David Auten and John Schneider, the dynamic duo behind the Queer Money Podcast, are known as the “Debt Free Guys” for good reason.
This week, they share valuable insights on achieving a fulfilling life while maintaining financial stability. Tune in as they discuss strategies to tackle financial anxiety with your partner, evaluate your spending habits, and prioritize your financial goals. They also address why the LGBTQ community tends to carry more debt compared to heterosexual individuals, the challenges same-sex couples face in securing mortgages, and what financial organizations can do to create positive changes.
In the Mailbag segment, listener questions are tackled, including how account closures due to inactivity can affect your credit score, whether to contribute to a spouse’s 401(k), and tips for saving for graduate school. Plus, updates on Facebook’s upcoming cryptocurrency.
Transcript
Jean Chatzky: (00:07)
This episode is supported by Fidelity Investments. Start knowing what you own and owe at fidelity.com/demandmorenow. Welcome to the show! Today, we’re delighted to have David Auten and John Schneider, the Debt Free Guys, in our studio. Their mission? Helping the LGBTQ community live fabulously without financial strain!
David Auten and John Schneider: (01:30)
Thanks for having us! We're thrilled to be here.
Jean Chatzky: (01:32)
What brings you to town?
David Auten: (01:35)
We’re on our Queer Money Live tour, aiming to connect with individuals in our community face-to-face. We’re visiting LGBT centers and financial hubs to share insights and hear real-life stories.
Jean Chatzky: (02:16)
Absolutely, face-to-face interactions are invaluable! It’s great to have you both here.
John Schneider: (02:52)
I moved to Denver in 1999, planning to stay for just two years. Then I met David, and here we are, over 20 years later!
Jean Chatzky: (03:22)
So it took some time, huh?
John Schneider: (03:23)
Yes, we had to navigate various laws and changes.
Jean Chatzky: (03:28)
We've also discussed the financial anxiety facing the queer community. What are your thoughts?
David Auten: (03:52)
Financial anxiety is real. We experienced it personally, despite working in financial services for years. A study by MassMutual shows that 58% of the LGBTQ community worries about money weekly.
Jean Chatzky: (04:32)
Is this worry related to familial support loss upon coming out?
John Schneider: (04:40)
Yes, many face higher expenses, particularly credit card debt, often due to early independence from family.
Jean Chatzky: (05:07)
Discussing finances openly is crucial for all couples. What led you both to that realization?
John Schneider: (05:25)
It was a dramatic awakening for us.
David Auten: (05:30)
After a year and a half together, we realized we had $51,000 in credit card debt, despite appearing to live a lavish lifestyle.
Jean Chatzky: (06:40)
Have you heard my mother's advice about important conversations?
David Auten and John Schneider: (06:46)
No, what is it?
Jean Chatzky: (06:46)
Always have important conversations in the car.
David Auten and John Schneider: (06:51)
Interesting approach!
Jean Chatzky: (06:52)
It keeps them from escaping the conversation!
John Schneider: (07:11)
Clever!
Jean Chatzky: (07:13)
Exactly! It prompts deeper conversations.
John Schneider: (07:17)
That’s how we became honest about our finances.
Jean Chatzky: (07:42)
You realized your spending was unsustainable.
David Auten: (07:56)
Yes, it was eye-opening to realize how much we were spending on life’s luxuries.
Jean Chatzky: (08:07)
So, what was the next step after that moment?
John Schneider: (08:15)
We began questioning why we were sabotaging ourselves financially.
Jean Chatzky: (08:26)
And what did you discover?
John Schneider: (08:28)
Ultimately, we realized we sought validation through unnecessary spending due to childhood insecurities.
Jean Chatzky: (09:05)
That’s a significant societal issue.
David Auten: (09:07)
80% of money matters are universal, but the remaining 20% is unique to our backgrounds and feelings, influencing our financial behaviors.
Jean Chatzky: (09:40)
How do you manage those emotional triggers in spending?
John Schneider: (09:52)
By identifying our true desires beyond material goods. We wanted to save for retirement, travel, and contribute to our community.
Jean Chatzky: (10:26)
Did you follow a specific strategy to eliminate debt and save?
John Schneider: (10:34)
Yes, David meticulously cataloged our expenses over a year, revealing our overspending habits.
Jean Chatzky: (11:06)
That’s enlightening!
John Schneider: (11:06)
We often felt financially strained, but upon reflection, realized we had a fantastic lifestyle.
Jean Chatzky: (11:12)
What a great discovery!
John Schneider: (11:12)
We identified major spending areas that needed adjustment.
David Auten: (11:32)
Reflecting on our lifestyle helped us appreciate our experiences without excessive spending.
Jean Chatzky: (12:23)
That’s a valuable lesson!
David Auten: (12:23)
We learned to enjoy outings without making them a regular habit.
Jean Chatzky: (12:39)
I’m eager to hear more about your learnings.
Jean Chatzky: (36:21)
The upcoming cryptocurrency from Facebook, Libra, is generating excitement. Users may soon make transactions globally with minimal fees. However, it’s a work in progress and needs banking support.
Kelly Hultgren: (36:21)
Indeed, the impact of Libra could be significant!
Jean Chatzky: (36:21)
Thank you for listening! We’re excited to bring you more engaging discussions next week.
