Business guru Nicole Lapin shares finance tips for the new year on 'GMA Day'

New York Times best-selling author Nicole Lapin stops by "GMA Day" to share resolutions for your wallet
4:43 | 01/10/19

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Transcript for Business guru Nicole Lapin shares finance tips for the new year on 'GMA Day'
year's resolutions right now. About working out. About eating healthy. But it's also important to make your finances a priority, too. I know we would all love to make and have more money in the bank, of course. You hit the jackpot today because we're going to our money expert and "New York Times" best selling author, Nicole lapin, who is here to share resolutions for your wallet. I got you. I got you. You say saving throughout the year all starts at the beginning of the year. Right. With three things. Do not cut out that latte. Okay? Everybody says, I'm going to cut out everything cold Turkey. At the beginning of the year. I'm going to have no fun. I'm in the fetal position. And I'm going to work out. Exactly. How long does that last? Let's get real. Until about right now. Come up with a sustainable spending plan. I break it down into the three "Es." Essentials, end game, and extras. Think of your spending plan like you would think of an eating plan. Is the latte essential? Or extra? For me and you, it totally is. 15% of your overall budget is extras. 70% is essentials. So think about this pie as your overall spending plan. 15% goes to the end game. And there is your latte. So 15% to the extras. Allow yourself some small indulgences, you won't binge later on. Which we all know will happen. Which makes sense. End game. Try to save 15%. How many of us have spent so much on our credit cards you want to cut them up after the holidays? And I know -- so many people want to break out the scissors. You say that's not the way to do it. Why not? I know, it's the temptation, right? It feels cathartic. I'm going to get all of this done. Never use credit cards. Call me in a couple of weeks when that doesn't happen. Leave them open. Put one recurring big on each credit card. So your utility bill on one. Your cell phone on the other. You're racking up good credit and showing consistent payment history. And you also say that you want to pay your bills right when you get your check. Right away. You get paid on the 15th. You have money in your bank. You're like, I'm going shopping. No, pay your bills first. I have a whole setup to show you a fun way to do this. By paying those bills first. Thank you. I'm coming over here to watch you. Michael, you got this first. Don't be eating my money. This is not money. Thank you, "Gma day." You just got paid. I want you to go down the line. You have different options of stuff you can spend on. Shopping. I go like that. Be honest. With shopping. Be honest with shopping. I'm being honest with the shopping. Dining out. You're a big guy. You have entertaining. Entertaining is where I like to be entertained. What? Thanks for the invites. You have your bills. You have to get to the red line to cover all the bills for the month. Uh-oh. What happens? Your phone just got cut off. What happens? Somebody ain't getting paid. That's what happens. If that happens this is my savings. So I guess I gotta do this. Yeah. Which is not often. Right? You don't want to dig into savings to pay your bills every month, right? Ah. Okay. Instead, girl, I'm going to set you up here. Here's what your paycheck is. Yi. Yes. And you got this amount of bills you have to cover. To the red line. I listened to you. I know this. Okay. Oh, she's -- Nice. Too slow. Pay those bills, quick. You can get a direct deposit. Now you can do shopping. I'm not much of a shopper. I eat a lot, though. We're going to have entertainment. You're eating for two. It's okay. And he's entertaining enough. I'm just literally going, she doesn't shop. She doesn't entertain. All she does is eat. Okay. This is great. I left my savings alone. But that's -- this is a good measuring tool on how to do this. It's hard to talk with these in your mouth. You have to safeguard yourself from yourself. Pay the bills first. Do the hard thing first. Eat the spinach first. And then eat all the m&ms. You can do whatever you want. It's all gravy after that. I don't think Michael and I start with the same amount of m&ms in life, though. Nicole, I have about ten jobs, right? Oh! My -- I'm so -- Sara, you

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