George Kamel - I Ask Strangers If They’re Hungover…Financially

Episode Date: December 27, 2023

It’s time some of us had a financial reality check about what just went down this Christmas. So I’m asking everyday people if their wallet is suffering from a “holiday hangover” and finding out what they’re going to do about it. Links: Learn more about the best way to pay off debt (that actually works)   Preorder George Kamel’s new book, Breaking Free From Broke, and get more than $100 in FREE bonus items. EveryDollar budget deal: I love a good deal, and when you sign up using this link, I’ll hook you up with a 14-day free trial and $15 off your first year of the premium version of EveryDollar. Learn more about your ad choices. Visit megaphone.fm/adchoices

Not to disturb your eggnog-induced coma, but it's time some of you had a little financial reality check regarding what just went down this holiday season. We're broke! I mean, they say it's the most wonderful time of the year. But after the lights come down, the tree goes into storage, all you have is a wallet with a holiday hangover and no money left to your name. Now, I'd be willing to bet my new cashmere sweater

that many of you are in stage three of the holiday hangover. Stage one, dry mouth. Stage two, nausea. Stage three, regret. Stage four, sleep disturbances, and stage five, selling anything and everything on Facebook marketplace. But listen, I suspect you're not alone here. So today, I'm asking everyday people just like you how the hangover is going for them this year.

And before I hit the streets, I need you to hit something. That like and subscribe button. And don't forget to share it with everyone who definitely re-gifted you that Yankee canel this year. They'll know what it means. I just bought this candle. Wow! Let's take it to the streets. Can we talk about Christmas?

Absolutely. Okay, are you financially prepared for Christmas? Am I ever? I've been trying to save up, but I don't know. I feel like... That flies in the face of the holidays, which is all about spending. Exactly. I was.

I had a plan. I'm not sticking to it as closely as I thought I would. Yes, I call it my boot money, and I just put money in my boots. A literal boot? Yeah, some of my boots for throughout the year. I'll just go in there. Are you trying to hide it from people? No, just myself.

don't use that money. But you don't use those boots either. Yeah, well, then by the time it's time to wear them, it's around Christmas. That's a lovely little tradition. Do you have a certain budget? Like, walk us through your planning strategy here. I don't because, like, inflation. Okay, did you set a certain budget? We kind of wing it. She just looks like, I got money, we're fine. You know what I just got the vibe. You're very classy. That's why I married her. Very confident. There we go. I respect that. Can you tell us what the budget was? I kind of do it per person. I have a list of who I'm shopping for and then kind of rough guests in it. So none of this was shopping for you?

Uh. How much are you going to spend on gifts this year? Do you think? Not much. See, I did a lot of my shopping in Tokyo, actually. That's a baller flex. Yeah. So, like, a lot of it was splurging out there.

I was going to guess. Like, you probably do shopping in Tokyo. What's the, like, most, could you remember a number? Like, I, this Christmas, I'm probably going to drop two grand on gifts alone. 15. 15 grand. What's the biggest item?

And who was it for? It was for three wives ago. No, I'm kidding you. It's like, this just got really juicy. You really had me go in there. So you didn't really make a Christmas budget. No. You didn't really stick to it.

No. What are we doing here? I don't know. Help me. Help me. Help me. How are we funding all of this? Are we swiping the credit card?

What's the plan? Swiping the credit card. I got to get those airline miles to go back to Florida. Oh, my gosh. So I'm doing it smart. That's what I'm telling myself. Well, okay. Are you going to get enough airline miles from spending $350?

No. How much do you need to spend? I don't know. I have not calculated the points yet. What if it's like $10,000 to get the flight to Sarasota? Oh, geez. I hope not. I would be doing the math.

These credit card companies are going to win. I will destroy you. Oh, and then I was talking about after pay, which is this thing. That scares me because I'm like, I wanted to pay off like right there and then so I know, like, what I'm getting into. Why buy now pay later when you can buy now pay now? Facts. And it's not living rent free in your head in your bank account. Yeah.

That's how I feel about buy now pay later. I try and use cash as much as I can. Try, but what happens if you fail? Do you use a credit card then? I use a debit card. Oh, do you even own a credit card? I do not. No, I know Dave.

You know Dave? I know all about Dave. That's amazing. Dave would be proud. Dave, we got a real one over here. I'm very proud of you. Way to go. What's something you wish you'd done differently this holiday season

when it comes to your finances? I don't know. I feel pretty good about it. No regrets. No regrets. You're pretty intentional. You don't seem like an impulsive guy. Yeah.

Okay. I'm not out there shopping until I drop. What's something you wish you would have done differently when it comes to holiday spending? I mean, the budget is the biggest thing. Like, I mean, this year is probably the first time that I've actually stuck to a budget. What do you use for budgeting? Do you use, like, a pen and paper, an Excel spreadsheet, a note app on your phone? What do you got?

I use mint.com. Oh, not for long. They're shutting down, man. Are they shutting down? Yeah, I hate to be the one to tell you this, but you got to find a new budget app. Can I help you out with one? Absolutely.

It's called Every dollar. Every dollar. Go download it in the app store. It's a game changer. It's what I use. It's the best budgeting app out there. Can I be honest with you? Yeah, go ahead.

Mint is kind of mid. That's my new tagline for Mint. If I gave you a free budgeting app, would you download it? I would download that. It's called every dollar. We're getting that. Download it in the app store. What are some money goals you have for this upcoming year?

To pay off my student loans, for sure. What happened this year? Probably not end of this year, but I'm hoping by mid-next year. Give me one word to describe your finances right now. Freedom. Ooh, I like that. Yeah. Stable.

I'll take stable every day. Good. It's a messy cocktail, probably not mixed correctly. He's already had a few, I think. Say stable. Okay. I'll take stable. If there's one thing you could tell the people out there, what you want for Christmas.

What do you want? Dave Ramsey's watching, he wants to give you something. Hmm. I'm trying to think. World peace. There it is. That is priceless. And we can't buy it for you.

So that's a good thing. Exactly. Now it's clear that for a lot of us, the Christmas hangover, is as much a part of the holiday season as candy canes, Michael Boubley, and inappropriate comments from your great-uncle Wayne. And it makes sense why.

I mean, last year, the National Retail Federation Survey showed that holiday shoppers planned to spend $998 on everything from presents and pies to tinsel and trees. And that's all well and good when it's a planned expense you can cash flow. But all that holly jolly can do a lot of damage when you put the whole Christmas shebang on your credit card.

I mean, let's say you got carried away and put $998 of Christmas spending on a credit card with an interest rate of 17%. And you decide to pay only the minimum payment of $25 each month because it just seems easier that way and gives you less stress. Well, guess what? It would take you five years to pay off your balance. And by the time it's all said and done, your $998 worth of Christmas gifts you bought $5.

years ago would cost you $1,481.55 cents thanks to interest. Ouchy. I don't have enough money for chicken nugget. That's an extra 483 bucks you spent, which amounts to about 50% stupid tax for just one year of Christmas spending. Now imagine how quickly the dollar signs would stack up if you funded every single Christmas that way. But listen, if that situation sounds eerily familiar, you can still cure the hangover.

You just need a plan and probably some Advil. First, you need to face reality and get clear on where you're at. Don't just ignore the problem like you do great Uncle Wayne. Look at your credit card statements, your bank accounts, and tally up the damage. Looking in that financial mirror is key here. Then make a plan for what you're going to do about it. Now, if your plan includes getting out of debt, I've got a whole video on the best way to do that, and I will link it below. And I suggest for the next month or two, follow a super strict budget cutting out all non-essential spending,

which turns out is most of your spending. And throw all of that money towards your debt, even if you have to sell things and work extra. And lastly, take a cue from Old Scrooge and don't repeat the mistakes of Christmas past. Pay down your debt, stay out of debt, make budgeting a regular practice next year, and when you're able, go ahead and start saving for the next Christmas with a sinking fund. There's no such thing as too early. You got to plan ahead. And if you want to make 2024 your year to finally get ahead with money,

have I got just a book for you? You can check out my new book, Breaking Free from Broke, the ultimate guide to more money and less stress, and it shows the plan that I use to go from Broke to Millionaire and have less stress and more money than ever. I'll drop a link below if you want to get a copy. All right, I hope this video is helpful for you. Make sure to share it with a friend

who tends to get a little trigger happy around the holidays with that Add to Cart button. As always, thanks for watching. We'll see you next time.