Episode: 346 - Breaking Free: The Lies That Keep Most People Stuck in Debt
Subscribe to Simplify My Money:
https://www.debtfreedad.com/newsletters/simplify-my-money
Navigating the complexities of personal finance can be daunting, especially when we are surrounded by pervasive myths that can subtly undermine our efforts. Today, we're uncovering some of the most costly lies people tell themselves about money—lies that can keep you stuck in debt and prevent you from achieving financial independence.
The Sneaky Lie: "I Deserve This"
One of the most common lies we tell ourselves is that we deserve more because we work hard. This mindset often justifies unnecessary expenditures, leading to financial stress. The new car, the lavish vacation—these are tangible rewards for our efforts. However, often, these rewards translate into more debt and stress. It's crucial to recognize that while you do deserve to enjoy the fruits of your labor, prioritizing long-term financial health over short-term indulgence is vital.
The Trap of Small Payments
"It's just a small monthly payment" or "It's only a few dollars"—these are familiar phrases that often lead people into financial traps. Many people underestimate how these small amounts can accumulate into significant debt over time. By focusing only on immediate affordability, we neglect the larger financial picture. It’s important to remember that cutting back on these small expenses can lead to significant savings over a year.
The Illusion of the Perfect Time
Many of us fall into the trap of believing we'll start managing our finances when life calms down. But let's face it—life is always hectic. Waiting for the perfect moment means delaying progress indefinitely. The key is to start now, even amidst chaos. Taking control of your finances can help bring order to other parts of your life, reducing overall stress.
Debunking the Credit Myth
A widespread belief is that you need debt to build credit. While it's true that credit scores can reflect our borrowing behavior, they don't necessarily reflect financial health or literacy. High credit scores can coexist with financial instability. The focus should be on managing money wisely and reducing debt, rather than accumulating it under the pretense of building credit.
The Myth of Inevitable Debt
Lastly, there's a pervasive myth that nobody lives debt-free anymore. This belief can be particularly damaging as it instills a sense of hopelessness and complacency. Many people have managed to free themselves from debt, but it requires discipline and a commitment to living within one's means. It's possible to enjoy life fully without relying on debt, but it may require a shift in mindset and lifestyle adjustments.
Taking a stand for your financial well-being requires breaking free from these deceptive lies. Start today by challenging these common misconceptions and taking control of your financial destiny. You deserve a future free from the chains of debt. Embrace small, sustainable changes and watch as your financial situation transforms over time. Remember, the journey to financial independence begins with one simple step—choosing to believe in the possibility of change.
Resources Mentioned
The Totally Awesome Debt Freedom Planner https://www.debtfreedad.com/planner
To learn how to take the stress out of your finances so you can breathe again, follow this link: https://www.debtfreedad.com/lwp-masterclass-opt-in-page-podcast
Connect With Brad
Website- https://www.debtfreedad.com
Facebook - https://www.facebook.com/thedebtfreedad
Private Facebook Group - https://www.facebook.com/groups/debtfreedad
Instagram - https://www.instagram.com/debtfreedad/
TikTok - https://www.tiktok.com/@debt_free_dad
YouTube - https://www.youtube.com/@bradnelson-debtfreedad2751/featured
Thanks For Listening
Like what you hear? Please, subscribe on the platform you listen to most: Apple Podcasts, iHeartRadio, Spotify, Tune-In, Stitcher, YouTube Music, YouTube
We LOVE feedback, and also helps us grow our podcast! Please leave us an honest review in Apple Podcasts, we read every single one.
Is there someone that you think would benefit from the Debt Free Dad podcast? Please, share this episode with them on your favorite social network!
Transcript
Brad Nelson:
So some lies cost you a few bucks, others cost you years of your life, and today we are going to be exploring five of the most expensive lies people believe about their money, and if you're stuck in debt, chances are at least one of these is playing on repeat in the background of your life. Now, these lies are subtle, they sound logical and, worst of all, they feel completely normal. But normal is broke. So let's get into the truth and help you take back control.
Announcer:
You're listening to the Debt-Free Dad podcast with Brad Nelson. Brad and his co-hosts experience the anxiety of living paycheck to paycheck before learning the fundamentals of financial success. They are now on a mission to empower regular people to pay off their debt for good and enjoy happier, less stressful lives. Keep listening for inspirational interviews, tips, tricks and practical advice to gain financial freedom.
Brad Nelson:
Hey guys, I'm Brian Nelson, founder of Debt Free Dad. I paid off about $45,000 in debt. I've been debt free now for more than 12 years, outside of my mortgage. I've also been fortunate to help thousands of other people save and pay off tens of millions of dollars with the work that we do here at Debt Free Dad.
Amber Taylor:
And I'm Amber Taylor and my husband and I saved and paid off $54,000 in just 20 months and we've been living debt free outside of our mortgage for seven years now.
Ryan Nelson:
And my name is Ryan. My wife and I paid off $160,000 over eight years, while we were raising three kids.
Brad Nelson:
And, after listening to this episode, you guys, if you are ready to take things to the next level and if you're listening to this, I bet you are, but maybe you're ready to break free from living paycheck to paycheck, you want to reduce financial stress, you want to build your savings, you want to finally pay off debt for good, but maybe you're like many and you're just not sure where to get started.
Brad Nelson:
We've created some awesome free resources here at Debt-Free Dad and we're going to be sharing some details about how you get started with Lowe's later on in today's episode. So, guys, as I mentioned in the introduction here of this episode, we were talking about the common lies that keep most people broke, and I got to say, when I started creating this episode, I was probably guilty of just about every single lie that we are going to cover here today. And the reality is, is we talk about this a lot inside Roots is not only these lies, but these also are excuses and a lot of ways to stay stuck and, guys, as you guys were looking through this list, any of these resonate with you.
Ryan Nelson:
Yeah, for sure. I mean, and I think in general, just with life outside of finances. I think most of us do this in our life with. It might not be money, it could be food, it could be getting a new job, it could be a million different things, you know. But we love to lie to ourselves to make us not deal with the reality. I mean I just, I mean I do it to this day. I know there's certain things I should and should not do, but I make up reasons why I do them, because I don't want to not do them. Yeah, you know, I don't want to not eat pizza. I don't want to not eat the whole thing of ice cream, I want to. You know what I mean? It's easy to lie to yourself and then you just go on with your day and you're like, yeah, it's cool, you know. Then you feel guilty in the back of your mind, you shouldn't do it, but you do it anyway because it's it's what feels good.
Brad Nelson:
Well, and I think the other part about this is like and as we go through these lies, you guys are going to start to understand this a lies to ourselves, but we also hear this in marketing of products, marketing of debt, marketing of things like pizza and ice cream that we should indulge in these things. And not only do we hear that from them, but we also see it around with other people. Right, maybe you're on that diet. Right, you want to eat healthier. But when you see your coworkers going out for that lunch or that pizza or that pizza arrives in the lunchroom, it's like, well, they're doing it. Why can't I do it? Right? So this really can get challenging as you kind of go further down the rabbit hole.
Amber Taylor:
Yeah, exactly, I think most people are going to relate to these, yeah, so the first one.
Brad Nelson:
The first lie is I deserve this, I work hard for my money. And, guys, I think the one thing when it comes to finance and buying stuff, I would say this is the lie that most people tell themselves when they buy a brand new car. Right, I feel like I hear this one the most. Well, what was the reason behind wanting to buy that brand new car? I was the same way. Well, I work hard for my money. I should have something nice to drive. I deserve that vehicle. Little did I know that one vehicle was also the reason why I couldn't save, why I couldn't pay off debt, why it was causing more financial stress in my life. But I told myself this lie that, well, because I work hard, I deserve this nice brand new car.
Amber Taylor:
Well, it's not just us telling ourselves that. I find other people in my life say that to me, like if I'm thinking about making a purchase or thinking about doing something, I'll have, like my mom or somebody else, be like you, work really hard, you really deserve that. Why do they put that in my head?
Brad Nelson:
Yeah, yeah, it's hard. I mean a couple of years ago, you know if you guys have been listening to the show. It's hard I mean a couple years ago, you know if you guys been listening to the show. I lost my spouse and I had a struggle with this for the last couple of years. It's like, well, I've been through a lot in life. I deserve to treat myself a little bit.
Brad Nelson:
It's so easy to get sucked in that mentality with a lot of things. Right, you play that victim role, like this happened to me, and now I'm going to enjoy my life and just be frivolous, right, and at times, yeah, it got the best of me here and there, but I also was very aware of that too. I was like I know what's actually happening in my brain right now and this is not the reality, this is not gonna fix anything. But you lie to yourself, like Ryan, you said when it opened, like you get a new job, you say I deserve this. You say I deserve this. I worked hard for that promotion or that new job and you might go and spend extra money, right. So this I deserve. This isn't just working hard, but it's all life events that you kind of go through.
Ryan Nelson:
Well, and this is like probably the number one ploy that marketing and credit cards and just any kind of debt, I mean this is ingrained in us. It's kind of like what you just said, Amber. People use that because that's what they were told. You know, credit cards really became popular what? Probably in the 50s, 60s, you know so, for the past 60, 70 years now they've learned, you know, and so now we have generations of people that deserve it and they pass that opinion and thought process down to their kids. You pass it on to your kids.
Ryan Nelson:
I used to say it all the time. I still say it. It's just now I have more self-control because, yeah, I do deserve it. I work hard, but I don't want the stress of what it is to deserve it. You know, I mean, I used to. I used to take it and then I'd be miserable for doing it and I'd be paying for it. Have payments be stressed out? It's like I don't deserve that. I've learned that I don't deserve the stress that comes with doing the wrong thing, and I used to do the wrong thing all the time and then be you know, we'd be my wife and I'd be fighting. It would just not be fun and it's like is that what you deserve? You know, yeah, I deserve the new car. Cool, awesome. I got the new car. Now we're fighting we have. No, I don't deserve that.
Brad Nelson:
That's very, very true.
Brad Nelson:
Yeah, I think the other lie that really kind of piggybacks on this too and we didn't really include this, is kind of a bonus one we're going to give you is like right now on social media, like we are seeing a resounding response from some of the stuff that we post on there is like everyone is I shouldn't say everyone we post on there is like everyone is I shouldn't say everyone.
Brad Nelson:
There's a group of people that are in the state of mind that the world is coming to an end. Right, and they may not be saying I deserve this, I work hard, but many of them might be saying, like, what's the point of even trying anymore? Everything sucks right. So you kind of get sucked into that mentality as well. Is that it's not a deserve thing? But it's more or less this idea of everything that's going on in the world, whether it be politics or whatever, that you kind of get stuck in this mindset of, well, everyone else is struggling, it's not getting better for anyone, the world's coming to an end, and you kind of get into this doom spending mode too.
Amber Taylor:
Yeah, well, it is crazy with social media and the fact that it knows what you watch. So if you stayed on a couple of videos that were like that doom idea you're, you're gonna see more and more and more of it and then, all of a sudden, your feed is full of it. So now you're spending based on that, when in reality, if you were to try and search more positive things, your feed slowly changes and now, oh, the world really isn't ending Like. It's wild how it just sucks us in.
Brad Nelson:
Yeah, it is. And then you know, you're sitting there doing the doom scrolling, you know, before you know it, 30, 40 minutes goes by and you're like oh my gosh, why do I feel so awful? Yeah, I'm going to go buy something, Right, I'm going to go buy something that makes myself feel better now.
Ryan Nelson:
Well, and I think if you get stuck in this, I deserve it mode. This is going to sound mean, but you're going to reach a point in your life where you're 70, 75 years old, having to work 40 hours a week and I don't mean to be rude, but you deserve it because you're making the choice now to say meh, I deserve it. Making the choice now to say meh, I deserve it. And there's a lot of people, a lot of stories of people who get to the, you know, to retirement, and that's you know. It's one of the biggest things I'm thankful for.
Ryan Nelson:
Getting out of debt is we're on track to be okay when we retire and I don't want to have to work when I'm 70 years old and it would have been easy to stay in this. I deserve it mode. But then when I get to the point where I got to work in my older years, I can't complain. I deserve it. I made the choices to do that and I think if you're going to stay stuck and you're going to stay in this, I deserve it mode. Just don't be the one of those people, when you get older, complaining. You got to work. You're choosing that. Yeah.
Brad Nelson:
Next slide, guys, is it's just a small monthly payment, right? Or the other one we've talked about often, is it's only a few dollars, especially if you're just you're paying cash, right? So it's this whole idea of just everything you can do in payments. Now I mean, we've talked about this man so many times. I mean you can literally finance anything, including, you know, food delivery now, which I think is crazy but you get sucked in this whole mentality of everything's a payment because that's sold to us, right? So again, we just say it's only this much a month or it's only a few dollars here and there, but that stuff adds up.
Brad Nelson:
We've talked about this little meme and saying quite a few times but it's, how much does it cost in spending every single month to waste $10,000 a year? The reality is it only takes $27.40 a day in spending to waste 10 grand a year. That's why I think it's crazy that you're hearing some of these financial gurus out there, some of these people who are saying, like you know, the small purchases, don't worry about those, you know, don't worry about your coffee runs, don't worry about all those little small stuff, like that stuff isn't that big of a deal. But what if all that small stuff adds up to hundreds of dollars per month. That becomes a big deal. And so when we're just looking at just that small amount and not the bigger picture, it's easy just to say, yeah, we're just going to do it, because all you're doing is looking at the small amount. You're not looking at the whole picture moving forward and how much it's going to cost you.
Ryan Nelson:
Well, I mean, just think, five bucks a day, even five bucks a day, it's $150 a month on average, right, just five bucks. I mean you can't even buy a fluffy coffee at Starbucks for five bucks anymore, right, I mean, five bucks doesn't buy you anything. So just think, like, even if you spend on average 10, $15 a day, I mean that's three $350, $400 a month out the door, and $10 a day is so easy.
Brad Nelson:
And then you look at, 63% of people can't handle a $500 emergency expense without going into debt. That's why the little purchases matter. Because, man, what if you could get out of that? What if you could build $1,000, $3,000 emergency fund how good. And I know, in the grand scheme of things it's like, oh, it's only $3,000, $3,000 emergency fund, like how good. And I know, in the grand scheme of things, like, oh, it's only $3,000. That's not that much. But do you have any idea, going from having hardly anything in your savings account to having three grand, how much less stress you would feel. Like, how, man, having like just a little bit of a safety net, it's incredible the difference that it makes in people's stress levels. That little flip, that little mindset flip, can make just a huge difference in the amount of progress that you're able to make over time and getting some of those small wins.
Ryan Nelson:
But I totally remember being in this stage of the monthly payments. We got out of debt. Now what? Five years ago? So this was really before all this stuff really kicked off now, but even before then it used to be. You know, you could put no money down and no payments for 12 months or something like that. I mean we financed everything and it was like it's only 15 bucks a month, it's only 20 bucks a month, only 50 bucks a month, like you said. I mean, all of a sudden you're like you're paying four or five, six, $700 a month on all these other little things and what's happened is now you set up all these subscriptions. I mean they've learned, we adapt to that. I mean even software. I mean you try to buy a piece of software. You can't buy software anymore for a hundred bucks for the.
Amber Taylor:
you know you got to buy it on a subscription.
Ryan Nelson:
You know you can't buy anything. You can't just buy Windows anymore. You got to buy a subscription to Windows because they know the 10 bucks a month makes them more money and you're going to keep doing that as opposed to dropping 150 bucks on it.
Brad Nelson:
Right, right, what's surprising to me too, I should say surprising, but what I want our listeners to know is that I've seen a lot of snowball sheets. There are so many people that will send me their list of debts, and they don't necessarily have a huge amount of debt, and we'll talk about credit cards. There are so many people that will send me their snowball list and they don't have a ton of credit card debt, but they have a ton of credit card accounts. So what's happening is that all of those minimum payments turn into minimum payment hell and it stifles their entire cashflow for the month. That's why, like just you know, using the debt snowball method and paying off some of those smallest balances, like it, makes such a huge difference to some of those individuals, because you're finally knocking out some of those monthly payments every month, which frees up cash flow every month, which gives you more breathing room, but focusing on again that small monthly payment and that's all you're focusing on.
Brad Nelson:
I've worked with people who have 20 credit cards and it might total up to like $20,000 or $30,000 in credit card debt overall, which for some people, that might seem like a lot, but it's all the minimum payments that are just killing them. You know it's not necessarily the total amount of debt, because once they start paying off some of those lower balances, they're able to start making some really good progress towards paying off some of the higher balance cards. So, yeah, you got to be really careful with that, just focusing on that small payment. The next one is I'll start when things calm down.
Brad Nelson:
No, this is exactly no, you won't, yeah, no, you won't. This one, we hear all the time like my life is just busy right now. And again, we all use this excuse I don't care if it's your finances, I don't care if it's your health or whatever it might be. Man, I just don't have time right now. My life is just crazy busy right now, and we give ourselves this thought that one day, the clouds are going to open up, the blue sky is going to be out there, the sun's going to be shining and there's gonna be a message in the sky that today is the day that you're supposed to start. And the reality is is that is such BS? Right, that's never going to happen. You got to learn to start right now, no matter what you're dealing with, because life is never calm at all ever, especially if you got kids. So this is a good one, because I'm guilty of it Totally.
Amber Taylor:
Yeah, my life has gone crazy in the last year and a half. Like it's been wild how many things have happened to us. And the fact is, is if you just start, if you just make the conscious effort to start, how much more calm your life will be once you get your finances and a plan for your finances in check. It's just going to help calm that section of your life, so the other chaos doesn't seem so chaotic. Yeah, well, it's true.
Brad Nelson:
It is. People don't understand that. That's where, for instance, you say you're sick, you miss work. On the surface level, you're sick, you miss work, but on the back burner is the money side. So you might be sick today, but then all of a sudden your paycheck comes and you may not have sick leave or whatever, and all of a sudden you're missing money. Now, right Now, things are tight financially and you're absolutely right. Having control over your finances, it makes going through all of the other things that you have to go on through life just a little bit easier and a lot easier to handle, because you don't have to worry about the money side.
Ryan Nelson:
Right, this also piggybacks. You know where I'll start where things come down. I used to use I'll start when I get a raise, I'll start when we get our tax returns back. You know, I used to use all these reasons, these excuses of how just this perfect moment, when I get our tax return back, then we'll have this money and then we can start. And then in between those three months that I said that I was like spent that money 16 times, you know, on all different things, and then you get to that time and say I don't have that money because you're just delaying it. It's just your way of like pushing it off, pushing it off, pushing it off.
Brad Nelson:
Yeah, well, and I think the other thing a lot of us struggle with too is, you know, when we're getting started. A lot of us get started doing it alone, right, and when you are looking at it and you fall for this idea that you're not good with money or you don't know what to do, it's easy to put it off because you have to have all this energy to try to figure it out on your own. And I think that's what makes like what we do here in Roots and our membership is so ideal is like it gives you the things that you should be doing every single day, step by step, from day one, no matter where you're starting from. Everyone goes down the same road. You're going to start here and we're going to work with you every single week and show you exactly what you need to do. That makes it so much easier because you don't have to reinvent the wheel. You don't have to figure it out for yourself. You don't have to. You know, do this trial and error of like will this work, or question yourself if this is going to work. No, we've proven it works. Just do the steps that we're going to show you how to do, and magically I like to say magic, because sometimes it looks like it is. You know, in six to 12 months.
Brad Nelson:
It's amazing how much progress that you could make in a situation, especially that you felt at the beginning was hopeless. A lot of our members will say like I never would have believed that I made the progress that I've made. I just never would have believed it. So just making those small steps every day can make a huge difference. Lie number four is we need debt to build credit. This is a balance right here. Yeah, if you're trying to build a credit score, here's the issue with this is that a lot of people go into this wanting to build their credit and what they end up doing is building a good amount of debt with it all in this excuse and lie and a lie that's been told to us for years and years and years that we have to have good credit in order to be good with money and what we end up collecting is just a lot of debt, all in the name of building credit.
Amber Taylor:
Honestly, we had really bad credit when we had a lot of debt. It was bad and when we paid off our debt, our credit went up and now we have this incredible credit score the both of us and we really don't carry any debt outside of our mortgage. So this is a flat out lie.
Brad Nelson:
It's crazy.
Amber Taylor:
Yeah.
Ryan Nelson:
Yeah, we have an amazing credit score. But I think there's this idea that an amazing credit score means you're really good with money and I've told this story before, but I remember being it as, probably 15 years ago, going to buy a car and our score was in the 700s. It was decent, not bad, pretty average. And I remember them being like yeah, you can't borrow any money. Like what do you mean I can't borrow? Like, if I have this great credit score, I'm financially responsible.
Ryan Nelson:
There are employers that will pull their credit score as a measure of you know, are you responsible with money? And like you can be terrible like money, like I was, and still have a good credit score. Yeah, like it's not a measure of how financially responsible you are, it's just a measure of how much money do you borrow, how much debt do you play with and do you pay your payments on time. That's all it is. Like we were in over our heads in debt and making our payments stressed out beyond belief, but we had a great credit score. But the guy's like, yeah, you have way too much debt.
Brad Nelson:
Yeah, it's true, I was the same way had a great credit score, but man had no money in the bank, broke all the time, stressed beyond belief. And you guys, if you want proof that this is a real lie, just look at what goes on in the world. When people, when there's struggle going on in the world, like when inflation is going up, like people aren't throwing their hands up screaming I need a better credit score. A lot of people you already look at like COVID, you know, when things were shutting down, people were losing hours at work or whatever People are throwing their hands up saying I need money. The credit score was not even really that big of a deal when you go through a lot of these events. A lot of people just desperately needed more cash. Right, they need higher wages or whatever it is. It's not necessarily just about the credit score, but it's amazing to me, like when people come to us. If you had 100 people come to us, we'll have 95 people that will say I need help building my credit and getting my finances in order, and only five of them will say I need to build my net worth and improve my finances, and that shows you that we have lived in a broken system because so many people are focused on credit scores to obtain debt versus saying what do I need to build up net worth and actually start to be able to build wealth in my life? And that's how broken I feel like some of our mindsets are when it comes to some of this stuff.
Brad Nelson:
And the last one, you guys, is nobody lives debt-free anymore. Nobody does. When we first started this business back in 2015, I feel like you know, obviously, social media has gotten way more popular, you know, over the years in the last 10 years too but I think the whole debt-free community, the debt-free journey, was just starting to ramp up then, but there were a lot more people that doubted it, I feel, 10 years ago than today. But there are still plenty of people who feel like there's no hope for us. Like you know, I mentioned this in lie number one, where there's this doom and gloom doom spending the world's ending. Everything is falling apart. Why even bother trying anymore or even believing in this idea that debt freedom or financial freedom is possible for us?
Ryan Nelson:
I'll brag a little bit on my son. I mean, my oldest moved out a year and a half ago. He's debt free. He's putting money in his retirement account. He's saving money. He went to college, paid for it himself. He lived here, obviously, but we didn't pay for anything, we didn't save money for him to do that, so he had to work cash flow it. I mean, he did all that because we learned how to manage our money and we taught him how to do it.
Ryan Nelson:
It can be done. You know, I think that's going back to social media and this doom scrolling of like our kids can't ever afford to do anything. I think what we have to realize now in this world I will totally agree Things are way more expensive. Things got more expensive. This new world.
Ryan Nelson:
You can't live the way I used to. I used to be able to pay for my house and do all this stuff and then accumulate a bunch of debt to have all my fun stuff. You just can't do that anymore and I get it. I totally agree. But to say you can't live and you can't afford an apartment and you can't, it's all BS. You can, you just can't afford it the way we used to do it. You can't afford the house and all these other things and all this other debt on top of it to go have your camper and your boat and all these other things. That's how we used to be able to do it. That's how I used to do it. I get it.
Ryan Nelson:
I would not be able to do that now and my son obviously can't do that. He can't go acquire tons of stuff with debt. I mean there's just not enough money. But he still has enough money to save for retirement, put money away, go on some vacations, do the things that most people do. He just doesn't have the money to live above his means, like I used to right A bunch of debt. You can do that still today, but you are going to struggle and I think that's probably a key difference that I see with this. Nobody lives debt free anymore. I think the reason why people think that is because they're busy trying to still live the way we could five, six years ago. You just can't. To me, you just can't do that anymore. You have to make some sacrifices and say we're going to still be fine, but we just can't live beyond what we used to anymore with all this debt.
Brad Nelson:
Well, even if you leave debt freedom out of it let's just say get out of debt. Let's just say, pay off my credit cards there's people who even doubt that you can do any of that stuff. But if you look at our Roots members, if that was the truth, then why are Roots members still saving and paying off thousands of dollars in today's economic times? They still are, and a lot of these people were facing some pretty harsh circumstances when they first got started. So I look at these people as proof. Hey, if these people can do it, why can't you do it? You absolutely can do it.
Ryan Nelson:
Well, and I think we shared some stats on here before and I don't have them right in front of me, but I think the stats are pretty similar. You know, 60-ish percent of people back in 2018, when things were good and things weren't crazy about the same amount percent of people said they could only afford a $500 emergency, as what a survey said, like last year. So if only 60% could afford it six years ago, when things were great, or seven years ago, and it's the same percent now to me, back in 2018, it should have been. Only 10% of people said that, but the same percentage of people. It's the same excuse. It's just wrapped in a different bow.
Brad Nelson:
Yeah, yeah, no question. Well, it's like people who win the lottery, or we have this idea that if we just made more money, we would just magically manage it better, and that's just not the way it works. A lot of people who just mismanage their money when they're making less money and then all of a sudden start making more money, mismanage it just as much. I mean heck. We can again focus on some of our roots members that have come through. Some of them, you know, make normal, middle, middle to higher income salaries, and we've had some people who make upper six figure salaries, and they come in and they all say the same thing, though but it's not the amount you make, it's what you manage or how you manage what you make.
Brad Nelson:
So if you want to battle these lies, you can sign up for our newsletter Simplify my Money, which is sent each and every Sunday to your email. It is your step by step roadmap to better financial control, and you're also going to learn some easy to follow strategies to manage your money effectively. You're going to have stress-free money decisions that are actually going to help you simplify your financial life with proven tips that actually work, and you're going to gain the tools and confidence to tackle your financial goals head on. Sign up for Simplify my Money by clicking the link at the top of the show notes.
Amber Taylor:
Let's talk about debt, let's talk about debt. Tune into Debt Free Debt, tune into Debt Free Debt. And that's how I'm going to end this time. For the celebrations of the show, jim paid off my second debt, last year's state tax, this week. Now that money will go towards getting my emergency fund back up then to the next debt. What a feeling. Yeah, that's an awesome win, jim.
Brad Nelson:
Congrats back up then to the next debt what a feeling yeah, that's an awesome win, jim congrats. Yeah, and that's like we talked about just taking those little steps. Such a great feeling. Uh, tara says all of our large bills for the month are completely paid and it's still early in the month. Tara, awesome budgeting win.
Ryan Nelson:
Great, great job and mary bills are paid. Traveling with family to see my niece graduate high school and give her a cash gift Awesome.
Brad Nelson:
Way to go, mary. Hey, as always, guys, congratulations to all of you guys who are taking a stand for your financial life and you're wanting better. Hey, we get that. Getting out of debt isn't easy, but with our help and hopefully with your consistency and discipline, we promise you guys, this can be some of the best work that you guys do in your entire life. Thanks for joining us on today's show and we will see you guys on the next episode.
Announcer:
Thanks for listening to the Debt-Free Dad podcast. Connect with us on Facebook, tiktok, youtube and Instagram. Just search Debt-Free Dad. If you found value in today's episode, please leave us a rating and review. We so appreciate it. For resources, show notes and links mentioned in today's show visit debtfreedadcom. Catch you next week.
