The Rachel Cruze Show - Sharing Hot Takes on Controversial Money Topics

Starting point is 00:00:05 So today, we decided to lean into the fun, and there are a handful of financial topics in this bowl that are controversial. And I'm going to pull one out, share my hot takes. It's going to be fun. Make sure to like, subscribe, and share this episode with a friend. All righty, y'all ready? First topic. Using credit cards for points. Oh, yeah.

Starting point is 00:00:30 I see you. Credit card. I see you. Okay. Listen, here's the thing. I get that there's a game and I get that people that were like, okay, but I did this. I got to fly to Alaska and then to Tokyo and then to Dubai all for free, first class, because my credit aren't points. Like, whatever, whatever, okay?

Starting point is 00:00:48 I hear you. But what we have to understand is, like, they are playing the game on the other end and they are making billions of dollars, you guys, like so much money off of us. And to understand, okay, they are winning at a game and I am not. So what you don't see in some of that is not only the amount of money you tend to overspend when you use other people's money, and that's been, that has been proven through studies. And also the fact that you may be paying your credit card off every month, and you're like, yeah, but I'm not paying interest. Well, it's the people that aren't paying their credit card off every month. And some of these people are very much struggling, that then that's how the perks get paid to get paid out to other people. So, like the whole thing about it, I don't like.

Starting point is 00:01:32 And I don't like the idea of a credit card either because I don't want to build the end of the month. Like, I want to pay for the thing in the moment for my jersey mic sub or whatever it's going to be, like in the moment, and that wouldn't be done with it. And so there's something about living in the present with your money that's really important. So get the credit cards out of here. But I know that's controversial. All right. Should the government forgive student loan debt? Ah.

Starting point is 00:01:56 Okay. I mean, I have my heart. Let me say this. My heart and my head say two different things because my head, says, which is the truth that, you know, you sign up for something, you owe it. Like, that's what it is. Like, that is the truth of it. And to have other people pay for something that you signed up for, I could see it's not fair. Like, I get that. Now, my heart says, though, that, you know, these 18-year-olds that are signing up for these loans, a lot of them don't even know what

Starting point is 00:02:23 they're doing. Like, their frontal lobe isn't even fully formed. And it's the, sadly, the irresponsible people in their lives, they're like, go and do it. Yeah, this is great. and then they get themselves in a mess. And so I hate that they take on some of them, basically a mortgage, like so much money, some of them hundreds of thousands of dollars in debt. And nobody seems to, you know, talk to them about this. Or the industry isn't like, hey, that's probably not a great idea. And they're 18-year-olds doing this.

Starting point is 00:02:53 So, like, my heart, I hate it. I hate it so much because I don't think it's fair in one way that you're 18 and you sign up for this. And you may not even know what you're signing up for. You don't realize it. But then on the other hand, you know, you sign something, you got to pay it. So, ugh, that's a hard one, but is what it is. All right, getting a pre-nup. Bah.

Starting point is 00:03:15 Okay. Okay, my take on pre-nups, I always, my, like, knee jerk is always a no. I don't like the idea of saying, like, okay, well, this is mine and this is yours. and if something happens, like, you know, we get all this divided up. I don't know, there's something about it that I'm like, you just want the idea of marriage to be what it is, like this lifelong commitment, right? But then, on the other hand, knowing that that doesn't turn out what half of the time. And if you have a lot of assets going into a marriage, then that is the one time that I would say,

Starting point is 00:03:50 yeah, maybe a pre-nup is not a bad idea. If there's a major financial discrepancy, then, you know, there's a time and a place for it. So I'm not a black and white no on pre-ups or a black and white, yes. Some people are like, no matter what. But I'm like, no, I'm sorry. They're like 2014 Honda Civic. Like, okay, sorry. If the assets get divided away towards like, let that be part of.

Starting point is 00:04:12 I don't know. There's something about this like gatekeeping I don't like. But if there is a discrepancy there and you feel like this would be a wiser move to do the pre-nup, yeah, I get it. Next, giving 10% of your money or more away. So we always say to be giving regardless of where you are financially. And a lot of people think, well, gosh, but I can be using that money to get out of debt or to save it for my emergency fund or do other things with it. But when you are talking about money, you're talking about the whole person because we are the ones handling our money. And the character that you put on as a person throughout your financial journey is so crucial. And when you give and you live your life with an open hand, there is a selflessness. There is a place of serving and giving and sacrifice. That's really beautiful. And having that to be a part of your life and your character, regardless of where you are financially, I'm on board with. Before I see what else is in here for us, let me tell you about one of our incredible sponsors, delete me. So if you don't remove your personal

Starting point is 00:05:15 data from the internet, it's basically like a billboard for everyone to see. It's your name, your address, your email, even your kid's names are out there on sketchy data broker websites. And those data brokers then collect your data and sell it. And that puts you. you at risk for scams and fraud. But the good news is, delete me removes your data and helps protect you from fishing, harassment, and other online threats. Your family's safety and financial security are way too important to leave exposed. So go to join deleteme.com slash Rachel for 20% off their annual plans, bringing your monthly cost to under $9 a month or click the link in the description. All right. Next step. What do we got? What do we got? Sports betting day trading

Starting point is 00:05:57 crypto. No, no, no, no. All of this. Yeah, I'm not a fan. I'm not a fan of sports betting. I think it's stupid. I mean, do what you want with it, but I mean, it can lead to some dark places. And there are a lot of stories out there, you guys, where people get in over their heads and it's not good. Not good. Day trading. It's very risky. I'm exhausted. I'm sorry. I don't have time. I don't have time to sit there and be on my phone. on Robin Hood and like, no, I can't. So mutual funds, long-term investments, high-yield savings. I mean, all of it. I'm like, just go, let it be, and let it ride the wife. And I just want to enjoy my life and have some peace and not be looking at my phone all the time, even though I do sometimes for social media. I don't want to look at it to date trade. And then crypto, I'm just not a fan.

Starting point is 00:06:49 I think it may become legit here in a little bit. And some people are like, it is legit now. I'm like, no, it is so freaking all over the place. And the amount of calls we get on the Ramsey show with crypto scams is horrible. So it's an industry. I'm not willing to be in on right now. And a lot of people love it. And the crypto bros, like, think it's amazing. But, again, I'm old school and have a lot of peace in my life because of it, I think.

Starting point is 00:07:12 So there's that. All right. Next. Paying for kids at college using home equity. No, do not pull equity out of your home to pay for your kids' college. No, no, no, no, no. Your kids, they can go in state, they can go to a community college, scholarships and grants, they can work, they can take a gap year, work, you know, save a lot of money. I mean, there's ways to do the college thing, but taking equity out of your home to do it.

Starting point is 00:07:40 That's a hard no for me. Next, having a 15-year versus a 30-year mortgage. Okay, so we always recommend a 15-year because part of getting out of debt quickly is putting systems in place. that help you do that. In 15-year, it's going to help you get out of debt and pay off your mortgage in 15 years. Now, hopefully you do it sooner than that. We see that a lot of people are paying off their homes in like nine years, eight years, which is amazing. But the idea that the 30-year, everyone's like, I can pay it like a 15. So listen, it's just one of those things. Put yourself in a system that's going to get you to where you want to go the most efficiently, and a 15-year does that. Now, if you want more information when it comes to real estate in general, go to Ramsey Solutions.com

Starting point is 00:08:27 slash real estate, and you can access our dashboard, and there's so many helpful resources and tools on there when it comes to the home buying process and just kind of what's going on in the market. So that's a fantastic place to check out. All right, last but not least. Charging kids rent if they move back home during or after college. I mean, honest, I'm not like the biggest fan. I get the motivation is because you want them to feel like they are contributing something, or if they were out on their own and paying their own rent, it would probably be more expensive, but at least they're doing something so that's in their budget.

Starting point is 00:09:01 Like all of that I understand. But if it's for a season, because I'm not a fan of someone living at home for like a long period of time. So for a season, I probably wouldn't charge my kids' rents just because I want them to be able to have their budget, know what they're going to do when they launch into the real world and actually start to live on their own, that that part of budgeting and part of paying for things is already going to be mapped out and they know it's happening. So I think some parents want to, for like responsibility's sake. So it's not a wrong thing.

Starting point is 00:09:31 But I don't think it's absolutely 100% necessary. All right, my controversial hot takes don't end here. Make sure to check out six things. I teach about money that will make you angry or wealthy. That's coming up after this. Or if you're listening on podcast, I will put a link below. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - Sharing Hot Takes on Controversial Money Topics

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