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Speaker 1: Welcome to How the Money. I'm Joel and I am Matt.

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Speaker 1: Today we're discussing cheaper booze by now pay never and

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Speaker 1: what housing market crash. That's right, man. This is our

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Speaker 1: Friday flight where we've come across some different stories and

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Speaker 1: we're gonna discuss the different ones that we think are

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Speaker 1: going to impact your finances the most. These are the

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Speaker 1: important stories that you should be paying attention to, not

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Speaker 1: all of those other ones out there that don't really

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Speaker 1: that don't matter. We call the information so that you

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Speaker 1: don't have the way through a bunch of Forbes articles

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Speaker 1: and uh and and so we Yeah, we're constantly started

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Speaker 1: to the web for the interesting stuff that week. Yeah,

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Speaker 1: and we actually do have a Forbes story during this episode.

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Speaker 1: I'm not saying they don't put out a good stuff.

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Speaker 1: I'm just saying a lot of times they do put

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Speaker 1: up that stuff. There's a lot of crap in there too,

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Speaker 1: Busy Insider and lots of crap there too, But there

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Speaker 1: are a lot of them have their affairship right of crap.

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Speaker 1: So we're just trying to get the good stuff. The highlights. Um,

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Speaker 1: what you need to know this week when it comes

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Speaker 1: to what's happening in the financial sphere. Did you did

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Speaker 1: you see the Okay, so there is an article actually

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Speaker 1: in the Washington Post that was pointing out like they

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Speaker 1: were trying to encourage folks to like reconsider their Amazon

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Speaker 1: Prime membership, which is funny because the Post is owned

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Speaker 1: by path Us exactly. So this is did you fire someone?

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Speaker 1: It's kind of like a toss off. It's like, is

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Speaker 1: this actually a good story or are they going to

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Speaker 1: try to talk you into maintaining your Amazon Prime membership

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Speaker 1: which has gone up in price over the past several

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Speaker 1: years for some reason. The answer to everyone on that

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Speaker 1: quiz was you should keep your Prime membership. No, so

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Speaker 1: I did appreciate so we I guess we actually will

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Speaker 1: link to this particular story. But it was a quiz

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Speaker 1: and you could go through their answer some different questions

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Speaker 1: and they kind of made some of these recommendations I guess,

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Speaker 1: which I was a little suspect on how they're how

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Speaker 1: they're going to approach that. But I did like the

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Speaker 1: fact that they kind of listed out the prices of

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Speaker 1: the competition essentially, and so it was a nice apples

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Speaker 1: to apples comparison with some of the specific services that

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Speaker 1: you get with Amazon Prime. So theynd it down to

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Speaker 1: say streaming, Okay, here is where else you could get streaming,

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Speaker 1: and they nard it down to U shipping times. These

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Speaker 1: are some of the other options out there as well.

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Speaker 1: I appreciate it that well. And I think, you know,

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Speaker 1: Amazon Prime is now this this like Swiss Army Knife

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Speaker 1: of services, and so it's harder to decipher how much

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Speaker 1: am I using it? And is it actually worth the

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Speaker 1: hdty nine dollar annual fee? And so taking this quiz

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Speaker 1: I think it can be helpful um in in reassessing

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Speaker 1: maybe whether or not it's worth it. And by the way,

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Speaker 1: Prime Day is coming up next week. I guess it's

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Speaker 1: a two day affair now, but it's one of those

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Speaker 1: things where you you should be cautious you're going into

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Speaker 1: Prime Day. If you are particularly susceptible to Amazon's marketing

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Speaker 1: and sales, you might find yourself spending money you don't

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Speaker 1: have or you didn't intend to spend. And so yeah,

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Speaker 1: might make sense to take this quiz reassess whether you're

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Speaker 1: even getting enough value out of Prime and then definitely, uh,

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Speaker 1: maybe stay off the computer on Prime Day. Nless there's

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Speaker 1: something you actually know you're hoping he's on sale. Uh

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Speaker 1: that something that you're planning to spend money on instead

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Speaker 1: of just kind of reacting to something that's cheap. Yeah, totally,

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Speaker 1: and honestly, I do think it's a good thing. And

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Speaker 1: we are going to link to this story because if

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Speaker 1: there is anything out there that causes you to question

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Speaker 1: your spending, I'm all for that because I feel like

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Speaker 1: their secret weapon is the fact, uh, they are counting

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Speaker 1: on people to not questions for spending, right Like that

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Speaker 1: is the whole that's the whole business model behind subscriptions.

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Speaker 1: You sign up, once you pay that fee and make

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Speaker 1: it easy. It just keeps happening every single time, and

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Speaker 1: you've got that inertia that keeps you from basically jumping

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Speaker 1: off the wagon. So because of that, it doesn't feel

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Speaker 1: like this underhanded way that they're trying to get you

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Speaker 1: to um subscribe to Amazon Prime and spend more money

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Speaker 1: with them. But it is good to rethink that because

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Speaker 1: you might find that you're shopping outs have changed, or

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Speaker 1: that you're not streaming the free music. You're not you're

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Speaker 1: not streaming the free the free movies and television. You're

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Speaker 1: just not using it like you used to, or maybe

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Speaker 1: you never did. And and there are other sir, this

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Speaker 1: is now that have popped up that rival Amazon Prime

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Speaker 1: in a lot of those areas that are cheaper. Hey,

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Speaker 1: actually I got a quick frugal versus cheap for you.

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Speaker 1: So this is our first like full week here in

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Speaker 1: the office, and which means that I've been bringing my luncheon,

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Speaker 1: which I did not used to do because I used

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Speaker 1: to walk upstairs, heat up my leftovers and then walk

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Speaker 1: back down after I eat lunch right at the old place.

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Speaker 1: And so I've been bringing snacks in and little ziplock bags.

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Speaker 1: What are your thoughts on reusing ziplock bags? That'ds on

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Speaker 1: what you put in it? Well, so it's something you

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Speaker 1: can reuse them, but like nuts, carrots, all of that

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Speaker 1: kind of thing. I realized that because I I wrote

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Speaker 1: like veggies on there, and I'm like, oh, well, I'll

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Speaker 1: just use this for vegian. You don't feel like that

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Speaker 1: that's cheap. Now, I'm a reuser of ziplock nice for sure.

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Speaker 1: I'm not going to wash them and off brand all

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Speaker 1: the all THEI like ziplock bags as long as it

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Speaker 1: just zips a little, yeah, exactly, Like who's putting soup

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Speaker 1: in his zip block bag, crazy people holding it upside down,

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Speaker 1: that nobody does that not doing that? All right? I

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Speaker 1: know you can do it based on the commercials, but

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Speaker 1: a little never tried it at home for versus cheap.

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Speaker 1: I just all right, let's move on. Let's let's keep

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Speaker 1: talking about the stories we found interesting this week. And

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Speaker 1: the first one is about the lottery, because there is

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Speaker 1: a new mobile app that allows you to play the

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Speaker 1: lottery on your smartphone and it's called jack Pocket, which,

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Speaker 1: which is I gotta admit, is a clever name for

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Speaker 1: a lottery appin of a weird name if you think

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Speaker 1: about it, Jackson pick pocket, but like Jack Pott in

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Speaker 1: your pocket makes sense. And and here's the premise, right

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Speaker 1: that they instead of going to your local gas station

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Speaker 1: to get your mega millions ticket, they want you to

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Speaker 1: be able to snag one while you're just kind of

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Speaker 1: sitting on your couch. And that sounds nice and easy

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Speaker 1: with that convenience in its highest form. But we are,

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Speaker 1: of course not big fans of this, and that is

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Speaker 1: because you're more likely to be struck dead from a

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Speaker 1: falling airplane, true fact. Um, then then you are to

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Speaker 1: win a powerball drawing. I think it's actually a falling

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Speaker 1: airplane part right, like so uh so something falls off

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Speaker 1: the airplane sky. I mean you have the least likely

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Speaker 1: chance of winning that, like literally, you have a better

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Speaker 1: chance of becoming president, uh than winning the power ball.

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Speaker 1: So you're saying there's a chance, right, yes, I but

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Speaker 1: so yeah, that's a real fact. It's almost impossible to win.

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Speaker 1: Not gonna happen, right, And so anything that reduces the

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Speaker 1: friction involved with buying lottery tickets, that means that more

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Speaker 1: folks are likely to play. Exactly. The lottery, of course,

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Speaker 1: is just a giant waste of money. We don't want

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Speaker 1: you to play. So yeah, if you see an ad

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Speaker 1: or you hear a friend talking about how playing the

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Speaker 1: lottery so much easier now, we suggest walking away. You

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Speaker 1: can still be friends with that person, but you don't

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Speaker 1: have to take their advice and download that app. So,

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Speaker 1: I don't know what when we talked about winning the

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Speaker 1: lottery six months ago, mad a year ago, we talked

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Speaker 1: about how seventy of a lot of winners end up

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Speaker 1: filing for bankruptcy anyway, So maybe winning the lottery is

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Speaker 1: just more troubled than it's worth. And so avoid the app,

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Speaker 1: avoid playing the lottery. What's interesting too, is that in

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Speaker 1: this article they were talking about the family history of

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Speaker 1: the guy that founded this app and they're trying to

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Speaker 1: like essentially glamorize like this family history of them always

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Speaker 1: being fans of the lottery and playing the lottery and

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Speaker 1: gambling essentially and basically it's a family addiction. Sweet seriously, Like,

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Speaker 1: it was pretty sad by the end of it, because

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Speaker 1: he was talking about one of the like his family

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Speaker 1: members who's literally in the hospital, has got tubes in

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Speaker 1: his nose and he's sending somebody else to go get

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Speaker 1: a ticket so that he can enter in his numbers.

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Speaker 1: That's not adorable, it's it's just happened. No, Like, it

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Speaker 1: really is addiction. But yeah, what could go wrong when

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Speaker 1: you combine the addictive nature of our smartphones with something

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Speaker 1: that is inherently also addicting, like gambling to the most

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Speaker 1: addicting things, we would not recommend this. Uh. And actually,

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Speaker 1: speaking of lotteries, a recent survey from debt Hammer, first

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Speaker 1: time we've featured them before, but I like the name

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Speaker 1: of him. Uh. They revealed that far too many folks

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Speaker 1: have borrowed money to buy cryptocurrency, more than folks surveyed

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Speaker 1: have used a credit card to buy crypto, uh many

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Speaker 1: doing so without being able to pay their bill in full,

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Speaker 1: and one in five respondents admitted to taking out alone

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Speaker 1: in order to buy more crypto. And I think roughly

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Speaker 1: the same number of folks had a hard time paying

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Speaker 1: the bills back because they invested too much of their

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Speaker 1: money within the crypto space. UM So, you know, here's

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Speaker 1: the deal. Never take out a loan to invest in cryptocurrencies.

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Speaker 1: When you do that, you are paying someone else a

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Speaker 1: guaranteed interest rate in order to take a speculative position.

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Speaker 1: Hopefully you're thinking you're gonna earn more, but the chances

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Speaker 1: of that actually happening are pretty slim. You are straight

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Speaker 1: up gambling. We would recommend that you only invest money

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Speaker 1: that you actually have on hand. I don't know which

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Speaker 1: one is worth playing a lot of you on your

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Speaker 1: smartphone or borrowing money to invest in cryptocurrency. They're both like,

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Speaker 1: um level lose all of your money exactly. They're they're

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Speaker 1: both def Con five and you should avoid both for sure.

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Speaker 1: And man, I gotta think just taking out a personal

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Speaker 1: loan to invest in crypto is such a bad idea.

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Speaker 1: But more young folks in particular have done things like that,

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Speaker 1: and it's as your crypto investments go down and you're

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Speaker 1: still paying on that loan. That's a that's a crappy

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Speaker 1: place to be in. Uh, let's let's talk about buy now,

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Speaker 1: pay later for a second matter, by now pay never,

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Speaker 1: because if you've been listening for a while, you've people

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Speaker 1: probably know that our feelings on these companies are somewhat mixed.

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Speaker 1: Right at first, we kind of hated them. We only

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Speaker 1: had negative things to say. But then some of these

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Speaker 1: company me started reporting to the credit bureaus and we

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Speaker 1: talked about how smart consumers can actually use them to

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Speaker 1: build up their credit score without paying any extra fees

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Speaker 1: or interest. Yeah, there's there's a little bit of actual

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Speaker 1: utility now other than it just being this tool that's

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Speaker 1: parting you with your money exactly exactly, And so that

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Speaker 1: is a nice feature and it's still something that we're

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Speaker 1: cool with. Is is if you use them, If you

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Speaker 1: use them, well, um, you can use them as a

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Speaker 1: tool that benefits you financially, but that still doesn't mean

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Speaker 1: we like them. And CN in Business just read an

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Speaker 1: article detailing our number one concerned with these products that

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Speaker 1: they're getting people to purchase more stuff that they can't

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Speaker 1: actually afford, even when those payments are broken out into

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Speaker 1: multiple installments over a few months, because they're buying more

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Speaker 1: and more stuff and they have more and more monthly payments,

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Speaker 1: and then they can't afford the payments, and so people

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Speaker 1: are starting to use these buy now, pay later products

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Speaker 1: to cover even smaller purchases Matt, like a cup of

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Speaker 1: coffee or paying for groceries. And I think that's really

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Speaker 1: disconcerting to me because I don't know by now pay later,

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Speaker 1: to me, is is still more bad than good. And

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Speaker 1: I feel like it's leading leading folks towards hire levels

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Speaker 1: of consumer debt, which is largely from the purchase of

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Speaker 1: items that are mostly wants, they're not needs. That's true. Yeah,

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Speaker 1: folks are using Clarina after Pay a firm to stretch

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Speaker 1: out the payments to make discretionary purchases feel a bit

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Speaker 1: more affordable, but the ability to pay over time it

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Speaker 1: is causing folks to buy a lot more stuff, which

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Speaker 1: is a major problem where you just fall into that

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Speaker 1: cycle of not really looking ahead and you're just looking

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Speaker 1: at what you want in the here and now, and

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Speaker 1: it's yeah, it's it's really disconcerting that they're using by

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Speaker 1: now Pay Later for these smaller everyday purchases. Just because

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Speaker 1: you don't have to pay for that item infold doesn't

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Speaker 1: mean that you don't pay the full price eventually. And

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Speaker 1: more folks are paying late and there, you know, defaulting

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Speaker 1: on these loan products and and so we don't believe

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Speaker 1: that by now Pay Later is the devil necessarily Bobby Boucher,

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Speaker 1: but it is a problem, uh. And it's a problem

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Speaker 1: for a lot of folks where it allows them to

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Speaker 1: buy things that they clearly can currently afford um where

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Speaker 1: they're stacking up monthly payments that are adversely affecting their

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Speaker 1: their finances. So we'd prefer for for most folks to

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Speaker 1: stay away completely. Uh. And if you do opt to

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Speaker 1: use by now Pay Later, we would recommend that you

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Speaker 1: approach those platforms very cautiously and in the same way

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Speaker 1: that we would advise folks to approach credit cards. Is

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Speaker 1: okay if you use them, use them wisely and be

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Speaker 1: very careful. And credit cards do have some downsides, right,

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Speaker 1: we talked about that, but they also they have more

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Speaker 1: perks too than by now Pay Later. When it comes

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Speaker 1: to purchase protection, and when it comes to rewards, the

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Speaker 1: credit cards more of an upside, sure, exactly, And so

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Speaker 1: that because there's a less of an upside with by

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Speaker 1: now pay later and more of a behavioral downside. That's

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Speaker 1: why we're so if he on them or or actually

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Speaker 1: really cautioning most people to to stay away, and would

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Speaker 1: definitely like them less than credit cards. Yes, So, speaking

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Speaker 1: of credit cards, Matt, there was a white paper released

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Speaker 1: about credit cards. It was published just a few weeks ago,

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Speaker 1: and it it revealed what you and I already know

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Speaker 1: to be true, that some people benefit a lot from

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Speaker 1: credit cards and other people are actually um bearing the cost,

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Speaker 1: bearing the brunt of that positive benefit that folks like

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Speaker 1: you and I receive, Because how do money listeners who

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Speaker 1: use credit cards effectively, they're getting pretty slick rewards along

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Speaker 1: the way. Folks who don't pay their credit card bill

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Speaker 1: on time, however, they're wrecking up fees and interest. And

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Speaker 1: so how much money is going from folks who don't

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Speaker 1: handle their credit cards well to the folks who do

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Speaker 1: use them as a savvy manner. Fifteen point five billion

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Speaker 1: dollars a year. It's a lot of rewards. That is

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Speaker 1: a lot of money going to pay people who you know,

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Speaker 1: use their credit cards well. And one of the most

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Speaker 1: fastening parts of this white paper what what what they

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Speaker 1: found was that it's not always low income Americans who

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Speaker 1: are paying the bill. I think most of the time

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Speaker 1: that's how we talk about it, but it is true

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Speaker 1: to some extent, But it's actually folks who make good

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Speaker 1: money who are often losing at the credit card gain.

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Speaker 1: The study specifically found and I quote, that while sophisticated

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Speaker 1: high income consumers benefit the most, naive high income consumers

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Speaker 1: pay the most. So it's people who who think they're

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Speaker 1: using the system to their advantage, but they actually haven't

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Speaker 1: really calculated the costs, or they forget to pay their

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Speaker 1: bill on time sometimes and they rack up interest and penalties.

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Speaker 1: They want to think they're a smart consumer, a savvy

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Speaker 1: credit card user, but in reality, those naive folks are

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Speaker 1: the ones who are subsidizing savvy credit card users the most.

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Speaker 1: Le's right, Yeah, the study proves once again that credit

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Speaker 1: cards are a tool. Like we were saying earlier, you

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Speaker 1: can use them like a champ where you can use them,

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Speaker 1: you can use them poorly, but the thing is if

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Speaker 1: you use them wisely, you will reap meaningful rewards is

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Speaker 1: just how the system works, and we want you to

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Speaker 1: play by the rules that are in existence. You you

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Speaker 1: need to know the rules, play by the rules, and

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Speaker 1: you will get different things like side up bonuses. You'll

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Speaker 1: get two percent or more cash back on your on

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Speaker 1: your everyday purchases. Using rewards, well can earn new free flights,

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Speaker 1: they can earn you uh free hotel stays. Some folks

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Speaker 1: out there are making thousands of dollars in tax free

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Speaker 1: income every year via these credit card rewards. But you

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Speaker 1: have to know yourself and if you want to enjoy

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Speaker 1: some of the thirty five billion that the banks are

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Speaker 1: showering on credit card users every year, it's crucial to

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Speaker 1: be uh sophisticated with your usage and not just uh

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Speaker 1: one of those high income consumers where you're spending all

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Speaker 1: of your money. And it makes me think about the

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Speaker 1: buy now, pay later again. I think the biggest problem

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Speaker 1: with them is the fact that they aren't running credit

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Speaker 1: checks on folks, right, Like, the whole premise is that, oh, uh,

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Speaker 1: you just sign up here and we will basically give

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Speaker 1: you an interest free loan, And essentially it feels like

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Speaker 1: they're targeting folks who don't necessarily know the rules of

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Speaker 1: the game, right, Like like like we're talking about the different

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Speaker 1: bonuses and the rewards. When you are aware of how

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Speaker 1: the system works, then you are informed. And I think

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Speaker 1: the problem is is that these buy now, pay later programs,

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Speaker 1: they like, there's there's a different bar to entry, right

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Speaker 1: because before you have a credit score, and that keeps

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Speaker 1: you it's it access guidance, it keeps you out of trouble.

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Speaker 1: But when you remove that bouncer from the door, essentially

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Speaker 1: like oh, everybody has access. And I think that is

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Speaker 1: the problem. Like it makes me think of like, okay,

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Speaker 1: so alcohol, you've gotta be twenty one years old the drink, right,

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Speaker 1: What if they created some sort of beverage out there

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Speaker 1: that didn't contain alcohol, but it had all of the

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Speaker 1: same negative effects, but you didn't have to be twenty one,

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Speaker 1: but you removed that barrier to entry. If that word happened,

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Speaker 1: I'm sure we would see a lot of people, a

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Speaker 1: lot of folks who are under the age of twenty

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Speaker 1: one making a lot of poor decisions. Just because it's

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Speaker 1: not called alcohol doesn't mean it doesn't have some similar effects.

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Speaker 1: So I think in a similar way, like I would

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Speaker 1: not be surprised if like these by now pay later

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Speaker 1: companies at some point might have to change how it

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Speaker 1: is that they loan to their their customers where they

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Speaker 1: are forced to take credit, cord and account. Yeah, I

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Speaker 1: could see regulators at some point jumping in on the

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Speaker 1: b n p L space because there are people using

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Speaker 1: it willy nilly and getting themselves into major financial trouble.

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Speaker 1: And I'm not saying that there is no personal responsibility necessary,

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Speaker 1: but we want, we want folks to be aware of

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Speaker 1: the downsides of these of these loans. And it sounds

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Speaker 1: like and if you use them perfectly right, You're right, Yeah,

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Speaker 1: you can avoid interest, you can pay off your things

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Speaker 1: over time, you can use this arbor trage sheer advantage.

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Speaker 1: But most people aren't. Most people are using these loans

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Speaker 1: to be able to consume more. They're they're they're ending

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Speaker 1: up in in financial distress because of it, and I

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Speaker 1: think these things are mostly a menace. Yeah, I mean, so,

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Speaker 1: going back to the personal responsibility, I do think it

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Speaker 1: lies with the individual. It's just that the barriers, that

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Speaker 1: the guidance, the guardrails have been removed, right when you

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Speaker 1: had the credit scores keeping you from getting certain credit cards.

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Speaker 1: Before those were the guardrails. Those were the lines on

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Speaker 1: the road that helps you to see where you were.

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Speaker 1: But when you remove those completely, you can drive wherever

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Speaker 1: you want on the road there are no guardrails. Uh.

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Speaker 1: And so I still think oftentimes it's not just the

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Speaker 1: police officer they're keeping you from speeding, it's you as

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Speaker 1: an individual piloting your own car and deciding, Okay, yeah,

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Speaker 1: I want to make sure I stay on the road

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Speaker 1: because I know that that's in my own best interest. Yeah. Yeah,

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Speaker 1: So that's our two cents on by now, play later

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Speaker 1: and credit card rewards, and you know, we'll we'll see

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Speaker 1: with the future holds for these companies. There's more scrutiny,

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Speaker 1: at least more articles being written about the downsides, and

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Speaker 1: hopefully hopefully these warnings actually help people avoid can into

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Speaker 1: big trouble. But Matt, we've got more to get to,

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Speaker 1: including our ludicrous headline of the week about I don't

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Speaker 1: know it's a housing market gonna crash or not. We'll

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Speaker 1: talk about that right after this break. All right, we

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Speaker 1: are back from the break. We've got a few other

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Speaker 1: stories we're gonna get to, including our ludicrous headline of

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Speaker 1: the week, and this week's article comes from news Week

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Speaker 1: and it reads housing market crash could see values of

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Speaker 1: homes plummet in eleven states. And uh, a friend of

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Speaker 1: ours is a marginal ender. We saw him post this article.

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Speaker 1: So oddly enough, the first quote in this story is

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Speaker 1: actually from an economist um and this very same article,

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Speaker 1: and it reflects what we've been saying throughout this whole process,

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Speaker 1: and it kind of, honestly, it totally destroys the headline

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Speaker 1: that they chose for this article, that there will be

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Speaker 1: this housing crash. And the quote it comes from economist

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Speaker 1: Mark Zandy, and he says that I don't think we're

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Speaker 1: gonna see a crash for a number of reasons, and

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Speaker 1: he then goes on to spell all of the reasons out, basically,

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Speaker 1: the fact that vacancy is low, the fact that underwriters

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Speaker 1: are doing a really good job allowing good candidates through

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Speaker 1: approving them for mortgages, but not folks who have poor

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Speaker 1: credit scores. Uh, He's pointing out the fact that supply

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Speaker 1: of housing is weak. The amount of cash that Americans

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Speaker 1: have have on hand is really strong, which means that

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Speaker 1: not only can they take that money and put it

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Speaker 1: towards down payments, but even if there was a recession,

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Speaker 1: folks would still be able to afford their mortgages. There

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Speaker 1: are just a lot of factors out there that leads us,

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Speaker 1: as well as many others, to think that a crash

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Speaker 1: might be a bit far fetched. But you know, News

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Speaker 1: Weeks they're still out there using that terminology and its

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Speaker 1: headline to drive the clicks. And that's just kind of

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Speaker 1: how the media game works these days, kind of a circus.

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Speaker 1: You gotta drive the clicks, and this one was definitely

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Speaker 1: it was fascinating to see that the first quote contradicted

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Speaker 1: the headline, the very story that they're trying to push.

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Speaker 1: And we're not saying that that there might not be

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Speaker 1: some sort of small correction in the housing market, but

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Speaker 1: the term crash gets strown around and you're expecting something

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Speaker 1: two levels and that is highly erection. Is a much

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Speaker 1: more nuanced and levelhead of turn exactly the crash. Nobody

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Speaker 1: talks like that in internet headlines though, Matt, So we can't.

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Speaker 1: We can't expect that much of News Week, I guess,

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Speaker 1: although I would hope they would do a better job

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Speaker 1: in this article. And what you know, while the housing market,

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Speaker 1: it's pretty difficult to predict, especially with the FED doing

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Speaker 1: what they're doing with interest rates and how that's impacting

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Speaker 1: mortgage rates. These these headlines, though, are just kind of unnecessary,

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Speaker 1: their overkill, and I think they're unnecessarily freaking people out. Uh.

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Speaker 1: There was another article though, Matt speaking of housing in

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Speaker 1: this one comes from across the Pond in the UK,

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Speaker 1: The Daily Mail suggest that forty or even fifty or

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Speaker 1: mortgages could be coming soon for for residents over there.

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Speaker 1: And you know, I've been to live in the exact

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Speaker 1: same place, or I should say, the same flat for

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Speaker 1: for the rest of your life. Right. Well, the thing is,

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Speaker 1: most people who get a thirty year mortgage, they don't

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Speaker 1: stay in that house for thirty years, right Uh. They

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Speaker 1: they stay in it for seven, eight, nine, ten years,

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Speaker 1: and they still and or and they don't even necessarily

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Speaker 1: keep that saying mortgage for the entire time there in

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Speaker 1: the house. But the thing with a a longer mortgage

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Speaker 1: term is that you can lower your payments even though

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Speaker 1: you're increasing your interest rate. And I don't think that's

430
00:20:13,200 --> 00:20:14,719
Speaker 1: a good thing either. I feel like we're coming down

431
00:20:14,760 --> 00:20:16,760
Speaker 1: on a lot of things today. But um, yeah, your

432
00:20:16,760 --> 00:20:18,920
Speaker 1: payment would be smaller. But here's the thing. You would

433
00:20:18,920 --> 00:20:21,920
Speaker 1: pay significantly more interest over the life of the loan.

434
00:20:22,040 --> 00:20:23,959
Speaker 1: And so I don't know. I think let's say you

435
00:20:23,960 --> 00:20:25,760
Speaker 1: only owned your home for four or five years, then

436
00:20:25,800 --> 00:20:27,399
Speaker 1: you sold, but you had some sort of forty or

437
00:20:27,400 --> 00:20:30,200
Speaker 1: fifty year mortgage. Now you'd be having to bring money

438
00:20:30,240 --> 00:20:32,560
Speaker 1: to the closing table when you sell because so so

439
00:20:32,680 --> 00:20:34,960
Speaker 1: little of your monthly payment would be going to pay

440
00:20:35,000 --> 00:20:37,520
Speaker 1: down principle. So, really, the best way to chill out

441
00:20:37,600 --> 00:20:40,040
Speaker 1: housing prices, it's not just to put people in debt

442
00:20:40,200 --> 00:20:44,000
Speaker 1: for longer periods of time. It's to change zoning laws

443
00:20:44,040 --> 00:20:48,119
Speaker 1: and incentivize the building of more single family multifamily homes.

444
00:20:48,520 --> 00:20:51,080
Speaker 1: That's going to help create more housing affordability, uh, not

445
00:20:51,640 --> 00:20:54,000
Speaker 1: longer mortgage terms. It's like the same thing we talked

446
00:20:54,000 --> 00:20:56,720
Speaker 1: about car loans, car loans getting longer and longer, longer

447
00:20:56,760 --> 00:20:59,560
Speaker 1: car loans. Sure they make it cheaper, not the solution,

448
00:20:59,600 --> 00:21:01,560
Speaker 1: but they don't fix the problem exactly. All right, Let's

449
00:21:01,560 --> 00:21:05,359
Speaker 1: talk about groceries for a second, because Kroger reports that

450
00:21:05,480 --> 00:21:08,680
Speaker 1: basket sizes are down, and by basket sizes, I mean

451
00:21:08,920 --> 00:21:12,080
Speaker 1: the orders that people are checking out with, Folks are

452
00:21:12,119 --> 00:21:15,200
Speaker 1: buying fewer items at checkout. As prices are on the rise,

453
00:21:15,480 --> 00:21:17,600
Speaker 1: that means folks are being a little bit more cognizant

454
00:21:17,640 --> 00:21:20,239
Speaker 1: of how much they're spending on every trip. Folks are

455
00:21:20,240 --> 00:21:22,720
Speaker 1: trying to stretch their money a little bit further. We're

456
00:21:22,720 --> 00:21:24,800
Speaker 1: seeing that store brands are also trending up in a

457
00:21:24,840 --> 00:21:26,440
Speaker 1: big way. And this all makes a ton of sense

458
00:21:26,440 --> 00:21:29,000
Speaker 1: because store brands can save you a ton over the

459
00:21:29,119 --> 00:21:31,560
Speaker 1: name brand items that are out there, and they've gotten

460
00:21:31,600 --> 00:21:34,520
Speaker 1: way better actually in recent years according to taste tests.

461
00:21:34,760 --> 00:21:37,760
Speaker 1: If you're wondering Wegman's Trader Joe's, they both rank as

462
00:21:37,800 --> 00:21:41,159
Speaker 1: to the supermarkets with the best store brand options. But

463
00:21:41,440 --> 00:21:43,159
Speaker 1: it's obviously not a great thing that prices at the

464
00:21:43,200 --> 00:21:46,000
Speaker 1: grocery store are rising as quickly as we're seeing them.

465
00:21:46,480 --> 00:21:49,119
Speaker 1: But these are the kind of trade offs that you

466
00:21:49,119 --> 00:21:51,280
Speaker 1: you can and you you should be making in order

467
00:21:51,320 --> 00:21:55,400
Speaker 1: to preserve some of your purchasing power. Folks are rethinking

468
00:21:55,400 --> 00:21:57,520
Speaker 1: they're shopping habits right now, and I think that's a

469
00:21:57,520 --> 00:22:00,080
Speaker 1: good thing. I think a silver lining here too, is

470
00:22:00,080 --> 00:22:01,280
Speaker 1: is that I think folks are going to be able

471
00:22:01,280 --> 00:22:03,000
Speaker 1: to be a little less wasteful right like they might

472
00:22:03,000 --> 00:22:05,240
Speaker 1: be thinking, do I really need like that second bag

473
00:22:05,280 --> 00:22:08,200
Speaker 1: of chips, or do I need that additional pound of meat?

474
00:22:08,720 --> 00:22:11,879
Speaker 1: And hopefully that means folks are not only being less wasteful,

475
00:22:11,920 --> 00:22:13,760
Speaker 1: but they're also saving some money as well. Yeah, well

476
00:22:13,760 --> 00:22:16,080
Speaker 1: it's amazing too. You talked about training down the store brands.

477
00:22:16,080 --> 00:22:17,840
Speaker 1: How much that can save you. In some cases, it

478
00:22:17,880 --> 00:22:20,880
Speaker 1: can save you right off the price of store brand versu.

479
00:22:20,920 --> 00:22:23,080
Speaker 1: Name brand. And it makes me think. The other day,

480
00:22:23,080 --> 00:22:24,880
Speaker 1: I was going to the grocery store. My wife makes

481
00:22:25,240 --> 00:22:28,280
Speaker 1: rice crispy treats with Golden grams. She does, but the

482
00:22:28,280 --> 00:22:31,480
Speaker 1: off brand ones, right are are so much cheaper. And

483
00:22:31,480 --> 00:22:33,680
Speaker 1: and she's like, she says, if the store brand or

484
00:22:33,720 --> 00:22:35,400
Speaker 1: if the name brands on sale, they are better, they

485
00:22:35,400 --> 00:22:37,480
Speaker 1: make them taste better. So tell me how much the boxes.

486
00:22:37,520 --> 00:22:39,760
Speaker 1: And it was remember it was six dollars for a

487
00:22:39,800 --> 00:22:41,840
Speaker 1: box of golden grams. I was like, God, this will

488
00:22:41,880 --> 00:22:45,240
Speaker 1: make these rice crispy treats prohibitably expensive. We're not doing it. Cereal.

489
00:22:45,920 --> 00:22:48,520
Speaker 1: I feel like, just in general, cereal can oftentimes kind

490
00:22:48,520 --> 00:22:50,840
Speaker 1: of be a rip off. For sure, so supposed to

491
00:22:50,880 --> 00:22:52,359
Speaker 1: just like a couple of eggs, Like, think about the

492
00:22:52,400 --> 00:22:54,399
Speaker 1: nutrition you get out of a couple of eggs and

493
00:22:54,440 --> 00:22:56,240
Speaker 1: what that costs you as opposed to a bowl of

494
00:22:56,320 --> 00:22:58,119
Speaker 1: cereal and some you might you might find that a

495
00:22:58,200 --> 00:23:01,560
Speaker 1: couple of no name brands hold up better than the

496
00:23:01,600 --> 00:23:03,920
Speaker 1: store brand equivalent. Um, but that's what's great at a

497
00:23:03,960 --> 00:23:05,720
Speaker 1: place like all that you can always return something with

498
00:23:05,760 --> 00:23:10,640
Speaker 1: their double guarantee, right, yeah, exactly, so you can take

499
00:23:10,680 --> 00:23:13,280
Speaker 1: that back if you hate it. But yeah, Similarly, Matt,

500
00:23:13,359 --> 00:23:16,000
Speaker 1: new new sales data shows that the more folks are

501
00:23:16,000 --> 00:23:18,159
Speaker 1: trading down to drink cheaper booze too. They're not just

502
00:23:18,160 --> 00:23:20,080
Speaker 1: trading down for store brands, but they're training down their

503
00:23:20,119 --> 00:23:22,800
Speaker 1: whiskey buying, buying the cheap stuff. So and I think

504
00:23:22,800 --> 00:23:25,080
Speaker 1: that makes sense, right, It was easier to buy the

505
00:23:25,119 --> 00:23:27,760
Speaker 1: high end stuff after you've got a giant stimmy check

506
00:23:27,800 --> 00:23:29,639
Speaker 1: in your savings account and you're like, where am I

507
00:23:29,640 --> 00:23:33,120
Speaker 1: gonna blow this? I guess on on nice booze, not nice.

508
00:23:33,400 --> 00:23:35,280
Speaker 1: We're doing a story, let mean, two years ago about

509
00:23:35,280 --> 00:23:37,760
Speaker 1: this time of year, and just talking about the massive

510
00:23:37,760 --> 00:23:40,240
Speaker 1: amounts of money people were spending on like the super

511
00:23:40,280 --> 00:23:43,760
Speaker 1: premium liquor and wine exactly is blowing up for real,

512
00:23:43,840 --> 00:23:46,000
Speaker 1: and and now that's that's starting to shift back down right,

513
00:23:46,520 --> 00:23:48,760
Speaker 1: because those savings are starting to dwindle a little bit.

514
00:23:48,800 --> 00:23:52,320
Speaker 1: Prices are rising nearly everywhere we look, and so people

515
00:23:52,320 --> 00:23:55,280
Speaker 1: are trading down at craft beer is obviously our craft

516
00:23:55,280 --> 00:23:58,359
Speaker 1: beer equivalent. So you're not gonna find us necessarily training

517
00:23:58,400 --> 00:24:01,680
Speaker 1: down to drink PBR very free. Only we'd probably rather

518
00:24:02,000 --> 00:24:04,760
Speaker 1: most of the time, Matt drink fewer beers than to

519
00:24:04,880 --> 00:24:07,080
Speaker 1: trade down to drink cheaper once. Right, we're about yeah,

520
00:24:07,160 --> 00:24:09,560
Speaker 1: quality over quantity, but every day of the week. Yeah,

521
00:24:09,720 --> 00:24:12,040
Speaker 1: but if like liquor, if beer or whatever is not

522
00:24:12,080 --> 00:24:15,160
Speaker 1: your craft beer equivalent, if you would rather uh send

523
00:24:15,160 --> 00:24:17,719
Speaker 1: your money towards other parts of your budget that are

524
00:24:17,720 --> 00:24:20,520
Speaker 1: more important, we just recommend for you to maybe drink

525
00:24:20,600 --> 00:24:23,000
Speaker 1: less as a result of rising prices and trade it

526
00:24:23,000 --> 00:24:25,119
Speaker 1: down because it's wasteful. Yeah. Let the same thing with

527
00:24:25,200 --> 00:24:27,399
Speaker 1: like just like with the groceries, Like this is I

528
00:24:27,440 --> 00:24:29,320
Speaker 1: want this. I'm glad that this is here because it's

529
00:24:29,320 --> 00:24:31,800
Speaker 1: causing folks to kind of rethink everything essentially, right, Like

530
00:24:31,800 --> 00:24:33,959
Speaker 1: I want folks to question what they're spending their money on.

531
00:24:34,440 --> 00:24:37,360
Speaker 1: Like everything should be on the chopping block, even craft beer.

532
00:24:37,400 --> 00:24:39,480
Speaker 1: For us, it's like, okay, how much do we actually

533
00:24:39,480 --> 00:24:41,720
Speaker 1: care about craft beer, and we really like it. So

534
00:24:41,720 --> 00:24:44,240
Speaker 1: we're gonna continue to buy quality craft beer. But it

535
00:24:44,280 --> 00:24:47,320
Speaker 1: shouldn't be this foregone conclusion that, uh, that you are

536
00:24:47,359 --> 00:24:49,480
Speaker 1: always going to buy something like it's gonna cause us

537
00:24:49,520 --> 00:24:51,159
Speaker 1: to rethink it and we'll think about it for a

538
00:24:51,160 --> 00:24:53,239
Speaker 1: little bit and be like okay, yes or no, well

539
00:24:53,400 --> 00:24:54,760
Speaker 1: you know, we might change your mind. Well, I talked

540
00:24:54,800 --> 00:24:56,840
Speaker 1: about how, I don't know, this was maybe like six

541
00:24:56,840 --> 00:24:58,400
Speaker 1: months or a year ago. I talked about how there

542
00:24:58,400 --> 00:25:01,440
Speaker 1: was that one new brewery in Georgia more Talus I

543
00:25:01,440 --> 00:25:02,600
Speaker 1: think it is what they were called, and it was

544
00:25:02,640 --> 00:25:04,880
Speaker 1: like thirty six dollars for a four packs. They're like

545
00:25:04,880 --> 00:25:06,560
Speaker 1: New York, I thought, are they We Well, we just

546
00:25:06,560 --> 00:25:09,000
Speaker 1: started getting them here in Georgia, like they started distributing,

547
00:25:09,119 --> 00:25:10,800
Speaker 1: and I was like, yeah, that's that's too much, like

548
00:25:10,920 --> 00:25:13,680
Speaker 1: not interested at that price point. And so even even

549
00:25:13,720 --> 00:25:16,000
Speaker 1: we have our limits when it comes to paying money

550
00:25:16,000 --> 00:25:18,320
Speaker 1: for craft beer. Uh. And so yeah, we still like

551
00:25:18,440 --> 00:25:20,280
Speaker 1: craft beer, but yeah, we might we could find ways

552
00:25:20,280 --> 00:25:22,119
Speaker 1: to pair back on that spending too. There's no brewery

553
00:25:22,119 --> 00:25:23,800
Speaker 1: in Georgia that would charge that m lesh. She's gotta

554
00:25:23,840 --> 00:25:26,760
Speaker 1: be some New York or California. That's kind so much

555
00:25:27,000 --> 00:25:30,800
Speaker 1: more overhead. But actually, speaking of California, it turns out

556
00:25:30,920 --> 00:25:32,920
Speaker 1: l A they actually might become one of the first

557
00:25:33,040 --> 00:25:36,080
Speaker 1: major cities to ban new gas stations. I think it

558
00:25:36,160 --> 00:25:39,399
Speaker 1: was Pedaluma, also in California that banned the building of

559
00:25:39,440 --> 00:25:41,600
Speaker 1: new gas stations a year or two ago. Yeah, the

560
00:25:41,600 --> 00:25:44,680
Speaker 1: home of long Anitas. That's right. Yeah, speaking of California

561
00:25:44,760 --> 00:25:47,159
Speaker 1: and beer, but with electric vehicles on the rise, it

562
00:25:47,200 --> 00:25:50,240
Speaker 1: makes sense that building new gas stations that's not a

563
00:25:50,280 --> 00:25:53,080
Speaker 1: smart investment, and that it you know, it could lead

564
00:25:53,080 --> 00:25:55,119
Speaker 1: to cost the cleanup in the future. Uh. It's a

565
00:25:55,200 --> 00:25:58,280
Speaker 1: tough one though, because you know, the transition from fossil

566
00:25:58,320 --> 00:26:01,040
Speaker 1: fuels to renewable green energy, it's it's taking time. It's

567
00:26:01,040 --> 00:26:03,640
Speaker 1: not gonna happen overnight. And if you try to eliminate

568
00:26:03,640 --> 00:26:06,560
Speaker 1: the usage of oil and gas before solar and wind

569
00:26:06,600 --> 00:26:09,440
Speaker 1: are already for prime time, essentially, like I think we're

570
00:26:09,440 --> 00:26:13,640
Speaker 1: gonna see price pikes, we might see uh more hardships

571
00:26:13,640 --> 00:26:17,240
Speaker 1: for consumers in the near term. It's just interesting that

572
00:26:17,520 --> 00:26:19,560
Speaker 1: you like, like what I mean, We're not like policy

573
00:26:19,600 --> 00:26:21,639
Speaker 1: experts by any stretch, but I think it makes so

574
00:26:21,720 --> 00:26:24,320
Speaker 1: much more sense to incentivize maybe the behaviors that you

575
00:26:24,359 --> 00:26:27,280
Speaker 1: want to see more of, as opposed to putting a

576
00:26:27,359 --> 00:26:30,200
Speaker 1: hard stop, putting the kabash on something that you want

577
00:26:30,240 --> 00:26:33,800
Speaker 1: to discourage. Um. But I guess California is gonna's gonna

578
00:26:33,800 --> 00:26:36,240
Speaker 1: do what they're gonna do. Yeah's gonna be l a

579
00:26:36,560 --> 00:26:39,000
Speaker 1: and so um. And in a lot of ways that's good.

580
00:26:39,200 --> 00:26:41,920
Speaker 1: In some ways, it might be an over disciplinary approach.

581
00:26:42,119 --> 00:26:46,480
Speaker 1: Would maybe a softer touch is better. It feels too hard.

582
00:26:46,520 --> 00:26:49,600
Speaker 1: It feels like there are softer avenues and strategies that

583
00:26:49,600 --> 00:26:51,719
Speaker 1: can be taken. Yes, But what's great is that they

584
00:26:51,720 --> 00:26:53,200
Speaker 1: can try it out and we'll see how it goes,

585
00:26:53,280 --> 00:26:55,080
Speaker 1: and then the rest of the country, state by state,

586
00:26:55,119 --> 00:26:56,800
Speaker 1: city by city can decide what they want to do

587
00:26:57,040 --> 00:26:59,200
Speaker 1: for sure. And I hope that some of these gas

588
00:26:59,200 --> 00:27:02,360
Speaker 1: stations are gonna start being more inventive when it comes

589
00:27:02,359 --> 00:27:05,119
Speaker 1: to installing electrical chargers. You know, we're seeing at the

590
00:27:05,119 --> 00:27:07,639
Speaker 1: grocery stores, We're seeing them at all sorts of places

591
00:27:07,640 --> 00:27:09,440
Speaker 1: where you might go, where you might go shop. And

592
00:27:09,640 --> 00:27:11,200
Speaker 1: I hope gas stations are going to kind of get

593
00:27:11,240 --> 00:27:13,879
Speaker 1: on this too, because it is the future, and I

594
00:27:13,920 --> 00:27:17,119
Speaker 1: would like to see fewer gas stations and more EV chargers, UM,

595
00:27:17,160 --> 00:27:18,840
Speaker 1: and I'd just like to see more evs on the road.

596
00:27:18,920 --> 00:27:21,640
Speaker 1: But here's the thing. Gas prices UM obviously have been

597
00:27:21,720 --> 00:27:25,920
Speaker 1: a major topic of concern in recent months as they've

598
00:27:25,920 --> 00:27:29,840
Speaker 1: been skyrocketing. But don't look now, gas prices are actually falling.

599
00:27:30,000 --> 00:27:32,480
Speaker 1: And you know, we just talked about with a couple

600
00:27:32,520 --> 00:27:35,520
Speaker 1: of weeks ago, Matt, how to kind of curb some

601
00:27:35,760 --> 00:27:38,880
Speaker 1: of your gas station spending. But and at that time

602
00:27:38,920 --> 00:27:41,160
Speaker 1: we were talked about how experts were predicting six dollar

603
00:27:41,240 --> 00:27:43,600
Speaker 1: a gallon gas, But it looks like we might be

604
00:27:43,640 --> 00:27:47,119
Speaker 1: avoiding that because goodness, yeah, I know right that it

605
00:27:47,200 --> 00:27:49,320
Speaker 1: was kind of freaking me out. But for us hitting

606
00:27:49,320 --> 00:27:53,240
Speaker 1: that one for a fill up threshold was painful. Yeah,

607
00:27:53,280 --> 00:27:54,960
Speaker 1: I mean for a lot, and a lot of folks

608
00:27:54,960 --> 00:27:57,200
Speaker 1: were even more than that. Sure, I could not imagine

609
00:27:57,240 --> 00:28:00,240
Speaker 1: climbing north of that one dollar mark that I don't

610
00:28:00,280 --> 00:28:03,160
Speaker 1: ever want to get there. But crude oil prices they've

611
00:28:03,200 --> 00:28:07,840
Speaker 1: gone down significantly as recession expectations have been rising. And

612
00:28:07,880 --> 00:28:09,560
Speaker 1: then you know, prices at the pump have actually gone

613
00:28:09,600 --> 00:28:12,200
Speaker 1: down now for twenty one straight days, for more than

614
00:28:12,240 --> 00:28:14,040
Speaker 1: three weeks in a row, and and that's just a

615
00:28:14,080 --> 00:28:17,080
Speaker 1: welcome relief for basically all of US, um and and

616
00:28:17,080 --> 00:28:19,080
Speaker 1: hopefully that's going to do something to stem the tide

617
00:28:19,080 --> 00:28:22,240
Speaker 1: of inflation too, because um, we're actually gonna talk more

618
00:28:22,320 --> 00:28:25,320
Speaker 1: about a potential recession, what it looks like to make

619
00:28:25,359 --> 00:28:29,560
Speaker 1: the most of an economic downturn next Wednesday on that episode.

620
00:28:29,600 --> 00:28:33,040
Speaker 1: And so, yeah, if the American economy does slow significantly,

621
00:28:33,280 --> 00:28:35,640
Speaker 1: we want you to be able to not just survive,

622
00:28:35,760 --> 00:28:38,200
Speaker 1: but thrive. And there are ways that you can not

623
00:28:38,400 --> 00:28:41,120
Speaker 1: just batten down the hatches, but that you can actually

624
00:28:41,400 --> 00:28:45,840
Speaker 1: prosper in if if we do enter more difficult economic era.

625
00:28:45,960 --> 00:28:48,280
Speaker 1: You know, we want you to get ahead, not just

626
00:28:48,440 --> 00:28:51,160
Speaker 1: weather this storm. Yeah, exactly, But that's gonna be it

627
00:28:51,280 --> 00:28:54,280
Speaker 1: for this Friday Flights. You can find the different stories

628
00:28:54,280 --> 00:28:57,280
Speaker 1: and resources we have mentioned during this episode up on

629
00:28:57,320 --> 00:28:59,600
Speaker 1: our website at how the Money dot com. But we

630
00:28:59,640 --> 00:29:01,600
Speaker 1: hope you have a great weekend. We will see you

631
00:29:01,600 --> 00:29:04,200
Speaker 1: back here on Monday. We've got a fresh set a

632
00:29:04,240 --> 00:29:07,680
Speaker 1: fresh batch of listener questions lined up for you, So Joel,

633
00:29:07,800 --> 00:29:10,840
Speaker 1: until next time, best Friends Out, best Friends Out,