How To Save $1,000 Fast


Transcript

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- Would $1,000 give you some peace of mind?

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Well, in this episode, I'll
show you how to get it.

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(upbeat music)

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Hey everyone, today is going to be fun

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because we are going to talk
about your first step

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to never worrying about money again.

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This is going to be the first step

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on a journey for you to
take control of your money.

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So, we're starting a brand-new series today

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walking through the seven baby steps.

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So yes, there are seven of them.

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And it is a proven plan that has helped

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millions of people win with money.

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So today, it's the first day of the series

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so we're going to start with Baby Step 1,

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which is a $1,000
starter emergency fund.

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We're going to deep dive into this step.

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And also in this episode,
we're going to talk about

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ways to cover your
expenses when unexpected

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emergencies pop up.

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And I'll answer some of
the most common questions

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from people like you as they go through

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the Ramsey Baby Steps.

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And I love this first step because, really,

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this is the buffer between you and life.

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And $1,000 may seem like a lot,

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but there are ways that
you can save for it.

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So, if you want to keep
track of your progress,

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head to the show notes of this episode

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and get a free printable that
you can color in as you go.

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All right, some quick ways
to save $1,000 . . . Are you ready?

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Cut out all nonessentials.

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Make a budget.

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Use cash-back apps.

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Use energy-efficient lights.

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Brew your own coffee.

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Pack your own lunch. Meal prep.

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Wait 24 hours for a big purchase.

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Shop your insurance rates every year.

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Freeze your spending temporarily.
Do a no-spend challenge.

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Order water at restaurants.

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Switch grocery stores. Try
things like Aldi. Buy generic.

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Use gift cards at Kroger
and then you can use

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those points to get gas.

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Use your Instant Pot instead
of going out for dinner

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when you're too tired.

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Carpool to work.

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Pay with cash.

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You actually spend less
when you pay with cash.

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Save loose change.

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Sell your kids' clothes
at consignment stores.

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Sell things that you don't use anymore.

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If you haven't used or worn something

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in the past year, sell it.

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Sign up for free customer reward programs

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that are not credit card based.

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Stick to your grocery list.

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Find restaurants where kids eat free.

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Cancel unused subscriptions.

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Do your own lawn care, cleaning,
nails, hair—all of that.

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Go have a yard sale.
Keep selling some stuff.

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And finally, if you have
whole life insurance,

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you need to switch to term life insurance.

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So, term life insurance is
a policy that you take out,

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and in the event that
something happens to you,

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your family gets a
specific amount of money

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that is previously decided on.

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Now, there are several different
options you can choose from,

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and I suggest you get a 20-year policy

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that is 10 to 12 times your annual income.

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Now, a lot of people treat
their whole life policy

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as an investment rather than insurance.

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So, you should not treat
these the same, okay?

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Your investments and your
insurance should be separate.

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And whole life insurance costs you so much

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more money over time, and the
coverage is just not as good.

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Now, if you already have
a whole life insurance policy

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in place, you can
cancel it, cash it out, and

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get your money back.

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But only do this after you've gotten

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a term life policy in place.

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Now, I recommend using Zander Insurance.

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They make everything really easy for you,

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and they shop around for the best rates

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to keep the costs really low.

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So, make sure you visit
zander.com to get started today.

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All right, $1,000 emergency fund,
you guys—Baby Step 1.

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This is the easiest step

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of all the baby steps,
but it's also the hardest.

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(upbeat music)

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It's the easiest step because it's $1,000.

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Now, that may seem overwhelming to you,

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but it doesn't have to be, okay?

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Look at your budget. Go
to the last few episodes

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when we talk about budgeting.

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Cut some stuff out. It's great.

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You can get $1,000 really, really quickly.

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But it's the hardest step because it means

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that you are changing.

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You are changing the way
you are dealing with your money.

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You are changing the way
you are viewing your money.

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I mean, everything is about to change.

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And no one likes change.

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Change is uncomfortable. Change is hard.

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It's not always fun.

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But there was a moment for me
where that change happened,

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and I talk about it in
Financial Peace University.

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So I want you guys to take a look.

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Here it is.

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All right, confession: I am a spender.

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And I hated budgeting.

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That's right, some of
you probably just like,

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fell out of your seats
that Dave Ramsey's daughter

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hated budgeting, but it's the truth.

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It's just not naturally what I'm good at.

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I'm kind of like, not great at details.

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And just the idea of
budgeting was always so hard

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for me to grasp.

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I actually could
understand it, but doing it

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is what was difficult.

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And I can even remember when
Winston and I, my husband,

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when we were engaged, we
went to premarital counseling,

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and even our premarital counselor said,

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you guys should do a mock budget together.

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I was like, how much did
my dad pay you to say that?

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Because I was like, oh my
gosh, I know we need to.

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Just doing it is so hard!

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And so, when Winston and I got
married, we didn't budget.

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We didn't budget for
like the first six months

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of our marriage.

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And then finally, one
day, Winston came to me,

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and he was like, Rachel, we
need to do a budget together.

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And I just remember
thinking,

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you're one of those, aren't you?

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But I was like, okay I
know. I know I need to.

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We need to do this together.

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Just doing it . . .
I was like, okay, let's do it.

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So, I remember, we sat
down in our little condo

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that we were living in, at a kitchen table,

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and we did our first month's budget.

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And you guys, it was a disaster.

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Like, it was terrible.

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I think we budgeted $50
for food or something

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for the whole month.

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Like, it was so bad.

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The second month I remember
it got a little bit better.

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We learned from our mistakes.

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We went, okay, let's
adjust these categories,

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but it was still a little rough.

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The third month, it
actually started working.

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So much so that we were like,
oh my gosh, this is great.

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This is what living on
a budget feels like.

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This is amazing.

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And Winston and I are
not perfect with money,

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but I can confidently
tell you that we've done

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a budget pretty much from
that point ever since.

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So much so that a budget
became a part of our life,

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that we took a trip to Florida one year

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before we had kids. It was
kind of our last big hoorah.

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And we were flying down to Florida,

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and Winston looked over at me in the plane,

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and he was like, "Hey Rachel, listen,

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I want you to relax on this trip.

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I don't want you to worry about anything.

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So you don't have to think
about the budget at all,

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and you can just spend money."

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Mmm hmm, yes he did.

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Yes he did.

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I was like, wait, what?

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I was like, "For real, I don't
have to think about the budget

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and I can just spend money?"

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And he was like, "Yeah.

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I mean, if you're bumping
up against the trip budget,

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I'll let you know. But yeah, just enjoy."

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I gave him the biggest kiss in the world.

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I was like, "Babe, you're
letting me live in my strengths.

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Like, this is what I'm good at."

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And I remember, when we
got down to Florida,

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checked into our hotel,
went out by the pool.

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And it was one of those pools where

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waiters and waitresses walk around,

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and you can order drinks and
food to your seat at the pool.

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It was awesome.

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And so, this waitress
walked by and I was like,

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"Hey ma'am, do you guys have guacamole?"

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And she was like, "Oh yeah, sure."

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I was like, "I'd love some. Thank you."

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So, she brings it, I'm
eating it. It's delicious.

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And I was getting thirsty,
so I asked her then,

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can I have a menu to look at the drinks?

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So, when I opened the menu,
the first thing I see

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is appetizers.

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And I was like, oh.

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And I see chips and guacamole: $23.

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Mmm hmm, $23!

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I was like, did the
avocados fall from heaven?

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Like, what makes guacamole $23?

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I was like, it's okay,
Rachel. Just spend the money.

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Just spend the money.

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So, then I go down and I see drinks,

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and I see lemonade. I was
like ah, that's great.

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In my head I thought,
that's what I want to order.

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And I look over: $18.

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Mmm hmm, $18.

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I thought, what? This is crazy.

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And at that moment, the waitress
was right in front of me,

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and she said, "Okay, what
would you like to drink?"

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And I just had this battle
going on inside of me.

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And I remember thinking,
Rachel, just spend the money.

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Spend the money!

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Like, go back to your roots.

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Go back to who you were!

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And I looked at her, and I said,

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"I'll take the lemonade, please."

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And she brought it over, and I took a sip,

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and I was like, well, that was $1.50.

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Jeez. And in that moment,
I started spiraling.

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I started freaking out
because in my head I was like,

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I just spent so much money on pool snacks

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that tonight at dinner we
can't get an appetizer.

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We're going to have to go to Walgreens and

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buy granola bars for breakfast.

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Like, what have I just done?

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And I was just panicking.

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And in that moment, I
realized I was not panicking

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because of all the crazy
expensive prices at the hotel,

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even though it was ridiculous, I know.

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But I realized in that
moment that this was

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the first time—at that point, in years—

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that I felt so out of
control with my money.

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That I had no clue where
my money was going.

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And that's the moment I realized

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that a budget does not limit your freedom.

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A budget gives you freedom.

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A budget gives you permission to spend.

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So, I'm telling you guys, this is going to

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completely change the way you handle money

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because you're going to have control.

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But if you've never done a budget before,

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give it three months to get into a rhythm

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because it's going to take some time.

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Winston and I totally
are a testimony to that.

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It takes about three months.

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And you also will realize
that money is relational.

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You have to do this with your spouse.

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Or if you're single, find a
friend who is good at money

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who can look over your budget with you.

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We love finding new ways to save money.

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We lower categories in our
budget, buy things on sale,

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and even use coupons.

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But we often forget about
the biggest expense we have—

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and I'm talking about your mortgage.

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If you have been in your home for a while,

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00:10:21,770 --> 00:10:24,700
there may be options available
that can save you money—

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00:10:24,700 --> 00:10:27,640
not just pocket change, but real money.

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00:10:27,640 --> 00:10:30,730
The best way to get started
and see what options you have

257
00:10:30,730 --> 00:10:33,650
is by the Churchill Checkup
by Churchill Mortgage.

258
00:10:33,650 --> 00:10:36,360
A quick call with an
expert home loan specialist

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00:10:36,360 --> 00:10:38,540
can help you figure
out what's best for you

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00:10:38,540 --> 00:10:40,710
and discover incredible opportunities

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00:10:40,710 --> 00:10:42,640
to save time and money.

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00:10:42,640 --> 00:10:43,900
To get your Churchill Checkup,

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00:10:43,900 --> 00:10:47,903
go to
churchillmortgage.com/churchill-checkup.

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00:10:51,419 --> 00:10:54,002
(upbeat music)

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00:10:55,144 --> 00:10:56,250
All right, now we're going to hear stories

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00:10:56,250 --> 00:11:00,020
from people like you who
have started the baby steps.

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- We had our son, who had medical problems.

268
00:11:04,370 --> 00:11:09,370
And medical bills really
have traumatized our future.

269
00:11:10,800 --> 00:11:15,000
So we really wanted to
tackle as much as we could

270
00:11:15,000 --> 00:11:17,630
to handle those debts and to get them down

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as quick as possible.

272
00:11:18,760 --> 00:11:20,820
So, Financial Peace was the best way

273
00:11:20,820 --> 00:11:22,680
we saw fit to do that.

274
00:11:22,680 --> 00:11:25,940
- We started this class
mainly so that we can

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live our dreams out later down the road.

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- So we could give our
kids a better future

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00:11:32,740 --> 00:11:36,820
and show them whatever
comes our way in life,

278
00:11:36,820 --> 00:11:40,256
as far as the financial or any burdens,

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that we're handling them.

280
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- I grew up with my dad
always talking about

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Dave Ramsey says this,
and Dave Ramsey says that.

282
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And my parents—I think going through

283
00:11:51,440 --> 00:11:54,310
Financial Peace University
when I was so young—

284
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saved for a college fund for me,

285
00:11:56,100 --> 00:12:00,270
and so totally had no
student loans to pay off.

286
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So, I actually don't have any debt.

287
00:12:02,290 --> 00:12:04,340
But now, being in the class, it's kind of fun

288
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Because I get to apply the
things that I already know,

289
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and that I've already learned
in my own personal finances.

290
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- I can remember my parents
doing Financial Peace

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when I was younger.

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Knowing that that was great for their marriage

293
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and for us as a family financially.

294
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And so, now that we just got engaged,

295
00:12:20,550 --> 00:12:22,280
and so we're doing it together.

296
00:12:22,280 --> 00:12:24,000
- The funnest thing for me, though,

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was the conversations that we've had

298
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about our budget, finding
out who is the nerd

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00:12:29,690 --> 00:12:30,690
and who is the free spirit.

300
00:12:30,690 --> 00:12:33,060
They've gotten me excited
about our marriage

301
00:12:33,060 --> 00:12:34,930
and taking charge of our finances

302
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and getting started on the right foot.

303
00:12:38,850 --> 00:12:40,840
- I love hearing stories of people who are

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starting to see real life change.

305
00:12:43,290 --> 00:12:45,260
I mean, I'm sure a lot of you can relate to

306
00:12:45,260 --> 00:12:46,340
some of what you just heard.

307
00:12:46,340 --> 00:12:48,310
And I really want you
to have that hope, too.

308
00:12:48,310 --> 00:12:49,970
And I love that they plugged into a

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Financial Peace University community.

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00:12:52,030 --> 00:12:55,480
It always amazes me how
quickly people can see

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the light at the end of the tunnel.

312
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Now, some of them had
some questions for me,

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so let's see what they are.

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00:13:00,760 --> 00:13:02,710
- A question that we would have . . .

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00:13:02,710 --> 00:13:05,100
Say that we have a little
bit of credit card debt

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and a car payment heading
into our engagement,

317
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and into our marriage.

318
00:13:10,270 --> 00:13:12,780
So, we would love to know
if there's any other advice

319
00:13:12,780 --> 00:13:15,580
or any other thoughts
that you may have for us

320
00:13:15,580 --> 00:13:19,100
as we move into marriage together.

321
00:13:19,100 --> 00:13:21,120
- Yeah, I think, just, if there's anything

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specifically for an engaged couple

323
00:13:22,920 --> 00:13:24,250
moving into a marriage if there's any

324
00:13:24,250 --> 00:13:26,600
specific financial advice or
conversations that we could

325
00:13:26,600 --> 00:13:29,480
have on the front end, that
would be great to know.

326
00:13:29,480 --> 00:13:33,350
- Oh, engaged couples . . . 
They're just the best, right?

327
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The bliss before the reality of what

328
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they're about to walk into.

329
00:13:37,290 --> 00:13:40,830
Marriage is awesome, but it's more awesome

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when you are on the same page.

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So a couple things I would say
if you are engaged out there,

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or to this couple specifically:

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Keep your money still separate.

334
00:13:48,670 --> 00:13:51,430
Not until the day you say "I do"
do you need to combine them.

335
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So, I don't know whose
credit card debt it was,

336
00:13:53,940 --> 00:13:56,330
or whose car loan. But
you keep it separate.

337
00:13:56,330 --> 00:13:58,480
You start working the
baby steps on your own.

338
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And then the beautiful thing is,

339
00:13:59,900 --> 00:14:02,030
when you get married, then
you combine it all together.

340
00:14:02,030 --> 00:14:03,760
So, I hear a lot of couples say,

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00:14:03,760 --> 00:14:06,100
okay, well, maybe it's his car loan,

342
00:14:06,100 --> 00:14:09,160
and his credit card debt, and
she doesn't have any payments.

343
00:14:09,160 --> 00:14:11,970
Well, for her, she could just
be saving up a lot of cash.

344
00:14:11,970 --> 00:14:13,720
And then, once they get married,

345
00:14:13,720 --> 00:14:16,260
she can use some of that
money, pay off his debt,

346
00:14:16,260 --> 00:14:18,220
and together, they're moving on together.

347
00:14:18,220 --> 00:14:20,987
So again, keeping things
separate until you say,

348
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"I do," is huge.

349
00:14:22,310 --> 00:14:25,400
And also, I would say, don't
go crazy with the wedding.

350
00:14:25,400 --> 00:14:26,870
Really, it's like one of the things

351
00:14:26,870 --> 00:14:28,750
people spend so much money on.

352
00:14:28,750 --> 00:14:31,441
Yes, you want to have fun, 
you want enjoy your day,

353
00:14:31,441 --> 00:14:34,350
all of that . . . But do not go overboard,

354
00:14:34,350 --> 00:14:37,770
and definitely do not go
into debt for the wedding.

355
00:14:37,770 --> 00:14:40,154
All right, here's the next question.

356
00:14:40,154 --> 00:14:43,313
- What advice can you
give to keep us motivated

357
00:14:43,313 --> 00:14:46,220
going through our debt snowball?

358
00:14:46,220 --> 00:14:48,270
- So staying motivated
through Baby Step 2

359
00:14:48,270 --> 00:14:50,110
can be really difficult
for a lot of people

360
00:14:50,110 --> 00:14:51,560
especially if you have a lot of debt,

361
00:14:51,560 --> 00:14:53,800
and if it's things like
medical debt that you see

362
00:14:53,800 --> 00:14:55,190
that you're like, man, I can't sell it.

363
00:14:55,190 --> 00:14:57,135
Right? Like a car loan, you're like,

364
00:14:57,135 --> 00:14:58,140
"Hey, I could choose to sell the car and

365
00:14:58,140 --> 00:14:59,590
get out of that debt really quickly.

366
00:14:59,590 --> 00:15:02,020
Medical debt is something that
does seem to string along.

367
00:15:02,020 --> 00:15:04,590
But I would say have some quick wins

368
00:15:04,590 --> 00:15:07,410
within the big chunk of your medical debt.

369
00:15:07,410 --> 00:15:09,960
So, look at your medical debt
almost as a separate snowball.

370
00:15:09,960 --> 00:15:11,230
And just kind of separate it out

371
00:15:11,230 --> 00:15:12,600
and say, okay, this is what
we're about to tackle.

372
00:15:12,600 --> 00:15:14,890
Like, it's a huge mountain,
and there's so much there.

373
00:15:14,890 --> 00:15:16,800
But put some mile markers in place

374
00:15:16,800 --> 00:15:18,600
and have some celebrations throughout it

375
00:15:18,600 --> 00:15:21,760
because you want to be able
to feel those quick wins

376
00:15:21,760 --> 00:15:24,270
even when the bills are staggering

377
00:15:24,270 --> 00:15:25,970
and it seems like that
there's so much money there.

378
00:15:25,970 --> 00:15:28,380
Having those quick wins
is going to be so helpful.

379
00:15:28,380 --> 00:15:30,730
All right, coming up next
is a story of the couple

380
00:15:30,730 --> 00:15:32,540
who is actually coordinating that

381
00:15:32,540 --> 00:15:35,240
Financial Peace University
class, so here they are.

382
00:15:35,240 --> 00:15:36,990
- We had been married for 28 years.

383
00:15:36,990 --> 00:15:41,290
And we purchased a house
when we moved here with debt,

384
00:15:41,290 --> 00:15:44,840
and we decided that we wanted
to pay that debt off early.

385
00:15:44,840 --> 00:15:47,630
And based on some things that we had heard

386
00:15:47,630 --> 00:15:49,040
Dave Ramsey talk about.

387
00:15:49,040 --> 00:15:52,280
And so, we got on that road
and went down that path,

388
00:15:52,280 --> 00:15:54,860
and we paid off our house
within about 10 or 12 years

389
00:15:54,860 --> 00:15:56,320
after we moved here.

390
00:15:56,320 --> 00:15:58,470
And that just really started our process

391
00:15:58,470 --> 00:16:00,890
of wanting to be completely debt-free.

392
00:16:00,890 --> 00:16:03,010
- So, it's become, really, a way of life.

393
00:16:03,010 --> 00:16:05,640
We've put . . . All five kids
have an opportunity

394
00:16:05,640 --> 00:16:07,800
to go to college debt-free.

395
00:16:07,800 --> 00:16:10,300
We have a fund for their wedding fund,

396
00:16:10,300 --> 00:16:12,180
so when each one of
them has gotten married,

397
00:16:12,180 --> 00:16:14,760
we've been able to fund their wedding

398
00:16:14,760 --> 00:16:16,120
without going into debt.

399
00:16:16,120 --> 00:16:18,110
And it is kind of amazing to see how

400
00:16:18,110 --> 00:16:20,850
when you have the extra
money to sock away in the

401
00:16:20,850 --> 00:16:25,840
401(k) and savings, that
there's not much pressure.

402
00:16:25,840 --> 00:16:28,690
There's a lot of peace
just to know that

403
00:16:28,690 --> 00:16:30,290
we've been able to bless our children.

404
00:16:30,290 --> 00:16:33,750
And then, we'll be able to
retire with a lot of dignity.

405
00:16:33,750 --> 00:16:36,020
- And now we're just living the life

406
00:16:36,020 --> 00:16:37,990
that Dave has told us about.

407
00:16:37,990 --> 00:16:41,730
- And I would say that
we were pretty nerdy about it.

408
00:16:41,730 --> 00:16:43,480
We actually enjoy our budget.

409
00:16:43,480 --> 00:16:45,710
After doing this for 20 years,

410
00:16:45,710 --> 00:16:47,410
we've got 20 years worth of data

411
00:16:47,410 --> 00:16:50,010
of what our expenses and income is.

412
00:16:50,010 --> 00:16:51,630
So, we sit down at the first of the year.

413
00:16:51,630 --> 00:16:53,120
and do it on a big spreadsheet,

414
00:16:53,120 --> 00:16:54,960
and then we just really
touch base each month

415
00:16:54,960 --> 00:16:57,040
to make sure we're where need to be.

416
00:16:57,040 --> 00:16:58,660
But over that period of time, you know,

417
00:16:58,660 --> 00:17:02,390
we've had a car fund so
we haven't had a car debt.

418
00:17:02,390 --> 00:17:04,560
So, to be honest with you, we actually own

419
00:17:04,560 --> 00:17:06,360
two homes debt-free.

420
00:17:06,360 --> 00:17:08,720
I think we got people's
attention the first night

421
00:17:08,720 --> 00:17:10,500
when we looked at them and said,

422
00:17:10,500 --> 00:17:12,640
this works 'cause we've done it.

423
00:17:12,640 --> 00:17:13,860
And you can do it too.

424
00:17:13,860 --> 00:17:15,837
If we can do it, you can do it.

425
00:17:15,837 --> 00:17:19,890
So we enjoy seeing the success
and seeing the plan work.

426
00:17:19,890 --> 00:17:21,950
And it's really neat to sit in the class—

427
00:17:21,950 --> 00:17:24,470
and our class is maybe
unique, I don't know

428
00:17:24,470 --> 00:17:26,470
because we've got some
older folks in there.

429
00:17:26,470 --> 00:17:28,640
We've got some folks
that are just married.

430
00:17:28,640 --> 00:17:30,170
We've got some folks that are engaged.

431
00:17:30,170 --> 00:17:33,170
And it's really neat to
see the light bulbs come on,

432
00:17:33,170 --> 00:17:34,840
and to kind of pay it back a little bit,

433
00:17:34,840 --> 00:17:36,740
and to share what we've learned.

434
00:17:36,740 --> 00:17:39,110
And that's fun just to
be a part of knowing that

435
00:17:39,110 --> 00:17:41,100
we've helped them on their journey.

436
00:17:41,100 --> 00:17:42,380
- So, after hearing their stories,

437
00:17:42,380 --> 00:17:46,470
I hope you guys are ready to
go out and save that $1,000.

438
00:17:46,470 --> 00:17:48,060
I really, really do. Because again,

439
00:17:48,060 --> 00:17:50,330
it's that buffer between you and life.

440
00:17:50,330 --> 00:17:52,670
Get started on a plan
where you never have to

441
00:17:52,670 --> 00:17:54,300
worry about money again!

442
00:17:54,300 --> 00:17:56,100
Thank you guys so much for watching,

443
00:17:56,100 --> 00:17:59,220
and the Financial Peace
University class for joining me.

444
00:17:59,220 --> 00:18:00,240
They are awesome.

445
00:18:00,240 --> 00:18:02,980
And if you would like to get
anything from this episode,

446
00:18:02,980 --> 00:18:05,620
you can find the links in the show notes.

447
00:18:05,620 --> 00:18:07,530
If you don't want to miss any of my tips,

448
00:18:07,530 --> 00:18:09,650
be sure to subscribe
to my YouTube channel,

449
00:18:09,650 --> 00:18:12,210
follow me on Facebook, and my podcast.

450
00:18:12,210 --> 00:18:15,360
And as always, make sure you
take control of your money

451
00:18:15,360 --> 00:18:17,143
and create a life you love.