Episode Transcript
[00:00:00] Speaker A: Welcome to Guilty of Savings. I am Divya Gill, cpa. And today we are going to break down simple ways to save money and make smarter financial decisions. You are watching now Media Television.
Hello. Welcome to Guilty of Savings. I am Divya Gill and today I want to talk about money in a way that feels a little different.
Not just as numbers on the spreadsheet, not just as income, debt, taxes and expenses. Today I want to talk about money as financial health.
Because just like physical health, financial health gives us warning signs. Stress, debt, overspending, lack of protection, fear around money, and not knowing where the money is going can all be symptoms of a bigger issue.
And if we ignore these symptoms, the pain usually grows.
My guest today is Dr. Vandila Bhatti, the financial healer, CEO of the Financial Cures LLC and the creator of Financial Cures System.
She's the best selling author, entrepreneur, business strategist, international speaker, and the producer and host of financial cures with Dr. Wendy Labatt. Her work helps entrepreneurs, executives and individuals take control of their finances, prevent financial ruin, build legacy, create generational wealth, and live the life they desire. So, Dr. Wendy welcome to Guilty of Savings.
[00:01:29] Speaker B: Thank you for having me. I appreciate the opportunity.
[00:01:31] Speaker A: Absolutely. I will open the episode by framing financial health as something viewers can examine, understand and improve.
So our goal here is to help the audience see the money problems that are not just about the math. They're often connected to habits, decisions, protection, gaps and mindset. So, Dr. Wendy Labat, would you help us now with this session diagnose the financial pain and help people move towards mastery?
Leading with our first question here. When you say people need to diagnose their financial health, what should they look at first?
[00:02:12] Speaker B: Well, I'd like to make some distinguish between physical health, mental health and even social health has been a focus when it comes to finances, but very little emphasis on financial health. But there's a difference between financial literacy and financial health. And people confuse the truth. Financial literacy is what you know and financial health is the result of what you do or don't do, your finances. So as long you know, because people can say, okay, I'm financially literate, but they can have poor, even fatal financial help. So it's important that they see the difference between the two and recognize that when we talk about diagnosing your financial health, we got to look at what I call the financial vital signs. You know, your income, your expenses, your spending, which a lot of people ignore, the debt which they confuse. And sometime with expenses and, you know, your cash flow, those are factors that are to your financial health.
[00:03:16] Speaker A: I like how you distinguish between financial health, financial literacy, and you emphasize that there's income, there's expenses, and then there's spending. Which takes us right into the next question, that what are the most common symptoms of poor financial health?
[00:03:32] Speaker B: That people tend to ignore spending, excessive spending. They, you know, in this cashless society, you know, it's easy to tap a card or insert a card because you're not looking at actual dollars that are going out until you get your statement and you see that you spend a fortune on coffee or something. And people tend to just not be conscious of what they're actually spending. But they're spending is where you find the money to pay for things you think you can't afford. You know, when money gets tight, you need to look at your spending as one of the first areas to evaluate because there, you know, you have to distinguish between your needs and your wants. Are you spending more on wants than you? And you can't, you know, you're not satisfying your needs financially, if that's the case, you know, that's where you find it. That's where you find the, you know, the gap.
[00:04:25] Speaker A: Right. I'm sure you have heard it often, but I had to spend. I had no choice because I needed or wanted that. So how can you tell, or what do you tell your clients when it comes to differentiating between a temporary money challenge that requires spending versus a deeper financial pattern?
[00:04:44] Speaker B: Well, like I said, I make sure that they understand or distinguish the difference between a want and a need.
And then two, they have to establish a level of discipline, you know, and I define discipline of choosing what you want more over what you want now.
You know, if you go in the store and you see a purse or outfit you like and you want to buy it, is this something you want? Is that taking away from what you want more? You know, maybe you can afford it, but is that something you need to actually spend the money on? So you have to look at, you know, what you want more, and if you got a plan and a strategy, you need to stick with that. And then if you're going there spending money on, you know, an outfit that you really don't need, most of the time you don't need it. Is that impacting, you know, what you want more? So, you know, it's a mindset transformation. You know, I tell my clients, take the word can't out of your vocabulary. You know, it's not about, I can't afford it. I can't do that. But ask Yourself. How can I? And if you decide how you can, then you need to stick with that strategy.
[00:05:51] Speaker A: You know, I like the distinction you make between training and retraining your brain and your spending habits when it comes to a want versus a need.
And, you know, often people will wait a lot longer when there is a financial pain or some kind of financial challenge before they come and ask for help. Why do you think that's the case?
[00:06:13] Speaker B: Well, I think because they don't want to face the reality. You know, a lot of people, you know, don't want to. They have this picture in their head of what their finances are looking like, but if they put the pen to the paper, it's a whole different scenario. And I don't think they realize, you know, what's going on until it. The pain really hits. You know, they don't realize that they can't, you know, they're spending too much or they're not making enough or not managing properly until they get to a point where, you know, some devastating incident occurs and it, you know, ruins them financially, or even if they find that they're paying their bills late, you know, they wait until something happens, a real pain point hits, and then they start, you know, waking up and say, oh, I got to do something.
[00:07:01] Speaker A: Yeah, no, absolutely. I do agree with that, because often in our CPA practice, we see clients coming in and out of shame or out of the guilt or out of not knowing where to go, they will not say anything or not do anything until the damage has been done. And at times, it can be hard to come back from, or it might take a little longer to come back from. Which takes me into my next question. That if you were to recommend one simple financial checkup for every person or business owner, what would you recommend that they should do on a regular basis?
[00:07:36] Speaker B: One, check their spending.
Two, check their cash flow. That means, you know, is your income matching with your, you know, expenses and debt? You know, what you make, does it cover it, what you have to pay out? And a lot of folks don't really, you know, look at that. They just say, okay, paycheck in, money goes out. And then, you know, the main thing I say is that spending. Because when you spend money, things that you really on things you really don't need, that's money that could be utilized somewhere else, you know, to reduce debt. And then their expenses, you know, check your expenses, are they going up or are there fees added in that you weren't aware of because you just get it automatically drafted out. And then when you, you know, see this 20 or $30 more a month than it usually is. You know, you need to know what that's for and it could be something that you don't have to pay for it that you can challenge. So, you know, you need to monitor those kind of things.
[00:08:31] Speaker A: You know, Dr. Menzi, the key point you make here is income versus cash flow. And how many conversations have I had with clients that just because you got the money, you spent it. How much are you left with? And then they go, what do you mean? Well, you have income and then you have the cash flow. What are you left with after paying all your expenses out and all your loans or credit card bills and all else out?
So that is a real good recommendation and thank you for that. And this is such an important place to begin because financial healing starts with honesty. We cannot fix what we refuse to examine. When we understand the symptoms, we can start choosing and finally choose well. We can finally start choosing the right cure. After the break, I want to talk about the financial pressures so many people are failing, especially these days right now in the world we live in.
Inflation, debt, spending habits and the emotional weight of money stress. We'll be right back. We'll be right back with more tips to help you save money, reduce taxes and make your finances work for you. Stay tuned. And we are back. I am Divya Gill, CPA and your host of Guilty of Savings on NOW Media Television. Let's keep saving. Welcome back to Guilty of Savings. Stay connected to the show and every NOW Media TV favorite, live or on demand, anytime you like. Download the free Now Media TV app on Roku or iOS and unlock nonstop bilingual programming in English and Spanish on the move. Catch the podcast version at NowMedia TV. I'm here with Dr. Wendy Labat, the financial healer, CEO of the Financial Cures LLC and creator of the Financial Cures system.
Before the break, we talked about diagnosing financial health and recognizing the warning signs before they become a crisis.
Now I want to get into the pain points many people are carrying every day, especially in the world we live in. Dr.
Wendy with the inflation, debt, spending, the patterns, the stress of feeling like money is controlling the decisions.
And I would like to move this conversation into the real world, pressures that viewers will sure relate to today.
The segment, the goal here is to address the inflation, the debt, the income challenges, the spending addictions and financial overwhelm in a clear and a compassionate way and to help viewers to be seen, feel seen, and also show them that there are practical ways towards control so Dr. Wendy, how is inflation changing the way people are experiencing financial pressure, especially in the world we are living in today?
[00:11:10] Speaker B: Well, I think inflation is impacting everyone, mainly because the prices are high. No matter, you know, who you are, what you do, you still got to buy gas, you still got to have food, you still got to use electricity. And all those, you know, just stationary or staples are going up. And I mean, you can physically, it hurt my heart. You know, my car uses premium gas.
And when I went to the gas station and I saw, you know, 4.95 and like, what the heck. But you know, when I'm used to seeing maybe 390 something, but, you know, it's the reality of things and, and you know, it just hurts to know that it's costing me like 20 or $30 more to fill up my tank than it did before. It's already expensive before, but, you know, then you go in the store and things that you usually buy are almost twice as much, you know, especially groceries. And I really feel for folks that are struggling financially because, you know, you gotta, they have to make more choices. You know, my choice is, you know, do I want to buy it or not? But their choices are, which do I buy? Do I buy milk or do I buy bread? And it's unfortunate because, you know, it's, it's difficult for a lot of folks, but I do have a solution.
And everywhere you go, there are loyalty programs. I don't care if you go into fast food, grocery store, gas station or wherever, sign up for those loyalty programs. I just went out to Denver and I, you know, if I'm going to fly more than two hours, I'm going first class. And you know, because I believe in my, you know, living the VIP life using points, rewards and miles. I got my first class ticket and I only paid a $12 fee to get it and use my points and the ticket. If I didn't use that, it would have cost me $2,500 round trip. But, you know, it worked out. And I recommend, because a lot of people are like, oh, I don't want to be, but now all you have to do is put your phone number in where before you had to have your card and swipe and all that. Now put your phone number in. You'll be surprised. You can get, you know, a dollar or two dollars off a gallon of gas or even five cent off is more than the other. So I recommend people take advantage of that because otherwise you're leaving money on the table.
[00:13:25] Speaker A: Yeah, it's all about planning, right? Something I always tell clients because they want to know how do they maximize whatever they are spending. And their question indeed is how do I get some of the cash back? There are cards out there that will give you the cash back. There are.
Like you said, a lot of airlines have all the mileage and every other part they offer that comes with it.
So you know, depending on what applies to you, talk to people who can help you make these decisions and figure out what works the best for you.
But then when we are talking about debt, we often see that phrase of obese debt. What does that mean and why is it so dangerous?
[00:14:08] Speaker B: Well, what it means is that, you know, the debt is getting bigger and bigger. You know, and I use an example with credit card debt, you know, interest is compounded on that and a lot of people want to pay the minimum amount. You know, if you use your credit card, you should pay the balance out in full. And if you can't pay the most that you can, you know, if you just pay the minimum, you know, that minimum is, you know, not even doing, putting a dent in the debt. And you're gonna, you know, it's gonna get bigger and bigger and bigger. And what could have been a fifteen hundred dollar credit card bill, if you just pay the minimum, it's gonna take you about 10 to 11 years to pay it off. And you're gonna pay twice as much, you know, because you're paying the same amount of interest that you paid for the original purchase and you don't even know what you bought. So that's how your debt gets obese, by paying the minimum. And it's, you know, don't pay late fees. You know, that's another way that your debt becomes obese because you don't pay on time. So they slap, you know, a thirty, fifty dollar late fee. And you don't need to pay that if you're already struggling, you don't need to pay that. You know, try to work it out where you know, a lot of companies will work with you. If you find that you're, you know, your paid the due date is not in line with your cash flow, ask them to change it where you can pay it in a timely fashion and not be hit with late fees. So that's how your debt gets obese even if you're paying.
[00:15:40] Speaker A: That's a good point. You have to manage that too. You just cannot incur that debt. You have to have a plan to pay it down too. And yeah, there are companies that will help you by pushing the due date around and giving you a little extra time depending on your circumstances that we hear clients get to.
So then I'm sure you often see this. How do you see your clients getting affected by the financial stress when it comes to their day to day decision making?
[00:16:07] Speaker B: Well, I think they, you know, they start stressing. Well, I tell them not to stress because for one, you know, there's something you can do about it and you're stressing about things that you can't do anything about. Now if you can do something about it, do it. But if there's something you can't do about it, then, you know, don't stress about it because it's not going to change, you know, but you got to change the way you look at things. Because you change the way that you look at things. The things you look at change. And you have to know that you need to do your part. You know, we've got a strategy, you got to stick to the strategy. But we also have to monitor it to see if it's working. So if we're doing something and it's not working, we need to make some adjustments and until it is working. But, you know, don't stress, you know, and if you're stressing, it's because you're not doing your part most of the time. You know, if we got a plan and you stick with it, it's going, you're going to see the difference. You know, you're going to, the stress is going to lessen.
So hopefully that'll be the case.
[00:17:06] Speaker A: I would also emphasize it helps to talk to a professional like you in that case, you know, people who are able to help talk through that and maybe before you even get to the stress part, you know, look into the warning signs that might be leading onto you, onto that path. Which would take me to my next question. What are the warning signs that spending has moved from a habit into a real financial illness?
[00:17:33] Speaker B: Well, spending, you know, is an addiction for some people. You know, I even had a little spending addiction for a minute. You know, if it was clearance, I was buying it, you know, but you just have to, you know, like I said, again, it's your thinking. You have to make conscious decisions about what you're going to buy and what you're not going to buy. You know, what do you need and what you can do without. So it's just all about mindset, it's all about the discipline and it's all about, you know, doing what you're supposed to do.
So, you know, if you don't. If you're not changing the way you think, then you're going to do the same thing over what they call insanity. Doing the same thing, expecting a different result. You can't do that. You know, you have to make changes. You have to take action, you know, because faith without works is dead. You can know everything and. But if you don't do anything, you know, what good is it? Yeah.
[00:18:21] Speaker A: What I hear here are the buzzwords. Changing your perspective, changing your habit, knowing the frame where you're going before you kind of fall off the cliff and asking for the directions and beating people and experts like you for that direction.
So what do you recommend people do when somebody feels overwhelmed by bills, rising costs, and all that's going around us with the debt? What should they do first?
[00:18:47] Speaker B: Well, like I said, for one, don't panic because, you know, there are solutions out there and there are people that can help you and seek out someone you know. Not saying you have to tell your business to everybody, but I'm sure you may have a trusted person that you could go to and say, look, I'm in this situation. Who do you recommend that I talk to, you know, without even getting into the details, you know, and. But seek out help because, you know, that's the only way. If you.
[00:19:17] Speaker A: If you.
[00:19:17] Speaker B: Whenever you've been doing it and working, you need help. So get some help.
[00:19:22] Speaker A: And we all do at one point or the other. Is the key word help, right? Asking for help, asking for that direction. And I appreciate that because so many people feel the shame around money, shame that they cannot come up with solutions that offer clarity. But then if you get the help, you'll get the clarity. And that clarity will help you come up with a solution. When we name the problem correctly, we can stop reacting emotionally and start responding strategically.
Coming up next, I want to talk about mindset because Dr. Wendy teaches that when we think right, speak right and do right, things begin to flow differently. We'll be right back. We'll be right back with more tips to help you save money, reduce taxes, and make your finances work for you. Stay tuned. And we are back. I am Divya Gill, CPA and your host of Guilty of Savings on NOW Media Television. Let's keep saving. Welcome back to Guilty of Saving. Greetings. I am Divya Gill, and today I'm speaking with Dr. Wendy Labatt, the financial healer, CEO of the Financial Cures LLC, about financial health, financial pain, and the steps people can take to regain control.
Now I want to go deeper into something that affects every financial decision, mindset.
So the goal here is to create a connection between beliefs and financial behavior. Dr. Wendy Labat can explain how mindset shapes earning, spending, saving, debt management, and at the end, confidence.
The purpose here is to help our viewers understand that financial mastery is not just about the information, it's also about the transformation. So, Dr. Wendy, you say, when you think right, speak right, and do right, things will flow right. What does that mean financially?
[00:21:16] Speaker B: Well, it means when you think right, we have the right mindset and don't have a mindset of lack. You know, when you say I can't, that means you're shutting everything down. There's no possibility. You don't. You don't even try to do it. But if you think, how can I? It opens up a realm of possibilities where, you know, you start thinking outside the box and you start recognizing, you know, various ways of doing things.
And when you speak right, you're speaking, you know, into the atmosphere that you can do it. But if you're speaking, you know, negatively, you can't. Then you not, like I said, it's shutting down. People aren't going to approach you about even helping you because you know, your attitude is wrong.
And then when you do right, you got to put action to your thoughts and your words. And then when I say things will flow right, I'm not just talking about money. I'm talking about your discernment, you know, to be able to decide, you know, or recognize what's good and what's going to help you. Your relationships, you know, opportunity, those start flowing right. You know, that all comes in alignment so that, you know, when you try to do whatever it is you want to do or achieve, whatever you want to achieve or buy, whatever you want to buy, everything kind of flows right? So it's not just about the money, because, you know, sometimes you don't even need money. It's just having a relationship that will put you where you need to be.
[00:22:41] Speaker A: Absolutely. What I'm hearing here is that realization, bringing that right perspective to the table. Because don't they say, like, 80% of the work is done if you bring the right mindset and the right perspective to the table? Which then brings me to my next question, that how does mindset shape the way people learn, spend, save, and invest from what you see in your real life?
[00:23:04] Speaker B: Well, the mindset determines, like they say, your attitude determines your altitude. And that's true, because if you got a negative attitude and, you know, just Debbie Downer, you know, no, for one, nobody's Gonna want to help you because they don't like your attitude. And for two, you know, you're not gonna be able to recognize that something's for you. It's just like, I don't know if you've heard the.
The little saying where a guy was, you know, stranded in. In the ocean because a shipwreck or something, then he was praying for God to send him, you know, to rescue him. And the God sent him someone, a helicopter. And he said, no, I on God. And someone came with a boat. He's like, no, I'm waiting on that. But, you know, here. All these ways to get rescued. But because of his attitude and his thinking, he just let him go. He stayed out there. So it's, you know, you gotta, you know, like I said, be open. You got to think, right? So you can, you know, have the discernment to understand, you know, what's there to help you, what's there for you. And, you know, and. And don't be afraid to take advantage of it. Don't be afraid to ask for help. You know, so many people are so prideful that, you know, and like I said, embarrassed. They don't want to ask for help. So, you know, you better ask for help. Especially if you're at that point you need to ask for help.
[00:24:22] Speaker A: You need it. Absolutely. Very well said. And it's the fear, too. Fear of moving forward.
Fear of being seen as a person who spent it all, or fear of a person who got themselves in trouble and they don't want to be viewed as such. So, which leads me on to the next point here, that what. What money believes keep people stuck in that survival mode.
[00:24:44] Speaker B: Well, I think they think, I guess maybe it could be generational. Maybe their, you know, parents taught them that, you know, money doesn't grow on trees or, you know, you got to be frugal. You can't, you know, spend this on yourself or you can't buy this. Can't do that. Can't, you know, achieve this. And I guess it's just something that's been ingrained to some, just in some people over their lifetime, and then to just the fear of, you know, stepping outside your comfort zone. You know, a lot of folks figure, okay, if I can't control it or if it's not what I'm used to doing, then, you know, I can't do this. So it's a number of things, you know, just depends on the person that would prevent them. But it's more. More so of just, I guess, upbringing, culture. There are a lot of factors that can play into that.
[00:25:30] Speaker A: And then how can someone change that? How can they begin changing the way they speak about money? From everything I'm hearing here, as well as the financial fees, your future.
[00:25:40] Speaker B: Well, be around people that are where you want to be, you know, kind of talk to them, get their perspective, you know, read and, you know, learn some things and just, you know, expose yourself to what you. Where you want to be, you know, and the folks that you want to be like. And I don't mean mimicking, but I mean, if someone is where you try, strive to be financially, then, you know, if you can't talk to them, you know, look them up, do a little research, you know, just get that perspective and get some exposure about, you know, how they got there, you know, what it takes to get there and what you need to do to get there. So I think just exposing yourself.
[00:26:21] Speaker A: Absolutely.
[00:26:21] Speaker B: To different things.
[00:26:23] Speaker A: Absolutely. It's about your company. Right. It's the company you keep that will make a difference, like they say. And so when you see clients getting to the point and there's the financial confidence, then what does that financial confidence look like when someone is trying to rebuild from their past, the mistakes or any setbacks?
[00:26:45] Speaker B: Well, the confidence looks like them being open to trying new things, open to a different strategy, open to doing what it takes to get get to that next step.
And like I said, in the confidence I like is the fact that they're willing to be assertive. And I don't mean being arrogant, but being assertive and going after what they want and doing the things they need to do to get there.
[00:27:09] Speaker A: And, you know, that is so powerful because once they start seeing that silver lining and thinking about the financial freedom, that doesn't begin just with that bank account. It begins with the mindset, the way we think, the way we speak, like you said, and the way we act with the money. With those pieces aligning, people can stop repeating the same financial patterns and start building a healthier future.
When we come back, I want to bring this into protection legacy and building generational wealth. Because financial healing should not only fix today's pain, but should also protect tomorrow's possibilities. We'll be back. We'll be right back with more tips to help you save money, reduce taxes, and make your finances work for you. Stay tuned. And we are back. I am Divya Gill, CPA and your host of Guilty of Sale on NOW Media Television. Let's keep saving. Welcome back to Guilty of Savings. Stay connected to the show and every now Media TV favorite live or on demand anytime you like, download the free Now Media TV app on Roku or iOS and unlock non stop bilingual programming in English and Spanish on the move. Catch the podcast version at NowMedia TV.
I'm back with Dr. Wendy Labat, the financial healer, CEO of the Financial Cures LLC, best selling author, business strategist and creator of the financial care system. We have talked about diagnosing health, understanding debt and inflation, and changing the mindset that drives the money decisions. Now let's focus on the bigger protection, financial freedom, legacy and generational wealth.
I would like to close the episode by moving from financial pain in the last segment to long term financial purpose.
We hope that the viewers are able to take away some key points including why protection matters, why wealth is more important or more than income, and how individuals and business owners can build a legacy even if they're working through their financial challenges.
The goal here is to leave the audiences feeling empowered and ready to take action. So, Dr. Wendy, why do you emphasize proper protection as part of financial health?
[00:29:30] Speaker B: Well, yeah, one illness or injury can ruin you financially. My story is a perfect example. You know, I was diagnosed with an aggressive form of breast cancer. But prior to that I, you know, when the government mandated everyone have health insurance, you know, I diversified my company and I include insurance and financial services.
So part of my business strategy and marketing strategy was to buy the products and services I was selling to them, to my clients because they were asking me, what do you have and where's your money? And I could honestly say, you know, what I had and where my money was.
So in 2017, I was diagnosed with a very aggressive form of breast cancer. So I'm like, okay, you want to be aggressive? I'm going to be more aggressive because I'm going to kick your butt.
[00:30:16] Speaker A: Breast cancer, I love the attitude, you
[00:30:18] Speaker B: know, but that aggressive treatment meant, you know, chemotherapy every three weeks for a year, five surgeries, you know, all these CAT scans, PET scans, everything to monitor the disease and all the prescription drugs to counteract the, you know, signs of the, the symptoms of the chemotherapy. You know, my mind and body took a beating. You know, like I said, I still suffer a little bit from chemo brain, but that's okay.
And you know, I lost all my hair, nails, you know, browse all that. And that, you know, cost almost a million and a half dollars. But thank God I practice what I preach because my health insurance paid all of that. Can you imagine having those kind of medical bills in addition to your business and personal expenses? You know, while you're battling an aggressive form of breast cancer. But not just that. All those other supplemental products I bought paid me multiple sick six figure, tax free financial shots in the arm that allowed me to focus on my recovery and not worry about money. But if I hadn't had that protection, I would still be paying those medical bills. You know, I could have been ruined financially and, you know, it's just not worth it to stress out when you're already in a stressful situation.
You know, I have a lot of rental property, so I have, you know, warranties, you know, home warranties. And when things go wrong, I don't have to fork out the full amount to have it serviced. You know, I just pay the little fee and then someone comes out. So those kind of protections for, you know, your life, you know, when you die, you don't want to leave be a liability to your family. You want to leave an asset, you know, you want to be an asset and not only pay your expenses, but leave a legacy for your family. You know, you want them to not skip a beat. You know, you want them to be able to, you know, live like they were living when you were living when you were alive. But, but you know, we all know we're going to die, but very few people will plan for that. You know, they don't want to talk about it. So you have to be prepared for that. And your legacy is not just leaving money. You need to empower your children and your grandchildren how to manage the money, how to manage the estate, how to, you know, control their own money, you know, early on when they're young. And a lot of folks don't do that, you know, and you don't want to leave a lot of debt, you know, you don't want to leave any debt if you can, but if you do, you want to make sure that it's covered by, you know, some sort of fund, some sort of passive income that will not be an additional strain to your family.
[00:32:53] Speaker A: Thank you for sharing your story. It's very personal, very empowering and I'm sure you are on track for building legacy for your family already.
And at the same time, you're echoing what we see as the norm because yes, you did the right planning and you got yourself out of such a bind. But there are clients who end up cashing their 401ks or dipping into their long term savings options because they're not able to sustain it, because they never thought this could happen to them. So it's that, you know, this will not Happen to me attitude and I'm just going to pretend or cross the bridge when I get there. That will get them to that point.
And then, you know, that is considered risky behavior because that can cause a lot of financial turmoil. So what financial risks do entrepreneurs, executives and individuals often underestimate in their opinion,
[00:33:46] Speaker B: for one, their health? You know, I, you know, I have an insurance agency and you know, I've talked to a couple entrepreneurs, you know, talking about getting health insurance and life insurance for them, and they're like, oh, I don't get, I don't go to the doctor. I said, well, that doesn't mean you're not sick, that nothing's wrong. You know, I don't get sick. It's like, no, but what if you're in an accident? You know, what if you fall down the steps or what if somebody shoots you? You know, you never know what's going to happen. And you can't say just because it hasn't happened that it doesn't or won't happen. Then you're getting older, you know, things start, you know, kind of breaking down.
[00:34:20] Speaker A: Life happens, you know. Yeah.
[00:34:23] Speaker B: You know, and then to just be prepared and I ask them, can you afford to cover something if, say if you had a heart attack, say if you broke your arm, say if you just got, you know, Covid back then can you go to the doctor and pay the medical bill without having insurance? You know, if you're out of your element for a month or two, you know, can your business survive without that income without you being there? So, you know, you have to kind of put the worst case scenario in front of them for them to recognize that there is a possibility that something could happen. If it doesn't happen, fine, that's great. But if it does happen, can you handle it financially?
[00:35:03] Speaker A: Like they say, hope for the best and prepare it for the worst. Right.
[00:35:07] Speaker B: Yeah.
[00:35:09] Speaker A: And then how is the financial freedom different from simply making more money? Money?
[00:35:14] Speaker B: Well, you can make, you know, like Robert Kiyosaki says, not about how much money you make, but how much money you keep, how hard it works for you and how many generations you keep it for. I find that my higher income clients are the worst. You know, they spend more, you know, they'll brag about I got this multi million dollar company but yet your expenses are multi million dollar plus ten dollars. You know, so they're spending more than what they're actually making. And you know, just because you have a multi million dollar company doesn't mean that's a profitable company. And people need to distinguish between profitability and gross sales because a lot of folks, they don't realize there's two different entities and two different, you know, cash flow circumstances.
But I think that, you know, they. People just have to realize that, you know, prepare for your future. You know, what do you want more? Do you want to, you know, live in a big house now and struggle, or do you want to, you know, have financial freedom and be able to choose a house or buy a house without having a house? No. You know, so you, you know, you have to kind of look at, you know, the long term, and then, you know, if you want to make a few changes in the meantime for the short term, that's fine, but I'd say plan for the long term.
[00:36:35] Speaker A: You know, the key idea I'm seeing or taking here, for me, as the person on the receiving end, I'm sure the viewers are too. It's about your mindset. It's about the need versus want. That's something you emphasized in that other segment, the previous segment. So for someone watching who wants to change the financial future, take that charge, feel empowered, what financial care would you prescribe as the first step?
[00:36:59] Speaker B: I would say the first step is do the spending challenge. You know, track every penny you spend. If you don't do it but for days, you know, write down or, you know, get receipts for everything you buy, even if it's a stick of gum, you know, track that, log it on, you know, be old school. Now, if you want to use the app, that's fine. You know, I'm old school, so I'll write on a piece of paper and write, you know, what you purchased, how much you spent? Did you pay cash or did you pay with a credit card? Because that's important. Because if you pay cash, you know, that's one cost or one amount. But if you pay with a credit card and you didn't pay that credit card off, you know, when the bill came, then that cost is more. So, you know, you got to be conscious of those kind of things. And, you know, is, was it a need or was it a want? And at the end of the week, you know, try for a week, and at the end of the week, you know, look at those expenditures and see how much you spent. Did you eat out, you know, at lunch three times that week? Did you, you know, buy coffee three or four times that week? Those things add up. And you can still get Starbucks coffee, but you can buy it in the grocery store, make it at home, and take it with you. And it's a lot cheaper than going to Starbucks, standing that line every day. And then, you know, if you ate out, could you have bought that and made your lunch at home and brought it to work? You know, so those are the kind of things you can still have what you want, but there are ways to do it that are more economical. And I think once you do that spending challenge, it kind of gives you a different perspective, and that would be the first step.
And that helps you, you know, transform your thinking about money. Because when you start seeing that you spend 30 or $40 a week on a cup of coffee, you know, for the week, you're like, dad, you know, especially where gas prices are, that'll put some gas in your tank, you know, may not fill it up. You can buy some gas.
So, you know, it's things like that that I would say would be the first step. And that should be an eye opener for a lot of people. And that can help you have the, you know, the right mindset or change your mindset to do future steps.
[00:39:05] Speaker A: I heard a simple, effective, very powerful policy or recommendation from you here. Pen and paper. You don't even have the money to invest in an app. That's fine. Pick up your pen, pick up your paper, and you start writing what you're spending. Dr. Benzi is not stopping you viewers from spending on the cup of coffee if you really want one, or getting or splurging into the next item you want to get for you. However, what she's encouraging is conscious spending and changing your mindset. So, Dr. Wendy, this has been a very meaningful conversation because you remind us that money is not only about the numbers. It's about health, protection, choices, legacy, and the life we want to create.
What I hope the viewers take away is this financial pain does not have to become a permanent condition.
With the right mindset, the right systems, and the right plan, we can diagnose what's not working, treat the problem, and build a healthier financial future. Thank you for joining me today on Guilty of Savings. And to everyone watching, do not wait until financial stress becomes a crisis. Start asking better questions and look honestly at your numbers and take one step towards stronger financial health. I am Divya Gill, and I'll see you next time on Guilty of Savings. Savings.
[00:40:24] Speaker B: Well, thank you, Divya, for having me on the show. It's been a pleasure and I hope your audience really gets something out of the information that we share today.
And if you want to know more about the financial cures or contact me, you can go to my website, the Financial cures dot com. That's the financial cures with an s dot com. And I have that spending challenge there that I talked about, which would be a real good first step for anyone that's interested in, you know, changing their financial health. And I have my show, financial cures with Dr. Wendy. I have you can watch it 247 at fin cures. That's f I n c u r e s dot com.
And I hope to you know, that people's financial health is improved. Remember, when you think right, speak right and do right, things will flow right to optimize your financial health. Thank you again, Divya.
Sam.
