# Financial Advice: LaToya discusses the importance of financial literacy, budgeting, wealth building, retirement planning.

An episode of [Money Making Conversations Master Class](https://invisiblenetwork.ai/podcast/1264705641), 26 Aug 2026, 29 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/b1db7263-d1a3-4d00-8976-af62012aab44/c84a3796-ef5c-4fa1-aa0d-b4cb00d634ac/audio.mp3?utm_source=Podcast&in_playlist=35a10561-3e1b-4d05-a529-af62012aab6a

Listen and subscribe to Money Making Conversations on iHeartRadio, Apple Podcasts, Spotify, www.moneymakingconversations.com/subscribe/ or wherever you listen to podcasts. New Money Making Conversations episodes drop daily. I want to alert you, so you don’t miss out on expert analysis and insider perspectives from my guests who provide tips that can help you uplift the community, improve your financial planning, motivation, or advice on how to be a successful entrepreneur. Keep winning! Two-time Emmy and Three-time NAACP Image Award-winning, television Executive Producer Rushion McDonald interviewed LaToya Maddox. Founder of Infinity Financial Wealth Management and author of Change Your Mind, Change Your Money, to discuss the importance of financial literacy, budgeting, wealth building, retirement planning, and the mindset shifts necessary to achieve long-term financial success. The conversation focused on helping individuals and families gain clarity about their finances, develop healthy money habits, and create sustainable wealth through intentional planning. Key Takeaways 1. Financial Success Starts with Mindset LaToya believes that financial challenges often have less to do with money itself and more to do with behavior. While most people know they should save and invest, lasting change only happens when they address the habits and beliefs driving their financial decisions. Lesson: Change your thinking about money before trying to change your finances. 2. Clarity Creates Financial Confidence Many people feel overwhelmed because they don't have a complete picture of their financial situation. LaToya helps clients organize their assets, liabilities, income, and expenses into a clear snapshot. Lesson: You can't improve what you don't understand. Financial clarity is the first step toward building wealth. 3. A Budget Is About Priorities, Not Restrictions Instead of viewing a budget as limiting, LaToya encourages people to see it as a spending plan that reflects their values and goals. Lesson: A budget simply tells your money where to go instead of wondering where it went. 4. Small Spending Habits Can Become Wealth Killers Many people focus on major purchases while ignoring daily spending habits. Frequent dining out, impulse purchases, subscriptions, and convenience spending can quietly undermine financial goals. Lesson: Wealth is often built or lost through consistent daily decisions. 5. Be Honest About Your Finances LaToya stressed that financial planning only works when clients are completely honest about how they earn, spend, save, and invest money. Lesson: Accurate financial results require honest financial conversations. 6. Consistency Builds Successful Businesses As an independent financial advisor for more than 20 years, LaToya attributes her longevity to consistency, networking, visibility, and staying focused through difficult periods. Lesson: Business success comes from showing up consistently, even when progress feels slow. 7. It's Never Too Late to Improve Your Financial Future For individuals in their 40s and 50s who feel behind, LaToya recommends focusing on current reality rather than regret. Lesson: Start with where you are today. The best financial plan is the one you begin now. 8. Know Your Numbers One of the most important financial exercises is calculating your net worth by understanding exactly what you own, what you owe, and your cash flow. Lesson: Financial awareness creates financial power. 9. High Income Does Not Automatically Create Wealth Many high earners experience "lifestyle creep," increasing their spending as their income rises instead of investing and building assets. Lesson: Building wealth requires accumulating assets, not simply earning a larger paycheck. 10. Retirement Is Really About Freedom LaToya prefers the term "Freedom Day" over retirement because different people have different visions for their future. The goal is creating sustainable income that…

## Transcript

[0:00] Speaker 1: Welcome to the show. I'm Rashawn McDonald, the host of
[0:03] Speaker 1: Money Making Conversations Masterclass, where we encourage people to stop
[0:06] Speaker 1: reading other people's success stories and start planning their own. Now,
[0:11] Speaker 1: you don't want to miss an episode of Money Making
[0:13] Speaker 1: Conversations Masterclass. So right now, follow or subscribe to Money
[0:17] Speaker 1: Making Conversations. It's free and you can find it on
[0:20] Speaker 1: the iHeartRadio app, Spotify, Apple Podcasts or wherever you get
[0:25] Speaker 1: your podcast. Now, sit back and listen. as we unlock
[0:28] Speaker 1: the secrets to their success on Money Making Conversations Masterclass.
[0:34] Speaker 1: My guest is the founder of Infinity Financial Wealth Management
[0:37] Speaker 1: and author of Change Your Mind, Change Your Money. She
[0:41] Speaker 1: helps individuals and families transform the way they think about money.
[0:46] Speaker 1: Please welcome to Money Making Conversations Masterclass, Latoya Maddox. How
[0:50] Speaker 1: you doing, Ms. Maddox?
[0:51] Speaker 2: I'm doing well, Rashawn. How are you?
[0:54] Speaker 1: Great. Thank you. When it's financial literacy space, why is that?
[0:59] Speaker 1: It's like an industry segment that has exploded. Has it
[1:05] Speaker 1: been because of YouTube or is it because of social media?
[1:10] Speaker 1: What has made that been such two terms that have really,
[1:15] Speaker 1: really taken on a life of its own in the
[1:19] Speaker 1: culture that we live in today, financial literacy?
[1:23] Speaker 2: I think that it's because we've witnessed a couple of
[1:26] Speaker 2: financial crises and people are understanding that with the financial
[1:31] Speaker 2: crisis that we witnessed, the layoffs, the uncertainty in the economy,
[1:36] Speaker 2: people are finally understanding that it all starts at home
[1:40] Speaker 2: and that we have to get our financial houses in
[1:42] Speaker 2: order so that anytime these economic cycles come through, that
[1:45] Speaker 2: we are positioning ourselves to be able to withstand them.
[1:50] Speaker 1: Now, your book, Change Your Mind, Change Your Money. Why
[1:54] Speaker 1: did you write that book?
[1:57] Speaker 2: I wrote that book just out of years of experience
[2:01] Speaker 2: of working with clients. I found that rarely is it
[2:05] Speaker 2: about the money. We all know that we need to save.
[2:10] Speaker 2: We all know that we need to invest. But when
[2:13] Speaker 2: you take a peek at everything, we know that we
[2:16] Speaker 2: have to identify those behaviors that drive our financial decision
[2:19] Speaker 2: making in order to make a real change. And so
[2:23] Speaker 2: I wrote Change Your Mind, Change Your Money just to
[2:25] Speaker 2: hit at that.
[2:27] Speaker 1: And the result is you are, are you trying, let's
[2:31] Speaker 1: put it this way. Your company, Infinity Financial Wealth Management.
[2:35] Speaker 1: Individuals come to your business because of what?
[2:41] Speaker 2: They come to me because they want some type of,
[2:44] Speaker 2: I guess, a clearer picture of their finances.
[2:47] Speaker 1: Right.
[2:47] Speaker 2: They're coming to me because they're either in transition or
[2:51] Speaker 2: they don't know where their money is going. They need clarity.
[2:55] Speaker 2: They want help trying to get to their destination.
[2:59] Speaker 1: And with that being said, Latonya, how do they come
[3:04] Speaker 1: into your world? Do they have to fill out a form?
[3:09] Speaker 1: Do they have to answer a series of questions? Do
[3:12] Speaker 1: they have to present a financial portfolio? How does one
[3:15] Speaker 1: do business with LaToya Maddox?
[3:19] Speaker 2: So coming into my world is very easy. So I
[3:22] Speaker 2: don't do the traditional where you have to bring me
[3:25] Speaker 2: your portfolio, your account statements. Coming into my world actually
[3:28] Speaker 2: just starts with a conversation. So I use one tool
[3:33] Speaker 2: that I do use is something called Asset Map. And
[3:35] Speaker 2: what it does is it helps me take your financial
[3:39] Speaker 2: life and put it on one page. And I like
[3:43] Speaker 2: to tell people that your financial life is like a
[3:44] Speaker 2: junk drawer. So what I do is I try to
[3:46] Speaker 2: take everything out of your junk drawer and lay it
[3:48] Speaker 2: out for you. And then we just kind of talk
[3:51] Speaker 2: about what you have. And we have those conversations about,
[3:54] Speaker 2: you know, why did you purchase this particular investment? Why
[3:58] Speaker 2: do you have this particular life insurance policy? And then
[4:00] Speaker 2: just figure out the holes or gaps in your current strategy.
[4:05] Speaker 2: And then that's how we figure out how I can
[4:07] Speaker 2: actually help you.
[4:09] Speaker 1: Now, that's good to hear. So, You know, because you
[4:12] Speaker 1: hear all these things, you know, people tell you to
[4:14] Speaker 1: cut back on good things. Like I consider them good
[4:17] Speaker 1: things because I live a busy life. You know, cut
[4:20] Speaker 1: back on your Netflix or your Prime or they tell
[4:24] Speaker 1: you to. you know, shop generic groceries and, you know,
[4:28] Speaker 1: all those things. I work very hard to make sure
[4:32] Speaker 1: I live the life and buy the things that I want.
[4:35] Speaker 1: But I'm telling you, I am a person who is
[4:37] Speaker 1: a coupon clipper. I'm telling you that right now. I'll
[4:40] Speaker 1: tell you, you know, I am a person who I'm
[4:43] Speaker 1: a loyalty club member. I would tell you as a
[4:45] Speaker 1: major gas grocery store chain that if you buy gas
[4:49] Speaker 1: from them and you shop by their groceries, they will
[4:52] Speaker 1: give you a discount. I, I get very excited, Latoya,
[4:55] Speaker 1: when I bought enough groceries where it's a dollar off
[4:58] Speaker 1: a gallon of gas. So there are things that you
[5:02] Speaker 1: can look at me and go, Rashawn, he's just. But
[5:04] Speaker 1: I am I am aware that one can trim here
[5:08] Speaker 1: and there when they come to you. Are you a
[5:10] Speaker 1: person that monitors people's spending habits or suggest they cut
[5:15] Speaker 1: back here and there?
[5:18] Speaker 2: I always say people, when they hear the word budget,
[5:21] Speaker 2: they tense up, right?
[5:22] Speaker 1: That's what I'm saying, right? You hear budget, you're like,
[5:26] Speaker 1: oh my God, I'm being restricted. I don't acutely put
[5:29] Speaker 1: that out there. You know what I'm saying? This is
[5:31] Speaker 1: my budget. You can't take away my Netflix.
[5:33] Speaker 2: You can't.
[5:34] Speaker 1: But I'm going to shop over here at the grocery
[5:35] Speaker 1: store to save me a little money when I pump
[5:38] Speaker 1: up my gas. You know, it might not be $ 100.
[5:41] Speaker 1: It might be just $ 80 worth of gas a month
[5:43] Speaker 1: that I save. And maybe I can take that little
[5:45] Speaker 1: money I saved on gas, I can pay my Netflix bill,
[5:48] Speaker 1: things like that. That's how I operate mentally as you
[5:50] Speaker 1: start looking at my budget, telling Rashawn to cut back.
[5:53] Speaker 1: But let's talk about your budget when you're talking to
[5:55] Speaker 1: your clients.
[5:56] Speaker 2: So when I'm talking to my clients about budget, first
[5:59] Speaker 2: thing I do first is let's see how you're spending
[6:01] Speaker 2: your money. So what I like to do is just
[6:04] Speaker 2: get a snapshot of how you're spending your money. And
[6:07] Speaker 2: I have them reframe how they're thinking about a budget.
[6:10] Speaker 2: So instead of thinking about a budget as being restrictive,
[6:13] Speaker 2: look at a budget as saying, hey, this is how
[6:15] Speaker 2: I want to spend my money. I want my money
[6:18] Speaker 2: to go into the different buckets. So I want my money,
[6:21] Speaker 2: of course, to pay for my housing, my car, my
[6:24] Speaker 2: My fun thing. So if I like to travel, if
[6:27] Speaker 2: I like clothes, if I like to eat out, but
[6:30] Speaker 2: we know money is not infinite. So now we have
[6:33] Speaker 2: to determine what's more important. So is traveling more important
[6:37] Speaker 2: than eating out? Or is eating out more important than
[6:43] Speaker 2: maybe all designer clothes? So you have to figure out
[6:46] Speaker 2: what it is that you want.
[6:48] Speaker 1: Please don't go anywhere. We'll be right back with more
[6:51] Speaker 1: Money Making Conversations Masterclass. Now I need for you to
[6:54] Speaker 1: do me a favor. Right now, to follow or subscribe
[6:58] Speaker 1: to Money Making Conversations, it's free. And you can find
[7:01] Speaker 1: it on the iHeartRadio app, Spotify, Apple Podcasts, or wherever
[7:06] Speaker 1: you get your podcasts. Please do me a favor. Follow
[7:09] Speaker 1: or subscribe Money Making Conversations. Welcome back to Money Making
[7:16] Speaker 1: Conversations Masterclass with me, Rashawn McDonald.
[7:19] Speaker 2: Now, you can't have everything.
[7:21] Speaker 1: Well, you know, I'm going to act like I'm the client.
[7:24] Speaker 1: I'm going to act like I'm the client right there, Latoya.
[7:28] Speaker 1: Is traveling more important than eating out? I love to
[7:31] Speaker 1: eat out. I love to eat out. So maybe because
[7:34] Speaker 1: I'm not traveling, I can save a little money because
[7:36] Speaker 1: I'm just eating out. I'm not trying to go to Europe.
[7:39] Speaker 1: I'm not trying to go to Alaska. I'm not trying
[7:40] Speaker 1: to go to Jamaica.
[7:42] Speaker 2: We got to have our goals. So it all starts
[7:44] Speaker 2: with goals.
[7:45] Speaker 1: Okay, cool. And what was that other question you asked
[7:47] Speaker 1: about designer clothes versus what?
[7:49] Speaker 2: Well, just designer clothes. You just got to figure out
[7:51] Speaker 2: where you're spending your money.
[7:52] Speaker 1: Oh, okay.
[7:53] Speaker 2: So most budget busters, and I call those budget busters.
[7:56] Speaker 2: Most budget busters is actually food. It's food. It's those subscriptions.
[8:02] Speaker 2: It's those things I call those leaky pockets. Those are
[8:04] Speaker 2: the little things that you $ 20 here, $ 30 there. That's true.
[8:08] Speaker 2: Impromptu shopping. Go into Ulta. Go into different places where
[8:15] Speaker 2: you just spend unnecessarily. I won't say unnecessarily, but impromptu spending.
[8:20] Speaker 2: But if you have a budget, meaning you know where
[8:23] Speaker 2: your funds are being allocated, you can actually allocate for
[8:26] Speaker 2: your fund.
[8:29] Speaker 1: Money. I have to agree with you on the budget.
[8:31] Speaker 1: I will tell you, you know, success is kind of
[8:35] Speaker 1: like a term. People can throw out there. But that
[8:39] Speaker 1: doesn't mean that you're being successful the right way. I'm
[8:42] Speaker 1: just talking about Rashad McDonald right now. And I was
[8:45] Speaker 1: a person, ran companies basically and didn't have a budget set.
[8:51] Speaker 1: You know what I'm saying? When I say a budget,
[8:52] Speaker 1: I mean knowing your electricity bill, your waste management bill,
[8:57] Speaker 1: knowing all the insurance, dividing up what your property tax is.
[9:01] Speaker 1: equal out each month. Knowing the taxes you pay on
[9:04] Speaker 1: your payroll, that's a budget. You know, I might, I
[9:08] Speaker 1: just had top line budget, like my light bill, my gas,
[9:12] Speaker 1: my annual insurance for my rent, if I was paying
[9:14] Speaker 1: rent and things like that. Because you're talking about budget,
[9:18] Speaker 1: like I just said, from the beginning all the way
[9:21] Speaker 1: to the minor things. So when you push that forward,
[9:24] Speaker 1: This is what you're spending every month versus this is
[9:28] Speaker 1: what I think I'm spending. And I was operating like that.
[9:31] Speaker 1: And that is not the smart way to operate. Correct. Correct.
[9:35] Speaker 2: So think about when you're getting ready to go on
[9:37] Speaker 2: a diet, a real diet. So we know the diet
[9:40] Speaker 2: where we say we just want to cut back. But
[9:43] Speaker 2: when you work with a nutritionist, what is the first
[9:45] Speaker 2: thing the nutritionist wants you to do? They don't really
[9:48] Speaker 2: put you on a straight diet yet. The first thing
[9:50] Speaker 2: they want you to do is write down everything you eat.
[9:54] Speaker 2: And they want you to write down everything you eat
[9:56] Speaker 2: first to make you aware of what you're eating. So
[10:00] Speaker 2: the same thing with the budget. When I'm working with clients,
[10:03] Speaker 2: I don't immediately come in and say, we need to
[10:05] Speaker 2: cut Netflix. We need to cut out travel. We need
[10:07] Speaker 2: to cut out shopping. First, we want to diagnose everything.
[10:10] Speaker 2: We want to see how you're spending your money. Because
[10:13] Speaker 2: there's no wrong way. I want to get people to
[10:15] Speaker 2: think that when you're working with a financial planner, I'm
[10:17] Speaker 2: not coming in and say you're doing anything wrong. We
[10:20] Speaker 2: just want to come in and optimize what you're doing
[10:22] Speaker 2: so that we can get you to your goals. So
[10:25] Speaker 2: when I'm looking at how you're spending your money, I
[10:27] Speaker 2: just want to see how you're doing it. And then
[10:29] Speaker 2: is it serving you? So if you're not comfortable with
[10:32] Speaker 2: how you're spending your money, so you're coming to me
[10:35] Speaker 2: to help you. Now we can just maybe make some
[10:38] Speaker 2: tweaks in how you're spending your money and putting the
[10:40] Speaker 2: money in its proper buckets. Wow.
[10:43] Speaker 1: I'm talking to Latoya Maddox, founder of Infinity Financial Wealth
[10:47] Speaker 1: Management and author of the book, Change Your Mind, Change
[10:50] Speaker 1: Your Money. I've read that book. She was surprised I
[10:53] Speaker 1: read her book. Now, you were not. You were very
[10:55] Speaker 1: surprised I read your book. She was like, this is
[10:58] Speaker 1: my second interview with her. And I was very impressed
[11:00] Speaker 1: on my other platform that I wanted to bring her
[11:03] Speaker 1: on WCLK here in Atlanta and extremes nationwide to let
[11:07] Speaker 1: people understand that the importance of financial literacy starts with
[11:11] Speaker 1: consistent conversation. and a high level of honesty, because if
[11:15] Speaker 1: you're not honest about what you're trying to achieve when
[11:18] Speaker 1: you start putting together a budget, then putting together a budget,
[11:22] Speaker 1: you know, in other words, you can't, if you lie
[11:25] Speaker 1: about the money you're spending, it's eventually going to catch
[11:27] Speaker 1: up with you. Correct, Latoya?
[11:29] Speaker 2: Correct. So you think about software, garbage in, garbage out.
[11:32] Speaker 2: So if you're not honest with yourself, then you're not
[11:35] Speaker 2: going to get the outcome that you're hoping for.
[11:38] Speaker 1: Now, let me ask you this. You've been doing this
[11:41] Speaker 1: over 20 years, okay?
[11:42] Speaker 2: Yes.
[11:42] Speaker 1: 20 years taught you about building a business, because this
[11:45] Speaker 1: show is about entrepreneurship and small businesses and nonprofits. 20
[11:51] Speaker 1: years taught you about building a business and creating longevity,
[11:55] Speaker 1: because that's the whole thing that I look at my life.
[11:58] Speaker 1: I look back at my life and I go, wow, Rashawn,
[12:00] Speaker 1: you've done a lot. And I really, and there are
[12:03] Speaker 1: various different things. different runways. And so, because a lot
[12:07] Speaker 1: of people call me a renaissance man because I've been
[12:09] Speaker 1: fortunate to be successful in a lot of different runways.
[12:12] Speaker 1: But when we're just talking about the everyday person who's
[12:16] Speaker 1: focused on one thing, what has building a business and
[12:19] Speaker 1: creating a longevity? Give us some tips.
[12:23] Speaker 2: I would say of being consistent with what you're doing
[12:27] Speaker 2: and stay in focus, even when it looks bleak. So
[12:32] Speaker 2: in my business, financial services is very, I would say, competitive.
[12:37] Speaker 2: I started out independent. I never worked for a big firm.
[12:41] Speaker 2: So I always only had my name that I was
[12:43] Speaker 2: working with. So when people saw Latoya Maddox, that was
[12:47] Speaker 2: all I was able to market, so to speak. And
[12:50] Speaker 2: so I had to stay consistent. I had to stay
[12:52] Speaker 2: out marketing, networking and meeting people. And the only way
[12:55] Speaker 2: to stay in this business is to be visible.
[12:57] Speaker 1: Mm hmm.
[12:59] Speaker 2: Wow.
[13:00] Speaker 1: We'll be right back with more Latoya Maddox. I got
[13:03] Speaker 1: some questions about people out there in their 40s and 50s.
[13:05] Speaker 1: That's going to be my question because, you know, 40s
[13:07] Speaker 1: and 50s, actually you start thinking early in your 20s.
[13:11] Speaker 1: I will share that story about when somebody gave me
[13:14] Speaker 1: some advice in my 20s. I may have told that
[13:16] Speaker 1: story 10 times, but I'm going to keep telling that
[13:17] Speaker 1: story because to gain generational wealth, to gain long-term wealth,
[13:23] Speaker 1: you have to be patient. You'll hear about my story
[13:27] Speaker 1: of not being patient and also For someone in their
[13:30] Speaker 1: 40s or 50s who feel behind financially, what should they
[13:33] Speaker 1: do first? Latoya Maddox will tell you upon our return.
[13:37] Speaker 1: Don't go anywhere. Stay with us. More Money Making Conversation
[13:41] Speaker 1: Masterclass coming up next. Welcome back to Money Making Conversation
[13:48] Speaker 1: Masterclass hosted by me, Rashawn McDonald. Let's get back into it. Hi,
[13:53] Speaker 1: this is Rashawn McDonald. I'm interviewing Latoya Maddox, a financial planner,
[13:58] Speaker 1: past 20 years, and she's been telling me, giving me advice,
[14:04] Speaker 1: giving my audience advice about budgets. But one thing I've
[14:08] Speaker 1: said before I spoke earlier was about being patient. I
[14:12] Speaker 1: was interviewing David and Tamela Mann, and they said, during
[14:18] Speaker 1: my interview, Tamela said, somebody told me one time to
[14:22] Speaker 1: just save $ 50 a month, just save $ 50 a month. Well,
[14:25] Speaker 1: way back then, she didn't want to hear it. I'm
[14:28] Speaker 1: in one time in my 20s. A man told me
[14:30] Speaker 1: to save $ 150 a month, save $ 150 a month. Guess what?
[14:35] Speaker 1: I didn't want to hear it. And like she said, Rashawn,
[14:38] Speaker 1: if I just saved that $ 50, I'd have probably paid
[14:41] Speaker 1: for my house when I was 40. If I just
[14:44] Speaker 1: say that $ 150, I probably wouldn't be talking on this
[14:48] Speaker 1: radio show because compound interest. will put me in a
[14:51] Speaker 1: position to have turned that money and flipped it and
[14:54] Speaker 1: flipped it and flipped it. And guess what? That's how
[14:57] Speaker 1: wealthy people gain wealth. That's how wealthy people stay wealthy.
[15:01] Speaker 1: Is that a correct assumption statement that I'm making there? Latoya,
[15:05] Speaker 1: you're the financial literacy expert.
[15:08] Speaker 2: Yes, that is definitely correct. So that's talking about the
[15:10] Speaker 2: time value of money. So, yes, if you even started
[15:13] Speaker 2: investing or saving in your 20s, your money has time
[15:17] Speaker 2: to fit and earn money and grow financially. compounded for
[15:21] Speaker 2: 20 years, 30, 40 years. And you don't have to
[15:25] Speaker 2: save as much as someone that's starting in their forties
[15:28] Speaker 2: or fifties.
[15:29] Speaker 1: Which leads right into my question for someone in their
[15:31] Speaker 1: forties or fifties who feels behind financially, what should they
[15:35] Speaker 1: do first? Or is it really too late to change
[15:38] Speaker 1: their financial future?
[15:40] Speaker 2: So one of the first things I like to start
[15:42] Speaker 2: is kind of set the stage to get over, not
[15:46] Speaker 2: get over, but to not feel so regretful, right? So
[15:50] Speaker 2: we know that, okay, the time has passed. We got
[15:52] Speaker 2: to deal with what's going on. So we have to
[15:54] Speaker 2: deal with reality. And what I like to do is
[15:56] Speaker 2: frame it as we just need to get some clarity
[15:59] Speaker 2: on the situation. So one of the things you want
[16:02] Speaker 2: to do is know what resources you got and then
[16:04] Speaker 2: what decisions are going to give you the best outcome
[16:07] Speaker 2: going forward. So what resources you have is really knowing
[16:10] Speaker 2: your numbers. So knowing your numbers is knowing what do
[16:13] Speaker 2: you own as far as your assets. So calculating... everything
[16:17] Speaker 2: that you own, your house, your car, your bank accounts,
[16:20] Speaker 2: your 401ks, your 529 plans, all of your assets, and
[16:24] Speaker 2: then calculating everything that you owe to all of your liabilities,
[16:28] Speaker 2: mortgage payments, student loans, credit cards, so getting a true
[16:33] Speaker 2: tracking of your network, right? Then you want to get
[16:36] Speaker 2: an idea of your cash flow. So what's coming in
[16:39] Speaker 2: from all income sources. So it could be W-2 income,
[16:42] Speaker 2: self-employment income, rental income, and then build on what's going out.
[16:48] Speaker 2: So yes, that's your expenses. So you just really need
[16:51] Speaker 2: to know your numbers and then find out how you're
[16:54] Speaker 2: saving and investing. So are you investing in your company's
[16:58] Speaker 2: 401k plan? Are you saving a certain percentage of your
[17:01] Speaker 2: salary in your high yield savings accounts for reserves? So
[17:05] Speaker 2: before looking for that perfect investment for anything, you just
[17:08] Speaker 2: have to really understand your current financial picture.
[17:12] Speaker 1: Wow. Talking to Latoya Maddox. How can we get in
[17:15] Speaker 1: touch with you, Latoya?
[17:17] Speaker 2: So you can find me online at LatoyaMaddox.com. So that's L-A-T-O-Y-A-N-A-D-D-O-X, LatoyaMaddox.com.
[17:28] Speaker 2: And then my book, Change Your Mind, Change Your Money,
[17:31] Speaker 2: is available on Amazon. Awesome.
[17:33] Speaker 1: Now, here's a question. Many people earn good incomes but
[17:37] Speaker 1: still don't feel financially secure. What's the difference between making
[17:41] Speaker 1: money and actually building wealth?
[17:47] Speaker 2: Making money and building wealth starts with your assets. So
[17:51] Speaker 2: just because you have, I call that high earners, just
[17:54] Speaker 2: because you're a high earner, you could have done something
[17:58] Speaker 2: as I call lifestyle creep. So because you're a high earner,
[18:01] Speaker 2: that means you can also be living up to that income. Right.
[18:04] Speaker 2: Meaning you're not purchasing assets that are building value. You're
[18:09] Speaker 2: basically living your income instead of savings.
[18:14] Speaker 1: Well, you know, I would say, you know, because there
[18:19] Speaker 1: are people out there, you hear these stories, you know,
[18:20] Speaker 1: they multimillionaires, but they live like a bag lady, just
[18:24] Speaker 1: using the term bag lady. They live like they're homeless,
[18:27] Speaker 1: but they're super rich. And so I will tell you,
[18:31] Speaker 1: every time I moved up the economic ladder, I bought
[18:34] Speaker 1: something that matches my economy. That's basically what you're saying.
[18:38] Speaker 1: And so in our mind, just slowing a person down
[18:42] Speaker 1: like Rashawn McDonald. Okay, I'm moving up the economic ladder.
[18:45] Speaker 1: What advice do you give a person like me? And
[18:48] Speaker 1: I'm not keeping up with the Joneses now. I just
[18:51] Speaker 1: know that, you know, if I want a tailor made suit,
[18:54] Speaker 1: I go and it feels right. And I look at
[18:57] Speaker 1: my closet and I need that color. I go get one.
[19:00] Speaker 1: But I also know that when folks, people jump every shot,
[19:03] Speaker 1: you're spending money. I know that my tailor made suits
[19:06] Speaker 1: last way longer than a store bought suit. That may
[19:09] Speaker 1: be cheaper. Know that for a fact. That is a fact. Now,
[19:13] Speaker 1: how do you slow down a person like Rashawn McDonald,
[19:17] Speaker 1: who keeps moving up the economic ladder, but tends to
[19:19] Speaker 1: keep matching his success with purchases?
[19:25] Speaker 2: So I would go back to knowing our numbers. If
[19:29] Speaker 2: you were my client. So if you were my client,
[19:32] Speaker 2: I would go back to, let's say, if our goal
[19:34] Speaker 2: is retirement planning, it could be maybe a second home.
[19:38] Speaker 2: I would first find out what our reserves need to
[19:42] Speaker 2: be like. So if we need to have X number
[19:44] Speaker 2: of dollars in our savings account, let's just call it $ 50, 000.
[19:47] Speaker 2: Do we have that? Are we contributing 20% of our
[19:52] Speaker 2: income to the various retirement accounts and investment accounts? If
[19:57] Speaker 2: we're doing that, then we're safe. And then are we
[20:01] Speaker 2: on track to meet other goals? If we are, then
[20:04] Speaker 2: maybe you can get that seat. Now, if you are
[20:07] Speaker 2: sacrificing your goals for the seed, then that's a different discussion.
[20:12] Speaker 1: I'm going to tell you something, Latoya. I'm pretty sure
[20:15] Speaker 1: you make some of your clients, I'm just in a
[20:17] Speaker 1: fun way, they can get frustrated with you because you're
[20:19] Speaker 1: telling them this is what has to happen. But the
[20:23] Speaker 1: truth is, will they listen? Because you have a plan.
[20:27] Speaker 1: One thing I admit to her when I met her is,
[20:30] Speaker 1: She's very analytical. She writes it down. She shows you
[20:34] Speaker 1: this chart and she says she's not going to operate
[20:38] Speaker 1: in some global theory and there's some stars and you
[20:41] Speaker 1: look up in the moon. She's going to put it
[20:43] Speaker 1: right down on paper. If you do this, you do this,
[20:46] Speaker 1: you do this, you can be successful. Now, you have
[20:49] Speaker 1: a person who they said yes to all the things
[20:52] Speaker 1: they're supposed to do, right? Then they start deviating from
[20:58] Speaker 1: the plan. What do you do then?
[21:01] Speaker 2: So we have our check-ins. And you're right. So that happens.
[21:04] Speaker 2: That's the real world. So everybody don't listen to Latoya
[21:07] Speaker 2: like they're supposed to. Absolutely. And so when that happens, well,
[21:12] Speaker 2: let me go back. When I'm working with clients, I
[21:14] Speaker 2: tell people all the time, I can give you the
[21:16] Speaker 2: best plan ever, but I have to hold you accountable.
[21:18] Speaker 2: So you're basically giving me permission to hold your feet
[21:21] Speaker 2: to the fire. So I actually get permission. say yes.
[21:26] Speaker 2: So once I have that permission, then that also means
[21:28] Speaker 2: that when we are meeting, if they're not doing the
[21:30] Speaker 2: things that I'm suggesting, I always let them know this
[21:33] Speaker 2: is a collaborative effort. If you're not going to do
[21:36] Speaker 2: what I'm asking you to do, then you're not going
[21:38] Speaker 2: to meet the goals. And if life also gets in
[21:40] Speaker 2: the way. So sometimes it's the client in the way
[21:42] Speaker 2: and then sometimes life gets in the way. And if
[21:44] Speaker 2: that happens, then we just make some adjustments.
[21:49] Speaker 1: So why is retirement planning about much more than simply
[21:54] Speaker 1: accumulating a large 401k balance. And that's one thought. And
[21:58] Speaker 1: what decisions should people be thinking about before they retire? Because,
[22:03] Speaker 1: you know, we plan to retire. And then you get
[22:07] Speaker 1: to what you call a nest egg. Because I don't
[22:08] Speaker 1: know what that nest egg is. Because I can go
[22:10] Speaker 1: online and say, if you have a million dollars, this
[22:12] Speaker 1: is what you can do with a million dollars if
[22:14] Speaker 1: you're 65. If you have a million dollars, this is
[22:16] Speaker 1: what you can do with a million dollars if you're
[22:18] Speaker 1: 40 years old. I'm starting because it confuses me because
[22:28] Speaker 1: I don't know. Which plan would work for me? But
[22:32] Speaker 1: it is tied to what you're saying, Latoya. What do
[22:36] Speaker 1: you want to live off of when you retire? If
[22:40] Speaker 1: you want to live off of $ 75, 000 a year, this
[22:43] Speaker 1: is your plan. If you want to live off of
[22:45] Speaker 1: $ 150, 000 a year, this is your plan. So it's based
[22:49] Speaker 1: on the plan that you want to live off of
[22:52] Speaker 1: that you set the retirement budget and potential investments, correct?
[23:01] Speaker 2: That is correct. And there's also some other things that
[23:03] Speaker 2: are going in there. So you got a lot of
[23:05] Speaker 2: decisions when you get to retirement. So remember, I told you,
[23:08] Speaker 2: I don't like to use the word retirement. I like
[23:10] Speaker 2: to use Freedom Day because everybody don't retire. Some people
[23:14] Speaker 2: work hard time. You know, so I like to use
[23:16] Speaker 2: the word Freedom Day.
[23:17] Speaker 1: I know. I apologize. That's true. She's a Freedom Day preacher.
[23:20] Speaker 1: She's a Freedom Day preacher. I apologize, Latoya.
[23:23] Speaker 2: So with your retirement, though, think about it. Some people
[23:26] Speaker 2: may have to take different Social Security strategies. You also
[23:30] Speaker 2: have to consider your different tax strategies. That's going to
[23:33] Speaker 2: determine how much money you're pulling out your portfolio. We
[23:36] Speaker 2: have health care decisions that need to be made in retirement.
[23:39] Speaker 2: And then we also have to think about longevity. We
[23:41] Speaker 2: have more people living into their 90s. So that's also
[23:45] Speaker 2: going to determine how much money you want to pull
[23:47] Speaker 2: out your portfolios because you need that money to last. Right.
[23:50] Speaker 2: So retirement really, again, is not just about reaching a
[23:54] Speaker 2: certain number. We're trying to create a sustainable income for
[23:57] Speaker 2: our clients. And that's going to vary based on what
[24:00] Speaker 2: that Freedom Day looks like for each person.
[24:03] Speaker 1: Cool. Now, this is really, really good because this is
[24:06] Speaker 1: the part of the conversation that I think everybody needs
[24:09] Speaker 1: to hear. I was doing an interview with John O'Brien.
[24:12] Speaker 1: He said, man, I'm so tired of Rashaun, hearing these
[24:15] Speaker 1: GoFundMe funerals. Everybody, nobody gets insurance. And, you know, if
[24:19] Speaker 1: you have a 40-hour week job, usually there's an insurance
[24:22] Speaker 1: policy that may be buried into your job plan that
[24:27] Speaker 1: will give you life insurance. If you unfortunately pass away,
[24:31] Speaker 1: that will cover your insurance. So your death. But insurance
[24:35] Speaker 1: plays a major role when you're protecting your assets, whether
[24:38] Speaker 1: you're living or dying, your estate planning, your generational wealth.
[24:41] Speaker 1: How do you look at your clients when it comes
[24:42] Speaker 1: to insurance?
[24:44] Speaker 2: So risk, I would take insurance and call it risk management.
[24:47] Speaker 2: I think that's the foundation of all plans. Now, insurance,
[24:52] Speaker 2: everybody is life insurance is not the end of the offer. Everybody.
[24:56] Speaker 2: So what I do is when I'm talking to people,
[24:58] Speaker 2: I always find out who is dependent on you for
[25:02] Speaker 2: their livelihoods. So meaning, do you have children that are
[25:05] Speaker 2: still dependent on you for income? Do you have a
[25:07] Speaker 2: spouse that is dependent on you for income in retirement
[25:11] Speaker 2: or even currently? And if that answer is yes, then
[25:14] Speaker 2: we dig into what the person's current assets are. So
[25:18] Speaker 2: in the event if you were to pass away prematurely,
[25:21] Speaker 2: can that family member or family continue their current lifestyle?
[25:25] Speaker 2: If the answer is no, then there may be an
[25:27] Speaker 2: opportunity to look at adding insurance as an insurance component.
[25:32] Speaker 2: And it's interesting that you mentioned about having employer life insurance.
[25:36] Speaker 2: That's definitely a start. But one thing to consider about
[25:39] Speaker 2: employer life is that if you left that company, most
[25:43] Speaker 2: employer plans are not portable. And so now you could
[25:46] Speaker 2: be left without insurance, trying to find insurance when you
[25:51] Speaker 2: leave that company. And if you are older... Let's say
[25:54] Speaker 2: if you started a job in your 20s and you
[25:56] Speaker 2: left the job in your 45, 50, you could have
[25:58] Speaker 2: developed a health condition that could have made you either
[26:01] Speaker 2: uninsurable or have to pay higher premiums. So life insurance
[26:04] Speaker 2: obviously is based on your current health. So you should
[26:07] Speaker 2: be looking at it, you know, obviously now.
[26:10] Speaker 1: Latoya, this is my final question. Thank you for coming
[26:13] Speaker 1: on Money Making Conversations Masterclass. This is Latoya Maddox that
[26:18] Speaker 1: I'm speaking to. If listeners could make Just three changes
[26:22] Speaker 1: after hearing this conversation that you and I have to
[26:25] Speaker 1: begin changing their money story. What would you tell them
[26:28] Speaker 1: to do, Latoya?
[26:31] Speaker 2: So three changes. One of the first things I would
[26:34] Speaker 2: do is have them identify some financial behaviors. that could
[26:41] Speaker 2: have been harmed, could have harmed them. So find out
[26:44] Speaker 2: like a good one. Like you mentioned, Roshan, I work hard,
[26:47] Speaker 2: so I'm going to buy that suit. So that's a
[26:49] Speaker 2: behavior saying I work hard, so I deserve it. Or procrastination.
[26:54] Speaker 2: So identify any of those financial behaviors that can be detrimental.
[26:59] Speaker 2: The second thing I would say is to know your numbers, right?
[27:03] Speaker 2: So find out how much you owe, how much you own,
[27:05] Speaker 2: and then know your cash flow. And then second is,
[27:10] Speaker 2: Speaking with a financial professional. I would love you to
[27:13] Speaker 2: call me, obviously. But if not me, speak with a
[27:16] Speaker 2: financial professional. If you are working with a company that
[27:19] Speaker 2: has a 401k plan, most 401k providers give you a
[27:23] Speaker 2: complimentary financial advisor session. So at least take advantage of that. Wow.
[27:30] Speaker 1: She's Latoya Maddox. That's Latoya Maddox dot com. She's the
[27:35] Speaker 1: founder of Infinity Financial Wealth Management Foundation. And her book,
[27:38] Speaker 1: Change Your Mind, Change Your Money, is available at Amazon.
[27:42] Speaker 1: Thank you for taking the time to come on the show.
[27:44] Speaker 1: You know, I find you'll be a wonderful speaker and
[27:47] Speaker 1: your advice. It allows me to, you know, solidify my
[27:52] Speaker 1: bad habits to make them good habits. But more importantly,
[27:54] Speaker 1: you're bringing information that my listeners will, again, hopefully listen
[28:00] Speaker 1: to and follow. And if they definitely get that book,
[28:03] Speaker 1: I believe it will change their lives. Thank you for
[28:05] Speaker 1: coming on our show, Latoya.
[28:07] Speaker 2: All right. Thank you so much for having me.
[28:09] Speaker 1: We'll talk soon, my friend. Thank you. Thank you for
[28:11] Speaker 1: listening to this episode. Now I need for you to
[28:14] Speaker 1: do me a favor right now to follow or subscribe
[28:17] Speaker 1: to Money Making Conversations. It's free and you can find
[28:20] Speaker 1: it on the iHeartRadio app, Spotify, Apple Podcasts, or wherever
[28:25] Speaker 1: you get your podcasts. Please do me a favor. Follow
[28:29] Speaker 1: or subscribe Money Making Conversations. Keep winning.

Shows are listed from Apple Podcasts' charts and directory, and Podcast Index where it is used. Every show and episode belongs to its publisher and plays from the publisher's own feed; this site hosts none of them.