In this episode of the Building Us podcast, co-hosts Erik Garcia, CFP®, and Dr. Matt Morris, LPC, LMFT talk about Erik’s ebook entitled, 5 Pillars of Financial Security. They discuss how to manage money by applying the 5 pillars, the physical and emotional impacts of having debt, and the significance of saving money.
Episode Highlights:
Matt mentions that Erik has written an introductory guide to financial advising and financial planning called the 5 Pillars of Financial Security. (4:35)
Erik explains the main reason why he wrote the guide. (5:04)
Erik shares that as a financial advisor and investment advisor, his world can get very technical and a lot of things that he talks about, might not be specific to everybody. (5:32)
What did Erik learn from his grandparents about money? (7:09)
Matt shares that he’s always interested in people's family stories. (9:28)
Matt mentions the three statements about Erik’s approach to helping others manage their money. (11:08)
Erik mentions that if you follow the three statements, you’re going to have success in managing your money. (11:57)
Erik shares that from a basic principle, at the end of the day, you have to save and you have to put something aside, for tomorrow. (13:12)
Erik mentions that sometimes, there's value in having an outsider look at your financial decisions. (16:30)
What are the values that Erik hopes people consider and reflect upon? (17:06)
Erik thinks that most money management and good money management should be intentional and purposeful in what you're doing with your money and with your values. (20:01)
Erik mentions that he’s a big fan of spending money on experiences and building memories. (21:51)
How did Erik get into financial advising and money management? (22:03)
Erik shares his backstory, growing up in the insurance industry. (22:13)
Matt mentions that he thought about his educational journey into family therapy, and how he got into where he is at this moment. (24:09)
Is Erik writing and advising only rich people? (25:11)
Erik shares that the big misconception of people about money is that they think if you make a lot of money, you're wealthy. (25:17)
Erik mentions that money management is irrelevant to how much wealth you have. (25:31)
What does Erik know about the people that were influencing his parents when they immigrated? (28:55)
Matt mentions the importance of working within someone's values, rather than indoctrinate them into your values. (34:27)
Matt thinks that budgeting is just a spending plan. (41:30)
Erik mentions that budgeting is being purposeful and intentional with what you do with your money. (44:45)
What are some examples of bad debt and some examples of debt that can help us get ahead? (46:34)
Matt mentions that debt is expensive, both financially and emotionally. (49:09)
How does Erik see debt show up for his clients? (48:50)
Erik mentions that if you're stressed and anxious, that can't be good for relationships. (49:05)
What’s the significance of saving? (50:30)
Erik explains the three types of savings, short term savings, midterms savings, and long term savings. (50:42)
Erik shares that if your job is seasonal, commissioned based, or if your income is variable, the short term savings account becomes more significant to fund. (53:24)
Erik mentions that he’s a big fan of having separate accounts for separate purposes. (56:02)
Erik thinks that when you're motivated and driven by something outside of yourself, you start to think about your money a little bit differently. (57:30)
Resources Mentioned:
Erik Garcia, CFP®
Dr. Matt Morris, LPC, LMFT
Garcia Financial Group
Matt Morris & Associates
5 Pillars of Financial Security: A Guide To Managing Your Money Wisely
