Smart Money Happy Hour with Rachel Cruze and George Kamel - Your Permission to Be Shamelessly Bougie (and How to Afford It)

Episode Date: October 27, 2022

We’re flying first class today, friends. Join as Rachel Cruze and George Kamel get vulnerable about their bougiest habits (on a budget), give their candid thoughts on what the rich and famous shamelessly spend and save on, and reveal their personal wealth-building plans.   In This Episode:   ·     The answer to who’s bougier—Rachel or George—plus the hard-hitting evidence ·     Why we low-key respect Celine Dion for dropping millions on this ·     The proven wealth-building plan that actually gives you permission to spend   Helpful Resources:   ·     Be entered to win a $100 Visa gift card when you take our listener survey! Click here to let us know what you think.    ·      Get your finances organized, make a plan, build up your confidence, and kick money stress out of your life for good with the EveryDollar budgeting app. Click here to get started today! ·     Do you have a Guilty As Charged question for Rachel and George? Send a DM to @rachelcruze or @georgekamel on Instagram! Be sure to type “GUILTY?” at the top of your message so we don’t miss it.   ·     Learn more about your ad choices. https://www.megaphone.fm/adchoices ·     Ramsey Solutions Privacy Policy   This Week’s Happy Hour Special:    French 75: 1 1/2 ounces gin 3/4 ounce lemon Juice 3/4 ounce simple syrup 2 ounces champagne Optional: long spiral lemon twist Steps for French 75: 1. Combine gin, lemon juice and simple syrup in a cocktail shaker. Fill shaker with ice, cover, and shake vigorously until outside of shaker is cold (about 20 seconds). 2. Strain cocktail through a strainer or slotted spoon into a glass (preferably, a large flute). Top with champagne, garnish with lemon twist if desired, and sip away! Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey guys, I'm Rachel Cruz. I'm George Camel. And this is Smart Money Happy Hour. This is the show where two friends who happen to be money experts talk about pop culture, money, and everything you wish your friends were talking about. We're going to be the friends you wish you had. That's absolutely correct. And we like to talk about our spending habits and things going on in our own lives when it comes to money.

And so today, George... Extra vulnerable. I'm nervous. We're going to get vulnerable. People may hate us after this episode. That's what makes me nervous about it. You know what? It's fine. We didn't need them anyways.

I guess not. I feel like I need people. That's why makes me a little nervous. But we're going to be honest today. And we're going to talk about our personal spending habits and what we're shamelessly boozy over and where we will be frugal. Shamelessly frugal, too. Both. And there's a weird mix.

I'm just going to put it out there. You can't put us in a bucket. I know. Try to put us in a box. And you can't. You can't. We push our way out. I'll put baby in a corner.

Don't... I'll just walk away. I got legs, man. But first, we have a new drink every episode. And so today, George, this was your pick. Well, I thought bougie, and I thought French 75. It's very bougie, to me. To me.

This is a drink I had one time at a New Year's party. And it just felt very refined. It's got a little champagne, a little bubbly, which I know you enjoy. And it usually comes in a champagne glass with a little lemon. Lemon twist. Oh, yeah, a flute. Champagne flute with a lemon twist. If that's not bougie, I don't know what is.

So we're going to tell you the recipe. We're going to give you our rating, break down the cost at the end of the episode. So stick around for that. But for now, let's get to the episode. Let's go, George. All right. Makes us, boozy and frugal.

Okay, so first of all, let's define that. What would you say is someone who's bushy? Okay, that's a good question. When I think of boozy, I think of, um, hmm, like, high class, like, uh, they don't want to like, They don't want to do the hard stuff.

Like I'm going to have other means so that I don't have to struggle. And whether it's camping, like camping came to mind, like, boozy camping is like glamping, right? Like you're just like you're not really in a tense. You're in like a little effort is made. Little effort is made. Maximum enjoyment. Yes. When boogey is happening, you're not having to do a lot.

That's a good word. Yes, that's what I would say. Whereas frugal. Well, how would you define that? Because it's different than cheap. Yes. Would you say? I don't like the word cheap because I think.

I, people who are frugal, they just really are intentional. They do the research. They're willing to get a deal. They don't always need the best of the best. Not that the thing is going to break. They can find good quality, but it doesn't have to be name brand. Not everything has to be name brand. Not everything has to be brand new.

So they're willing to make some compromises in order to have the things. And you can have both. Yes. You can be bougie and you can be frugal. That's good. So they like finding a deal. So that's the definitions here. And we have an official quiz we found on the internet,

which is very official. And we're going to take it live, Rachel. Are you ready for this? I know. We've not seen these questions. I know. Let me pull it up. Hold on.

I'm going to kick it off. Okay. Question one, what kind of water do you prefer for drinking? If you're playing at home, here's the options. Tap water is fine. Filtered water. Flavored water sometimes, sparkling water always. Oh boy.

I know my answer. I'm going to go. This is just off the top of your mind. I'm going filtered. I'm going filtered. I went sparkling water always. Oh, gosh. She's just.

Okay, oh, this is good. How much do you spend on your footwear? $50 is enough, not more than 100, not more than 200. Price doesn't matter to me. Wow. Not more than 100 for me. That was mine, okay, mine too. Okay. We're the same there. All right. Does the brand of clothes really matter to you for a few things? Not really. Of course. And it is really important. I'm going, not really. Okay. Do you repeat your clothes during the week? No, not at all. If I have. had to. It's okay for me sometimes. Interesting. Repeat, like repeat and tired outfits or like I wore the same pair of jeans? It's a big difference. Yeah, that is true because I will repeat jeans. I'm going to

let's say like obvious pairs of clothing. I'm just going to make it up. Okay. I'm going to say it's okay for me. I'm going to say if I had to. All right. I don't know what situation is like I have to. Question number five. Has anyone called you a boogey? First of all, who says a boogey? I don't know. Okay, yes, I listen to this word always, strange answer. two all the time three i wish i could hear that and four sometimes i'm gonna go sometimes i think some people would can you for sure all the time all the time i kind of feel like people do say i'm bougie that's your personal brand but this quiz is going to say otherwise i have a right have you ever clicked a picture of your food and uploaded on instagram it is part of my life yes it is a routine

sometimes and no never okay sometimes no not never is i'd be in between those i've done it before But I don't do it. I'm going sometimes. Me too, George. If it's worth it. You've done it more than me. I feel like I should go no, not ever. I'm going to say no, not never.

I'm going to say no, never, because I think I've done it maybe. Maybe three times. You've posted your meals that you make at home. Your recipes. You're posting stories about it. You're not innocent. You're not innocent. Whatever, sometimes.

Sometimes. Oh my gosh. Caught her in the act. Guilty is charged. Oh, okay. What are your weekend plans? Shopping and shopping. Brunch with friends.

chilling at home, party at the club. Who made this quiz? We need to be back in our 20s, George. We need to go back to our 20s. Now, if they mean partying at a wholesale club, I do frequent Costco. But chilling at home, final answer. Me too. We're going to get the same.

Okay. What do you spend your money on? Close food, adventure. I prefer saving money. Oh, I do prefer saving money. If the options are saving money or doing things, I will choose saving money. I need friends in my life. I'm going to say food.

I feel like we spend the most money on food. Yeah, you're right. I'm going to go food. I do like to say, but I'm willing to spend on food. Lastly, which of the following is on your wish list? A Gucci belt, the latest iPhone, Nike shoes, or I don't need a present. I don't need a present. I don't need a present.

I'm a grown man. No, George, stop that. Put the new iPhone. You a liar. George Camel. George Camel. I thought you can use my middle name. You go back and you hit the iPhone.

That is not fair. You made me put food. That was unfair. How much Gucci do you own, Rachel? Nothing. I don't think I own Gucci. All right, here we go. Where are you at?

Oh, you got complete bougie. I'm a little boozy. So based on pure science from pro-proffs.com. Go read your description. You're a complete bougie from water to clothing. You need everything to be branded. You love your luxurious life and want to have everything at its best, Whether it's food, trend, wardrobe, you want all that to be perfect.

I've never hated myself more. So happy right now. Okay, I cannot wait for my right. It's because you made me choose iPhone. Well, George, because that's the truth. I didn't make you choose. The truth will set you free. Okay, I'm a little boogey.

So you are a boogey, but not for everything. Here are a few things. I wish you are brand conscious. Other than that, anything nice will work for you. It does not mean you are okay with anything. Still, you have your preferences and choices. This is me. Literally me.

Well done. Propros.com. You'll never live this down. We all know you're busier than me. Actually, I think I would disagree. Okay, so tell me. I want to know for you, though. For real, where are you, where are you bougie?

Give me a couple. Give me an example. Because I am known for being very frugal in some areas. I know. You are? Yes, I know. The things I'm willing to spend money on, I realize mostly involved manual labor.

And so, first of all, a house cleaner. We just recently started getting someone, you know, like once a month to do like the deep cleaning of like the shower grout and stuff. And it's a game changer because it's something that's always on our to do list and that we never feel like doing. And we just like, all right, we're going to have someone come by. And it's not that much. I mean, it's not like $1,000. You know, it's probably a little over $100 to get a nice deep clean. And it makes us feel great when we get home.

I love it. Not arguing that. Okay, good. What's yours? Okay. So something I did it probably for the first time. I'm going to say probably six years ago, and it kind of changed my life. And I did it.

I'm telling you what it is. I'm going to drop the bomb here a second. But I'm giving you the lead in. Now, you're giving us a disclaimer. There's a difference. I might be disclaiming my bouginess. And then I was like, I'm going to sporadically do it. And now I'm going to stay confidently in my boogeiness.

It is consistent. I Valley Park at the airport. Whoa. I do. And it is more expensive than short-term, long-term parking. But for me, it is so worth it. Because when I travel, especially if it's like, a 24-hour trip. I'm like, oh my gosh, I just can fly in and out. I'm right there. It's so much

faster. It's efficient. And now when we have our kids with us, we definitely Valley Park because we all of our bags, all the kids, and you're just right there next to the door. So it's worth it. It is. So we Valley Park at the airport. I feel like they wouldn't let me. I'd roll up and they'd just be like, no, sorry. And I'm like, okay, no, it's fine. We had the minivan last time. I'll go to parking on C. Well, then everyone pulls in with their escalades. And I was like, there's my Odyssey. Over there, I felt a little, a little car shame. I'll get there. Okay, I got another one for you.

Lawn care and mowing. I am famously known for having never mowed a lawn in my life. I know. I've learned that in a few podcasts again. Yeah, living in the Northeast. And so I, we pay a guy to mow the lawn. So not grass in the northeast? Tell me about that.

We didn't have, yeah, it was like a rocky backyard. Like, there wasn't much to mow. And so then living in apartments and having HOA's, like, it just kind of was all covered. And now for the first time, it's on us. And we're like, nope. And watching them do it, I'm like, no, they get the zero-turn mower. They got the guy doing the edging, the blowing. and I was like, this took them 25 minutes with high-end equipment, it would take me three hours.

That's right. And it looks great. It really does. It does. They know what they're doing. Okay. So my boozy is grocery delivery. I started this during COVID, and I've never gone back, George. And I do Instacart. It's the app. It's the app. It's the membership. You pay for the fee. You pay for the fee. Or no, actually, you get free, technically free service delivery. If it's over $35, whatever. You tip on top of it. I mean, yes. So there are for sure. extra cost in it. But it is, for me, it's worth it. And if I'm at work, if I'm working all day, I'm like, gosh, I just go through, hit what I need. And it's there. That don't have to stop at the store. So call me boozy, but I get my grocery delivered. That was like a free ad for Instagram, hashtag not sponsored. Yes, and that's the other great thing. So it's not even the

grocery store. The Costco delivery, it, oh. Costco is very stressful. It does it make me sleepy. I walk in and I'm like, oh, I just kind of get tired. Yeah. Home Depot does that to me, too. How often are you in a Home Depot? Winston dragging you over there for the weekend project? You act like you're there all the time. All right, I got one more for you. Dog daycare. This is one. Again, it's bougie because it's unnecessary,

but it's so great to get the dog's energy out and know they're having a great time all day. They go to a friend's house in the neighborhood, and they have a great time, and we get pictures of them. Oh, that sounds a little bit. That's like a nanny share. Yes. It's not like, it's cheaper than your traditional daycare.

I think of like an actual dog park. Like 40 dogs in a backyard somewhere. At a facility? That's like four dog parking. This is bougier because it's only a select. It's like a private school. There's like there's seven kids to every teacher. A lot of attention per dog.

Everything's good. It's great. Okay. So my other boogey one would be on the same lines. Okay. We got a new dog. We had a lab for, gosh, nine years and she passed away in the fall. Terrible.

Dr. Doctor, man. They really do. They take a piece of your heart. They are part of your family. It was terrible. But anyways, we got a new dog. and we sent her, I say we, I'm going to say my husband

definitely was the catalyst for this. We sent her off for like five weeks. Whoa. To like a special dog training? Yes. And it's, I know. And George, and we are, you still have to be consistent when they get home.

Like they're not done for life. Like you have to, you know, keep it consistent. But she's the best dog. June, little working, Cocker Spaniel and precious thing. And she's so good. She's a working woman.

She's a working Cocker's Panker's Panker's. But for what those trainings like cost, it better come home and make me coffee. Like that thing better be opening doors. So for some people may not be worth it, but for us to have a dog that actually listens and obeys and it's everything. Wow. I'm getting alone secure. Can we move on? Can we move on through the frugleness?

This is the other side of the coin. Yeah, let's go on our side. You've heard everything we're bougie on. There's things that we are unwilling to spend money on. And for me, when eating out, this is a big one, generally speaking, I skip all apps and drinks. No. And I get water. No.

And it gets worse. George, I can't. Sometimes I will split an entree with Whitney, my spouse. I wanted to take a sip of my French 79, and I can't. Sure. You can change the number. It's fine. It's just offensive to French people.

I said the wrong number. Yes, the French 79. We've changed it. It's got four extra numbers now. Wow. I'm sorry, it was delicious. Okay. So, Rachel, on top of skipping apps, drinks, sticking in water, splitting an entree,

will sometimes also do takeout. Sure. So, like, we could split, like, one pad tie for takeout, and it's like 12 or 13 bucks. Okay, now I can get on board with that. You know? Yeah. Hey, I saw an Instagram reel or something, and it was like when you go home and your parents are those parents.

And it says, like, just gets water and skips appetizers, and it's like the sad music. And she, like, pans the table. And I've thought, I feel terrible for her. So your future kids, George, I just am going to feel bad for them. It's fine. Tell them to go out with Aunt Rachel, and I'm all about the drinks and apps. It's my favorite thing. I just think a lot of the times are not worth it.

Really? For the experience, though? What experience? I feel like apps are where restaurants make all their money. The margin on apps must be insane because it's like $14 and you get like four little things and you're like that. Well, that wasn't worth it. I know. It's good.

Hey, I'm going to applaud you for the frugalness. You know where I'm frugal? Yeah. And I am not booed. in here is jewelry and clothing. Oh. I'm like, I can go Amazon all day. I don't need expensive stuff.

I really don't. Like, I don't have a, I don't have like a brand that I'm like, ooh, I need that dress. I love the Real Housewives. So I watch it. And they, you know, obviously they live in Beverly Hills. So, like, they're in a little bit of a different situation than us. But I'm like, I just don't, I'm like, I'm like, they're all about the designer.

I don't know. It's just not my thing. A purse. Maybe I can get it. I have a nice purse or two. You got like a Louie. and now it's very obvious that it's a luxury purse. Yes, but the clothes, like jeans, tops, dresses, shoes, earrings, all that.

I just don't need nice stuff, so I can go super cheap on that stuff. I'm with you on that. Okay, here's one for you. I buy furniture used off Facebook Marketplace oftentimes. Use furniture, eh? Yeah. Sitting on a couch that all Billy said off before. It's not like a guy's dorm room couch.

I'm talking like West Elm has an absurd price that I'm going to. unwilling to pay, and I found the exact one that's in great condition that I'm saving hundreds of dollars on. So that we did that, and it was great. Now, not for everything. Sometimes it's hard to find it, you know, use. Are there certain, like, an end table I could get on board with, but a couch? I would not buy a used couch. Okay, there we go. So now we're getting there. I draw the line at couches. You have a line drawn somewhere. I have trust issues with used couches. That's what I was thinking. I was saying, oh, Billy, sit on that couch. No thanks. Little Georgians. But I have saved a lot of money by going to Facebook marketplace for things.

That is fair. I can get on board with that for sure. Even like kids, like when we have to, like we changed out of Caroline's crib to like a big girl bed. And I looked on, yes, Facebook marketplace to be like is there like someone selling their toddler bed? Like the headboard. Yeah, yeah, yeah, that's great. Okay. For me. And I'll disclaim it a little bit because we do live in a great area of Nashville. But we are public school people. Our kids go to public school. I won't pay for private school. And I grew up in the public school. So did Winston. And as of today, I will never say as a parent, I will never, because I was always that parent, I will never let my kids, X, Y, Z, and my kids probably done all the things that I said I never would do. But yeah, as of now, we don't do private school. Wow. So, Cruz kids. Yeah, that's a big values thing for people where they go, I'm going to send them to private school, even if it takes my retirement. I know, I know. And it's not bad.

Yeah. And if people want to do that, that's great. But that's where I'm frugal. I just can't spit, especially where we live. We just have great public schools. We pay taxes so that school is free. I want to enjoy the fruits of my labor. That is right.

So public school all the way. So the keys to all of this is everyone's life is different, and it's fine, that it differs person to person. We all have different values, things we're willing to spend money on, things we're not going to spend money on. And if you have a spouse, sometimes this can get a little contentious because I think some things my wife spends money on is insane, and she thinks the same about me. Yes.

So it's be hard. How do you balance that? Like when it comes to budgeting and you've got kind of a nerd, you've got free spirits. How would you coach someone on that? Yeah, for us, we always have like our big money goal. Like, what's the thing we're working towards? So we know every money, all the money we spend is taking away to getting to that goal faster, right? So like, whatever the thing is.

So we always kind of gauge it in that way. So there's like, especially if something is a small dollar amount, that's where I'm like, oh yeah, that's an easy one to justify for me. And if it's in the budget, you have the money, you know, and you pay for the lawn service or whatever. the thing is, and you could outweigh what the time and effort would be to actually do the thing versus having someone else do it if it's a service, then I'm like, gosh, the time, the time investment is a big thing too. So we always talk through that. So those are our big things. Is it taking away from our big financial goal and we're not getting there fast enough?

And is our time, do we get our time back? Because for us, the commodity is just big. Yeah. Our friend Dr. John Deloney's been talking about that. how, like, as you build wealth, you're trying to buy back your time because it's the most precious resource. You can always get more money. You can't get more time back. I know. So the convenience thing is big.

Yeah, totally, totally. And on top of that, what I've heard is have a shared goal. Make sure you're on track for the shared goal. But also part of the budget is it gives you some freedom because Rachel has her blow money. Winston has his fund money. And there's no judgment. If Rachel wants to go get her nails done, it was in the budget. There's no fights.

It's permission to spend. Yes. And when you agree on that on the front end, Oh, it makes the month go so much smoother. So weirdly, I think budgeting helps you avoid a lot of fights. Oh, I would say so for sure. Yes. People think it's going to be restrictive.

Because, like, I would say it sets up a lifestyle, a money habit where you have a plan. So there's nothing in question. Like you just, you ride the plan out and it works, right? So, yeah, so there's times to be boozy, times be frugal. But there's other people out there that are making a little bit more. money than us George. The big celebs out there. The old celebs.

So name off a couple of the boozy celebs purchases. Okay, this is very interesting. Daniel Ratcliffe, Mr. Harry Potter, net worth of $110 million. That's a lot of money. Well, he spent $17,000 on a custom-made

mattress. And I got to say, 17,000. You know, that's a lot of money. But a luxury mattress for a normal person is like $3,000. Yeah. So, like, okay, that's, you know,

five times. And he has, who knows, probably a thousand times the net worth of most people. That's right. All right. The other boogey one, I'm going to call out Celine Dion. Love her. I love Celine.

I mean, the music, I just, that was my first concert I ever went to. Wow. So her net worth, get this, is $800 million. That's a lot of money. $800 million. And she bought a $2 million humidifier. Wow. But for an $800 million net worth,

And if your career, how you make your money is singing, right? Oh, I didn't think about that. Oh, yeah, George. So I'm all about it, Celine. I was like, why does she want her house to feel like a jungle? Like, what's the – but it makes sense. It's all about the voice. I know.

And what this all comes down to is ratios. So $2 million seems absurd. But to me, that's like buying a biscuit. It's like, okay, whatever. For $800 million, yeah, for sure. So it's frustrating as a normal person because it's not relatable. But really all this comes down to is living within your means. And as long as you're not going into debt for it, you're doing it for the right reasons, you're not trying to impress.

She's not trying to impress us with her $2 million humidifier. No, she doesn't, she doesn't care. Her greatest asset, her voice. Absolutely. But I also love that there's some frugal celebs out there. LeBron James is worth over $1 billion. With a B. Yep, take that in.

So he spends a million dollars on his body every year. So personal trainers. Personal chef, I would say. Yeah, all the things. But he still will bring his own snacks from home to the games, which I love. He hates paying for cell phone data, so he will get Wi-Fi wherever he can. And he still has Pandora with ads. With the ads?

He still doesn't pay for Pandora. If I was Pandora, I would just give him the premium as like, come on, LeBron. That is so funny to me. I love it. Wow. And Warren Buffett, who, you know, he's worth over $100 billion, one of the wealthiest people alive. He still lives in Nebraska in a five-bed, two-and-a-half-bath house. He bought in 1958 for $32,000. That's pretty impressive.

The man could have upgraded by now, but he's content. $100 billion. That hurts my brain. Isn't that funny? And it's the stuff that you just assume people upgrade in life. Like if you were given $100 billion, like you'd be like car, house, like the big stuff, right? I might as well. And I just love that he didn't.

So, again, being boozy, it's not right or wrong. Being frugal, not being right or wrong, but it's all about balance. And you can have both in your life. You can. But we just want to make sure that you have the money, right, to do the boozy stuff. You want to pay cash for it like you were saying earlier. Let it be in the budget. Have control over that stuff.

But then also being frugal, you can do too. Because I think people also think, well, if I do well with money, I'm never, I'm not going to be frugal anymore. I don't need to be. I'm never using a coupon again. Yeah. I'm like, no, you still tap into that part of life because it's still like, why would you not, right? Absolutely. We're not head and shoulders over that stuff.

No, and there's a lot of wealthy people who keep their wealth by being super intentional. and by using coupons and promo codes and researching before they make a purchase. And they're unwilling to buy things to impress people a lot of the times, and that can help you keep that wealth. Yes. And so frugal doesn't mean never spending money. It just means there's a level of intentionality that goes beyond just impulsively paying retail price for everything. Yeah. Okay.

So, George, so my thing in life is I'm like, I just want to enjoy my life, right? So in order to enjoy my life, for me, that means, right, sometimes spending on a great dinner out with a drink at a nap. Sorry. No, you disagree. But it's part of it. I'll share. I'll partake in the app if you buy. And so that's part of like creating a life that I love and that I'm enjoying. But also if I'm spending stuff, right, if I'm going for me personally, going out and getting the Gucci stuff and I go spend all the bouginess on all the sparkling water, all the things that I feel like I need, quote unquote, to live a certain lifestyle. To me, that like takes away from the joy of my life, either because I'm stretching my. budget too far and I'm spending money I shouldn't and so it's going to stress me out I don't want

that stress and I wonder too how much of it is for other people right so much of our purchases is the affirmation that we get from other people the um you know whether it's the oh I love that it's the affirmations it's the inclusion in a certain group all the things we all want to look like we're successful and winning in life yeah so for me I'm like I want to enjoy my life so that means I'm going to have both I'm going to spend money where I want to and enjoy but also if I spend too and I'm, for me, boogey and spending money all the time, it's going to add more stress to my life. Does that make sense? Oh, yeah.

So that's how I feel too. So there's that balance. Well, and once you get on a money plan and you're doing a budget and you're following what we call, you know, those seven Ramsey baby steps, which you and I have both followed, it really does free you up. I don't feel bad about spending money anymore. And I'm doing it for the right reasons. I'm not trying to impress anyone. I'm living below my means. I'm doing it all with cash.

I'm not going into debt. And so those are some great parameters to help you not only do it for the right reasons. but also to have the margin to maybe upgrade in stuff and enjoy your life and not have to be so penny pinching. Yes, the margin. That's what gives you sleep at night. Oh, and so that piece is what we want for everyone, right? Again, enjoying your life at the end of the day, having peace and sleeping well and not having stress and anxiety, that's worth so much more. So how do we get there? So yeah, we talked about the Ramsey Baby Steps. Those of you that are not familiar with that, it's seven steps to help you really gain this piece, have financial. freedom actually have control over your money. So quickly, baby step one is to get a starter, emergency funds. Okay. So the very first thing you want to do is get a thousand dollars in the bank.

For some of you, you're like, oh, no big deal. Others of you're like, oh my gosh, $1,000. Regardless of where you're at, that needs to be your number one goal, $1,000. Yes. Baby step two, you're paying off all your consumer debt from smallest to largest balance, ignoring the interest rate with what we call the debt snowball, meaning we're attacking the smallest balance with a vengeance, then attacking the next biggest, the next biggest, and that creates some amazing momentum. And while you're getting out of debt, you're not being boozy people.

Nope. This is sacrifice. So you're cutting the lawn service, cutting the house service, cutting the valet parking at the airport. No apps. No drinks. You're not eating out for a short period of time.

You're cutting all the boogeiness and you're paying off debt. And then you're going to move on to babysept three. So you're going to bump up that starter emergency fund of $1,000 to $6 months of expenses. And you do babysaps one, two, and three separately. And then you do four, five, and six together. Yes.

So now you have no payments. and a pile of money in the bank for emergencies. Now you can move on to investing 15% of your income into retirement, then Baby Step 5, saving for your kids' college, and then Baby Step 6, paying off your house early. And me and my wife did that last December, Rachel. And it was an amazing feeling. Incredible.

And then once your house is paid off, you're funding retirement, you're giving generously, and then you're on to Baby Step 7, George, cheers me. Baby Step 7. Build wealth and become extremely generous. So it's a great plan. Again, it gives you margin peace. You get to be boogey where you want, frugal at other times, and it's awesome. That's what it's all about.

It's great, George. So good. All right. You know what time it is, Rachel. Guilty as charged. This is where a producer gives us a new guilty as charged question every single week. And if we've done it, we've got to take a drink and tell the story. Okay, Lindsay, what do we got for this episode?

All right. Allison from Twitter asked, have you ever purchased two identical items because you completely forgot that you had purchased the first one, and then you later on found it. If so, what was it? Oh, boy. Yeah, I've probably done this. You know where I do this, George? Where?

Clothing? My kitchen utensils. I misplace all the time. So, like, we have a meat, like to do ground beef. It's like a... Like it grinds it up? Yep. Okay.

I have two of those, because I forgot I had one. Classic. Lots of wooden spoons. Like I look in my utensil drawer and I'm like, oh, geez, I already had that or spices. Like I do that a lot in the kitchen for me. Yeah, that happens. Forgetful. How are you?

I've done it with books. I have like, I need to get this book. And then I'm like, I have this book. I've been here before. And then my wife is like, you're never going to read that book. And I will read that book. And then a year later, the books on the shelf. I need that book.

I need that book. And I purchased the book again. And I still haven't read the book. And she was right. So Whitney, if you're listening, I'm sorry. We are guilty. All right. And guess all I need a drink to that?

I know, cheers. It is good, which it's time to talk about the drink. What would you rate this, French 75? Oh, man, I'm going 10 out of 10. I loved it. It's very zippy and zangy. Here's what is in it. If you're curious, it's got gin.

It's got lemon juice. It's got simple syrup and champagne. Very simple, but very tasteful. $2.40 per glass, depending on the type of gin you use. And if you make your own simple syrup, which I'd recommend, because it's super easy and saves you money. if you're being frugal. That's right. So make sure to check out the recipe in the show notes

and let us know on social if you have tried it. And we would know all of your thoughts on maybe a future drink we should have in an episode. Hotels, cocktails. Yeah, or a future guilty as charged question. We'd love to hear from you guys. We really have. We've gotten some great messages on Twitter and Instagram

and Facebook. And people love it. If you want to follow us on social, you can do that at Rachel Cruz, at George Campbell. Make sure to click the subscribe and follow button so you don't miss another episode. And if the spirit leads, leave a review. And if you have a friend who needs to hear this,

make sure to send the episode, share the love, the more downloads, more people can understand bouginess and frugleness. I love it. It's both great. George, it's been fun. That does it. On this episode of Smart Money Happy Hour.