The Rachel Cruze Show - How to Get Serious About Your Debt Payoff TODAY

Episode Date: April 26, 2021

In this episode of The Rachel Cruze Show, you’ll learn: Four ways people are stealing your money and you don’t even know it How to shift your mindset about debt How to live a debt-free lifestyle Resources: Zander Insurance Learn more about your ad choices. Visit megaphone.fm/adchoices

They're sneaky because they make it set up that like you're winning, that you're actually the one benefiting. Us companies over here, no, we're not, we're not. Oh, but they are. Hey, everyone, welcome to another episode of the Rachel Cruz Show podcast. So glad that you are here. Now, listen, I know it's really easy to go halfway when you're paying off debts. But guys, if you want to be debt-free,

and especially if you want to be debt-free, so much faster in life, you really have to dive head first into it. Okay, just kind of saying, oh yeah, I think I, I think I want to get out of debt. I'm going to kind of try. It's just going to take you a long time. But if you say, you know what, I'm going to attack this part of my life. I'm going to stay focused. I'm going to be intense.

You will get out of debt so much faster and find the freedom that comes with being debt-free. That is why I'm so excited for you to hear my conversation with Candace Collins. So Candace found herself working the baby steps multiple times until things finally clicked. and I can't wait for you to hear what she did. I'm also going to answer a question from Marissa, who wants to stay Gazelle Intense after becoming debt-free. So we're going to talk about that because, again, Gazelle Intensity is about staying really, really, really focused,

but what does that look like in your life, financially speaking, after you're out of debt? But first, let's talk about something that I'm really passionate about. It's called money schemes. So things like after pay, zero percent, financing. There's so many things out there in the financial industry that are toxic and they're not good for you or your wallet. So for us to stay on this debt-free journey, I do not want these companies stealing from you. So let's break down how to avoid them and keep them out of your life.

Hey guys, we have a toxic money culture out there and there are so many products and services that are like, hey, here's to help you. But actually in turn, they're stealing your money. There's so many schemes out there. I remember one time, Winston sold a laptop on Craigslist, one of her old laptops, and he went to this kind of sketchy mall in Nashville. I'm not going. He told me he was going, and I was like, all right, be safe out there. And he went, and a lady walked up and asked if he was Winston, and he said, yes. She hands him an envelope of cash, and he hands her the laptop, and she turns around and starts walking away, and he turns. And he takes out, oh, no, wait, hold on. Hold on. I forgot this detail.

She actually took the money out and counted it, but didn't give it to him. Put him back in the envelope and gave it to him. So as he was turning around, he got the money out and, like, flicked one of the dollar bills, or $100 bills, $50 bills, whatever was. And it was like almost card stock-like. And he thought, and so he gets it, and he looks at all of them, mm-hmm, counterfeit money, counterfeit money. And then did my husband not, we didn't have kids yet.

He wasn't my baby daddy, but he was going to be eventually, turned around, went after her, could have totally, who knows what could have happened? And she looked at him, she kind of freaked out, so she, like, handed him back to the laptop, and he gave her the money, and he was like, this is fit, you know, and she runs off, and it was like this whole scene, and he, like, told the mall cop. And the mall cop was like, yeah, it happens a lot around here, and it was like, what? So anyways, it's just crazy. I mean, schemes are out there, people, but they're a lot more sneaky than cats,

counterfeit money. Yeah, that's kind of an obvious one. But these schemes we're going to talk about how people steal your money. They're sneaky because they make it set up that like you're winning, that you're actually the one benefiting us companies over here. No, we're not. We're not. Oh, but they are. So let's talk about them. First up are the easy pay programs that you see or the payment installments. So when you check out online now, you will see all these different payment options like afterpay and a firm. So what happens is these programs divide up your total purchase into four bi-weekly payments. So if a retailer uses after pay, you can actually get the item by just putting 25% down and then making payments after that. And after pay works very sneaky because

it shows you, hey, you can get a payment for this $68 sweater for only $17 right now. And so the emotion of buying a $68 sweater is gone because all you see visually is that 17. Oh, it's just 17 bucks right now. Oh, I can do that. But listen, if you owe money to anyone for any reason, guys, that's debt. That's like the definition of debt, owing anything for anyone for any reason. So do not buy the $68 sweater unless you can afford to pay for it right then and there. Just pay cash. Don't afterpay it actually pay for it. Up next is zero percent financing. Car loan. with zero percent interest are advertised. Like, it's an awesome deal. You don't have to pay interest on this car. But actually, it's the dealership who is benefiting from these deals. So they use

these offers to actually drive sales of slow selling models that are on the lot because they need to make room for new inventory. So nothing is free, remember? So you're actually paying for that interest in different ways. Number one, a higher price tag. Zero percent financing deals are offered on cars at full price. So you don't get to negotiate. You don't get it on sale. No, no, no. You're paying full price for it. Number two, you're actually overspending. More than likely, statistics show that when you take the zero percent financing deal, then you spring for the upgrades and the extra features because you're thinking, oh, but hey, I'm not paying interest on this. So we'll add a little bit more things. We can put money towards that stuff. So you actually buy a more expensive car because

of it. And number three, the payments. You will be making car payments over a long period of time. So do you really want to do that to yourself? And in these contracts, when you actually read the fine print, if you do not pay off the loan within an allotted time period, then they actually go back and will charge you a higher interest rate on the original loan amount. Like the whole loan, you guys, the whole thing you will pay interest on and usually a higher interest rate because of it. So it's not smart. It's just not smart to do it. Just stay away from those car loans,

even if it feels like you're getting a good deal at zero percent interest. Another scheme out there in the financial world is whole life insurance. Yep. Remember this. Any financial product out there that combines your life insurance and savings is a scheme. So you may have heard of Whole Life, or some people call it universal life or cash value. There are a lot of different names out there. But here's the deal.

What you're doing is your bar. whole life insurance for your whole life, and you're having this investment, this savings account attached to it. But when you die, guess where that savings goes? To your family? Nope. To the company. Like it makes no sense. And you're getting a really crappy rate of return on it versus if you put it in a mutual fund or something. So my goal for all of you is to get out of debts. I want you to get an emergency fund. I want you to be investing in retirement and paying for your it's college, paying off your house. And by that point, which is going to take you a little while, I get it, but by that point, when you have a paid for home, kids are grown and gone, maybe,

or paid for college, you have cash, you have, you know, million to you and investments and retirement, all of that, you're self-insured at that point. Like, you don't even need life insurance. So the idea of having whole life for your whole life, that's not even the goal, because eventually I want you to be self-insured. So in the meantime, if you're not at that, that place. Obviously, you need life insurance. So just get term life insurance. Term life covers you for a term over your life. So a 20-year term or a 30-year term, you can pick. But you get it again for a specific amount of time. And you guys, it is so much cheaper than whole life. Now, when you get term life insurance, you want to make sure you have a policy that pays out 10 to 12 times your

annual income. And if you're a stay-at-home parents, this needs to cover 10 to 12 times the services and value that you provide for your family. So think of child care. Think of grocery shopping. Think of being a driver. Think about cleaning. Like all of that, figure out how much it's going to cost if something happens to you to replace those services in your home to keep the family running. So most people can get term life and pay for it monthly around the cost of a Netflix subscription. So it's really, really inexpensive, I promise you. And if something were to happen to you, you want to make sure that your family's covered. Winston and I, we, we're use Zander Insurance because they find the best rates for us. It's super simple. Just go to zander.com

to get your quote for free today. All right, the last scheme we're going to talk about are payday loans. Payday loans are loans that help you get from one payday to the next if you run out of money before the next payday. So it sounds so nice. Oh good. These companies are wanting to help people that are running out of money. Yeah, sounds nice. They're actually terrible. Like, it's really, really bad because payday loans, that only charge you an insane amount of interest, but it's also a really slippery slope to keep you in this debt cycle. So let's say you took out a $300 loan. Well, at 15% interest, over a two-week period, you're going to rack up $45 in interest. And if you can't pay all that back in two weeks and you have to extend the loan, you pay another fee. So that $300 is now turned

into $360 and the next payday. If you can't pay that bill up front, then you have to take out another loan to replace it, and the cycle continues over and over again. So at the end of the cycle, you've borrowed $300, but you paid $105 in interest and fees to the lender. That's 35% interest at a 912.5% annual interest rate. You guys, that's insane. I mean, this is a complete rip-off. And honestly, they prey on people who can't have the money from paycheck to paycheck. So you will see the parts of town that these places are in.

I mean, they're ripping people off and they're keeping them in the cycle. and it's not okay. So these schemes, again, are labeled out there to say, hey, we're here to help you, but they're the ones benefiting from it. So my goal for you is that you control your money. Your money doesn't control you. And part of that is saying no to this toxic money culture, this industry that's out there saying, oh, yeah, we can help you. When in fact, they're the ones benefiting you guys, like say no to them and say yes to you. You be in charge of your money. Because if you're doing it with them, they're taking your money, they're stealing it from you along the way, and you're going to be stuck in the cycle of probably a lot of debt, paying interest,

and continuing trying to get the next thing, the next, okay, well, maybe this is my break. Maybe if I just do this. No, no, no, no. Being able to control your money, it takes work, it takes intentionality. It's not always going to be fun because it takes sacrifice. It's going to be hard. It's going to be frustrating at times. But you know that you are actually putting your future in your hands.

It's dependent upon you, and I would rather have a life from saying, okay, yeah, it's to me I'm not dependent on all these outside forces because, again, they're not dependent on. not out there to help me, and it's going to keep me in the cycle. I'm going to do the work. I'm not going to owe anyone anything. I'm not actually going to have cash in the bank. I'm going to invest in my future. I'm going to help pay for my kids' college. I'm going to pay off my house. And then finally, get, live and give like no one else. Like, that's what we teach. And that's what I want for you guys, again, to lean on yourself because you can do it, no matter where you are. You can do it. Now, one of the best ways to handle your money and get rid of debt and do all we

just talked about is to check out Ramsey Plus. I will put a link for a free trial in the description for you. But check it out because this walks with you through this whole process because your money journey is forever. Like you will always have money, spend money, use money for the rest of your life. So in order to have someone to walk with you and to show you how to actually take control of it, that is what Ramsey Plus does. And it's so amazing. So make sure to check out that free trial. I have a very special guest on in this episode. Candice Collins is here. And her money story is just remarkable. You guys, when I heard it, I was like, man, I want her to come on. because I know a lot of people are walking this money journey

and probably have a very similar story or in the middle of their story that was just like yours. So, Candice, thanks for being on. Yeah, thanks for having me. I'm so excited. Okay, so let's start from the beginning. Tell me about how you grew up, what money was like in your home. Like, how did that all just shape you?

What was that like? Yeah, so small town, South Georgia girl here. But yeah, when I think about money as I was growing up, I knew that we struggled. So I knew that money was not something that came by easily. So I quickly recognized, I was around a lot of adults. So I quickly recognized the value of hard work equals money. But when I think about my childhood, we didn't talk about it a lot.

And as an adult, as I look back, that's probably one of the biggest things is when I think about money growing up was we never really talked about it. And I know that it's a very personal conversation. It's a personal topic. but it was something that we never discussed. But like I said, as a kid, I quickly realized we didn't have a lot of it. So, yeah. So it was kind of the anxious money classroom. It's kind of where I would put you, right?

It was stressful, but it wasn't talked about. So it was this, like, closed communication, but emotionally very stressed. So it put you there. So how do you think that that affected you? When you went out on your own, you didn't really probably know how money works, though, because it wasn't talked about. So what did that look like? You kind of get launched into the real world.

and what happened. Yeah, I probably did what most people have done, right? They get that small taste of like money and freedom and it's just like, spend, go crazy, do all the things that you never got to do when you were younger because you have that taste of what freedom looks like financially. And so, yeah, I was wild financially from day one, you know, and being one of the first in my family to go to college. It was one of those things where, you know, I quickly dove it. I, into the student loan life and quickly realized, oh, wow, I can get extra money as a result of this. And I just spent and spent and spent. So not on tuition necessarily.

On everything else. Yeah. On everything else. Tuition was kind of there, you know. But yeah, I was, according to me, living my best life, you know, the second I got out on my own. So, yeah. Yes. No, it makes sense, though.

And I'm like, that is. That's like the absolutely, the normal cycle. people get in. And so what was the first thing that kind of broke you out of that cycle where you realized, oh, wow, I don't have to live life like this? Yeah, I would say, you know, so I did my whole college career and then post-college, I got this job. And actually, let me, in the middle of that, so I was doing college, and then I took a year off to intern, actually at a church in Colorado. And when I got out there, my car died. And I'm like, I'm like the queen of car issues. I swear, it's like put a sticker on my forehead and say, car issue girl, it's me.

But Carr died, and so I had a friend, my best friend, her sister, who at that point had been like all about Financial Peace University. It had already started changing her life. And so she was like, hey, I'll give you some funds to help you get a car to get back to Georgia. Wow. But the only catch is you have to do Financial Peace University. And so that was like my first introduction into like, oh, there's like other ways to have a relationship with money out here in this world that I clearly had missed the boat on.

And so that was probably like my first like introduction into like this whole other world of like what we would call financial literacy and, you know, knowledge and discipline and all those things. So yeah. Yeah. And I would say that's probably the first time I was introduced. So what were a couple of things? Do you remember that thought that you thought, wait, what? Like, what? What the heck is a budget?

Is that what I? But, you know, when I thought about, I remember like learning the term budget. And I remember even then, as young and naive as I was, that budget to me felt very restrictive. It didn't feel freeing. It felt restrictive. And so it was like, okay, I know this term. I know this concept. But I think mentally where I was, I didn't see it as a positive thing.

I saw it as something like, okay, I should need to do this because I'm supposed to. but it was not enjoyable. So that was one big thing. And then the other thing I think, too, early on and that first wave of financial piece for me was just the idea of making a plan for your finances. And I think I grew up really thinking the answer was always more money, right?

Like any career, I mean, which is such a worldly thing. To think, you know, was like, just give me more money. God, I pray that I get more money and more money when really the solution isn't more money, right? the solution is the habits and the discipline, which I didn't learn that to way later on. But at that time, it was like, oh, a plan for money? Okay.

I don't know about this. So, yeah. So you went through, you learned some new ways of even thinking about money, again, that relationship with money. But then you kind of just dabbled at it, right? You didn't kind of, you didn't go head first. So tell me, tell me about that. Yeah, I dabbled enough.

I mean, honestly, oh, gosh, if she's listening, she's going to probably, I don't, anyways. But yeah, I dabbled enough to say, yes, I did it. And this was like back in the day, right, we got like the giant notebook of like the CDs and all the things. And it was like throwback to early days of P.U. But yeah, it was enough for me to say, okay, in the back of my head, I knew, hmm, there's something better out there.

But I didn't recognize at that time the first time how much my life really needed some structure, some knowledge. and some just great discipline when it came to my finances. Because I was still in that stage of my life where I was just truly enjoying, like, buying whatever I wanted when I wanted to and having a good time with it, you know, and not feeling like I want to be controlled by something that would get in a way of me experienced this life

that I had so drained of. Because growing up, I was told no a lot when it came to financial things, right? Like, if I wanted something, I was told no a lot, which looking back now as a mom, thank you. But at the time, you know, when I got to that point of my life, I was like, I don't get to say no to myself because I don't have to, you know. I'm the adult. I get to make the decision. I get to make all these, at the time, great decisions. So you realize, okay, I'm kind of half in, half out.

And you did that for how many years would you say? Oh, gosh, so many years. I would say that was probably around 2007. And then I don't even know what year it is right now. We're in 2021. Thanks, COVID. But 2007, literally probably all the way up to, I don't know, 2018, 19. I mean, it was a long time.

Yeah, so over a decade. Over a decade. Long chunk of time. You're kind of in and out. Okay, then recently, over the past years, what got you like back on board and you were like full out doing it? Yeah, so my church, who's really passionate about just financial freedom, being debt-free and all the things.

So one year, they offered a Financial Peace University for free for staff. And so I was like, what the heck? Why not? I know what it is. I kind of know the concepts. But, I mean, if it's being offered, I'm going to do it, right? And at that point, I was a mom. So prior to that, single, living my best single life that there is with no responsibilities.

But yeah, so fast forward, at that point, I'm a mom. And so I think even becoming a mom, I recognized, I've got to get my ish together. Like, I've got to get things together because I'm. I've got this little child now who's relying on me. I just knew there were stressors in my life that were directly related to finances. And I knew that was impacting my daughter, my parenting, our life. But even at that point, we weren't even living on our own. We were living with people because I couldn't even afford to live in our own space.

And so taking it that time as a staff person, I was like, okay, I can be, I can be into this. So I took it twice. Like I took it that first time as church staff. then we did it as an entire church a couple years ago right before COVID hit. And I got to lead in that stage. And so with that, that's where, because I had to lead, it really truly changed. Because I think there are parts of the journey where something happens, right? Like I said earlier, I'm the queen of car issues.

Car issue happens. It depletes my emergency fund. I'm like discouraged. Like, forget this. I can't do it. And it's so easy to just kind of fall off the band bandwagon, right? And so I think that's where it started to really click on. Candace, like what you do now in your life sets both of you up for some great things in the future,

or you can choose to continue to live the way that you're living, pension pennies with no budget, no discipline, no real care for your finances, and continue kind of this life and mindset that you've always lived, right? And I feel more pressure as a mom that I didn't feel when I was doing those same decisions as a single. but that was probably where things started to truly shift from me when I took it again for the first time as a mom with our church staff. I love that because it gives you this bigger picture, right? Especially when you have a little one in your life, suddenly you're thinking, okay, this life is not all about me.

It's them. So, Candace, what were some of the hardest moments for you when you decided, okay, I'm going to be fully committed to this process? Oh, goodness, so many. I think one of the things, too, was just, first of all, I think recognizing, okay, I cannot live the way, I cannot live my life the way that I've always lived it, right? And so being able, the power of saying no, no is a full sentence, right? So being able to say no to things that I typically said yes to was one of the biggest things. And also, I think, especially as a single parent, like,

getting baby step number one accomplished is, it's a feat in itself. And it can take a long time. And so I remember getting babysat number one finally completed. I was like celebrating it. People were celebrating it with me. And then, ban, within like a week's time, I need it for. for new tires. And I'm like, again, queen of the car issues. And I'm like, are you kidding me? You know, and I remember, I remember sitting there in tears like, ugh. I mean, cool that I can cover it, right? But still, just, I had just accomplished that. And so, but, you know, again, when I think about the community that I've surrounded myself with in this journey, though I was, like, disappointed, but excited at the same time that babysat number one did,

Babysab number one did the job that it was supposed to do, but I knew I had to start over, which took so much hard work the first time around. I had a friend who was like, hey, I have watched you work so hard at this, and I am so proud of what you're doing for you and your family. And so if you can get yourself to this point back on babystep number one, I will match the rest to get that emergency fund fully funded.

And so I worked hard at it, and I did it, and they matched the rest. And so we were back at babysat number one, within weeks, and it was just, you know, and that's what's cool, Rachel, is what I think about the community that Financial Peace University brings. You've got people out there who are on Babysop number seven, which is what we all aspire to do, who are looking for opportunities to do to things that they did for me. And so it's just like this cool sense, you've got people on the other end who are like, I can do this because this process, these tools have changed and saves my life.

And so it's just, I just get overwhelmed thinking about how many people have stepped in. And that was a huge moment for me to say, you know what? It's worth it to keep going because someday I get to do that later on. And that's exciting. But in that moment, knowing that those people cared enough to say, we'll help you get back there. Go do a little bit of work, but we'll help you get back there. Yeah. I mean, that's the life-changing thing, right?

And like you said, those people that are further along in the baby steps being able to give and that generosity that they're able to do to people like you on your dream, I'm like, oh, it's amazing. That's so beautiful. I love that. People stepping in in the gaps that you're like, yeah, okay, I can do this because of all the hard work. So that's incredible. Yeah.

And I think there's value in, I mean, anyone that knows me know that I'm pretty open about this journey. And I think being open about it is what kind of gives people the freedom to actually say, I want to step into some of those harder spaces in it. And so it's been about really just me sharing of being open, even about some of those darker parts of this journey. that actually gives other people opportunities to step in because I don't know what their story is, right? But then I learn about their story in the midst of them helping and serving us and that. And I've got tons of stories like that. But it's just, you know, don't be afraid to just open up and just share where you are on a journey

because people are out there listening and waiting for these opportunities to serve and give and live like no one else. Yes, that and just the encouragement of your story to others. I love that. So great. Yeah. So tell me your financial status today. Where are you at financially? Yeah.

Where I am right now is, so I am in baby step number two, which a lot of us probably know, it's one of the hardest steps because it can be one of the longest steps. And I've got about $61,000, a little under $61,000 left to pay all student loans. So credit card debt is completely gone. There's no card debt. It's all just student loans. at this point. And I'm just continuing to gazelle at it and let it hard. How much you paid off, total? I started off with about $80,000. So what that math is, I am not a math girl.

You are chipped in away. Hey, 20 grand. No, it's, yeah. I mean, I'm head in, you know, just diving. It's amazing. And you're a single mom and you're doing it. I mean, like, that's the hero. I mean, to me, I'm like, you guys, especially single parents. I don't know how you do it, number one. So you're incredible. But number two, the fact that you're saying, okay, I'm going to keep chipping away and I'm going to keep at it. And it's that consistency that really pays off. And like you said, even I heard your tone when you said, I don't have any credit card debt anymore. No car loans. Like even that just feels like freedom.

Like you have this taste of peace. We're like, okay, now the student loan, we hate Sally Mae. We're ready to get her out. I know you are. But it's proven that you can do it. Yeah. It's proven that you can do it. Then when you set your mind to something, it's different.

And that's the thing with people is you woke up a few years ago saying, okay, where I'm at today, I'm not happy with. So if you keep doing the same things, you're going to keep getting that result. And so flipping it on its head, again, for you, which I kind of love that you took finished speech university three times. I do because that's a lot of people's story. But that's a lot of people's story. But it's encouragement to say, hey, sometimes, depending on your life circumstance,

where you're at, everyone's story and journey is going to look different. And so you've just done a beautiful job sharing that. and I think for a lot of single parents, you really are. You're someone that people can look up to us. Okay, if she can do it, I can do it. So what encouragement do you have if there is a single mom watching this or a single dad, to marry kids and working and doing it all? What would you say to them?

Yeah, I think the biggest thing I would say that's been part of my success is surround yourself with people who are truly invested in you and your journey, right? Like, we've got people, because, again, finances are a personal, it can get touchy when you talk about it. And there's times where I felt insanely embarrassed letting people into the nitty gritty of my financial life. And when you have to have those conversations, right? Typically when you have those with your spouse as a single, I don't have that other person have that conversation with. And so I realized how valuable it is to have other people in my life that can have those conversations with me that I can say, hey, here's my budget. Help me look at it.

Hey, I really want that yellow coat. Please talk me out of it because that's how. as well, but surround yourself with people who care for your future as a parent and as a person, because that directly impacts the future of your kids and the generation and what you can do to raise your kids that be financially free themselves. So that's probably my biggest thing. And the other thing is, don't be afraid if you have to start over. Like, give yourself some grace because, again, I've done it three times and I have messed up amidst all three times. And sometimes you just got to say, all right, hey, it's okay. messed up, but hey, I've got the tools, I've got the resources, I've got this community around

me that's going to cheer me gone, and I can keep going forward because it's not the end of the world if a mistake happens. And so giving yourself grace in that, I think, is huge. And what you do right now with your finances actually impacts everything that you do as a parent. Like, I have learned my stress, my mental health, all those things are directly impacted by my finances. And so I just think it just completely gives you a whole sense of freedom as a parent even, just to keep going, go after it, and your kids will thank you for it later on. Absolutely. Well, I think those are two really great points because I think, especially after the year we've had in 2020,

there's so many stressors in life that we can't control. And we talk about that a lot on the show, but there are things that we just can't control. I mean, and we can sit there and wring our hands all day, but you can't control that person. You can't control Washington. You can't control the pandemic. You can't control these things, but the two things you mentioned, you can control. You can control the people you hang out with. And so that community piece being known and being cheered on and loved in your journey is huge.

I mean, people that, yes, it's so, so massive. And then number two, controlling the level of grace you give yourself that, like, we all make money mistakes. And to say, you know what, I'm going to choose to get back up. And I'm going to choose to say, you know what, life is going to happen. But I'm going to continue to choose to move forward. And all of that are things in your control that you get to get up and decide. and that's a big part of winning with money is realizing, okay, I'm the one in control. What can I do today?

And you've done that, girl? Like, Candace, you've done it. And it's incredible. It really is. It's absolutely incredible. So. Yeah. And our kids are watching, right?

Like, our kids are watching every moment, every decision. I mean, it's just to think I've got those two little eyes watching me every day, it just makes it that much more worth it. So, yeah. Absolutely. Well, and her money story, like you said, is going to be completely different because you're doing what we talk about, changing your family tree. So you're absolutely incredible, Kansas.

Thank you so much, so much for being on and sharing your story. And all of you watching that you've had to start over, whether it's the budget or your entire money story, all of it, Candace is living proof that you can start over, continue down that road and actually gain traction and pay off 20 grants. I mean, that's pretty awesome. Pretty awesome. Well, thanks again, Candace.

I so appreciate you. Thank you so much. Thank you. One of my favorite things I get to do is take your questions. And now, thanks to technology, we actually get to have the real-life person with us asking the question. So today I have Marissa with me. Marissa, welcome to the show. Hi, it's nice to be here. Thank you. Okay, and we were just talking before we started filming, but you're actually in your classroom because you're a fourth grade teacher. Yes, yes. So we're trying to catch us in at the end of the school day. So

I love it. How are you doing with COVID stuff? Has it been crazy or have you guys been in school? We've been in school for most of it. We had to have quarantine a little bit, but we've been able to follow procedures and the staying apart and doing really well. I know teachers of, man, you guys have had a lot to deal with for sure. So we appreciate the teachers. We love the teaching community out there. So thanks for all you do. So tell me a little bit about your money journey, where you're at. That's kind of like the state of the union, if you will, with Marissa and her money. Sure. So I had sent him as my question. I'd always kind of grown up in a family that had a money scarcity mindset that struggled

with a bankruptcy at one point. And that was kind of formed a lot of my teenage years. And so then in my 20s, I spent a lot of time wanting to make sure that that wasn't something that happened to me. and so also focused a lot on debt payoff. And so now I'm at the point where I did have a lot of student loans, but they are now like a month away from being paid off. Oh, congrats.

How much have you paid off? A lot. I don't even know anymore. It's got to be over $30,000 at least. Okay. Awesome. Yeah, I don't even remember. But yeah, so it's not the point where it's so close to being. done and have been able to pay a lot quicker and towards the end as well just with being able

to snowball. And so now I'm at a point where I want to be able to look forward and say, okay, I want to step out of that like scarcity mindset and instead be thinking, oh, I don't want to just go spend that money that I now have available. I want to be wise with it, obviously with the baby steps, but also just like struggling to really move from that mindset since it's been a part of my life for so long. Yeah, for sure. Would you say majority of people that you're around, like your friends, your family, do a lot of people kind of lean more in the, more in the genre of they struggle with money? They're kind of in debt. They're kind of in that scarcity mindset. I think it's more of a mixture of different people. Yeah, I'd say it kind of.

No, that's good. Yeah, yeah, yeah. Well, I was going to just say, you know, I think that that's one influence that we don't think about a lot, but almost, because what you're saying is exactly right, it's your mindset that has to change because your numbers have changed. Like, you're going to be out of debt, Marissa, completely in a month. Like, that's insane, right? And so while your numbers are changing, you're kind of still sometimes can be in that mindset. And I find that true for a lot of people once they have sacrificed some people for years to get out of debt. And the first time they're able to say, okay, you know, I still want you to be, you know, gazelle intense, if you will, I still want you to be motivated to get that fully funded emergency fund. But especially after that

step, it's like this feeling of, okay, what do I do now? Because I actually have money. Like, well, what is this like? And I feel like that's something a lot of people don't talk about when it comes to personal finance is it's this idea that you have to emotionally catch up to where you are. Yeah. And for you, it's like you haven't even been able to emotionally catch up with where your numbers are. And so for you, do you feel like when you do, you're nervous and you're scared, a little fearful, that you're going to, what, just waste money, that you're going to do something extreme? Like, what is the actual fear, do you think?

Yeah, just kind of waste it. Just to almost be like, I don't think that I would do anything extreme. But then just also would just be like, okay, so Starbucks here and Target run here. And that's no big deal anymore because I now have the funds to do so. And still focusing on the next set of baby steps, but also wanting to really have a better, like, attitude to it overall and not just say, okay. And now I've moved on to these steps, but instead say these are the new, like, goals, perhaps. or whatever that kind of looks like. Yeah.

I think that's where my question is. No, for sure. Yeah, no, that's great. So I think a couple of things. I think one, the tactical but just true, the tried and true budget, that's going to help you a lot. And that really is your permission to spend. That's being able to say, okay, I have this amount to spend for out to eat and maybe

Starbucks falls in that category. And I have the money there. Like, I can spend it. It's what is appropriate, appropriate percentage. of my overall income. This is right. You have a plan in place. That's why I love the budget.

It's because it does take that fear, that shame, that guilt, that questioning, any of those feelings and emotions you have. It kind of can't put them aside in a tactical sense because you see it on paper. And you're like, no, this is it. Like, I have the money. It's here. I can take a deep breath and actually spend and I'm not going out of control. I'm not being wasteful.

This is the plan. So that kind of gives you the black and white answer. But there's still that emotional piece that we're talking about, right? that you kind of have to emotionally catch up to the fact that you can go to Starbucks, right? And I think some of that just takes practice. It's almost like you're in this new way of life and these new habits are being formed. And it's going to take some time. So even, you know, we talk about change is uncomfortable and change is uncomfortable when you're doing something new.

Even if what you're doing that's new is good and exciting, like where you are. Like you're actually getting to spend money and that's new and that's exciting, but it still can be a little uncomfortable. So I think it will take a little bit of time to kind of settle in to say, okay, this is really where I'm at. But I think that budget is going to give you a lot of guardrails as well. But also the people in your life, like we kind of mentioned earlier in the call, that that's important to have a few people in your corner that are cheering you on. Are you single? Are you married? What's your relationship status? I'm single. Okay. So I would have like a good girlfriend if you have one or someone that you just love and trust to say, okay, hey, here, I just want to be.

be able to talk through some of these fears that I have or these questions, like, even to have a good friend, like, I know it's silly, but you said Starbucks and it made me think, I'm like, yeah, even when you're in line and you're like, hey, Sarah, or whoever the girl is, you're like, okay, I'm in line for Starbucks, and I don't can pay for it, but like, I have this shame talk in my head saying, like, I shouldn't be doing this, I shouldn't be doing this, but I can, it's there. And for someone to say, yes, Marissa, you're okay, like almost giving you permission, right? Having that person who's cheering you on in your corner, even for something as small as a Starbucks coffee to be there with you. And I think that that's a really important piece of this, because money is

not just transactional, it's relational. And so to bring someone or people in your life that you can have those conversations with, I think, is huge. That seems really freeing almost because then it's like, okay, you do have this budget where you can spend this much and not have to worry about it or feel that that guilt or that shame. But then still also know that I have all these other goals with the next instead of baby steps that I want to keep going forward with. And so I think that's where I wanted to find that balance. And so, yeah, that seems really helpful. Yeah, and even for something like Baby Step 3 that you're going on

is your three to six months worth of expenses. And that can be tiring too. Like it takes a while to get that Baby Step 3 even complete. So even breaking it down into bite-sized pieces like we do with the debt snowball when you're paying off debt, doing that, saying, okay, once I have one month down, I'm going to go out for a glass of wine with a friend or like have like a little bit of a celebratory thing right like okay i did that like to be able to have these little wins along the way and i love bite-sized stuff like that's so my personality even if i'm

making a to do list at home i'll like type stuff on my phone that i've already done just to put the little emoji checkmark next to it right like i'm like i just oh i need to feel like i'm checking things off so even breaking down babysit three into little bite-sized pieces just for your own sanity feels good because you can still feel that progress so that might help too because it can seem daunting at times, right? Or you're looking and you're thinking, oh, wow, that's so much. But you got it, girl. And you have no debt. So you have income. When your paycheck hits, it's all yours, which is so exciting and so freeing. And that's when you get to do some amazing stuff. Yeah, super exciting. Awesome. Well, thanks, Marissa. Thanks for calling in so we could chat a little bit and hear your

story. And I know it's extremely encouraging for a lot of people because everyone watching is, you know, in different parts of their money journey. And I know it can be defeating at times. It can be exciting at times. So it's fun to kind of walk through it with different people. But you're kind of at a celebratory point. So I'm excited for you. And congrats on being debt-free next month. So exciting. Thanks, Marissa. Well, I know so many of you have questions like Marissa. And again, your debt-free journey is something that you really want to be intentional with. And so I'm so glad that she asked her question. And I hope that that answer helped you guys on your journey. Now, if you have you, have enjoyed this podcast, make sure you click the subscribe button. And if the spirit leads, you can leave

a review. And now, you guys, again, money is something that can be really stressful, it can be intimidating, but it also can bring you a whole lot of freedom. So continue to dive in and be intentional when it comes to this part of your life. That way, you can control your money and your money doesn't control you. Because my whole goal for you is to take control of your money and create a life you love.