The Rachel Cruze Show - Level Up Your Everyday Money Habits

Episode Date: May 20, 2024

💵 Sign up for EveryDollar today. Create a free budget!   In this week’s episode, I unpack the ins and outs of wealth-building, financial self-care, and savvy grocery shopping. I give my honest opinions on the 7 Baby Steps, guide you through a financial self-care routine that’ll help you build a life you love, and expose some grocery shopping mistakes that can cost you.   In this episode: ·      Rating My Own Financial Advice ·      10 Ways You’ve Been Grocery Shopping All Wrong (With Jade Warshaw) ·      The Ultimate Financial Self-Care Routine   Next Steps ·      🎥 Watch my video on how to set up a budget using EveryDollar. ·      🤫 Check out my video with Jade Warsaw on the secrets to overcoming six-figure debt. ·      ✅ Keep up with Jade Warshaw on Instagram. ·      💸 Find out what to do with the money in your paycheck. ·      🎓 Learn to win with money by enrolling in Financial Peace University.   Offer From Today's Sponsor ·      🏥 Learn more about Christian Healthcare Ministries. Listen to More From Ramsey Network 🍸 Smart Money Happy Hour 🎙️ The Ramsey Show   🧠 The Dr. John Delony Show 💸 The Ramsey Show Highlights 💰 George Kamel 💼 The Ken Coleman Show 📈 EntreLeadership Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

There is something about boundaries and just knowing, like, I have a limit. And here it is. And I can spend within this and get creative and know what I need. It gives me a sense of peace to know, like, I'm in control, right? And so knowing your numbers is big. Hey, you guys, welcome to this episode of the Rachel Crewe Show podcast. I'm so glad that you're here. So in this episode, I'll share a conversation that I had with my friend and fellow Ramsey personality, Jade Warshaw, on 10 things that people are doing wrong at the grocery store when it comes of shopping for healthy, affordable meals. Then we'll talk about my financial self-care routine

and how you can create a life that brings you peace and joy. But first, I'm going to rate my own financial advice and share my honest opinions on the best and worst parts of the wealth building process. Take a listen. So I have been teaching people about personal finance for over a decade now, and one thing I know for sure is that the best piece of money advice

isn't always easy. So when you decide to take control of your money, some parts of the process, they're more fun, more rewarding and great. Some are more painful, slower than other parts. But every step is equally important. So today, I thought it would be fun to go through and rate my own financial advice. So I'll be sharing my honest opinions about the best and the worst parts of wealth building. From saving for an emergency fund to investing in retirement, here are all of my unfiltered thoughts. So you first might be thinking, I don't even know what building wealth even means, Rachel, much less a process that entails all of that. Okay, I hear you, and there are a lot, a lot of conflicting opinions on the internet when it comes to this.

So I'm going to go over the seven-step wealth building strategy that I stand behind here at Ramsey's Solutions and that we teach. So the very first thing you're going to do with your money is save $1,000 in an emergency fund. The second thing you're going to do is you're going to pay off all of your debt at your house. The third thing is you're going to get a fully funded emergency fund of three to six months of expenses saved. Then, at the same time, you're going to invest 15% of your income

into retirement. You're going to save for kids' college and pay your house off early. And then the last step, once you're completely debt-free, you're going to continue to invest and build wealth and be extremely generous. Okay, now that's the understanding of the seven baby steps let's talk about some other highs and their lows.

All right, time to dissect some of my financial advice. So I'm going to pick a question, read it, and give you my answer. You ready? What step is the most encouraging and empowering? I'm going to say, baby step two. Once you have gone through that process, the feeling of having no payments and knowing that your income is all yours again and you're not having to sacrifice like you were, it's incredible.

Which step comes the easiest for most people? I would say step four, putting 15% of your income into retirement. Because at that point, people are eager to put money away to invest because we tell you to pause investing when you go through steps one through three. So which step was the most challenging for you personally? Okay, I'm going to kind of contradict myself because I just said there's like an ease to babysit four of investing in retirement. But still, this might be the one that challenges me the most. which step goes by the fastest? I'm going to say baby step one, because I think it's the quickest step to get through that $1,000 emergency fund. Which step is the biggest flex after you achieve it?

I mean, after you like get through baby step six, right? Like when you have a paid off house, like to me, that's like you've really done this for a long time, but that's a lot. All right, which step do people have to go back and do over again the most? Ooh, honestly, I think it's baby step. too. I feel like for most people, their emergency fund, they kind of keep it to what they need. But we've heard time and time again, not a lot, but enough that people are like, oh my gosh, we were debt-free. And then we went back and, like, got student loans for our kid, or, like, got a car. They did something and they're having to climb their way back out. Which step is the most boring or mundane? I'd say baby step three. I think when you're, like, completely

debt-free and you're just like, then you just get three to six months of savings. Like, that's a lot, right? Like, you're getting there. And you're done with paying off debt. like you want to move on. It's kind of that step that you're like, oh, I've got to get through with this one. Which step is the most shocking to other people while you're working on it? I'd say baby step two, getting out of debt.

Which step gets the most hate from skeptics? Oh, man. I would say it would be baby step four when we tell people not to invest, meaning like just the investing in general while they're paying off debt and building up an emergency fund. I'd think most people, like, they're annoyed by that step.

And then we get a lot of paying off house too. A lot of people are like, why would you pay off your house? Why would you not just invest that money? Make more on it, all of that. So I'd say those too, I hear a lot. Getting out of debt, for the most part, I would say if you're in the space, a lot of financial people say debt is not your friend. Like, we hear that a good bit. Now, there are those that are like in the real estate game and all of that where they're like take on debt. But for a lot of people that, like, are helping people day in and day out, most of those people out there would say debt's not great. All right, which step do some people get right on accidents. Gosh, I mean, I would say probably babysit three, because people

will call into the show, they have tons of debt, but they have like $30,000 in savings. You're like, way to go. That's awesome. Let's use some of that to help you when it comes to building wealth. But overall, if you're a natural saver, you're going to have money saved. If you had to choose at which step is the most crucial non-negotiable. I'm going to go two. I think there's something about that debt-free life. It's extreme to a degree. But I do think it's like one of those. You have to draw a line in the sand. It has to be non-negotiable,

or you're going to, like, slip back into it. All right. So on a scale of 1 to 10, I'm going to rate each baby step on how difficult it is. Okay? You ready? All right, baby step one.

We always say that this is the easiest step, but it's also the hardest step. And it is the hardest step because you're choosing to engage in a process that you've never done before. And stepping into something new is always really hard. So I want to give a 7.5. All right, baby step.

Step two. Oh, man, I may have to go 10 on this one. I feel like this is one of the hardest because you're paying off all of your consumer debt. And for some people, it takes two years, three years. So it's a long time to do this, trying to get out of debt as quickly as possible. And it's hard. That's hard. Working extra all of it. Baby step three, I'm going to give that one an eight out of ten. I think it is a little bit like the excitement of like, oh, we're getting out of debt. And then you're done and you've got to build it up. It's like, pooh. Baby step four. I'm going to go four out of ten. Like, I think for most people, when they get to that point, they're wanting to invest. Now, after you've been doing it a decade like me, you may get annoyed with, like I do with it, but from an ease standpoint, I'm going to give it that.

Baby Step, five, Kids College. You know, I may go like seven out of ten on this one because you may not feel like you have a lot of margin left to put away for kids college. and we don't know what college is going to look like. This is always my struggle with it. Every time we meet with our financial planner, we look at their 529s for our kids, I'm like, what is tuition going to be? Like, is college even going to be, like, how it is today? Like, it's such a question mark in my head. So sometimes it is hard for me more emotionally to put money in when I'm like, are they really going to use this? I hope they do. I'm all for college, but you just never know. Baby step six, paying the house off early, I'm going to go eight out of ten. I think paying the

house off. I mean, that takes years and years and years and years. And again, if you're doing all the other stuff, there may not be a ton of margin, so it may feel like, oh my gosh, this is a slow process, but it's got to be this long-term habit that you're in just to throw extra at the mortgage. Baby step seven. I mean, I don't know, one out of ten. I guess it's just like still that consistency of investing and really like focusing on your generosity and, you know, all of that. But at that point, like, it's great. You have no payments and it's awesome. So, Obviously, every stage of the baby steps plays a really important role when it comes to you getting control of your money.

And again, they come with pros and cons. But like I said, if you have followed the Ramsey plan, I'm curious your opinion on this. If you agree or disagree, some of my ratings. And if you're ready to take the next step to wealth building, the number one tool that I do recommend is Every Dollar. Every Dollar is our budgeting app, and it's amazing. So make sure to go to everydollar.com to create your first budget. So make sure to check that out.

Getting control of your money, you guys, it's key. Remember, that's what this is all about. I'm so excited about today's episode because my very special guest, good friend, the Ramsey personality, Jade Warshot, is here. Hi, Jade. Hey, what's going on? So glad you're here. It's great.

Okay, so if you don't know, just a quick backstory. Actually, I'm going to give you one great stat about Jade. Jade and her husband Sam paid off $460,000 in debt, which is crazy. So you've done this whole life of completely sacrificing. You've been able to look at every line item in your budget, and one of those line. that's always busted, even in the Cruz House. I feel like it's food, you guys. And you've done such a great job showing people on Instagram and on the Ramsey Show how to eat healthy, stay in line with your budget and all the things.

Is that like something that you just like love to do? I've learned to love it. And I do think that some people are bent more towards cooking at home. Whereas other people, it does feel a little bit more like a chore. But I think that when you simplify it, it can be something that you learn to love. Yes. And it helps, yeah, on the financial side as well. Okay.

So we're going to talk through a list. of 10 things people get wrong when it comes to grocery shopping. So again, this is something that a lot of people can make these mistakes. That's right. It's very common. But it is something for you to really look at and be like, oh my gosh, self-examine. Take a second to self-examine. So, first and foremost, Jade, you say you don't know your numbers. That's right. You can't go shopping until you know how much you can spend. And so this is starting with the budget. Yeah. Making sure you're going through putting a line item for how much you can spend. I like a monthly budget, a zero-based budget.

And that way, you've got the monthly number. But then most of us shop, what, every week, maybe every two weeks? Yes. And so you can break that big number into smaller numbers. And you go to the grocery store knowing how much I can spend. Which just gives such freedom. Do you know what I mean? Like, there is something about boundaries and just knowing, like, I have a limit.

And here it is. And I can spend within this and get creative and know what I need. It gives me a sense of peace to know, like, I'm in control. That's right. And so knowing your numbers is big. I like this one. You say you brought your children. Oh, gosh. Because you have two. Yes. And ages. Four and six. Four and six. And they just grab things and put it in. And then they're like, oh, mama, please, you know. And then the next thing you know, you're buying gushers, you know, or you're buying, you know, fruit snacks or juices that you didn't intend on bringing or buying.

And so just leave the kids, you know, with Papa. Oh, my gosh. I know. I've done so much online ordering since COVID. And so I do. so much of like just planning ahead on an app and I'm like looking, looking, looking. And I'm like, if my kids saw this app with all this food, like, you have no idea how much one I'm like, it's like my little secret that they don't know about. But it is so hard because, yeah, you go down the colorful aisles. Yeah, they're all like, oh gosh, we want this and that. Okay, next, you didn't bring a list. So important. Like you've got to, ahead of time, decide what do I need, write it down and then cross it off as you're going. Whether it's online

shopping or in the store, I think that really helps, again, put parameters, guardrails around what you're buying so you don't end up buying things that you don't need. And the question you have to ask yourself is, was it on the list? Was it on the list? If the answer is no, put it back. Just don't buy it. Yeah. So Winston, I, every Sunday, we look at our week ahead and we have a meal plan, especially dinners. We look ahead and be like, okay, what's this night? What's that night? And, you know, if it's a sports night, usually I'm like just sandwiches. Like something quick so we don't go, yes, something easy. But what's so funny, Jade, is I've gotten that. We've done this for probably 10 years now. And literally for my groceries, I just think through breakfast, what do we need? We need milk,

eggs, and I just hit those. And I do it on the list. I do it on the notes. Yes, notes app on my phone. And then I go through lunches. And I think through my lunches, kids lunches, what do we need there? And then our dinner is just the ingredients for the meal. And that's it. And I've gotten in this good rhythm of it. And then if I go astray, it's because that dang app, because I'm in it. And I'm like, look and I'm like, a sale or whatever. And it takes you down a hole. And I'm like, I don't need to know that. I don't need to know that. But it is so helpful just to know ahead of time. and plan for that. And so that's what I do. I do it on my notes app and then I, yep,

reconcile it with the groceries. And you'll find you can use it for other weeks too. Once you write it down, it's like, yeah, it's all right there. Yep. It's so great. Okay, next, you're in a hurry. So urgency, not good for the budget. I don't think so because I think that when you're, number one, if you're in a hurry, you probably don't have a list. You probably haven't stopped to check your budget. But more so you're kind of in that frantic state. And if they don't have something you usually buy, like if you usually buy like this brand of, don't know, macaroni and cheese, they don't have it. You're likely to just grab anything. It could be something that's far more expensive or you're just like, oh my gosh, they don't have this main

ingredient. What am I going to make? And so you're trying to like make these quick decisions. You end up just buying things to try to solve the problem quickly as opposed to having the time to think it through. Yes, and having the patience throughout the store. That's so good. Okay, you brought a credit card. Duns and so. Yeah. Yes. If you brought a credit card, you're watching the wrong show. Yeah, that's right. That's right. But honestly, like credit cards and food, it's just credit cards in general, a terrible idea. You're going to spend more.

And honestly, sorry, but you're throwing that money down the toilet. Just letting you know. Terrible idea. Terrible idea. Okay. And you also say you brought your debit card. Yes. Because you're what?

Is that what you're going, Jay? This is where you're going. This is for the real ones, Rachel. If you're really concerned or if you have a hard time sticking to your budget, even if you write it down, even if you know your numbers, the next level is saying, okay, I'm going to go to the ATM, take that money out in cash, then you can't go over because when the cash stops, the spending stops. So some of you need to leave all plastic at home. Which is so good. I mean, like, seriously, if you really want to practice this, you guys, like this gets you in such a discipline state. Because when that registers click in

and you're watching, you're watching it go up, it takes a level of humility. Yes. I'm sorry, I only have $200. Yes. And it's $2.15. I got to take something back. Right? That's right. But it forces you. It really does. It forces you. to spend within that limit and you get in that habit of staying within that dollar limit. Yeah. And it is helpful. I love it. Okay, you went through the self-checkout.

I saw this on your list. I was like, well, that's interesting. I like the self-checkout. I say, if you go through the self-checkout, some people agree with this. Some people don't. For me, I like going to the old school cashiers. Okay. A, because I can say out loud, let me know when I get to $200.

I'm only spending $200 today. I like to tell them, and it gives me a level of accountability. Hey, just let me know when I gets $200. then I've already said it. And so when it happens, he or she will say, oh, you just hit 201. Then they're waiting to see what I do next. And so it's like, okay, take that one off. And when you're at the self-checkout, that's not there. It's like, I can just, it's only $5. I can just let that go. And you get the golden grams and you go over $6. And now you've gone over your budget. But there's a little bit of accountability there. That's so good. I didn't

think about that. But we talk about how people are such an important part of your financial process, having people involved. And, you know, even the sweet cashier at Publix. You know what I mean? Have them involved. The Kroger, Kroger cashier. Get them on your plan. That's so good. That's really good. Okay, you're buying national brands. Yes. Mistake. So bad. Listen, I get it. I will never sit up here and tell you that, you know, Walmart Twist and Shout is just as good as Oreo. They're not. Like, there's a big difference sometimes taste-wise. But for the money you're saving, honestly, it's probably worth it for, you know, to taste a little different. And so we found that things like ketchup, um, aspirin and

medicines, things like that, or almost, in some cases, 60 to 80% more, Rachel, when you buy the national brand versus generic brand. Yes. And so buy generic and buy the off brand and save money. And you know what's funny, too? We've done this. You get in the habit of buying certain products that are just the store brand. Yeah.

And you get used to it. You don't even think about it. You don't think about it. It's sitting at Walgreens. I looked. And I was like, oh my gosh, the name brand versus like just the Walgreens. Unbelievable. And my sweet pediatrician even was like, get the generic.

If they have it's generic, just go ahead and get it because it's way cheaper. And I was like, it is. It is. So when you look at those prices, you guys, it makes such a huge difference. So I like that. A lot of cases, it's the exact same thing with a different label on it. Yes. Same thing.

Yep. So good. Okay. Next, you don't have a plan. We just talked about this a little bit earlier. So. But the meal plan. Yes.

So hardcore, yeah. You said it. And it's true. Just sitting down, taking 10 minutes on a Saturday or Sunday and just going, okay, what can I make with what can I make? And then what do I want to go to the grocery store and make? And I think with having a plan, it's got to be simple. It's got to be something that you will make.

Like now's not the time to turn into like, I don't know, Julia Child. Yes. Something that's simple. Something you'll make, something that's not a lot of ingredients. And then you're going and saying, okay, I know what I'm making. And I'm prepared for that. For sure. And especially if you have a short timeline at night, you guys, if you're both like working parents or whatever it is, like give yourself Christ, right?

Like make it simple. Like to your point, it doesn't have to be this gourmet thing. And sometimes I'll get in those like seasons. and then, and I'm halfway through it. I'm literally, Jade, what did I do this? Why did I just put grilled chicken and, like, just grilled chicken and vegetables? Like, why didn't I just do that? It's easy.

So if you're scrunched for time, too, as you're doing your plan, knowing like, oh, my gosh, that's going to be a really quick night. Make a quick meal. Yeah, cheeseburgers are great. That's right. You know, all day. All day. Okay, last but not least, Jay, you say you didn't take inventory.

Yeah. I think that there's a lot in our cabinets and a lot that's, you know, on the doors of our refrigerator that just we buy over and over again. How many cans of black beans do you have? Like how many can? You know what I'm saying? We keep buying ranch dressing. It's like you already have that.

So be sure to take inventory first. Then you're making your meal plan based off of what you already have. You're already saving there. And you're making sure that you're not buying duplicates, which the worst is when you buy duplicates of things that are perishable. And it's like, oh my gosh. Now my yogurt's going to go bad. Yeah. Sour cream.

It's always mine. It's my downfall. Yeah. I was like throwing a thing of sour cream. And then I have so many. Yeah. That's it. So that's so good, Jay.

Well, those little. And as you're thinking through this, something as simple as grocery shop and you guys again, when you're intentional about it and using something like this list, it is so helpful. It really is. It helps you save time. It helps you save money. It's so great. So, again, you talk a lot about this stuff on social media for sure. So where can people find you?

Yeah, definitely on Instagram. You can find me on Facebook. I do a little bit of the X, the Twitter. The little TikTok. But if you want to talk to me, find me on Instagram at Jade Warshaw. Yep. So good. And we host the Ramsey Show together a lot.

That's right. to you guys. And if you want to find out how Jade paid off six figures in debt, be sure to tune in to the next episode. Jay, thanks for being here. Thanks for having me. Always so fun. So if you're like me, you've probably seen a lot of self-care culture going around social media and on the internet, so whether it's your nighttime skin care routine that you see or self-care shopping day, people love to treat themselves. And listen, I'm here for it. I think it's great. And I say it every week on the show. But again, I want you to create a a life you love. But don't forget the first part of that sentence, because that matters too,

to take control of your money and create a life you love. In order to create a life you love, and have joy and have peace, again, you have to take control of your money first. And in the mindset of so much comparison culture, and especially when it comes to social media, it can be really tough to have some discipline when it comes to this. So today I'm sharing with you my financial self-care routine. So it may not involve splurging on a fancy face mask, but trust me, what's waiting on the other side is so much better. And stick around to find out what I mean. And at the end, I'll share one product that I do recommend you spend money on when it comes to financial self-care. Now, some of you may be thinking, well, I'm fine financially. I don't really need any self-care

in that area. So first, if that's you, let's just look at some statistics and see if you relate to any of these. So three out of four adults say that they often or sometimes feel stressed when it comes to money. And as of last year, 34% of Americans say they either are struggling or are in crisis over the state of their personal finance. Forty-nine percent of Americans say that they have at least $1,000 in savings, but 33% report having no savings at all. And these numbers just prove that money is a pain point for a lot of people. And over a third of Americans actually feel like they in crisis mode. So did you know that research shows that we as people actually react differently in our bodies when it comes to a crisis? Now, some people may exaggerate their communication response,

aka you might get short with your kids or your spouse or your friends. People may revert to instinctive fight or flight, aka maybe you might be avoiding a problem altogether. Maybe you dig yourself deeper into debt. Some people feel anxious and guilty, hopeless, even confused. You know, like you're just too embarrassed to even ask for help because you don't believe that, you know, you can pay off all this debt. So I don't know about you, but those feelings, I never want anyone to feel because it seems really hopeless. But listen, there's always hope. And a little financial self-care goes a long way. But before we get to the ultimate financial self-care routine, it's important that we're all on the same page about the basics. So if you need,

know Ramsey Solutions, you know that we are all about getting out of debt. We're all about budgeting. We're all about having an emergency fund, investing in retirement, paying your house off early, saving for your kids' college, building wealth and giving, all of this. These are all in the baby steps, and it's something, again, it's a plan that we really do believe in. So that's kind of our philosophy when it comes to money overall. But once you're familiar with the baby steps and you're actively maintaining them, then it's time to level up with some financial self-care. So here are five crucial steps in my own financial self-care routine. Number one, track your spending and be honest about where you need to make adjustments. So we have every dollar budgeting app. And so Winston and I,

we do this. I mean, almost daily, I'm looking at where we're spending our money and our every dollar app is connected to our checking account. So every time we swipe a debit card, it goes into every dollar, that little bubble pots up. We click on it and I drag and drop to whether it's Costco or groceries or Amazon or kids' school lunches, like whatever it is, I sit there and honestly track every part of our spending, which may sound crazy to some people. It does not take long. And again, to be able to maintain a budget, you have to know where you're spending. So if you've never done a budget, try it out, and also have a miscellaneous category. That's always one of my number one roles when it comes to budgeting, because stuff is going to come out throughout the month that you

did not plan on, buying wiffle balls for the kids this summer. We did wiffle balls. I was like, oh, yeah, you know, and it's only like 12 bucks, but we are very intentional about where all of our savings goes. So, you know, you just throw some of that miscellaneous and you're good to go. All right, number two, keep savings in a high-yield savings account. So once you are in a place where you're saving up for an emergency fund, baby step one, and or your fully funded emergency fund after you paid off debt, a great place to put your savings is not just in a regular savings account at your bank. Look for a high-yield savings account. So with this, you know, there may be times that, you know, if you take too much out,

there's some fees and all of that. So you really want to make sure that you know the parameters around your high-yield savings. This cannot be like your checking account, right? But if you put money in here, you're going to get more of a return. And so where traditional savings account is like 2%, if that, on like a good year, high-yield savings accounts, we're going up to like 5, 6%, like crazy, crazy amount. So make sure to put your savings there and let it build. over time. Number three, check on your investment progress. So I would say do this once a year.

People that look at their investments every other day stress me out because the truth is, the market is going to do this. And the goal for your investing is that it's long term. So whether it goes like this one day or this one day, it doesn't matter overall, right, day. You let it go. And then check once a year. And we sit down with our investment professional every January and look at it all. And even this last January, we actually changed some of what we were doing. Just some little tweaks here or there, but it's just good to look at an overall picture,

but don't look at it all the time because it's going to freak you out and it's not worth that stress. Number four, stay ready for tax season. So if you are someone that needs to keep receipts because you have a business or you have some different records that you want to keep when it comes to filing your taxes,

make sure you're doing this. Because there can be so many write-offs, and then when it gets to April, you want to be able to take advantage of that, but you don't want to have to go and track everything down. So as the year is going, be thinking ahead and say, okay, what do I need when tax season comes? And finally, the moment you've all been waiting for, the one product that I think is actually

really worth it when it comes to your financial self-care is Financial Peace University. So this is our nine lesson money course, and it walks you through the proven financial practices when it comes to building wealth. And it's really easy to sign up and get started. But part of financial self-care is learning, continuing to put more in your mind, learning from people, seeing what other people are doing that are. actually working with a long track record, and you know that's some advice that you can take, and that is Financial Peace University. Self-care routines, you guys, I love them. I love them,

love watching them, but that financial self-care routine is so key, so I hope that this episode was helpful. And thank you guys so much for listening. If you love this show, make sure to leave a review because we love to hear your feedback. And while you're at it, will you subscribe to the podcast? Will you share it with your friends and your family help get the word out? Well, thanks again, you guys, for listening. And remember to take control of your money and create a life you love.