In this episode of the Orderman Podcast, the guys are back from their summer break and ready to answer some of your questions! This week's questions include: How much more should a family strive to earn per year? What is the worst thing a family can complain about in regards to inflation and cost of living?
00:02:51.640You know, I do appreciate the fact that he's thinking about cost of living because I've seen a lot of people out there who assume that just because they make good money now,
00:03:00.300that in the next five or 10 or 20 or 30 years, that if they just keep their current income, that they'll be fine and you won't because of the eroding power of inflation.
00:03:18.240It's very, very hard to see and quantify.
00:03:21.300But if you look at the math, and it's a little hazy because I haven't talked about it for a long time, but if you have just a 3% inflation rate, and we're going to talk about that in a minute.
00:03:32.400But if you had just a 3% inflation rate over, I believe, 20 or 30 years, it erodes your spending power by half, which means that if you're making, for easy math, $200,000 per year today at a 3% inflation rate over, and I can't remember if it's 20 or 30 years,
00:03:48.320then that $200,000 is going to spend like $100,000, which means that if the milk is now $8 instead of $4, you can see how much of a problem that's going to be if your income just stays the same.
00:04:07.100Now, to go back to what I was saying with inflation and cost of living, we hear all sorts of numbers.
00:04:12.700We've heard that it's as high now as it's been in the last 40 years, which statistically is accurate.
00:04:17.400The interesting thing about the way the government calculates inflation and cost of living is they take out some of your everyday expenses that you would need, like food, like fuel for your vehicle.
00:04:30.300And what is impacted most currently by inflation?
00:04:53.320I don't know that there's a hard and fast rule, but I think there are things that you can control.
00:04:57.860Number one is you can control your spending.
00:05:00.460So being very careful about how you spend, when you spend.
00:05:04.140I know a lot of people who, when the going's good, they just spend, spend, spend, spend, and spend everything.
00:05:09.500And then when it's tough, they sell off everything they just bought over the past two to five years.
00:05:13.840It's not a great way to live because of the depreciating nature of cars and trailers and boats and all this other stuff that people buy.
00:05:22.020But if you can manage your spending and then also be smart when it comes to purchases.
00:05:29.360So one thing that I've seen a lot of people do is they'll go in and they want to buy a new house and they'll go in and they'll talk with a mortgage lender.
00:05:36.880And then that mortgage lender is going to give them about what they can qualify, right?
00:05:47.620Real estate agents want to sell homes.
00:05:49.220Lenders want to lend money so they can collect interest.
00:05:51.740So they're going to make sure that you're on the red line of what is possible.
00:05:56.440Not over because then that puts them at risk, but not under.
00:05:59.500They want you to buy the biggest home possible.
00:06:01.680And so I see people's income to debt ratio, specifically as it relates to their mortgage, be as high as like 40 and 50%.
00:06:10.700So if you're making 10 grand a month and you're paying five grand in mortgage payments, that's ridiculous.
00:06:19.360I would suggest that you pay no more than about 15%.
00:06:23.540And lenders and real estate agents are scoffing at me right now.
00:06:27.580That's because they have a conflict of interest.
00:06:30.000But you should not be spending more than 15% of your monthly income on your mortgage payment.
00:06:36.740It's just a ridiculous, ridiculous thing.
00:06:38.780Another way to look at that is two times your annual income.
00:06:42.540So if your income is a couple hundred thousand a year, $400,000, $450,000 home would be pretty appropriate and keep you at the right amount.
00:06:53.440So again, depending on interest rates, which are now increasing, it's just we are in a very, very difficult financial time right now.
00:07:02.260And we're just not experiencing the full ramification or weight of what we will over the coming months.
00:07:09.480The only other thing I would say to that, Kip, and I'd love to hear what you have to add, is you want to make sure that you're putting away anywhere from 15% to 20% of your income.
00:07:18.140That you're investing it, that it's being put aside, that you're saving, that you're doing all the right things and all the smart things with it.
00:07:26.000And then that will help you realize how much above cost of living and that sort of thing that you need to plan for.
00:07:32.900So there's no hard and fast rule, but there are some hard and fast rules that I live by that indirectly answer your question.
00:07:40.440Regarding inflation, are there particular investments or recommendations that you'd have, Ryan, that are inflation proof?
00:07:48.940Well, nothing's inflation proof because we don't really know how an investment is going to perform.
00:07:56.920If we did, then the interest rate would be significantly lower than it could potentially be.
00:08:03.460If you were to get a new bank account, a checking account, you're going to get, if any interest at all, you're going to get 0.001 interest.
00:08:11.980On a savings account, you might get half a percent, maybe, if you're lucky.
00:08:17.940On a CD, you might start getting into 2% to 3%.
00:08:23.180But if you look at what the market has done historically, typically that's going to outpace inflation.
00:08:28.900And the reason that it's going to outpace inflation, I'm talking about the stock market in particular,
00:08:33.780is because those are the businesses and organizations that are creating new products, new goods, new services,
00:08:43.380trying to figure out a more efficient, effective way of doing things.
00:08:46.580So it drives down the cost and you get to participate in the market that you actually aren't a partner with in those businesses.
00:08:55.820So I do like the stock market, but you have to do it smart.
00:08:59.560So many people play the market and they think they can beat inflation or beat the going rate.
00:09:05.500But my philosophy in the market is you put your money into vehicles, you dollar cost average.
00:09:10.860I'm not going to get into all of that right now, but let's just suffice it to say today that you put money in on a monthly or a frequent basis.
00:09:19.840And that's going to drive over time the cost of your purchases for those stocks lower.
00:37:25.700Uh, but there's other, there's other connections that I think go into intimacy.
00:37:30.240Um, and these are things that I'm trying to work on and trying to focus on and, and be receptive to in, in her, my wife.
00:37:36.600Uh, and, and, and that's being able to sit down and have a serious conversation or to sit down and actually hear what it is she's saying.
00:37:48.120You know, sometimes we, we, we hear our spouse, but how often are we listening to what they're actually saying and internalizing it without trying to come up with a solution or trying to fix what we perceive as their shortcomings.
00:41:11.660I just, I just, that's a powerful question because it causes us to evaluate that we're adding meaning to it and, and the communication around it.
00:41:24.900And the fact that just your meaning doesn't necessarily mean that's hers and, and, and, you know, five love languages.
00:41:33.860That's obviously what we have a tendency to express love in the way that we would like to receive it.
00:41:40.560And sometimes it's not the same for your spouse.
00:41:44.280And so just be mindful of the meaning that she might have.
00:41:48.520And if it's different than yours, that's necessarily not right or wrong back to kind of what we're talking about earlier.
00:42:45.160The way that we respond in these situations, when we see somebody we care about, who's not performing to the degree that we think they're capable of.
00:42:54.000Is an indicator of our love for them, right?
00:43:00.860Like don't make yourself wrong for feeling this way.
00:43:03.960I'm not even going to say that because you could be wrong.
00:43:06.300And I'll tell you why you actually could be wrong.
00:43:09.260You could be wrong because you might be undermining yourself and the people you're trying to serve.
00:43:14.020But I still believe that if you do it and you're pushing a little too hard as a man, it doesn't mean that you, it means that you love them.
00:43:37.320We don't measure performance by our intentions.
00:43:39.560We've all heard the phrase, the path to hell is paved with good intentions.
00:43:44.400So we don't measure, or at least we should not measure our performance by our intentions, but by how it's received and the performance that takes place after, whether it's for ourselves or for the people that we care about.
00:43:58.740So for example, if you browbeat your kid or your wife, then because you love her or, or him and they're withdrawing because of it, or they're upset because of it, and maybe they quit the team or something or their activity because of it.
00:44:22.740Well, you, you completely undermined yourself.
00:44:31.840So when you say, well, don't make yourself wrong.
00:44:33.880No, actually ask yourself if you're wrong, because you might be the problem and I've been the problem.
00:44:41.080So then we need to evaluate it and look and see, oh, you know what?
00:44:44.200That's actually not what I want for my wife.
00:44:46.220That's not what I want for my children.
00:44:47.720So what can I change about my own behavior to then elicit a better response and performance in them for their own benefit, not for mine, but for their own benefit.
00:44:59.000I can't necessarily tell you what it is because these are things I struggle with as well.
00:45:03.860But I think it's a good evaluation process that you might be the problem, not because your intentions are wrong, but because the way you're trying to facilitate it is.
00:45:14.420So maybe try to be a bit more understanding.
00:45:20.880Maybe we could all do a better job acknowledging when the people in our lives do actually perform instead of critiquing and nitpicking every little thing about every little detail and say, you know, that was awesome.
00:45:31.980And if they don't want to do it to 100%, fine.
00:45:56.560And if they're not doing anything and they're wrecking their lives, okay, then you come in and you offer them.
00:46:01.980Offer what you can offer, whether that's a shoulder to cry on or a sounding board, or maybe you come across a resource and you share it and then you evaluate.
00:46:34.280I've gotten super present to the idea that the most effective growth for anybody is for them to come to that conclusion on their own.
00:46:48.240And to be committed to what they're doing versus doing it out of pure pressure, coercion, micromanagement, or authority.
00:46:58.420And so from an employment perspective, I ask my team, where's their commitment level to what we're doing as an organization and what we're doing as a team?
00:47:09.360When we have conversations with new battle team leaders, the conversation I'm really looking for is, are they all in?
00:47:18.580Are they committed to what the Iron Council is about?
00:47:21.860Are they committed to what Order Man is about?
00:47:24.460If they're committed to it, they will find a way.
00:47:29.600There's a big difference between someone that does something because they're bought in and they're fully committed versus why I did it because Ryan wants me to.
00:47:37.860But I didn't really, I'm not really bought into the idea, but I'll do it anyway because he's my boss.
00:47:43.860And when I hit a roadblock in that example, I throw my hands up and I go, you know, freak, I knew it.
00:47:49.220I knew this wasn't going to work because blah, blah, blah, or whatever.
00:47:52.780But when I'm bought into what we're doing, when I'm fully committed, I find a way.
00:47:58.680And so me convincing a kid, me convincing an employee, me convincing a friend or whatever into trying to show up the powerful way is not the way.
00:48:09.080It is my job to create the art of the possible or a possibility of being and to be able to coach and guide them.
00:48:23.360And once again, it's like the lighthouse mentality, right?
00:48:27.020We show up in a very powerful way and we show them a way of being and we can coach and help, but it's got to be their decision.
00:48:34.980And so kind of, and I'm just resonating and maybe saying it a slightly different way, Ryan, than what you're saying is we can't course people into showing up a particular way.
00:48:43.720And there's ways that we can show up and communicate to them for them to make that decision on their own.
00:48:49.840And so I think I would just really focus on how do we don't take away their sovereignty, don't take away their agency and create possibility for them to make those decisions.
00:49:00.800And that is going to be a way more powerful approach to change and growth than any other, like, you know, riding them hard or bulldozing them into doing something.
00:49:12.300And I'm not necessarily saying that's what he's doing, but just a word, I guess, a warning that I fall into because I think that I should, you know, force people to change because I know better.
00:49:26.600All right, Jeffrey Young, what's the best way to deal with lying from our teenage step-sons, for example, saying they did chores and didn't, stealing food or money from the family?
00:49:40.940So dealing with lying, and we might just say lying kids, but step-sons adds obviously a dynamic to it.
00:49:48.960But how do we deal with our kids that are lying to us?
00:49:52.420Yeah, I think the first thing you do is communicate the expectation, like, hey, if you're going to do chores, like, you're going to do the chores, and you're not going to be able to participate in the things that you want to participate until I've gone in and checked them off.
00:50:15.100So you do that five or six times, and by the way, when it's not done, you actually have to hold your guns and say, no, you can't go do that because you made the decision that you didn't want to go.
00:50:47.980So just a little bit of accountability is going to go an extremely long way.
00:50:55.160When money comes up missing, accountability.
00:50:59.100Hey, son, you know, I had $40 in my wallet, and it's gone, and I didn't spend it, and mom didn't spend it.
00:51:06.580So I'm going to need you to answer as to where this went, and if you aren't willing to come clean on that, there's going to be consequences.
00:52:32.920It kind of goes back to Tony's question earlier about increasing our emotional intelligence and trying to understand their emotional intelligence.
00:52:41.960It's they might steal money from you because they have a problem with you, something that hasn't been addressed.
00:54:11.280Which is so disingenuous and comes across like a complete prick from my perspective, because I'm not seeing him as a human, as a person that's amazing and has an amazing possibility.
00:54:22.920I see him as something that needs to be fixed and changed before I'm willing to love him.
00:54:29.940So establish relationship first before we're in a position of correction.
00:54:34.280The second thing that's just been really on my mind, it's ironic.
00:54:37.180I was thinking about this just yesterday when I was mowing the lawn of what happens when I say, hey, you need to have your room clean and, you know, and we don't enforce it.
00:55:10.460We have to be consistent and we have to honor our word, good and bad consequences, because trust is at what's at stake.
00:55:20.000And that shows up in the positive side.
00:55:23.560If you can't trust me, Ryan, to hold you accountable, then you're also not going to trust me to help you when you need my help, because I become untrustworthy.
00:56:47.580If either of you have dealt with this phase, how did you deal with it or how would you deal with it growing apart or versus growing together?
00:57:16.700I think we can fall back in love, especially if there's a level of commitment to each other and a desire to try to make the situation better.
00:57:24.840So, I don't think all is lost, but I think it comes back to that intimacy.
01:00:05.860And we feel better connected with one another because we're having those conversations.
01:00:10.920So for us, it's like something as simple as that.
01:00:13.880Just the constant communication and the touch base of what we're doing, what we're working on, what we're stressed out about, what's our concerns.
01:00:21.460And being able to have those conversations with one another.