The Rachel Cruze Show - Trends That Are Draining Your Bank Account (and What to Do About It)

Episode Date: April 4, 2022

There are some crazy things going on in the world right now—let’s talk about what that means for your money! We’ll walk through what to do about the super high prices we’re seeing, how to avoid lifestyle inflation, and whether or not sports betting is a good money move. Plus, I’ll react to an insane clip from the TV show Love Is Blind! In this episode: Inflation Is the Highest It’s Been in 40 Years (What to Do About It!) Is Sports Betting Worth It? with George Kamel Financial Expert Reacts to Love Is Blind Money Fight   Helpful Resources: EveryDollar 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 sponsor has paid for the programming you are viewing: Christian Healthcare Ministries. Learn more about your ad choices. Visit megaphone.fm/adchoices

There's stuff out there you can't control. Okay? So we always talk about the pandemic. We can't control that. Now inflation, we can't control that. Wars that are going on all across the globe that are affecting our economy. We can't control that. Like there's so many things coming up that we can't control.

So what you can control is really important to put yourself in a good position. Hey guys, welcome to this episode of the Rachel Cruise Show podcast. I'm so glad that you're here. Well, in this episode, we're going to talk about all sorts of trending. topics. I'm sure you have heard about the reality show on Netflix called Love is Blind. I may or may not love it, but one of the couples had a really interesting money conversation on the show. So I'm going to dissect it. We're going to talk about that. And you're also going to hear a conversation I had with Ramsey personality, George Camel, on sports betting. And is it worth it? But first,

let's talk about inflation and lifestyle creep. All right, today we're going to to talk about something that hits home for everyone. You can't avoid it. It's here. Inflation. Okay, you may have heard of lifestyle inflation, which is like lifestyle creep, which just means that if you, you know, get a bonus at work or your income grows, you basically just take your lifestyle and let it grow along with the more money that you're making. So when you get a raise or a new job and you're making more money, all of that again, you just increase your lifestyle. So that is lifestyle inflation. Now, actual inflation is different. It is something you really can't control, but a lot of people have lived in lifestyle inflation over the years, and then you put actual inflation

on top of that, and things become very pricey. So, of course, groceries, gas, just for example, it just makes everything so expensive. And that's what we're dealing with right now, is actual inflation, and you're seeing it across the board. So here's some stats around what we're seeing. According to the Bureau of Labor Statistics, the prices of meat, fish, and eggs have increased about 12.2%. Beef is up 16%. And chicken is up 10.3%. And that's all from January of 21 to January of 22. And it's not just food items. Obviously, those have all gone up because of cost of labor and transportation and ingredients, but also gas. That's where everyone's feeling it. I feel like the most. It's terrible, you guys. It's up 50% in the last year. Electricity is up, 6.3% rent, 3.3%. And you add all

this together, and it really does add up. And no matter where you are, let me say that, no matter where you are financially, you feel it, right? Like when you're used to staying a certain dollar amount at the gas pump, and it's up literally double and you're thinking, oh, my, my gosh, when you check out at the grocery store and you see now what you're paying for groceries and you're like, man, you feel it. You really do. But that's another reason, though, why I want you to do the stuff that we talk about on this show. I want you to get out of debt. I want you to have an emergency fund. I want you to have margin in your life. Because while, no matter where you are, you're going to feel it financially, at least when you have margin, it doesn't really

affect the math tremendously. You know, when you are living paycheck to paycheck, this stuff is stressful. I mean, it is so stressful when you're looking at your money and you're thinking food and groceries, stuff that I need is costing so much. But when you have the margin to really kind of take the hit, if you will, it still doesn't feel great, but at least you're not in crisis mode. And that is why taking control of your money, you guys, is so key. Because there's stuff out there you can't control, okay? So we always talk about the pandemic. We can't control that. Now inflation, we can't control that. Wars that are going on all across the globe. that are affecting our economy, we can't control that.

Like, there's so many things coming up that we can't control. So what you can control is really important to put yourself in a good position. And so if you do get a raise at work or now, again, wages are higher than ever, it seems like. And so people are making more money. Don't increase your lifestyle. Take that margin now and pay off debt, save up for an emergency fund, actually be intentional with that. don't fall into lifestyle inflation because that's stuff that you can choose where you say, yeah, we want to spend more here and there because we're making more money.

No, still cut back and still sacrifice. So here are a few ways that you actually can control to avoid, if you will, lifestyle inflation. Know your values, okay? Have boundaries in your life. Know that you don't want to go into debt for anything no matter what. A debt-free lifestyle is a value for you. generosity is a value that you want to be giving at least 10% of your income every month,

and that is a priority. Maybe you're on Baby Step 1, and you're saving up a $1,000 emergency fund, and it's like all of your extra money, anything extra is going towards that, that's your value right now, saving up for that emergency fund. So know your values. Next, more tactical, but really important, set up automatic transfers. So this can really help you. If you're getting out of debt or even saving money, do this and say, hey, automatically, here, all of my debt is going to be paid, minimum payments. And then maybe manually, you go in and you throw any extra money that you're getting throughout the month towards that debt.

Or if you're saving up for an emergency fund and you're saying, or saving up for anything, right, to say, okay, we're going to put X amount of money away per month no matter what. And you're putting that and it's that automatic transfer so that you know automatically that money is going towards things that you want, your goals. Also, be mindful of what you're putting in your head, okay? So think about social media, right? How much are you just sitting there and putting in your brain what everyone else is doing all the time? I'm not mad at social media.

I think it actually can be a great way to inform people and to keep up to date with friends, all of that. I'm not mad at it. But if you're sitting there and stuck in it over and over day in and day out for hours on end, going down this black hole, eventually that's in your mind, you guys. So maybe you're saying, okay, for a season, I'm going to just have some boundaries around that. Think about the people that you surround yourself with. Are you around people that don't support you if you're making some sacrifices with your lifestyle to get out of debt or save up for an emergency fund?

Are they encouraging you? Are they cutting you down? They kind of make in fun of you. It's amazing. I find this, some of my friends that, you know, are just growing in life. So whether they're winning more financially or maybe they're working on their marriage and their marriage is stronger than ever or they're having personal growth, like these areas, when they bump up against friends that aren't growing in areas,

it's like this uncomfortable thing because I've had multiple friends tell me, like, yeah, we kind of get made fun of. Like, it's kind of just like jabs. It's like sarcastic and kind of joking. But think about that. Like, if that's the people you're around all the time, it's going to wear on you, okay? So you can control who you hang around with.

So there are some things in that world that, again, I just want you to be thinking about because lifestyle inflation is something that we can't control. We can't control normal inflation that's out there. It's going to happen, right? Gas is what it is. We can't control that. But when you're earning extra money, whether through a side hustle or again, you get a bonus, or you get a new job and you're making more money, whatever it is, still live the same life you were living and take that extra money

and put it towards your future because that is something you can control. Today, I have one of my favorites. I'll just say it. I'll say it. You say that to all of your guests. George Campbell, no, I don't. Okay, thank you. I sometimes usually will say my friends because I usually have friends here. We're not friends, but I'm your favorite. We are friends, George. I'm both. Yes. Okay.

Good, good, good. Side note, do you know my filter for if I can consider you a friend? What's that? If I have your cell phone number. Oh, I think you can say if I can share conspiracy theory with you. Oh, that's very good. Which we're up two for two. That needs to be another episode for sure, for sure.

Okay, but we are here not to talk about cell phones, not to talk about conspiracy theories. Even better. But to talk about sports betting. You look like a sports fan, George. I get that a lot, Rachel. Played an intramural in college. We're asking. Did you?

No. No. Not at all. Thanks for assuming that I was right. I was going to play a sport, George. What would it be? I was a skateboarder. And so we saw sports as like, that's posers, you know?

Yeah. Like we're real athletes. Extreme sports. That's what skateboarding is. Yes. Give me four wheels and a board and I'll show you how to do some drinks. We're off to the races. So sports betting is, it's a big deal.

I feel like it's become a big. industry. So for people that don't know what sports betting is, George, since you are so athletic and play so many sports. Here's the thing. If you know anyone who does sports betting, you don't have to be athletic. Anyone can do it. It's fair. So tell us what sports betting actually is. It's mind-blowing. It's when someone bets money on sports. I know that's it may be an oversimplification, but that's what it is. But you can do it from your phone. You can do it on website. So it's, it's become really easy. Anyone can do this. If your team wins, you can win some money. If your team loses, you lose some money, and you can also bet on more specific things that happen in the game.

Yes. Who's going to score how many points? Yeah, this person's going to score this amount of points at least, so you can get really nuanced in your bet. Yes. And there are tons of apps out there. You've definitely seen ads everywhere for bet MGM or draft kings or fan duel or Caesar's Sportsbook.

And the American Gaming Association, get this, predicted that 31.4 million Americans would bet about $7.6 billion just on the 2022 Super Bowl. On the Super Bowl. It's mind-going. $7.6 billion. With a B betting. It's pretty unbelievable. And then here's what's crazy, too. By the first quarter of 2021, sports betting had grown 270% from 2020. And at the end of the third quarter, sports gambling had become 38.67 billion. Again with a B, billion dollars. Okay. So what is, like, what's crazy? Like, it's obviously shooting up in popularity. So why is that?

Well, a big reason is that it recently became legal. So here in Tennessee, it became legal in May 2019, and it went into effect in 2020. And so in some states, like California and Texas, it's still not legal. Maybe it will be by the time people watch this. Wow. Texas and California.

I know. Who knew? They're aligned on something. It's amazing. I'm kind of shocked that California, it's illegal. Yeah. I kind of thought that everything was legal there. Who knows?

Who knew? There are four a lot of things. You tell us. You tell us. They don't like sports. They don't like sports betting. This is more mainstream than ever because of all the exposure. So it's become legal, and now they're advertising all over the place,

and they have celebrity spokespeople like Hallie Berry and Drake. So Drake's posting on on Instagram going, hey, I made a ton of money on sports betting because he needs the money, doesn't he? And so it's becoming even more popular as more and more celebrities normalize sports betting and go, hey, I'm a normal guy like you. I do sports betting. You should too. And so this is what happens.

You get a high from winning. Even if it's $5, $10,000, you get a lot. get a little high, and then it becomes really, really addicting. And what's sad is that 2 million adults are addicted to gambling in the U.S. right now. And that's just the ones who admitted it. Yes, and I'm going to say that's going to be growing. If these numbers of sports betting are growing and at the ease of how quickly you can do it and get into it and make a little bit of money here, lose a little bit,

but, man, you're just like overcompensating. That addiction is real. Totally. Absolutely. Okay. So do people really make money? Like, what's the stats? What's the numbers behind?

Do people actually make money? Sports betting. Just like any type of gambling, it's possible to make money. But people is a little bit too vague for me. I'm going to say a very, very, very, very small percentage of people are actually making any money. And even the ones that are making money are not making a significant amount of money. And the level of anxiety that it's creating as you stare at your phone and hoping that your bet's going to win, that is just not something I want people dealing with.

So the odds are not stacking your favor. These bookies, right, these are the gambling facilitators who figure out all of the odds. they are really smart, much smarter than you. You think you've done a lot of research. They've done 10 times the research you have. And so they rarely lose. That's what it comes down to. The house always wins in this case.

So you can spend all the time you want researching. They're still going to beat you. And keep in mind, if you participate, the sports betting companies are making big money off of you. You are the product in the situation. So, bottom line, George, Camel, will you be sports betting? Will I do it? Listen, if it helps people out there to not do it,

I'm going to tell you this, I don't do sports betting. But if you're into it, I'm not mad at you. Just like crypto. I'm not against people putting some money in crypto and having some fun with this, but don't play the game if you can't afford to lose. And most people, sadly, who participate in sports betting, they can't afford it. They've got student loans.

They've got car payments. They've such little margin in their life. And then with the last $10 they have, they're using it to hope they can double their money. That's not a good situation. Okay. So, listen, guys, again, we're not like these, We're not curmudgins who are just anti-fund.

We are extremists in some things, okay? But in this world of, like gambling and whatever, right? Just like he said, again, if you are in the place where financially, you're okay, you're out of debt, you have an emergency fund, you're funding your Roth IRA, like you're doing the things you should be doing. And you have some leftover money, and instead of going to target and spending it on clothes, you're like, hey, I'm going to, you know, I don't know, invest in crypto, like you said, or maybe you just do a little bit gambling, okay? So like...

You watch the big game with the boys and put some money on it. It's reasonable. reasonable here. And I'll tell you, some of the most fun. Is this confession time? I feel it. The most fun I have had. Sports betting, I don't get.

Let me just say that first and foremost. I don't understand it because I'm like, you're putting money and something you have no control over. And you don't get to play it because at least in Vegas. I knew where this was going. We've both been to Vegas. It was pretty fun. It can be fun. Okay, what happened with you in Vegas?

Because you're actually playing the games. Like, even if it's a slot machine and you're just pulling a lever, you're actually like engaging it, right? There's a physical piece. Crap, though. Craps. That's your game. That is my game. I had an envelope.

I took an envelope of cash, and I said, whatever money I win, I'm putting in the separate envelope, and I don't touch the separate envelope. Oh, that's smart. And when this money runs out, I was going to spend it all, okay? So I'm just like, I'm going to, this is the money, I can burn, whatever. So I spent it all, and then I went and counted the envelope of all my winnings, and I walked away with more money than what I came. So, anyways.

Good for you. I don't know if that's testament. But hey, what Rachel said is go to Vegas instead of sports betting. At least have fun doing it. I agree. I think. I don't know. I'm with you.

But there are similarities to other types of investments in gambling like Bitcoin, right? We hear about this a lot, cryptocurrency. This is not something you should be investing a lot of money into. I'm okay with you having some fun here and using your fun money on this, but I don't want you to spend more than you can afford to lose. And that's what you're saying. You went to Vegas with an envelope and a budget and said, I'm going to have some fun, just like if you're going to the movies or on a vacation.

Yep. And once the money's gone, it's gone. That's right. It's called responsibility, you guys. That's right. We can do this. Okay, so what would you tell somebody? After all of this, and they're like, all right, I am thinking about sports betting.

Okay. Well, I'm not mad. We can still be friends. I'll watch the game with you as long as there's buffalo chicken dip there. I enjoy that. Publix has great buffalo chicken dip. I didn't know that. From the deli?

Fantastic. Not sponsored, but it's good to know. It's fantastic. Okay. So if you've heard all of this and you still want to get in on online sports betting and get into one of these apps, remember these three things. Number one, like Rachel mentioned, you've done. got to be out of debt, have an emergency fund, and be investing 15% into retirement, first and

foremost. Second, never go into debt to place a bet. That is a dangerous, dangerous move. Don't never do that, yep. And lastly, like Rachel mentioned, budget for the bet. Just like you would budget for a night out or a vacation or anything else you spend some fun money on, budget for it. That's what it comes down to. It's it. I think it sounds great. We should do it for fun and see who wins. We should go. We should do a live event in Vegas. I like where they're this is going. And George and I will compete on who is best at crafts. Oh, no, no, no, you're going to beat me. I can't do craps. There's too many things going on. No, six and eight, George. Just remember six and eight. You know what? I'll just stand next to you and cheer you on.

You just keep saying six and eight. You just keep saying six and eight. I'll go for the free drinks. All you do. There we go. All right, George, thanks again so much for coming out. So where can people find you? Because you're a bundle of fun with sports betting. Wow. They're going to, they're going to want more of you, George. Okay, you can hang out. Follow me at George Camel, and as always, you can listen to the Fine Print Podcasts wherever you get your podcasts. If you know anything about me, there's a couple things in life that I'm really passionate about, and I really just have a heart for. And one of those is reality TV. Give me The Bachelor, give me the Real Housewives, give me some good reality TV, and it just makes my heart glad.

And a show came out, I guess it was last year, and I binge it. And then season two of that show came out recently, and me, like many of you, binged it. And that is love is blind. It's so good. Okay, for those of you that have not seen the show, they take guys on one side of these pods things, like with these rooms, and then girls on the other side, and they put one guy and one girl in these pods, but they can't see each other because there's a big wall in the middle, but they can hear.

and they get to know them over like a certain number of days, and they never see them. And then if they fall in love just because of the connection, then they propose, the guy proposes, and if they propose, then they see each other, then they go off to Mexico for a couple of days, figure out if the chemistry's there, all of it, and then they go to Chicago,

and they move them into an apartment for a few days as they plan their wedding, and then they go to the altar to get married, and either they say, yes, love is blind, I'm in love with you, and they get married, like two people did this season, two couples, or they say, heck no, I'm out of here, whatever it is. It's dramatic, and it is so good. And here's the best part. I was binging it. And one of the couples, who's actually one of my favorite couples this season, Natalie and Shane, started talking money. And I thought, oh, this is so good. So I want to just have a little reaction clip of this same. We pulled it up. My team, we got the clip. And it is so good. So we're going to talk through it.

So here is the clip of Natalie and Shane when they're in Chicago. Okay? So they've already gone through the pods. They've gotten engaged. I've gone to Mexico. Now they're back in, quote-unquote, reality. And they're starting to figure out life together

before they get married or don't get married. And here's the conversation they had in their apartment in Chicago. I feel like we definitely need a two-bedroom, but I think we should think about buying for first place. Only because, like, I'm, like, prepared for it. financially, so... I mean, yeah, but he needs to sit down and, like, look at our finances up, because I don't do that

at all, really, which is kind of probably not smart. Pause. Yeah. Shane, he doesn't look at it. So, right away, which we knew from Natalie and Shane through the season, opposites attract, okay? So Natalie, you can tell, she's

very prepared, she knows what's going on, she's very thoughtful, very insightful, very insightful. So, of course Natalie knows what's going on with her money. Shane, yeah, says he doesn't look at his money at all, which is a lot of people. And they continue the conversation and you can continue to see their opposites. So we'll keep going. I mean, do you spend a lot on going out and like clothes or things like that? Where I spend my money is on food. Oh my God. Over the probably $2,000. A month?

Okay, Shane, we like can't do that anymore. We need to be like really aligned on like numbers and like what are our financial milestones and like how much do we want in our? 401k. I don't really believe in 401ks. What? What do you mean you don't believe in it? I take risks a lot with that kind of stuff. So I guess that's where we are a little different.

Like I take, like taking risk. We can't just live a normal life where we just buy a house and put money in our 401ks. God bless. God bless, Shane. We just can't live a normal life. Quote number one and just buy a house and put money in our 401k. And number two, he said he doesn't believe in a 401K. God bless.

Okay, and here's the deal, you guys, that happens a lot. But here's the great thing. They're talking about money before. And what you have to realize is if that's you with your significant other and you really are these polar opposites, you know, how do you see the good in it? Because with Shane, I'm like, yeah, there is a time and a place to take a risk and say, hey, yeah, you know, we're young. We can kind of absorb that risk.

And if it doesn't go great for us, it's going to be okay. That can't be your whole life, though. Like, you can't take a risk 100% of the time because you're probably going to get to, like, age 60 and not have much money if you're spending that much on food and not making. I don't know how much she makes. But all of it. I'm like, no, no, no, no, no, Shane, you have to believe 401 cases are real. They are real.

And they give you stability, which you could see Natalie was wanting, wanting stability and predictability. But also, she could have a little bit of risk. So that give and take is so true. But, oh, God bless. God bless Shane. Shane, I don't believe in 401K. I'm like, oh, no.

Oh, man, it's too good, y'all, too good. So remember, it can work. You really can be very opposite and work together with your money. It is possible, it is. But you're going to have to learn from each other. And there's a basis about being responsible, you guys, out in the world, okay?

Fund your 401K. And once you guys, out of debt, have an emergency fund, it's going to work every single time. It is. The market will do this, but it's going to work. Okay, then once you're doing that, then you can have an element, you know, a small percentage of your net worth or your income that you go and do take risks. So you can scratch that itch. It's not bad. You can go and do that. But making sure you're doing the things that are going to make you wealthy over time. Because that's the key, right? Changing your family tree

and becoming wealthy, not just for yourself and to gather stuff for you, but to bless and help other people. So to get from point A to point B, the fastest way there really is a house. Paying off a mortgage and your 401K, literally the two things that make what we would say babysaps millionaires. Really, those are the two things that help people become millionaires today. So, Shane, if you want to become a millionaire, I suggest you fund your 401k and buy a house eventually. All right, you guys, hope you enjoyed a little. Love is blind. I mean, this is the world. this is it. We're in it. And if you don't watch the show, you should because it's pretty fantastic. And if you hate it, don't judge me. Such a good segment and so heartbreaking all at the same time,

you know, it just happens. All right, you guys, thanks so much for listening to this episode. Now, one thing I'm going to start adding in to these episodes, because I've heard from you guys that you've missed. I used to do things like Rachel's favorite things or stuff that I'm using and loving right now. and I kind of took that out and we've just heard from a lot of you that you want it back. So I'm kind of excited. We're going to have a little bit of a new segment at the end of each episode on one thing that I am loving and one thing that I am learning right now. So first up, the one thing that I'm loving is probably my Mac lip liner. Mm-hmm.

Thank you. Makeup. Sorry to all the gentlemen listening. but it is my favorite lip liner. I wear it on my show a lot. I wear it out and about. I love it. It's like a beautiful color,

and the color is sore, S-O-A-R. And it just goes with everything. It's kind of nude, but then it kind of has a little bit of, like, depth to it. I don't even know if the lip liners have depth. I don't know. It's just a perfect color.

I love it, love it. So thank you, Mac, for making a great color. That's one thing I'm loving. And one thing that I'm learning, I am learning more and more on how to cook you guys, different cooking techniques, new recipes. I know it's a little broad, but the one thing I thought, okay, what, Rachel, right now in this moment life, what are you learning? And it is, it's stuff around cooking. And it's not my natural bent to absolutely love

cooking. And I still don't know if I would say it's like my favorite thing in the world. But it might be my Enneagram 3. I don't know what it is. But after a full meal is made, I'm like, I did this. And then when it tastes good, it's even that much better. So one of my person I am following, if you have not followed her, she's really great, is half-baked harvest on Instagram. And she has these great videos because she actually will go through the recipe and show you. All her stuff is just really delicious. So she's kind of re-ignited my love for cooking. It's not really a love. I don't know what I would call it. My desire. That's it. My desire to cook more. She's helped with that. So that is one thing that I am learning. Well, this episode was so

fun. I love talking about trending topics and all of it. And I want to thank George Camel for being a guest on the show and talking about sports betting. Always fun conversation with him. And thank you guys again for listening. If you have not subscribed to the podcast, make sure to hit that follow button. And if the spirit leads, you can leave a review. As always, make sure to take control of your money and create a life you love.