Original subtitles

[MUSIC PLAYING]

ALANA HUNTER: My name is Alana.

I'm 24 years old.

And I live in West Hollywood, California.

I went to Pepperdine and graduated in 2017.

I love going out with my friends, cocktails and dinner,

shopping and spending money, wearing all the newest trends.

Like, living the good life.

I started a lifestyle YouTube channel,

and I'm really enjoying that, but the thing is I'm broke.

[MUSIC PLAYING]

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.

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.

Ahh!

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]

DAN ROSENSWEIG: Another day, another dollar somebody owes.

Where are we going today?

We are headed off to see Alana.

She's 24 years old, recent graduate

from Pepperdine University.

She got an awesome job working for this huge production

company right after school, but then

quit, because she wants to pursue a career

as a full-time YouTuber.

Seriously?

She must be in financially good shape,

because nobody would take that risk, would they?

Well, she has $75,000 in student loan debt.

So I would say she was not in a position,

financially, to take that risk.

Oh, you're going to love this.

Oh, there's more?

There's more.

She has started investing with what cash I don't know.

However, she decided to invest $3,500 in cryptocurrency.

Oh, no.

OK.

We have our work cut out for us.

She's living in a fantasy world of YouTube and cryptocurrency.

And we're going to have to force her to take an honest look

at the choices she's making.

Absolutely.

Hi.

Come on in.

Well, how are you?

I'm so good.

How are you?

Well.

It's great to finally meet you.

It's great to meet you guys too.

This whole discussion is going to be about trying to put you

on the right footing so that you have the life and the career

that you want.

So maybe it would be better for us to hear a little bit

from you about how you see your situation and what's your goal.

I think when I started college,

and I guess I was just sort of in the mindset of this school

is expensive, but I'll be able to pay it off

once I graduate and get a really good job.

Like, I'll pay it off in, like, a couple years.

So I never really thought that it would take that long

or would be so hard to save money.

Well, also, you had a great job, and you quit it.

Yeah, that's true.

That's a decision that you made,

and maybe it wasn't the right decision.

Yeah.

Right now, I am living off my savings, which I made when

I was working a corporate job.

But I knew I wanted to get into a more creative field.

I am a livestreamer and I'm a YouTuber.

Today, I'm going to be making guacamole from scratch.

Woo!

Oh, man.

That's spicy.

I do not want to go back to working 40 hours a week.

It was really exhausting.

But I went through that savings from my first job so, so fast.

I felt like I was spending money like toilet paper.

DAN ROSENSWEIG: This is all going to be about choices

and sacrifice.

And if you want to be an artist and creativity is your life,

there's nothing wrong with that.

However, you may have heard the phrase starving artist.

Yeah.

You ain't starving.

You're living a life as if you have already been successful.

And that is never going to lead you to the success

that you actually need and want.

I feel like if I don't make drastic changes to my life,

like, I'm going to be screwed.

So budgeting and figuring out how

much I have to actually live on will be really beneficial.

Well, do you even know overall what

your spending is for the month?

No, I don't.

These are kind of just averages of the last couple of months.

At least according to last month,

you spent $300 on laser hair removal, manicures, $400

on clothing.

Alana has $2,300 in monthly expenses,

including minimum payments on her credit

cards and student loan.

But her YouTube channel is only bringing

in $1,600 per month, which means she's adding

$700 in debt every month.

You're not only not paying down your loans,

but you're adding to it.

And you've actually put your parents at risk, because they

signed for this loan.

So if you don't pay it back, you realize that you

can't declare bankruptcy.

They'll take your parent's assets.

It's really scary

DAN ROSENSWEIG: Yeah, it is really scary.

And when you quit your job, did

you expect to immediately be able to replace

that income with YouTube?

Honestly, no.

So what are you thinking?

I understand you took your savings,

and you made an investment.

Yeah.

I had extra savings.

And I was still at my corporate job, so I felt--

First of all, you don't have extra savings.

And so I'm like, you know, I want to start

getting into investing.

And what was really hot at that time was cryptocurrency.

Why would you invest in something because it's hot?

I can get the CEO of Ripple on the phone with you right now.

And he'll tell you it's not for young people

to speculate on when they have $80,000 in debt.

I can completely appreciate and respect the fact

that a lot of young people don't know what to expect

or don't like their job.

But you've been out long enough to now

know what life really is about and to know

what your responsibilities are.

This is not about whether or not you

should be a YouTuber or not.

We're not making that judgment.

This is a difficult situation.

The good news is it can be solved

if you choose to solve it.

Look, you're going to have some homework.

First up, we're going to cut back your expenses

and make sure that the money that you do have coming in

is actually going to pay down your debt,

because right now you're not making any payment.

That is going to be $300 each month

to your student loans, another $100

to pay off your credit cards so that you're

not falling further into debt.

So already, we're looking at $400 each month.

That's one fourth of your income.

And that doesn't leave you a lot of wiggle room.

You can't go out.

Can't buy clothes.

Can't go to dinner.

All the things that you've listed

of where you spend your money.

I mean, that's how dire this is.

ALANA HUNTER: I just feel kind of overwhelmed, honestly,

because it's just cutting back on different things

like beauty treatments, shopping, going out to eat.

It's very, very, very, hard to hear.

DAN ROSENSWEIG: Have you thought about something

to supplement your income?

DANETHA DOE: You can find federal jobs.

You live in LA where there are opportunities

everywhere every day.

DAN ROSENSWEIG: And then we're going to sell some

of the assets that you have.

And even if they're worth less than you paid for them,

that's what we're going to do.

So whatever you get is money you can use to put yourself

on better financial footing.

So this is my closet.

Wow.

How much did you pay to assemble all of this?

I would say this whole closet is

probably worth around 10 grand.

All right.

So we've got $10,000.

When we come back, you're going to have

prioritized everything of value that you're willing to sell.

And put it into action.

So today was a tough day, I get the sense.

Yeah, it is.

DAN ROSENSWEIG: The good news is if you

follow the plan, a year from now,

you're going to feel great.

The bad news is today wasn't the hardest day.

It gets harder from here.

[MUSIC PLAYING]

It's been about two days since Dan and Danetha came

and talked to me and gave me advice

on ways I can start saving money.

You know, I do get paid to be a cooking livestreamer,

but I spend quite a lot on groceries.

The first thing I'm going to do is

I am going to go to the 99 cent store

to see what I can find for food and groceries.

So let's see what happens.

This whole bag of avocados is $1.99.

Can you believe that?

It's crazy.

Onions, $0.99.

So we just got back from the store.

In total, I spent $16.

And I also got my Halloween costume for $1.

This was definitely a bit of an impulse buy.

I've started looking for freelance work.

So I am going to be doing a seat-filler job

today for a TV talk show.

And it pays around $50.

So, you know, it's not that much,

but it's definitely a little bit.

So enough to cover my phone bill or some groceries or something.

It is going to be a closet clear out day.

I'm going to start looking in my closet,

finding things that I can sell to make money,

so I can start paying off my credit cards and student loans.

I'm still going through my closet, but as you can see,

I've pulled out a good amount of clothes.

So hopefully I can resell them.

It's definitely been tough, because I

haven't been able to go out, spend time with my friends.

Especially a night like tonight where

all my friends are out together, and I'm at home doing nothing.

You know, but it sucks, because all my friends are going

to be having fun without me.

But this is what it takes to pay off your debt.

[MUSIC PLAYING]

Today I'm going to be doing a yard sale.

I don't want to let Dan and Danetha down,

so I'm hoping to sell a lot of my clothes today.

Hopefully it goes well.

Hi.

ALANA HUNTER: Hi.

How are you?

I'm good. How are you doing?

I'm good.

Why are you getting rid of this?

It's so cute.

I know, but I need money.

These are cute too.

Thank you.

Let's see.

Awesome.

So what do you think for--

how much for all this?

I would say $45.

That's a little high for a garage sale.

What if I put this green dress back.

I know it's really nice.

How much would that take off?

$35.

All right.

I can do $35.

All right.

Let's do $35.

Great.

Thank you.

Awesome.

You drive a hard bargain, but there's some great pieces.

Thank you.

Enjoy the clothes.

I will.

Good luck on the rest of your garage sale.

ALANA HUNTER: I made $35.

Not much, but it's something.

[MUSIC PLAYING]

Alana.

Hi.

Good morning.

Last we spoke, we were going to try to get some cash

flow in by selling things.

We were going to look at jobs.

How did it go?

So from two freelance jobs I did, they were just

one-day gigs, I earned $300.

Which is wonderful.

That's $300 you didn't have.

With time that you did have.

Tell me a little bit about the clothing.

I still have a ton of clothing I need to get rid of.

How hard did you try?

And how much were we hoping to get out of that closet?

I don't know.

I'm not sure.

So we need to get more value out of those clothes.

Yes.

So today, we're going to take those bags,

we're going to go to stores, and we're going to sell them.

Hello.

Hello.

How are you?

Hi, baby.

Nice to meet you.

You are?

Alana.

Nice to meet you.

Alana, I'm Elizabeth.

The Paper Bag.

There's a lot of clothes in here that I really don't need.

So we're hoping you could help us out.

OK.

That's a nice sweater, but it's only $20.

Fair market value on that, you've

got to consider the fact that it would have gone on sale.

That means it probably would have

been reduced to as low as $10.

So then fair market value on a $10 item

is usually about a third of that.

So the maximum you could probably charge is $5.

Don't worry about t-shirts, because t-shirts honestly don't

have any real resale value.

Polyester-- we need to teach you about better fabrics.

You've got so many pieces.

You're not taking good care of those.

That's a moth hole.

Yeah.

You already got schooled on the fact

that the best you're going to get

is one seventh of the value.

And we don't have very much leverage in negotiation,

but it doesn't mean you shouldn't try.

Learning to negotiate is a critical skill in business

and in life, because you need to be

able to learn what it takes to get what

you need to get the job done.

It's about storytelling.

It's about convincing people to take

an action they wouldn't otherwise take,

but you need them to make.

OK.

I'm thinking to make an offer of $300 for all of this.

Well, I appreciate your offer so much.

Thank you so much.

But I probably would not want to let

go of these, because these themselves

should be at least $300.

No, I would never buy those pieces

for that amount of money.

So if you take those out, which are the two best

pieces out of all this, then I might come down to around $200.

She was willing to give you $300 originally

for the pile with the good items in it.

We either sell it, we go home, and we have

to go sell it some other way.

What do you want to do?

So I think the lowest I could go on this stuff

will probably be $275.

OK.

OK, so $275 is where we're at.

So sure.

Thank you very much.

You're welcome.

Thank you.

All right.

ALANA HUNTER: In the process of negotiating,

I definitely learned I am pretty good at standing my ground.

So I'm going to go off and try to sell

those two items on my own.

I think I can get way more for it.

You made really good progress today.

The lesson is you can stand your ground.

The lesson is you can negotiate.

So you should be proud of yourself.

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

I do.

All right.

So we've got more work to do.

We're not done.

We're just getting started.

ALANA HUNTER: Yeah, I know.

DAN ROSENSWEIG: All right.

Credit cards are a very expensive type of loan.

This is not your money.

You know, your credit limit may be high,

but it's not anything to do with your net worth.

In fact, it's just an expensive piece of debt.

Every time you swipe to buy that pizza,

those pair of shoes, those necklaces,

it's basically a loan.

That $10 pizza can quickly escalate

with late fees and high interest to turning into a $90 dollar.

[MUSIC PLAYING]

I've definitely been working on trying to be

more financially responsible.

And that's allowed me to focus more on my YouTube channel.

And there's definitely ways that I think I could improve it.

So Dan set me up with Amy to meet

up today and talk about Adobe, so I'm

really excited about that.

So maybe we could take a look at some of your content.

Yeah.

I'm Amy Goldstein.

I work for Adobe.

I do social media strategy for Creative Cloud.

I work really closely with our creative communities

and with online creators.

I'm here today to talk to Alana on how to build her brand

on social media and also how she can

partner with brands as a potential source of income.

ALANA HUNTER: So here is the last video I just uploaded.

Very cool.

And then I have--

we did, like, sampler of new products.

Everything food related.

It's great that you're having that focus.

Let's talk more about what you can

do to differentiate yourself from all

the other cooking shows that are out there.

I'd love to see you have, like, a motion graphics package.

So seeing a really consistent opening title and outro.

Or graphics asking people to subscribe

or to follow you on social.

All those types of things give your content

a really professional and polished look and feel.

Adobe Premiere Rush is an all-in-one video editing tool

that we have built that is for online creators.

And we make it really easy to do things like motion graphics,

because we've got built-in templates.

And you can create them, and save them, and apply

them to all of your videos.

Yeah, that's super useful, honestly,

that it formats it for you.

My conversation with Amy went really well.

She showed me several different tools

that Adobe provides that I didn't really even know

existed.

And I think this will make it so much better.

And to really encourage you to continue to follow your dream

of being a YouTube creator, we would

love to offer you a one-year subscription

to Adobe Creative Cloud.

Oh, my gosh.

That's so awesome.

Thank you.

It's our pleasure.

I mean, we can tell that you're really committed to pursuing

this career.

And we really want to see you grow and continue

to follow this path.

That would be awesome.

That would help me so much.

Hopefully in the future, my content

will be even bigger, and better, and really

professional, and polished.

And I'm really excited to try out these tools.

It was really great meeting you.

It was nice meeting you.

Thank you for everything.

[MUSIC PLAYING]

ALANA HUNTER: So over the last month,

I've been making a lot of progress.

I've continued to do freelance jobs,

and that's definitely boosted my monthly income.

I've also been able to sell more of my clothing

since seeing Dan.

And I think I've cleared out about half of my closet.

So today, I'll be doing a room tour.

I'm so excited to show you guys around.

The best part of this entire situation

is I'm putting way more attention

into my work and my passion for livestreaming

and YouTube posting.

And I really think this can turn into a sustainable

and lucrative business.

Hey, guys.

I've been making a lot of new videos every day

and building up my fan base.

I've gotten a few sponsors.

Definitely grown my following.

And I've even been sharing a lot of what I learned from Dan

and Danetha with my fans.

The first thing that I want to talk about

is how to save money when it comes to fashion and shopping

for clothing.

If you see something in a store and you like it,

pick it up, look at it, and then put it back down.

And think about it for a week before you buy it.

Because you don't want to buy it just because you have that urge

and impulse to buy it.

Like, you really want to process it and figure

out if you really need it.

Thank you, guys, so much for watching.

And I'll see you guys next time.

Bye.

[MUSIC PLAYING]

So last time we chatted, we talked about cutting

back on grocery spending.

How's that going?

I've, like, drastically reduced how much I've

been spending on groceries, because I started

shopping at the discount store.

Oh, great.

So I wanted to check in with Alana today, see how she's

doing, and give her some additional tips

on how she can better manage her finances in the future.

So one of the things that you can start looking into as well

is Acorns Visa Debit Card.

It's the only card that you can use

while shopping that actually saves and invests for you.

Oh, cool.

So every time you spend money, Acorns

rounds it up to the nearest dollar

and invests your spare change on your behalf.

Oh my god.

That's amazing.

As a recovering shopaholic, we don't want to use the card

to buy more clothes, but we want to use

it at the grocery store and other places

that are necessities.

Definitely.

It's always a good idea to invest in your future

and Acorns Spend allows you to do that automatically.

Set it and forget it.

This is great.

Thank you.

[MUSIC PLAYING]

Hi, Alana.

Hi. How are you guys?

So good to see you.

Good.

Good to see you too.

How are you?

I'm good.

I'm really good.

Awesome.

DAN ROSENSWEIG: It's been a while since we started.

And hopefully, you've learned some things

and learned some things about yourself.

And we're going to catch up and see just

how much progress you've made.

So let's start off with you cutting back on your expenses.

Were you able to do that?

Yeah, I reduced my spending by around $450.

OK, so very good.

Congratulations.

Thank you.

How'd that feel?

Feels good.

Feels really good, yeah.

The next thing we had you look at

was ways to increase your income.

How is that going for you?

So since I met you guys, I've been

doing a lot of freelance work in addition

to my livestreaming job.

DAN ROSENSWEIG: Wonderful.

And I brought in $1,200 in additional income.

That's incredible.

In addition to the $1,600?

Yeah.

Fantastic.

So $2,800.

The changes Alana made have brought

her expenses down to $1,850 per month and her income

up to $2,800.

If she keeps up this lifestyle, she'll be able to pay off $950

worth of debt every month.

ALANA HUNTER: I had a lot of fun, actually.

I found some really cool jobs.

Good for you.

And in addition to the clothes I sold with you,

I made around $450.

Incredible.

All told, you probably made $800 of just selling clothes.

And what did you do with that cash?

So I prioritized using it to pay off my credit cards,

because they had the highest percentage rate.

So that's what I used it towards.

Fantastic.

The old Alana might not have done that.

As of now, my credit card debt is paid off.

So I'm really happy about that.

That's one less thing to stress about.

DAN ROSENSWEIG: It took a month for you

to learn you can do better.

And you've done extraordinarily well.

So how do you feel?

I feel good.

The next thing I'm going to do is go on a shopping spree-- no,

I'm kidding.

I want to give Dan and Danetha a big thanks

for giving me so much advice on being financially independent.

I have learned so much from them from budgeting,

to saving money, to paying off my student loans.

There's so many wonderful things that they taught me.

And I feel so much more money-conscious now.

To find out where Alana is on her journey and to get some

information around how to manage your spending

and student loan debt, visit goingfrombroke.info.

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