The Rachel Cruze Show - How This Investment Could Change Your Family Tree with Christy Wright

Episode Date: July 19, 2021

Life balance is not about doing more. It’s about doing what matters. In this episode of The Rachel Cruze Show, you’ll learn:  How anyone can make their kid a millionaire (yes, really!) Five practical steps for finding balance in this crazy life (with Christy Wright) The right time to sell your car   Resources:  Investment Calculator Christy Wright’s New Book, Take Back Your Time         Learn more about your ad choices. Visit megaphone.fm/adchoices

When you know what matters, then it's not about saying no to all these things. It's about saying yes to these things. So it's not about the no. The no is very negative. Oh, that hurts my feelings. It's like, oh, it's so that I can say yes to these things that are more important. And so it just gives you a little bit of permission to refocus on what matters most right now. Hey guys, welcome to another episode of the Rachel Cruz Show podcast.

I'm so glad that you're here. Well, in this episode, I'm going to be interviewing one of my best friends and Ramsey personality, Christy writes. We are going to talk through ways to get your time back because, let's be honest, whether you're single, you have kids, you're working, you're not, we all feel the weight of being too busy. So she's going to talk us through some really practical ways to gain your time back. And I cannot wait for you to hear that conversation. And then I answer a question from Nucci, who sent her question in to the Ask Rachel email and is wondering if it's necessary for her to sell her vehicle while she's paying off debt.

So I can't wait for you to hear her situation and I'll talk through that. But first, I want to let you know that you can make your kid a millionaire. Did you know that? Mm-hmm. It's actually possible. So you do not want to miss out on this advice.

I want to just dive right in. Okay, the other day, my friend told me the story and I was like, what? So he said that his mental, years and years ago said to him, hey, are you investing for your kids' future? And my friend at the time didn't have kids, and he was like, no, I don't have kids. And his mentor was like, listen, the earlier you start saving for your kids and their future, the better off they're going to be and you're going to be because he knew a little something called compound interest. So he kept asking my friend

over and over for like two or three years, hey, have you opened up an account for your kids? Hey, have you opened up an account for your kids? He's like, no, no, no, no. And so finally, his mentor said, okay, listen, I'll match you. Whatever money you put in, I will match you because I want you to start investing for your kid's future. So whether you put in $20, I'll match it. Or if you put in $200, I'll match it. But I'm going to help you because I want you to be motivated to do this because you are going to be so, so thankful. Well, he finally took him up on it one day and he said, okay, I'm going to do this. So when his kids were little, he was doing it. And fast forward, you guys, almost two decades. Each of his kids, when they turned 18, he handed the accounts over

to them. And these accounts, you guys, had over $200,000 in them. Yeah. Just because he started so early and was consistent. I mean, is that not insane? That is so, so crazy. And the great thing is they were able to use that money. Some of them used it for school. Some of them used it for their wedding or they use it for a down payment on their first home. And guys, that is the power of not just compound interests, but the power of changing your family tree, thinking so far ahead, because it is crazy what just $500 or $1,000 can do over the course of 18 years. So you may be thinking, wow, how can I do this for my kids? Mm-hmm. That's what I'm thinking. Well, listen, first and foremost, you want to get to at least babysat four. And babysat four is where you're funding your retirement.

So again, you're putting 15% of your income away for you, for your retirement. This is very important because you need to be in a place financially before you start helping your kids. That's why Babyset 5 is funding kids college. But again, baby step four is funding your retirement. It's just like the plane example, right? If something happens and the oxygen masks fall from the airplane, they always say, put yours on first and then your kids. So helping yourself first is not selfish.

It is wise. then once you've been doing that, then you move on to Babysop 5, which is saving for kids college. So this is where we can kind of talk about children and investing and setting them up for the future. So there are two main ways to save specifically for college. One of those is an ESA and educational savings account. So if you put money into this account, it must be used for education. But the great thing is ESAs grow tax free. It's a beautiful thing.

It's similar to an IRA. You can max it out each year. max out your ESA with $2,000. So there's a limit to how much you can put in. Now, married couples making more than $220,000 a year, or a single parent making more than $110,000 a year are not eligible for ESAs. So if you're not eligible for an ESA,

you're thinking, well, how less can I save for my kids' college? That is where the 529 plans come in. 529s really are an amazing vehicle when it comes to investing for your kids' college. but again, this account, just like the ESA, must be used for education. And it also grows tax-free. So if you want to invest more than $2,000 again or your income exceeds the limits for an ESA,

then I would go to a state-specific 529 plan. Now, there are other accounts that you can open up for your kids that are not just college-based. One of those is a custodial IRA. So it's never too early to help your kids save for retirement. That's right. This is where this one comes in. So when they get their first real part-time job, sadly, allowances and commissions at home do not count,

you can open up a custodial IRA in their name. So you can do traditional or a Roth. I always recommend the Roth because it grows tax-free. And you can help manage this account until they're 18 or 21. And they can't contribute more than what they make in a year. So if they earn $1,000 a year in babysitting money, then they can contribute up to a $1,000. $5,000 in their custodial IRA. So let's look to see how this adds up. If you're a teen puts in just $100 a month and then you match it $100, what happens? Remember, they cannot put in more

than what they make in a year. So in this example, they're bringing in at least $200 a month. So when your child invests $100 into the account, then you can also put in $100. This means $2,400, will go into their custodial IRA each year. And if you guys did this from age 16 to age 20 and then stopped, never touched that account again, walked away, just pretend like you forgot it, and they went and looked at that account when they are 60 years old, it could have over $2 million in it

with an average interest rate of 11%. You guys, is that insane? Is that how crazy? I mean, $2 million. So what I want you to do is go to the Ramsey investment calculator and just play around and just say, okay, what if I changed the rate of return? Or what if I changed the contribution level? Like, all of it. I mean, it is so wild.

What can happen to money over a long period of time if you just leave it alone? So you can also text investing to 33789 to try the calculator out for free. Another option to help your kids with their future is the UGMA and Utma. Yeah, kind of funny acronyms, I know. but if you want to help invest with your kids, again, for their adult expenses down the road, maybe it's for their first house, for a down payment, whatever it is, and you want that account to be a little bit more liquid or accessible than just a Roth IRA, these are some great options. So the uniform gifts to Miners Act, the UGMA, or the uniform transfers to Minor Act is the Uttma.

And these are accounts to invest in good growth stock mutual funds. and this is what my parents did for each of us kids. They opened up in Utma, Utma. It sounds like Uga Mugga, like Daniel Tiger. It's just all in my head. It's all my head now. Akamuga. I would just, yes.

So, again, it is amazing because my parents said this. They gave it to us pretty early in life. I didn't wait until I was 60 to cash mine out, you know, a little bit more instant than that. But Winston and I had that account. We're like, oh my gosh, that's amazing. It just helps accelerate things so forward if you're able to. And again, this is part of changing your family tree.

So here are some things to know about these accounts. You cannot touch them for at least five years. So once you open it, you cannot pull money out for five years. And just like a custodial IRA, the UGMA and Uttma accounts are opened in the child's name and an adult's name, and the adult manages the account until a certain age. And the money can be used for anything, not just college. So these accounts are taxed, according to the child's name. tax bracket, which typically means that they're going to pay a lot less in income tax because

they're probably not making like crazy amounts of money if they use the money within that five-year period or after that five-year period. And there are no contribution limits. So you can put as much money into these as you want. So again, go play around with the Ramsey investment calculator and just see what it is if you invest for your kids and you help them invest some of their money and put money away for a long time, what ends up happening. So you can text investing to 3-3-7-89 again to try that calculator for free. And it is so fun, you guys. I mean, this show, yeah, we talk about practical things when it comes to your money. But a big part of this message is that you are changing your money habits, not just for you, but literally for your entire family,

for generations to come. And if you are able to set your kids up well, not only to have great character to carry the responsibility, but you're able to help them get a, you know, this level up when it comes to their financial future, whether that's helping them avoid student loans or helping them with an account and that account eventually becomes the first down payment for their home, like anything like that. It is a gift. That is such a gift to help them understand how to steward and be responsible with their money. And then they're going to be able to help their kids and then so on and so forth. It is really about changing your family tree, which means helping change your kids' futures. Today, I have one of my real-life friends here. Christy's on.

This is so fun. But professionally, she's a writer, speaker, the host of the Christy Wright Show, all of it, but great friend. I'm so glad you're here. I know. And we are here on your set, which normally were literally across behind the cameras on my set. You can see behind us.

Well, it's so funny. I was in the office this weekend because I was doing something real quick and the kids were with me. So we came in here because I went to show and I was like, and your set was set up. Yeah. And I just did a quick like Instagram story

and I had someone respond on Instagram and they were like, that's not your house. So no, Christy and I, our houses are just right next to each other. It's amazing. It's amazing. Well, Christy, number one, I love you, you're one of my best friends. But number two, when I think about people who do life well in the balance of life, being a mom, working, wife, all the things, you're always top of my list.

Thank you. Because you have such great boundaries, you have such a great healthy way of understanding this part of life, which is really hard. It's really hard. And I'm so excited because take back your time, your new book. It's on pre-sale right now. Oh, amazing. And I love a guilt-free guide to life balance.

You guys, I am so excited about this book. But the idea of a balanced life, all of it, it is a hard topic. It's like the number one conversation point I feel like I have with all my friends. Yes. It is a big deal. So I feel like as women specifically and men probably feel this too, but it's like you kind of feel like you're having to do everything. And there's things you can outsource, like getting someone to help you clean your home or doing grocery delivery instead of going. Like there's all these things.

But some of these people, you know, they're getting out of debt. They are sacrificing. So, like, how can we do it all? What do you do? Okay, so I think first, I love that you brought up the fact that this is hard because I think that sometimes we think if something's hard, it's bad. Things can be hard and still good. Yeah.

And one of the things that I've really wanted to dig into, because you know, Rachel, from back in the day, I've been speaking on this topic since 2013. So almost a decade, really even before that, originally. And so I've learned a lot because I didn't even have kids at that time. And so I've learned a lot, and I've researched and I've spoken to crowds and then in my own life, having three kids under age six, I've tried to figure out what does this idea of balance mean?

And I think we get it wrong in our culture. I think we think it means I have to do everything for an equal amount of time. I have to do everything well. I work 50% of the time, and I'm at home 50% of the time. And all of that is so discouraging because you can do that and still feel out of balance. You can even outsource things like you said and still feel out of balance. And so what I unpack in this new book, which I'm so excited about, is life balance isn't doing everything for an equal amount of time. It's about doing the right

things at the right time. And it doesn't mean it's going to be easy. It might be hard, but it can also be good. And so it gives you permission to take this elusive idea of life balance that's always haunting you. How do you balance it all? How do you balance it all? How do you do it all? And instead say, what's right right now? Right now, I'm here with you. Right now, I have a busy schedule day at work. Right now, I'm in book pre-sale. Right now I'm focused on this. There are other seasons where I'm focused on one of my kids because they're struggling, or I'm focused on family time on the beach or whatever. And so it gives you permission to be present in the season that you're in and ask yourself, what's right right now? And when you do that, I really believe you will feel the sense of

balance that you've been looking for. So good. And I love the idea, it's even day to day. Yes. Like your season, there could be a long season, you know, a theme of your life you look every month. But sometimes it's literally depending on the day. Right. In the hour. Like, but being present, I know, I quote you all the time. Yeah. Because you used to say, I don't know how much you say, no. life balance is not about being 50-50, it's about being 100% present. And when you said that, it like, boom my mind. And I was like, yes, that's it. Like, it is so true being where you are. Now, you have a list of five. Okay, tell me about that. Well, you know, we love to take ideas here that are complex or elusive and make them practical. Like, we love to give people

practical, actionable steps. And so I thought, okay, if life balance isn't doing everything for an equal amount of time, it's doing the right things at the right time, how do you do that? How do you do the right things at the right time? So I really broke it down into five practical steps that if you do this in any season, on any day even, then you will feel the balance that you've been looking for. So step one is to figure out what matters. So what matters most in this season? What matters most today?

What matters most? What are those top priorities? When you figure out what that is, it's a lot easier to spend time on it. Yeah, because everything can seem like a priority in the moment. But pausing to really say, okay, no, no, no, truly, what is important right now? Yes, so figure out what matters. Okay. Number two, everybody knows this, but we don't do it.

Stop doing what doesn't matter. Things that are not a priority, signing up to being your kids, PTA president, volunteering chili for the cookoff at the pot. No, stop! Stop! If that is not important to you, stop doing it. And Rachel, I could preach on this for a while, but I won't, but I will tell you, this is the biggest pain point for people.

Because what happens is we don't spend time on what actually matters to us, and there's this disconnect. So we say, I love to work out, but I never have. have the time to. I want to go on a date with my spouse, but we never make our schedules line up. I want to play with my kids, but I don't have the energy. If you don't spend your life on what's important to you, you're going to be stressed and frustrated and anxious because you're not spending your time on what you care about. Yes. If we can cut out the stuff that doesn't matter. So here, because I have a friend in mine right now. It's not you. I'm so excited and nervous.

And she does struggle with it. And we'll talk about it because she's like, oh, I just feel like I'd say yes. So the two biggest reasons I hear women specifically, it's usually women I talk to, not the men, that have trouble saying no, number one, it's either just people-pleasing. Or number two, they find their value and the affirmation that everyone applauds them. Oh, supermom, how do you do it all? How do you do it all? And there's like this level of identity, I feel like women can get because they are doing it all, but they're exhausted and they're wrung out and they don't have the time and the margin to do

and focus more on the things they want to do. So do you find that? Like, what's the reason women can't say no? Yeah, well, I actually, in this chapter in the book, I walk through five time stealers where we all have healthy needs, like a need to be loved, a need to impress others. Those are all normal. But when they become unhealthy is when you find your identity and significance and lose your time to those things.

So I'll tell you one of mine. And I think you may relate to this. You can tell me if you do. But is the need to prove myself? Like, I tend to overdo things because I feel like I need to prove that I'm good enough to be in this position or deserve this spot at, you know, the table or whatever. And I overdo it to prove that I'm a good mom. Oh, I'll volunteer for all the things to prove that I'm a good mom.

And so when we get into these traps and it steals our time, then it takes our focus and the time away from the things that actually do matter. And so one of the things that I try to help people understand is when you know what matters, then it's not about saying no to all these things. It's not saying yes to these things. So it's not about the no. The no is very negative. Oh, that hurts my feelings. It's like, oh, it's so that I can say yes to these things that are more important. And so it just gives you a little bit of permission to refocus on what matters most right now.

So good. And I think another reason people have a hard time saying no is because they're scared of the outcome. But they're going to make someone mad. They're not going to be invited again. I mean, all of it. It's like, what do you do with that? Well, I think a very powerful communication technique in general is just to say exactly what you're feeling. You and I've talked about this, even in our friendship. So if you're scared of someone not inviting you again, say that, say, hey, please invite me next time, but this time I'm going to have to pass. I always give the advice of how my husband tells me no, which is often when I have ideas to buy something new. He gives me, it's kind of like the compliment sandwich. It's like a compliment and then no and then another compliment.

So let's say, hypothetically, I have the idea. Hypothetically. Yeah, the idea to completely redecorate or hold downstairs. That never happens for Christmas life. Or buy a pontoon boat or get a dog. Whatever. I don't know. Maybe had those ideas this week.

Anyway, so let's say I bring one of my brilliant ideas to him. And I'm like, babe, guess what? I have the best idea. What if we redecorate? I mean, don't you just feel like any easier refresher? Like, we could do new curtains and new. Here's what Matt would say. He's like, wow, that is so.

interesting. I don't think we have the bandwidth in our lives or budgets right now, but I love how creative you are. It's like, it's so nice. The answer's still no, right? So you don't have to be rude, and I hope you're not. And I try to help people understand. You can say no and politely decline in a way that's true to you and your personality. But if you never learn this skill, you will spend your entire life for everyone else. And so there's a piece of this, and I actually unpack this in the book, there's a piece of this where you have to cultivate the confidence to be able to say no, not just actually say it, but to say no and know that you're okay and they're okay. You're not Jesus. They're going to be okay in their life without you.

You're going to be okay, and we can all move on. But that takes practice. It's not something you just flip a switch. And so it's your life and it's your time. And another one thing I always say is you don't just have the right to protect your time. You have the responsibility to because no one can do that for you. So it doesn't necessarily make it perfectly easy, but it does give you the confidence in the gusto to be willing to say no more. Yes. Okay, so when you talk about things that matter,

that's going to look different to a lot of people, but what are some of those big categories that you see? Faith, family, parenting, like when people say, okay, what are the things that really matter? What are things that matter to me? Like, what are some examples of things that matter? Yeah, we tend to think in terms of categories, which is not bad.

But let's use an example of someone that lives their life in a way that doesn't look balanced at all, like an Olympian. Right? We go the Olympics this summer, like Olympic. The amount of training that they do. There's nothing about that that's balanced. Like it's crazy. They put in 10, 12, 16 hour days.

Yep. But to them, if they're doing the right things at the right time, they're going to feel the sense of balance. They may not have friendships. They're not having pizza. They're not having beer. They're not having fun. But they feel balanced because they're doing what's right for them right now.

And it's not because they have all these perfect pie split of categories of areas of their life. For someone else, it may look. more like a pie. It may look more like, hey, I've got to have time with God every day, I've got to have a workout at least twice a week, and I've got to have time with my friendships. And I do give people fresh and you look at it more in a week-to-week than a daily. Daily is not realistic. But if I don't have time to connect to my spouse at least once a week of just us, not just wrangling the kids, I start to feel a little stressed. So asking yourself, what makes me feel balanced? What are those right things for me that are right right now?

and then give yourself permission to flex of how you spend time on them within a week. Through your research and writing this book, do you think as Americans that we focus sometimes on the wrong things, we put effort and time into things that don't really matter as much? Do you find any of that? Or do you kind of let people decide? No, here's what I would say. I would say people don't know what matters to them.

And so they often spend time on things that don't matter. Yeah. Because they haven't stopped to identify what does. So that's the reason that you will see high-power CEOs of companies that are very wealthy, very powerful, and incredibly unhappy. And it's not just because they're working too many hours. It's because there's something disconnected between what they care about and what they spend their time on.

You also have other people that are high-power CEOs that feel very balanced, that work like crazy and feel very balanced because they make time for those things that matter most. But the challenge is, and you talk about this all the time, Rachel, but scrolling through social media and saying, oh, well, this mom's doing this, this is what I should be doing. Well, this is what motherhood looks like. This is what being a career woman looks like.

this is what success looks like, this is what I need to do. And so we go do those things and we work really hard and we try to live that life and we don't feel balance. And it's, gosh, that's their life I'm trying to live. Yes. And if you know what's right for you, whether that is staying home with your kids, working 70 hours a week, whether that's training for the Olympics, figure out what matters to you? What do you want to spend this one life you've been given on? And when you spend your time on those things, even if it doesn't look anything like balance to anyone else, you will feel balanced because you will feel peace about how you spend your time in this one life you've been given.

So good. Okay, so that's number two. Okay, yeah. So number one, figure out what matters. Number two, stop doing what doesn't matter. Number three, is super practical. Create a calendar that reflects what matters. If it matters, if it matters, my calendar. If it's not in my calendar, it needs to go on your calendar. And I tell people all the time, you know what we say. And I say this all the time. I live by my calendar. Oh, I live by my calendar. I mean, if it's not on my calendar, it's not going to happen. But all we have on our calendar are dentist appointments, meetings, work things. We don't have family time. work out, quiet time. That's on our calendar. And then we wonder why it doesn't happen?

What does it happen? Because it's not on your calendar. Yes. And so, if you take this simple, practical step step one to put those things you wrote out in step one, on your calendar on purpose, they're much more likely to actually happen. So step three is create a calendar that reflects what matters. Step four, protect what matters. So you have to protect that with boundaries and saying no, because even once you set the calendar, people are going to say, oh, but can you do this one little thing? What about Saturday night? What about Tuesday afternoon? And you've got to be willing to practice that confidence muscle, to practice saying no, to protect what matters most. Because you know what my problem is is, is someone says something like, oh yeah, can we just grab a quick coffee? I'm like, oh yeah,

my hand, I'm like, it'll take seven minutes to drive there, we'll talk for 45, it'll be an hour top. Sure. And it's not. Never, never, ever, ever. So by time reality is sometimes worked, right? Like where I think, I can squeeze it in. And it's all worth it. Just say no. If it's not there and you don't have the margin, say no. Well, the other thing that I think is a challenge, I think, you know, kind of going back to step two, like you talked about, you have friends and I do too, and we all struggle with this,

if we want to please people, especially in the South, we want to be liked, we want to be kind, we don't want to say no. But the trouble is there's another side of this that I think gets us overcommitted, and that is that we just have a lot of interest. There's a lot of good things going on. And I really, when I say yes,

I really want to do it. I really want to go to all those things, and the reality is, I can't. And I end up rushed and exhausted. So one of the things that's helped me, is to realize just because something isn't right right now, doesn't mean it's not ever right. It might be right in the next season. It might be right next weekend. But what's right right now, rest. What's right right now at work. Whatever the thing is, it just, it helps you

realize you're not saying no forever. It's just not right now. Yes. So step number four is to protect what matters with boundaries and saying no, protect that calendar you created. And the fifth And final step, which is super simple but hard to do in our world, and I know you talk about this a lot, is be present for what matters. And you talked about this a minute ago, but it's interesting when we are present, 100% present in the moment we're in, regardless of what we're doing, research shows that we're happier. So Harvard psychologist ran a study to assess people's attention span and their level of distraction. And they identified that in over 2,000 subjects, the more people were present, the happier that they were, regardless of the task. So you would think, like,

oh, I'm in a dentist appointment. I'm going to pretend I'm on the beach. That one of your fun. Totally. Our brain is actually created to be present. And so the more present you are, even if you're enduring something mundane, even if you are waiting in line at the grocery store, something not fun, overall, you're happier when you're not checked out on your phone and your mind's not wandering to all the things you need to be doing. So be present for what matters. Because what I want people to understand is even if you create the most perfect schedule in the world, if you're not present for it, you miss it. And so you have to be present for your life to actually experience it. So good. And I think part of all of this, there's like this theme, I feel like going around of

like self-care, taking care of yourself, all that. And how important that is. And some people, it's like everything as deep as going to like individual counseling to like taking a bubble back. Like I don't know what it looks like. But I feel like when you do have so many things going on, if you are a mom and you're working and you have a wife, all of it, taking care of. Taking care of of yourself, sometimes you can feel guilty. Do you find that a lot within women and people? Yeah, I think we struggle with that because, and guilt is really a theme in this idea of, especially being a woman, especially when it comes to the topic of life balance. And that's the reason that the subtitle is the guilt-free guide to life balance,

because really the undercurrent problem I'm solving is not a time issue, it's a guilt issue, and setting you free to spend your life, guilt-free, on what matters most to you. Now, what's interesting, though, is I think, as going back to self-care, a lot of times, because we live in these extremes of like, well, I've got to every single day, I've got to have quiet time, and I've got to also have exercise, and I've also got to do yoga. And I've also, it's like, when are you going to do all that? So just as a simple thing, I try to have 15 minutes to myself every morning, every morning. So that 15 minutes might be a workout.

That 15 minutes might be a quiet time. It might be reading a good book. I don't have to do everything every day. Yeah. But I've decided I want to start my day as me. I don't want to wake up as mom being yelled out about sippy cups and we don't have clean clothes for school. I want to start my day with quiet. so I set my alarm before my kids wake up and have 15 minutes.

But it gives you permission to say, I'm going to do a little bit each week, but not everything every day. Yes, so good. Oh, Christy, I'm so excited. I can't wait. I can't wait. Take back your time.

A guilt-free life guide to life balance. It's amazing. What's that we all struggle with? You know, that's why I was excited to write about this. Yes, and I was going to say, too, I'm like, again, so many women that I talk to, it's constant because, again, whether it's in their money journey,

they feel like they're sacrificing all that. Life is seasonal. Yeah. Things you don't have, but you have to be intentional with it. Well, and I think the other thing that the angle that I tried to take in this book is when we are often asked the question, and I'm sure you get this too, is how do you balance it all? That's how we always talk about it. How do you balance it all? And balance is always a verb. How do you balance it all? And we have all these, you know, analogies of spinning plates and juggling balls and walking a tightrope. And that feels stressful and anxiety-ridden, and it feels overwhelming.

And so I just started asking a different question. What if balance isn't just something you do? What if it's something you feel? Where you say, I can be completely focused on something at any given moment, but I feel a sense of balance. I feel a sense of peace. And I'm proud of how I spend my time. I think that's the kind of balance we all really want, and that's what I want to help people achieve through this book.

It's amazing. Absolutely amazing. Christy, you're incredible. Thanks for being on. Hey, thanks for happening. This is so great. Okay, guys, remember again, it's her pre-sale right now, but it launches September 14th to make sure to check it out

and check out everything Christy's doing. You can find her. Instagram, podcast, all the things. The Christy Wright Show. So fun. I've been a guest on the time. It's pretty great. That's pretty great. Thanks again. Thank you. I want to answer your questions, no matter where you are on your financial journey. So you can go to any of my social media platforms, that's Twitter, Facebook, Instagram, YouTube, and ask your question. And you could be a guest here on the show. You guys get to join me and we get to talk about what's going on in your life and your money. And so today I have Nucci on with me.

Welcome to the show. Hi. Okay, where are you calling from? Manitok, Wisconsin. From Wisconsin. So great. Okay, so you wrote in a little bit about your situation, but tell me your marriage. I know that.

I am. And you have two little ones. And what are their ages? I have a four-year-old and a ten-month-old. And a ten-month-old. So great. And you and your husband, when did you guys kind of start this whole journey of deciding to get out of debt, live intentionally with your money and all of that.

So we just recently started at the beginning of the year. So it's still a work in progress, but it's going. And you're through Baby Step 1. Yes, we are. And you're into Baby Step 2 right now. And that's what your question is about. So go ahead and you can ask that. All right.

So my husband, we have a lot of debt. We have about $5,000 in credit card debt, $7,000 on our Honda Civic 2019, $29,000 in student loans for me. and then $30,000 on our Tora, Sienna, 2020, and then our house has about $70,000 love to pay. I have two boys, and we want to have kids again in the future and probably one or two years. So my question is, should we sell this van

because we're going to have more kids, or should we sell it and get a Dave car? Yes, a Dave car, aka the used beater while you're in this process. Well, I'll say this. Our rule of thumb when it comes to anything with wheels or motors, we always say should be no more than half of your annual income. And what's your income right now between you and your husband? Right now, my husband, he isn't working. He's looking for a job.

But I make about $60,000 a year. Okay. So you guys are kind of over that already with the car situation. And the Sienna, the minivan, which is near and dear to my heart. I love a great minivan. but you guys owe the most besides your house on that, right? That's the $30,000, correct? Mm-hmm.

So if I woke up in your shoes, I would probably sell it. I mean, I always say if you can pay off your car in 12 to 18 months, you can keep it, but all of these factors together, considering you're on one income right now of 60 grand and already you're over that 50% limit, I would say to get rid of it. And I know it's hard, it's painful. It's a 2020, right? I think it's what I have written down. So I'm like, it's a nice van.

It's super nice. I get it. I get it. But for right now, I would say absolutely. That's going to relieve so much stress from this whole situation and get you so further along on the debt snowball. I mean, because you have a great income. I mean, 60 grand's amazing.

And if your husband finds a job and you add to that, you guys could be completely out of debt. If you sell the van, I mean, within 18 months, for sure. if you get at it and you really sacrifice, I mean, you guys can be in a totally different position financially because the house, I know you mentioned, is $78,000, which is a pretty low mortgage. I mean, for the most part, which is awesome. I mean, you won't pay that off until a little bit later,

but you guys could get through these baby steps in really a pretty quick time period, which is just amazing. And I think that selling the van for sure is what I would suggest and recommend, absolutely. Does that hurt your heart a little bit? be honest. It really does because I can't imagine sitting in a five-seater, but yeah, it really does. And it does make me feel better because that would save me about $630 a month. And I can use that

to go pay my credit card or something else. So, yeah, you're paying like a $600 and what dollar car payment? $630. Yeah. Yeah, I'd get it out of there. For sure. Oh, my gosh. And here's the great thing too, it's not that you'll never have a nice van again in your life, right? And the fact that you only have two kids is a blessing right now. Because yeah, the five-seater, it's tough. I get it. But it's so doable, right? When you get three back there in a row, that can get really comfortable, really fast. But for you guys, by the time you have your third, there's a great chance you guys are completely out of debt and you're saving up for a van to go and to step into. So yeah, if I were you, I would definitely, definitely go that route. And I'm excited for you. You're just,

you guys, because, again, not that you could never get out of debt if you kept the van, I believe you could, but just the amount of progress you guys would make by this one decision financially, not only from a monthly payment standpoint, but even just the debt snowball, getting there so much faster and not having this huge car payment kind of lingering. Yeah, I agree. It is very exciting when we take that out of the equation. Absolutely, absolutely. Okay, so what motivated you guys to get started on this earlier this year? I have a friend that just keeps talking about the Dave Ramsey. She just keeps talking about Dave Ramsey, Dave Ramsey.

And finally, I just started looking into it. And I finally bought the Dave Ramsey book. And they just started reading it. And everything just started clicking together, you know, not living paycheck to paycheck and budgeting and trying to, you know, figure out life and everything. So I've only listened to her. And now, yeah, we're on track. That's amazing.

Do you feel different from the beginning of the year? like when you look back in December of 2020 to now fast forward, you know, six months, do you just feel different? Do you and your husband and do you talk about money more than you ever have? Do you feel a sense of control that you never had before? I do. I have a Google Excel that I used to keep track of our expenses and everything. And I'm like, why am I spending $100 at T.J. Max when I can use this towards my credit card.

So it kind of opens up my eyes a lot more. For sure, for sure. Was your husband? Did he get on board after you read the book? and you guys were talking about it? Yeah, he's slowly getting on board. It's a work of progress with him, but we talked about selling the van,

and he's finally agreeing that maybe it's the best choice for us. You know, we'll lose that $30,000, and then we can put that towards other debt. He's excited now, too. Yeah, that's awesome. That's so great. Well, thank you so much for calling it and asking the question because, I mean, there's so many people right now

on this journey of their debt snowball, and you're having to make these life choices that it sounds silly, but even selling a car, it's a thing, right? I mean, like, it's a decision you have to make. You have to put the work in to do it and then actually apply that money to the debt. I mean, it's a work. It's not as easy as just snapping your fingers and deciding it.

I mean, there's a lot of choices in life in between all these decisions. And so I just applaud you guys for starting it and saying, you know, what, we're going to change the way we've been doing our money. And I really think you guys are going to be in such an incredible place in two years from now. I mean, it's going to be amazing probably the amount of relief of not having payments. And by two years from now, I really think you'll have that baby step three almost finished, too. So we are cheering you on so much. And so I really hope that everything goes well.

All right. Thank you so much for having me on the show. Absolutely. Thanks for calling in. All right, you guys, you heard it first and foremost. I mean, they just started six months ago. I mean, it's absolutely an incredible thing. So I want to answer your questions, no matter where you are on your financial journey.

So you can go to any of my social media platforms, that's Twitter, Facebook, Instagram, YouTube. and ask your question, and you could be a guest here on the show. Well, Nucci's question is one that a lot of people have. Again, as you're going through the process of getting out of debt, you've got to kind of finagle your life and kind of see, okay, how can we do this as fast as possible? And, again, selling the car might be the answer. So I want to thank her for asking the question

and also thank Christy Wright for being on the show. Loved having her, and hopefully you guys enjoyed that conversation as well. Well, our time has come to an end, friends, and I hope you enjoyed this episode. Thank you so much, so much for listening. And if you have not subscribed to the Rachel Cruceau podcast, make sure to hit that subscribe button. And if the spirit leads, you can leave a review. And as always, make sure to take control of your money and create a life you love.