Dr. Oz: What’s Your Financial Age?
Dr. Oz talked about our “financial age.”Your financial age might differ greatly from your actual chronological age. Your financial age can really affect your health, as well as the size of your wallet.
Dr. Oz spoke to financial adviser Ric Edelman about finances. Dr. Oz said that stress about money builds up and can cause lots of health issues. Ric Edelman explained how you handle your spending and your savings determines your financial age.
If you’re a financial teenager, that’s a bad thing. They’re impulsive spenders, owe more on their credit cards than they did a year ago, and if they lost their job, they would out of money in one month.
Middle age spenders acknowledge their financial responsibilities, shrink their credit card balance, and have about a three-month cushion.
The best age, though, is the retirement-ready age. These people are in control of their planning, they have no credit card debt, and they have 10 times their annual salary saved up.
Dr. Oz: Increase Your Financial Age
Katherine is living at the financial teenager level, even though she’s 32. She said she loves living in the moment. She can save up for a pair of shoes or a vacation, but she didn’t want to think about saving for when she’s 72.
Ric Edelman said the number one motivating factor for spending money is fear. A lot of people become overwhelmed with their finances and just decide to go shopping or buy something impulsively because it’s a short-term rush.
“Money is simply a symptom of how we feel about our loves and ourselves and our families. People use money as extensions of power. They use it to get them through the day. They use it to mask other issues. And the body doesn’t let you get away with that,” Ric Edleman said. “The body translates the financial issues into physical issues and that’s why so many people have so many health issues associated with their financial issues.”
Dr. Oz: Use Your Savings to Pay Off Your Debt
Ric Edelman said the first thing you should do is pay off your credit card debt. You shouldn’t be worrying about having three months worth of money in the bank. He said it’s silly to have large debt while still having large amounts of savings. The interest from savings is not worth it when you compare the interest on your debt. So empty out your savings and use it toward your credit card debt.
Dr. Oz: Make Your Money Work For You
Julie is at the middle age financial age, but she wants to be retirement ready. Julie worries she’s running out of time to prepare for retirement. Ric Edelman said that Julie needs to focus on personal finances.
He said we need to have our money work for us. You have to put your money in something that will help you to earn competitive returns. He suggested educating yourself and getting a financial adviser that will help us determine our financial future.
Ric Edelman said the number one thing we should all do is start saving for retirement and get our money into an IRA or some other kind of retirement plan at work. But just to be clear, he also advised us to focus on getting rid of debt, rather than savings earlier in the program, so I guess pick and choose your advice. He also said we can’t afford to save, but somehow we can afford to have a financial adviser?
In the end, the most important thing is to research and take your financial future into your own hands. The more you know, the better off you are. What do you think? What’s your financial age and what do you wish it was?