The Rachel Cruze Show - 3 Major Money Villains Hiding in Plain Sight

Starting point is 00:00:05 So my new favorite movie, like most of America, or the world, is wicked right now. Now, when I saw it for the first time, there was a line that stood out to me immediately, and I think it relates to money. So today, we're going to talk about that, and we're going to talk about how you can overcome three villains of personal finance. And before we start, make sure to subscribe to this channel, like this video, and share this with a friend. Okay, so, like I mentioned, the line from wicked, when Madam Marble says, Not everyone has the same villain. It got me thinking. Here's the deal, y'all.

Starting point is 00:00:40 You kind of rally together if you're kind of going after the same villain, right? There's a villain out there, and we're all going after that villain. And we see this, we see this in politics. Like, we see this in different parts of our lives. But when we think about money, I never like to make the villain a person necessarily, right? Yes, are there scammers out there. Are there people that are villains in that world? Sure.

Starting point is 00:01:01 But there are industries out there, like billion-dollar industries out there. that are coming to take our money. Like, their whole goal is to make money off of us. And so I was thinking, what if we all rallied around? And we're like, we're going after a villain. That industry, that villain out there, if we can all rally around that, that is when we get on the same page. And we actually start talking about, hey, how do we ask questions better when it comes

Starting point is 00:01:25 to our money? Hey, should I be a little skeptical here or there? But when you start thinking about an industry-wide villain, I don't know, that it was kind of fun. So I want to talk about the three villains that I really do believe. we should avoid when it comes to the world of financial industries. Number one, the credit card industry. Yeah, I'm calling them a villain. I am. It's no secret that I'm against living with debt in general. But there are two ways specifically, two reasons why I think the credit card industry

Starting point is 00:01:53 is a villain. Number one, they will give a credit card to anyone. They really don't vet you. They don't really consider your ability to manage debts. You know, they're not looking out for your long-term good. They are really there to have you maintain debt for your entire life and make payments and then possibly give cards to people that can't make a full payment every month. So now they're paying interest and they're stuck in the cycle of paycheck to paycheck living because they're living off their credit card. And what ends up happening is that those people end up very stressed, very overwhelmed and trying really hard to get out of it, but it's very, very difficult because, again, the credit card companies find a way to feed a system to you.

Starting point is 00:02:34 over and over again that eventually causes suffering. I mean, it really does. And so I don't like the idea that they just give it to anyone because they're not looking out for our best interest. Then also, they trick you into thinking that you are winning, right? With all the rewards and the miles and the points and the perks and all of it, it feels like you are winning when the truth is you spend 12 to 18 percent more when you're using a credit card versus cash. And all these rewards in the world, you know, don't take away. way the fact that you are losing money when you spend this way. And so there is something about continuing to live in credit card debt. And I would say this, even if you pay it off every month,

Starting point is 00:03:13 what you're doing, though, is you are spending money in the presence without emotionally realizing it. And then at the end of the month, having to pay for your past. And the way you live your life like that with money instead of in the present, like with a debit card, right, that would be the solution. You're using a debit card. It does everything a credit card can do except get you into debt. But when you're using a debit card, you are in the moment. And so what that changes in your psychology and in the way you handle money is massive. But again, they make you feel like you are winning. So those are the ways that I'm like, yeah, I just really think that they are villains in our world today. And listen, a debit card is just as safe as a credit card. And there

Starting point is 00:03:52 are companies out there that you can still get some perks while using a debit card. Target's debit card, shout out to them. Even Southrest's rewards, they have great rewards program if you fly them consistently. Without a credit card, you still get points. You can still get free flight. So there are systems out there that are great when it comes to points. I'm not against that. But I am against this idea of not spending your own money

Starting point is 00:04:13 because you end up spending more in order to get those points. The second villain out there I'm going to say is the student loan industry. I think that there are some sweet 18-year-olds out there that have signed a dotted line and taken out debt, not realizing emotionally what they are doing. And the student loan industry, they go and they manipulate, I really do believe that, into believing that your life is going to be so much better, and they hand over tens of thousands, if not hundreds of thousands of dollars to 18-year-olds to make decisions. And that amount of debt is going to follow them in the future. So these two main myths that people are taught is number one.

Starting point is 00:04:50 If you don't go to college, you will not win professionally. That's what is kind of told out there. I think that we're now at a point where we're thinking differently about college. And again, I'm not against higher education at all. I went to college. I'm saving up for my kids to go to college. I think there's an affordable way to do it, a smart way to do it by staying in state, going to community college, all of that.

Starting point is 00:05:09 So I'm not against higher ed. But I am against this lie to believe that if you don't go to higher ed, then you're not going to be successful because we are seeing more and more people out there, whether it's within the trades, whether it's within real estate, whether it's within entrepreneurship, people starting businesses like never before. Like people are making an incredible living and doing incredible things without higher ed. And so it is possible to win without that. The second myth is that they say student loans are an investment in your future.

Starting point is 00:05:35 And the best way to think beyond 22 is to start your future path in college, even if that means taking on a ton of debt. And again, you are 18 when you are doing most of this decision making. You are. And this idea that if you get this degree, again, this is an investment that's going to take you into the future, it's just not as true anymore as it used to be. Yes, it is great to have higher education. Don't hear me say that. It's not. But this idea that it is like slotted that it's all going to work out and it's all going to be okay is just not the fact. And again, we are seeing this more and more, you know, students are graduating. They're getting into the job market and being like, oh my gosh, I'm getting paid what starting out? This is the debt that I took on to get this degree and it's not ROIing.

Starting point is 00:06:20 There's no digging into these subjects for some of these students. And then they're stuck with tens of thousands, hundreds of thousands of dollars of student loan debt. So I do not like that. like, don't like the student loan industry. And there was a whole thing about canceling student loan debt, right? If people were thinking of it's that terrible, then why are we still supporting an industry that is continuing to put the future generations deeper into debt? So there is a solution. Again, being smart about college education, go to a community college, right? Go to an in-state school. There are still scholarships and grants out there. Take a gap, and work and save up some money and pay your way through. Like, there are ways to do this that don't entail going.

Starting point is 00:06:58 to an expensive out-of-state private college, right, and getting a degree in English, and that being your life trying to pay off that debt going forward. So you can make different decisions. And our documentary Borrowed Future is incredible because we talk about practical alternatives, and this really lays out the problem that the student loan industry, we believe, is impacting our culture. So I'll put that link of that documentary in the description, so make sure to check that out. All right, before I share our third and final financial villain, I do want to tell you about one of our sponsors, Delete Me. So for 115 million of us, data breaches mean that our info is just out there for anyone to find.

Starting point is 00:07:35 And this is like our names, addresses, phone numbers, banks, I mean, so much more. And that is why I love and use Delete Me, because they find and remove your information from hundreds of data broker websites that buy, sell, and trade your personal data. So take control of your online privacy with Delete Me. Individual Delete Me plans start as low as $9 a month. So sign up today at join the late me.com slash Rachel for 20% off or click the link in the description. All right. The third and final villain, I'm going to say is the car industry.

Starting point is 00:08:08 Now, the car industry villain is primarily emotional because we do have to have cars and transportation, right, in our world today. So I'm not against cars. But there are two ways that they really do manipulate our emotions. Number one, is that a fear and necessity. So they really do prey on this desire to be safe, wanting reliable, transportation, all of that. And that is all good. Like, yes, we all want safe cars. But that doesn't mean that the only safe car is a brand new car. So there are reliable safe cars that can exist. I'm going to say in any budget, if you have $5,000, which is a lot of money, I understand that,

Starting point is 00:08:44 but if you save up that, you from that point on, you can find some great cars. They're not going to last you forever. I'm not saying that to go buy a $5,000 car. It may last 18 months. But you continue to save on the side, sell that, put that money together, step up in car, right? But this idea that you have to have a brand new car, because that's the only safe car out there, is just not true. Number two is ego. They really do prey on our egos when it comes to cars. There's this level of convincing us that we need a nice car for this level of status or belonging. And it's just like, oh, yeah, I feel great because I'm driving a nice car and it says something about me. And that is where we've gotten to this point that it's like, oh, I can't drive like an old car or like a not great car because I won't look successful or whatever the lie is. Our ego plays into this so much. That's why the leasing industry is so fascinating with cars because you kind of get this temporary fix of like, oh yeah, I have a great, beautiful luxury car, but you end up wasting so much money and it's so expensive. But leasing is that example of like, oh yeah, I can afford this payment. But like, it's great and I look great, but you can't actually afford the car.

Starting point is 00:09:51 So the ego has to be set aside, and the solution is to save up and pay for your cars in cash. And again, $5,000, that car can get you at places. It really can. And then there's even families out there, which sounds extreme to some people, and they're like, oh my gosh, that's so inconvenient, which it is, but some people are a one-car family. There are a lot of people that are in this position where they're like, we hate paying $1,300 on a car payment. I got that DM on Instagram this weekend, $1,300 a month going.

Starting point is 00:10:21 to a car payment. And it's like, it's exhausting. It's absolutely exhausting. So some people even go down to a one car family, which is wild. Now, if you need some ideas on where and how to start shopping for affordable cars to purchase with cash, make sure to check out my episode 10 great cars under $10,000. So make sure to check it out there. Or if you are listening on podcasts, I will leave that link below. All right, you guys, let's go after those villains together. And remember, to take control of your money and create a life you love.

The Rachel Cruze Show - 3 Major Money Villains Hiding in Plain Sight

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