Are We Still in a Recession?

foreign hey guys welcome to this episode of the Rachel crew show and today we're going to be joining a conversation that is happening right now about the recession so a lot of people feel like oh we're in the clear some people are like no they're actually going to declare recessions and be like well they never actually declared it to be like well they changed the definition of it it is a little crazy it is a little crazy so is the recession officially over well that is a very bold statement to make considering again the government changed their definition of a recession and so they're making some pretty big financial decisions because of that so today I'm going to be reacting to a video made by minority mindsets and in this video the creator gives an overview of different opinions out there on this topic so I'm going to respond to a few of these with my own perspective and hopefully it'll kind of guide you to make the right decision in your mindsets for you to keep making progress with your money regardless of what politicians and the headlines are saying all right his first points which he says is the main purpose of the entire video that he made is to read data and form your own analysis on that data he says you should be paying close attention to the numbers and then use your own mind to decide what you think about those numbers and I totally get where he's coming from that makes sense and I would even take it a step further you guys and say think about your personal situation so even whatever the numbers say or what the data is saying think about your job your money your family because listen there could be a jobs report that comes out and it's terrible or you could see headlines talking about massive layoffs and all of that might be happening and it might be really alarming but if you are in a job that is not you know laying people off or you're in a current job market with your field that you're in your company I mean you look at all the things around you and if everything seems stable around you then yes is that terrible for people out there that it's happening to yes absolutely but don't let that freak you out if you have no reason to freak out so again making sure that yes what is happening in your household is really important but what also can be true is that certain leaders think that inflation is on its way out and they're like yeah inflation it'll get back to normal so soon and again we don't know I wrote a report that no the fed's going to raise rates again like I mean like oh who knows what's gonna happen but again what is happening with you so the important thing is sticking to your budget knowing what your money goals are is what's important so there's a lot of information out there and again I think it's really powerful to know what's going on but I also want you to discern that information to figure out okay what is really affecting us because there's only so much that you can control and there's a lot of things you can't control so focus on the stuff you can control all right up next he talks about how inflation continues to rise faster than wages but people are still spending more money so a little spoiler alerts that's called going into debt so after pointing this out he explains that whether that this is good or bad it depends on who you ask so a lot of people make the argument that it's a good thing that people are spending so much money whether it's in cash or on credit because it's helping the economy but I want to remind you that spending money that you don't have is never a good idea it's never a good idea it's a very slippery slope and I know it's easy to blame the financial strain on the government or the economy because there's truth that yeah like inflation is hurting people like you are feeling the pinch I think everyone is but again what affects you and your money so that stuff does affect you and your money because you're like yeah I'm spending more at the grocery store I'm spending more you know I think gas has gone down a little bit but like you're still feeling it there and so what you have to realize is regardless of when prices go up and down income is what we're seeing is still saying the same so what what do you do what can you do to control what you can control so that means probably cutting things that used to be the norm which is really frustrating and it's not fun to go backwards but again you have to take the responsibility of what's going on in your home really really seriously and the truth is is that not everything is your responsibility though it's not your responsibility to single-handedly save the economy by going on and spending money that you don't have that's not your job that's not your responsibility but your responsibility is to save live on a budget Be Frugal in times when things are financially chaotic if it's affecting you and your budget make decisions based on that so again knowing what is going on in your household is so so important you guys there are clothes in my closets that I never wear I admit it but I'm trying to simplify and that's why I love the capsule pieces from Carly Jean Los Angeles every piece can be mixed and matched to become a key part of your look Carly Jean clothes are classic and flattering and they'll save you money because you can wear them multiple ways instead of for just one occasion so simplify the way you dress without sacrificing your style go to carlyjeanlos and use code Rachel for 20 off your first purchase that's 20 off the entire site at Carly Jean with code Rachel next he says that more and more Americans are struggling with car payments now because they finance them so car prices are coming down and people are underwater on their Investments and yes I do agree with him on this this is what we are seeing and this is why we always encourage you to steer clear of car payments oh it's so tough because you are mathematically borrowing money on something and paying interest on something that is going down in value so it's not like even real estate that I know real estate's been crazy the past few years but that's an investment like for over the course of real estate history majority of the time you're going to make more money when you sell your home when you bought it your car is the complete opposite you lose money on it you spend more when you buy it and it drops and people are taking out money and getting money they don't have with high interest rates right now and it's just become a disaster so I recommend buying a used car that you can pay for with cash so it may not be a beautiful car may not be a fun car but at least it's a car that doesn't have payments and you can slowly start stepping up and getting a nicer nicer car as you save more money and then once you hit baby step seven at them you know and you have a net worth of a million dollars we say then you can go buy a brand new car because you can financially take that hit so again financing a car is never a good use of your money or a wise investment okay the last point of his that I want to unpack is when he says that going into debt is a temporary option so he argues that using credit to make purchases that works for you for a while that's great but then eventually you're going to hit a Breaking Point and he's right about that yes you will hit a breaking point because when you live your life paycheck to paycheck you live your life dependent upon credit cards or debts you finally do hit this point most people do or they wake up and they're like I'm done like I'm so tired of this I'm so tired of working hard I'm so tired of dealing with a jerky boss at work doing a job that I hate just to make payments like I'm done and I have nothing to show for it I have no money saved I don't have a lot of Investments I and like what do I do so we call that their sick and tired moment here at Ramsey Solutions a lot of people say I'm sick and tired of being sick and tired and there is when people make a choice they say okay can I control something can I wake up and make a different decision about my life and my money to get me out of this and I believe you can and I know it's not easy and I know and I know you know not a lot of people say this out there but the reality is that people that I meet every single day have overcome years of paying off debts because they made one decision that said I can do this so I want you to take a deep breath and just know that you have the ability to have money set aside for an emergency fund you have the ability to get out of debt and and I think the slippery slope is when you say oh yeah I'll just use some debt right now for this little bit don't even make it a habit and when you have that emergency fund don't dip into your emergency fund unless it's an emergency okay so keeping structure around your money and boundaries around your money gives you Freedom so if you have to cut some streaming services for a month or eat an extra meal or two at home each week maybe clean out your closets and sell some stuff to kind of get you started and boosted on this idea of living within your means and even going and paying off debt and and that living of sacrifice that lifestyle sacrifice will not be forever but it is such a wise choice for right now so hear me say that there is always hope there's always hope and again with my job I I have the privilege to meet these people all the time that have this level of freedom in their lives because they decide to take the power back in their own hands get out of debt build an emergency fund have a solid Financial Foundation under them and that can be you so are we technically in a recession well they've not come out into clarinets they've been very wishy-washy up in DC about this whole thing so listen if you look at what a recession is it's when the GDP is down to consecutive quarters and that has happened so technically we would be but they technically have not declared it so again what I want you to see is above all that you guys is that regardless of whether we are in a recession or not what is affecting you and the reality is is the job market affecting you well if you're in a stable job and your company's not laying off people then no it's not affecting you you're in a secure position is inflation affecting you well if you're a living paycheck to paycheck before this whole thing that happens then yeah you probably are really feeling the pinch but if you have margin in your budget you flip below your means for a while you can cut a few things you're still living life maybe it hasn't affected you right so like look at the things that are affecting you don't let the word scare you and create a lot of fear all right you guys I hope that you enjoyed this video and I think some of the the stuff that he said on there were some hot takes uh that again Common Sense would say one thing DC and politicians and economists may say another but I want you to decide again the word recession is a really scary word and people freak out but remember what are the things that are affecting you and your household and that's what I want you to focus on and more importantly I hope that this video empowers you again to take action when it comes to your money I want you to be motivated to budget and if you have not downloaded the every dollar app do that today because it's going to help you budget your day-to-day transactions knowing what's going on it just gives you this power over your money and it's wonderful and so if you guys want to share this video with somebody that needs some motivation maybe or gets scared about inflation or the economy give them this video send them this video to give them some hope so as always you guys make sure to take control of your money and create a life you love thank you

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