By coinnews 
00:00 Speaker A
Americans plan to spend a record breaking $226.6 billion on vacations this summer. That’s according to a new survey from Alliance partners. That is up a little more than 2% compared to last year. But if you’re looking to save money, our next guest says a staycation might be the right move for you. Here with more is George Campbell, co-host of the Ramsey Show and host of the George Campbell YouTube channel, as part of our savings series brought to you by Synchrony. George, summer spending tends to creep up on all of us. What are some ways that individuals and families can stay on budget without missing out on all the fun?
01:08 George Campbell
Well, it starts before summer. It starts with planning instead of just impulse and fomo and going, “We want to do all the things. Just put it on credit cards and buy now pay later and we’ll worry about it later.” So the thing is you got to sit down and make a plan for what’s actually going to happen and then stick to that budget. And so the app that I use for that is called every dollar to just make a plan before the month begins, and my wife and I align on what’s happening this following month. And then we stick to that. And if we can’t afford it, we just don’t do it that month. It’s called patience and delayed gratification.
02:08 Speaker A
And for those who tend to overspend during the summer months, and I’m mostly talking about myself here, what habits or strategies can help reign things in early, especially as we approach Memorial Day weekend, many of us, it’s unofficial start of summer.
02:35 George Campbell
Well, a lot of it comes down to the marketing. That’s when the marketing really ramps up and we see so many ads on our face and as we scroll social media. And everything is so tempting because they make it seem like it’s a once-in-a-lifetime deal. And so again, you’ve got a budget ahead of time, make a plan for it, and know that all this marketing is coming your way and go, “Nope, we said we’re spending money over here, not over here. I don’t care how much is going on sale. Never spend just to save.” And if you do that with intentionality, you can actually enjoy the spending you do because it’s not impulsive. There’s no remorse or regret at the end of it, just intentionality.
03:33 Speaker A
In terms of how you’re spending your money, how do you view credit cards versus cash? Are there certain advantages when it comes to savings?
03:50 George Campbell
Absolutely. You know, I know some of the previous guests have mentioned rewards cards. I don’t have a single credit card to my name and that has allowed me to keep guard rails on my spending because I physically can’t spend money I don’t have when I only use a debit card, and especially when I use cash. When you hand over some crisp dollar bills at the store, you feel pain. And what’s happened over time is that spending has become frictionless. That’s Apple Pay’s tagline, cashless made effortless. They want it to be so easy to spend to where you don’t even feel it anymore. And I think we need to add some friction back in so that we stop feeling so broke. And part of that is because of the frictionless spending. So, create the guard rails, use a debit card, stick to a budget, and you’ll feel so much better and less out of control.
05:00 Speaker A
And let’s talk about groceries. That’s been a big budget sucker these days. What’s your advice when it comes to saving a little bit there?
05:12 George Campbell
Intentionality is what it comes down to. And this might mean meal planning ahead of time and deciding what I’m going to go into the grocery store to get. And I love the online grocery shopping now where you can add to cart and see the total before you walk in. Before you see that end cap with your favorite snack on it and impulsively grab it before you check out, just order it online and do the grocery pickup, especially if it’s free and there’s no added fees. That’s a great way to do it. And then change your grocery store. You know, I went to an Aldi the other day, and I was shocked at how much I could get for that $100 bill that I handed over. So you got to change your grocery store, shop generic brand instead of name brand, and make some sacrifices, and avoid the end caps and snack aisles. That’s where people get into trouble.
06:14 Speaker A
I know I get into trouble in those aisles as well, George. Now, you do have a list of seven baby steps when it comes to getting out of debt, building your wealth. Can you break down some of those for us?
06:32 George Campbell
Absolutely. Baby step one is a starter emergency fund of $1,000 because we found that four in 10 Americans have zero in savings. And what that does, it causes them to go back into debt anytime there’s an ankle biter emergency. Once you have a thousand bucks, move on to baby step two, pay off all of your consumer debt using the debt snowball method. That’s smallest to largest balance, ignore the interest rates, try to get some momentum and roll that payment into the next one and into the next one. Once you’re debt free, we’re going to go back to that emergency fund and baby step three and get a fully funded emergency fund of three to six months of expenses. This is your never go into debt again insurance plan because you become the bank now. You don’t need a lender to cover that emergency. And it’s a great place to be debt free with an emergency fund, amazing financial foundation. Now ready to build for the future instead of paying for the past, and baby step four, where we invest 15% of our household income into retirement accounts that are tax advantaged. That’s really going to set up people for wealth. And once you have your own mask on with retirement, you can help set up your kids for college in baby step five, putting some money away into a 529 plan or an education savings account. And then focus on getting the mortgage paid off in baby step six. Once you remove one of your largest fixed expenses, you can really begin to build wealth, spend more, upgrade your life the right way, and give more. And that leads to baby step seven, which is just continue to build wealth and give and leave a legacy. And that’s really a wonderful place to be. It’s a luxury for most Americans to even think about that, but that’s the proven plan. It’s the same one I followed to go from negative net worth to millionaire in 10 years.
08:46 Speaker A
Some small steps that can certainly go a long way, George Campbell. Thank you so much for your time.
08:55 George Campbell
Thank you.