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 do you know how much this
thing is actually costing you? (upbeat music) 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 for the future,
all of 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. I'm 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
EveryDollar budget last month, and I have this line
item for subscriptions, and like, we'll put our
Netflix subscription in there, and all this, and I'm paying $2.99 for iCloud that I don't even use. Like, (laughs) I haven't used this iCloud for my pictures in like, six months. Like, I transferred to
Dropbox, I don't use it, and I've not canceled it, and every month, Winston's like, "Babe,
you need to cancel it. Like, it's $2.99, and
we're not using it." I'm like, "I know, I know, I just haven't gotten around to it." And I realized, ah, 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, uh. 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 off Amazon. It's wonderful. I don't have to go to Target and go. I can just go on Amazon. But we have to be careful
because we can get lost in the black hole of technology and think, "Oh well, 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. (relaxed piano music) Alright, let me take
you back to January 2018. I was making my New Year's resolutions, like everyone in America does. And 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, ugh. Caroline was like six months old. I was so tired. Every time on the monitor,
she would cry in the mornings. I was like, dragging myself out of bed, and I was like, "I just,
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 at 4 a.m.,
and I drank coffee, and I worked out, I was
like, this is great." So I decided I'm going to start that. I'm gonna get up, and I'm
gonna start working out. And so, this blogger I follow
was talking about this app where she looked great,
she had all this energy, and I was like, "I need what you have." So she keeps talking about this dang app, and I was like, "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 yearlong membership, versus paying for the app month to month. And you know me, I like a 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 month to 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 workouts that
this app that I bought, not knowing that you can have free apps that give you this
information, but I was like, "I'm gonna be so great and
so happy and so energized." Well, our iTunes bill
came through the email, and Winston was like, "Who spent $131.09?" And I thought, "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, and I was like, "Oh, I didn't realize it was gonna charge me the whole thing." And Winston was like,
"Well, I mean it's fine. Like, are you using it?" No I wasn't. I opened that app about two
times, and I didn't use it. Guys, guys, read the Terms of Agreement. 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 that like, tears through that iPhone
every time I open it. (sighs) Man, am I still working out? No, absolutely not. (laughing) So in all things, just a bad cycle. Man, $131, you guys,
that's a lot of money! Gone 'cause I didn't read the fine print. Small decisions can affect your future. That coulda been a dank date night that Winston and I woulda gone on. But I know I'm not the only one that has wasted money
or overspent some money. So my team and I decided
to go out on the streets and figure out what you
guys are overspending and wasting your money on. - Yes, I definitely pay for
subscriptions I don't use. - I was paying for Hulu
after the free trial. - I was paying for Ipsy,
and I wasn't using it. - Planet Fitness, yeah. Okay, subscriptions, yes. Gosh, a great way to
save money is to go in, take time, 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 stay 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 overspending money on is insurance, specifically car insurance. - Do not know what my car
insurance premium is, no. - I have no clue what
my insurance premium is. - I don't know what my
car insurance premium is. It's automatically
drafted out of my account. - I've never shopped for
better insurance rates. It is what it is, like, I just haven't. - I have never shopped for
car insurance premiums, or you know, like,
price compared or anything. - The last time I shopped
for better insurance rates was last Tuesday after never. (laughing) Tuesday after never. I can appreciate that. (laughing) Yes, see, a lot of people, maybe even you are spending more on
insurance than you need to. 'Cause 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 beside
you to get you the best rates and coverage to fit your
family's needs every year. I mean, some people I know have 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 bank account. - I overdraft my account all the time. - I've overdrawn $300. - I remember once I
overdrew a thousand bucks. Overdraft fees, guilty
as charged as well. Yes, back in the day
one of my famous stories is that I wrote checks, back in the day, when you can write checks, and bounced like three
checks in 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 a year in overdraft fees. You guys, don't do it, don't do it. Stick to a budget, and use EveryDollar. I know I talk about EveryDollar
all the time on here, but seriously, get on a budget
'cause this is gonna help you give every single dollar a name. You know where all you
of your money's going so you're not having to depend on just, "Oh, I hope that I don't overdraft." No, 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 in your budget that you tend to overspend on, so for a lot of people
that's like, groceries, that's restaurants, that's clothes, 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 for food. And this really, really will help you not only stay on budget, but not have those pesky overdraft fees that you're wasting $225
on a year, on average, no. Now, something else we
usually waste money on is our cell phones. Mmm, the love-hate relationship
with the cell phone, but it is true, a lot of us
overspend on our cell phones. - 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. Overspending 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, "Oh, they charged 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, where you're like, "Oh, I'm overspending on my data so much, and they're charging me all of this. Maybe I should switch plans altogether, and get unlimited data versus
not, and looking at it all?" But looking at your bill is key. Also something that you can do is actually get on a family
plan with your friends. That's right, mi familia, mi
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 responsible, okay? Don't go get all your friends that are crazy with
their money and be like, "Yeah, let's just share
a cell phone plan," and then you end up spending more money. No, no, no, 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 envy is a real thing, and certain companies like,
launch their big new phone, and it's like, "Oh my
gosh, I can't wait to see." And yes, does it have
a better camera? Sure. Does it have a better screen? Yeah. Does it have a better
operating system? Sure. Don't know what an
operating system really is, but sure, I bet it's better, right? It's a better phone, I get it. But if you don't have
the money, don't buy it. So bottom line is, if the
budget doesn't allow it, don't buy it. (upbeat music) 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 as every parent knows,
your priorities change, 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 in
your family's taken care of. Winston and I use Zander Insurance. They do all the work for you to find the best prices and options. So go to Zander.com to get
started on a quote today because that's who we trust
to take care of our family. (upbeat music) 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! You guys, we've 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 ClickList, and it's great 'cause 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 $2.71 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 anyway? 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 ship. (laughs) 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 REDcard. 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 5% off, and free shipping, which we all love. Go into Target, and
only get what you need. Yes, 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, okay? So just make sure you go in
and get exactly what you need. And these tips really can be for any store 'cause there's a lot of stores out there that feel like a black hole. So we want to have fun this summer, so number one, date nights. You can do this really inexpensively. Winston and I, we love going to happy hour because everything's half-off,
from the appetizers and 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 inexpensively. Number two, your local library. It has air conditioning, which is amazing, a relief from the hot summer weather, but also, you can rent more
than just library books. You can do movies, it's
a whole experience. And last, but not least,
your local drive-in. Okay, 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. It's wonderful. And those are my summer
money-saving tips on the go. So let's head back to the studio. (upbeat music) 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 in my YouTube community, because I wanted to test your smarts when it comes to paying
your house off early. And it was very interesting. So, according to the Census Bureau, the average mortgage payment is $1,030. Now, if you invested that money instead of paying it to the bank, how much could you have in 15 years? Let's see what you said. Oh interesting, 34% of you got it right! The correct answer is $475,000. Mm-hmm, you heard me right, almost half a million dollars, you guys! If you didn't have a mortgage payment, and you invested that, half
a million dollars, amazing. Alright, next question is, if you have a 30-year mortgage, and made one extra mortgage
payment every three months, how much earlier could
you have a paid-for house? Alright, this one was
a little bit trickier, but most of you thought
the answer was five years, but it's actually 11
years, yeah, 11 years. That's the difference of looking like this when you have a paid-for
house, or looking like this. 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. Isn't that crazy? Alright, final question is, the average price of a home
in America is $268,500. Now, if you got a 15-year,
instead of a 30-year mortgage, at the current interest rate, that's 4.5%, which of these things could you buy with the money that you would've saved? A. A designer handbag every
6 months for 30 years? B. A nice beach vacation for your family for the next 30 years? Or C. A water jet pack? Let's see. Oh, everyone got this one right. Yep, the answer is any of these! Yes, if you just got a
15-year instead of a 30-year, you would've saved $120,000, 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, kind of." Someone else said, "An 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. (upbeat music) So we've been talking about taking 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
too, you got a little bump. - (laughing) Yes, yes.
- A little baby bump. She's pregnant, we like
babies around here. Okay, how far along are you? - 36 weeks. - 36 weeks, is it your first? - Yes, first. - First, first little one. - Yes. - So fun. Which makes this whole
story, I think, even better, because . . .
- Exactly. - This baby's gonna experience
a 15-year mortgaged house and not a 30-year, so. (laughing) 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 graduated from college. Had roommates who helped pay
my mortgage and everything. - So what made you buy a
house in college? I'm curious. - I didn't want to rent, and you know, I had a down payment sitting there. - Yes. - 'Cause I worked
full-time the entire time I was in college, and just
kinda wanted that freedom, away from home, away from renting, and like I said, I had roommates. - So you had money saved up
for a down payment already. So what percentage, how much did you have for your down payment.
- I had five. - You said, "Okay, I'm 22,
I'm gonna buy a house." So you bought the house, and you put it on a 30-year. - It was a 30-year.
- 30-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, and everybody was, "Refinance." "Your interest rate will drop, refinance." So I thought, "Okay, why not?" Looked into it and said, "Hey you know, what could I
get, just at a lower rate?" And she said, "Well, we
can do a 15 at 2.3% or 2.5%." - 2.5% interest on a 15-year,
and what was your 30-year? - My 30-year was right at 7%. - So almost a 5% difference
you guys, in interest. I mean, that's amazing, that really is. And that may not be the case for everyone, but you guys, if you do
refinance, your 15-year mortgage will have a lower interest
rate than your 30. Maybe not 5%, but that's amazing. That's like, Jesus is like,
"I'm gonna bless you today." - Exactly, exactly.
- That's amazing, so great. - 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, an escrow account's
like a third party holding some of that, and that, yeah,
so you didn't have that. - So the first seven
years that I lived there, I was having to pay the
higher mortgage payment, but none of it was going to principal, plus the insurance, plus
the taxes out of pocket. So now I'm going to a lower payment, and all of it's together. - So once you got to that 15-year, you were so motivated, right? I mean, you were like,
- Exactly. - "I can pay this, I
can pay this quickly," especially since the payment
was lower than your 30-year, which may not happen again, but still, I mean, that'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, I think, $116,000 for, would've cost $240-something
thousand dollars. I paid it off in $124,000, I think. - So you paid it off.
- In the 15-year. - Catch that, you guys. You what? - Yes, paid my house off,
paid my mortgage off. - You have no payments at all. - No payments at all.
- And how old are you? - I'm 35.
- 35 years old. You guys, that's, I mean
seriously, that's amazing. At 22, that 30-year, if
you just stuck with it, you would have been 52 years old when your house was paid for. But not only did you refinance,
get a lower interest rate, get a lower payment, but you
kept paying aggressively on it. You paid it off by the time
you're, you're how old again? - 35.
- 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, what
if I pay it off sooner?" And you keep being aggressive, pay it off where you have zero payments, and your house is yours. So I hope you guys are
motivated by Cole's story because I think it's absolutely amazing and such a testament that you
can do this if you decide to. So congrats girl.
- Absolutely, thank you. - So proud of you, that's
awesome, so awesome. (upbeat music) Alright, it's time, the
best part of the show, where we get to celebrate you all and what you're saving up money for. It is time for She
Works Hard Saving Money. Laura 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." Laura P., amazing, and 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 Laura P. did. 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." (laughing) Ashley, that's awesome. Debt-free living, it's great. Laura V. said, "We just came back from our holiday in south Spain." Laura V., my gosh. "We're on Baby Step 6, and really, there is no better way to zen
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, Laura V., so good! Okay, so she said that
they're on Baby Step 6, which means they're completely debt-free, they have a fully funded emergency fund of three to six months of expenses, and now they're saving 15% 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 #sheworkshardsavingmoney and make sure and join
our Facebook community for some great money-saving tips there. So thanks so much for
watching this episode, and I want to thank Cole for coming in and sharing her story. Don't forget to subscribe
because you definitely don't want to miss next episode, where it's all about staying
on budget this summer. And remember to take control of your money and create a life you love.
