Original subtitles

[MUSIC PLAYING]

My name is Miracle McKinney.

I'm 28 years old.

And I live in Los Angeles, California.

I grew up in Takoma Park, Maryland.

Unfortunately, my mother struggled with the drug

addiction all my life, which caused

my grandmother to raise me.

I had a great upbringing.

My grandmother pretty much instilled in me

an awesome value to really live by.

And that's, sticking to my guns shows that I

can make all my dreams happen.

[VIOLIN PLAYING]

I've been playing the violin for about 19 years.

[VIOLIN PLAYING]

My ultimate goal is to be able to travel the world, perform,

and to transform my passion for playing

the violin into a career.

Only problem is I'm broke.

DAN ROSENZWEIG: 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 Rosenzweig 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.

--who are drowning in extreme debt--

How many credit cards?

10, 11, 12.

12.

--to build a life of financial independence.

I just want to get out of debt.

And I want your help.

When the world is pushing down on you, it's very hard.

This is an economic crisis of epic proportions--

I don't use that much.

--and we have to fix it.

No, come on.

Ahh.

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 ROSENZWEIG: This is Going From Broke.

[MUSIC PLAYING]

Another day, another dollar, somebody owes.

DANETHA DOE: Absolutely.

All right where are we off to today?

Who we seeing?

DANETHA DOE: We're off to see Miracle.

She's a 28-year-old media planner here in Los Angeles.

Great.

She's a violinist.

She wants to pursue a career in music.

She's got a lot of passions.

How much is her debt?

Her student loans are at $74,000.

And right now she's not making any payments,

which is a $1,000 per month.

I think she's hit her breaking point.

In fact, she booked a trip to Asia.

This is what happens.

People reach a breaking point with debt,

and they just say, I can't get ahead of it,

I might as well say, the hell with it.

Got to help her off that ledge.

DANETHA DOE: Let's do this.

[MUSIC PLAYING]

Thanks again for meeting with us.

Absolutely.

I'm glad to have you.

Tell us a little bit about you.

Absolutely, I grew up in the DMV area,

raised my whole life by my grandmother.

And she just instilled with me the idea

of being very independent and making sure

that your financial resources weren't a hindrance to what you

wanted to do in life.

Starting out of high school and going into college,

I was working full time.

So you were working full time when you were going to school.

MIRACLE MCKINNEY: Yes, straight out of high school.

And then my sophomore year while I

was in school, my grandmother she had suffered a stroke,

which left her incapacitated.

Unfortunately, there weren't really any other family

members to help out.

So I stepped up to the plate, becoming her power of attorney.

I had to spend a lot of time and a lot of resources

while I was in school.

I kind of was forced into that position.

So you know, I felt alone.

I felt abandoned.

You know, when you grow up, you think that your family

will have your back.

And then you realize, well, you know, you're an adult.

And sometimes that means you have

to be there for other people.

So at 20 years old, I'm having to battle the lawyers,

pay her rent, while still working full time.

Wow.

Everything in your personal life,

you have handled magnificently.

I don't think anybody could have hoped for a better

family member than you.

Flip side of that is with all the work that you did there,

it seems as if you chose not to do any of that for yourself.

I went from literally carefree,

I will say that I didn't exactly save my money,

even though I was still taking out loans to pay my tuition.

I still--

DAN ROSENZWEIG: And you weren't paying back the loan?

No, not at the time.

So in other words, you were-- you were earning good dough,

but you were spending it.

Correct.

You had money.

You had a lot of money at 18 years old,

more than most 18-year-olds because of your own hard work.

And you spent it.

So you didn't save for a rainy day.

Than the rainy day came pretty quickly, two years

into your college experience.

What are your goals?

To eventually make money playing

the violin across the world.

But yet, you know, there's a lot of financial burdens

that are blocking me.

And that would stop me from the progress

that I would need to make.

What was the block here?

What was the denial?

Well, I mean these accounts, though they weren't

exactly straightforward.

I really didn't get much information.

And at graduation, they told us as we were lining up,

you can't walk unless you fill out this form.

And what it was, is you had to pretty much sign off

that you agree to the terms and conditions

of your student loans.

On mine, it said $80,000.

And with interest, I would be paying roughly $900

and something a month.

And I was like, there's no way.

There's no way that I could actually live, take care

of my family, for that matter.

Many things that drive me crazy about the system.

Mostly, it's not designed for the student.

There's better plans.

And the challenge, the thing that drives me crazy is here

are lots of people in positions of authority,

who could have explained it to you,

to rob you of your graduation day just seems--

what word would you use?

I mean it just makes me angry.

Unfortunately, many of the loans given to students,

even the ones from schools or the government,

are predatory in nature.

That's the way the system is today.

We can't fix that right now.

So we have to work with Miracle and others

to understand how to cut their budgets,

so they don't fall into the predatory trap,

once they've signed it.

So maybe this is a good time to go get your paperwork

and see what we can find.

All right.

OK.

So I have all the paperwork here for you.

Including tax forms.

Yes.

Let's go over your numbers, so we can get a clear picture

of your debt to income ratio.

Right now between her spending and her growing student loan

debt, Miracle is spending $5,000 every month.

But she's only bringing in $3,600,

which means she's adding $1,400 to her debt every month.

And that's before interest is added.

So it's actually worse than that.

So what did you learn about yourself?

There are things that I could adjust that I'm realizing

that I've kind of just shrugged off, like oh, it's a necessity,

when it's not.

Well, some of the things that I do prioritize

is my hair, apparently.

You know, looking at that bank statement--

I would do anything to have a high hair bill.

There are options for that.

There are options for that.

OK, but I'm going to save my money.

Yes, exactly, that's the difference.

You have to make the choices from this day forward

that are going to support the ambitions

and the dreams and the goals that you

articulated that you want.

Absolutely.

All right.

There are some areas that we can look into

to help you get back on the path of being able to pay

down your student loans.

OK.

What you can look into is a refinancing.

Hopefully, we can get your interest rate down,

so that your monthly payment is a little bit more manageable

than the $1,000 per month.

OK.

When you refinance your loan, you're

able to reduce the amount of interest

on the total loan amount that you owe.

You're also able to reduce the amount of money

that you're paying each and every month.

So we're going to come back and visit with you.

But you're going to have to reduce at least $500 to start.

OK.

Finding opportunities to cut, especially when you don't think

you're spending that much is always difficult. First,

we suggest that they look at the items

that even though they consider to be important,

that they're not urgent.

So in Miracle's case, she really wanted

to make this trip to Asia.

But maybe it's not the best decision for her right now.

There's only a few ways to do it-- reduce your expenses,

increase your income, or both.

How are you going to feel if we cancel the trip?

[MUSIC PLAYING]

There's only a few ways to do it-- reduce your expenses,

increase your income, or both.

How are you going to feel if we cancel the trip?

Definitely disappointed.

This-- this trip--

this trip in particular was one that I really

want to do because on my dad's side,

my sister who's half Japanese.

I probably knew them for about a year, just

in and out of my life.

And so recently we had connected on Instagram

and on social media.

So I need to make a visit.

In the scheme of things, you're

not being irresponsible at all.

I totally get what you had to do for your family

as being unfair.

It doesn't give you the freedom to make bad choices.

If you're going to go on this trip,

I suggest we find the money first on top of reducing

your monthly expenses.

Am I being fair?

You're definitely being fair.

It's just it hurts to hear it, you know.

I'm feeling like I'm being blocked

from doing things that I want.

I know that the changes are necessary.

It just feels like I'm giving up a part of my life

again, um, kind of resurfacing the same feelings

that I had before when I felt like I was trapped.

This trip is obviously really important to Miracle.

And I completely understand.

She wants to reconnect with a family member,

which is really important.

And hopefully, this will be an incentive for her to cut back

on her spending, so that she's not

going to go further into debt in order to make this trip happen.

So we're going to look at reducing spending.

We're going to be looking at refinancing options

and what that means.

We're going to be looking at potential ways for you

to increase your income.

Do you have questions for us?

No.

I just gotta put in the work.

Thank you so much.

Thank you, really great to meet you.

DANETHA DOE: Absolutely. - Thank you.

[MUSIC PLAYING]

Last week I bought the new Rihanna lip gloss.

But you know, I got to save some money.

So the best way to do that is to get another version.

I'm so upset right now.

I'm really been trying hard to save money.

And of course, I have one of those emergency moments,

where it looks like I have to get a new refrigerator.

So I had to throw out everything.

[MUSIC PLAYING]

I applied for a loan reducing the amount

owed on my student loan debt.

It's a rigorous process in terms of verification.

I'm about to check right now, log into the system

and see what it says, what my new payment amount is.

I'm kind of nervous.

But you never know until you just put it out there.

I'd rather them tell me that I'm denied, than not try at all.

Oh my, goodness.

Right now, with everything being approved,

my next payment for November is $0.

It literally says $0.

The income based repayment plan

is a great option, if someone finds themselves between a rock

and a hard place.

And we've all been there where cash is really tight.

Keep in mind that the interest is still

accruing on that principle.

I got approved for income based payments.

Ah, ah, ah.

[MUSIC PLAYING]

I am super excited about Miracle's

amazing talent as a violinist.

We're going to work together, so that she

can make this passion something that she can monetize.

All right, so your business plan.

What I really want us to focus now on is how are we

going to bring in more income?

We'll want to look at your pricing and packaging.

Well, I don't really have much of a package right now.

Either I'm doing it for free or like super

below my normal rate.

I want us to set a minimum for you $1,000 for any gig.

You're classically trained.

You've been doing this for years.

You're incredibly talented.

There's no reason why you show up

anywhere for less than $1,000.

I know what you're saying is right

but it's just like, you get embarrassed to even

say that, you know, like--

But you'll have to do what I had to do,

is just say over and over and over again in the mirror.

Your net worth is directly tied to your self worth.

I hear this often, especially with women.

We're taught to just be kind and to just go with the flow,

not to be assertive.

However, it is really important to work on your self esteem

and confidence when it comes to charging your worth,

so that you're able to do what you love, make money doing it,

and create the life that you really want to lead.

So financial goals, you want to eight gigs per month.

Yep

Your goal then--

wouldn't that be amazing?

That would be crazy.

How much is that in a year?

That would be $96,000--

Come on.

--which is more than what you're making

at your full time.

It is.

What's crazy is like looking at the gigs,

that's completely doable.

But to see it come-- like to come

out to 96 a year is just like--

I don't know, I've never looked at it this way.

It's very tangible.

Like, this has me excited.

- Yay. - Yeah.

Awesome.

[MUSIC PLAYING]

You don't have to quit your day job to pursue your passions.

If you're a singer or a musician,

if you're good at writing or building things,

you can turn any of those passions into a side job,

so that you are able to pursue your passions while also

being financially responsible.

[VIOLIN PLAYING]

[CLAPPING]

DAN ROSENZWEIG: That was magnificent.

Thank you.

I'm definitely nervous to meet with Janet.

I have made a lot of progress.

But you really don't know until you hear it from the experts.

So catch us up.

Ah, um, well, first things first.

The next day after our conversation,

I called the student loan company.

Yes.

What I did is I ended up choosing to apply

for income based repayments.

Right.

Which basically means that you pay

as a percentage of your income.

So if you're not earning income, you don't pay.

Correct.

I was actually below the threshold, which qualified me

for $0 monthly payment.

Not forever.

Not forever.

My concern is we start to live a life as if those payments

aren't part of our future.

I definitely want to be in a position

because I'm trying to--

I'm trying to make millions, you know.

OK, calm down on making millions.

Right now we have to get into what's practical.

How much did we suggest that she cut?

500.

Did you find that?

So in terms of the rest, I haven't been keeping a diary.

It was one of the assignments.

Why haven't you done it?

What's preventing you from?

It's not time.

I just didn't feel that it was necessary.

OK, how much money did you spend this month?

This month in what category, specifically?

In total?

How much income did we bring in?

And how much did we spend?

And on what did we spend it?

The actual number-- you want me to go through everything.

You said, you're aware of it.

Yeah.

When it comes to money, it's important to actually

track your activities.

How much they are, what you spend them on,

what the interest is, when they're due,

will help you take control of your life

and get into a better position to have financial freedom.

We're here to make sure you're on track.

You don't have to do anything you don't want to do.

Correct.

[MUSIC PLAYING]

If you've got federal student loans

and you're struggling to make payments like Miracle,

an income driven repayment plan may be a good option.

They cap your payments at 10% to 15% of your salary.

That may be a lot more affordable

than what you're paying now.

But rather than a 10 year payoff,

these are going to stretch your term

out to 20, sometimes 25 years.

If you still have debt at the end of that period,

it may be forgiven.

To figure out what your payments would look like

use the repayment estimator at StudentLoans.Gov.

[MUSIC PLAYING]

How much do we spend and on what did we spend it?

You want me to go through everything?

You said you're aware of it.

Yeah.

You don't have to do anything you don't want to do.

Correct.

Right.

But we also can't help you, if we're

just coming in and finding out, no everything's fine.

Miracle's a very smart young lady.

But she did get herself in trouble.

And she's got a little bit of a streak in her that says,

I'm going to do this my way.

It's your life, do what you want.

But if you want us to be part of it,

then you've got to be able to show what you've done,

not just say what you've done.

What you've been doing is great.

We're saying document it, because that's the only way

we can know what it adds up to.

Is that fair?

Nah, absolutely.

So let's get to the emotional one, the trip you're planning.

Tell us about what you're thinking.

I mean ideally, in a perfect world,

you know if there is a way that I can offset the cost, do

a gig, anything, I think that that would be a smart choice

and it would make the decision a lot more clearer for me.

When we first met, it was like I deserve this trip

and I need this trip.

And those are probably true statements.

But if there is a way for you to finance it using Danetha's

business strategies, then go for it,

because there's so much to it, your joy,

a little bit of celebration for everything

you've been able to accomplish at such a young age.

[MUSIC PLAYING]

Since meeting with Dan and Danetha the last week

I've been doing a lot of homework.

I have reached out to a few producers

and I was able to get booked.

[MUSIC PLAYING]

It just shows you just really putting your best foot forward,

anything could happen.

The first gig I did was a retirement event.

Someone saw that video and then contacted

me to do a charity event.

At that event, I actually saw a producer.

And he booked me to do a studio session.

I'm ecstatic.

[MUSIC PLAYING]

Hey, Miracle.

Oh, my goodness, it's great to see you.

And now let's get caught up.

Yes, let's do it.

All right, beautiful.

We have a final check in.

And I've been making so much progress this week.

I can't wait to share all the great news with them.

So I think we wanted to just sort of jump right in.

So it was if you're going to go on the trip,

did you book a gig?

Any luck on that?

Well, I met your challenge head on.

OK.

Head on.

I actually did a studio session.

Amazing.

Yep.

And did that help you pay for the trip?

Yes, completely, like--

Completely pay for the trip.

Paid in full.

And how do you feel about yourself?

I feel confident.

I believe in myself.

And I know that anything that I put my mind to,

I can make it happen.

You not fighting me on it.

We going to fight.

It's OK.

We going to fight.

It's OK.

So on the numbers, we wanted to reduce at least 500.

Was any of that successful?

Oh, my.

Oh, and classy too.

Look at that.

There's numbers and labels and totals.

I just cut back on my beauty spending, also my food

by doing my shopping at the grocery store.

And then over the course of the last week,

I did a couple of gigs.

And I actually was booked again for tonight here.

Fantastic.

Well we would be thrilled to see you play.

DANETHA DOE: Miracle cut back on her food

and beauty care purchases.

And she put several paid gigs this month.

Her expenses dropped to $3,500.

And her income rose to $5,600, which

leaves Miracle $2,100 to put towards her upcoming trip.

[VIOLIN PLAYING]

[APPLAUSE]

Throughout this process, I've changed a great deal.

The Miracle at the beginning of this process

was defeated, overwhelmed, really broken

by her experiences in life.

The Miracle that you see today stands

before you proud and empowered and really grateful to be here

and most importantly, driven to make the changes

that I want to see in life.

[MUSIC PLAYING]

In this episode Miracle learns how

to make money doing what you love,

with is a little creativity.

Visit GoingFromBroke.Info to learn more.

[MUSIC PLAYING]

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