Responding to Katie Porter's INTENSE Money Rant | As a Financial Advisor

this is a pretty trending Tick Tock from

Katie Porter basically telling Jamie

Diamond the CEO of Chase JPMorgan and

Chase that a woman who has a

six-year-old a child can't survive while

working at Chase and asks for his advice

on what she should do while Jamie

Diamond doesn't answer I have some

suggestions let's get started and play

this first

and 31 million dollars a year in salary

and you can't figure out how to make up

a 567 a month shortfall this is a budget

problem you cannot solve you're an

expert on financial statements and you

run a 2.6 trillion dollar bank I know

you're good at numbers and you've shared

lots of opinions recently about how the

US should budget its resources how

families should budget their resources

and so I'd like to ask for your help on

a problem I went to monster.com and I

found a job in my hometown of Irvine at

JPMorgan Chase it pays 16.50 an hour and

so I wondered if I could um if you'd

indulge me um would you do the math on

this and you do the 1650 out at 40 hours

a week for 52 weeks a year it comes out

to an income of thirty five thousand and

seventy dollars now this bank teller her

name is Patricia she has one child who's

six years old she claims the one

dependent after tax she has twenty nine

thousand one hundred dollars we divide

that by 12. she rents a one bedroom

apartment she and her daughter sleep

together in the same room in Irvine

California that average one-bedroom

apartment is going to be sixteen hundred

dollars she spends 100 on utilities take

away the 1700 and she has net 725

dollars she's like me she has a 2008

Minivan and has gas 400 dollars for car

expenses and gas net 325. the Department

of Agriculture says a low-cost food

budget that is ramen noodles a low food

budget is 400 that leaves her 77 in the

red she has a Cricket cell phone the

cheapest cell phone she can get for

forty dollars she's in the red 117 a

month she's after school child care

because the bank is open during normal

business hours that's 450 a month that

takes her down to negative 567 dollars

per month my question for you Mr Diamond

is how should she manage this budget

shortfall while she's working full-time

at your bank I don't know I have to

think about that would you recommend

that she take out a JPMorgan Chase

credit card and run a deficit I don't

know I'd have to think about it would

you recommend that she overdraft at your

bank and be charged overdraft fees I

don't know I have to think about it so I

know you have a lot anyway so she goes

back and forth and asks multiple times

what about this what about that he said

basically says hey you know I'd have to

think about it but I did some thinking

about it and I have some opinions on

this first of all and it's always touchy

okay I'm just blunt on the channel it's

always touchy if you're a single mom

you're in a very difficult position if

you have not yet really figured out how

to make more money than 16.50 uh cents

an hour by the time you have a child

that's probably the first mistake here

now I know that mistake is in the past

I'm not going to spend most of the time

on this but let's make it very clear if

you were a woman the best case scenario

is before you have a child make more

money than 16.50 an hour that's probably

priority number one is make sure you're

not reliant on anyone else whether

that's a man another woman Mom Dad I

don't care who it is make sure you're

self-reliant yourself before you have a

child that is Mission critical number

one do not rely on anyone else the

government or anyone that is number one

number two if you're making sixteen

dollars and fifty cents an hour at Chase

in Irvine you're probably not getting

the most income that you could you're

probably able like this in the snap of a

finger able to go from 16.50 an hour to

potentially 40 or 50 percent more pay

working for Amazon making 22 to 24

dollars an hour with no necessary

additional skill set than what you

already have at JP Morgan so in this

scenario you're really putting somebody

in a very expensive area in Southern

California who has a six-year-old child

and they're already not getting

potentially the best job available to

them with no additional education or

training now the next thing that this

individual should do is they have to

realize if your paycheck to paycheck are

potentially negative in this scenario

when they went through sort of a budget

the person's negative 500 a month for a

basic costs like uh you know essentially

housing food child care whatever

somebody like this in this situation who

has gotten them in a place where they

have a six-year-old child and they're

only able to make 16 to maybe twenty

four dollars an hour they're going to

have to work more than eight hours a day

and of course this is not even including

the fact that they have a child to take

care of but you're going to have to

unfortunately burn the candle at both

ends of the stick now that's a hard

thing to say you could just pick up and

try to move to a lower cost of living

area but that's not necessarily going to

get you ahead that might just sink you

back into essentially just compressing

yourself into more of an area of poverty

and when poverty concentrates you end up

getting worse schooling for your child

and that's not what you want to set your

child up for you want to set yourself

and your child up for the best odds of

success so one of the best things this

individual could do is start looking

into home education programs where they

can maybe learn how to get a Nursing

degree working before they go to work in

the morning or when their child's asleep

at night that should be the priority in

fact a lot of nursing school programs

only require you go to school actually

in person once to twice a week now

because so much can be done at home at

your own pace now all of a sudden you

could potentially go from not just

making 16.50 an hour or even 22 23 24 an

hour working at let's say Amazon but you

could actually go to making 50 dollars

an hour when you actually get a

professional certification like becoming

a registered nurse so when Katie Porter

asks one of the richest people in the

world hey how can a person making 16.50

at your bank actually get ahead she's

actually not asking the right question

it is not Jamie Diamond's responsibility

to offer a job that creates value of

potentially even less than 16.50 for the

bank to somebody that can cover all of

their expenses when they set themselves

up and put themselves unfortunately into

a situation that is not not conducive

with actually being able to survive in

America whether it's the location

they're in or the decisions they made

prior to getting into that situation but

it is now incumbent upon that person

themselves to get themselves out of that

situation now some people say hey that's

not fair and look that is the

capitalistic structure that America is

based off of now fortunately and this is

the fortunate part fortunately even

though we are a country of capitalistic

rules and ideals we do have a social

safety net and this is the next thing

that the individual should consider

somebody on this sort of income would

easily especially in Southern California

qualify for Section 8 subsidized housing

which means they could potentially get

almost all of their rent covered now

they have more money to make sure they

can educate themselves rather than

paying sixteen hundred dollars a month

in rent maybe they could pay a thousand

dollars less a month in rent and only

pay about 600 a month in rent now there

are waiting lists for Section 8 so that

is problematic and that's where you can

also make sure that you're getting your

food at chair Banks there are in almost

every single County I have been in there

are local christian or Jewish community

centers that regularly give food away to

anybody who wants it this is healthy

stuff that you could eat at home they

also sell very inexpensive clothing it's

phenomenal there are some really great

ways you could buy clothing and food by

making sure you're taking advantage of

the resources your community and

non-profits give and the next thing to

realize is some people are going to say

oh but wait Kevin education is expensive

well look if you want to counter every

single argument that I'm making you're

probably putting your head in the sand

rather than realizing there are ways to

solve every problem problems create

Solutions and guess what work problems

can get solved with Solutions obviously

and it's your job to create those

Solutions and so if you stick your head

in the sand you're always going to be

stuck with problems but if you look at

problems and say hey the more problems I

can solve the more I get paid then you

can get through this in fact one of the

common things that people will do is

they will look at all right hey what can

I do to get my education subsidized by

going to local community colleges or

universities and seeing if they have any

programs for people in my situation and

the odds are they do so almost every

single objection that exists can be

overcome by a solution in America and we

haven't even talked about the fact that

you could also get Medicaid uh when your

income is below a certain level within a

region especially in Irvine you're

certainly within a percentage of the

level of poverty in fact I would argue

you're below the poverty line uh for a

two-person household so there are so

many important things to consider when

it comes to America that I understand

that when we take this one person 16.50

income with a child out of context we

realize there are a lot of things that

happen or we have to realize there are a

lot of problems that happen before and

then there are now problems that are

happening today in this sort of

fictitious example but that fictitious

example is probably real and it does

happen it's not going to be easy to get

out of that hole but the good news is

it's possible so

that's my take on Katie Porter's video

probably not going to be the most

popular but then again I'm coming at it

from the angle of uh somebody in in the

uh in the finance space and thinking

myself well if Jamie Diamond doesn't

want to give answers because it would be

unpopular to say well leave Chase uh

right or he doesn't want to give any

kind of unpopular answer I'm willing to

make that argument because a look

twenty percent of people might yell at

me and go man you you don't even know

what it's like which is not true because

I grew up on minimum wage nearly going

through bankruptcy and foreclosure with

my parents and I had to bootstrap myself

but beyond that and look everybody's got

their privileges okay everybody's got

advantages and disadvantages but the

point is

we just have to have real talk to be

able to get through hard situations and

if somebody is in that kind of situation

and they would rather talk about how

what I described is not possible or how

it's not fair that other people had

advantages well then guess what if

that's the mindset somebody has then

they deserve the card they're dealt if

the mindset of somebody who is in a

tough situation is ah well everybody

else is just privileged yeah I'm not

smart enough to go to school well then

that's your problem and ultimately when

you point a finger three point back at

yourself so it's important to keep that

in mind when you look at this from a

financial remember I'm a licensed

financial advisor and this isn't

personalized Financial advice obviously

because I don't know all of your

situation or that person's situation or

whatever that person doesn't even exist

that Katie Porter talked about but when

we're actually real about financial

guidance or advice

we could see there are real ways to

solve problems that is the point of

America problem find solution then get

paid

all righty then uh somebody just donated

uh 4.99 I'm a high school graduate with

no degrees and I drive a truck for a

living and make over 100 Grand a year

there are no excuses hot damn look at

that take wow dude over a hundred grand

that's amazing congratulations