How to Start Spending Less and Saving More
On, today's, show we're talking about common things that people are overspending, on and don't even realize it like. This little guy we all have one of these but, you know how much this thing is actually costing. Well. Hey you guys I am, so excited about, today's show you, know that, my message in my heart is all about getting you guys on a budget being, intentional, with your money getting out of debt saving up for an emergency fund investing, in for the future all the above right like really big things but. What we have to stop and realize is, that in order to make those big things happen the decisions, we make day-to-day can, really affect our outcome and, so the small decisions that, we probably, sometimes. Waste money on mm-hmm. Can affect the outcome like it's crazy how many small things that we just waste, money on that we don't even realize I, was, even, just doing our every dollar budget last month and I have this line not up for subscriptions, and like, we'll put our Netflix subscription in there and all this and I'm paying, $2.99. $2.99. For iCloud that. I don't even use like I haven't used these as iCloud for my pictures in like six months like I transferred, to Dropbox, I don't use it and I'm, not canceled it in every month when Suns like paint you need to cancel it like it's $2.99. That we don't we're not using I'm like I know I know I haven't, gotten around to it and I realized oh that, $2 even though it's just three bucks a month little. Things like that over time they really do add up and like let's not even talk about Amazon I mean, I, love. Technology like I really do like our iPhones, and how convenient, everything is it's great I bought travel, contact, solution just yesterday on Amazon it's wonderful I'd love to go Target go I can just go in Amazon but, we, have to be careful cuz we can get lost in the blackhole of technology, and think, oh it's just not that big of a deal but, again those little purchases, really, add up, and that. Made me think of the most recent money mistake that I made. Alright, let me take you back to January. 2018, I. Was. Making my new year's resolutions, like everyone. An American, does I said. You know what I'm going, to start. Working out again I'm, gonna start you know really, I. Was. Actually honestly just feeling so like Oh Caroline. Was like 6 months old I was so tired every time in the monitor she would cry in the mornings I was like dragging, myself out of bed I was like I just I need I need to be energized, and I remember when I used to work out I'm like oh I had so much energy I was up before I am and I drink coffee you know we're done I was like this is great so. I decided, I'm going to start that I'm gonna I'm gonna get up I'm gonna start working out and so this, blogger I follow was, talking about this app, or.
She Looked great she had all this energy you know I was like I need what you have she. Keeps talking about this dang app and I was like this is this is gonna solve my problem I just need this app well. I went, to purchase this app and it. Said that you get a better deal if you buy like a year-long, membership, versus. Paying for the app months month and you know me I don't think good deal I saw saving money and I thought well that's smart sure, why not so. I clicked on it thinking, in my head that, I was gonna pay a smaller, fee. Months. A month I did. Not realize that it was going to charge me the whole thing right. Then so. I go about my day you know thinking, about you know all the, all. The workouts that this app that I bought not, knowing that you can have free apps that give you this information but. I'll like I'm gonna be so great and so happy and so and, you're energized, well our, iTunes bill. Came through the email and, Winston was like, who. Spent a hundred, and thirty, one dollars in. Nine. Cents. But. That's. Crazy, who did I don't know. And. I looked and. Saw, it was that dang app that I bought and this is in February you know like Oh aunt, realize it's gonna charge, me the whole thing was. Like I mean, it's fine like are you using it. No. I wasn't I opened. That up about two times and. I didn't use it guys. Guys. Read. The, Terms of agreements. I tried to cancel the app no. Go definitely no go so. The app is still on my phone, haunts, me to this day, just, the conviction. And like tears. Through that iPhone every time I open it man. And am I still working out. So. The little things was a bad cycle. Dollars. A lot, of money gone. Cuz I didn't. Read the fine print small. Decisions can, affect your future I could have been a dank. Date night that went out on but. I know I'm not the only one, and that is wasted money or over spent some money so my team and I decided to go out on the streets and figure out what. You guys are over spending and wasting, your money on, yes. I definitely pay for subscriptions, I don't use I was paying for Hulu, after, at the free trial I was paying for tips be and I wasn't using it when it business, yeah. Okay. Subscription. Is, such. A great, way to save, money is to go in. And cancel, your memberships, or subscriptions, that you're not using, now. Some, places are going to pressure you into like, giving you a great deal not to cancel or they're gonna bug you to say signed up but don't fall, for it okay don't fall for it cancel. Those subscriptions, and save that money and something else that you may not realize you're, over spending money on is insurance. Specifically. For, insurance do. Not know what, my car insurance, I. Have. No clue what my insurance premium is I don't. Know what my car insurance premium, is it's automatically, dropped it out of my account I've, never shopped for better. Insurance rates it is what it is like I just have, it. I, have. Never shopped for car, insurance, premiums. Or you, know like, prices compared, or anything the last time I shop for better, insurance, we're supposed to last Tuesday, after never. Tuesday. After never I can. Appreciate that yes, see a lot, of people maybe even you are spending more on insurance, than you need to because listen it's so normal just to set it and just, pay it so, I don't want you to settle for just the same rate every year really shop, around you guys and get the best rate I actually have a list of recommended pros on my website they'll, work right besides you to get you the best rates, and coverage, to fit your family's needs every year I mean some people I know I've saved up to thousands, of dollars doing, this so make sure to check it out and, something else that we waste money on overdraft. Fees some. Of you, guilty. As charged. Yes. I've overdrawn, my thing overdraft. My account that I've over John, $300. I remember, once I over, to a thousand. Bucks, overdraft. Fee's guilty. Is charged as well yes, back, in the day one, of my famous stories, is that I wrote checks, back in there we can write checks and bounce like three checks and overdraft it, was just terrible so I know the feeling but listen if you get it under control, you.
Don't Have to be like the average person that pays, 225, dollars a year in overdraft, fees I, don't, do it don't do it stick, to a budget and, use every dollar I know talk about every dollar all the time on here but seriously get on a budget because this is gonna help you give every, single dollar a name you, know where all of your money's going, so you're not having to depend on just oh I hope that I don't overdrive, no no you're keeping up with everything and those of you that aren't used to budgeting or overdraft. A lot use the envelope, system I always like to say the clip system where, you go and you take categories, and your budget that you tend to overspend on so for a lot of people that's like groceries. That's. Restaurants. That's closed any, place, that you overspend on cash out the category, and, say okay I'm gonna spend X amount this month on groceries cash that out and get an envelope and write food on the front and stick that money in there or get a clip and clip that money together so, you know this is just my money from food and this really, really will help you not only see on budget but, not to have those messy overdraft, fees you're wasting two hundred and twenty-five dollars on a year on average no. No. Something else we usually waste money on it's, our cell phones mmm. Love-hate relationship with the cell phone but it is true a lot, of us overspend, on our cell phones, ah the. One thing I do go over on my cell phone bill is the data, charges yes. I go over on my data I do go over I go over my data I used, to go over on my cell phone bill whenever I had a, restricted, data plan Oh. Cell. Phones we're. Spending is so easy okay a couple of things to help you not, overspend, on your cell phone number one look at your cell phone bill it's amazing, when you look at all the itemized things you may see but, they charge me like four extra fees here you can call get your money back and actually, looking at your bill be, like these people over here we're like oh I'm, overspending. On my data so much and they're charging me all of this maybe I should switch plans all together and, get unlimited data versus. Not and looking, at it all but looking at your bill is also. Something that you can do is actually get on a family, plan with. Your friends that's, right me, Familia me, amigos we're, all one right now, if you do this you, have to make sure that they are friends that you trust and that are spots okay don't go get all your friends that are crazy with their money yeah, let's just share a cellphone plan and, then you end up spending more money and enough responsible. Friends only if you want to do it and last but not least a way not to overspend, is don't always feel like you have to have the, brand-new cell phone okay, love. Your cell phone not theirs, cell phone MV is a real thing and certain companies like launched their Big Canoe phone like, oh I see. And yes does it have a better camera sure. It's have a better screen yeah have a better operating, system sure, don't. Know what an operating, system really is but sure, but it's better right I think I'm better it's a better phone I get it but if you don't have the money don't buy it so, the bottom line is if, the budget doesn't allow it don't. Buy, it. Guys. Let's, be real being, a parent is hard work. Now. That I have two daughters of my own it feels like the to-do list never ends and if every parent knows your, priorities, changed, and you have to make important, decisions for your child's future that's why term life insurance is, a must for. Every parent it's. So easy to get and it's affordable, what, you're looking for is 10 to 12 times your annual income to, make sure everyone, and your family is taken care of Winston, and I use Xander insurance, they do all the work for you to find the best prices and options so go to Xander comm to get started on a quote today because, that's who we trust to take care of our family. You. For. All you shoppers, on the go here are a few shopping. Tips that you need to have I figured I'd start here at the grocery store because it's the biggest budget Buster that we have guys, we talked about this a million times so, number one when you're grocery shopping, make, a list, and stick to it and if you go to places like Kroger, here you can actually use Kroger click lists it's great cuz you make your list online you can see your total and it's usually worth the small fee for them to shop for you it's fantastic, number two making, it easy is great because on average a recent study shows that you spend two dollars and 71, cents every minute, you're, in the store so, get in and get out and number, three make, dinner simple, you guys it's summer who has time to cook a big meal anyways so do a BLT a salad, or breakfast for dinner make it easy and another, shopping tip on the go is for all you target, lovers out there yes, I'm here at my mother's show okay number, one is to make sure to get the cartwheel, app this is like a whole new way of couponing, you can see the great deals going on at Target and number two get the target red cards this is not a credit, card it is target's, debit, card and it's, amazing, my sweet mother actually is so scared to get this because she thinks it's a credit card and it's not it's a debit card and you get five percent off and free, shipping which, we all love go, into Target and only, get what, you need.
Only. Get what you need okay it's a black hole of goodness we all know that you go in for mascara and you end up spending like 150, bucks okay so just make sure you go in and get exactly what you need and these, tips really can be for any store because, there's a lot of stores out there that, feel like a black hole we, want to have fun this summer so, number, one date. Nights you, can do this really inexpensively. Once tonight we love going to happy hour because everything's half off from the appetizers, at all or you can even go to Sam's, or Costco if you think ahead of time and you can actually get gift cards cheap, for, restaurants. It's amazing, or even just go get dessert somewhere, but you can get out together and, expensively, number, two your local library, it, has air conditioning. Is amazing, a relief, from the hot summer, weather but, also you can rip more than just library books you can do movies the whole experience, and last. But not least your local, drive-in ok, it's, not really local where I live so, you have to drive like an hour but you guys this is so fun you get to watch a movie even two movies for the price of one and the food there is usually really cheap so, you get this whole experience of a drive-in it's like you're going back in time wonderful. And those are my summer, money-saving, tips on the go so let's head back to the studio. Another. Place that people are losing money that you may not even think about is, when it comes to your mortgage yes, people it's so normal just to get a 30-year, mortgage and, go, about your day and not even think about it do, you know how much money you're wasting when it comes to payments, and interest and all of that versus, getting a 15 year so. What I did is I went into my Facebook group and I asked some of you questions, and at my YouTube community because, I wanted to test your smarts when it comes to, paying your house off early, and it's, very interesting so according, to the Census Bureau the average, mortgage payment, is 1030. Dollars now if you invested, that money instead of paying it to the bank how, much could you have in 15 years. Oh, interesting. 34%. Of you got it right the correct answer is four. Hundred and seventy five thousand. Dollars. Let's. Half a million dollars, you guys you have a mortgage payment and you invested, that half-boy. Darzee amazing. All, right next question is if you, had a 30-year, mortgage but, made one extra, mortgage payment every three months how, much earlier could. You have a paper house all, right this one was a little bit trickier but most, of you thought the answer was five. Years but it's actually 11, years. 11. Years that's. The difference looking, like this when, you have a paid for house we're, looking like. If paying an extra, full mortgage payment doesn't work in your budget then just simply switch to paying half, of your mortgage bill every.
Two Weeks instead of just once a month and you could still pay, off your home eight years faster, crazy. All, right final question is the, average price, of a home in America is two. Hundred and sixty eight thousand, five hundred dollars now. If you had a fifteen, year instead. Of a thirty year mortgage at, the current interest rate that's four point five percent which. Of these things could you buy with the money that you would have saved a, a. Designer, handbag, every, six months for thirty years. Be. A nice beach vacation, for your family, for the next 30, years or. See, a water, jetpack, let's. See Oh everyone. Got this one right yep. The answer is any of these yes. If you just got a fifteen year instead, of a thirty year you would have saved a hundred and twenty thousand. Dollars amazing. And I actually got a couple of other funny responses, when it comes to this one, of you said probably as big as any rental property, or a, lot, of shoes I'm kidding. Someone. Else said in early, retirement, yep, that's, what I'm talking about, amazing, and you know what if your mortgage is stressing you out there, is no shame in considering, just downgrading, or even selling your home the, cash you can make could really set you up for success in the long term and, if, you use one of our trusted professionals, that I recommend, you could get almost. $5,000. More at closing than. With another agent, so remember once you own your home you guys you, have a paid-for house and it's now an asset, that's 100%, yours. And that really contributes, to your net worth you're, no longer paying the bank you are paying you and your future now if you want to find out what your 15-year payment would be we've, got a free and easy to use mortgage, calculator, so make sure to click the link below. We've. Been talking about speaking your 30-year mortgage down to a 15 and some of you are thinking, that's impossible Rachel. And I'm here to tell you anything's, possible if. You believe you guys so. I brought, in Cole here, to, share her story because she did this she's like a true life example, of going from a 30-year to a 15-year mortgage and you did it didn't you yes and I like to point out to you got, a little Bob baby. Bob yes, we. Like babies okay, how far along are you 36, weeks 36 is your first yes first. First first little, one yes so fun which, makes this whole story I think even better because, existing.
Experience, A 15 year mortgage, house. Okay, so talk, to me about your, home buying process when, was it that you first bought your home what was your situation were. You single, married tell me everything I purchased. My home in August of 2005, okay, I closed. On my house two weeks before I graduate from college had. Roommates who helped I'm I'll be my mortgage and everything so. What made you buy a house in college I'm curious I didn't, want to rent and that. You know how to down payment they are sitting there because, I worked full-time the entire time I was in college and just. Kind of wanted that freedom mm-hmm. Away from home, away from renting. And, you. Had money saved up for a down payment all right so what percentage how much did you have down kinda five but you said okay I'm 22 gonna. Buy a house so you bought the house and, you, put it on a thirty, it was a thirty-year thirty-year okay and so, tell me about the, time when you looked up and you said oh I, want to do something different I really, want to refinance and change to a 15-year after. The, real estate market crashed and, all the interest, rates went down so significantly, everybody. Was refinance. Your interest, rate will drop refinance. So, I thought, okay. Why not looked, into it and said hey you know what can I get just, settle over right you just said well we, can do a 15 at, 2.3. Or 2.5. 2.5. Percent. Interest not 15-year what was your 30-year my, 30-year was right at 7 percent so, almost. 5%. Difference you guys in interest I mean that's amazing it really is and that may not be the case for everyone but you guys if you do refinance, your 15-year mortgage, have a lower interest rate than your 30 maybe, not 5% that's a big right that's. So. Great exactly, so, we, went. Through the process and, she. Said you know your payment's gonna be less and. We're. Gonna escrow, your taxes and insurance that, way you don't have to worry about paying those so, having that escrow accounts like a third party holding some of that and that yes you know that so the, first seven years that I lived there yeah I was having to pay the, higher mortgage.
Payment, That. None of it was going to principal plus. The insurance plus. The taxes, on yes and now I'm going to a lower payment and. All of its together so once you got that 15 year you. Were, so motivated right I mean you realize that I can pay this I can pay this quickly especially since the payment was lower than your third year which may not happen again but silk I mean it's part of the story which is just amazing even if it's a little more you're paying a lot less in interest over the time if I had paid it just, the payment over the 30 years my. House that I paid when I think, 116, four would, have cost two hundred and forty something thousand, dollars I paid it up off in, one. Hundred and twenty, four thousand, I think I, made, it all teen you don't. Catch that you guys you, what, yes. Paid my, house off paid my mortgage off you have no, payments. At all no pay and how old are you I'm 35, 35. Years old you guys that's, I mean Sears that's amazing at 22 mm-hmm, 30 year if you just stuck with it you would've been 52 years old when. Your house was paid for but not only did you refinance you, know Lori I just try to get a lower payment but you kept paying aggressively. On it, you, paid it off by, the time you were you're held again 35. Well Cole thank you so much for sharing your story seriously, it's so inspiring you guys because it's like okay you, can do this you can go, refinance. Your house get it down to that 15-year mortgage and just. Like what Cole was saying you get 15, you're like well would if I pay it off sooner and you keep being aggressive pay, it off where you have zero, payments in your house is yours so I hope, you guys are motivated by cool stories I think it's absolutely amazing in such a Testaments, that you can do this if you decide to so, absolutely, Congrats girl thank you so much that's awesome so. All. Right it's. Time the. Best part of the show we, get to celebrate you all and, what you're saving up money for it is time for she. Works hard Savin, money bara. P said we bought a second vehicle with cash this weekend my husband and I have been saving in a sinking fund for quite some time and it was an incredible, feeling to pay cash for a vehicle. RP. Amazing, an FYI, a sinking, fund just means that you're saving a little bit of money each month in a fund to, pay for something big like, a vehicle, like law repeated, well, done girl, Ashley. Said in high school dave ramsey inspired, me to get through college with no debt it took a lot of work but i did, it this. Is more exciting to me than the actual graduation, that's. Awesome. Debt-free. Live. In it's great Barbie. Said, we just came back from our holiday in South Spain, for. Aviv I guess we're on baby steps tix and really there is no better way to, send when, you can free your mind of it all including, financial, stress amen. We. Have a huge, travel bucket, and thus can spend it without any guilt, on all the great things out there if. You're not there yet, hang, in there the struggle is real but. It is worth it yes, it is Arby's oh good, okay so she said that they're on baby step six which means they, are completely, debt free they, have a fully funded emergency fund, three to six months of expenses and now, they're saving fifteen, percent of their income into retirement they're funding their kids college and they're paying their house off early they're doing all of those things and going to Espana. That's amazing well, done well done so, you guys I want you to keep sharing, all of the things that you are saving up for or have saved for and make sure to use the hashtag, she, works hard saving, money and make sure to join our Facebook community for, some great money-saving.
Tips There, so. Thanks so much for watching at this episode and, I want to thank Cole for coming in and sharing her story and, don't forget to subscribe because, you definitely don't want to miss next episode, we're all about staying on budget this, summer and remember. To take control of your money and create, a life you love.