The Rachel Cruze Show - Is Everything Really More Expensive in 2021?

Episode Date: August 9, 2021

In this episode of The Rachel Cruze Show, you’ll learn: Why might feel broke right now Which is better: renting or buying? (with Courtney Dyksterhouse and George Kamel) How much you should spend on kids’ sports and hobbies Connect with Ramsey Personality Courtney Dyksterhouse on Instagram @courtneydyksterhouse Connect with Ramsey Personality and host of The Fine Print podcast, George Kamel, on Instagram @georgekamel Resources: Zander Life Insurance Learn more about your ad choices. Visit megaphone.fm/adchoices

So I think for anybody who's going through this season right now of feeling the pressure of buying a home because they feel like they're missing out, that FOMO feeling is so real. I feel that in so many other levels, but it is really important for us to identify. Okay, I feel this way. That doesn't mean that I need to make a decision based upon it. I can hold. Hey, guys, welcome to another episode of the Rachel Cruz Show podcast. I'm so glad that you are here. And in today's episode, I'm going to be interviewing two of our Ramsey personalities, George Camel and Courtney Dexter House.

and we're going to talk through which is a better option, renting or buying a home. You do not want to miss this conversation. And then we're also going to tackle the big topic of kids and sports. That's right. Sports can get expensive, so we're going to dive into that. But first, let's talk about why everything seems so expensive in 2021 versus when we were growing up. So is that a true statement or a false statement? Well, we're about to dig into the numbers right now. So I was having a conversation with a friend the other day,

and we just thought, man, like how we grew up was, you know, you like rode your bike around the neighborhood, and you, our dogs didn't even have fences. Like dogs ran everywhere, kids ran everywhere. You played capture the flag until it was like, you know, dark outside and you have parents screaming, come in for dinner. And, again, I live in a wonderful part of Nashville, all of that. That is bad, but I just find maybe it's our people.

parenting or the world today, we're just exposed to so much. Like, I feel like we're just a little bit more, like, nervous with stuff. We feel like you need to watch our kids more. There's now phones and iPads and screens. Everyone has to have two cars. Everyone is going on multiple vacations a year, it seems like. I mean, people are just busy and they're doing stuff and they're traveling and sport. It's just, life just seems crazy.

That's how I feel. It just feels so different than when I grew up. So my friend that I, we were talking about, like, man, what is the difference, like, between our parents' generation and, like, how they did things and us? And then I was thinking, well, financially, it has to be so different. Like, in 2021, you guys, our finances, the state of our finances is so different compared to our parents. I mean, you can just take the subject of inflation, right? So the current inflation, year over year, is about 5%. And that is the highest.

It's been in 13 years. So as an example, rental cars are up 100% year after year. I mean, it's just, it's crazy. So, again, what we're dealing with today, it is different than our parents, but I really wanted to compare the two to say, okay, if we had the same things our parents had in the 80s, 70s, 80s, money-wise, what's the difference? So let's dig into some numbers. We're going to just do like a little fun math.

Are you ready? So the average annual household income in 1985 was 23,000. $30,620. And you're thinking, oh my gosh, our parents just lived on like just above $20,000. How did they do it? Well, let's talk about inflation. Remember, throw inflation in. So if you do that percentage, then what it's worth today is actually $60,270. So the household income in 2019 was $68,703. So we actually are making more on average than our parents did. And so I always find that so interesting because I thought in my head at first, well, of course we're making more because both parents work outside the home. Like I just kind of had this picture like in the 70s and 80s,

usually like serotypically like a mom would stay home, right? But again, I pulled the data from that and according to the Bureau of Labor Statistics, the percentage of dual income households in both 1985 and 2017 were right around 55%. So just over 50% of couples back the and today are working outside the home. Very interesting. So we make about 14% more money than our parents did. But let's compare some expenses, shall we? So, 1985, the average home size was 1,785 square feet. Today, it's 2,261 square feet. So we have bigger houses today, which is not a shock. I feel like, yeah, bigger is better. Always happening, right? So let's put some mortgages on those houses. 1985, the average mortgage payment was $420.

But with inflation, it would be right around $1,073. But the average mortgage payment today is $1,387. So we're spending about 30% more than our parents did on mortgages. So our mortgages are higher than our parents, for sure. But listen, one thing you won't break the bank for this year is life insurance. Just a little friendly reminder. if you don't have term life insurance, you need it. Not whole life insurance or gerber life insurance.

Those are scams that people have been falling for for decades. And those products are really expensive and they don't pay out enough. But anyone who has a spouse or a child dependent upon their income needs term life insurance. And you guys, term life insurance is affordable. You want to choose a policy that would pay out 10 to 12 times your annual income. and that money is going to keep your loved ones covered in case something happens to you. And getting a quote on a term life insurance policy is so easy with Zander insurance. So you just plug in your info at zander.com and Zander does the rest.

They find you the best rates at no cost to you. They make it easy, convenient, and affordable. So go to zander.com and get your free quote. All right, let's get back to our lists about our parents. So we talked about houses. Let's talk about cars. So a brand new Honda Accord in 1985. Get ready.

$8,845. Now, if you account for inflation, that would be about $22,569 in today's money. A new Honda Accord today is about $25,000. So we are paying more for new cars today than our parents did back then. In college. Oh, college. get ready to get sick on this one. You ready? You have four-year college degree in 1985. The tuition was about $5,500. With inflation, that's $14,045 in today's money. Yeah. And the annual cost of tuition in 2012

is going to be $28,120. You guys, it is crazy. We talk about how expensive colleges these days, and it's true. With inflation, it's increased over 100%. So remember, stay in states, go to a community college if you need to do. Go find another video at college because there's options. There's options out there, people, I promise. I promise. Not all hope is lost. Okay, not everything, though, in the 80s was cheaper.

So here's some things that are really expensive in the 80s that our parents bought that we can save money on. A 20-inch color TV was about $500 in 1985. Yep. Remember those TVs? You didn't even have a remote. You got to go and change the dial. And then it moved to the TVs that were like big boxes, like big screen TVs. I remember those. I watched pop-up video and VH1 and those TVs. Yep. So again, that TV was $500, but with inflation, it would be $1,275. And today's money. And of course, you can buy a bigger, thinner, fancier TV for a $1,000. fraction of $1,200. So yeah. And TVs, man, they were like a status symbol. I mean, it was like a big deal.

If you had like a nice big TV, wasn't it? I mean, it's just crazy. It's crazy. And so I think, what are the things today? Well, like a new iPhone that people pay a thousand dollars for. Maybe in 40 years, we won't be paying $1,000 for our phones. Maybe it'll be a fraction of that. We'll hope. We'll hope and pray. But here's the deal too. Back then, people were not saving for retirement like we are today. So in 1987, the average retirement balance was only $9,862, which is just under $24,000 today. You guys, that's not a lot. And I don't want that for you. I don't want that to be your retirement account, right, when you're reaching this age. Like, I want you to be able to retire with wealth so you can change your family tree and money is not something that controls you. So that's why I love

teaching the Ramsey Baby Steps because it helps you break free from debts. So you actually have the money to put away for retirement. So what can we take away from all of this? Well, the most important part is that our parents did more with less. And when you wish that you could just step out of college or enter into Newlywood Life and have everything your parents have today, you have to remember, again, that they worked hard. It took them decades to get there.

And the price point, everything was a little bit different back then. So you have to remember that. Give yourself a break. It's okay. you do not have to keep up with your parents' standard of living. And I say that a lot to people. Don't compare your parents' life to your life right now, because, again, there's this, like, this, like, 30-year gap usually, right?

But I've also heard people say, yeah, my parents, like, they're boring. Like, they're not buying fun stuff. They've just settled or their life is too simple. But, you guys, there has to be a balance, though, of what your parents are doing and what we're doing today, which as a world is costing $800. $119 billion in just credit card debt. So obviously our parents have figured up something that we're not figuring out.

Yep, the average American carries a balance of $6,000 on their credit cards. And over half of people are not paying them off every month. So this life over here, obviously financially is not a success. And we get sucked into debt because we want stuff right now. And we just have to be careful because the key to success is living on less than you make. And that is an old school principal that our parents lived on more back in the 70s and 80s that we can take a little note from because it looks different today. I get it in 2021. Our life looks different. But man, not having our stuff absolutely control us is something that

we really have to concentrate on. So hopefully that helps a little fun game between the comparison of our parents and how they raised us in the world they were living in versus today. We're going to dive in to the big debate. Which is better? Owning a home or renting? Hmm. Well, we are going to dive into that, which I'm so excited about. And here on the couch are two Ramsey personalities, George Camel and Courtney Dexter House.

Guys, welcome to the show. Thanks for having me. It's so good to be here. Oh, I'm so glad. Well, George, you've been doing lots of fun stuff. So much. So much. A lot, actually.

You've been very busy. And I'm glad that you're back here. And Courtney, you've been hosting so many things going on at Ramsey from events to to podcast everything. Yes. It's been great. Thanks for being here and having this conversation. Of course.

Okay, so we're going to start out the debate with some facts. I feel like the moderator. The moderator? No. Do we win money as a game show? Moderator. Moderator. The moderator.

The moderator. The moderates things. Okay, so according to the Federal Reserve, as of 2020, this was interesting. 44% of Americans own a home with a mortgage, 27% rents, 8% didn't do either. So I'm guessing they live with their parents, maybe. I don't know. And 21% own their homes free and clear. Awesome. Which is amazing. So hopefully they're out of all debt and have an emergency fund and funding retirement. Hopefully they're going with the Ramsey Way. Yes, all of seven baby steps. According to statusa.com as of February, the average monthly rent in America

was right above $1,100. And the monthly mortgage payment was $1,600. So obviously when it comes to owning a home, It's going to probably be a little bit more expensive, not just because of those statistics, but also you have to pay, oh my gosh, HOA fees, property tax. I mean, there's a list of stuff that happens. And when things break, you're the one that gets to replace it when you own a home. So I brought you two on because I wanted to ask you, George and Courtney, do you rent or own a home? We rent, rent an apartment, and we've been doing it since we moved here. Nice.

To Nashville. I bought a home about two and a half years ago. Amazing. I am a homeowner. You are a homeowner. Great job, George. Thank you. And Courtney, great job to you.

Because what you're going to find in this is that depending on your situation, your life, your money, everything, both roads are great. Both roads are great. So let's start with you, Courtney. Yes. What caused you guys to rent versus buy? Yeah. Well, when we moved here in February, end of January, early February, we didn't know where we wanted to be in this area. because there's so many pockets and different lifestyles that you could choose.

And if you want to be in the rural area or if you want to be in the city or the suburbs. And so when we came, we knew, okay, well, we're going to rent because we don't want to plant roots in a specific area if we're not super passionate about it. And we don't know the full context of the community. And, you know, we're not planning to have kids. But if that happens, like the school districts. And so before that, though, we owned a home and we sold that. we were able to finish off our emergency fund, six-month emergency phone, which was awesome,

and put me through school. But now renting, it's kind of great. Yes, okay, so I know this about you. I've cheated because we're friends. I know your situation. But I think it's always fascinating. I love talking to you about this. From that feeling of owning a home

and then renting an apartment, like that has to be whiplash. It was. Actually, I thought about this a couple days ago. my in-laws came to move us in, and I went up to go see the apartment first because everyone was unloading, and I went up there, and I opened the door, and I just stood there, and I almost cried. Because I was so unhappy knowing we went from a four-bedroom to this two-bedroom, and I just saw this white-walled space with all the echoes because there's nothing in it, and it just felt so defeating. I felt like I was taking a step back. Yes, yes. And that's, I think, what a lot of times we tell ourselves is that if you're not owning something,

if you're not owning a home, then you've actually taken a step back. But if you look at the facts of our life, financial facts, we've taken a lot of steps forward. And renting for us is so great because I don't have to think about anything. I don't have to think about all the things. When they break, I'm like, boop, boop, boop, come fix it. And they just fix it. And a magical person, if you know. Yes, they do.

And they're so fast. The maintenance. You just need to find a place that has amazing. maintenance because you'll just never want to leave. I'm like, I'm not in a rush now. I think we're good. It's pretty nice. It's pretty nice.

I love that. Oh, so good. And George, homeowner? Home ownership. Talk me through, like, through you and Whitney, you got married. Like, taught me through your whole story. Yeah, so we were renting, and it had its ups and downs. Some of the downs are realized, I don't like neighbors that close to me.

We have neighbors that work from home with flexible schedules, and they had karaoke parties every night in their apartment. which sounded like a great time. But at 10.30, when you're trying to sleep, and you can hear someone singing Katie Perry, you're just like, get me out of here. And then what is going on above me? Are they rolling bowling balls around?

What is happening? They might. But I do, I agree with Courtney. There are so many blessings that I didn't even realize once I moved into my home. I'm not a DIY guy. I'm not the first guy to go to YouTube and go, I'm going to fix this toilet myself.

Do you remember we had a discussion about, we were on the road on an event or something? We were talking about things that you love or something, and you were like, I just see Winston to teach me about, hey, I get a hammer or something. I don't know. She laughed. I was like, seven, one, what is a hammer? It was a new show where Winston teaches me how to do like men stuff and like turn wrenches,

stuff that I never learned. So I do think there is a big blessing when I could call that guy or email the maintenance crew and be like, hey, come fix my toilet or the doorknob broke and I don't have to deal with it. And just recently, just this past week we had some bad weather. And all of a sudden I look up and. No. dripping water in our bathroom. And I'm like, I don't know what's happening.

Why is this happening? Get a hammer. Exactly. So you've got to call the HVAC company, and they're coming by. It's 12.30 at night, and I got to pay the guy to come take a look. And I just thought I could have been in a department,

and I could have not had to deal with this. So it's got a lot of blessings, but there are some downsides as well that people need to be aware of, including just the money. Like, I didn't realize how much of a money suck a house can be. What now? while you're building equity, and it feels good because you're building towards something, right?

We always hear that. You want to be building towards something. Rent is a waste. There's still a lot of expenses you've got to be ready for. And luckily, I'm prepared because I do things the Ramsey way, but it still hurts. Oh, oh, oh. Yes.

When you find water is like my enemy with house stuff. Oh, yeah. Like in our crawl space, we had a little bit of water, and it was like, oh, get the pumps, get the faint. Like, yes, it's so expensive. It's just like, oh, my gosh, it just couldn't turn bad so quickly. Oh, yeah. But you guys, you and Whitney have done it an amazing job,

because you guys, I mean, you're almost on Baby Step 7. Yes. Next year, we're months and months away from paying it off. So that is, that is huge. It feels like I ran a marathon financially. So we're so excited for that. It's incredible. Because when you guys built, because you built.

Yes. And you, I remember talking to you through the process, and you were so diligent on the budgets and how much it was going to be because you were running all your numbers. You've got to be your biggest advocate, especially when you're building. And there's so many things you have to fight for and decisions to make.

we made the bold move of planning a wedding while building a house. And like, what's the grout color? What are you guys going to? I'm like, I can't make a single decision. It was overwhelming. So you've got to be ready for that when moving. There's a lot of decisions and a lot of things you've got to budget for. Like furniture, I was like, oh, I have to buy a fridge.

I got to buy a washer drive. There's thousands of dollars? No one told me. When you're renting, it's all just there. And you go, oh, this is nice. This is great. It's convenient in that way. I know, I know.

Well, I love this. I love this conversation that we're having because, I think one of you guys said earlier, but it's true, people think there's like a right or wrong way. But here's the deal. It depends on where you're at, your life situation, where you are financially, all of that. So we do really recommend you're doing it, Courtney. Seriously, like if you're moving to a new town or if you're maybe getting married for the first time and moving to, like, I mean, all these big life changes are happening. When it's that stuff, just breathe and rent for a little bit and it's okay.

You're not, you're alive. Yes. I'm alive and I'm really happy. I'm really happy because I struggle with anxiety and I'm going through a master's program. I started this new job. We got a new dog. And I told Ryan a couple weeks ago, I said, I cannot imagine owning a home right now because of how much, one, you have to put into it.

And then two, how much you want to put into it. You don't want to just live in a space that isn't furnished. You don't want to live in a space that you don't like coming into. I'm all about how does a room make me feel when I walk into it. And so knowing if I'm not able to feel like my space is my space, like the quality of life is imbalance. And so I think it's so important for us to not just look at, okay, this is where I should be in my life.

Well, who is defining the should? Like, who is telling you that you need to be in this certain place? Because for Ryan and myself, like I mentioned, we've made so many financial strides forward that would not have been able to happen. if we just took all the equity that we made in the home and then put it into another home. And especially in this market, we would not be able to even get one. Yes. You can get a shack on the side of the road.

Yeah. It's very difficult right now. Very difficult. Oh, my gosh. I know we kind of, we got in before everything. You know, that is one of the blessings. And a hot housing market, you're like, I'm good. Oh, my gosh.

Oh, my gosh. I'm going to hold it. It's so crazy. Like all over the country. It's just, it's nuts. And I think a lot of people were wanting to buy, planning to buy, and then it went crazy. or they're now just itching to feel like, oh, I just want something now, I just want to own something.

Like both of you speak to that contentment part, decision-making, all of that when it comes to buying a home or choosing to rent. Yeah, one thing, if we look back on even the psychology of decision-making, where we have our emotions and where our decision-making are, they're, one, right next to each other and connected. So that means that decision-making cannot be outside of some type of emotion. Some emotions are bad. So us feeling pressure to make a decision to purchase a home, we might make it quicker

based upon this feeling of anxiety or this feeling of feeling less than. I need to measure up to something. But it's so important for us to consider our emotions in each decision or to at least identify. I am feeling this way because we make better decisions when we identify that we're feeling a certain emotion toward those decisions. And so I think for anybody who's going through this season right now of feeling the pressure of buying a home because they feel like they're missing out. That FOMO feeling is so real.

I feel that in so many other levels, but it is really important for us to identify, okay, I feel this way, that doesn't mean that I need to make a decision based upon it. I can hold. That's right. I can hold and I can wait. That's okay.

It reminds me of that quote, no one makes good decisions when they're panicked or drunk. And it feels like a lot of people, it might be both right now. I don't know, but you're talking about FOMO, and I love this idea of Joma, where it's the joy of missing out. And so what if you could take this time and go,

you know what? This gives me an extra year to save. while the housing market cools off and what if we could get to 20% down or more? Yes. How would that lower our payment? Oh, we don't have to pay a PMI and throw that money away to the lender.

So I love reframing things and going, this is a great time to save up for that house and do it the right way. And you know what? We can budget for some furniture. We've got some time now. So having that patience and going, now is actually the worst time to buy.

So let's not get panicked into buying something. Yes. And I feel like that panic can create that urgency where you feel like, oh, gosh, we have to make a decision. We have to go, we have to go. Well, your logic turns off when that happens. And you get desperate. And you start going, yeah, this house isn't great, but it's a fixed wrapper.

Let's just get in now. And then you move in, you're like, what did we do? Yes. And what's funny is I feel like this is like kind of a grown-up problem, like once you hit, like, being a grown-up, that you think certain things in life will fix stuff. And I feel like a house is one of those things. If I could just have a house, if I could just have a bigger house, we have more room, it will be better. If I could just, and just, you still carry who you are into that next space. You don't change.

Like what Dr. John Deloney says all the time. You carry you with you. Yes, it is. I know. I mean, I remember that so clearly. I feel like we talked about this on your podcast, George. But I remember with Winston and I, when we were doing our build, I remember I had moments and I'd be like, oh, and I'd even say it out loud, like, oh, we're in the new kitchen.

Like this X, Y, and Z error Winston stopped me one day. He was like, when we're in the new kitchen, Caroline's still going to throw macaroni to the next floor. Like, it doesn't matter what kitchen we're in. And I'm like, I know, that's true. You know what I mean? And it's true, it doesn't solve, your stuff does not solve your issues. And so I think that some people, though, they hang their hat on, okay, if I could just have this, it'll be fine. And that creates emergency too.

So we have to remember that, right? But that part of our decision making has to turn down. Yes. Okay, so through this whole discussion, you guys, what do you think? What do you think is better? Renting or buying. Okay, I want you go first so I can have the opposite answer. Can I be asked the diplomat here?

Both are great depending on where you are in life. No, you have to choose. Oh my gosh. I mean, I have to choose apartment life right now because that's what my, that's my truth. I mean, that's my life. And I love it. Yes. I really do. Now, do I want a house eventually? Yes. Don't already know what I want my kitchen to look like? Yes. But I'm fully content and so much gratitude for where we are. It's great. That's a great. So good. I'm going to go the opposite. I'll beat it. I'll beat it. I'll beat it. Home ownership is the way. And it's part of, I'm going to say this. It's part of the long-term financial plan. So short term, and right now, depending on where you're at, and we know the Ramsey way of doing things,

I want people for the house to be a blessing and not a curse. And so renting is great, but hey, when you're ready, get you a house and then pay it off. And don't pay it off in 30 years, pay it off in 15 or 5 or 3, so that you can then move on to your other goals. And so that's what it's all about. It's part of a bigger plan for me. It's not the end-all-be-all. There is no dream house because, like you're saying, you're going to be in that dream house and go, man, that backyard just isn't quite what I wanted it to be. And I dreamed of different cabinets. And so have that contentment.

But you can aim for that long term. But depending on where you live, you know, I'm from Boston. Being a homeowner is not a feasible thing in that area or in L.A. or New York. And so depending on where you live, renting could be a thing you do for 20 years if you're living in New York City. And that's okay in that season of life. So home ownership is my final answer. So good. But if you want to be a homeowner and you're not in that place after you do the math and you're

realize I don't have enough for 20% down. Do math. Yes, you're all about the math. Everyone should be all about the math. But I was not, I did not use to be all about the math. And I realized math is kind. And math gives me actually some confidence in my finances. But if you're not in that place where you feel like you can go ahead and purchase a home, this market's crazy, something that Ryan and I did when we were looking for the apartment here, because it had been a few years since we did the apartment life. One, we did not rush it. I think because when we don't own something, we think we can just make a decision quickly. It's like, oh, it's not our forever.

So we were very intentional about shopping all of the apartments in the area. We directly contacted the people who were there. So rather than just taking a price that was online or signing up through that, we made sure that we spoke to the people who were at that place to see if there were other options available. You know, if there was an apartment that had been vacant, there was one apartment compost we spoke to. It had been vacant for, I don't know, like six months for some bizarre reason. And it ended up, that's not the one that we wanted.

but the price was so cheap because we asked. We wouldn't have, it wasn't on their website. We had to go and we had to ask them with that too. It's actually a human. Yes, there's actually a human. And because of that, rapport building does matter in those situations. Sometimes we don't think, oh, they're just trying to get me in and out, and they don't really care about me.

Most oftentimes, that's probably true within an apartment complex. But they do respect the people who go the extra mile to build that rapport, and they have a little bit more leniency to maybe allow you to let some things slide, or do I have to pay that? Like we got, you know, from a Ramsey discount, simply by working here, I got a discount on an apartment. Oh, that's awesome. So, yeah, for the initial payments.

Just ask for the Ramsey discount. Who knew, people? Yeah, I know, some of them. So it's important to ask those questions to say, you know, hey, I work here. Hey, I'm a member of this. Do you have anything that applies to this for a discount? The worst they can say is no. Yes.

And then you move on. That's right. I love it, you guys. Well, and I love thinking outside the box, right? I feel like sometimes we get you get put into this thing of like, this is the only track you need to do. Just focus, focus, focus on that. I'm like, no, no, no, no, no.

Look at your life. Look at the math. Look at the money situation. Look what's going on. The life circumstances, you guys, is a big deal. And then the financial. So when it comes to Ramsey, we always say that you want to be able to put at least 10 to 20% down. You want your mortgage payment to be no more than 25% of your take-home pay and a 15-year mortgage versus a 30

so that you can be out of debt more quickly. So that you're completely out of debt. I mean, it's just, it's an amazing thing to get to that baby step seven as fast as possible. So incredible, you guys. Thanks for sharing where you're at because I love it. I love that there's not a right or wrong here, right? Credit cards, wrong. Budget's good.

Rinsing or buying? Oh, totally depends on what's going on. Both. And permission to rent. Yes. Permission to buy when you're ready because it's a blessing, not a curse, all of it. So I appreciate you guys so so much. Okay, where can everyone find you?

Well, I'm on Instagram, and I always post fun dog stories because we're obsessed with my dogs. But you can find me at Courtney Dykster House. on Instagram. And you can find me at George Camel on Instagram, Twitter, all those places, and you can subscribe to the fine print, our newest podcast on the Ramsey Network, where we cover topics like this, Rachel. I know. We were just actually talking about housing on it. Yeah. It's a big conversation, you guys. Okay, before I let you go, I want to know, what's one thing you're doing with your money that's creating a life that you love? Ooh, I'll let you go first on this one. Okay. This just happened last week. My wife, Whitney,

who works here, she found a Peloton on Facebook Marketplace. She's been wanting one for a long time. And we bit the bullet because we had it. We'd been saving for it. It was in the budget. And we went for it. So now I'm a Peloton owner. You owe a house and a Peloton, George. Are you like a, you're like a grownup?

This is adulting. My fitness journey starts me. You couldn't get it up the stairs. We have to mention that. It was very heavy. How is it? How is it? I get the hype now.

You do. You bought in. It created a life I love. Wow. He bought in. It's so great. This is not a sponsored post. Peloton, if you want to say,

sponsor. We can. Yeah, we would consider it. Yeah, we would think about it for sure. What's your Peloton? What's my Peloton? Well, my Peloton is our house. It's so rewarding to see our fund just grow and grow and grow for our house. Save for the house. We have never had this much money in the bank. Like, I cannot believe how much we have changed, even just our conversation with money and then our situation with money in a year. And so I would say that that is a life that we love, knowing that one we're on the same team financially, and then two, actually seeing our money working for us and knowing that we have an end goal and we can still live our lives with freedom, knowing that we're both align with how much money goes into that each month and where we want to be in order for us to make that final decision and to pull the plug and say, yes, we're purchasing a home.

It's just, it feels so good. It's so rewarding. I'm so glad. I know. I'll have to have you back on to, like, hear your whole story. Because your journey with you and Ryan, it's just amazing. It's absolutely amazing. Well, you guys, thank you. Thanks for sharing where you're at in life and this whole conversation. Because I think it is. I think there's a lot of opinions and voices and people try to say, you know, you've got to go this way. And just to be able to give people the permission to say, hey, do what's best for you in this moment. And so hopefully you guys did give you some direction and where you're at. Because home ownership, it's a wonderful thing. Rinting

can be a wonderful thing as well. But just doing it, again, what's best for you, where you are in life and with your money. All right. It's back to school time. And that means people are spending the money on their kids. Yes. And kids' sports and hobbies that they're kicking up to, and they can get expensive. So the average family spends $1,400 on sports activities every year per child. And again, whenever I throw out stats like that, $1,400, some people are like, that's it. Are you kidding? We do travel Olympic trials camps every weekend and cost. so much. And then other people are like, people spend what? So again, it's the average, it's the average. But the numbers are what they are, you guys. And it was just for sports, too.

Like, that didn't include piano or dance or tutoring. So some parents wonder, okay, are we spending too much on our kids, like on the activities, on the sports? Well, my answer to that always is there's not a right or wrong. So it really depends on, what your family values. And some people, they love sports. That's what their family does. And they travel every weekend. You know, I know many families, the dad takes one kid here to this state. The mom takes the other kid to that state. There's a third or fourth kid. They got to tag along. And they're just like in sports season. And they travel and they have all the gear and they do all the things. And the kid is great at the sport. And they do it for years and years and years and years. And that's their life. Like that's what they

dedicate their family too. And then some families are like, no, we're not doing that. You do something else with your kids. Or I don't even know, right? So like, there's kind of this different extreme on this spectrum I feel like. And so for me, when people ask, is X amount too much to pay for my kids' sports? I'm going to say, does it fit in your budget? And my black and white question is, are you going into debt for it. So if you can't afford the big travel sports and expensive equipment and all that, then you can't afford it, you guys. Like going into debt and making that foundation financially, like wobbly for your family based on just sports in the long run is not going to be wise. Like, I don't want you to go into debt really for anything, including kids sports. So if you're

going into debt for it, then I would say, yes, it's too much. But if you're paying for it and in the budget and it's what you guys have agreed on as a family, then that's great. Like, that's what you're going to do. And that's what you're going to spend your money. And so if you're on baby step two and you're getting out of debt, I'll say this. Remember, the more you choose to sacrifice your lifestyle overall, the faster you're going to get out of debt. So I know families that they've paused everything, like the kids' sports, all of it. And they're like, listen, we'll pick it back up in a year. But for these nine months or 12 months, 18 months, we are taking all the money and we're getting out of debt because it's not worth it.

Like the debt is so stressful, we will sacrifice everything. And then some family is like, no, we're going to just keep going over here. So again, it's your prerogative, what you decide to do, but do not go into debt for it. And I'll say this, my personal opinion, for me, it's always funny when you say something about your family that hasn't come to fruition yet, and then you change your mind later on. This might be one of those things. But the two things I've always said. I'm like, I don't really want to do travel sports with our kids.

I mean, if one of them's like this crazy, talented child, maybe, but like, I don't know. Like, oh, it's a lot of time. So travel sports is tough for me personally, and I don't want my kids to have a serious romantic relationship in high school either. Those are my two things I'm thinking of as a mom. I'm like, yeah, I don't know, travel sports. really serious relationship in high school romantically, eh, we'll be fine without those things, kids, you know?

But talk to me in a few years and all that could change people. I'm humble enough to say that, all that can change. But I have also heard families say, you know what, we're not going to do travel sports, but there's some more affordable alternative options when it comes to travel sports. So people do rec league sports. I know some families that they want their kids to be able to do sports

like in middle school and high school, but all the travel kids, obviously, are really good because they're doing all the time. So parents says, okay, well, instead of doing travel, we'll put some money, a fraction of what it costs there, and have, like, a one-on-one coach come, like, once a week to, like, you know, do techniques and stuff, stuff you do in sports. I don't know, I don't know. But listen, there are other options out there if financially you cannot afford to spend a ton of money on your kids' hobbies and sports life. So it's a hard one to navigate because people are very passionate about this. And listen,

there's not a right or wrong at all. It's such a personal choice. But again, I don't. don't want it to absolutely eat your family up financially. Because I think that is going to have really hard repercussions for you, possibly even your retirement, like stuff like that in the future. So let's be smart. Use some common sense around it. And go sports. All right, everyone.

Thank you so much for listening to this episode of the Rachel Cree Show podcast. I hope you gained a lot of information and a lot of inspiration to go out and tackle your money. Get those good money habits in place. Well, thanks so much to George and Courtney for being on. And if you guys have not hit the subscribe button, make sure to do that. 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.