Pocket Your Dollars
Guest: Carrie Rocha
Carrie Rocha and her husband paid off $60,000 in credit card debt in less than 3 years. Back by popular demand, in this interview she shares strategies from her terrific new book Pocket Your Dollars. If you haven't heard Carrie's popular and inspiring advice you won't want to miss out. Her previous interview is one of my most downloaded podcasts! This episode aired live 1-21-2013.
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Excerpt from this interview:Gerri:
And so you ended up writing this book about your experience, and it’s really a book about mindset and attitude but you’re extremely honest in the book. You share a lot of the struggles and challenges that you and your husband Marco went through. So I wanted to talk about a couple of those. On page 37 of the book you have a section titled “Thank You Caribou.” Tell me about that, what that was about and what attitude did it reflect?Carrie:
I think that we had an attitude and I think that lots of others do, we tell ourselves, I deserve a treat. I’m not against people stopping to get coffee in the morning or treating themselves with things, but you can’t have those things derail you. And my husband struggles more with impulse shopping than what I do. He used to stop every morning for a mocha and a croissant, not good for our pocketbook or his waistline in fact, either one. And that’s like a $20 a week habit. That’s $80 a month and we just had to decide and build it into our financial plans because I didn’t want World War III where - you know, “don’t do it, don’t do it”, and he would do it anyway and we would just argue about it. So fine, call it what it is and build it into the plan.
Well unannounced to me, he decided to start setting those $20 bills aside and so he tucked them into an envelope. And then one Friday night, he’s also very spontaneous, he said, “Let’s go overnight somewhere.” We live in Northern Minnesota, it’s beautiful, a lot of forests and lakes. “Let’s go North.”
I’m very structured. (I’m saying), no, that derails me and that’s an expense we haven’t planned for. And he’s like let’s use these $20 bills that I’ve been setting aside. So he took out $80, I went on the internet, found a cabin, we went up North and just enjoyed a wonderful little getaway with this money. The next day we wake up and I’m sitting quietly reading, and he comes in the room and he starts dancing around. “Thank you Caribou! Thank you Caribou!” That’s the coffee shop where he used to get his mocha and his croissants.
We started dancing around because it finally was real. We talked how many times: $80 a month, if you gave this up what could we use that money? And all of that was theoretical but suddenly he experienced kind of the compounded value. Wait, if I’m willing to forego that, I can get something I enjoy a lot more that has more lasting value into my relationships, in my life. That was really a turning point. So we decided, let’s not go to this “I deserve it mindset” and instead tell ourselves, “I worked too hard for my money to let it leave out of my life on things that don’t matter.”Gerri:
I love that and I like the way you describe it. If we try to restrict everything, we’re going to rebel against it. It’s hard to do over the long term but if you replace it with a positive approach, then it’s much easier to be successful over the long run.
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