All language subtitles for Going From Broke s02e01.eng

My name is Isabel.

I'm 24 years old.

I have a really good job,
which I really enjoy.

I am making $65,000 a year.

I sell my art.

I do clown work for
birthday parties.

I'm a wrestling coach.

And I model on the side.

In a very perfect world, I
would be doing art full time.

I am the first person in
my family to go to college.

Family is my everything.

I do make more than
both of my parents.

And a big personal
goal of mine is

to be able to financially
help out my family

so they don't struggle as much.

I am seeing someone, and
he does live out of state.

If I want to see
him, I'm going to pay

for us to see each other.

I would really like to buy
a house in the Bay Area.

But unfortunately, I'm broke.

DAN ROSENSWEIG:
Here are the facts.

The numbers are massive.

Over 45 million people have
borrowed over $1.7 trillion

in student loans.

And the COVID-19
pandemic has only

made the situation more dire.

My name is Dan Rosensweig.

And I'm the CEO of the
multi-billion dollar company

Chegg.

This is my mission.

And with the help of my
financial expert, Tonya Rapley,

we're going to help people who
are drowning in extreme debt

build a life of
financial independence.

This is the year.

DAN ROSENSWEIG: It's
not going to be easy.

I can't do this.

DAN ROSENSWEIG: But
if they do the work,

they're going to go from
being in the red to becoming

the CEOs of their own lives.

This is "Going From Broke."

[MUSIC PLAYING]

Good morning, Tonya.

How are you?

Dan, I'm good.

How are you?

I am good.

It's been quite the year.

And we've got a
lot of work to do.

So Tonya, Isabel seems like
a remarkable young person.

Isabel-- she's awesome.

She's bright.

And she did get her
first well-paying job.

She's making decent money.

And she's not just
sitting at home.

This girl is hustling.

She's out here modeling.

She's a birthday party
clown face painter.

But at the trajectory
she's going,

she's not going to
get ahead financially.

You want to just walk me
through how much money she owes

and what you're
most worried about?

Isabel brings in a monthly net
income of approximately $4,000

and keeps her spending
about the same.

Although she has no
credit card debt,

she's paying off her mother's
huge Parent PLUS Loan

as well as her
own student loans.

We're looking at a
total of $196,000

of debt for one degree.

Wow.

That's a little frightening.

Parent PLUS Loan
generally gets backed

up by the only significant asset
they have, which is their home.

Now, it sounds great.

You're going to go to college.
You're going to get a degree.

You're going to
earn all this money.

You'll easily be
able to pay it off.

There's no risk.

Well, there's huge risk, since
40% of students do not pay back

or are behind on paying
back their loans.

Guess what happens if that
parent PLUS Loan doesn't get

paid?

Her parents will lose the house.

So I think it's time we
go to work with Isabel.

I'm ready to dig in.

Let's go do it.

[MUSIC PLAYING]

When I woke up this
morning, I was nervous.

I was excited.

It was like the feeling
you get when you're

about to go on your
first roller coaster

and you don't really know
what to expect out of it.

So my stomach was just
kind of like la, la, ugh.

Isabel, it is a thrill
to finally meet you.

Hi, Dan.

Hi, Tonya.

Hi, Isabel.

Nice to meet you.

Well, it's great to
meet you guys as well.

I'm very nervous.

I can promise you we have
your best interest at heart.

And we want to set
you up for success.

But I have some questions.

There's a lot of make up
purchases happening here.

You have a monthly
subscription, where you're

getting make up every month.

But then we're buying more
makeup on top of that.

The makeup that I
recently ordered is here.

We got a skin tint,
and we got a concealer.

What's happening here?

I just really like to shop.

And I really like makeup.

This has been such
a trendy foundation.

I really like buying makeup.

My current makeup stash lives
in this nine-drawer cabinet,

each drawer having
their own category.

But it's definitely a problem.

I'm happy we got
that out the way.

And I'm happy that
you admitted this.

Dan, I'm begging you.

Please don't take
away my makeup.

What is going
on with Domino's?

So I ordered some Domino's.

Growing up, my nickname
was actually Isa Pizza.

How much pizza
can one person eat?

I could eat pizza for
every meal, every day.

There was a day you
spent $52 at Domino's.

Please tell me that
wasn't just you.

I also will go to
my parents' house,

and I'll get pizza
for the family.

Oh, so we're buying rounds
of pizza for everybody.

We're treating,
it's not just you.

I feel pretty called
out with the pizza.

I didn't realize how much
pizza, I guess, I was ordering.

Every now and again
she is kind of generous

and will take the tab,
pick it up, probably

more times than she should.

We also have
someone else outside

of your immediate family that
you're also helping out, right?

Yeah, so I am seeing someone.

And there's been times
throughout our relationship

that if he needs to be spotted
money, I'm there for him.

And if I want him to come
to California to visit me

or if I want to go to
Washington to go visit him,

there's a good
chance I'm fronting

the money for the ticket.

Today's the day that
Ryan comes to town.

And I'm going to
pick him up in about

15 minutes from the airport.

Because in my checking account,
I have it, and he does it.

Isabel?

Dan?

I hate to be the
one to tell you this.

You don't have it.

You owe $200,000.

I feel like everybody treats
you like Bank of Isabel.

You're of no help to anybody
if you can't help yourself.

And you're never going to
get out of this if you think

your job is to solve
other people's problems

and you're forgetting
you owe $200,000.

Yeah.

We have an entire generation
that doesn't understand

that when you borrow
money and you spend it,

you're spending
someone else's money.

The single most important person
in your life has to be you.

And I already know
from being a parent,

your parents are
insanely proud of you.

You know what they want?

They don't want you to struggle
with what a lot of young people

struggle with, which
is the mental strain

of taking the responsibility
for everybody in your life.

And would you say they
were good decisions

for you or for somebody else?

No, I don't think
I've ever put myself

first in a lot of situations.

It's something I
definitely struggle to do.

Are you ready to
make the decisions

that will make you stronger--

Yeah.

--and actually make your
parents even more proud of you?

Definitely, I'm ready.

You want us to help you?

Please help me.

Well, that's what
we're here for, Isabel.

Are you OK with
answering a few more

questions about your expenses?

I am, yes.

You are also spending
on your art business.

How successful has
that business been?

Are you seeing a return
on that investment?

I probably only make a
couple hundred bucks a month.

Maybe on a good month
I'll break even.

I've been an artist
my entire life.

And I've had friends and
family going, oh my god.

I would buy that.

And so I decided
to launch a website

and put all my art out
there for people to buy--

prints of my paintings, custom
coasters, custom ornaments.

And that's kind of what
started my art business.

Whether it be your art
or be your other external

entertainment, these hobbies--

if you're willing to admit
that their break even at best,

they're probably really
losing you money.

So you have two choices--

stop them, or turn
them into a business.

And we're prepared to work
with you in actually making

your side hustle a real hustle.

OK.

So Tonya, why don't
you start with assigning

the homework on what to cut.

All right, Isabel.

So the first thing
I need for you to do

is write down every
single expense, at least

for the next couple of weeks.

No more makeup.

Like, let's cut that out.

Got it.

When I tallied it up,
there's about $1,100

in unnecessary
financial expenses

that you are
spending every month.

So I at least want to cut
that down by about 50%.

So I want you to save
an additional $500.

So Isabel, one of the things
that you said you wanted to do

was to help build
your own company.

Yeah.

So let's make you a business.

OK.

We're going to work with
a company called Inc File.

And Inc File is going to help
you to set up your corporation

so that when you earn money--

and you better earn money--

it goes from having fun to you
being a CEO of your own life

and your own business.

I'm excited.

I'm ready.

We're asking Isabel to
bring in an additional $500

a month with her artwork.

But then we're also asking
Isabel to reduce her expenses

by $500, which results
in an additional $1,000

that she could use
towards her debt.

What if you had
$12,000 more a year

to pay off your student debt?

That would feel like
there's actually a possibility

of paying off my debt.

Well, guess what?

We just found it.

But we can't support the
parents, support the boyfriend,

shop, eat a lot of pizza,
run two side hustles

and think we're going
to get out of this.

[MUSIC PLAYING]

When they talked
about everybody

using the Bank of
Isabel and everybody

using me for my money, it's
never been an easy conversation

to have because I don't
feel like my loved

ones are using me.

Talking about
my daughter makes

me emotional because I'm
so proud of everything

she's accomplished.

She's my world.

She is.

[MUSIC PLAYING]

It is time to go
to the grocery store

and stock up on some stuff
so that I don't have to think

about ordering any kind
of takeout or, you know,

Domino's pizza or anything.

I'm hungry right now.

And I'm craving pizza.

But I'm not going
to order Domino's.

I'm going to order any delivery.

In fact, I'm going to
make a pizza at home

and save some coin.

We're going to go
talk to my parents

and see what some ideas
could be with this art stuff.

Hi, Mom.

Hi, Dad.

Hi.

Hello.

I need to make $500.

Why don't you
ask Uncle Ray to do

a paint night at the
restaurant the way we did?

I doubt your Uncle Ray is going
to charge you to set up there.

But you never know.

Business is business.

So I think my parents
had some really good ideas.

I almost completely
forgot about paint nights.

I used to host those a lot.

And I have my uncle
with a restaurant.

So I think I'm going
to shoot him a message

and host a paint night.

I'm about to get started.

It's going to be
a set of coasters.

So they're going to have
me paint some pieces

inspired by famous artists.

Let's see how these turn out.

And that's one done.

Isabel, how are you?

I was definitely
a little overwhelmed

after our last meeting, but all
with good intentions behind it.

In the end, everybody's still
on my team and in my corner

like I expected them to be.

I think this is a good
time for us to discuss

your boundaries script.

In the absence of having
financial boundaries,

you become the
person that everyone

goes to, which means
they don't solve

their own financial problems.

A boundary script is a
gentle way of saying no.

You're stating why
you cannot help them,

that you would
like to help them,

but you can't because of what
your financial goals are.

OK.

So we're going to practice it.

Hey, Isabel.

I know that we're all getting
together this weekend.

Money is a little tight.

So do you think that you could
pay for the food for everyone

during our gathering?

I'm really excited for
all of us to get together,

but money's tight
for me as well.

So I don't think
spotting everybody

is really the best solution.

I've got some student loans
I'm trying to pay off.

So I think if everybody
just pays their own way,

it's probably the best bet.

OK.
All right.

Well, we'll figure it out.

Yeah, thanks for
running that by me.

I'm glad we talked about this.

See how it goes?

Yeah.

You're good at this already.

You just needed someone to
give you permission to do it.

Super excited to go have
dinner with the family,

and I'm not going
to pick up the tab.

Just wrapped up dinner.

Bill's here.

Who's paying?

I say we just split it.

I say that's fair.

Didn't pick up
the tab this time.

Dan, Tonya-- hope
your proud of me.

Isabel is doing great work.

She's doing the work,
and she's following

what we've asked her to do.

But I think she could use
a couple of additional tips

and tricks, so we're bringing
in Rachel Cruze to help her out.

Rachel has helped
thousands of people

take control of their debt
and their financial future.

Hi, Rachel.

Hi, Rachel.

So nice to meet you.

Hey, Isabel.

You as well.

Thank you so much
for being here for me.

So my first question for you
is, right now with the freeze

happening with
federal student loans,

I've been putting money
aside in my savings account

with the intention that I
will put this all into one

lump sum of a payment at
the end of the freeze.

So is that still
a good game plan?

I don't know what the--
the right path is here.

This is actually a great time
to start paying because what

happens is if you
start paying now,

you're paying on the
principal, where a lot

of people, when they're paying
their minimum student loan

payments, they're basically
just covering the interest.

They don't even really
get down to the principal.

And so right now is
a great opportunity.

So I would advise you to
do those monthly payments.

What's the smallest
loan that you have?

$1,985.

OK.

Almost $2,000.

And you can knock
that out, I bet

you, in the next month or two.

This is the debt snowball.

Just list out all of your debts,
smallest to largest, regardless

of the interest rates, paying
minimum payments on everything

and paying off that smallest
student loan first and working

your way down, just checking it
off the list or making a chart.

There's just something about
the progress that you make.

OK, that one's done.

OK, I can do this.

I'm telling you, the
34-year-old version of Isabel

is going to be hugging or want
to hug this-- this Isabel right

now because you are
setting yourself

up so well for the future.

Thank you so much.

The sad truth is
that if Isabel keeps

paying her usual
$600 monthly payments

on her Parent PLUS
Loan, she would

never actually pay it off.

The interest would accrue faster
than she could ever repay it.

If she can pay $1,200 a month,
she would pay the loan off

in 28 years with the interest
adding a whopping $200,000

onto the loan.

But if she can pay $2,000 a
month, she hits a sweet spot.

Isabel would pay
the loan off in 10

years at a total of $250,000,
saving her about $130,000

in interest.

That's why the artwork
is really important.

But how do you feel?

Nervous.

That's like half my income.

So that's a lot
of money to find.

I am on my way to
go pick up Ryan.

We are going to go to the
van Gogh museum tonight.

I got these tickets
a few months ago.

And I'm really,
really excited to go

see what this is all about.

So I spoke to my
uncle last night

about the possibility
of me using

his restaurant to use
as a venue to host

paint nights for people.

I got a paycheck
[MUTTERING] And he was

super on board with everything.

We started brainstorming
different ideas.

And I started crunching numbers.

And I realized that if I host
20 people a week at $40 a head,

with that money alone, I could
pay off my loans in six years.

Boom.

Oh my god.

Holy smokes.

My mind was blown at how
real this is becoming.

Isabel is really
stepping up her art game.

So we're introducing her to
Mike Nunez, who is the Chief

Communications
Officer at Inc File,

so she can incorporate and
actually build a real business.

Why we are here
is so that you can

focus on things like your art
and take all the tedious work

and put it aside.

Let us take care of
that on your behalf.

So there's a couple of
different types of corporations.

Almost everybody is
most likely going

to use what's called a
limited liability corporation.

All right.

So when you're
starting your business

and you go incfile.com, all
you got to do is click on Start

My business.

Now, the actual
state of California

charges $75 to actually
conduct the incorporation.

Of course, for
you, Isabel, we're

going to go ahead and get
you the platinum package.

And then you just
fill out some pretty

basic information
like your name,

email, your mailing address.

This is so cool.

When it's saving
you so much time.

Yeah.

So one question, what
tax breaks would someone

like me gain by having an LLC?

It's not necessarily
tax breaks.

If you have legitimate
expenses for your business,

you should write those off.

So for example, to create
one of your pieces of art,

if it costs you $5
for the materials

and you sell it for
$15, well, your profit

really is only that $10.

You shouldn't be taxed
on the entire amount.

Does that make sense?

Yeah.

The bigger benefit is
the liability protection.

You will have the
protection of the LLC

that they hired and paid to do
that versus Isabel the person.

You have this shield of
an LLC in front of you.

Thank you so much.

I really do appreciate this.

That was the coolest thing ever.

Inc File is going to help me
legitimize my art business.

And they're going to
make it so easy for me.

Oh, my god.

This flyer here is going
to be my forever flyer.

I am getting ready to
finally put out that I'm

doing weekly paint nights.

This is going to be
the painting that I

teach people how to paint.

This week's flyer
looks like this.

I'm working now to post
them on social media.

I'm really excited.

This is getting really real.

I'm hoping that the seats
will fill up really fast

and that it'll be
a great turnout.

It's Tuesday.

The event is Saturday.

And I've sold zero tickets.

It's really getting to me, but
still have a few more days, so.

Hopefully things pick up.

But I feel--

I feel like a failure right now.

Hi, Isabel.

I would like you to meet the
executive producer of our show

and your special
guest, Ashton Kutcher.

How doing?

Hi, I'm great.

How are you?

I'm great.

It's great to talk to you.

I think we should just
jump right into it.

It seemed that you
had some conversations

that you needed to have with
some people in your life.

And so I'm curious as to how
those conversations went.

They got a little
emotional sometimes.

But I feel like I set some
boundaries with people, both,

you know, my
boyfriend, my parents,

my friends, just
letting them know, hey,

I'm balling on a budget now.

I'm going to be aggressive with
these student loan payments.

And everyone was
so understanding.

And it was-- you know, it
went really well in the end.

You have that
first conversation.

And then over time,
it's really easy to--

for things to slip.

And I want you to know that from
everything I've seen about you

and learned about you,
that you are worth loving

for just being you.

And anybody that doesn't
see that is not seeing you.

Sometimes the best thing
that you can do to share love

with someone else
is help them find

a way to support themselves.

Absolutely.

And that was one
of my big goals.

Yeah.

Can you do something for me?

Sure.

Can you tell me all the ways
that you're worth being loved?

No, all the reasons.

I don't know why this
feels so hard, but OK.

I am kind.

Yeah, you are.

I am sweet.

I am down to Earth.

I am generous in many
ways besides financially.

I care about everybody.

My goal is to make
myself smile and make

somebody else smile every day.

You're authentic.

Would you mind if I
added something to that?

Sure.

You're also ambitious, which
is a very positive thing.

You're talented.

You have an
incredible work ethic.

Everything you articulated was
all the wonderful things you're

willing to do for others.

And you need to be
able to do for you.

And that's what
learning to say no is.

If I look at it from an
outsider's perspective,

I think I'm pretty cool.

I think I'm pretty
inspirational.

When I look at it--

ugh, man.

Every episode.

Internally, I look at
my flaws a lot more

than I look at my successes.

I look at what I'm
doing wrong in such

a negative light versus, how do
I use this to make me better?

I feel like I'm so far behind.

And I feel like I
haven't done anything.

So I'm 43-year-old Ashton.

And you inspire me.

So if 20-something-year-old
you can't inspire you,

we've got to make that shift.

You've done things
that I've never done.

I didn't graduate college.

I didn't come out of
college with a $180,000

Parent PLUS loan that I had
to figure out how to pay down.

I didn't do in my life
what you've already done.

And setting goals for
yourself, for your future self,

doesn't mean that your today
self isn't good enough.

Your today self is good enough.

Your today self--
you're climbing now.

Right.

So let's talk about
that side hustle.

What's the dream?

I think we know who you are.

I think you know who you are.

Now let's get into
what you want to do.

I'm an artist.

And I love painting.

I love sharing my art
with other people.

I love showing other
people that they

too can be an artist by teaching
them paint night events.

So my first public painting that
is actually happening tomorrow.

And I've shared on all of
my social media platforms,

both personal and I have
art social media platforms.

I've sold 5 tickets so
far for tomorrow's event.

OK, great.

So-- that's amazing.

I just want to say
how proud I am of you

doing all of your homework.

That was spectacular what
you've been able to accomplish

in just a few weeks.

But we've got to go.

Ashton, I want to thank you.

Thank you so much for your
time and everything, Ashton.

I really appreciate it.

Thank you.

Oh my gosh, I just
met Ashton Kutcher.

He wants me to know that I
should be inspired by myself

now today because
I struggle to think

of myself in such a positive
light like that a lot of times.

So to know that somebody
like Ashton Kutcher

is inspired by me is just.

Mom, Ashton said I inspire him.

MOM (ON PHONE): [INAUDIBLE]

So tonight is my
first paint event.

I am so excited, but I'm also
so nervous just because I

want everything to go well.

And I've always got, like, the
anxiety in the back of my head

that something is
going to go wrong

and we're going to
forget something.

We're going to go head out
to my uncle's restaurant,

get everything set up,
make sure everybody's

going to be able to
have a good view of me,

get all the drinks in place.

People should be showing
up in a couple of hours.

My goal for tonight is that
I remember the painting,

I teach well, and that people
want to come back and do

these events again and
bring people with them,

and just have a
good time tonight.

[MUSIC PLAYING]

I'm just holding it
at a horizontal angle,

and I'm literally just
dabbing it right in there.

During paint night, my dad
was doing chips and salsas.

Mom was on drinks.

She's running the cash box,
making sure drink tickets

are taken or cash is taken.

And it's a good time.

It was a family affair,
just like everything else

that we do.

You know, we coach as a family.

We run paint night as a family.

After you guys sign your
names, you guys are done.

You completed another
beautiful piece of art.

And I'm proud of each
and every one of you.

I'm proud of you.

Congratulations today.

Thank you.

You did good.

Job well done.

Thank you.

Keep it up.

I will.

You continue to amaze us.

Tonya, shockingly,
this is the first time

we've actually met in person.

It's insane.

Like, it's the
beauty of technology.

That is the beauty
of technology.

But it's super exciting to
do this with you in person

because we have Isabel today.

And she's our first.

She is.

Ta-da.

Hi, Isabel.

Hi, Dan.

Hi, Tonya.

Hi, Isabel.

You look great.

How are you?

Thank you.

I'm great.

How are you guys?

Well, I'm impressed that
your tattoos match your dress.

You know, you got to
coordinate everything.

You be you.

That's what-- that's what my
daughters say: you be you.

Isabel met our
challenge head on.

After a raise and bonus at work
and then making almost $800

at her art side hustle, her
income went up to over $5,400.

By creating boundaries
with loved ones

and not buying makeup,
she brought her expenses

down to $3,400, putting
over $2,000 in her pocket

this month.

Woo!

That is unbelievable.

It feels great, because
the 2,000 was the goal

to put towards my
loans every month to be

able to pay it off in 10 years.

And this just proved
it's literally

realistic and possible.

We want people to understand
that this is a journey.

It's not a one-time
thing, and it never ends.

This month has been an
absolute roller coaster.

I really thought when I first
called you guys that I was just

stuck in this neverending hole.

And now I see the outcome of it.

And I'm just so proud of myself.

And I'm like, this
is so realistic.

I can really get this
done in 10 years.

So if we were
grading this, I would

give you an A plus plus
plus plus plus because you--

And I run the
education company,

and I'd give you the same grade.

You have just blown--
you've done everything

we ask you to do and more.

So we're going to
gift you $1,000

to add to your savings
account to go ahead and give

you a little additional boost.

Oh my god, that's amazing.

Thank you.

So Isabel, first of all, yay.

Wonderful.

Congratulations.

I mean, honestly, what
a great role model

you are for others of any age.

There were also
some other things

that you needed to
take control over,

which is not being
Bank of Isabel.

When my boyfriend was
in town, we talked about--

for example, he's going
to go compete in Florida

next month with wrestling.

And I would really like
to go watch him compete,

but we had an honest
conversation of,

can I actually afford
to fly to Florida

and stay in Florida
for a few days?

And realistically, no.

I can't.

So we're not going
to do Florida.

He said, but I will
have money to fly

you out to visit me in June.

This is pivotal.

This is a shift in
your thought processes.

So congratulations.

Thank you guys so much.

I really couldn't have
done this without you guys.

I really can't thank you enough.

Thanks, Isabel.

Congratulations.

Thank you, guys.

I turned my hobby
into a side hustle.

I turned my side
hustle into a business.

I turned my business into
money that's going to go

pay off my student loan debt.

Isabel is so young, and
she's such a hard worker.

If she follows our advice,
I see a very bright

financial future for her.

I would love to see Isabel
educating others around her

and educating her peers.

I could start
looking into becoming

a homeowner by the time I'm 30.

That's insane.

If you're looking to build
or rebuild your financial life,

we've got tools and
resources to help.

For more on debt, student loans,
earning more, spending less,

and dozens of
other money topics,

go to chegg.com/GoingFromBroke.

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