283. “We have 3 kids and live paycheck to paycheck. Are we screwed?”

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What solutions have you looked for engaged with? We've done credit cards, personal loans. We have looked at bankruptcy. My philosophy is I keep her the money and she does what she used to do with it. Does it work? No, I don't always feel like I know what I'm doing. I feel like I'm just piecing things together so we can get to the next paycheck. Why is it you? Honestly, I don't trust Jeff to handle the money. I'm in my own little world. I just don't look at it. I don't ask about it. Then I don't have anxiety about it. You will come on money for couples. The only way that two of you will succeed is if the two of you are a team. And right now, this is the opposite of teamwork. I'm about to speak with Michelle and Jeff. They're 45 years old. They have three children. And in their own words, they are earning more than ever before, but they are living paycheck to paycheck. Now, one of my favorite parts of my Netflix show was being able to look at my guest's actual spending before I ever met them. And now with Monarch, I can. Monarch is a private personal finance app that brings all of a household's accounts, checking credit cards, loans, and investments into one clean dashboard. And they've built my conscious spending plan directly into their product exclusively for my audience. That means fixed costs, investments, savings, guilt-free spending are automatically tracked as a percentage of take home pay. So if you want to see your conscious spending plan in a living, breathing dashboard, that updates in real time, you can try it for free and get 50% off your first year of Monarch Core with code [email protected]/remeat. Loans, they have a Nissan Pathfinder. For $48,000, what? That's a lot of money. Whoa, okay, so their car payment, I think, is $999. Clarner, why are you using Clarner? I have a lot of questions, so let's get started with Michelle and Jeff. Michelle, in your application, you said, we can't get ahead. We're making the most money we've made in our adult lives. And it feels like we're still living paycheck to paycheck. Is that still accurate? Yes, we were or I was in the process of trying to figure out how to make our bills that month. We had just started working with a debt management plan and I was trying to figure out a budget. I was trying to figure out how are we making as much as we are, but I still go to the grocery store on Sunday and worry about the total. I'm trying to piece it together. The worrisome on our face, so I got to move this money from this account to this account or split it up between these two accounts so we can have money to feed the kids for the week. And it's the same, the worry, the anxiety, and the stress on our face is it's not something that I want to see. And Michelle, how long have you been the person in charge of managing the family finances? Since the start, we joke that our relationship started with me taking his money in monopoly. Oh, uh-huh. My philosophy is I give her the money and she does what she used to do with it and I take care of pass. And it just sort of continued that way. I think because I had more experience at the time, I'd been living on my own for a while. So I was more familiar with doing things like taxes and insurance and all of that. Got it. I have to ask her how much I make a year because I don't look at my paystubs. She set up a 401k and for me, last week, two weeks ago, 'cause whatever we need to do to make sure her guilt's secure and comfortable and financially ready for the teacher, I'm on board for it. Okay, how long have you been married for? It'll be 20 years in January. Ooh, congratulations. Thank you. That's cool. That's a big one. 20 years, uh, children? We've got three of them. 16, 12, almost 13, and six. Okay, excellent. Outstanding. Let's say that we have a really good conversation today. 10 out of 10. That's what I always plan on. What does each of you walk out of here with? Jeff, you first. For me, it's more insight, more knowledge of what's going on our ins and outs. She's been trying to loop me in more. And the last one, the two of us, she's getting into our finances. She's learning more about, you know, taking charge of our money and-- But I'm surprised to say you say you want insight on this call, but I think you also mentioned you're happy to just hand her the money. So-- 100%, for me, ignorance and financial is bliss. Mm-hmm. It's selfish, yes. And not fair for me to put it on her shoulders. It's not fair to let her carry all the financial burden and have to make all decisions and have to be the one saying, no, we can't do this. No, we can't do that. And I have to make her feel like the bad guy. It's easier for me to focus on the kids in the house and everything else in between than it is to focus on the finances. Do you really want insight today? I mean-- I do. I think we both need to be on the same page. So I'm not just thinking, OK, she's just being overactive or it's just, you know, being paranoid. So you want to take on some of that burden? Yeah. I'm a project manager. I do risk assessment. But if I don't know what's going on, if I don't have all the information, I can't plan. Jeff, this is not about information. I want to sit that right away. It's not about information. It's not about tools. No, I agree. It's just that then it was easier just to look the other way. Yes. Great. That's honest. So, Michelle, what about you 10 out of 10? What would you walk out of here with? Confident direction of what steps I need to take and what step I can take to make sure that we are eventually in the best financial state possible. I want to make sure that my kid don't end up in the same situation I was when my parents died, which was not being able to pay for their cremations because they didn't have any savings or insurance or anything. I'm sorry. This is interesting because this doesn't usually happen. When I ask people, like, what do you want to get out of this? Most people say, I want to plan or something like that, which is fine. I love hearing what you both want. But Michelle, are you telling me that what you want to get out of today is making sure that your kids can pay for your cremation? I mean, that's kind of what prompted all of this. Well, we'll get to that, but that's what you want to walk out of it. How much does a cremation cost? If you don't get a specialized earn, it's about $2,500. But that's the dream, $2,500 for your kids. I like hearing what you want. Sometimes I'm going to push on a little because I don't think your life is about being cremated for $2,500. That actually is really depressing. Yeah. We got a dream bigger than that, right? The language in your application really stands out to me. We're living paycheck to paycheck. We've been doing it the same way for 20 years. Tell me more about that. What does that feel like to you? It's stressful. It's scary. I don't like not knowing what we would do or trying to figure out, okay, how are we going to get the kids to school or how are we going to get my daughter up to her doctor's appointments? We don't have anybody to help us with it and we would be pretty at a look. Do you ever feel that way about like savings or retirement? If I think about it, yes. But you don't. Not the way that I should know. And Jeff, what is your role when it comes to money in this relationship? As I said at the beginning, I give it my paycheck and that's all I think about it is I should have been taking my money over for 20 years now. Does it work? Because it's a common, it's actually quite a common dynamic. It works for me, not much for her, because it's said on his dancer, you know, hey, there you go. My lights are still on. You know, there's gas in the car and we finally established ground rules of I'm not allowed to spend anything over $20 without her permission, which I agreed to because I'm an impulse buyer. But it works for you. Okay. And Michelle, does it work for you? it can be overwhelming. And I don't always I feel like I know what I'm doing. I feel like I'm just piecing things together so we can get to the next paycheck to make sure we can get to the month. - Why do you do it? - If somebody has to and we have the kids. - I'm not making the connection. Somebody has to, why is it you? - Because honestly, I don't trust Jeff to handle the money. I've seen his leveraging and I don't feel like he has the confidence or the fall third to be able to handle it and trust that something isn't going to get turned off or something isn't going to happen. - So you do the best you can and then what? - I'm looking at which of those we could skip this month, which ones that could do a partial pay-on, looking for solutions because I feel like sometimes we're drowning. - What solutions have you looked for, engage with? - We've done credit cards, personal loans. - Well, wait, wait. Credit cards is a solution? - It's a temporary solution. - Oh, okay. Okay, go on. - Made it so I could pay the bill. We did get a personal loan at one point to pay off the credit cards but did not fall through with that the right way and ended up with that debt plus the credit cards. - What else? - We have looked at bankruptcy. - Okay. What would somebody else do in terms of a solution if they don't know how to manage their money? - They would look at learning how to and figuring out a way to manage it with what they have. - Yes, have you done that? - I'm starting to, but I'm very new to it. - You've been married almost 20 years. Can we just cut to the chase? I'm not interested in what you've done in the last one month. People always clean their house before the house cleaner comes. I'm not interested in that. Have you looked into books and courses and videos and learned about how money works? - I didn't look into courses and videos because to me, it always felt like they were geared either towards people that already had money or it was beans and never leave your house until you're completely debt free. - Okay. - And that didn't seem sustainable either. That wasn't the way that I wanted to live my life or wanted us to have to liberalize. - Jeff, you want to add anything to what you just heard there? - I'll be honest until she mentions she's been watching this. - Yeah, and I mean, I knew we had problems, but again, it's the ostrich in the sand. If I don't watch anything she watches, I'm in my own little world. - And are you in your own world about money as well? - 100%. In my world, it was better from me not to know. And then to cause myself anxiety and worry and stress. Meanwhile, it's not just the ostrich in the sand. The ostrich in the sand is being fed. Cable is being provided. Lights are being provided for the ostrich. The ostrich is living a quite a good life. They're chilling. - Yeah, I'll be the first one to acknowledge that. I've saddled the burden of our finances. - Will you be the first to make a change? - I'm trying. Michelle is teased again. - I didn't get a yes or no answer to my questions. - You will? - Yes. It's pretty easy to tell that I am frustrated in this conversation. Here we have the parent child dynamic again, which is inherently frustrating, talking about two adults. But it's especially such a tired old trope to have the guy be the one who's just like, I don't know what should I do? You're better at money. I'm kind of just tired of it. I hope I'm not too forward in saying this, but you can get up, guys. Stop sitting around and waiting for somebody else to come and save you. No one is coming to do it. So apologies if I come off a little too strong, but this is what's going on with me inside right now. Think about what a perfect day in your retirement would look like. How old are you? Where are you? Who are you with? I think retirement planning is about more than just the numbers on some spreadsheet. If you want help making your retirement actually feel like a rich life, consider working with our partners at FASSA. 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So I don't let the tension, I just, I think I just tend to be an agreement person, okay. - I feel like you're doing that right now to me. Jeff, do you bring up money conversations? - Only when I don't get what I want. - Give me an example. - The last biggest thing I asked for was a smoker. - Okay. - Realistically, I knew we're never gonna use it, but I wanted to have it. - When was this? - Before father's day, I think, Michelle, isn't it? - A few months ago, and what did you say to Michelle? Where were you and what did you say to her? - Now I remember, we were at Costco. - Actually, can we just recreate this? Say what you actually said back then. Go ahead, Jeff. - Look at the smoker. You'd be nice to put a turkey or the bacon or the cheese. - Yeah, I don't really like smoked foods and we already had one and you barely used it. - Yes, but this is newer. It has pellets, you know, we would use it more. You can ask, you know, it's not just a smoker. It's also a grill. - Well, we don't have the space for it and I really don't think we need it. - But we get rid of you barbecue and we can put the new one there. - I like barbecue. My barbecue works absolutely fine. We just need to clean it before the summer hits. - This one be easier upkeep because it's pellets and not gas. - No, I remember pellets being more expensive and that was one of the reasons we didn't use the last smoker you had. - Okay, okay, time out, pause. Great job. That was very authentic. Did you reach a resolution on that conversation? - No, I didn't get it. It's in the long run, I know it's not practical. - Uh huh. - Why'd you ask then? - 'Cause it's shiny. - Is this serious? Are you being serious right now? - No, I'm serious. Yeah, no, it was shiny. It was something new. It was something that I wanted, you know, like seeing it before and competing with my father and, you know, because he had what and I wanted one and-- - Well, Michelle, what was that reaction from you? - That was agreement because that's a lot of what it comes down to. His dad gets a smoker and he wants a smoker. His dad gets a black stone and talks about how great that is and he wants to get a black stone. - Wow, that little example there shined so much light on the dynamic here. Can I ask you both? - What role was each of you playing? Jeff, what role were you playing? - I was more of the dreamer. She is more of the realistic. She's the one that keeps me grounded and saying, it's kind of dumb. You know you're not going to use it. You use the last one maybe once. - Okay, dreamer and when you say she keeps you grounded, if she wasn't there, what would you do? - I would have bought it. You know, I would have spent the money and dealt with the consequences later and that's what I've always done, okay? And Michelle, what role were you playing? - I was being the. authoritarian. I was trying to put rules down and control things. I agree with everything you both just said. And I see Jeff as pushing the limits, even kind of knowing you kind of said it with a smile, Jeff. I knew I really shouldn't get it. I knew it's not practical, but like, let me try to get it anyway. Pushing the limits and Michelle, whether involuntarily or voluntarily takes on the role of the parent, the parent, and the parent has to do what, Michelle? I have to say no. You have to say no. You have to give a list of reasons. And I noticed that you both engage in this thing. Jeff says, what about this? Then you have to explain why not. Well, what about this? No, well, I don't know. The pellets are actually more expensive. And then does anyone walk out of their feeling good? Well, I'll just ask you, did you walk out of their feeling good? Eventually, but I was initially frustrated that it was a conversation again. And it felt like I was having to defend the know. Yeah, I don't know what I was expecting. When I asked, no, you know, I knew the outcome eventually was going to be no. But you know, I don't know why I did it. You know why? Think about it. Why did you ask? You know why? There's a 50/50 chance that she would say yes, exactly. And I tell you, I didn't until 95% of where we're at is because I'm an impulse. And there's sometimes you just, there's a want to deal with it. And then I'm dealt with the consequences. Who's dealt with the consequences? Well, both of us. Well, mostly her because then she has to figure out, okay, that $500, where is that going to be pulled from? Michelle, what are you noticing as you hear this from Jeff? It's kind of frustrating because he knows what he's doing and still does it, even though it puts more pressure on me and makes things more difficult for me. Yes. And I feel like he's doing it intentionally, which doesn't feel cool. It doesn't feel cool, Jeff. That's why I didn't really buy you saying, I don't know why I do it. You know why you do it. Just like anybody knows why they walk into a casino and they gamble, because once every 20 times they win a little bit of money and it's a little bit of fun, it's actually fun. I could kind of see the glee on your face when you talked about the smoker and the pellets and the this and that's fun for you to talk about, but it's not fun for Michelle because she's thrust into this role of being the, as she put it, the authoritarian or the naysayer than the no, that's kind of just sucks. No, it's not right for me to put her in that spot either. How long you've been doing this for? I mean, the last biggest thing was when I convinced her to buy a time share when we were in Vegas on vacation. It's been going on a while. Yeah. This dynamic, I would say probably since around 2010, 2011. I mean, back in 2010, it was just me and her. We were back then, we were paychecked to paycheck, but we were making it work. Looking back, I'm always curious about this. Do you see any clues with each other early in on your relationship, financially speaking with where you are now? Oh, yeah. We have a bigger paycheck, but it's almost a mirror image of where we were 20 years ago. Still feeling like we're not making enough, still doing the silly splurges, just with a little more responsibility now because they have the kids. Yeah, when we met each other, I was going through a divorce and I had disposable income. I didn't care. I was living in an RV and my parents' property and yeah, I didn't have any any other expenses except for the rent that was paying them to live in the RV. And yeah, I don't look at long-term finances. I look, you know, the hearing now. Do you look at long-term for anything? I do have life insurance. Just in general. Are you a long-term person or no? I used to be. But as I got older and more cynical, I stopped. What caused you to become more short-term thinking? Just the way our world is. Yeah, you see every day. It's, you know, you could go out of Walmart, grocery shopping and somebody else is having a worst day than you and decides to go on a rampage because you're watching a movie. Were you ever long-term thinking about money? Yeah, with my purse. Why? Yes. Okay. Michelle, are you a long-term thinker or no? I think it depends. I want to be a long-term thinker, but I don't always have the patience for it. But oddly enough, you talk about your impending cremation decades from now. I don't mind it. I'm learning a lot already. This is very helpful. I wasn't caring, but then we had our first kid and I recognized that we needed to be more careful in some areas and needed to start saying no the things and just who needed to say no? I needed to say no to Jeff when he would want to do things or get things that didn't make sense. And thus the pattern was born 15 plus years ago. First kid was born. Who was the person who made the decision to change the dynamic around money? Michelle, in the sense that I need to now take on the burden and say no. So I'm going to create this almost force field. I will absorb all of Jeff's inquiries. Can we get this? Can we get that? What about this? Let's buy a time share and I'll take on the burden myself. And once a while I'll crack or as Jeff puts it 50% the time I'll crack, which will lead us into more financial trouble. But I am the one who's going to have to say no to Jeff. I think in the last six months I'm understanding that we're not in a good spot. I've not been trying to play the games of let's buy this by that. What? When was the Costco thing? Father's Day. Jan, it's two months ago. I'm trying to be better as she's explaining more and more and opening up more and more. How long was it going to take? I don't know. I kind of take headed. I know the ground implications. If I don't learn and if I don't ask, what are they? We're going to be like my parents living in a place that they can't afford to move out of when the floors are falling apart and the wiring is going in the mold of this spreading. And there's nothing else they can do because they're on social security and they're too far in debt. I'm being pretty relentless with Jeff. I'm asking him a lot of questions with increasing intensity and specificities. It's not an accident. I'm doing this on purpose. Jeff lives in a world where he says a lot of words that are up in the clouds and Michelle simply accepts them. You see this in couples where they've been together for a long time so they don't really interrogate what each other means, but I don't accept that. And I have the latitude to ask him questions to make him own what he's actually saying. I think he probably has never actually heard himself say what he actually means. He's been living in the clouds and I'm here to bring him down to the street. What was it like doing the conscious spending plan together? We didn't. She tried to show me the numbers, but my ADHD had me thinking about other stuff. Are you diagnosed? No, but we know I have it because nothing because real ignorance is bliss. If I know that I have problems, it's definitely there. My son has it. Is he diagnosed? Oh, yeah, 100%. Yeah, I'm definitely see the patterns of him and me. Why have you not gotten diagnosed? I don't like doctors. I don't like going to doctors. Michelle tells me to do it all the time. It's just I think again, it goes back to, you know, I don't want the reality or the medications or it's easier for me to blame it on that than anything else. When you suspected your son had ADHD, did you seek out help? From my son, yes, right away. Right away. Yes, when he was in elementary school, but not for you, even though it affects your wife, the me. It's being selfish. You're okay being selfish. It's rare that I hear someone admit that you've now mentioned it twice. It's me. It's how it comes out of that. It's my health. Look at your wife. You told me that she's the one worried at the grocery store about going up to the counter and the card doesn't charge. It goes beyond, you know, that again, nobody communicates about where we are with the money. Where we sent, you know, it's hard for me to focus on, okay, this is the issues. Okay. I want to ask you about how you like to proceed here today because you both came on money for couples. This is not money for one person in a couple. It's money for couples. I have a very strong philosophy. The only way that you two of you will succeed is if the two of you are a team. Right now, this is the opposite of teamwork. I've been trying to be more engaging because I know this is important. We're 45 years, 46 years old. Jeff, I don't think trying harder is really going to change much. For me, trying harder is better than not trying at all. The last couple of days, last week or two, I've been showing commitment to move outside of my comfort zone. I'm going back to school. I got super out of my comfort zone and started applying for new places and it took a lot because I don't like uncertainty and I don't like new things and anything going forward is is trying rather than just sitting back and letting Michelle shoulder the burden. I mean, for me putting in an effort is is trying rather than not. And part of that might be you admitting that or at least trying to go to the doctor. I think part of your fear is going to the doctor, them saying, oh, there's nothing wrong. It's just your personality. And I say that as somebody with mental health issues that didn't go to the doctor for a very long time for them because I was afraid they were going to tell me it was all of my head. I know it again going back to that fear of the unknown. Yeah, you know, is it my personality? Then how can I fix the personality? Well, there's lots of ways to do that too. No, I agree. I know it's again, I'm conscious of me being selfish. I don't agree with it. It's it's my personality. It's it's easier for me just to to laugh it off, push it aside and and just move on to the next thing. Yes, I know it hurts Michelle, but at the same time, I don't know how to get out of the cycle. What do you mean? She's telling you a very clear next step to get out of the cycle. Are you hearing her? I am hearing her. What is she saying? Put it plainly in English for me. At the end of this call, I should speak to my doctor. Yes, and what is your response to that? We will talk about it. I'm struggling a bit right now. I want to help. I'm here. I'm prepared. I'm ready. This would be one thing if the two of you had $2,000 of credit card debt. We could be flexible. We could work through it. The status of your financial situation is much different. You are in your 40s. You have three children. Now, is there a way to fix it? I think so. But I cannot fix it. I cannot even help you fix it unless both of you are 100% in and committed. I'm not hearing that right now. I'm hearing we should think about it. We should talk about it. I've started trying in the last two weeks. The only way out of this is full commitment from both of you. So here's what I would like to propose. I would like for the next five minutes for you to go off camera. And I would like for you to talk. What do you want? Because if the answer is, hey, we're not both ready to fully commit. Just come back here. Tell me and we will part ways. No hard feelings at all. But if you want my help. If you want to have a future that is bigger than a cremation. There has to be full commitment. So I want to give you the next five minutes. Talk. Come back and let's discuss whatever decision you reach. I will respect it. See you back in a few. I almost ended the call right here. And I never do that. I want to help. I believe that I can help most people if they are willing to be helped. My show is called Money for Couples. It's not money for individuals. And if I'm going to do what I do, I need both parties to want to be here. So I sent them away. I'm not sure how this is going to go. I think for the first time on this podcast, they may leave and not come back. We'll find out. Final few months of the year, I recommend using it to tie up loose ends and start the new year off right. Book your doctor's appointments, check in with your accountant. 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So I give them props for coming back. I really appreciate every guest it does. How was your conversation? I think we're on the same page. I mean, it's realigning. We took a second to realign expectations and you know, both that's what we wanted out of this, that I need to take, you know, to take that step of going to the doctor and seeing if it's in my head or if it's just my personality, but I have to make that conscious step of being supported and not just looking at myself and what's right for me. But I'm willing to change. I'm willing to learn. And Michelle, what about you? What'd you talk about? I mean, sure if I asked him or let him know that this needs to be something that he wants to do because he wants to do it, not just because I want him to do it. I also accepted that I need to be willing to share the control and talk about it and not just model it up. Great. This is about creating an action plan, not a, I hope this happens in the future plan. I love that. So just so I'm clear, are you agreeing you're going to go talk to a doctor about ADHD and whatever else maybe on your mind and see what they say? Yeah, I've already committed to Michelle. I think that's awesome. It's going to make a profound change in your life. ADHD and money is a studied phenomenon. This is very well studied. We had an ADHD expert on money from the Financial Therapist Association, Dr. Christine Hargrove in our Rich Life program. We're going to put a link for people if they'd like to join the program and they can access that. We have a whole community in the program where many people share openly about what it's like to have ADHD, how it relates to their money. This is an important topic, one that we talk about. So that's number one, I want you to get diagnosed if appropriate or at least talk to your doctor. That's a massive change. I actually want to just take a second and give you both a round of applause. I actually think this could be a different trajectory for the two of you for the rest of your lives and for your children. Fantastic. This is big. Shall we continue on knowing Jeff has worked to do? He's going to see a doctor. He's going to pursue that of his own accord, not because Michelle wants it. Michelle has already committed to being willing to give up some control. And so we know those things are going to require a lot of work, a lot of time and compassion from each other, but let's just assume that those happen very well. Let's keep moving. I would like to put this conscious spending plan up on screen and I would like to go through it. Okay, assets, $26,800, investments, $264, savings, $571, debt, $186,000 for a total net worth of negative $159,170. Okay, what is the debt? Both of our student loans, I want to say we're around 65. Okay. The car. And then credit cards, the credit cards and the loans. How much are the credit cards? The credit cards are at 18, four and the loan is currently at 17, five. What do you make of these numbers? They suck. Yeah, what else? From my perspective, it doesn't look like there's a way out of it. To be one thing I did want to add that I didn't get to. When we took out the personal loan, what spurred it on? was we were going to have a judgment against us from creditors, and we were facing garnishment. - Yeah, so-- - And we needed the loan to pay that off. There was, still stood amongst at that point too, but we were focused on not getting garnished. - Why? It was 25% of my take home grade. That would have killed us. That would have made him pay rent. We wouldn't-- - What'd you end up doing? Took the loan out, the loan out, did it help or hurt? - It ended up hurting because we didn't do it the right way. - Exactly. Okay, income. We have $14,887 a month in gross income. That's $178,000. That's a lot. - Yeah. - Doesn't feel like it. - You take home $10,600 a month. That's pretty good. Again, keeping in mind you have three kids, so we need to put this in context. $178,000, you're essentially contributing nothing to your 401K. - We just started the 401Ks. I was nervous about losing money in the paycheck, so I started it all set, I think, 1%. - Your fixed cost are 87%. Well, right there is why you feel stressed out about money, Michelle. That plus Jeff ignoring it. 87% means you can't get ahead and it effectively means you are spending more than you make every single month. Are you aware of that? - Yes. - Yeah, all right, let's take a look. Your rent or mortgage is, huh. Am I reading this right? $1,695? - It is rent, we are extraordinarily lucky. Have an amazing landlord. - Amazing, 11.39%. Never leave. Where's all the rest of the money going? 87%. Utilities, $668 fine. Car payment, $1,000? Is this for one or two cars? - One. - What'd you get? - It is a Nissan Pathfinder. - Why? And how much did it cost? - Because we needed the seating for five people. - But winter, so it can be harsh and you do need to be able to get up your hills. Otherwise they're gonna be walking half a mile in the snow. - How much did the car cost? - 56,000. - $76,000, who decided on that one? - That was me, we got the little flyer at hey, we'd get you in a better car and all this and we just went in there with the understanding that we would not pay more than when we were paying more than that. I decided in the long run that it would be better for us to have a newer car with a better warranty. It has less miles that we could maintain. Jeff had to be looking back. Was that a good decision? - No, it was not because we, I think our payments went up. It was like $300 extra month. - He was very convincing at the time and the idea of having a more reliable vehicle did seem like a smart move. - You grew up poor. - Yes, well, technically yes. - That's a luxury vehicle. - I will also add that part of it, I think was also the fact, oh, you're going to approve us for financing on a nicer car. - That's a classic, that's exactly who they target. First of all, you should not be responding to things coming in the mail. Any mail you get is by definition a bad deal. They're literally buying high-risk addresses and sending out and giving you the worst deal and you bought it. Again, I'm not saying this to berate you or beat you down. I'm actually trying to show you the game being played around you and you were susceptible to it, but you also willingly participated in it. So this is accountability is learning, hey, we did this decision, we, Jeff was convinced by the, we need this and that and he says, looking back is a bad decision, agreed. Michelle, we need a more reliable car. And now here you are with a thousand dollar payment. That's crazy. All right, let's move on. Debt management plan, that's $486, what is that? - It's a nonprofit. They helped us work with our credit cards to get them shut down, get the interest rates lowered and most of them and we pay that, they pay them. There is no additional fee that they add onto it or anything. - Cool, what's the other debt? - Loans that were not rolled into the debt management plan 'cause that was just credit card. So that's the personal loan. We had a loan for furniture that were finished, almost paid off on. - You took a loan for furniture? - Yes, because we couldn't afford to pay. - How much was the furniture? - I wanted to say it was $3,000. What'd you get for $3,000? - We got a new couch, we got a new web seat. I will also 100% say part of this was emotionally coping with my mom passing and us having to take over the upstairs of the house that had been hers and wanting it to be ours. - I'm sorry to hear that. I want you both to get out of this cycle where it feels like there's always something coming up. That's what it feels like, right? - Yes. - I mean, we're not even halfway down the fixed costs and there's just something that comes up. There's a car or there's a credit card. There's a sofa, there's on and on and on. How long has it felt like that? - Always. - Like the car did not need to happen, not that car. And there are a variety of other decisions. I'm sure we will discover that did not need to happen. So the real path forward is for the two of you to do some heavy, sustained work on, what are we getting out of being in this really reactive place? Both of us. Can I just check in before we get into the numbers? How's everybody feeling right now? Michelle? - I'm okay. - You look a bit like there's something going through your head and I just want to check in with you. And I want to make sure that we're not, nobody feels like, hey, this is just hopeless. That's never my intention. Michelle, how are you feeling? - Yeah, no, I definitely don't feel hopeless. I think it's just emotional conversations. - Yeah, they're hard. - Yeah, and I can be overly emotional. - There's a lot of work to unpack there. Let's keep going. We have medical 200 groceries and household good, $2,000 a month. What's that? - I have been struggling to get that down. That was our average over the last several months when I was looking at our purchases. - Okay, we'll look at that in detail. Clothes 100, pets 300. How many pets? - We've got three dogs and then we also have three cats. - Oh my God. - Yes, we have five cats and three dogs. - You have eight pets? - Yes. - Okay. - All right. But from her parents, after they passed away, so we can't really just tell him to go find some place out to live. - How much of this stuff that we're seeing on the CSP is like emotionally driven? - The dead most definitely. - The car was emotional. - Yes. - The car, I mean, we went from having 26% interest on a car loan and I'm like, oh, we'll give you this loan for 10%. And it was kind of a reward for us. In my mind, it was a reward for us getting back on track. - Jeff, that's emotional. I think it's 90% of my spending was emotional and self-convincing. - Yes. - Yes. - Do I need it? - Thank you. - I'm able to then put Michelle into my way of thinking. - Let's just continue going down the list here. We have eight pets for $300 a month, phone $446 a month, what? - I'm working on that one. - Subscriptions at $192 a month and miscellaneous at $500 a month. 87%, you're broke. - Yeah. - Just looking at it, what do you see here? - Spending too much. - Okay, Jeff, are you spending more than we make? Okay. Your investments are at zero. Your savings are at $150 a month. And that started recently because your total savings are $571. - Yes. You're guilt-free spending or what remains is $1,252. I'm certain it's higher than that, would you agree? - It has to be with the way we feel every month. - What does this CSP tell you? Besides your spending too much, what kind of people are you based on these numbers? - More impulsive. - Yeah. - We are short-sighted rather than long. - Yes. - In more instant gratification, we've been able to buy it, make that dopamine. - Yes. - Why do you think you do it? - It's just how I grew up. I mean, I didn't have what I wanted. It's, we were told know a lot. - What did your family say about money when you were growing up? When you were young? - Didn't talk about it. We had the government, brown box cheese, and there was times we didn't have the quarter per lunch. As my parents made $100 more than the poverty line, so that it didn't get in the free lunch, we had reduced lunch, but at times we couldn't have the breakfast or lunch because we didn't have the money to pay the school, but we didn't talk about that. You don't ask for it, you just do it. And consequence is, and see how there was times where you get home, there was no electricity, there was no running water, you just dealt with it. What happened as you got older? I ended up starting to pay my parents to live where I was living with them. I've been paying my parents since I was a child. was 14. I would work my job, my money would go from me, from my ends to my parents, and that was it. And that continued on. How old were you when you stopped paying your parents? When me and Michelle moved in together after the tree fell under the motorhome. So 24, you basically had been paying somebody since you were a kid. So that's why I was 14. Yeah, it was for me. Wait for me to pass on the responsibility somewhere else. Yes, we took it off my shoulders and put it on somebody else. Let's go back to your childhood. What do you remember about your dad? What's a drill sergeant? So, um, so it wasn't a good relationship. I have a good relationship with my mom. My mom was that typical housewife of the 80s and, you know, some perpetuated a circle from her dad. Can I ask a question? This is going to be tough question. You don't have to answer, but I had to ask to understand something. Was your dad disappointed in you? Oh, yeah, 100%. Okay. He would remind me of that all design. Does he still do that? Oh, yeah. What do you see in the fact that you compare yourself to your dad? He gets a smoker. You want a smoker, etc. For me, I see that. I'm always strived to be better than him. Oh, yeah. I've always made it a point not to be like him, not to raise my children the way I was raised. I have Michelle, who's definitely a strong, the opinionated woman, unlike what I grew up with. That's why I value about her because she will she will calm me out on my stupidness. As opposed to your mom, who is the, quote, traditional 80s housewife and because your dad was a drill sergeant who I'm assuming was very directive told you all the things he needs you from you and you're doing wrong, etc. You know what hate being told what to do. Hate being told no. Look at Michelle's face. Yeah, I don't like being told no. But then I also understand the value of when Michelle says no. Not really. You hate being told no. We've seen that multiple times. No, we can't get the smoker. Come on, the pellets. No, we can't get the car. Well, come on. It's for the warranty. This seems to be a recurring trend. Am I reading it wrong? No. So why are you disagreeing with me? It's my nature, I guess. Yes. This nature to disagree to be contrarian, to provide the devil's advocate. Yeah, it was a game for me when with my father. Exactly. Because no matter what you say, I'm saying something that is so obvious. It's transparent. It's axiomatic. And yet you're disagreeing with me. Why? Because you love it. You get pleasure in disagreeing because probably going back to your dad, there's all kinds of stuff that was developed there. But it's very hard to be a partner with someone who disagrees reflexively just because what are you realizing right now if anything? There's more things I have to work on. Yes. And man, it's probably been really hard for Michelle. So I will love it if we can agree on some basic stuff and then move forward. What do you say? Yeah. That's one area is there. You see where we can where I can improve. Great. Michelle, you heard all of that. I want to give you a second and invite you to chime in. I think part of it also is because of Jeff tries to overcompensate because of the type of father figure he had. So he tries to overcompensate in some areas like helping around the house and taking on household chores that he never saw happen. But on the flip side of that, he does that argumentative comes up and I don't like conflict. So I try to avoid it. And I think that's a result a lot of times of me saying yes to is because I don't want the argument. Yes. But I do think a lot of his choices, his spending, his habits are a result of growing up poor and not having and now being an adult with adult money and somewhere in the back of your mind, oh, I can do that because I have my adult money. It's classic. It happens to so many people who grew up poor. They make a little bit of money. I'm never going to go there again. I'm going to spend more et cetera, et cetera, et cetera. It's normal, but it can become destructive. What's interesting, Jeff is hearing that you overcompensate as Michelle puts it, but you overcompensate in some really adaptive, positive ways like helping around the house. That's actually awesome. Well, no, I mean, okay. And again, we'll go back to people. Are you agreeing or disagreeing with me? I'm agreeing. He's over complaining. And why do you start your answer by saying no, no? Reflect. I don't know. It actually reflects your worldview that I need to disagree. You're saying no, the way you said it was even disagreeable, but you're actually agreeing with me. Just say you're right. And actually, I'm complimenting you and so is your wife. Hey, this guy helps around the house. That's great. Jeff, take the compliment. Go ahead. Yes. That's it. Boy, this is fascinating. This is why I do what I do. Yeah, money's fine, but I love human nature. And when I give Jeff a compliment, and his first reaction is to say no, no, no, actually, I go, oh my God, the light started going off on my head. Even when I'm complimenting him, he's rejecting it. He's a contrarian. And he doesn't even know he's doing it. There's a constellation of psychological social dynamics going on here. There's something actually called oppositional reflex. Let me read it to you. Opposition reflexes an innate physical and instinctual reaction where an animal or human automatically pushes or pulls against any applied physical pressure. I once got called out on this by a famous coach. He said, why do you say no when you answer questions? It shook me to my core because not only did I not realize I had this verbal tick, but if you dig in, you realize, oh, I'm disagreeing for no good reason. Jeff has a lot of layers to pull on. It's one of the reasons that I really want him to see a doctor because we can only do so much in a few hours here. But there's actually a really beautiful life ahead as you start to understand yourself. One thing I've discovered on this podcast is that a lot of us are confused by our own behavior. Like are you? Think about it. Do you not know why you spend money a certain way? Do you not know why you tell yourself I should go to the gym? I should eat better, but you struggle to you. You might actually be confused by your own behavior and that's a really perplexing place for us to be. That's why there's so much beauty in being able to understand yourself. Why love what I do? And I want you to see these different aspects of human nature and why interjecs so often say, hey, here's what's really going on here. I think it's so beautiful to see how we are irrational and confusing and complex. That's what this is about. As for Jeff, I really want him to get a better understanding of himself, not only for his own life, but also for his wife. Jeff, I want you to see, I actually, I want you to feel a sense of delight because you just learn something about yourself. You are reflexively oppositional and it doesn't actually help you. You disagree even when we are talking in a complimentary way about you. And it's actually not serving you. This would be topic number one or two that I would bring up with my therapist. And I would also bring it up with my doctor because you will be able to go so far. You cannot imagine how many opportunities have been around you, but you oppose them just normally being a contrarian, but actually like if you can change your way of looking at the world, you might find that a lot of people are much more agreeable than you think. It's like profound how deep you can go with this. So I hope you take that and run with it. As you speak to some of your medical providers, it's actually amazing what you're going to be able to do. Are you cool with that? Yeah. Okay. Michelle, what about how you grew up? What do you remember about your family? What did they say about money when you were young? Not a whole lot. I did sometimes, I did hear, you know, no, you can't have that. That's too expensive. We were okay, but barely. I remember my parents having an argument with my dad leaving. My mom kicked me out, actually, until he got his back pain. I remember my mom not being able to open a checking account because she wrote too many bad checks. I remember being taught, don't answer the door is it looks like it's the electric person because they're here to shut us off. In what ways do you continue on the models that your parents set for you today? There was a lot of struggling with managing bills. I thought it was normal to not be able to pay all of your bills every month. Okay. What else? Obviously, we don't haven't had conversations about money. It's not something that we really talk about. Talk to your kids about money. No, this has been a point of contention. We will tell them no, we can't afford that. That's what your parents told you. Yes. Why do you continue the cycle? One, it's programmed, that's how it's supposed to be. You don't burden the kids with the problems of money other than to tell them, you know, no, we can't get that. And you today do not. that burdened the kids with money, right? - No. - Mm-hmm, mm-hmm, mm-hmm, that's quite interesting. You grew up poor, right? That's how you described it. Close to poor? - Close, we weren't as poor as Jeff's family. - Okay. - We were never on state assistance, but we couldn't pay our bills. We got kicked out of houses, pork blurgers. - Lower middle class, let's call it maybe poor. - Yeah. - In what ways are you trying to break the cycle of money that you were taught? - I have started pushing to when our kids ask, you know, how much do things cost? Telling them something that Jeff's very much against. He will often tell them it doesn't matter we got it for you, being transparent with them on cost of things, talking to our son about savings and things that I would like to help him do when he gets his first job to get him into the habits that I didn't have when I had my first job. - What about actually modeling it? - I'm trying to, yes, that's part, again, that's a piece of why I'm doing what I'm doing right now. I wanna be able to show him number one, it's okay to ask for help. - Yes. - Number two, it's okay if you don't know all the answers, you can figure it out. - Yes. - And number three, here are the things you can do so that you don't fall into the same cycle that we were in. - Great, Jeff, you? - Yeah, no, me, I have been more open with our son about it because of that age and I wish my parents would have sat me down and explained things better, but I think awesome me and Michelle also have better patterns than our parents. We're not going to kick out credit card in our kids' names or big counts in our kids' name. - Who did that? - Both of our parents. - What? - I went away and there was a bank that sent checks to my house thinking I was there. My parents forged my name on these checks and same thing with credit cards. - What the (beep) - And Michelle? - My mother used credit cards. I think it was a Macy's or JC Penney credit card that I got maxed out by Christmas presents. My dad, I know if my dad's kind of like, was kind of like Jeff's in that he was not very good with money. - No, I'm so shocked. - I'm sure. - The parents are similar to what? This is like, it's like saying I drink water. - Whoa, really? - Yeah. - But recognizing that pattern is powerful. It's great. Did you know that before today? - I didn't make the connection on the financial side. - I knew part of why I fell in love with Jeff was because he reminded me of my dad with his stupid jokes and wanting to make people laugh and everything. But I had made the connection on the money side. But my dad unknowingly used my checking information to sign up for something online. - I hate that. I hate that your parents did this to you. The people you should love and trust the most took advantage of you. I want you, if you will allow me, to trust that there is a way that you can actually feel good about money. Do you believe that? - Yes. - Michelle says yes, Jeff? - Yeah, definitely. I mean, there's, yeah, I do believe there's a way for us to feel better about money. - I had no idea that both of their parents had taken out debt in their names. I actually wish I had known this earlier because it gives me so much more empathy. The feeling of being betrayed by the people closest to you and the way that that has to leak over into money just make you feel horrible about money. Hate money, be obsessed with money, want to ignore money, it's all bad. Now, that was not their fault that debt was taken out, that their relationship with money was polluted from early on. But it is their responsibility to fix it. They are adults, they have children. It's important and nobody else is coming to do it for them. So that is where we are. I'm glad to understand it. It provides a little bit more context and it's still their responsibility. - I have a lot of friends who are entrepreneurs, a lot of friends who are not entrepreneurs and one difference between the two is that the friends who run businesses basically have to be proactive at work all the time. They cannot wait for something to happen or a boss to tell them what to do. So you'll find that they're kind of constantly looking around corners trying to figure out what's next so they can make plans. And I have found that being proactive is a skill. If you want to be proactive with next year's taxes, I recommend checking out this episode's sponsor, Gelt. Gelt is a modern CPA firm that helps your business take control of your tax strategy year round. By working with Gelt, you get access to one dedicated tax strategies with real human expertise powered by cutting edge technology that handles the rest. They help with more than just your tax forms. They can make strategic adjustments to things like how you pay yourself, your retirement plan setup, even how you structure your business tax system. And right now in Q4, they can help you run a calculated projection so you know exactly where you'll land this year while you still have time to make changes. Gelt is taking on new clients before the year is over. The smartest tax move you can make is not waiting until next year to get started. So start your year end review at joingelt.com/remete. I'm opening up Michelle and Jeff's monarch accounts so we can drill down into their actual spending over the past couple of months. Now, our partners at monarch have customized their accounts to follow my exact conscious spending plan categories. And you can download the CSP template for free at iwt.com/csp or try out a customized monarch account and see all of your numbers in real time. The two actually work together beautifully. This is available only for my listeners at monarch.com/remete and you can use code remete to try it for free and get 50% off your first year of their core tier. All right, can we look at some of the actual spending here? - Yes. - So I did a little digging using monarch. We had you connect your accounts. And so this allows us to drill down a little bit deeper and see where some of the money is going. So let's take a look here. We have chlorna. Why are you using chlorna? - Yeah, we use it when our TV broke and then a week later when the child broke the new TV, we had to get a new TV because it wasn't covered. - Can I ask you a question? One thing after another, you have a family with three kids. You're in severe debt, you have eight pets and your TV breaks twice in like five days. Do you need a new TV? Wow, dead silence on this. - We felt like we did. - It felt like we needed a new TV. It felt like we needed a new car. It felt like we needed a new couch. It felt, it felt, it felt. What is my point? - That is reckless spending. - You don't have the money for it. I don't think either of you have ever said we simply don't have the money for it. - It's always been, we'll figure out how to get the money for it or how to make the purchase happen. - Yeah, you're not figuring it out. You have done everything except say no. For me, the TV was a way for me to online up to 12 hours a day and it was a way for the kids. - It's not about the TV. It's about the fact that we have a couple here. You, in your 40s, in severe debt, an inability to say no, like it didn't even occur to you that maybe we just say no to a TV. - Yeah, I mean, it occurred for like 30 seconds and then we justified a bit to ourselves then. - Yes, and you do that a lot and that's what has led to this spending. So I'm not gonna sit here and do some abracadabra with your conscious spending plan. It's actually YouTube that have to do the work here. Not me, what needs to change? - Our mindset, you know, just because we have the ability to put it on credit, you shouldn't put it on credit. - Guys, nothing goes on credit anymore. Terram up, it's over. Nothing goes on until you pay it off, that's it. - That is part of why I did the debt management plan because it shut down all the credit cards. So we can't go back and fall back on them or use them impulsively. I've removed all of the pay later apps so that we can get them paid off and be done with them. - Okay, let's take a look at some other expenses here. I actually love being able to dig in so we, to these through monarch. Let's take a look here. - Honestly, I kind of liked it too. - Yeah, it's fun, right? It's quite revealing. And again, I like the CSP for being able to see the big picture and then we can dig into what the hell? - Bring, okay, that will just be great. - Yeah, just fun. - That everyone can see this. Let me just describe it for a second. - Sorry. - I'm looking at a monthly view of how much they spend eating out and the chart is quite interesting. So I can see they're eating out and November is 447, then December is 1,800, 1,500, 1,400, and then $2,747 in one month. - We took the girls to Vegas for spring break. That was why that was the spike in eating out because we were enjoying ourselves. [BLANK_AUDIO] was going to figure it out later. And, and have you figured it out? No. What would the correct decision have been? We would have been something locally. Yeah. I would have taken still taking the time off and that's what our plan is for next year. Again, if you, if you made $150, $175,000 and you had no debt and you're all your stuff was dialed in, I'd be like, God bless, this looks awesome. Looks like great food's fantastic. You don't. You've put yourself in a position where you're in debt. You have very little savings. You have kids. I think that's why you came to me. Am I reading it right? Yes. Yes. So what are you learning so far on today's call right now looking at these numbers? That the little stuff adds up. Yeah. Just see that you're happy. Are you happy? Looking at the numbers, I didn't know we spent, you know, that much money eating about last last month. Okay. And Michelle, what are you learning on this call? That we need to be stricter with what we say yes and no two. Keep talking. I want to hear more. For example, eating out, I need to stick to my guns of we're not going to eat out and we'll be eating at home. No matter how tired I am or what the week was like. Success requires hard work, but it often feels good. Being strict, sticking to my guns, that doesn't feel good. What does it feel like? It's soft because it feels like when I was a kid and my parents told me no. Exactly. And sometimes I just want to go out to dinner with my husband. Yes. And yet you are telling me that in what you need to do is to be stricter and stick to your guns. Look at the body language right. Look at that deep breath you're taking. Being strict and sticking to your guns sounds like you at Costco with your husband begging you to get a smoker. And you have to put up this wall and be like, no, no, it's almost like you're being attacked. Left punch, right punch. What if it felt easy? What would that look like? I would know that we have enough money to go out and have Jersey mics one Saturday a week when we're going grocery shopping. Jeff, what would it look like and feel like if money was easy in your family? Being able to plan more with the girls rather than you can't sling all of our plans. You should be able to have some fun. No doubt about that. I want you to. But that cannot be the primary thing that you are focusing on now. Because nowhere in your descriptions did you talk about we should automatically save money. We should know our debt payoff date. Our money should be going to our debt aggressively. This is how many times a week we can eat out and both of us respect it. It was just I want to be able to spend more on stuff. Which is the same thing that got you into this position in the first place. No, I agree. I'd shifting that mindset. It's going to be hard, but it's not unattainable. The stakes here are very high. If you're in your 20s and you accidentally don't pay a credit card bill one month and you rack up interest charges, it's not great, but you could fix it. You have time. When you get into your 40s, you need to be pretty dialed in. If they don't change this dynamic, they will be in severe debt. No housing options. It's quite ominous to look 15 years down and see where they might be. So my goal is to get them to break this habit and to build a vision together, which they're both bought in on. So I decided that I wanted to show them and to show you exactly what I would want. What would I do in their situation? I'm taking a structured approach doing three things. Number one, philosophy. Number two, develop money rules. Number three, actually make some changes. And I'm going to do this fast. It will be super easy instead to just be like, okay, let's like fiddle around the edges and cut the amount down that you spend eating out. It's going to do nothing. I would rather elevate them. And I hope maybe they reach 50 percent of it, 40 percent, 60 percent. But I want to show them what excellence looks like. That's what I'm going to do. This is what I would do if I were in your situation. A philosophy around money. That means something like in our family, we save at least 10 percent of our net pay. That's an example of a philosophy around money. In our family, we have a no debt policy. That's another example. What is a philosophy with money that each of you want to begin starting immediately? That will be your debt free. We are a debt free family. I like that. Are you willing to make changes in order to support that philosophy? Yes, I am. Michelle, are you willing to make changes to support that philosophy? Yes. Great. What's your philosophy? In this family, we prioritize saving. Love it. And what does that mean? Give me a number of percentage. Typically, I say 5 to 10 percent of net pay. Let's go in the middle with 7 percent. In this family, we save 7 percent of net pay. Beautiful. Next, in this family, we communicate about money. I love that. You agree with that, Michelle? Yes. Yes. That is powerful. We communicate. How often do we talk about money? Be specific? Once a week. Love it. Once a week. What day? What time? I share my own misery because I had a rich life review. It was at 6 p.m. on a weekday. I kept on kicking the can down the road. My wife actually told me like, "Dude, let's be honest, you're writing a book on money for couples and you've missed the last two meetings." It was very embarrassing, but she was right. I was missing them because I was tired at the end of the day and other meetings started encroaching. What I do, I took a hard look at the mirror. I looked at what was going on. I realized this needs to be a priority. I moved to a 9 a.m. slot. I'm not saying it has to be a 9 a.m. but I'm saying don't give yourself a weight if don't set yourself up to fail. I think we could commit to Sunday's at 11 o'clock over after breakfast. Sunday, 11 a.m. Does that work for you, Jeff? Yeah. That works for me. I honestly think you have an amazing philosophy here. We are debt-free. We prioritize saving 7 percent and we communicate about money once a week at Sunday at 11 a.m. If you just did this, you could make radical changes with your money. I think you're doing amazing so far. That is a powerful philosophy. Now, you can have a philosophy and not yet be there. That's okay. In this family, we are debt-free. Well, you're not debt-free right now, but you can take steps to get there. That's cool. Why am I starting with philosophy and what the hell is a money philosophy? You know, a lot of us do not have a money philosophy and I can see it when I look at your spending because it's sloppy. It's spending money on pickles. Oh, I bought some corn and then I bought eight dogs. What makes no sense? There's no cohesive philosophy. But when I see somebody's spending where they are spending a ton of money on traveling or on their car or on their house and they explain to me, here's why we love where we live. We have two kids. We want to have a big space to save. Amazing. You have a philosophy. What I want you to do is start off with your philosophy because it gives you a why. It makes it really easy to make decisions when if one partner or both say, "Hey, should we take this trip or should we buy this car?" Whatever you look at your philosophy, you go, "Is that important to us?" Because in the moment, you're going to look at a shiny coat of paint. Oh, I love it. It's so cool. But actually look at your philosophy. I once went on a tour of the expensive neighborhoods in LA. Okay. This is during COVID. There's nothing to do. We drove to Bel Air. Beautiful houses, 20 bed, 20 bath. You can only see through the shrubs. I'm looking at it. I could live here. Bel Air. So nice. Such a rich life. And then I got home and I was like, "What the f**k?" My philosophy is I love walkability. So for that moment, I was like enchanted by how cool these trees looked. I come home. I don't really like that stuff. I don't want to live up there in the hills. No. Have a philosophy righted down. Next up, rules. What are your rules, the things that if you do these, they are going to make you successful. We always save 10% and we increase that number every 1%, every December, et cetera, et cetera. Third and last, we go in and we fix the numbers. I think most people just skip right to the numbers. They do this all the time on this show. I go, "Hey, what's the problem?" They go, "Well, we should cut down on a cellphone." Your cellphone until you know why and what your rules are. Otherwise, you're just going to pick something and it's going to save you 15 dollars. And then next month, you're going to go right back to it. You need to think methodically. If you're sitting around fiddling in a spreadsheet and you don't even know what the problem is, you have taken a very wrong turn. Join my Rich Life program. I'm going to put the link IWT.com/100K. Learn how to think like this or just watch this show and do it every single week. All right, back to the show. What kind of money rules can we create? We run the numbers before any purchase. Okay, great. We run the numbers. What's next? Don't try to manipulate my shell. That's a great one. I like that you're saying these out loud because you can actually print them out and put them on the fridge, make a little index card. And if something happens, one of you can pull it out. Hey, wait a minute. Are you violating rule number three? Ah, come on. We will agree. It becomes a fun thing. Money should be fun, even if it's tough times. Great. What else? Hey, how about eating out? Reduce it down to no more than twice a month. I was going to say once a month. We'll a limit of no more than $75. $75 per month eating out. That includes coffee. That includes pizza. That includes gas station stops. Whatever. All of the above. 75. So that's basically one meal. Yes. And from looking at where you order, it's Jersey mics or dominoes. Type of place, right? Yeah. Are we on board with that? Yeah. Okay. Just to give you some perspective, do you know how much you spent on eating out this year? It's August. I mean, considering that in that one month was $900. I'm thinking we're close to six grand. Six grand. Let's take a look at monarch. What's this number right here? 9,275 dollars. That was one heck of a burger. We're not even at the end of the year yet. In this family, we eat out once a month for $75. I think it's incredibly powerful. I think it's amazing, actually. I'm really pleased. I actually think it gives you a lot to look forward to every month. All right. Final thing we're going to do here. We got some rules. We don't try to manipulate Michelle. We limit eating out to $75 a month. All this feels good. We're going to now make some changes to the actual CSP. Jeff, it's up to you. I want you to get us below 60%. Our cell phone bill can come down to what? I think it was like $200 off of that. What did it drop to? $85. Yeah. What's next? Subscriptions. Again, we've been working on that and I think we can take $50 off of that. Watch the number. Went from 85% to 85%. No change. Got to think bigger, Jeff. Groceries, I think that's our next biggest expenditure. Yeah. Michelle, if they're looking at how can we bring that down to 15? I think we can do 16. How often do you all shop out? Go for grocery shopping. Once a week. We do Costco once a month, but then we do once a week. We do Safeway, Winco, and Walmart, because we shop the ads and shop sales, shop clearance. Do you shop to a number? Michelle? Right now, no. Yeah. Nobody does. We have been cutting back on what we used to spend. Look, let me just be blunt. $2,000 a month is just too much for a couple that's in debt. Can we aim for 1,500? Yes. Drops to 80%. Okay. That's a big difference. What else? The miscellaneous and categorized spending? Yes. $100. Great. We took it down to 76%. What was it? 300? I don't see us spending $300 a month on the pets. I think we could drop that down to half, so 150. Make it 200. I also think having eight pets is something you should think about. Our pets are our kids. We can't get rid of our kids, so we can't get rid of our pets. Boy, you're talking the wrong guy about that. That's fine. We all have our own rich life. Fine. What else? I want to show you something. We need to not get stuck. We need to keep moving. Savings account. I just want to point out, you currently have $571 in savings. If one of you gets in an accident or there's some kind of repair that needs to happen, there is no place for the money to come from. You will simply rack up more debt and you just end up in the same place you've been for the last two decades. Therefore, we need to move money to savings. Right now you have $150 going, which is good. Let's add $750 because that was about 7%. $750. Just automatically going into your savings account never to be touched except in an emergency. That's great. You still have $1752 for guilt-free spending. That's too much. We calculated some of your math and by the time you retire, Michelle, on the current trajectory you'll have about $117,000 in retirement. What do you think about that? I know that's not enough. Yeah, that would give you about $4,700 a year. Yeah. I mean, you too would be living on social security. No house. What do you think would happen? And I believe in with our kids. Yes. That is the track that you are on right now. That is the track. Nothing we have done has changed that. Jeff, it looks like you're having a moment of realization. Am I reading that right? I'm just, the eyes, we are still not, we're overspending and under earning. Yes. When are you going to be debt-free? Do you know? Like seven years for the credit card or a piece at least. I didn't even put in a state of loans. You need to pay that off faster. Let me show you. You have $1752. That's just not going to work anymore. We need to put an extra payment towards your debt. If I were me, an extra 500 and I might put 500 in investments because you need to invest. You see how I'm starting to split this money? Yes. You'll actually feel incredibly empowered when you do this. And then the two of you can decide in your Sunday 11 a.m. meetings, hey, I think we have an extra 100 bucks. Where should we put it? I think it should go to investments. I think it should go to debt. Well, tell me a little bit about why you think that because I'll tell you a little bit about why I think that and then let's come to a decision. That's how healthy money conversations happen. I think we had that conversation, too, and that's what pushed, she pushed me to look or a new job that makes more. I've been in the same job for 13 years. I would love that. Could you do that? Yeah. With my skills right now, I was looking, we were looking at the 130,000 comparison of the 90 I'm making now. That would be game changing. And Michelle is looking, yeah, Michelle is also looking at something that would double her kick home now. If one of you does that, it will be transformational. If two of you do that and you follow a plan like this, it will be earth shattering for the trajectory of you and for your kids. Earth shattering. It is simply the biggest possible thing you could do second to following this plan. But if you do not follow this plan and you go and make an extra 50 or 100K, it doesn't matter because you'll just spend it all. The plan is what matters. The connection between the two of you is what makes it possible. If we have a solid game plan and solid list of rules that we can follow without feeling that it's ticking the lay. Great. In order for this to work, I need to ask for help. I need to shrug off the oldest granddaughter, daughter, her sona and involved Jeff in the conversation and the planning and it is a path forward actually is possible. And it doesn't seem as insane or scary as I thought. Yes. If you could go back in time and see Michelle in 2010, what would you tell her? I would tell her that she needs to get Jeff more involved. She needs to share the responsibility and make sure she's not the only one that knows what those there are and what needs to be paid. So she's not the only one that's worrying about it at night. Nice. And what if that Michelle from 2010 said, yeah, but it's easier for me to do it because I don't trust Jeff. It's not going to be easier in 15 years. It's going to be more stressful and it's better to build that habit now than go through 15 years of worrying about going up to the register and whether your card is going to clear. That's honest. I really appreciate that. Do you think you would give yourself the same advice today? Yeah. I recognize that Jeff needs to be a part of it. It's hard to let go because I want to control and I want to know that things are going to be okay, but I recognize that it needs to happen. Cool. I always believe that people can change. And I think there will be some change here with Michelle and Jeff. I think that Michelle hopefully feels validated that there are some real issues here. And I hope that she feels challenged and encouraged that she can learn more and develop her skill. I hope that Jeff follows through. I really want him to speak to some medical professionals and see what if anything might be available to him. I think that once you have a relationship dynamic that has solidified, concretized, it's really, really challenging. So I'm wishing them the best. I know change is possible at all levels, all ages, all scenarios. It just becomes harder over time. I want to give a huge thank you to our partners at Monarch. You are now making it possible for us to take the CSP and for me to dive in to the transaction level. So many awesome insights here here. We find that this couple spent $9,000 this year eating out. That's actually immensely shocking and useful to know. You can do the same thing using Monarch. Hey, Ramit. So first, I want to thank you and the entire team for the opportunity. And for taking the time to work through all of this with us, it was extremely helpful. And honestly, it was a conversation really, really needed to have. My biggest takeaway was that I need to learn to speak up more when it comes to finances. And it's okay for me to push Jeff to be more involved instead of feeling like I have to carry it all for myself. I also realized we're not our parents. We're not in the same financial situation they were in. And we don't have to carry the same deliefs or issues with money. We have the ability to save, invest, get out of debt, and build something different for our family. We're not trapped. We did end up making a few adjustments to the budget to make it more realistic. But we do have a concrete plan now. We are on track to have one of our debts paid off fully within the next three months, and then have the goal of having our personal loan taken care of within the next 16. And then as things get paid off, we're going to roll that into other debts to get those paid off faster. We've also agreed that when and if our salary is increased, we're not going to let our lifestyles automatically increase with them. We want to put that extra money towards savings and investments instead. And I guess last thing, if there's anybody watching who thinks saving isn't for me or investing is only for which people, I want you to know that it is for you. You don't have to make millions of dollars. You can start where you are with what you have and build from there, even if it's just $10. And I think that's probably the biggest thing I'm walking away with. Feeling like we can actually do this. Thanks again. So right off the bat, the one of the surprises was not knowing where our money was going. How was being spent? Just because I was afraid, I had anxiety over spending and just relied on Michelle to do all the burden to deal with the impact of my spending and a lot of times how she felt and putting her in a position of where she had to be the parent because of my impulse buying in a lack of long term thinking. My biggest takeaway, I need to change my behavior so we can change the way we approach money together, having that conversation, regardless if it makes me anxious or not, learning more about financial planning. It also means communicating more openly about what we want for our future to look like. Specific changes, as we discussed, we scheduled that Sunday's meetings to set up goals. So look at our monthly plan, we looked it over and our short term debt management. We were able to restructure and pay off a large loan within the next three months and then take that and then put it towards one of the bigger bills, treating that money as if we never had it because it's going to pay our bills. I believe that our biggest is just being able to sit down and talk to each other openly and having that conversation that we've been avoiding just because we were afraid. The goal is, again, is to break that cycle, talk to our kids about debt management, about not getting into debt, plan for your future. Again, we're not our parents. We want to be better, we want to show our kids what it needs to be financially responsibly. Hey, our meeting team. You guys wanted to know what the biggest things that stepped with us since we talked about a month ago, and for me, it's not it's okay to speak up about everything. I don't have to quietly take responsibility of things and really shouldn't avoid the conversations just because I think they're going to be uncomfortable. For me, it was asking more questions, taking ownership of our finances and knowing that we're a team and not letting Michelle just take the burden of it all and expect that it's just going to be magic. I have also learned that sometimes you just have to hold the trigger. The plan's never going to be the first time and that's okay, but spending forever trying to get the details right isn't the way to go. The only way to know if it's going to work is to try it. So the way we did this this month was to take our paychecks and automatically move it to retirement savings and extra debt payments so we can get that down. This happens before we even get to touch it. And we also have a new income string that's going to be starting soon and we've already decided where that money is going. We're also trying to use our bank accounts a little more intentionally. We've got one for bills, one for groceries and one for everything else we might have forgotten about. And we know this is our first month. I mean, it's going to be trial and error, but that's the nice thing. We learn as we go and we can use it, you know, what didn't work this month, we could try it out next month. Yep. So, you know what? Thank you again for the opportunity and the direction you gave us. It's really helped and I think we both feel like there's big things ahead of us. Thank you guys.