The Rachel Cruze Show - The Best Ways to Budget Your Time and Money

Episode Date: February 27, 2023

Most people never feel like they have enough time or money. And I get it! But today is about the best ways to spend both of those things. I’m sharing my five favorite ways to buy back time. Then, we’ll cover the ins and outs of an all-cash budget and have some fun diving into the wild financials of the wedding industry.     In this episode: ·      5 Ways I Buy Back My Time ·      How I Created an All-Cash Budget ·      How Weddings Became a Multibillion-Dollar Industry Helpful Resources: Christian Healthcare Ministries Financial Peace University EveryDollar                                                 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 Learn more about your ad choices. Visit megaphone.fm/adchoices

It is so worth it. And what's fascinating on the app is it showed me at the end of this year that I actually saved $914 in 12 months from all the different deals that were going on. So it was like, buy one, get one free or whatever the thing was, which is pretty awesome. Hey, you guys, 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 ways that I buy back my time. I know a lot of you have asked me about this, so I thought, well, let's talk about it. I'll talk through how to do a zero-based budget. But first, we're going to talk about the best ways to budget your time and money. Take a listen. Buying back your time. Yep. So for me, one of the reasons that I'm extra thrifty in certain areas of

our budget is so that I can use the rest of that money to go back and buy back my time in other areas. So again, things wear out. They go out of style, but spending money on things that give me my time back with my family and eliminate stress is so valuable for. for me in this season of life. Now, a lot of this, you guys, it's extra, okay? So, like, there is a level of this that is luxury. So those of you that are, you know, getting out of debt or you're on baby steps one, two, or three,

I mean, all of your emotional bandwidth and financial bandwidth is going to get through those first three baby steps. So continue at that. And then after that, that's when you're able to say, okay, I may have a little bit more margin in my budget because I have no payments. We have an emergency fund. So now I can look to areas of like, okay,

I could pull back here or use this money here to go back and buy back your time if that's what you decide. But again, I'm saying this. I know this is a luxury. I know. But also, when you work this plan for over 12 years, hopefully you should have the bandwidth to be able to do some things that you love and help you with your life. So that's what we're going to talk about. So these are things that I personally have done to buy back my time. And the first one that I use consistently is grocery delivery.

yes, this is a luxury, I know, but I started doing this. I guess during COVID, and I realized, oh, my gosh, this saves me so much time. So I use Instacart. I know there's a lot of different services out there, but for me, it worked perfect. You know, it's the subscription. Yes, you have to pay for delivery fee. Or no, the delivery fee, I think, is counted in the subscription, but there's a, there's a tip. And they will mark up your food.

So when you're buying on Instacart, they are, it is a little bit more expensive. than if you just went to the store. So there is some markup there. But again, I'd rather put my money towards that and have groceries at my doorstep versus taking all three of my children slash sometimes terrorists slash whatever you want to add in

and having to do a grocery run. Like, oh, it is so worth it. And what's fascinating on the app is it showed me at the end of this year that I actually saved $914 in 12 months from all the different deals that were going on. So it was like, buy one, get one. or whatever the thing was, which is pretty awesome.

And then they showed me how much time I saved, and they show how they calculated it. But I saved 162.4 hours of my life using a staccard. I was like, mm-hmm, it's worth it. Worth it for me right now. It was great. It's great. Okay, the second thing we do to buy back our time is we hire out yard work. So Winston mowed our yard for the first 10 years of our marriage. He always did yard work. He always did yard work, and we never paid anyone. He just did it. He was awesome at it.

And then when we moved back in 2019, he sold the lawnmower. And he said, okay, I'm not going to do yard work. We will hire someone. And so that has given us two to three hours back, really, a week. And we spend about $80 a week on lawn care. And selfishly, it's so nice because he'd be out doing yard work. and I'd be in with the kids, and now we get Winston all Sunday. So it's great.

Okay, the next way that I buy back my time is I do have a house cleaner. It's $200 a week. Again, don't get mad at me, but that's just what it is. And they clean bathrooms and floors and do the deep cleaning, which is so nice. And honestly, it saves us two to three hours a week. And for me, it's worth it. It is. I'm like, I would take money out of out to eat and miscellaneous and clothes

and all of it to have someone deep clean. It's so nice. Even though I've already thought in the back of my head, I'm like, because, I mean, I didn't grow up like that. We had to, we had little buckets in our bathrooms with everything you needed to clean the bathroom. And I do want my girls and Charles to know how to do that. So maybe when they get older, I'm going to like ramp it back a little bit

to be like, guys, you got to clean it. You got to learn. But as the season right now with little kids, it's so nice. All right. The fourth thing is the target. red card. So this is the debit card at Target, and it's great because it gives me free shipping. So whether it's closed for the kids or we're low on paper towels, whatever it is, I can just put it on the app and use the red card and get some savings, and it ships to my door. And it's

awesome. It's great. Number five, I hired an interior designer when we built our house three years ago. So I did this, knowing it was going to cost. So when we were saving up for our house, we put this in the budget, so we knew the cost and what it would be. But I knew, from my experience, I am terrible at decorating and designing and figuring out a couch and, like, table and access. Like, I'm just terrible at it. I am. So our old house, I spent so much money, kept redoing it.

Like, I would go to pottery bar. I'm like, oh, maybe these pillows would work here. Or I need this lantern here. And I would, like, end up buying things to try to make our space look better. and it always just looked terrible because I'm not good at it. And I was like, you know what? If we're going to build this house, I want to do it right and do it for years and years and years and years. So if I'm happy with what they do because they're a professional,

then I don't have to go and buy all this crap to try to make it look and feel better. Like it's done. It's done. And it is investment, but it will last years and years. And so we did it. And I'm telling you, we're three years in and I don't want to change a thing. Probably for another like three to four years. So I'm going to say it was a solid.

seven to eight year investment. It feels good. And we, I don't know why I just thought about this, because maybe because my kids spilled a bunch of food on the couch the other day, but we, like, got all the cushions and everything, like scotch guarded, because I was like, these couches have to last us for years and years and years and years

because I'm not buying another one. And so all of it. We did it all, but it was way worth it. All right. Some other people that I've talked to that they have different ways that they buy back their time, so just some ideas. Some people use a laundry,

service. And you can outsource home improvement projects like painting or floor installation. Some people use a dog walker. That's another way. Others I've heard use a personal assistant for like three to five hours a week at $25 an hour. And they go in and help with whatever the person needs, whether it's laundry or groceries, and they have someone do it, which I thought was great. Having someone do your taxes, that'll save you some time. Meal services and subscriptions, that will help with cooking. If you're listening and thinking, wow, I could really use some time back, but I don't know how to prioritize all of this. Those are just a couple of examples for you to think through, okay, what are areas in

my life that are stressful? So ask yourself these questions. You know, what is important in my life that I'm missing out on? Because I have to do this other stuff, right? Is it time with kids or working out? And if you have the financial bandwidth and margin to plug that in and outsource that stuff, that's helpful. Think about some high stress situations and think, again, how can I outsource

that if I have the bandwidth in my budget? What are areas in your life that you start to feel resentment towards? And even the last thing you can think about is that it's okay not to do it all. I know I felt this for a while. It's like I have to do it all. And if I outsource that, it means I'm lazy or I'm, you know, wasting money or like, oh my gosh. But after a while, once you kind of get into it, you're like, okay, it's okay to ask for help. You don't have to do everything yourself. And again, this is if you have the margin financially to do it. Take it. Take it. of it. It really is so helpful to have people help you in your life. All right, you guys, make sure to share this with a friend who could use a little margin in their life. And again,

I know it's a luxury, but when you're to the point that you have the bandwidth and your budget, it is worth it to get your time back. Today, we're going to talk about how I created an all-cash budgets. Now, the term all-cash is really popular right now, but basically what that means is a zero-based budget, which we have been teaching. for decades. Now, before I show you how to create your budgets, let's make sure we're on the same page about what an all-cash budget is or a zero-based budget. So a zero-based budget is your income minus all of your expenses, including giving and saving, should equal zero. So again, all of your spending, saving, and giving should equal to your income. So you're using all cash

and no credit to fund your lifestyle. So if you make $3,000 a month, everything you give save and spend should add up to $3,000. Now, a quick call out, a zero-based budget does not mean that you have $0 in your bank account. It just means, again, that your income minus expenses equals zero. So, keep some buffer in your checking account for when things pop up that you may have forgotten about. So that's the worst, though. Everyone's like, well, I did a zero-based budget and I had zero in my checking account. I'm like, no, because you could probably overdraft if you're not careful. So keep a buffer in. All right. Let's take a look at what a zero-based budget. based budget looks like inaction. So let's say that you're making about $70,000 a year, which is the

average household income in America. That means after taxes, you're bringing home $4,700. So for this example, let's say that you're on Baby Step 3B, which means you have paid off all of your debt. You have a fully funded emergency fund, but you are saving for a down payment on a home. Okay, so as we look to see what to do with this $4,700, again, saving for the down payment is going to be important. Also, giving is going to be important, so that's going to be high up. And then we talk about your four walls, which is food, shelter, utilities, and transportation. So that's going to be first, which you'll see in this example. And then everything else is listed below.

So here we go. You ready? Again, giving should be first. I always recommend 10%. So in this example, it would be $470. Next is savings. So you're committed to $1,200 every month to save to reach your down payment goal for the year. Next, we're going to go to home.

So let's say that you pay $1,000. $1,000 in rent, utilities is $275, and then you look at transportation. So that's gas for your car, $200, and car maintenance, $75. Then you're going to be looking at food, so groceries is $400, and eating out is $100. And then insurance, all the adult stuff, health insurance, $400, car, $150, renter's insurance, $20, and life insurance, $60. Then you get to move to your lifestyle. So you have Spotify for $10 a month, Netflix, $15 a month. Maybe you have a friend that had a birthday, so you're going to spend $25 on her, a gym membership for $100 for the family.

Also a miscellaneous line item just for the kids for $100. And then I'm going to put some fun money for me in this example for $50, and then Winston, $50 for fun money. And then some miscellaneous home expenses, which always end up coming up. So let's put $100 for that. Now, anything left over again, we're going to put, towards the down payment that we're going to save up for. That's one of our goals. And then we're left at zero, and we did all of this with no debt. Isn't that beautiful where you take your income and you

spread it around and you are intentional with it? So here's the deal. If you want to make progress with your money, you guys, you need to do this. You need to do a budget. And for some people, you know, they get to tax time. It's April 15th and they look at what they made for the whole year. And they're thinking, where did my money go? Well, with a budget, you will never be wondering, okay? You'll know exactly where it is going. John Maxwell always says that a budget is simply telling your money where to go instead of wondering where it went.

And I love that. So it's empowering you have a say over your money. And again, a zero-based budget is best. So you know where every single dollar is going. And listen, you work hard for your money. Think about it. The money you bring in, you put hours in. Maybe you're driving to work.

Maybe you're dealing with a jerky boss. like you're putting some hours in people. So you want your money to work for you and not just let it go into the abyss and have no clue where it's going. Now, you can do your budget on paper like this. I personally love every dollar. It's our budgeting app.

There's a free version that you can check out, but it will walk you through how to do a zero-based budget. And I love this because it's on my phone. Winston and I have the same login information. So he has the same on his phone. And so we're looking at the same budget. Even if we had to change something mid-month, we can do that on the fly.

If a transaction comes up, I usually screenshot it. I'm like, what is this? Because I got to drag and drop it to a category. And we're just in constant conversation about our money and where it's going. So it is so, so helpful. Now, wherever you are in your personal finance journey, a zero-based budget is going to help you. And it is what you need to move forward.

So whether you have tons of debt, you feel like you're living paycheck to paycheck, or maybe not. Maybe you're investing for the future and you're, you know, maybe step seven. I don't know, regardless of where you are, still. be intentional with your money. So get out there, you guys. Budget and make sure to share this with a friend who's also wanting to make progress with money goals because the budget is going to help. And let me know how it goes in the comments below because I'm cheering you on. Today is a very interesting episode because we're going to talk about the billion dollar

wedding industry. Yep, that's right. So whether you're married or not, this stuff is just fascinating and hopefully will give you a new perspective on why there is such a market. up for specialty things and occasions like weddings. So let's dive in. Okay, to start, have you ever heard of pink tax? Well, we talked about it on an episode of Smart Money Happy Hour George Campbell about how it's been proven that women end up paying more for feminine-type things than men. So, you know, you have two razors next to each other, a guy's razor and a girl's razor. Statistically, the women's razor is going to be more expensive. Shaving cream, toothpaste. You can just throw anything out there, and usually women end up paying more for the

their stuff just because it's marked up, and that's called the pink tax. Well, in the same way pink tax exists, there's a thing called wedding tax, and it is very, very real. So services and products and vendors for weddings cost way more than it would for an event like a work party or even a birthday. So, for example, if you order a wedding cake, it could cost you thousands of dollars. But if you ordered a plain white three-tiered cake from Publix for a birthday party, then you're probably going to pay half the price. So saying word wedding already means a huge markup. And people get so caught up and the fun and the excitement that they forget that ultimately the business of weddings is simply a business. So they pay what it costs. So what is a wedding going for these days?

Well, it obviously depends on a lot of factors, like the wedding size, the part of the country, the venue, all of it. But in 2023, the knot is estimating weddings to cost just under $30,000. So what goes into that? Well, the dress on average is $1,300. The venue, $10,700 on average. Photographer, $2,500. Florist on average is $2,300.

The cake, $500. And we're just getting started. The list keeps going. So can we just take a minute to remember what we? weddings were like, when our grandparents were getting married, or even our parents, right? You think about the 50s, 60s, 70s, and they were not big and glamorous. No, in fact, the receptions were like at the home of the bride or even like the fellowship hall at the church and there was just like cake and punch and that's it. So simpler times. But today, it is lavish. People go all out.

I mean, it is crazy. But back then, it was on average. $2,500, which is what a photographer costs just today. So let's put some things in perspective here. There was a quote from a New York City wedding planner, Emily Monis, and she said, weddings are, and I say this with high regard. They are a luxury. They are not an obligation. Weddings are optional. You don't need a wedding to be married. Oh, my gosh, coming from a wedding planner. And I love that. Because so much of life you guys now, it feels like it is like, oh, this is how it is. This has to happen in order, you know, like a wedding. It has to happen for me to get married.

And in fact, when you really take needs versus wants, it is a want. It is. It's an exciting want. It's a want that every, usually, every woman wants, right? Like, it's exciting. But it is a wants. So is everyone who is planning a wedding, are they doomed to pay an arm and a leg? No, not at all.

There's some ways around it. And in fact, we found a Vox article featuring multiple wedding planners who all agree that a wedding can totally be affordable if you use this approach. First, they say, to figure out your budget. Oh, thank you. Thank you. Yes. Figure out how much money you want to spend first and let that be it.

Okay, have the amount. And that's it. No more, no less. Like, that is it. And then you're going to line up your big ticket items. next. So again, the stuff that's the most expensive. That could be the venue, the food, all that stuff, right? Your big ticket items. And then you continue to work down to the less expensive items. And I do like this approach because you could get down and be like, wow, we ran out of money and

am I able to do all these smaller things that I really want. So let's go change the cost of the dress, or let's go change where the wedding is. Like you can actually take those big ticket items and shrink them to find other options in order to get everything. But I love that way to, you know, approach a wedding budget. But a lot of people get into trouble with the aesthetics of their weddings. So think about the floral arches, the live band, the donut walls, like all the stuff that makes it look beautiful. That's where people end up spending so much money. So the knot says that 50% of people spend more than the initially budgeted for their wedding. Yeah, because they get into the world, they're like, oh, I need this, I need that. I need that. I need that.

this. And one of the wedding planners featured said, it's so easy to get pulled into spending so much more financially, not to mention emotionally than you bargained for. It's a multi-billion dollar industry for a reason. And she goes on to say, I know that this is one of the most important days of your life, but do you want to spend the rest of your life paying for it? Another great quote. Yeah, let that sink in a bit. And I also found that one in three couples are going into debt. to get married. So in 2021, it was quoted that the average wedding debt for a couple was almost $12,000, you guys. And I hate to say it for what? For flowers that are going to die a week later? Like, I mean, it's pretty unbelievable that people will go into debt for it and then they have to

continue to pay for it like months and even years after. So another wedding planner featured in the Vox article said, if people don't have food, a location, and a safe. way to get to and from the location, then what doesn't matter if it's pretty? So it's an important thing to think about, though, okay, you know, 10 years from now, what am I really going to care about? 10 years from now, what is really important to me? And again, the aesthetics and all of that, like, I get that you want it beautiful. But here's still, you can make it beautiful and it not be very expensive. Like, there are ways to cut corners because I get it. Yeah, no one wants to walk in and be like, oh my gosh, this is the ugliest thing I've ever seen. This is my wedding. No, no one wants that.

to be beautiful, so I can appreciate that. But staying within reason and staying within your budget, which again, your budget is going to differ. Depending on who you are, what your income is, what your debt level is, like all of it. It's going to look different for everyone. But when you have the cash for it, it's worth it to just work off of that versus going into debt.

And remember, your loved ones are not going to remember that, you know, $5,000 floral arrangement 10 years from now. They're probably going to remember like, okay, did we have fun at the wedding? I just remember these, like, sweet moments, if they even remember your wedding at all. Can I say that, too? Most people, they're not going to remember. They're not just the way it is.

So that's why you really do want to say, okay, what is my why behind spending all of this money? So ask yourself questions like, is this an expense for my spouse and I, like what we want, or am I trying to please someone else? There's another one. If no pictures were taken and shared all over social media, I want my cake to be different. my bouquet, my dress, what is it about the outside world that you want to impress that you're doing now?

That's a big one. And then think through, which is a hard question to answer, but ask it anyways. Will I care about this in 10 years? Will you? I remember my bridesmaid's dresses, the color, I was like, I mean, I was so stressed.

I was so stressed. I was like, I was so stressed. I was like eight different types of fabrics for the champagne. I don't know, I don't know. And I went like a week stressing about it. And now I look back, I'm like, those were the ugliest dresses.

why did I choose that color? So all of the stress and what you think is important, I promise over time it just doesn't become that. It's not. I want you to have a great time at your wedding. But please remember that this is a industry, and they are going to be charging you a lot. So weddings didn't become a billion-dollar industry

because companies and vendors cared about you and your perfect day and what's best for you. No, they're trying to make a profit. It is a business. So remember, your wedding is about your marriage. and your marriage is going to last a whole lot longer than just that one day of celebration. And again, I understand. I don't want to be Debbie Downer on weddings because you want to enjoy it.

Like, you want to have fun and be proud of it. Yes, all that. But don't throw common sense out the window. It is not worth it. It's not worth it. And you don't have to match what your friends are doing either. So put the blinders on and just say, man, okay, I'm going to focus on us and our budget. Because you could have a friend that has an insane budget, right?

And she's going crazy. friend that goes deeply in debt. You could have a friend that, you know, is eloping to the courthouse, and you don't want to do that. It doesn't matter. Whatever your friends are doing, good for them, but put the blinders on and focus on your wedding. And then again, maybe just ask some questions of the people that you feel like did it well. Be like, hey, how did you do that? How did you do this? I like, I like, how them tell you the prices? I'm like, well, you share that with me because you can get some good ideas. And this is where the internet is great, too. So many ideas out there. So your budget, be reasonable because listen, you're not J-Lo. So you don't need to have a wedding like

J-Lo. You don't need that. All right, you guys, make sure to share this with a friend who you know is maybe planning a wedding or maybe in their future just to give them a little encouragement. Thank you so much for listening to this episode of the podcast. If you have not hit that subscribe button, make sure to do it. And what is so, so helpful is if you leave a review of this podcast. So if you love it, please, please, please leave a review. And if you know somebody that has been talking about budgeting or they feel like it's really complicated, make sure to send them this episode to give them a peace of mind that they can budget their time and money. So thanks again, you guys.

And remember to take control of your money and create a life you love.