~ Awaking Humanity ~
This week, on The Conscious Consultant Hour, Sam welcomes Financial Literacy Expert, Natalie Wynne Pace.
Natalie is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. She is the co-creator of the Earth Gratitude project and the author of the Amazon bestsellers The ABCs of Money for College, The Gratitude Game, The ABCs of Money and Put Your Money Where Your Heart Is (aka You Vs. Wall Street in paperback).
She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 3rd edition of The ABCs of Money was released in 2020.
Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies.
Watch the Facebook Livestream by clicking here.
Sam delivers his weekly quotes from Abraham and the Universe. Then he introduces returning guest Natalie Wynn Pace. Natalie jumps right in with her thoughts on prosperity consciousness. Sam says that there are so many life skills that we aren’t taught as a child, like banking strategies, that we must become educated about. He is all for empowering people in all aspects of life, financial situations included.
Natalie says that if you have credit card debt, you have a budgeting problem. She suggests the “thrive budget” which is detailed on her website. This budget is centered on spending 50% of your income on “thriving” and the other 50% on “surviving”. She also advises not to drain your bank account in order to live a lifestyle that is out of your price range. However, by taking responsibility for how much you are spending, you are empowering and enabling yourself to have fun and enjoy yourself more. If you feel like you can't afford to have fun, this is another sign you have a budgeting problem. Natalie urges the audience to do an equity check, as it is hard to live in an “underwater” asset.
If you are an employee you need to consider how reliable your income is and protect your wealth. Many employees are not paying attention to their 401Ks. They may not be aware that they can take easy actions to improve this because after all, you are the boss of your own money. Sam says that you can have power over your own money instead of handing it over to someone else to deal with, (it’s not as hard as it seems)! Natalie knew we were in a recession before it was announced because she is tuned into the happenings of the economy which is why her methods should be trusted. Like Natalie, it is important to stay educated on the financial situation of the current time. Furthermore, businesses should be reassessed during this pandemic to see how they can adapt to the changing times. The future is going to look very different and your business must adjust.
Natalie says your money must be properly diversified and says you must lead your money from wisdom. They pivot to discussing how people are fleeing the city and moving towards the countryside. In the last 20 years, there is a lot more volatility in the financial market and an eye must be kept on it. Real estate usually takes 4 years to hit it’s bottom, so Natalie says to “stay tuned”. You can find Natalie on NatalicePace.com for her information. You can also email her at email@example.com.
00:00:28.770 --> 00:00:38.910 Sam Liebowitz: Good afternoon, my conscious co creators. Welcome to another edition of the conscious consultant hour awakening humanity.
00:00:39.270 --> 00:00:50.250 Sam Liebowitz: I am very, very pleased that you're all here with me today. I've got a wonderful show in store for you with an amazing returning guest actually
00:00:50.940 --> 00:01:01.200 Sam Liebowitz: Natalie, I think I may have had her on the Show More times than just about any other returning guest and she's amazing. And you'll see all about that shortly.
00:01:02.730 --> 00:01:06.780 Sam Liebowitz: She's a wonderful financial experts, we're going to be talking all about money today.
00:01:07.230 --> 00:01:14.670 Sam Liebowitz: All right, but first of course we have to have start off with our quotes of the day from Mike Dooley in the universe and from Abraham to kick us off.
00:01:15.000 --> 00:01:35.400 Sam Liebowitz: Let's see what they have in store for us today. First from the universe. It takes a really special person someone quite extraordinary to find true happiness in the lap of luxury surrounded by wealth and abundance friends and laughter and Choices. Choices. Choices.
00:01:36.540 --> 00:01:51.210 Sam Liebowitz: And funnily enough, it's usually the exact same kind of person who can be happy without all that spending time alone, maybe with a book or some tools or a dog for the odd distraction.
00:01:51.960 --> 00:02:03.540 Sam Liebowitz: Get my drift. The universe, how we love our quotes from Mike Dooley in the universe rather apropos one I think today, reminding us that while having
00:02:04.950 --> 00:02:15.810 Sam Liebowitz: You know, all of our hearts desires all the material possessions. The, the home the car. The, the partner or the the friends, the community around us.
00:02:16.620 --> 00:02:41.250 Sam Liebowitz: Well, those things may light up our heart and bring us joy and happiness, joy and happiness are things that come from that are generated from inside of us. And so when we realize that actually we can be happy, regardless of our external circumstances, then it doesn't quite matter as much
00:02:42.270 --> 00:02:48.150 Sam Liebowitz: how big our bank account is not alone. I'm not saying that it's fun to be poor. Absolutely not.
00:02:49.590 --> 00:03:09.420 Sam Liebowitz: But somehow, what I've seen, and maybe when they bring Natalie on show a have her own point of view on this that sometimes the people who are wealthy and happy. It's because they're almost in a way detached from their wealth that they honor their wealth they
00:03:10.590 --> 00:03:17.370 Sam Liebowitz: manage their wealth and they're cognizant of their conscious of it, but they don't let it rule their life.
00:03:18.210 --> 00:03:26.820 Sam Liebowitz: And that there are many wealthy people out there who do and somehow they just don't to me seem as happy and as joyful with their lives.
00:03:27.270 --> 00:03:44.670 Sam Liebowitz: Now, absolutely you know having access to resources, having the home you desire and having the resources to do what you want to do, of course, that brings us tremendous freedom and that freedom brings us a lot of joy.
00:03:45.330 --> 00:03:53.550 Sam Liebowitz: But the most important freedom, I would say, is the one appears, the one between our ears that when we're free
00:03:53.850 --> 00:04:09.150 Sam Liebowitz: To choose how we desire to show up in the world to choose whether we're happy, joyful or or maybe we're going through a difficult time and we're sad, but we're conscious of these choices and we know what we're doing that, then
00:04:09.960 --> 00:04:29.700 Sam Liebowitz: Really, that is the greatest wealth, having an the, the presence of mind and the control to understand where we are inside, not just where we are outside. So I think it's a great quote very apropos for today's show. Let's see what Abraham has to say today.
00:04:30.930 --> 00:04:41.790 Sam Liebowitz: You have the power to evoke from others, the relationships that you desire but you cannot get to a new and improved situation by giving your attention to the current situation.
00:04:42.150 --> 00:04:51.090 Sam Liebowitz: The universe and all physical and non physical players in it is responding to the vibrations that you are offering
00:04:51.780 --> 00:05:01.410 Sam Liebowitz: And there is no distinction made between the vibrations that you offer as you observe and the vibrations that you offer as you imagine
00:05:02.250 --> 00:05:13.830 Sam Liebowitz: If you will simply imagine your life as you want it to be all cooperative components will be summoned an even more important all components that are summoned will cooperate, it is law.
00:05:14.220 --> 00:05:30.720 Sam Liebowitz: The experience that you have with others is about what you evoke from them. Abraham hmm really juicy quote from Abraham and this one really all about. I mean, again, our focus. What we're choosing to focus on. And then that has a lot to do with how we feel.
00:05:31.770 --> 00:05:45.750 Sam Liebowitz: But it's also, I think, really trying to get us to understand that when we really truly focusing on what we want to create in the world. What we want to bring to the world.
00:05:46.560 --> 00:05:58.530 Sam Liebowitz: That that is the energy we're giving off. That's the the vibration the frequency. And when we're so in tune, when we're so as Abraham would say in the Vortex.
00:05:58.950 --> 00:06:05.490 Sam Liebowitz: About what we want to create that is what brings all of these different things to it. So, that is what
00:06:06.330 --> 00:06:26.880 Sam Liebowitz: Allows us to really create the situations now may not happen overnight, but it's definitely again about being aware and cognizant of how we are showing up and have our energy, whether it's around again relationships money finances community situations.
00:06:27.960 --> 00:06:35.220 Sam Liebowitz: It's all about how we decide to show up, you know, and as many of you know who listen in.
00:06:35.700 --> 00:06:46.080 Sam Liebowitz: I always say that, look, we have no control over what happens to us in the world, but we do have control over how we choose to respond to it.
00:06:46.710 --> 00:06:57.690 Sam Liebowitz: And this is I think particularly highlighted in today's situation where we actually have no control over this pandemic over what's going on around us.
00:06:57.990 --> 00:07:08.460 Sam Liebowitz: But we do have control over how we choose to respond to it in many different ways. In in how we take care of ourselves in in how we
00:07:09.030 --> 00:07:16.500 Sam Liebowitz: In the choices we make whether we contribute to the health and well being of ourselves, our family and everyone else on the planet.
00:07:16.800 --> 00:07:24.060 Sam Liebowitz: Or do we choose to not think about others, and show up in a different way. And I just find it, you know, fascinating how
00:07:24.690 --> 00:07:37.170 Sam Liebowitz: In places where people have sort of taken the situation very seriously, and I've really been very strict with themselves like those are the places where things aren't as bad.
00:07:37.440 --> 00:07:41.400 Sam Liebowitz: But in the places where people aren't taking it as seriously, or maybe
00:07:41.820 --> 00:07:49.080 Sam Liebowitz: They think it's a hoax or maybe they just don't believe the government anymore. They don't believe what they're hearing in the media. So they're just doing their own thing.
00:07:49.290 --> 00:07:56.070 Sam Liebowitz: Like, those are the places where things are not as good. So just something to consider. I don't like getting political but
00:07:57.210 --> 00:08:07.290 Sam Liebowitz: I do want to make that point. And so now it is my extreme pleasure to welcome to the show financial literacy expert Natalie wind pace.
00:08:07.680 --> 00:08:12.570 Sam Liebowitz: Natalie is an advocate for sustainability financial literacy and women's empowerment
00:08:13.080 --> 00:08:25.140 Sam Liebowitz: She is the co creator of the earth gratitude project and the author of the Amazon best sellers. The ABC of money for college, the gratitude game the ABC series of money.
00:08:25.410 --> 00:08:29.550 Sam Liebowitz: And put your money where your heart is also known as you versus Wall Street.
00:08:30.090 --> 00:08:44.580 Sam Liebowitz: She has been ranked as the number one stock picker above over three 835 a list pundits by an independent tracking agency, the ABC of money remained at
00:08:45.150 --> 00:08:54.300 Sam Liebowitz: at or near the number one investing basics eBook on Amazon for over three years with over 120,000 downloads.
00:08:54.690 --> 00:09:08.070 Sam Liebowitz: And an average or mean of five star ranking the third edition of the ABC is of money was released this year and it is my pleasure to welcome Natalie to the show today. Hi. Natalie. How you doing,
00:09:08.400 --> 00:09:11.610 Natalie Pace: I'm doing so well. Thank you for having me again.
00:09:12.030 --> 00:09:22.920 Sam Liebowitz: Again, well, my pleasure. And actually, you know, this time, I have to say I have really an even deeper appreciation, because since the last time. I've had you on your show. I've actually taken your boot camp.
00:09:23.280 --> 00:09:35.670 Sam Liebowitz: And gone over all this stuff with my wife, and we've changed some of the things that we were doing. And so now I understand a lot more about what you're about, and what you're trying to do for people. So I really
00:09:36.210 --> 00:09:42.450 Sam Liebowitz: Feel good about bringing you back on the show, especially at this time because I think there's a lot of confusion today.
00:09:42.840 --> 00:09:51.240 Sam Liebowitz: About what people should be doing in regards to their finances in regards to, you know, their money and whether they're
00:09:52.050 --> 00:10:01.950 Sam Liebowitz: Have a job, don't have a job, should they should they get if they have a business or they get these government loans or not get these government loans. So we're going to delve into all of that stuff. Today on the show. Okay, now
00:10:02.550 --> 00:10:08.250 Natalie Pace: I'm ready, I'm ready. Actually, I think that it's good. Since you start off with such a spiritual bent
00:10:08.550 --> 00:10:16.920 Natalie Pace: And you know I did. Right. Put your money where your heart is I think what's really probably the most fundamental thing for conscious creatives to understand
00:10:17.190 --> 00:10:27.870 Natalie Pace: Is that in order for us to have our spiritual alignment towards prosperity we have to have our mortal alignment there as well. So I liken it like
00:10:28.620 --> 00:10:35.100 Natalie Pace: You know, if you prayed every day that you're not a heroin addict, but every morning used to use you woke up in the first thing you did was shoot up
00:10:35.430 --> 00:10:45.510 Natalie Pace: Then you your mortal alignment is out, out of, out of tune and it's really difficult to pray your way out of that situation because you're causing it.
00:10:45.810 --> 00:10:56.100 Natalie Pace: So in order for you to have prosperity consciousness. You do have done, learn the ABC some money that we all should have received in high school.
00:10:56.340 --> 00:11:09.660 Natalie Pace: Your life and your lifestyle do have to be in alignment otherwise every morning when you wake up if you're getting calls from the debt collector or you're worried about losing your home or you don't know
00:11:10.020 --> 00:11:16.080 Natalie Pace: If your children are going to be able to go to college, then you are freaked out. You can't avoid
00:11:16.440 --> 00:11:26.130 Natalie Pace: The kind of stress that happens when your life is not set up properly. And it's really easy for your life to not be set up properly.
00:11:26.760 --> 00:11:35.970 Natalie Pace: So, a lot of us avoid it. And we say all someone else's handling that for me or you know I'm good, or I'm, you know, whatever, whatever.
00:11:36.360 --> 00:11:44.430 Natalie Pace: story you tell your style yourself to try to align the prosperity consciousness. But I will tell you, prosperity consciousness becomes
00:11:44.790 --> 00:11:52.770 Natalie Pace: Much more easy when you have the thrive budget in place when you know that your retirement is protected.
00:11:53.010 --> 00:12:03.480 Natalie Pace: When you know that you can afford your home. And when you have an actual college plan for your children. That's not going to get them out on the other side with unsustainable college loan debt.
00:12:03.840 --> 00:12:11.280 Natalie Pace: And the statistics are so high on debt and consumer debt of all shapes and sizes.
00:12:11.940 --> 00:12:26.280 Natalie Pace: Real estate prices high stock prices high so that the statistics are that most of us need to take a very serious look at this and make adjustments. Now the last thing I want to say before we dive into the the you know how to choose is that
00:12:27.150 --> 00:12:36.480 Natalie Pace: Making the adjustments is easier than you think. And the truth of the adjustments that you need to make are found outside
00:12:36.930 --> 00:12:48.030 Natalie Pace: Of the mainstream thinking. So if you think, Oh, I'm frugal I cut out cafe lattes. I don't eat avocado toast in restaurants and therefore my budgets. Good.
00:12:48.540 --> 00:12:57.150 Natalie Pace: No, it's sorry that's not the way it is. I mean, it can save you hundreds but the reason most people are out of alignment with their budget.
00:12:57.510 --> 00:13:02.850 Natalie Pace: Is that the big ticket items have gone astronomically expensive.
00:13:03.330 --> 00:13:24.120 Natalie Pace: And their wages have basically been the same for 30 years. So what do you do in that situation. Well, there are solutions and they aren't always ones that are going to require you to do without. They're actually smarter choices. So you can save thousands annually with smarter choices.
00:13:24.450 --> 00:13:32.820 Sam Liebowitz: Absolutely, and I love what you're saying because it's all about really taking responsibility for our financial lives. And I agree with you that
00:13:33.180 --> 00:13:38.010 Sam Liebowitz: You know, there's so many of these basic life skills that were never taught as children.
00:13:38.490 --> 00:13:50.520 Sam Liebowitz: That you know the basics about, you know, dealing with with bank accounts and banks and investing and it just just on a very broad. I'm not even talking about detail, but just on a very broad, broad general basis.
00:13:50.760 --> 00:13:56.700 Sam Liebowitz: That we all should know as we come into the world because by the time we graduate college and and
00:13:57.030 --> 00:14:04.230 Sam Liebowitz: Know, nowadays, more people are staying with their parents. After college, but you know back when I graduated, everybody was like I'm at I'm at my parents house.
00:14:04.620 --> 00:14:09.510 Sam Liebowitz: And they're just certain basic things that were never taught that if we were just
00:14:10.080 --> 00:14:19.260 Sam Liebowitz: At least today. You know, it's okay, look, we don't need to beat ourselves up right for what we've done in the past. But if we take responsibility starting today.
00:14:19.530 --> 00:14:26.160 Sam Liebowitz: Moving forward, then we can go out, get educated, which is what you're all about financial literacy
00:14:26.490 --> 00:14:36.330 Sam Liebowitz: And empower ourselves about, you know, what do we need to do. And that, to me, and it was interesting. I was talking to my wife after I took your book boot camp.
00:14:36.930 --> 00:14:46.470 Sam Liebowitz: And and she's asked me, she's like, how do you feel about you know all this information and what we got. And everything else. And I go, What do you mean, and she goes, well doesn't it feel empowering that like we know we
00:14:48.300 --> 00:14:57.750 Sam Liebowitz: Go. Yeah, you know what, you're right. And so I really like and that's what I'm all about is empowering people just to make better choices in all aspects of their life.
00:14:58.050 --> 00:15:10.230 Sam Liebowitz: And look, I don't care how spiritual you are like you said you can't meditate way out of a financial mess. You need to be conscious about your financial situation. And so that's why we're doing the show today.
00:15:10.530 --> 00:15:12.600 Sam Liebowitz: So, so, Natalie. Let's take a quick break.
00:15:13.230 --> 00:15:28.860 Sam Liebowitz: So this way. When we come back, we're going to dive right into some of the basic how tos, and really help to support our audience into possibly making some better choices and understanding that they actually do have more power in their hands, then they realize okay much
00:15:29.310 --> 00:15:47.190 Sam Liebowitz: Much, much more awesome so everybody please stay tuned. You're listening to the conscious consultant. Our awakening humanity. We do this every Thursday 12 noon eastern to 1pm right here on talk radio dot NYC and all over Facebook on Facebook Live and we will be right back after this
00:17:54.690 --> 00:18:06.240 Sam Liebowitz: Welcome back to the conscious consultant. Our awakening humanity. We're speaking this hour with financial literacy expert and author of the book The ABC of money, Natalie pace.
00:18:07.020 --> 00:18:14.340 Sam Liebowitz: So, Natalie. We talked a little bit about, you know, the importance of empowering ourselves of educating ourselves of how to make better choices.
00:18:14.670 --> 00:18:25.770 Sam Liebowitz: And especially today in this environment. It's more important than ever. And as you mentioned, and this is something you know so funny. I mean, I've been hearing about the looming credit card debt.
00:18:26.610 --> 00:18:43.560 Sam Liebowitz: Problem, that's about to burst for a few years now. I'm actually surprised that it really hasn't hit us in a big way. So what can people do these days to lower. Let's start with like lowering the data and then later on we'll get into like in investing money more wisely.
00:18:44.700 --> 00:18:48.540 Natalie Pace: Okay, so we're talking about credit card debt and specific
00:18:49.140 --> 00:18:55.500 Natalie Pace: I think I'm going to give you four things that we're going to talk about and then we'll go back to credit card debt. So I want to give you four things.
00:18:55.860 --> 00:19:02.550 Natalie Pace: That I want you to take away from this time. Number one, you got to right size your budget and you need to conserve capital.
00:19:03.300 --> 00:19:13.440 Natalie Pace: Number two, you need to make sure that you can afford your home and you need to do an equity check. You want to make sure, especially if you purchased your home in the last two or three years.
00:19:13.740 --> 00:19:28.380 Natalie Pace: That you're not going to be in trouble if the markets for if the real estate prices start to go down. Number three, you want to diversify and protect your retirement plans and number four. Don't drain your retirement plans.
00:19:28.650 --> 00:19:29.910 Natalie Pace: To pay down
00:19:30.030 --> 00:19:33.900 Natalie Pace: Debt that is unsustainable. So it has to be part of
00:19:34.410 --> 00:19:45.120 Natalie Pace: A comprehensive plan. So when we go back to credit card debt. Now, what a lot of people are doing, especially if they're in trouble is, they're taking money from their retirement plans.
00:19:45.600 --> 00:19:57.240 Natalie Pace: To try to keep their life exactly the way it is. And that is an unsustainable plan. So the truth is if you have a credit card debt, what it's telling you is you have a budgeting problem.
00:19:57.630 --> 00:20:09.960 Natalie Pace: So you are living above your means. So every part of the most important part of a credit card solution is to right size your budget and that's going to require brave choices.
00:20:10.320 --> 00:20:20.160 Natalie Pace: So the thrive budget is something that you can do for yourself. I have a free web app, go to Natalie paste. COM. There's a badge right on the homepage and you can mark up your free
00:20:20.700 --> 00:20:26.100 Natalie Pace: Your personalized thrive budget right then and there, with one question. So it takes one click to do it.
00:20:26.700 --> 00:20:34.830 Natalie Pace: Know what the thrive budget is centered on is the idea that you need to spend 50% of your income on surviving
00:20:35.280 --> 00:20:45.690 Natalie Pace: And 50% on thriving so 50 10% going to retirement accounts 10% to charity 10% to education and 20% so you can double your fun budget.
00:20:45.990 --> 00:20:59.160 Natalie Pace: Because that it creates endorphins endorphins create health, health is a really expensive thing if you don't have it, both in terms of insurance and health care costs and the inability to work. So all of these things work together. Now, how do you get
00:20:59.850 --> 00:21:10.680 Natalie Pace: A right sized budget if your expenses are taking up more than 50% of your income. Well, there are many ways to solve that problem into
00:21:11.370 --> 00:21:21.990 Natalie Pace: You know what we used to say, oh, you know Millennials are graduating from college and the moving back home with their parents. Well guess what, it's now called intergenerational housing and it's not just the kids that are living with the parents.
00:21:22.200 --> 00:21:22.770 Sam Liebowitz: It's free.
00:21:22.950 --> 00:21:30.420 Natalie Pace: It's the elders as well. And the interesting thing about that is that having each family member live in their own
00:21:30.810 --> 00:21:36.480 Natalie Pace: tiny space and making the landlord rich is actually costing the family a lot of money.
00:21:36.870 --> 00:21:45.840 Natalie Pace: So that might. I'm not saying it is absolutely the solution, but I'm saying that might be this part of the solution is intergenerational housing.
00:21:46.080 --> 00:21:53.790 Natalie Pace: If you're spending less on housing. If you're. You can also, if you live in a sunny state, you can do Solar's so that you start making the electric company rich
00:21:54.300 --> 00:21:57.840 Natalie Pace: Now that we're all working from home. Do you really need two or three cars.
00:21:58.560 --> 00:22:08.640 Natalie Pace: The average person spends $7,500 per year on a car when you add up everything in the car payment. The car insurance, the gasoline maintenance and all of that.
00:22:08.910 --> 00:22:26.640 Natalie Pace: So there are ways that you can really right size your budget, still have a great life and perhaps it's going to look very different. But when you have more money to pay your bills and you're not putting food on credit cards that is going to relieve a lot of stress in your life and
00:22:27.750 --> 00:22:39.390 Natalie Pace: An absolutely do not drain your bank account, and especially retirement account to stay in a home, you can't afford or to pay off credit cards, you gotta there's an entire section.
00:22:39.900 --> 00:22:44.430 Natalie Pace: On debt in the ABC of money you got to read it so that you can be informed.
00:22:45.270 --> 00:22:51.150 Natalie Pace: If you're just getting your pay you know how you can pay down debt plan from the credit card company that you owe money to
00:22:51.540 --> 00:23:00.000 Natalie Pace: Well, they are giving you a plan that makes them rich at your expense and it's not necessarily the best plan for you so you need to know your
00:23:00.600 --> 00:23:10.920 Natalie Pace: Alternatives and again right sizing the budget is as priority one don't train your own retirement accounts is priority to and
00:23:11.430 --> 00:23:21.450 Natalie Pace: And then, you know, figuring out how you're going to pay down this debt by not adding to it anymore because you've right sized your budget is going to go a long way as well.
00:23:21.780 --> 00:23:27.810 Sam Liebowitz: And I love what you're saying about right sizing your budget, but still always budgeting something fun.
00:23:28.470 --> 00:23:32.640 Sam Liebowitz: Because one of the things that I find tend to be one of the biggest
00:23:33.090 --> 00:23:42.630 Sam Liebowitz: Obstacles or blocks to people like really budgeting themselves as they're like, oh, when I budget myself and I don't have any money to do anything fun and it's like, why am I living. There's no point to it.
00:23:42.900 --> 00:23:51.660 Sam Liebowitz: And we kind of talk ourselves out of doing the very things that are actually going to support us, but by but by actually budgeting and saying okay look
00:23:51.930 --> 00:24:02.070 Sam Liebowitz: You know I may not have a huge budget for fun, but at least I have this percentage or this much money and I can accumulate it over time if I really want to do some big fun stuff.
00:24:02.400 --> 00:24:11.100 Sam Liebowitz: But then, at least, then you know like, hey, it's not all work and no play at least we're able to still enjoy our life.
00:24:11.400 --> 00:24:18.210 Sam Liebowitz: And actually, as what you're saying is by taking sort of responsibility and really looking at how much we're spending versus
00:24:18.510 --> 00:24:29.430 Sam Liebowitz: You know what's going out versus what's coming in and adjusting things so it makes more sense. We actually empower and enable ourselves to have more fun to be able to enjoy our life a little bit more
00:24:29.760 --> 00:24:34.650 Natalie Pace: Yeah, you cannot thrive. If you're struggling to survive and buried alive and bills.
00:24:34.920 --> 00:24:44.580 Natalie Pace: So if you feel like you can't afford fun. That's a big red flag that your budget is out of whack. And there are ways to get the budget in whack. If you just say
00:24:44.820 --> 00:24:59.310 Natalie Pace: Oh, you know, life's too expensive and blah, blah, blah. Then, of course, you can stay in this rut. But that's, I always think that's like some files in a mud puddle, and they sit there and they kind of splash more money on their face and go, look how much money I have on my face.
00:24:59.640 --> 00:25:02.610 Natalie Pace: You know, like, get up, wash yourself off.
00:25:02.850 --> 00:25:13.440 Natalie Pace: Look at this possible solutions get brave and that's going to equate to a brand new life. I am living proof of it.
00:25:13.890 --> 00:25:14.400 Yeah.
00:25:15.810 --> 00:25:20.490 Sam Liebowitz: Absolutely, absolutely. And, and I do know people who have
00:25:21.600 --> 00:25:34.170 Sam Liebowitz: done exactly what you've said in order to change their lifestyle around like I have one friend who actually I believe if he hasn't already closed on his house. He sold his house.
00:25:34.950 --> 00:25:44.670 Sam Liebowitz: Because he had been underwater for a while, but now property values where he was went up enough that he could actually sell his house for enough money.
00:25:44.970 --> 00:25:46.290 Sam Liebowitz: Pay off his mortgage
00:25:46.680 --> 00:25:50.250 Sam Liebowitz: Pay off his credit card debts which, for various reasons. He has credit card debts.
00:25:50.670 --> 00:25:57.120 Sam Liebowitz: And he's actually wants a different lifestyle, he's decided that he wants to be a little bit more of a nomad he's going to get like a
00:25:57.450 --> 00:26:09.480 Sam Liebowitz: RV or something where he can be mobile and drive around and do his work from wherever. So he he made the choice and it might not be a choice for everybody. I'm just using this as an example that
00:26:09.630 --> 00:26:11.250 Natalie Pace: For even forever for him.
00:26:12.000 --> 00:26:24.510 Sam Liebowitz: Right. Exactly. Yeah. After like 510 years he may decide, you know what, I've had enough of this you know nomadic lifestyle. I want to do this. So, he said. Ultimately, he wants to get a boat and just sail down to the Caribbean and live on an island, but we'll see if he makes it
00:26:25.920 --> 00:26:32.370 Sam Liebowitz: If he's listening. I'm in big trouble. Now because you know he knows about. But, but it just. The point is, is that
00:26:32.880 --> 00:26:38.760 Sam Liebowitz: You know, we can make some tough. If we can give ourselves some financial boundaries.
00:26:39.060 --> 00:26:44.820 Sam Liebowitz: Around what we're doing, maybe, and especially now, in some ways, it's easier than ever before. I mean, I'm talking to a lot of people
00:26:45.000 --> 00:26:51.150 Sam Liebowitz: You know, we're not eating out as much as we used to. Without traveling like we're used to. There's a lot of things that we used to spend money on
00:26:51.450 --> 00:26:54.510 Sam Liebowitz: That we actually haven't been able to spend money on for the last few months.
00:26:54.810 --> 00:27:09.540 Sam Liebowitz: And that while now things are opening up or starting to go back out, we can actually make some intelligent choices that serve us, as you said, instead of serving the credit card companies, the financial institutions and everybody else who's making a lot of money off of our bills.
00:27:10.050 --> 00:27:13.920 Natalie Pace: Yeah. And again, I'm, you know, I'm glad that we have a
00:27:14.670 --> 00:27:25.950 Natalie Pace: Solid financial structure and that people can start businesses and get money and buy houses and all that, but I want to go also to your friend who's been under water for the past 10 years and finally got extricated
00:27:26.250 --> 00:27:29.640 Natalie Pace: That's a big red flag. And that's one of the things on our checklist is
00:27:30.180 --> 00:27:37.620 Natalie Pace: Not only do you want to look at, can you afford your home. You want to do an equity check on your home because people are tempted
00:27:38.040 --> 00:27:47.400 Natalie Pace: because interest rates are so low, and their monthly payment might appear to be low to getting into buying real estate now at an all time high.
00:27:47.670 --> 00:27:56.160 Natalie Pace: And that can be a very perilous situation, even if you think you're going to live there for 30 years because if the value of the home goes down.
00:27:56.460 --> 00:28:02.700 Natalie Pace: That's one of the biggest hits to your credit score, but also just like your friend experienced you're stuck there.
00:28:03.060 --> 00:28:18.300 Natalie Pace: That your options become very limited. When you own more than the value of your home because no one can buy it from you because they you know they can't pay off. You can't pay off the mortgage unless you decide to write an extra large check
00:28:18.960 --> 00:28:24.660 Natalie Pace: That means your career advancement might be limited. What if all the sudden you got this great job in another city.
00:28:25.410 --> 00:28:29.160 Natalie Pace: And you couldn't rent out your own home for even to cover the costs of it.
00:28:29.850 --> 00:28:40.500 Natalie Pace: So I want everybody who is thinking of buying a house or has purchased a home in the past two or three years to do an equity check. And in fact, there's a brand new blog.
00:28:40.860 --> 00:28:52.050 Natalie Pace: On my website that you can read about that. So it says specifically are you feeling equity rich. Well, let's go through the analysis to make sure that feeling is not fleeting because I will tell you.
00:28:52.410 --> 00:29:02.610 Natalie Pace: It is hard and devastating to live in an underwater asset like home for a decade. And that's probably why your friend wants freedom.
00:29:02.880 --> 00:29:04.410 Natalie Pace: He's going to get a sobering.
00:29:05.100 --> 00:29:22.800 Natalie Pace: He's going to learn something about about RV life, which is that that cost of gasoline is really a drain as well. So he may find that that's, you know, I would strongly say to your friend rent an RV for 60 days first
00:29:23.070 --> 00:29:26.670 Natalie Pace: Right, just so that you know that's the right choice for you. Yeah.
00:29:26.730 --> 00:29:33.630 Sam Liebowitz: Actually, it's very good. Good idea, because whenever we try something new that so all encompassing like I like
00:29:33.690 --> 00:29:43.800 Sam Liebowitz: Our voice like that. If you've never done it before you like you say they're always be little things that all of a sudden, once you're in it. It's too late to get out of it that you realize like, oh my god.
00:29:44.130 --> 00:29:59.460 Sam Liebowitz: Yeah, no, it's always a wise thing to to kind of check in with that. Okay, it's time for us to take another quick break when we come back, I'd like to talk a little bit about sort of the current situation and what people can do who
00:29:59.670 --> 00:30:05.910 Sam Liebowitz: Perhaps you know, are they on unemployment, are they furloughed is there's so many people now and sort of
00:30:06.300 --> 00:30:09.480 Sam Liebowitz: And maybe, you know, towards the end of the show, we can do a little
00:30:09.780 --> 00:30:13.170 Sam Liebowitz: prognostication about maybe where things are going, because
00:30:13.530 --> 00:30:15.180 Sam Liebowitz: I know you have this very certain
00:30:15.600 --> 00:30:17.040 Sam Liebowitz: View of sort of the
00:30:17.280 --> 00:30:21.240 Sam Liebowitz: financial industry in general. And I think it's good to sort of
00:30:21.510 --> 00:30:25.410 Sam Liebowitz: Have an alternative view that that most people are exposed to.
00:30:25.680 --> 00:30:27.900 Sam Liebowitz: Just so that they can be prepared, depending on
00:30:27.990 --> 00:30:29.100 Sam Liebowitz: On what happens. Okay.
00:30:29.460 --> 00:30:29.940 Natalie Pace: Sounds good.
00:30:30.480 --> 00:30:36.060 Sam Liebowitz: All right. Wonderful. So everybody please stay tuned. You're listening to the conscious consultant. Our awakening humanity.
00:30:36.270 --> 00:30:38.040 Sam Liebowitz: We'll be right back after this
00:32:55.590 --> 00:33:07.500 Sam Liebowitz: Welcome back to the conscious consultant. Our awakening humanity. We're speaking THIS HOUR WITH NATALIE when pays a financial literacy expert about how to be more conscious, especially in these times.
00:33:07.920 --> 00:33:17.430 Sam Liebowitz: With our finances with our money so that we can really thrive in the long run and and Natalie, I'd like to talk about now a
00:33:17.550 --> 00:33:24.270 Sam Liebowitz: Kind of sort of the financial environment that we're in at the moment, but I would like to like divided up into sort of three segments and that's
00:33:25.140 --> 00:33:32.670 Sam Liebowitz: You know, in terms of if you're an employee. If you're a business owner or if you're retired because those are three very sort of
00:33:33.240 --> 00:33:48.900 Sam Liebowitz: Different people but very different needs and different concerns. So let's just start like if you're an employee, whether you're employed at the moment or unemployed, what kinds of things do you think people who are employees really need to consider at the moment.
00:33:49.440 --> 00:33:54.870 Natalie Pace: Well, I think in general, all those all those areas. We have to consider how reliable our income is
00:33:55.290 --> 00:34:02.430 Natalie Pace: And protect our wealth, so it's it's kind of the same, but it's going to look different slightly so
00:34:02.880 --> 00:34:11.670 Natalie Pace: Like a lot of employees are not paying attention to their 401k or their retirement accounts and they may not be especially if they're younger than 30
00:34:11.970 --> 00:34:21.870 Natalie Pace: Or even mid 30s. They may not be aware of the price of the last recession, which is that most people lost more than half and their retirement, they may not be aware that you can take.
00:34:22.380 --> 00:34:30.810 Natalie Pace: Easy actions to protect your wealth better and that knowing what a healthy nest egg looks like is a part of your job. In fact, for a lot of people
00:34:30.990 --> 00:34:38.430 Natalie Pace: If they lose more than half of their retirement. That's more money than they earn in a year. So it should be a priority and speaking more to
00:34:38.940 --> 00:34:46.170 Natalie Pace: Kind of when we started this, you said hey you know you have more power than you realize. Well the truth is, you are the boss of your money.
00:34:46.620 --> 00:34:58.920 Natalie Pace: If you relinquish that power to somebody else and they lose your money. It's your money that gets lost, and it's very hard to try to sue to get your money back. So whether you are managing your own money or men are
00:34:59.430 --> 00:35:09.060 Natalie Pace: Checking boxes blindly in your 401k or retired and and relying upon somebody else to manage your money or hoping and praying that you have it properly diversified
00:35:09.510 --> 00:35:16.560 Natalie Pace: Or a small business owner who may not be contributing enough to your own retirement and doesn't see a way to do that.
00:35:17.340 --> 00:35:26.160 Natalie Pace: This is priority one. So in the thrive budget, the first thing you do, no matter whether you employ yourself or somebody else employees, you are you're retired.
00:35:26.490 --> 00:35:32.520 Natalie Pace: Is you want to be putting 10% of your income into attacks protected retirement account.
00:35:33.030 --> 00:35:47.820 Natalie Pace: And you have to know what a diversified plan looks like. Again, this is all easy as a pie chart. An easy pie chart strategy around games in the last two recessions, when most people lost more than half. So it's not difficult.
00:35:48.300 --> 00:35:55.680 Natalie Pace: The reason that many financial advisors, don't use this is that the system was set up on buy and hold which worked great last century.
00:35:56.130 --> 00:36:05.580 Natalie Pace: But that strategy has not worked at all in the 21st century, whereas modern portfolio theory with annual rebalancing IE my Easy as pie chart mystic strategies.
00:36:05.820 --> 00:36:15.270 Natalie Pace: Have worked brilliantly. So again, it's the ABC money that we all should have received in high school and no matter who employs you are where your money comes from protect your wealth.
00:36:15.780 --> 00:36:24.090 Sam Liebowitz: Right, it's really important to understand, like, if we just turn over our financial situation to a financial planner.
00:36:24.420 --> 00:36:34.830 Sam Liebowitz: You know their goals know again I'm not, I don't want to dis all financial planners out there. But, you know, they're also like sales people right they need to make money. So
00:36:35.250 --> 00:36:50.430 Natalie Pace: Prior to sales people. They are hired as salespeople. I think that's something a lot of people don't understand, like, if you read the job description for, you know, financial advisors who work for these major brokerages that the job description, very clearly is sales.
00:36:51.030 --> 00:36:58.560 Sam Liebowitz: Right, exactly. And so if we educate ourselves that it actually is possible. I think sometimes people get intimidated.
00:36:58.950 --> 00:37:04.620 Sam Liebowitz: By all the different investment choices and what should I do. But actually, if you educate yourself.
00:37:04.860 --> 00:37:16.710 Sam Liebowitz: You can be empowered to be your own portfolio manager without having to be a day trader without having to look at the computer every single day, but just kind of checking in and being a little more responsible
00:37:16.890 --> 00:37:25.440 Sam Liebowitz: And that you can actually have a lot more power over your own financial well being, as opposed to just giving it over to somebody else.
00:37:25.590 --> 00:37:35.250 Natalie Pace: And can I say how easy it is guys on my website at that free web app, you can create your own personalized pie chart by answering three questions.
00:37:35.610 --> 00:37:47.010 Natalie Pace: And it's basically 10 slices and how do you keep enough safe. So it's not difficult. A lot of people, even when you start thinking of reading books or blah, blah, blah.
00:37:47.310 --> 00:38:01.050 Natalie Pace: You can personalize your own diversified and protected pie chart in about five minutes. Now, of course, you do want to know why you're doing that, but perhaps the biggest reason why you're doing that is that works.
00:38:01.500 --> 00:38:14.790 Natalie Pace: And buy and hope doesn't work. So why not use a plan that works and is time proven in the 21st century, rather than one that worked great. In the 20th century, or worked pretty well in the 20th century, but hasn't worked at all in the 21st century. Right.
00:38:14.850 --> 00:38:19.830 Sam Liebowitz: And and I just want people to understand that, you know, Natalie is
00:38:20.550 --> 00:38:26.160 Sam Liebowitz: Very tuned into what's going on in the world today and
00:38:26.490 --> 00:38:28.140 Sam Liebowitz: Behind sort of the
00:38:28.470 --> 00:38:33.930 Sam Liebowitz: rhetoric that the the finances and the political people are saying because I remember
00:38:34.290 --> 00:38:35.070 Sam Liebowitz: Back in
00:38:35.430 --> 00:38:41.790 Sam Liebowitz: Was it February or March, you said that, like we're in a recession before anyone else said it.
00:38:42.000 --> 00:38:52.710 Sam Liebowitz: You were saying we are in a recession, but you're not going to hear about it in the mainstream media because it takes at least two quarters of negative growth to call it a recession and and now
00:38:53.280 --> 00:39:00.240 Sam Liebowitz: Some of the things I'm starting to hear. Is it it's a recession, on the order of magnitude potentially of the Great Depression.
00:39:01.320 --> 00:39:12.930 Natalie Pace: Yeah, and thank you. Yes, I read data statistics. I've been studying this for 20 years Nobel Prize winning economist wrote the foreword to my first book I MacArthur Genius wrote the
00:39:13.350 --> 00:39:17.760 Natalie Pace: foreword to the ABC money for college. I'm blessed to have these
00:39:18.570 --> 00:39:28.680 Natalie Pace: These very, very bright and people that like hitting the ball over the net with me. So when I am confused about something that's why call, Hey, what do you think about this. Sometimes I have them on a show.
00:39:28.920 --> 00:39:38.430 Natalie Pace: But the, the interesting thing is that, you know, you said I was saying that in February. Right. I was, and they have identified the high. So the beginning of their session.
00:39:38.880 --> 00:39:48.600 Natalie Pace: It has been identified as February 19 of 2020 and that was announced in June. So yeah, we knew it. And by the way, it wasn't just me that know that knew that, then
00:39:48.870 --> 00:39:54.870 Natalie Pace: And I do understand the politicians job. Their job is to try to keep us optimistic. Their job is to keep us
00:39:55.410 --> 00:40:14.430 Natalie Pace: To try to keep the economic engine rolling. But I think as an individual, your job, also, is to understand the risks of buying high the risks of not properly diversifying the risks of, you know, believing the mainstream media rather than having a plan that will work either way.
00:40:15.420 --> 00:40:24.750 Sam Liebowitz: Right. Right. And this is one of the things, and why I respect you so much is because in the past recessions that we've had you've actually
00:40:25.020 --> 00:40:28.890 Sam Liebowitz: You know, had strategies, very simple strategies that worked.
00:40:29.220 --> 00:40:38.250 Sam Liebowitz: That actually people. Well, most people were losing value in their portfolio, the people who work with you actually gain value in their portfolios.
00:40:38.430 --> 00:40:49.890 Natalie Pace: Yeah, and. And again, these were not genius people. I mean, I'm I respect them and I love them. I you know I almost like a mother hen now but um they were you know plumbers.
00:40:50.250 --> 00:40:59.520 Natalie Pace: Office administrators it sometimes someone would stop me in a restaurant, and I would just draw a simple pie chart on the napkin and said, Do try this, you know,
00:41:00.240 --> 00:41:03.960 Natalie Pace: And of course they were reading my books. That's why they stopped me in a restaurant but
00:41:04.380 --> 00:41:14.100 Natalie Pace: It is easy as a pie chart, it does work, it is properly diversified if the markets go up, you make money. If the markets go down you protect your assets. So it's a little bit
00:41:14.370 --> 00:41:21.030 Natalie Pace: More difficult this time because we actually have an unprecedented recession and we have very low interest rates so
00:41:21.990 --> 00:41:23.940 Natalie Pace: It is a little trickier to get safe.
00:41:24.420 --> 00:41:34.380 Natalie Pace: But we can do do things about this. So I think it's really important to educate yourself. I think it's really important. Again, if there are four takeaways in all of them are key.
00:41:34.650 --> 00:41:41.700 Natalie Pace: And if I were you, I would do them all now as my primary job, even if I were lucky enough to still be working full time, I would still
00:41:41.910 --> 00:41:49.920 Natalie Pace: Make this a primary job right size your budget conserve your capital, make sure you can afford your home do an equity check on your home.
00:41:50.160 --> 00:41:58.020 Natalie Pace: Diversify and protect your nest egg and do not just drain your retirement dry to try to stay in your current situation.
00:41:58.890 --> 00:42:11.610 Natalie Pace: Because the odds that what's coming up before us is going to be challenging is extremely high. No matter what industry you're in, even if you're in the medical care industry.
00:42:12.300 --> 00:42:21.840 Natalie Pace: They're still going to be a lot a lot of things, there's some things that may go down in price, but a lot of things like even basic needs like food are
00:42:22.200 --> 00:42:28.170 Natalie Pace: Expensive medical insurance very, very expensive housing is still extremely expensive. So
00:42:28.680 --> 00:42:38.940 Natalie Pace: The big ticket items are still very expensive cars are still very expensive, although of course you can finance them for zero, probably because they want you to buy that car, you know, because nobody's doing it.
00:42:39.780 --> 00:42:46.500 Sam Liebowitz: Right, so we just have a couple of minutes before our next break. I just wanted to ask you specifically for like business owners.
00:42:46.920 --> 00:42:52.740 Sam Liebowitz: Um, you know, one of the things that I see people doing is going after.
00:42:53.430 --> 00:43:01.050 Sam Liebowitz: loan money now like they they need to they're going after in the show they necessarily need to but they're going after these low very low interest loans.
00:43:01.560 --> 00:43:11.250 Sam Liebowitz: To keep going. Meanwhile, they're negotiating with their, you know, commercial landlord because they're not using their office and stuff. But this is all money that they're eventually going to have to pay back
00:43:11.460 --> 00:43:14.820 Sam Liebowitz: And sometimes I think that people don't quite realize that
00:43:15.060 --> 00:43:18.030 Sam Liebowitz: Once we get to the point where things
00:43:18.090 --> 00:43:27.240 Sam Liebowitz: I don't wanna say normalized because I think we're we're moving into just brand new territory. But I mean, eventually it's going to come to the point where you have to pay back all those loans.
00:43:27.360 --> 00:43:34.110 Natalie Pace: Yeah. Well, I think that actually taking as much money as you can. Right now, it's not a bad idea.
00:43:34.680 --> 00:43:40.410 Natalie Pace: Because the PPP loans. If you fought dot your i's and cross your t's will be forgiven.
00:43:40.890 --> 00:43:51.660 Natalie Pace: And the small business loans are 1% and our payback time is over 30 years. So I do think that shoring up like most businesses most corporations right now are
00:43:52.260 --> 00:44:05.010 Natalie Pace: Adding to their war chest. So consider it a war chest but the other side of the equation, should that just be go and turned over 100% to commercial real estate that you're not using. No, I think you really do have to
00:44:05.670 --> 00:44:13.980 Natalie Pace: Take a look at your business if your business is not going to survive the next six to 12 months and you're just taking that loan to
00:44:14.640 --> 00:44:24.930 Natalie Pace: Support a business that really needs to be rethought I think you have to do I, if I were you, I would try to do both. Now having said that the paycheck protection plan.
00:44:25.200 --> 00:44:31.050 Natalie Pace: The end. The cares act each one of these things does have certain things that you can and cannot do.
00:44:31.380 --> 00:44:42.240 Natalie Pace: And if you don't do them properly, then you're going to be in a different category than you know alone. That's forgiven, or one that's 1% for 30 years. So you have to balance that but i think that
00:44:42.720 --> 00:44:56.640 Natalie Pace: A lot of small business owners saddling a finding them themselves in position where in a post pandemic world their business plan might not be as viable. On the other hand, I'm seeing other entrepreneurial types.
00:44:57.390 --> 00:45:06.510 Natalie Pace: My son just called me with a proposition that he and his friend are doing. And he lives in Hong Kong right now. And it sounds like one of the best ideas I've heard
00:45:07.440 --> 00:45:16.290 Natalie Pace: Since you know electric cars that Tesla was doing that was going to, you know, be able to beat the Porsche in a in a race. So
00:45:16.680 --> 00:45:26.340 Natalie Pace: It's a great idea. So there is opportunity because of the shift of our lives. You've seen it. You're seeing that in zoom technologies you're seeing that and Beyond Meat
00:45:27.030 --> 00:45:29.070 Natalie Pace: And you're seeing that in
00:45:30.570 --> 00:45:37.320 Natalie Pace: In restaurants that have pivoted to being able to be drive thru drive thru restaurants are
00:45:37.740 --> 00:45:42.690 Natalie Pace: Did not suffer nearly as much as anybody else in Santa Monica. We're seeing that restaurants have
00:45:43.020 --> 00:45:51.720 Natalie Pace: outdoor seating. The city has enabled them to create outdoor seating on the street. They put pylons there because nobody's driving on the streets.
00:45:52.140 --> 00:46:01.830 Natalie Pace: So, you know, you really have to be very creative. If you think that your business model is good. Um, you know, once you get past
00:46:02.550 --> 00:46:10.920 Natalie Pace: You know all the phases of the shutdown then think about what you're going to do between now and then, because if it's going to be zero income.
00:46:11.220 --> 00:46:21.750 Natalie Pace: And you're going to burn through all your capital than it, it's not a good idea. Even if it'll work in a year. It might be a better idea to shut it down and then open it up again.
00:46:22.800 --> 00:46:26.760 Sam Liebowitz: Okay, great. So it's time for us to take our last break when we come back.
00:46:27.540 --> 00:46:39.900 Sam Liebowitz: I'm wondering if we can look in the crystal ball a little bit and see if you have any ideas of what you think things are going to be like in the economy in the next 612 1824 months.
00:46:40.500 --> 00:46:46.170 Sam Liebowitz: Just to give us an idea of what to what potentially we could expect, of course, you know, nobody knows for certain
00:46:46.470 --> 00:46:47.880 Sam Liebowitz: But just some ideas. Okay.
00:46:48.750 --> 00:47:00.540 Sam Liebowitz: Wonderful Natalie. Thank you so much. You're listening to the conscious consultant. Our awakening humanity, we've been speaking THIS HOUR WITH NATALIE when pace, author of the book The ABC is of money and we'll be right back after this
00:48:54.240 --> 00:49:02.700 Sam Liebowitz: Welcome back to the conscious consultant. Our awakening humanity, we've been speaking THIS HOUR WITH NATALIE when pace financial expert.
00:49:03.000 --> 00:49:11.850 Sam Liebowitz: Financial Literacy expert and author of the book baby seeds of money and several other books as well. And just two things I want to mention real quick.
00:49:12.690 --> 00:49:19.980 Sam Liebowitz: First, if you're enjoying the show. If you think people need to hear it. Please share the video on Facebook, share the podcast. If you're listening on
00:49:20.370 --> 00:49:25.080 Sam Liebowitz: It on Apple podcasts or Google or Stitcher or Spotify and let people know
00:49:25.320 --> 00:49:37.980 Sam Liebowitz: And I do see on the Facebook Live loyal listener William is listening in. Hello. I see you came late, no worries. William glad you're with us. And the other thing, too, is I did recently in around the conversation we're having
00:49:38.160 --> 00:49:42.660 Sam Liebowitz: I did recently write a blog post on an article on LinkedIn.
00:49:42.930 --> 00:49:45.180 Sam Liebowitz: Called how I pivoted my business in three
00:49:45.180 --> 00:49:55.860 Sam Liebowitz: Days. And if you want to take a lucky doing just search for me, Sam Leibowitz on LinkedIn and, you know, just look for that article and you'll see how I pivoted
00:49:56.160 --> 00:49:57.510 Sam Liebowitz: The this whole station.
00:49:57.720 --> 00:50:02.130 Sam Liebowitz: Literally in a weekend when when the shutdown came here in New York City, um,
00:50:02.340 --> 00:50:07.350 Sam Liebowitz: So, Natalie. We have about eight minutes left to the show. I'm
00:50:07.410 --> 00:50:13.110 Sam Liebowitz: Just looking at. And again, you get a lot of financial information you get a lot of economic information.
00:50:13.530 --> 00:50:16.380 Sam Liebowitz: Where do you see things going. Have we like.
00:50:16.710 --> 00:50:23.580 Sam Liebowitz: Hit the bottom of our things of ours today as bad as they're going to get to think. Do you think things are going to get worse.
00:50:23.580 --> 00:50:26.220 Sam Liebowitz: Before they get better. What do you think we can expect
00:50:27.780 --> 00:50:37.860 Natalie Pace: Okay, so we're in a recession. It's unprecedented. It's probably not going to be a V shaped recovery. Many people think it might be what we call a W shaped recovery.
00:50:38.220 --> 00:50:52.710 Natalie Pace: But I think that history can inform us especially 21st century history. So I don't want to go too deep dive into data analytics, etc. But I think the big thing to take away is low interest rates, create bubbles.
00:50:53.250 --> 00:50:54.810 Natalie Pace: And when bubbles pop
00:50:55.080 --> 00:51:01.620 Natalie Pace: The downturn is severe and that is why we've seen real estate and stocks both drop
00:51:02.460 --> 00:51:13.500 Natalie Pace: Severely. So in the last recession, on average, real estate drop more than half. And so did stocks. Now you might say, okay, well is the stocks are high. Again, they're not as high as they were, although
00:51:13.800 --> 00:51:29.220 Natalie Pace: On the technology side NASDAQ is higher than it was. So the Dow Jones Industrial Average is not as high as it was, but it's it's recovered quite a lot. That's because the feds have been buying up everything. But that's not going to happen. Forever. They can't use this toolbox forever.
00:51:29.520 --> 00:51:31.770 Natalie Pace: So what tends to happen in recessions.
00:51:32.400 --> 00:51:47.700 Natalie Pace: Is that over an 18 to 24 month period that the market will do its job. And it's not like today, everybody was expecting that we were going to have this horrifically terrible GDP report, which is minus 32.9%
00:51:48.180 --> 00:51:54.630 Natalie Pace: Unprecedented the worst in history, but now they're saying that that's the worst. And look, the markets are still high. So everything's good. Right.
00:51:54.900 --> 00:52:09.690 Natalie Pace: Well, not necessarily because over the next 18 to 24 months. Some of those companies that borrow too much money are going to have to restructure their debt when debt is restructured the stock goes to zero the bond can go very badly as well so
00:52:10.290 --> 00:52:18.300 Natalie Pace: The truth of the matter is that most recessions, where the downturn in stocks and real estate comes
00:52:18.630 --> 00:52:28.530 Natalie Pace: Our event driven. So, we will see a company will declare bankruptcy and then the markets will fall that kind of other company will declare bankruptcy and people freak out in the markets will fall.
00:52:28.800 --> 00:52:36.930 Natalie Pace: And that's going to happen and it usually takes again about 18 to 24 months. So if the recession started in February of 2020
00:52:37.230 --> 00:52:46.830 Natalie Pace: Then you can expect between now and February 2022 that it's going to be a very rocky ride for stocks and that, in general, the trend would be down
00:52:47.100 --> 00:52:55.260 Natalie Pace: So you don't want to have over invested in stocks. The sad thing is that bonds are doing just as badly because they were over leveraged
00:52:55.590 --> 00:53:03.360 Natalie Pace: Over half of the s&p 500 is that the lowest rung just above junk bond status. So all of this loss of income has made a
00:53:03.720 --> 00:53:11.070 Natalie Pace: boatload of those perilous downgrades like Ford Motor Company, which was downgraded to junk, even before the Great Recession.
00:53:11.430 --> 00:53:20.250 Natalie Pace: So what I would say to you is that there's no alternative. You have to get properly diversified and you have to know what's safe in a world where bonds.
00:53:20.580 --> 00:53:25.650 Natalie Pace: And money market funds are actually losing money money market funds are dangerous, because
00:53:26.310 --> 00:53:32.910 Natalie Pace: They have redemption gates and liquidity fees. That means they can prevent you from getting your access to your money or they can
00:53:33.240 --> 00:53:38.220 Natalie Pace: charge you for access to your money and that is only going to happen if they get into trouble, but
00:53:38.790 --> 00:53:48.540 Natalie Pace: That happens in recessions is that money market funds can get into trouble. So don't want to scare you, I want you rather to lead from wisdom, rather than blind faith.
00:53:48.810 --> 00:53:57.090 Natalie Pace: Rather than faith in a system that hasn't worked in the last two recessions and is unlikely to work in the next recession in terms of real estate.
00:53:57.900 --> 00:54:03.450 Natalie Pace: People are tempted to buy because again the interest rates are so low, and you can get a decent
00:54:04.380 --> 00:54:13.800 Natalie Pace: You know, monthly, you know, monthly payment. But again, if you buy a real estate high, even if you can afford it and the value goes down significantly.
00:54:14.070 --> 00:54:22.440 Natalie Pace: Then you could be really in trouble because it's underwater. Your FICO score gets into trouble because now your debt is much higher than your assets.
00:54:22.680 --> 00:54:29.010 Natalie Pace: So it's never a good idea to buy high so be careful about buying high and if you did buy real estate in the last couple years.
00:54:29.310 --> 00:54:40.350 Natalie Pace: Make sure that you're not just thinking, oh, real estate never goes down in my area. We've all heard people say that well in New York real estate's already dropped by 9%. Is it affordable yet no
00:54:40.650 --> 00:54:49.350 Natalie Pace: It's in most New Yorkers, we'd have to spend 75% of their salary in order to buy something, even with a 9% drop so
00:54:49.890 --> 00:55:02.700 Natalie Pace: You know, things do become affordable. I remember very affordable prices right after 911 so it got we're not gonna, you know, God forbid that we have worse than the pandemic, but
00:55:03.240 --> 00:55:11.130 Natalie Pace: There are a lot of companies that were over leveraged before we got into this and the lack of income is a big problem for them. Right.
00:55:11.310 --> 00:55:20.400 Sam Liebowitz: Right. Absolutely. Absolutely. And, and, you know, just keep in mind. And one of the statistics and I'm hearing a lot is people are starting to flee the cities.
00:55:20.880 --> 00:55:33.960 Sam Liebowitz: But they, I do believe eventually they will come back that, you know, like after 911. A lot of people left New York City because they didn't feel safe, but two years later when they felt, you know, more secure and more safe. They didn't start coming back to
00:55:33.960 --> 00:55:35.220 Sam Liebowitz: The city, but now I've heard
00:55:35.520 --> 00:55:40.080 Sam Liebowitz: The latest figure. I've heard is like close to 500,000 people have moved out in New York City.
00:55:41.160 --> 00:55:50.130 Sam Liebowitz: And we have a city of eight to 10 million people living in the area. You know that that's not insignificant but but
00:55:50.970 --> 00:55:54.810 Sam Liebowitz: Although prices have started to come down. I haven't seen a really sharp drop
00:55:55.770 --> 00:56:05.850 Sam Liebowitz: But again, not knowing how long this economic downturn is going to go on for and what the recovery look like. I mean, it seems to me, and we only got a couple minutes left.
00:56:06.180 --> 00:56:21.750 Sam Liebowitz: That there's a lot of sharp up and down. So it seems like there's a lot, especially in the last 20 years as a lot more volatility in the market, whereas before it be, you know, the, you know, slow build up to the highs and then losses and then slow build up.
00:56:21.960 --> 00:56:35.490 Natalie Pace: Yeah, that was never the over leverage that there is today. And that's why, because the basic thing is that we've had 20 years of low interest rates low interest rates, create bubbles. So before that we did not have these kind of bubblicious Bubble driven
00:56:36.420 --> 00:56:43.620 Natalie Pace: Economic expansions. So the bottom line is that real estate usually takes four years to hit its bottom to the high from real estate.
00:56:43.920 --> 00:56:53.790 Natalie Pace: Was 2007 the low was 2011 so it doesn't happen fast. Many times it takes bank. Sometimes it at least takes 90 days to foreclose
00:56:54.030 --> 00:57:04.170 Natalie Pace: In a judicial foreclosure state. It can take three years to foreclose on a homeowner. So it does take a while for him for real estate to come down to affordability prices.
00:57:04.470 --> 00:57:21.180 Natalie Pace: And just when you think you're in the Apocalypse. That might be the moment when we're starting the recovery. So stay tuned. And again, I hope that you can be a testament to your, you know, the people that are listening to you that it's not it's not a boring you know boot camp.
00:57:21.540 --> 00:57:31.380 Natalie Pace: And learning the ABC is of money is fun and empower it's more, it's actually a little bit. I always get the everybody so surprised that it's so much more fun than they imagined. So, yeah.
00:57:31.890 --> 00:57:39.270 Sam Liebowitz: And actually, I also love meeting some of the other people on the, on the, in the boot camp that like also the community around. It was very powerful.
00:57:39.480 --> 00:57:46.230 Sam Liebowitz: So we're out of time. Natalie let people know how can, where can they find more information. How do I get in touch with you. How did they learn about the next boot camp.
00:57:46.650 --> 00:57:58.980 Natalie Pace: Okay, so do go to Natalie pace.com and in fact if you register for our October third through fifth retreat by Friday, you get the best price because our early bird pricing in
00:57:59.430 --> 00:58:09.660 Natalie Pace: July 31. So again, Natalie paste.com if there's a banner ad there. If you click on it, you'll see the flyer for the ABC season money boot camp and
00:58:10.230 --> 00:58:25.710 Natalie Pace: Yeah, call us 310-430-2397 or email info at Natalie paste. COM. We'd love to have you. It's online. So you can join us from anywhere. It's very affordable. Considering how much you have at risk if you don't learn how to protect your well
00:58:26.940 --> 00:58:33.720 Sam Liebowitz: Wonderful, thank you so much. Natalie. I'm just putting your website into the Facebook Live stream. So people have it.
00:58:34.140 --> 00:58:45.720 Sam Liebowitz: Um, I highly recommend it. Again, I brought Natalie back on because I've gone through a boot camp myself. And if you want. Financial Empowerment. This is one of the best ways to get it so
00:58:46.080 --> 00:58:50.610 Sam Liebowitz: Thank you all for tuning in today. Thank you. Natalie for coming on board and just
00:58:50.970 --> 00:58:56.640 Sam Liebowitz: To let you guys know what's coming up next week because you know I like to have great people on here I have the co founder
00:58:56.850 --> 00:59:01.140 Sam Liebowitz: Of the heart math Institute, which is an amazing organization. We're going to learn about it.
00:59:01.350 --> 00:59:08.280 Sam Liebowitz: As well as what else he's been doing since he co founded it. So I hope you'll tune in for that. Please stay tuned. Coming up next is
00:59:08.490 --> 00:59:22.320 Sam Liebowitz: Ken Foster new show voices of courage later this afternoon, Antonio, with our show. So now you know. And this evening. Graham Dobbins and the show the mind behind leadership. Thank you all for tuning in. Take care, we'll talk to you next week.