💨 Velocity Banking 101: Mastering the Basics! 💸
Denzel Rodriguez walks through velocity banking basics using a case study of a mother with negative cash flow. He covers budgeting, cutting expenses, and increasing income before tackling advanced strategies. The core lesson: build a solid foundation and track your money accurately first.
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Hello and welcome, everyone. How are we doing today? Are we ready to get started? Are we ready to dive into the numbers? Are ready to run the numbers? Check the math.
Math.
Figure out the problems that we're dealing with in our finances so that we can finally take control and mastery over our finances so that this little thing in our lives can stop holding us back, can stop putting so many chains on us. Can we finally make that decision? To commit to yourself? I heard something profound recently by a gentleman by the name of Alex Hormozi. He was being interviewed by Dave Ramsey, and he said that so many people invest in the s and P500 when they should be investing in the S&ME 500. I thought that was profound. So that was a little bit of a paradigm shift for me. Or I'm like, oh, my goodness, this. This makes so much sense. We need to be investing in ourselves first. And sometimes people just say it in such a way that it just lands really clearly. And for me, that landed harder than when I tell my clients, you need to invest in yourself, right? You need to take time to pray. You need to take time to read the word. You need to take time to educate yourself on who you are and how you operate and how you think and how you behave and how you feel. And you need to develop what your relationship is with your money. You need to. You need to ask yourself these things, all right? But when he said that, he was like, people invest in the s and P500 when they should be investing in the S&ME 500. Think about how many Fortune 500 companies are within you. Just think about that. Think about how. Think about how much success is within you, yet you release control of your finances on a daily basis, weekly on a paycheck to paycheck basis. How much authority you lease out, how much authority you release out of your control in the hopes of getting a rate of return on your money. We need to be thinking differently about our money, okay? We've got to amp it up. You do not have a whole lot of time. You're gonna die, okay? You are going to die. So you might as well put all your might into developing who you are on this planet and how you bring value to this world. Because you're going to die. It's that simple. You are going to die. And when you are dead, that is it. You're done. Game over, right? So if you do not discover who you are on this planet today, figure out your purpose, figure out your why, develop the how so that we can Proceed on this planet so we can break these freaking chains of financial stress in your life and everything else that comes with it. You're gonna have to commit the time that it takes. You have to make a decision, folks. So today we're going to be looking at a case study. We're taking it back to the basics. Okay? I've been working with a lot of people lately that are coming across the velocity banking concept for the first time, and I think you're getting shiny object syndrome, Okay? I think you're, you're hoping that this, this strategy is going to save your life, and it's not. Okay? Velocity banking adds to your life. Velocity banking is a feature and benefit to your life. Velocity banking is an add on. It is an. It is the accelerator. It is the, the boost.
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It's the nitrous boost in the vehicle, but it's not the vehicle.
Okay?
We need to take it back to the basics. Been dealing with a lot of coaching calls recently with newer people getting into velocity banking, really messing up early on, making mistakes. And I think what's happening is you're. You're jumping 15 levels and you didn't even do step one, two, and three. You just went, you applied, and by the grace of God, you somehow got approved for your line of credit. You didn't even, like, look at the rules, and you didn't even follow any of the steps. You were just like, all right, I'm going to go get this HELOC because I have equity in my home. So you just went ahead and did it and you got approved and you got a 10.5% rate when you could have got maybe a six and a half, but you didn't do your homework, but you still got approved for the heloc. So you got this home equity line of credit, or you got this personal line of credit. You got this first lien heloc. You don't know what the heck you're doing with it. You're throwing a bunch of debt in there. You're borrowing it from it. You're fixing your roof and your home and this and that, and you're just going into more debt thinking you're under this spell. You're under this illusion that you're doing velocity banking and you are not. Okay? I'm calling out those that are trying to improve your personal finances, but you are backsliding into the habits that you already had prior to coming across. Velocity banking. Velocity banking is supposed to help remove the bad habits in your life. Just like debt snowball Just like Debt Avalanche. Just like Cash Flow Index. These strategies are to help you remove bad habits. But if you don't remove the bad habits and you throw a strategy on top of a bad habit, it's only a matter of time before it surfaces that bad habit and destroys the whole strategy. Okay, so remember, whatever strategy you are looking at in the social media world, right? Whatever strategy you are looking at to help your finances understand that that's just a strategy. It's going to add to whatever it is that you are already doing. So if you don't have a foundation built already. The basics, the foundations. You are going to crack the foundation by planting a strategy on top of it that cannot sustain because your foundation is messed up.
Okay.
We have to snap out of this illusion that velocity banking is going to save my life.
Right? Right.
And all this stuff or whatever the strategy is infinite banking, Right. Or even Debt Snowball, Debt Avalanche. These are just strategies. Add ons. What's the foundation? What are the initial steps? I need to really take the time on. I was going back and forth with a client. I'm like, I'm giving you the strategy. I was talking to a client. I was like, here's the strategy, but here's what you're doing wrong. Okay, let's just call it out. You're using your credit cards incorrectly. You need to stop.
Right?
You are running bills through a credit card with an existing balance on it. So you're paying 29% on top of your bills. So you are literally increasing your cost of living by using debt. That doesn't make sense. You need to stop. But I'm getting cash back rewards, Denzel. And I'm, you know, I'm trying to consolidate debt here. No, you don't have the strategy down yet because you don't have the foundation built. Build a foundation. I need to remove this tool from you. You cannot use this tool right now. Stop using this tool because it is hurting you more than it is helping you. So we need to temporarily remove the tool.
Right?
I was letting the client know this. I was like, you need to temporarily remove the tool for a period of time. I'm not saying forever, Right. For a period of time. Let's put this off to the side. You are abusing the tool.
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When something is being abused.
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When you are abusing something or you are being abused, okay. You are. Now there is a crack in your system. You are going to be broken. We need to fix that.
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So we need to put that tool off to the side and Say foundation, I make money, I spend money. If I cannot pay my bills without using debt, that can potentially mean that you are running a negative cash flow or your break even. So part of your foundation is knowing your numbers. Knowing your numbers and creating a gap between what you make and what you spend. Once we have the gap now, we can add a strategy. Say, what are we going to do with this gap of money, this cash flow? How can we best use these funds? So that's what we're going to. We're going to go in today. Velocity banking basics. Going back to the basics, mastering this, getting our finances in order.
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So we can be better stewards of our finances.
Okay.
Be better stewards. So we have 44 people in the house. No, 62. 62 and counting.
Okay.
If you're in the house, comment. Let me know that you're here. Comment. Where you're tuning in from. Comment. If you are a client, you're working with me. Put some testimonies of our experience together. Let people know the new people here so they can get comfortable. Your experience working with me, how long you've been working with me. If you're a new client, if you're a seasoned client, working me for a couple years, put that in the. In the comment section. I'm going to run through that and I want to welcome you before we jump into the case study that we have today. Eric, good morning, Conquering Care. Hello, Tammy, how are you? Benjamin, Good morning, Brother.
Aaron.
Good morning, Ronald, Good morning. God bless your day and thank you for your leadership and love of your community. Absolutely. Daryl, how are you, my friend from Chicago? Tuning in from Chicago. So we got Chicago in the house. Good morning, T. Lo. Good morning, Lisa. Nebraska's in the house. New to this concept. Okay, great. Lisa, tune into this. This is going to be very, very, very, very advantageous for you and those of you who are seasoned in Velocity banking. And you backslided. We paid off all the debt and then you went back into debt, but you went into debt incorrectly.
Right.
So you backslid or you were on a roll and then you backslid. This is gonna help you, right? Bridget, good morning. So we got LA in the house. Nebraska in the house. Chicago in the house. Kentucky's in the house. Good morning. Good morning. Care. We got Florida in the house. Just a viewer, but love the channel. Awesome, awesome. We're in Florida, my friend. I'm hosting a live event December 16th in South Florida, Fort Lauderdale. If you can come, that'd be an awesome opportunity to meet in person. So, Tammy you're new. Okay, good. We got, we got Maine in the house. Little Brandon got Houston, Texas in the house. Jeanette Kim, Good morning. Good morning. Awesome. Let those comments keep coming in and let's take our attention to the board. The basics. The basics. The basics. So I'm gonna, I'm gonna share foundation before starting Velocity Banking foundation and I'm gonna actually walk you through a case study where someone is not ready for Velocity banking. And I want to walk you through what we're planning on doing and I also want to make this interactive. I'm going to ask you, just going to help you exercise that, that muscle, that financial muscle. We're building up financial muscles, okay? So I'm going to ask you questions to interact. I'm asking you, okay, what would you do in this situation? In this situation, what do you see?
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It's going to help you say, okay, if I'm in this situation or if I was in this situation, I did this, here's how I could have done this, right? So starting with the four major numbers, that is the number one way to build a foundation for financial health, wealth and prosperity is to know your numbers. I had an interesting comment the other day where a person was like, hey man, totally unnecessary to be putting the sense in the numbers. You put the sense all the time. If you would just remove the sense and just round would make your board a lot cleaner and it would look a lot smoother and easier to follow. And I said, yeah, you know, you're absolutely correct. But in life that's not the case, okay? Life is messy, life is hard. So I'm giving you down to the penny finances because those of you who are business owners in the room, you understand every penny counts, right? And for those of you who skip over the pennies, for those of you who skip over the cents, for those of you around and do estimates and don't get accuracy in your finances, you're most likely an employee. You're most likely employee, you're not a business owner. You don't have that mindset yet, right? And this is the big difference. This is a huge difference between someone who is business entrepreneur minded from someone who is an employee. A business owner is always looking to reduce costs, improve efficiency, improve cash flow. With every dollar that they deploy into the marketplace, an employee just is looking for a paycheck. They're just looking for a roundabout number to get by so they are not paying attention to how much waste they do in a company because it's not their money, right? They're there to do a job and go home, okay? So for those of you who skip over the cents in your finances, those cents becomes dollars. Those dollars become hundreds of dollars, hundreds of dollars become thousands of dollars. You got to pay attention to the sense, okay? So that's why that is extremely important. That is why I share the numbers down to the penny. You will rarely ever see me estimate, right? In fact, I under underestimate people's finances, right? I overestimate their cost of living to create buffer. But. But I'm still getting the. The most accurate financial numbers, the debt numbers. Accuracy. Accuracy is extremely important. That is foundation number two, right? What was one? You need to know your numbers. How do we know our numbers if we round how can we know our numbers if we guess how can we know our numbers if we don't look at bank statements? You have got to look at a bank statement. Your bank statements. So if you are spending $457.89 on groceries, okay, don't put $400. Don't put 425. In fact, you should overestimate $500, right? And you look at track record. You go back 90 days up to a year in bank statements to develop an average.
Right.
Of those fluctuating bills. And then you have your consistent bills, right? If you have a consistent water bill and a consistent phone bill, right? If your phone bill is $121.86, put that. Don't put 120, right? Like you've got to get accurate with this. Foundation got to know your numbers, okay? Foundation number one, got to know your numbers. Extremely important. So here's the case study of a mom generating $3,042.38 per month. That is their exact paycheck, right? In a month, split up into two, that's how much they're generating down to the penny. Notice their expenses are $4,374.75. They are running a negative cash flow. Stop right there. Anyone in the room today. If you are running a negative cash flow, let me know in the comments. Denzel, I need help. I'm running a negative cash flow. Put that in the comments today. There's 80 people in the house so far, right and counting. If you are running a negative cash cash flow today, let me know. If you are willing to commit to yourself. Invest in the SM ME 500 instead of the S&P 500. If you're willing to invest in you, right, you can reach out through finance geek ministry. And I can be of service to you only if you're willing to do the work.
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I can't force you to do the work. I can't force you to call me. But if you're willing to yield to my authority, surrender what you think you know about your money, surrender what you think you know about money and finances and yield to a higher authority on financial wealth. Prosperity, expertise, finance geek ministry can be of service to you.
Right?
That is what this person did. Okay, so we are running a negative cash flow. If I'm running a negative cash flow before ever starting velocity banking, then we should not be doing velocity banking. Okay. That's like, hey, if you're gonna put a strategy on top of a, of a bad foundation, it's going to crack eventually. There might be some temporary gains, maybe, but you're going to eventually crack. Now, you may have seen myself, Christy, Van and some others do velocity banking case studies with negative cash flow.
Okay.
Often more often than not, that case study that they're showing, or I'm showing, the person was already doing velocity banking and, or they have a solid foundation and they just fell into hard times. Okay, so there's a difference between someone having a foundation and doing velocity banking with negative cash flow versus someone with no foundation and trying to force velocity banking to help them out of their broken foundation situation. Not going to work.
Right.
So, so the case here is this person is new. This case study right here, this mom is new to velocity banking.
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They invested in coaching with me. And because I know this information that they're brand new to velocity banking, I am not going to throw them into velocity banking and show them a strategy. I am working on building the foundation. What is the first obvious crack in the foundation that we see in this case study? Well, she is running a negative cash flow of $1300.
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Negative cash flow, $1332.37 per month.
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Total debt is 28,825 74.
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Doesn't sound like a lot compared to many of my other case studies where I'm like half a mil, 800,000amillion plus. But this is still a huge number in comparison to what they make.
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So we need to be conscious of that. I need to be aware of that. That's still a big number. This is the debt breakdown. This is the four debts that they have. These are the monthly payments, these are the interest rates, and this is what the debt is. So a car and we have three credit cards.
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So I'm going to give you all the Data about the person as I keep building the foundation. So this is what I'm going to work on. Right here is what I'm working on with this client and with anyone in the house here that is running a negative cash flow. You need to pay close attention.
Okay?
Pay attention. Velocity banking is not going to save you your foundation. Faith diligence in working to become who you are. That's a solution. That's a real solution. It's going to blow your mind what this mother is doing to improve her situation that many of you have so much fear around. Okay, so clearly the first problem is there is an income problem. They don't make enough money for the lifestyle that they are financing. Problem problem two, because of that lifestyle that they're financing, they've amassed debt. So they're running a negative cash flow. Problem two, negative cash flow.
Right.
We built a good foundation where they took the time to run their numbers to know exactly where they are at. That is a phenomenal step that I gave this mother recognition. Say, wonderful job for knowing your numbers, knowing where you are. That is. That is like 50% of the battle right there.
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So we just. We got one. One nice block in our foundation. Boom. Solid ground, right?
We got.
We got a solid ground here. Knowing our numbers. Beautiful, Beautiful. Know your numbers. We know we're at. We don't have a debt tool. That's another little piece that we're missing.
Okay?
We need to figure out primary goal right now. In addition to knowing our numbers, we need to figure out how can we spend less than what we make?
Okay.
How can we spend less than what we make? Anyone in this room here that is running a negative cash flow. Okay, Brian, close to running a negative cash flow. Lisa, Most months were negative. Robert, I'm running a negative cash flow. So you got three people in the house, plus the client on the board here running a negative cash flow or close to running a negative cash flow.
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Pay attention. This will help you tremendously. Please pay attention. Lisa, Brian and Robert.
Okay?
And my client on the board here. Just put velocity banking off to the side here. Focus on this. How can we spend less than what we make? And how do we get a good read on our numbers to know where we are at? Down to the penny, how much am I negative? Okay, so we solve for that. In this case, the way we're gonna solve for spending less than what we make here are. Here are our options. Okay, let's run through the options, what we got going on. And there's a multitude of things that we can do. And if you have any ideas, you can drop those in the comments as I go through what I'm going to share with you. And this is the interactive part, right? So before I go any deeper into these number into these things, we're just going to start here. All right, so now let me share with you the facts.
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Four debts, monthly payments, interest rates, what the debt is. We have a credit card with a zero balance. 9,000 is a credit limit, 0% for 12 months on balance. Transfers. There's a 5% fee to transfer debt from one location into another at 0%. Okay, we have savings. We have $8,610.16 in savings. So what they've been currently doing is a combination of pulling from savings and debt to make up for the 13, 32, 37 difference each and every month. So that's what they've been doing.
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Out of their whole entire cost of living. I identified bills that are wants, not needs.
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So they have these optional bills here that they are choosing to pay that they don't need to pay because it's an option. They will not die, they will not starve by not having these expenses.
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So we got shopping and entertainment, $100 a month, eating out, 50 bucks a month subscription, 51.65, gym, $51 a month, and they give tithe to their church, $304.24. Okay, these are bills that are optional.
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We don't need to be doing this. They want to do it.
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So could it be an option in your finances to identify the needs versus the wants in your finances? That's a foundation to recover, redirect cash flow back into your economy to help you eliminate debt and improve your overall financial situation. Okay, it's one option. We also have this credit card here with a zero balance. Could we maybe consolidate, move some debt around to recover some cash flow? Yeah, we can do that too. And then we have savings to essentially buy time. That's what they're doing, they're buying time, but they're running out of time.
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Not gonna be able to do that forever. And then finally getting that number up. How do we increase this number?
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We can ask for pay raises, promotions, bonuses.
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Leadership role in the company. Could we potentially switch careers? A lot of you are stuck financially because you're in a job or career position where you're not able to grow any further, you're not able to accelerate. So it might be worth your time to develop a new skill. This brain of ours we use less than 10% of it, right? Imagine if you increased your brain usage by 0.5%. You could develop a whole new skill and mastery in a short period of time that can increase your income by 2x, by 50%, by 4x, by taking on a new skill, by switching positions. That is what this mother is choosing to do.
Okay?
This mother, her current position is in accounting. Go figure, right? So they have a job in accounting tracking numbers, and their numbers ain't too hot. So that position that they have does not supply the lifestyle that they, that the mom desires, Right. This particular case study and where she's at, she's currently capped. She just got a raise recently, right? So we're at 46,000 a year and they just increased to 50,000. And they found an opportunity to go through a boot camp that's gonna give them a certification, I believe that will give them a starting position in the tech space. Anywhere from 70 to $80,000 a year, right? So we're currently making 50,000 a year in 2023 in this case study, right? 50,000. And we have the potential to increase our income by nearly 25% to go from 70 to 80K. And we're looking at that estimate in about six months, finishing the boot camp. Once it's done, then they put applications in for a job. And I would say roughly within six months we could be generating more income. Right Now a discipline action in your foundation is to maintain your cost of living, maintain your lifestyle when you get an increase in pay. So when your income increases, how can we maintain that cost of living? Why do we need to increase our lifestyle whenever we get a raise? Why do we feel the need to do that? Why do we feel the need to do that? What is up with that whole who are we trying to impress that isn't even paying attention to you, right? Who are we trying to get to? Look at us that isn't even paying attention to us. To impress someone that's not even going to be impressed.
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So let's figure that out. Foundation numbers spend less than what you make. When we increase the income, when it eventually goes up. Maintain lifestyle, maintain cost of living. So when I go from 70 to 80k within 6 months or less, in this particular case, their income will be higher net than 4374,75.
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So just that move alone, if we don't do anything else, that move alone puts us in a very, very, very positive cash flow position.
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Extremely important. So now some strategy. Now here's. Here is strategy. Now, okay, Building foundation. But now here is strategy that is going to help with this one move. Not even talking this stuff yet, Right? These are steps to prepare for velocity banking.
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To qualify for velocity banking. But without even getting there yet, just still staying on here, spending less than what you make. How do we add a strategy to that to improve that?
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What can we do?
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I want to see where your minds are going. We got savings. That's an option. We have this 0% credit card for $9,000. 0% for 12 months. Balance transfer fee is 5%. We have these optional bills here. What are you thinking?
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This is the interactive part. I want you to comment. What would, what would you tell this person you're helping? This is your mom, right? Pretend this is your mom. What are you going to tell her?
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How are you going to help her?
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What are you going to say? This is, this is six months out. This isn't, this isn't right now.
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This isn't happening right now. That'll eventually happen. So between now and then, how can we improve her situation? How can we reduce negative cash flow as much as humanly possible to a positive cash flow position? How do we get there? I'll give you some time to answer.
That and.
I'm gonna scroll because I think I saw some comments. Me see, we got UK in the house. Awesome. Harry's also running a negative cash flow. Okay. Four people in the house running another cash flow. Seraida. We were way too close to negative cash flow. And I know in some months we're definitely there. It's a horrible feeling. After starting velocity banking, we created a $240 cash flow cushion. Wonderful. Wonderful.
Okay.
Darrell says remove shopping, entertainment and eating out at minimum if they are not consistently going to the gym three to five days out of the week, temporarily.
What?
Take that membership out? Is that what you're saying? Okay, cool. So that was three things. So if we take out shopping and eating and the gym, that is $201 back into our economy.
Right.
So I'm still negative eleven hundred dollars.
Right.
But it's better than thirteen. Daryl says I'm assuming they are no longer contributing to their savings. Correct. But are only withdrawing from the savings. Correct? Correct. That's how they're getting by right now. Savings. And they pretty much are nearly maxing out the, the credit cards as well. So they have been pulling from the credit cards to help. Do they have any bills that will be ending soon? Is this person a parent? That is a yes. We're dealing with A mom. They. They do have daycare, so there aren't any bills ending as of right now. That will increase our cash flow. So that's not the case. Okay. Tilo says cancel subscription, put the gym on hold, reduce eating out. Okay, great. So you guys are focusing on those optional bills. That's good. That's good. Possibly pay off one credit card to increase cash flow and transfer 1 to two other credit cards to the 0% to lower the monthly payments. We're getting somewhere. Darrel. I like it. This is why you're going to be a great financial coach. Caleb says pause the tithing to the church. I agree with this. I agree with this. This is gonna. This is gonna. This is gonna. It's gonna feel a little weird for the faith people in the room here. Like, wait a minute. Is he telling people not to tithe? Oh, my God. Oh, my God. Yes. Yes. I am saying that. Here's why. You may be able to tithe for a period of time in negative cash flow position. Eventually you're either going to reduce that tithe, eventually you're going to resent the tithe and giving that you're doing to the church. And eventually you will not be able to give because you haven't fixed the. The foundation.
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To be effective in giving, one must have production in order to give, one must be fruitful in order to pour into someone's cup, one must have liquid access to resources to pour into another. Do we get that? That is a principle. I cannot give what I don't have. I can't. I can't give what I don't have as a principle. So if you're giving to your church and your negative cash flow, where are you giving from? Opm. You're using other people's money to give a percentage based off your income to God and God's like, wait a minute. Could that be interpreted as stealing? Oh, dear.
Yeah.
Think about it. If you got a farm and I got a farm and we're neighbors, and your farm was fruitful in a particular season, and my farm was not. It did not produce any fruit. And it's time to now give first fruits to Christ, to God. But I didn't produce any fruit. And I'm under this spell, illusion by my pastor and my people around me that I. I have to give. It's the law and all this stuff. But my. But my farm did not produce anything. But my neighbor produced. So let me pick from his tree, let me take from his tree, his farm, or let me borrow.
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Because Stealing is, you know, taking is a little bit. You know, that's like a double sin, right? So instead of. Instead of taking and stealing from my neighbor, let me just ask my neighbor for some money, right? And some fruit. And I'm gonna take that fruit, I'm gonna feed myself, and then I'm gonna give a portion of that to God. What are we doing, folks? Are we. What are we doing? Is this why so many Christians are broke out of their mind and stuck? Because of what people around you are doing? What about this? Here's an idea. Hey, Father in heaven, speak to me. I come to you. My farm, my household economy is not producing. I'm running a negative. I owe you everything. Father in heaven, you own everything. I owe you everything. So here's what I want to do. Here's my plea, right? I owe you this, Father, 10%. Let's say that's the number you're using on a monthly basis based off your income. But I'm not able to give that right now, Father. So by redirecting what I would give to you, Father, I'm going to put that into paying off the debtors in my life, to paying off the institutions I owe money to, Right? The lenders, I mean, not the debtors, the lenders. Okay? So, Father in heaven, almighty, supreme beating. You don't need my money. I know you don't need my money. This is a matter of faith, right? You're not going to lose sleep if I don't give, okay? We're just being real here. We're talking conversating. Let's figure this out. So you're praying, having a conversation with the Father, and you're saying, I'm going to redirect this to pay off these lenders, these institutions, and what I don't pay you now in this season, I will pay back when my house, eventually, my farm eventually produces that harvest in excess. So If I'm given $304.24 a month, and let's say it takes us a year to get into a positive cash flow position, well, what can we do? We can take that 304, 24 and times it by 12, right? And we can keep track of the months that I did not give. Just keep track of it, right? And then when I finally get into a positive cash flow position, then I can begin to give to the Father, give back what I owe and then some, Right? Because it was a 10 in 2023 and then 10 in 2024. So you're doing a makeup contribution back to the Father, back to the church. Could that be a potential solution? I don't know. Pray on it, Let me know.
Right.
There's some scriptures that can back me up on this. In situations where, where in agricultural times when they did not produce in that season, it was nothing to give, right? And then when the next season came along and then there was fruit, they gave based on last year, what they would have produced. And plus this year, bam.
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That's a possibility. So I like Caleb being bold. Say pause the tithing to the church. Harrison says, eliminate the optional items except tithing. Totally get it. Listen, I get it, I get it. Because we've been taught, right, in the church that if you, you know, you stop tithing, you're gonna, you're gonna cancel your blessings. God's not gonna help you, right? I know people been told this. I know it. When you stop the tithe, you're not trusting God anymore. You're not relying on him in faith. But yet there's another scripture that says that if you don't leave an inheritance for your children's children, you are worse than a non believer and an infidel. And you've denied the faith. Whoa, what's that about? And it talks about the provider, man or woman in a household providing for your family, taking care of them. Got to get your house in order, right? So I get it, I get it when people say, no, no, no, no, no, no, no, no, don't cut the tithe, don't cut the tithe. Whatever you do, don't cut the tithe. But let's break the math down. They can't tithe. They're taking from opm. Y' all get that when you're in a negative cash flow and you're giving to the church, you're not giving to the church. You took opm, other people's money, you borrowed. It wasn't your production, it wasn't your first fruit. What are you doing?
Right?
So that's, that's where I'm like, hey, let's run these numbers real quick. Could they pick up another part time job? Could be, could be. That's another option. I like that. But the thing is, in this particular case, instead of doing a part time job, they're actually replacing their full time job with another full time job that's going to increase their income by upwards of 25%. But that is a good thought too, Ms. D. Good thought. Kerry says put the optional payments onto the credit card with no balance. Pay off the minimum payments so that you can save cash. Once you have a cash cushion, start slowly paying off debt with cash flow. Well, let's run that, Carrie. So you're saying put. Let's, let's run that. Let's see what Carrie's saying. Because for me, that's, I'm confused about something there. So what you're saying, Carrie, is take this hundred plus the 50, plus the 5165, plus the 51, plus the 30424.
Right.
So it's $556.89.
Right.
So, Carrie, you're saying put the optional payments onto that credit card. It's going to be at 0%.
Right.
With no balance. And then you say pay off the minimum payments so that you can save the cash. So you're saying paid the minimum monthly payment on 556.89 per month, every month moving forward.
Right.
Let's do. It's probably gonna be, say like 1.5% of the balance.
Right.
So it'll probably be more than that. I'm pretty sure. Yeah, it'll probably be like a $25 payment. That's usually what credit card companies do. There's usually a minimum. It's not gonna be that low of a payment. So you're saying it'll probably be like somewhere around that minimum payment.
Right.
So what happened is we took 5, 5, 6, 89 and then say minus the monthly payment, so we're netting 526.89amonth. So you do 5, 26, 89 minus 13, 32, 37.
Right.
That's what you're saying to do. And you're saying to save the cash. Save the cash. Once you have a cash cushion, start slowly paying off debt with the cash flow. Problem is I'm still negative. Right. So 1003, 3 2, 37, minus 556.89. So we're still negative $775.48. They're either going to have to pull 775, 48. From where? The same credit card or savings in your strategy. So we're, you know, we still, we're not going to be able to create a cushion.
Right.
Because I'm still negative 775 48. But that's still good. I mean, it's still better than nothing.
Right.
So I'm not saying you're wrong, Kerry.
Right.
There's definitely more that we're gonna need to do or maybe there's another way of doing it. But even if we just did what Kerry Said we're still in a better position than before. Than before. And we're basically buying time to get that job to be making more money.
Right.
Roxanne said, I wouldn't eliminate tithing, but maybe temporarily decrease. Cool. That works too. Either that or cancel optional spending to save cash flow. I do like that a little bit more than putting that on the credit card.
Right.
T. Lo says it's easier to reduce expenses and possibly do a balance transfer for 0%.
Okay.
Instead of tithe, invest into the stock market or pay bills.
Right.
So this is something that we're told, Kerry.
Right.
This is what we're told. Instead of tithing.
Right.
Instead of giving, instead of paying off debt, invest into the stock market.
Right.
And what's funny about that is, again, going back to not having a clear foundation. This is just a question. Does it make sense for me to release the little money I do have in my economy? They don't even have money.
Right.
In this situation, they don't have money. They're negative cash flow. They don't have money.
Right.
Does it make sense for me to invest in a stock market of which I have no knowledge of and hope and pray for a rate of return? That's essentially what I'm doing. I don't know what the tax implication will be. I don't know what the fees are. I don't know what the rate of return will be, let alone the internal rate of return. And I am exposing the little money I do have to potential losses. I want you guys to think about this. People like me in suits, financial advisors, right? Even though I'm not an advisor, but I'm just putting myself in that. In that batch there of financial gurus and influencers. And they're always telling you to do something with your money and put it over here and put it over there. Very few, very few are saying, invest in the S&ME 500. Most are just telling you to invest in the S&P 500. Again, this goes back to my point. Can we invest in The S&ME 500? Think about that. That is a paradigm shift. Think about it. All right, pause. My tithing. And it hurt. But God is not the author of confusion. I can't give from a cup with large holes in it.
Ooh.
Roxanne said, good point.
Oh.
Darrell said it in such a way that I was like, yeah. You know, I feel that. I feel that Emily says could also give time or talent to make up for the reducing of the tithing. That makes sense.
Wow.
Yes. Denzel Also asked the father. Yep, yep. You said pause all optional expenses, freeze up the 556.89 and extra cash flow, pay off Capital One card with her savings. Okay. She is now has extra thousand, take 2000, pay down Chase.
Cool.
Let's run that. Let's run that. Right, let's see. So. So if we pause all optional expenses, that's 556.89.
Right.
Then Darrel says to pay off capital one with her savings.
Right.
And take 2,000 and pay off a paid down Navy Fed.
Right.
So 8,610 16, minus 4,006 6283.
Have.
We'll have 3,947 33 left. So if we pay that now we got 465 42. And then he said just take two grand instead of paying it all off. Which let's just. I'll just add to it. Because I said why not? Why not just pay it off, right. Instead of 2000 so I can get the 52, just pay the whole thing off. So minus 2000 41836. So now that's 15 2897. We were negative 1332 37. So we'll have a positive 196.60 in cash flow.
Right? Right.
You had said she is now she now has extra 1022 31.
Right.
And that was just paying off capital and then cutting all expenses.
Right.
So when you minus the gain from the negative, when it's all said and done, we're at a positive 19660 and we still have some money left over in savings.
Right.
So it was 8610 16, minus 4662 83. Minus 200418 36.
Alright.
So we still have $1528.97 in savings if we do what Daryl says.
Right.
If we do what Darrell says.
Right. And.
What'S even cooler is we did with what Daryl said, we didn't even use the credit card.
Right, Right.
Didn't use the credit card. But this assumes, this assumes that we cut all optional. This is not an easy thing to do.
Right?
This is not easy. This is going to hurt.
Right.
But if client is willing, then they can see a positive cash flow within 30 days immediately. And then they can take that 196.60 and apply it towards the vehicle to start paying that down right now if that's the case, the next step I would do if I did this.
All right.
If I'm, if I'm this client with this numbers and I follow what Daryl said then with, with a slight velocity banking move, I could also just move 5.69 into 0%, get the 42743 cash flow.
Right.
Pay the 5% fee that it costs to move that, throw it in there, and that's an additional cash flow gain. Pay the monthly minimum payment on that credit card, then direct my attention to Chase.
Right?
So I'll have 427.43 minus the monthly minimum payment in here, plus 196.60 going into here. So it'd be 427 plus 430 plus 196.60, minus whatever that monthly payment is on the card.
Right.
So if I did that, that'd be 790112 times 5%. So that's 395.0519660. And we still have some money left over in savings.
Right.
So it was 8610 16, minus 4662. 83 minus 2004 183-36. All right, so we still have $1,528.97 in savings if we do what Daryl says.
Right?
If we do what Daryl says.
Right. And.
What'S even cooler is we did with what Daryl said, we didn't even use the credit card.
Right, Right.
Didn't use the credit card. But this assumes, this assumes that we cut all optional. This is not an easy thing to do.
Right?
This is not easy. This is going to hurt.
Right.
But if client is willing, then they can see a positive cash flow within 30 days immediately. And then they can take that 196.60 and apply it towards the vehicle to start paying that down right?
Now.
If that's the case, the next step I would do if I did this, if I'm this client with this numbers and I followed what Daryl said then with, with a slight velocity banking move, I could also just move 5.69 into 0%, get the 42743 cash flow, right? Pay the 5% fee that it costs to move that, throw it in there, and that's an additional cash flow gain. Pay the monthly minimum payment on that credit card, then direct my attention to Chase.
Right?
So I'll have 427.43 minus the monthly minimum payment in here, plus 196.60 going into here. So it'd be 427 plus 430 plus 196.60 minus whatever that monthly payment is on the card.
Right.
So if I did that, that'd be 790112 times 5%. So that's 395.05.
Right.
395.05 plus 7901.12. So we would owe 8296 in this 0% credit card times 1% of the balance. Monthly payment is $82.96. So they saved 42743 minus 82.96. So they'll net 34447 cash flow plus 196 60. So they go to 454107. 54107 on top of 430 monthly payment on Chase.
Right.
So 54107 plus 430 they would have $971 and 7. Whoa, whoa. It's a good move, Darrell. See that? That's a solid move, my friend. Mr. Burnett, look at that. This is why you're gonna be a great financial coach one day. When you, when you step into that, you start creating content, you start educating folks. What a move, right? You just took them from negative 133237 to positive 97107 without increasing income. That is powerful. You see, folks, for those of you who are running a negative cash flow when you, when you work on the foundation, we did not do any velocity banking here. Barely.
Right?
Can you imagine when we eventually do throw velocity banking on this thing is like, you know, go fast. But look at that went from a negative to a positive. We're talking 30 day window here. But what do they have to do to make that happen? They got to cut this, right? They really have to cut that. So that was one. That's one option. One option. One option. One option. I'm going to share with you what the client and I discussed that involved not removing any optional bills.
Right.
And what that would look like. So we ran that. We also talked about reducing expenses a little bit, but we also talked about could we have the. Could we extend the time as long as possible before you transition to that new position? Now, here's the difference of what I'm going to share. What I'm sharing is making a bet. It's a bit of a risk, right? She may not get that increase in pay. She may not get that. So, Darrel, what you did is you created a guaranteed solution whether she gets the increase in her job or not. You literally just showed her how to spend less than what she makes based on what she makes. Today, not a. Not future money.
Right.
So what, what Daryl just presented to us, I would argue is the best guaranteed option for improving this client's foundation.
Right.
To basically hit the reset button on all the optional bills that we have, use the savings that we have on hand to eliminate some debt, get a guaranteed cash flow recovery and a guaranteed interest savings. So she used her savings to save more money.
Right.
That's what happened. And then I added, right, because without even doing what I said to add, we're at. We're at a positive $196 and 60 cents in cash flow.
Right.
And if adding what I said brings, we rotate the car and do a balance transfer. Pay off the car in full, stick it in the credit card, pay the 5% fee, get the 427 and now you got $971.07 that is going towards the next debt. So we eliminate three debts in a span of 30 days.
Right.
And then we're focusing on paying off that one debt, which is the Chase Credit card. Right, the Chase Credit card. Once that's done, by the time that's done, this card will be due.
Right.
And by the time that card expires, we will probably have a line of credit by then where we can move that balance into another thing and then get the cash flow on that, which would be the 80 bucks. So this is guaranteed success. What I'm gonna present next is it. It is making a bet that she will have this job locked in and it doesn't require her to remove the tithe. It doesn't require her to remove any of the optional bills.
Right.
And it buys us the time, it extends the time that we would need to get this position locked in. What I'm going to do is going to erase this part here. I'm going to restart the strategy again to present it. How I explain it to her on the phone to my, to the mom that I'm working with.
Right.
So without removing any optional bills, going back to a negative 1,332, 37.
Right.
Here's what we did. We used the credit card of $9,000 credit limit, 0%, 5% balance transfer fee, and we stuck these two debts into the card.
Right?
So we did 4, 462-83-2418, 36. So that's 7,081 19 cents times 5%, 354.05. Add the two 7,081, 19. So now we'll owe 7,435 on this 0% credit card times 1%. Monthly payment will be $74.35. Move number one, move number one gets us 465. 42 plus 52.40 back in our pocket. So we get 517 back 82 cents.
Right.
Minus the monthly payment. So that's 443, 47 net cash flow moving forward. Which means now we are 133237 minus 443 47. So we are, we're still negative. $888.90. Still negative.
Right.
So what do we do now with the savings? Here's what we did originally. 861016 divided by 133237 would give her a six month time frame. Six, six and a half month time frame to get that new job. To go from making 50k to 70 or 80k. 70 to 80k net, she'll take home a little over 4,500.
Right.
We're in the state of Virginia, I believe we're in Virginia, West Virginia or something like that. So we'll net a little over 4,500. So if we're netting a little over 4,500 by the time they get that position, then we could say, okay, well, 437475 minus 443 47. So their expenses would be 3931 28. Their income would be say around $4,500. We're in a good, you know, we're in a positive 600 or so position.
Right.
In the meantime, six and a half months by doing nothing. That's, that's how much time I have by doing nothing. I would run out of savings within six and a half months. And if I don't get that job, I'm, I'm now in a really bad position.
Right.
Way worse off. That's why I'm saying that this is a, this is gonna be a bet. So now I'm just extending the bet by saying, okay, without cutting off these optional bills, without doing that and paying off two debts. Navy Fed Capital One. So so far Darrell's plan and my plan are in alignment. So far we're agreeing to pay these two things off. That's what we're in agreement so far. Where Daryl and I split was. I didn't remove it. He's saying remove it.
Right.
If, and this is based on the client actually doing that. If they don't do it, guess what? Then the plan doesn't work. What Daryl presented it doesn't work. Still Negative, still gonna have to pull.
Right.
So it's contingent on them doing that. So now you say, okay, 8006, 10, 16 divided by 888.90 is 9.6 months. So basically I have a 9.6 month window to get that job. And when I get that job, I'll be making more money and then I'll be attacking the vehicle next.
Right.
Then to verify that it makes sense to go after the debt that we're saying, debt, snowball. What does that snowball say to do? Pay this off first. Right. Smallest debt, then the next smallest, then the next highest.
Right.
Then the next. So 1, 2, 3, 4. That avalanche says pay off either this debt or that debt first.
Right.
Because they're the same interest rate. So the avalanche says, pay this off, then pay that off, then pay that off, then pay that off. You're not going to get results. That snowball is going to be avalanche in that situation.
Right.
Cash flow index, let's run it. 790112 divided by 427 43. So cash flow index on the vehicle got an 18.48, 13,843, 43 divided by 430. I got a 32, 1 9, 20041 8, 36 divided by 5240. That got a 46 15. Then 4662, 83 divided by 465. 42. I got a 10 according to cash flow index. Cash flow index says pay this off, then pay the car, then pay Chase, then pay the the smallest balance last.
Okay.
That's what cash flow index says. Velocity banking, in my opinion. Right, because the velocity banking incorporates what? Cash flow first, interest, savings second, balance third. But then looking at all three simultaneously, I'm leaning more towards get these two done. Navy, Fed and Capital. Pay those off. I'm getting the most cash flow, most bang for my buck.
Right.
So we ran snowball, avalanche, cash flow index. I think everyone's in agreement here that it does make sense to eliminate at least these two debts right here to buy as much time as possible and reduce the negative cash flow as much as possible. We agree on that. Everyone in the room here said to either use cash to pay these two off or the credit card to pay these two off.
Right.
Now, if you don't do what Darrell says by eliminating the optional bills, all of them, Right. Then you will still have a negative cash flow and you'll have to pull from savings. So you still have that, you still have that risk.
Right?
So all I did here was extend the window, right? And then we can nitpick. You say, okay, what if we just eliminated or reduced some of the stuff? Like, for example, if we just cut off shopping and entertainment for a couple months, cut off all the subscriptions and all the eating out. So that would be the hundred plus the 50, plus the 51. And you kept the gym and you kept the tithing. So it's 201.65.
Right?
So that would bring that number down. The 88090, minus 201 redirection of cash flow, right. 888, 90, minus 201, 65, 68, 25. So 60. $687.25 negative cash flow still 8,006, 10, 16 divided by 687. So I just. Just by doing that, it extends her timeline to 12 and a half months. And this assumes that the kid doesn't get sick, right? She doesn't get sick. No one ends up in the hospital. There's not a flat tire. You know, life doesn't happen, Right. Because that can shorten that window if life happens. Flat tire, got to change this. Kid got sick, I got sick. Covid something. Blah, blah, blah, Right? Emergency. Had to give family 500 bucks here. Had to give this person $100 here. How to do this, how to fix this repair that cost me $400. You see how the money can run out pretty fast, right? So again, Darrell's plan is a guaranteed plan that no matter what, they're at a positive 196. But they'll have very low savings left. There won't be much savings left.
Right?
But there's a guarantee that they'll be in a positive cash flow position.
Right?
Now, reason why I like this a little bit more is because I can retain or hold on to savings a little bit longer in the event life does happen, right? Because back to Darrow's plan that if we took the 8,006, 10, 16, and we minused the 4,662, 83, and then he really said, minus 2,000 bucks, so we're only left with $1,900 in savings. So we still have this roughly couple months window before they can switch positions. If something happens and they run out of cash, the nineteen hundred dollars, let's say something happens, emergency, they're not able to cover everything, right? Not able to cover everything. And then they're gonna find themselves having to borrow yet again.
Right?
But the nice part about it is they'll still have a Positive cash flow. So still get 196. They'll just be pretty much depleted, right? So his plan is a good plan. My saying is a bad place, a great plan. I think I didn't even think about what he was thinking about. So I like that and my client may like that plan more. So I'm going to present it to them, say, hey, you like this plan more? Just, you know, reducing this stuff. I think it doesn't hurt to eliminate some things in the optional bills. For those of you who are running a negative cash flow in the room. I don't think it hurts to eliminate some bills, right? Just to form that, that muscle of, of discipline, right. Extremely important. So that was, that was my, my strategy there was just eliminate those two cards, stick it in the, in the credit card, 0%, pay the 5% fee, pay the monthly minimum payment, redirect that cash flow to reducing the negative cash flow position that we're in. Gives us 9.6 months. And if we eliminate some optional bills, we increase that window to 12 and a half months. Granted, life doesn't happen. Nothing bad happens in that case. So let's see what, what you got. What you got? Okay. Tithing to me is a matter of faith, right? So that's another way that I would measure. So Harry, if this was you on the, on the board, if this was your numbers and I'm talking to you on the form, on the, on the phone, I measuring that, right? I'm figuring out those questions. So I'm not telling you to do anything, right? I'm just presenting options to see what lands. I was talking to another Christian husband and wife family. They were negative cash flow. They temporarily stopped tithing, prayed about it, spoke with the Father, right? They, they got an alignment. They created a plan that said, okay, this is what we were giving to the church. This is what we were tithing. Now that we're no longer doing that, we're still going to track it, right? And when we get ourselves in a better financial position, because we redirected that to pay off the generational curses of debt, right? To pay off those lenders and institutions that are holding us back from being able to give more to the body of Christ, they looked at it long term, right? So, Harry, maybe, maybe sometimes some people, some Christians, some faith believers are looking at this in the short term. Oh my God. If I stop tithing, God's God's gonna, you know, strike me down and I'm gonna forfeit all blessings and my faith is now, is now destroyed, right? Because to your point of view, tithing is a matter of faith. That is a profound statement. So guess what? What happens when Harry can't tithe one month and becomes two months, becomes three months, becomes six months, becomes a long period of time? What's going to happen to your faith? Do you hold your faith in that one position? So these are the conversations that I'm going to, I'm going to have with clients. I'd be like, hey, are you, are you resting all your faith on that or on Christ? I get what Christ said to do, but even in the midst of what he tells us to do with, with grace and mercy, we're able to recover from the things that we put ourselves in and we ask him to get us out of. And he already gave us the formula to get out of it.
Right.
And that is to be fruitful. So again, there's that dilemma. Well, how can I be fruitful if I'm not making the dang money and I, and I owe all these lenders, Right? So which comes first?
Right?
So that's how I'm on the phone talking to you guys, figuring that out. So I'm going to find a solution. We're going to find a solution. Just a matter of how we go about it. So again, some of the people in this room said, do not forfeit the tithe.
Right?
Keep it at all costs.
Great.
So then maybe we eliminate everything else. Shopping, eating out, subscriptions and gym. That's cash flow recovery. And then use the savings to pay off at least two debts and then use the credit card to maybe pay off another debt. Or just use credit card, pay off two debts, use the savings to keep going. Because you're still going to be in a negative cash flow position.
Right.
Then we discussed not eliminating anything, and that was my plan. It would give you 9.6 months and not using any of the savings until we can get that new job.
Right.
So a lot of good, a lot of good plays here. A lot of good plays here. And look, that was just based off this. Spend less than what you make. This is so important. Spend less than what you make and know your numbers. Once you know your numbers and you spend less than what you make, then we develop a strategy to improve the foundation. That's it.
Right.
Paying down Chase will bring her monthly payment down. Hopefully that brings her cash flow stable or slightly positive. Yeah, we discussed that a little bit. Using savings, pay off, recapture the 465. Yep, yep, yep, yep, yep. Pay off, boom. You save 556. But only pay 25. So save the 40. So like 40. Yeah.
Okay.
Definitely eliminating optional spending. Yes.
Okay.
Stock is performing at a lower percentage rate than credit cards and debt service. Great point, Ms. D. Great point. And this is what we have to value for ourselves. Look. Look at her. Look at the client's numbers. The s and P500 reports that they average a 9% average rate of return. What you guys have to understand is average rate of return is the biggest lie when it comes to financial compounding interest.
Okay.
And wealth accumulation. You should never look at average rates of returns in any investment whatsoever. You want to look at the internal net rate of return after expenses, after taxes.
Right?
What? What is it?
Right.
That number is going to be drastically lower. So let's say you are getting 9% rate of return. It ain't more than 28.74%, 14.4%, 28.74% and 5.69%. It's not. Because whatever little dollars savings 9% on that is still way less than all those rates combined. So it's like what? You didn't do anything you earned here to pay it there? That's all you did.
Right.
So. So you get. You get hurt. Harry says stock market fluctuates too much. Yep. Just to pay off 2400 credit card, move 46 credit card and just stop. Stop tithing for short time.
Yep. Okay, cool.
When you are cash flow negative, you temporarily don't have a savings. Ooh, see that? This. That's something. That's a takeaway. Yeah. If you think about it, it's like if I'm negative and I'm in debt, you. You don't have anything you produce. You don't technically have it until you clear those things.
Right.
Jeanette, put Chase Capital 1 0%. Stop extra expenses, pay off car with savings. Yep. That's a good move, too. You're still going to be negative cash flow.
Right.
So if we do it. So yeah, let's. Let's run that. So she said, let's run that real quick because I don't think that was a new one. So if we pay off capital one into credit card stop extra expenses and then pay off car with savings. So 86, 1016 -7901 12. So I would have $709 left in saving. I get 4. 27, 43.
Right.
And then using the optional. These are the optional expenses. Just. She said stop them.
All right.
So stop extra expenses. So that was 550. Let me add that again. So it was a hundred, 100 plus 50 plus 51. 65 plus 51 plus 304, 24. Yeah. So we got, for Jeanette's plan, we have 556.89. We have 42743 and we moved 465. 42. Let me see. Oh, yeah. So 4662, 83 times 5%. So that's 233 plus 4662, 83. So here's how much I would owe in the 0% credit card times 1% of the balance. Monthly payment, $48.95. 465, 42 minus 48. 95. 416, 47, 556, 8, 9, plus 42743 plus 41647 minus 10. 3, 3, 2, 3, 7. So, Jeanette, you would have a positive for. You would have a positive $68.42. It's not better than Darrell's plan of. Of $196. That's how much cash flow we got with his plan. Your plan gave me 68.42. His plan gave me 196. And we still had. We had more savings left over. His plan gave us. I think it was like 1900 and some change. We can go back in the video and track that. So his plan does come out a little bit better. But still, I like your thinking. That was good thinking there. All right, Again, it's contingent on what that. That discipline to cut all spending. Optional spending. Tough to do. Tough to do. Not easy, right? Not impossible. Not impossible. Just not easy. So this is. This is good. You guys enjoying this comment below? You guys enjoying this? Good. This is very helpful.
All right.
You can like. We keep running it. Oh, my God. Look how many different variables we're coming out with. And we're running it and we're saying, look, that's the math. That's the math. That's the math, right? And we can rank it based on highest results. It says give from your increase. So first increase. Ooh. Brenda, can you point us to that scripture? Because I think a lot of Christians are stuck today. It says give from your increase. So you gotta increase in order to give. If you don't have increase, how can you give other than borrowing? I'm telling you, this is something that I would love to see. Pastors, like, talking to the audience and having a sit down and a dialogue and a passing of the mic. Because when there's just one person speaking at the pulpit, nobody is allowed to ask Q and A. And I don't think that's how it was in the early church days. I don't think that's how it was. It was just one speaker and they did a motivational talk for an hour and a half. And then you went about your day. I think in the early church, you had the entire, you know, body. Elders and new people, new believers all together in a room. And maybe there was a head speaker, but, but there was Q and a. Boom, boom, boom, Q and A back and forth. There was dialogue. Oh, wow. Yeah, that does make sense. Yeah. You know, okay. In that situation. Yeah, that does make sense to do it that way instead of this way.
Right.
Wouldn't that be cool if we had that in our churches today where our pastors can allow for Q A during their sermon instead of just blurting out a whole entire hour and a half, two and a half hour, three hour, depending on what kind of church you go to, type of sermon. And then there's just no dialogue. There's no Q A, there's no case study. How do we apply this, what we're learning in, in the body, you know, Love it. Let's see. Paul says math is wrong. Add the numbers. Paul, help me out here. Where, where, where Are you seeing that? Are you seeing an error in the, the four. The four numbers. Are you seeing an error there? Let me know. Gotta be a little more specific. Lifestyle change is a difficult part.
Correct?
Yep. Thanks for your words. Pay down Chase, Navy Fed. Here are the numbers to add. So 5, 5, 6, 89 plus 465, 42 plus 5240 equals 10, 74, 71. That's not enough with Navy Fed. Let me see that. So we cut expenses.
Right.
556,89. We used savings. You said you can't. We can't pay down Chase with, with the savings. So I, I'm pretty sure in the previous you said pay down capital.
Right.
So how do I pay down. How do I pay down Chase? I think you're changing it up. Oh, you said pay down Chase 2000 to lower the 430 instead of that. So you're saying I'll get more cash flow. You could be making a good point there. So we're so 556.89. We cut all expenses, extra expenses. We pay off Capital One with savings. So that's 465, 42. So now I'm at $1,022.31.
And.
You said take 2000. Instead of hitting Navy, take 2000 and hit Chase.
Right.
And you're thinking you'll actually get more money back by throwing 2,000 at that than. Than here. Because if you throw 2,000 at natively fed, you don't pay it off. The payment is only gonna go down a little bit. But over here, the payment can go down maybe more than $50 is what you're saying. So so far we're at 10, 22, 31.
And.
In your case, Dara, I don't think. I don't think we used the credit card. I'm not mistaken if I'm wrong there. So let me figure this out. 13,000. 8, 43. 3 times 43. I'm trying to determine what that payment is based off of. I think it's like three and a half percent. Okay, so 13,843 times 3%. 415. All right, so the balance, the way they calculate the payment on Chase is a little over 3% of the balance owed.
Right?
3.25, 4, 49. Some go with like 3.15, 3.15. So if I take 13,008, 43, 43. Minus 2,000 bucks.
Right.
So the bounce would be 11,843.43 times that by 3.15%. So the payment will be somewhere around this number. 430. Minus 373. 06. $56.94. So that plus 10, 22, 31. That's how we got your number. Right, so you got. You got 10, 74, 71 if we paid off Navy Fed. But if we pay down chase, it's one number. 430 miles and 79, 25. So it's not a huge minus. 373.06. $56.94. So that plus 10 difference. All right, only. Only a couple dollars. If we did that, Daryl, go after Chase instead of Navy Fest, there's only a couple dollar difference, but there is a bit of a difference. And then what am I missing? What am I missing? What am I missing? And then. Well, in your situation, Daryl, wait. Did I mess up? I feel like I'm missing something.
Because.
22, 31, that's how we got your number. Right? So you got. You got 10, 74, 71 if we paid off Navy Fed. But if we pay down chase, it's 1000.
The.
Savings is pretty much 1079,25. So it's not a huge dip. Depleted. Because we did 8610 16, minus 466283 minus 2000 bucks. So that was how much savings we have left with Daryl's plan. 1,000 friends. All right, only. Only a couple dollars. If we did that 94733 with that Daryl, go after Chase instead of Navy Fest. There's only a couple dollar difference, but there is a bit of a difference. And then what am I missing? If a cash flow gain 10,079. So 1,332 37 minus 1079. So I'm negative 2 5, 3 7.
Right?
And then I think I. I think I added to your plan, Daryl, where we're using that credit card. What am I missing? What am I missing? And then. Well, in your situation, Darrell, wait, did I mess up? I feel like I'm missing something. Because the savings is pretty much right. We're using that credit card to pay off the vehicle to get 427, 43. And then we'd be in a positive capsule position. I think that's what I did. And that's how I got to the positive 196 or positive 200, which kind of makes sense because. 253 minus 427. Yeah.
Okay.
That'S good. That's good. Depleted, because we did 8,006. 10.
Good, good, good.
16 minus 4,006. 62, 83 minus 2,000 bucks. So that was how much. Love it. Love it. Guys are using your brains, right? We're running the numbers here. A lot of different options, right? This, this person, this case study. I can't wait to do a follow up six months from now to show you how, how things went. But this is the basics, right? This is the basics. Savings we have left with Darrell's plan. 1000. Also, my Christian brothers and sisters have to stop reading tithing as a tithe. Automatically equating to money 10% of your time. 94733. With a cash flow gain 10,079. So 1,332. I'm in helping in a ministry at your local church is in fact tithing. That's deep. Because what is money? People say time is money. Or you can, you can equate time 37 minus 1079. So I'm negative 2 5, 3 7, right? And then I think, I think to money. So some people say time is money, when in, in reality, money is really the value that you delivered.
Right?
Money is value that you gave that you delivered. So if I give value to you all in this room, I think I added to your plan. Darrell, where we're using that credit card and then no one in this room pays me any money for the value I gave. What, what did I just do? I, I gave value. And that could be considered say tithing giving.
Right.
And if this, if this room was a, was a church, was a ministry, which is, which is exactly what this is. It's an online ministry. What I'm doing, Finance geek, right? We're using that credit card to pay off the vicious. What I'm doing, I'm giving, giving value my time vehicle to get 42743. And then we'd be in a positive capital position. I think that's what I did. And that's. So I am giving, I am tithing to how I got to the positive 196 or positive 200, which kind of makes sense because God's people and that is valuable. And there's people in this room who say that's so valuable. I'm going to give my money to access your value. So, so money is actually value. The value that you generated, that you created, the result of that value is what we put a dollar sign on.
Right?
Money. So that is very interesting what Daryl said. So it's like, hey, tithing. We shouldn't just be looking at tithing as money. Only 253 minus 427. Yeah, okay, that's good, that's good. Good, good, good. Your time is a form of tithing. Giving that into a ministry, into an area. The value that you bring. Maybe you're a doctor, maybe you're an expert in something, maybe you're a financial coach. So if you love it, love it. You give two hours, two point something hours out of your day out of a 24 hour period and you give 10% of your time to help people better their finances. Is that not a form of tithing? So this allows us to think more expansive when it comes to when we're in a negative cash flow position to say, hey, yeah, I'm not able to give financially because my farm, my household guys are using your brains, right? We're running the numbers here. A lot of different options, right? This, this person, this case study, I can't wait to do a economy is not producing that fruit yet. It's not producing enough fruit yet. But I have a lot of fruit over here. I have a lot of time. Instead of watch follow up six months from now to show you how, how things went. But this is the basics, right? Watching TV shows and Netflix and things like that, I could be redirecting that time and an expertise. Maybe I could be helping someone with their numbers. Maybe I can help you. Someone in the church. Maybe I can help someone move. Maybe I can do something for the body of Christ. That's interesting. That's interesting. This is good thinking on how this works. Yes. Think so, too. Wow. My wife and I were talking about the same thing. Q A is so important.
Yeah.
Imagine that, guys, for everyone that attends church, for everyone in this room, if you have access to your pastor, you can get them on a. This is the basics. Also, my Christian brothers and sisters. Phone call, schedule a time, meet them in person, take them out to coffee, lunch, whatever it is. Have to stop reading tithing as a tithe automatically equating to money 10% of your time and present to this idea. Hey, pastor. Head pastor, senior pastor. Hey, I'm in. Helping in a ministry at your local church is, in fact, tithing. Hey, Bishop, what if we, during Sunday sermons, allow time for Q and A? You give your sermon for 45 minutes, and you allow 30 minutes of q and A. So maybe it'll be the same amount of time that we spend. Do you think if you talked less, Pastor Bishop shepherd, do you think if you talked less and listened to your sheep a little bit more and what they're saying, what they're asking, that we can become better leaders in our own household if we can ask you questions. That's deep. Because what is money? People say time is money. Oh, that would be so good. I don't know about you, but that would be so. So money. Or you can equate time. That would be a paradigm shift in the body of Christ in the church if there was to money. So some people say time is money. Call it. It doesn't have to be debate, just dialogue. Wait, Pastor, you said this, but in this scripture, it says this confused. Can you shed a little more light on that? Do you know how much more valuable the sermon would be if people in the crowd had the opportunity to stand up and take five questions, 10 questions, three questions, whatever it is, come up the stage and. Oh, man. Pastor offer. Find out how to create a budget for the saints over at about the time. Yeah. When it. When all is said and done, giving or not giving, is between you and God. That's true. The wrong numbers. This is what Paul was saying as common. Oh, okay. Okay. Because it was an error when in. In reality, money is really the value that you delivered.
Right.
Money is value that you gave, that you delivered. And they're not on my. Not on my board. Got it. Wonderful. We're done. Anybody got any other questions, put in the comments now I'm done. That was the case study, right? Oh, my goodness. No, I forgot. Here, here, Basics. Let's do this. This is for the people who are a little bit more seasoned. Maybe they're. Maybe you're. Maybe you've been doing velocity banking and maybe you messed up a little bit and you got to revisit, right? Maybe your debt tools expired. No longer a good tool. You got to get a new one. So I'll run these. So if I give value to you all in this room, run through these real quick. Spend less than what you make before applying, and then. No. For a debt tool, home equity line of credit, first position, second position, P lock one in this room pays me any money for the value secured P lock, unsecured P lock credit card, whatever it is, I gave. What. What did I just do? I. I gave. I would prefer. It's nice. It's not id, it's not required. But I would prefer you to have a 720 or, or higher credit score because you're gonna get the best rates, right? You get the best rates. You need to know what your debt to income ratio is. Preferably you want it lower than the bank requirement that you're looking at. So that's how you get more narrow, right? Once you, once you built that banking relationship, once you found the bank that offers a tool, the debt tool that you're looking for, you want to ask them the credit score required, preferably what they like to see and what is the DTI to increase odds of approval value. And that could be considered, say, tithing giving, right? And if this, if this room was a, was a church, was a ministry, credit card can be used for, for bills that can be paid with the credit card to get cash back. Which is, which is exactly what this is. It's an online ministry. What I'm doing, Finance Geek rewards, that's going to help you offset interest costs. Now, here's the thing. If you don't have your foundation built, okay, and you're running credit card, you're running bills through a credit card that already has a balance on it. You're getting charged interest. You're hurting yourself, right? So you don't want to release yourself of that tool, say, hey, maybe I'm misusing this tool. I just had a conversation with a client earlier this, earlier this week that was misusing credit cards. They were misusing the tool.
All right?
They had an existing balance on a credit card. It was around a little over 10,000 bucks. Now the credit issues is what I'm doing. I am giving value my time. So I am giving, I am tithing to God's people. And that is val. Limit was much higher, so they had a lot of space. But what they didn't realize was they were, they were swiping $2,000 plus of bills on the card, but they're getting charged 25%. So even if they swipe the 2,000 and then they pay the $2,000 bill, they forgot to pay an additional valuable. And there's people in this room who say a couple hundred dollars for the monthly payment to cover the existing balance. So when you forget to do that, guess what happens? Even if you paid in two and you swipe two with an existing balance, you're actually going to owe, you're going to owe more at the end of that month because you got hit with all that interest that's so valuable. I'm going to give my money to and it's compounding, right? Not pretty. So you're going to want to relieve yourself of that tool if you're making that mistake. Not good. Cash flow index or snowball to start. That's what we did here, right? We're snowballing debt, we're redirecting cash flow. We're access your value. So, so money is actually value. The value that you generated that you created. The result of that value is what we spending less than what we make. We're improving our credit score by eliminating debt. We're improving our DTI by eliminating debt.
Right.
Didn't even talk about running bills on a credit card or anything like that. Because it wouldn't be smart in their position to do that. They're already getting hit with balance balances that are charging them interest.
Right.
And then redirect cash flow.
Okay.
Another valuable, valuable way to redirect cash flow for all employees in the room. If you're an employee, put in the comment I'm an employee.
Right.
Comment below. If you're an employee, excuse me, this is super valuable. If you're an employee, you could be changing that number that you claim.
Right.
To withhold less taxes from your paycheck.
Right.
You want to keep as much of your paycheck as you possibly can on a month to month basis so that you don't owe anything at the end of the year and then you're not owed anything at the end of the year. You do not want a refund. If you're an employee, comment below. If you are an employee and you got a refund this year. That is not good. You don't want a refund. If you get a tax credit, that's different. But if you get a tax refund, comment. If you got a refund this year, if you got a tax refund this year as an employee, comment below and comment how much you got in your refund, whatever that number is divided by 12. That's how much extra cash flow you could have had on a month to month basis. Because the time value of money depreciating over time, you could have had that money earlier throughout the year to help you eliminate more debt.
Right?
So we got a lot of employees in the room, right? Shane.
Okay.
Roxanne, Harry, Shane. Roxanne, Harry. If you got a refund this year, you are doing it wrong. Letting you know right now, you are doing it completely wrong. You do not want a refund. They programmed you to get excited about the refund and you blow it.
Right?
You don't want a refund from the irs. Tax credits, again is different. That's different. That's additional.
Right.
Tax refund means you overpaid the irs.
Right?
You overpaid the irs and they're gonna give you back there. They're gonna give you back your money at 0% interest. They didn't even have the decency to give you a 1% rate of return on your money. Just give you. And you're getting less.
Right?
Because you got a file you got to pay and all this crap so you get less. Terrible. Update your W4 tax credit due to my two children.
Yep.
Tammy, you got $3200 in a refund. Doing it wrong. Roxanne, you got 1200 bucks back. You're doing wrong. That's take that number divide by 12. 3200 divided by 12. That's how much money you could have had on a month to month basis. So if you're claiming zero, you're claiming one, you're claiming two. I promise you you're doing it wrong.
Right.
Your number needs to be higher.
All right.
I have to refund the irs. Lol.
It's fine.
Look back in the video example isn't. Is it 19xx savings? The math wasn't because you added 520 to his number, not 52. I'll have to look back. Paul, doesn't the paid off credit card become your life? Happens. Fun. You don't get any interest savings from savings. You don't get any interest savings from savings. Doesn't the paid off credit card become your life? Happens fund. So, Paul, I think you might be referring to. Right over either. You're referring to that card. Zero percent.
Right.
This gets paid off. Zero. Either. Either Navy Fed gets paid off. Me personally, I would rather pay off these two cards, Paul. Me personally and I would rather use this credit card to pay off those two.
Right.
And I'm gonna get cash flow from there. If I cut off all These bills, that's 5, 5, 6, 556 back to my economy. And then if I use the savings in Darrell's plan to pay off the vehicle, then we would be in a positive cash flow position.
Right? Right.
So it would be 465, 42 plus 5240 plus 427, 43 plus 556 minus 37. So it's gonna be somewhere around that number. It'll be positive cash flow. So the number that I got earlier, I think I was like 196 or something like that. 168. So we'd be positive, but we, we'd be out of money, out of savings. We do only have like thousand bucks or something like that savings. It wouldn't be much.
Right.
So again, his. Darrell's plan still guarantees us to a positive cash flow position. My plan did not. My plan brought US to a negative 88890 in cash flow, possibly as low as 687.25. If I eliminated some bills and I have anywhere from a 9 and a half to a 12 and a half month window to get that income increase. Once I get that income increase, my cash flow is gonna, is gonna jump, you know, up to probably a thousand or more or something to that nature.
Right.
But I'll have to look back. Maybe. Maybe I did make a mistake. See, we'll fix that Monday. Well, when you put it that way. Employee. Okay, Lisa. And we got a refund. You're doing it wrong. Just letting you know.
Right.
When I was an employee, I was claiming six. I ain't got no kids and I'm not married. And I was 21, 22 at the time. At 6, I was like, give me my money. Give me my money. That's mine. Because I was going to get it anyway. You gonna get it anyway at the end of the year, you might as well get it now.
Right?
And then owe nothing at the end of the year. And if you get a tax credit, great. That's additional cool. Loved it.
Great.
Love it. Awesome. Awesome. Glad you guys enjoyed it. So Velocity Banking Basics. There's a video on my, on my channel, when you go to my channel says Velocity Banking introduction, that's when I break down the components of the concept itself. Once someone has done the pregame work, right, so there's Velocity Banking pregame work. There's a playlist for that in the description below. You start there if you're new to Velocity banking, then once you've done all the pre game work before starting Velocity banking, then you go to Velocity Banking introduction so you can learn the components and the elements, how to run the numbers, how to calculate the cost, how to determine your chunk, all that good stuff. Once you, once you've done that, then you get your debt tool. Now you're fully prepared to implement the concept and that might take six months, nine months, maybe a year. During that whole time, we could be doing debt snowball to get us in a better position overall. So super excited to work with those that are in a negative capital position in the house. Join Finance Geek Ministry. You can jump on a call with me for free by simply following my instructions in the ministry that I've established. Commit the time. Invest. Invest in the SME 500. Invest in the S&ME 500 instead of the S&P 500. That was just a profound statement by Alex Hermosi. Shout out to him on that. That's where I learned it from. Blew me away. Those of you that want to go into financial coaching, you want to, you want to lock arms right with me. You want to go the distance. I got my financial coaching programs. They're available. You do not have to pay a dime to learn Velocity Banking. You don't. People like myself and Christy Van Connor, J. Wallace and Matthew Pilmore. Kwok Brothers, Novarise. Like all these people that are putting out video, Minoramos and Amana Pride. You know, some of my clients are creating channels now. We're putting out this information completely for free, but there's going to be groups, you know, a big group of people that just, you just, you just don't get it. Need that extra hand holding. That's what investing in me is about, right? If you invest in me in the SME 500, you invest in yourself by acquiring a financial coach in your life, a consultant, an expert to help you along the way. That's where that makes sense. But if you don't have the money for it, that's what Finance Geek Ministry is about. So let's gather together in a group setting. Let's have dialogue. You ask Q and A, we run numbers, we do it live, right? So that there's dialogue and we go from there. And last but not least, I'm hosting an event December 16th in South Florida, Fort Lauderdale at the Calvary Chapel Church.
Right.
It's the main campus location, phenomenal location. It's going to be 150 people max. I'm already at a little over 20 tickets sold so far.
Okay.
My goal is to sell that event out. Anyone that purchases a ticket. I'm doing some extra things along the way. I'm doing giveaways, I'm doing coaching for free. And then I'm actually going to host a couple of private zoom meetings leading up to the event to help you guys best prepare for this event. It's a one day event from nine to six and spend the whole entire day together. Breakfast, lunch, beverages, coffee. It's all on me taking care of you. Kingdom service, we're going to have a couple speakers. I'm hoping to have Kristi Van come to the event. Hopefully she can be there.
Right.
So I'm hoping to have Christy Van Minor Ramos, Amanda Pride, clients in the room, maybe Daryl and others get around together we can dialogue. It's going to be a Kingdom business planning workshop.
Okay.
So we're going to go multiple layers, deep into your finances, right. So by the time you come to the event, you're already going to know about Velocity Banking, Infinite Banking, Kingdom Authority and those things. But we're going to make it even more customized and catered to where you're currently at today, where we want to go.
Right.
So I'm hoping to have some of my business partners there going to be revealing some income opportunities, ways for us to partner in the Kingdom, collaborate in the Kingdom and bring a lot of value and impact, a lot of lives in this lifetime. I'm excited. Hope you are. God bless to everyone and we will be talking very, very, very, very, very soon. If you're someone that wants to collaborate with me, right, you want to work with me, whether as a client or business partner, got an opportunity, you want to share things, you can reach out to me. I have a contact form on my website, right. Or you can email me directly either, or get into the community, get, get, you know, figure out who you want to spend time with. Do your due diligence on me. Don't just trust anything I said today. Don't trust anything I said today. Do your due diligence. If you're brand new to me, right. Keep reviewing the material, see how I operate, see how I communicate, right. And if you're in alignment with that, then we probably do a lot of great work together.
Okay. So.
Hello, Cameron. Excellent live class. Awesome. Awesome. Tammy says thank you.
Great.
Beautiful.
Love it.
Awesome. I'm gonna let y' all go. God bless. We'll be talking soon. Love you all. Thank you very much. I remember you saying, hey, I know something's there, like, with this policy design, as you were digging into it, really, from the consumer side, I guess you could say. There wasn't a big amount of creators on YouTube that were focusing on velocity banking, personal finance, things like that. Like you said, it doesn't matter who you get the information from, as long as you get the information and you take action. That's all that we ask at the.
End of the day so that you.
Can build wealth for your family and your family's family. Hey, here's a taste.
Now, if you're feeling it at all.
Then go take a deeper dive. Go start doing your research. Start listening and learning about this whole concept.
