1 00:00:00,040 --> 00:00:02,840 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,080 --> 00:00:07,520 Speaker 1: and today we're discussing dirt, cheap groceries, worthless warranties, and 3 00:00:08,000 --> 00:00:32,279 Speaker 1: paused payments. Paused payments. From the inflection that we're using here, 4 00:00:32,360 --> 00:00:34,920 Speaker 1: it's kind of like Ron Burgery there. We are asking 5 00:00:34,920 --> 00:00:36,760 Speaker 1: the question and you might be thinking, yeah, we are 6 00:00:36,800 --> 00:00:42,199 Speaker 1: gonna student loans, like you might be suspecting that we are. 7 00:00:42,320 --> 00:00:44,280 Speaker 1: But we've got several stories that we're gonna get to. 8 00:00:44,360 --> 00:00:46,840 Speaker 1: We're we're just going gonna go through all the ones 9 00:00:46,880 --> 00:00:49,560 Speaker 1: that matter the most to you. And so that's why 10 00:00:49,640 --> 00:00:53,360 Speaker 1: you're listening to our Friday flight today. But Joel, real quick, 11 00:00:53,360 --> 00:00:56,280 Speaker 1: I wanted to share something with you. In the past, 12 00:00:56,320 --> 00:00:59,600 Speaker 1: I've hated on Costco a little bit. We actually we 13 00:00:59,640 --> 00:01:02,640 Speaker 1: didn't go unnoticed. We recorded an entire fire listeners or 14 00:01:02,640 --> 00:01:05,640 Speaker 1: by me, sir, where we're doing like an Aldi versus Costco, 15 00:01:05,720 --> 00:01:09,520 Speaker 1: because at that point in life, I was on Aldi. 16 00:01:09,920 --> 00:01:12,080 Speaker 1: And that being said, if there was an Aldi really 17 00:01:12,080 --> 00:01:14,920 Speaker 1: close to us, I think we'd be like nine Aldi uh, 18 00:01:15,480 --> 00:01:19,040 Speaker 1: because of all the aforementioned reasons in that one episode. 19 00:01:19,440 --> 00:01:21,720 Speaker 1: But the fact is we do not have an Aldi 20 00:01:21,840 --> 00:01:24,919 Speaker 1: near nearby. Where we live now, which means we're spending 21 00:01:24,959 --> 00:01:28,319 Speaker 1: a lot more time at Costco. Now you're like literally 22 00:01:28,319 --> 00:01:30,520 Speaker 1: in between in Aldi and a Costco, right, each one 23 00:01:30,600 --> 00:01:33,679 Speaker 1: is seven or eight minutes away exactly on the hyper 24 00:01:33,760 --> 00:01:36,959 Speaker 1: biking convenient necessarily exactly. Yeah, And so because that we 25 00:01:37,040 --> 00:01:39,280 Speaker 1: are kind of, you know, walking through the aisles and 26 00:01:39,319 --> 00:01:43,080 Speaker 1: the Costco seeing all the interesting things actually as well, right, 27 00:01:43,080 --> 00:01:45,000 Speaker 1: because at Aldi they kind of have more of like 28 00:01:45,080 --> 00:01:47,920 Speaker 1: the basic staples, which is how we've done it for 29 00:01:47,960 --> 00:01:50,320 Speaker 1: the longest time. It's allowed us to keep our grocery 30 00:01:50,360 --> 00:01:55,040 Speaker 1: bills low. But Costco has got like the surprise, delightful products. 31 00:01:56,400 --> 00:01:59,280 Speaker 1: And we were there recently and they've got this Japanese 32 00:01:59,320 --> 00:02:02,480 Speaker 1: barbecue saw us. They had it out and we sampled it, 33 00:02:02,880 --> 00:02:05,320 Speaker 1: and we literally went back because you know, you just 34 00:02:05,360 --> 00:02:06,760 Speaker 1: get the samples and you kind of move on with 35 00:02:06,760 --> 00:02:08,560 Speaker 1: your shopping. Typically, I'm thinking of it as free food. 36 00:02:09,200 --> 00:02:11,680 Speaker 1: It's like a little perk for being a Costco, Like, oh, 37 00:02:11,720 --> 00:02:14,040 Speaker 1: you can find it over there, like cool, thanks, Yeah, 38 00:02:14,120 --> 00:02:16,399 Speaker 1: I'll have to think about that. We literally went back 39 00:02:16,400 --> 00:02:19,720 Speaker 1: and picked the stuff up because it was so stinking good. Uh, Like, honestly, 40 00:02:19,760 --> 00:02:22,200 Speaker 1: I think it's like a combination of barbecue sauce and 41 00:02:22,200 --> 00:02:24,919 Speaker 1: soy sauce. It's got some like ginger or some other 42 00:02:24,960 --> 00:02:27,600 Speaker 1: stuff in it. But it made me think back because 43 00:02:27,800 --> 00:02:29,840 Speaker 1: when we first moved up to here, like I had 44 00:02:29,840 --> 00:02:32,320 Speaker 1: asked you some of your favorite Costco products or something 45 00:02:32,360 --> 00:02:34,280 Speaker 1: like that, and I'm totally going to mention this as 46 00:02:34,320 --> 00:02:37,760 Speaker 1: one of like my new number one picks or whatever 47 00:02:37,840 --> 00:02:41,360 Speaker 1: at Costco because we normally are very kind of bare bones, 48 00:02:42,160 --> 00:02:43,800 Speaker 1: like we buy a block of cheese, you know, like 49 00:02:43,840 --> 00:02:47,440 Speaker 1: we get basic plane Jane items normally. But now that 50 00:02:47,480 --> 00:02:49,600 Speaker 1: we're going to Costco, we're being tempted a little bit 51 00:02:49,680 --> 00:02:52,360 Speaker 1: and we're getting like, like this premium product. This isn't 52 00:02:52,400 --> 00:02:54,440 Speaker 1: something that you would normally. Yeah, we're gett a little 53 00:02:54,440 --> 00:02:56,600 Speaker 1: bit fancy. It's it's a bottle of sauce, though, you know, 54 00:02:57,080 --> 00:02:59,320 Speaker 1: and I did look it up. It's like the price 55 00:02:59,360 --> 00:03:01,560 Speaker 1: that they're selling it or at Costco's like half the 56 00:03:01,600 --> 00:03:04,640 Speaker 1: cost that you can buy it anywhere else parounds, I'm sure. 57 00:03:05,560 --> 00:03:08,320 Speaker 1: But I'm making this recommendation because it's a delightful product 58 00:03:08,480 --> 00:03:11,200 Speaker 1: and it's got this cute little Japanese looking octopus on 59 00:03:11,240 --> 00:03:13,960 Speaker 1: the front of it, well, and so much depends store 60 00:03:14,000 --> 00:03:16,560 Speaker 1: to store the product that Costco carries. It can vary 61 00:03:16,600 --> 00:03:19,320 Speaker 1: like some some so yeah, so some stores might have 62 00:03:19,840 --> 00:03:21,840 Speaker 1: like our our Costco doesn't have a great beer selection, 63 00:03:22,040 --> 00:03:24,440 Speaker 1: but some Costcos, like my friend in California says, no, 64 00:03:24,520 --> 00:03:26,160 Speaker 1: they carry some good stuff. You can get a case 65 00:03:26,200 --> 00:03:30,120 Speaker 1: of great beer in Costco. But so you know, some places, 66 00:03:30,440 --> 00:03:32,960 Speaker 1: some folks might have this Japanese barbecue sauce, other's if 67 00:03:33,000 --> 00:03:34,760 Speaker 1: that's more of an alcohol thing as well. Yeah, And 68 00:03:35,160 --> 00:03:37,200 Speaker 1: one of the thing I wanted to say piggybacking on 69 00:03:37,240 --> 00:03:40,280 Speaker 1: that mat is that, yeah, there are all sorts of interesting, 70 00:03:40,720 --> 00:03:43,040 Speaker 1: unique products. The Costco buying team does a great job 71 00:03:43,080 --> 00:03:46,680 Speaker 1: on that front, and they're often way cheaper than you 72 00:03:46,720 --> 00:03:49,960 Speaker 1: can get them anywhere else because of Costco's philosophy and 73 00:03:50,080 --> 00:03:53,440 Speaker 1: how they price products. But Kirkland Signature products is something 74 00:03:53,440 --> 00:03:56,160 Speaker 1: we've talked about before. There was this really fascinating article 75 00:03:56,240 --> 00:03:59,120 Speaker 1: last week I think it wasn't seeing in business about 76 00:03:59,440 --> 00:04:02,440 Speaker 1: how Kirkland Signature came to be. And a lot of 77 00:04:02,480 --> 00:04:04,360 Speaker 1: a lot of different stores have a bunch of different 78 00:04:04,360 --> 00:04:10,200 Speaker 1: private labels. Costco has one, and the impetus behind Costco 79 00:04:10,240 --> 00:04:12,760 Speaker 1: and how they do Kirkland signature, so much of it 80 00:04:12,880 --> 00:04:16,560 Speaker 1: is about higher quality. So oftentimes, at least years ago, 81 00:04:16,680 --> 00:04:19,520 Speaker 1: this has become less the case store brands were we're 82 00:04:19,520 --> 00:04:21,239 Speaker 1: actually gonna talk about this in a second store brands 83 00:04:21,279 --> 00:04:23,640 Speaker 1: used to be kind of inferior most of the time. 84 00:04:23,920 --> 00:04:26,200 Speaker 1: That's no longer the case. That's especially not the case 85 00:04:26,440 --> 00:04:29,279 Speaker 1: at Costco. Those Kirkland signatures sometimes they're better than the 86 00:04:29,360 --> 00:04:31,360 Speaker 1: name brand, at least at least in my opinion, and 87 00:04:31,360 --> 00:04:32,720 Speaker 1: I think in a lot of other people. All that 88 00:04:32,800 --> 00:04:34,880 Speaker 1: to say, I'm a little worried now that I'm being 89 00:04:34,920 --> 00:04:40,120 Speaker 1: inundated with all of these premium luxury grocery item by Costco, 90 00:04:40,440 --> 00:04:43,280 Speaker 1: that we're gonna see our grocery budget wrecked. But for now, 91 00:04:43,279 --> 00:04:45,280 Speaker 1: at least, if you see the Japanese barbecue sauce, it's 92 00:04:45,400 --> 00:04:48,480 Speaker 1: definitely something maybe worth checking out. But let's let's keep 93 00:04:48,480 --> 00:04:50,359 Speaker 1: moving man. We uh yeah, we are going to go 94 00:04:50,440 --> 00:04:51,960 Speaker 1: through some of the same thing of stories that we 95 00:04:52,000 --> 00:04:54,719 Speaker 1: found this week that we thought would be most relevant 96 00:04:54,839 --> 00:04:57,920 Speaker 1: to listeners out there. And Joel, this first one's a 97 00:04:57,960 --> 00:05:00,600 Speaker 1: frugul or cheap Okay, well, the it's a story, so 98 00:05:00,720 --> 00:05:02,960 Speaker 1: this isn't just kind of a question they're asking each other, 99 00:05:03,320 --> 00:05:07,080 Speaker 1: would you buy used workout clothes? Reason we're asking that 100 00:05:07,160 --> 00:05:08,839 Speaker 1: is because of the Journal had an article about that 101 00:05:08,880 --> 00:05:12,680 Speaker 1: this week. More folks are opting to purchase, for instance, 102 00:05:12,839 --> 00:05:15,400 Speaker 1: Lulu Lemon yoga pants, but the used variety. But the 103 00:05:15,480 --> 00:05:18,760 Speaker 1: users they've got like an entire site dedicated it's it's like, um, 104 00:05:18,760 --> 00:05:20,760 Speaker 1: I forget what it's called, like like new or something 105 00:05:20,800 --> 00:05:24,080 Speaker 1: like that, but it's a subsite within the Lululemon website 106 00:05:24,279 --> 00:05:28,000 Speaker 1: where they're only selling stuff that's like new. What are 107 00:05:28,040 --> 00:05:29,880 Speaker 1: your thoughts on that? I don't know. I'm initially repulsed 108 00:05:29,920 --> 00:05:33,600 Speaker 1: by the idea of wearing someone else's used workout gear, 109 00:05:33,720 --> 00:05:37,160 Speaker 1: Like really, well, you you sweat at least when I 110 00:05:37,200 --> 00:05:39,080 Speaker 1: work out, which is, you know, not as often as 111 00:05:39,120 --> 00:05:40,880 Speaker 1: I like it to be. I sweat like a monster, 112 00:05:41,080 --> 00:05:44,800 Speaker 1: and I can't imagine somebody else sweating on this thing 113 00:05:44,880 --> 00:05:47,680 Speaker 1: for six months or a year and then maybe I'm like, oh, well, 114 00:05:47,720 --> 00:05:50,119 Speaker 1: I'll buy that shirt. It's it's so different than buying 115 00:05:50,160 --> 00:05:52,600 Speaker 1: a T shirt. I'm all about thrift stores and buying 116 00:05:52,680 --> 00:05:54,440 Speaker 1: T shirts there when I don't see it being all 117 00:05:54,480 --> 00:05:56,960 Speaker 1: that different. It's so different. So yes, you do sweat, 118 00:05:56,960 --> 00:05:58,560 Speaker 1: but it's like it's like the underwear section and the 119 00:05:58,560 --> 00:06:01,080 Speaker 1: thrift store, like, who does that's one step further right, 120 00:06:01,200 --> 00:06:03,360 Speaker 1: It's it's closer to that than it is too regular clothe. 121 00:06:03,440 --> 00:06:07,080 Speaker 1: Here's at least with the Lululemon use like most of 122 00:06:07,080 --> 00:06:09,560 Speaker 1: the stuff they're selling our pants, they're like pants and shorts, 123 00:06:09,600 --> 00:06:11,840 Speaker 1: and in that case you literally have a layer between 124 00:06:11,880 --> 00:06:13,839 Speaker 1: your skin for the most part, your between your skin 125 00:06:14,279 --> 00:06:16,560 Speaker 1: and the item of clothing. And so shirts, I could 126 00:06:16,560 --> 00:06:19,520 Speaker 1: see how buying a used workout shirt might feel a 127 00:06:19,560 --> 00:06:22,080 Speaker 1: little uh, like they talked about in the article, there's 128 00:06:22,120 --> 00:06:24,160 Speaker 1: not really there's a layer for us the call a 129 00:06:24,279 --> 00:06:26,000 Speaker 1: portion of the pants, called a lot of that pants 130 00:06:26,000 --> 00:06:28,080 Speaker 1: are directly attached to your leg. Homie, oh bit, I 131 00:06:28,120 --> 00:06:31,400 Speaker 1: would I have zero hesitation about. I sort of get 132 00:06:31,440 --> 00:06:33,880 Speaker 1: it with a shirt because it's it truly is getting 133 00:06:33,920 --> 00:06:36,160 Speaker 1: soaked in sweat. But even still, as long as it's 134 00:06:36,200 --> 00:06:39,280 Speaker 1: being like, it's less about the what they talked about 135 00:06:39,279 --> 00:06:41,479 Speaker 1: this article, they called it the ick factor. It's less 136 00:06:41,480 --> 00:06:43,800 Speaker 1: about that in my mind, and it's more about how 137 00:06:44,000 --> 00:06:46,240 Speaker 1: well was it cared for, Because if it's really worn out, 138 00:06:46,279 --> 00:06:49,160 Speaker 1: then it's gonna look pretty shabby. But that's also going 139 00:06:49,200 --> 00:06:51,680 Speaker 1: to give you the most opportunity for for savings. And 140 00:06:51,760 --> 00:06:54,320 Speaker 1: i know Lululemon makes nice stuff, and I'm not sure 141 00:06:54,320 --> 00:06:55,880 Speaker 1: if it's worth the price or not because I've never 142 00:06:55,920 --> 00:06:59,039 Speaker 1: owned any other clothing. But my guesses you can get 143 00:06:59,800 --> 00:07:03,320 Speaker 1: like for less money something that's new of comparable make 144 00:07:03,360 --> 00:07:07,200 Speaker 1: in quality that is just a different name brand. You know. Um, 145 00:07:07,240 --> 00:07:09,880 Speaker 1: maybe not, but that's where I would I would choose 146 00:07:09,960 --> 00:07:13,160 Speaker 1: rather to go get my workout clothing at Target or 147 00:07:13,200 --> 00:07:16,720 Speaker 1: something like that instead of getting used Lululemon stuff. Yeah, 148 00:07:16,880 --> 00:07:19,160 Speaker 1: this is kind of like a quality over quantity kind 149 00:07:19,200 --> 00:07:21,600 Speaker 1: of question, and that's sort of a topic that we've 150 00:07:21,640 --> 00:07:25,960 Speaker 1: been talking about more recently, quality over factors. Yeah, so 151 00:07:26,400 --> 00:07:28,600 Speaker 1: we'll end up talking more about this in the future. Yeah, alright, 152 00:07:28,720 --> 00:07:30,720 Speaker 1: let's let's move on. Let's talk about inflation for a secondment, 153 00:07:30,760 --> 00:07:34,120 Speaker 1: and food inflation in particular, because it's it's still a 154 00:07:34,160 --> 00:07:37,360 Speaker 1: real problem that every US consumer is facing. You just 155 00:07:37,400 --> 00:07:40,400 Speaker 1: alluded to that, like your your home budget for groceries 156 00:07:40,480 --> 00:07:42,640 Speaker 1: is likely going up. I'm curious to hear kind of 157 00:07:42,680 --> 00:07:44,520 Speaker 1: how the chicks out over the next you know, quarter, 158 00:07:44,640 --> 00:07:46,720 Speaker 1: or even how it's chicken out so far this year. 159 00:07:46,720 --> 00:07:49,240 Speaker 1: Maybe share with us the number so cost code isn't 160 00:07:49,280 --> 00:07:51,720 Speaker 1: gonna end up saving us money, ends up costing us 161 00:07:51,720 --> 00:07:55,560 Speaker 1: more money because now we're buying Mlayan salt, but it 162 00:07:55,640 --> 00:07:57,960 Speaker 1: might make your life more enjoyable. Um. But let's drill 163 00:07:58,000 --> 00:08:00,920 Speaker 1: down on on this one specific segment of the CPI, 164 00:08:01,040 --> 00:08:04,120 Speaker 1: the Consumer Price Index, for a second, because it turns 165 00:08:04,120 --> 00:08:06,640 Speaker 1: out the cost of eating out is going up less 166 00:08:06,680 --> 00:08:09,760 Speaker 1: quickly than the cost of groceries. So I'm talking about 167 00:08:09,760 --> 00:08:11,520 Speaker 1: eating at home of course, when you're talking about groceries, 168 00:08:11,680 --> 00:08:15,720 Speaker 1: and the Labor Department numbers revealed that groceries are thirteen 169 00:08:15,760 --> 00:08:18,040 Speaker 1: point one percent more expensive than they were a year ago, 170 00:08:18,360 --> 00:08:21,400 Speaker 1: but the restaurant prices have increased only seven point six 171 00:08:21,440 --> 00:08:25,240 Speaker 1: percent year over year, and more restaurants are are are 172 00:08:25,280 --> 00:08:28,800 Speaker 1: starting to use these inflation stats in their marketing, encouraging 173 00:08:28,880 --> 00:08:31,720 Speaker 1: us to get out there and save money by hitting 174 00:08:31,760 --> 00:08:35,640 Speaker 1: up their restaurants. So it begs the question, Matt, should 175 00:08:35,640 --> 00:08:38,320 Speaker 1: we be eating more of our meals out because of 176 00:08:38,320 --> 00:08:42,520 Speaker 1: of this reality that inflation is impacting eating out prices 177 00:08:42,679 --> 00:08:45,080 Speaker 1: less than it's impacting the price of eating at It 178 00:08:45,120 --> 00:08:49,080 Speaker 1: was like a marketing campaign for lazy people. Yeah, basically, 179 00:08:49,080 --> 00:08:50,839 Speaker 1: we would say, what this is a marketing trap. And 180 00:08:51,559 --> 00:08:55,080 Speaker 1: it's obviously still more expensive. Even though it's the numbers 181 00:08:55,080 --> 00:08:57,079 Speaker 1: have gone up more on groceries that you buy, you're 182 00:08:57,080 --> 00:08:58,719 Speaker 1: gonna say more by cooking your own meals. It's not 183 00:08:58,760 --> 00:09:00,200 Speaker 1: that you should never go out to eat. It's just 184 00:09:00,240 --> 00:09:02,640 Speaker 1: that don't don't fall prey to the person who's like, 185 00:09:02,800 --> 00:09:04,760 Speaker 1: see it's cheaper to grow feet now, and it's like, no, 186 00:09:05,000 --> 00:09:06,560 Speaker 1: that's not really how it works. Yeah, you can do 187 00:09:06,640 --> 00:09:08,120 Speaker 1: the thing, but just do it for the right reasons. 188 00:09:08,400 --> 00:09:10,319 Speaker 1: Don't do it thinking that, oh, this is going to 189 00:09:10,400 --> 00:09:13,199 Speaker 1: be better for my walls, my money savvy move. Not 190 00:09:13,280 --> 00:09:15,600 Speaker 1: the case in the restaurants every night, all right. Actually, 191 00:09:15,720 --> 00:09:18,720 Speaker 1: speaking of groceries, we always talk about how where it 192 00:09:18,800 --> 00:09:21,679 Speaker 1: is that you shot makes the biggest difference. Uh. Specifically Aldi. 193 00:09:21,760 --> 00:09:24,400 Speaker 1: We talked about Aldi and Leedle. Those two, specifically are 194 00:09:24,400 --> 00:09:27,199 Speaker 1: two of our our favorite everyday low cost spots. Costco 195 00:09:27,320 --> 00:09:29,640 Speaker 1: might make it into the lineup. We'll see how things 196 00:09:29,800 --> 00:09:32,520 Speaker 1: shake out. But they're selling probation for you, right, but 197 00:09:32,679 --> 00:09:35,800 Speaker 1: they are I'm a little suspicious of how things are 198 00:09:35,800 --> 00:09:39,760 Speaker 1: gonna end up. Well, there's another competitor worth considering, uh, 199 00:09:39,760 --> 00:09:42,400 Speaker 1: and that is something that we've rarely talked about here 200 00:09:42,440 --> 00:09:46,240 Speaker 1: on the show, which are salvage grocery stores. The Times 201 00:09:46,240 --> 00:09:48,960 Speaker 1: just had an article about those types of stores, and 202 00:09:49,240 --> 00:09:51,959 Speaker 1: you know, it might just be your best bet because 203 00:09:51,960 --> 00:09:54,600 Speaker 1: some of the foods carried in these stores, uh, they 204 00:09:54,600 --> 00:09:57,600 Speaker 1: are just outside of their sell by or their best 205 00:09:57,640 --> 00:10:00,320 Speaker 1: buy dates, but that doesn't mean that you can't eat them. 206 00:10:00,480 --> 00:10:02,440 Speaker 1: And there are also going to be random items that 207 00:10:02,440 --> 00:10:05,920 Speaker 1: were just considered unsellable by traditional grocery stores. There might 208 00:10:05,920 --> 00:10:08,400 Speaker 1: be a box that got ripped open, or like a 209 00:10:09,520 --> 00:10:11,559 Speaker 1: set of labels that were discolored, or some sort of 210 00:10:11,600 --> 00:10:14,480 Speaker 1: printed oddly new kinds of oreos with an odd flavor 211 00:10:14,520 --> 00:10:16,559 Speaker 1: that didn't really sound like the Christmas oreos. There's like 212 00:10:16,600 --> 00:10:19,600 Speaker 1: they're still sitting there, let's give them to the salvage store. Exactly. Yeah, 213 00:10:19,600 --> 00:10:23,800 Speaker 1: it's September, it's August, and well we're eating the Halloween 214 00:10:23,800 --> 00:10:25,960 Speaker 1: oreos from last year. Hey, just hang on to those, 215 00:10:26,000 --> 00:10:28,440 Speaker 1: and exactly, they're still good to go for Halloween this year. 216 00:10:28,480 --> 00:10:30,520 Speaker 1: I think those pumpkins by Slot tapes are back already, Matt. 217 00:10:30,760 --> 00:10:32,520 Speaker 1: So we mentioned this because if you're feeling the pinch 218 00:10:32,760 --> 00:10:35,439 Speaker 1: of higher grocery prices, you might want to check out 219 00:10:35,520 --> 00:10:38,120 Speaker 1: your nearest salvage grocery store. And the best way to 220 00:10:38,120 --> 00:10:41,640 Speaker 1: find the closest one to wherever you are is this 221 00:10:41,720 --> 00:10:45,439 Speaker 1: great site. It's by salvage food dot Com. Will make 222 00:10:45,440 --> 00:10:48,320 Speaker 1: sure to link to this awesome site in the show notes. 223 00:10:48,360 --> 00:10:50,719 Speaker 1: But they've got this search feature where it's got the 224 00:10:50,800 --> 00:10:53,040 Speaker 1: entire United States. You click on your state and it 225 00:10:53,120 --> 00:10:55,840 Speaker 1: shows you all the different locations within your state where 226 00:10:55,880 --> 00:10:58,120 Speaker 1: it is that you can buy discounted food. I found 227 00:10:58,160 --> 00:11:00,760 Speaker 1: that there's one just fifteen minutes north of where we Yeah, 228 00:11:00,880 --> 00:11:02,559 Speaker 1: I want to go check it out. I used to 229 00:11:02,600 --> 00:11:04,800 Speaker 1: go to one in college in Greenville, South Carolina for 230 00:11:04,880 --> 00:11:07,560 Speaker 1: a couple of years and it, I mean, it's a 231 00:11:07,559 --> 00:11:09,920 Speaker 1: different experience, but you can save a ton of money 232 00:11:10,160 --> 00:11:13,439 Speaker 1: and some not all salvage grocery stores are created equal. 233 00:11:13,559 --> 00:11:15,560 Speaker 1: So you're gonna want to check out the one, one 234 00:11:15,640 --> 00:11:17,240 Speaker 1: or two closest to you to kind of see what 235 00:11:17,400 --> 00:11:19,200 Speaker 1: was it work in my life and how much money 236 00:11:19,200 --> 00:11:22,080 Speaker 1: can I save? But the reality is the savings can 237 00:11:22,160 --> 00:11:25,160 Speaker 1: be substantial. Yeah, you're most likely always gonna save money, 238 00:11:25,160 --> 00:11:27,480 Speaker 1: but what can you get there? Is it going to 239 00:11:27,800 --> 00:11:29,680 Speaker 1: Are you gonna be able to do the majority of 240 00:11:29,880 --> 00:11:32,160 Speaker 1: shopping there, that's the question. Some of these sometimes they 241 00:11:32,160 --> 00:11:34,480 Speaker 1: don't have the you know, they don't have the most variety, 242 00:11:34,480 --> 00:11:37,000 Speaker 1: they don't have the typical things that you're eating in 243 00:11:37,000 --> 00:11:39,240 Speaker 1: the day to day. Though some of them do look 244 00:11:39,280 --> 00:11:41,440 Speaker 1: a lot more like traditional grocery stores that you expect 245 00:11:41,440 --> 00:11:43,880 Speaker 1: with like fresh produce and stuff like that. So it's 246 00:11:43,920 --> 00:11:45,840 Speaker 1: worth kind of taking a look around and seeing what 247 00:11:45,920 --> 00:11:48,080 Speaker 1: your community has. Yeah and speaking Okay, so it makes 248 00:11:48,080 --> 00:11:49,800 Speaker 1: me think, So I used to go to this one 249 00:11:50,280 --> 00:11:52,160 Speaker 1: right after college. It wasn't making a ton of money. 250 00:11:52,440 --> 00:11:55,040 Speaker 1: That was when I was living in North Carolina. And 251 00:11:55,440 --> 00:11:57,959 Speaker 1: the variety of foods that it can introduce you to 252 00:11:58,240 --> 00:12:00,480 Speaker 1: is also really cool, right, And so in takeular, this 253 00:12:00,520 --> 00:12:04,360 Speaker 1: store always had smoke guda and tons of it, and 254 00:12:04,440 --> 00:12:06,960 Speaker 1: so they were selling it for so cheap. And you 255 00:12:06,960 --> 00:12:09,440 Speaker 1: know what, I've never had smoke gooda before in my life. 256 00:12:09,600 --> 00:12:12,200 Speaker 1: Maybe I didn't grow up eating fancy cheeses, you know. 257 00:12:12,760 --> 00:12:14,560 Speaker 1: But I was introduced toy smoke guda because I was 258 00:12:14,559 --> 00:12:16,640 Speaker 1: sitting there and it was like fifty cents for a 259 00:12:16,640 --> 00:12:18,760 Speaker 1: block of it or something. I'm and I'm thinking, well, 260 00:12:18,840 --> 00:12:21,480 Speaker 1: thanks straight, I'm gonna try some smoke gouda. But now 261 00:12:21,760 --> 00:12:24,240 Speaker 1: I enjoy smoked good and before that I had never 262 00:12:24,320 --> 00:12:26,800 Speaker 1: been introduced to that before. And so what I'm saying 263 00:12:26,960 --> 00:12:31,240 Speaker 1: is that there's the ability for some new culinary discoveries. Uh, 264 00:12:31,240 --> 00:12:33,079 Speaker 1: and that might add some some value to your like 265 00:12:33,400 --> 00:12:35,200 Speaker 1: I like it. I like it. So yeah, well we'll 266 00:12:35,520 --> 00:12:38,679 Speaker 1: again link to that site in the show notes and uh, 267 00:12:39,040 --> 00:12:40,760 Speaker 1: kind of like we were talking about earlier, Matt, you 268 00:12:40,800 --> 00:12:43,480 Speaker 1: know what the reality is, you can trade down to 269 00:12:43,559 --> 00:12:45,760 Speaker 1: a cheaper grocery store, let's see, shop at Whole Foods 270 00:12:45,760 --> 00:12:46,880 Speaker 1: and you go to shop at all that You're gonna 271 00:12:46,880 --> 00:12:49,000 Speaker 1: save a lot of money just by making that one decision. 272 00:12:49,800 --> 00:12:51,920 Speaker 1: The same thing is true if you go from even 273 00:12:51,960 --> 00:12:54,200 Speaker 1: Aldi to your local salvage grocery store and you end 274 00:12:54,280 --> 00:12:57,000 Speaker 1: up buying more of your groceries there, you're gonna save 275 00:12:57,000 --> 00:12:58,839 Speaker 1: a lot more mone As always movement, there's always steps 276 00:12:58,840 --> 00:13:01,880 Speaker 1: that you can take him it is called that trading down, right, 277 00:13:01,960 --> 00:13:04,360 Speaker 1: That is that is the step that you're taking your 278 00:13:04,800 --> 00:13:06,640 Speaker 1: and not every you don't necessarily want to feel like 279 00:13:06,679 --> 00:13:09,520 Speaker 1: you're trading down, but it's it's not always some sort 280 00:13:09,559 --> 00:13:11,560 Speaker 1: of bad trade off. It's just going to shop someplace 281 00:13:11,640 --> 00:13:14,319 Speaker 1: that is less expensive. And the data is reflecting that 282 00:13:14,360 --> 00:13:17,360 Speaker 1: Americans are doing this more right now because you know, 283 00:13:17,520 --> 00:13:21,080 Speaker 1: inflation is a pest and economic conditions are tightening, and 284 00:13:21,160 --> 00:13:25,400 Speaker 1: so people are legitimately hitting up Applebee's uh for dinner 285 00:13:25,440 --> 00:13:28,280 Speaker 1: instead of maybe their white tablecloth restaurant, or they're hitting 286 00:13:28,320 --> 00:13:31,160 Speaker 1: up Walmart instead of a more expensive retailer that they 287 00:13:31,160 --> 00:13:33,920 Speaker 1: prefer to visit in order to save money. And so 288 00:13:33,960 --> 00:13:35,960 Speaker 1: we would say that is one way to trade down, 289 00:13:36,240 --> 00:13:38,640 Speaker 1: but you don't necessarily have to go to another store 290 00:13:38,960 --> 00:13:41,080 Speaker 1: in order to get that trade down effect. You can 291 00:13:41,280 --> 00:13:44,160 Speaker 1: trade down from buying a boneless, skinless chicken breast to 292 00:13:44,679 --> 00:13:47,560 Speaker 1: chicken thighs, or you can say taste better, by the way, Yeah, 293 00:13:47,600 --> 00:13:50,040 Speaker 1: they taste better and flavor like a third of the cost, 294 00:13:50,360 --> 00:13:52,560 Speaker 1: and and then you can trade down from and I 295 00:13:52,600 --> 00:13:54,400 Speaker 1: like both of these things. Brussels sprouts a green means. 296 00:13:54,440 --> 00:13:56,679 Speaker 1: You like to say, I don't like vegetables, but I do. Well, 297 00:13:57,559 --> 00:13:59,680 Speaker 1: you have a very limited scope and what vegetables like. 298 00:14:00,840 --> 00:14:04,560 Speaker 1: But so let's say Brussels sprouns or four dollars a pound, 299 00:14:04,880 --> 00:14:06,520 Speaker 1: and green means are two dollars a pound. That's one 300 00:14:06,520 --> 00:14:08,679 Speaker 1: way to trade down and save money. Just eat a 301 00:14:08,760 --> 00:14:11,600 Speaker 1: cheaper vegetable, and would we would say those little trade 302 00:14:11,640 --> 00:14:13,400 Speaker 1: offs matter. You can either go with the big trade 303 00:14:13,440 --> 00:14:16,360 Speaker 1: offs from you know, a more expensive store to a 304 00:14:16,440 --> 00:14:18,800 Speaker 1: less expensive store, or even just make those smaller trade 305 00:14:18,840 --> 00:14:21,000 Speaker 1: offs when you're in the store that you that you 306 00:14:21,120 --> 00:14:22,680 Speaker 1: like to go to, maybe that you don't want to leave, 307 00:14:22,960 --> 00:14:24,640 Speaker 1: that can help you save money too. That's right. Yeah, 308 00:14:24,680 --> 00:14:27,320 Speaker 1: all of those small decisions add up, so kind of 309 00:14:27,360 --> 00:14:30,160 Speaker 1: going back to the eating out at restaurants in order 310 00:14:30,200 --> 00:14:33,200 Speaker 1: to save money sort of marketing campaign. I think you 311 00:14:33,280 --> 00:14:35,480 Speaker 1: know what's going on here is a lot of fast 312 00:14:35,520 --> 00:14:38,520 Speaker 1: food chains are raking in massive profits because more folks 313 00:14:38,600 --> 00:14:41,120 Speaker 1: are eating at these more affordable chains like I Hop 314 00:14:41,200 --> 00:14:43,920 Speaker 1: and Applebees and things like that. And I think, uh, 315 00:14:44,400 --> 00:14:47,200 Speaker 1: these different campaigns that are out there now where it's like, oh, hey, 316 00:14:47,280 --> 00:14:49,720 Speaker 1: you can save money by coming to this fast food restaurant, 317 00:14:49,800 --> 00:14:52,080 Speaker 1: it's just them good in the neighborhood home. It's them 318 00:14:52,120 --> 00:14:54,200 Speaker 1: taking the data and twisting it a little bit, because really, 319 00:14:54,440 --> 00:14:56,040 Speaker 1: I mean, the fact is folks who like when you 320 00:14:56,120 --> 00:14:58,440 Speaker 1: feel rich, you go to the nicer restaurant right when 321 00:14:58,480 --> 00:14:59,680 Speaker 1: it when it seems like you've got a lot of 322 00:14:59,680 --> 00:15:01,320 Speaker 1: a lot of money on hand, you're you're not really 323 00:15:01,400 --> 00:15:05,160 Speaker 1: cutting corners, You're getting the fancy wine. I mean, just 324 00:15:05,240 --> 00:15:07,840 Speaker 1: think back to the pandemic when we got the stimulus checks. 325 00:15:07,880 --> 00:15:11,760 Speaker 1: Remember the explosion in like premium liquors and wines and stuff. 326 00:15:11,760 --> 00:15:13,360 Speaker 1: I mean, there are stories all across the board that 327 00:15:13,440 --> 00:15:18,360 Speaker 1: that's what was going on. We haven't seen a story anymore. Exactly. 328 00:15:18,400 --> 00:15:20,360 Speaker 1: They're not reporting to this directly, but I guarantee we 329 00:15:20,440 --> 00:15:22,480 Speaker 1: are seeing the opposite of that now. And that is 330 00:15:22,520 --> 00:15:25,200 Speaker 1: exactly what's happening with restaurants, folks. They're not going to 331 00:15:25,280 --> 00:15:29,720 Speaker 1: their nicer, local, fine dining cuisine restaurant. They're going to 332 00:15:29,800 --> 00:15:32,000 Speaker 1: the chains. They're going to the more affordable options. And 333 00:15:32,080 --> 00:15:34,440 Speaker 1: what that means is that these chains are seeing a 334 00:15:34,520 --> 00:15:36,160 Speaker 1: lot of profits these days, and I think it's a 335 00:15:36,200 --> 00:15:38,680 Speaker 1: way for them to talk about how they're doing well. 336 00:15:38,800 --> 00:15:40,880 Speaker 1: It's about positioning, and they don't want to position themselves 337 00:15:40,960 --> 00:15:44,440 Speaker 1: as like the discount fast food place, even though that's 338 00:15:44,480 --> 00:15:47,040 Speaker 1: what they are. Yeah, exactly. All. Let's let's talk about 339 00:15:47,040 --> 00:15:49,800 Speaker 1: student loans here for a second, Matt, because the question 340 00:15:50,600 --> 00:15:51,960 Speaker 1: that I asked at the beginning of the episode, are 341 00:15:52,120 --> 00:15:54,920 Speaker 1: it was gonna get paused? Well, we're not sure everybody 342 00:15:54,920 --> 00:15:56,720 Speaker 1: wants to know if that pause is going to get extended. 343 00:15:56,800 --> 00:15:58,640 Speaker 1: Right now, things are still up in the air, and 344 00:15:58,840 --> 00:16:01,080 Speaker 1: I'm sure for a lot of folks their student loans 345 00:16:01,080 --> 00:16:03,000 Speaker 1: are kind of become out of sight, out of mind, 346 00:16:03,440 --> 00:16:06,480 Speaker 1: which is not necessarily a good thing. Hopefully, how the 347 00:16:06,520 --> 00:16:09,800 Speaker 1: money listeners have been preparing for the eventual resumption of 348 00:16:09,880 --> 00:16:14,040 Speaker 1: those payments. But the ambiguity, I would say, whether payments 349 00:16:14,200 --> 00:16:15,920 Speaker 1: are going to resume or not, it's pretty crappy. I 350 00:16:16,000 --> 00:16:18,000 Speaker 1: wish people just knew. I wish there was like some 351 00:16:18,120 --> 00:16:20,800 Speaker 1: sort of firm deadline, and and technically there is, but 352 00:16:21,560 --> 00:16:23,720 Speaker 1: it all signs behind the scenes are pointing to the 353 00:16:23,800 --> 00:16:26,320 Speaker 1: likelihood that the payment pause is going to be extended. 354 00:16:26,640 --> 00:16:28,560 Speaker 1: But if it is, it's gonna be done on really 355 00:16:28,600 --> 00:16:30,480 Speaker 1: short notice, because payments are set to resume in a 356 00:16:30,520 --> 00:16:32,360 Speaker 1: couple of weeks or less than a couple of weeks now, 357 00:16:32,640 --> 00:16:35,040 Speaker 1: right and so Federal Student Loan Services they've made it 358 00:16:35,080 --> 00:16:37,800 Speaker 1: sound like they aren't preparing to begin taking payments again, 359 00:16:38,080 --> 00:16:40,560 Speaker 1: um that they're not ready, which seems crazy to me. 360 00:16:40,600 --> 00:16:42,160 Speaker 1: They've had two and a half years to get ready 361 00:16:42,160 --> 00:16:43,440 Speaker 1: for that. I know there's been a lot of shifting 362 00:16:43,440 --> 00:16:46,320 Speaker 1: in the background. But hopefully, hopefully we'll have more infro 363 00:16:46,560 --> 00:16:48,880 Speaker 1: for you next week. But at this point in time, 364 00:16:49,160 --> 00:16:51,000 Speaker 1: it looks like they won't begin. But that doesn't mean 365 00:16:51,080 --> 00:16:52,720 Speaker 1: you don't need to be ready for them to begin, 366 00:16:52,920 --> 00:16:54,840 Speaker 1: Like we we still need you gotta be prepared. It's 367 00:16:54,880 --> 00:16:57,200 Speaker 1: it's been two and a half years since a lot 368 00:16:57,240 --> 00:16:59,720 Speaker 1: of Americans have had a budget line item for their 369 00:16:59,760 --> 00:17:02,200 Speaker 1: stud and loan payment. That's a really long time. But 370 00:17:02,480 --> 00:17:04,879 Speaker 1: even still, like as of now, we would suggest that 371 00:17:04,960 --> 00:17:07,520 Speaker 1: you plan for the reality that you might have to 372 00:17:07,560 --> 00:17:10,239 Speaker 1: start paying again con September UM. By the way, there 373 00:17:10,280 --> 00:17:12,720 Speaker 1: is an interesting piece in The New Yorker about how 374 00:17:12,880 --> 00:17:15,600 Speaker 1: a larger chunk of student loan debt is now being 375 00:17:15,680 --> 00:17:19,040 Speaker 1: held by folks who are nearing retirement age, because one 376 00:17:19,119 --> 00:17:21,399 Speaker 1: in five student loan debtors are over the age of 377 00:17:21,720 --> 00:17:24,840 Speaker 1: fifty years old. And that is also the demographic with 378 00:17:24,920 --> 00:17:27,320 Speaker 1: the largest jump in overall balances as well, which is 379 00:17:27,760 --> 00:17:30,280 Speaker 1: incredibly horrifying that you've got folks who are entering into 380 00:17:30,320 --> 00:17:32,719 Speaker 1: retirement and they've they still got these student loans. Uh, 381 00:17:32,800 --> 00:17:36,359 Speaker 1: they're typically their kids student loans around their necks, and so, like, 382 00:17:36,440 --> 00:17:38,160 Speaker 1: we wanted to share this because we're not fans of debt, 383 00:17:38,320 --> 00:17:41,040 Speaker 1: but student loan debt it's nearly impossible to shake, and 384 00:17:41,320 --> 00:17:43,920 Speaker 1: it's haunting people into their sixties and into their seventies. 385 00:17:44,280 --> 00:17:47,520 Speaker 1: UM parent plus loans in particular, they're the absolute worst. 386 00:17:47,640 --> 00:17:51,159 Speaker 1: In Our advice is to basically avoid them that at 387 00:17:51,200 --> 00:17:54,919 Speaker 1: all costs, and if that means going to a cheaper school, 388 00:17:55,000 --> 00:17:56,879 Speaker 1: so be it. We think that that can be a 389 00:17:56,960 --> 00:17:59,600 Speaker 1: great path for you to take because you know, taking 390 00:17:59,760 --> 00:18:02,320 Speaker 1: on that debt going into your golden years, we do 391 00:18:02,480 --> 00:18:04,879 Speaker 1: not feel that that is worth it. No. I mean, 392 00:18:04,880 --> 00:18:06,879 Speaker 1: that's what a perilelus situation to be in, to be 393 00:18:06,960 --> 00:18:09,080 Speaker 1: in your sixties or seventies and still having tens or 394 00:18:09,119 --> 00:18:13,320 Speaker 1: maybe hundreds of thousands of dollars in student loans dangling 395 00:18:13,560 --> 00:18:17,720 Speaker 1: around your finances, impacting your ability to retire, and and 396 00:18:17,800 --> 00:18:21,040 Speaker 1: it seems like this selfless act to basically help your 397 00:18:21,119 --> 00:18:24,879 Speaker 1: child pay for their college, but the reality is you 398 00:18:25,000 --> 00:18:28,800 Speaker 1: need to have a different conversation about how how they're 399 00:18:28,800 --> 00:18:30,639 Speaker 1: going to pay for college and where they should be 400 00:18:30,680 --> 00:18:32,679 Speaker 1: going to college and not just taking on the chin 401 00:18:32,800 --> 00:18:35,600 Speaker 1: yourself as as someone who's who's getting up there in 402 00:18:35,760 --> 00:18:39,960 Speaker 1: age because you're not doing yourself or your child any 403 00:18:40,000 --> 00:18:42,760 Speaker 1: favors by that happen. Unless I will say, if there 404 00:18:42,800 --> 00:18:46,280 Speaker 1: are changing expectations, I think then I'm okay. Maybe seeing 405 00:18:46,359 --> 00:18:48,399 Speaker 1: something like things shift a little bit. But that is 406 00:18:48,440 --> 00:18:51,560 Speaker 1: not something that we've heard a lot of folks talk about. Uh. Instead, 407 00:18:51,640 --> 00:18:54,399 Speaker 1: it's just oftentimes parents getting stuck with these things. Uh. 408 00:18:54,440 --> 00:18:57,800 Speaker 1: And unfortunately, I think we might see the results of this, 409 00:18:57,960 --> 00:19:00,520 Speaker 1: like the ripple effects of this down the road, might 410 00:19:00,600 --> 00:19:02,919 Speaker 1: be an entire generation of folks having to take care 411 00:19:02,960 --> 00:19:05,000 Speaker 1: of their parents because they have been paying on their 412 00:19:05,000 --> 00:19:08,080 Speaker 1: student loans on their kids student loans, rather than saving 413 00:19:08,119 --> 00:19:11,120 Speaker 1: for their resturmant. That's exactly right. All right, last story 414 00:19:11,160 --> 00:19:13,000 Speaker 1: before we get to the break, Matt, And since we're 415 00:19:13,040 --> 00:19:16,280 Speaker 1: talking about retirement, well, social Security turned eighty seven this week. 416 00:19:16,359 --> 00:19:17,840 Speaker 1: Did you did you make a birthday cake for it 417 00:19:17,960 --> 00:19:21,200 Speaker 1: or anything? I did not. Well, and you just celebrated 418 00:19:21,240 --> 00:19:24,879 Speaker 1: your fifteenth anniversary with your wife's this week, so congratulations 419 00:19:24,920 --> 00:19:26,440 Speaker 1: to you. Was it last year we talked about making 420 00:19:26,480 --> 00:19:29,800 Speaker 1: it to Hawaii? Yeah, definitely didn't. We did not make 421 00:19:29,880 --> 00:19:32,040 Speaker 1: that happen. Oh my gosh, that's why man is sleeping 422 00:19:32,080 --> 00:19:34,800 Speaker 1: in the proverbial doghouse. Yeah, trying to make a move, 423 00:19:35,080 --> 00:19:37,840 Speaker 1: and all the other things that have changed within our 424 00:19:37,880 --> 00:19:39,359 Speaker 1: lives for the past couple of months. We're like, you 425 00:19:39,400 --> 00:19:41,800 Speaker 1: know what, maybe it'll be sixteen, Like he says, it 426 00:19:41,880 --> 00:19:45,560 Speaker 1: has to be awesome on a big ten or fifteen 427 00:19:45,720 --> 00:19:48,160 Speaker 1: or twenty. Traditionally, I know that's what people do. Yeah, 428 00:19:48,720 --> 00:19:53,040 Speaker 1: the traditional it's just a number. That's what Kate told me. Yeah. 429 00:19:53,080 --> 00:19:56,280 Speaker 1: I was really like, all right, I'll take that. I'll 430 00:19:56,359 --> 00:20:00,040 Speaker 1: run with it. Well, social Security is eighty seven and 431 00:20:00,040 --> 00:20:03,479 Speaker 1: it's geriatric now, just like the people it's recipients, and uh, 432 00:20:03,960 --> 00:20:05,320 Speaker 1: is it gonna be around? I guess a lot of 433 00:20:05,359 --> 00:20:06,960 Speaker 1: people have the question is it gonna be around for 434 00:20:07,040 --> 00:20:09,680 Speaker 1: me if I'm in my twenties or my thirties. Matt 435 00:20:09,720 --> 00:20:11,680 Speaker 1: and I we think so, although it needs a few 436 00:20:11,680 --> 00:20:13,680 Speaker 1: tweaks to the program, And if you want to know 437 00:20:13,880 --> 00:20:16,400 Speaker 1: our thoughts on the future of Social Security, we would 438 00:20:16,400 --> 00:20:19,639 Speaker 1: suggest you checking how our episode four thirteen we had 439 00:20:19,680 --> 00:20:22,840 Speaker 1: some thoughts on how to preserve social security for for 440 00:20:22,960 --> 00:20:26,760 Speaker 1: future generations and and hopefully some comforting stats to let 441 00:20:26,840 --> 00:20:29,400 Speaker 1: all of our younger listeners know that social Security will 442 00:20:29,480 --> 00:20:31,359 Speaker 1: be a part of your retirement. Like would be shocked 443 00:20:31,400 --> 00:20:34,040 Speaker 1: if social Security didn't make it into triple digits, all right, 444 00:20:34,080 --> 00:20:36,920 Speaker 1: and we've got more to get to, including a sign 445 00:20:37,000 --> 00:20:38,600 Speaker 1: up bonus, a new sign up bonus for a credit 446 00:20:38,640 --> 00:20:40,680 Speaker 1: card that has never offered one. We'll talk about that 447 00:20:40,960 --> 00:20:52,240 Speaker 1: and more right after this. All right, we are back 448 00:20:52,400 --> 00:20:55,800 Speaker 1: from the break in per usual. As always, we are 449 00:20:55,800 --> 00:20:58,280 Speaker 1: going to get to our ludicrous headline of the week. 450 00:20:58,359 --> 00:21:01,360 Speaker 1: It never gets old, and love this segment. It's it's 451 00:21:01,359 --> 00:21:04,119 Speaker 1: good because it helps us to highlight either just sometimes 452 00:21:04,280 --> 00:21:06,920 Speaker 1: like stupid headlines that are out there, or just folks 453 00:21:07,000 --> 00:21:10,520 Speaker 1: who are misbehaving. Companies in particular who are misbehaving. And 454 00:21:10,600 --> 00:21:13,119 Speaker 1: that's what we're gonna be talking about today because this 455 00:21:13,200 --> 00:21:17,000 Speaker 1: one actually comes from our local TV station WSB and 456 00:21:17,080 --> 00:21:20,639 Speaker 1: the headline read extended warranty Companies refuses to pay for 457 00:21:20,760 --> 00:21:25,160 Speaker 1: car repairs, costing customers thousands of dollars WSP. They took 458 00:21:25,200 --> 00:21:28,640 Speaker 1: a company called car Shield to task in this TV 459 00:21:28,840 --> 00:21:32,080 Speaker 1: piece because they car Shield they are refusing to pay 460 00:21:32,119 --> 00:21:35,239 Speaker 1: out on customer claims. Uh. And they're leaving folks who 461 00:21:35,440 --> 00:21:37,960 Speaker 1: thought that they were covered in the lurch. Uh. And 462 00:21:38,160 --> 00:21:39,760 Speaker 1: it turns out like a lot of mechanics they don't 463 00:21:39,800 --> 00:21:42,240 Speaker 1: even work with these third party warranty companies because they're 464 00:21:42,280 --> 00:21:45,560 Speaker 1: so notorious for for actually not footing the bill, for 465 00:21:45,640 --> 00:21:48,040 Speaker 1: not paying it, they're having to, like some some of 466 00:21:48,119 --> 00:21:52,240 Speaker 1: these mechanics are even charging these warranty companies fees because 467 00:21:52,280 --> 00:21:53,879 Speaker 1: they're taking so long to even get back to them 468 00:21:53,920 --> 00:21:55,520 Speaker 1: as to whether or not they're gonna they're gonna work 469 00:21:55,560 --> 00:21:57,960 Speaker 1: on the car, So you got to pay ten percent 470 00:21:58,000 --> 00:22:00,080 Speaker 1: actually charging them like literally like a storage fee of 471 00:22:00,200 --> 00:22:02,920 Speaker 1: these vehicles that are inoperable that they're having to keep 472 00:22:02,960 --> 00:22:05,080 Speaker 1: around on their lots and you know, zooming out a 473 00:22:05,080 --> 00:22:07,120 Speaker 1: little bit. It's not that you can't get a legitimate 474 00:22:07,160 --> 00:22:11,320 Speaker 1: extended warranty from your car's manufacturer, because you definitely can, 475 00:22:11,400 --> 00:22:14,600 Speaker 1: in particular from you know, straight from the manufacturer. But 476 00:22:14,920 --> 00:22:17,479 Speaker 1: it's the third party policies in particular that are almost 477 00:22:17,520 --> 00:22:20,159 Speaker 1: always complete pieces of crap and are just you know, 478 00:22:20,359 --> 00:22:22,399 Speaker 1: going to be a waste of your money. Uh. Actually, 479 00:22:22,440 --> 00:22:26,080 Speaker 1: Consumer reports they call these types of car warranties an 480 00:22:26,119 --> 00:22:29,600 Speaker 1: expensive gamble, and some recent research by them reveals that 481 00:22:29,680 --> 00:22:33,440 Speaker 1: the majority of folks never make a claim under that warranty, 482 00:22:33,840 --> 00:22:35,520 Speaker 1: and even when they do, the average person ends up 483 00:22:35,520 --> 00:22:38,040 Speaker 1: actually losing money because it would have been cheaper to 484 00:22:38,119 --> 00:22:40,920 Speaker 1: just pay for those repairs yourself. I think the average 485 00:22:41,119 --> 00:22:44,240 Speaker 1: cost of like or like maybe the median car extended 486 00:22:44,280 --> 00:22:47,119 Speaker 1: car warranty from a manufacturer was something like but then 487 00:22:47,200 --> 00:22:49,879 Speaker 1: the average payout amount was only like eight hundredth exactly, 488 00:22:50,440 --> 00:22:52,720 Speaker 1: folks are coming like they're paying. Even when you use it, 489 00:22:52,760 --> 00:22:54,960 Speaker 1: you still lose. You're still losing. Even though emotionally you 490 00:22:55,040 --> 00:22:56,399 Speaker 1: might feel a little bit better because you're like, I 491 00:22:56,440 --> 00:22:57,920 Speaker 1: don't have to worry about that, it's like, no, you 492 00:22:58,000 --> 00:23:00,600 Speaker 1: still would have come out ahead had you just this yourself. 493 00:23:00,680 --> 00:23:02,640 Speaker 1: It's not that I, like your engine and transmission don't 494 00:23:02,640 --> 00:23:04,440 Speaker 1: fail and the warranty actually comes through that you didn't 495 00:23:04,440 --> 00:23:06,879 Speaker 1: come out ahead. But most people don't, and so most 496 00:23:06,920 --> 00:23:09,720 Speaker 1: people be better off self insuring, having more money in 497 00:23:09,920 --> 00:23:13,960 Speaker 1: the bank, and just forgetting these extended warranties altogether, especially 498 00:23:14,160 --> 00:23:17,280 Speaker 1: the crappy third party ones that are are typically you're 499 00:23:17,320 --> 00:23:19,879 Speaker 1: going to be footing the bill anyway. You're gonna be 500 00:23:19,880 --> 00:23:21,879 Speaker 1: paying the money to fix it yourself because they won't, 501 00:23:22,160 --> 00:23:24,280 Speaker 1: and you're gonna be paying them money that really goes 502 00:23:24,359 --> 00:23:26,359 Speaker 1: no work supposed to line their pockets. So it's hardly 503 00:23:26,400 --> 00:23:28,280 Speaker 1: worth the money or it's hardly worth the paper that 504 00:23:28,320 --> 00:23:30,239 Speaker 1: has written on because if you can't even get them 505 00:23:30,280 --> 00:23:31,960 Speaker 1: to pay for the repairs, then what's the what's the 506 00:23:31,960 --> 00:23:34,520 Speaker 1: point of even doing it? And consumer reports they found 507 00:23:34,560 --> 00:23:36,840 Speaker 1: that most folks were paying for this because they wanted 508 00:23:36,880 --> 00:23:40,240 Speaker 1: that peace of mind. But man, paying over bucks for 509 00:23:40,320 --> 00:23:42,600 Speaker 1: some peace of mind is pay for your own peace 510 00:23:42,640 --> 00:23:45,359 Speaker 1: of mind. Get the money in the bank, and when 511 00:23:45,400 --> 00:23:47,320 Speaker 1: you have that money sitting there in a in a bucket, 512 00:23:47,359 --> 00:23:50,480 Speaker 1: in a special fund to cover these kind of costs, 513 00:23:51,040 --> 00:23:52,720 Speaker 1: that will allow you to to sleep at night and 514 00:23:52,760 --> 00:23:54,920 Speaker 1: remove some of that stress. Uh. And something else, dude, 515 00:23:54,920 --> 00:23:56,720 Speaker 1: I was thinking through, how like, why is it that 516 00:23:56,800 --> 00:23:59,240 Speaker 1: people are paying for these things when they know that 517 00:23:59,400 --> 00:24:03,040 Speaker 1: it's tipally an inferior product. And I think it's because 518 00:24:03,359 --> 00:24:06,200 Speaker 1: car purchases in particular, folks were buying newer cars. It's 519 00:24:06,200 --> 00:24:09,480 Speaker 1: such a large purchase and oftentimes they're not paying cash 520 00:24:09,560 --> 00:24:12,040 Speaker 1: for those for those purchases, right, and so they get 521 00:24:12,240 --> 00:24:15,440 Speaker 1: emotionally talked into buying you know, adding on tacking on 522 00:24:15,520 --> 00:24:17,920 Speaker 1: these warranty programs. It's often a product that is sold 523 00:24:18,040 --> 00:24:20,800 Speaker 1: and not it's sold and it's being financed right because 524 00:24:20,800 --> 00:24:22,919 Speaker 1: they're not paying hard cash for these warranties. They're typically 525 00:24:23,000 --> 00:24:25,520 Speaker 1: rolled into the car loan, and so you're thinking, well, 526 00:24:25,560 --> 00:24:28,800 Speaker 1: what's another, what's another it's not that big of its 527 00:24:29,160 --> 00:24:33,520 Speaker 1: eight bucks a month on like I'm already droppings on 528 00:24:33,600 --> 00:24:35,639 Speaker 1: this bran new vehicle. What's a thousand bucks for that 529 00:24:35,720 --> 00:24:38,560 Speaker 1: piece of money? Which is even worse because now obviously 530 00:24:38,600 --> 00:24:40,720 Speaker 1: you're not gonna likely, you're not likely to take advantage 531 00:24:40,720 --> 00:24:42,400 Speaker 1: of it, but now you're paying more because you're having 532 00:24:42,440 --> 00:24:44,800 Speaker 1: to pay interest on that agon as well. Yeah. Well, 533 00:24:44,880 --> 00:24:46,640 Speaker 1: and it just makes me think of insurance in general, 534 00:24:46,720 --> 00:24:50,439 Speaker 1: because extended warranties are basically a type of insurance, right, 535 00:24:51,000 --> 00:24:53,840 Speaker 1: just just a very crappy piece of insurance, really trashy 536 00:24:53,960 --> 00:24:55,680 Speaker 1: one that is going to cost you a lot of money. 537 00:24:56,040 --> 00:24:58,840 Speaker 1: But of course some types of insurance are a smart 538 00:24:58,880 --> 00:25:01,120 Speaker 1: buy for people. We you know, we like term life insurance. 539 00:25:01,160 --> 00:25:04,560 Speaker 1: For instance. It's unlikely that you're gonna die at thirty five, 540 00:25:04,720 --> 00:25:06,320 Speaker 1: but if you do, your family is gonna be glad 541 00:25:06,359 --> 00:25:09,560 Speaker 1: that you paid eighteen dollars a month for that policy, right, 542 00:25:10,040 --> 00:25:13,080 Speaker 1: And and it's a very inexpensive not just peace of mind, 543 00:25:13,119 --> 00:25:15,720 Speaker 1: but actual coverage that you have. What will link to 544 00:25:15,840 --> 00:25:18,159 Speaker 1: an article about that. We wrote about life insurance on 545 00:25:18,320 --> 00:25:20,199 Speaker 1: our site and kind of how you can decipher how 546 00:25:20,320 --> 00:25:23,200 Speaker 1: much you need life insurance. That's a legit form of 547 00:25:23,240 --> 00:25:25,600 Speaker 1: insurance that you need exact especially if you have dependence 548 00:25:25,720 --> 00:25:27,880 Speaker 1: or anybody counting on your income. And let's talk about 549 00:25:27,920 --> 00:25:31,720 Speaker 1: another legit form of insurance that's actually ridiculously cheap, and 550 00:25:31,920 --> 00:25:34,760 Speaker 1: that is Renters insurance. The New York Times actually had 551 00:25:34,760 --> 00:25:37,239 Speaker 1: an article about that this week and the specifically we're 552 00:25:37,280 --> 00:25:40,159 Speaker 1: writing about the necessity for college students to have this 553 00:25:40,280 --> 00:25:43,280 Speaker 1: insurance and as schools kind of getting back in session, 554 00:25:43,720 --> 00:25:46,199 Speaker 1: it's uh, it's a type of insurance that more young 555 00:25:46,280 --> 00:25:48,720 Speaker 1: folks really should consider. In part of the reason is 556 00:25:48,720 --> 00:25:52,399 Speaker 1: because it is so ridiculously cheap. We would say, check 557 00:25:52,440 --> 00:25:54,680 Speaker 1: with your insurance company to see how much it would 558 00:25:54,680 --> 00:25:57,480 Speaker 1: be to add that policy, that Renters insurance policy. It 559 00:25:57,760 --> 00:26:01,000 Speaker 1: legit could be cheaper than your Netflix subscript, because even 560 00:26:01,040 --> 00:26:03,280 Speaker 1: if you don't get it through your current insure. There's 561 00:26:03,320 --> 00:26:06,560 Speaker 1: an online insurance company called Lemonade, and there are another 562 00:26:06,600 --> 00:26:08,960 Speaker 1: cool company worth checking out their Renters insurance policies. MAT 563 00:26:09,080 --> 00:26:12,879 Speaker 1: started five dollars a month. Let's say your backpackets stolen 564 00:26:12,920 --> 00:26:15,960 Speaker 1: and there's a laptop in there, or some some books 565 00:26:16,040 --> 00:26:17,679 Speaker 1: from class. You know how expects of those books are 566 00:26:17,680 --> 00:26:20,119 Speaker 1: probably amost expensive. Is your laptop um being able to 567 00:26:20,119 --> 00:26:23,359 Speaker 1: get paid out and and replace those items with this 568 00:26:23,560 --> 00:26:27,600 Speaker 1: relatively cheap insurance policy is is going to be important 569 00:26:27,600 --> 00:26:29,480 Speaker 1: for a lot of college students. And so, yeah, not 570 00:26:29,640 --> 00:26:32,120 Speaker 1: all insurance products makes sense. There's a lot that don't, 571 00:26:32,440 --> 00:26:35,400 Speaker 1: but some policies really can save your hide, and especially 572 00:26:35,760 --> 00:26:38,560 Speaker 1: some of these super cheap ones provide some of that 573 00:26:38,600 --> 00:26:40,719 Speaker 1: most important coverage that you should that that you need. 574 00:26:41,000 --> 00:26:43,040 Speaker 1: That's right, Yeah, check with your insurance provider to see 575 00:26:43,040 --> 00:26:45,000 Speaker 1: if that is something that you can add. And also 576 00:26:45,000 --> 00:26:47,240 Speaker 1: actually before you even do that, check and see if 577 00:26:47,280 --> 00:26:50,640 Speaker 1: you already have what's called off premise coverage on that policy, 578 00:26:50,720 --> 00:26:52,760 Speaker 1: because if you've got a student off at college, your 579 00:26:52,760 --> 00:26:57,120 Speaker 1: homeowners policy might cover their possessions off at college as well. 580 00:26:57,440 --> 00:27:01,040 Speaker 1: It's oftentimes a less amount. It's it's not the full 581 00:27:01,080 --> 00:27:03,639 Speaker 1: it's like ten percent typically of like the overall amount 582 00:27:03,680 --> 00:27:05,919 Speaker 1: that you might have on your possessions. But that might 583 00:27:05,960 --> 00:27:07,720 Speaker 1: be something that you're already paying for. So we just 584 00:27:07,720 --> 00:27:09,040 Speaker 1: don't want you to go to go out there and 585 00:27:09,560 --> 00:27:12,760 Speaker 1: get that sweet Lemonade coverage because it sounds so approachable 586 00:27:12,800 --> 00:27:14,440 Speaker 1: and you're like, oh, Lemonade, that's the kind of company 587 00:27:14,480 --> 00:27:17,120 Speaker 1: I want to do business business with, But you don't 588 00:27:17,119 --> 00:27:19,239 Speaker 1: want to be over insured. Well, and one last thing, 589 00:27:19,560 --> 00:27:22,119 Speaker 1: be careful before you file a claim, know what you're 590 00:27:22,160 --> 00:27:24,639 Speaker 1: deductible is, and know whether or not that's going to 591 00:27:24,920 --> 00:27:27,520 Speaker 1: raise your rates in the future. Because if if you're 592 00:27:27,520 --> 00:27:30,440 Speaker 1: deductible is really low and you're tempted to file a 593 00:27:30,520 --> 00:27:34,760 Speaker 1: claim because it's deductible well for a thousand dollar laptop, 594 00:27:35,320 --> 00:27:36,840 Speaker 1: ultimately in the end, it's probably gonna be a bad 595 00:27:36,840 --> 00:27:39,800 Speaker 1: financial move because your rates on your premiums are gonna 596 00:27:39,840 --> 00:27:41,440 Speaker 1: go up and it's gonna be harder for you to 597 00:27:41,480 --> 00:27:44,600 Speaker 1: switch to another insurance company in the future. So, in particular, 598 00:27:44,640 --> 00:27:46,879 Speaker 1: if we're talking about finally a claim on a homeowners 599 00:27:46,920 --> 00:27:49,800 Speaker 1: policy that has this additional off dwelling coverage and you're 600 00:27:49,840 --> 00:27:52,480 Speaker 1: making a claim that way, there's a chance that even 601 00:27:52,520 --> 00:27:54,600 Speaker 1: though it looks like in the short term you're coming 602 00:27:54,600 --> 00:27:57,040 Speaker 1: out ahead, in the long term, you're not gonna Yep, 603 00:27:57,200 --> 00:27:59,719 Speaker 1: that's right, man. It's another interesting tibit that crossed our 604 00:27:59,720 --> 00:28:02,920 Speaker 1: path this week was about investing, and it turns out 605 00:28:02,960 --> 00:28:06,720 Speaker 1: that demand for financial advisors actually goes down when folks 606 00:28:06,840 --> 00:28:09,919 Speaker 1: opt for a target date fund. A new paper from 607 00:28:09,960 --> 00:28:14,000 Speaker 1: the Boston College Department of Finance found that folks tend 608 00:28:14,040 --> 00:28:16,960 Speaker 1: to seek out the the the warm embrace of of 609 00:28:17,040 --> 00:28:20,120 Speaker 1: a financial advisor the older they get and the more 610 00:28:20,200 --> 00:28:24,320 Speaker 1: assets that they've accumulated. We're just on Friday nights and 611 00:28:24,320 --> 00:28:26,159 Speaker 1: when when they're when they're only when they're sitting there 612 00:28:26,160 --> 00:28:28,680 Speaker 1: by themselves. But this makes sense obviously, right when you've 613 00:28:28,720 --> 00:28:31,040 Speaker 1: got more on the line, um, it seems like something 614 00:28:31,160 --> 00:28:33,800 Speaker 1: that you want to have a little more guidance someone, 615 00:28:33,840 --> 00:28:36,560 Speaker 1: they're holding your hand. But folks who want for those 616 00:28:36,600 --> 00:28:38,640 Speaker 1: target date funds inside of their forum and case are 617 00:28:38,640 --> 00:28:42,400 Speaker 1: actually they're far less likely to seek advice overall. Uh 618 00:28:42,480 --> 00:28:44,640 Speaker 1: and largely because it feels like that the target date 619 00:28:44,680 --> 00:28:47,760 Speaker 1: fund is in control on your behalf um and so 620 00:28:47,960 --> 00:28:49,840 Speaker 1: you know, getting advice from an advisor it might be 621 00:28:49,920 --> 00:28:52,440 Speaker 1: helpful at different points with you know, within your life. 622 00:28:52,600 --> 00:28:54,960 Speaker 1: We're not against you seeking out the advice of a 623 00:28:55,000 --> 00:28:58,080 Speaker 1: financial advisor. We we talked about this in depth back 624 00:28:58,160 --> 00:29:01,280 Speaker 1: in episode two or six. But I love seeing how 625 00:29:01,520 --> 00:29:04,400 Speaker 1: just picking the set it and forget it target date fund. 626 00:29:04,440 --> 00:29:07,160 Speaker 1: How that can inspire confidence and it can keep folks 627 00:29:07,280 --> 00:29:10,720 Speaker 1: just marching down the d I Y investing path where 628 00:29:10,840 --> 00:29:14,120 Speaker 1: they're not necessarily dependent on somebody else to provide them 629 00:29:14,240 --> 00:29:17,560 Speaker 1: with the quote unquote rights investing advice. Because you know, 630 00:29:17,640 --> 00:29:20,160 Speaker 1: these low cost target date funds for Vanguard, Fidelity and Schwab, 631 00:29:20,240 --> 00:29:22,880 Speaker 1: these are all really great and what we would recommend, 632 00:29:23,240 --> 00:29:25,760 Speaker 1: especially if you're interested in taking the path where you 633 00:29:25,840 --> 00:29:28,920 Speaker 1: are looking to keep your investments simple, where you're not 634 00:29:29,040 --> 00:29:32,000 Speaker 1: trying to overthink things. Target date funds are great for 635 00:29:32,080 --> 00:29:35,120 Speaker 1: those types of folks for sure. Yeah. And another somewhat 636 00:29:35,200 --> 00:29:37,440 Speaker 1: nerdy article Matt this week that kind of piggybacks on 637 00:29:37,520 --> 00:29:40,080 Speaker 1: that a little bit was from the Financial Times, and 638 00:29:40,960 --> 00:29:43,440 Speaker 1: so this was interesting. It upended I think some historic 639 00:29:43,520 --> 00:29:45,560 Speaker 1: investing wisdom. So we probably we had to tackle this 640 00:29:45,640 --> 00:29:50,880 Speaker 1: one because this article argued that active funds, actively managed 641 00:29:51,240 --> 00:29:55,560 Speaker 1: index funds are actively managed mutual funds often actually outperform 642 00:29:55,760 --> 00:29:57,960 Speaker 1: passive ones. And you and I we always talk about 643 00:29:58,000 --> 00:30:00,640 Speaker 1: passive index funds and target date funds. This show that's 644 00:30:00,800 --> 00:30:02,640 Speaker 1: that's what we're typically pointing people towards. So I was like, 645 00:30:02,680 --> 00:30:04,600 Speaker 1: wait a second, maybe this have we been screwing up. 646 00:30:04,600 --> 00:30:06,480 Speaker 1: Maybe this should have been our ludicrous headline, which like, 647 00:30:06,560 --> 00:30:08,840 Speaker 1: wait a minute, yeah, and it could have been. But 648 00:30:09,080 --> 00:30:11,239 Speaker 1: we we you know, we don't think that you need 649 00:30:11,360 --> 00:30:14,800 Speaker 1: someone actively choosing investments on your behalf. But then I 650 00:30:14,880 --> 00:30:16,960 Speaker 1: started to ask, well, have I been wrong? All these years? 651 00:30:17,520 --> 00:30:19,360 Speaker 1: Are Matt and I? Have we been an error? And 652 00:30:19,440 --> 00:30:22,320 Speaker 1: it's obviously important for us to acknowledge when new information 653 00:30:22,480 --> 00:30:25,760 Speaker 1: comes to light. But the most interesting tidbit Matt from 654 00:30:25,800 --> 00:30:29,040 Speaker 1: this article, from from the study that influenced this article 655 00:30:29,440 --> 00:30:33,520 Speaker 1: was that those actively managed funds outperform those passive funds. 656 00:30:33,760 --> 00:30:37,440 Speaker 1: But it's before we start talking about fees in equation. 657 00:30:37,640 --> 00:30:41,160 Speaker 1: It's not that they all overperformed. They chose like what 658 00:30:41,360 --> 00:30:44,600 Speaker 1: thirty something funds, and they said passiverse active equivalent, and 659 00:30:45,040 --> 00:30:47,360 Speaker 1: and a lot of the actives did by something like 660 00:30:47,400 --> 00:30:50,280 Speaker 1: by half a percentage point outperformed some of their passive peers. 661 00:30:50,680 --> 00:30:53,920 Speaker 1: But when you factor in the fees, uh, the active 662 00:30:53,960 --> 00:30:56,600 Speaker 1: investors still come out on the losing end of the stick. 663 00:30:56,840 --> 00:30:59,880 Speaker 1: And so it's it's not that actively managed funds can't outperform, 664 00:31:00,200 --> 00:31:02,240 Speaker 1: it's just that the fees are so much higher that 665 00:31:02,280 --> 00:31:04,080 Speaker 1: you'll still lose out in the end makes me think 666 00:31:04,120 --> 00:31:07,240 Speaker 1: of this old morning Star study something it's like twelve 667 00:31:07,320 --> 00:31:11,240 Speaker 1: years ago about morning Star said what's more meaningful to 668 00:31:11,280 --> 00:31:14,080 Speaker 1: picking a good investment? Is it our fund ratings or 669 00:31:14,280 --> 00:31:17,800 Speaker 1: is it the fees you're gonna pay? And I'm shocked 670 00:31:17,840 --> 00:31:20,840 Speaker 1: mornings are even published this because they found that the 671 00:31:20,920 --> 00:31:24,440 Speaker 1: fees were way more important, uh than than their fundraiting. Right, Yeah, 672 00:31:24,600 --> 00:31:27,240 Speaker 1: so you can pick a four star morning Star fund, 673 00:31:27,240 --> 00:31:29,000 Speaker 1: which is like their top rating, and it's gonna be 674 00:31:29,000 --> 00:31:31,000 Speaker 1: a good fund in all likelihood, right, depending on whether 675 00:31:31,040 --> 00:31:33,680 Speaker 1: it fits your investing needs, it'll be solid. They're not 676 00:31:33,760 --> 00:31:36,680 Speaker 1: ripping you off, right. But the but the fees are 677 00:31:36,800 --> 00:31:39,160 Speaker 1: more indicative than the fund ratings, and and the fees 678 00:31:39,200 --> 00:31:42,560 Speaker 1: are are more indicative than actively or passively managed funds. 679 00:31:42,600 --> 00:31:44,200 Speaker 1: Like the fees are really at the heart of what 680 00:31:44,320 --> 00:31:46,480 Speaker 1: makes a good investment in so many ways. Yeah, and 681 00:31:46,480 --> 00:31:48,360 Speaker 1: when you look at funds here in the US, last year, 682 00:31:48,640 --> 00:31:52,960 Speaker 1: eight percent of actively managed funds didn't beat their passive counterparts. 683 00:31:53,080 --> 00:31:56,640 Speaker 1: But even of that's that's remaining that did outperform their 684 00:31:56,640 --> 00:31:58,520 Speaker 1: passive kind of parts. Yeah, there's fees there, and so 685 00:31:58,880 --> 00:32:02,840 Speaker 1: boom it automakely gets demoted and the passive funds come 686 00:32:02,840 --> 00:32:05,479 Speaker 1: out ahead again. And this is why that we are 687 00:32:05,560 --> 00:32:08,280 Speaker 1: such big fans of index funds, in particular the ones 688 00:32:08,320 --> 00:32:11,080 Speaker 1: that track the total stock market or the smp F funder. 689 00:32:11,120 --> 00:32:13,360 Speaker 1: And it's just so freaking simple that you don't really 690 00:32:13,400 --> 00:32:15,600 Speaker 1: have to think about it too much, which is exactly yeah. Yeah, 691 00:32:15,640 --> 00:32:19,440 Speaker 1: so uh. We talked about the Inflation Reduction Act, which 692 00:32:19,480 --> 00:32:21,720 Speaker 1: we're not going to call the ira A because of 693 00:32:21,880 --> 00:32:24,840 Speaker 1: the confusion that might occur because of that, but that 694 00:32:24,920 --> 00:32:28,560 Speaker 1: officially became law on Tuesday, and there are actually quite 695 00:32:28,560 --> 00:32:31,800 Speaker 1: a few things that will impact everyday Americans who want 696 00:32:31,840 --> 00:32:34,160 Speaker 1: to make some of those things. What do we call it? 697 00:32:34,240 --> 00:32:38,000 Speaker 1: Last week? Green green if if reunification changes to your home, 698 00:32:38,280 --> 00:32:40,680 Speaker 1: I just wanted a new word in urban dictionary, and 699 00:32:40,920 --> 00:32:42,760 Speaker 1: I wanted credited too. How the money we should just 700 00:32:42,800 --> 00:32:45,160 Speaker 1: create a new word every single week. But the federal 701 00:32:45,240 --> 00:32:46,880 Speaker 1: government is willing to help, you know, to pay for 702 00:32:46,920 --> 00:32:49,600 Speaker 1: those upgrades starting next year, and we're going to give 703 00:32:49,640 --> 00:32:53,480 Speaker 1: you a rundown in next week's newsletter, so be sure 704 00:32:53,520 --> 00:32:55,680 Speaker 1: to sign up in order that you don't miss that 705 00:32:55,800 --> 00:32:58,520 Speaker 1: that's going to go out this coming Tuesday, and we're 706 00:32:58,520 --> 00:33:01,080 Speaker 1: gonna break it all down with that newsletter. It's easy 707 00:33:01,120 --> 00:33:02,480 Speaker 1: to get by the way, how to money dot com 708 00:33:02,600 --> 00:33:05,040 Speaker 1: slash newsletter boom, I can't forget that you r l 709 00:33:05,880 --> 00:33:07,960 Speaker 1: email address in and and you got it. By the way, 710 00:33:08,080 --> 00:33:10,720 Speaker 1: it's free and it's awesome exactly. We would recommend that 711 00:33:10,760 --> 00:33:12,080 Speaker 1: you sign up. But one of the things that we 712 00:33:12,160 --> 00:33:14,600 Speaker 1: mentioned last week was that a big chunk of electric 713 00:33:14,720 --> 00:33:18,280 Speaker 1: vehicles are not likely to qualify for a tax credit 714 00:33:18,360 --> 00:33:20,840 Speaker 1: under the new law. And we'll actually link to a 715 00:33:21,000 --> 00:33:24,560 Speaker 1: Consumer Reports article in our show notes outlining which vehicles 716 00:33:24,880 --> 00:33:27,560 Speaker 1: are likely to qualify under this new law. Looks like 717 00:33:27,600 --> 00:33:30,080 Speaker 1: the Chevy Bolt, Uh, it's gonna qualify. And if that 718 00:33:30,160 --> 00:33:32,040 Speaker 1: remains true, we're you know, we're talking about folks being 719 00:33:32,040 --> 00:33:35,840 Speaker 1: able to buy a brand new electric vehicle that's going 720 00:33:35,880 --> 00:33:40,240 Speaker 1: to be below that would be impressive, which is super impressive. 721 00:33:40,680 --> 00:33:43,120 Speaker 1: Even your even your ribban's gonna be it looks like 722 00:33:43,200 --> 00:33:45,320 Speaker 1: it's going to be on there, not like all decked out, 723 00:33:45,400 --> 00:33:47,480 Speaker 1: so you can't you can't trick out your Some of 724 00:33:47,520 --> 00:33:49,840 Speaker 1: the four trucks, although we like we're talking about last week, 725 00:33:50,000 --> 00:33:51,600 Speaker 1: those are more expensive. So even though they want more 726 00:33:51,600 --> 00:33:53,640 Speaker 1: expensive qualified for the federal tax credit. Well, the price 727 00:33:53,760 --> 00:33:55,680 Speaker 1: just went up eight grand on those, so it's kind 728 00:33:55,680 --> 00:33:57,640 Speaker 1: of a wash, yeah, exactly, So keep that in mind 729 00:33:57,800 --> 00:33:59,600 Speaker 1: as you are if you happen to be in that 730 00:33:59,640 --> 00:34:02,080 Speaker 1: position you're and you're thinking about an electric vehicle in 731 00:34:02,160 --> 00:34:04,960 Speaker 1: the future, UH, it is important to know of some 732 00:34:05,080 --> 00:34:09,000 Speaker 1: of these different tax incentives that exists. And one final 733 00:34:09,080 --> 00:34:11,600 Speaker 1: thing to mention on today's episode, just a quick credit 734 00:34:11,640 --> 00:34:13,680 Speaker 1: card recommendation for you guys. This is a credit card 735 00:34:13,680 --> 00:34:16,000 Speaker 1: that we have mentioned for years now as being one 736 00:34:16,040 --> 00:34:19,680 Speaker 1: of the best, uh everyday cash back credit cards for 737 00:34:19,960 --> 00:34:22,160 Speaker 1: folks to use. And it's not that you can't get 738 00:34:22,200 --> 00:34:26,120 Speaker 1: super intelligent and hyper focused with the best credit card 739 00:34:26,160 --> 00:34:28,320 Speaker 1: for spending on at the gas station and for the 740 00:34:28,360 --> 00:34:30,480 Speaker 1: best credit card when you're dining out, or the best 741 00:34:30,520 --> 00:34:33,600 Speaker 1: credit card for travel, but for every other purchase, using 742 00:34:33,680 --> 00:34:36,600 Speaker 1: some sort of generic two percent cash back card is 743 00:34:36,640 --> 00:34:40,319 Speaker 1: really smart. And the City Double Cash has always been 744 00:34:40,360 --> 00:34:42,040 Speaker 1: one of that we've recommended mat but it's never had 745 00:34:42,080 --> 00:34:43,719 Speaker 1: a sign up bonus, at least that I know of 746 00:34:44,239 --> 00:34:46,760 Speaker 1: until now. And so yeah, you can get two hundred 747 00:34:46,800 --> 00:34:49,279 Speaker 1: bucks uh for signing up for this card and meeting 748 00:34:49,440 --> 00:34:52,160 Speaker 1: us spend amounts in the first few months, and so 749 00:34:52,600 --> 00:34:55,319 Speaker 1: no annual fee, two percent cash back on everything you buy. 750 00:34:55,880 --> 00:34:57,880 Speaker 1: It's a killer card. Willing to industrc cards. It's it's 751 00:34:57,920 --> 00:35:00,880 Speaker 1: one of those that depending on card you're using. Now, 752 00:35:01,000 --> 00:35:03,520 Speaker 1: let's say you could be missing out on meaningful cash 753 00:35:03,560 --> 00:35:05,799 Speaker 1: rewards for something you're buying every day, and when there's 754 00:35:05,840 --> 00:35:07,719 Speaker 1: a sweet signing bonus on top of it, it's like 755 00:35:08,239 --> 00:35:10,400 Speaker 1: slam dunk. It's a no writer especially. Yeah, this is 756 00:35:10,440 --> 00:35:13,160 Speaker 1: like one of those. This is an evergreen kind of cards. 757 00:35:13,200 --> 00:35:15,520 Speaker 1: It's always been really solid, and this is the card 758 00:35:15,520 --> 00:35:17,560 Speaker 1: I use for all of my online purchases. I go 759 00:35:17,719 --> 00:35:19,919 Speaker 1: laser focus, so I've got other cards. I've got better 760 00:35:19,960 --> 00:35:25,880 Speaker 1: cards for my in person purchases, which are typically groceries, gas, restaurants, 761 00:35:26,280 --> 00:35:28,399 Speaker 1: But for all of the online purchases, I always used 762 00:35:28,480 --> 00:35:31,680 Speaker 1: the City Double Cash card. That's a system that works, 763 00:35:31,719 --> 00:35:34,279 Speaker 1: at least for me. And speaking of systems, obviously you 764 00:35:34,360 --> 00:35:37,359 Speaker 1: need to make sure that you are not going into debt. 765 00:35:37,800 --> 00:35:40,400 Speaker 1: We enjoy the perks of credit cards, but only if 766 00:35:40,440 --> 00:35:43,359 Speaker 1: you are not paying any money and interest. If you can, 767 00:35:43,600 --> 00:35:46,360 Speaker 1: if you can promise us that, then you have our blessing. 768 00:35:46,600 --> 00:35:48,520 Speaker 1: But if you can't do that, then just just skip 769 00:35:48,560 --> 00:35:50,880 Speaker 1: it all together exactly. Don't get the credit cards if 770 00:35:50,920 --> 00:35:53,000 Speaker 1: you can't use it properly. Um, and a lot of 771 00:35:53,000 --> 00:35:55,719 Speaker 1: people trick themselves into thinking that cool, I'll get this card, 772 00:35:55,719 --> 00:35:57,279 Speaker 1: don't get the rewards, but then they don't pay it 773 00:35:57,280 --> 00:35:58,520 Speaker 1: off in full and they end up paying more in 774 00:35:58,560 --> 00:36:01,840 Speaker 1: interest and it ends up being a losing proposition. So 775 00:36:02,200 --> 00:36:04,439 Speaker 1: we don't we don't want you in that position. But Matt, 776 00:36:04,480 --> 00:36:06,920 Speaker 1: that's gonna do it for this episode again. Go sign 777 00:36:07,000 --> 00:36:08,640 Speaker 1: up for the Hot to Money newsletter so you can 778 00:36:08,680 --> 00:36:11,440 Speaker 1: get some more money saving info broken down for you 779 00:36:11,440 --> 00:36:14,600 Speaker 1: about the Inflation Reduction Act next week, and come back 780 00:36:14,640 --> 00:36:16,880 Speaker 1: here on Monday because we've got a killer, ask kind 781 00:36:16,880 --> 00:36:18,799 Speaker 1: of money episode lined up for you, and we hope 782 00:36:18,840 --> 00:36:21,279 Speaker 1: you have a great weekend. And Matt, I guess that's 783 00:36:21,280 --> 00:36:23,560 Speaker 1: going to do it. So until next time, best Friends Out, 784 00:36:23,680 --> 00:36:24,680 Speaker 1: Best Friends Out,