Latest / The Lila Rose Show / E123: How Young Adults Can Thrive In Today's Economy with Rachel Cruze

Transcript

E123: How Young Adults Can Thrive In Today's Economy with Rachel Cruze · The Lila Rose Show

0:00
So how do you as a young adult get out of renting and into
0:03
buying, and what are some things you need to have set up?
0:05
What about college? Should people go to college?
0:08
Do they need to go to college? For somebody listening, who is
0:11
listening to this thing, this is all great.
0:13
I'm going to try to do a lot of these things, but I'm just not
0:15
making enough money. How do you make more money?
0:18
What's your take on what the economy is going to look like
0:22
over the next, let's say, 12 to 18 months?
0:23
I think there is some wisdom on the streets that say whether you
0:26
have debt or you're trying to save for a down payment, you
0:28
should be putting some aside for retirement.
0:30
But it sounds like you're saying no, you should be paying off
0:32
your debts first. So I want you to be completely
0:34
debt free. Honestly, I see the freedom and
0:37
not having payments when all that's freed up.
0:39
There's so much of your income now that's all yours.
0:42
Now. You get to let your money make
0:43
money for you, not for the bank. Hey guys, welcome back to the
0:50
Lila Rose Podcast. Today we're talking with Rachel
0:52
Cruz, who is an author, a podcast host and a Ramsey
0:55
personality. We're actually talking all
0:57
things money and finances. So how do we navigate in this
1:00
economy, especially as young adults?
1:02
About dealing with debt, student debt, should we or should we not
1:05
go to college? If we have gotten to college and
1:07
we have the debt, what do we do with the debt?
1:08
Should we buy a house? How can we buy a house?
1:10
Is it possible to get into the housing market and what's the
1:14
best way to approach that? What about the fact that so many
1:17
people are struggling to even pay money for groceries and gas?
1:20
Should you buy a car or should you lease a car?
1:22
And so much more. I hope this episode is helpful
1:24
for you. We actually had Rachel on the
1:25
show back in the day when this show was just audio only and it
1:29
was during the pandemic and we only came out like once every
1:32
month or two. And the episode I did with
1:34
Rachel several years ago now was one of our top to listen to
1:38
episodes at the time. So I think you're going to
1:39
really enjoy hearing from Rachel again and having her back on the
1:42
show. A huge shout out to our sponsor
1:44
We Heart Nutrition. We Heart nutrition.com is a new
1:47
sponsor of ours that I'm very excited about because they are
1:50
first and foremost a pro-life company that's donating 10% of
1:53
all of their profits back to the pro-life movement, especially to
1:56
pregnancy resource centers. But this is also an amazing
1:58
vitamin company that designs their packages of vitamins just
2:01
for you. All of vitamins are made in
2:03
Texas in America to ensure purity and quality.
2:06
We Heart Nutrition vitamins also use the highest quality research
2:09
backed ingredients that are the most bio available in form.
2:13
That means that the vitamins are in the easiest form for your
2:15
body to absorb. Unfortunately, many of the major
2:18
vitamin companies are owned by conglomerates that support
2:21
Planned Parenthood. That's why I'm so excited about
2:23
We Heart Nutrition their commitment to excellence to
2:25
creating products in the USA. I also love that WE Heart
2:28
Nutrition designs their vitamin packages particularly for where
2:31
you are in your life. If you're a woman that just
2:33
wants daily health, they've got a package for women's everyday
2:35
health. If you're a woman who's looking
2:36
to conceive to maximize your potential to be able to conceive
2:39
a baby, you're married, you want to do that, they have the
2:41
vitamin package for you. If you're prenatal, they have
2:43
that vitamin package. Post Natal, they have that
2:45
vitamin package. If you're a premenopausal or
2:47
menopausal, they have those packages specifically designed
2:50
for what your body needs. I think you're going to love We
2:52
Heart Nutrition as I do. Check them out today at we Heart
2:56
nutrition.com. Use the code Lila, check out for
2:58
20%, a full 20% off your order. That's we Heart nutrition.com
3:03
and use the code Lila at check out for a full 20% off your
3:05
order. Rachel Cruz, welcome to the.
3:07
Podcast, thank you. Thanks so much for having me
3:10
back. I appreciate it.
3:12
Yeah, the episode I did with you a few years ago was during the
3:14
pandemic, and you had some excellent advice about finding
3:18
jobs and making it through that crazy time.
3:20
But we're in a new crazy time now, so I'm really glad you're
3:22
back. Absolutely.
3:25
I know I feel like the world, it keeps changing, which I know it
3:28
always has. But when you're living in the
3:29
middle of it, it kind of just feels like chaos.
3:31
So we are, yeah, we have new financial problems that we're
3:35
facing, but there's always ways to navigate it.
3:39
All right, So first, for those that don't know you yet, tell us
3:41
a little bit about your background, Rachel.
3:44
Sure. So I am really talk about money.
3:47
I talk about finances every day at my job.
3:50
So I have a podcast, I've written books, I speak, have a
3:55
social presence, but all helping people get in control of their
3:58
money. And I work with Ramsey Solutions
4:00
and Dave Ramsey is my dad. So I feel like I've been part of
4:03
this since I was basically born is when it feels like I always
4:06
say I was the first shipping department because as kids
4:08
that's what we would do in the living room, ship out the books.
4:10
So yeah, it's, you know, it, it has a part of my heart and my
4:14
story. I was born the year my parents
4:16
filed for bankruptcy, actually. And so there is this legacy
4:19
piece of helping people not just with their present day, with
4:22
their money 'cause it can be really difficult, but also the
4:26
choices that they make today. It has an effect on their kids
4:29
and their legacy and what they leave behind too.
4:32
So there's a many important factors to it.
4:36
Well, I'm very excited to have you on because one of the most,
4:39
I think pressing concerns that a lot of people have in their 20s
4:43
and their 30s today when they think about their future is will
4:45
I ever be able to buy a house? And I want to actually start
4:48
with that because I think some of the latest numbers are that
4:50
it's 70% of young Americans, I think it's between the ages of
4:54
23 and 40, say that they can't afford a house.
4:57
And then I think it's at 50% now are living with their parents of
5:01
50% of young Americans are actually living with their
5:03
parents. And that was in the 20 low 20s
5:05
percentages in the 1960s. So we had this huge amount of
5:11
people who feel like they can't afford a home or can't afford a
5:13
home and literally are living at home.
5:15
Yeah. So why are first First question
5:18
is how do we get here? I know, you know, you can look
5:21
at, I mean, the housing market it, it has been insane.
5:23
And I think the ripple effects of what COVID did, the housing
5:27
shortage, we're still seeing a housing shortage.
5:29
And so because of that, economically speaking, there's
5:32
not a bubble like the housing market's not going to crash.
5:35
It will not continue to increase.
5:37
The values won't increase at the pace that they were a few years
5:40
ago, but they will still continue to go up.
5:43
House values are, I mean, up to 2% since last year.
5:45
So we're seeing that it's happening.
5:48
So basically, what do we do about it?
5:49
Because you're exactly right. Every number that I'm looking
5:52
at, it is more difficult than ever for this generation to buy
5:57
a home. I mean, when you look at the
5:58
average salary and America's around $85,000 household median
6:03
and then the median house price, I mean, there's different
6:05
numbers out there, but I mean anywhere from 415,000 to up to
6:10
close to half a million. And So what I think the
6:12
difficult thing is, is you have to know, number one, it's going
6:14
to take longer to be able to save up for a down payment, even
6:17
5%. You know, you can get into the
6:19
housing market at 5% with a down payment, which is what I would
6:21
recommend. So it's going to take you longer
6:24
to save. And the other thing that is so
6:26
difficult, it's going to be your expectations.
6:28
The house that you could have afforded four years ago, five
6:31
years ago is not the house you can afford today.
6:33
Now you can save longer and try to get into that type.
6:36
But I think entering as quickly as possible while you're I want
6:39
you to be debt free with a fully funded emergency fund first and
6:42
foremost. But when you have that down
6:44
payment of at least 5%, go ahead and enter the market.
6:47
Like whether that's a condo or a town home, it may not even be a
6:49
single family home. And back to those expectations,
6:53
it's probably not going to be in the part of town that you were
6:55
expecting. It's not going to be the size,
6:57
it's not going to be the look. It's just not.
6:59
And so I think it's always a difficult pill to swallow.
7:02
But I think what's hard to, as I see, you know, on social media,
7:05
Instagram, you know, a lot of people, millennials and Gen.
7:08
Z's, we complain about it and it's annoying and all of it.
7:11
But I want to be able to give a solution to it because it is a
7:14
reality. But now what can we do?
7:16
And again, I think it's to this point that it's going to have to
7:18
be shifting expectations, but it's going to and it's going to
7:20
take longer to be able to save up for it.
7:22
It really is. OK, so you just said, you know,
7:27
some qualifications for things you recommend before somebody
7:29
buys a home and the kind of home that they should be looking for
7:32
as a young adult, a Gen. Z or a millennial.
7:35
I'd like you to. I'd love to hear more about that
7:37
and unpack that more because so many people are choosing to just
7:40
rent or they feel like they have to just rent perpetually.
7:44
So how do you as a young adult get out of renting and into
7:47
buying? And what are some things you
7:48
need to have set up before doing?
7:50
That so I want you to be completely debt free.
7:52
So that's student loans, credit card debt, which is going to
7:54
take people on average around two years to be able to clear
7:57
all that. And then I want you to have a
7:58
good of emergency fund in place three to six months of expenses
8:02
because what that does is that sets you up for peace because if
8:04
you are a homeowner, you know owning a home is expensive.
8:07
There are expenses that you are responsible for that you're not
8:11
when you're a renter and things and, and, and if you get into a
8:14
home too quickly and you're living paycheck to paycheck, all
8:17
of your money is going out to car payments and student loans
8:20
and you don't have the margin. You don't have savings and a
8:22
refrigerator breaks or you're heating and air.
8:24
God forbid, like something happens, it's going to put you
8:27
more in a tailspin financially. And so having that baseline of
8:30
being debt free with a fully funded emergency fund is key.
8:34
Now, during that time, if you're not a homeowner, you probably
8:36
will be renting and, and that's OK.
8:38
Let me just say that for a season, it is OK to be a renter.
8:42
And I think a lot of people feel like they're throwing their
8:44
money away, but you're buying time and I think that's really
8:47
wise. You're slowing down getting
8:49
yourself in a position to buy. But I took a call on the Ramsey
8:52
show I hosted yesterday. It's a call in show.
8:55
And there was a a girl and she's in in her mid 30s in Chicago.
8:58
And she was like, I'm single, I'm living close to my friends,
9:00
I'm renting, everything's great. Like I don't want to go buy
9:04
because it's so expensive and then it's going to Take Me Out
9:06
of a part of town. And so my encouragement to her
9:08
was you don't have to, you know, you don't have to rush and buy,
9:10
but eventually long term, you want to be a homeowner because
9:14
your home expense, that rent, that mortgage is your is it's
9:18
the, it's the expense in your life that's going to have the
9:21
most variety. Meaning like throughout your
9:24
lifetime, it's going to continue to increase and it's going to
9:27
take a big part of your paycheck.
9:29
And when you're a homeowner and you eventually pay off your
9:31
home, which people are doing on average nine years, if you're
9:34
working a plan, then that expense is eliminated and then
9:37
you have an asset that's going up in value.
9:39
So long term, I want home ownership to be part of your
9:43
financial picture. But it doesn't have to be in the
9:46
next six months or 12 months even, right?
9:48
And it may not be if you haven't saved and you have debt, it's
9:50
going to be a couple of years. And that's OK.
9:52
But the patience, I think is, is a really key part of this
9:55
because on the other end of that, you know, I talk to people
9:59
and they get into a home too quickly and it ends up being 40%
10:02
of their income. They don't have any margin and,
10:05
and they're struggling and someone loses a job or a mom
10:08
wants to stay home because she's just had a baby.
10:10
Like, I mean, you hear every story imaginable and you put
10:13
yourself in a corner where you don't have options.
10:15
So I want your house to be a blessing, not a curse.
10:18
But that's going to take some patience.
10:22
So do you think when you say a three to six month emergency
10:25
fund, what kind of things are considered emergency?
10:30
I mean what, what, what, how big should that fund be for
10:33
different income levels? What should that be able to pay
10:36
for over a period of three to six?
10:37
That's fair. So what I would say is do a
10:39
budget and I would look at your necessities, food, shelter,
10:43
utilities, transportation, child care expenses.
10:46
If you have that insurance, like things that need to be paid in
10:50
one month, how much does that cost?
10:52
What, what's your cost of living to keep your head above water?
10:54
And I'm not talking about going on vacation or splurging, you
10:56
know, on big date nights. This is kind of your bare bones
10:58
like, hey, in order to keep keep everything afloat, this is how
11:02
much we need per month. And then I would multiply that
11:04
by three or by four or five or six.
11:07
Now, if you are single and you know your your job is really
11:12
stable, you could go more on that three month side.
11:14
But the more complicated you know, or parts of your life are
11:18
a little bit more volatile. Whether you have multiple kids,
11:20
if you're on a Commission based type income, if you're a family
11:24
and it's one income and one parent stays home, you know
11:27
those kind of variable parts of life, then I would learn more on
11:31
that six month just to be extra safe.
11:35
And that should include if you're buying a home enough six
11:37
months of being able to pay that future mortgage that you're.
11:40
Considering, Yep, to kind of just estimate out, hey, how
11:42
yeah, we don't want to get behind on the House.
11:44
So how much would that be? So you said something earlier,
11:47
which I think I, I, I mean, I'm seeing it myself with friends
11:50
and just, you know, what I'm seeing people experiencing,
11:53
especially who are not in the housing market yet.
11:55
And what you could have bought, you said four or five years ago
11:58
or even three years ago, you could have maybe afforded then
12:01
you can't afford now. Like the housing prices are just
12:03
going up. And then of course, interest
12:05
rates are high too. Do you think that there, do you
12:09
recommend any kind of wait and see because of interest rates
12:12
being high? I mean, they're I think triple
12:14
what they were for some people if just a few years ago or
12:17
should people, if they can't afford it, even if they're just
12:19
getting into the market and the house is not their dream house
12:21
and it's, you know, barely big enough for them, still go for
12:23
the house. Yeah.
12:24
I mean, honestly, I would just go ahead and get in.
12:26
I mean, the rates are going to change and if it drops
12:27
dramatically, then you can always refinance and get a
12:30
better rate when that happens. And again, nobody has a crystal
12:34
ball when it comes to the economics.
12:35
But I mean, I think the rates will fluctuate.
12:37
I'm hoping they do go down after the election season of this
12:41
year. But I don't know.
12:43
I mean, from what I've read or people have listened to, I mean
12:45
to go back to 2%, I don't know if we'll ever see that again.
12:49
I mean, I think that was kind of a moment in time and we, I hope
12:52
we can because I think that's great for everyone.
12:53
But but it's kind of this idea of dating the rates marry the
12:57
house, right? Your house, you're, you want to
12:59
be in it for at least four to five years.
13:02
So I would go ahead and get in and then the rates you can
13:05
always refinance if it goes down.
13:09
And what would you say to someone who you, you mentioned
13:11
to call in that caller that you had into your show who was
13:14
renting and she liked where she lived and where she lived.
13:17
And she in order to buy, she wouldn't be able to afford what
13:20
she was renting. I hear that a lot.
13:21
I hear that a lot. So people are renting, they're
13:24
renting something that they couldn't afford to buy.
13:26
This is especially in California where I live.
13:29
And so there's not a lot of incentive for them to go buy
13:32
when they would be downsizing and they wouldn't even love what
13:35
they're buying. And now they're paying as much
13:37
or more than they were renting for.
13:39
What do you? What is your advice?
13:40
On that, yeah. So I would say again, in the in
13:42
the short term, you know, even 4567, maybe a decade, you kind
13:46
of stay in that renting game. But I would be on the side
13:49
saving money because again, eventually long term down the
13:52
road, maybe in your 50s or 60s that you actually you get into
13:56
the market. I mean because again, it is that
13:58
one expense that fluctuates so much and it's always increasing.
14:01
And when you can eliminate that when it comes to time for
14:04
retirement, I mean, again, we're thinking way out.
14:06
But you have to when it comes to money to make smart decisions.
14:09
So I would eventually get in the game, but I would not be in a
14:12
rush. If you're OK, that's OK.
14:13
But save what you can on the side and have a goal at least to
14:17
be able to say, OK, you know, maybe I buy a home in six years
14:20
and life, I mean, you know, this life changes so quickly, like
14:23
where we were in 2019 versus today.
14:26
We've gone through a pandemic. I mean, economically it's crazy.
14:29
I mean, like everything is so different.
14:31
People are moving, people are changing jobs.
14:33
I mean, your life, you meet somebody, right?
14:35
I mean, I don't know, life changes so quickly.
14:38
So always keep that in the back of your head that the life you
14:40
have today is probably not going to look the same as it will in
14:43
five years. What better way to start your
14:46
day than with a cup of delicious gourmet small batch roasted
14:49
coffee? That's why I love
14:51
sevenweekscoffee.com. Seven Weeks Coffee is delicious,
14:54
small batch and ethically sourced coffee that is delivered
14:57
right to your door. What I really love about Seven
14:59
Weeks Coffee though is not just the delicious coffee, but the
15:01
fact that they give 10% of all of their money, not just their
15:05
profits, directly back to the pro-life movement.
15:07
They give 10% to pregnancy resource centers and they've
15:10
donated over $300,000 now. So go to sevenweekscoffee.com
15:14
today. You can become a monthly
15:16
subscriber and join their Heartbeat Club.
15:18
It's called the Heartbeat Club because at 7 weeks, the baby's
15:22
heart is beating and the baby is about the size of a coffee bean.
15:25
I love that. And if you join the Heartbeat
15:27
Club at 7 weeks coffee.com and you use the code Lila at
15:30
checkout, you'll get a full 25% off your first order and then
15:34
15% off all of your orders after that for the coffee that is
15:38
delivered right to your door. So check it out today,
15:40
sevenweekscoffee.com. Use the code Lila at checkout
15:43
for a full 25% off your first order, and enjoy delicious
15:47
pro-life coffee while you're supporting moms and babies in
15:49
need. So once you have that emergency
15:53
fund and, and your opinion probably is to have the
15:55
emergency fund, whether you're renting or buying, right, you
15:57
should just have it. I've heard that from the from
15:59
the Ramsey. World that just have your
16:01
emergency fund seems like good common sense.
16:03
OK, what about savings? So you're talking about saving
16:06
for a down payment. How do you prioritize saving for
16:09
a down payment versus, say, saving for retirement?
16:11
So I would say for the down payment 1st and so after that
16:14
emergency fund is done, then that would probably be my next
16:17
step. Now if it's going to take you
16:18
longer, then I'd say three to four years to save up that down
16:22
payments. Then I would start investing at
16:25
that three to four year mark. So focus everything you can to
16:29
get as much for that down payment if you're in a place
16:31
that you want to be buying. So I would do that first.
16:34
And again, if you start kind of eclipsing that three to four
16:37
year mark, then I probably would start investing because you
16:39
don't want to lose time on investing because the sooner you
16:43
start on that, the the better off you're going to be.
16:45
But I also want you to be focus and putting all of your money
16:48
towards a specific goal like a down payment is great.
16:51
So down payment 1st and then invest for retirement.
16:56
So you would say, I think there is some wisdom on the streets
16:59
that say, OK, you need to, every single paycheck, put aside at
17:03
least part of it, regardless of other things going on, whether
17:05
you have debt or you're trying to save for a down payment, you
17:08
should be putting some aside for retirement.
17:10
But it sounds like you're saying no, you should be paying off
17:13
your debts first, then saving for your down payment within a
17:15
reasonable time frame, and then start seriously investing in
17:19
retirement. Yeah, that's right.
17:20
And you know, on average, most people, they're not investing a
17:23
high number. I mean they're investing 3456
17:25
percent of their income. So when you get to the step of
17:28
of investing, I recommend 15% of your income.
17:31
So you're going to be throwing a bigger chunk towards retirement.
17:35
And, and again, it, it kind of is this idea that, I mean, it's
17:39
great if you have a ton of money, you know, in your four O
17:41
1K, but if you're living paycheck to paycheck, you can't
17:43
use that money until you're 59 1/2.
17:45
And so if something happens in your life and you need cash,
17:48
yeah, you have money in retirement, but you have no cash
17:51
that's liquid. So again, it's more of that
17:52
prioritization. And there is this idea of
17:57
behavior when it comes to money that's really important.
17:59
A lot of people don't talk about that, but being able to get out
18:02
of debt and get an emergency fund in place, there's something
18:05
about putting all of your income focusing on one thing.
18:08
If you're trying to save for kids college and you know, pay
18:10
some on the House and do retirement and pay off your
18:13
student loans, you're not going to get very far.
18:15
It's going to take you a really long time.
18:17
And so this focused intensity on things like getting out of debt
18:20
and that emergency fund we talked about, there's these wins
18:23
that you get that give you a level of security and stability
18:26
that are really just good for you emotionally.
18:28
I mean, there's something about sleeping at night and having
18:30
peace, knowing you don't owe anyone anything.
18:33
And then when it comes to saving for retirement, by that point,
18:35
hopefully your incomes gone up, right?
18:37
It should be going up steadily over the course of your
18:40
lifetime. So you'll have more income to be
18:42
putting towards retirement. So I know as soon as you can
18:45
retire or as soon as you can invest, do it because the sooner
18:48
the better for sure. But kind of get yourself in that
18:51
good foundation financially first.
18:56
Should you be investing when you're saving for that down
18:58
payment? Should you be putting it in a
19:00
high yield savings account or should you try to put it into
19:03
the stock market or what would you recommend doing with that
19:06
down save down payment cash that you're?
19:09
That's a great question. Yeah, a great high yield savings
19:11
is perfect. So I would have, I would have my
19:14
emergency fund and that's which my husband and I actually do
19:16
that. So we have a high yield savings
19:18
account, a line item for that emergency fund, and then
19:21
whatever we're saving for or big purchases, there's another
19:24
account that's kind of attached to it.
19:25
So I would make them two separate accounts.
19:27
But yes, a high yield savings is great.
19:29
Yeah. When you think about entering
19:30
the market on any capacity, I'm not a fan of like day trading
19:34
and like following the stocks and all of this.
19:36
I see investing as more of a long term vehicle.
19:39
So if you're not going to be in it for at least five years, I
19:41
would do the high yield savings. And and that's the inverse of
19:44
all of this high interest rate, right?
19:46
It's high interest when you're borrowing money, but you're also
19:49
receiving pretty high interest with saving money.
19:51
I mean some of these high yield savings, I mean it's up to 6% in
19:55
some cases. So it really is amazing and you
19:57
can take advantage of that. So what should you Where should
20:01
you be investing retirement money then?
20:03
So when you look at retirement, there's really two types of
20:05
vehicles that I think are great when it comes to it.
20:07
Your 401K or 403B at your at your workplace or 403B if you
20:12
work teacher or government or nonprofit.
20:14
And so those are some, those are great options.
20:17
So I'd put money in there and then a Roth IRA as well.
20:20
And so the Roth IRA has a Max of I think it's 7000 this year in
20:24
2024 that you can put in. But both of those accounts are
20:27
great. So I always say match beats Roth
20:31
beats traditional. So go up to the match.
20:34
So you're 15%. If your employer matches 5%, go
20:38
up to the match to 5%, which means you have 10% of your
20:40
income left. Go to your Roth IRA, fill it up.
20:43
Now if you Max it out and you still have percentages left and
20:46
go back to your four O 1K and go ahead and Max that out, which
20:50
that's at like 22,500. So those are two great places.
20:54
And within those accounts, sorry, we're probably getting a
20:56
little nerdy here, but in those accounts, you put your money
20:59
there and then you have to take another step and actually invest
21:02
that. So that's when you want to sit
21:03
down with an investment professional and do it.
21:06
You know, good growth stock, mutual funds is a great place to
21:09
put those accounts. But I recommend investing in
21:12
mutual funds, which are 90 to 200 stock as a mutual fund.
21:16
And it's great because your money's diversified through
21:18
American Airlines and Apple and AT&T and gas companies, right?
21:22
It's all these companies 90 to 200 versus a single stock.
21:27
So I'm not a fan of a single stock.
21:29
Again, diversifying mutual funds within your four O 1K and Roth
21:33
IRA. Awesome.
21:35
OK, So what about paying off? Let's go back a couple steps to
21:39
debts because you said even before you can get into
21:42
retirement and buying a house, you should be debt free.
21:45
How does someone become debt free?
21:47
You mentioned two years is the average that you've seen people
21:49
do it. How is that?
21:50
Possible. So on average, it's 18 to 24
21:52
months, people that are doing what we call the debt snowball.
21:55
And this is where you list out your debts, all of your debts
21:58
except for your mortgage. If you have that smallest to
22:00
largest, regardless of the interest rate, you're going to
22:02
pay minimum payments on everything.
22:04
So you don't want to get behind, but you want to pay off that
22:06
smallest debt 1st. And then when that's paid off,
22:09
that minimum payment there rolls over and all that money you're
22:12
putting there rolls over to the second smallest debt.
22:14
And once that's paid off, those minimum payments are freed up
22:17
all the extra money. It kind of keeps mathematically
22:19
rolling over to the next. And, and, and it is, it's, it's
22:22
an amazing thing and people are doing it, but it's, it's hard.
22:26
You know, I always say you can wander into debt, You cannot
22:28
wander out. I mean, it takes a lot of
22:31
sacrificing lifestyle, taking on extra income, a lot of side
22:34
hustles, a lot of extra hours working.
22:37
But what we find is if you can have a level of intensity for 18
22:42
months, two years and you're making an extra thousand, $2000,
22:46
which is actually very doable side hustles.
22:48
We talk to people all the time that are doing this and you
22:50
just, I mean, you just, it's a short amount of time, but you
22:53
really, you hit it hard when all that's freed up and you have no
22:57
payments and suddenly your car payment that was $700.00 a
23:00
month. You know, your student loan that
23:01
was 2 to 300 credit card payments, you know that you were
23:04
paying the minimum balance on, but now that's gone.
23:07
Personal loans. When you Add all of this
23:09
together, there's so much of your income now and it's all
23:12
yours. And then Speaking of high yield
23:14
savings, you know, we're investing now.
23:16
You get to let your money make money for you, not for the bank
23:19
by paying interest. So there's a, a mathematical
23:22
financial upside for sure. You know, a lot of people
23:26
believe that that's a tool and you use it to do all this.
23:28
But I mean, honestly, I see the freedom and not having payments
23:32
and owning your life, owning your money, having a level of
23:34
autonomy where a bank or Toyota Motor company isn't just like
23:38
part of your life. You really are free of it.
23:40
And that speaks to the emotional side that we mentioned earlier.
23:44
But it is there's something about having a level of autonomy
23:47
over your life that you have choices and options because
23:50
you're not attached to all these industries.
23:53
It it's just your life and you get to decide what to do.
23:55
So there's a beautiful thing that happens in that.
23:58
And you know, couples that work together, if you're married and
24:01
they do it together, they talk about how, how, how their
24:03
marriage is better. And it always makes me laugh
24:05
because I'm like, it's not a marriage.
24:07
You're not doing a marriage course, you know, you're doing
24:09
money, you're doing this money journey together, but that the
24:12
amount of teamwork and, and unity that's created within a
24:15
family, even, I mean, it's, it's a really awesome, a beautiful
24:18
thing And, and it is, it's powerful.
24:21
You know, we see it all the time.
24:22
That's one thing I love about my job, is we get to meet and see
24:25
these people constantly who are doing it and it's an incredible
24:28
thing. What do you recommend for
24:31
younger people who are trying to figure out how to get into
24:34
career trajectories that they both feel that they can do, that
24:39
they feel created for? I mean, they feel kind of called
24:41
to, they feel interested in. It's using gifts that they
24:43
naturally have, but that have growth trajectory.
24:47
There's a lot of, you know, boomers today who are not
24:50
retiring, You know, they're continuing to work into their
24:53
70s, some of them into their 80s.
24:55
I mean, look at the political system even it's true there.
24:58
It's across the board though, across industries.
25:00
What would you recommend for young people as they're trying
25:03
to find a good career trajectory to get into where they know that
25:06
their income will grow overtime? Yeah, I mean, I would say it's
25:09
going to probably depend on the industry and the type of, you
25:11
know, company that you're working for.
25:13
I mean, I, I'm a big fan of small businesses.
25:15
I mean, I think they're the backbone of America and and
25:18
they're, they're incredible environments.
25:20
And I think if you plug in to a company that you share similar
25:24
value system that are that's very upfront with you, that you
25:27
that you know what you're getting, I think there's a level
25:29
of joy in that, that you're actually going to work to
25:32
somewhere that you that you love.
25:34
But that those are that those lead that the leadership is very
25:37
open and that there are clear paths.
25:39
And I think a lot of businesses do that.
25:41
I think it's very possible. And then I think you can get
25:43
stuck in either a crappy small business or corporate America
25:46
where it may not be as clear. And so I think you do have to
25:49
make some decisions. And the younger you are, I think
25:51
there's not as many options. I think there is a level of
25:54
grind that you're that an experience that you do kind of
25:57
have to work through through a season of your life.
26:00
But I think that those companies are out there.
26:01
I really do. And and we see them all the
26:03
time. There's some great companies.
26:05
So I think during the interview process, I think if that's a big
26:08
value for you, you know, which it should be for most people, I
26:12
would ask and say, Hey, what, what is the growth track here?
26:15
Here is something, but I also think when you are younger and
26:18
you're starting in a workforce, like there is some grind that's
26:21
going to have to happen as well. It is kind of amazing because I
26:26
work in in both nonprofit and for profit worlds and I see the
26:31
people, younger generations, who aren't asking that question in
26:34
the interview process. Like what's my trajectory here?
26:36
I think many of them are not even sure how to build up a
26:39
career or what their future might look like.
26:41
I think it can be overwhelming for a lot of young people,
26:43
especially with student debt. What are some other interview
26:46
questions or other just parameters that young people
26:50
should have when they're trying to find that first or that
26:52
second job and get into the job market?
26:55
Yeah. I mean, I think for, I think
26:57
there's a reality. I kind of mentioned it earlier,
26:59
but I think getting in at at any level is really important.
27:02
You know, when I take calls of people like I've been out of
27:05
work for six months because I haven't found the thing, like
27:07
you got to find something because you have to start making
27:09
some money. So I do think entering at, at
27:12
any capacity is going to be really important.
27:14
And then from there, I think you really do learn about yourself.
27:17
And I think you learn, hey, what do I enjoy?
27:19
Because the, the perfect segue is what you're good at and what
27:23
you love meets a company's need and what they're looking for as
27:26
well, right? There's a, there's that perfect
27:28
balance there. And so, yeah.
27:30
And that I think I would say, hey, here, I, I'm somebody
27:33
that's committed to this, to this mission, to what this
27:36
company's about. And I and I'm really excited to
27:38
be working here. And So what does that trajectory
27:40
look like? What is leadership?
27:42
What is a path to leadership look like?
27:44
That's something I'm interested in and I want to be working
27:46
towards. And then at levels of humility
27:48
too, of Hey, how, how can I be growing?
27:50
What are ways that I can best serve in this position?
27:54
And even asking like key result areas, like, Hey, will you give
27:57
me a one sheet on if I do these things, then my role has been
28:01
successful and really have them listed out.
28:04
Because sometimes I think the worst idea of failure is when
28:07
things are vague and you don't even realize, you know, you're
28:10
doing something, but they're expecting something here.
28:12
And if there isn't great communication, you can miss each
28:15
other. And so as much as you can, even
28:16
in writing, it's like, Hey, here's what is expected of me.
28:19
And, and I think head down and you just and you go and you and
28:24
you learn from people, right? I mean, so much of, of winning
28:28
in life is about the people you know too and the relationships
28:31
that you build. And so having great a great
28:35
relational aspect to yourself in the workplace I think is really
28:38
huge. It's really good advice.
28:41
Your baby deserves the best and that's why I'm so excited to
28:43
partner with everylife.com. everylife.com is America's
28:46
fastest growing diaper and wipes company and also America's
28:50
pro-life diaper and wipes company. everylife.com has best
28:53
in class products with great materials sourced to be the
28:56
healthiest for your baby's body. They're also have a great leak
28:59
proof challenge where they perform better than Huggies,
29:01
Pampers and other brands you're. Going to love.
29:03
Everylife.com because not only is it a great product and it can
29:05
be delivered right to your door, but everylife.com is a pro-life
29:09
company that is donating part of the proceeds back to the
29:11
pro-life movement. So check out everylife.com
29:14
today. Order some diapers and wipes for
29:16
your little one or your friend's little one or your niece or your
29:18
nephew. You can set up a subscription to
29:20
this is a great baby shower gift or new baby gift and use the
29:24
code Lila at check out for 10% off your order.
29:26
That's everylife.com. Use the code Lila check out for
29:29
10% off your order. What about college?
29:32
Should people go to college? Do they need to go to college?
29:35
What do you recommend with? College.
29:36
Oh man, OK. I don't know.
29:39
I feel like I changed my mind on this subject every day.
29:42
OK, I I'll say this, I am saving for my kids college.
29:46
I went to college. I'm still planning on them going
29:49
to college. I do think the environment is
29:51
changing quickly. I think the ROI on what you're
29:56
getting now at more schools than ever is not manifesting out in
30:00
the marketplace. I think employers are not
30:03
expecting a college degree. I do think that there are some
30:06
avenues of career that you're going to have to have a degree
30:09
and you know, obviously whether you're going to be a doctor or
30:11
lawyer, I mean, you know, there are some companies that still
30:14
having a business degree, right? There is a point of entry for
30:16
some companies and some industries that you want a
30:19
college degree. But I also think it is, I mean,
30:22
I think it the, I think COVID kind of blew up the whole system
30:25
in a sense that it kind of was like, Oh my gosh, what are we
30:27
doing here? And So what it's going to look
30:30
like in, you know, 18 years to five years, I, I don't know.
30:36
So I don't think it's for everyone, but I do think if you
30:39
have the ability to go and you have something that's that you
30:42
want to continue learning about and you have the means to do it,
30:46
you're doing it wisely. You're staying in state, you're
30:48
going to a Community College or getting scholarships and grants.
30:51
Like there's still wise ways to go about paying for it on that
30:54
end. But I think this whole idea
30:57
that, you know, for having a college degree gave you a
31:00
competitive edge 20 years ago, where today and really because
31:05
of student loans, anyone can apply and go, right.
31:07
I mean, like there's, there's not a big barrier to entry now.
31:10
So I do think it becomes less competitive in the ROI does look
31:15
different today. And, and I've always said this,
31:17
but I'm like, it is crazy. You go to these colleges that no
31:21
one's ever heard of and they're charging 60 grand a year.
31:26
So you're $240,000 to get an undergrad in a school that
31:30
nobody's heard of, right? I mean, it gets different, I
31:32
guess if you're like, oh, I went to Yale or whatever, right?
31:34
And you're like, OK, but like, at least we've heard of that.
31:36
But there's so many colleges that I'm like, it doesn't even
31:39
carry weight. And you're that much in debt for
31:42
an undergrad. Like, that's not wise.
31:44
That's where the common sense piece doesn't match up.
31:46
So you just have to be wise about it, think through it.
31:49
But I also don't think it's for everyone.
31:52
Do you think you should go to college if you have to go into
31:55
debt? To go to college, No.
31:58
No. No debt, no student.
32:00
Loans at all? Nope.
32:02
I think I would take a gap year. I would take a gap year and I
32:06
would work. And again, I think that there
32:08
are wise ways to go about it. I think it still can be avoided,
32:12
but it's going to look different, just like the
32:14
housing, you know, we were talking about earlier.
32:15
Expectations are going to have to change.
32:17
And there are some states that are giving Community College for
32:19
free. So even go get that, go get, you
32:21
know, a two year degree. That's great.
32:24
Go do that. Or, you know, get scholarships
32:27
and grants work and say people are are doing a lot of things
32:30
like working for, you know, being an RA at the university
32:33
and getting a discount, you know, make a creative decision
32:37
when it comes to this. But going that deep in debt
32:41
again, coming out, maybe making 50 for your first job, if that's
32:46
it, it doesn't pan out over time.
32:48
But if you have an ability to cash flow your way through or
32:52
again, scholarships and grants, whatever it looks like, if that
32:54
combination can happen and that's when you still want to
32:57
go, you can. That's your green light.
33:00
Even if it's like a great school, you know, just as a,
33:02
just as a theory, like if it's a school that's like a Yale or
33:05
something, an Ivy League or it's a just a highly acclaimed school
33:09
and you are going into just not a ton of debt, but you need to
33:12
go into a little bit to make it happen.
33:14
You would say that's not worth it.
33:15
Go to the Community College. Yeah, I mean, I just can't
33:17
promote debts. I mean, it's just anyway I look
33:20
at it, I kind of have a hard line there except for a
33:22
mortgage. But when you're looking into
33:24
college education, I'm like, it's, it's just not worth it for
33:27
me. So once you get that degree,
33:32
would you say then just the next step is getting to the job
33:35
market? And I know you're given some
33:37
great tips for how to do that, pay off any other debts you have
33:40
in the process. Do you have some tips for
33:43
avoiding going into other kinds of debt, which beyond student
33:47
loans, whether it's car loans or it's credit card debt?
33:50
Yeah. So I mean, the credit card debt
33:52
is easy. You just have a debit card.
33:53
Don't even give yourself the option to go into credit card
33:56
debt, which is going to cause you to have to live below your
33:59
means and you're going to have to really watch your lifestyle
34:02
and make sure that it doesn't exceed your income.
34:05
You know, you have to be able to live below that.
34:08
And then cars, that's another, yeah, big factor too.
34:11
But there still are and and I would look it up randomly, you
34:14
know, just to prove the point. There are still cars out there
34:17
for five thousand $6000. So being able to save up and pay
34:23
cash for a car, it's not going to be the most wonderful car in
34:26
the world. But I will say car debt,
34:28
mathematically speaking, is the stupidest debt that you can get
34:33
into. You know, I mean, you're, you're
34:35
having a car loan and paying interest on something that's
34:38
going down in value. And it's an asset that gets you
34:41
to and from a place. It doesn't even, you know,
34:43
benefit your life that greatly. It's it's getting you to work
34:46
home from work to school back home.
34:48
And so that's what it's for. And we have glamorized, you
34:52
know, this part of our lives, which we do so often with many
34:56
things, houses and cars and clothes and vacations.
35:00
And it really takes a toll on saying, gosh, I feel like
35:03
there's a level of who I am and my identity that is wrapped up
35:05
in this thing. And I will go to any measure I
35:10
need to. And because I feel like I don't
35:12
have any other options, I'm going to just go and, and get
35:14
the car loan. And so there is a level of of
35:18
again, sacrifice and expectation, but I would avoid
35:20
the car loan as well. What about groceries?
35:25
How does someone live frugally in today's economy when grocery
35:32
prices have skyrocketed? Yes, so this is this is part of
35:35
the needs category off obviously.
35:38
So this is one that you're going to say, hey, this is something
35:41
that's going to have to happen before if you have debt, you
35:44
know, even before debt is paid, we're going to put food on the
35:46
table. So I always have to remind
35:47
people of that because some people get this level of fear.
35:50
Oh gosh, I can't get behind here or here.
35:52
And then, you know, we've heard, I've read an article recently,
35:54
people skipping meals because of this.
35:56
So don't do that. This is, this is a necessity for
35:59
you, but you can do this wisely. And it's honestly still kind of
36:03
the old fashioned stuff. I'm like, it's where you shop.
36:05
So you can shop at the bougie organic store.
36:08
That's great and wonderful, but also the prices are twice as
36:11
high as ALDI or like a, you know, a more budget friendly
36:14
option. So even where you shop is a big,
36:17
is a big thing to, to save money.
36:19
And so that location is big where you shop.
36:22
Again, these simple things, it's, it's having a list and
36:25
some grocery stores you can do online orders that are free.
36:28
You can go ahead and just fill everything out online.
36:30
And this is great too, because you're able to go ahead and buy
36:34
what you need, make a list and what you need and that's it.
36:37
And then you can say, hey, I have this much money for food
36:40
this month. I have to stay within this.
36:42
And so being able to plan out exactly what that is is big.
36:46
And then also meal planning, you know, really actually planning
36:49
out and being intentional. When you look over the week, my
36:52
husband and I, we do this every Sunday night where we always
36:53
look at our week and say, hey, what do we have going on Monday
36:56
night and Tuesday night, OK, we got, you know, one of our
36:58
daughters has tennis this month or, you know, we have a friend
37:00
coming over on Wednesday night. Like you look at you look at
37:03
your week and you plan out because really where people
37:06
spend so much money with food is out at restaurants and it's out
37:09
of convenience. And they go go through the drive
37:12
through. They do what they have to do
37:13
just to get dinner on the table. But if you actually plan it out,
37:16
get your crock pot out and it doesn't have to be too fancy
37:19
meals. So I mean, I always tell this to
37:21
moms, I've told myself this, whether you're on a tight budget
37:23
or you're not, your kids can have eggs and bacon for dinner
37:27
one night. Like it's OK, everything is
37:28
fine. You know, it's we put so much
37:30
expectation on how things should should be.
37:34
And granted, we want good diets obviously for our kids and eat
37:37
healthy, all of that. But there is a time and a place
37:39
to be like we're having grilled cheeses and that's our dinner
37:42
because mom's worked all day and I'm tired and we're not going to
37:45
go out to eat every meal. And this is what we're doing.
37:47
So again, give yourself kind of this, this grace, you know,
37:50
Ramsey, we always say when you're getting out of debt, it's
37:52
beans and rice, rice and beans. So it's like the cheapest stuff,
37:56
get on table, plan it out. But when you do that, you really
37:59
can control that food budget because the food budget is the
38:02
one place people overspend so often.
38:05
And I understand why. So do you know, we do in our
38:07
house, but those kind of things where you shop, making a list
38:11
and meal planning and knowing what you're doing, just that
38:13
level of intentionality will help you save money.
38:17
You kind of already touched on this, but I have to ask because
38:20
I know that there's such a big push today and I think it's good
38:23
to eat more healthfully. So to eat, you know, organic or
38:27
to eat fruits and vegetables, more and less processed foods,
38:30
to eat lean proteins or, you know, full fat proteins that
38:33
matter. And you know, you know, the, the
38:36
chickens that are free range and make sure that you're eating
38:39
those eggs. So what is your take on all of
38:41
that? Cause typically, unfortunately,
38:43
the processed stuff is cheaper than you know in most stores.
38:47
I'm going to say there's certainly exceptions, but it's
38:49
often cheaper than getting it fresh.
38:51
For sure. Well, things like vegetables and
38:53
fruits, honestly, you can still get frozen.
38:56
I mean, there's things that you can say, hey, I'm, you know,
38:58
it's the same type of thing, but it's usually cheaper when it's
39:00
frozen versus fresh. So and it's not always
39:03
processed. So that and again, it's, it's
39:05
putting these simple meals together.
39:07
So yeah, I don't want you just to eat junk 24/7.
39:11
But also, and maybe, and this is just my take, I'm not a
39:13
nutritionist. I will not claim that at all.
39:16
But everything in life, I'm like, there's just a balance
39:18
too. And as a parent, I'm like, yes,
39:20
you know, I think we're, we're going to strive to have, you
39:23
know, healthy meals in our home. But also at the end of the day,
39:27
I think we're all, I think we're going to be OK.
39:29
I think we're going to be OK if every now and then, you know, a
39:32
few, a few nights a week, you got to do what you got to do to
39:35
get, you know, chicken and broccoli and bread on the table.
39:38
Like that's going to be it. And that's great.
39:40
So, so yeah, I think, I think it's a balance, but that's
39:43
probably how how I parent naturally, not as a
39:46
nutritionist. Do you think that if someone so
39:53
for somebody listening, who is listening to this and think this
39:55
is all great, I'm going to try to do a lot of these things, but
39:58
I'm just not making enough money.
40:00
You know, I'm not making enough money to pay off the debts or
40:03
I'm not making enough money to save for the down payment or now
40:06
I have the house, but I'm not making enough money to save for
40:08
retirement. So they're they're, they're
40:10
still that experience. Of living paycheck to paycheck
40:12
or even that paycheck is not enough.
40:14
And so they're going they're slipping into debt.
40:16
You know, that's that's the struggle they're facing.
40:18
How do you make more money? You mentioned side gigs and that
40:21
you know, it's pretty doable to get a gig that gets you another
40:24
thousand or two thousand a month.
40:25
What are some recommendations for making?
40:27
Your money. So one thing I would say is to
40:29
do a budget because for so many people they don't live
40:33
intentionally with their paycheck already.
40:35
And it is amazing when you actually list everything out and
40:38
say, OK, here's what we spend on this, this and this and this,
40:41
and that's before we're budgeting.
40:43
So if we're actually intentional with the food category, you
40:45
know, could we take, you know, $200.00 off this month for that?
40:49
Could we, if we cut restaurants out all together, how much would
40:52
we save there? So even the expenses side, I
40:55
would still challenge people to do a budget.
40:57
People say that they feel like they got a raise once they did
40:59
that because it is amazing the margin that you possibly could
41:03
find by just doing that. So that's the expensive side and
41:06
then the income, yeah. So if there is, I mean, if
41:09
you're at a place where you're full time, 40 hour a week job is
41:12
not paying the bills on just a basic level, then that's when I
41:17
think I would look into other options, whether it's other jobs
41:21
out there in the marketplace. There's a lot of places that are
41:24
really competitive that will pay an extra 10,000 a year, 20,000 a
41:27
year. So I would look into that
41:29
possibly if there's a if there's a section there, but also if it
41:34
is because you have two car payments and student loan, all
41:37
of that. If you eliminate all the debt
41:38
out of your budget, would you be OK?
41:40
Because if that's the case, then hey, we can make a plan to free
41:43
that up. But then we're going to have to,
41:45
I would go more the side hustle route at that.
41:46
But if you don't have any debt and you have savings and your
41:50
full time career is still not paying the bills, either your
41:53
lifestyle is too high or again, you're not making enough and you
41:57
may have to switch tracks or ask for a raise.
41:59
Look at your market value of your position.
42:01
You know, do some research there.
42:03
But we have side hustles. I mean, that can they're a dime
42:05
a dozen these days. I mean, it's everything from
42:08
house sitting and dog sitting to, you know, Uber, Instacart.
42:12
I mean, there's so much that people are really making.
42:15
Some people are making this a full time gig.
42:16
I don't know if I would recommend that long term, but
42:19
there's some really great options.
42:20
Yeah, to make some extra cash and also look at what you're
42:23
already good at. So that's where we find a lot of
42:25
people make the most money. It's in their full time career
42:27
and what they're doing. Can you do that extra on the
42:31
sides, whether you're a graphic artist or Yep, you do podcasting
42:35
and you help produce a podcast, could you do another one on the
42:37
side? You know, what are the things
42:38
that you can be doing that you're already doing in your day
42:41
job? Because you'll probably make
42:42
more hourly doing that. What about stay at home moms?
42:47
Any advice specifically for those moms that are, you know,
42:51
they've left their full time job, they left maybe a
42:53
high-powered career or career trajectory and they're not able
42:57
to put the time in there because they're devoted to their home,
42:58
but they want to bring an income for the household.
43:01
Yeah, Well, I would say your position already is saving you
43:04
guys money. I mean, the amount of how much
43:06
money childcare is these days, it's just it is wild.
43:09
And you know, I talked to a lot of moms and they were like, they
43:12
made it their mission to cut the expensive side of the household
43:15
because, you know, they're the ones usually doing the, they had
43:17
the purchasing power. Usually they're the ones buying
43:20
everything. And so even saving money that
43:22
way is great. Now, if you did want to earn
43:24
extra money, I think online, online jobs are some of the best
43:28
to do. And it doesn't have to be that
43:30
much. Maybe it's 10 hours a week,
43:33
right? And there's maybe two or three
43:34
nights you do some work and like online assistance are making
43:38
some great money. And if you're really an
43:39
organized person and that's something that you're good at,
43:41
you could look into that, you know, any level of, of tutoring
43:45
or what you were doing in your past career again.
43:48
But I know it's difficult if you've, I mean, I know this as a
43:51
mom, I have 3 little kids and like you're exhausted at the end
43:54
of the day. I mean, like you're just, you're
43:55
so tired. So I never want to put that
43:59
extra pressure because I honestly think the role they're
44:01
doing already is saving money. But if you want to be earning
44:05
extra money, I think there is some things that you can do.
44:08
And some moms, you know, they do nanny shares even.
44:11
So one day a week you go and do something right outside the home
44:13
if that's what you want to do. But yeah, there are some options
44:15
out there. And again, everyone's story is
44:19
different and situation is different.
44:22
And if you're in a, let's say marriage and you're, you're the
44:26
stay at home mom or you know, you're the breadwinner and
44:29
you're in a career and you're just struggling, right?
44:31
So you've got maybe one income household and they or they want
44:36
to have a one income household. I should say you're trying to
44:38
move to that. But if you move to that, then
44:40
you will struggle to pay the mortgage, have retirement
44:44
savings and you know, do the extra things like pay for pay
44:47
for the children's college education.
44:49
Like those things are going to be pretty far out, at least the
44:52
saving for retirement and doing things like paying for your
44:54
child's college education. Should would you recommend still
44:57
in those situations though, to go for it in terms of set it up
45:01
so that you can live on the one income and don't worry too much
45:03
about retirement or, you know, saving for your kids college if
45:07
one of the spouses has a career where there is a trajectory.
45:11
So, you know, I'm not making the money today, but I should be
45:13
making it in five years. And I'm not going to sweat the
45:16
stuff about college savings or mortgage or not the mortgage.
45:20
You have to sweat one way or another.
45:21
But I'm not going to sweat maybe the retirement savings because I
45:23
know in the future I'll be able to.
45:25
What's your take on? That so you're saying for one
45:27
one spouse to come home? Exactly.
45:30
Yeah, we were at that time where you're making those decisions
45:32
about your kids and how. You're going to do.
45:34
Raise your family and you really want to One spouse really wants
45:37
to have that flexible position with less income or they just
45:40
want to be completely devoted to the.
45:42
Kids, absolutely, yeah. And at that point that is a
45:44
that's a values conversation, right?
45:46
I mean, that's something that you really value.
45:47
And I think that Trump's a lot of things.
45:50
And so I would say yeah, kids like we we're not going to be
45:53
able to save for college. Retirement is the one that I
45:55
would say I, I would push to say, let's do a budget and let's
46:00
figure out what other things we may have to cut out.
46:02
And in some, in some cases, and I, and this is a reality, people
46:06
move. They're like, Hey, we can't
46:08
afford this lifestyle without 2 income.
46:10
So our life has to look different.
46:12
But that change is so worth it to be able to have that values
46:17
conversation. Like we were saying that to make
46:18
that choice from a value standpoint, because then they
46:21
home's a home, right? I'm like, it is like if, if it
46:24
causes you to have a level of peace, if there's a calling, if
46:28
there's something there that says I'm supposed to be home,
46:31
then other decisions will probably have to be made, ones
46:34
that look a little different than today.
46:36
And if so, that's that's great that that is so worth it.
46:39
The peace in life I think is, is everything.
46:42
So, yeah, I would, I think kids college, if that's not in the
46:45
cards, that's on the cards right now.
46:47
Retirement is one. I would say, hey, try to work
46:49
that into the budget because that's going to come regardless.
46:51
Your kids may or may not go to college, but retirement will
46:54
come. So that is something that we
46:55
want to be looking towards. But yeah, people make drastic
46:58
moves and, you know, we were, you know, saying earlier, you're
47:01
in California. We know a lot of people that
47:03
have moved from California to Nashville where we are just from
47:07
a from a standard living aspect. Although Nashville's so
47:10
expensive. I know it has.
47:11
Getting and Nashville's getting expensive.
47:13
It. Depends where I guess, if you're
47:14
living further. Out for sure, for sure, but just
47:16
saying, you know, people are making drastic decisions in life
47:20
for their families. And so I think that that that is
47:23
something to consider for sure. And I'm I'm all about that.
47:26
I think that I think the saddest calls that I get when I talk to
47:29
people is, hey, you know, we just had our first baby and this
47:34
this happened last week and she's the chiropractor, went to
47:36
school to be a chiropractor and she has $120,000 in debt to be a
47:39
chiropractor. And now she wants to stay home
47:42
and her husband's working. They can't do the bills.
47:44
And so this, this idea that at that point, because of the debt,
47:48
like we talked about earlier, that that does put you in a hole
47:51
that does say, hey, you, you have to pay payments.
47:54
I mean, there is a truth to that.
47:56
And so mathematically, you, you, you can't quit right now.
48:01
Like you have to be able to pay your bills.
48:02
And so those are really difficult calls.
48:05
And that's one reason I'm such a proponent of being debt free,
48:07
because it just gives you more options, right?
48:09
If retirement's the only thing we're really thinking about,
48:11
then that's one thing. But when you're looking at car
48:13
payments and student loan payments and all of that, like,
48:16
that's a totally different ball game.
48:19
All right. Last question, Rachel, this has
48:21
been so awesome. Do you think, I know you said
48:23
you don't have a crystal ball, but what's your take on what the
48:26
economy is going to look like over the next, let's say, 12 to
48:29
18 months, including housing, interest rates, the whole thing?
48:33
Well, I don't think housing is going to crash.
48:34
I think a lot of people, you know, thought that a few years
48:37
ago. I don't.
48:38
I think house prices will still continue to slowly increase.
48:41
I think that will be tried and true like it usually is.
48:44
That's always been the world of real estate except the past few
48:46
years. So I think we've gone back to
48:48
that. I think, I pray, I hope the Fed
48:51
lowers the rate after the election.
48:53
I kind of think they're waiting. I mean, the the economy election
48:56
year is always very interesting. The market's always a little bit
48:58
more volatile. People don't make major
49:01
purchases. You do see that.
49:02
So I think the housing market will slow down until the
49:04
election season. And so, yeah, people kind of
49:07
just hold tight until something. So every four years we kind of
49:10
see that that effect. And then, you know, come
49:13
February, March, everything seems to open up again.
49:15
And that's when I hope the rates lower.
49:17
And, you know, I, I, I am a firm believer that regardless of
49:21
who's in the White House, I think either party you are still
49:23
in charge of you. Now, there can be different
49:26
policies and things like they put into place on who gets into
49:29
the White House. That does create a ripple effect
49:31
down to us, you know, as, as citizens and consumers.
49:35
But overall, just, I always have, don't have the hope that
49:39
if so and so gets in the White House, we'll be OK.
49:41
Or if so and so gets in the White House, we won't be OK
49:44
Regardless of the president, you are in charge of your home and
49:47
you can make great decisions whether it's a Republican or a
49:50
Democrat. Now, I think certain ones make
49:52
it, you know, again, something's easier or not.
49:55
But there is a power that I do want people to feel within
49:58
themselves to say I can do this regardless of the election year.
50:02
And so start now. Start today.
50:03
If you find yourself paycheck, paycheck and you find yourself
50:07
stressed and losing sleep at night when it comes to money,
50:09
just have hope that you can. Like, I talk to people everyday,
50:13
everyday. And if they're everyday
50:14
Americans, they're from Kansas and Ohio and California and
50:18
Massachusetts, like they're all over and they're doing this.
50:21
They're doing a budget. They're getting out of debt,
50:24
they're saving up their money, they're taking control and not
50:27
waiting on someone else to do it for them.
50:29
And there is such power in that and it's really a beautiful
50:31
thing. It's so awesome, Rachel, I know
50:35
you have a book outlet. People know what it is.
50:37
And also let us know where we can find your.
50:39
Work, that's why I launched two kids books this past year, which
50:41
I've never done kids books before and I was so excited to
50:44
do them. So it's I'm glad for where I am
50:47
and I'm glad for what I have. And it's about contentment and
50:49
gratitude. So those two kids books you can
50:51
find on rachelcruz.com. And yeah, and I and I'm I'm
50:54
everywhere. Podcast, YouTube, social, I'm
50:57
all over. So you can just find me at
50:58
Rachel Cruz. Awesome.
51:01
Thank you so much, Rachel. Awesome, thanks for having me.
51:05
Thanks so much for listening to this episode of the Lila Rose
51:07
Podcast. Do not forget to rate the show
51:10
if you're listening on podcast app.
51:11
If you've been listening for a long time, thank you so much for
51:13
listening. We really love getting ratings
51:15
because that will help the podcast reach more people.
51:18
So you can give us five stars if you're on Spotify or if you're
51:20
on Apple podcast and leave us a review.
51:22
I love hearing from you guys. Also, if you're on YouTube, make
51:25
sure you're subscribed. If you're not subscribed, you
51:26
might miss future episodes and ring that notification bell so
51:29
you do not miss future episodes. Also, go check out our
51:32
locals.com community that we are building.
51:34
That is where you can support this show and help us create
51:36
more great content for you. That's locals.com and a link for
51:39
our page is in the bio.