Debt-Free Millionaire

Do you want lots of money??? Learn to Budget and Save - (W4:D3) Debt Free Millionaire Podcast and Personal Finance Course

Simplified Explanation: It is always best to track saving and budgeting, throughout the year. At the year’s end, it is good to see how you stuck with your goals and/or budget. Consider this your annual review.
Real Life: How much do you spend each year? How much do you save? Would you like to save more? And lastly, why would you like to save more money? These are questions everyone should ask. Then comes the bigger question: how are you going to live your life?
BUDGET: Here is a word everyone loves to hear: budget. This is where you become intentional with your money. A budget is basically giving every dollar a job and telling it where you want it to be spent. Write out this budget right now - give every dollar you earn a place to be spent or saved. If you have any money coming in each month, you should create a budget. If you receive extra money, have a place for that to go, as well (so you don’t just think “extra money” and then go spend it anywhere). You can even say, “this is spending money,” but make sure you allocate it as such beforehand.
BUDGET ITEM
WANT TO SPEND?
WHAT DO YOU SPEND?
Essentials
Rental/Mortgage
 
 
Debt Payments
 
 
Utilities (Gas, Electric, Phone)
 
 
Less Essentials
Food (Groceries, Home Goods) 
 
 
Donations
 
 
Savings
 
 
Medical
 
 
Transportation
 
 
Non-Essentials
Entertainment:
 
 
Dining Out:
 
 
Streaming Services:
 
 
Gifts: 
 
 
Toys:
 
 
Other:
 
 
ESSENTIALS: Start with your essential items, when figuring out how to spend your money. After you list those items, and how much you want to spend on each, calculate how much of your income goes to essentials. Is it more or less than your income? If it is more, then you will need to scale back and shrink some of your other categories. This should also worry you, because you cannot spend more than you make; even a credit card will come due at some point, and you will need to repay. If your total is less than your income, this extra money can be paid towards debt or non-essentials. Remember, the less debt you have, the more you can spend on non-essentials.
DEBT PAYMENTS: How much do you spend each month on debt payments? When you are finding the initial numbers, just take from the payments of the past. After you have written up your budget, if there is any money that is not allotted to something, focus that extra on your debt. Whatever the amount, try to double it, or at least increase it as much as you can afford, to pay off these debts as fast as possible. Look at tomorrow’s section (W4:D4) titled ‘New Debt’ and see how you can get out of debt faster.
UTILITIES: How much do you normally spend each month in utilities? During the year, this may fluctuate by the type of utility, but most households that use gas and electric spend nearly the same amount every month. During the winter, your furnace uses more gas, but less electric, while during the summer, your AC uses more electric and little gas. For this reason, list the amount of utilities as one, including water, trash, gas, electric, phone/internet. How much do you spend in the winter and summer, and which one is more? Take the higher number and put that in your budget. If this money isn’t spent each month, then put it in the savings account.
LESS ESSENTIALS: While these are still essential, you do not need to spend money on these to survive. That is why they are essential, just less essential.
FOOD: Take a month or two and watch how much you spend on food. Track every dollar spent on food and other goods (toiletries and household disposable goods) that you buy each month. How much do you spend each month? Add that to your budget, above.
Did you know that you do not need to spend much on food if things are very tight. There are food banks around the United States that will provide you with the essentials of life while you get out of a bad situation. If you need to, never think you are ever above help. If you feel better about it, ask if you can volunteer there and get first picks of the food that is available.
DONATIONS: Do you donate to a local church or non-profit organization? If so, how much do you donate, and how much do you want to donate each month? List this in each column. 
SAVINGS: Unlike the game, in life you do not just have excess money at the end of the year, unless you are intentional. You must be intentional if you are to pay off debt or save money. Throughout the year, pay yourself first, and place it in a savings account. If you have your paycheck directly deposited into your bank account, automatically put a certain amount into a separate savings account.
CONSTRUCTION: If you own a house, you should always plan for a possible emergency. You buy insurance, but every time you make a claim or call to inquire on making a claim, your premium will increase. Start putting money in a bank account for a rainy-day fund. After it hits a certain amount, say $1,000, then you can hold back. You can always change this fund into money saved specifically to buy a house, and put away a certain amount for your down payment. Or, if you have a home improvement in mind, start saving for it, with this fund. Put away $100 a month and keep it growing until you need it.
MEDICAL: Everyone will have a medical need sometime in your life. If your health insurance provides the ability to have a HSA, Health Savings Account, then start sending money to that account every year. When you put money into that account, through your paycheck, or after you are paid, allot the max contribution (which is somewhere between $3,500-$4,000, tax free). Even if you spend that money when you are very old, you will most likely need it at some point, and should save money by doing it tax-free.
TRANSPORTATION: Transportation includes bus, train, and maintaining, or buying, a car. There is a certain amount you will need each month for public transportation fees, or gas. Allot a certain amount to pay for these items, and then put whatever is left into another savings account. Like your construction fund, begin saving specific money in this account. If you don’t spend it on maintenance, then, after it has grown, spend it on your next car. The longer you save, the nicer your next car can be (if you even want a nice car).
NON-ESSENTIALSThis category is last for a reason. At this point, add up your expenses and the money you have already allotted in your budget; is there anything left over? If not, and you have over-allotted funds, adjust them, so you only spend/save money you already make. If you don’t make enough, then look into starting a side gig. Non-essentials on the other hand, are for when you want to relax and do things with your money. After you’ve given every dollar an assignment in the essential categories, if you have extra money, think of paying off more debt first. The less debt you have, the more money you can spend on the non-essentials in the future. Start off with a small amount for the non-essentials. You really do not need that much.
ENTERTAINMENT: We want you to be as intentional as possible, but we also want you to have some fun - especially if you have kids. Give yourself a specific amount to spend each month on being entertained. Most of the time you will allot these together into the category of entertainment, but for this chapter we want you to break it down into how much you spend for each and how much you want to spend for them. How much do you spend on entertainment, not in those other categories below? How much do you want to spend? Write it down.
DINING OUT: How much do you spend each month on fast food or going to restaurants? Do you really have the money, or do you simply hope to have the money? Do you buy food when at work? Can you bring a packed lunch, instead? Can you brew your coffee at home? Consider where you can cut, to save money. Remember that the more you save, the more you can spend somewhere else. 
STREAMING SERVICES: The average household has 3.8 televised streaming services at an average of $10 a month. That’s an extra $40 a month or $480 a year, which can add up. How many streaming services do you have? Do you have Netflix, Prime, Disney Plus, Apple TV, Hulu, ESPN, and some other monthly service? Do you watch all of them, all the time? Think of doing this. Cancel all your streaming services except for the one you will focus on. After 3 months, cancel that subscription for a new one you want to focus on. Watch everything available on that service over those three months and then cancel it. The great thing about streaming is that everything is recorded. After a few months, when you return, there will be more new programs you will want to watch. Try this strategy if you do not have enough money in your budget to pay for so many services. You aren’t just saving money, but you are also saving your time; if there is nothing to watch, go outside or find something more energetic to accomplish.
GIFTS: We want you to be generous with your money, but not as much while you are getting out of debt, and/or reaching a comfortable position financially. The more you donate while you are doing these two goals, the slower it will be to get out of debt, or become sustainable. Think of doing your monthly donations to your church or your local organization, and then spend the rest on getting out of your own hole. This will free up more money to go towards being generous when you are ready. What would you rather do with your money: pay more of your money to interest, while donating a lot, or getting out of debt, and spending those funds that would be paid as interest to banks, instead of the local organizations that need your help. At the same time, you can have very little and still share. Always be generous with what you have and when you have more, give more.
TOYS: This is the biggest struggle for most people, they want, and yet, they are not willing to wait. You can afford it faster, when you get out of debt and place yourself in a financially secure place.
When you reach these milestones, then you are ready to splurge on toys and other activities that are less important towards your survival and comfort. Learn to save first, and then, when you have a comfortable buffer, spend money on the things that are less important in moderation.

You Must Become Intentional To Succeed - (W4:D2) Debt Free Millionaire Podcast

Simplified Explanation: To become debt free, and then to become a millionaire, you need to live your life in a way in which you are fully in control - not allowing those trying to get you to spend your money to control you.
Real-Life Explanation: There are many more ways to save on your expenses than we’ve mentioned, but as we talked about in this unit - you must be intentional in life to save money! It is not always easy or enjoyable, but it will save you in the end, and every penny matters. 
Example: When I was young, I was told of a woman of great wealth. She loved having parties and entertaining - the very wealthy and influential, as well as the average person. One day, after attending one of these parties, a young man was running errands and ran into this same woman at the recycling center, turning in her cans and bottles for money. The young man shyly approached this lady, not wanting to embarrass her, and asked, “with such great wealth, why are you here at the recycling center?” She turned to him and looked deep into his eyes and gave this remarkably simple reply, “how do you expect I obtained such great wealth?” This man was so touched by this, that he began living his life more intentionally. And as he did, he found himself running into this woman more and more. They became friends, and she taught him these same principles we are teaching in this book; though, instead of back in the 1970s, now its 50 years later and the principles still apply.
Where in your life do you struggle? Is it with an addiction, a worry or fear, and/or a lack for something? If you are to overcome that struggle, you must be intentional - doing things that will help yourself overcome it - and thrive past it. If you aren’t intentional, you may only overcome because of chance. Who wants to put their livelihood in the hands of chance?! This next exercise will help you become more intentional with your spending.

Do your Need it or Just Want it (Lower Your Expenses) - (W4:D1) Debt Free Millionaire Podcast

Simplified Explanation: What are your needs in life? Housing, utilities, food, and transportation. These are the essentials. We have already gone over fixed and variable rate expenses. Now, for those things that are essential, here are ways to lower how much you spend each month (on things other than your debt).
Real Life: Now, what happens when you have so many expenses that what goes into your wallet is the same amount as what leaves your wallet, or restated, when your expenses are just as much - or more - than your income? What needs to happen? This is when a purge is needed. Here are some ways to purge your spending and bring down your expenses.
Create a shopping list and stick to it – All grocery stores are designed to make you pay more. Everything from where the necessities are positioned in the grocery store, to what is on the shelf at kid or adult eye levels. Make a list at home of your necessities, and even your wants. Then go to the store, and strive to only buy what’s on your list. Even if you have an impulse to buy something more, don’t. Try this out a few times in a row, and you will begin to break the habit of “must-have” retail. Or, even more effective, make your list and order it online, and pick it up outside the store, so you aren’t driven to buy more.
Use coupons, discounts, and rebates – If you are going to stores like Michaels, grab their coupon online. There is an active 20-40% discount on everything they sell, so don’t forget to look it up at home, or on your phone while you are in line. Though coupons are not as common these days, there are usually discounts online for most products to get you to try their brand. But, be sure to compare the discounted price to the store brand price. Pick the less expensive one. If you are on the computer, install a program like Honey, which finds active discount codes to try (which they found online).
Shop Online – You can buy nearly everything on your list on Amazon or a grocery store, and they will either deliver it to your house, or pop it in your back seat (when you order beforehand and pick it up from the store). Use online discounts as well. There are normally no differences in price when you are buying in the store or online, if you go to the store’s website directly. Be careful of services like Instacart, whose prices are actually higher than the prices in the store, or on the store’s online ordering system. You may want to compare the pricing though. Since the online price is the same around the U.S. (on Amazon, for example), if your groceries cost less  than somewhere in CA, you will most likely pay less in your local store. If you buy online, you can always price compare, or use the discount codes provided online.
Buy in Bulk – One big issue in overspending is constantly buying smaller packages of groceries. Almost any grocery item is more expensive, per ounce, when you buy the smaller quantities. Buy larger packages of things you use all the time, such as rice, flour, oil, and even spaghetti sauce. Buy the canned sauce and pour what’s left into smaller containers, or freeze it in ziploc bags.
Buy Off Brands – You don’t need to buy a brand-named product. They are priced to cover their marketing expenses, as well as the product they are selling. Most grocery stores have store-named products, which are always cheaper – or they would not be selling them – and they usually taste the same.
Kill the Monthly Subscription - Streaming Service – Everyone will agree that $5.99 a month is not a lot of money, and $20 is okay with some products, but $100 a month is very expensive. Well, how many $5.99 subscriptions does it take to make $20? And how many $20 does it take to make $100 a month, however you look at it? They are expensive over time. $100 a month is $1,200 a year. Do you have that just lying around? The big question is, do you need all these monthly services? To this day, I pay for one service, outside of utilities, and that is the one streaming service I want that month, or 5 months. I will watch everything they have on there, and then change to another one while they fill up. For example, Disney has The Mandalorian. I like this show, but they aren’t set to release another episode for more than a year, which means, I don’t need - or want - to hang around until they put that back up. This is living life intentionally.
Kill the Yearly Subscriptions – Maybe once a year you will want to purge your expenses, but most of the time those yearly subscriptions are not visible, since you paid for them 6 months ago, and you only pay once a year. For example, Amazon Prime charges you once a year. These are accounts that charge you once a year so you don’t realize you are paying for them each month. This takes a little extra effort, but go through all your expenses and find any that renew yearly. Cut those out. Most of the time, these are monthly expenses, paid at one time. If they are not 100% necessary, cut them out as well.
Be Smart with Utilities – Turn off your utilities when you aren’t using them. When the sun outside is enough to fill your room with light, turn off the unnecessary lights. Turn your hot water heater to the temperature that is perfect to shower in, and not something that will boil you alive. Don’t crank up your heater above 70 degrees during the winter or below 72 in the summer. Sounds reasonable right? Buy LED bulbs. Also, find out if your local utilities use Peak Usage Hours. Some utilities charge more if you run your appliances during the day, during peak electrical usage, instead of at night. If they do, run your appliances outside of peak times.
Purchase new appliances – Most older appliances are utility hogs - everything from your old toilet using way too much water, to your washing machine using too much water, and electricity to move this abundance of water. Newer appliances do more, with less amounts of energy or utilities. At the same time, most older appliances are better built and last longer.
Cell phone’s stranglehold – Find out exactly how much you are spending on your cell phone. Do you need that amount of data? Do your kids all need lines? Why? Compare it to when you were a kid, did you have a phone and do you feel they need one? At what age do they actually need a phone?  Go to debt-freemillionaire.com/cellphone/ to find more ways to save on a phone plan. If you have to, buy a landline at home; it costs $20, instead of $40 per line.
Do things at home – Do you need a membership to a gym? Most things you can do from home, if you are intentional enough. Some will buy a membership and rarely go. Exercise needs to be intentional and consistent. If you buy a membership, will you go every day, or at least several times a week? That is the only way to lose weight, or get/stay healthy. The same goes with getting your morning coffee. Even if you need to rush out the door, wake up a little earlier and brew your own coffee. If you need to, splurge on a good coffee maker, because in the long run, you will still save thousands of dollars every year, if you brew coffee at home. You don’t need to eat out; often, you can make better food at home. If you have to eat out, cut it down by half. Every time you stay home you could save $30-50 - that could be a savings of a few hundred dollars a month. If you are going out with others, think of sharing entrees.
Shop Used or Refurbished – Thrift stores, like Goodwill and Savers, are great when it comes to buying used items, while stores like Ross are great for refurbished or marked down household products. Frequent these stores for necessities, such as clothes.
Shop at Warehouse stores – Nearly every warehouse store (Costco, Sam’s Club, etc.) has a gas station attached. These gas stations are normally priced $0.05-$0.15 lower than all competitors. One tank of gas (20 gallons) will save you $3 per fillup. Fillup 4 times a month and you just saved yourself $144 a year, just by paying the membership to this store, which is usually around $45. You can also save by using these stores to buy in bulk. Watch out though, it is not always cheaper to buy bulk in these stores, compared to normal grocery stores. Look at the price per ounce, or item, typically located somewhere on the price tag.

Let's Make Some Money - (W3:D4) Debt Free Millionaire Podcast

Simplified Explanation: Based on the information we just looked at, how much you owe plus how much your monthly expenses are, this is the least you will need to make to survive. Now it is time to talk about getting a full-time job to make that money you need and want.
Real Life: Just because you work a 9AM–5PM job does not mean you are bringing in that amount of money you need. Every time you make money from a full-time or part-time job, that employer is mandated, by law, to take out taxes, and not a small amount even. They are mandated to take from your paycheck these items: social security tax, unemployment tax, federal taxes, and state taxes. Everyone gets paid before you do. Then, depending on the benefits you accepted from your employer, you also reduce your paycheck by that amount as well. This is okay, though, remember what we said, we will teach you how to pay as little as possible from your paycheck, and what you do pay, you can tell yourself that your taxes go to paying for those in need.
Just FYI, your employer pays many of these taxes as well, so you are costing them more than just your salary, so don’t blame your employer. Taxes are government mandated and the benefits that come from being a full-time employee benefit you.
Full Time Work – When you work full time there are certain allotments of money that are paid before you. There is a reason why you may have made $1,000, but only walked away with $600 in your paycheck. Check your paystub (attached to your check or if direct deposited, ask for a statement) to see what was removed:
Federal Government - FICA - Federal Insurance Contributions Act. This includes Social Security and Medicare Tax –
Federal Income Taxes – The U.S. government takes a percentage of your pay to pay taxes at the end of the year. This is based on a W-9 form you fill out when hired.
Social Security - In retirement years, senior citizens will be able to draw from money the government has taken from them in their younger years to pay for their living afterwards.
Medicare - Is a government program that you pay when you are younger and then it guarantees to pay you when you are older and need medical insurance.
Chip – Is a program that provides health care to youth, which everyone pays.
State Taxes – Just like the federal government, your state and local government also takes their cut of your paycheck every month.
Unemployment Tax – If you are laid off, at no fault of your own, you are paid Unemployment Benefits, which is a set amount of money that you can claim, for a certain amount of time until you find future employment.
State Income Taxes – Your state government takes a certain percentage to pay potential taxes for the year.
Some states do not withdraw state income taxes and some states like California have additional taxes such as short-term disability insurance, which they mandate you to pay
Union Dues – If you are part of a union, whether they are doing anything for you at the time, they are pulling a monthly fee, depending on the union, to fund their activities. If you don’t like exactly how your union is being run, then become more active in your union by attending meetings and try to get in a leadership role. Normally, a union worker can become leadership, though it may be difficult to achieve. It is at these meetings where they discuss these fees. If you don’t like your union, the U.S. Supreme Court has ruled that you can’t be mandated to join one or pay your dues. More on unions later.
Benefits – Some benefits that you receive for working full time are not paid completely by your employer and so the rest is taken from your paycheck, including health insurance and retirement.
Part Time Work – In part-time work, you are still being paid by an employer who is mandated by the government to hold a certain amount of money. Normally there are no benefits as a part time worker.
Social Security Tax – In retirement years, senior citizens will be able to draw from money the government has taken from them - during their working years - to pay for their living after 65.
Unemployment Tax – If you are laid off, at no fault of your own, you are paid Unemployment Benefits, which is a set amount of money that you can claim, for a certain amount of time until you find future employment.
Federal Taxes – The US government takes a certain percentage to pay potential yearly taxes.
State Taxes – Your state government takes a certain percentage to pay potential yearly taxes.
Contract Work – In a gig economy, where you can have many side jobs, working with different companies to perform many services as a non-employed independent contractor, taxes or payment for benefits are not withdrawn from your paycheck; instead, you are to pay those bills quarterly to the government or in one lump sum at the end of the year. This may seem great, not having your taxes withdrawn from each paycheck, but at the end of the year, when you pay taxes, the taxes become due, and you may be writing a large check to your federal government at the end of the year. The amount increases as your total income increases. But, from your client, you receive what you were promised in full. These taxes, you eventually have to pay, can be reduced with each of expense you spend on your side gig, such as miles driven to or during your side gig or personal tax deductions, including having kids or donating to non-profit organizations.
Owning a Business – When you own your own business - we will get into this later in the book - you pay yourself a guaranteed payment as an owner, depending on your state you may not have to pay taxes on this money, or you can pay yourself as an employee. You never want to buy anything with your business credit card that can be seen as personal purchases or paying yourself right out of your business bank account. You want to create a barrier, between your personal money and business money, from the very beginning. This separation will allow you to say to the Internal Revenue Service, a government entity that makes you pay your taxes correctly, that you keep your personal and private money separate, so if they come after your company, you don’t have the liability of losing your personal money to the government. If you pay yourself as an employee then the same taxes are taken out of your regular paychecks as would be if you were a normal full-time employee.
If you are taking the money as a guaranteed payment, for services as an owner, you have to pay both the employer’s side and your personal side of FICA and all employment taxes. This makes it so Social Security and Medicare tax still gets their full amount. But because you are an owner and you would have to fire yourself, you may not have to pay Unemployment Tax. Check with your individual state.
Investing – Just because you sell a stock, commodity like gold, or cryptocurrency, does not mean you get out of taxes and fees. Before we tell you which ones, let’s talk about the five main types of investing:
Retirement – In retirement there are many programs you can fund: a 401k (through your employer), Roth IRA (Investment program where you get taxed when you move it into the program), Traditional IRA (Investment program where you get taxed when you withdraw the funds for personal use), Pension (an investment fund your employer or union controls), etc.
Capital Gains – In all of these, except Roth IRA, you must pay capital gains taxes on any increase in the value of the investment when you are withdrawing the amount.
Early Withdrawal Tax – If you decide to pull from any of these early, except Pensions (your employer or union controls it), you will be taxed with a very high tax penalty because these programs were created, tax deferred, to benefit you in retirement at age 65.
Day Trading (Short Term Trading of Stocks, Bonds, and Mutual Funds) – These are short term trades where you buy stocks - partial ownership in a company - and sell them for a profit/loss. The stock market can fluctuate quite sporadically at time increasing or decreasing the value of your stocks, making you make or lose money quickly.
Capital Gains – All increases in value created by fluctuations in the market are taxed.
Commodities – Physical items that you can buy and sell, like a stock, metals like gold, oil, or crops.
Capital Gains - All increases in value created by fluctuations in the market are taxed.
Cryptocurrency – Most currencies around the world are not backed by anything of value, beyond the trust of that country who supports it. Now there are digital currencies that are only backed by an idea. They fluctuate like the stock market due to things that happen in the U.S. economy or international events. Because some question the value of foreign and domestic currency, independent programmers designed currency that are controlled by supply and demand. The more the public wants and buys the currency, the more it increases, the less they want it or sell it, the less it is worth. For example, when the value of the US Dollar goes down Cryptocurrency increases dramatically. When Joe Biden was named President-elect, Bitcoin increased by nearly 400% in the matter of a weeks.
Capital Gains - When you have it for less than one year, you pay short term capital gains, after that time, you pay long-term capital gains tax, similar to a stock or commodity.
Real Estate – This is when you, as a private citizen, buy a building, residential or commercial, and sell it for a profit or hold on to it and rent it to another person or entity. A piece of advice though, if you are renting the property and someone gets hurt or has some sort of lose that they can sue you over, they may come after your personal property. It may be smart to start a business and put that property under that company’s name so the lawsuit could not come after your personal property.
Capital Gains – If you were to sell it in less than two years or rent it out and then sell it later, you would have to pay capital gains tax to the federal government.
Repairs and Maintenance – If you buy a house that is “distressed” - foreclosed or in poor repair - then you will need to fix up the property before selling it if you would like to make a profit. If you are to rent it out after fixing it there are routine maintenance that is needed in addition to your initial investment. You can add repairs and maintenance to the agreement of the person renting but be careful of poor-quality work being done in your property.
Utilities – If you rent the house to someone, your tenants or you can pay these bills. Make sure this is spelled out in your contract.
Management – You may not want to deal with your rental’s day-to-day activities and may pay someone else to manage your property or many.
Overview - Income is very important, but you should know beforehand that you rarely ever get away from taxes and if you don’t pay your taxes, the IRS can come after you and it is not pleasant.
The federal government is going to take from you to fund their existence, the best thing is to be informed about the taxes and, if possible, only pay the minimal amounts possible within the law. You are under no obligation to pay the federal or state government more than they require.
You are the best arbiter and distributor of your money. Make sure you have control over each part. The best way to do that is with a budget, which is a form you put together that gives every dollar you receive a chore and every chore a spending limit. This is so that when you have your money deposited in your bank account, you know exactly where it goes and how you can spend it. More on this in a future chapter.

How much do you want to work? - (W3:D3) Debt Free Millionaire

Simplified Explanation: When you work a normal full-time job, you work between 30-40 hours per week. If you work less, you are considered part-time and don’t enjoy the benefits of health insurance. If you work over 40 hours a week you are due overtime pay, which is usually your normal pay, plus an extra 50% of that pay (often called “time and a half”). So, you are making extra money when you work over 40 hours in a week. These days, the 9-5 job is becoming less popular and employees are looking for more flexibility.
Real Life: In Europe, it is said that they work to live, but Americans live to work. This is not always true, but we need to limit how much we work, so we can focus on the most important part of our lives: our friends and family and reducing stress in our lives. Debt is rampant around the world and the only way to pay your debt, if not get out of it, is to work it off. People have to work all hours of the day just to pay their bills and their debt. If you can limit the amount of debt you accrue, you won’t have to pay as much, and so you won’t have to work as much. Consider this next time you think of making a purchase on your credit card or even getting a student loan. Debt is the modern-day slave owner, but you don’t have to be the slave to debt. You can get out of debt.
Countries by household debt, as % of 2021 GDP:
Switzerland – 132% - $908,085 per house
Australia – 120% - $168,600
Norway – 111%
Canada – 109%
Denmark – 108%  
South Korea – 106%
Netherlands – 103%
New Zealand – 97.6%
Sweden – 94.8%
Hong Kong – 91.8%
United Kingdom – 86.9%
United States – 79% - $145,000 per house
        20.  China – 61.2%
How much should you work? When considering this question, consider how much you need to survive and pay off your debts. Then consider how much extra you want to work (and can work), to pay off your debts faster. As soon as your debt is paid off, you can think of the extra amount you work as how much extra you want to work, in order to pay for your lifestyle and retirement. These are things to consider when thinking about how many hours you want/need to work.
Here are two activities to find out how much you want/need to work. This will help you plan. 

How is the U.S. Government Spending Your Money - (W3:D2) Debt Free Millionaire Podcast

WHERE DO MY TAXES GO?Federally – There are three types of spending: National Debt payments: The U.S. borrows over a trillion dollars every year, so as the government’s spending goes up, more U.S. taxes are paid to the repayment of this debt, increasing much over the past few years (2020-22). This would be like you taking a loan from the bank and needing to pay interest on the loan, but instead of capping your borrowing limit, you continue to borrow more money, owing more interest, even if you aren’t making more money to cover the repayment of that debt. The problem is, instead of a bank the U.S. borrows from other countries, and then has to negotiate with them in diplomacy, without them asking for their money back all at once. America has more debt than any other country in the world and still continues to borrow. 
National Debt – 9% of the country’s revenue pays the debt we have racked up (which was racked up by spending what we cannot afford). To find out how much we currently owe to the minute, look at usdebtclock.org. This will also show you how much we pay towards the National Debt, Medicaid/Medicare, Social Security, Defense. This payment increases/decreases depending on how much we owe, based on the current interest rates. On Nov 16, 2021- 5:36AM CST (while I edit this book) the U.S. owed $28,967,266,775,881 to other countries, those who owned U.S. Savings Bonds, and in other forms of debt. Within a minute, that debt increased by over $1,000,000. This is all debt you, the younger generation, will have to pay.
Mandatory Spending: This is Entitlement Spending, and is not based on yearly budget review. This started with Social Security, but climbs dramatically with every new program the government creates in this category (including Medicare, Medicaid, Earned Income Tax Credit, and the Child Tax Credit). Then there are also the benefits we provide our military veterans. In total, this accounts for around 61% of our federal budget. 
Social Security (Mandatory) – Started in 1935, this program was designed to be a supplemental income for retired workers, after age 65, being paid an average of $1,503 a month. This now includes disabled workers and survivors of those workers. It is also called OASDI, Old-Age, Survivor, and Disability Insurance and is run by the Social Security Administration (SSA). It was made to be a safety deposit box of funding, taken from the younger working generation to pay for the older generation. Sadly, the U.S. Government couldn’t keep their hands off it and spent that money on other programs outside of Social Security. Now, they spend straight from those funds in the overall budget. It accounts for 39% of mandatory spending. In 2019, 64 million Americans received over $1 trillion in benefits, which is why you are charged an extra 6.2% of your paycheck (but a maximum of $8,537.40 (2020).
Medicare/Medicaid (Mandatory) – Health insurance was developed in the U.S., in 1850. Since insurance became mainstream in the 1920s, and then with Medicare/Medicaid established in 1965, health care costs have climbed dramatically. 
Medicare is to care for people over 65, people with certain disabilities and people with some health disorders. There are four plans: Medicare Part A – general coverage or nursing facilities; Part B – doctors’ visits, outpatient services, preventive care and supplies; Part C – All parts combined; and Part D – prescription drugs. Medicare accounts for 28% of Mandatory spending. You pay this through a 1.45% payroll tax, on all income. The Affordable Care (ObamaCare) act added 0.9% for any income over $200k.
Medicaid is to care for low-income adults, children, pregnant women, elderly adults, and people with disabilities. The costs are provided by both federal and local governments. In 2018, the U.S. spent nearly $600 billion (75%) on Medicaid spending. Most of the time, states pay the other 25% of the bill.
VA Benefits (Mandatory & Discretionary) – These include disabled compensation, burial benefits, rehabilitation, insurance, housing, pensions, job training and education. These are paid for by both your paycheck and other taxes, including Capital Gains (more on this later, with investing).
Discretionary Spending: Congress decides on this in Washington D.C each year. They are mandated to create a budget, like at home, to map out where the money that they take in is to be spent. At home, you need to balance your budget, spending only what you make. The U.S. Government has not balanced a budget since 1998, under a Republican Congress and Democratic President, Bill Clinton. The last time they passed a budget on time was 24 years ago (1996). Over the past 19 years, they have only adopted 7 budgets. This spending includes National Defense, Homeland Security, Energy, HUD, Foreign Affairs, Transportation/ Infrastructure, Education, Veterans Benefits, Health, NASA, National Parks, General Services, etc. 
National Defense (Discretionary) – Depending on who controls the budget (Republicans generally increase, while Democrats normally decrease this budget), this accounts for nearly 48% of discretionary spending. This mainly funds the Department of Defense, and pays for all operations, equipment, personnel, and even military engagements, such as any foreign conflict we assist in. The highest discretionary spending on National Defense was under George W. Bush and least by Donald Trump. (14)  
Health – This mainly funds three agencies: Centers for Disease Control (CDC), Food and Drug Administration (FDA), and National Institute of Health (NIH), and accounts for 5% of discretionary spending and 23% of Non-Defense Discretionary spending (NDD). These are the agencies that oversee disease, pharmaceuticals, therapies, food safety, and medical research. (15)
Transportation and Infrastructure (Discretionary) – This mainly funds the Department of Transportation and Federal Highway Administration. This accounts for 7% of discretionary spending and 19% of NDD. These funds pay for roads, bridges, airports, highways, and the administration. 
National Parks – This funds the Department of the Interior (including Bureau of Indian Affairs), and accounts for 7% of discretionary spending, and 18% of NDD spending. This pays for the conservation of natural resources (National Parks, energy, mineral, grazing, forestry activities, Indian affairs). (16)
Education (Discretionary) – This mainly funds the Department of Education and accounts for 7% of discretionary and 14% of NDD. This includes teacher’s salaries (partially funded by states), funding research, grants, and student loans towards college for K-12 (43% of spending), higher education (29%), and employment services.
Economic Security – This mainly includes programs such as WIC (Special Supplemental Nutrition Program for Women, Infants, and Children), Housing and Urban Development (HUD), Home Energy Assistance, Child Care, and Development Block Grants, and takes care of primary needs for those with low income. 
Law Enforcement and Governance – This mainly funds Homeland Security, Federal Bureau of Investigations (FBI), Border Patrol, and assistance to state law enforcement and domestic violence prevention. The rest of these funds pay for the Internal Revenue Service (IRS), Congress, Federal courts, the Government Accountability Office, General Administration, and other basic government operations. 
Science, Environment, and Energy – These fund agencies from NASA to the Environmental Protection Agency (EPA), and National Science Foundation (NSF) to the Department of Energy (DOE), and accounts for 11% of all NDD. This is mostly used for the research behind these topics and natural resources.
Foreign Affairs – This mainly funds the Department of Foreign Affairs and accounts for 1-2% of discretionary spending. This is used for diplomacy and international affairs, which take up 8% of NDD. Half of these funds go to international development and humanitarian assistance (disaster relief, HIV/AIDS prevention, Peace Corps, and foreign organizations, such as the United Nations [UN] and World Health Organization [WHO]). The remainder goes to peacekeeping operations (Embassies, etc.).

The Government is Hungry for your Taxes - (W3:D1) Debt Free Millionaire Podcast

Simplified Explanation: Taxes are money, collected by the government, from citizens, to pay for its operations. They use it for the infrastructure, salaries of state and federal employees, and anything else they decide to fund - literally anything they decide they want to do with your money. You pay your taxes through your paycheck, or by being charged on a regular (or not so regular) schedule. Compared to other countries, the United States is  moderate in the amount of income taxes their people pay, but one of the highest in corporate tax rates.
Real Life: Here is how you find out how much you pay in taxes. This may be hard to stomach…
Where do your taxes go? – There are many types of taxes you pay each day, ranging from the taxes taken from your paycheck, to taxes taken from your credit card (such as gas and sales taxes). Here is a breakdown:
Taxes
Percent
Income
Depending on…
Federal Income Tax
17%
$17,000
Varies by income
Social Security
7.65%
$7,650
Varies by income
State Income Tax (This varies by state)
10.1%
$10,100
Varies by income
Property Tax 
1.3%
$1,300
Varies by property value
Sales Tax (This varies by city)
9.75%
$9,750
Varies by purchase
State Gas Tax
Based on how much you buy, not income ($0.15 in Alaska- $0.67/gallon in California)
Federal Gas Tax
Nationwide, Americans pay $0.1742 per gallon
Cell Phone Tax
Based on your service plan, but costs an average of $270 per year
Utilities Tax
Varies by cities – Washington State charges 6%
You may not like taxes, but remember: most European countries pay 60-70% of their income to the government; the United Arab Emirates pay 55%, and the Netherlands pay 52% of their income - just in income tax, not including other taxes! Also, these taxes go to services that you and others use, and some projects you won’t agree with, all signed into law by your elected officials. If you want to pay less in taxes, you would elect those who want to reduce them or stop frivolous spending.
Activity - Part #1: First, calculate your taxes, drawn from how much you will most likely make out of high school, or even college ($30k). Look up these numbers online. This information you may have to research:
Taxes
Percent
Dollar 
Totals
Federal Personal Income Tax
17%
$30,000
 
FICA (Social Security, etc)
7.65%
$30,000
 
State Personal Income Tax
%
$30,000
 
Local Property 
Tax (Car, House)
Car:                  
House:             
-
-
 
State Gas Tax
What is your State Tax Rate:              
_____________%
Drive 20,000 miles, Car gets 20 MPG, 
Buy 1,000 gallons
 
Federal Gas TaxWhat is your State Tax Rate:              
_____________%
Drive 20,000 miles, Car gets 20 MPG, 
Buy 1,000 gallons
 
Cell Phone Tax
%
$1,200 service plan
 
Utilities Tax
%
Use $3,600 per year
 
Total Tax: How much do you pay and the total percentage?
Total ($______/ $30,000)
%
 
Total:
$

Why Children are Expensive and Yet Essential in Life - (W2:D4) Debt Free Millionaire Podcast

Real Life: There is only one way to keep from having children - and that is to be discussed with your parents. This simulation is to show you the average price of having children, and how expensive they can be if they are not planned for. 
According to the U.S. Department of Agriculture (3), the average cost of raising a child from birth to 17 years is $233,610. That number was calculated from 2015 numbers; now, it would cost around $284,570, or more with inflation. They calculated childcare costs alone to be around $37,378 per child. You will spend roughly 9-22% of your income on childcare.
Raising a Child (Location)
Expenses Include
Cost per year (married)
1. Urban North east - $264,090 
2. Urban South      - $232,050
3. Urban Midwest - $227,400
4. Urban West       - $245,460
5. Rural Areas       - $193,020
1. Housing – 29%
2. Food – 18%
3. Education/
Childcare – 16%
4. Transportation – 15%
5. Health Care – 9% 
1. Birth to 2 years - $12,6802. 3-5 years old     - $12,730
3. 6-9 years old     - $13,180
4. 10-15 years old - $13,500
5. 15-17 years old - $13,900
Now children are even more expensive to you if you have them without being married. There are five statistical options that come in this scenario: 1) you marry the other parent, or raise the child together, 2) your partner takes the child and you pay child support, 3) your partner leaves and makes you the sole caretaker, and 4) you put the child up for adoption because you don’t believe you two can raise the child, or 5) you share the child with equal time sharing and each of you have time with your child. According to the Brookings Institute, 70% of cohabiting parents who are not married will break up, and one of the other four options will happen. Are you ready to have a child? If not, you may not want to do the things that make babies. (We refer this talk, where babies come from, to your parents). 
Child Support is not cheap. It differs according to your location, how much you make, how much time you have with the child, etc. The more you make over the lifespan of the child, the more you will pay. The idea is that child support is to be the equalizer between what both parents make or have the ability to make: if you make a lot of money and the other parent does not, you will pay the difference, to some extent. There is also something called alimony where the courts could also increase the support, to the other spouse, based on the standard of living they experienced before the divorce. The U.S. average is $430-$1,000 a month. Times that by 12 months, times that by 17 years, and you come to $87,720 in child support alone - on the low end. Again, this payment goes up as your revenue increases and time with your child decreases. 
Savings: There are some ways to save money and plan for the child’s future. Think of these options when considering having children. First, there is a great write-off on your taxes for each child you have (Child Tax Credit). Next, when thinking of a college fund, try a 529 College Savings Plan (make sure you control how it’s invested). Then also be sure to check into the Uniform Gift to Minor Act and Uniform Transfer to Minors Act.
Note: CDC reports that as of 2017, the U.S. birthrate has declined to its lowest amount in 30 years and continues to decline. Think about it from this point of view: without increased birth rates, total tax revenue will decrease, social security won’t be funded, and tax rates will increase dramatically, to make up the difference, because the U.S. Government won’t stop spending, even with less revenue being generated.Note: The statistic on birthrate per woman is found here at: https://www.aaastateofplay.com/which-world-countries-have-the-most-and-least-children-per-family/#:~:text=Based%20on%20the%20data%20from,Middle%20East%20%26%20North%20Africa%3A%202.6