Time to focus on your financial health! Debt is the love handle of the financial world. Here are some real and tangible solutions to slim down what you owe from 3 financial experts Nicole Lapin, Lynette Khalfani-Cox, and Ric Edelman.
Category
📚
LearningTranscript
00:00 Today, back by popular demand, a Dr. Oz show,
00:04 Superstar Money Summit.
00:07 And for the first time, we're revealing
00:08 the 30-day debt diet.
00:10 You heard right, it's a debt diet.
00:12 This isn't about cutting carbs, though.
00:14 It's about slashing debt, which, let's face it,
00:17 you know, it's a big deal.
00:18 Debt is the love handles of the financial world, right?
00:21 And you're gonna see results in just 30 days.
00:24 And you need relief now because the coronavirus pandemic
00:27 has spiked debt in homes all across the country.
00:29 So today, we have real solutions
00:31 from the best money minds out there.
00:33 Meet the superstars, Nicole Lappin,
00:38 Lynette Calfani-Cox, and Rick Edelman.
00:41 With 10 personal finance books,
00:43 in the bank bestselling author Rick Edelman
00:45 has been named one of the country's top 10
00:47 financial advisors by Forbes Magazine.
00:50 I started my radio show 28 years ago
00:53 to bring the secrets of Wall Street to mainstream
00:56 because I truly believe that the secrets to wealth
00:59 are not just for the rich.
01:01 Using Rick's advice, millions of regular folks
01:04 have learned to retire with a million dollars.
01:07 Oh, I've advised everyone from Oprah Winfrey
01:09 on her TV show to my own auntie.
01:12 And today, I'm coaching you.
01:15 Financial expert and New York Times
01:17 bestselling author, Nicole Lappin,
01:19 went from living paycheck to paycheck
01:21 to calling herself a rich you-know-what.
01:24 And now, she's helping others do the same.
01:27 I believe that true financial success comes from balance.
01:31 Nicole teaches budgeting and saving
01:33 in her online personal finance course, Money School.
01:36 But she's also a huge proponent of always leaving room
01:39 in your financial diet for some fun.
01:41 People say to me all the time,
01:43 "I cut out the morning latte, I am doing so great."
01:46 And then four months later, they're like,
01:48 "I bought this expensive purse
01:49 "because I didn't buy the latte."
01:51 And I say, "Hello, Captain Obvious,
01:53 "if you just got that latte every day,
01:55 "you would keep yourself motivated and on track."
01:58 I'm Lynette Calfani Cox, and I'm the money coach.
02:02 Former Wall Street Journal reporter
02:03 and contributor to dozens of news programs.
02:06 With a flair for super relatable advice,
02:09 it's no wonder Cox is one of the most
02:11 highly sought after financial experts.
02:13 She paid off $100,000 worth of credit card debt
02:17 in just three years, and since then,
02:19 has used her skills to teach millions about money management.
02:23 I don't think that most people look in the mirror
02:25 and see a wealthy person, but we all can be,
02:28 and we're gonna show you how.
02:30 I'm Giddy, they're all here today,
02:34 including Nicole's right next to me.
02:35 So explain to everybody, what is a debt diet,
02:37 and why 30 days?
02:39 So think of a regular diet, right?
02:40 You're cutting calories.
02:42 In a debt diet, we're cutting cents.
02:44 And in some cases, we're actually cutting
02:46 a few cents here and there, and it really adds up.
02:48 You know Einstein?
02:49 He's a pretty smart dude.
02:50 He said that compounding interest is the eighth wonder
02:53 of the world, so let your money work for you.
02:56 And think of this as a regular diet, as you do.
02:59 Allow yourself small indulgences,
03:01 like a dark chocolate piece every now and then.
03:05 The best.
03:06 So you don't end up binging later on.
03:07 All right, so Rara Lays, two weeks into this debt diet.
03:11 So let me just start off with why.
03:13 Why'd you need a debt diet, and why'd you need it now?
03:16 Yeah, so Dr. Oz, I really needed a debt diet
03:20 because I just transitioned from earning six figures
03:23 to just really launching my small business
03:26 and going the entrepreneur route,
03:28 and I knew that I needed to drastically
03:32 decrease the amount of money I spent
03:34 on a weekly and monthly basis.
03:37 So you've been documenting your experiences
03:39 on this debt diet, and I can't wait
03:40 to see how it's going for you.
03:41 But first, I wanna bring in Rick Edelman,
03:43 who has the first step of our 30-day debt diet,
03:46 and it is to go on an intermittent money fast.
03:48 I love that phraseology.
03:50 The intermittent money fast is gonna happen on Tuesdays,
03:52 it's gonna happen on Thursdays.
03:53 Walk us through it.
03:54 Dr. Oz, you're right.
03:55 You always sing the praises
03:57 of intermittent fasting for weight loss.
03:59 Well, guess what?
04:00 It works for your money too.
04:01 I find that no-spend days are a perfect way
04:04 to focus on not spending.
04:06 The best thing about them is that they're only for one day.
04:09 You don't need to stock up before having a no-spend day.
04:12 You can have them multiple times a week,
04:13 like you say, Tuesdays and Thursdays.
04:16 And the more no-spend days you have,
04:18 the more money you save.
04:19 And a no-spend day is exactly what it says,
04:22 not spending on anything, just for 24 hours.
04:26 That means pack your lunch
04:27 or shop your cupboard for dinner.
04:30 Just check what you have in the house.
04:31 You've got a lot of food in the house,
04:32 so eat that instead of shopping for more food.
04:35 It's like when you say, "Oh, I have nothing to wear,"
04:37 but your closet's full of clothes.
04:39 All right, so Raraleigh put your advice to,
04:42 she actually put it to the test,
04:43 and she did her money fast.
04:45 Here's her experience.
04:47 - Hey guys, what's up?
04:48 It's your girl, Raraleigh, and it is Tuesday.
04:51 I am so excited because this is my very first
04:55 intermittent Tuesday.
04:57 So far, it's going good.
05:00 However, it is lunchtime and your girl is starving,
05:03 so I am hungry.
05:05 So I'm gonna go ahead and check inside the fridge,
05:08 see what I can come up with.
05:11 Nothing in the fridge so far,
05:12 so let me check in my cabinet.
05:15 Okay, so I got some jelly,
05:19 and I got some peanut butter.
05:21 So PB&J it is.
05:24 By the way, one of my friends invited me out
05:28 for dinner tonight.
05:29 However, that is definitely not gonna be in my budget,
05:32 so I'm gonna have to sit that one out today.
05:34 I'm feeling pretty confident that I'm gonna be able
05:36 to stay in this intermittent fast challenge
05:40 and really prove that I can do this.
05:43 I'm excited.
05:45 Raraleigh, I'm excited too.
05:46 Just seeing that smile on your face
05:47 when you find that PB&J.
05:48 Right.
05:49 So how much extra do you think you were spending
05:51 that you just didn't even realize was happening?
05:54 A lot.
05:55 I, a lot.
05:57 I started going through my bank statement and everything,
06:00 and a lot of these food ordering things that I was doing
06:03 was just really, really running up how much I spent
06:07 on a daily basis, at least sometimes 100 to $150 a day,
06:12 which was ridiculous.
06:13 That's a lot of money.
06:15 It is.
06:16 Nicole's jaw just dropped to mine.
06:17 All right, Lynette, let me come to you.
06:19 You say to buy your groceries online
06:21 and check the labels for unit price, not the total price.
06:25 That's correct.
06:26 So listen, if you're one of those people who,
06:28 you're just kind of a sucker for every deal
06:30 that you see in the store
06:31 when you go in the store grocery shopping,
06:34 you're probably gonna save money by shopping online,
06:37 even if you have to, you know, kick in a couple extra bucks
06:40 to have it delivered to you or maybe even to pick it up.
06:43 So, 'cause here's the thing, when you're shopping online,
06:45 you get to actually see your total right there
06:47 in black and white as everything is creeping up.
06:50 So that'll kind of encourage you to stay within the budget.
06:52 You also get to do some cost comparisons.
06:54 You can, you know, shop at different sites,
06:57 but you also want to do something smart, like any diet.
07:01 You wanna read the labels.
07:03 And in this case,
07:04 we're not talking about the ingredient labels.
07:06 I'm talking about the unit price that you just mentioned.
07:09 The unit price is gonna tell you
07:11 what you're paying in weight,
07:13 because that's a really great way to save yourself money
07:16 and avoid debt, because a lot of times,
07:18 something that might look like a good deal
07:20 really might not be such a great bargain
07:23 when you look at it based on unit price.
07:25 And so you're looking at it and you're seeing,
07:27 oh, this is only 80 something cents, this looks cheaper.
07:30 And so you're thinking, let me get that.
07:32 This other bigger unit though,
07:34 which is, you know, five times the size, of course,
07:37 it's not five times the price though.
07:39 If you bought the equivalent volume, say 30 ounces,
07:44 you'd pay over $4.20 when you're buying
07:46 that little individually, conveniently packaged one.
07:50 You're paying way more for that, almost twice as much.
07:53 So again, shopping by unit cost,
07:56 it's gonna save you money and keep you out of debt.
07:58 Yeah, don't go for the head fix.
07:59 All right, Lynette, there are also some grocery items
08:01 that you want everyone on this death diet
08:03 to pay attention to.
08:04 These are the things we're gonna give up.
08:05 For example, pre-sliced veggies and fruits.
08:07 Now, in my entire career on this show,
08:09 I've never told you to not eat veggies and fruits,
08:12 but this is about pre-sliced ones
08:14 when you're in the death diet.
08:15 What should we do instead?
08:16 You listen, if somebody's just doing the work for you,
08:19 it's a convenience factor
08:20 and you're paying for that convenience.
08:22 So I don't care if they're slicing up your celery
08:24 or your mangoes or whatever else,
08:26 just buy the whole product and slice it at home for yourself
08:29 and then believe me, you're gonna save money.
08:31 And it's gonna be an easy way to save money
08:34 and keep yourself out of debt.
08:36 - An item that everyone's gotten addicted to
08:37 is pre-washed salad, but no more.
08:41 Why pay someone to wash your salad?
08:42 It doesn't take that much time and certainly no money.
08:45 - Exactly, again, it's a labor thing here.
08:48 You're going to pay three times as much
08:51 just to have somebody to wash that salad
08:53 and put it in a nice little package for you.
08:56 The plastic, all of that is costing you money.
08:58 Again, just buy a head of lettuce yourself,
09:00 cut it up, wash it real quick, put it away.
09:02 You won't even notice the difference,
09:03 but you'll notice the difference in pricing
09:05 because you're gonna pay way less.
09:07 - Are you hearing Lynette?
09:08 She's saying literally there's money,
09:10 money in your lettuce, right?
09:12 So stop buying the pre-cut stuff,
09:14 take the cash and buy some something nice.
09:16 All right, and finally, chicken in parts.
09:20 And this surprised me
09:21 'cause I didn't think there'd be a big difference,
09:22 but you don't want us buying cut up chicken thighs,
09:25 breasts or anything else.
09:26 You want us to get the whole baby.
09:28 - That's right.
09:29 Listen, you're gonna save a ton of money,
09:32 again, because it's about unit price.
09:34 Buy the whole chicken as opposed to buying parts
09:37 like wings or breasts or thighs,
09:39 because you're gonna be spending really pennies per pound
09:42 based on the number of meals you can make
09:44 from the having the whole chicken.
09:46 - So we do a little math,
09:47 assuming you buy each of these items weekly,
09:49 making these three small changes, seemingly small changes,
09:53 we would put an extra $600 into your pocket this year alone.
09:58 That's a lot of money, guys.
09:59 Let me bring Nicole back in.
10:00 She says to leave anything over $50 in your online cart
10:03 for at least 24 hours.
10:05 It's like a regular diet.
10:06 You gotta restrain yourself a tiny bit.
10:07 - A little cooling off period, right?
10:09 But in a regular diet, you tell people to move,
10:12 like move it or lose it,
10:13 or in case to actually lose it, you wanna move more.
10:16 But in this case, to lose more of this debt,
10:19 you want to step away and cool down, take a breather.
10:22 If you wanna buy something that's more than $50,
10:25 put it in your cart, go crazy, and then sleep on it.
10:28 See if you actually want it in the morning.
10:30 - Move away from it, don't just move.
10:32 Chances are you probably won't.
10:33 - Roraleigh, how'd the cooling off period work for you?
10:37 - The cooling off period definitely worked for me.
10:40 Honestly, I didn't think that I would be able
10:43 to get through this challenge.
10:46 However, I was able to do it.
10:47 And even now that it's really coming to an end
10:51 and ending now, I've realized that I don't have that urge
10:54 to do those impulse buys.
10:57 And I really am just kind of eating at home
10:59 and making things for myself instead of ordering out
11:03 anytime I have an impulse or I'm like, "Hmm, I'm hungry."
11:06 So it's definitely been working out for me.
11:08 - I love this concept, intermittent diet, but modified.
11:13 'Cause if a debt diet can work for you,
11:14 it can work for your friends and family, spread the wisdom.
11:16 When we come back, it's the millionaire secret
11:18 to trimming your monthly bills
11:20 without having to give up a thing.
11:21 But first, a TikTok that teaches you
11:24 how to put your electricity bill on a diet.
11:27 - All right, we're gonna look at three energy saving tips
11:29 that can lower your monthly electric bill.
11:33 Firstly, switch all your light bulbs to modern LEDs.
11:37 They're six times more efficient
11:38 than your traditional light bulb.
11:41 Next, wash your clothes with cold water.
11:44 It will take strain off your hot water heater.
11:47 Finally, use power strips and turn them off
11:50 when you're not using them.
11:52 - Today at the Superstar Money Summit,
11:54 we're putting you on a 30 day debt diet.
11:57 You heard right, a debt diet.
11:59 But a diet isn't always about deprivation, is it?
12:02 In fact, this next trick is more about putting money
12:05 in your pocket every month without you giving up a thing.
12:07 So Rick, this is something even your millionaire clients do.
12:10 It is to negotiate your bills.
12:12 So what's negotiable and how do you actually do it?
12:15 - Yes, you know, it's really fascinating, Dr. Oz.
12:18 Nearly everything is negotiable.
12:20 All you need is a phone and a little persistence.
12:23 Just set aside an hour of your day
12:25 and call your credit card companies to start.
12:28 If you carry a balance on your credit card,
12:30 tell them you want a lower rate.
12:31 If you pay the fee on an annual basis,
12:33 tell them you want to waive the fee.
12:35 And if they say no, demand to speak to a manager
12:39 and say the same thing to the manager.
12:41 And if the manager says no,
12:42 demand to talk to the next manager
12:44 and keep going up the chain until someone says yes.
12:48 Just tell them that if they don't agree to your terms,
12:50 you're gonna switch your business to a competitor
12:53 unless they do what you ask.
12:54 You can do this with your insurance company too,
12:56 your cable provider.
12:58 Everything's negotiable.
12:59 - So I gotta say, Rick, I trust you.
13:01 You're the expert in this, but I was dubious.
13:03 So we wanted to show everyone exactly how this works
13:06 and to kick the tires.
13:07 So I asked one of our Oz Show correspondents, Tia Brown,
13:10 to tackle her own credit card monthly bill
13:13 and Nicole was a little birdie in her ear.
13:15 - All right, Tia, so today we're gonna negotiate
13:20 your credit card interest rate.
13:22 Negotiation is one of the best financial skills
13:25 you can have.
13:26 Money secret number one, tell them that a friend
13:29 or a family member has a lower rate.
13:31 - Okay, gotcha.
13:31 (phone ringing)
13:35 - Just a moment, I'll connect you to a representative.
13:40 - My name is Jaylen, with Indigo Posure speaking.
13:43 - Shatiqua Brown.
13:45 - Nice to meet you, how can I help you?
13:46 - I'm interested in getting a lower rate.
13:48 My rate is currently 15.49%
13:51 and a friend of mine has a much lower rate.
13:53 - Okay, well let me take a look.
13:55 It's allowing me to lower, it looks like just by one
13:58 percentage for the next 12 months,
14:00 did you want to accept that?
14:01 - All right, money secret number two,
14:02 remind them that you have a ton of other offers
14:05 from different credit card companies
14:06 offering you a lower rate.
14:08 - I actually received a few offers
14:09 from some other credit card companies with lower rates.
14:12 Are you sure there's nothing you can do?
14:14 - I checked and the 14.49% is the lowest
14:17 it will let me do.
14:19 - All right, TM, money secret number three,
14:21 ask them what they're offering new customers.
14:24 - Okay, what rate are you offering new customers?
14:27 - So each person is different,
14:28 it's just based on their history,
14:30 so I mean we rarely have like the same set rates
14:32 for everyone, but I can definitely take a look into it.
14:36 - Money secret number four, state your case.
14:38 Tell them why you're a good customer.
14:40 - Okay, gotcha.
14:41 Well I've been a loyal customer for about 10 years,
14:43 I always pay my bill on time, I always keep a low balance,
14:46 I'd really like to get a lower rate.
14:48 - Yeah, you're doing everything correct,
14:49 you're paying on time.
14:52 There's just a lot of factors that go into the APR.
14:56 - Money secret number five, ask what you want
14:58 or you'll walk away.
14:59 Ask for a manager.
15:00 - Can I speak to a manager?
15:02 - Sure, you may, just a moment.
15:03 - Thank you.
15:03 Hi Melissa, thank you so much for your help.
15:05 - I understand we wanna look and see
15:07 if we can get that interest rate lower for you.
15:09 - Absolutely.
15:10 - Do you mind if I place you in a brief hold
15:12 and see what I can do for you?
15:13 - Absolutely, thank you.
15:17 - It's already been like four minutes.
15:19 Hopefully that's a good sign.
15:20 - I'm not gonna give up.
15:21 - That's my money and I'm fighting for it.
15:22 - No means yes.
15:24 - That's right.
15:25 - So the lowest I could get at two was 12.49,
15:27 that's gonna be for existing balance and new purchases,
15:30 there's no time frame on that.
15:32 - Okay.
15:33 - Would you like to accept that?
15:34 - Yes, I accept that.
15:35 - Okay, fantastic.
15:37 - All right, thank you so much, I appreciate your time.
15:39 Thank you so much, Nicole.
15:40 - You did such a good job, Tia, I'm so proud of you.
15:42 - We did so well.
15:43 - We did so well.
15:45 - Nicole has one last step for our 30-day debt diet
15:48 and she says it's the most important thing of all.
15:51 What is it?
15:52 - I think you have to allow yourself
15:54 those small indulgences so you don't binge later on.
15:57 A debt diet is a lot like a regular diet.
15:59 I like to think of it as an eating plan,
16:02 so a spending plan.
16:03 Let's reframe this, right?
16:05 It's something that you can stick to for the long run.
16:07 This is not a crash diet.
16:08 This is something that we wanna stick to
16:10 so that we are never gonna get back into debt.
16:13 - So buy yourself something once in a while.
16:15 Have your indulgence.
16:16 The same way we have the dark chocolate
16:17 you alluded to earlier that got me hungry.
16:19 - Sorry about that, but 5% of your overall spending plan.
16:23 In the same way as what?
16:24 Is that dark chocolate maybe 5%
16:26 of your overall calorie intake?
16:28 - Yeah, and it's fine.
16:29 And that way you won't have the 35% chocolate cake.
16:31 - In the middle of the night
16:32 'cause you're so hungry and so deprived.
16:34 - Yeah, or the bag you know you can't afford.
16:35 All right, thanks to all my money stars.
16:37 I love you guys.
16:37 I can't wait until the next Money Summit.
16:39 Thank you for watching.
16:40 Don't forget to subscribe and turn on notifications
16:42 so you never miss out on new videos to live the good life.