1 00:00:00,040 --> 00:00:02,080 Speaker 1: Let's say good morning now to the host of How 2 00:00:02,080 --> 00:00:05,600 Speaker 1: to Money on KFI. It's Joel lars Guard Morning. 3 00:00:05,680 --> 00:00:07,000 Speaker 2: Joel morning Amy. 4 00:00:07,200 --> 00:00:10,400 Speaker 1: Okay, so you're saying, when when you're looking for your 5 00:00:10,400 --> 00:00:16,639 Speaker 1: next gig, instead of a regular employees setup, maybe contractor 6 00:00:16,680 --> 00:00:17,959 Speaker 1: freelance is a way to go. 7 00:00:18,720 --> 00:00:22,000 Speaker 2: At least consider it, right, So we are. I just 8 00:00:22,520 --> 00:00:25,800 Speaker 2: I have feels for the people for three years ago 9 00:00:25,920 --> 00:00:29,920 Speaker 2: when the job market was robust and it was like, actually, 10 00:00:29,920 --> 00:00:31,280 Speaker 2: I'm going to leave my employer and go down the 11 00:00:31,320 --> 00:00:33,640 Speaker 2: street and make twenty five percent more. And I was 12 00:00:33,760 --> 00:00:37,120 Speaker 2: regularly hearing from listeners who are making that happen. And 13 00:00:37,479 --> 00:00:40,600 Speaker 2: the job market is clearly not in that place right now, 14 00:00:41,240 --> 00:00:43,960 Speaker 2: and we've reached more of an equilibrium state because the 15 00:00:44,200 --> 00:00:48,600 Speaker 2: unemployment rate overall is still reasonably low from a historic perspective. 16 00:00:49,080 --> 00:00:51,879 Speaker 2: But we're also it's there's kind of a frozenness to 17 00:00:52,040 --> 00:00:53,559 Speaker 2: the job market. And it's not that you can't go 18 00:00:53,600 --> 00:00:55,640 Speaker 2: down the street and potentially make more, it's just that 19 00:00:55,640 --> 00:00:58,480 Speaker 2: it's much much harder to pull off. And so one 20 00:00:58,520 --> 00:01:01,920 Speaker 2: of the tactics that I've seen people employing right now 21 00:01:02,320 --> 00:01:05,040 Speaker 2: in order to maybe get their foot in the door 22 00:01:05,200 --> 00:01:08,040 Speaker 2: for an employer they're interested in working for, or even 23 00:01:08,280 --> 00:01:12,440 Speaker 2: a way to potentially make a higher hourly rate, but 24 00:01:12,480 --> 00:01:14,280 Speaker 2: it just doesn't come without it just doesn't come with 25 00:01:14,319 --> 00:01:16,800 Speaker 2: the benefits is opting for like a freelance or a 26 00:01:16,840 --> 00:01:20,280 Speaker 2: contract position. And so employers are saying, we're just kind 27 00:01:20,319 --> 00:01:22,520 Speaker 2: of uncertain about what's going to happen with the economy 28 00:01:22,520 --> 00:01:26,360 Speaker 2: where things are headed. They're saying these tariffs, like how 29 00:01:26,440 --> 00:01:29,640 Speaker 2: much are they going to impact our bottom line? And so, yeah, 30 00:01:29,640 --> 00:01:31,959 Speaker 2: we'd like to expand we'd like to hire some more folks, 31 00:01:32,240 --> 00:01:34,840 Speaker 2: but it's easier for us to potentially hire someone in 32 00:01:34,880 --> 00:01:39,200 Speaker 2: a contract position right now because it's easier to ask 33 00:01:39,319 --> 00:01:42,080 Speaker 2: you if the time comes that we actually can't afford 34 00:01:42,120 --> 00:01:44,800 Speaker 2: to keep you on. And so you might be able to, 35 00:01:45,600 --> 00:01:48,600 Speaker 2: as an individual find one of these contract or freelance 36 00:01:48,640 --> 00:01:51,920 Speaker 2: positions and maybe that's what gets your foot in the 37 00:01:52,000 --> 00:01:55,880 Speaker 2: door at an employer. As a way to move if 38 00:01:55,880 --> 00:01:58,480 Speaker 2: you're if you're looking to move jobs or you need 39 00:01:58,560 --> 00:02:00,840 Speaker 2: a new job, this could be the perfect way to 40 00:02:01,320 --> 00:02:04,200 Speaker 2: get started. Even if you're like man, I want that 41 00:02:04,360 --> 00:02:06,680 Speaker 2: full time position with benefits. This could be a good 42 00:02:06,680 --> 00:02:07,440 Speaker 2: option for a lot. 43 00:02:07,280 --> 00:02:11,520 Speaker 1: Of folksta there's certain companies who basically operate that way, 44 00:02:11,600 --> 00:02:14,600 Speaker 1: like Nike used to. I don't know if they still do, 45 00:02:14,720 --> 00:02:17,360 Speaker 1: but when I was up in Oregon, Nike hired people 46 00:02:17,360 --> 00:02:21,400 Speaker 1: on a contract basis pretty regularly, and then after a 47 00:02:21,400 --> 00:02:23,320 Speaker 1: period of time they decide if they were going to 48 00:02:23,360 --> 00:02:24,280 Speaker 1: offer you full time. 49 00:02:24,919 --> 00:02:29,040 Speaker 2: Yeah, And I think it's understandable from an employer perspective, 50 00:02:29,040 --> 00:02:31,360 Speaker 2: where you're like, let's let's test the goods out. Let's 51 00:02:31,480 --> 00:02:34,120 Speaker 2: let's go like three six months and see how this 52 00:02:34,200 --> 00:02:36,680 Speaker 2: person fits from a culture perspective and what sort of 53 00:02:36,680 --> 00:02:39,560 Speaker 2: work they're churning out. And then for you too, when 54 00:02:39,600 --> 00:02:43,000 Speaker 2: you think about the right now, trying to go through 55 00:02:43,160 --> 00:02:47,079 Speaker 2: the hiring process and get your it can be a 56 00:02:47,200 --> 00:02:50,480 Speaker 2: real pain. And so you're like, I've submitted my resume, 57 00:02:50,600 --> 00:02:52,720 Speaker 2: I've reached out multiple times, I feel like I'm not 58 00:02:52,760 --> 00:02:55,040 Speaker 2: hearing back. Trying to get hired can be tough, But 59 00:02:55,080 --> 00:02:57,000 Speaker 2: trying to get hired for a contract position can be 60 00:02:57,440 --> 00:03:00,520 Speaker 2: much easier because the stakes are lower. And so but 61 00:03:00,560 --> 00:03:02,679 Speaker 2: then once you're once you're in the door, and you're in, 62 00:03:02,800 --> 00:03:05,440 Speaker 2: you're churning out good work and you're valuable to that employer, 63 00:03:05,840 --> 00:03:07,880 Speaker 2: it's so much easier for them to say six months 64 00:03:07,880 --> 00:03:09,840 Speaker 2: down the road, all right, let's bring you on full 65 00:03:09,880 --> 00:03:12,840 Speaker 2: time now, benefits included. But I will say this too. 66 00:03:12,880 --> 00:03:15,639 Speaker 2: One of my friends, like, he got laid off recently 67 00:03:15,760 --> 00:03:18,160 Speaker 2: and he's doing contract work for the employer that laid 68 00:03:18,240 --> 00:03:21,320 Speaker 2: him off, and he's making a much higher hourly rate 69 00:03:21,400 --> 00:03:25,320 Speaker 2: now and he's able to his his spouse is still working, 70 00:03:25,520 --> 00:03:27,680 Speaker 2: so he's able to get benefits there, and so it's 71 00:03:27,680 --> 00:03:30,720 Speaker 2: actually been in some ways a better situation for him. 72 00:03:30,720 --> 00:03:33,400 Speaker 2: So I think some people are maybe just reticent to 73 00:03:33,440 --> 00:03:36,560 Speaker 2: even consider freelance and contract positions, and I just think 74 00:03:36,560 --> 00:03:37,800 Speaker 2: it's something that should be on the table. 75 00:03:37,960 --> 00:03:42,960 Speaker 1: Okay, here's something that I am very interested in. You 76 00:03:43,000 --> 00:03:45,000 Speaker 1: can put more in your retirement accounts. Now. 77 00:03:45,760 --> 00:03:49,000 Speaker 2: Yeah, So this is fun And it happens every year 78 00:03:49,120 --> 00:03:54,120 Speaker 2: or two where the contribution limits for retirement accounts goes up, 79 00:03:54,160 --> 00:03:57,080 Speaker 2: and they all go up at different rates, depending on 80 00:03:57,600 --> 00:04:00,600 Speaker 2: different things, partly based on the rate of inflation. But 81 00:04:01,680 --> 00:04:03,800 Speaker 2: your next year in twenty twenty six, you're going to 82 00:04:03,840 --> 00:04:05,800 Speaker 2: be able to contribute more to your four one K 83 00:04:05,960 --> 00:04:07,840 Speaker 2: to your four or three B if you are the 84 00:04:07,920 --> 00:04:09,680 Speaker 2: kind of person and if you if you're the kind 85 00:04:09,680 --> 00:04:12,600 Speaker 2: of person who wants to max out your retirement accounts. 86 00:04:12,800 --> 00:04:16,520 Speaker 2: You're my kind of person, and not many people can 87 00:04:16,640 --> 00:04:19,960 Speaker 2: do this. Obviously, it's really hard to contribute twenty four 88 00:04:20,480 --> 00:04:25,000 Speaker 2: five hundred dollars a year to your workplace retirement account. 89 00:04:25,000 --> 00:04:26,960 Speaker 2: In addition to that, you can contribute instead of seven 90 00:04:27,000 --> 00:04:30,480 Speaker 2: thousand dollars, you can contribute seventy five hundred to your 91 00:04:30,520 --> 00:04:35,400 Speaker 2: traditional or roth ira, And so it's just important to mention. 92 00:04:35,800 --> 00:04:38,200 Speaker 2: I think these are good goals for people to have 93 00:04:38,240 --> 00:04:42,560 Speaker 2: good benchmarks to strive after. And in particular, I love 94 00:04:42,720 --> 00:04:45,560 Speaker 2: the roth Ira bump up. I want people that's one 95 00:04:45,600 --> 00:04:47,320 Speaker 2: of my favorite accounts, and so seeing that you can 96 00:04:47,360 --> 00:04:49,440 Speaker 2: put more money in that is a really good thing. 97 00:04:49,839 --> 00:04:53,679 Speaker 2: And I just divided seventy five hundred dollars by twelve 98 00:04:53,800 --> 00:04:56,640 Speaker 2: twelve months. And if you're seeking to max out your 99 00:04:56,760 --> 00:04:58,440 Speaker 2: roth ira and you want to do it in equal 100 00:04:58,480 --> 00:05:01,400 Speaker 2: contribution amounts every single month, six hundred and twenty five 101 00:05:01,400 --> 00:05:04,440 Speaker 2: dollars a month is what you would need to allocate 102 00:05:04,920 --> 00:05:07,599 Speaker 2: into that roth Ira. And so whether you have it 103 00:05:07,640 --> 00:05:10,800 Speaker 2: through Vanguard or Fidelity or Schwab, just make sure that 104 00:05:10,880 --> 00:05:13,320 Speaker 2: you have that recurring contribution set up and that you're 105 00:05:13,360 --> 00:05:15,680 Speaker 2: investing the money that goes inside of that account. But 106 00:05:15,720 --> 00:05:17,680 Speaker 2: six hundred twenty five bucks a month is the goal 107 00:05:17,960 --> 00:05:19,400 Speaker 2: to shoot for if you want to max out that 108 00:05:19,400 --> 00:05:20,200 Speaker 2: account next year. 109 00:05:20,360 --> 00:05:23,320 Speaker 1: All right, And then I thought this was interesting too, 110 00:05:23,480 --> 00:05:25,440 Speaker 1: because you know, there are so many people who just 111 00:05:25,960 --> 00:05:27,080 Speaker 1: got to have a new car. I used to be 112 00:05:27,120 --> 00:05:28,320 Speaker 1: one of them, got to have a new car all 113 00:05:28,360 --> 00:05:32,560 Speaker 1: the time, and I don't do that anymore. But if 114 00:05:32,640 --> 00:05:35,960 Speaker 1: you're looking to have a car for the long haul, 115 00:05:36,040 --> 00:05:38,760 Speaker 1: there are some cars to get and some to steer 116 00:05:38,760 --> 00:05:39,520 Speaker 1: away from. 117 00:05:39,720 --> 00:05:44,159 Speaker 2: Yeah, and this is one of the yeah, nice, nice, 118 00:05:44,960 --> 00:05:47,839 Speaker 2: I too love dad jokes. Yeah, this was a great 119 00:05:47,880 --> 00:05:50,960 Speaker 2: list for ic cars, and it honestly it was completely 120 00:05:51,000 --> 00:05:54,600 Speaker 2: not shocking, just reinforcing of something we already know from 121 00:05:54,839 --> 00:05:58,680 Speaker 2: other data elsewhere. But Toyotas are more likely to reach 122 00:05:58,680 --> 00:06:01,760 Speaker 2: two hundred and fifty thousand mile something like three point 123 00:06:01,839 --> 00:06:05,400 Speaker 2: seven times more likely to last that long than any 124 00:06:05,440 --> 00:06:08,840 Speaker 2: other maker model. And so if you're like and I 125 00:06:08,839 --> 00:06:11,120 Speaker 2: think this is a really important thing to consider, especially 126 00:06:11,160 --> 00:06:14,680 Speaker 2: with what we've discussed about people being underwater on their 127 00:06:14,680 --> 00:06:19,080 Speaker 2: cars taking out longer car loans, well, one of the 128 00:06:19,080 --> 00:06:23,200 Speaker 2: potential solves to that problem is driving a make and 129 00:06:23,240 --> 00:06:25,560 Speaker 2: model that's going to last you a lot longer, and 130 00:06:25,600 --> 00:06:27,760 Speaker 2: so that's going to ease some of the pain of 131 00:06:27,800 --> 00:06:30,159 Speaker 2: maybe some of those other mistakes that people are making. 132 00:06:30,520 --> 00:06:32,880 Speaker 2: I love the idea of looking at specific makes and 133 00:06:32,920 --> 00:06:35,479 Speaker 2: models on a site like Consumer Reports to see well 134 00:06:35,760 --> 00:06:39,839 Speaker 2: because from year to year the reliability ratings can vary, 135 00:06:40,160 --> 00:06:42,480 Speaker 2: so Consumer Reports is a great place to turn for that. 136 00:06:43,000 --> 00:06:47,919 Speaker 2: But Toyota specifically Lexis also was there Honda right afterwards 137 00:06:47,920 --> 00:06:51,320 Speaker 2: in Acura. So the top four cars that last the longest, 138 00:06:51,360 --> 00:06:52,720 Speaker 2: that are most likely to make it to two or 139 00:06:52,760 --> 00:06:56,960 Speaker 2: fifty thousand miles are Toyotas and Hondas because Honda makes Acura, 140 00:06:57,120 --> 00:07:00,440 Speaker 2: Toyota makes Lexus. So if you're like, if you're stumped 141 00:07:00,480 --> 00:07:02,440 Speaker 2: about what kind of car to get, that's at least 142 00:07:02,440 --> 00:07:04,719 Speaker 2: one knee jerk reaction. That might make some sense. And 143 00:07:04,760 --> 00:07:06,920 Speaker 2: I love the idea. I don't know if you'll actually 144 00:07:07,120 --> 00:07:09,040 Speaker 2: most of us will actually drive cars to two hundred 145 00:07:09,040 --> 00:07:10,920 Speaker 2: and fifty thousand miles. Both of mine are getting close 146 00:07:11,120 --> 00:07:13,680 Speaker 2: to two hundred thousand miles. I'd love to get to 147 00:07:13,720 --> 00:07:16,200 Speaker 2: that point. And if you can, that's a massive financial 148 00:07:16,200 --> 00:07:18,800 Speaker 2: win for you because the longer you keep your car 149 00:07:18,840 --> 00:07:21,760 Speaker 2: on the road. The longer you avoid having a car payment, 150 00:07:22,520 --> 00:07:24,040 Speaker 2: you're just gonna save so much money. I know it 151 00:07:24,080 --> 00:07:26,160 Speaker 2: gets tiresome to go to the mechanic once your car 152 00:07:26,360 --> 00:07:29,040 Speaker 2: passes two hundred thousand miles, but just think of and 153 00:07:29,240 --> 00:07:32,200 Speaker 2: actually and actually document what am I spending to repair 154 00:07:32,280 --> 00:07:35,840 Speaker 2: this car, because I would venture to guess that it's 155 00:07:35,920 --> 00:07:38,120 Speaker 2: a heck of a lot less than what those monthly 156 00:07:38,120 --> 00:07:40,240 Speaker 2: car payments would be if you were to sign up 157 00:07:40,280 --> 00:07:41,080 Speaker 2: for a new loan. 158 00:07:41,320 --> 00:07:45,400 Speaker 1: All right. The host of how to Money on KFI 159 00:07:45,440 --> 00:07:48,160 Speaker 1: is Joel Larsgard, and you can listen to him every 160 00:07:48,680 --> 00:07:51,120 Speaker 1: Sunday from noon to two. You can follow him on 161 00:07:51,160 --> 00:07:54,640 Speaker 1: how to Money Joel and get lots of great financial 162 00:07:54,680 --> 00:07:56,680 Speaker 1: advice like you just heard right here. Thank you, Joel. 163 00:07:57,080 --> 00:07:57,640 Speaker 2: Thanks Amy