1 00:00:00,080 --> 00:00:02,719 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt. 2 00:00:02,960 --> 00:00:07,120 Speaker 1: Today we're discussing student loan payment pause, the worst car loans, 3 00:00:07,320 --> 00:00:29,920 Speaker 1: and avoiding this common hs A blunder. That's right, Joel. 4 00:00:29,960 --> 00:00:32,840 Speaker 1: This is our Friday Flight episode where we are gonna 5 00:00:32,840 --> 00:00:34,720 Speaker 1: take a look back on the stories that we came 6 00:00:34,760 --> 00:00:36,720 Speaker 1: across this week, and we're gonna talk about how it 7 00:00:36,760 --> 00:00:39,519 Speaker 1: affects our personal finances. I'm excited to get to the 8 00:00:39,520 --> 00:00:43,080 Speaker 1: stories you mentioned, plus uh several others during this episode. 9 00:00:43,360 --> 00:00:44,880 Speaker 1: But I know first you wanted to share a little 10 00:00:44,880 --> 00:00:47,840 Speaker 1: bit about how much you love your credit union. Okay, 11 00:00:47,840 --> 00:00:49,720 Speaker 1: so I have a love hate relationship with my credit 12 00:00:49,800 --> 00:00:52,560 Speaker 1: union right now. We have talked about on the show 13 00:00:53,000 --> 00:00:55,720 Speaker 1: many times about how much we love credit unions. There 14 00:00:55,720 --> 00:00:57,520 Speaker 1: are a lot of reasons for that. I'm pretty sure 15 00:00:57,520 --> 00:00:59,360 Speaker 1: we did a whole episode on that, like on a 16 00:00:59,360 --> 00:01:01,120 Speaker 1: four or five months go. I think it was called 17 00:01:01,240 --> 00:01:04,520 Speaker 1: why we Love Credit Union. It was like it was 18 00:01:04,560 --> 00:01:06,400 Speaker 1: like it was worth than a year ago. I think, well, 19 00:01:06,440 --> 00:01:08,360 Speaker 1: I still dig them, but I will say I have 20 00:01:08,400 --> 00:01:11,240 Speaker 1: a pain point with my current credit union right now, 21 00:01:11,400 --> 00:01:15,160 Speaker 1: and it is their website is awful. It's trash, and 22 00:01:15,240 --> 00:01:18,399 Speaker 1: I was trying to transfer money recently from my credit 23 00:01:18,440 --> 00:01:22,759 Speaker 1: union account to a savings account with another institution, and 24 00:01:22,800 --> 00:01:25,920 Speaker 1: the way the way they limit your transfers, it's just painful. 25 00:01:26,200 --> 00:01:29,360 Speaker 1: Uh it's like two thousand dollars a day max. But 26 00:01:29,400 --> 00:01:31,200 Speaker 1: then you go back in like a week later, and 27 00:01:31,200 --> 00:01:32,880 Speaker 1: it's like, we still haven't finished the transfer, so you 28 00:01:32,920 --> 00:01:35,920 Speaker 1: can't transfer anymore. And so I just had never, Oh, 29 00:01:35,959 --> 00:01:38,200 Speaker 1: you still want that to happen, and thanks for letting us. 30 00:01:38,360 --> 00:01:40,080 Speaker 1: We'll get on it, um. I don't know, after we 31 00:01:40,200 --> 00:01:41,640 Speaker 1: like take a nap or something, then we'll send you 32 00:01:41,680 --> 00:01:45,720 Speaker 1: a fact with the confirmation. Right. So I just wanted 33 00:01:45,760 --> 00:01:48,520 Speaker 1: to put that out there. Love credit unions. There's so 34 00:01:48,560 --> 00:01:51,080 Speaker 1: many reasons to do business with the credit union. I 35 00:01:51,160 --> 00:01:55,000 Speaker 1: just wish that my local credit union would get their 36 00:01:55,040 --> 00:01:58,120 Speaker 1: act together when it comes to, you know, a little 37 00:01:58,120 --> 00:02:02,640 Speaker 1: bit better customer service. UM from in particular that website standpoint. Yeah, 38 00:02:02,680 --> 00:02:04,440 Speaker 1: I mean that was one of the downsides that we 39 00:02:04,520 --> 00:02:06,520 Speaker 1: presented in that episode. I think it was one of 40 00:02:06,520 --> 00:02:09,000 Speaker 1: the few downsides we gave. They don't pay great interest 41 00:02:09,080 --> 00:02:11,120 Speaker 1: rates if you're a saver, and they also have poor 42 00:02:11,200 --> 00:02:13,920 Speaker 1: interfaces when it comes to just the online support. The 43 00:02:13,960 --> 00:02:16,560 Speaker 1: online interface. This is one area that I'm glad to 44 00:02:16,560 --> 00:02:20,240 Speaker 1: see other kind of medium sized players step into mix, right, 45 00:02:20,480 --> 00:02:23,200 Speaker 1: because we love credit unions because they offer great competitive 46 00:02:23,240 --> 00:02:25,280 Speaker 1: rates if you're looking for a loan. But now there 47 00:02:25,320 --> 00:02:27,919 Speaker 1: are folks like Rocket Mortgage or better dot Com, these 48 00:02:27,919 --> 00:02:29,840 Speaker 1: players that I kind of see as like more middle 49 00:02:29,840 --> 00:02:32,440 Speaker 1: of the pack kind of lenders, because before what I 50 00:02:32,440 --> 00:02:35,320 Speaker 1: felt like like there were a bunch of massive banks. Yeah, 51 00:02:35,320 --> 00:02:37,040 Speaker 1: there was this huge, big guys, and then there were 52 00:02:37,080 --> 00:02:39,240 Speaker 1: like the credit unions, and because of that, we said, okay, 53 00:02:39,280 --> 00:02:41,079 Speaker 1: if we got to pick one over the other, let's 54 00:02:41,120 --> 00:02:43,720 Speaker 1: go with the credit unions. But now these other companies 55 00:02:43,720 --> 00:02:47,359 Speaker 1: are stepping into the void essentially, and they're also offering 56 00:02:47,440 --> 00:02:50,040 Speaker 1: really great rates, and then oftentimes they're selling those loans 57 00:02:50,080 --> 00:02:54,040 Speaker 1: to other loan servicers who have great online portals that 58 00:02:54,120 --> 00:02:57,080 Speaker 1: make it really easy to actually set up those automatic payments, 59 00:02:57,200 --> 00:02:59,120 Speaker 1: the ability to transfer money in and out of those 60 00:02:59,120 --> 00:03:03,280 Speaker 1: accounts very easy, even just like some basics like online statements. 61 00:03:03,400 --> 00:03:06,120 Speaker 1: One of my credit unions, they don't issue you a 62 00:03:06,160 --> 00:03:09,400 Speaker 1: mortgage statement every single month, seriously, like they choose like 63 00:03:09,440 --> 00:03:12,839 Speaker 1: three random months of the year. But yeah, with you 64 00:03:13,360 --> 00:03:16,360 Speaker 1: like credit unions, but there is definitely some room for improvements, 65 00:03:16,440 --> 00:03:18,920 Speaker 1: and they leave a little to be desired, especially on 66 00:03:18,960 --> 00:03:22,320 Speaker 1: that technological front. And so I'm just putting this out 67 00:03:22,320 --> 00:03:24,520 Speaker 1: there to my local credit union. I would love to 68 00:03:24,560 --> 00:03:27,560 Speaker 1: see you invest some uh, you know, a little bit 69 00:03:27,560 --> 00:03:30,040 Speaker 1: of time, a little effort into making that website more 70 00:03:30,120 --> 00:03:32,600 Speaker 1: user friendly and even just making a transfer. It shouldn't 71 00:03:32,600 --> 00:03:35,400 Speaker 1: be as difficult as it was. Um. And yeah, I 72 00:03:35,480 --> 00:03:38,240 Speaker 1: love you, I'll still I'll stick with you, but I 73 00:03:38,280 --> 00:03:40,360 Speaker 1: just want you to know that you can improve, you 74 00:03:40,400 --> 00:03:42,280 Speaker 1: can do better. But as long as they're still offering 75 00:03:42,320 --> 00:03:44,560 Speaker 1: those free of Letty United tickets Rember, the one time 76 00:03:44,640 --> 00:03:48,240 Speaker 1: we scored those free right little Instagram Instagram challenge or 77 00:03:48,240 --> 00:03:50,880 Speaker 1: something from our local credit us, we wanted. That was 78 00:03:50,920 --> 00:03:52,640 Speaker 1: a lot of fun. All right, let's gonna get to 79 00:03:52,680 --> 00:03:54,840 Speaker 1: the our stories from this week. This is that quick 80 00:03:54,840 --> 00:03:57,560 Speaker 1: sampling that we found interesting. And let's first pick it 81 00:03:57,600 --> 00:04:00,200 Speaker 1: off with student loans. This is something that's run event 82 00:04:00,280 --> 00:04:02,320 Speaker 1: too many. How do money listeners? Uh? And this was 83 00:04:02,360 --> 00:04:05,320 Speaker 1: announced actually last Friday, but it was after our Friday 84 00:04:05,320 --> 00:04:08,360 Speaker 1: flight was already out. It was like Friday five pm 85 00:04:08,440 --> 00:04:10,440 Speaker 1: or something like. Yeah, one of those last minute things, 86 00:04:10,640 --> 00:04:12,480 Speaker 1: and so it turns out that the student loan payment 87 00:04:12,520 --> 00:04:15,360 Speaker 1: pause will continue. Uh, I know, yeah, if I if 88 00:04:15,400 --> 00:04:17,240 Speaker 1: I had student loans, this would be pretty great news, 89 00:04:17,520 --> 00:04:19,560 Speaker 1: be pretty pumped right now. But I'm more glad to 90 00:04:19,720 --> 00:04:23,240 Speaker 1: not have anything student loans currently. But not having to 91 00:04:23,320 --> 00:04:25,719 Speaker 1: pay on those loans if you do have them, while 92 00:04:25,800 --> 00:04:28,000 Speaker 1: also not accruing interest, is going to allow you to 93 00:04:28,080 --> 00:04:31,520 Speaker 1: prioritize other financial goals for the time being. Maybe that's 94 00:04:31,680 --> 00:04:33,920 Speaker 1: saving up for that down payment for your new place, 95 00:04:34,160 --> 00:04:36,480 Speaker 1: investing that money if that's not something you've already done, 96 00:04:36,720 --> 00:04:39,279 Speaker 1: all that is great for you, right or just building 97 00:04:39,320 --> 00:04:41,040 Speaker 1: up that emergency fund if you're not where you want 98 00:04:41,040 --> 00:04:43,479 Speaker 1: to be at step one. Yeah, gear number one baby. 99 00:04:43,920 --> 00:04:45,800 Speaker 1: And this is especially great news if you are on 100 00:04:45,839 --> 00:04:48,919 Speaker 1: the ten year Public Service loan forgiveness plan, because that 101 00:04:49,000 --> 00:04:52,839 Speaker 1: means twenty three months where payments weren't required in all. 102 00:04:52,839 --> 00:04:54,880 Speaker 1: Twenty three of those months are actually going to count 103 00:04:55,120 --> 00:04:59,520 Speaker 1: towards your decade long repayment period. That's incredibly good news 104 00:04:59,520 --> 00:05:01,840 Speaker 1: for those that's I mean, that's a significant show. That's 105 00:05:01,920 --> 00:05:06,080 Speaker 1: almost of the time allotted that you needed to pay 106 00:05:06,120 --> 00:05:08,440 Speaker 1: on your loan to be able to qualify that you 107 00:05:08,480 --> 00:05:10,840 Speaker 1: didn't have a payment and so that just means more 108 00:05:11,040 --> 00:05:13,200 Speaker 1: forgiveness at the end of the road, which is great. 109 00:05:13,440 --> 00:05:16,880 Speaker 1: And uh, yeah, payments should resume in February. The Education 110 00:05:16,960 --> 00:05:19,840 Speaker 1: Department actually emphasized that this will be the last extension. 111 00:05:20,120 --> 00:05:23,880 Speaker 1: So make sure you're you're setting yourself up financially to 112 00:05:23,960 --> 00:05:26,599 Speaker 1: be ready for those payments to resume when the time comes. 113 00:05:27,000 --> 00:05:29,560 Speaker 1: Be ready to make a student loan payment in February. 114 00:05:29,960 --> 00:05:32,480 Speaker 1: Uh and so like seriously this time right, right? Yeah, no, 115 00:05:32,640 --> 00:05:35,880 Speaker 1: we mean it, you're sure government, Okay, I would not 116 00:05:36,000 --> 00:05:38,240 Speaker 1: count on getting another one, that's for sure. The one 117 00:05:38,279 --> 00:05:40,280 Speaker 1: thing you don't want to do with the money that 118 00:05:40,320 --> 00:05:42,400 Speaker 1: you should be paying in student loans is to increase 119 00:05:42,440 --> 00:05:44,880 Speaker 1: your lifestyle with those funds, because you're taking money that 120 00:05:44,920 --> 00:05:47,240 Speaker 1: needs to be in your budget, you know, in a 121 00:05:47,279 --> 00:05:50,279 Speaker 1: few months time, and you're incorporating it into your spending, 122 00:05:50,600 --> 00:05:54,240 Speaker 1: and then it becomes even harder, right to untangle and 123 00:05:54,400 --> 00:05:56,720 Speaker 1: to start paying on those student loans again. Yeah, we 124 00:05:56,720 --> 00:05:59,320 Speaker 1: would say set yourself up for success, don't absorb that 125 00:05:59,360 --> 00:06:02,559 Speaker 1: extra money into Yeah, you're you're spending your outgoing funds. 126 00:06:02,600 --> 00:06:04,680 Speaker 1: It's I mean, honestly, if you can continue making those payments, 127 00:06:04,680 --> 00:06:07,040 Speaker 1: but just making to yourself, right, Like, don't just let 128 00:06:07,080 --> 00:06:10,640 Speaker 1: all the different categories of your budget just swell. Instead, 129 00:06:11,240 --> 00:06:13,440 Speaker 1: make sure you're you're marking that money, and like we said, 130 00:06:13,480 --> 00:06:15,800 Speaker 1: make sure you're putting that towards something more meaningful, whether 131 00:06:15,839 --> 00:06:19,039 Speaker 1: that's setting up your emergency fund, investing, saving that towards 132 00:06:19,080 --> 00:06:21,160 Speaker 1: other financial goals. But I mean, yeah, the worst thing 133 00:06:21,160 --> 00:06:22,880 Speaker 1: you want to do is to exit this period of 134 00:06:22,880 --> 00:06:24,760 Speaker 1: time and then you're like, oh, man, like that was 135 00:06:24,800 --> 00:06:26,720 Speaker 1: a lot of money. Actually when I total it all up, 136 00:06:26,760 --> 00:06:28,560 Speaker 1: what was what was I actually able to do? And 137 00:06:28,560 --> 00:06:30,680 Speaker 1: in reality you just maybe spend it on drinks out 138 00:06:30,720 --> 00:06:32,600 Speaker 1: with friends or just spending more at the store or 139 00:06:32,640 --> 00:06:34,600 Speaker 1: whatever it is. This is the perfect chance to get 140 00:06:34,600 --> 00:06:37,279 Speaker 1: ahead financially and you take advantage of it, is what 141 00:06:37,320 --> 00:06:39,080 Speaker 1: we would say. And we're actually you're gonna talk with 142 00:06:39,279 --> 00:06:42,080 Speaker 1: a c s LP that's a certified Student Loan Professional 143 00:06:42,320 --> 00:06:45,839 Speaker 1: and also a former Olympic gold medal winner, Lauren Williams 144 00:06:45,920 --> 00:06:48,480 Speaker 1: on Monday Show about how to approach your student loans 145 00:06:48,920 --> 00:06:51,800 Speaker 1: given the recent news. She is a fountain of knowledge. 146 00:06:51,800 --> 00:06:54,120 Speaker 1: So we're looking forward to, yeah, sharing that conversation with you. 147 00:06:54,240 --> 00:06:56,680 Speaker 1: That's right, And let's talk about inflation here for a minute. 148 00:06:56,880 --> 00:07:00,240 Speaker 1: If you are a regular HTM Friday flight, let's in here, 149 00:07:00,520 --> 00:07:01,880 Speaker 1: or maybe just as long as you're not living in 150 00:07:01,960 --> 00:07:04,080 Speaker 1: a cave or something, you know that there have been 151 00:07:04,120 --> 00:07:07,160 Speaker 1: some real inflation concerns recently. The New York Times they 152 00:07:07,160 --> 00:07:10,200 Speaker 1: had an article this week detailing just how bad things 153 00:07:10,200 --> 00:07:13,239 Speaker 1: have gotten recently for savers uh, and largely that's because 154 00:07:13,240 --> 00:07:17,120 Speaker 1: of rising inflation. Basically, even though your savings account might 155 00:07:17,160 --> 00:07:20,080 Speaker 1: be paying you close to point five percent assuming you're 156 00:07:20,120 --> 00:07:22,000 Speaker 1: with one of the better online banks, if you're with 157 00:07:22,200 --> 00:07:24,280 Speaker 1: one of the huge banks, they're probably paying you like 158 00:07:24,360 --> 00:07:29,440 Speaker 1: point zero five percent at best. Best. Uh, the real 159 00:07:29,600 --> 00:07:32,480 Speaker 1: rate of a turn on your savings is actually negative 160 00:07:32,480 --> 00:07:34,480 Speaker 1: these days, despite the fact that you might be earning 161 00:07:34,520 --> 00:07:37,040 Speaker 1: half a percent, because first of all, half percent that's 162 00:07:37,040 --> 00:07:39,920 Speaker 1: pretty pidily in any environment. But it's actually going to 163 00:07:40,000 --> 00:07:43,520 Speaker 1: look much worse as inflation gets worse. But the problem is, 164 00:07:43,600 --> 00:07:45,840 Speaker 1: like there is just not much that savers can do 165 00:07:46,280 --> 00:07:48,840 Speaker 1: investing savings that you want to have on hand for 166 00:07:48,880 --> 00:07:51,520 Speaker 1: a near term purchase or putting your emergency fund money 167 00:07:51,520 --> 00:07:53,680 Speaker 1: in the stock market that could leave you in a 168 00:07:53,760 --> 00:07:56,640 Speaker 1: in a pickle if the market experiences turbulence and you 169 00:07:56,720 --> 00:07:58,960 Speaker 1: might you know you might have actually less money than 170 00:07:59,000 --> 00:08:02,080 Speaker 1: you started with, less money than just the impact of 171 00:08:02,080 --> 00:08:04,880 Speaker 1: inflation on your dollars. Yeah, it's dispiriting. I think to 172 00:08:04,920 --> 00:08:08,480 Speaker 1: read that headline as someone who enjoys saving, it's like, 173 00:08:09,000 --> 00:08:12,920 Speaker 1: dang it, my savings is earning. Actually it's negative returns 174 00:08:13,000 --> 00:08:15,400 Speaker 1: right now, especially you feel distancentivized to do something that 175 00:08:15,400 --> 00:08:17,720 Speaker 1: you know you should be doing exactly, and especially with 176 00:08:17,880 --> 00:08:19,480 Speaker 1: how well the market has been doing. I think people 177 00:08:19,520 --> 00:08:21,480 Speaker 1: are like, well, I'm just gonna take a chance, um, 178 00:08:21,480 --> 00:08:24,560 Speaker 1: but there is there's not much wisdom there in that decision. 179 00:08:24,920 --> 00:08:26,960 Speaker 1: If you need that money in the short term, you 180 00:08:27,000 --> 00:08:29,120 Speaker 1: basically have to roll with the punches. And a friend 181 00:08:29,160 --> 00:08:30,960 Speaker 1: of the show, Ben Carlson, wrote this week that the 182 00:08:31,000 --> 00:08:34,720 Speaker 1: current situation might be the worst ever for someone saving 183 00:08:34,760 --> 00:08:37,120 Speaker 1: their money in a bank or a money market account. 184 00:08:37,440 --> 00:08:40,439 Speaker 1: And yeah, we hate seeing that because saving money is 185 00:08:40,440 --> 00:08:42,800 Speaker 1: a good thing. It just feels awful to be saving 186 00:08:42,840 --> 00:08:45,760 Speaker 1: in this current environment. But if you are an oversaver 187 00:08:46,080 --> 00:08:48,520 Speaker 1: in particular, and yes, that is a problem. There are 188 00:08:48,520 --> 00:08:51,000 Speaker 1: some people that save too much money. You want to 189 00:08:51,000 --> 00:08:53,520 Speaker 1: make sure that you are investing some of your money 190 00:08:53,559 --> 00:08:56,240 Speaker 1: for the future. Obviously, like Matt said, don't invest money 191 00:08:56,240 --> 00:08:57,839 Speaker 1: you're gonna need in the here and now or in 192 00:08:57,880 --> 00:09:00,559 Speaker 1: the next year or two. But also don't assume that 193 00:09:00,600 --> 00:09:03,040 Speaker 1: investing is risky, and the keeping your money in savings 194 00:09:03,400 --> 00:09:06,320 Speaker 1: in the savings account isn't. There is a very known 195 00:09:06,360 --> 00:09:08,760 Speaker 1: and quantifiable risk right now to having too much money 196 00:09:08,800 --> 00:09:11,839 Speaker 1: in savings. It's getting it's getting eaten alive. Yeah, currently 197 00:09:11,880 --> 00:09:14,080 Speaker 1: that risk is quantifiable because it is that five point 198 00:09:14,080 --> 00:09:17,960 Speaker 1: four percent that's the Labor Department put out the consumer 199 00:09:18,040 --> 00:09:21,000 Speaker 1: price Index this past week. That is the level inflation 200 00:09:21,040 --> 00:09:22,800 Speaker 1: that we've seen, of course, over the past twelve months. 201 00:09:22,840 --> 00:09:24,200 Speaker 1: But I will say I think we should maybe be 202 00:09:24,280 --> 00:09:26,839 Speaker 1: encouraged by the it did down to it because in 203 00:09:26,920 --> 00:09:29,120 Speaker 1: June it was point nine, and so July numbers have 204 00:09:29,200 --> 00:09:32,600 Speaker 1: showed point five, so almost half of the increase that 205 00:09:32,640 --> 00:09:35,559 Speaker 1: we saw in June. Uh, and so hopefully that might 206 00:09:35,600 --> 00:09:37,199 Speaker 1: mean that we're actually kind of, you know, reaching the 207 00:09:37,600 --> 00:09:39,520 Speaker 1: kind of the top of the hill. Hopefully we'll see 208 00:09:39,520 --> 00:09:41,800 Speaker 1: things continue to settle down in the coming months. Yeah, 209 00:09:41,800 --> 00:09:44,080 Speaker 1: I hope so, But yeah, I think you know, Matt, 210 00:09:44,160 --> 00:09:46,680 Speaker 1: we talked a while back in episode sixty nine about 211 00:09:46,960 --> 00:09:51,240 Speaker 1: investing and how investing involves risk, in not investing is 212 00:09:51,400 --> 00:09:53,560 Speaker 1: signing yourself up for this other kind of risk, right, 213 00:09:53,600 --> 00:09:57,320 Speaker 1: this guaranteed risk of baked in losses. And so yeah, 214 00:09:57,520 --> 00:10:00,080 Speaker 1: inflation is going to steadily erode the spending powers of 215 00:10:00,120 --> 00:10:02,760 Speaker 1: the dollars that you're saving. Savings has a place in 216 00:10:02,800 --> 00:10:07,240 Speaker 1: personal finance for sure, But not investing and being too 217 00:10:07,240 --> 00:10:09,600 Speaker 1: scared to put some of your money uh in the 218 00:10:09,679 --> 00:10:13,360 Speaker 1: market is a recipe for like certain doom for those 219 00:10:13,360 --> 00:10:16,760 Speaker 1: dollars over time. That's right, man, speaking of guaranteed losses. 220 00:10:17,000 --> 00:10:19,960 Speaker 1: Turns out that the lack of competition is ensuring that 221 00:10:20,000 --> 00:10:23,199 Speaker 1: more money is being parted from our wallets. There is 222 00:10:23,200 --> 00:10:26,400 Speaker 1: this interesting article over in Bloomberg recently about how much 223 00:10:26,440 --> 00:10:30,400 Speaker 1: money reduced levels of competition cost the average American family. 224 00:10:30,720 --> 00:10:34,960 Speaker 1: The White Houses National Economic Council estimates our collective losses 225 00:10:35,000 --> 00:10:37,520 Speaker 1: at roughly five thousand dollars a year. I want my 226 00:10:37,559 --> 00:10:42,040 Speaker 1: money back, But where does it come from? Against it works? Uh, 227 00:10:42,240 --> 00:10:44,480 Speaker 1: it comes from all the different companies that we pay 228 00:10:44,960 --> 00:10:47,760 Speaker 1: because they are able to jack prices up raise prices 229 00:10:47,760 --> 00:10:49,760 Speaker 1: when there is a lack of competition. Much of that 230 00:10:49,880 --> 00:10:53,359 Speaker 1: loss is due to companies merging, which creates fewer competitors. 231 00:10:53,559 --> 00:10:55,880 Speaker 1: In an industry. And they also point a finger at 232 00:10:55,920 --> 00:10:59,199 Speaker 1: increased regulations as well. Apparently thirty percent of jobs require 233 00:10:59,240 --> 00:11:01,800 Speaker 1: a license now, where as only five percent required one 234 00:11:02,200 --> 00:11:05,439 Speaker 1: back in the fifties. Uh, non compete agreements, that's another 235 00:11:05,480 --> 00:11:08,680 Speaker 1: factor that are keeping prices high. And you know, we 236 00:11:08,720 --> 00:11:11,720 Speaker 1: believe that capitalism it's not full proof, it's not without 237 00:11:11,760 --> 00:11:14,520 Speaker 1: its own issues. But you know this warning about the 238 00:11:14,760 --> 00:11:17,320 Speaker 1: high price that we pay, that we all pay when 239 00:11:17,320 --> 00:11:20,160 Speaker 1: competition is diminished, this is an important one to heed. Yeah, 240 00:11:20,160 --> 00:11:22,120 Speaker 1: that's a big headline number. Like to think about the 241 00:11:22,120 --> 00:11:25,640 Speaker 1: average family has five thousand dollars less every single year 242 00:11:25,679 --> 00:11:28,000 Speaker 1: to spend or to say or do whatever they want 243 00:11:28,040 --> 00:11:31,840 Speaker 1: with because there's not enough competition in certain sectors of 244 00:11:31,880 --> 00:11:33,719 Speaker 1: our economy. That was that was eye opening to read. 245 00:11:33,840 --> 00:11:36,720 Speaker 1: I mean that's almost a raw fire a right, I 246 00:11:36,720 --> 00:11:38,360 Speaker 1: mean just think about that over the years, how much 247 00:11:38,400 --> 00:11:40,520 Speaker 1: that could grow to if you invested that instead exactly 248 00:11:40,600 --> 00:11:42,839 Speaker 1: So it made me think, Matt, like, I started thinking 249 00:11:42,880 --> 00:11:46,079 Speaker 1: about the industries where competition is the stiffest, right, like 250 00:11:46,240 --> 00:11:49,800 Speaker 1: grocery stores for example, price competition is alive and well 251 00:11:50,000 --> 00:11:53,080 Speaker 1: it benefits consumers in society as a whole, that you 252 00:11:53,160 --> 00:11:55,680 Speaker 1: have a lot of options of where you want to 253 00:11:55,720 --> 00:11:57,920 Speaker 1: go in order to shop and get your groceries. Right. 254 00:11:58,160 --> 00:12:00,520 Speaker 1: You know, each chain is attempting to heel to a 255 00:12:00,559 --> 00:12:04,079 Speaker 1: different kind of customer with different budgets and different tastes. Uh. 256 00:12:04,120 --> 00:12:07,760 Speaker 1: The airline industry is another perfect example. The Wall Street 257 00:12:07,800 --> 00:12:11,040 Speaker 1: Journal actually reported this week that airfare prices have barely 258 00:12:11,040 --> 00:12:13,880 Speaker 1: budged over the last twenty five years. Uh So, the 259 00:12:13,920 --> 00:12:16,680 Speaker 1: price you would have paid for a ticket to Europe 260 00:12:17,600 --> 00:12:20,480 Speaker 1: years ago, like a quarter of a century ago, is 261 00:12:20,520 --> 00:12:23,280 Speaker 1: basically the same as what you pay now, in large 262 00:12:23,280 --> 00:12:26,520 Speaker 1: part thanks to competition and innovation, right and so, yeah, 263 00:12:26,520 --> 00:12:29,920 Speaker 1: that it should cost a lot more given inflation and 264 00:12:30,240 --> 00:12:33,240 Speaker 1: the rising prices of everything else, but they haven't exactly 265 00:12:33,280 --> 00:12:35,320 Speaker 1: And this was actually evidence to by Jet Blue. They 266 00:12:35,360 --> 00:12:38,199 Speaker 1: announced this week that they're gonna uh start partaking in 267 00:12:38,280 --> 00:12:40,319 Speaker 1: round trip service from New York to London, which is 268 00:12:40,320 --> 00:12:42,280 Speaker 1: gonna lower prices in a big way. They're gonna be 269 00:12:42,280 --> 00:12:45,600 Speaker 1: this new low cost competitor to some of the major 270 00:12:45,600 --> 00:12:48,160 Speaker 1: airlines who are flying that route consistently, and it's gonna 271 00:12:48,200 --> 00:12:50,079 Speaker 1: lower prices for every single person that wants to go 272 00:12:50,120 --> 00:12:53,000 Speaker 1: from New York to London. Um and fancy folks, even 273 00:12:53,000 --> 00:12:55,160 Speaker 1: some of those just general you know, European trips in 274 00:12:55,200 --> 00:12:58,120 Speaker 1: general too. But uh yeah, then take an industry where 275 00:12:58,160 --> 00:13:02,640 Speaker 1: competition is essentially not existent, like getting home internet service. 276 00:13:02,920 --> 00:13:06,880 Speaker 1: Like all of our listeners can identify with how painful 277 00:13:06,920 --> 00:13:10,360 Speaker 1: it is to get home internet service set up at 278 00:13:10,400 --> 00:13:12,560 Speaker 1: their house and how expensive it is. Prices are high. 279 00:13:12,559 --> 00:13:15,360 Speaker 1: They're often not even transparent. You don't even know what's 280 00:13:15,360 --> 00:13:17,679 Speaker 1: your first months bill is going to be, what taxes 281 00:13:17,720 --> 00:13:19,720 Speaker 1: and fees are going to be included in there. So 282 00:13:20,160 --> 00:13:23,280 Speaker 1: at the same time, customer service is abysmal from those companies. 283 00:13:23,480 --> 00:13:25,960 Speaker 1: There's just no incentive for companies like Comcast and and A, 284 00:13:26,040 --> 00:13:29,000 Speaker 1: T and T to do better. So one of the 285 00:13:29,000 --> 00:13:32,640 Speaker 1: fundamental truths of capitalism is that competition drives businesses to 286 00:13:32,640 --> 00:13:36,240 Speaker 1: make things better, faster, and cheaper. Let's hope that the 287 00:13:36,240 --> 00:13:39,320 Speaker 1: the NBC, the National Economic Council, is looking for ways 288 00:13:39,360 --> 00:13:42,400 Speaker 1: to bring competition back, because too little of it seems 289 00:13:42,440 --> 00:13:43,880 Speaker 1: to be costing all of us quite a bit of 290 00:13:43,920 --> 00:13:45,800 Speaker 1: money every year. That's right, man, All right, we are 291 00:13:45,880 --> 00:13:48,120 Speaker 1: only halfway through our Friday flight. We've got several other 292 00:13:48,120 --> 00:13:50,840 Speaker 1: stories that we're gonna get to after the break. Including 293 00:13:50,880 --> 00:13:53,240 Speaker 1: how there seems to be bidding wars taking place on 294 00:13:53,400 --> 00:13:56,640 Speaker 1: rental units. Will get to that story, plus several others 295 00:13:56,840 --> 00:14:07,840 Speaker 1: right after this break. All Right, we're back. We got 296 00:14:07,840 --> 00:14:10,120 Speaker 1: some more stories to get to. But of course, sweet 297 00:14:10,360 --> 00:14:13,719 Speaker 1: always have to get around to our ludicrous headline of 298 00:14:13,880 --> 00:14:18,120 Speaker 1: the week. Alright, I'm I'm concerned, are you? That was 299 00:14:18,160 --> 00:14:21,240 Speaker 1: my hagrid voice from Harry Potter. I thought I was 300 00:14:21,240 --> 00:14:22,800 Speaker 1: gonna have to rush you to the hospital. Do you 301 00:14:22,840 --> 00:14:24,040 Speaker 1: like that? One? That was good? That was good. We've 302 00:14:24,040 --> 00:14:25,840 Speaker 1: talked about how are reading Harry Potter to the to 303 00:14:25,880 --> 00:14:28,200 Speaker 1: the kids. We're getting pretty close to the end of 304 00:14:28,280 --> 00:14:31,200 Speaker 1: book three, which so far, dude, book three is like 305 00:14:31,280 --> 00:14:34,000 Speaker 1: easily one of the greatest. It's so good. I gotta say, 306 00:14:34,160 --> 00:14:36,120 Speaker 1: I know that Pixar is not reaching out to us 307 00:14:36,160 --> 00:14:38,720 Speaker 1: to do any voiceovers for any of their characters. That's 308 00:14:38,720 --> 00:14:40,480 Speaker 1: not gonna happen. But let's let's get to this week's 309 00:14:40,520 --> 00:14:43,040 Speaker 1: ludacrous headline, and it is from The New York the 310 00:14:43,120 --> 00:14:47,880 Speaker 1: week You're a You're a wizard? Harry. That was better, though, 311 00:14:48,440 --> 00:14:50,880 Speaker 1: that's because you can hear him saying that exactly exactly. 312 00:14:51,200 --> 00:14:54,440 Speaker 1: But yeah, this week's headline is titled even your allergist 313 00:14:54,560 --> 00:14:57,000 Speaker 1: is now investing in startups? This is a good one. Yeah, 314 00:14:57,000 --> 00:14:59,080 Speaker 1: this was sent our way by listener Livy, And yeah, 315 00:14:59,120 --> 00:15:01,520 Speaker 1: if you see a ludical US financial headline, please send 316 00:15:01,520 --> 00:15:02,920 Speaker 1: it our way. We would love to check it out 317 00:15:03,080 --> 00:15:05,640 Speaker 1: and maybe feature it on an upcoming episode. But yeah, 318 00:15:05,680 --> 00:15:08,600 Speaker 1: this one was basically touting the fact that everyone can 319 00:15:08,640 --> 00:15:11,680 Speaker 1: become an angel investor these days. But we would say 320 00:15:11,720 --> 00:15:15,040 Speaker 1: that's actually a bad thing. I mean, you, should you 321 00:15:15,040 --> 00:15:18,640 Speaker 1: be investing in companies with massive quote unquote potential? We 322 00:15:18,680 --> 00:15:22,600 Speaker 1: would say no, Right, big time angel investors like Mark 323 00:15:22,800 --> 00:15:25,640 Speaker 1: Entrees and Matt He's been one of the most successful 324 00:15:25,680 --> 00:15:28,040 Speaker 1: angel investors of all time. He knows this very well. 325 00:15:28,400 --> 00:15:30,480 Speaker 1: I've heard him say it that to be a successful 326 00:15:30,520 --> 00:15:33,440 Speaker 1: angel investor, you need the best opportunities and you also 327 00:15:33,480 --> 00:15:37,240 Speaker 1: need to get extremely lucky. Basically, you're investing in three 328 00:15:37,640 --> 00:15:40,880 Speaker 1: companies hoping that three of them are lucky enough to 329 00:15:41,000 --> 00:15:44,280 Speaker 1: just outperform the competition to an incredible degree, and that 330 00:15:44,400 --> 00:15:48,240 Speaker 1: infinitesimally small success ratio makes up for the other investments 331 00:15:48,240 --> 00:15:50,800 Speaker 1: that fall flat on their face. But yeah, risky forms 332 00:15:50,840 --> 00:15:53,080 Speaker 1: of investing seem to be the normal these days. In 333 00:15:53,120 --> 00:15:56,640 Speaker 1: our society, but for our listeners, you should opt out 334 00:15:56,800 --> 00:15:59,000 Speaker 1: of the angel investing arena. This is not something you 335 00:15:59,000 --> 00:16:02,120 Speaker 1: should pursue. The fees are also really high, so that 336 00:16:02,200 --> 00:16:04,320 Speaker 1: you're gonna get eaten alive from that standpoint, and then 337 00:16:04,360 --> 00:16:06,760 Speaker 1: you're also just like hoping on a wish and a prayer. 338 00:16:07,000 --> 00:16:09,680 Speaker 1: And I guarantee you, if it's available to you, it 339 00:16:09,800 --> 00:16:13,960 Speaker 1: is probably not one of the best angel investing possibilities 340 00:16:13,960 --> 00:16:17,040 Speaker 1: out there, assuming you're just one of these casual angel investors, 341 00:16:17,080 --> 00:16:19,560 Speaker 1: you know. I think shows like Shark Tank have put 342 00:16:19,600 --> 00:16:22,480 Speaker 1: angel investor within the vernacular, right, like it's a it's 343 00:16:22,520 --> 00:16:25,080 Speaker 1: part of folks vocabulary now and they think, oh well, 344 00:16:25,120 --> 00:16:27,320 Speaker 1: and like when they're watching it on TV, they think, 345 00:16:27,880 --> 00:16:29,320 Speaker 1: I knew that product was going to be a hit, 346 00:16:29,480 --> 00:16:31,960 Speaker 1: Like you know that their armchair quarterback, and it's only 347 00:16:32,200 --> 00:16:34,480 Speaker 1: had Mark Huban's money, it would be doing the same thing. 348 00:16:34,640 --> 00:16:37,800 Speaker 1: But there's a huge difference between the billions of dollars 349 00:16:37,840 --> 00:16:41,040 Speaker 1: that Mark Cuban has and like the thousands of dollars 350 00:16:41,040 --> 00:16:44,160 Speaker 1: that you have, And just from a diversification standpoint, we 351 00:16:44,240 --> 00:16:47,560 Speaker 1: don't want you to be an angel investor. The New 352 00:16:47,640 --> 00:16:49,840 Speaker 1: York Times they also had this great in depth article 353 00:16:49,880 --> 00:16:52,280 Speaker 1: about crypto and how easy it is now to make 354 00:16:52,320 --> 00:16:56,240 Speaker 1: your own crappy crypto coin. You can launch a token 355 00:16:56,280 --> 00:16:58,120 Speaker 1: for as little as eight bucks these days. I think 356 00:16:58,120 --> 00:17:01,800 Speaker 1: they the writer launched one called Idiot. Just try to 357 00:17:01,800 --> 00:17:05,159 Speaker 1: see who would bite. Yeah, I mean, just investing in 358 00:17:05,280 --> 00:17:08,480 Speaker 1: most of these different crypto idiot coins or attempting to 359 00:17:08,520 --> 00:17:11,480 Speaker 1: become an angel investor with some of your your spare 360 00:17:11,560 --> 00:17:13,800 Speaker 1: cash is likely going to lead to you seeing that 361 00:17:13,800 --> 00:17:16,359 Speaker 1: money disappear. And so if you do really want to 362 00:17:16,400 --> 00:17:18,240 Speaker 1: go this route, just make sure that you aren't investing 363 00:17:18,240 --> 00:17:20,840 Speaker 1: money that you can't afford to lose. UH. First, make 364 00:17:20,840 --> 00:17:24,119 Speaker 1: sure that you're prioritizing socking away just a solid chunk 365 00:17:24,240 --> 00:17:28,400 Speaker 1: into tax advantaged retirement accounts before you even consider these 366 00:17:28,520 --> 00:17:31,439 Speaker 1: these other riskier forms of investing. And then also just 367 00:17:31,480 --> 00:17:34,160 Speaker 1: remember that you can always support UH that startup company 368 00:17:34,200 --> 00:17:36,840 Speaker 1: in other ways, like just buying their product, buying their service. 369 00:17:36,920 --> 00:17:39,160 Speaker 1: Support them that way, and honestly, the amount of money 370 00:17:39,200 --> 00:17:41,600 Speaker 1: that you would put towards that product or that service, 371 00:17:41,840 --> 00:17:43,679 Speaker 1: it's going to be more likely to be in the 372 00:17:43,840 --> 00:17:46,119 Speaker 1: like a healthy relationship to the amount of money that 373 00:17:46,160 --> 00:17:48,800 Speaker 1: you have set aside as you would see somebody like 374 00:17:48,840 --> 00:17:51,600 Speaker 1: Mark Cuban where he's setting aside thousands or hundreds of 375 00:17:51,600 --> 00:17:54,040 Speaker 1: thousands of dollars because that much to him. It might 376 00:17:54,040 --> 00:17:56,199 Speaker 1: be like you going out and you know, buying some 377 00:17:56,240 --> 00:17:59,919 Speaker 1: fancy underwear that somebody's selling, uh through their new startup company. 378 00:18:00,000 --> 00:18:02,879 Speaker 1: I've never bought fancy underwear, but maybe someday, maybe with 379 00:18:02,880 --> 00:18:07,440 Speaker 1: like a special anti Microbia keeps the punk out out. Uh. Yeah. 380 00:18:07,480 --> 00:18:09,760 Speaker 1: I think this sort of angel investing trend. It just 381 00:18:09,800 --> 00:18:12,440 Speaker 1: makes me think just because you like Big Max doesn't 382 00:18:12,480 --> 00:18:14,359 Speaker 1: mean you should invest your money in McDonald's. And just 383 00:18:14,359 --> 00:18:16,840 Speaker 1: because I like shopping at Costco doesn't mean I need 384 00:18:16,880 --> 00:18:18,800 Speaker 1: to go out and put a lot of money where 385 00:18:18,880 --> 00:18:20,600 Speaker 1: my mouth is when it comes to buying Costco stock. 386 00:18:20,840 --> 00:18:24,040 Speaker 1: You can enjoy something or enjoy a product without investing 387 00:18:24,040 --> 00:18:26,040 Speaker 1: in that company. And granted I own a little bit 388 00:18:26,080 --> 00:18:29,240 Speaker 1: of Costco because I own index funds, but it's one 389 00:18:29,280 --> 00:18:31,720 Speaker 1: of those things where I think you want to People 390 00:18:31,760 --> 00:18:33,479 Speaker 1: want to support a company they believe in or they 391 00:18:33,520 --> 00:18:36,320 Speaker 1: think it has a good trajectory, but there are so 392 00:18:36,359 --> 00:18:38,639 Speaker 1: many things you need to know about a company before 393 00:18:38,640 --> 00:18:43,160 Speaker 1: you invest in it. That's why I avoid single stock investing. 394 00:18:43,520 --> 00:18:46,320 Speaker 1: Or investing in you know, one particular company over to 395 00:18:46,359 --> 00:18:49,320 Speaker 1: this one altogether. If you've dedicated your whole life to it, 396 00:18:49,440 --> 00:18:51,879 Speaker 1: somebody like Mark Cuban, it's a different story, right. But 397 00:18:52,240 --> 00:18:54,280 Speaker 1: for most of our listeners who have day jobs and 398 00:18:54,280 --> 00:18:56,320 Speaker 1: stuff like that, let's hit the easy button, go the 399 00:18:56,359 --> 00:19:02,320 Speaker 1: diversified route, and just stay away from this investing space altogether. Yes. Uh. 400 00:19:02,440 --> 00:19:05,840 Speaker 1: In speaking of investing, while Americans collectively they have over 401 00:19:05,880 --> 00:19:09,000 Speaker 1: eighty billion dollars in their hs A accounts, so their 402 00:19:09,040 --> 00:19:13,200 Speaker 1: health savings accounts, they aren't taking full advantage of that benefit. 403 00:19:13,600 --> 00:19:15,600 Speaker 1: And unfortunately, I think it's because it's called a health 404 00:19:15,720 --> 00:19:18,480 Speaker 1: savings account. They make you think, like, mentally, what do 405 00:19:18,480 --> 00:19:20,640 Speaker 1: you picture when you think of a health savings account? 406 00:19:20,800 --> 00:19:22,679 Speaker 1: You think, Oh, I'm gonna put this money into that 407 00:19:22,680 --> 00:19:25,200 Speaker 1: account and I'm gonna save it. It's just gonna sit there. 408 00:19:25,359 --> 00:19:26,880 Speaker 1: But that is not what we want you to do. 409 00:19:27,040 --> 00:19:30,040 Speaker 1: This is a case of bad branding, dude, Totally. It 410 00:19:30,040 --> 00:19:33,920 Speaker 1: should be what HI account, health investing account because only 411 00:19:33,960 --> 00:19:36,760 Speaker 1: seven percent of folks are actually investing the money that 412 00:19:36,800 --> 00:19:39,360 Speaker 1: they put into an hs A that they have available 413 00:19:39,400 --> 00:19:41,679 Speaker 1: to them. And this is according to the Employee Benefit 414 00:19:41,720 --> 00:19:45,159 Speaker 1: Research Institute. And that's understandable because no one you know, 415 00:19:45,280 --> 00:19:48,439 Speaker 1: talks about what a great investing vehicle hs as can be. 416 00:19:48,960 --> 00:19:50,840 Speaker 1: I mean, we talk about it here, but it's not 417 00:19:50,960 --> 00:19:53,440 Speaker 1: often something you hear about. We actually did a deep 418 00:19:53,480 --> 00:19:56,040 Speaker 1: dive back in episode one oh five, So go back 419 00:19:56,040 --> 00:19:58,320 Speaker 1: and check that one out. If you're putting money into 420 00:19:58,359 --> 00:20:01,119 Speaker 1: an hs A and you're not in investing those funds, 421 00:20:01,160 --> 00:20:03,000 Speaker 1: he wants you to use your hs A to its 422 00:20:03,040 --> 00:20:06,439 Speaker 1: full potential. Uh. It really is the best stealth retirement 423 00:20:06,480 --> 00:20:09,680 Speaker 1: account out there. And I've also heard some folks to say, well, 424 00:20:09,800 --> 00:20:12,280 Speaker 1: make sure that you set aside enough in cash to 425 00:20:12,320 --> 00:20:14,960 Speaker 1: be able to at least cover your health deductible but 426 00:20:15,000 --> 00:20:16,760 Speaker 1: even still like you should have enough money in your 427 00:20:16,800 --> 00:20:20,160 Speaker 1: emergency fund to cover any unforeseen health costs. In fact, 428 00:20:20,240 --> 00:20:22,199 Speaker 1: is too you can count on the fact that you're 429 00:20:22,200 --> 00:20:24,080 Speaker 1: probably going to go to the doctor at least once 430 00:20:24,160 --> 00:20:26,160 Speaker 1: or twice during the year, So just set up another 431 00:20:26,200 --> 00:20:29,159 Speaker 1: account within your savings buckets or however you have your 432 00:20:29,160 --> 00:20:32,119 Speaker 1: budget set up, but have an out of pocket medical 433 00:20:32,160 --> 00:20:34,680 Speaker 1: costs category that you can count on when it comes 434 00:20:34,720 --> 00:20:36,880 Speaker 1: to things like deductibles or out of pocket costs. Yeah, 435 00:20:36,920 --> 00:20:40,200 Speaker 1: and that's really because you want to maximize the H 436 00:20:40,320 --> 00:20:42,159 Speaker 1: s A. You want to maximize that account because it 437 00:20:42,280 --> 00:20:45,919 Speaker 1: has so many benefits that, like you said, Matt, kind 438 00:20:45,960 --> 00:20:49,000 Speaker 1: of go unnoticed or they don't get talked about. And 439 00:20:49,040 --> 00:20:50,679 Speaker 1: so yeah, if you do have an H s A 440 00:20:50,760 --> 00:20:53,960 Speaker 1: and you haven't started investing inside of that, go listen 441 00:20:54,000 --> 00:20:56,359 Speaker 1: to episode one oh five because it's gonna gonna be 442 00:20:56,400 --> 00:20:59,600 Speaker 1: really eye opening. I think for how much power that 443 00:20:59,760 --> 00:21:02,600 Speaker 1: HS say holds, it's almost like having a Lamborghini and 444 00:21:02,600 --> 00:21:05,560 Speaker 1: then putting a governor on it to max it out 445 00:21:05,560 --> 00:21:08,760 Speaker 1: the speed at like twenty um there. The H s 446 00:21:08,840 --> 00:21:11,159 Speaker 1: A s are just so much more powerful than the 447 00:21:11,200 --> 00:21:14,040 Speaker 1: way that they're being used by most people these days. Totally, 448 00:21:14,080 --> 00:21:16,120 Speaker 1: all right, let's let's keep moving mat. There was an 449 00:21:16,280 --> 00:21:20,560 Speaker 1: interesting article on Jelopni's website this week about how awful 450 00:21:20,840 --> 00:21:24,040 Speaker 1: car Loans can be and uh sadly actually this article 451 00:21:24,119 --> 00:21:28,840 Speaker 1: was in slideshow formats, which is is that the worst? 452 00:21:28,440 --> 00:21:31,080 Speaker 1: The worst? It's like AutoPlay videos and slideshow format like 453 00:21:31,320 --> 00:21:32,879 Speaker 1: get those out of my face? Please? Can we be 454 00:21:32,920 --> 00:21:35,439 Speaker 1: doing those general pop ups honestly? Now, like the cookie 455 00:21:35,440 --> 00:21:36,960 Speaker 1: pop ups kind of drive me crazy now, like I 456 00:21:37,000 --> 00:21:39,000 Speaker 1: don't care, just like take my info, Like, I know 457 00:21:39,040 --> 00:21:41,080 Speaker 1: that I'm giving up a certain amount of privacy by 458 00:21:41,160 --> 00:21:45,240 Speaker 1: going to the site. Don't interrupt me, right, Yeah, So 459 00:21:45,440 --> 00:21:48,520 Speaker 1: gelot Make detailed actually the gorgous details of the worst 460 00:21:48,520 --> 00:21:51,960 Speaker 1: car loans that their readers have experienced or that they've 461 00:21:51,960 --> 00:21:55,040 Speaker 1: seen friends take on. And it was kind of all 462 00:21:55,040 --> 00:21:57,399 Speaker 1: inducing to see how bad car loans can get. And 463 00:21:57,440 --> 00:21:59,359 Speaker 1: you might be asking, well, what was the worst element 464 00:21:59,400 --> 00:22:02,359 Speaker 1: that many of these car loans had in common? Trading 465 00:22:02,440 --> 00:22:05,280 Speaker 1: in another car that someone was upside down on in 466 00:22:05,359 --> 00:22:08,359 Speaker 1: order to purchase another new vehicle. That was kind of 467 00:22:08,400 --> 00:22:11,200 Speaker 1: the common denominator mat for a lot of these worst 468 00:22:11,200 --> 00:22:14,320 Speaker 1: car loans. You know, some folks actually rolled multiple vehicles, 469 00:22:14,400 --> 00:22:17,240 Speaker 1: like not just one, like two or three with negative 470 00:22:17,240 --> 00:22:20,399 Speaker 1: equity into a new loan on another vehicle, which of 471 00:22:20,440 --> 00:22:24,960 Speaker 1: course landed them not just like um greatly inflated loan amount, 472 00:22:25,000 --> 00:22:28,040 Speaker 1: but also a much much higher interest rate because there's 473 00:22:28,040 --> 00:22:30,000 Speaker 1: a lot more risk to the lender. We're really not 474 00:22:30,040 --> 00:22:31,680 Speaker 1: fans of car loans at all. We'd prefer to see 475 00:22:31,680 --> 00:22:34,880 Speaker 1: our listeners never ever have one, but definitely these kinds 476 00:22:34,880 --> 00:22:37,280 Speaker 1: of loans where you still have a loan on the 477 00:22:37,320 --> 00:22:38,920 Speaker 1: car that you currently own and you're trying to get 478 00:22:38,920 --> 00:22:41,800 Speaker 1: another one and you're rolling it into another loan. That's 479 00:22:41,840 --> 00:22:43,760 Speaker 1: like the worst case scenario. Yeah, that probably goes to 480 00:22:43,760 --> 00:22:46,879 Speaker 1: explain why car loan debt has doubled over the past decade, 481 00:22:46,880 --> 00:22:50,120 Speaker 1: which is an insane stat But one other big pitfall 482 00:22:50,440 --> 00:22:53,440 Speaker 1: was folks buying their vehicle from a buy here, pay 483 00:22:53,480 --> 00:22:56,239 Speaker 1: here a lot. Those are the absolute worst places on 484 00:22:56,280 --> 00:22:59,160 Speaker 1: earth to purchase a vehicle you. Like you mentioned, ideally, 485 00:22:59,480 --> 00:23:02,480 Speaker 1: listeners aren't going to finance their cars at all, and 486 00:23:02,520 --> 00:23:05,119 Speaker 1: you can do that when you have a more affordable vehicle. 487 00:23:05,520 --> 00:23:08,639 Speaker 1: It's it's not too difficult to find something that's reliable 488 00:23:08,880 --> 00:23:11,360 Speaker 1: in the five to ten thousand dollar range, uh, if 489 00:23:11,400 --> 00:23:14,200 Speaker 1: you're able to search diligently. But you know, if you 490 00:23:14,240 --> 00:23:15,600 Speaker 1: are going to take out a loan in order to 491 00:23:15,600 --> 00:23:18,120 Speaker 1: buy a vehicle, make sure that you do shop around 492 00:23:18,160 --> 00:23:21,159 Speaker 1: for that loan with your local credit union kind of 493 00:23:21,160 --> 00:23:23,639 Speaker 1: bring it full circle again. Like we said, oftentimes they 494 00:23:23,680 --> 00:23:26,120 Speaker 1: offer the best rates, and it also might be worth 495 00:23:26,200 --> 00:23:28,880 Speaker 1: checking online lenders as well because those rates are getting 496 00:23:28,880 --> 00:23:31,240 Speaker 1: more competitive. The other thing too, don't extend the loan 497 00:23:31,320 --> 00:23:33,199 Speaker 1: terms in order to buy a more expensive car. If 498 00:23:33,240 --> 00:23:35,920 Speaker 1: you can't afford the monthly payments on a thirty six 499 00:23:35,960 --> 00:23:38,600 Speaker 1: to you know, forty two months loan, then you can't 500 00:23:38,640 --> 00:23:41,040 Speaker 1: afford that vehicle. Look at something a little more affordable. 501 00:23:41,080 --> 00:23:42,439 Speaker 1: And the problem is when people take out an eight 502 00:23:42,480 --> 00:23:44,320 Speaker 1: year loan and then four or five years into it, 503 00:23:44,320 --> 00:23:47,320 Speaker 1: they're like, I want something new or this this this 504 00:23:47,359 --> 00:23:49,320 Speaker 1: car is giving me issues. Now it's time to trade 505 00:23:49,320 --> 00:23:50,920 Speaker 1: it in and get something else, But you still owe 506 00:23:50,960 --> 00:23:53,199 Speaker 1: money on it. That put puts you like behind the 507 00:23:53,200 --> 00:23:54,919 Speaker 1: eight ball in a big way when it comes to 508 00:23:55,200 --> 00:23:58,479 Speaker 1: your finances and the monthly payment you're gonna have on 509 00:23:58,480 --> 00:24:00,879 Speaker 1: that loan as well. By the it is important to 510 00:24:00,880 --> 00:24:04,399 Speaker 1: note that cars are going back to becoming depreciating assets. 511 00:24:04,440 --> 00:24:06,520 Speaker 1: For a hot minute, Matt, basically for the last year 512 00:24:06,600 --> 00:24:09,320 Speaker 1: that the prices of used cars have been going up 513 00:24:09,359 --> 00:24:12,639 Speaker 1: and up, and uh, it appears that that was a 514 00:24:12,680 --> 00:24:16,600 Speaker 1: blip that is now kind of subsiding. The prices of 515 00:24:16,720 --> 00:24:19,360 Speaker 1: used cars aren't going to go back to normal levels overnight, 516 00:24:19,760 --> 00:24:21,320 Speaker 1: but it is a good sign that cars are back 517 00:24:21,359 --> 00:24:23,280 Speaker 1: to being a depreciating asset. That was kind of one 518 00:24:23,320 --> 00:24:25,919 Speaker 1: of those mind blowing things for I don't know, for us, 519 00:24:25,960 --> 00:24:27,800 Speaker 1: I think, and for everybody out there, it's like, how 520 00:24:27,840 --> 00:24:31,360 Speaker 1: in the world are used car prices skyrocketing to this level. Obviously, 521 00:24:31,440 --> 00:24:35,080 Speaker 1: the supply chain issues, the chip issues that are put 522 00:24:35,160 --> 00:24:37,439 Speaker 1: into new cars that are being built. There were so 523 00:24:37,480 --> 00:24:40,600 Speaker 1: many different things impacting this market and driving prices higher. 524 00:24:40,680 --> 00:24:42,480 Speaker 1: But it's good to see that correction kind of starting 525 00:24:42,480 --> 00:24:44,880 Speaker 1: to happen. Yeah. So if you were maybe hanging onto 526 00:24:44,920 --> 00:24:46,439 Speaker 1: a used car thinking that like, hey, if I hang 527 00:24:46,480 --> 00:24:48,680 Speaker 1: onto it for like one more month, maybe I'll see 528 00:24:48,680 --> 00:24:51,560 Speaker 1: its value increase, chances are that is not going to 529 00:24:51,600 --> 00:24:53,439 Speaker 1: be the case. I feel like we're again like at 530 00:24:53,480 --> 00:24:55,040 Speaker 1: the top of a roller coaster and you're we're only 531 00:24:55,040 --> 00:24:57,320 Speaker 1: going to see the prices continue to drop from here. Yeah, 532 00:24:57,359 --> 00:24:59,159 Speaker 1: we're always in favor of you getting rid of one 533 00:24:59,160 --> 00:25:01,840 Speaker 1: of those extra cars that's in your life. So yeah, 534 00:25:01,880 --> 00:25:04,199 Speaker 1: Matt's right, sell now if you if you've gotten next 535 00:25:04,280 --> 00:25:07,280 Speaker 1: one you're hanging onto. Matt. Let's talk about bidding wars 536 00:25:07,280 --> 00:25:09,960 Speaker 1: in the rental market. Is that a thing? It turns 537 00:25:09,960 --> 00:25:12,080 Speaker 1: out it is. It's actually happening. We've seen obviously a 538 00:25:12,119 --> 00:25:14,159 Speaker 1: lot of headlines about bidding wars when it comes to 539 00:25:14,320 --> 00:25:18,320 Speaker 1: buying a house, but it's also happening now in the 540 00:25:18,640 --> 00:25:22,480 Speaker 1: especially single family home rental market. An article in CNBC 541 00:25:22,600 --> 00:25:25,800 Speaker 1: this week reflected exactly what I actually recently saw when 542 00:25:25,800 --> 00:25:28,320 Speaker 1: I listed one of my rental properties for homes in 543 00:25:28,560 --> 00:25:31,240 Speaker 1: some of the hotter areas of the country. Some landlords 544 00:25:31,280 --> 00:25:34,520 Speaker 1: are receiving an abnormally high number of applications, Matt, I 545 00:25:34,560 --> 00:25:38,200 Speaker 1: had nearly forty people reach out in less than forty 546 00:25:38,200 --> 00:25:42,320 Speaker 1: eight hours when I listed my little tiny Atlanta in 547 00:25:42,400 --> 00:25:45,159 Speaker 1: town house recently. And uh, yeah, it turns out that 548 00:25:45,440 --> 00:25:47,920 Speaker 1: high demand is increasing the average price of rent to 549 00:25:48,320 --> 00:25:51,320 Speaker 1: at a pace of almost seven were cent annually. First 550 00:25:51,400 --> 00:25:54,760 Speaker 1: rent price increases last year, and it's even leading to 551 00:25:54,920 --> 00:25:57,320 Speaker 1: bidding wars for some of these properties. Right, So if 552 00:25:57,320 --> 00:26:00,000 Speaker 1: you're a renter, it's important to know that prices are 553 00:26:00,080 --> 00:26:04,520 Speaker 1: going up, that it's a competitive environment in certain locations, 554 00:26:04,840 --> 00:26:08,640 Speaker 1: and that could affect your ability to find affordable housing. Yeah, 555 00:26:08,680 --> 00:26:10,960 Speaker 1: and hopefully you're several months away from having to find 556 00:26:10,960 --> 00:26:14,000 Speaker 1: a new place, because that should give you enough time 557 00:26:14,080 --> 00:26:16,440 Speaker 1: to turn your credit score around if maybe it's in 558 00:26:16,480 --> 00:26:18,160 Speaker 1: the dumps. You want to make sure that your credit 559 00:26:18,160 --> 00:26:21,080 Speaker 1: score is in a good spot, typically at least seven forty, 560 00:26:21,119 --> 00:26:23,280 Speaker 1: if not a bit higher, because This is something that 561 00:26:23,359 --> 00:26:26,040 Speaker 1: laylords are going to be looking at pretty closely. They're 562 00:26:26,080 --> 00:26:27,840 Speaker 1: gonna want to see how responsible you are with your 563 00:26:27,840 --> 00:26:30,399 Speaker 1: payments pretty closely. If there's a you know, such a 564 00:26:30,480 --> 00:26:34,200 Speaker 1: large pool of applicants, and another sort of tactic, if 565 00:26:34,200 --> 00:26:36,359 Speaker 1: you have enough cash on hand, even consider offering to 566 00:26:36,400 --> 00:26:40,720 Speaker 1: put down a larger security deposit. Just essentially, anything you 567 00:26:40,720 --> 00:26:43,040 Speaker 1: can do to stand out and make yourself a more 568 00:26:43,080 --> 00:26:46,879 Speaker 1: attractive tenant can help good communication, that's always a plus, 569 00:26:47,160 --> 00:26:49,200 Speaker 1: But you might even need to get a little more creative, 570 00:26:49,440 --> 00:26:51,840 Speaker 1: like offering to take care of the lawn. If the 571 00:26:52,119 --> 00:26:55,159 Speaker 1: laylord says, hey, you know, you know outside lawn maintenance 572 00:26:55,200 --> 00:26:57,600 Speaker 1: that's included, just like, well, hey, what if I take 573 00:26:57,600 --> 00:26:59,160 Speaker 1: care of that for you? You don't have to worry 574 00:26:59,160 --> 00:27:01,600 Speaker 1: about it. Look ways to kind of sweeten the deal 575 00:27:02,040 --> 00:27:04,679 Speaker 1: for the landlord to what to pick you over the 576 00:27:04,720 --> 00:27:07,440 Speaker 1: other thirty nine people who are applying for that same house. Yeah, 577 00:27:07,440 --> 00:27:09,679 Speaker 1: and depending on where you live, you're gonna know, you're 578 00:27:09,720 --> 00:27:11,800 Speaker 1: gonna know, you're gonna see you can you can look 579 00:27:11,800 --> 00:27:13,600 Speaker 1: on Zillo and see like how many hits some of 580 00:27:13,600 --> 00:27:15,960 Speaker 1: these properties are getting, and it's like they've got the 581 00:27:15,960 --> 00:27:19,600 Speaker 1: little yeah popularity chart built into it, so it's like, okay, cool, 582 00:27:19,600 --> 00:27:21,760 Speaker 1: if this is a popular spot or you know if 583 00:27:21,880 --> 00:27:24,040 Speaker 1: if the if it's priced, well you've gotta be ready 584 00:27:24,080 --> 00:27:27,840 Speaker 1: to move. And it's funny, Matt like here, I always 585 00:27:27,840 --> 00:27:30,200 Speaker 1: tell people this. I'm not trying to pressure them to 586 00:27:30,200 --> 00:27:31,800 Speaker 1: to sign on the spot or anything like that, but 587 00:27:31,840 --> 00:27:34,000 Speaker 1: I'm like, they're like, well, I'll get back to you 588 00:27:34,000 --> 00:27:35,480 Speaker 1: in a couple of days, and I'm like, Okay, they're 589 00:27:35,520 --> 00:27:37,560 Speaker 1: gonna be there, and I'm just letting you know, like 590 00:27:38,080 --> 00:27:42,600 Speaker 1: somebody usually asks to apply, uh, and that process moves 591 00:27:42,640 --> 00:27:45,160 Speaker 1: quickly and they're usually ready to sign by that day 592 00:27:45,200 --> 00:27:46,840 Speaker 1: or the next day. So um, it's just one of 593 00:27:46,920 --> 00:27:48,760 Speaker 1: those things too where you have to know what you 594 00:27:48,800 --> 00:27:50,920 Speaker 1: want and you have to be willing to kind of 595 00:27:51,040 --> 00:27:53,159 Speaker 1: jump on it, to pounce when the right you know, 596 00:27:53,240 --> 00:27:55,639 Speaker 1: rental house comes along that you want to stay in. 597 00:27:55,760 --> 00:27:58,480 Speaker 1: So all right, that's gonna do it for this episode 598 00:27:58,520 --> 00:28:00,720 Speaker 1: for folks who want the show not for this episode 599 00:28:00,760 --> 00:28:03,639 Speaker 1: links to some of the articles that we mentioned on 600 00:28:03,640 --> 00:28:05,560 Speaker 1: this Friday flight, you can go to our website at 601 00:28:05,600 --> 00:28:07,600 Speaker 1: how to money dot com. That's right. We hope everyone 602 00:28:07,680 --> 00:28:10,360 Speaker 1: has a fantastic weekend. We will see you back here 603 00:28:10,400 --> 00:28:13,080 Speaker 1: on Monday with that interview with Lauren Williams and Joel 604 00:28:13,280 --> 00:28:16,160 Speaker 1: Until next time, Best friends Out, Best Friends Out,