Money Pit: Kicking the Can Down the Road
episode
DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing
11 min
3 speakers
4 chapters
transcribed 1 month ago
Transcript
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Transcript generated automatically by AI and may contain errors.
What is the main topic discussed in this episode?
Hey, this is Allie, and thanks for listening to the show. Give us a five-star review where you listen and share this episode with someone who might need to hear it. Now, enjoy the show. What's up, everybody, and welcome back to another edition of DIY Money. DIY Money. Logan, it's been a while.
It's been a while since you and I have been on together. It's fun. You know what's shaking? Not much. I think we've got to get right into it today because we've been on this series. We've been going on it strong, our Money Pit series that we've been doing. And we really started doing this, Allie, because there's a lot of data out there that's not pretty. And the markets haven't been pretty. They've been very volatile. But people are starting to realize that they have to get their financial house in order. And we're seeing the data, all-time highs in credit cards, all-time highs in auto loans. The one that really stuck out to us was the 90-day delinquency rate on auto loans was higher than it has ever been.
higher than the great financial crisis, higher than even 01. So it is astronomical, the amount of debt that we're seeing out there. We really wanted to get this series going so that we could lay out to people the steps they need to be taking and making sure that they're on the right path. So what are we talking about today?
Yeah, well, and keep your questions coming in the meantime. Yeah, for sure. Podcasts at DIYMoney.org. You can send those in a minute or less. And once we start doing questions again in a few more episodes, we'll send you a $25 Amazon gift card for sending those. So today is the last Money Pit.
Why are rising delinquencies and debt levels the reason for this Money Pit series?
We're going to be talking about the thing that we see oftentimes in clients when they come in and they're like, okay, I'm ready to get started, but they're in their 40s or 50s and they feel super behind. So we're talking about kicking the can down the road. Just this idea that I'll save when I make more income or I'll save when the kids are in college. I'll save when fill in the blank. This idea that, yes, there might come times in the future where you might have more income. For the most part, the time to start saving is actually now. So I'll let you kick it off and then I'll kind of fill in.
Yeah, what you said is perfect. The time is now. So starting now, getting on the path towards your successful financial life starts now. And what we talk about all the time on this show is you have to follow those steps. We've talked about this over these last few Money Pits episodes. You need to make sure that you have a budget in place. You need to make sure that you are saving for an emergency fund or have an emergency fund established. You need to have that fast cash there. You need to start building margin. So building margin through either cutting your expenses or increasing the amount of income that you're bringing in the door, that is crucial to get on the right path. Once you're there, don't stop.
I see it often. People have done the first initial steps, but then they get to the point where they're just... basically have the amount of money that they have, they have the margin, but they're like, yeah, well, I'm going to use my margin to spend a little bit extra. And then you fall back into what we talked about a couple episodes ago of living paycheck to paycheck. Even though you're not because you've built up a little bit of an emergency fund and you have some different things going, you never really pursue or go down the road of... I'm going to start intently saving. Or maybe you're someone that's sitting there and saying, I am in a bad financial situation. I am significantly in debt. I do have these other things, but it's just too hard right now to get on the path.
We've talked about it multiple times throughout this series. You have to be a little bit radical. You have to be a little bit crazy in the degree that you pursue this, saying no to things, not keeping up with the Joneses, going down this path where people might say you're crazy when you're doing it, But how important it is to start and start now.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:02–1:31
2
Why are rising delinquencies and debt levels the reason for this Money Pit series?
1:31–6:29
3
What does 'kicking the can down the road' mean for people delaying savings and debt payoff?
6:29–8:55
4
Why is the best time to start saving and building financial margin right now?
8:55–11:07