The Rachel Cruze Show - Money and Lifestyle Habits That Are Wasting Your Paycheck

Episode Date: February 19, 2024

Want to pay off your debt faster? Stick around! This week, you’ll learn five ways to speed up your debt payoff. Plus, don’t miss my #1 tip for never running out of money before your next paycheck, and Nisha Vora joins me to share some of her favorite grocery shopping hacks and affordable, healthy recipes.   What you get in this episode: ·      Do this EVERY Time You Get Paid (Paycheck Routine) ·      Grocery Store Hacks That Save You Money (with Nisha Vora) ·      5 Proven Ways to Speed Up Your Debt Payoff   Helpful Resources:  ·      Follow Nisha on Instagram at @rainbowplantlife ·      Watch my What Everybody Gets Wrong About Budgeting video. ·     Watch my 12 Ways to Cut Your Grocery Bill in Half video. ·      Watch my How I Would Budget $3,600 a Month video. ·      Start budgeting for free with EveryDollar. ·      Learn more about Christian Healthcare Ministries. Sponsors pay the producer of this show, The Lampo Group, LLC, advertising fees for mentioning their services or products during programming. Advertising fees are not based upon or otherwise tied to any product sale or business transacted between any consumer or sponsor. The following sponsors have paid for the programming you are viewing: Christian Healthcare Ministries.   ·      Learn more about your ad choices: https://www.megaphone.fm/adchoices ·      Ramsey Solutions Privacy Policy: https://www.ramseysolutions.com/company/policies/privacy-policy Learn more about your ad choices. Visit megaphone.fm/adchoices

When you were in middle school, you probably heard an adult in your life saying, you are who your friends are. You want to do something. When you're around people who are doing it, they're naturally going to encourage you. What does our relationships look like in our life? The power of encouragement is so real. Welcome to this episode of the Rachel Cruise Show podcast. I'm so glad that you're here.

So in this episode, we're going to talk about what to do every time you get paid. Then I'll go over seven secret steps to paying off your debt faster. But first, I want to share a conversation I had with author and YouTuber Nisha Vora about food hacks that can save you money. Take a listen. I am so excited about today's episode because I have a really special guest on with me. Nisha Vora, who you may know her as Rainbow Plant Life. She's an author and a YouTuber, and she really specializes in practical, delicious, vegan

meals. So eating healthy and being practical, Nisha, this is what we're all about. So thank you so much for being here. Thanks for having me, Rachel. Absolutely. Okay, so what got you on this journey in general when it comes to eating healthy and really just like kind of having a healthier lifestyle? Well, I went vegan in 2016.

And I'd always been interested in cooking and like trying to eat at home as much as possible. I started cooking as a teenager. And then I was just starting to get curious, like, where's my food come from? Because, you know, you go to the grocery store and you just buy the things on the shelf. And a friend recommended watching a documentary called Food Inc, which has been around for a while. And so one night I watched it and really shows you where your food comes from, especially from the lens of like most of our food comes from like big factory farms and big agribusiness and all these things that I was like completely unaware of. And I was like, oh, this is what we

do to the animals. This is what we do the environment. This is what we put in our bodies. And so after that I started watching more documentaries. And I think binge watching them in a short period of time. like, well, I have all this information. I can't ignore it anymore. And so it was kind of like I would say not overnight, but like over the course of three nights, I decided to go vegan. That's amazing. Oh my gosh. Because I think one of the things that I run into for people is that they feel like it's just more expensive to eat healthier, right? And I think in maybe some cases there is, but I also have found that there's, you know, even the stores you shop at, right? So whether it's, you know, Aldi or like there's some great places where you can actually shop to find some good deals.

Where are the places that you tend to shop maybe that have less expensive things, but they're still healthy and good? Yeah. So one of the things I would say is go find your local ethnic grocery stores. And for people who can't see I'm using air quotes, because there's no ethnic grocery store, but it's just a wide variety of, you know, you might have a Mexican market, might have an Indian market. You might have a Thai or Chinese or Korean market. One, I think you're going to just be able to eat tastier, more interesting, diverse meals. But also they sell so many things that at a lower cost because it's easier and cheaper for them to get those ingredients because they're not specialty ingredients for them. So when I go to the Indian grocery store, the cost of spices and lentils are so much cheaper than at your regular grocery store. At a Mexican grocery store, you can get dried and fresh chili peppers. You can get fresh tortillas. You can get beans, salsas, hot sauces, all these kinds of things for a cheaper price. Same thing.

I go to my local H-Mart, which is a large Korean grocery store and the five-pound bag of Jasmine Rice there is usually. about the cost of a two-pound bag of rice at a regular grocery store. So I am a big advocate of going to those stores if you have them in your area because you'll save money and you'll also explore new cuisines, which is always fun. Yes. Oh, that's so smart. And I have heard that even within a grocery store when you go to like the international aisle, right? The spices there are still the same spice as a few aisles down, but it's a different brand and it sometimes is more cost effective, which is so smart. Did you notice like personally? Oh my gosh. We say more money by doing this? Yeah, so for sure. Well, now my groceries are like a business expense

because I'm constantly testing recipes. So it's a little hard to like compare it to today. But in that first year when I went vegan when this wasn't really my job, I was floored. I was probably spending like less than half than I used to because when I, before I went vegan, I, you know, thought of myself as trying to be conscious when I would buy things. I would try to buy pasture raised eggs and grass that need and the things that I thought were, were the best. And not having to buy those and be able to replace them with beans and lentils and tofu was like, oh my gosh, it's so much cheaper. Especially because I went vegan in 2016, when there weren't a lot of great vegan meat substitutes or cheese substitutes or sour cream or all those other things. And so I really was primarily eating

whole foods that are generally quite inexpensive. And so, yeah, I saved a ton, a ton of money. That's so good. So you mentioned substitutes. So I'm curious, you know, out of the most popular things that people eat that are not vegan. So like, yeah, your cheeses, your milks, your eggs, your meats, like what are some great ways for people to substitute? Because again, for some people, they're wanting to do a lifestyle change when it comes to their food. But then again, for some people, they really are trying to save money. And they're like, what can I cut just to get it out of my budget? And if I can replace it with something that is as nutritious, you know, or a great replacement, it's going to be worth it, even if it's just from the financial

spectrum for a period of time. So what are those big things in life that you're like, yes, you can substitute these. It's not only going to save you money, but it also could be healthier for you. Yeah, so I try to approach this kind of stuff with the idea that like chickpeas don't have to taste like chicken, but at the same time, you do want them to be delicious. You want them to have interesting flavor and texture. Because if you say like, oh, I made a vegan taco meat and I taste nothing like taco meat, you're not going to be satisfied. So I try to find little kind of flavor hacks to make things like lentils and beans and tofu, which, are really inexpensive, taste a little bit meatier or have any more interesting texture.

But yeah, beans on lentils are so cheap, especially if you buy dried beans. That's probably one of the cheapest things you can buy at the grocery store. And when you cook them from scratch, they do taste better than canned beans. I tend to dress up canned beans a bit more because they're not the most interesting in flavor on their own. And tofu is something that's also super cheap. I know sometimes it gets a bad rap. I think it's unwarranted.

But even when I buy the organic tofu from the brand, I like the most at Whole Food. So like as expensive as tofu might be, it's like $3 for a pound or 14 ounces of tofu. So it's like still very, very cheap. And I remember last year or two years ago when the price of eggs went up crazy, a lot of folks who were not vegan. You were like, I'm good. Yeah. They were coming to make my tofu scramble because it's made from tofu, which is cheap and some spices and some plant milk. and it's really rich and creamy, and it satisfies that egg craving without the eggs,

and it's really affordable to make. Yeah, that's so good. So I've gotten better with my cooking skills, I think, over time. I love following certain people, like even on Instagram, and I'm like, oh, if I can watch somebody make a meal, I'm like, I can do that. I can throw all that in a pan. So for you, what are maybe like two meals that you're like, this is a great budget-friendly, a healthy vegan option that even if you're not a great cook, it's delicious and you're going to,

you can do it. It's simple enough that if you put a little bit of effort, a little bit of love, it's going to turn out good. Do you have like your go-to meals? Some of the more popular ones from my website or channel that are really budget friendly and super delicious, I would say, are my lentil bolognais. That one I came up with at the start of the pandemic when everyone was like, what can I do with my pantry? and so they came up with like a tenish ingredient pantry lentil bolognais. So it uses red lentils. And when you cook them the way that I do, they really taste quite meaty. I use a little bit of walnuts not at a ton, so it's still pretty budget friendly to enhance the savouriness. And then everything else is like canned tomatoes, tomato paste, dried herbs, pasta, vegetable broth, like very basic pantry

ingredients. And if you give a little love, you give it some time to simmer, it genuinely taste meat and it's very popular with both vegans and non-begans alike. And that's something that's nutritious, budget-friendly, pantry-friendly. So I think it checks all the boxes. And I really encourage people listening to try that one out. Another one, I would say, that also uses red lentils. It's probably my most popular recipe is my red lentil curry. And that one is like a kind of gateway introduction to Indian cooking. That's a bit more easy and weeknight friendly than some of the more traditional Indian dishes. And again, it's almost exclusively pantry ingredients. So it's very budget-friendly. I think the only fresh ingredients are like garlic and ginger, which, you know, anyone can get anywhere. So I would start

with those two because they are both budget-friendly. They're both extremely delicious and they're both easy to make. I think it is. I think it's so helpful to know, like, hey, here's ways I always love is kind of killing two birds with one stone. And you're budget-friendly and you're able to, you know, to eat healthy altogether. And it really is one of the best ways because, many families. They're struggling and trying to figure out, hey, how do I cut my grocery bill in half? And there's some great substitutes. And we always laugh at Ramsey. We say, eat rice and beans, beans and rice while you're getting out of debt, basically, like, limit what you can. And so, we're telling you to go vegan, everyone. You can follow her lead on that. Oh, so great. Well,

this was so helpful. I always love picking people's brains and especially when it comes to this part of our lives because it's really important, you know, to be able to feed your family and also let it taste good and all the things. So thank you so so much. Where can everyone finds you if they want to start following along. Sure. You can find all my recipes on rainbow plantlife.com. That's my website. If you are a visual learner, I have a YouTube channel where I share informative, educational, hopefully entertaining. I think they're entertaining cooking videos at YouTube rainbow plant life there as well. And then if you are into shorter videos,

that's on Instagram. Again, Rainbow Plant Life. So great. Well, Nisha, thank you so much again for coming on and helping us out. I hope it's encouraging to you guys. Yep, this part of our lives, which we get so many questions on when it comes to food and money, this was helpful. And you could relook your entire food journey in life and change and be healthy and save money, which is awesome. So if you are on any kind of social media, you've probably seen a video of someone sharing their routines, whether it's my morning routine, my nighttime routine, or get ready with me, or Sunday reset.

So there's all these videos out there. I don't know about you, but I do find myself like, I'm curious, Mama 13, how you do your mornings. I'll watch them. So I figured if I binge random people doing their normal everyday things that honestly don't really matter, right? Like cleaning a shower a specific way or using a certain hair mask before bed, then I feel like I could share one of the routines in my life. That's a non-negotiable. And that is my paycheck routine. So this is what I do every single month, actually twice a month, when I get paid. Now, some of you already know that I'm a huge believer in a monthly budget. So using every dollar as my budgeting app is something that I love.

It's one that my husband Winston and I use to keep our money organized. But I want to get even more specific with you guys and share exactly how we prioritize our financial needs for the month. And that's everything from saving to investing to covering the four walls. And I'm also going to go over what you need to do with your paycheck if you are in a different place financially, like if you're paying off debt or saving for your kids' college. And make sure to stick around till the end, because you're going to hear my number one tip for never running out of money before your next paycheck. Now, before we get started, remember this one important truth. If your paycheck doesn't look exactly how you would like it to look right the second, that's okay. I see a lot of

people push off a habit like budgeting for when they have everything right or the amount they want to work with to be consistent. But the truth is, starting somewhere is better than putting it off until you magically feel like you have exactly what you need to have to be successful. And guess what? As you continue to budget and organize your money, that day will come sooner than you think. All right, first, let's talk about how to prioritize your money if you're working with a budget that has debt. And let's say you've already saved your $1,000 emergency fund, and now you're ready to pay off your student loans, car loans, credit card payments. And here at Ramsey, we call that Baby Step 2. So here's what I recommend doing once you get paid.

open up your budgeting app, again, every dollar is the best one, and plug in your total monthly earnings. This will include your paycheck, your spouse's paycheck, any side hustles, or any additional income you have coming in. Next, you're going to cover your four walls. This is food, shelter, utilities, and transportation. Then you're going to plug in each of your debts and their minimum payments. So what you're going to do is organize it to the smallest amount of debt that you have to the largest. So each individual debt will be labeled out regardless of the interest rate. And again, regardless of the monthly payment, this is your total debt. You want to pay off that smallest one first. But you want to know what your minimum payments are every single month so you don't get behind.

Number five, now that you have your debt and your essential expenses covered for the month, you have whatever's in your budget that is left to be able to prioritize. And you want to prioritize, obviously, the most important to the least important. there are going to be things like daycare, your home security system, you know, things that you're like, these are things that I want to have insurance, right? These are absolute needs. And then as you go down, it's like, oh, yeah, fun money, right? These things that don't necessarily have to be paid, it'd be great if you had some money for it,

but it's not a necessity. All right, next, let's look at a budget where this person is debt-free, but they're on baby steps three, four, five, or six. Okay, so once you have zero debt, then you're going to take that margin and throw it to build an emergency fund of three to six months of expenses. So instead of that money going to debt, it's now going to an emergency fund. And we call that Baby Step 3.

So again, Babysep 3 is great because it is a cushion between you and life. Now, if you are renting and you're wanting to save for a house and save up for a down payment, then you move on to Baby Step 3B, which again, take that margin. Instead of it going to an emergency fund, it's going to the down payment on your house. So then after that, you guys, and again,

and when you're good with your home situation, you have an emergency fund in place, then next is what your paycheck routine should look like. Again, you're going to open up every dollar. You're going to plug in your total income for the month. You're going to cover your four walls, your food, shelter, utilities, and transportation. And then instead of putting a large portion of your earnings towards debt and savings, you're now going to be able to channel that margin into investing for retirement.

So I always recommend people investing 15% of their income into retirement. This can be through a 401k or a Roth IRA. But that's going to be a place where you're going to say, hey, I'm going to put put some of this money aside. Now, again, some people do this per paycheck per month. Some people do a lump sum. Some people do it a few times throughout the year. Whatever it looks like for you, just making sure you have money there to fund your retirement, which is key. Now, once you've gotten to the rhythm of investing 15% of your income, then you want to start putting extra money towards things like kids college and even paying the house off early. So if you have kids looking at a college fund

and saying, hey, is this a good option for us to open up, put some money in every single year, let it grow in an ESA or a 529, and also look to say, hey, are there things that we want to save up for? Vacations, are we wanting to replace a car? You know, there could be a couple of things as well that your money's going to go to. And then if you have anything extra, which some people do, some months, some people don't always, you want to put it towards your house to get your house paid off fast. Now that you know what to do with your paycheck, when you're paying off debt, saving and investing, I'll share what I do with my paycheck routine on baby steps step to step. So after 12 years of doing this, Winston and I are in a place where we don't have debt.

We have our emergency fund in place. We fund retirement. You know, we're doing kids' college. Like, this is where we're at. We are saving. We are investing and we are giving. And those are the things that are really important to us. So our typical paycheck routine looks like this.

So we get paid and basically at the top is our giving. So we have our tithes. We have other places that we give to and that varies year to year of what we choose to give to. And that's basically, that's the very first thing in our budget that we have. And then we go down to savings. So we do look to say, hey, especially for investing, you know, do we have that money set aside? Because we want to be able to max out as much as we can with investing.

Then we pay bills. So whether it's streaming services, utilities, cable, cell phone, like all of those things get paid. And then we look at the big expenses for the month. So, you know, if it's November, December, Christmas is usually there. If it's a kid's birthday, if we have, you know, camps that we're signing up for them for the summer,

if we have travel expenses. You know, recently we had to read to our fireplace, and that was a big expense. So we really look at those big expenses that we have to pay for throughout that month. And then below that are the small expenses. This is things like eating out or clothes or fund money, you know, things that aren't necessities,

but we'd still love to do if we can, but the other things just really take priority. Okay, now that we are in this place, and our main priority continues to be managing our money wisely. So we always invest, you guys. We always do a budget. We always give. These are things that we talk about on the show,

and we do it really every day to week to month. I mean, it is consistent because this stuff works. And like I promise, now I'm going to share with you the number one tip for never running out of money before your next paycheck. And this is huge, the miscellaneous category. Okay, if you budget your income down to zero and you have every single dollar accounted for,

then you're not accounting for life. and the miscellaneous category is there. It is a cushion in your budget because things are going to come up, they're going to come up that you did not plan for, and so much can be thrown in that miscellaneous category. It's personally one of my favorites because it does give a little bit of freedom,

to be like, oh, yeah, this here, this year, without feeling like, oh, my gosh, we've just destroyed everything or we have to dip into savings. Now, you want some cushion in your bank account, but what the miscellaneous category does again is it gives you some margin in your budget month to month. So when life happens,

it's your catch-all category. which is just the best. So if you are in the process of paying off debts, do you ever wish you could just go faster? Well, today I'm going to share seven secrets that could speed you up when it comes to this process. So be sure to stick around until the end so you can let me know which tip has worked best for you,

which tip you want to try next, or maybe even a tip we didn't cover here. Because I always love hearing you guys in the progress that you're making. All right, the first secrets to paying off debt is strictly relational. So this may require drawing a couple of boundaries, maybe with friends or family who are currently in your life and also bringing some additional voices that you need to hear more from. And that is because you want to surround yourself with positive people.

When you were in middle school, you probably heard an adult in your life saying, you are who your friends are. I know my parents always said that. And listen, there's a truth to that. If you want to do something, when you're around people who are doing it, they're not. naturally going to encourage you. So if there's somebody that's always talking you in to spend more money, you're like, oh my God, a budget is so stupid. Don't take, don't take yourself so seriously. You know, or they're unsupportive or they're skeptical when it comes to the way you view money. You really want to kind of like be aware of that, you guys, because it does affect you.

And again, if there are comparison traps that you're constantly falling into, there may be time just to create a little bit of distance from you, from the, them just to say, hey, I don't know if we can, like, go hang out with that couple because all they want to do is go to, like, five-star restaurants and we're not doing that, right? So there's going to have to be a conversation not necessarily with that person, but definitely with yourself and if you're married with your spouse to say, hey, what does our relationships look like in our life? I'm not saying you can never hang out with someone that doesn't handle money the way you do. But again, the power of encouragement is so real. The second secret to paying off debt faster is a little bit more tact.

And this is something that I get a good amount of pushback on because it could feel like you're taking actually a step back. But I promise when you take everything into account and after doing this for years and years, you are better off in the long run. And that is pausing and investing while you pay off debts. And a lot of people hate this because they're like, oh my gosh, I'm losing so much time. But here's the deal. If you are investing even at all, it's usually at a smaller percentage. Maybe you're going up to the match near 401K. but you're not putting a ton there because realistically, if you have a lot of debt,

you're not going to have a ton of margin to invest anyways. But we find people focus on getting out of debt fast, and they, again, have one goal in mind, and that is becoming debt-free. And once that happens, it frees up so much income to be able to invest even more than you would have in the process. So you want to invest 15% of your income into retirement once you pay off debt. But pause that investing for now until you are debt-free. The third secret to paying off debt is an oldie but a cookie, and this is a tip you've probably heard

before, but it's important to revisit. If you have been working the baby steps for any amount of time, then you probably did this at the beginning. But I bet you have more to work with when you think outside the box, and that is selling your stuff. Okay. If you can sell stuff around your house, you know, things that maybe your kids have outgrown when it comes to, like, furniture, or toys, or even look around your house and be like, oh my gosh, there are three TVs in here that we never turn on. Like, whatever it is, sell stuff, okay? And this could be on Facebook marketplace. This could be on Craigslist. I don't care where it is. But if you're able to sell things around your house that you're not using, you will get cash and be able to put towards getting

out of debt. So again, look around your house and just say, hey, what's the crap that we don't use? And it's amazing how people will buy it and you get some cash. All right, my fourth secret for ditching at debt fast is another tip that maybe you've already considered, but one that you may need to pivot to really maximize its impact. And this is something that will bring in more income, which is a huge part of getting out of debt fast. And that is getting a side hustle. So delivering food, working as a hostess at a great restaurant on weeknights, or turning your hobby into income, like photography or music lessons, sewing lessons, freelance hair and makeup, like whatever it is, the possibilities are endless. If you can bring in

more cash, it's going to help you get out of debt that much faster. I mean, I've talked to people you guys that are making $1,500 to $3,000 extra a month while doing this. And I understand that, you know, working at side hassle, it is tough, right? It feels like time, there's not even that much in a day, and you're exhausted, all the things. It is so true. So this is not something you're going to do forever. But during the season of getting out of debt, if you can up that income, it's going to be really lucrative and it's going to boost your confidence and you're going to be able to

throw it at your debt and get out of debt that much faster. Number five is a tough one since we are heading into spring. and summer, but it could literally save you thousands of dollars. And that is to skip the vacation. I know. I mean, it hurts. It's just, it is so hard to say that. But you could literally, literally save thousands of dollars if you do this, you guys.

I'm telling you, it is amazing how much money we end up spending on travel. And again, I'm not saying you can't travel ever again. Because the key here is to live like no one else. So later you can live and give like no one else. and for the time period while you're getting out of debt, if you're like half in, half out, it's going to take you forever to pay off that $20,000 in student loans that are left, okay?

But if you just say, hey, you know what? We're going all in. We're cutting everything, including our vacation for the summer or the spring break, and we're going to put it towards the debts. You're going to get out of debt that much faster and it's going to free up so much of your income. So then you actually can go on a great vacation later,

which is fantastic. So just think of everything you can do if you didn't have debt. And that includes some great vacations later in life. But again, cutting the travel for this season, it is worth it. Okay, I know I've been talking about some of the things that just like aren't forever and it's just for a season. But my sixth secret to paying off debt fast actually has a concrete time limits. So you're going to do this for a month, okay?

For one month. I mean, how hard can be? You can do anything for a month. And that is to do a no-spin challenge. Yep, tip number six. And this is a hard one. but here's what I recommend. No eating out, no delivery meals, no streaming services, no new clothes, anything non-essential you are not buying, okay? I mean, just all the extra things that we do around our

lives, cut it all for one month and you will be amazed how much you save, even just on the food category when you say, I'm going to cook at home for four weeks and we're not eating out. You can save so much cash. And all right, my seventh secret to paying off debt faster may sound a little bit boring, but it's definitely one of the most impactful things you can do. If you love to nerd out on numbers or you love a good spreadsheet, this tip is for you. And that is to make a budget. Yeah. Now, if you've already done a budget, maybe it's revamping your current budget.

So if you have not used every dollar, make sure to download that ASAP because every dollar is one of the best things that you can do when it comes to your budget, but also looking at your life. Because this is what I love about budgeting. You are able to see facts, real numbers of your life right there. And you're going to be able to delete some of these categories that you're like, we don't need it. We don't need it while you're getting out of debt. And again, you can trim things down. You can look at other categories that you're going to completely eliminate for the month,

but you actually see the numbers that are going on. And so it is. It's just so encouraging when you actually see things happening in real time. And that's what a budget does. Don't do a budget in your head and have, you know, like these ideas running around. But when you actually say, okay, I'm not going to get my hair done this month and you delete that, that could be hundreds of dollars for some of us that goes to your debt. I mean, like, you actually are seeing in real time money moving around, and that is what is so exciting. And again, it's temporary because then if you imagine all of the debt payments in your budget, if those were all gone and that was all at the top of your budget for you to be able to give

or save or invest or spend, that's exciting too. So it allows you to dream, but it also gives you reality of today. So you guys, all of you on your debt-free journey, we are here cheering you on. You can do this. Remember, it's temporary. It is temporary, but the deeper you sacrifice, the faster you're going to get out of debt. All right, you guys. hope some of those secrets, which you know, they're not really secrets. You know this stuff,

you guys, but you can do it. I really do hope some of those tips helped you. When it comes to your debt-free journey, we are rooting you on. And I want to thank so much for Anisha for coming on and being a guest on the show. And thank you guys so much for listening. If you love the show, make sure to leave a review. We love to hear your feedback. It helps us out so much. And while you're at it, hit that subscribe button and make sure to subscribe to the podcast and share it with all your friends and family to help them be intentional when it comes to their budget and paying off debt this year. Well, thanks again, you guys, and remember to take control of your money and create a life you love.