- [Nick] We felt stressed, overwhelmed.
We were making a decent income
but not knowing, kind of, where our money was going month to month.
There was that overwhelming feeling
of this is how it's gonna be forever.
Back in 2014, we had about close to $100,000
in debt, and I was laid off from my job.
- That was a scary feeling.
And only having a little bit of savings
was a terrible feeling.
- So we made the decision to sell our house,
take that money, pay off a credit card,
pay off a car, pay off a school loan.
And then we were left
with about $40, $38,000 worth of debt.
- Once we started paying things off,
then we could see a light at the end of the tunnel.
But it took a little bit to get there.
At first, it was very overwhelming.
Then we made a first big payment.
The first one was like $6 or $7,000.
Then once that was gone, then the momentum built.
You start rolling through the debt snowball.
And the more you get through it,
then it's like, "Okay, we can do this."
- And then it was exciting.
And then it wasn't as overwhelming, and anxiety was calm
at that point, and we were like,
"Okay, we can do this.
This is short term. Then it's gonna be over."
Once we started Baby Step 3, it got a little easier
because we finally felt like we were working
to actually save something.
So now knowing, like, okay, we're gonna save
as much as possible so that if we ever get
in this situation again, we don't have to worry.
I mean, I get a little obsessive with the saving
because it's security, and security feels good.
- Yeah, it's a lot of sacrifice,
but if you kind of step back and look at,
okay, at the end of this, it's gonna be a much bigger payoff
than whatever it was we were gonna buy
or do at the time.
- I feel like now I'm, like, actually making money
and I'm more motivated and I wanna make more,
have a little bit of a hunger because I don't feel
as tied down to loans.
It just feels better.
It's a better feeling.
- And just feeling that security of, hey, if something happens,
we're gonna be okay.
And it really changes your perspective
on working and on life in general.
- Well, Nick and Amanda, thanks for being here.
- Thank you!
- Yeah, thanks for sharing your story.
I love it.
You guys started on the Baby Steps,
started your money journey.
So tell me what caused you guys to begin this whole process.
- So I think, you know, before we had started
Financial Peace University, we were stressed out every month.
Not knowing where our money was going,
you know, get to the end of the month
and scraping money together to see,
are we gonna be able to pay our mortgage,
are we gonna be able to, you know, buy food?
And it was just that overwhelming stress every month.
It's like, okay, we have to do something different
in our lives if we're gonna break the cycle of this.
So that's kind of why we had started
Financial Peace University and started on the journey.
- Yeah.
So you guys were living a pretty, like,
quote, unquote normal life, you would say?
'Cause I feel like that's how most people function
with their money.
- [Nick] Yes.
- But you got to the point that it's like,
the stress and just the mundane task of like,
"We're stuck in this process,"
caused you to change.
- Yeah.
And it was kind of looking at, you know,
the incoming and outgoing every month.
It was everything you make was continuously going out
and you were left with nothing at the end of the month.
Working so hard, going to your job every day,
and it's like, there has to be more than this.
- Totally.
So what kind of got y'all, what introduced you
to Financial Peace University?
- I was checking my email on the way home
from driving to Illinois, driving back here to Tennessee,
and something popped up in my email
about Financial Peace University at our local church,
and, you know, I knew kind of, I knew about Dave Ramsey
and the Baby Steps and everything,
but we hadn't actually, you know, tried to live by it.
It was kind of like, yeah, I understand it.
Then I was like, "Hey, do you wanna try
and do you wanna do this?"
And she's like . . .
- Yes. Yes, I do.
(laughing)
- Absolutely, let's try it, what do we have to lose?
- Exactly.
- There's nothing to lose.
It can't get much worse than kind of
what we're doing right now.
- I married into a lot of debt with him,
so for me, I had no emotional attachment to that debt,
which was frustrating.
And I think I was probably a little bit resentful.
(laughing)
- A little bit. - A lot, okay.
And it was just, I was exhausted.
I was sick of going to work, working so hard to pay
his school loans.
I mean, it was our school loans, but it did not
feel like that to me.
- Did you ever get to a place then,
'cause I do hear that a lot with spouses of like,
okay, one spouse brings in a ton more debt than the other.
How did you navigate that?
Or how did you overcome that?
Do you feel like you got in a better spot
or were you just always frustrated
through all of Baby Step 2?
What was it like for you?
- It was hard because I came in with zero debt.
I came in with no debt and a savings account.
So then I come into, you know, $80, $90,000
in school loans, and that was very overwhelming.
So I had to, we had to work through a lot of those issues
of, "I'm sick of working to pay off your school loans.
Like, let's kick it in gear."
I felt like I was kicking it more in gear
and he was just kind of like, you know?
And he's a dreamer, and I'm the nerd,
so the fact that the dreamer wanted to learn about money,
I was like, sign up now, do not change your mind.
Yes, we're doing it.
- Go forward, go forward.
And it was so worth it.
- Awesome. - Absolutely.
Yeah, it very much kept us accountable
to have to go, you know, you have to leave your house,
you have to go to this class.
You know, you watch the, watch Dave talk.
You know, you go through the conversation pieces
in the book and, you know, you talk to others
who are going through a very similar experience,
some worse, some not as bad.
But it kind of makes you feel like, okay, we're normal.
But we're all in this together to try and break the cycle.
So it gives you that accountability person
to bounce it off of, to give you encouragement
when you get a little down on things.
So it was totally worth it.
- [Rachel] Yeah, that's awesome.
- Loved the experience.
- So good.
Okay, if you guys are curious about it,
make sure to click the link in the show notes,
'cause we have all the information about
Financial Peace University.
Make sure to check that out.
Okay, so you guys are on Baby Step 3,
which is big.
That's a big deal.
We talk a lot about Baby Step 2 on this show,
and like, you know, the idea of getting out of debt,
but you guys have transitioned to Baby Step 3,
so tell me about the difference between Baby Steps 2
and Baby Steps 3 for you guys.
- You know, paying off a debt in Baby Step 2,
you know, we got to the end of it,
and for me, I was expecting like, this big bang,
this like, parade and like, you know, the band going off
and like, "Hey, you paid your debt off!"
For me, it was very kind of anticlimactic.
It's like, okay, well, let's keep going.
Next.
You know, but the, I would say the excitement of then
you know, instead of paying other people your money,
you get to keep your own money.
It's a crazy thought, you know, you keep your own money,
put it in the bank, see it grow,
and the sense of security.
It's extremely motivating to be in that position.
- Makes you wanna work more and work harder
'cause it's a different why.
It's much more motivating.
- So I'm curious for you, Amanda, 'cause he said,
like there wasn't like confetti and like this big
"Hoorah!" after you paid off the debt.
He was like, okay, Baby Step 3 now.
Let's keep going.
Did you feel a sense of relief?
Did you feel any more emotion?
- I felt the confetti.
- You felt the confetti?
- Press enter, I was like, yes, I'm done with
those student loans, and I can move on
and stop being mad about it.
I can move on now.
You own your degree, you own that knowledge.
Let's move on.
- And so would you say it's as motivating as Baby Step 2?
'Cause sometimes people say Baby Step 3 is a little bit
hard to get through 'cause you're just like,
ugh, just saving money, saving money.
But you guys feel energized by it?
- I think it's more motivating.
- Okay, that's good.
- Yeah, I believe it's more motivating.
'Cause you're seeing that.
- You really feel like you're actually winning,
I guess, in Baby Step 3.
It's like, Baby Step 2 is, it'll wear you down.
- You're paying for your past.
- Yeah.
- I mean, it's like, yeah, throwing money backwards.
- Yeah, so Baby Step 3 is just a nice breath
of fresh air.
- Yes.
- Saving money, it's a different feeling.
- Oh, I love it.
So, you guys, I mean, you really have changed your whole
philosophy when it comes to money.
From not just paying off debt,
but now actually saving money.
And you actually have a positive net worth,
which is unlike a lot of people in America, right?
They don't have savings.
So what's your why?
What keeps you doing this day in and day out?
What keeps you on Baby Step 3?
What's gonna cause you to do Baby Step 4, 5 and 6?
- I want my son to grow up and see a positive,
positive spending and saving
and to be different and to go to college
with no debt and come out with no debt
and just have a fresh look on life
and not be worried about $80,000 in school loans.
We wanna live.
We wanna travel. We wanna live our life.
And I don't wanna be bogged down with Sallie Mae,
so that's my why.
- That's good.
- Yeah, I agree.
You know, I wanna, you know, I see a lot of people working
when they're older and can't retire.
And I think that's a huge,
that scares me a lot, the thought of that,
not being able to retire and, you know,
having to work as opposed to wanting to work
and enjoy, you know, our lives together as we get older.
So that's kind of my big thing,
is I want that, wanna look out for my future
and our future and be able to retire
and enjoy our lives.
- So great.
- That's what it's all about.
- I love it, love it.
So, how much debt was paid off in total?
- $38,000.
- In seven months.
And then, how much is saved now?
- At the end of this month,
I think we're gonna be close to $12,000.
- Mmm hmm, yes.
- Okay, so a lot of the audience watching
is on Baby Step 2.
They're paying off debt, but there's a percentage of them
in Baby Step 3.
So those in Baby Step 3 that may not be as motivated
as you guys are in Baby Step 3,
what advice would you give them?
- Just keep going.
I mean, to see your savings account grow,
I mean, it's such a secure feeling
knowing that if something happens, we're covered.
- Yeah.
- And if you've never gone through,
so I guess for us, we've gone through
me losing my job and know how that feels
to not have that savings account there,
and I hope people, I hope you don't have to experience that,
but from somebody who has
and us that have, it's an awful,
it's an awful experience if you don't have savings.
So just know that, you know, that is your security.
That's if something happens, that's what it's there for.
- Yep, that's your Plan B.
- So stay with it.
- So good.
Well, you guys are awesome.
Seriously, thank you so much.
- Thank you.
- For coming on, sharing your story.
It's so motivating seeing people do this stuff day in
and day out, and that's you guys,
so keep rockin' it.
You're doing so great, so great.