How to Bulletproof Your Emergency Fund


Transcript

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- Are you worried about money,

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and that if something unexpected happens,

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you don't know how you'll cover it?

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Well, let's talk about how
not only to save more money,

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but also how to have peace of mind.

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(upbeat music)

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All right, today we are
part three in our series,

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which is Baby Step 3.

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So, what is Baby Step 3?

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Well, before we get to that,
let's review 1 and 2.

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Baby Step 1 is saving

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a $1,000 starter emergency fund.

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Baby Step 2 is getting
completely out of debt,

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but your house, using the debt snowball.

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And then Baby Step 3

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is having three to six months
of expenses in the bank.

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I want you to get to this point,

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where you care more
about savings than stuff.

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So, in today's episode, I want to tell you

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how to bulletproof your emergency fund.

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And we're gonna talk to
a super motivating couple

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who is in this step and
they are staying the course,

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because I want you to do that too.

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(sighs) Let's be honest though,

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Baby Step 3, it's hard, yes.

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Because when you're getting out of debt,

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you're getting all these quick wins,

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you're hitting milestones,

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and you're like, yes! The
celebration continues.

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But building up your emergency fund

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can make you kinda feel like womp-womp.

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All we're doing is saving.

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But listen, don't let
your foot off the gas,

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you want to stay intense here

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because this is what it's about, you guys.

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This is the final sprint.

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So after the savings is done,

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you can actually breathe a little.

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Then you can focus on your retirement,

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and your kid's college, and
doing stuff for your future.

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You really do—

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you have a buffer between
you and emergencies.

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And honestly, that is not
the case for most Americans.

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In fact, 40% of Americans,

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they go into debt when an emergency hits.

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That means, if the car breaks down

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they use debt to cover it.

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So, they end up adding
interest and payments

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onto something that was already a crisis.

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It turns a really tough situation
into many sleepless nights

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by dragging it out even longer.

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This is because the personal
savings rate in America

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is less than 5%.

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5% you guys.

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In the words of my friend Chris Hogan,

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"That is not okay."

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Now listen, if you don't learn

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to shift your spending into savings,

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you'll never get out of
the cycle of Baby Step 2.

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And as a spender,

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here's how I've shifted
my mindset into savings.

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(light piano music)

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So, you're either naturally
a spender or a saver,

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and I am a spender.

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And I can tell you, when
I look back on my life,

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a lot of my spending impulses

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came out of a place of immaturity.

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It's kinda like a five
year old just being like,

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I deserve it. I want it.

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And so, I really did,

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I had to reign in my spender tendencies.

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But once I did, the idea of security

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felt so much better than spending to me.

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And when you recognize that,

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you can take the impulse out of it

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and learn to spend on a strict budget.

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It's way more mature

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than just doing what
feels good in the moment.

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So, when you take that mindset

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of knowing that you can
spend within your limit,

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then you can have the
patience to really save money.

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And it's so worth it,

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for the security of just
knowing that we're good.

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We have money in the
bank. We have money saved.

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This is a totally different feeling

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than having a goal to save
toward something special.

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Savings toward a house,
or a new car, or a trip,

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naturally that's motivating,

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because, in our culture,

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we want something tangible for our work.

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So it's understandable.

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But an emergency fund—you
can't really feel it tangibly.

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I mean, unless, I guess, you cash it out

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and have a bunch of dollar bills

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and throw it around at your house.

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I guess you can do that,

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but it's a different feeling, okay?

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When you have an emergency fund

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there is a gratification that
you just have peace of mind.

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And remember,

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this is about putting
money toward your future

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instead of paying off your past.

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How easy could it be just to quit your job

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if you had money in the bank.

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Yes, this stuff, it
really gives you freedom.

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And there's no easy
path to Baby Step 3.

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You have to work at it,

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but it is so worth it.

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Remember, debt steals your
future, savings secures it.

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So, let's talk about how to
bulletproof your emergency fund.

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(upbeat musical tones)

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Family is one of the most
important parts of my life,

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and making sure everyone is
taken care of is a top priority.

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That includes more than
just meal planning,

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entertaining the kids,

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and taking care of all
the day-to-day needs.

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That's why I recommend
having life insurance.

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Now, when you're shopping
for it, you might wonder,

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should I get term life insurance
or whole life insurance?

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I always recommend term insurance.

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It's going to save you tons of money

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that you can put toward
paying off your debt

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and funding your emergency fund.

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For a 30-year-old male, a
20 year, $250,000 policy

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would cost just $15 a month for term life.

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However, the same policy for whole life

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would be $190 per month.

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That is a huge difference.

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Winston and I use Zander Insurance.

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They do all the work for you

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by finding you the best prices and options

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customized to your needs.

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To learn more, call Zander
today, or go to zander.com,

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because that's who we trust
to take care of our family.

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(upbeat musical chords)

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All right, when it comes
to your emergency fund

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there's three things that you need to know

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to make it bulletproof.

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Number one: How much should it be?

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Well, the good news is,

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since you've already
completed Baby Step 1,

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you already have $1,000 saved. So great.

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Now you just need to
know two simple things

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to determine how much more money you need.

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Number one: Do you first lean
toward three or six months?

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So those of you that might lean toward

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just having three months saved,

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maybe you have dual income, a stable job,

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you feel good about where you're at,

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you might just need three months.

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Those of you that lean more six months,

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maybe you're a single income
family, or a single person,

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you're commission-based, freelance,

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irregular income, a little
bit of instability there,

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maybe you want more like six months.

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Now, if you're married, there
might be some compromise.

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I find that most men just
want three months saved,

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and most women want six months saved.

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So, sometimes you just
got to meet in the middle.

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All right, next you need
to determine your expenses.

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So, we always say your
emergency fund needs to be

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three to six months of expenses,

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but people fall in two camps here.

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For some people, their expenses
are just the bare minimum,

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like the Four Walls.

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That they have food,
shelter, utilities, gas,

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the main things, those are covered.

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And they consider that
expenses, which is great.

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Others of you are in this camp over here,

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which is where you want your lifestyle

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to stay exactly the same.

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So, if someone losses a job,

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you have enough money saved

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that your lifestyle
doesn't have to change.

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And so, Winston and I,
we looked at our budget,

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and we said, okay, here's how

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our lifestyle can stay exactly the same.

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So we took that number
and multiplied it by six,

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and that is ours.

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Again, neither camp is right or wrong,

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it's just what you want.

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All right, the second
thing that you need to know

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to bulletproof your emergency fund

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is where do you keep your emergency funds?

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Any savings account will do,

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I really recommend a money
market account, though.

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There's also banks online,

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and they pay more interest than
just traditional banks.

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But do your research.

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You don't want any hidden fees

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that will hit you if
you pull the money out.

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Because, remember, this is like insurance,

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it's not an investment.

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This emergency fund is insurance.
It is not an investment.

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I will repeat it again,
and again, and again.

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You want to be able to
get the cash out quickly,

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so put it somewhere

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so that you're not tempted
to use it on non-emergencies.

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Which brings me to number three:

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What is an emergency and what isn't?

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So three questions to ask yourself:

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Is it urgent?

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Is it unexpected?

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And is it necessary?

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So, a vacation you're dying
to take—not an emergency.

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The car breaks down—an emergency.

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Your air conditioning breaks in mid-August

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while you're pregnant—
that's an emergency, yep.

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A new couch—not an emergency.

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Your kid hits their
head on the coffee table

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and needs four staples—

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may have happened to me as
well, an emergency, yes.

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So, you have to figure out

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what is an emergency and what isn't.

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But it also comes down
to you and your spouse

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being on the same page about this.

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And you really need to do what
feels right for your family.

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So, to get started,
download my cheat sheet

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on how to calculate your emergency fund,

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and I will put a link in the show notes.

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All right, coming up next,

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I'll interview a couple
who is on Baby Step 3,

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and they have become obsessed with saving.

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- We felt stressed, overwhelmed.

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We were making a decent income,

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but not knowing kinda
where our money was going

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month to month.

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There was that overwhelming feeling of,

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this is how it's gonna be forever.

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Back in 2014 we had about,

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close to $100,000 in debt,

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and I was laid off from my job.

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- That was a scary feeling.

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And only having a little bit of savings

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was a terrible feeling.

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- So we made the decision
to sell our house,

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take that money, pay off
credit card, pay off a car,

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pay off a school loan,

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and then we were left

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with about $40,000 or $38,000 worth of debt.

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- Once we started paying things off,

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then we could see a light
at the end of the tunnel,

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but it took a little bit to get there.

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At first, it was very overwhelming,

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but then we made a first big payment,

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and the first one was like
$6,000 or $7,000.

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Then once that was gone,
then the momentum built.

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- You start rolling
through the debt snowball

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and the more you get through it,

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then it's like, okay, we can do this.

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- And then it was exciting.

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And then it wasn't as overwhelming,

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and the anxiety was calm at that point on.

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Okay, we can do this.

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This is short term,
then it's gonna be over.

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Once we started Baby Step 3
it got a little easier

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because we finally felt like

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we were working to
actually save something.

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So now knowing, okay, we're
gonna save as much as possible

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so that if we ever get
in that situation again,

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we don't have to worry.

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I mean, I get a little
obsessive with the saving

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because it's security,
and security feels good.

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- Yeah, it's a lot of sacrifice,

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but if you kinda step back and look at,

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okay, at the end of this,

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it's gonna be a much bigger payoff

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than whatever it was we were
gonna buy or do at the time.

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- I feel like now I'm
actually making money,

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and I'm more motivated,

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and I want to make more. I
have a little more of a hunger

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because I don't feel
as tied down to loans.

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It just feels better.
It's a better feeling.

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- Just feeling that security of,

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hey, if something happens,
we're gonna be okay.

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And it really changes your
perspective on working

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and on life in general.

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- Well, Nick and Amanda,
thanks for being here.

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- Thank you.

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- Yeah, thanks for sharing
your story. I love it.

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You guys started on the Baby Steps.

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You kinda started your money journey.

0:11:09.660,0:11:13.450
So tell me what caused you guys
to begin this whole process?

0:11:13.450,0:11:15.623
- So I think, before we got started

0:11:15.623,0:11:17.870
with Financial Peace University,

0:11:17.870,0:11:19.350
we were stressed out every month.

0:11:19.350,0:11:21.250
Not knowing where our money was going,

0:11:22.260,0:11:23.280
get to the end of the month

0:11:23.280,0:11:25.410
and scraping money together to see,

0:11:25.410,0:11:26.810
are we gonna be able to pay our mortgage?

0:11:26.810,0:11:28.777
Are we gonna be able to buy food?

0:11:28.777,0:11:31.870
And it was just that
overwhelming stress every month.

0:11:31.870,0:11:33.157
It's like, okay, we have to do

0:11:33.157,0:11:35.320
something different in our lives

0:11:35.320,0:11:38.397
if we're gonna break the cycle of this.

0:11:39.340,0:11:41.620
And so that's kind of why

0:11:41.620,0:11:44.481
we started Financial Peace University

0:11:44.481,0:11:45.720
and started on the journey.

0:11:45.720,0:11:47.020
- Yeah, so you guys were living

0:11:47.020,0:11:49.760
a pretty, quote unquote,
normal life, you would say.

0:11:49.760,0:11:51.670
Because that's how most people
function with their money.

0:11:51.670,0:11:53.730
But you got to the point that it's like,

0:11:53.730,0:11:56.502
the stress and just the mundane task of,

0:11:56.502,0:12:00.050
we're stuck in this process,
caused you to change.

0:12:00.050,0:12:04.980
- Yeah, it was kinda
looking at the incoming

0:12:04.980,0:12:06.490
and outgoing every month.

0:12:06.490,0:12:09.510
It was, everything you make
was continuously going out

0:12:09.510,0:12:11.660
and you were left with nothing
at the end of the month.

0:12:11.660,0:12:14.167
Working so hard, going
to your job every day,

0:12:14.167,0:12:17.340
and it's like, there has
to be more than this.

0:12:17.340,0:12:19.970
- Totally, so what kinda got y'all,

0:12:19.970,0:12:22.460
what introduced you to
Financial Peace University?

0:12:22.460,0:12:25.040
- I was checking my email on the way home

0:12:25.040,0:12:28.190
from driving to Illinois,
driving back here to Tennessee,

0:12:28.190,0:12:30.310
and something popped up in my email

0:12:30.310,0:12:33.097
about Financial Peace
University at our local church.

0:12:33.097,0:12:36.800
And I knew, kind of, I
knew about Dave Ramsey

0:12:36.800,0:12:37.880
and the Baby Steps and everything,

0:12:37.880,0:12:40.930
but we hadn't actually
tried to live by it.

0:12:40.930,0:12:43.180
It was kind of like,
yeah, I understand it.

0:12:44.151,0:12:44.984
And then I was like,

0:12:44.984,0:12:47.270
hey, do you want to try,
do you want to do this?

0:12:47.270,0:12:48.103
- And she's like—

0:12:48.103,0:12:49.090
- Yes.

0:12:49.090,0:12:51.120
- Absolutely, let's try it.

0:12:51.120,0:12:52.090
What do we have to lose?

0:12:52.090,0:12:53.300
We had nothing to lose.

0:12:53.300,0:12:54.440
It can't get much worse

0:12:54.440,0:12:56.350
than kind of what we're doing right now.

0:12:56.350,0:12:58.210
- I married into a lot of debt with him,

0:12:58.210,0:13:03.210
so for me, I had no emotional
attachment to that debt,

0:13:03.300,0:13:04.620
which was frustrating.

0:13:04.620,0:13:07.223
And I think I was probably
a little bit resentful.

0:13:08.912,0:13:09.745
(group laughs)

0:13:09.745,0:13:10.578
- A little bit.

0:13:10.578,0:13:11.411
- A lot, okay.

0:13:11.411,0:13:13.340
And I was exhausted.

0:13:13.340,0:13:14.880
I was sick of going to work,

0:13:14.880,0:13:17.183
working so hard to pay his school loans.

0:13:17.183,0:13:18.600
I mean, it was "our school loans,"

0:13:18.600,0:13:20.150
but it did not feel like that to me.

0:13:20.150,0:13:21.590
- Did you ever get to a place then,

0:13:21.590,0:13:23.133
because I do hear that
a lot with spouses, of

0:13:23.133,0:13:26.580
one spouse brings in a ton
more debt than the other.

0:13:26.580,0:13:27.623
How did you navigate that?

0:13:27.623,0:13:29.330
Or how did you overcome that?

0:13:29.330,0:13:30.840
Do you feel like you got in a better spot,

0:13:30.840,0:13:32.190
or were you just always frustrated

0:13:32.190,0:13:33.283
through all of Baby Step 2?

0:13:33.283,0:13:34.117
What was it like for you?

0:13:34.117,0:13:35.300
- It was hard

0:13:35.300,0:13:37.910
because I came in with zero debt.

0:13:37.910,0:13:41.530
I came in with no debt
and a savings account.

0:13:41.530,0:13:47.740
So then I come into $80,000 or $90,000 
in school loans,

0:13:47.820,0:13:50.240
and that was very overwhelming.

0:13:50.240,0:13:53.060
So I had to, we had to work through

0:13:53.060,0:13:55.717
a lot of those issues of,

0:13:55.717,0:13:58.357
I'm sick of working to
pay off your school loans,

0:13:58.357,0:14:00.180
let's kick it in gear.

0:14:00.180,0:14:02.370
I felt like I was kicking it more in gear

0:14:02.370,0:14:04.020
and he was just kinda like, well.

0:14:04.950,0:14:07.160
And he's a dreamer and I'm the nerd,

0:14:07.160,0:14:10.770
so the fact that the dreamer
wanted to learn about money,

0:14:10.770,0:14:14.260
I was like, sign up now,
do not change your mind.

0:14:14.260,0:14:15.780
Just, yes, we're doing it.

0:14:15.780,0:14:18.970
- Go forward, and it was so
worth it, the nine weeks?

0:14:18.970,0:14:22.980
- Absolutely, it very
much kept us accountable

0:14:22.980,0:14:25.720
to have to go somewhere. You
have to leave your house,

0:14:25.720,0:14:28.997
you have to go to this
class, you watch Dave talk,

0:14:30.352,0:14:33.145
you go through the conversation
pieces in the book,

0:14:33.145,0:14:35.980
and you talk to others
who are going through

0:14:35.980,0:14:37.240
a very similar experience.

0:14:37.240,0:14:38.884
Some worse, some not as bad,

0:14:38.884,0:14:40.257
but it kinda makes you feel like,

0:14:40.257,0:14:42.937
okay, we're normal,

0:14:42.937,0:14:44.477
but we're all in this together

0:14:44.477,0:14:46.810
to try and break the cycle.

0:14:46.810,0:14:48.610
So it gives you that accountability person

0:14:48.610,0:14:50.090
to bounce it off of,

0:14:50.090,0:14:50.980
to give you encouragement

0:14:50.980,0:14:53.510
when you get a little down on things.

0:14:53.510,0:14:55.787
So it was totally worth it.

0:14:55.787,0:14:56.960
Loved the experience.

0:14:56.960,0:14:57.793
- So good.

0:14:57.793,0:14:58.910
Okay, if you guys are curious about it,

0:14:58.910,0:14:59.927
make sure to click the
link in the show notes

0:14:59.927,0:15:01.540
because we have all the information

0:15:01.540,0:15:02.740
about Financial Peace University.

0:15:02.740,0:15:04.560
Make sure you check that out.

0:15:04.560,0:15:06.630
Okay, so you guys are on Baby Step 3,

0:15:06.630,0:15:08.100
which is big. That's a big deal.

0:15:08.100,0:15:10.420
We talk a lot about Baby
Step 2 on this show

0:15:10.420,0:15:12.130
and the idea of getting out of debt,

0:15:12.130,0:15:14.660
but you guys have transitioned
to Baby Step 3.

0:15:14.660,0:15:18.457
So, tell me about the difference
between Baby Step 2

0:15:18.457,0:15:20.950
and Baby Step 3 for you guys.

0:15:20.950,0:15:24.370
- You know, paying off
the debt in Baby Step 2,

0:15:24.370,0:15:25.890
we got to the end of it,

0:15:25.890,0:15:29.990
and for me, I was expecting this big bang

0:15:29.990,0:15:33.690
this like parade, and the band going off,

0:15:33.690,0:15:35.470
and like, hey, you paid your debt off!

0:15:35.470,0:15:37.930
And for me it was very
kind of anticlimactic,

0:15:37.930,0:15:42.641
it's like, okay, well,
let's keep going. Next.

0:15:42.641,0:15:47.641
But I would say the excitement of then,

0:15:47.990,0:15:50.360
instead of paying other people your money,

0:15:50.360,0:15:51.770
you get to keep your own money.

0:15:51.770,0:15:54.950
It's a crazy thought,
you keep your own money,

0:15:54.950,0:15:58.744
put it in the bank, see it
grow, and the sense of security,

0:15:58.744,0:16:01.946
it's extremely motivating
to be in that position.

0:16:01.946,0:16:03.100
- It makes you want to work more

0:16:03.100,0:16:03.933
and work harder

0:16:03.933,0:16:06.120
because it's for, it's a different why,

0:16:06.120,0:16:08.010
so it's much more motivating.

0:16:08.010,0:16:09.480
- So I'm curious, for you, Amanda,

0:16:09.480,0:16:11.140
because he said there wasn't confetti

0:16:11.140,0:16:13.250
and this big hurrah after
you paid off the debt.

0:16:13.250,0:16:15.720
He was like, okay, Baby Step 3
now, let's keep going.

0:16:15.720,0:16:17.100
Did you feel a sense of relief?

0:16:17.100,0:16:18.410
Did you feel any more emotion?

0:16:18.410,0:16:19.357
- I felt the confetti.

0:16:19.357,0:16:20.190
- You felt the confetti.

0:16:20.190,0:16:21.147
- Press enter, it was like,

0:16:21.147,0:16:23.913
yes, I'm done with those student loans,

0:16:23.913,0:16:28.323
and I can move on, and stop
being mad about, mad about it.

0:16:29.240,0:16:30.380
I can move on now.

0:16:30.380,0:16:33.583
You own your degree, you own
that knowledge, let's move on.

0:16:33.583,0:16:36.290
- And so, would you say it's
as motivating as Baby Step 2?

0:16:36.290,0:16:37.950
Because sometimes people
say Baby Step 3

0:16:37.950,0:16:39.220
is a little bit hard to get through

0:16:39.220,0:16:42.062
because they're just like
saving money, saving money,

0:16:42.062,0:16:44.223
but you guys feel energized by it?

0:16:44.223,0:16:46.030
- I think it's more motivating.

0:16:46.030,0:16:47.520
- Okay, that's good.

0:16:47.520,0:16:49.632
- Yeah, I believe it's more motivating.

0:16:49.632,0:16:50.611
You're seeing the—

0:16:50.611,0:16:52.780
- You really feel like you're
actually winning, I guess

0:16:52.780,0:16:53.700
in baby step three.

0:16:53.700,0:16:56.700
Baby step two is, it will wear you down.

0:16:56.700,0:16:57.860
- You're paying for your past.

0:16:57.860,0:16:59.330
I mean it's like throwing money backwards.

0:16:59.330,0:17:03.420
- Yeah, so Baby Step 3 is
just nice breath of fresh air.

0:17:03.420,0:17:04.380
- Yes.

0:17:04.380,0:17:06.603
- Saving money, it's a different feeling.

0:17:06.603,0:17:07.436
- I love it.

0:17:07.436,0:17:11.690
So, you guys, you really have
changed your whole philosophy

0:17:11.690,0:17:12.523
when it comes to money.

0:17:12.523,0:17:13.356
From not just paying off debt,

0:17:13.356,0:17:14.900
but now actually saving money.

0:17:14.900,0:17:17.669
And you actually have
a positive net worth,

0:17:17.669,0:17:20.260
which is unlike a lot
of people in America, right?

0:17:20.260,0:17:21.640
They don't have savings.

0:17:21.640,0:17:22.870
So, what's your why?

0:17:22.870,0:17:26.040
What keeps you doing
this day in and day out?

0:17:26.040,0:17:27.307
What keeps you on Baby Step 3?

0:17:27.307,0:17:30.840
What's gonna cause you to do
Baby Step 4, 5, and 6?

0:17:30.840,0:17:33.012
- I want my son to grow up

0:17:33.020,0:17:40.040
and see positive spending and
saving, and to be different.

0:17:40.200,0:17:42.760
And to go to college with no debt,

0:17:42.760,0:17:44.850
and come out with no debt,

0:17:44.850,0:17:47.720
and just have a fresh look on life,

0:17:47.720,0:17:48.620
and not be worried

0:17:48.620,0:17:51.720
about $80,000 in school loans.

0:17:51.720,0:17:52.980
We want to live.

0:17:52.980,0:17:54.470
We want to travel, we want live our life,

0:17:54.470,0:17:57.830
and I don't want to be
bogged down with Sallie Mae.

0:17:57.830,0:17:59.360
So that's my why.

0:17:59.360,0:18:00.193
- That's good.

0:18:00.193,0:18:01.026
- Yeah, I agree.

0:18:02.113,0:18:04.705
I see a lot of people
working when they're older

0:18:04.705,0:18:06.150
and can't retire,

0:18:06.150,0:18:09.320
and I think that's a huge,
that scares me a lot,

0:18:09.320,0:18:11.360
the thought of that,
not being able to retire

0:18:11.360,0:18:14.170
and having to work as
opposed to wanting to work,

0:18:14.170,0:18:18.950
and enjoy our lives
together as we get older.

0:18:18.950,0:18:20.560
So that's kind of my big thing.

0:18:20.560,0:18:22.830
I want that, I want to
look out for my future,

0:18:22.830,0:18:27.120
and our future, and be able
to retire and enjoy our lives.

0:18:27.120,0:18:27.953
- So great.

0:18:27.953,0:18:28.786
- That's what it's all about.

0:18:28.786,0:18:29.660
- I love it, love it.

0:18:29.660,0:18:32.280
So how much debt was paid off in total?

0:18:32.280,0:18:34.648
- $38,000 in seven months.

0:18:34.648,0:18:36.330
- $38,000 in seven months.

0:18:36.330,0:18:39.410
And then, how much is saved now?

0:18:39.410,0:18:40.730
- At the end of this month

0:18:40.730,0:18:44.090
I think we're gonna be close
to $12,000.

0:18:44.090,0:18:44.950
- Yes.

0:18:44.950,0:18:46.620
- Okay, so a lot of the audience watching

0:18:46.620,0:18:48.240
is on Baby Step 2,
they're paying off debt.

0:18:48.240,0:18:50.770
But there's a percentage
of them in Baby Step 3.

0:18:50.770,0:18:52.590
So, those in Baby Step 3

0:18:52.590,0:18:55.130
that may not be as
motivated as you guys are

0:18:55.130,0:18:56.060
in Baby Step 3,

0:18:56.060,0:18:57.940
what advice would you give them?

0:18:57.940,0:18:58.773
- Just keep going.

0:18:58.773,0:19:02.533
I mean, to see your savings account grow,

0:19:03.720,0:19:05.410
it's such a secure feeling,

0:19:05.410,0:19:08.024
knowing if something
happens, you're covered.

0:19:08.024,0:19:09.660
And if you've never gone through,

0:19:09.660,0:19:12.560
so I guess for us, we've gone
through me losing my job,

0:19:12.560,0:19:13.490
and know how that feels

0:19:13.490,0:19:15.950
to not have that savings account there.

0:19:15.950,0:19:18.450
And I hope people don't
have to experience that.

0:19:18.450,0:19:21.889
But from somebody who
has, and us that have,

0:19:21.889,0:19:25.200
it's an awful experience
if you don't have savings.

0:19:25.200,0:19:28.140
So just know that that is your security.

0:19:28.140,0:19:31.440
That if somethings happens,
that's what it's there for.

0:19:31.440,0:19:32.608
- That's your plan B.

0:19:32.608,0:19:33.650
- So stay with it.

0:19:33.650,0:19:34.620
- So good.

0:19:34.620,0:19:35.960
Well you guys are awesome.

0:19:35.960,0:19:37.950
Seriously, thank you
so much for coming on,

0:19:37.950,0:19:39.089
sharing your story.

0:19:39.089,0:19:41.310
It's so motivating seeing
people do this stuff

0:19:41.310,0:19:42.820
day in and day out, and that's you guys.

0:19:42.820,0:19:44.150
So keep rocking it.

0:19:44.150,0:19:46.130
You're doing so great, so great.

0:19:46.130,0:19:47.580
All right, coming up next, I will tell you

0:19:47.580,0:19:49.990
one place in house you
probably haven't looked

0:19:49.990,0:19:51.925
to save money for Baby Step 3.

0:19:51.925,0:19:54.508
(upbeat music)

0:19:59.343,0:20:02.370
All right, this episode
is all about saving money,

0:20:02.370,0:20:04.280
and a great place that
we all love to save money

0:20:04.280,0:20:05.480
is with our food.

0:20:05.480,0:20:08.100
So, I brought editor-in-chief
Susan Spencer in

0:20:08.100,0:20:11.140
from Woman's Day to help us
with some really great tips.

0:20:11.140,0:20:12.140
Thanks, Susan, for being here.

0:20:12.140,0:20:13.010
- Thanks so much for having me.

0:20:13.010,0:20:14.310
- You're like an alum on the show.

0:20:14.310,0:20:16.030
I feel like you've been back

0:20:16.030,0:20:16.863
and I love it.

0:20:16.863,0:20:19.860
So this is great tips because it all
has to do with your freezer.

0:20:19.860,0:20:21.000
- Your freezer, exactly.

0:20:21.000,0:20:23.610
You never would think that
this silly little appliance

0:20:23.610,0:20:24.683
would save you so much money.

0:20:24.683,0:20:26.810
It really actually does.

0:20:26.810,0:20:29.630
- So, starting with, I see broccoli.

0:20:29.630,0:20:30.670
- Yes, you see broccoli.

0:20:30.670,0:20:33.440
So, frozen foods are your best friend,

0:20:33.440,0:20:35.740
and they're really a
good way to save money.

0:20:35.740,0:20:37.562
So first of all, frozen foods

0:20:37.562,0:20:39.762
are picked at the peak of ripeness,

0:20:39.762,0:20:42.620
so they're very, very good
for you, extremely nutritious.

0:20:42.620,0:20:45.030
So there's a nice health
angle here as well.

0:20:45.030,0:20:46.540
But they also cost a lot less.

0:20:46.540,0:20:50.360
So if you just compare
broccoli, your friend,

0:20:50.360,0:20:52.569
fresh broccoli is about $1.99 a pound,

0:20:52.569,0:20:55.160
whereas frozen is about $1.25 a pound.

0:20:55.160,0:20:57.110
And you're not losing
anything in terms of flavor,

0:20:57.110,0:20:58.970
and as I said, it's actually a
little bit more nutritious.

0:20:58.970,0:20:59.820
- Which is so good,

0:20:59.820,0:21:01.190
because legitimately, right now in life,

0:21:01.190,0:21:02.990
if you open my refrigerator,

0:21:02.990,0:21:05.490
I have a head of broccoli from last week
that we didn't end up using,

0:21:05.490,0:21:07.100
but when it's frozen it stays—

0:21:07.100,0:21:09.600
- Exactly, and also, I think
vegetable manufacturers

0:21:09.600,0:21:11.350
are putting out really,
really yummy things

0:21:11.350,0:21:12.800
that kids actually really like.

0:21:12.800,0:21:14.850
So these veggie tots are
particularly delicious.

0:21:14.850,0:21:16.599
- And they're from cauliflower,
by the way (laughs).

0:21:16.599,0:21:18.500
I was like, my kids will eat it,

0:21:18.500,0:21:21.070
it just looks like fried and
good, my kids will do it.

0:21:21.070,0:21:23.900
So good frozen veggies, the way to go,

0:21:23.900,0:21:25.980
save some money that way.

0:21:25.980,0:21:27.750
All right, up next, is what?

0:21:27.750,0:21:28.583
Bread?

0:21:28.583,0:21:29.560
- Well bread, I mean,

0:21:29.560,0:21:31.400
this is something that is often on sale,

0:21:31.400,0:21:32.870
but if you buy a couple of loaves

0:21:32.870,0:21:34.530
and stick them in the fridge
or leave them on the counter,

0:21:34.530,0:21:35.520
they're gonna go moldy.

0:21:35.520,0:21:37.720
However, you can again
put them in your freezer

0:21:37.720,0:21:38.750
and that'll save you money

0:21:38.750,0:21:41.260
because it'll extend the life of the bread.

0:21:41.260,0:21:43.460
But our tip is to actually split them.

0:21:43.460,0:21:45.130
So if you buy English muffins, split them.

0:21:45.130,0:21:47.480
If you buy a beautiful
loaf of artisanal bread,

0:21:47.480,0:21:50.110
slice it and put the individual
slices in the freezer,

0:21:50.110,0:21:51.240
and you just pull them out

0:21:51.240,0:21:52.380
whenever you want a piece of toast.

0:21:52.380,0:21:54.280
- So easy, that's so great.

0:21:54.280,0:21:56.510
- And there's lots of other
ways to extend the life of food.

0:21:56.510,0:21:59.670
My favorite tip has to
do with fresh herbs.

0:21:59.670,0:22:03.680
So these cost about $2.50,
$1.99, something like that,

0:22:03.680,0:22:04.680
and I don't know about you,

0:22:04.680,0:22:06.630
but I always end up using one sage leaf,

0:22:06.630,0:22:09.070
and the rest goes bad.

0:22:09.070,0:22:11.120
So when they're starting to maybe look

0:22:11.120,0:22:13.090
a little bit not so
great, you chop them up

0:22:13.090,0:22:14.970
and mix them with a
little bit of olive oil,

0:22:14.970,0:22:17.300
and just put them in a
regular ice cube tray,

0:22:17.300,0:22:18.220
stick them in the freezer,

0:22:18.220,0:22:19.920
and then you can just use them in soups,

0:22:19.920,0:22:21.497
or stews, or in dishes,
whatever you want to do.

0:22:21.497,0:22:22.910
- [Rachel] That's so smart.

0:22:22.910,0:22:23.743
I love that.

0:22:23.743,0:22:25.620
- Another thing that's super
expensive at the supermarket,

0:22:25.620,0:22:27.330
and you should always
buy them in the bulk bin,

0:22:27.330,0:22:28.960
is nuts and nut flours.

0:22:28.960,0:22:30.740
And they actually have
a tendency to go rancid

0:22:30.740,0:22:32.120
if you just leave them out.

0:22:32.120,0:22:34.170
So we suggest keeping
those in the freezer,

0:22:34.170,0:22:36.680
it extends their life, and
again, they'll last a lot longer.

0:22:36.680,0:22:37.513
- Love it.

0:22:37.513,0:22:38.850
- So you won't lose money that way.

0:22:38.850,0:22:39.700
- Keep it frozen.

0:22:39.700,0:22:41.580
I know, my freezer's a little nuts,

0:22:41.580,0:22:43.940
if we were to open mine at home right now.

0:22:43.940,0:22:46.230
So, your next tip is probably my favorite

0:22:46.230,0:22:49.032
because it makes me feel better about life.

0:22:49.032,0:22:50.272
A little bit of control.

0:22:50.272,0:22:52.320
- Control and organization is key.

0:22:52.320,0:22:53.910
So you can do all of these things,

0:22:53.910,0:22:56.630
but if you have a freezer
that looks like a black hole,

0:22:56.630,0:22:58.572
like mine does, then you're
not gonna save any money

0:22:58.572,0:22:59.980
because you won't be able to find anything.

0:22:59.980,0:23:01.000
- And we're terrible.

0:23:01.000,0:23:02.987
I'll save a little thing of meat,

0:23:02.987,0:23:04.720
and just wrap it in saran wrap,

0:23:04.720,0:23:06.200
and put it in a bag, and freeze it.

0:23:06.200,0:23:08.200
I'm like, I don't know how
long that meat's been there.

0:23:08.200,0:23:12.670
So, this literally is about
to save the Cruzes a lot.

0:23:12.670,0:23:13.780
- And frugality is important,

0:23:13.780,0:23:15.040
and it's really good,

0:23:15.040,0:23:16.250
and so we're gonna help you here.

0:23:16.250,0:23:20.240
So, a couple of tips: First
of all, you can purchase,

0:23:20.240,0:23:21.190
for not very much money,

0:23:21.190,0:23:23.450
these bins were about
$7–10 a piece,

0:23:23.450,0:23:25.190
you can purchase different
bins, put them in,

0:23:25.190,0:23:26.720
and just pile things in here,

0:23:26.720,0:23:28.700
which is just a good organizational tool.

0:23:28.700,0:23:30.410
But you don't actually
have to buy anything,

0:23:30.410,0:23:32.030
you can use old canvas bags,

0:23:32.030,0:23:33.620
you can use pieces of cardboard.

0:23:33.620,0:23:35.652
The idea is that you want
to sort of stack things

0:23:35.660,0:23:38.600
in ways that you can sort
of see exactly what's what.

0:23:38.600,0:23:40.040
So you've got your meats together,

0:23:40.050,0:23:40.930
you have your fish together,

0:23:40.930,0:23:41.940
you have your vegetables together,

0:23:41.940,0:23:44.350
and that will allow you a
certain level of organization.

0:23:44.350,0:23:46.644
And of course, labeling,
always extremely important.

0:23:46.644,0:23:48.800
These are really cute labels,

0:23:48.800,0:23:50.520
but you can also just
write on the plastic bag

0:23:50.520,0:23:51.943
with a sharpie, super easy.

0:23:52.840,0:23:53.900
And another tip is,

0:23:53.900,0:23:56.110
when you're cooking something
like a soup or a stew,

0:23:56.110,0:23:58.820
and say you bulk cook
on a Sunday afternoon

0:23:58.820,0:24:00.194
and you want to freeze some of it,

0:24:00.194,0:24:02.980
put into a plastic bag,
label it of course,

0:24:02.980,0:24:04.670
and freeze it flat like this

0:24:04.670,0:24:06.340
so you can stack things on top of it.

0:24:06.340,0:24:07.250
It saves you a lot of space.

0:24:07.250,0:24:09.260
- So smart, verses just pouring
it in and it all bulks out.

0:24:09.260,0:24:10.140
- Right, exactly.

0:24:10.140,0:24:11.560
And then you know exactly what it is

0:24:11.560,0:24:14.100
and you know exactly when
it's going to expire,

0:24:14.100,0:24:15.487
because you put a date on it,

0:24:15.487,0:24:17.760
and that helps you actually
really use your freezer.

0:24:17.760,0:24:18.700
- I love it.

0:24:18.700,0:24:20.610
- And then, just a final tip,

0:24:20.610,0:24:22.580
as you put new foods into your freezer,

0:24:22.580,0:24:23.630
move the old ones forward.

0:24:23.630,0:24:25.400
So you've got the things
you have to eat first

0:24:25.400,0:24:27.100
are on the outside.

0:24:27.100,0:24:28.240
- That you can see, visually.

0:24:28.240,0:24:30.020
Open the freezer and it's all right there.

0:24:30.020,0:24:30.853
So good.

0:24:30.853,0:24:34.352
And it is amazing because the food
budget, it eats up so much money,

0:24:34.352,0:24:36.190
and it's so easy to waste stuff.

0:24:36.190,0:24:37.500
I hate to say it, but I'm guilty of that.

0:24:37.500,0:24:40.312
And so, tips like this saves
money over the long haul

0:24:40.312,0:24:42.820
that you can put into your
emergency fund you guys.

0:24:42.820,0:24:43.870
So great.

0:24:43.870,0:24:45.530
Well, for more great tips like this,

0:24:45.530,0:24:47.602
make sure to go to womansday.com

0:24:47.602,0:24:50.980
or check out the latest
issue on newsstands today.

0:24:50.980,0:24:51.952
Susan, thanks for being here.

0:24:51.960,0:24:52.600
- Thank you so much.

0:24:52.600,0:24:53.320
- So fun.

0:24:53.320,0:24:56.200
(upbeat music)

0:25:00.500,0:25:03.730
I hope this episode motivated
you to stay on track

0:25:03.730,0:25:05.606
and push through Baby Step 3.

0:25:05.606,0:25:07.650
Thank you guys so much for watching,

0:25:07.650,0:25:09.341
and if you haven't checked out my podcast,

0:25:09.341,0:25:10.770
make sure to do that.

0:25:10.770,0:25:14.450
And also subscribe to
YouTube and Facebook.

0:25:14.450,0:25:17.420
And as always, make sure you
take control of your money

0:25:17.420,0:25:19.133
and create a life you love.

0:25:19.133,0:25:21.883
(musical chords)