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DAD CENTS PODCAST TRANSCRIPT: Received a Bonus? Don’t Spend it! Do This Instead...

DAD CENTS PODCAST TRANSCRIPT: Received a Bonus? Don’t Spend it! Do This Instead...

April 06, 2022

6 Annual Bonus

[00:00:00] Jason Fuchs: Greetings everyone. If you're new here, I'm Jason Fuchs, married to Amber's father to a three-year-old girl Juul. I also happen to be the managing director of Sage path, financial advisors. It's such a fun company, but I'm biased because I own it.

[00:00:41] Ladies and gentlemen, welcome to the show. Thank you for being. Dad's sense is a show for family, men, and women. We're all about family, food, fun and finance. Joining me is special guests, Amber Fuchs, mom, and my beautiful bride. Welcome to the show, Amber. Hi, thank you for having me. [00:01:00] It's our pleasure. Thanks for coming.

[00:01:02] Ladies and gentlemen, if you have questions, remember I'm answering one during each episode. And Hey, if your question is not answered during an episode of that sense, don't fear, I will privately respond to your question.

[00:01:15] You're not alone. So, how do you get those questions to me? Well, ladies and gentlemen, I am so glad you asked. You can send them to info at Sage path, I'll go ahead and put that in the description of the podcast. Today's question comes from. Maverick. Ooh, that's right.

[00:01:34] Amber, I watched top gun a couple of weeks ago and I am inspired. Okay. Goose. You can be goose today. How about, well, no goose dies at the end. That's not very good. Nobody's case will make your ice woman.

[00:01:49] I love it. Now, of course, this person's name is not Maverick. That wasn't really good. Now of course, this person's name is not Maverick. Thank you. Compliance and [00:02:00] regulators for allowing me to use such fun names to protect, reopen.

[00:02:04] Maverick received a bonus and he wants to know what he should do with it. And I'm wondering ladies and gentlemen, are you anticipating a bonus this year?

[00:02:13] If you are anticipating an annual bonus this year, it's wise to come up with a thoughtful plan for that extra cash before it comes to you.

[00:02:20] So you can get the most benefit from it. I have some suggestions and after today's episode, ladies and gentlemen, you'll have more clarity on what to do with that bonus. Wonderful. But Amber, this is all about you right now. I want to know what's happening in your exciting life these days.

[00:02:38] Amber Fuchs: Oh boy. We're headed to the race in Charleston, which we've talked about on the past few podcasts already, but we're excited about I'm super excited about.

[00:02:49] And what I'm most excited about is I am going to enjoy the food there so much, primarily because I had given [00:03:00] up sugar for the month and that's coming to an end, right? As we head into Charleston, which means not only can I enjoy whatever food I want with no restriction, but I can also eat whatever dessert I want.

[00:03:15] And it's just the perfect timing for having. given up that and moving forward into our little

[00:03:22] Jason Fuchs: getaway. And I've said this several times, I said it last night again, but I'm going to say it again. I am so proud of you. You looked done an amazing job. I think I bowed out about a week ago. I just couldn't do it.

[00:03:34] My diet is restricted enough, restricting sugar. That limits me to like four things. So I applaud your efforts.

[00:03:42] Amber Fuchs: I mean, It hasn't been as difficult as it could have been because I made it work for me. And the way I did it personally is I decided, we're going to do no added sugar. So if there's natural sugars that spine like [00:04:00] exactly, exactly.

[00:04:04] That made it, more reasonable. And achievable now. It wasn't easy. It was, just easier than if I hadn't given myself those exclusions.

[00:04:14] Jason Fuchs: Well, I'm wondering how was it different than you expected or how you imagined it would turn out a month without sugar is a challenge.

[00:04:22] Amber Fuchs: It is, it is. I mean, I. I expected to have more severe cravings. I don't think my cravings were as bad as I anticipated, which is good,

[00:04:35] Jason Fuchs: honestly. Yeah. I had bad cravings

[00:04:38] Amber Fuchs: and I think the big difference of my expectation is I don't really feel any different. I thought maybe I would have less energy or maybe.

[00:04:52] I just thought I would feel something and I don't really, that's interesting. Yeah. Yeah. So I think that's a [00:05:00] good thing because I think maybe that means I can sustain this for even longer since it's not impacting me in a significant way. And maybe just have sugar only on special occasions and be more mindful.

[00:05:13] because I know it's not going to impact

[00:05:15] Jason Fuchs: me. You got a baker in the house. Yes. I've definitely slowed down on the baking this season because of that.

[00:05:24] Amber Fuchs: Yep. But yeah, I'm, I definitely need you to start making some cookies and pie.

[00:05:31] Jason Fuchs: Well, we'll get to that where the pies are coming. Yeah. As of last night, I'm curious there, I'm sure there are other listeners out there that are thinking about doing some sort of challenge, whether it's reduction in sugar reduction in junk food or whatever, how can those folks succeed based on your experience?

[00:05:50] Amber Fuchs: I mean, I think that in setting yourself up for success and the way I did it, I set [00:06:00] myself up for success. I said, I know I drink coffee. I know I enjoy wine and I don't want to limit myself on those things. so designing something, if you're going to set yourself up for a challenge, I would say, ease your way into it and do it so that you, you set up parameters that work for you because you can always shift them.

[00:06:22] Right? If I really felt that, Making the change in the coffee would make a significant difference. I could always layer that on and partway through my challenge. so that's would be my number one recommendation is, not everything works for everybody. So design something that works for you.

[00:06:42] I know I drink coffee and wine. If I had said no sugar, and then. I realized one day that I was taking in sugar, first thing in the morning, that wouldn't have worked for me. So do you know, do what works for you and if you find a challenge that you find interesting and you think it won't [00:07:00] work for you just modify it and do what you think works for you, and you can always tweak it along the way and make it more restrictive or less restrictive.

[00:07:09] But still make it a challenge. don't make the challenge so much that it's not, not a challenge

[00:07:14] Jason Fuchs: I like what you said, and I think what might be helpful, correct me if I'm wrong.

[00:07:19] Maybe our listeners could go back to episodes one through three from this season. Yeah, correct. Yeah. Cause we talked about goal planning, how to succeed, how to hold yourself accountable, all of the outside forces that might distract you and prevent you from accomplishing your goals. And that those three episodes are.

[00:07:38] Financial goals and nonfinancial goals. And I think if folks out there are listening and they're interested in setting up these 30 day challenges, that'd be a great place to start. What do you think?

[00:07:48] Amber Fuchs: Yeah, no, I think that's an absolutely a great idea. I think that's wonderful. And I also liked the idea of using those, tools and tips that you've included in the first [00:08:00] three episodes of the season.

[00:08:02] tied into a 30 day challenge specifically because a lot of people say that if you can do something consistently for 30 days, that's the barrier mental barrier. You need to start forming a habit.

[00:08:15] Jason Fuchs: We had some people turn those into habits. I've heard people of not drinking for 30 days and those same people, they don't drink anymore.

[00:08:23] Amber Fuchs: That's a great idea. I love that. So

[00:08:25] Jason Fuchs: what is, what's gonna be our next challenge? Well, putting you on the

[00:08:30] spot

[00:08:31] Amber Fuchs: for me, the next challenge is going to be to see how much I can eat and try. Okay.

[00:08:39] Jason Fuchs: That sounds like the best challenge ever.

[00:08:42] Congratulations to you on your success. And the 30 day challenge. We'll definitely celebrate with the junkiest food. We can find

[00:08:50] and I'm sure Juul will be partaking in the junk food as well.

[00:08:53] He's always looking for an excuse to eat cookies or ice cream.

[00:08:58] All right. Cakes and pies, [00:09:00] cakes and pies. Should we talk food now? Yes. All right, let's get into it now.

[00:09:04] Welcome back ladies and gentlemen, Amber, I have a fondness for breakfast food. I think breakfast is probably one of my favorite meals to cook. Matter of fact, especially when Juul cooks with me. We have a lot of fun, a lot of fun.

[00:09:26] I'm a pancake guy. I'm a waffle guy, carbs, maybe some sausage and bacon on the side, but I do love muffins every now. And. Ooh. I love a good muffin. Yeah. And speaking of muffins, I found a really neat recipe. I want to try again, because I think I've tried this before and I found this recipe on all

[00:09:45] It's called banana muffins 2 0 9. It leads me to believe that the first recipe may not have worked and that's okay. Based on the web. I can't remember where I got my first banana muffin recipe, [00:10:00] but based on the website, I'm pretty sure it was this website. And I'm pretty sure it was banana muffins one.

[00:10:05] We're going to try the new and improved version. What. Sounds good to me. All right. It's a simple recipe. It doesn't take long at all. You can always substitute the bananas with another fruit fresh pick strawberries got like 4,000 pounds of those not complaining at all.

[00:10:20] Love strawberries

[00:10:22] I use low-fat butter. I can't believe it's not butter. They actually have a light version and I use half the recommended sugar just to make it a little bit healthier. You can also substitute sweetener for the sugar too. I'm going to try these, maybe not this weekend, cause we're out of town, but maybe the following weekend.

[00:10:37] What do you think? Sounds great. All right. Okay. Ladies and gentlemen, if you're interested in some banana muffins, Head to our website, Sage path, It'll be in the blog section pool. Ready for some Q and a Amber. I'm ready. All right, let's do it. [00:11:00]

[00:11:02] Thank you for joining us for the Q and a portion of the show. Maverick sent me a fantastic email and he was complimenting dad since Amber. Oh, awesome. Yeah, he started listening during COVID his family. And he loves how the show has progressed. Cool. He's glad you're back to not so much a fan of the interviews.

[00:11:22] Thank you for the feedback. I love feedback positive or negative loves the new format. Cool. I guess the return of the old format. Yeah, it is still

[00:11:30] Amber Fuchs: slightly modified. I like the new format

[00:11:34] Jason Fuchs: too. I do too. It helps though. Your schedule's a little more open than it used to be.

[00:11:39] Amber Fuchs: Yeah, I can. Now that I'm focusing on some contract work, I can build it into my schedule.

[00:11:44] Jason Fuchs: Exactly.

[00:11:44] What a nice guy, Maverick, thank you so much. We appreciate you Maverick. He received a bonus. He wants to know what he should do with it. And I said this earlier, ladies and gentlemen, I'm wondering, are you anticipating a bonus? If you're [00:12:00] anticipating a bonus, I think you should have a thoughtful plan in place before you get that extra cash.

[00:12:07] And I think by doing so, you'll benefit most from that bonus. Now, if you need more time to consider your options, deposit the money in a savings account, it's going to be harder to chip away. At that money, if it's not connected to your debit card. And if it's not in your main checking account, I have some suggestions.

[00:12:25] And ladies and gentlemen, after today's episode Maverick, you'll have more clarity on what to do with that bonus. Ready, Amber I'm ready. All right. Suggestion, number one, account for taxes. If your employer does not withhold taxes from your bonus or doesn't withhold enough, make sure you set aside money for tax time.

[00:12:45] So you're not hit with that extra tax. That's so smart. It is. It is. Thank you. Suggestion. Number two, increase your bonuses. Value contributing the maximum allowed to a pre tax employer. Retirement [00:13:00] plan. 401k can make your bonus go further than using after tax dollars, especially if your employer matches those contributions.

[00:13:09] I mean, think about it. The bonus money goes into your 401k, your retirement plan at work before you pay taxes on. And it grows free until you take withdrawals in retirement. On top of that, your company may match whatever you put in.

[00:13:26] And there are limitations of course, but that's a huge win.

[00:13:29] Amber Fuchs: Yeah, absolutely. Instant

[00:13:32] Jason Fuchs: growth. Exactly. And who doesn't want free money. Right. I love that idea. If your income falls within IRS guidelines, you might be able to make a pre contribution to that. 401k I mentioned, and a traditional IRA, or you could add post tax contributions to a Roth IRA, which will grow tax.

[00:13:53] Roth IRAs are awesome. There's nothing out there that grows tax-free and gives you tax-free distributions in retirement. Amber, [00:14:00] I love that. Yeah. So we want to take advantage of those when we can suggested number three, put your money to work. Since that bonus is extra money, you might want to use that money for an investment that has longterm growth potential.

[00:14:15] Instead of coming up with additional investment money from your regular pay. Makes sense, suggestion, number four, build that emergency fund. Everyone should have liquid savings available to cover at least six months worth of living expenses. Heaven forbid the unexpected occur.

[00:14:37] If you keep your fun in a savings account, consider shopping around for the best rates. Not that anything you can get right now is good savings, checking, whatever. Just make sure this money is separate from your everyday money. Ladies and gentlemen, suggestion, number five, invest in yourself.

[00:14:55] Many of the most successful people continually pursue knowledge and increase their. [00:15:00] You might consider taking a code course, learning a language, hiring a health coach, pay for a professional certification or maybe enroll in a professional speaking program. Invest in yourself. That's a good idea.

[00:15:13] Thank you. Suggestion. Number six, plan and experience research indicates great memories. Often provide more satisfaction than purchases. So rather than thinking about what that next thing you'll buy will be, where do you want to go plan a vacation, give your household something to look forward to. And chances are when you book it in advance, you're going to save yourself a ton of money too.

[00:15:40] So that bonus is going to go much further.

[00:15:43] Amber Fuchs: Well, back in the day, when I was working in corporate America and received bonuses, that's how I would most often. Use my bonus would be

[00:15:52] Jason Fuchs: for vacation. Oh, really? Neat. Yeah. That's a great idea. And ironically, it's something I never thought of before putting this together.

[00:15:59] Amber Fuchs: for [00:16:00] me, it was something that I felt like with my salary and everything else that I was doing, like every paycheck, I wasn't living paycheck to paycheck, but those dollars were all planned. I knew where they were all going. And so I felt like I never really had the money for a vacation

[00:16:16] Jason Fuchs: except a bonus.

[00:16:18] Yeah. A lot of tips, Amber, how are you feeling? I love it. I think these

[00:16:22] Amber Fuchs: are great ideas. Thank you so much.

[00:16:24] Jason Fuchs: All right. Let's wrap this up in conclusion, ladies and gentlemen, Maverick. If you have funds from an annual bonus that you'd like to discuss or any changes to your financial goals for the year, we would love to hear, and we'd love to put a plan together to help you reach those.

[00:16:40] In fact, you can head to our website, Sage path,, click the calendar link at the top of the page. It's in the upper right corner schedule time with me. I am happy to make myself available to you. You can also call or email. All of that info is in the description of the. Anything you want to add, Amber?

[00:16:58] Amber Fuchs: No, I love this [00:17:00] though. I think this is great. Hope it helps you

[00:17:02] Jason Fuchs: Maverick. Well, thanks so much. Yeah, we appreciate you Maverick. And we appreciate all our listeners out there.

[00:17:07] I mean, You could be doing anything right now. The fact that you chose to spend your time listening to dad sense means more than, you know, we appreciate you. Thank you for being here.

[00:17:19] [00:18:00]