WEBVTT - Ask HTM - Maximizing Returns on your Savings, Networking While in Grad School, & Avoiding Capital Gains on the Sale of a House #334 0:00:00.240 --> 0:00:02.600 Welcome to How the Money. I'm Joel and I and 0:00:02.800 --> 0:00:25.599 Matt's and today we are answering your listener questions. That's right, Joel, 0:00:25.600 --> 0:00:28.520 We've got a listener question Monday episode lined up for folks, 0:00:28.640 --> 0:00:31.080 and we've got five questions that we're gonna answer on 0:00:31.200 --> 0:00:34.199 this episode, including some ways that you can maximize your savings. 0:00:34.520 --> 0:00:37.960 We've got some grad school considerations that we're gonna talk through, 0:00:38.040 --> 0:00:42.159 as well as ways to avoid capital gains tax when 0:00:42.159 --> 0:00:45.120 it comes to selling uh some real estate. So we've 0:00:45.120 --> 0:00:47.800 got those questions plus two more. But first, man, we 0:00:47.840 --> 0:00:52.120 wanted to talk about software on your computer. Doesn't sounds 0:00:52.200 --> 0:00:55.319 so exciting. So recently we talked about how I had 0:00:55.360 --> 0:00:59.400 avoided updating the iOS on my computer for like multiple 0:00:59.480 --> 0:01:03.640 years in order from my old school Microsoft Excel to 0:01:03.760 --> 0:01:06.520 continue to work, right, because with an updates, I knew 0:01:06.520 --> 0:01:08.959 like that legacy version wasn't gonna work anymore. And we 0:01:09.000 --> 0:01:10.800 basically talked about how that was cheap, right, it was 0:01:10.840 --> 0:01:14.720 a cheap move to avoid the software patches, bug fixes, 0:01:14.760 --> 0:01:19.080 everything else that accompany a new software update. However, listener, Scott, 0:01:19.160 --> 0:01:21.080 he reached out to us and mentioned how we need 0:01:21.120 --> 0:01:23.920 to check out Libra Office. Had had you heard of 0:01:24.000 --> 0:01:26.160 Libra Office before he sent that email. I had not, 0:01:26.240 --> 0:01:27.760 But when he sent the email, he said that it 0:01:27.840 --> 0:01:31.440 was the newer version of Open Office, which was now 0:01:31.520 --> 0:01:34.319 defunct I think, right, or yeah, it changed or something. Yeah, 0:01:34.360 --> 0:01:36.160 and I remember open Office back in the day, but 0:01:36.160 --> 0:01:38.720 I totally forgot that Libra Office was the thing. Yeah. 0:01:38.760 --> 0:01:41.760 So this is an open platform software and they basically 0:01:41.760 --> 0:01:44.319 have all the different apps, all the different programs that 0:01:44.360 --> 0:01:47.200 you would typically use when you get like Microsoft Office 0:01:47.280 --> 0:01:50.080 or three whatever they're calling it now. Like they've got 0:01:50.080 --> 0:01:55.680 their document program that's called Writer Document and their equivalent 0:01:55.720 --> 0:01:59.520 to Excel is called CALC Spreadsheet. So I love how 0:01:59.600 --> 0:02:02.800 they've got it's totally white label generic names. But basically 0:02:02.880 --> 0:02:06.280 they are like old school versions of Microsoft that I mean, 0:02:06.320 --> 0:02:08.000 it's open source and so they've written it to be 0:02:08.040 --> 0:02:11.880 able to you know, it's compatible with newer Excel documents, 0:02:11.919 --> 0:02:14.200 like you can open the file formats that are that 0:02:14.280 --> 0:02:17.720 you currently use with you know, Word or Excel. However, 0:02:18.040 --> 0:02:20.960 it's not a Microsoft program and so it's open source. Uh, 0:02:21.000 --> 0:02:23.360 it means other folks keep up with it. And best 0:02:23.360 --> 0:02:25.840 of all, of course, it is completely free, so you 0:02:25.840 --> 0:02:27.760 can avoid paying you know, like what we talked about 0:02:27.800 --> 0:02:30.239 was paying that annual fee, uh that one time once 0:02:30.240 --> 0:02:32.880 a year cost to get a little bit of a discount, 0:02:33.040 --> 0:02:36.360 or you can go full on free avoid paying that altogether. 0:02:36.760 --> 0:02:38.400 And when we got that email from Scott Matt, you 0:02:38.400 --> 0:02:40.560 were like, all right, give this the shots. He immediately 0:02:40.600 --> 0:02:42.120 jumped on. I was like, what is this? What is 0:02:42.160 --> 0:02:44.600 this magic? And anywhere near is good? And you felt 0:02:44.600 --> 0:02:46.600 like it was definitely better than like the Google version 0:02:46.600 --> 0:02:48.880 that you were using, right yeah, I mean yeah, So 0:02:48.960 --> 0:02:51.160 what's great about like one of the great things about 0:02:51.320 --> 0:02:54.560 at least about CALC Spreadsheet is that you can, or 0:02:54.680 --> 0:02:57.200 in the whole platform too, you can create shortcuts, uh. 0:02:57.200 --> 0:02:59.519 And that's one of the cool things that you know, 0:02:59.520 --> 0:03:01.799 where you're bits, like say you are using like Google 0:03:01.800 --> 0:03:04.120 Sheets or Google Docs things like that. There's only so 0:03:04.200 --> 0:03:05.840 much that you can do within a web browser, right, 0:03:06.120 --> 0:03:08.440 but I love how you can go and create these shortcuts. 0:03:08.480 --> 0:03:11.560 You can create customized key strokes within these programs, and 0:03:11.600 --> 0:03:13.960 so you can get it to perform, you know, exactly 0:03:14.040 --> 0:03:16.840 like Microsoft Excel or even better, you know, you can 0:03:16.919 --> 0:03:18.919 kind of tailor fit it to to what, you know, 0:03:18.960 --> 0:03:22.360 whatever your specific needs are. Uh. So yeah, I just 0:03:22.440 --> 0:03:24.640 actually checked it out and I'm gonna definitely give it 0:03:24.639 --> 0:03:26.680 a go. Man nice all right, well yeah, if you 0:03:26.680 --> 0:03:29.480 can cut it down from eighty bucks a year to free, 0:03:29.520 --> 0:03:31.720 that's uh, that's what I'm saving. So host fig thanks 0:03:31.720 --> 0:03:33.680 to Scott for sending us an email. Now, we always 0:03:33.760 --> 0:03:36.200 learned from our listeners. I love that I learned from listeners. 0:03:36.240 --> 0:03:38.560 In the Facebook group, we get emails I feel like 0:03:38.720 --> 0:03:41.600 multiple times a day from listeners who have different suggestions 0:03:41.640 --> 0:03:44.800 and like, hey, dummies, what about this? And it's helpful 0:03:44.800 --> 0:03:46.480 because you know what you and I we don't know everything, 0:03:46.560 --> 0:03:49.000 not even close to it. And so it really does 0:03:49.040 --> 0:03:51.040 take the how of money community to help each other out. 0:03:51.120 --> 0:03:53.080 And those listener emails help a lot. They really mean 0:03:53.080 --> 0:03:55.040 a lot. So thank you Scott and other people for 0:03:55.080 --> 0:03:57.600 reaching out whenever we're wrong or we just like don't 0:03:57.600 --> 0:03:59.360 know something. All right, Matt, let's mention the beer that 0:03:59.400 --> 0:04:00.880 we're having on the show today. This one is called 0:04:01.160 --> 0:04:04.400 Seven Deadly Stounts. It's by Monday Night Brewing. They are 0:04:04.480 --> 0:04:06.560 around the corner from us, one of our favorite local brewers, 0:04:06.600 --> 0:04:09.400 and this is a particularly special staut that they brewed, 0:04:09.480 --> 0:04:12.080 and we're excited to have this one on the show today. Yeah, 0:04:12.120 --> 0:04:13.600 this is normally the kind of beer that we would 0:04:13.640 --> 0:04:17.360 have like on a really special occasion. So I don't 0:04:17.360 --> 0:04:19.440 know why we haven't cracked this thing open yet. Uh 0:04:19.480 --> 0:04:22.120 that I am really excited about sharing our thoughts on 0:04:22.120 --> 0:04:24.159 this beer at the end of this episode. Let's do 0:04:24.200 --> 0:04:26.680 it right. But for now, let's get onto the listener questions. 0:04:27.080 --> 0:04:29.880 And for folks that want to ask a question on 0:04:29.880 --> 0:04:32.600 any future on an upcoming Ask How the Money episode, 0:04:32.600 --> 0:04:35.039 just go to our website how to Money dot com 0:04:35.080 --> 0:04:38.719 slash ask. There are simple instructions there so you can 0:04:38.760 --> 0:04:41.880 submit your voicemail question and we hope to be able 0:04:41.880 --> 0:04:43.440 to take it soon. And Matt, let's get to the 0:04:43.480 --> 0:04:45.800 first one for this episode. This is from a listener 0:04:45.880 --> 0:04:48.080 who is trying to decide whether she should go to 0:04:48.200 --> 0:04:52.520 grad school abroad or stay stateside. Hi, guys, my name 0:04:52.560 --> 0:04:55.600 is Natalie. I'm twenty one and I'm from Central California. 0:04:56.200 --> 0:04:58.960 I'm graduating from UC Santa Barbara at this spring with 0:04:59.000 --> 0:05:01.640 no loans. I'm now deciding on to grad school to 0:05:01.680 --> 0:05:05.239 get my master's in public administration. Right now, my choices 0:05:05.279 --> 0:05:08.040 are between a two year program in California that costs 0:05:08.040 --> 0:05:12.320 about forty dollars before housing, or a one year program 0:05:12.320 --> 0:05:16.400 in Ireland that costs about twenty dollars after housing. This 0:05:16.520 --> 0:05:19.479 is my first time taking out loans. I'm concerned if 0:05:19.520 --> 0:05:21.080 I go abroad I won't have as good of an 0:05:21.120 --> 0:05:23.599 opportunity to network in order to get a high paying 0:05:23.680 --> 0:05:26.479 job back in California. But I'm also worried about taking 0:05:26.520 --> 0:05:30.360 out of forty loan. I studied abroad, so I am 0:05:30.360 --> 0:05:32.720 familiar and comfortable with the process of moving to Europe. 0:05:32.960 --> 0:05:34.600 But I don't want to miss out on networking if 0:05:34.600 --> 0:05:37.280 that's going to be the best decision career wise. I'm 0:05:37.279 --> 0:05:39.039 excited to hear what you guys think, so let me 0:05:39.080 --> 0:05:42.039 know in cheers. Natalie thinks so much for that question, 0:05:42.080 --> 0:05:47.000 and by cheers you actually mean Slancha, right. Yeah. Ireland 0:05:47.080 --> 0:05:48.719 is actually the only trip that Joel and I have 0:05:48.760 --> 0:05:52.080 taken abroad together. This is back before we had kids. Man, 0:05:52.120 --> 0:05:54.840 it was so much thinking, fun, beautiful country. Like I 0:05:55.160 --> 0:05:57.520 totally see myself going back there one of these days. 0:05:57.520 --> 0:06:00.560 The pub culture is wonderful in Ireland, so so much fun, 0:06:00.600 --> 0:06:02.360 live music. I mean, these are all things that I 0:06:02.400 --> 0:06:04.040 guess probably have been on hold, you know, for the 0:06:04.080 --> 0:06:07.080 past year, but I'm guessing that they are probably ready 0:06:07.120 --> 0:06:09.360 to fire things back up. But so you know, we'll 0:06:09.360 --> 0:06:12.159 try and not let our personal bias influence how we 0:06:12.160 --> 0:06:15.240 answer your question. And also to congrats on graduating with 0:06:15.400 --> 0:06:18.520 no loans and on continuing your education as well. Yeah, 0:06:18.600 --> 0:06:20.960 let's talk about loans, Matt for for just a second longer. 0:06:21.360 --> 0:06:23.800 On that note, this is a question I think for 0:06:23.880 --> 0:06:26.640 Natalie where she's going to want to be frugal and 0:06:26.680 --> 0:06:29.200 not cheap. This is something we've talked about with higher 0:06:29.279 --> 0:06:32.479 education before. I think, you know, obviously there is a 0:06:32.480 --> 0:06:35.520 student loan epidemic almost in this country right with with 0:06:35.560 --> 0:06:36.920 how they've got out of hand, and a lot of 0:06:36.920 --> 0:06:39.880 people owe so much money when they graduate from college, 0:06:39.960 --> 0:06:41.960 and we want people to avoid that, right, We want 0:06:41.960 --> 0:06:44.240 people to be smart about taking on college debt and 0:06:44.279 --> 0:06:47.120 not take on too much. But broadly speaking, when it 0:06:47.120 --> 0:06:50.000 comes to the cost of higher education, spending money now 0:06:50.040 --> 0:06:53.359 that will lead to advanced opportunities in the future isn't 0:06:53.400 --> 0:06:56.839 wasted money. And uh, I think it's healthy for Natalie 0:06:57.040 --> 0:06:59.240 had to have that uneasiness that she has about student 0:06:59.279 --> 0:07:01.680 loan debt, but also it's important to think of it instead, 0:07:01.760 --> 0:07:04.960 is money going towards increasing your human capital, which will 0:07:04.960 --> 0:07:08.640 pay dividends for decades to come. Although opting Natalie for 0:07:08.680 --> 0:07:12.280 that California program it doesn't necessarily mean that the increased 0:07:12.280 --> 0:07:15.200 costs are going to lead to more opportunity or greater 0:07:15.240 --> 0:07:17.840 pay in the future. It's kind of hard for Matt 0:07:17.960 --> 0:07:20.320 Night to really know without having, you know, a few 0:07:20.320 --> 0:07:23.400 more specifics. Yes, that is right. And something else to 0:07:23.480 --> 0:07:26.320 consider too, Natalie, is that, uh a two year program 0:07:26.360 --> 0:07:29.320 in California that costs forty thou before housing, Like that 0:07:29.360 --> 0:07:32.440 could end up costing you closer to sixty right, which 0:07:32.440 --> 0:07:35.400 is our seventy maybe? I mean yeah, seriously, And if 0:07:35.400 --> 0:07:36.880 you look at it that way, like that's closer to 0:07:37.000 --> 0:07:39.800 a forty thou dollar difference. Ireland is is one of 0:07:39.800 --> 0:07:43.760 the greatest spots on planet Earth, so going there while 0:07:44.080 --> 0:07:46.840 also getting the smaller price tag sounds pretty good in me. 0:07:47.280 --> 0:07:50.160 And you know, one of the key bonuses for opting 0:07:50.200 --> 0:07:52.800 for Ireland instead is that it's a one year program, 0:07:52.880 --> 0:07:55.000 not a two year program, And so this means that 0:07:55.080 --> 0:07:56.840 you are going to be on your way to launching 0:07:56.880 --> 0:08:00.000 your career and making money a whole year sooner, less 0:08:00.080 --> 0:08:03.040 money spent out of pocket and earning money sooner Like 0:08:03.080 --> 0:08:06.000 that sounds like a great combination to me. And another 0:08:06.040 --> 0:08:07.920 thought too is you know she's talking about networking, right 0:08:07.920 --> 0:08:10.320 how that's kind of like the biggest downside to going 0:08:10.320 --> 0:08:12.880 to Ireland. But if there's something that the pandemic has 0:08:12.920 --> 0:08:14.400 has taught us, I think is that there is so 0:08:14.480 --> 0:08:17.040 much that we can do from home in our sweatpants. 0:08:18.120 --> 0:08:20.160 Is I think if she wants to kind of you know, 0:08:20.200 --> 0:08:22.800 start that networking while she is abroad, so much of 0:08:22.800 --> 0:08:24.200 that can be done from the computer. You know. I 0:08:24.240 --> 0:08:26.720 think she could like start writing a blogs, you know, 0:08:26.760 --> 0:08:29.200 maybe start writing for other publications within the field that 0:08:29.280 --> 0:08:32.240 she's interested in, you know, launching herself into, and then 0:08:32.280 --> 0:08:36.000 just start sending out cold emails basically introducing herself. Uh, 0:08:36.000 --> 0:08:38.120 it's just gonna be a way that she's gonna allow 0:08:38.120 --> 0:08:40.480 herself to stand out. I think then just subscribing to 0:08:40.800 --> 0:08:43.000 a program, to your program in California, you know, like 0:08:43.160 --> 0:08:46.080 the grad who's in Europe in Ireland studying abroad. Like, 0:08:46.080 --> 0:08:48.040 to me, that's way more interesting and I think that's 0:08:48.080 --> 0:08:49.880 a great way to to stand out as well. Yeah, 0:08:49.960 --> 0:08:51.800 my friend Kim who was looking for work. She started 0:08:51.840 --> 0:08:54.120 just to kind of introduce herself to people on LinkedIn, 0:08:54.559 --> 0:08:57.199 and dude, I can't tell you how many calls that 0:08:57.320 --> 0:08:59.560 she set up, not even just like messaging back and 0:08:59.559 --> 0:09:02.000 forth or emails. It was like phone calls that people 0:09:02.040 --> 0:09:03.480 were like, Hey, let's go on the phone and chat. 0:09:03.720 --> 0:09:06.960 And yeah, So I feel like networking online is one 0:09:06.960 --> 0:09:09.920 of those things where people are craving human connection, even 0:09:09.960 --> 0:09:13.080 if it is just virtually. And so, yeah, I think 0:09:13.080 --> 0:09:15.400 you're right that the pandemic has taught us that we 0:09:15.440 --> 0:09:18.680 can network virtually, and and so I don't think, um, 0:09:18.720 --> 0:09:21.600 if you're intentional about it, that you're gonna be losing 0:09:21.679 --> 0:09:23.679 much in that regard. And not only I think you're 0:09:23.679 --> 0:09:25.720 you're gonna want to make that call. You know, your 0:09:25.760 --> 0:09:28.360 decision based on a number of different things, many of 0:09:28.400 --> 0:09:30.439 which Matt and I aren't privy to. Here, is it 0:09:30.520 --> 0:09:32.840 the connections that you're worried about missing out on, or 0:09:32.880 --> 0:09:35.760 maybe just that degree that you'll receive from a university 0:09:35.800 --> 0:09:38.800 in California look better to potential employers because that's something 0:09:38.800 --> 0:09:41.760 the factor into Can you use that maybe additional year 0:09:41.800 --> 0:09:45.080 to gain some valuable connections and work experience at the 0:09:45.080 --> 0:09:47.839 same time, and uh, again, don't be cheap when it 0:09:47.880 --> 0:09:50.360 comes to this decision. But also don't assume that more 0:09:50.400 --> 0:09:53.360 expensive equals more connections that's going to result in more 0:09:53.360 --> 0:09:56.800 pay Just because you're on site in California doesn't automatically 0:09:56.800 --> 0:09:58.720 mean that there's gonna be mixers going on that you're 0:09:58.720 --> 0:10:00.720 gonna be invited to where you get to show up 0:10:00.720 --> 0:10:03.360 and start, you know, shaking hands. I think that there's 0:10:03.440 --> 0:10:05.760 you know, we're probably gonna see more of that this fall, 0:10:06.240 --> 0:10:08.160 but I don't I can't imagine it's going to be 0:10:08.240 --> 0:10:10.199 in full force like it was pre pandemic as well, 0:10:10.240 --> 0:10:12.439 So I think that's definitely a consideration as well. Yeah, 0:10:12.480 --> 0:10:14.120 but Natalie, either way you go, you're in a strong 0:10:14.160 --> 0:10:17.400 position right now by not having any student loan debt. 0:10:17.559 --> 0:10:19.560 So best of luck as you move forward. And hopefully 0:10:19.600 --> 0:10:21.319 Matt and E's thoughts helped at least a little bit. 0:10:21.720 --> 0:10:24.800 But we got more questions to get to, including a 0:10:24.800 --> 0:10:27.320 listener who's worried that credit card debt might creep back 0:10:27.440 --> 0:10:29.560 up in his life. We'll get to that one right 0:10:29.600 --> 0:10:41.320 after this break. Al Right, we are back from the break, 0:10:41.360 --> 0:10:43.400 and we're gonna get to a question here soon about 0:10:43.440 --> 0:10:45.680 where to put some retirement money. But before that, let's 0:10:45.679 --> 0:10:48.440 get to that one, Joel that you mentioned about credit 0:10:48.480 --> 0:10:53.079 card debt kind of creeping back into this guy's life. Hey, guys, 0:10:53.080 --> 0:10:55.040 thanks so much for the podcast. We look forward to 0:10:55.080 --> 0:10:57.800 it every week. You've definitely helped me clarify law I 0:10:57.840 --> 0:11:01.600 thinks personal financial, giving me a strong action. Currently, I'm 0:11:01.600 --> 0:11:03.880 twenty nine years old. My partner and I are saving 0:11:03.920 --> 0:11:06.400 up for a house we'd like to purchase within the year. 0:11:07.120 --> 0:11:09.680 I just finished paying off twenty six dollars in debt. 0:11:09.800 --> 0:11:12.120 In the process of paying off the debt, I had 0:11:12.160 --> 0:11:14.679 closed a credit card. I noticed when I closed a 0:11:14.720 --> 0:11:18.440 credit card, my cardit score dropped about eighty points. Then 0:11:18.440 --> 0:11:20.559 I listened to one of your episodes where you discussed 0:11:20.600 --> 0:11:23.760 how useful and tac talent credit card can be one 0:11:23.960 --> 0:11:27.320 purchasing a host. I panicked, applied for another credit card, 0:11:27.360 --> 0:11:29.680 and got another credit card, where my credit card dropped 0:11:29.720 --> 0:11:33.880 again by about twenty points. I'm now worried that my 0:11:33.960 --> 0:11:36.839 old habits might creep in and I'll start spending on 0:11:36.880 --> 0:11:39.559 the credit card and carry a balance on it. I'm 0:11:39.600 --> 0:11:42.400 not sure if I should close it or if I 0:11:42.440 --> 0:11:45.400 should just hide it and put it away and keep 0:11:45.400 --> 0:11:47.560 on track with my saving Let me know what you think. 0:11:47.640 --> 0:11:50.920 Thank you so much. Anything can contribute will help. By 0:11:50.920 --> 0:11:53.360 the way, that question came from a listener named Matt, 0:11:53.720 --> 0:11:56.160 so he must be cool like my best buddy. Thanks. 0:11:57.720 --> 0:11:59.800 Do you think we get more questions from Mats or 0:12:00.400 --> 0:12:01.960 Mats for sure? Really? Well, it's just like a more 0:12:02.000 --> 0:12:03.960 common name. Yeah, it's kind of like John or nearly 0:12:03.960 --> 0:12:06.800 as many of us Joels out there, sadly, But Matt, 0:12:06.840 --> 0:12:08.920 congrats on the strides you've made it. I think it's too. 0:12:08.960 --> 0:12:12.200 It's definitely important to celebrate the debt payoff accomplishment that 0:12:12.200 --> 0:12:15.040 you've made. Being able to pay off twenty six dollars 0:12:15.080 --> 0:12:17.520 of debt is a huge sum of money. That's big. Yeah, 0:12:17.520 --> 0:12:19.880 it's worth celebrating with a nice beer or something like that. 0:12:20.240 --> 0:12:22.679 Seven Deadly stouts if you get if you can get 0:12:22.720 --> 0:12:25.000 your hands on one, yeah, already, I'm gonna tell you. 0:12:25.080 --> 0:12:28.319 I suggest it. So it's so good. But let's talk 0:12:28.360 --> 0:12:31.520 about why your credit score is so important too. If 0:12:31.559 --> 0:12:33.360 you want to buy a house within the year, Matt, 0:12:33.600 --> 0:12:36.160 closing cards is gonna crush your score and could cost 0:12:36.200 --> 0:12:38.880 you potentially thousands in interest over the life of the 0:12:38.920 --> 0:12:40.920 homeland that you're gonna get, and it could make that 0:12:41.000 --> 0:12:43.439 loan harder to get in the first place. And that's 0:12:43.480 --> 0:12:46.680 because credit scores are a bit convoluted, as we talked 0:12:46.679 --> 0:12:50.320 about Matt on the show. They're still massively important, though, 0:12:50.360 --> 0:12:53.400 even though they're kind of weird. Lenders are less concerned 0:12:53.440 --> 0:12:55.600 with the fact that you just paid off twenty six 0:12:55.960 --> 0:12:57.720 dollars in debt. They're not going to look at that 0:12:57.760 --> 0:12:59.839 and be like that guy, he's good with his money. 0:13:00.040 --> 0:13:01.559 We're gonna trust to make give them this home loan. 0:13:01.720 --> 0:13:04.520 That's just they have their their proprietary systems, that's how 0:13:04.520 --> 0:13:07.199 it works, and they're not factoring in how much debt 0:13:07.200 --> 0:13:09.600 you've gotten rid of in recent years. It's pretty dumb. Yeah, 0:13:10.200 --> 0:13:12.760 it is. They're more nervous about your credit score dropping, 0:13:13.040 --> 0:13:16.080 and they're less enthused by the fact that you just 0:13:16.120 --> 0:13:18.280 got rid of a bunch of debt, and that, in 0:13:18.320 --> 0:13:20.640 their mind, actually makes you riskier. The fact that you 0:13:20.720 --> 0:13:22.760 have a lower score even though you have less debt, 0:13:22.800 --> 0:13:25.160 which you know, Yeah, like Matt said, it doesn't really 0:13:25.160 --> 0:13:27.040 make all that much sense. Not how I would have 0:13:27.080 --> 0:13:29.920 devised the credit scoring model if it were up to me, Yeah, 0:13:29.960 --> 0:13:32.440 and you can't find some lenders who will actually take 0:13:32.480 --> 0:13:34.600 that into account, Like they'll do a manual underwriting where 0:13:34.640 --> 0:13:36.480 they look at all of your information, they'll see what 0:13:36.520 --> 0:13:38.439 you've been doing, and they'll kind of recognize the good 0:13:38.480 --> 0:13:42.160 behavior that you have exhibited. Right, But Matt, we we 0:13:42.240 --> 0:13:44.280 understand your desire to not go back in your credit 0:13:44.320 --> 0:13:46.240 card debt. Like, we're totally there with you. You You know, 0:13:46.240 --> 0:13:50.200 credit cards are, like we think, the best method for spending, 0:13:50.480 --> 0:13:52.720 but only if you use them properly, if you avoid 0:13:52.720 --> 0:13:55.400 maintaining balances. Uh and uh, you know, if you don't 0:13:55.480 --> 0:13:58.240 let your spending get out of control. But your instinct 0:13:58.280 --> 0:14:01.000 you know, to hide the card maybe and provide some 0:14:01.040 --> 0:14:03.240 behavioral barriers to using it, Like we we feel that 0:14:03.280 --> 0:14:06.080 as spot on. And so you know, we've talked about 0:14:06.120 --> 0:14:08.079 this before in the show. But literally putting your credit 0:14:08.120 --> 0:14:10.319 card on ice, you know, by putting it in a 0:14:10.440 --> 0:14:13.520 zip block bag full of water, can help prevent some 0:14:13.880 --> 0:14:18.040 destructive usage of that credit card. Also, too, there's more practical, 0:14:18.160 --> 0:14:20.240 maybe digital steps that you can also take by you know, 0:14:20.440 --> 0:14:22.840 doing something as simple as deleting your credit card information 0:14:23.320 --> 0:14:26.280 from from sites that you regularly use, you know, or 0:14:26.320 --> 0:14:29.280 deleting it from auto fill within your browser, basically any 0:14:29.280 --> 0:14:31.280 steps that make it more difficult for you just to 0:14:31.320 --> 0:14:33.800 hop on somewhere and make it purchase digitally. Yeah, and 0:14:34.000 --> 0:14:36.440 I think it's too man. It's worth including your partner 0:14:36.440 --> 0:14:39.040 in this. Right, you mentioned Matt that you're saving up 0:14:39.080 --> 0:14:41.040 for a down payment with your partner. We'll see if 0:14:41.040 --> 0:14:43.520 you can enlist the help of your significant other to 0:14:43.720 --> 0:14:46.440 help keep you on track. Also, if you're lucky, your 0:14:46.480 --> 0:14:49.320 partner is more of the money nerd, and if so, 0:14:49.680 --> 0:14:52.120 you have some built in accountability there. And even if 0:14:52.120 --> 0:14:54.160 it turns out that you're the money nerd who likes 0:14:54.160 --> 0:14:56.520 to spend, you can use your credit card for maybe 0:14:56.520 --> 0:14:59.040 like one or two recurring purchases like a power bill, 0:14:59.280 --> 0:15:01.280 and set them to out o pay. That way, the 0:15:01.280 --> 0:15:04.000 credit card remains active and helps your credit score. Even 0:15:04.040 --> 0:15:06.640 if you literally have like stowed it away inside the freezer, 0:15:06.920 --> 0:15:09.440 making it inaccessible to use on a day to day basis, 0:15:09.600 --> 0:15:11.280 it's still gonna be helping you out, and that's what 0:15:11.400 --> 0:15:13.640 you really want. It's not necessarily that you have to 0:15:13.720 --> 0:15:16.760 use your credit card for everything that you purchase, but 0:15:16.840 --> 0:15:20.760 it is having that credit card active using it regularly. Uh, 0:15:20.800 --> 0:15:23.960 even if it means you're not actually physically using it yourself. Yeah, 0:15:24.080 --> 0:15:26.560 just like the picture of the credit card in the 0:15:26.600 --> 0:15:29.280 bag of ice sitting there next to the audi ice cream, 0:15:30.360 --> 0:15:31.960 still doing its work even though you don't have to 0:15:31.960 --> 0:15:34.720 touch it. It's so good. Uh, it's a matt You know, 0:15:34.760 --> 0:15:38.320 it's crucial for your credit score to recover before you 0:15:38.360 --> 0:15:40.760 purchase a home. You know, like this could mean quite 0:15:40.760 --> 0:15:43.160 a big difference in the rate that you qualify for 0:15:43.480 --> 0:15:45.800 as well as your your monthly payment. And so keep 0:15:45.800 --> 0:15:48.280 an eye on your credit score and make changes based 0:15:48.280 --> 0:15:50.160 on what you see. And you can do this at 0:15:50.160 --> 0:15:53.480 a site like credit carma dot com. Oftentimes different you know, 0:15:53.480 --> 0:15:55.800 the different credit card companies online, when you log into 0:15:55.800 --> 0:15:57.880 the dashboards will have a little link there where you 0:15:57.880 --> 0:16:00.560 can see your credit score. There in credit CARDA specifically 0:16:00.560 --> 0:16:02.720 has this helpful score cards section that gives you a 0:16:02.760 --> 0:16:06.400 peek into what is specifically hurting your score. This is 0:16:06.440 --> 0:16:08.000 really important, but at the same time, we don't want 0:16:08.000 --> 0:16:09.560 you to stress out. You mentioned how this is a 0:16:09.600 --> 0:16:11.120 move that you want to make. Probably within the year, 0:16:11.440 --> 0:16:13.800 you can rebuild your credit score, you know, forty points 0:16:13.960 --> 0:16:16.240 by you know, you took to twenty point Ding's that's 0:16:16.280 --> 0:16:17.960 that's not great. But at the same time, you should 0:16:17.960 --> 0:16:19.760 totally be able to build that up when the time 0:16:19.840 --> 0:16:21.880 comes for you to sign up for a mortgage. Yeah, 0:16:21.960 --> 0:16:24.320 Matt's gonna get there. He's on his way. Just a 0:16:24.360 --> 0:16:27.040 couple of these tweaks to how you're handling those credit cards, Matt, 0:16:27.440 --> 0:16:28.840 and you got this. You got it licked, and you're 0:16:28.840 --> 0:16:30.320 gonna be able to get that mortgage. You're gonna get 0:16:30.320 --> 0:16:32.520 a great rate. I've got all the faith in you, man. 0:16:32.640 --> 0:16:34.080 All right, man, let's get to the next question. This 0:16:34.080 --> 0:16:36.320 one comes from listener Corey, and he wants to know 0:16:36.320 --> 0:16:39.320 where should he put money that he's investing for retirement. 0:16:39.400 --> 0:16:41.160 Should it keep going in four one k or is 0:16:41.160 --> 0:16:44.520 there a better move he can make? Joelan Matt love 0:16:44.560 --> 0:16:47.280 your podcast, Love all the information you guys are providing 0:16:48.280 --> 0:16:50.920 to make us all a little bit better financially. My 0:16:51.040 --> 0:16:55.480 question is regarding retirement accounts and where best to put 0:16:55.480 --> 0:16:58.280 your money. Currently, I work for employer that provides a 0:16:58.400 --> 0:17:03.400 four percent match when you can I contribute even to 0:17:03.480 --> 0:17:05.960 my company, and I'm trying to pick up every dollar 0:17:06.040 --> 0:17:09.680 I can for retirement. I started thinking about this when 0:17:09.720 --> 0:17:12.440 listening to you guys about where best to put my money. 0:17:12.960 --> 0:17:16.639 My question is is it better to pick up the 0:17:16.680 --> 0:17:21.439 match at your employer's plan and then put additional money 0:17:21.560 --> 0:17:25.919 into a roth Ira and espousal ira until they're maxed 0:17:25.920 --> 0:17:29.480 out and then go back to your employer's plan, or 0:17:29.800 --> 0:17:32.800 is it better to just contribute to in your employer's 0:17:32.840 --> 0:17:36.600 plan four oh one K plan, that is, until you 0:17:36.800 --> 0:17:41.119 max that out at the limit, and then if you 0:17:41.200 --> 0:17:44.960 can put additional money into a roth Ira or spousal ira. 0:17:46.080 --> 0:17:48.920 I should note that my company does provide an hs 0:17:48.920 --> 0:17:52.400 A plan which I do contribute to. I'm just determining 0:17:52.520 --> 0:17:54.760 where best to put my money whether it be in 0:17:54.800 --> 0:17:57.919 the roth ira accounts or in the rath pour oh 0:17:58.000 --> 0:18:01.159 one k accounts with the company after a meet the 0:18:01.200 --> 0:18:05.399 five percent match. Really appreciate your input, look forward to 0:18:05.400 --> 0:18:09.160 your response, and I definitely look forward to future podcasts 0:18:09.280 --> 0:18:11.960 and wish you guys continued success and all you guys 0:18:11.960 --> 0:18:15.520 are doing. Thank you so much, Corey, thanks so much 0:18:15.560 --> 0:18:17.520 for those well wishes, and we are glad that the 0:18:17.840 --> 0:18:20.040 information on here on the show has been helpful for 0:18:20.040 --> 0:18:22.120 you and your money. Let's go ahead and dive in. 0:18:22.359 --> 0:18:24.280 Let's start with the the kind of the most basic 0:18:24.320 --> 0:18:27.040 thing here. Let's talk about your match, right, it should 0:18:27.119 --> 0:18:30.240 continue to be your goal to to get that employer match. 0:18:30.800 --> 0:18:34.240 Since you're putting in eleven with the four percent match, 0:18:34.560 --> 0:18:38.240 you're investing of your pay. That is awesome, that's so good. 0:18:39.119 --> 0:18:41.040 But you know, if you can't do all of that, 0:18:41.520 --> 0:18:43.280 I think for some it might be be tough to 0:18:43.320 --> 0:18:45.640