Dr Oz: Financial Advice + Prepare For Retirement & Pay Off Debt

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Dr Oz: Financial Expert Ric Edelman

Dr Oz welcomed financial expert and best-selling author Ric Edelman to his show. He said he wanted to change the way we think about money, and Ric said that we should rethink the way time and money work together. Ric said it’s not about the income or debt you have, it all has to do with your mind. Ric says financial maturity has nothing to do with your actual age, but rather to do with your money habits.

Dr Oz: What’s Your Financial Age?

Dr Oz: Financial Advice + Prepare For Retirement & Pay Off Debt

Dr Oz talked to Ric Edelman to get his advice for how to better manage your finances, get rid of credit card debt, and prepare for retirement. ([email protected] / flickr)

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Ric said it’s all about how you’re handling your money. He explained that if you have the financial age of a teenager, that means you’re an impulsive spender, you likely owe more on your credit cards than a year ago, and you have a zero month cushion. Dr Oz said a lot of adults are living like teenagers in terms of their money.

There are also some adults who are acting middle aged in terms of their money, in that they acknowledge their responsibilities, they have shrinking credit card balances, and they have a three month cushion. The cushion means that if they were to lose their income, they could last about three months before going completely broke.

The best age to be at regarding your money is the retirement-ready age. At the retirement-ready age, you’re in control of your planning and your credit card balances are paid off every month. You also have ten times your annual salary in savings.

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What would your financial age be?

Dr Oz: Are You Worried About Money?

Dr Oz asked his audience who would consider themselves a step behind where they want to be and a lot of the audience raised their hand. Dr Oz shared that approximately 70% of people are worried about their finances. Ric has a way to help, and he started by talking to a woman who was 32-years-old but considered herself a teen when it comes to the way she spends her money.

She shared that there are so many places to put your money, so it easily becomes overwhelming. Ric said the number one thing that motivates people when it comes to money is fear. Ric said we have to recognize that money is just a symptom of how we feel about our lives, and people use it as extensions of power or to mask other issues.

Dr Oz: Pay Off Your Credit Card Debt

Ric said you first have to pay off your credit card debts. Fundamentally, you should empty out your bank account. Ric explained that so many people have money in the bank but also have credit card balances. He said the interest you’re earning in the bank is “horrifically low” but the interest on credit card debt is “massive.” He said you should take the money you have in the bank and use it to get rid of your credit card debt. He said the debt is crushing you, so you have to alter your spending habits in order to make yourself feel better.

Dr Oz: Compound Your Money

Dr Oz then talked to a woman who believes she’s at the middle-age level with her money. Ric said we are all incapable of saving enough money to accomplish our goals. He said you need your money to earn more money, which is called compound growth. By compounding on a regular basis, your money will work as hard as you do. Dr Oz said to think of your  money as a snowball rolling in the snow.

He said you have to be willing to invest your money where you can earn competitive returns. You first have to educate yourself a little more and find a financial adviser who has the experience and expertise that you lack.

Dr Oz: Are You Retirement Ready?

Dr Oz then talked to a woman who believes that she’s retirement ready. She said she first had to create a plan and figure out when she wanted to retire. She also had to look at the money she had coming in versus the money going out. She writes everything down and is finally ready to retire this year.

Ric said the easiest thing to do right now is to start saving for retirement either in a retirement plan or in an IRA entirely on your own. He said it’s the number one thing that matters for your future.

Do you feel financially ready for retirement? What are you doing to prepare? Do you think Ric’s advice was helpful?

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