The Rachel Cruze Show - 3 Things Society Doesn’t Want You to Know About Money

Episode Date: July 22, 2019

In our culture today, you might hear people say things like:  “It’s impossible to graduate from college without taking out student loans.”  “You can’t buy a car or have nice things without debt.”  “The only way to become a millionaire is to be born into a rich family.” But believe it or not, our culture doesn’t always tell the truth. Shocking, I know. So, in the latest episode of The Rachel Cruze Show, I’m going to set the record straight. You’ll learn: Three truths society doesn’t tell you about money How a school teacher paid off $40,000 of debt in just 14 months The proven plan to become a millionaire, no matter your income Resources (everything mentioned in this episode): Show Notes Page Become a Financial Peace University Coordinator! The 7 Baby Steps SmartVestor Pro Investment Calculator Financial Peace University Everyday Millionaires Learn more about your ad choices. Visit megaphone.fm/adchoices

I felt out of control. I felt chaotic. Not only did you do the impossible, but you overcame some myths and lies that our society believes about money. I don't want to live that way. I don't want to be indebted to someone else. What we have to do is make a decision that we're going to do it, and you have to keep deciding every day. The real tactical stuff to truly have a net worth of a million dollars. These everyday millionaires, you wouldn't know it, Rachel, when you met him. Hey, guys, welcome to another episode of the Rachel Crewe Show podcast. This is a really fun one because as I listen to the news, I listen to other experts, I travel the country, I keep hearing all of these lies and these myths that are presented as the truth. And here's the deal. Society's not always going to tell you the truth. You're going to hear that you have to go into debt for things you want. And your future, it's not up to you. It's up to other people. All of those things, you guys, they're lies. So I'm here to tell you the truth. So today we're going to talk about.

how to do some of the things that society says is impossible. Things like winning with the money you have right now, not going into debt for things you want, and how becoming a millionaire is possible. So I'm bringing on Elizabeth, who did The Impossible, and she paid off $40,000 in debt in 14 months. Absolutely incredible. And then I'm going to have Chris Hogan come back on

and talk about how every day people can become millionaires. Because society says it's only for the rich and famous, which is not true. So I thought it would be fun to see what people are saying out on the street about these topics. So I send out a friend of mine, Will Smith, not that Will Smith. Sorry, Jeannie. The other Will Smith, one of my friends, to get some insight. So take a listen. Hey guys, Will Smith here. I'm out here in Nashville. Let's go see what people have to say about this topic. Do you have student loans? Yes. Yes, quite a few. Yes.

Do you think student loans are a normal thing? Yeah, I would say they're very normal. College is super expensive. So most people who go to college, yeah, have them. I think most millennials particularly have student loans. Do you think it's possible for someone to go to college with zero student loans? Do I think it's possible yes? Do I think it's likely no? No. I think you'd have to have either parents or somebody helping you out.

Do you have a car payment? I do have a car payment. Yep. Yes, I have a car payment. If you were going to buy a car tomorrow, how would you pay for that? I would probably put a small down payment and finance the rest. How long would it take you to save to buy a car? With my income, I feel like it would be at least 10 years.

Maybe two to three years. How many millionaires do you think there are in the U.S.? A hundred thousand? A thousand. Somewhere in the 40,000s. I would say maybe anywhere between 100 to 200. What if I told you there were 11 million millionaires? That's shocking.

Do you think you'll ever be a millionaire? No. Fingers crossed, maybe one day. We can hope. And what is your plan to becoming a millionaire? I am going to become an actress. Maybe not teach yoga anymore. Make wise decisions with my investments.

Probably get internet famous. That's what most people do, right? Do you think you could ever teach a class about finances? No, I don't think I could ever teach a class about finances. Not yet, no. If someone asks you to teach a class on personal finance tomorrow, would you be able to do that? No, but I would love to take that class if it was offered tomorrow. Well, I have great news for that, girl.

there is a great money class called Financial Peace University. I do. I think it's always so funny to hear people's thoughts, especially the guy that was like, I think there's only like 100 to 200 millionaires. Oh, y'all. Okay, so great, though, because again, it just shows the state of where people are at

when they think about money and half the time they're believing the lies. So let's talk about some of the money lies you might believe. All right, let's jump into it. You can buy a car without debt. may not be a great car, but you save up and you pay cash for a car. You can go to school without debts. It's possible. You may not be going to your dream school or your teenager may not be going to their dream school. Stay and stay, go to a community college, work, scholarships and grants,

all those things you can still go to school without debt. And you guys, you can become a millionaire. We'll talk about that later in the episode, but it is possible. But there's a few things that you must do first to set yourself up for success. Number one, you have to change your mindset. One thing I noticed through all those interviews is that people really believe that they just, they can't do it. In dealing with your money, it is 80% behavior. It's only 20% head knowledge. Okay. So understanding how money works is only a very small portion of it, but doing it is actually what's going to cause change. But in order to do something, to have action, you have to have hope. you have got to believe that you can. Number two, stop believing the lies. Yes, society is going to tell you

so many things about money, everything, that debt is normal. And, you know, the only way to succeed and to get what you want is just they have a avenue of debt. That's the way it is. Guys, if that's what you believe, then you're going to be normal. And let me break it down for you. Normal, 78% of Americans live paycheck to paycheck. That's right. Their money comes in. They pay all the bills, all the credit cards, all the car loans, all the student loans, their mortgage, everything, it goes right back out and they have nothing. They have to wait for next month's paycheck. So if you'd like to be normal, you can be normal. But if you're sitting there thinking, that doesn't sound fun, or maybe that's your reality and you think, I can't do that.

You get to change. You really, really do, which is number three, get on a plan. You have to be intentional. Now, this is not going to happen overnight, but you have to stick to the plan. And the plan we teach over and over and over is the baby steps. The baby steps are seven steps that get you from zero savings, full of debt, living paycheck and paycheck, all the way to living completely debt-free, building wealth, and being tremendously generous. Now, if you're not familiar with the baby steps, make sure to click the link below because that video is going to show you everything about the baby steps that you can get to it. And guys, it works. I'm telling you, it works. And now I'm so excited because I have Elizabeth coming on who did the steps.

Like she's doing it. She did the impossible and made it possible. And now she is even teaching people how to do it herself. Okay, so before I let you listen to the interview, I just wanted to say, like, Elizabeth's story is so great. Again, because I love the normalcy of what she believed, especially when it comes to student loans. And we'll address all of that in the interview. You'll hear that coming up. But, man, another lie that we believe as society, especially when it comes to student loans.

loan debt that like, yeah, it's just going to be taken care of. But then the fact that she took control of her money and her destiny and her future, and on top of that, she's helping other people. So she is just, oh, she's like a gem. She's one of the best. And I so enjoyed my conversation with her. So here it is. I felt out of control. I felt chaotic. I felt no peace. I had $40,000 in student loan debt. I had no idea how I was going to pay. pay off the student loan debt that I had accrued. I am a teacher, so I had heard, oh, they'll forgive it after a certain number of years. Whenever I signed my loan documents at financial aid when I went to college, they had told

me about the teacher loan forgiveness program, and then after graduating, I had seen some things online about it and started to kind of dig more into it. I think a common thing that people are believing right now is that that's the law that they're their loans will be forgiven. There's a lot of misconceptions at the college level and beyond about a certain number of years you work as a public service or as an educator and that those loans will be forgiven and it's not always the case. I found that it's very time-consuming and a very lengthy process to get your loans forgiven by the government. And then once you submit your paperwork. They may or may not forgive your loans and you can't reapply. I spent about two hours

on the phone with my student loan company while I was in financial peace and I was trying to get them to explain to me what was going on with my student loans. My payment was going up every month instead of down and I just, I knew something was not right and my coordinator encouraged me to call them and figure out exactly what was going on. So I spoke with the student loan company, and they said that the plan that I was on would never repay my student loans. And I'd already applied for forgiveness and had not received it. She said, we will forgive your loans when you are 50 years old or whenever you repay it all back. And that was my moment of reality. I'm only 27 at the time. I can't have student loans until I'm 50. Like, I've got to get a hold on this.

Once I started working the baby steps in financial peace and saw the momentum of my debt snowball starting, I felt so victorious. I felt like I had won and I had beat the system almost before my payment was going up every month and now it was going down every month and not down just a couple hundred dollars, like down thousands of dollars. And I felt so confident and I wanted everyone to know that. I was making this happen. After I paid off all of my student loan debt in March 2018, I had posted about it on social media that I was debt-free and how proud I was and so thankful

to Dave Ramsey and God for the knowledge and the self-control and self-discipline. My coordinator reached out to me and was so proud of me and he was so encouraging. And he said, you have a story to tell and you did this by yourself on a teacher's salary, which people can really connect with. And they think that that can't be done. So you said, you have a story to tell. And I would really encourage you to look into leading a class. And I totally brushed him off. I was like, okay, yeah, I'll think about it. And then I would have people reaching out to me asking me, could we get coffee? Could we go out to lunch? could you tell me how you paid off all your debt and how you saved all this money? And it began to click for me that I had something special to share. And God had given me this opportunity to help others. And so in December, I decided to be a coordinator and I led my first class in January. And it's so

inspirational to me because it challenges me in the best ways. It holds me accountable. And it helps me be a part of something that's life-changing. People are motivated and want to change their family tree, and I'm just so blessed that I get to be a part of that. Thanks, Elizabeth. Thanks for being here. Thank you for having me. Yes, your story's so great. I love it, because not only did you do the impossible what some people would say, which is pay off $40,000 in 14 months, but you overcame some myths and lies that our society believes about money. So, first and foremost, $40,000. Yeah. In 14 months.

How did you do that? I became gazelle intense to use your dad's words. I was babysitting, house sitting, dog sitting. I took extra jobs anytime I could. Everyone knew that I was trying to pay off my debt, so they would come to me if they had anything that needed to be done. And I just worked really hard. So you're pretty vocal about your journey.

Like you told people, what do most people think? about it. They thought I was crazy, especially since it was student loan debt. A lot of people would say, you know that they'll forgive that, right? Or like, after so many years, it'll be gone. You don't have to worry about it. Why are you wasting your money now? And I'm like, I don't want to live that way. I don't want to be indebted to someone else. Yes, that's so good. Because that's a great point that you brought up is that people really do believe this idea that, okay, well, a certain person gets elected into office, you know, they'll be student loan forgiveness. There was a guy recently that actually a billionaire that paid off an entire class of college students at the commencement address paid off all of

their debt, which is incredible, amazing. But that's like not going to be the reality for most people, right? You're going to have a billionaire, write you a check. And so there, but there really is this myth out there of people believing that student loans, they'll just be forgiven one day. Like, don't worry about it. And so you fell into that some, you feel like. Yes. I am a teacher. And so there's several forgiveness programs out there for teachers. What they don't tell you when you sign the paper for your student loans is that the loan forgiveness is very difficult to get. Yes, yes. There are many stipulations on it, and one little thing can mess it up. So it's beyond rare for that to be a reality. So like the reality for most people is that they're going to

have this debt. And if they don't do what you did, you know, then they keep student loans around forever and ever and staying in debt. But you got intense. You worked like crazy amount because how many jobs did you get? I had like eight jobs at one point. That's unbelievable. Tell me what some them were. I'm just curious. Like what you do? Yeah, I worked at a bakery part-time. Babysitting became my jam. I babysat all the time. I do calligraphy, so I would write on chalkboards and address envelopes for people. And I just tried to use any talent that I knew I had in my back pocket to help me make some extra money on top of teaching full time. So good. And you do some of that at night and early mornings all during the day. Yeah. Yeah. When I worked for the bakery,

I would wake up at 5 a.m. on Saturdays and go in and set up. Okay, let's just pause right there. and let's focus in on the fact that this girl had eight jobs, you guys, eight jobs. I mean, like, I was just blowing away when she was like naming everything off. It was in my head, I was like, you must have been exhausted. But this is the perfect picture of gazelle intensity. I mean, she did it. She sacrificed her time, her money. I mean, she went and did anything she could to earn that money and put it towards debt.

And all of us, we can all find excuses of why we don't want to do things, everything from I'm not a morning person. Do, oh, I just don't have time. But man, when something becomes a priority in your life, it's amazing how it rises to the top. And her life doesn't have to be like that for the rest of her life. That's the great thing is, like, working these eight jobs, she did that for a season, for a short period of time.

And I know we all, no matter whether you're paying off debt or no matter where you are, there's seasons in your life when you look at your yearly calendar and say, okay, this is going to be a busy season. Like July for Wednesday night, like it's just, it's absolutely insane. Our kids are everywhere. work is nuts and it's like, we knew. We just have to get through July. So like, if you have an end date and you know, okay, we just have to get through this date, we're going to be okay. And do that when it comes to working extra jobs. Just say, okay, we have nine months or we have 10 months. We're going to just put our heads down

and we're going to go for it. When you find that in date, that helps the motivation as well, where it's not like this life cycle of working eight jobs. But the fact that she actually implemented this, she actually did it. She is proof that anyone can pay off debt if you work hard. And Elizabeth, I love it. So we'll continue on with the interview. But you got intense, became debt-free, and then became passionate about this message of living debt-free and living intentionally and the baby steps and all that's taught in Financial Peace University. And with the class, there's always a coordinator that helps kind of facilitate the discussion and you became a Financial Peace University coordinator. Yes. So you taught a class How to go? It was so great. We had an amazing group of people and great attendance. They really

stuck with it. It was transformational. So someone that here is Financial Beach University Coordinator for the first time. How would you explain that? Like, what does that person do? You are more of a facilitator. Your team does a great job of having the videos and the notes and the guidance all there and ready for you. And you just ask questions and support and help hold people accountable. Yes. And so you're really sitting with people and watching their lives change, right? Like week to week, where there are a few people in the class that you, like, loved their story. And you were like, wow, like the transformation that they made was unbelievable. Yeah. There was one couple who made $120,000 total. So they had, you know, a good amount of

money, but they were so in debt. Isn't that amazing? Yeah. I'm like, a lot of people really believe, like, if I just had more money, I could do this. I'm like, no, if you don't have good money habits, the more money you have, the bigger the mess is going to be. Right. And so just because you're making a huge income, you could have a big mess, which is just

really, it's always so interesting to me. So keep going. Sorry. Oh, you're fine. So they paid off $15,000 of debt just in the two months that they were in my course. So I was so proud of them. And now they want to be coordinators and help share their success and help people. That's amazing.

That's so great. So what made you want to do this? Because not only is going to the class somewhat of a commitment, right? You go nine weeks and you're with a group. But when you say, hey, I'm going to go and do it again and actually facilitate, it must have obviously changed your life for you to do that. So what was the why for you? The course transformed my life. so much and I'm just so thankful that I took financial peace in that moment in my life,

that I can't keep quiet about it. I want to tell everyone about what this course can do for you. And I want to teach people how to handle money. No one taught me growing up how to budget and how to save and how to invest. And so now that I have that knowledge, I just want to tell everyone I can. And that's my why. Yeah, it's so good. It's so good. People may be thinking, oh, my gosh, you know, we have so much debt. You know, we don't budget and all of that.

So going through Financial Beach University just as a member is huge. But I'm on the other side like you are. Would you say that you have to be like super financially smart and you have to have all the answers? Because some people could be intimidated by it. Right. I would definitely say I was in that boat before I got started with being a coordinator. I thought I didn't know enough.

about investing in real estate and all of the baby steps past baby step three, basically. But my coordinator from when I went through financial peace really encouraged me and met with me and talked to me about how to be relatable and to share my story. And that was what was going to connect with people. And if I didn't know the answers, then I could reach out to someone and they would help me figure out the answers. So good. Well, seriously, I know from our seat, our perspective, or MZ Solutions, like we always say,

the radio show can only reach so far, right? Only so many people know about the podcast. Only so many people watch the shows or go to the events. But it's the coordinators that are in their cities, in their towns, all over America, like thousands and thousands of you all sitting down with people on a Tuesday night or a Wednesday night or a Sunday night and have this group, you know, really becomes a family in this class and completely transforming their lives. and you spearheaded that for you guys. So I so appreciate it.

Seriously, you're like in the trenches, boots on the ground, helping spread the message and spreading the message of hope, you guys. And it's what we want for you to take control of your money. And so I so appreciate it, and I'm so glad it was a great experience for you. So if you guys want to coordinate a financial peace university class, just like Elizabeth,

make sure to click the link in the show notes. And coming up next, Chris Hogan is going to come on, and we're going to talk about how you can become a millionaire. Thanks, Elizabeth. Hogan, you're back. I am back, and I'm excited to be with you. I'm so glad. Okay, so I can't wait to dive in

because people believe the lie that you just can't become a millionaire today, but that's a lie, people. It's a lie. So let's go through really quickly the top three lies people believe, and I want you to, like, hit me with the truth. Okay, all right.

I mean, don't really hit me. No, I would never do that. That would hurt. No, I would do that. But I'm going to tell you the truth. Yes, too. Because you're right, there are some lies out there. So, all right, you leave.

First lie is. All right. A lot of people believe to become a millionaire, you have to inherit your money. Or that millionaires, they've only become millionaires because they inherited a bunch of money. Rachel, people actually believe this. Yes. And you know why? It's easy for people to believe that, hey, someone just handed it to them.

Nobody really worked hard themselves. So here's the fact. We studied over 10,000 millionaires all across the country. Okay, we did the largest study that's ever been done. We found out the truth. According to our research, 79% of the millionaires didn't inherit a dime. Nothing. Nothing.

That means that they didn't have it handed to them. This was someone that actually worked hard and built wealth over time. So inheritance, no. Some of them inherited. 16% of them inherited some money, but it wasn't enough to cause them to become a millionaire. 79% inherited zero. Nothing. It's crazy.

So crazy. Okay. Another lie is people say, well, I have to make a ton of money. I've got to make at least six figures in order to become a millionaire. Rachel, this is another myth. It's not true. According to our research, we had a third of the millionaires that we studied. never had a six-figure household income.

Now, hold on, hear me with this, household income. That meant if the husband and the wife were both working, they combined didn't make six figures. So this high-income thing is not true. It helps, but it does not stop you from not becoming a millionaire. Well, Rachel, you know this, you teach about this. It only helps if you're budgeting and you're being intentional with your money. That's right.

I've met a lot of pro athletes and entertainers that were making big money, but guess what? Their lifestyle required that they make a lot. So they weren't making any progress. So you don't have to make a big income. Can I tell you something else? Top three positions. Top three positions of the millionaires that we studied.

Number one was engineers, right? Which isn't surprising. They planned stuff. Yep. Number two was accountants. That's a surprise. They know money. Number three blew me away.

Number three was school teachers. Okay, I love that you mentioned that because we actually just had Elizabeth on the show and she's a teacher. She's on baby step six. So she's like, I mean, she's working her way there. And she will. She will become a millionaire. She will.

With it, which I love. Because she's attacking with Baby Step 6, she's going to pay off the house, and then she's got that value, plus the money she's putting into her 403B, she's well on her way because debt's not stealing from her anymore. She's being intentional. That's right. Okay, so there's a lot of interesting things you guys found out in the survey, things like typical millionaires, they coupon, they drive use cars, all these cool things. But I want to know, like, the real tactical stuff to truly have a net worth of a million dollars or more. there's really three big things that you have to do. Yes, all these other things help for sure.

But one of them is when you start to win to keep your lifestyle still at a minimum that you don't go crazy spending a bunch of money. No, these people, these everyday millionaires, I call them, because they're everyday men and women. You wouldn't know it, Rachel, when you met them. They're not dressed head to toe in fancy clothes. They don't have a lot of bling and diamonds on.

They have nice things, but they're very conservative. That means that they're staying in control. They knew what a cloud them to get to that million dollar net worth, being intentional with their money, being very focused. And yeah, they have nice things, but they save up and they pay cash for it. So good. So even up in their lifestyle, just a very small percentage, they don't go crazy. That's right.

Okay, another thing to get you there is investing. Rachel, you know this is the truth, right? Can I tell you this? 80% of the millionaires that we studied said the number one thing that caused them to build a million dollar net worth was one thing. Employer sponsored retirement plans. So that means 401Ks, 403Bs, IRAs, and Roth IRAs. That was the number one tool.

Rachel, these are the same tools that all your viewers have the same access to. It's a matter of using those tools and being intentional. And one more thing. 68% of the millionaires that we studied used an investment professional. That means they had someone to guide them along the way. That's why you and I talk about the SmartVester pros. You don't want to do this alone, right? If you've got car trouble, you go see a mechanic.

If you've got a health issue, you go see a doctor. We're talking about your dreams and your future. You need to talk to an investment professional. So good, you guys. I mean, seriously, when you're investing, your money is working for you. But I want you out of debt to have your emergency fund in place and start down that path. Okay, the other big thing is paying off your house. A lot of millionaires say that they got a lot of their net worth by paying off their house.

This is the last big step. You and I know this, being plugged in with Financial Peace University, when you get become 100% debt-free, and now that mortgage payment isn't leaving you anymore, that mortgage payment now is there to do more for your family or to help you catch up for your retirement dreams. But this is a big deal, so much so that I developed a free tool, it's a net worth calculator at my website,

chrishogan-360.com, to help people understand what is your net worth right now, and I want to explain it to your viewers. So to get to net worth, what you take is all that you own. That's in your bank account, your 401K, your IRAs, add all that up and subtract out anything you owe on. So what you own minus what you owe. If that in numbers a million dollars more, then congratulations, you're an everyday millionaire.

You're a millionaire. That's right. And the great thing is, we talked about it early on the episode, but it's so true, is that this is possible. Society's going to tell you, no, unless, you know, you're famous or you have a rich family. There's no way you can become a millionaire. You can. Anyone can. And your book is to prove it, right?

It does prove it. The everyday millionaire. That's what got me started down this path. The American Dream is alive and available. What we have to do is make a decision that we're going to do it, and you have to keep deciding every day. So good, you guys. You can do the impossible. It's possible for you. Okay. So if you're curious about this book, because it is so good, you can actually read the first two chapters completely for free. Just click the link below. Are you giving away my stuff? It's just a little bit, you know? It's just giver. I'm a giver on the show. It's called the Rachel Cruz Show. Yeah, you are kind of in charge. Welcome. You're kind of the boss. You're small, but you're the boss.

I'm bossy sometimes, yes. So much so. Hogan, thanks for coming on. Seriously, great information. Thank you, ma'am. All right, thanks so much for listening to today's episode. I hope you enjoyed it because there is so much truth in it. And I hope you feel encouraged because you guys can do this. Thanks so much to Chris Hogan for coming on and to Elizabeth for motivating us and sharing her story.

She's just incredible. So to get everything that we talked about in this episode, make sure to click the link in the show notes. And if you've not subscribed yet to the podcast, make sure you do that. And as always, if the Spirit leads, you can leave a review. And don't forget that the Rachel Cruz show does have a video version as well. So you can actually watch it on YouTube and Facebook so you can check it out there. All right, thanks again, you guys. Hope you're having a fantastic week.

And remember, as always, take control of your money and create a life you love. So if you guys enjoyed this podcast, we have more from the Ramsey Network for you to check out like Christy writes Business Boutique podcast. Hey, I'm Chrissy Wright, and I help women all over the country take their ideas and passions and hobbies and turn them into profitable businesses. If you have an idea in your head or a dream in your heart and you've ever wondered if you could make money doing it, I'm here to help. Join us on the Business Boutique podcast where we are equipping women to make money doing what they love. To hear full episodes, just search Business Boutique or wherever you listen to podcasts or go to businessboutique.com.