0:06

Summer is officially upon us. Your

0:08

budgeting BFF Rachel is over here thinking

0:10

about all the ways that people are

0:12

going to overspend. So yeah, financial mistakes

0:15

that you should be careful to avoid in

0:17

the coming weeks and months. Hey

0:22

guys, welcome to this episode of the

0:24

Rachel Cruze Show podcast. I'm so glad that

0:26

you're here. So in this

0:28

episode, we'll chat about the biggest mistakes people

0:30

make when changing jobs. Then

0:32

I'll talk through four financial mistakes you should

0:35

avoid making this summer. But

0:37

first, let's talk about the sneaky ways

0:39

stores trick you into spending more money.

0:41

Take a listen. So

0:44

there is a lot of division in the world

0:46

today, but I think one thing we can all

0:48

agree on is that we tend to overspend at

0:50

targets. Now I see the memes all the time

0:52

of people confessing that the target

0:54

checkout line really got them today.

0:57

Listen, I 100% relate, but Target

0:59

isn't the only store where people

1:01

tend to overspend. In

1:03

fact, there are intentional marketing tactics

1:05

behind every single store. If

1:08

you've ever stepped foot in one, you are

1:10

part of it, you guys. You experience it

1:12

and may not even realize it. So

1:14

today I'm sharing five of the most

1:16

common tricks stores pull in in order

1:18

to have you spend more money. And

1:21

number five on the list gets me the

1:23

most fired up. So make sure to stick around

1:25

for my hot take. All right,

1:27

the first strategy that stores use to get

1:30

customers to spend more money actually feels like

1:32

they're doing you a favor at first. You

1:34

think, oh, wow, Nordstrom, you're really rooting for

1:36

me to give me the best deal.

1:39

So nice of them. But

1:41

listen, I hate to break it to you,

1:44

but the rewards that programs are not doing

1:46

you the favor you think they are. So

1:49

whether it's a $20 birthday

1:51

coupon or get 10% off when you

1:53

spend more than $150, their

1:55

goal is to get you to spend more. That

1:59

is it. It's what they focus on. It is not

2:01

so you can save more. It is really

2:03

how can we get them to spend more money? And

2:06

listen, if you get free shipping because you

2:08

needed that certain amount of clothes, then

2:10

that's great, good for you. But for

2:12

me, buyer's remorse really can kick in if

2:14

I really didn't need something, but I bought

2:16

it because it seemed like a good deal.

2:18

So don't fall for it, you guys. All

2:21

right, the second strategy businesses use to get

2:23

you to spend more money is about merchandising.

2:25

So merchandising is just a

2:27

fancy word for the way stores are

2:29

set up. And it's from the placement

2:31

of items on the shelves to the

2:33

layout of the actual store. This is

2:35

one of the most strategic parts of

2:38

your shopping experience. So for example, at

2:40

the grocery store, they keep their rotisserie chicken

2:43

in the back for a reason. They want you

2:45

to walk through all the other

2:47

aisles when you're in a pinch

2:49

for dinnertime because you're more likely to add

2:51

some additional things to your grocery list. Or

2:54

let's say you're at the snack aisle

2:56

at Walmart and you notice a little

2:58

bit more of an expensive name brand

3:00

product, like right there, eye level, where

3:03

all the generic brands are down

3:05

below or up high, and they're like camouflage,

3:07

you can't even see them. And did you

3:09

know that this trick goes all the way back to London in

3:11

the early 1900s? Department stores

3:13

that started keeping their perfume and their

3:15

cosmetics out from behind the

3:18

counter to lure in the ladies who were

3:20

walking the streets so they

3:22

could sample the products for themselves. So

3:24

this is a common practice because it

3:26

is so effective to getting people to

3:28

buy. And speaking of this, that

3:30

brings me to the third thing that stores do

3:32

to make more money, and that's the try before

3:34

you buy. You know, you think

3:36

about this for Amazon, for instance, because it seems

3:39

like a great idea until you forget that you

3:41

haven't actually paid for your item once you have

3:43

it. So basically, if you're shopping for a

3:45

pair of shoes or a new sweater and you're not 100% sure,

3:49

if you'll like it on yourself or if it's

3:51

gonna fit right, then you can order it without

3:54

paying for it. And if you keep

3:56

it for a certain amount of time after its

3:58

delivery, then they're gonna charge you. you. So

4:01

listen, not to be dramatic, but it feels like

4:03

another form of debt or something. It's like, oh

4:05

my gosh, I get something. I don't pay for

4:07

it in full upfront. And then I pay

4:09

for it later. You know, it's kind of like a

4:11

car or a couch or tank top from Amazon. Cause

4:14

you're kind of lying to yourself like I have the money for

4:16

it and it's in the account. Like

4:18

I feel like I do, but do you really is

4:20

the question. And I don't know about you, but my

4:23

life, there's so many things going on that I'm like,

4:25

I can't keep up with purchases that have deadlines

4:27

to them. And I'm like, Oh, I have to

4:29

do this or return this or this or this or

4:31

this. It's just too much. So listen, just buy

4:33

the item, track your purchase. And when your money

4:35

leaves, make sure to track it on your budget. And

4:37

if you don't like it, then take

4:40

it back. But always, always

4:42

remember, if you can't afford to buy

4:44

the item until after it's delivered, then

4:46

you can't afford it. Period. All right.

4:48

The fourth thing that stores do to make

4:50

more money has to do with timing and

4:52

the frequency of sales. Now,

4:54

you know, hobby lobby, I mean

4:56

a great store, but they're a

4:59

great example of this because the

5:01

awesome thing about them is that

5:03

they always have sales going on.

5:06

And the tricky thing is that everything is always

5:08

on sale. So they're constantly altering week to week.

5:10

So you kind of have to pay attention to

5:12

what the current deal is. The

5:14

anthropology sale room is another great

5:17

example of this. They almost always

5:19

have an additional 40% off sale item

5:22

signs out on the weekend. And if you

5:24

see something you love and you catch it

5:26

on a non-sales day, then it might be

5:28

worth keeping your eye out until it rotates

5:30

back in on the sale. And if you're

5:32

willing to do a little extra waiting every

5:34

now and then, patience really can

5:36

save you some serious cash. All

5:39

right. We've made it to number five, which again is the one

5:41

that I'm like, I hate this

5:43

one. And the fifth thing companies do to have

5:45

you spend more money happens mostly

5:48

online. And it's something

5:50

that marketers call reduce reducing the

5:52

friction. So it's kind of the

5:54

opposite of number two, where they want you to

5:57

walk all around the store to get your

5:59

chicken. This is kind of

6:01

like the opposite. It's this idea that

6:03

like you can get it really quick

6:05

regardless if you have the money or

6:07

not So think about plerna or after

6:09

pay like all these companies. They are

6:11

not doing you a favor It is

6:13

a form of debt and retailers know

6:16

this though because people spend more money

6:18

on these services Because again

6:20

these services are created because companies realize that

6:22

people end up Clicking out

6:24

of their online shopping window and they

6:26

leave things in the cart I do

6:28

this and they're like no no no,

6:31

you know, maybe it's because they don't have enough money and they're

6:33

saying oh, it's okay You just have to do four easy payments.

6:35

That's all you got to do just agree with that and you're

6:37

fine And listen, you know

6:39

me the debt thing. It's not my jam.

6:41

I don't like it So car payments student

6:43

loan payments even after pay

6:45

and those have been normalized in our

6:48

culture to say Oh, I can afford

6:50

the payments But honestly what people

6:52

do that women with money they say can I actually

6:54

afford the item? Because the

6:56

reality is is that this is stealing

6:59

hundreds of dollars from people's budgets Because

7:01

for a lot of these companies if you

7:03

don't pay on time there's fees there's interest

7:05

all of it And if you've ever gotten

7:08

stuck in that paycheck to paycheck cycle, it

7:10

is so stressful and it is defeating Okay

7:12

so that way of spending with

7:15

money when it comes to debt is never going to

7:17

bring you true financial piece and You're

7:19

never gonna have the margin you need to

7:21

build long-term wealth. So Do

7:24

you feel a little stressed out right now? Sorry

7:26

about that But you know It's kind of

7:28

good because I want you to spend your

7:30

hard-earned money the best to your ability and

7:32

the best way To make sure

7:34

your income is going as far as possible is

7:37

to track your spending and to be on a

7:39

budget and every dollar It's one of

7:41

the best ways to do it. So go to

7:43

every dollar comm today build your first budget Because

7:45

I'm telling you it is gonna help you when

7:47

it comes to all this shopping experience You don't

7:49

know the amount of money you have to spend

7:51

in a category and regardless of what a store

7:53

is doing to try To get you to spend

7:55

more you will have the power Hey

8:03

guys, it's Rachel Cruz here to

8:05

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8:07

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8:09

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8:46

So whenever a job change comes around,

8:49

there's almost always a financial shift that

8:51

happens to. Whether you're

8:53

getting promoted to a new position or you're

8:55

moving companies altogether, typically the goal is for

8:57

your salary to go up. But I have

9:00

some news for you, that even if

9:02

that is the case, you're still at risk for

9:04

losing money if you forget a

9:06

few of these crucial steps that are commonly

9:08

overlooked. So today I'm sharing with you the

9:10

three biggest mistakes people make when it comes

9:12

to changing jobs. And be

9:14

sure to stick around for the whole list

9:17

so that you can avoid these mishaps and

9:19

continue to build wealth as you grow professionally.

9:22

The first job hopping error people

9:24

make has to do with everyone's

9:26

favorite thing, insurance

9:28

coverage. Uh-huh. Just

9:31

kidding. I know everybody's like, oh my gosh. Because listen, it's confusing.

9:33

It's a pain. It can

9:35

be expensive. But it's even more

9:37

of a pain and actually can

9:40

be dangerous if you allow your

9:42

coverage that you have to have

9:44

gaps in between jobs. Receiving

9:46

an insurance plan or benefits through

9:49

work is something that varies a

9:51

lot, company, My company

9:53

and some employers allow you to

9:55

be eligible for health insurance coverage

9:57

immediately after Your first day on the job. Wait

10:00

thirty days or ninety days or even

10:02

a full year. But there are a

10:04

few things as you can do to

10:06

make sure that are handling that says

10:08

widely. So if you are on the

10:11

job Heinz I recommend asking these questions

10:13

During the hiring process is a lot

10:15

of corporate companies will schedule a specific

10:17

pay and benefits chat with Hr once

10:19

you start negotiating out the details said.

10:21

If you're and more of a creative

10:23

industry or you're interviewing this a small

10:25

business be sure to get clarity on

10:28

your coverage timeline and it's there going.

10:30

To be a gap between at your

10:32

loss of and your new role. Short

10:34

term health insurance also call that temporary

10:36

or limited term health insurance is designed

10:39

to cover health emergencies for a short

10:41

period and this is usually thirty to

10:43

ninety days. but it is a solid

10:45

option of her I'm between jobs. Cobra

10:48

is another option is a federal

10:50

act that allows you to continue

10:52

insurance coverage for a period of

10:55

time after voluntary or involuntary job

10:57

loss. Snakes are to apply within

10:59

sixty days of your previous coverage

11:01

ending and adjust your budget accordingly

11:03

because the costs will go up.

11:06

The second financial error that people make

11:08

when it comes to changing jobs for

11:10

getting to transfer over their retirement investing.

11:13

Now. Just like health insurance benefits, the

11:15

timeline of your eligibility for retirement

11:18

benefits and Four O One K

11:20

matches can vary depending on your

11:22

company policy. But as an example,

11:24

let's say you're contributing fifteen percent

11:26

of your paycheck into retirement and

11:28

your former company offered a five

11:30

percent Matt See your contributions when

11:32

you switch the new job easier

11:34

for option number one facet of

11:37

Four O One K. That's the

11:39

worst option and you'll have to

11:41

pay so much you guys and

11:43

state. And Federal Income Taxes. I mean

11:45

there's so much says you're under fifty

11:47

nine and a half to don't do

11:49

it because there's a withdrawal penalty. It's

11:52

and percentages. talk rates and don't It

11:54

asks him number to do nothing and

11:56

leave your money and your old four

11:58

O one K C you can do

12:00

this. We're really happy with your investments

12:02

and the fees are low but that

12:05

really is never the case. Usually this

12:07

means ought to deal with a higher

12:09

fees and it's going cut your investment

12:11

growth down and you're settling for limited

12:13

investment options from year old plan to

12:16

third, a circle that money over to

12:18

a new employers plans. So this has

12:20

some benefits like simplifying your investments by

12:22

putting them all in one place. But

12:24

there are a lot of rules and

12:26

restrictions for rolling money over to a

12:29

new employers plan. Which raises

12:31

number for roll all the signs into

12:33

an Ira and most of the time

12:35

this is your best option because it

12:37

gives you the most control over your

12:39

investments. Plus you have thousands of mutual

12:41

funds to choose from and you can

12:44

work with investment professional who will walk

12:46

with you through the process as a

12:48

rolling that money over and I highly

12:50

recommend connecting with a smart as sir

12:52

pro in your area. Have you ever

12:54

need investments? health? Check that out! Or

12:57

it the third at job hopping error

12:59

people make actually have something to do

13:01

with their jobs or benefits or investment

13:04

options as went a little bit personal.

13:06

kind of a dutch sex but that

13:08

is remember that you go with you.

13:11

When. It comes to your money, your

13:13

job, your marriage, your relationship he

13:15

swears and came home and o

13:17

sea bed sometimes your the problem

13:19

Now I said out with love

13:21

But no amount of four o

13:23

one K, math seeing or dental

13:25

insurance is going to change If

13:27

you don't set your heart or

13:29

if you're constantly chasing after a

13:31

new job every single year to

13:33

serve, Think of the things and

13:35

be satisfied. or fitness, Paycheck or

13:37

it only my coworkers like me

13:39

here in our does all. Of this

13:41

you guys. Check yourself and know

13:44

what am I doing. What does this look

13:46

like? Because I will say if there is

13:48

conflict everywhere you go. There.

13:51

May be something going on the other

13:53

hims his own. This guy was at

13:55

every bus I have. Litter inspire me

13:57

and all this magnitude are much. More.

14:00

People told you that and different

14:02

companies and difference. Maybe

14:04

as a chance or something going on a

14:07

new right? So guess I might seem to

14:09

have an attitude problem. but if there are

14:11

things that are consistently frustrating you at every

14:13

job your at or you're looking to the

14:15

so yourself in every job and it's just

14:18

not coming. Maybe everything is still not working

14:20

out exactly what you thought because there needs

14:22

to be some inventory on you. You.

14:25

Go with you are you guys? If you

14:27

are job hopping good luck to you member

14:29

with I find this episode because they things

14:32

are really really important. Stay to make sure

14:34

that all these gaps the covered in his

14:36

you have a great opportunity and the teachers.

14:44

Are you guys are no investing? To be

14:46

really confusing, There's so much information out there

14:48

and have you ever wondered? How

14:50

much should I invest? And where is my

14:52

four o one K set up? And.

14:54

A that's going to be rude sees

14:57

my retirement dream or those questions or

14:59

author. You are not alone and having

15:01

a solid investment plans are confident and

15:03

will help you make the right. This

15:05

isn't that I want to tell you

15:08

that a tonight virtual event of coming

15:10

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15:12

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15:14

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15:16

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15:19

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15:21

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15:23

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15:25

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15:27

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15:30

powerful tools for wealth building. So you

15:32

need to be doing this if you

15:34

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15:36

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15:38

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15:41

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15:43

it's today at Ramsey's loosens.com/and best with

15:45

confidence. Summer

15:48

is officially upon as a while most of

15:50

our focus on the sunshine and beautiful trees.

15:52

In the time of school your budgeting Bff

15:54

rate soul is over years and Uma all

15:57

the way that people are going to overspend.

15:59

So yeah, Whether it's a cute to

16:01

core from as a target dollars section

16:03

or a new wardrobe for the warmer

16:05

weather you know we just all know

16:08

that our budgets chains month to month

16:10

and these days for lumpy blow their

16:12

budget seem to be a little bit

16:14

tighter. Saturday I miss Air with You

16:16

for fun in some mistakes that used

16:19

to be careful to avoid and the

16:21

coming weeks and months and the last

16:23

item on this list really flipped the

16:25

script by the first finance a mistake

16:27

as overpaying for vacations and threat. I

16:30

say this all the time but

16:32

we just sit. it's be reminded

16:34

that social media should not dictate

16:36

your financial choices. K Instagram is

16:39

not reality. It may look like

16:41

everyone you know. It's going to

16:43

a boozy beach resorts or maybe

16:45

off to Europe. Or. Whatever it

16:47

is, But. You have no

16:49

idea their financial situation of hey, maybe

16:51

they're in law's generously paid for them

16:54

to. Have. A ticket in first class and

16:56

that's what they're so you on. Instagram or

16:58

maybe you. Say went into

17:00

decks with the trap or maybe they

17:02

have saved and are spending their hard

17:05

earned money. You just don't know because

17:07

the point is is it you don't

17:09

defend thousands of dollars though on a

17:11

trip every single year to make amazing

17:14

memorable summer memory By the second mistake

17:16

that people make when summer rolls around

17:18

as by expensive new items instead of

17:21

trusting them or something sales. so hear

17:23

me out if you needed socks like

17:25

it does it system is that scare,

17:27

get it? But if you're suddenly spiraling.

17:30

Because every kid has outgrown the rain

17:32

jacket and their bike helmet and all

17:34

the suffered the same time to Sundance

17:36

prioritize purchases and maybe even looked to

17:38

say hey, where is on sale right

17:40

now or go to the thrift store

17:42

is Maybe you're desperate to host the

17:44

great get together with friends that you

17:46

don't have to break the bank, you

17:48

guys? Okay, so looking out for sales?

17:50

So so T and again you don't

17:52

have to resort to overspending on some

17:54

suits the week before all the kids

17:56

go to summer camp described cheap option

17:58

at Target. cold day or

18:01

shop at a local consignment sale for

18:03

those cute family beach photo outfits like

18:05

whatever it is get creative but be wise

18:08

which brings me to the third financial

18:11

mistake that people are about to make

18:13

and that is dropping a lot of

18:15

cash on experiences for the kids. So

18:18

we Millennials usually are all about

18:21

doing different things in our

18:23

parents did growing up right and one thing

18:25

that they may have done right is letting

18:27

kids figure out for themselves

18:30

what to do when they're bored and it

18:32

seems like now we're packing every little day with

18:34

every little thing and activity and all this stuff

18:37

but seriously one of the best things that you can

18:39

do is have your kids just be independent for a

18:41

little bit right so whether it's your church your kids

18:44

swim team a summer sports league the

18:46

more involved you are in your community

18:48

the more challenging it can be to

18:50

say no to some of these things

18:52

but as a parent it's your job

18:54

to set limits and to be responsible

18:56

and this goes to your financial commitments

18:58

as well and so every day does not

19:01

have to be a fancy at Pinterest craft day

19:03

all right let them go out in the backyard

19:05

get creative and that's okay so

19:07

take that pressure off the

19:10

fourth financial mistake people are about to

19:12

make is not making their older kids

19:14

get a job they listen I have

19:16

not raised teenagers but can I just

19:18

tell you the summer job it's kind

19:21

of like part of childhood

19:23

so teaching responsibility and work

19:25

ethic all of this it serves your

19:27

kids so so well it is a

19:29

great way for them to earn their

19:31

own money to meet people you know

19:33

outside their social circles so whether it's

19:35

babysitting or doing chick-fil-a they hire at

19:37

15 years old

19:39

I have friends that worked at Sonic you know

19:42

whatever the thing is let them

19:44

have a little bit of that experience when it

19:46

comes to having a job outside the house and

19:48

summer is usually a great way to do that

19:50

maybe it's just for a month or two but

19:53

again this idea of teaching your kids about money

19:55

I think it's huge when they're little the chores

19:57

and the commissions the great way for to

20:00

do that. But if you have older kids, you

20:02

know, it's just one of those things to think

20:04

about. Now again, I don't have teenagers. I have

20:06

little kids, like I said, and that was one

20:08

reason why I wrote my new kids book. I'm

20:10

glad for where I am. And it's all about

20:12

gratitude. It's a really great book when it comes

20:14

to gratitude and teaching our kids. Oh,

20:16

summer. Gotta love it. Just make sure you

20:18

guys that you're being wise with your money

20:20

when it comes to the summer months. All

20:22

right. Well, thanks so much for listening. It's

20:24

this episode of the podcast. Make sure to

20:26

leave a review. Your feedback has helped us

20:29

out so much and subscribe to the

20:31

podcast, share it with your friends, with your

20:33

family, because man spreading the word

20:35

about this stuff is so important because we

20:37

want everybody to be wise with months. All

20:40

right, you guys, happy summer. And remember to

20:43

take control of your money and create

20:45

a life you love.