Podcast Summary: Smart Money Happy Hour with Rachel Cruze and George Kamel
Episode: Everyday Middle-Class Luxuries (That Are Low-Key Bougie)
Release Date: July 10, 2025
Introduction to Middle-Class Luxuries
In this episode, Rachel Cruze and George Kamel delve into the concept of middle-class luxuries that might seem extravagant but are accessible to many. They explore how these "low-key bougie" items and services reflect modern middle-class lifestyles and discuss their impact on financial well-being.
Defining the Middle Class
Rachel Cruze [02:01]: "I feel like everything when you go back to like the 90s, it's just like solid. I feel like we were like the OGs of it."
George Kamel [02:10]: "It's pretty wide range. And remember like 2012 we were all posting pics of like spilled coffee on outdated kitchen countertops with hashtag relatable."
Rachel and George reflect on the evolving definition of the middle class, noting that while the term is ubiquitous, its boundaries vary significantly across different states and contexts. They highlight the shifting sentiments around being middle class, especially with the influence of social media and changing economic landscapes.
Middle-Class Income Ranges Across States
George references data from a CNBC analysis of U.S. Census Bureau figures to illustrate the vast disparities in what constitutes a middle-class income in various states.
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Tennessee:
"Middle class income range is between 45 grand and 135 grand. Median household income a little over 67 grand."
[04:21] -
New York:
"Middle class income range is 54,700 to 164,200. Median household income is 82,000."
[04:30] -
Mississippi:
"Middle class income range, 36 grand to 108 grand. Median household income, $54,000."
[04:43] -
California:
"Middle class income range is 63,700 to 191,000. Median household income, 95,500."
[04:59] -
Utah:
"Middle class income range, 62 grand to 186 grand. Median household income, 93 grand."
[05:00]
They emphasize how geographic location significantly affects middle-class standards, with higher-income states like California and Utah showcasing broader and higher income ranges compared to states like Mississippi.
Is the Middle Class Shrinking?
A listener question prompts a discussion on the fear of the middle class becoming extinct. Rachel addresses the anxiety stemming from social comparisons, especially fueled by social media.
Rachel Cruze [06:33]: "I feel like there's a lot of, like, middle class fancy, like a lot of things nodding to the middle class these days."
George Kamel [07:06]: "Are you actually doing great and you're just in crippling debt? And is it bad to be middle class?"
They advocate for focusing on personal financial health rather than societal comparisons, urging listeners to appreciate their current status and work towards financial improvement without succumbing to the pressure of constantly upgrading their lifestyles.
List of Middle-Class Luxuries
Rachel and George explore various items and services considered middle-class luxuries, discussing their practicality and personal experiences with them.
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Spare Items (Sunglasses, Phone Chargers, Stanley Cups)
- Rachel [08:06]: "I have multiple pairs of sunglasses and... but I lose them."
- George [08:34]: Emphasizes the convenience of having backups to save time and reduce hassle.
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Hiring Professionals for Routine Household Chores
- Rachel [09:15]: "We do it just once a month, but it changed everything in our marriage."
- George [10:04]: Discusses the benefits of hiring services like house cleaners and landscapers to buy back personal time and reduce household conflicts.
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Thermostat Freedom
- George [12:09]: Shares personal anecdotes about managing home temperatures and the luxury of smart thermostats.
- Rachel [14:16]: Highlights the efficiency and comfort provided by smart temperature controls.
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Ad-Free Streaming Subscriptions
- George [15:08]: "Ad free streaming is a game changer. If you hate the commercials now, weather apps, this is one."
- Rachel [17:40]: Discusses the value of subscription services like Spotify, Netflix, and YouTube Premium for uninterrupted entertainment.
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Deep Freezers
- Rachel [19:33]: "It's growing up, if you had the refrigerator in the garage, the drink fridge, it was like a big deal."
- George [20:03]: Shares personal uses for deep freezers, emphasizing their practicality for bulk storage.
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Car Features (Heated Seats, Smart Controls)
- Rachel [21:55]: "Heated car seats. Not like baby car seats. Seats in your car when they can be heated."
- George [22:22]: Advises against purchasing luxury car features on credit, promoting financial prudence.
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Quality Mattresses
- Rachel [24:38]: Discusses the high cost of premium mattresses versus affordable options, advocating for value-based purchases.
- George [25:04]: Shares insights on modern mattress innovations like memory foam and online mattress delivery services.
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Hiring Movers
- George [29:36]: "Hunters movers is a game changer. I always joke that if a friend asked me to move, I would rather donate to a GoFundMe to hire movers."
- Rachel [30:48]: Emphasizes the labor-intensive nature of moving and the convenience of professional services.
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Surround Sound Systems
- George [31:18]: "It's legit. I want to hang out and watch a movie here."
- Rachel [32:05]: Expresses confusion over the necessity of surround sound, highlighting personal preferences.
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Bidets and Smart Toilets
- Rachel [33:35]: "That is a game changer. And I think it flushes automatically when you leave too. Like, I think it's like everything."
- George [34:17]: Explores the advanced features of modern toilets and their practicality.
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Robot Vacuums
- Rachel [35:10]: "When we got our pool, the new pool vacuums is a robot."
- George [35:56]: Discusses the future of automated home cleaning and maintenance.
Takeaways and Financial Insights
Towards the end of the episode, Rachel and George offer valuable insights on maintaining a balanced lifestyle without falling into excessive consumerism.
Rachel Cruze [37:10]: "Life's good. Enjoy it."
George Kamel [38:09]: "It's okay to just be debt free. Have a great life."
Key Points:
- Contentment Over Comparison: Emphasize gratitude for one's current situation rather than constantly comparing to others.
- Prudent Spending: Advocate for investing in services and items that genuinely enhance quality of life without leading to debt.
- Budgeting Tools: Recommend tools like the EveryDollar app to help listeners manage their finances effectively and work towards financial stability.
Conclusion
Rachel and George wrap up the episode by reiterating the importance of valuing personal financial health over societal pressures to acquire luxuries. They encourage listeners to embrace their lifestyles, make informed financial decisions, and prioritize experiences and peace of mind over material possessions.
Notable Quotes:
- Rachel Cruze [06:33]: "I think we're doing better than we think."
- George Kamel [07:06]: "If you're going to do this, buy used, buy in cash, do not go into debt for it."
- Rachel Cruze [37:10]: "Life's good. Enjoy it."
- George Kamel [38:09]: "It's okay to just be debt free. Have a great life."
This episode provides a thoughtful exploration of what it means to enjoy middle-class luxuries without falling into the traps of excessive spending and societal pressures. Rachel and George offer practical advice, personal anecdotes, and financial strategies to help listeners navigate their financial journeys with confidence and contentment.