$15k in debt to financial freedom. Here's how we achieved financial success

Friday, November 17th

00:28:13

The best way to get back on your feet financially is to learn how other people have done it.

This week we talk candidly about our personal budgets and how we got out of debt.

 

Thanks to our friends at Family First Credit Union for supporting the $even Figure$ podcast
A helpful, educated team in our community that enjoys helping you live a financially healthy life

https://home.familyfirstny.com

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Welcome to seven figures I'm your host the CD waters seven figures is presented ideally first credit union local financial products and services designed to would you mind to help you and your families save and spend smarter. Thank you for making time to listen to the podcast again this week thanks for giving us a reviewing and rating and a iTunes and sharing of podcast with friends. We all generally have the same financial goal in mind we want financial freedom we want to be able to retire we don't want to stress about how we're gonna pay then next available war. That surprise expect now. The way we give there is a little different for everyone yes there are some common themes he'll pick up I'm with each new episode what we have our own interpretation. To the way we budget to how we manage our money and make the important to learn from each other. To get ideas from other couples so that's over gonna do today hopefully you'll find something that they work for you don't. I invited my husband to join a podcast Mike danger who hosts a sports show ID ESPN Rochester with his partner gene that tag yeah. Who's here with his wife Julie hello sandy I sandy our relationship with money. Starts in our childhood bright danger you and I grew up very differently. Any had to make that's pretty much why I assume the bulk of the responsibility with the family budget yeah. When it comes to the managing the finances. Are the first to admit it's not my strength it's nothing that I was raised. Off on it's nothing that I learned is a kid in by the way I think this is like a bigger issue when you're your kids are in high school they don't learn. About one of the most important things that they're gonna be judged on as they grow in life how to manage money how to acquire money how to work hard for money what to do with that money once you make it. So I was never. I was never taught that. Growing up my parents were not good with money. I didn't come from you know I didn't have at him a lot of nice things growing up I didn't have Leno won't wealthy. Mom and they did what they could but their idea of managing money was our low balance a checkbook for the week for the a month and now we're good moving on. And that's it there was Noelle long term vision there was no. Investing in in the future none of that cell and all that being said. Meaning somebody like sandy who does have this background with the with the family who is. Diligent about what they do with their money and how they spend it and where it goes where it gets invested I was not allowed to make the state I'm gonna go. I'm going to do that defaults to the person who has the experience and learn along the way and I feel like I have learned a lot of learned a lot by being married to see Andy. And absorb a lot from it being exposed to. Her dad in his beliefs and his philosophies on what to do with money. And and it's all positive it's all good it's all part of growth is a human and and were all just works in progress. Hmmm I don't fault my parents for not teaching me any of this stuff I wish I would have no more but we didn't have the means yeah learn more so which. A lot of people are in that situation where you're not Todd agents call your parents might not be the best with the finances too so that's why we do this podcast actually is to give ya the information that you need to be able to dominate your finances no matter where you are. So there are some people who are listening right now with just a crazy amount of debt which you have a lot of debt when I first Nacchio. Yeah outlaw all like everybody I got the credit card application sent to me as soon as they can search setting hootie and it. I might be a little bit of an anomaly I moved out of the house when I was seventeen years old I was still high school. But I had that I myself and I told myself that I was going to. You know all came my way I'll pay my rant all pay my gas in my car payment my insurance everything I'll make the money that I need to make. In order to beyond my own and I held myself accountable in that regard but you realize as you get older you want to start acquiring things that you can't. You don't have an apartment and not have. A couch or bad or whatever you might need that eventually the stuff that you had from when your kid no longer is acceptable and in making those kind of purchases. A new computer. Oh I need to get a new car. Those were all things that eventually caught up to me and yeah dying you know amassed a pretty good amount of data I wanna say you remember how much at one point always I always it was like this summer the ten to 151000 dollars which isn't really if you think about it and I didn't it always so I didn't have to stand alone and so you know I I sympathize those who have student lows that are paying us who most well into their dough yours for college. Hum I I didn't I I went to college for a little bit and realized. That the the both. It commitment in time and in finances that it wasn't going to be for me you you know I wasn't able to put forth the time. And energy towards that kind of an investment and they knew that it was going to be a financial investment. And that time investment and I wasn't wasn't willing to make that take that gamble so I bailed I bailed as soon as I could. And didn't you know it didn't allow myself to get into any kind of serious college debt with student loans but I. Credit cards and finance companies. I'd like to thank you bet I was here on hot moment that turned her life around almost. But it was in because you all of a sudden got a huge bonus network any huge promotion and now your out of debt. You just tweaked a few things and now your financial B. Six the right yeah well. I mean really more than anything to get me out of that was it was consumer credit coming out of service and he's they've been it's a it's a great service and and for anybody that is in debt AV if you're not doing the legwork and we really as simple as a matter of just collecting your statements. Showing them what you all they take your statements they managed. Cheaper rate financial ray that he just interest rates are and is seen this is what I'm talking about like this is a sub there was talk to me in so yeah I'm still learning everyday so the interest rate get shrunk down to it until like next to nothing to negotiate with that yes creditors and you're able to make. Easy. Monthly payment that wipes out your debt. I'm fairly quickly so you know that. Was a huge huge step in the right direction towards getting out of debt. Yeah okay so I know what is your background both video how to age you. Well I think we got married and might this good for you Matt did you grow up talking about finances in the house hope. Not at all did you know Ohno now no now. Now not only one that idea now I'm about finances no nope I mean I I mean I've observed and my parents are very careful with money didn't and didn't live outside my means that I like to think that's were I guess from. No we got married I was working a good job kind of part time and radio did you slated dead at that point now now I don't know Julia I had the I had the school loans. Analogy remember how much it was at 101000 OK but compare what kids are coming out of college with nowadays yes Baghdad and it seemed like it yes. I am yes sir Julie at the time it's hard to think of her now but she's working a job as a corporate if you see the George Clooney movie up in the air know what she was. Kind of like that corporate killer and we just had Alley. And she was miserable Julie was and she says I can't do this and I am not wanna be working anymore I want. We don't you don't breadwinner. She and re no solid Hollywood licked 5050 or did it yeah I mean I see attitude FDA so. That playing. Everything kind of shifted to meet like I'm okay I'm going to be doing their cell worry why get a from where I got to work all the time and everything because I know we have a budget. To hit every month and it changes your. Earth vision on life a little bit when I don't want that stress of how to figure out nobody wants a stress I had to figure out pay a bill here there so that was kind of car. I don't know divisional labor against you know where your home without alien and. Yet there was more of the negotiation we made when I laughed my job I was how how I was sad decision and it works on a lot of turmoil is going on my job at that point home and they moved me. Home. So I was basically working from home and I was taking my daughter to day care. Is that it was very weird feeling chair and paint AJ here but I'm still sitting at home. It didn't feel right just is and there's a lot of turmoil a lot of our restructuring going on in my company. Basically they're telling me that I needed work or hours I had just had my caddie and I was like you know I'm just not feeling that right now and just one half. Time is too short. To mess with her so we sat down and we looked at everything Perry can cut cost. What we can do. We look at the budgets and we just showing its at a lot of people say is you you don't know and you probably. This happened to you to you don't know what you really have until you write it down. You have to attic they're paying a pain in the butt. Nobody really wants to go through it meant how much state chair was yeah a huge chunk out of my page at step one man that was a huge step. A point in time when you said okay and we're gonna have one income and you still have. A lot of student loans that you're trying to pay off not at that point we had paid down off as Charlie a heads up we've paid enough. OK was there any trick to paying met up or any advice you can give to those who are struggling with student loans. Or did you just get viewers and as soon as possible that's all the ones. It was and there's no big celebration in thing in the mail and says this is paid off this. Nice it's like yeah at the end doesn't show up there are now that doesn't happen overnight. And someday when my mortgage is paid off I'm sure there's not going to be you know I think a roses are everybody you know oh yeah band area. I spent the act at at. I think you and zero dat you you know just college sons and counselor now wait it at home when you were growing up where you frugal I would did you watch your parents penny potential where were they lavish spenders. They Wear. Paycheck to paycheck that somewhat above their means. So I could see that which is why a mom. At the loans to begin within the arena went MCC paid off my college but then when I wanted to go way I needed to do and in my own. The other thing that I think is important mention and I don't know you know you don't want these podcast for seven figures and and I don't know if this is ever come up but I really really think it's important that. You get your life. Your finances. In order. Before you have kids I mean you mentioned that you got every got your debt paid off before you had kids off can you imagine though if if if you know what what life is like when you have kiwi units are having kids you don't realize how expensive it is to have Childress to provide for chilled for a child. At and if you were if you're having kids and you don't have the means to support that mean you're setting yourself up to beat. What no hole early on a case so. Because a lot of people debates that will you ever be financially ready for tenth his kids will suck you dry so if my aides. Beat a challenge for some people to wait till they're fully got a debt in order to start having a family I don't know if it's. We had a death I just think it's a matter of having it you don't enjoy watching having a budget you know I know your budget know what you can and can't spend money on it don't spend money on things. That you can afford I mean if you know real was you'll rule if you can't pay for in cash then don't buy it yeah I mean you know that. Eight be realistic with that end and be realistic with what you see on that bottom line and no OK yes we are in a place as a couple were financially. We can't afford to have children but I think it's it think it too often. Gay kids get brought into this world. Really there's no plan behind how we're going to pay a sport that this giant responsibility that we now have an airline. Have to think long term future or not and it allowed people don't it's that. Fine it's more fun to just spontaneously. Go shopping. And how do you set your budget. We have one sheep per month Julie knows that it's called title in monthly expenses in all it is is an ex spreads a spreadsheet. We mortgage she got a mortgage gash up up up up like the X now caddie gears yet and I know I need ax. Dollars or that month then anything above and beyond. Let's say she just got back from Vermont okay I'm gonna ask her okay give me all your Vermont receipts are donors say Julie don't spend as quick. You gotta tell me so I don't look at the credit card bill RD and no hurting also like I know at the end of the month okay we have. A little extra what are we won it was a fuel and allow yourself to spend extra. Well that question comes at the end of the month I got so if if I realize OK we and so we have our sat. Finances or say afterward over this podcast we're gonna about the dinner okay it was a extra expense and went up on the spreadsheet and then the end the money that comes in between. Her jobs and my twenty jobs will added up in then if we have a little like stroke they were to win and to witness to a pro lectured the five point nine do we want. To pay out extreme. Payment on our army mortgage or pay up the car which we did we did you know we've been up all your cars yeah cars are paying off the mini pay off your car and you get that statement that says okay zero balance you're done. From all of Rican awesome does that feel and I can't imagine what feels like your mortgage and I know it is yeah you're also the bad yeah a lot. Well I think it then it all when you get a mortgage you know eat I think a lot of people just view it as our rights thirty year mortgage. I'll be paid for this for the next thirty years instead of really picking our equality figure out. And win a good time to refinance could be go through the leg work of turning that thirty year in to a fifteen year and how can we make this more manageable in the hot and while realistically we could have this paid off. In fifteen years instead of thirty we just cut our payment Eminem and maybe if we apply a little bit more fifteen years becomes ten years and then the next thing you know. You don't have a mortgage but. Any guy takes a little bit of discipline and it takes a little bit of extra burn calories. To you know do the research and do the the paperwork that comes with all of that. But you don't need. Huge paycheck in order to tackle. This kind of debt that we're talking about. Right did you tackle George out with the help of CC siesta righteous now we I think you need just new agency disciplined eight and like anything in life if you have discipline discipline equals freedom and if you have the discipline to. You know be Smart with your money and how are you spending your expenses and what you're saving what your beer plying. Your finances to then you you'll eventually find yourself. In a better spend a better space financial. You mentioned the 529 plan. And we're just starting the 529. And we were saving in other race for the kids colleges that very important to you guys yes. Well to me it is and I know what Juli won thorough arms in on college having you know you had what your. You'd think there are threatening to Q while one year or so. Oh yeah there have it all mean for the alone. Was approved but I hadn't gone through so the verses or call me like on a daily basis and seeing all critic you tell I was in Bowling Green, Ohio Mike remained on. I thought my god they are out there and you're worried I knew the low was eventually gonna come all right I have gotten approved. They just hadn't gotten it on time okay. So 529 plan just occasion not familiar it is government based program 529 New York plan is what we should do here in New York. But there's plans for different states in eight it it kind acts as a 401K. But you're never taxed on that money. Now where you re your tax going in the coming knowing him yeah I'm coming out not coming out in the New York State correct me if I'm wrong standing daddy's. Knocked Tony it is grossing comic it's done right outside your bad sound so it helps your your bright bright bright. That helps you in in areas to you and then with anything you can use it with any kind of higher education inking an impasse down as one kid decides not to go to college but Dan has a down to another kid. That kid decides not to go to college can passed on a grand kids so in any kind of course bad being be under the umbrella of education you can use. For yeah I mean at some point in her daughter's a freshman in high school and I'm sit down with the earns a here's the plan and this is how all. Mean I'm not gonna be like my parents where I'd. This day I don't know all what my mom and dad or its plan is after their golf and I mean I know some things by. I want my daughter to understand this is how I managed my finances learn from days. And by the way. You have a head start for college let's figure out how we're gonna do the rest of this year but at least we have a star here and I don't know where she's gonna go to school men at a myself here but behind eighties some things dad. Set a cap of how much you're gonna save spur of the kids. Now. Now now we didn't even while yeah we do whatever we can't we've say we start saving when they're born. Yeah as soon as we after a we're studying cap where like we cannot wait to hit that finish the beacon that amendment. I. That's all we just don't know how much causes going to be in four years from now the media hate okay. I read it if she goes her private schools should republics I mean we just don't exile to cover the full bail. Yeah as much as. Yeah I mean I wanna be that guy. I hate. In my previous life I moderated a lot of these financial conversations. And if I'm might say there's a common theme that financial planners and say. And Julie said this to me and am like that can come from you that came from some financial. They'll very bad dog there is such a sing as an education loan but there's no such thing as a retirement there's also a thing that you don't get as much commission on a five point nine nations do as an annuity so I just look at where the financial planner is coming. From as long as I can. Pass that onto mine Kingston. That's the best I don't need to give them some big nest egg but I need to set them off on the right ship. When they go off and love their adult lives that's way. Now five triangle and they can only use for education a saving for them. In other areas are there how does that help you higher education. Yeah no I'm not promising them many things you know whenever I knew him when I'm long off this plan whatever is it is at least in two months and that those two that you you don't like. Parents really could do a better job of teaching their kids to value. A money the value of the dollar because they think in the world that they live in now where and we just went through the C Internet with our thirteen year old. You get an iTunes gift card for your birthday. And it's it's 45 dollar iTunes gift card but you look at it you don't see it tangible Lee is 25 dollars you see it is. A credit card the you can apply on your phone to whatever you wanna buy whether it be an app or song or a movie. But you don't realize that once the money is gone. It's gone. Andy you know you can't just come up with money without working for without earning it without you know realizing what the value is in what you're spending and and you know we we got into their daughter the other night she wanted to watch a movie. That was conveniently on apple TV. And she wanted to rented for 499. And has said well where are your. ITunes gift cards from your birthday. I spent it already what did you spend it on I spent it on songs like that's dorm we were at a radio station will not get you any song you want. Anytime you want you went and spent it sir your entire iTunes gift card now is blank. And you want to rent a movie for 499. We're not renting a movie for 499 you're not dipping into your accounts to pull five dollars no that's not how works that money is gone. And this is a lesson but it's it's good they're making these mistakes on. Mean you want them Almonte is Liz Taylor from it as long as it resonates with the Mets that they were well yeah my kids I don't know if they ever play guys so that they just think I'm talking in the age. Hear a lot of around the Charlie Brown you. I thirteen year old does he's a guy unknown date gonna talk forever. And now where he's teaching a lesson honey but it is good to have them make their little stumbles when you're there to pick him up and teach them right that's why there needs to be conversations like you guys are having with your kids yeah. We talked said Kyle when he lost his second act guard. About the first on the second when he and I was on I mean that was not. You know I know there's a responsibility we started that. The loans that. Matures in the I'm OK I was gonna ask you Dan are you a big believer in allowances and and pay for tourists it's. It's different and one we grew I mean honestly maybe I sound old time mentioning if it loses our radio show this and we're how would hit the Charles stand on trying to and we were caught on but I worked in the coal mine today this is six prior kids. What will it. They mean I was just happy to go downing gave got candy bar when I was a kid honestly they get whatever they want but when they want be above in the beyond. I would dump had been all on paper you agree to do these chores in your knocking your side box here again the lane on to them five bucks is a big deal so. We're gone back and forth ripped. Debating and she gave us a list of chores possible tour she could do in the value of each chore and she wants us to pick in issues but we care to do I got I. I I bet it did at that. So I kind of ram make her interview with us yeah my interview before we hire her for the job until we have a contract. We can't or contract for each child. These are the chores you have to do daily three chores he have to do daily to our of the chores. There's five tourist. Three that are daily to their weekly. And if you do not Stevie stories you'll not get your allowance and they signed the contract still would how much is the announcement on the buy products are actually. I Dallas at the end of the week for five tourists. I have been to the dollar jerk. The deal all night my kids would laughing at bat right and they don't care they know money somewhere there all I think our kids. No I like that lesson because think about that when you come that's what hat that feeds into the entitlement. That this generation can't get labeled what they come out of school and they expected they're gonna make a six figure don't come immediately instead of paying some dues. And you know it's off it's yeah. Absolutely right but the kid down the street gets fifteen box. I'm carrying my hero and why are we had a bit scared stiff five dollars per two's. Old. Asking for the that you gave fans that's because I was always in the house it was all you know muscular but when links with the sometimes we've heard yet for us yeah yeah when you're gonna get all the time held steady at two months I diseases are out there and sound is very mean. Why would make a dollar UNL east I want her to go out in Portland chores Timmy feels Blake you live here. You should be helping out yes should assist the family and in keeping the house tidy and organize in a whatever I feel like I want to hurt you. Babysit like I was doing at twelve years old and make my own money. Not like that and more unfortunately if there's a spoiled and Pacific definitely split up a okay what is the biggest financial lesson then you're trying to teach kids is that it working for the money. Now budget budget money in money out. It's so many people owning all the credit card bill should not be a surprise and how much gonna pay this you already know a month in advance and if there's a problem. Now and im when it comes the holiday time we actually in advance set. Holiday budget early yeah I agree there every year budget by the way did you get any of the budget I'm in asking how many times. My all around I try to get what they are yeah right now so limited we give each kid with a budget. Moments of green this is it's about 300 each kid again at some leverage sometimes it over a little. I think it was we are easily young and we actually write down of the penny but at least we get in the ballpark. And we tried aides did advise of the guests about the same amount. What is your are defined why what is your call is I think that's when you're an irate when we. We just got married and we decided. We we need to have a conversation about the future what's our future gonna look like what is that you know how much money do we need to save what woody is a whole another I'm only we if you don't trust your partner. And being in life ten. When we first got married that was you know basically it was the basics of how to. You know look how to. By. CME Nino like how to get to a point your life where you can realistically say anything that I wanna do at a certain point my life. I'll be able to do what I wanna retire at this age I can do if I follow. These. Kind of simple rules you don't pay your self first before you pay anybody else make sure that you're saving all everything they use you read this book and and we use it is kind of like. A guideline fur an outline for what we wanted you financially and we just kind of stuck with it. Through the course of time I don't know for read the book all the way through it inning guy got me into account you have that problem is like you look through books. Oh yeah. I always feel I don't really read them I just spend time with I spent time with the. But we'll. Anything else that you land at any financial maggots or any tips. One take away. If you take away anything. You know. Have a plan have a goal write it out make sure it's clearly defined in your head stick to it and then. Hustle keep working I mean you know one of the things I admire Jean is that hustle with the fact that there's there's always something going on there's always money coming in. Hum that's a work ethic that's missing a lot of people and it's it's a great wiring to have. And and you know the thing that I appreciate about you is the the discipline of knowing we're going to save this amount every month this is our budget this is where it's going. Where managing your movie you know do you do a great job of managing the finances as they're coming in. And it's put us in a position where. Whose future is bright regardless of what happens. Come with our income in the future. And it doesn't matter how much you make again the general you spend games where he's. On booming Jim banks and banks Zandi. Big sandy and attached I would be lost without it just. I do it blows through those unanimous view look things. No I ain't so hard for him as saying that okay next week I'm not podcast. Recovering from a divorce. Sun times your forced to reinvent yourself to get back on your feet were gonna help you out next week inspire you to press sign and regained your financial stability next weekend a seven figures podcast. As always thank you so much for subscribing to be podcasting giving us a review on iTunes in a ratings and dead checking us out at Rochester buzz dot com if he ever have any topics for the show reach out to me anytime sandy at Rochester by the stacked cap. And now it's time for our favorite part of the pod cast. Father Knows Best my dad's teams that. You'll burn all her know her young money doesn't make you happy. Why haven and in addition to providing for years and use it gives you the opportunity to help on this. What's more satisfying and fulfilling and the feeling you get from knowing that you're able to help someone in need. That someone else who else.
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