“I’m jealous when I see friends’ vacations on Instagram”

We never get around to the dreaming vision casting as much. We just kind of talk about the hard stuff.

I think we used to talk about the good stuff even when we had way, way more debt than we do now.

When I think about money, I am afraid of not having enough. I feel like it's never going to be enough. I don't know that there will be a time when I say, oh, I feel secure.

What do you say to your husband about money? What are the most common phrases you say to him?

We can't afford it. We need to make more money.

Maybe you need to make more money.

And what do you say to yourself?

I say to myself, if you stop being hyper vigilant about money, it's all going to go to there's something wrong with you.

Meet Eric and Andrea. Eric's 44, Andrea's 43. And I really love this episode because you're going to see how many of our worries and fears, fears about money are unexamined. I mean, how many of us worry if we'll have enough or if our kids will have enough to pay for college? Those worries are real. But have you ever tried to actually answer the question? For most of my guests, they will spend decades worrying about money, but they haven't even spent a few minutes trying to find out when their debt will be paid off or if they can afford to retire. Eric and Andrea are going to walk us through a beautiful example of how you can go your whole lives worrying about money. But I think there's a different way, different way you can choose that lets you feel confident about money by becoming competent. Let's get started with Andrea and Eric.

We were sitting in our TV room. I think the kids had just went up for bed. So Andrea, raise going into the new year. And one of the things that's come up is putting money away. We have three kids. One of our kids is in eighth grade. And one of Andrea's things is she wants to start putting money away for the kids college. And we're not on the same page about that at all. And it was a reoccurring conversation, but it really came, came up again kind of heavy. I think at the time we were sitting on separate couches. We have two couches that kind of make a little corner in our room. And I don't know, I just kind of felt the distance because we're so different when it comes to that stuff.

Let's talk about it. So what was the number of the raise, Andrea, in dollar values, how much of a raise did you get it's.

About $400 a month.

$400 a month. Okay. All right, cool. Congratulations.

Thanks.

And so did you bring up the topic of the raise and where you wanted to put the money?

I did. I said, I want to take my raise and I want to funnel it into a college savings fund. I said, I don't want to put it in our savings account with our other money. I want it to go into a different account that's dedicated to saving for college.

So that's how you started the conversation, Andrea. Like, no preamble?

No.

What do you think, babe? I love you.

No.

Okay.

Because I was already mad because we had already talked about this and Eric had said, they can figure it out. Nobody paid for my college, and I was fine. And I said, we're still paying off your college loans. Still to this day. We're in our mid-40s. We still have 30 grand paying off in your college debt. My parents paid for my whole college. Eric's mom couldn't. It's no shame on her. She was a good person, but she couldn't help him. And Eric's like, well, they're. They're going to be fine. They're going to figure it out.

All right, so this has been a heated topic already. So you came in guns blazing. I'm getting this money, and I want to put it away for our eighth grade son, Right? Yep. All right. And what do you remember his reaction?

I think he immediately kind of turned cold. In conversations with Eric, I typically feel very unsafe because he. He shows little to no concern about the future, and he's kind of always been like that. So he doesn't think a lot about tomorrow. He just thinks about, like, what feels good right now. Okay.

And just a question for you. Is it to worry about the future or is it to properly plan for the future?

They've kind of been synonymous for me for a long time.

Do you think that they are inherently synonymous?

No, but that. That results in me feeling really anxious and upset every time we talk about money.

Hence starting the conversation fairly aggressively.

Yes. Yep.

Do you recognize that that was a bit of an aggressive way to start the money conversation?

Yes, but I didn't feel bad about it because I already was feeling so angry. I just felt like I needed to just say, hey, throw down a gauntlet. Like, this is what we're going to do.

Very righteous. This is how it's going to be.

Very self righteous.

And in fact, no matter what he says, that's actually going to fuel my anger and make Me even more angry?

Yes. If he disagrees with me, I will get even more angry.

Okay, so in your mind, saving for your son's college fund is a. The right answer?

Yes.

That's based on the math.

I think it's based on. That's what my parents did for me. I didn't ever have to. I didn't have to worry about where's the money going to come from. I, they just paid for it because they had saved over the years. I don't agree with a lot of my parents decisions, so across the board, I don't try to emulate them. But in this situation, when I think about my child's future, I would rather tell him, don't go to college, go to trade school, because I don't want him to walk away with a hundred grand of debt.

Okay, so your decision. Would you care to restate your answer? How do you know that you are right about taking your money and putting it away?

It seems to be the most responsible thing to do for my child. So he won't have to worry about his future and he won't be saddled with a lot of debt.

Okay. All right. Eric, what do you remember happened next in that conversation?

In the most recent conversation, I just kind of felt resigned. You know, she came in a little hot, which isn't her typical posture on paper. We put down $350 a month and I'm like, well, that's not a huge amount. I don't want to argue about it. I'm kind of. I'm over that argument. It's not. Doesn't feel like we're going to get anywhere different on. So I just kind of felt resigned.

And is there any element of. She got the raise. You know, she obviously is working hard, being recognized at work, therefore she should be able to make the decision. Or are your finances decided jointly?

There was a little of that in this instance, but for the most part, we have always and do consider our incomes. One what she makes, what I make. We're in it together.

It's all right. So how did you end up resolving this?

We have a line item in the conscious spending plan for the kids college fund.

Yeah, that's what we landed on. Yeah. But I think we still, we just know that we're so different fundamentally when it comes to money that we don't hope for perfect harmony. It's just, it's not going to happen.

I asked Andrea, how do you know if it's the right decision to save for your son's college? And she Basically said, because that's what my parents did. This is the life of most Americans. What I am begging for you to do is to actually learn how to make these decisions the right way. To take even 15 minutes and run a few numbers, to read a single book on personal finance, like, I will teach you to be rich. And I'm begging you to take this seriously. This is your rich life. What could be more serious? Making impulsive decisions about multi hundred thousand dollar decisions is how you end up with no income, no investments, living solely off Social Security. The exact thing that my guests often worry about. What they don't realize is they have the power to craft their own future. And you can't do that just blindly following what your parents did. We'll be right back. Okay, now back to Andrea and Eric. What was the worst dish your parents ever cooked for you?

Okay, so my mom made this. It was a scalloped potato casserole with cut up hot dogs and green beans in it.

This is disgusting.

I grew up in the Midwest and that's.

I knew it.

Welcome to the Midwest.

When you said the word casserole, green beans, and then you threw in hot dogs, I'm like, this is like Midwest as it comes.

Yes.

Now do you make the same thing for your kids?

No.

Why not?

Never. I never even thought about it.

Isn't it. Isn't it a right to do what your parents did for you?

I see where you're going with this.

I just had to show Andrea how following what your parents did with money doesn't automatically make it the right decision. And the best way to illustrate that was with a disgusting casserole meal with green beans and hot dogs. Please, everybody listening to this and watching this on YouTube, do not write me to tell me how it's actually good and you just have to use the right spices like your mom did. Black pepper is not a real spice. Okay, send your emails, your angry, furious emails to culinary feedback that Ramit will never read at I will teach you to be rich dot com. How long you been married for?

Almost 16 years.

Oh, congratulations.

Thank you.

Thank you.

What's your wisdom for couples who want to have a long marriage?

We've actually talked about this, like, have fun together. Yeah. I think in the past, you know, we had regular date nights. We would, you know, try to get out and do things together. It's often been work trips for Andrea or for me, and we've kind of like tagged on some us time and we can leave the kids behind. I have really fond memories of those Trips, you know, when we get to get away and spend some time together, even if there's work, like, mixed in.

What was the last time you took one of those trips together?

It's probably been a year and a half.

Okay.

Or more, maybe two years.

We were trying to reinstitute the state on Thursday night. We just got back from the date, and Eric was like, I did not have fun. And I was like, you didn't have fun on our date? He's like, no, we just talked about heavy things the whole time. We just talked about money the whole time. I want to have fun with you. And I said, well, our lives don't have any fun in the babe. Like, we don't have fun. And so then we kind of just looked at each other, like, what is happening? Like, why? Why don't we have any space for fun in our lives? Which I think a lot of that for me is. My fears about money prevent me from the freedom of, hey, let's take a trip, or, hey, let's, you know, go out for this really nice dinner. Because in the back of my mind, I'm always like, oh, crap, like, we're gonna pay for this later.

Can you give me the full sentence on that? Like, when I think about money, I am afraid of. Finish the sentence.

For me, when I think about money, I am afraid of not having enough.

What is enough?

I don't know. I feel like it's never going to be enough, which is what tells me that I have. The problem is me. I have the scarcity mindset of I'm always going to need more. I don't know that there will be a time when I say, oh, I feel secure.

What do you say to your husband about money? What are the most common phrases you say to him?

We can't afford it.

Okay, what else?

We need to make more money.

Maybe you need to make more money.

Is that true, Andrea?

Yes. I have a lot of feelings about money, but they're not based on anything like empirical evidence. It's just kind of all, well, that's not enough, and we need to have more.

And what do you say to yourself?

If you stop being hyper vigilant about money, it's all going to go to.

Good. What else?

There's something wrong with you.

Like what?

There's something wrong with you that you're in your mid-40s and you don't have the kind of financial security that your friends have. You aren't taking the trips that your friends take. You don't have the kind of cars that your friends have and you worry about money constantly.

What kind of cars do they have? The one that. That sticks in your brain.

I'm not even a car person, but we have these, like, dumpy cars. So my friend just got a brand new. But she just got a brand new Toyota Sienna, which is the car. The car that I drive, but it is the new model and it is super nice. It's loaded.

Okay. How old is your model?

It's a 2011.

Okay, so like 13 years old. And the trips. Can you remember, are you sitting on your couch and you see a friend on vacation on Instagram? Is that how you experience that?

Yes, a lot of the time. Or my best friend, she. They just have more money to spend and they go on a ton of trips. And I've even told her, I said, I feel jealous of the fact that you get to go on these trips.

You said that. How did she respond?

I think I kind of apologized because I could tell that my jealousy was leaking out. And I think I had made a comment to her, like, I've never met anybody who takes as many trips as you. And I caught myself, and I said, that's just straight up envy. So I apologize to her about that.

You ever bring up trips at home?

Yeah, we talk about it a lot.

What do you say?

Most recently, I said, I want to go on an Alaskan cruise. And I said, but when I looked up how much Alaskan cruises cost for a family of five, I was like, probably not going to happen. Yeah.

Did you actually say probably not going to happen out loud?

I might have said it through my facial expression. I don't think I actually said it out loud, but I did put it down when I was writing out my rich life. I wrote Alaskan cruise. Okay. So I'm kind of holding onto it still.

It's interesting you said, whether out loud or to yourself, you said, probably not going to happen. Do you believe that? That it's probably not going to happen?

Yes, because. I think the past predicts the future.

Meaning you haven't been able to save or accumulate enough money, so it's unlikely you will change in the future.

That's right.

Have you been diligent about your finances in the. I mean, here's what you wrote in your application. This was like, in the first two lines, we have spurts of trying to get on the same page, get on a budget and have a conscious spending plan. But then we get tired or busy or just forget about it. Then a month later, we're back to the usual.

Exactly.

Yep.

I've always been super meticulous about tracking the money I have. And so when we got married, I was already meticulously tracking the money I had. It rolled over into me tracking the money we had. And then often when it wasn't much, Andrea would just get anxious about it. So she would kind of step back and just be like, yeah, you do that. Because then, you know, it would alleviate her anxiety for a short period.

Okay, are you still meticulous about tracking? Okay. And does it work?

Not. It works. Okay.

When I was single, I was very diligent. I saved a lot. And then when Eric and I got married, we kind of got into a ton of debt and really struggled to pay that off. We started having kids right away, not purposefully, but we'd only been married a year when we had our first kid, so we never got on our feet financially. Eric ended up losing his job right after we got married. So it's just been super rough. Our whole marriage has been rough. And so it's hard for me to have an imagination for what life looks like when money is not an issue.

What I hear is Andrea being fearful of money, worried about money, and even envious about money. What I also notice is these are all feelings. But she and Eric haven't really taken effective action to change their situation. Remember what I. People with problems love to talk about their problems. And people who feel bad about money love to talk about how they feel bad. But very few of them are willing to take specific steps to change their financial situation. Emotions matter. Feelings are real. But your personal finances are not going to change with your feelings alone. You need automation, investments, calculations. All the things I teach in my book and my coaching program. We'll be right back after this. Let's get back to the show. You can hear Andrea and Eric going the rest of their lives feeling bad. Not enough. Can't afford it. You don't earn enough. What a dismal life. I wonder where all of this came from. That's what I started asking about next.

My parents worried about money constantly. You did not spend money ever.

Telling me two Midwestern parents were worried about money and passed that down to their daughter.

Yep.

Everybody who comes for me about Midwestern culture, money, culture. Don't. Okay, just stop. We're seeing yet another example. Okay, just a couple questions about this Midwestern upbringing. Parents didn't talk about money very much in front of you because money is for adults, not for kids. True or false?

True.

Your parents own their house. They did a few things around the house. Probably your dad did it, maybe your mom. I'm talking about, like, renovations, stuff like that. Repairs. He did it himself. He was very proud of it. True or false?

True. You have to save. You have to save, you have to save, and it's never enough.

What did they say exactly, that made you feel that?

Can I tell you something I observed?

Please.

When we would go to visit my grandparents, which is what we did once a year, that was our vacation. My mom, she had a notepad, and every time we stopped for gas and we stopped at Burger King to get a fish filet, she used coupons. And then she would take out her notepad and write down exactly how much we spent. There was always a running tab. There was no sense of freedom, like, we're just gonna go have a good time. It was kind of, like, very. It felt constrained by this, like, over responsibility, if that makes sense.

What did you take away from her? Pulling that notepad out and writing down the fish purchase.

I think I, in my young mind, thought that's how you have to do it.

When did things get tough in your family?

So my dad lost his job when I was in high school. He was a chemical engineer. He lost his job. He didn't really work again for the next decade. He ended up going back to school to be a teacher. And that didn't work out. He was the car mechanic out of our garage for a while. That didn't really work out. My mom was working. This is just a little caveat. My dad, the people that he worked for, somehow they ended up scamming him. They had reported his salary as, like, twice. Twice what it was, and they ended up scamming him out of all this money. So I remember, like, that kind of playing in the background. Like, that was the narrative of, like, scary, bad things or, you know, will happen to you with money.

So therefore, you need to be hypervigilant.

Write everything down.

Well, I'm sorry to hear about dad losing his job. And you were what, like a. You young teenager?

At the time I was 17. Self deprivation became the way I kept myself safe. So if I didn't spend the money, I somehow felt powerful and in control. If I spent the money, it was like I was suddenly vulnerable.

What does this sound like as you say it out loud? What other parts of life have you heard people talk like this? Deprivation as a virtue?

Well, besides Midwestern culture, I think a lot of religious. Yeah, I don't know what. What else other than that?

I mean, you're nailing it. Midwestern Culture, Totally. Right. I hear this all the time. Some religions, eating disorders. Listen, sometimes we do need to cut back on certain things. There's no doubt about that. If we want to save more for retirement, maybe we can't go out to eat as much. That makes perfect sense. Hey, if we've got coupons and we're going to go out to eat, okay, why not? Fine. But it can go too far. And in fact, you then redefine that self restriction as a virtue. Have you continued doing that until today, age 43?

Yep. I. I can't even go to the grocery store because I feel so anxious about spending like over a hundred dollars.

Well, you do spend over a hundred dollars because I have your csp. So this is the worst of all worlds. You feel horrible and you still do it anyway.

Yep.

So where did your mom learn to be scarce with money? Where'd she learn that from?

Oh, that was from her parents. These were my paternal grandparents.

Ah.

That we went to visit.

Got it. So you learned the scarcity from your mom, who learned it from her mom?

Yes.

How many generations do you think it goes back?

At least back three or four generations. Back to. At least back to the Great Depression.

Definitely.

Probably farther.

Of your three kids, I know you have an eighth grade son. What are the ages of the other two and what's the gender?

We have a sixth grade daughter and a third grade boy.

Okay, if I talk to your sixth grade daughter right now and I asked her, what do you feel about money today? What would she say?

This is very, very sad to me. She would say, we can't afford it.

Parents, if you don't spend time searching out your invisible scripts, interrogating your invisible scripts and working on improving your invisible scripts, you will pass along your parents invisible scripts with money, right to your kids if you're scarce with money. You're currently doing 20 unconscious things right now, today that your kids are picking up on. You're saying, we can't afford it. You're wincing whenever they bring up taking a school trip. You're rolling your eyes when they talk about another family friend's vacation. We spend a ton of time working on helping our kids have a healthy relationship with food. I want you to start developing your own healthy relationship with money and then pass those lessons on to your kids. If I asked, when does mom put herself first, what would she say?

She'd probably say, I can't think of a time that she did.

Let's fast forward. Does she put herself first.

So she would potentially follow in my Footsteps. Because I may have unwittingly communicated to her that it's selfish to put yourself first.

What do you want her to be saying and doing when she's 30 years old?

It's not selfish to enjoy your life. It's not selfish to ask for what you want. It's not selfish to invest in yourself or however you want to say, like, give yourselves the things that you want and deserve.

It's passing on these invisible scripts generationally. Yes, sometimes our parents taught us something and they did their best, but they didn't have access to the type of information you do. They certainly didn't have podcasts they could go on and all these books on Kindle. They did their best and they passed on certain messages. The difference is that you two live in an abundance of information and you actually have the ability to decide which of these messages you want to continue passing along. Some of them are very good. Some of them like that disgusting casserole you do not want to pass on. The funny thing is, you know, that you knew that casserole. You're like, oh, I've. It's never occurred to me to make that. But somehow your sixth grade daughter has absorbed the phrase, we can't afford it. She's only in sixth grade.

I hate it. I hate it so much. I, I'm, I'm embarrassed about it.

I mean, for me, I grew up single parent home, pretty poor. My mom worked two or three jobs. A lot of times when I was growing up, I don't know exactly, precisely where it came from, but I just always got the message, like, if you have it, then you, you spend it, and when you don't have it, you clamp down.

If you have it, you spend it.

And if you don't have it, then you just kind of clamp down and you eat ramen noodles for the month or something like that.

Would you describe your family as poor?

Yeah, growing up. And I kind of had a job out of college that was a little bit feast or famine. And when I had good months, I lived well.

What'd you do?

Oh, yeah. I mean, I would go out with my friends, I would eat, you know, wherever I wanted. I like nice things. So, like, you know, I'd buy a new pair of shoes or expensive pair of jeans, or when I had it, I just, I would spend it. And then once I didn't have it, I was like, I was okay with that too, because I just knew those months, you know, I was eating ramen that month and I kind of like ramen.

Are you okay to do feast or famine now?

No, I'm not.

Are you seeing Andrea's face, by the way?

No, I wasn't watching Andrea.

What were you just doing when I asked that question?

Raising my eyebrows. Because I do think that Eric has a very high tolerance, I think an abnormally high tolerance for financial insecurity.

Would you agree, Eric?

Yeah, absolutely. I just can't foresee a scenario where we would wind up in a. A famine where, you know, we just wouldn't have money to pay the bills or something like that. I. I'm just not worried about that. I mean, no doubt we've had lots of times when things are tight, and we've had seasons where we've lived on credit cards, but we've never missed a. A payment.

A minimum payment.

Yeah. Yeah.

Are you okay with that here?

I mean, there have been seasons where that was what we could do. And as long as we were doing that, I had a sense, you know what? It's going to be all right. This kind of tight time is not going to last forever. Like, we'll get through this. It'll be fine.

How did you know when you were paying the minimums on your credit cards that it was going to be okay?

It just always has been, you know, I've always gotten through those times, you know, and I. I'm a person of faith, so I. I have a trust. Hopefully not a trust I want to, like, take advantage of, but I have a trust that I think. I think God's going to provide for us. Honestly, my story is I. I feel like he has. That's not that kind of faith or trust or just confidence in the future is something I don't want to take advantage of. So I think I have to participate. I have to, like, do the work. I have to have a goal. I have to, you know, take advantage of opportunities. I'll always be able to find something and figure it out. That's one of the things I've learned in our relationship. Not to say, although it's constantly in my mind.

Figure it out.

Yeah, we'll figure it out. It'll be fine.

Okay, here we have it. Andrea is a worrier, and Eric is a believer. Andrea loves to worry. It's become a habit to her. Even something that comforts her. Eric, on the other hand, waves away the worries. It'll be fine. We'll be okay. These are common phrases, especially from men who see their role as a provider or someone to take away their partner's worries. It's also common to Hear from people who grew up poor. You'll notice, for example, his comparison to famine and feast and when he says, if you have money, spend it. And also his description of, we've had times where we made minimum payments, but we were fine. So not only do we have two people with vastly different views on money, they've never really talked about what their views are, and they've never come up with a vision of their life that fits them together. What I really needed right now was for Andrea to get specific about what she wants, and I wanted to see if she could ever talk about money without worrying about it.

In contrast with him, I sound like the biggest buzzkill in the whole world. Because Eric's like, we're gonna figure it out. Everything's gonna be okay. We're gonna work through this. I continually say, no, that's not good enough, and we need to do more. And Eric at times will just be, like, so irritated with me because I keep. I keep putting these kind of expectations on him that he's just like, oh, oh, like he doesn't. He doesn't want that.

Do you know what you would want right now?

What I would say, and I've said this to Eric before, is that I would like him to get another job. Not. Not just with the one he hasn't get another one, but an additional one, because I feel like he has the time and the energy to do it. I just want to see him making what I personally consider the same amount of effort that I'm making. I would like to have $10,000 a year to go on trips.

Yeah. Where's the vacation that's coming to your mind?

The Alaskan cruise.

Beautiful. What do you see?

I see us, you know, on the deck of a. A huge ship. And we're just looking at this, like, crazy beautiful landscape with, you know, bears and moose and all kinds of, you know, wildlife.

Cool. I love that.

I would like to have a 401k and be on track by the time I'm 67. I think you're supposed to have 10 times your current income. I would want to be on track towards that. I would want to have, like, a three month emergency fund. Three to six month emergency fund. I would like guilt free for Eric and I to each have fun money that we can spend every month. Right now, we just don't have that.

Okay, how much?

200 bucks.

200 bucks a month? All right, fine. What else?

I would like to be able to help my children. $5,000 a year per child.

So that's $15,000 a year for four years. So 60k. What if they want to go to grad school?

I never considered that. Actually, I would really like to be able to help other people pay off their debt.

Hold on, hold on a second. I love that, but don't you two have a considerable amount of debt right now?

Yes, we do. I was thinking ideal scenario, like, I would want to have enough money that not only am I personally out of debt, but that I could help other people get there, too.

Why don't we just focus on ourselves for right now, huh?

So I told you we've been in a lot of debt over the years, and I heard this was probably five years ago, that there was a. A church or an intentional community where they paid off each other's debts. So they didn't. They didn't necessarily, like, just pay off their own debt. They, like, helped each other to be debt free. Something about that stuck.

I bet it. What about it stuck with you feeling.

Like you have somebody on your side, somebody on your team, that you're not all alone, that you're not drowning. Somebody will come, come alongside of you and help you.

That was a very, very perceptive answer. Have you both ever been debt free?

I was before I was married to Eric.

Eric, how about you?

Um, not that I. I mean, no, I. I remember I played tennis in college and I got my first credit card.

What'd you get? Bank of America.

Yes, it was America. And, you know, I. We would go on these big tournaments, especially for spring break, and I would, you know, rack. I think I had a thousand dollar limit. It was huge.

Yeah.

And just rack it up. So, I mean, since college, I probably always had some debt.

It's kind of interesting, right? You've learned to live with debt, Eric. Like, it's like someone learning to live with some pain in their leg. After a while, they're just like, oh, yeah, this life. I can't remember what life was like before it. And you know, your wife, who's been in debt for like 16 years, but before then, has this window of time, Right, Andrea, where there was no debt. And even though you were still worried about money, you had no debt. Does it almost seem like paradise? You know, those first few years of not having debt?

Yeah. I can barely remember what it even feels like. I don't want to carry balances on our credit cards. I just. I don't want to be in debt anymore.

Okay, what do you want to do more? Do you want to be debt free or do you want to pay? Help Your kids with college.

Oh, geez. That feels impossible to answer. I think if I. If you held a gun to my head, I would probably say I'd rather be debt free.

It's okay. If your kids listen to this, they're not going to say my mom hates me, Trust me. Is that, is that the worry you have? Like, if I say that I want to prioritize being debt free, it means that I'm not a good mom.

I think it just means that I would be prioritizing myself. I typically prioritize what's best for others, especially my family. I try to think about. Well, I try to think about, like, what's best for the family. It works for me a little bit, like for my ego to know that I can kind of anticipate their needs and I can meet their needs and that they don't have to, they don't have to struggle.

All right, Eric, what do you want? We heard a lot of what Andrea would want. What about you? You ever thought about it?

Yeah, I mean, I just want to.

Not worry about it for anyone keeping track at home. Here's what Andrea wants. She wants Eric to get a second job and to put in more effort. She wants $10,000 a year to go on trips. A 401k at 10 times the current income. A three month emergency fund, a guilt free spending account of $200 a month each. A college fund of $5,000 a year times three kids is $15,000 a year, times four years, $60,000. She wants to be debt free. She wants to help other people with their debt. Now, I gotta say, I do love the specificity. And you can see what happens when you spend decades worrying about money. It narrows your field of vision to negative feelings about money. But you literally don't spend 10 minutes working on a plan to see what's possible. In a way, worrying becomes a protective cocoon against reality. It's easier to worry about what might happen than to actually look at what is going to happen. Incidentally, what does Eric want? He just wants to not worry about it. Andrea wants an Alaskan cruise. That's exciting. What do you want?

I want to travel. I want to go to Europe and travel and see cathedrals and vineyards. And that's one of the things I haven't ever done, is traveled internationally much. And I want to do that. I want us to be able to take a vacation to the beach and not have to argue over the hundred dollars extra for a nicer Airbnb. I'd love to do that. At least once a year, if not twice.

Okay, great. Anything about debt in there? Anything about savings, anything like that? If. No, that's okay. Just tell me.

Yeah, yeah, for sure. I mean, specifically in our relationship and our family. And honestly, when I turned 40, was probably the first time I ever felt anxiety about money because I realized just one of those moments, you're like, oh, we don't have any retirement. We haven't been able to think forward at all. And so since 40, that's. I read a half a dozen books on finance and all those kinds of things and tried to figure it out. And we just didn't have the money at the time to. To go forward with some of that. But I think that's why debt didn't pop up in the list I made, because I feel like, oh, we're on our way with that. I'm not worried about that, but maybe that's a pattern.

I think so.

I don't foresee ever retiring. I love what I do, and so I could see myself to some extent, doing it for forever. But when our kids are out of the house, I want us to be able to, like, travel together, and I want us to be able to do what we want. It revolves around freedom. I think a lot of the things I would say specifically revolve around the freedom to go and do.

And out of curiosity, Eric, how would you travel when you're both empty nesters, if, as you put it, you still have your job because you want to keep working for a long time, how would you do that?

I do like coaching, Spiritual coaching, Spiritual direction for pastors, nonprofit leaders, ministry leaders. So it's really flexible work. Wherever I am from, Perfect.

All right, so you can do that lifestyle wise. Okay, great. And Andrea, what about you? Would you be able to travel, you know, in the next few years or later?

Not with what I'm doing right now. I'm a director of communications for an Anglican diocese. My goal in my life is to become a novelist. So if I ever was able to realize that dream, then, yes, I would be able to travel. I'd be able to write from anywhere.

What about if not, I guess just.

Take my three weeks of vacation a year and we would. We would go somewhere together.

Would you be okay with that?

I'd be okay with that.

There's a little town on the coast of Italy that a friend of mine, he traveled the world for a year and he lived in, I think it's Positano, Italy, for a month and a half. And I just remember seeing those Pictures and being like, I'm gonna go there one day and get a little villa on the side of a mountain, drink wine, just see the sights. I could imagine being on a little patio with Andrea as we look over the, you know, the coast and having a glass of wine and having fun and laughing.

I love that. I love Andrew's reaction to you. Big smile over there. All right. You two ever talk like this about money?

We never get around to the dreaming, vision, casting as much. We just kind of talk about the hard stuff.

We never get around to the good stuff. We just stay stuck on the bad stuff.

I think we used to talk about the good stuff even when we had way, way more debt than we do now. I think we would. We would dream a little then.

So what happened?

I think we just have gotten a little worn down.

I think that's a really honest description of living in America today. For a lot of people, you struggle to make it with expensive housing and healthcare prices, and after years of doing this, just feel worn down. And this is one reason that I think everyone should experience at least one moment of awe every year. Now it could be a beautiful sunset in a national park, could be a glamorous hotel with incredible food. But we need a way to shake us out of our day to day and to inspire us to think bigger. Let's get into the numbers. I'm going to do a deep dive this week and you can follow along visually on YouTube. Let's let me give you the quick numbers right here. Assets, $689,000. Investments, $49,000. Savings, $3,600. Debt, $610,000. That includes a mortgage, student loans at 2.4%, and IRS taxes owed, which are like 2 to 4%. Interest rate. Their net worth is $132,000. Their combined income is $147,000. And if we drill down further, we find some interesting signs. Their fixed costs are 63%. Housing is 28%. Monthly loan payments, $569. Car payments are $0. Very nice. Family mental health is $580, which includes marriage counseling and children's counseling. Love that. Now let's hear some of the details beneath these numbers. $132,000. Net worth in your early 40s. How do you feel about that, Andrea?

I don't feel great about it.

Is there a number that you would feel great about?

5 to 700,000. I would feel good about that.

Think so.

I don't know. That seems like so out of.

That's an honest answer. I Don't know.

Thank you.

Okay, that's an honest answer. Eric, what do you feel about that number?

I feel pretty good about it. We've recently paid off a car. We've paid off our last credit card. So our only debt left is some IRS we have left to pay for from the last couple of years. And my school loans. Now it's like, all right, how do we figure out how to begin to really save and invest and move forward, like being future minded?

What's the answer to that?

Yeah, I mean, I think the answer is learning from you. And this is one of those things. I know it. And we haven't implemented it is just automating that. We just. And we. Andrew and I talked about that. We really need to just say, okay, we're putting this somewhere. We're not thinking about it. We're just. It's coming out right away every month.

Okay. The interesting question is, why haven't you done it? I'm not judging, but I think this is the crux of it, Right? If you know it, why haven't you done it?

I think the reason I haven't done that is things have been tight enough, especially for the last seven years or so, that every month I feel like I'm like, all right, well, we had. Do we have money to put into, you know, our investment account? Do we have money? So I feel like I'm always nervous to automate it because then we might.

It's 84 months. 84 months. It's been tight. I don't know about that. Do you believe that story?

I think my actions would say yes, but my mind knows better. Things were a little bleak in our life. I had started a. A business, I planted a church, and that failed. And so we did that for like three and a half, four years. It was just a pretty hard season of life. And that was reflected financially as well. And I think that's one of the reasons I was trying to learn about so many things because things were so hard. I'm like, all right, if I can just get some knowledge. But it just didn't feel like we had the resources to implement a lot of that.

I can't point fingers at him because I'm also like 100% in the black hole of debt. But I. I do. I think you've really hit on something that is holding us back. We cannot get past it. We just are so stuck.

Why?

I think we're stuck looking at our bank account and seeing, hey, we're making good money, but it's not Enough to cover all of the. Like, there's so many things that we have to do, especially with our kids. It's not enough. It doesn't stretch that far. So it's super hard for us to even think, like, beyond that. I don't think we know how to do that.

Let me put a pin in that and we'll come back to it because I want to see where the rest of the spending is. Okay. Yeah. All right. Your investments are. Well, this is a simple box. Hey, Eric, why don't you read this number to me on your investments? What's that number there?

No.

Thanks. Yeah. Andrea, care to read the number here on investments?

000.

So it's just $0 going to investments.

I will sporadically, occasionally put a hundred bucks in our investment account. Or.

What is that, sporadic?

I worked for Apple for two years. I quit that job maybe a year ago or so. And so for those years, we did have regular investment coming through.

And during that time, did your investments grow?

Yeah, it was great.

All right. I think we have an area of opportunity here. We could probably work on that again. I want to remind you, investments are not just for the sake of it. This is where true wealth is created. True wealth grows, compounds. Talking about safety. You're talking about knowing if you have enough. Talking about being able to take a trip without looking at the price of drinks. That's this. Investments. Okay. All right, next up, we got savings. Andrea, what do we got here?

Savings. $400.

400Amonth, which is 3%. Okay. And just by the way, I like how you broke this down. You got 150 bucks a month on vacations, 50 bucks a month on gifts, and 200 bucks a month on personal goals and travel. Is that accurate? Or you kind of just like, fill that in for this csp?

I would say that that's our goal. So we try to put that away, but we don't always hit that goal.

Would it be more accurate to say this is zero.

Not zero?

I think it's close to zero.

Let me just step in right here. I don't care if you're 97 years old, if you're alive and breathing oxygen and you wonder, why don't I have more saved? This is the answer. If you try to save money sporadically, you will never win. It will be like trying to teach your kids to read sporadically. Unless you're planning to win the lottery or ipo, you cannot grow any substantial amount of savings or true wealth without making it automatic. This single decision right here is worth Hundreds of thousands of dollars. It's the difference between taking a nice tour with your friends in your 70s versus sitting around watching Vanderpump Rules in the dark while eating a stale bag of Doritos for the rest of your life. Please, if you're going to make one decision in life, do not make it. Should I get these kibbles and bits for my dog? Should I buy this soup spoon from Target because it has such a cool design? It just came out. I love it. No, make it to set up your automatic savings and investments. That single decision alone will guarantee that you have more money than you ever thought possible. All right. Zero. Which leaves in your guilt free spending 37% or $4,337 a month on guilt free spending.

Our son taking violin lessons, our daughter doing cheer camp and things like that. We have a budget for each of us for spending money, like going out for lunches and things like that. We have a family entertainment budget we have in there, and that's kind of where all that gets eaten up.

Does your budget map to $4,337 a month or even in the ballpark?

No. So the other thing is literally just last month, we paid off our last credit card and we paid off my car. We had been putting $1,000 a month on that credit card. The car we were putting, that was a $350 car payment. And so some of that is pretty new as of this year.

What are you going to do with all that extra money? Did you talk about, hey, our car payment is about to end.

We talked about the debt snowball. We're just going to roll it onto the next debt.

Did you?

That's not reflected in this document, but that is what we have talked about.

Wait, talking about versus done.

That's what we're going to do.

Why didn't you do it? The cars paid off.

Well, this is the month we would do it.

How did you guys decide that you wanted to pay a lot more money towards your low interest debt?

Yeah, I mean, our mortgage. We got in before it spikes. Our mortgage is like 4.3, I think.

And like, there's no discussion about, hey, we're going to have hundreds of dollars a month free. Maybe we should save it or invest. Was just, let's roll it over and pay off more debt.

Yeah.

Where do you think that came from?

A bad place.

Tell me. It's really important for us to know where that came from, because it will come up again. It'll come up for the rest of your lives. I Want you to understand where that came from.

I will. I will own that. I just don't want to have debt. I don't want to have debt. So I think it's probably 95% me.

Why?

Because I have a lot of shame around how having debt.

Okay, what is that shame?

That I'm a bad person.

Wow.

If I have debt, if you're not good with money, you're a bad person. I know.

It's.

It's there, though.

Where'd that come from? Parents, religion, Midwestern culture.

My parents.

And is that true? If you have debt, you're a bad person?

No.

How come it was so easy for you to say no?

Well, because I have known that in like, my. My mental. My mental world, I haven't been able to move it down to my emotional world.

And I've told you that as well. The debt doesn't mean we are bad people. It might reflect some bad decisions, but it's not even like this stamp that, like, we're just horrible people or decision makers even. Andrew and I have kind of like jostled back and forth. I'm like, I don't care if I die with that stuff. I'm put the minimum on it. Like, you know, if we can ever pay it off, great. But my thought has been to try to really tackle all the debt but college and mortgage. But I hadn't really thought about the interest rate so much. It's just really nice not having. You know, there is a psychological component of not having any. What feels like consumer debt.

Well, here's the thing. When you say, I'm going to die with it, you may say that and you may be half joking about it, but Andrea doesn't receive it as a joke. What does she receive it as?

Like a weight?

Yes. Yes, it is a weight. Well, it's not just a weight. She thinks that having debt is morally bad. So she's like, you're making me a worse person.

I think I. I default to money because that's what my parents did for me. My parents were super emotionally unavailable, but they always provided for me financially.

What the hell? How come? That's just. This just came up right now. Your parents were emotionally unavailable, so they gave you money. And now you've become very fixated on money, money, money, but only fixated on enough to worry about it, but not to make a plan about it.

I mean, the other thing, Andrea, you wanted to do was put your raise, which is around $350 a month, way toward college fund.

So what if we didn't just save it. What if we invested it?

We would have to do something different. Or can you take college money out of a Roth ira?

Well, you can. And you can also. You can always take your principal out after having it open for a few years. The real question, you have $350 extra every single month. Where do you best want it to go?

I want it to go into a college fund.

Okay, tell me why. Tell me with numbers.

I don't really have any logical answer for that.

Well, we need to have it. We can't make multi thousand dollar decisions based on just a feeling. So tell me. Let's come up with the numbers.

Okay. If my kids go to an in state school and they get scholarships, it costs 10 to $15,000 a year. I would expect them to work and contribute. I would want to. The way I came up with the $5,000 per kid is it definitely felt like, okay, well, you still have to figure it out. But we're going to give you a little safety net. It's going to be like a launching pad so you're not starting from scratch.

That's not numbers. That's a feeling.

I don't know how to use numbers instead of feelings. Can you help me?

$350 a month. First of all, how much will that turn into when your kids go to college?

Jack will be going to college in four years, so that's 48 months. So that's $16,800.

Isn't that way more than you need for him? How much do you want to give each kid?

I wanted to give each of them five grand.

Okay, didn't you just finish off everything right there?

And that doesn't even account for any interest that might be earned.

Right. Okay, so what have you learned already?

I've already learned that if you do the numbers, it kind of eradicates all of the crazy feelings you have about it because you just see right there. Yeah, that's the answer.

They're not crazy. Your feelings are not crazy. You're not crazy. Your feelings are real. But let me just tell you what would have happened if you had only used your feelings. Even if you were setting money for the kids, you still would have argued, we need to save more, we need to save more. Why are we going this trip? Are we ordering drinks? We could save for the kids more and you would have saved and saved and saved. And then when it came time, you would have given more without any regard for numbers. And you would have been even more worried afterwards. What are we going to do? Eric, go get a better job. I don't know what we're going to do. So your feelings are not crazy. Your feelings are real, but they're incomplete. And that's why, in just 25 seconds, we discovered if indeed you truly want to give your kids $5,000 each, we can knock that out right now. But I suspect it's not really about 5,000.

I don't think it's about 5,000 either.

What is it about?

I think it's about me being afraid that my kids will grow up, look back on their lives and say, why didn't mom and dad help us more? Oh, it's because they were broke, they were bad with money, they were broke, they couldn't help us. That just feels like, so crushing to me for my kids to feel like I. I wasn't able to provide for them in the way that they needed me to.

How do you know that they would think that? Because Eric's family didn't provide for him. And he doesn't. He never once said, oh, my family was broke and they were terrible.

You don't think that about your family, Eric?

I mean, we have difficulties in other areas, but, no, I. I've never thought that. I've never resented my.