Original subtitles

[MUSIC PLAYING]

ALLIE BROWN: My name is Allie Brown.

I am 26 years old, and I live in Irvine, California.

I'm definitely an Orange County girl.

I like to live the good life.

I love laying out, manicures, spray tans, hair done,

the whole nine yards.

I treat myself pretty good.

Most of my money is spent between traveling and shopping.

So I'm in New York City, off 42nd and Broadway.

Traveling could be anywhere from $500 to a couple thousand

dollars a month, depending on the trip,

and depending if I took a private jet or not.

That about sums it up.

I like to live the good life.

Only problem is, I'm broke.

DAN ROSENSWEIG: Here are the facts.

The numbers are massive.

44 million people have borrowed over $1.5 trillion

in student loan debt, and it doesn't end there.

My name is Dan Rosensweig, and I'm

the CEO of the multi-billion dollar company Chegg.

This is my mission.

With the help of my financial expert, Danetha Doe,

we're going to help young people--

The walls are closing in?

Yeah.

DAN ROSENSWEIG: --who are drowning in extreme debt--

How many credit cards?

10, 11, 12, 12.

DAN ROSENSWEIG: --to build a life of financial independence.

I just want to get out of debt, and I want your help.

(CRYING) When the world is pushing down on you,

it's very hard.

DAN ROSENSWEIG: This is an economic crisis

of epic proportions.

I don't use that much.

DAN ROSENSWEIG: And we have to fix it.

No, come on!

[SCREAMING]

DAN ROSENSWEIG: They're going to hate it.

But when we're done, they're going to be on the road

to financial freedom.

Do you feel good about what we've done so far?

I do.

Thank you.

DAN ROSENSWEIG: This is Going From Broke.

[MUSIC PLAYING]

Well, another day, another dollar somebody owes.

Absolutely

DAN ROSENSWEIG: So time to get to work.

Who are we seeing today?

We are off to see Allie.

She's a 26-year-old marketing manager, and ooh, goodness,

you are going to have a field day with her.

DAN ROSENSWEIG: Oh, really?

DANETHA DOE: I mean, Allie is someone

that is just spending in order to portray

this amazing Instagram life.

Oh no.

ALLIE BROWN: I just got back from Vegas yesterday.

It was just for fun.

I love Vegas.

DANETHA DOE: Hey, Allison.

ALLIE BROWN: Hello.

How's it going?

Good, how are you doing?

Good.

I'm Danetha.

Nice to meet you.

Allison, I'm Dan.

Hi, nice to meet you.

I cannot believe I'm meeting somebody

who only has time to meet us while

they're getting a pedicure.

OK with you if we take a seat?

Absolutely.

All right, thanks.

That would be great.

I'm going to leave my shoes on, but--

You don't want a pedicure?

I don't have a clue.

[LAUGHTER]

And I'm likely going to keep it that way.

OK, fair enough.

So what caused you to call us?

Well, I just love shopping.

And I think events in my life have brought me

to a point where I'm struggling a little bit with getting

my head above the water.

Well, you set yourself up magnificently.

You went to a good school.

You got a degree.

It should be great.

It should be.

I like to think that it is.

Well, it isn't.

Allie is one of those cases where, on paper, she

initially did everything right.

She only borrowed $20,000.

She got her degree.

She has a job paying her $60,000 a year.

And then she blew up.

You recently had some plastic surgery done?

Oh yeah.

It was a Brazilian butt lift.

OK.

[INTERPOSING VOICES]

I'm a 57-year-old man, so I'm going to look on the internet

and find out what means.

OK.

You took out a loan to have cosmetic surgery?

Yes.

Yes, I did.

So the goal is to look rich on Instagram?

ALLIE BROWN: Maybe.

What does it really make you feel like when

you see what it is you posted?

I think I look pretty good.

Social media is kind of my jam.

I love pictures, I love capturing moments.

And I'm a marketing manager, so that really is my job,

is social media marketing.

I probably spend a good portion of my day on social media.

So you know, I check probably every five to 10 minutes

18 hours a day.

I mean, I don't think that's terrible or anything, right?

I mean, who doesn't check social media all the time?

You spent how much this weekend?

About $1,000.

I went to Vegas.

How did you get there?

I took a jet, a private jet.

So you could say it was a good weekend.

Well, I don't know if it was a good weekend.

I can say that going to Vegas two days before your meeting

with people you called because you

believe you have a problem--

if that's not indicative of the challenge

that we're up against, I don't know what is.

I think it's time we went down and went through the numbers

together where you got that reality check that said, what

was I thinking when I went to Las Vegas

this weekend when I'm flat broke,

and don't want this for myself?

You ready to do the work?

I'm ready.

DAN ROSENSWEIG: You sure?

I'm positive.

DAN ROSENSWEIG: Let's go to your house and find out.

ALLIE BROWN: OK. - All right.

So maybe we can walk through so you really see.

And what will be interesting is, as you

go through these expenses, see which ones you're

willing to cut out or down.

OK.

And let's start with the priorities,

what you have to cover.

How much is your rent?

So my portion of the rent is $1,500.

OK, what percentage of your income is that a month?

1.7.

It's 50%.

Or, I'm sorry.

Yeah, 50%.

[INTERPOSING VOICES]

It really is 50%.

Yeah, it really is.

Yes.

Oops.

How much do you now spend on food per month?

And be honest.

Daily?

Probably $50.

$50 every day?

Every day.

That is--

Food delivery services is my main reason why.

Just convenient.

Laziness?

Maybe.

DAN ROSENSWEIG: Maybe?

I mean, look, here are the facts.

This is an unemotional math problem.

Next dollar, you're in deficit.

Next are your debt repayments.

Let's walk through each payment you

have to make per month, starting with the plastic surgery

payment.

OK, plastic surgery is $400 a month.

OK.

DAN ROSENSWEIG: For how long?

The next 2 and 1/2 years.

DANETHA DOE: When I calculated it at 28%,

it's another five years that you'll be paying

off that plastic surgery loan.

Really?

Yeah.

By staying with the $400 minimum payment each month,

you'll end up accruing an additional $10,000 in interest,

and taking five years to pay that off.

That interest is ridiculously high.

Yeah.

So instead of $16,000, you're borrowing $26,000.

When we're talking about the figures of me spending

on my surgery, it scares me.

I wish I could go back in time and not do it.

And I'd be willing to give up this beautiful butt.

I do regret doing it, and that sucks.

It sucks to regret.

DANETHA DOE: When you account for Allie's food

and rents for the month, she's already in the red.

But when you add in her plastic surgery

loan, and travel, and beauty care,

her expenses are $5,400 every month.

This is extremely troublesome, because she's only

bringing in $3,100 every month.

So she's adding $2,300 every month in debt before interest.

With all the high interest debts,

it's actually a lot worse than that.

Anything else that we don't know about that you're spending

regularly each month on?

My gym membership, $175.

How often do you go?

Pretty often.

But I have a gym at my complex, so there's really no reason.

So why did we join one?

They have a wet and dry sauna.

They have mint in their towels too.

Do you hear yourself?

Yeah.

Well, I mean-- yeah, I guess.

It's really up to you.

But I'm not coming back if we're holding

on to mint in the towel.

OK.

I'm just saying it.

I mean, I'll give you a piece of gum.

You can put it on top of the towel, it'll smell great.

DAN ROSENSWEIG: The fact that she was spending $2,000 a year

to go to a gym when she had a gym in her building

that was part of her rent, simply because the towels smell

like mint, was incredible.

If you called your mom right now and told her all this,

what might she say to you?

My mom doesn't really put blame on me.

She allows me to pretty much do what I want.

And if she gives me that $1,000 a month,

and I still say, I'm still sinking

a little bit this month, Mom, she'll

just buy everything for me.

She may be an incredibly loving mom.

ALLIE BROWN: Yeah.

DAN ROSENSWEIG: But does she understand that in four years,

you're going to owe something close to half a million dollars

in debt?

That would take some talking to for her.

Because she always takes the benefit of the doubt,

and just assumes I'm just exaggerating,

or it's not that big of a deal.

Mom, she is not exaggerating.

It is a big deal.

I think you need to call her.

Because I think if we're going to have follow up

of this conversation, part of it is going to be,

does she understand she's enabling a life

that's making you unhappy?

I don't know if I want to call my mom.

Why are you afraid to call Mom?

I don't-- (CRYING) I just feel like I take advantage of her.

And she's getting older, and I don't want her to be even

more stressed out than I am.

You're using up all of her retirement savings?

I don't want to think of it like that.

I don't use that much.

DANETHA DOE: You are using a ton.

You are bankrupting her.

[MUSIC PLAYING]

DAN ROSENSWEIG: If you called your mom right now

and told her all this, what might she say to you?

(CRYING) I just feel like I take advantage of her.

And she is getting older, and I don't want her to be even

more stressed out than I am.

It's going to be an extremely difficult

conversation calling my mom.

I don't-- like, the thought of it right now is like,

literally like, breaking me.

I'm scared to admit to her that I'm not as successful

as she even thinks I am.

DAN ROSENSWEIG: Don't you think she's stressed out by the fact

that you're using up all of her retirement savings?

Allie's parents give her $1,000 a month.

And if she calls and says she's struggling with money,

they don't ask why, they just give her more.

That money is not coming back.

By the end of this year, you will owe them $62,000.

By the end of the year after, you're going

to owe them close to $80,000.

I know.

DAN ROSENSWEIG: And if you don't get this under control,

it's only going to get more.

I think we're going to move on to the portion

now where we're going to give you some homework.

OK.

So the homework for this next week is being on a budget.

ALLIE BROWN: OK.

You're allowed to spend $3,100 per month.

OK.

You have $3,100 to spend a month.

Between your rent and your food, you're broke.

Can you cook?

Yeah, I actually can cook.

DAN ROSENSWEIG: Guess what?

You're making lunch every day.

So we're going to make a journal.

DANETHA DOE: Every dollar that goes out, you need to track it.

OK.

Before we come back, we believe it's important

that you have a conversation with your mom,

and you admit what you've admitted to us.

I can do it.

Changing my spending is worth it.

Because I don't want to be the lady in a studio apartment

with three kids that's divorced because she spends all

of her husband's and her money, and you know,

picturing all these animals running around everywhere,

and like, everything is dirty, and I'm broke.

Like that's what I don't want.

Got it?

I think I got it.

Thank you for your time today.

ALLIE BROWN: Thank you so much. DANETHA DOE: Thank you.

DAN ROSENSWEIG: Very nice to meet you.

Nice meeting you.

Nice to meet you, Allie.

ALLIE BROWN: Part of my homework was

definitely saving money in the spa, beauty, aesthetics zone.

So I've been doing some face masks at home.

What I spend when I go out-- a micro dermabrasion

would be like, maybe 100 bucks.

During at home treatments-- like a little tube of it

is like 30 bucks.

And that last 20 treatments, at least.

Currently, my gym membership is on hold.

At home, I've been trying to work out.

I've been running.

I've been doing some lunges, a little bit of yoga.

Do you feel it like, stretching like in here?

Yes, I definitely feel that?

It's fun to do workouts with friends,

because it's a social activity.

So it's a lot of fun.

And then bring your knee in.

This is good for your belly.

I'm about to take a shower.

And in my shower is a perfect little substitute

for those eucalyptus-scented mint towels at Equinox

that I loved so much.

And that is eucalyptus and mint body wash.

So lately, I have been doing pretty well.

I quit my gym membership.

And I also got my skin care regimen set up at home.

I do have a little brunch date set with a couple

of my girlfriends today.

It is Saturday, so I don't think one meal out should

be too bad as far as my budget.

Hopefully not.

FRIEND: All right, cheers!

Oh, my god, so good.

That's amazing.

This is so good.

[INTERPOSING VOICES]

Wow, that is amazing!

Ooh!

That's my favorite right there.

FRIEND: Have you had oysters before?

FRIEND: No. ALLIE BROWN: Oh yeah.

FRIEND: Are they good?

FRIEND: Oysters?

FRIEND: Yes, I never had oysters.

ALLIE BROWN: Oh, oysters are life!

FRIEND: Oh my lord, this is so much stuff.

There's so much work to this.

FRIEND: It went really well.

ALLIE BROWN: OK.

FRIEND: Thank you.

Oh, this looks amazing!

So the bill was definitely more than I expected.

I spent almost $150.

That's about what my gym membership costs.

So right now, I am back at zero.

This is definitely a little harder than I

thought it was going to be.

DANETHA DOE: I'm meeting up with Allie

today to talk a little bit about her spending on eating out.

She's made a lot of progress.

She's cut back in other areas, but this

is one area where we can really make some improvements.

She hangs out with girlfriends.

She goes out to eat.

And that's something that a lot of us love to do.

However, it can really start to add up.

And so we're going to look at some options for her

to help cut back in that area.

All right.

Well, let's start off with getting some lettuce.

OK.

I think I'm going to go with the Romaine.

All right.

And this is--

That seems to be--

$1.79.

Yeah, that sounds like a good price.

Yeah--

$1.79, we can work with that.

Yes we can.

For millennials, it's really important to start eating in.

Because a lot of those costs around restaurants and eating

out really start to add up.

We're talking about tax, tip, your alcohol purchases.

And you want to be able to start saving money.

And the easiest way to do that is to start cooking at home.

Organic chicken.

That works.

Oh, only $5.99.

DANETHA DOE: Perfect!

In a typical night out, usually,

I'm going to spend about $120.

So it's definitely a benefit to go grocery shopping,

I'm beginning to realize.

All right.

Oh!

Oh, perfect!

Only $2.49.

Nice!

I love it.

ALLIE BROWN: It saves a heck of a lot of money.

It's definitely going to be a better solution for me

to start cooking more often.

- Hi. - Hi.

- How you doing? - Really good.

- Where would you like this? - I'll take that right there.

Thank you.

Yeah.

Your total bill today is $18.79.

Excellent!

- Great! - I know!

Oh my gosh.

That's pretty amazing.

(LAUGHING) Yeah.

I can pay with a $20 bill.

DANETHA DOE: That's incredible!

ALLIE BROWN: Oh my goodness.

It's a pretty big savings compared

to what I spend normally.

Thank you!

Thank you very much.

Thanks, have a good day.

Here you go.

ALLIE BROWN: Well, that was awesome.

DANETHA DOE: Yes, was so much fun.

[KNOCKING AT DOOR]

Hey, Jen!

Hi!

How are you?

I'm good.

Good to see you.

I know, nice to see you too.

Come on in.

Thank you for having me over.

Of course.

Today I am going to see my girlfriend, Jen,

and we're going to cook some tacos.

So I got some lettuce, some peppers, onions, chicken.

You got all of this for $20?

I got this for $20.

We're making tacos tonight instead

of going out like Taco Tuesday, you know, normally should be.

Because I'm really trying to save some money

and cook at home.

The cool thing is you're already seeing

a difference in your money.

I know!

It's like, totally crazy.

Like, I mean, as stupid as it sounds, like, you know,

it really does make a difference, like, just like,

lifestyle-wise.

I think it's nice to cook with a friend, just to have company,

you know?

Perfect, perfect.

Well, I think this is just about done.

We just need tortillas, and we're good to go.

Ooh!

Good job on the seasoning.

ALLIE BROWN: It is pretty good.

Definitely cheaper than eating out, that's for sure.

JEN: Yeah.

So I'm super nervous right now.

Feeling a lot of anxiety because I

am about to talk to my mother about my whole

financial situation, and really explain

to her what is going on.

So feeling the pressure right now, most definitely.

DANETHA DOE: If you're trying to figure out a financial path

forward, there are a lot of sites and options

out there for you.

One place we recommend starting is Grow By Acorns.

Grow is a great place to find financial advice, like how

to get started as an investor, how

to save up for your first home, how to find a new job.

Anything that has to do with becoming more

financially savvy, Grow has some really

great information around that.

Acorn helps you grow your knowledge so that you

can grow your potential.

Calling my mom has been a pretty

interesting and emotional experience.

My mom was at first a little bit dumbfounded by the reality

of my situation financially.

But after talking to her, she was

willing to help me in this journey

in getting myself back on track.

And she is actually not going to be giving me the allowance

that I have anymore.

So at this point now, I'm pretty much on my own.

Hey!

How are you?

I'm great, how are you?

I am good.

It's quite sunny.

ALLIE BROWN: It's been a month since I met with Dan

and Danetha the first time.

And I actually am feeling pretty good.

I was able to save some of the money

that I ended up with this month.

So I am confident that they will at least have

a positive reaction to that.

So you needed to reduce your spending by as much as $4,000

a month.

Catch us up.

I'm doing really well, actually.

Great.

And the biggest thing I think that has improved so far

is for the past 30 days, I haven't

used a credit card one time.

Has the bank called you and said, are you OK?

[LAUGHTER]

I think they think I fell off the face of the planet

at this point.

DAN ROSENSWEIG: How'd that feel?

ALLIE BROWN: It feels amazing.

Like, I can look at my credit card statement now

and I'm not like--

[GASPING]

I'm literally like, OK, it's less than it was.

And with my bank, I deposited $1,079 more than I took out.

So I'm in the plus this month.

DANETHA DOE: Fantastic.

One thing I definitely learned is--

I mean, I spend a lot of money.

But cutting back on beauty treatments,

and trying to do some DIY stuff myself

has made a huge improvement.

I don't have nails anymore.

Like, this is the first time in eight

years I probably haven't had them,

and it feels kind of nice.

I feel very positive about this situation.

And I feel like I've learned quite a bit about myself

that I didn't really necessarily want to realize before.

So you've made incredible amount of progress.

And clearly, you have done a lot in 30 days to be proud of.

This is somebody who was doing the wrong things

for the wrong reasons.

And now she's doing the right things for the right reasons

and feeling proud about it, which means that we

believe it can be sustainable.

And my optimism is much higher than I imagined it

would be when I first met her.

Enabler one is Mom.

Yeah.

Tell us about that conversation.

My words were basically, I don't

think that the $1,000 that you're giving me is helping.

How did she respond?

This month, she didn't give me any money.

And she ended up getting her landscaping done this month.

DAN ROSENSWEIG: It was like talking to a different person.

Her confidence was higher.

Her pride was very evident.

Congratulations.

ALLIE BROWN: Thank you.

I mean, wow!

I'm pretty excited.

DAN ROSENSWEIG: You can just see from the smile on your face

that you feel proud of what you've done,

and a little bit of relief that you were able to do it.

Yes, definitely.

I do feel relieved.

You know, when you guys gave me the reality

check with our first meet, it did scare me.

Like, I scared myself.

I am very hopeful for the future financially.

Just simply with income and expense,

I could live a nice life.

So it's an amazing feeling.

I am so proud of you for all the work

that you've done thus far.

And as you can see, living the good life

is that feeling of independence and feeling

empowered in the choices that you've made.

And that's what you've been doing this last month.

I feel awesome.

I want to keep doing it.

Congratulations on a great month.

Thank you.

Thanks.

[MUSIC PLAYING]

To see where Allie is now, and to get some information around

how to better manage your spending,

visit GoingFromBroke.info.

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