Podcast Summary
Exploring the 'of course' trend in finance: The 'of course' trend on social media can be entertaining but also lead to unhealthy comparisons and stress. Focus on personal financial goals and progress.
Social media trends, such as the "of course" trend, can provide entertainment and insight into various aspects of life, including finance. Rachel and George discussed this trend, which involves filling in the blank in the sentence "We're _____, of course we're going to _____," and shared examples, such as teachers wearing holiday earrings or a plumber earning more than an honors college student. They also highlighted their late adoption of the trend and poked fun at their own experiences. While the trend can be amusing, it's important to remember that everyone's financial situation is unique, and comparisons can lead to unnecessary stress or dissatisfaction. Overall, the discussion emphasized the importance of embracing individuality and focusing on personal goals and progress.
Baby steps to millionaire status: Backgrounds and preferences don't limit financial success. Anyone can reach millionaire status through personal efforts and 'baby steps'.
Despite our differences, such as being from different regions or having varying levels of affection towards dogs, we can all strive towards financial success. The term "baby steps millionaires" refers to individuals with a net worth of $1,000,000 or more. This discussion highlights that achieving financial milestones is not limited by personal preferences or backgrounds. While some may find joy in owning dogs, others may prefer to focus on their homes and savings. Regardless, the journey towards financial security is a personal one, and everyone can take baby steps to reach their goals.
Baby steps millionaire: Intentional financial planning and hard work: Achieving baby steps millionaire status involves financial planning, budgeting, and hard work, regardless of inheritance or lottery wins. Focus on creating financial privilege for future generations.
Becoming a baby steps millionaire is not about inheriting wealth or winning the lottery, but rather the result of intentional financial planning and hard work. Rachel Cruise, Dave Ramsey's daughter, emphasizes that she had a head start due to her father's teachings but acknowledges that she and her family still had to put in the effort to follow the principles and budget every month. She encourages everyone to create their own privilege for their kids by focusing on their dignity and ability to provide a better life through financial independence. The definition of a baby steps millionaire is having assets worth more than liabilities, meaning no debt. It's an achievable goal that requires dedication and effort, and the earlier one can reach it, the more impact they can make during their lifetime.
Start by creating a budget with EveryDollar: Use EveryDollar app to create a budget, understand income and expenses, and make intentional spending decisions for financial goals
To improve your financial situation, you should start by creating a budget using an app like EveryDollar. This budget will help you understand where your income is going and allow you to make intentional spending decisions, rather than reacting to expenses. By budgeting, you can work towards financial goals such as building an emergency fund, saving for retirement, and paying off debt. This process can be eye-opening and may require some difficult decisions, but ultimately, it will give you a sense of control over your finances. Remember, the first step is to download EveryDollar and start budgeting today.
Budgeting brings transparency, accountability, and peace of mind: Budgeting helps avoid stress and debt, brings spousal alignment, and brings joy from saving
Having a budget, even as a Baby Step 7 Millionaire, brings transparency, accountability, and peace of mind. Budgets help avoid unnecessary stress and debt, and the use of a budgeting app like EveryDollar allows both spouses to be on the same page. Furthermore, the satisfaction of finding a good deal or saving money, even on full-priced items, can bring a sense of accomplishment and joy. The speakers emphasized the importance of living within your means, using cash or debit cards instead of credit, and being proactive in finding deals rather than relying on credit card points.
Living Without a Credit Score: You don't need a credit score to buy a house, rent apartments, or even rent a car. Focus on a low debt-to-income ratio and the ability to pay bills in full.
It's possible to live a fulfilling life without relying on a credit score. The speaker shared her experience of buying a house using a no score loan through manual underwriting, where a real person reviewed her financial statements and other information instead of relying on a credit score. She emphasized the importance of having a low debt-to-income ratio and the ability to pay bills in full. The speaker also mentioned that she has successfully rented cars, apartments, and hotels without a credit score. She encourages challenging the belief that a credit score is necessary for various aspects of life. The use of tools like Honey for finding promo codes can help save money without relying on credit.
Focusing on good credit and long-term investing: Buying a used car or waiting for cash instead of debt, and focusing on good credit and long-term investing leads to financial growth
Having a good credit score is essential in the financial world, and checking the stock market daily is unnecessary for long-term investors. For baby steps millionaires, buying a car in cash is generally a better financial decision than buying a new one with debt. The value of a new car depreciates significantly over time, and carrying debt on a car can lead to significant financial loss. Instead, consider buying a used car or waiting until you can afford to pay cash for a new one. By focusing on building wealth through good credit and long-term investing, you can avoid unnecessary financial burdens and move closer to your financial goals.
Consider saving up cash or using other means to purchase a car instead of getting a car loan: Saving up cash or using alternative methods to purchase a car can help avoid the financial burden of car loans and contribute to wealth building
Cars are a depreciating asset and getting a car loan can be detrimental to your financial health. Car dealerships make a significant portion of their revenue from financing, and even with low interest rates, the payments can be a substantial burden. Instead, consider saving up cash or using other means to purchase a car. Additionally, having a financial advisor or investment professional review your portfolio can help you identify blind spots and optimize your wealth-building strategy. They can provide valuable insights on taxes, planning, and charitable giving, among other things. Overall, taking a proactive approach to managing your finances and seeking expert advice can help you build wealth with more confidence.
Finding joy in small luxuries and splurges: Small indulgences can bring happiness and relieve stress, but be mindful of online purchases and find balance between present and future spending.
Small luxuries and splurges can bring joy and satisfaction, even when following a plan to build wealth with no debt. The man's desire for a queen-sized bed, despite never having experienced one, is an example of this. Similarly, small indulgences like getting a gluten-free crust or having well-manicured nails can bring happiness and relief from everyday stressors. However, it's essential to be mindful of online purchases influenced by social media feeds, as they may not always live up to expectations and could lead to regret. Ultimately, it's essential to find a balance between saving for the future and enjoying the present, and not letting money control your decisions.
TikTok Influences Purchasing Decisions for Small Items: TikTok's marketing power can lead to impulse buys for seemingly insignificant items, but having a designated place for everything can bring joy and organization.
Social media, particularly TikTok, can influence purchasing decisions through effective marketing, even for seemingly insignificant items like drawer organizers. Sherry shared her experience of buying organizers after seeing repeated ads on TikTok, despite already having a similar product at home. While she doesn't regret the actual purchase, she feels she could have gotten a better price elsewhere. However, she acknowledged the benefits of having a designated place for everything, which has helped her keep her drawers neat and organized. Another takeaway is the power of a well-crafted recipe or drink, as demonstrated by Sherry's highly-rated mocktail made with fresh blackberries, rosemary, agave nectar, ginger beer, and lime juice. The conversation also touched on the importance of finding joy in small things, whether it's a well-organized drawer or a delicious mocktail.
Sharing the love for Smart Money Happy Hour: Listeners are encouraged to engage with the community, share the podcast, and leave comments. A listener's appreciation at Disney World highlights the show's impact.
The hosts of Smart Money Happy Hour, Rachel and George, express their gratitude to their listeners and encourage them to share the podcast with others. Rachel shares a heartwarming experience of a stranger recognizing and appreciating the show at Disney World. The hosts invite listeners to leave comments, subscribe, and engage with the community. They promise a new episode next Thursday. Overall, the podcast conveys a sense of connection and appreciation between the hosts and their audience. The hosts' passion for their work and their genuine interaction with their fans make Smart Money Happy Hour a must-listen for those interested in finance and personal growth.
