But I learned from that and my parents always spoke about credit, but they didn’t talk about how credit worked other than paying
your bills on time. So for me I didn’t understand keeping my utilization low, that I needed to keep my limits low or my balance low so that I could maintain good credit. But it was, I remember I learned a valuable lesson about credit when I went to go finance my first car and my father thought that he was gonna have to co-sign with
me because by this time I had paid off those
credit cards and everything and he thought he was
gonna have to co-sign and they were like
actually, your interest rate is better if your father
is not on the loan. – Wow I’m doing better than you dad. – I was like and I think that was a wake up call for my father though,
because now my dad pays everything off, like his car is paid off, his motorcycles are paid off, he’s about to buy a boat, he’s like nope. So now he pays everything off and I think it was a thing. – That’s good, you taught him. – Like my daughter, she
was better off without me. It’s not supposed to work like that. – But you know also the thing I’m like, I love that we talk about this stuff so much because the problem with all of these things are that people feel so much shame right? Like you just, it’s so
personal, it’s so shameful and then you get caught
up in these situations where you’re like oh, I got to rent an apartment with my
partner, or I need a car and my dad is there. And then so the, your financial situation always comes up in a stressful moment whereas like if actually you have a way to talk about it
and you’re not ashamed and you’re not embarrassed because everybody will have money problems. If you have $600 or $6 million is like money problems can come
knocking at your door and you just need good financial hygiene. And part of that is
not, is really releasing the shame of talking about it. And I really hope that that’s what we’re doing by having
all these conversations. – We’re talking a lot about getting into debt in this week’s episode and we do hope that sharing
our perspective helps. But this podcast isn’t the only resource, there’s nearly 19000 State Farm agents across the US who are waiting to help protect what’s important to you and guide you through
major life milestones. For this week’s ask an agent segment, we reached out to Zanetta Harris Glover who has an office in Newark, New Jersey and got some practical advice
before dealing with debt. – Hey ladies, I hear all the time from clients who are stressed out about debt. Here are some of my favorite strategies for tackling debt. Make sure you pay more than the minimum payments each month and on time. These are some of the most important factors that affect your credit impacting 35% of your credit score. Pull your credit report
to check for accuracy. Think of your credit score as your final GPA in school
then your credit report is the transcript of all your classes. Make sure everything on
the report is correct. Removing incorrect information could cause a quick bump up in your score. Look at your credit report to pinpoint where your setbacks
happen in the first place. High credit card
balances, missed payments, too many open accounts,
turn this knowledge of what happened in your past to improve your financial actions in the future. Also check out to get a free copy of your report. Keep in mind there are a number of online resources that will provide you with your score for free. For more tips on managing, consolidating and controlling your debt, talk to your local State Farm agent
or visit [email protected] – For the second half of today’s episode, we’re joined by Dasarte Yarnway, the founder of the
Berknell financial group. Hello Dasarte. – Hey. – Hi. – He’s the author of “Pay Me In Equity” a millennial guide to
understanding equity compensation and young money for proven actions to design your wealth while you still can. He’s also the host of
the Young Money podcast. Welcome to the show Dasarte. – Thank you for having me. – [Tonya] We’re so
excited to have you here. – I’m excited to be here. – We’re so excited to have you here, I really wanna talk
with you about you know, the big picture versus the little picture a little bit because I think that some people get really, equity is a word that not everybody understands and so I’m just wondering if you can talk about you know, what are some of the strategies for focusing
on the big picture? Something like saving for a home, not getting sidetracked by you know, we’re saying it’s smaller stuff, but it’s still the day to day that people have to worry about. – Right well you know that we have a world full of distractions right? So it’s easy to get off track. I think that what we do is
we try to focus on big wins and small wins right? So there’s gonna be a big
one, which is the home that you wanna buy,
but there’s milestones, kind of like check points that you make, should make along the way
that are small victories. That’s when you can celebrate and say hey, I saved $10000
or $5000 that’s a small win. Or I paid down that credit
card, that’s a small win and these will help you realize the big win at the end of the day. – So when you celebrate, like I say $10000 is it okay to spend 1000? – You have to reward yourself right? – I’m kidding. (laughs) – You have to reward yourself, I think that’s healthy right? But it’s important to have those spaces in place where you can
say I did this right, I have this momentum
and I can keep it going. – I know and I also feel like, just like when you have a diet or you’re
on a fitness regimen, is it important to allow yourself to have a little bit of
cheating every now and then? – Absolutely. I think that you have to
build that in though right? So you have a budget, you can’t be too stringent or too tight, like use the diet for an example right? You’re counting calories and you’re doing all of this and you want that donut,
like it’s okay to build in. – I had two yesterday. I had two donuts, it started out as half and it ended up as two. – Right it’s okay though to build that in to say like today is my
designated cheat day, I’m gonna buy something for myself at the end of this quarter right? I think if you don’t do that,
you’re destined for failure. – Or you’re gonna chew this doughnut and spit it out? – Oh no no. It is going on the journey okay. (laughs) But yeah and I think that also you know, Dasarte, your book, “Pay Me In Equity” talks about you know, debt. So even like big debt versus small debt. How do you feel about that? – I feel, see this is the thing about our community right? We think that debt free
means that you’re wealthy and that’s a lie. – [Tonya] Okay. – Wow say that again. – Right debt free does not mean wealthy, sometimes you have to accumulate debt to realize what I call, what we call multi generational wealth. There is no way that many people are paying for houses in cash right? You’re not doing that. Sometimes you might have to accumulate business debt right? To start that business which can pay you 10 X versus what your employer can pay and Tonya you’re a good
example of that right? So it’s like. – Don’t tell my business it’s out there. (laughs) – Like you’ve built your business right and you’ve done it really well. So I think that that’s
something that you have to do. Debt free does not mean wealthy and in some circumstances you have to accumulate some debt
to get to the next level. – You know also like we were talking about a little earlier, you just made me think a lot about the psychology behind spending and just how so much of all the spending that we do is done subconsciously. I think about you know, how some of these like retailers online just follow you. – Right. – And next thing you know you’re getting served an ad and so much of retailers just
preying on your impulses. And so you know, I think that thinking about it as something you have to be really mindful of, do I
actually need to buy this? If I go, you know, if I just take a break and I go you know, sometimes I do this, I’m like I just go for a walk and I was like if I come
back after the walk, do I still need to pay for the thing? And just you know, diffusing that tension. – And when there’s a sale sometimes too you’re like oh my gosh, it’s on sale now so I have to get it cause
it won’t be on sale anymore. – That’s a spending trigger though, that time limitation making you think that if you don’t do it now you won’t ever get this opportunity. That is a spending trigger. – Yeah it just feels
like a lot of pressure. Do you do some, like how do you feel about like mindful you know
and emotional trauma. – Yeah and I think that’s where you have that wiggle room or whatever your budget is for it right? We think about you
shopping for an example, a jeans costs $100 right? It’s 30% off, it’s $70. We think we just saved $30. – I got a bargain. – You got a bargain, you
got it for the low right? When essentially it’s still $70 saved. So I feel like there’s no
kind of cheap for that. You have to make sure that
you’re building that in and saying this is what
I’m gonna spend on myself. And I think that’s the only real way. – And sometimes I ask myself that they’re giving me these for $70 how much did they pay for them? You know like, they
probably paid $10 for these and I’m paying the mark
up but in the same sense, you know it is what it is. I’m curious to you guys,
what’s the last impulse buy? – Oh, I just bought a
couch a few minutes ago. – Yeah you literally just
bought a couch today. – You did just buy a couch but is that an impulse buy? Don’t you need it? – [Tonya] She had a couch. – Okay nevermind. (laughs) Never mind, never mind. – All right in fairness yes, you’re right. But okay, so my old couch, I’ve had for a long time since my
old apartment you know, I bought a house, I
took the couch with me. So I’ve probably had this couch like seven or eight years. – You got the use of that couch. – And I’ve been wanting to get a new couch and I keep on putting it off like, oh I’m not gonna get it now and there was a sale right now, so I did get it on sale but it was the couch I wanted on sale and we were just sitting
here waiting for you so I just bought it. (laughs) – [Tonya] So you triggered that spending? – I’m sorry. – But I think you know it was something that I felt like I needed
and it’s for my house and I spend a lot of time in my home and I feel like I’ve you know, had eight years with the former couch, it’s time to move on. – Absolutely. – I bought a dress that
I don’t need right now. – You said you weren’t shopping anymore? – I know, that’s why I’m telling you it’s an impulse buy. It was bad. I’m technically on a clothes shopping fast and I saw this dress and I was like, you know what, I have the perfect party to wear that to in many months. – [Tonya] We’re not judging you. – And so I you know,
I’m not judging myself but also I had set a goal that I was not going to spend money on clothes and the way that I
rationalize it to myself, I was like this is how
I know I have a problem. I made all, you know, it was circuitous and it was so fast, I was like, here’s my credit card number and I just bought it immediately. So you know, look out for
those Instagrams in October. – Can’t wait. (laughs) What about you Tonya? – The last impulse. – Don’t leave us out here hanging. – Yeah, I’m gonna come clean. The last impulse buy I mean I feel like I make them regularly but the one that stands out was, I’m really into Fanny packs right now. – I love the Fanny pack. – Yeah cause as a mom like I just need everything right here on the hip. – I love it. And you have the baby and that’s a good rationalization. – Yeah. – So you don’t have to carry. – Oh it’s part of my mom wardrobe now, it’s like my lifestyle. So you know, I had a Fanny pack from a discount retailer that
I was going hard with and I was like, you know what Tonya you use this every single day, you can get yourself a nicer Fanny pack. So I bought a designer Fanny pack when I was at a store,
it was on clearance. – Okay. – That was kind of impulsive
cause it’s on clearance. That was, yeah. – What about you Dasarte,
don’t just act like is us. – So I’ve been traveling a lot lately and I love food. So we were in Manhattan earlier yesterday and it was like there’s
one meal that was like they don’t tell you the price because it has all the shrimp and everything you know what I mean, we came to get this but we ended up getting that meal right and those are my impulse spends. – I have a question for you Dasarte, cause I know that you typically work with you know, high net worth
individuals and so forth. Do you feel that debt is something that is a problem across
all income brackets or do you find that you
know, it affects one income bracket more than the others? – No, I don’t think that keeping up with the Joneses is reserved for just the people that don’t have it. I think that it’s a problem
that everybody has right? The more money that you
have, the more things you have access to right. And when you talk about
like mental fitness, we are compensating for things that we might not have got when
you get the money right. So then you’re dealing with those things like I never got this when I was a child, so I wanna get all of this now right. – My thing is hotel rooms, I realized that that is my thing. So growing up my parents would, my parents are extremely frugal in certain regards, like certain things cause they don’t yeah, so but growing up we would stay in like these
little mom and pop ends and so forth when we would
go on family vacations and so my thing is like
staying in nice accommodations. – Right I have to also. – Yeah that’s like my one thing and I’m just realizing
part of it comes from as a child we did not stay
in accommodations like that. – But you’re good because you know your triggers right? A lot of people don’t know
why they do what they do and especially as it pertains to money. So I think it’s important for you to identify those so you can always stay ahead of those or
build up in your plan. – It’s hard sometimes when you’re hanging out with certain people, like I’m going on a vacation. (laughs) – Tell him where you’re doing it. (laughs) – And so. – Just tell him where, not with who. But you can tell him where. – I’m going to Saint Tropez. – There you go. – And for the first time ever so that’s already a costly trip but when you land right in Nice, you can either take a car or I think a train or something or a helicopter. My friends wanna take the helicopter from Nice to Saint Tropez. – It’s an experience. – But it’s so expensive. It’s like $700 round trip or something for a 25 minute helicopter ride. And I’m like, uhm that’s a lot of money. – That’s a, you know, that was interesting because one of my, one of my good friends who is recently passed, that’s one of the things we were talking about when it came to his finances was like he is rich by association and so in his own income he doesn’t, he wasn’t doing bad but he wasn’t doing as well as the people he was around. But he was expected to play at their level and that was causing a lot of financial issues for him because like I can’t afford to do these things that come easy to them, but I play in their league and so I kind of, if I want
to remain in their league and remain around them, I
have to come to the table. – But you also know if somebody is your friend by how you talk to
them about money right? Like something like you know, I think we all remember times where we couldn’t buy the things that we wanted and now you know that you have access. But I think that if you are not able to have real conversations with even your friends about that stuff and say, I’m saving for something else, I can’t afford it or I don’t make as much money as you, it tells you more about that relationship. But I also think that you know, like you were talking about triggers, I think that it’s good to also, you need to have a criteria for yourself or what you’re not willing to scrimp on. And for me travel is that you know, it doesn’t need to be a five star hotel all the time but I know that I need to feel safe, I need to feel happy and I find other ways
to compensate for it. I was like that’s why all my credit cards are credit cards that will give you points towards travel. That’s why you know,
I will save other ways to make sure that that happens. But I think it’s good to know ahead of time instead of in a panic mode. We’re gonna be doing something new in season five. – [Tonya] Okay. – We know that thinking about all of these topics like finance, it can be so stressful
for a lot of people, including me, especially me probably, but it doesn’t have to be. So we’re going to have a money meditation on every episode and for today’s money meditation, we want to take a moment to
envision being debt free. Just think about it. – Okay. – Picture a not so distant future where the collection
notices, the phone calls, the nagging reminders, they’re no longer part of your life, your budgeting, saving and discipline has really paid off. I’m thinking about that for myself, but for the rest of you, what’s your dream way to celebrate becoming debt free for the debt that you need to be free of? Because as we said, not
all debt is bad debt. – Right is a mortgage bad debt? No. – That’s great debt. – I have a couple. (laughs) – I feel like my debt free celebration will be a trip. I feel like most of my
celebrations are a trip. I think that’s how I reward myself is by going on some type of trip, going somewhere I’ve always wanted to go and experience cause I’m more of an experiences over things person. And when I created debt
from my Fab finance, I had to forsake a lot of experiences because I had to pay off things. So it’s just a reminder of myself, like what really matters to you and its experiences. – [Aminatou] I love that. – For me I would say I really, really wanna buy a vacation home. So when I get to the, what? – I want Angela’s, you
know I trade mine in for a vacation home. (laughs) – I really do but I want
it to make me money also and so I’ve been talking to a couple of my friends about trying to partner up and find something so that we have a place we can go to whenever we want, but also we can rent it
out to make some money and put it on one of those sites so that people can go and stay there and we cash in and at the same time. – I’m actually willing
put it on that actually. – Okay well let’s talk about it. – It’s in the line. (laughs) It’s in the line. – I love that we’re talking
about shedding debt, you guys are just bringing on more debt. (laughs) – Dasarte said. – But the good kind, but good kind. – Right. – You know, I didn’t have any debt except for medical debt
because I got cancer and I had to put a lot of
expenses on the credit card and I was really lucky that
I could afford to do it. But I remember the day that I finally paid everything off I was like, the MRI is gone, everything is gone and I’m healthy now and I decided to start a savings account for
experiences that I wanna have. I was like this money that
I used to pay into this, it’s still money that I can move around for other things. And so once a year I wanna go on a trip, a solo trip that is a trip
I’ve been dreaming of. And so for me that’s just been really, really helpful. – Yey. – Awesome. I don’t have any debt but I think the celebration for me is gonna be buying a duplex or triplex in the
Bay area sometime next year. So that’s what we were planning for. But I also think that’s, it’s important to pay it forward so
I’m gonna open accounts for my nieces and nephews so they can have the opportunity to do something like that when they mature right, so I think that’s gonna be another
form of my celebration. – But that’s great. Well of course we wanna
hear what you came up with. So let us know your
response to this week’s brand new money meditation
by posting on social media. You know what that hashtag is, it’s live color full. That’s a live color full with two L’s at the end of full, so live color full. All right, that double L at the end. – And guys that’s it for the week. So make sure you check back next week, we’ll be getting into the things you should know before getting married. Yeah. – Talk about it. (laughs) It’s a change and special thanks to our
guest, Dasarte Yarnway for joining us. – Thank you for having me. – Thank you Dasarte. Now please let our listeners know where they can find you. – They can find us at and they can follow me on all social media at Dasarte Yarnway. – Spell Berknell. – B -E- R-K-N-E-L-L and
my name D-A-S-A-R-T-E Yarnway as it sounds. – Thank you guys for joining us. (soft instrumental music)

Paul Whisler

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