All language subtitles for Going From Broke s01e02 Responsibility Over Payment.eng

[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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