Should You Cancel Whole Life Insurance? + How to Budget Irregular Income | 610

0:00He was paying like 29 % interest on a$30 ,000 credit card. 28%, 29 % interest on those while he's quote unquote making 10 % rate of return on his whole life insurance policy. Do you see where you're still in the negative? Do you see that you're not winning this game that you're in? Come to find out his brother told him he was going to do all this stuff with his money that he never did 10 years ago. He even told him like, I forgot to move your money to do what I said it was going to do. And it never happened. They pulled their money from the whole life insurance policy. 20, I think they got$28 ,000 of it.

0:35They paid almost one of the cards off and brought that balance down to just a couple thousand. Do you make good money but have nothing to show for it? Are you tired of living paycheck to paycheck? Do you have big dreams for your financial future? Do you want to get debt free, but you don't want to live on beans and rice? Or you don't want to give up those pumpkin spice lattes? If you don't already know how to budget or if you're using credit cards to get through the month. If you want to seem like you have your finances all together or you're not on the same engage with your spouse when it comes to finances.

1:04We know what you're doing probably isn't working, but guess what? You're in the right place. We're Shaina and Vanessa. We're best friends, business partners, and master financial coaches trained by Dave Ramsey. We've been in business since 2019, helping hundreds of amazing people like you create budgets, get out of debt, stop living paycheck to paycheck, and know exactly what to do with their money. In this podcast, we'll share with you everything we know plus everything we're working on with our clients so that you have the best chance at reaching your financial goals. We want to help you take the guesswork out of your budget, improve your marriages, and even bring your kids in on the conversation.

1:39We can help you no matter where you're at, whether you're the single mom who's never had$500 in her savings account or the millionaire who's paid off four real estate mortgages. And we're not going to shy away from the tough love. We'll tell you what you need to hear and encourage you at the same time. This is the Financial Coaching for Women podcast. I want to know how many of you guys have purchased whole life or any type of insurance policies through family because I just had a recent family yes through like a brother or an uncle or not or definitely a brother or a sibling or somebody definitely also a brother yes just things like that okay so let me tell you guys I mean you've heard it so many times in the past I know mixing business with family can be really hard.

2:27When this client first joined us, I think it was last month, they listed out all of their bills. They told me what they had. They had whole life insurance plus term insurance. And when we got done talking what they wanted to talk about, I wanted to take a moment to talk about their whole life insurance policy. I said, tell me about this. What do you have in it? How long have you been doing it? I asked a ton of questions. Come to find out it It was through her husband's brother, so her brother-in-law. And I explained how term works and how whole works. And I just asked them to really dive deeper, ask questions, pick them off the phone, just speak to him.

3:00And I told them my thoughts and my opinions, but I really wanted them to make their own decision. I really wanted them to come to the conclusion on their own. And so a lot of people sell whole life insurance policies because it's like a savings account, literally. And they, most people, and you'll hear this, Dave Ramsey talks about this all the time, They make the most commission off of whole life insurance policies, the people that are selling them. So, yes, that's the one they push. Okay? They want you to buy whole life insurance. They're making a lot of money. Not only are you, quote, unquote, they're telling you that your account is going to be making money over time and interest.

3:30But if that's what you're making, think of what the commission that the person who sold it to made. And now think about how much the business is making who has the policy itself. Okay? It's like a whole domino effect. Anyways, they spoke to him. he told him like the brother told my client's husband that don't ever speak to me again Vanessa the coach I was I didn't know what I was talking about like it was shame I like very negative now I remember this yes okay it's very negative about what I was telling him and basically what I was doing was I was having him call his brother out on everything come to find out his brother told him he was going to do all this stuff with his money that he never did 10 years ago Never happened.

4:10So his money did not make the money that he was supposed to make. It was in like the wrong account or whatever it was. So finally, my client's husband said, we're done. We're not doing business with you anymore. Please pull everything. And so they were supposedly making or going to make about 10 % rate of return on this money in the account. Now, it was supposed to, like I said, have been making this for years. Again, whole life insurance policy is not an investment. It is not a savings account. is not what it's supposed to be used for. You can do that separately. He was also paying like 29 % interest on a$30 ,000 credit card.

4:48That's just one credit card that they had. Another one had a 28%, I believe, and that was another 20 or 30 ,000. So they're paying monthly on two massive credit cards, and that's not all the debt they have. That's just two of those. 28%, 29 % interest on those while he's quote unquote making 10 % rate of return on his whole life insurance policy, okay? So I was trying to explain to him, do you see where you're still in the negative? Do you see that you're not winning this game that you're in? And so ultimately the decision was made between the two of them. They pulled their money from the whole life insurance policy.

5:2120, I think they got$28 ,000 of it. They paid almost one of the cards off and brought that balance down to just a couple thousand. And so that'll be paid off in a couple months. And then now they're not paying 29 % interest on a card every single month. And I told them, once your budget can allow and afford, you're going to be investing. You're going to be taking that money and investing on purpose. And you're going to be a lifelong investor. But you can't do that while you're paying all this interest. You're not, like I said, it's a game you're not winning. Yeah. And the goal is not, is to be able to invest as soon as you can.

5:53People will do all these math things. They'll tell you why not, why paying your mortgage off is not worth it financially and all of this stuff, other stuff. But you really have to decide for yourself what matters to you. And when you look at not being able to afford your regular life so that you can invest, like, does that make sense? I don't know. You're racking up credit because you can't afford your everyday life, but yet you're investing. Yeah. But you're not going to be able to do that long term. Yeah. It's time to enter your coaching era because making good money should feel like making good money.

6:27Yeah. Imagine six months of private coaching where we'll tell you exactly what to do. No guesswork, no confusion, and absolutely no judgment. It's a done-for-you system that actually works. You don't know what you don't know, and that's not your fault. And that's why we're here. Financial coaching with us looks like two coaching sessions a month, personalized recaps, and after-hour support, you can text and email. So you're never stuck wondering what to do next. Together, we're going to build your budget, set up your system, and tackle any challenges that come up along the way, which, by the way, they always do.

7:00If what you're doing isn't working and you're tired of trying to figure it out on your own, sign up for financial coaching at budgetbesties.com forward slash coaching before all of our spots fill up and we will help you go further faster. Six months from now, you'll wish you started today. And then the other point with this is I think a lot of times we outsource these financial things to someone else and hope that we don't, like, I don't have to learn. I don't have to, I don't have to be involved. Because you trust them. I've checked the box. Yes. And it's your money. You want to know as much as possible, be as involved as possible.

7:37And this is your future as well. In a lot of cases, it's not something that you should just give someone control over and not expect details, lots and lots of details and lots of information coming back your way about it. So just because you hired an expert in any like part of your life, don't outsource it. Don't check it off your I have to think about this list because that's not good. That's not the right way to do it. And especially when it's for money. Yeah, absolutely. You just want to make sure why you're making the decisions that you're making. And even if it is a close relative, don't automatically assume that they know best because they're in that field or because they're related to you or they wouldn't screw.

8:10Oh, they absolutely wouldn't screw me over. His brother didn't. I guess it was an oversight. And he even told him, like, I forgot to move your money to do what I said it was going to do. And it never happened. That's not OK when you're dealing with your brother's income, right? So anyways, just don't assume anything and make sure that you know what's happening with your money. Yeah. I think that's a good plan. Okay. So I have, I have a nurse. I don't know. She's like in a different pay situation where she has her own business and that's how she gets paid. And then so it's separate and, and she doesn't always get paid the same.

8:45And so this has been, again, we've said this a million times, but we'll say it again because is important is that irregular income doesn't have to be irregular. And we think that you feel like you're subject to the chaos that can feel like when it is random, but you're not, you can make it very normal. And so lots of things were happening with this client. First of all, she was getting paid different amounts all the time, and then paying herself different amounts all the time, just who knows why sometimes. And then she was also like, she had her, her bills were really front loaded on the first part of the month.

9:19And so the lesson here is you can take control of this, you can you don't have to just react to whatever's happening, you can be in charge of it. So the way you would do this, obviously, we've talked about before, you want to figure out how much your business costs and how much personal costs that we can really decide what money you want to keep and send where. But for her, we can once we know that personal budget, we can pay yourself how much you need, maybe not any more than that, to cover the personal budget regularly, regardless of when you get deposits from the business or from the 1099 or whatever happens.

9:50I can have enough bank tier that I pay myself$2 ,000 every two weeks or twice a month or whatever amount you come up with. That can happen. The other thing that can happen is you can call your billers, bill people, the billers, who are they? I don't know who they are. And you can ask for different due dates. You can do that. You don't have to live by someone else's rules all the time. You could ask for something to change. The other option for her was to get a whole month ahead so that it doesn't matter. I get a paycheck ad really. So it doesn't matter when they're coming, but just understand the chaos that it feels is happening with your money is not have to be that way.

10:25You don't have to react to what someone else has, whatever process someone else has created. You can create your own one, your own process, your own systems, your own streamlined way of doing things that feels really good. I love that. And I love how you said you can call and ask for different due dates. Take charge of your finances. Make, you know, put yourself first and say, I am going to, I'm going to be an advocate for myself. Nobody else is going to advocate for you. Do you think they're, your company is going to call you and be like, Hey, do you need me to move your due date from the 15th?

10:52How can I help you? No, they're not good. They don't care. Right. They just want your money. But if you can ask them, Hey, can I just move this a couple of days or a week or whatever, and be consistent on that for them, they're going to love that because they know that you're, it's working for you. It's in your, they're going to be consistently getting income from you. So again, I just love the whole idea of standing up for yourself, being an advocate for yourself and asking all these different questions. So that way it allows you to be successful in the long run. Yeah. And I think that we say it all the time, but getting yourself a paycheck ahead, whatever amount of sacrifice and white knuckling for a small amount of time that may require of you, the amount of stress relief you're going to have.

11:31So for example, this client having to transfer, not knowing what's happening, having bills, like having zero money sometimes and lots of money other times and having to like do extra transfers to cover stuff. And then also she's a mom and she's paying for all that stuff. Like all of that can be solved. Get one paycheck ahead. Your bills are paying automatically. Your spending is funded automatically. And you're like hands off and you can just enjoy your life, do your work, do your momming, all of that. And you don't have to live in this stressful life that your system may have set up for you. You don't have to live that way.

12:05So we hope you love these lessons from the sessions. We love bringing you information from our sessions and being able to bring it to the public. So hopefully that it helps you because we know if our one client is going through it, then you're probably going through it too. And then hopefully we can help. If you make good money, but have nothing to show for it, this quiz will help you figure out what's really going on with your money and what your next step should be. You'll get a personalized result and a simple action step to help you feel more organized and less stressed. Go to budgetbesties.com forward slash quiz and take the free quiz today.

12:35That's budgetbesties.com forward slash quiz to find out what's really going on with your money.