WEBVTT - Friday Flight - Crappy Credit Unions, Contractor Scams, & Aldi Everywhere #801 0:00:00.120 --> 0:00:02.920 Welcome to How the Money. I'm Joel and I am 0:00:02.960 --> 0:00:07.400 that Today we're talking crappy credit unions, contractor scams, and 0:00:07.520 --> 0:00:09.080 aldi everywhere. 0:00:28.360 --> 0:00:30.720 Yeah, buddy, this is our Friday flight. I'm excited to 0:00:30.760 --> 0:00:33.680 talk about the most important personal finance story from this 0:00:33.800 --> 0:00:35.479 past week. And I know you've got a little note 0:00:35.520 --> 0:00:37.880 here about maybe buying a tesla. I don't'm not totally 0:00:37.920 --> 0:00:40.920 sure what this note means, but we First, Oh, I 0:00:40.920 --> 0:00:43.160 wanted to give a quick shout out to Todd R 0:00:43.440 --> 0:00:47.199 because he was out there referring our newsletter out to friends. 0:00:47.520 --> 0:00:49.840 So not only does he donate beer to the show, 0:00:50.240 --> 0:00:52.879 he's also spreading the good HTM word out there to 0:00:53.200 --> 0:00:55.520 all of his friends. Appreciate you, Todd, Yeah, thank you, Todd. 0:00:55.560 --> 0:00:58.200 And of course, the ultimate prizes, How Money, socks and 0:00:58.200 --> 0:01:01.360 a beer hang with us. So hopefully more folks will 0:01:01.400 --> 0:01:03.480 get after some of those higher referral numbers. 0:01:03.640 --> 0:01:05.200 So sign up for the newsletter if you haven't, and 0:01:05.240 --> 0:01:07.680 then tell your friends about it through the referral link 0:01:07.800 --> 0:01:10.200 inside of the newsletter when you get it. That's the 0:01:10.200 --> 0:01:12.480 way you kind of earn earned the shout out and 0:01:12.520 --> 0:01:14.760 then eventually earned the socks. Matt just a couple of 0:01:14.760 --> 0:01:16.760 things I wanted to discuss real quick before we get 0:01:16.760 --> 0:01:18.120 to the Friday flight and all the stories. I mean, 0:01:18.160 --> 0:01:21.080 I guess it is kind of newsworthy. Rivian announced they're 0:01:21.120 --> 0:01:24.280 two different less expensive vehicles. 0:01:24.440 --> 0:01:25.000 Yeah, they did. 0:01:25.160 --> 0:01:27.520 If anybody listens to the show, they know I'm kind 0:01:27.560 --> 0:01:30.520 of obsessed with Rivian that that. I think their vehicles 0:01:30.520 --> 0:01:32.839 are the best looking basically ever made. 0:01:32.959 --> 0:01:33.399 Easily. 0:01:33.520 --> 0:01:36.199 Yeah, they've got that kind of classic style but also modernized. 0:01:37.200 --> 0:01:40.440 But man, the first two vehicles they put out, they're 0:01:40.480 --> 0:01:41.920 only for rich people, right, Let's be honest. 0:01:41.959 --> 0:01:45.640 They're really expensive. And so the news like seventy eighty 0:01:45.680 --> 0:01:47.440 thousand dollars for the R one and the T one. 0:01:47.520 --> 0:01:49.160 Oh, well, the R one's gone down in price, but 0:01:49.200 --> 0:01:51.880 it was, I mean it was it was like basically 0:01:52.200 --> 0:01:54.760 six figures if you wanted it at the very beginning. 0:01:54.920 --> 0:01:55.440 Yeah, it was. 0:01:55.520 --> 0:01:57.639 I think it was like ninety five plus. So, oh, 0:01:57.960 --> 0:01:59.600 I think it's gone down in price a little bit. 0:01:59.640 --> 0:02:01.800 But the RW is going to be more like forty five, 0:02:02.000 --> 0:02:04.360 which is a heck of a lot less expensive, and 0:02:04.400 --> 0:02:06.360 the R three is going to be like thirty eight, 0:02:06.400 --> 0:02:08.440 I think is where it's going to start. And that's 0:02:08.480 --> 0:02:11.600 before the tax credit. So I put down because I've 0:02:11.639 --> 0:02:13.360 been talking about this for years and I do. I 0:02:13.360 --> 0:02:16.000 hate spending money on cars, but the one car consider 0:02:16.040 --> 0:02:19.000 spending more money on is like a Ribbean suv if 0:02:19.000 --> 0:02:20.400 the price is right. And so I was like forty 0:02:20.400 --> 0:02:23.239 five grand with the federal tax credit after on top 0:02:23.240 --> 0:02:25.000 of that, I don't know, man, I could see myself 0:02:25.040 --> 0:02:28.200 doing it. So I put one hundred dollars refundable deposit down. 0:02:28.560 --> 0:02:30.280 So that's what's so great. I'm like I might even 0:02:30.320 --> 0:02:32.920 do it too. The fact that it's refundable, like there's 0:02:32.919 --> 0:02:35.280 nothing to lose. Yeah, I mean literally, until I was 0:02:35.280 --> 0:02:36.920 reading the fine printks, I'm like, all right, what is 0:02:37.280 --> 0:02:39.320 because you mentioned it and I kind of dug into 0:02:39.360 --> 0:02:42.400 it a little bit more, and yeah, like until you 0:02:42.440 --> 0:02:43.840 place the order for your car, you can get your 0:02:43.919 --> 0:02:46.320 hundred bucks back and with the credit thirty seven to 0:02:46.320 --> 0:02:49.880 five after the federal rebate to potentially get your hands 0:02:49.919 --> 0:02:52.799 on dude. Like I've been talking big about the Toyota, 0:02:52.919 --> 0:02:55.959 Toyota RAV four and some of those, and they're like 0:02:56.000 --> 0:02:59.240 three four years old. They're like thirty thirty, two thousand dollars, 0:02:59.280 --> 0:03:01.600 so like a few more thousand dollars and all of 0:03:01.639 --> 0:03:04.360 a sudden, you've got a brand new full like full 0:03:04.440 --> 0:03:07.600 EV that can go with three hundred plus miles. We 0:03:07.720 --> 0:03:10.000 might be uh Rivian twinsies. 0:03:10.040 --> 0:03:13.359 We'll see they're super cool. I'm really excited to see 0:03:13.720 --> 0:03:17.480 with the future holds, because there's the electric car market 0:03:17.480 --> 0:03:19.320 seems to have seized up a little bit of slowing down. 0:03:19.680 --> 0:03:22.080 I know, Ford to stopping production of the of the 0:03:22.480 --> 0:03:24.960 electric f one point fifty demand. It's just not quite 0:03:25.040 --> 0:03:27.240 quite there. And part of it just because pricing is 0:03:27.240 --> 0:03:30.240 still so high, especially on some of the bigger electric 0:03:30.520 --> 0:03:33.040 electric cars. And so I'm glad to see Rivian hitting 0:03:33.040 --> 0:03:35.000 this price point that's gonna be a little more accessible 0:03:35.000 --> 0:03:36.880 to a lot of people. There just aren't that many 0:03:36.960 --> 0:03:40.080 cheap EV's out there, and this still still not cheap. 0:03:40.680 --> 0:03:42.120 And I don't know if I'm actually gonna go through 0:03:42.120 --> 0:03:43.640 with it or not, but at least I have reserved 0:03:43.680 --> 0:03:46.760 the right to get one if I want to. Something 0:03:46.800 --> 0:03:48.080 else on the EV front, there was an article in 0:03:48.120 --> 0:03:50.320 the Wall Street Journal about this guy who said he 0:03:50.320 --> 0:03:52.920 paid for a Tesla with subscriptions he canceled. We talk 0:03:52.920 --> 0:03:54.320 about subscription stuff so much. 0:03:54.360 --> 0:03:55.800 I don't really want to dial into that. 0:03:55.840 --> 0:03:57.840 But it was just really really cool to see he 0:03:58.000 --> 0:04:00.680 like fleshed out all the subscriptions he cut and it 0:04:00.720 --> 0:04:02.840 really did come pretty close to equaling his. 0:04:02.840 --> 0:04:03.640 Monthly car payment. 0:04:03.920 --> 0:04:06.200 Which yeah, first off, that means he had a lot 0:04:06.200 --> 0:04:06.840 of subscriptions. 0:04:06.880 --> 0:04:09.840 But basically it's a way for him to offset that. 0:04:10.080 --> 0:04:12.680 I mean sounds like he's financed it unfortunately. Yeah, but 0:04:13.400 --> 0:04:15.320 to minimize some of the expenses that you don't care 0:04:15.360 --> 0:04:18.200 about as much to get get us a sweet ride. Yeah, 0:04:18.240 --> 0:04:19.159 I'm all for that, man. 0:04:19.279 --> 0:04:21.040 So they're called to look and see what you're spending. 0:04:21.160 --> 0:04:23.200 Yeah, all right, Well, speaking of cars, we talked a 0:04:23.240 --> 0:04:26.440 while back about the some of the different privacy policies 0:04:26.480 --> 0:04:30.400 of the car manufacturers. They're pretty crazy. And the Mozilla 0:04:30.480 --> 0:04:32.760 Foundation they found this out. This is some research that 0:04:32.800 --> 0:04:35.480 they did. It was like follow last year, right, yeah, yeah, 0:04:35.480 --> 0:04:38.080 sometime last year. But buying that new car, it gives 0:04:38.080 --> 0:04:41.000 the manufacturer the right to gather information on you, and 0:04:41.040 --> 0:04:42.919 not just information about how it is that you drive, 0:04:43.040 --> 0:04:46.599 Like there are very personal pieces of information that they're collecting. 0:04:46.720 --> 0:04:48.400 Like I don't know how they do this, but like 0:04:48.440 --> 0:04:50.880 your genetics, your sexual. 0:04:50.440 --> 0:04:52.640 Activity as well, if you're the kind of person to 0:04:53.320 --> 0:04:55.200 you know, procreate in the back of the back of 0:04:55.279 --> 0:04:55.479 your car. 0:04:55.520 --> 0:04:58.440 I guess, which I've Joel's been known to do. 0:04:58.520 --> 0:05:00.360 I guess, I guess don't. 0:05:00.200 --> 0:05:03.000 Give out my personal infodog. Enough of that. But now 0:05:03.080 --> 0:05:05.640 we know, and this is thanks to reporting from the 0:05:05.720 --> 0:05:08.640 New York Times, that they're not just actually collecting the data, 0:05:08.680 --> 0:05:12.240 but no surprise, they're also selling that information to the 0:05:12.240 --> 0:05:16.200 different insurance companies out there without your knowledge. And that's 0:05:16.279 --> 0:05:18.960 the crux of the reporting here, which means that rate 0:05:19.040 --> 0:05:21.520 increases could be coming, and not just because the insurance 0:05:21.560 --> 0:05:24.680 market isn't turnoil, but because your insurance company now has 0:05:24.800 --> 0:05:27.239 knowledge to the tune of something like one hundred plus 0:05:27.240 --> 0:05:31.719 pages of documentation of your potentially subpar driving habits and 0:05:31.800 --> 0:05:32.680 other activities. Yeah. 0:05:32.720 --> 0:05:35.440 I mean, it's freaky stuff, right when you dig in 0:05:35.480 --> 0:05:37.320 the fact that one the car companies know when they're 0:05:37.320 --> 0:05:40.320 collecting intentionally all this data on you, they're selling stuff. 0:05:40.320 --> 0:05:42.039 And then not only are they just selling this like 0:05:42.080 --> 0:05:46.240 anonymized data, they're also selling your personalized data to these 0:05:46.240 --> 0:05:48.560 insurance companies and people are finding out about it the 0:05:48.560 --> 0:05:50.919 hard way when they get one of those rate increases. Basically, 0:05:50.960 --> 0:05:53.720 it's like if you break hard, or you speed regularly, 0:05:53.960 --> 0:05:55.680 you know you're going over eighty miles an hour, or 0:05:56.600 --> 0:05:58.960 you accelerate quickly. Those are the kind of things they're 0:05:59.000 --> 0:06:01.160 looking for. And then they're telling the insurance companies they're 0:06:01.200 --> 0:06:03.680 tatling on you behind your back, like your brother or 0:06:03.720 --> 0:06:06.160 sister did when you were a kid, and like the 0:06:06.360 --> 0:06:08.160 for instance they mentioned in the Chevy Bolt, which is 0:06:08.279 --> 0:06:10.560 actually speaking of vv's the cheapest v out there on 0:06:10.600 --> 0:06:11.960 the market, one of the ones we've said take a 0:06:11.960 --> 0:06:14.760 look at well, GM seems to be at the forefront 0:06:14.839 --> 0:06:17.360 of this trend. So your insurance company is going to 0:06:17.400 --> 0:06:19.960 hear about how you're using that Chevy Bolt via the 0:06:20.000 --> 0:06:23.120 third party website lexus Nexus. So Chevy sells the data 0:06:23.240 --> 0:06:26.560 to lexis Nexus and they sell it to whoever wants it. 0:06:26.560 --> 0:06:30.640 It's a crime system. And so we've talked Matt about 0:06:30.680 --> 0:06:33.440 before saving money on your insurance by allowing your insurance 0:06:33.480 --> 0:06:36.840 company to monitor you. I'm doing that on purpose right now, 0:06:37.080 --> 0:06:39.279 but it's a direct relationship with my insurance company where 0:06:39.320 --> 0:06:42.520 I stand the benefit where my rates could potentially go 0:06:42.640 --> 0:06:45.680 down if they see that my driving habits are decent. 0:06:45.440 --> 0:06:46.560 Could they potentially go up? 0:06:47.160 --> 0:06:49.760 No, they can't. That's specifically along the they outline that. 0:06:49.800 --> 0:06:51.960 They outline that specifically. What if they do go up? 0:06:52.080 --> 0:06:53.680 I mean, and they're like, oh no, no, it's not 0:06:53.680 --> 0:06:56.280 because you're driving. It's because that's just what's going on. 0:06:56.400 --> 0:07:00.360 That's when I sue, all right, I've done the same thing. 0:07:00.440 --> 0:07:02.000 I mean, let me say that your rates will drop 0:07:02.040 --> 0:07:05.440 somewhere between zero and thirty percent based on your driving. 0:07:05.480 --> 0:07:07.400 Okay, how you drive, and you can. 0:07:07.279 --> 0:07:09.039 Follow along and they've got like a little score and 0:07:09.080 --> 0:07:10.040 trophies and stuff. 0:07:09.840 --> 0:07:10.400 So you can it. 0:07:10.440 --> 0:07:12.080 Can they kind of incentivize you to be a good 0:07:12.120 --> 0:07:12.920 driver too, dude? 0:07:12.960 --> 0:07:15.480 No, totally. Like a couple of years when I allowed this. 0:07:15.640 --> 0:07:17.400 Yeah that you like, download the app on your phone. 0:07:17.440 --> 0:07:20.680 It knows when you're driving, and it changes the way 0:07:20.680 --> 0:07:23.360 that you drive. Like when you have incentives like that, 0:07:23.400 --> 0:07:27.240 when you stand to benefit to financially gain from driving safer, 0:07:27.680 --> 0:07:29.600 well not only do you end up winning from an 0:07:29.640 --> 0:07:32.000 insurance standpoint, but like, Okay, this is kind of great 0:07:32.000 --> 0:07:34.920 because I'm also less likely to get into an accident 0:07:34.960 --> 0:07:37.480 because I'm driving like a granny. I am less likely 0:07:37.520 --> 0:07:40.360 to have to pay a speeding ticket because I ain't speed. No, more. 0:07:40.400 --> 0:07:42.080 That's right, I kind of dig it. Yep, all the above, 0:07:42.600 --> 0:07:45.480 I agree, But again I'm we're willing consent exactly. 0:07:45.560 --> 0:07:48.239 Yeah, we're doing it proactively on purpose, with a tangible 0:07:48.280 --> 0:07:50.120 reward at the end. But the fact that this is 0:07:50.120 --> 0:07:53.240 happening without our knowledge because of something very deep in 0:07:53.280 --> 0:07:55.600 the terms and services, because you basically said they're doing 0:07:55.640 --> 0:07:57.960 it without your knowledge, and that's essentially true because nobody 0:07:58.000 --> 0:08:00.880 reads and maybe we should, but we wouldn't ever get 0:08:00.920 --> 0:08:03.120 to do anything fun with our lives the terms and services, right, 0:08:03.160 --> 0:08:05.800 and so in our mind, I would say, it's another 0:08:05.840 --> 0:08:06.760 reason not. 0:08:07.120 --> 0:08:08.360 To get a new car. Oh my gosh. 0:08:08.480 --> 0:08:10.560 Yeah, you know, I need to check the terms and 0:08:10.560 --> 0:08:13.560 services of Rivian before in twenty twenty six when that 0:08:13.600 --> 0:08:14.040 comes out. 0:08:13.960 --> 0:08:15.920 They send you like a blood sample kit and they 0:08:15.960 --> 0:08:18.000 like pick your thumb and then that's how they get 0:08:18.000 --> 0:08:20.440 the DNA genetics. Maybe maybe it really does make me 0:08:20.440 --> 0:08:22.320 think twice about like it does make me think back 0:08:22.360 --> 0:08:25.400 to getting like an eighties land cruiser or something like that, 0:08:25.400 --> 0:08:26.920 to where you don't have to worry about any of 0:08:26.960 --> 0:08:27.520 that stuff and. 0:08:27.640 --> 0:08:29.120 Then you just have to worry about it breaking down 0:08:29.120 --> 0:08:29.520 all the time. 0:08:29.560 --> 0:08:30.840 Well, you gotta take care of it. But do you 0:08:30.840 --> 0:08:32.320 ever think about that, the fact that all of our 0:08:32.640 --> 0:08:36.200 cars today it's nothing but computers and electronics. 0:08:36.200 --> 0:08:37.839 Oh yeah, And you know this is making me think 0:08:37.840 --> 0:08:40.040 about that even more. It's just, hey, maybe I'm even 0:08:40.040 --> 0:08:42.600 more worried about upgrading to a newer ride because there 0:08:42.600 --> 0:08:44.559 are all these other downside potentials Like. 0:08:44.559 --> 0:08:46.240 What if there's a nuclear attack on our country and 0:08:46.280 --> 0:08:50.760 there's an EMP that's the electromagnetic pulse, Yeah, fries all 0:08:50.760 --> 0:08:52.720 of our cars and then we can't high tail it 0:08:52.760 --> 0:08:54.440 for the hills. Well everything about it. 0:08:54.720 --> 0:08:57.839 Dude, That to all cars, because even not just modern ones. 0:08:57.920 --> 0:09:00.320 I think, like the older cars, they don't have actual likes. 0:09:00.320 --> 0:09:03.440 It's all physical, like a carburetor that's a mechanical device 0:09:03.440 --> 0:09:06.959 as opposed to a computer that I don't know. I'm like, 0:09:07.000 --> 0:09:08.559 I'm not a car guy, then that's smart enough to 0:09:08.600 --> 0:09:09.560 know that me neither. 0:09:09.640 --> 0:09:11.480 But I am smart enough to know that this is 0:09:11.559 --> 0:09:13.880 ridiculous and car manufacturers need to change their tune on 0:09:13.920 --> 0:09:16.960 this cause it makes everybody uncomfortable. And if we find 0:09:16.960 --> 0:09:20.000 out as consumers that hey, this the brain in particular 0:09:20.080 --> 0:09:22.720 is the one selling our information behind our backs, causing 0:09:22.840 --> 0:09:25.000 us costing us money and down the line within our 0:09:25.040 --> 0:09:28.160 insurance companies. Then we're not going to buy your herds. 0:09:28.200 --> 0:09:29.440 I mean, it is as simple as that. 0:09:29.559 --> 0:09:32.079 Hopefully that is not the case with Rivian, Yeah, our 0:09:32.080 --> 0:09:34.880 beloved Rivian. But okay, So there's actually a website where 0:09:34.880 --> 0:09:37.400 you can input your your vin and you can see 0:09:37.920 --> 0:09:41.000 what you're making models security risks are and so the 0:09:41.040 --> 0:09:44.160 website is Vehicle Privacy Report dot com. We'll make sure 0:09:44.240 --> 0:09:46.480 to link to that in the show notes. So in 0:09:46.600 --> 0:09:49.640 news that bums two best buds out Joel, the average 0:09:49.679 --> 0:09:52.679 personal savings rate continues to go down. It's now shy 0:09:52.920 --> 0:09:56.960 of four percent. That is certainly worse than the historical 0:09:56.960 --> 0:10:00.320 savings rate, which is around six ish percent. It's not 0:10:00.360 --> 0:10:02.679 all that great either, to be honest, but it's gotten worse, 0:10:03.080 --> 0:10:05.320 far short of some of the Asian countries like Japan, 0:10:05.440 --> 0:10:08.320 right or yeah or yeah, Sweden. I think it's like 0:10:08.520 --> 0:10:10.640 in the twenties or something there. Okay, I feel like 0:10:10.640 --> 0:10:14.480 they do everything right over there. The consumers are spending, 0:10:14.520 --> 0:10:17.720 they're propping up the economy, but it also harms individuals' 0:10:17.760 --> 0:10:21.320 ability to then deal with potential money emergencies that might arise. 0:10:21.600 --> 0:10:26.079 It prioritizes buying stuff today unfortunately over the freedom that 0:10:26.120 --> 0:10:29.240 they could be purchasing for themselves tomorrow. And it's our 0:10:29.280 --> 0:10:32.520 belief that the minimum savings rate for most folks should 0:10:32.520 --> 0:10:36.440 be around fifteen percent. That's our gold standard. And it's 0:10:36.440 --> 0:10:39.320 no wonder that Americans are they're living on the financial edge. 0:10:39.320 --> 0:10:42.280 They're on the precipice when they dedicate so few of 0:10:42.320 --> 0:10:46.040 their money to future planning, allows them that luxury to 0:10:46.160 --> 0:10:48.200 not have to worry about living on the edge. 0:10:48.200 --> 0:10:49.920 Sorry, three point six percent, it's not going to cut 0:10:49.920 --> 0:10:52.480 it right. It's you're not going to gain much ground 0:10:52.600 --> 0:10:54.840 that way. And obviously that's the average matt some people 0:10:54.880 --> 0:10:57.120 are living. They're spending more than they make, and that's 0:10:57.120 --> 0:10:59.280 where credit card Deck gives it. But having a three 0:10:59.320 --> 0:11:03.000 percent to four percent savings rate, you're gonna get nowhere quick. 0:11:03.360 --> 0:11:05.480 You're gonna be spending your tires. Those money goals that 0:11:05.520 --> 0:11:08.160 you have for your future, you're not gonna be reaching them. 0:11:08.280 --> 0:11:10.600 And I'm not saying it's it's easy, especially in an 0:11:10.640 --> 0:11:13.480 era of high inflation that we're coming off of. 0:11:14.040 --> 0:11:17.240 Literally, saving threety four percent is just keeping you above 0:11:17.760 --> 0:11:19.600 above water. That's just keeping you afloat. 0:11:19.640 --> 0:11:21.240 That's right, So we got to do more, and this 0:11:21.320 --> 0:11:23.320 show is dedicated to helping you do that. And by 0:11:23.360 --> 0:11:25.360 the way, if you've been listening to How To Money 0:11:25.360 --> 0:11:27.120 for a while, hopefully hopefully you're not in that boat. 0:11:27.920 --> 0:11:31.120 And we also believe that basically every American can tighten 0:11:31.160 --> 0:11:33.920 their belt to increase that all important financial breathing room. 0:11:34.200 --> 0:11:37.600 And Matt, on that note, we talk regularly about earning 0:11:37.600 --> 0:11:40.400 more on your savings, so hopefully you have enough in 0:11:40.440 --> 0:11:43.120 your savings to make it worthwhile. But we consistently mentioned 0:11:43.120 --> 0:11:45.680 some of our favorite online banks that pay competitive rates. 0:11:46.040 --> 0:11:49.280 But and I've just noticed this recently, small banks and 0:11:49.320 --> 0:11:53.800 credit unions are offering solid rates that are incredibly competitive 0:11:54.040 --> 0:11:56.600 with some of these online products. And I saw one 0:11:56.640 --> 0:11:59.080 of my local credit unions paying five point twenty five 0:11:59.120 --> 0:12:02.280 percent on a CD, which is essentially that's better than 0:12:02.480 --> 0:12:04.520 anything I'm seeing from any of the online banks, which 0:12:04.520 --> 0:12:07.360 are now in the upper fours. So it's worth of 0:12:07.360 --> 0:12:10.360 at least looking into community banks and credit unions to 0:12:10.440 --> 0:12:13.080 see what they're paying. So yeah, like, do a quick 0:12:13.120 --> 0:12:15.240 search for a few credit unions in your area, hop 0:12:15.280 --> 0:12:18.600 onto their website. Typically they post their rates publicly and 0:12:18.760 --> 0:12:20.440 that way you don't have to go driving around talking 0:12:20.440 --> 0:12:21.959 to people in person or anything like that, because who 0:12:21.960 --> 0:12:22.400 wants to do that? 0:12:22.440 --> 0:12:23.760 But like, what wants to do that? Yeah, so hop 0:12:23.760 --> 0:12:24.480 online check it out. 0:12:24.520 --> 0:12:27.160 You might find that actually, wait a second, the local 0:12:27.160 --> 0:12:30.080 small bank or credit union is actually offering better perks 0:12:30.120 --> 0:12:31.640 maybe than just some of the national players. 0:12:31.720 --> 0:12:34.680 Yeah, but all the note of credit unions, some really 0:12:34.720 --> 0:12:37.680 discouraging information came out recently about the high cost of 0:12:38.080 --> 0:12:41.280 junk fees at many local credit unions. We're shocked to 0:12:41.280 --> 0:12:43.839 see this, to say the least. Yeah. So typically, I mean, 0:12:43.880 --> 0:12:47.160 credit unions are nonprofits and they're supposed to be a 0:12:47.320 --> 0:12:51.199 respite for customers to avoid fee laden tactics of the 0:12:51.240 --> 0:12:55.079 biggest banks that we rail on pretty regularly. But unfortunately 0:12:55.120 --> 0:12:57.520 it's not as much as we had hoped the benefits 0:12:57.559 --> 0:12:59.920 of the credit unions. So there's data, and this comes 0:13:00.120 --> 0:13:02.200 from the state of California, which is actually the only 0:13:02.200 --> 0:13:05.840 state that requires credit unions to disclose how much revenue 0:13:05.880 --> 0:13:08.480 that they generate from fees, and it's actually quite a lot. 0:13:08.520 --> 0:13:12.440 The worst offenders are earning around ten percent of their 0:13:12.520 --> 0:13:16.679 overall revenue from overdraft and late fees. Banks, on the 0:13:16.720 --> 0:13:19.320 other hand, of the average less than half of a percent. 0:13:19.760 --> 0:13:22.560 This is a massive, stinking gap, and part of it 0:13:22.600 --> 0:13:24.160 I think is in part due to the fact that 0:13:24.440 --> 0:13:27.240 big banks they're under the magnifying glass, right, Like, I 0:13:27.240 --> 0:13:30.000 think there's more scrutiny that's being paid to them and 0:13:30.000 --> 0:13:32.360 so they've had to kind of straighten up a little bit, 0:13:32.400 --> 0:13:36.560 whereas I think credit unions are slowly. The article is great. 0:13:36.760 --> 0:13:38.600 They talk about mission drift and how they're sort of 0:13:38.720 --> 0:13:41.480 getting away from sort of their original mission and like 0:13:41.800 --> 0:13:44.200 they're starting to name stadiums after these credit unions. There's 0:13:44.200 --> 0:13:47.480 like private jets that the different credit unions have purchased, 0:13:47.520 --> 0:13:50.600 which sounds more like bank behavior to me. 0:13:50.840 --> 0:13:53.920 Now, no local credit uniting to read about and to 0:13:53.920 --> 0:13:56.400 see how bad it's gotten and fee You would think 0:13:56.440 --> 0:13:59.400 fee reduction would be one of the main goals at 0:13:59.440 --> 0:14:01.880 a credit union would have for their members. And the 0:14:01.920 --> 0:14:05.160 thing is too, some of the proposed rules from the 0:14:05.200 --> 0:14:07.880 CFPB wouldn't apply to a lot of these credit unions 0:14:07.920 --> 0:14:09.880 because they're just so small. Typically it's a like, oh, 0:14:09.920 --> 0:14:11.880 banks with over one hundred branches or something like that, 0:14:12.000 --> 0:14:14.600 So most credit unions would skate underneath that and still 0:14:15.040 --> 0:14:17.000 be charging customers ridiculous fees. 0:14:17.080 --> 0:14:19.920 Sure well, so obviously credit unions they've got perks right, 0:14:19.960 --> 0:14:22.360 like lower rates on credit cards. Often you can get 0:14:22.400 --> 0:14:26.120 a better car loan mortgage rates their helock rates. But now, 0:14:26.240 --> 0:14:28.640 joining a credit union does come with a warning, and 0:14:28.680 --> 0:14:31.080 honestly it's always been a good idea. You still need 0:14:31.120 --> 0:14:33.760 to make sure you are aware of what you're getting into, 0:14:34.160 --> 0:14:35.920 and I do think it's still a good idea to 0:14:35.960 --> 0:14:38.200 have a relationship with a local credit union for those 0:14:38.240 --> 0:14:41.240 different products. But when it comes to the majority of 0:14:41.240 --> 0:14:43.960 your banking, we have always recommended going with an online 0:14:44.000 --> 0:14:46.520 bank that's paying a higher rate on your high yield 0:14:46.520 --> 0:14:49.680 savings accounts, the ability to earn more on your emergency 0:14:49.680 --> 0:14:51.920 fund while being able to avoid some of these fees 0:14:52.080 --> 0:14:54.000 that you're going to get hit with were you to 0:14:54.200 --> 0:14:56.920 overdraw your account. Yeah, that seems like the best path forward. 0:14:57.000 --> 0:15:00.280 Capital one ally discover CI Those are the the ones 0:15:00.320 --> 0:15:02.760 we mentioned most consistently as some of the best online 0:15:02.880 --> 0:15:05.280 online banks to be with. It just goes to show 0:15:05.280 --> 0:15:07.320 too that not all credit unions are credit equal, Matt. 0:15:07.360 --> 0:15:09.480 Some of these credit unions are taking advantage of people 0:15:10.040 --> 0:15:11.160 even though they have this rate. 0:15:11.320 --> 0:15:12.640 Yeah, like that's the other part of it. I don't 0:15:12.640 --> 0:15:14.480 want to. I don't. I hate for folks out there 0:15:14.480 --> 0:15:16.600 who love their local credit union or folks who even 0:15:16.880 --> 0:15:20.240 work for their local and they're saying, dudes, that's not us. 0:15:20.360 --> 0:15:22.320 Yeah we know, yeah, we totally understand. 0:15:22.400 --> 0:15:24.320 But there are some bad players out there, and they're 0:15:24.320 --> 0:15:26.960 given the whole industry of black eye sadly because of 0:15:27.160 --> 0:15:30.160 the ridiculous number and amount of fees they're charging to 0:15:30.200 --> 0:15:32.800 a lot of their customers. So credit unions that are 0:15:32.800 --> 0:15:35.280 doing that, we call for you to shape up, all right, 0:15:35.280 --> 0:15:36.960 and Matt if you're if you're trying to up your 0:15:36.960 --> 0:15:39.040 savings rate, we're just talking about savings rates a second ago, 0:15:39.360 --> 0:15:41.600 maybe don't take this tactic. There was a there was 0:15:41.640 --> 0:15:44.760 a couple posted something on TikTok the other day that 0:15:44.840 --> 0:15:47.240 they split a cup of coffee when they got to breakfast. 0:15:47.240 --> 0:15:48.520 Did you see this one? I did? 0:15:48.720 --> 0:15:51.880 Okay it, I don't know it. Just I'm all about 0:15:51.920 --> 0:15:53.880 increasing your savings rate. What are you going to go 0:15:53.880 --> 0:15:56.040 from three point six to three point sixty five percent? 0:15:56.080 --> 0:15:58.200 Like when you're doing that? Come on, that's just that's 0:15:58.400 --> 0:16:03.240 definitely the definition of cheap, not frugal. Oh, unlimited refills 0:16:03.240 --> 0:16:04.640 on the one cup and just keep drinking out of 0:16:04.680 --> 0:16:04.920 the sand. 0:16:05.040 --> 0:16:05.800 That's just sorry. Guys. 0:16:05.840 --> 0:16:08.200 If you can't afford two cups of coffee of drip 0:16:08.240 --> 0:16:10.400 coffee at two dollars and fifty cents, probably better to 0:16:10.440 --> 0:16:11.200 make your coffee at home. 0:16:11.240 --> 0:16:13.800 Yeah, here's the question. Though, This is all not all 0:16:13.840 --> 0:16:16.360 that different than was it last year that I talked 0:16:16.360 --> 0:16:19.280 about how oh your whitewater thing went six Flags? Yeah? 0:16:19.160 --> 0:16:21.120 When we took we took the kids to six Flags. 0:16:21.160 --> 0:16:23.600 We were there all day, the whole family, and we 0:16:23.680 --> 0:16:26.600 bought one of those refillable plastic cups with a little 0:16:26.680 --> 0:16:28.440 lanyard like a handle on it and stuff like that. 0:16:28.480 --> 0:16:30.960 Which the reason we got one, and the reason we 0:16:30.960 --> 0:16:33.480 were willing to pay twenty four dollars for the thing 0:16:33.560 --> 0:16:36.080 was because the free refills. And so the question is, 0:16:36.160 --> 0:16:38.520 how is that do you feel? And what about when 0:16:38.600 --> 0:16:41.040 y'all went to Disney you got the popcorn bucket, and 0:16:41.080 --> 0:16:44.160 your whole family's split in this popcorn bucket free refills 0:16:44.200 --> 0:16:44.880 as much as you want. 0:16:44.960 --> 0:16:46.800 It's not free, you pay for every revell, but it's 0:16:46.840 --> 0:16:47.680 just cheaper refills. 0:16:47.680 --> 0:16:49.480 Oh that's right. Yah, Yeah, it's like three dollars as 0:16:49.520 --> 0:16:52.280 opposed to twenty five. Yeah, So I guess the question 0:16:52.400 --> 0:16:55.400 is is there a difference between something like that. I 0:16:55.400 --> 0:16:58.120 think there is, versus is when someone's waiting on you. 0:16:58.280 --> 0:17:02.520 I like, you're actually different sit down service expectations around that. 0:17:02.640 --> 0:17:04.000 I think I think it's different. I do. 0:17:04.080 --> 0:17:06.400 I think it's different. So and maybe I'm not. Maybe 0:17:06.440 --> 0:17:08.680