Episode 227 - Paying Off Debt, Like this Couple Did, Works!
Are you feeling overwhelmed by financial stress, struggling to stay on top of bills, or drowning in debt? You are not alone. In a recent interview on the Debt Free Dad Podcast, hosts Brad Nelson welcomed special guests Rachel and Josh, who shared their inspiring journey to financial success. Just a few months ago, Rachel and Josh found themselves in a challenging situation, much like many of us, juggling debt, bills, and the uncertainty of financial stability.
Joining Roots: A Turning Point
The turning point for Rachel and Josh came when they decided to seek help and joined Roots, a program dedicated to empowering individuals to take control of their finances. Despite initial doubts about seeking financial assistance, Rachel and Josh realized the importance of making a change for their family's future.
Overcoming Financial Obstacles
Rachel and Josh candidly shared their upbringing, where financial literacy was lacking, leading to poor money management habits as adults. Their journey together as a couple revealed a lack of proper budgeting, zero savings, and living beyond their means. However, their decision to tackle these challenges head-on with the support of our Roots of Personal Finance Program marked a significant shift in their financial trajectory.
Setting Goals and Achieving Success
Since joining Roots in November of 2023, Rachel and Josh have made remarkable progress. In just three to four months, they have saved and paid off over $16,000 in debt, demonstrating the incredible impact of dedication and commitment to financial planning.
Lessons Learned and Habits Formed
Through daily financial tracking, creating a budget, and making necessary adjustments, Rachel and Josh identified areas of overspending and implemented changes. By prioritizing needs over wants, avoiding emotional spending, and embracing accountability, they were able to make substantial progress towards their financial goals.
The Power of Support and Accountability
One of the key factors in Rachel and Josh's success was the support and accountability provided by the Roots program. By sharing their journey with others, learning from peers' successes and struggles, and staying motivated by the progress of fellow members, they found the encouragement and inspiration needed to stay on course.
Looking Towards the Future
With a newfound sense of financial freedom and stability, Rachel and Josh no have aspirations of homeownership and setting a positive example for their children. Their commitment to building a secure financial future and breaking free from the cycle of debt highlights the transformative potential of taking proactive steps towards financial well-being.
A Message of Encouragement
In closing, Rachel and Josh encourage others facing similar financial challenges to take that first step towards change. By investing time and effort into your financial well-being, seeking support when needed, and staying committed to your goals, you too can experience the transformative power of financial freedom.
Episode Transcript:
brad: [00:00:00] So are you finding yourself stressed, hopeless, worried, and restricted when it comes to your finances? Maybe you are struggling to stay on top of bills, chip away at debt, or establish a safety net in your savings.
Now if this resonates with you, know that you're in good company, and it actually mirrors how Rachel and Josh felt just a few short months ago before joining Roots. Now, fast forward to today and things have massively improved. Rachel and Josh are my special guests here today on the show, and they are ready to reveal the strategies that empowered them to save and pay off over 18, 000 in debt just in the last three or four months.
Stay tuned for their story. 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 [00:01:00] listening for inspirational interviews, tips, tricks, and practical advice to gain financial freedom.
Hey guys, welcome to the show. My name is Brad Nelson, founder of Debt Free Dad. I saved and paid off about 45, 000 in debt and I've been debt free now for 11 plus years outside of my mortgage. Also been fortunate enough to help thousands of people over the years save and pay off tens of millions of dollars with the work that we do here at Debt Free Dad.
And as I mentioned in the intro, I'm really excited to have Rachel and Josh join us here today. On the podcast, but hey, after listening to this episode, If you want to take your finances a step further, we've got some awesome resources that we're going to be sharing Coming up a little bit later on the show that you're not going to want to miss
Rachel and Josh, uh, welcome to the podcast today.
Can you guys take us back, you know, to when you guys, you know, maybe we're raised with money. And how you were raised with money and maybe how that affected you guys as adults, as you guys kind of got into the world, how did, how did that all work with you?
I mean, I know like a lot of the people that we work with and even in my own story, you [00:02:00] know, a lot of the things that I learned as a kid really affected the way I managed my money as I became a young adult. So I'm just curious, like what you guys learned as kids and then how that affected you and the way you guys manage your money up until, uh, say you, you've joined us here in Roots.
Rachel & Josh: A lot of toys, uh, cars, boats. Um, the cabin up north, the latest and greatest, this and that. Um, but there was a lot of debt associated with that. My parents made a good living, but, um, the debt was very heavy. Um, we didn't really have much for discussions on. We didn't, we had some savings as kids, but we weren't really taught the importance of it.
We didn't see that side, um, that financial literacy just, it wasn't there. Um, and so that's been something [00:03:00] that I've had to kind of figure out on my own. Um, I would say, yeah, there wasn't a lot of money talks as kids. Um, like my parents. Didn't discuss it to us kids. Um, finding out later on in life, it was pretty tight for them.
Um, and that's what kind of ended up resulting in their separating. Um, but all we really were taught was, you know, save money so you can, you know, turn 16, buy a car. Um, but like the importance of staying, uh, dead or, um, don't take credit cards out, um, wasn't there as
brad: So then you guys obviously got married, got together eight years ago, married four. So how did the finances work for you guys when you guys got together and started going through all of this? Was that a good thing? Was that a rough thing? Or can you share a little bit about your journey there?
Rachel & Josh: Neither of us were managing our money properly. [00:04:00] Didn't ever have a budget. Um, we had zero savings. We were living way outside of our means, um, and missing payments.
brad: What prompted you guys to look at maybe joining Roots? Because, you know, for a lot of people, you know, I mean, who pays to get help with their finances? I mean, that's kind of a weird thing for a lot of people, right? But you guys decided to. So, like, what, what prompted you guys? Like, what made you guys make the decision to say, like, this is something we want to do?
Rachel & Josh: So we, we've been, uh, kind of working over the years to develop better habits, um, and control our spending, but nothing was really working. And then we had. Two children within two years and the medical bills, um, racked up. And then we came to the point of me returning to work after the second child and having to pay daycare for two kids.
And we were [00:05:00] just like, what are we going to do? How are we going to be able to afford this? And I had tried so hard. We both tried so hard to try and. Figure out how we can set up a budget and make this manageable. And we just couldn't do it. We couldn't figure it out. Um, but I had been scrolling through Tik TOK actually, and I came across some of your videos and then I, uh, started listening to the podcast and encouraged Josh to listen to the podcast, um, and we just really decided we needed to buckle down and.
Um, make, make things happen, uh, for not only us, but for our children as well. We really want to give them the better influence than we had as children. Um, and set them up for success
brad: I love that. That's one of the main reasons why I got out of debt. So I can, I can really relate to that and wanting to do better [00:06:00] for, for my kids and be a better example. Um, looking at the tick tock in the podcast, like what were some things that really stuck out to you guys? Maybe made some light bulbs go off.
Rachel & Josh: The, the tips and tricks that, um, are shared throughout the podcasts and the TikTok videos, that's all stuff that like in my soul, I already know. Like we already know, you know, Those things, but we didn't have the accountability. Um, and that's what we really needed.
brad: You guys joined roots in, in November of 2023. And as we're recording this, we're in early March of 2024. So we're about three or four months since then. And, uh, what have you guys been able to save and pay off since starting?
Rachel & Josh: Uh, we have saved and paid off 18, 772.
brad: What do you, what do you guys think when you see that number? Is it believable or what?
Rachel & Josh: Um, it's a little bit more believable now, but when we were in, [00:07:00] uh, like month two, so December, we were, you know, not, not seeing the numbers, um, but when we really finally. Added everything up and we're like, holy smokes. Um, we could pay off 10, save and pay off 10, 000 within the first 90 days. That would be incredible.
Um, and that really sparked us to, uh, kick it into high gear and. Really put the work in. Um, so we set that goal, we crushed that goal and, um, then we set a new goal.
So two normal people with normal jobs, nothing, nothing outright, you know, not, we're not talking to high level doctors or anything like that. So if you're listening to this, this again is a podcast for normal people making normal incomes. And that's who we have here on this show. And so I just, and I'm sure our listeners are probably thinking like, what did Rachel and Josh do to do that?
Because I'm a normal person. I have a normal job and I'm feeling like them. Like I was trying everything and nothing was seeming to work. So. What did work for you [00:08:00] guys over the last three or four months to help you get to this point? You think?
Um, I think the biggest thing for us was sitting down and looking at our, um, our financials every single day. Um, spending that 10, 15 minutes going over the budget, making sure that we have everything accounted for, um, everything is going as it should. And if it's not, then we make adjustments where adjustments need to be made.
But really tracking that, um, and having a plan for our money has been the biggest thing for us. I would say when we did that very first budget and like saw where all of our money was going. It was kind of eye opening and where we like, you know, had to cut back on some things or just sacrifice certain things,
brad: So I'm going to dig a little bit there. You guys, what, what did you find you were spending money on?
Rachel & Josh: Eating, eating out or just. Certain entertainment, going out with friends, um, [00:09:00] added up over, over the time and buying, going and getting, or buying our wants and what we didn't need. Impulse buying, emotional spending, those were, those were really big factors in, uh, the amount of debt that we had. Yeah.
brad: budgeting and obviously, you know, budgeting is a big part of what we do inside roots and helping our members learn how to really kind of master those skills. Um, What things have you learned over the last few months that have really helped you? Like instead of what you were doing before because you mentioned what you were doing before it wasn't really working So was there a difference in in the way that we offered it and how we taught it?
That's really kind of helped you and what's kind of clicked for you or or can you speak a little bit about that?
Rachel & Josh: Yeah, so we got the, um, the debt freedom planner and that was very helpful in, um, making sure that we can, um, have all of those categories accounted [00:10:00] for. Um, and then kind of just giving a visual setup. Um, I had reviewed so many different budget spreadsheets and I'm like, these all suck. Um, I don't know how to do this.
I can't. The other thing was that I was putting so much pressure on to having those numbers perfect from the get go. Um, and then, so letting go of that and, you know, focusing on, okay, let's do this in pencil. Um, we can erase, so we can. Move things around if we need to, it'll take time to get things where we need them to be, but just get it down on paper,
brad: now you guys mentioned obviously with doing a budget you mentioned you made some sacrifices and things but Have you guys also still been able to do a little bit and live life still while getting out of debt? Have you did you have to cut everything out or what's been your experience with that?
You
Rachel & Josh: No, we haven't cut everything out. We still budget for going out to eat, um, for doing fun things with the family, um, taking the kids [00:11:00] to do special activities, go to the children's museum, et cetera. Um, we, we definitely still do that. We do a lot less of the going out, um, with friends and going out to the bars and things like that.
Um, naturally as new parents, that's not as easy as it used to be, which is extremely beneficial for us in this, in this journey that we're on. Um, but we do still go out and have fun
brad: So talk a little bit about how this is, like from, from a relationship standpoint, how has this helped your family have, have you guys communicated better, been more on the same page with things, less stress? Like how has that all worked with this?
[00:12:00] Silence.
Rachel & Josh: and really. Sitting down every night together and talking about these things and planning for these expenses instead of them popping up and, uh, creating stressful, uh, conversations and things like that.
Um, our communication has improved significantly. Our relationship is, is so much stronger because of that.
brad: So you mentioned you guys have some, you know, you've been setting some good goals and you've been crushing those. And so long term wise, you know, we mentioned and talk a lot about. You know, wire purpose on the show a lot, you know, obviously getting yourself out of financial, you know, stress and debt and, and freeing up cashflow and building a good financial future, uh, you know, you want to create some good goals of why do you want to do this work?
So tell me guys, like, what, what is it in your future that you guys are striving for and what you guys want for your family?
Rachel & Josh: We really want to save up and buy a [00:13:00] house. Um, we, we've been renting. This whole time. And, um, we're, we're in a good place where we are, but we want our own house. Uh, we want to buy a little bit of land with that, uh, so we can. Pursue our outdoor ventures and whatnot. Um, the other big thing for us is our kids.
We want to set them up for success. We want to be good examples, um, good influences and teach them how to not make the same mistakes that we did.
brad: And then from a feeling standpoint, I know, you know, you mentioned that. You know, before you started, it's, you know, stressful and not so much hope and things just never seem to work out. Like you've only been doing this three or four months. Are you feeling a lot different and a lot better right now?
Rachel & Josh: Yeah. Oh yeah, definitely. Um, we don't have to worry about. Um, because that was a huge, huge concern is [00:14:00] where's this daycare money going to come from? How are we going to find that? Um, the stress level has gone down so significantly.
brad: The reason why I love that you guys were willing to come on, because it's hard to try to get people to come on that have only been doing this for a few months, because we, we fall for this, you know, I'm not there yet, or I'm not good enough. And I think, I love that you guys were willing to come on and share a little bit, because it shows people like the massive difference that This stuff can make in just a short period of time.
And you guys are our proof of that. I'm just, I'm really proud of you guys for putting in the work and you guys are going to reap the benefits. It's going to be awesome to see just where you're going to be a year from now. Even.
Rachel & Josh: And we, we definitely aren't perfect. Um, this, we've still got a lot to do, a long ways to go, but A lot of, uh, habits to really, um, set in stone and a lot of changes to make. We've got a lot of work to do.
brad: Can you share a little bit about your experience? You mentioned, you know, when you were listening to the podcast, you're listening to the Tik TOK stuff that we do in the messages and a lot of it, you already kind of knew, but what you thought you were [00:15:00] missing was really the support and accountability, which is really ultimately what roots is, is support and accountability.
How has that played into this and made a big difference? Like what have you felt has been the biggest benefits of that support accountability to help you out where you are today? So,
Rachel & Josh: I think really seeing other people's, um, both their wins and their struggles. Um, and knowing that we're not alone in what we're doing. I know that the, um, the topic of finance is not, it's not talked about a lot. Um, it's not something that people are comfortable sharing with their friends and, um, acquaintances.
But, uh, having those stories from other people and using their. Their wins as inspiration, um, has been huge for us.
brad: Have you guys talked to anybody about the progress that you've made with anyone outside of Roots or any family, friends, coworkers? Have [00:16:00] you mentioned anything about what you've been doing?
Rachel & Josh: We've been a little bit more quiet about it. Um, we've talked to our, uh, close immediate family and they've been very supportive. Um, I, I've discussed it with a few friends that. Um, are comfortable with the financial conversations and they've all been really supportive. Um, I know my mom, she is really proud of us, but she's also like, how, how in the world did you do that?
How, how have you done that? It's just, it seems so unbelievable. And I can really kind of relate to her mindset there because a few years back we were at a housewarming party and there was a couple there that was, uh, talking about how they had, uh, Uh, paid off over 40, 000 in debt in the past year. And we're just like, that's impossible.
Like, good for you. I'm proud of you, but that's never going to be us. Um, just now be where we are today and see that we are working towards that is [00:17:00] just
brad: Yeah. That's the whole broken lenses, uh, you know, where you're, where you're looking at your finances with some broken lenses and some worn out tools. And it's impossible to see that it can get fixed, but now you guys have a lot of the stuff that you need. And look at where you are today. It's just, it's sometimes it's just one decision, doing things differently and it can make a huge difference.
And you guys are proof of that.
So my last question for you guys today is, is if you had to go back and, and. Um, we got listeners who are just like you guys prior to you joining and you know, they're on the fence, whether it's, whether it's joining roots or just getting started with some of the stuff that we talk about on the podcast.
Like, what would you say to them to encourage them to at least just get started?
Rachel & Josh: No, I would say just do it, just do it because worth it. Um, you have to put the work in though. If you're not going to put the work in, it's not going to work. Um, but if you're willing to make those sacrifices and those, uh, habit changes and, uh, follow the program, [00:18:00] it will work. And. You will feel so much better because of
brad: I love it.
Rachel & Josh: Yeah, just jump in with both feet. Um, I want to picture where we are today, the, when we first started. Um, it's just been a complete transformation and it would do a lot of good for a lot of people in this world for their financial future.
brad: Yeah, love it, you guys. Seriously, this is why we do what we do, is to help out families just like us, just like you guys, and make your lives easier. It's, uh, It's so awesome to see that the work that we're doing here has helped you guys so much. And honestly, you guys need to, you know, it's, it's all in your right.
Rachel, you said you have to be willing to put in the hard work and that's where you got to be ready to come in and say, we're willing to make some changes and do that. And you guys have done that. And that's where the results really come from. \?
Thank you so much for being on the show today. I appreciate you guys sharing your journey [00:19:00] with us.
Rachel & Josh: Yeah, absolutely. Thanks, Brad.
