1 00:00:00,120 --> 00:00:03,240 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,360 --> 00:00:06,040 Speaker 1: and today we're talking bank blow ups. If your money 3 00:00:06,080 --> 00:00:28,880 Speaker 1: is safe and plastered purchases, that's right, buddy. This is 4 00:00:28,920 --> 00:00:32,120 Speaker 1: a Friday Flights and we are gonna just take a 5 00:00:32,120 --> 00:00:34,800 Speaker 1: minute and talk about the bank blow ups. You know, 6 00:00:34,800 --> 00:00:36,920 Speaker 1: I'm actually kind of torn because on one hand, I 7 00:00:36,920 --> 00:00:40,159 Speaker 1: don't want to talk about this because it has not 8 00:00:40,360 --> 00:00:43,440 Speaker 1: yet affected most individuals out there and how it is 9 00:00:43,479 --> 00:00:45,600 Speaker 1: that they should handle their money, what they should be doing. 10 00:00:45,840 --> 00:00:47,440 Speaker 1: But on the other hand, it's probably good for us 11 00:00:47,479 --> 00:00:50,080 Speaker 1: to cover this and make sure folks are aware that 12 00:00:50,640 --> 00:00:52,600 Speaker 1: this is maybe something to keep an eye on. Yeah, 13 00:00:52,600 --> 00:00:54,920 Speaker 1: I mean, I think the media has fueled a bit 14 00:00:54,960 --> 00:00:57,080 Speaker 1: of a frenzy kind of when we're talking about what 15 00:00:57,200 --> 00:00:59,720 Speaker 1: happened at SVB, and but we need to add some 16 00:01:00,040 --> 00:01:03,320 Speaker 1: think sanity to the conversation and really help individuals like 17 00:01:03,320 --> 00:01:04,720 Speaker 1: what does this mean for your money? Because a lot 18 00:01:04,760 --> 00:01:07,120 Speaker 1: of people are making decisions based on the headlines that 19 00:01:07,120 --> 00:01:09,040 Speaker 1: they're seeing, based on some of the articles that they're reading, 20 00:01:09,240 --> 00:01:12,440 Speaker 1: or maybe they're not making decisions, but the emotions are 21 00:01:12,760 --> 00:01:15,120 Speaker 1: kind of like at eleven and they're feeling maybe a 22 00:01:15,160 --> 00:01:17,920 Speaker 1: little bit nervous, and so hopefully we can alleviate some 23 00:01:17,959 --> 00:01:19,640 Speaker 1: of those fears that you might have. Specifically, one of 24 00:01:19,680 --> 00:01:21,840 Speaker 1: the questions people are we're getting emails about should I 25 00:01:21,840 --> 00:01:23,440 Speaker 1: be leaving my bank and going to another one. We'll 26 00:01:23,440 --> 00:01:25,240 Speaker 1: talk about that in just a second, sat before we 27 00:01:25,280 --> 00:01:27,800 Speaker 1: get to that, though, Matt, I wanted to mention I was, 28 00:01:27,959 --> 00:01:29,800 Speaker 1: as I am prone to do, waltzing through the halls 29 00:01:29,880 --> 00:01:33,480 Speaker 1: of Costco this past week with my kiddos and halls 30 00:01:34,120 --> 00:01:39,320 Speaker 1: the aisles hallowed between the rat right, and I saw 31 00:01:39,560 --> 00:01:42,320 Speaker 1: an end cap for a mattress that I had recently 32 00:01:42,360 --> 00:01:45,720 Speaker 1: purchased at Costco. And I know what endcap means. It 33 00:01:45,760 --> 00:01:48,720 Speaker 1: means this whole sale, and so I was like, oh wow, 34 00:01:48,760 --> 00:01:50,920 Speaker 1: one hundred dollars off and I had bought it within 35 00:01:50,960 --> 00:01:53,440 Speaker 1: the last thirty days, which even if you did, I 36 00:01:53,480 --> 00:01:55,400 Speaker 1: guess I could go through the hassle of like taking 37 00:01:55,400 --> 00:01:57,360 Speaker 1: the mattress, in returning it and then buying it again. 38 00:01:57,680 --> 00:01:59,400 Speaker 1: I don't want to do that, not something you're gonna 39 00:01:59,440 --> 00:02:02,160 Speaker 1: do with a mattater is already sleeping right. But fortunate 40 00:02:02,160 --> 00:02:03,560 Speaker 1: I didn't have to do that. I literally just went 41 00:02:03,640 --> 00:02:05,520 Speaker 1: up to the front counter, like had both my girls 42 00:02:05,520 --> 00:02:07,560 Speaker 1: with me, and I was like, ladies were leaving the 43 00:02:07,600 --> 00:02:09,600 Speaker 1: card here, we'll come right back for it. We're going 44 00:02:09,680 --> 00:02:11,480 Speaker 1: up there. I don't want to forget about asking for 45 00:02:11,520 --> 00:02:14,400 Speaker 1: this refund. It took them thirty seconds, you know, maybe 46 00:02:14,440 --> 00:02:17,799 Speaker 1: a minute to actually process that refund. So easy. So yeah, 47 00:02:17,800 --> 00:02:19,520 Speaker 1: if there's a price drop, I just want to say, 48 00:02:19,560 --> 00:02:23,200 Speaker 1: if there's a price drop, and you at Costco in particular, 49 00:02:23,200 --> 00:02:25,080 Speaker 1: and you can ask it of the retailers, that's part 50 00:02:25,120 --> 00:02:27,240 Speaker 1: of the art of asking a discount for a discount 51 00:02:27,240 --> 00:02:29,520 Speaker 1: that we always talk about. But at Costco, it's like 52 00:02:29,560 --> 00:02:31,000 Speaker 1: you don't even have to ask. You just have to say, Hey, 53 00:02:31,040 --> 00:02:32,959 Speaker 1: I bought this item, it's now on sale. Can you 54 00:02:33,000 --> 00:02:36,119 Speaker 1: please refund the difference? They're like, yeah, sure done. That's awesome, dude, 55 00:02:36,200 --> 00:02:37,880 Speaker 1: Yes it was it a special brand? Was it like 56 00:02:37,919 --> 00:02:40,519 Speaker 1: a I've never purchased a mattress at Costco? So it 57 00:02:40,600 --> 00:02:43,280 Speaker 1: is a Kirkland sig mattress or is it like a 58 00:02:43,320 --> 00:02:45,480 Speaker 1: Certa or something like? Will they harry a bunch of 59 00:02:45,480 --> 00:02:47,520 Speaker 1: different brands? And I don't think they have a Kirkland 60 00:02:47,520 --> 00:02:49,800 Speaker 1: signature brand. If they did, I probably would buy that, Okay, 61 00:02:49,800 --> 00:02:53,320 Speaker 1: but no, this is curious if they no form, no perform. Okay, yeah, 62 00:02:53,320 --> 00:02:55,200 Speaker 1: I guess I was curious if they drop prices more 63 00:02:55,240 --> 00:02:58,239 Speaker 1: often on some of their name brand stuff. But oftentimes 64 00:02:58,520 --> 00:03:02,519 Speaker 1: some of those larger items are oftentimes other companies. They're 65 00:03:02,520 --> 00:03:05,160 Speaker 1: not the more generic staples where oftentimes you do see 66 00:03:05,160 --> 00:03:09,120 Speaker 1: the Kirkland Kirklands signature. Be curious to see Kirkland signature 67 00:03:09,240 --> 00:03:12,519 Speaker 1: make a bed. I would definitely give it as like 68 00:03:12,560 --> 00:03:16,040 Speaker 1: I'd sleep on that. But this is our Friday flight 69 00:03:16,080 --> 00:03:17,680 Speaker 1: and we are going to talk about a number of 70 00:03:17,720 --> 00:03:22,000 Speaker 1: different headlines, not just Silicon Valley Bank, but we are 71 00:03:22,040 --> 00:03:25,600 Speaker 1: definitely going to kick the show off with SVB because 72 00:03:25,639 --> 00:03:29,200 Speaker 1: things got kind of crazy right after our last Friday 73 00:03:29,200 --> 00:03:32,440 Speaker 1: flight came out last week. Bank failures and a potential 74 00:03:32,600 --> 00:03:36,040 Speaker 1: contagion of bank runs. I mean, these were not on 75 00:03:36,080 --> 00:03:38,360 Speaker 1: the radars of many folks at the beginning of March, 76 00:03:38,440 --> 00:03:41,600 Speaker 1: but now they're grabbing all the headlines. And it's not 77 00:03:41,640 --> 00:03:44,920 Speaker 1: just SVB but Signature Bank as well. They've gone belly 78 00:03:45,000 --> 00:03:49,440 Speaker 1: up seemingly overnight. We were unsure, actually until late on Sunday, 79 00:03:49,480 --> 00:03:52,840 Speaker 1: about whether all deposits would be returned back to customers 80 00:03:53,200 --> 00:03:56,120 Speaker 1: or if just the insured funds we're going to be 81 00:03:56,280 --> 00:03:59,840 Speaker 1: covered by that FDIC coverage. But the Feds they've stepped 82 00:03:59,880 --> 00:04:02,960 Speaker 1: in and it turns out that all depositors regained access 83 00:04:02,960 --> 00:04:05,120 Speaker 1: to their money earlier this week on Monday. If you 84 00:04:05,120 --> 00:04:08,040 Speaker 1: want to split hairs, it is important to get the 85 00:04:08,080 --> 00:04:11,200 Speaker 1: semantics right here, the right choice of words. And this 86 00:04:11,320 --> 00:04:16,799 Speaker 1: was not a technical bailout of SVB, that actual institution. 87 00:04:16,920 --> 00:04:19,919 Speaker 1: It went up in flames. They not literally but figured, 88 00:04:20,320 --> 00:04:23,920 Speaker 1: yeah it has gone and stock and the bondholders, they 89 00:04:23,920 --> 00:04:27,240 Speaker 1: will not be made whole the investors of that actual bank. Rather, 90 00:04:27,400 --> 00:04:31,159 Speaker 1: it was a use of the FDIC's deposit Insurance Fund 91 00:04:31,560 --> 00:04:34,799 Speaker 1: to make depositors whole, including a lot of small businesses 92 00:04:34,800 --> 00:04:37,320 Speaker 1: that would have otherwise not been able to make payroll. 93 00:04:37,360 --> 00:04:40,680 Speaker 1: This could have had knock on effects, in particular throughout 94 00:04:40,680 --> 00:04:43,200 Speaker 1: the tech industry, especially Yeah, right there in silicon value 95 00:04:43,279 --> 00:04:44,880 Speaker 1: could have seen layoffs. We could have seen some of 96 00:04:44,880 --> 00:04:47,840 Speaker 1: these startups going completely bust overnight. It would have been 97 00:04:47,839 --> 00:04:51,160 Speaker 1: a tough situation. But that's really not what people want 98 00:04:51,200 --> 00:04:53,200 Speaker 1: to know. I mean, they've a lot of headlines have 99 00:04:53,279 --> 00:04:55,560 Speaker 1: been background about that. That's the background, that's the set 100 00:04:55,680 --> 00:04:59,080 Speaker 1: up the funds that the FDIC has at its disposal. 101 00:04:59,120 --> 00:05:00,840 Speaker 1: Those are pre funded by banks. By the way, Matt, 102 00:05:00,880 --> 00:05:03,240 Speaker 1: I think it's just why you're saying it's not a bailout. 103 00:05:03,279 --> 00:05:06,480 Speaker 1: This is insurance basically that all the banks help to fund. 104 00:05:06,760 --> 00:05:08,839 Speaker 1: So yeah, we're not talking about a bailout in the 105 00:05:08,880 --> 00:05:10,840 Speaker 1: traditional sense of the word. But I think people want 106 00:05:10,839 --> 00:05:13,960 Speaker 1: to know also what happens to banking credit unions right, 107 00:05:14,040 --> 00:05:17,159 Speaker 1: and well, the FED has introduced additional safeguards to really 108 00:05:17,160 --> 00:05:19,880 Speaker 1: try to strengthen public confidence in the banking system right now, 109 00:05:20,240 --> 00:05:22,560 Speaker 1: And basically, what they're trying to say, they're sending a 110 00:05:22,600 --> 00:05:25,400 Speaker 1: signal that this is not the Great Recession on repeat. 111 00:05:25,440 --> 00:05:27,839 Speaker 1: And I completely agree. They're trying to make sure that 112 00:05:27,880 --> 00:05:30,640 Speaker 1: this doesn't turn into a full blown panic, and they're 113 00:05:30,680 --> 00:05:35,240 Speaker 1: taking the steps necessary to reassure banking customers nationwide that 114 00:05:35,240 --> 00:05:39,200 Speaker 1: that's the case. But this isn't anything near what will 115 00:05:39,200 --> 00:05:42,680 Speaker 1: you experienced fifteen years ago, right, There's nothing to lead 116 00:05:42,760 --> 00:05:44,440 Speaker 1: us to believe that. Well, what does this mean for 117 00:05:44,480 --> 00:05:47,840 Speaker 1: individual savers and small businesses? Though? Well, I think first 118 00:05:47,839 --> 00:05:50,680 Speaker 1: it means that the system works right. No depositor, that's right, 119 00:05:50,760 --> 00:05:54,119 Speaker 1: has ever lost any FDIC or in CUA insured money, 120 00:05:54,240 --> 00:05:57,800 Speaker 1: and so FDIC Federal Deposit Insurance Corporation. That's what the 121 00:05:57,839 --> 00:06:01,280 Speaker 1: banks have in CUA. That applies to money that you 122 00:06:01,320 --> 00:06:03,400 Speaker 1: have at a credit union. Up to two hundred and 123 00:06:03,440 --> 00:06:06,000 Speaker 1: fifty k is insured, so you don't have to worry 124 00:06:06,080 --> 00:06:08,320 Speaker 1: about that savings no matter which bank you're at, as 125 00:06:08,360 --> 00:06:10,880 Speaker 1: long as it's FDIC insured. This system has been around 126 00:06:10,920 --> 00:06:14,239 Speaker 1: for ninety years and it hasn't failed anybody. It's important 127 00:06:14,240 --> 00:06:16,520 Speaker 1: to note that, so there's good reason to be confident 128 00:06:16,560 --> 00:06:18,800 Speaker 1: in the banking system of this country. And it's also 129 00:06:18,839 --> 00:06:20,520 Speaker 1: important to only do business, by the way, with the 130 00:06:20,560 --> 00:06:23,440 Speaker 1: bank that is insured by the FDIC, or with a 131 00:06:23,440 --> 00:06:26,480 Speaker 1: credit union that's insured by NCUA, because there are lots 132 00:06:26,480 --> 00:06:30,400 Speaker 1: of banks. We mentioned Compound Bank on the podcast recently, Matt, 133 00:06:30,640 --> 00:06:33,880 Speaker 1: which it's masquerading around like it's a bank, and there 134 00:06:33,880 --> 00:06:36,719 Speaker 1: are other online banks doing something very similar. Bank with 135 00:06:36,760 --> 00:06:38,960 Speaker 1: a c Y that's how you know it's not legit. 136 00:06:39,000 --> 00:06:40,960 Speaker 1: It makes you think it's Swiss or something fancy, and 137 00:06:41,000 --> 00:06:43,760 Speaker 1: but really it's just a complete piece of junk and 138 00:06:43,920 --> 00:06:46,479 Speaker 1: it is more of an investment vehicle than a bank, 139 00:06:46,520 --> 00:06:49,120 Speaker 1: even though they want you to think based on the 140 00:06:49,200 --> 00:06:51,839 Speaker 1: website name, based on kind of all the ways that 141 00:06:51,880 --> 00:06:54,919 Speaker 1: they're describing what you're what you're doing, that this is 142 00:06:54,960 --> 00:06:56,960 Speaker 1: a bank, but it's not. And so if you want 143 00:06:56,960 --> 00:06:59,400 Speaker 1: to invest, great, you should be investing, right, but you 144 00:06:59,400 --> 00:07:01,720 Speaker 1: don't want to be investing with the dollars that you're saving. 145 00:07:02,080 --> 00:07:05,279 Speaker 1: And so just FDIC insurance is paramount. If you're not 146 00:07:05,320 --> 00:07:07,920 Speaker 1: sure whether the bank that you do business with has 147 00:07:08,040 --> 00:07:10,880 Speaker 1: FDIC insurance, go to FDIC dot com. You can find 148 00:07:10,920 --> 00:07:13,520 Speaker 1: that out really quickly. And I can't imagine by the 149 00:07:13,560 --> 00:07:15,920 Speaker 1: way that there are lots of how the money listeners 150 00:07:15,960 --> 00:07:18,280 Speaker 1: sitting there with millions and millions of dollars in savings, 151 00:07:18,600 --> 00:07:20,880 Speaker 1: but if you do fall into that category. There was 152 00:07:20,960 --> 00:07:23,760 Speaker 1: a basketball player, Matt Jannis onto the Kumpo. I don't 153 00:07:23,760 --> 00:07:26,400 Speaker 1: know if I'm pronouncing that right, but he's he's I 154 00:07:26,440 --> 00:07:29,760 Speaker 1: definitely would have butchered that well. He word came out 155 00:07:29,760 --> 00:07:32,239 Speaker 1: that he has like fifty different accounts are spread across 156 00:07:32,360 --> 00:07:35,200 Speaker 1: different institutions because he wanted to make sure, like a 157 00:07:35,200 --> 00:07:38,080 Speaker 1: smart guy, that he has that all of his money 158 00:07:38,160 --> 00:07:40,120 Speaker 1: is insured. And so I think a lot of people 159 00:07:40,160 --> 00:07:43,320 Speaker 1: if if you are being risky having more money on 160 00:07:43,360 --> 00:07:46,440 Speaker 1: hand than is actually insurable by the FDIC you're gonna 161 00:07:46,440 --> 00:07:48,360 Speaker 1: want to make sure to have multiple accounts at different 162 00:07:48,360 --> 00:07:50,560 Speaker 1: places so that you have the full amount of coverage 163 00:07:50,600 --> 00:07:52,600 Speaker 1: just in case. That's right. Yeah, he's Greek, right, I 164 00:07:52,640 --> 00:07:54,880 Speaker 1: think I think that's a part of his commission of 165 00:07:55,000 --> 00:07:58,320 Speaker 1: the Greek freak or something of banks and not wanting 166 00:07:58,360 --> 00:08:00,960 Speaker 1: to lose any of his money. Yeah, but yeah, most 167 00:08:01,000 --> 00:08:03,400 Speaker 1: individuals out there really shouldn't have more than two hundred 168 00:08:03,400 --> 00:08:06,640 Speaker 1: and fifty thousand dollars in cash on hand. I'm not 169 00:08:06,720 --> 00:08:09,760 Speaker 1: sure what that basketball player's goals are, but he should 170 00:08:10,040 --> 00:08:13,480 Speaker 1: likely be investing more of those dollars. And like you 171 00:08:13,520 --> 00:08:16,160 Speaker 1: mentioned too, we have had listeners writing to us to 172 00:08:16,240 --> 00:08:19,240 Speaker 1: ask if their specific bank was okay, right, Like, are 173 00:08:19,240 --> 00:08:20,880 Speaker 1: the ones that we recommend here on the show are 174 00:08:20,920 --> 00:08:24,440 Speaker 1: they still safe? Because we're seeing a lot unfortunately, this 175 00:08:24,480 --> 00:08:27,000 Speaker 1: is true. We're seeing a lot of money flowing out 176 00:08:27,080 --> 00:08:30,920 Speaker 1: of smaller banks and into the bigger banks like Chase 177 00:08:30,960 --> 00:08:33,720 Speaker 1: and Wells, Fargo, Bank of America. Billions and billions, so 178 00:08:33,800 --> 00:08:36,720 Speaker 1: much money and billions of dollars. I hate to see it. Yeah, 179 00:08:36,760 --> 00:08:39,480 Speaker 1: So the question is, then, should you be moving your 180 00:08:39,480 --> 00:08:41,640 Speaker 1: money to one of the bigger banks? We Jill just 181 00:08:41,760 --> 00:08:44,679 Speaker 1: answered your question he hates to see it. We don't 182 00:08:44,720 --> 00:08:47,680 Speaker 1: think you should be doing that. Our advice for where 183 00:08:47,840 --> 00:08:50,840 Speaker 1: and how you bank that remains the same. The best 184 00:08:50,880 --> 00:08:53,240 Speaker 1: online banks, they still pay the best rates, and they 185 00:08:53,240 --> 00:08:55,520 Speaker 1: come with the feuse fees, and of course all the 186 00:08:55,559 --> 00:08:57,559 Speaker 1: banks that we mentioned here on the show, they are 187 00:08:57,679 --> 00:09:01,440 Speaker 1: FDIC insured. And so let's answer the question is your 188 00:09:01,440 --> 00:09:05,120 Speaker 1: money safe? Most definitely, assuming you have two hundred fifty 189 00:09:05,160 --> 00:09:07,400 Speaker 1: thousan dollars or less and you're with a bank that 190 00:09:07,480 --> 00:09:10,880 Speaker 1: is FDIC ensure. I think I saw that the Google 191 00:09:11,520 --> 00:09:15,120 Speaker 1: reporter that the phrase is my money safe? Increased by 192 00:09:15,280 --> 00:09:19,360 Speaker 1: forty three in one day. I believe it. But the 193 00:09:19,520 --> 00:09:21,559 Speaker 1: idea of moving your money to one of these bigger 194 00:09:21,559 --> 00:09:24,880 Speaker 1: banks because they seem safer or more solid is just 195 00:09:24,960 --> 00:09:27,720 Speaker 1: an emotional reaction. And I was, I feel like we 196 00:09:27,720 --> 00:09:31,160 Speaker 1: need an analogy here, and so I thought of an umbrella, 197 00:09:31,280 --> 00:09:33,040 Speaker 1: because you can go out and buy yourself a brand 198 00:09:33,040 --> 00:09:36,199 Speaker 1: new umbrella that gets good reviews, but it can be 199 00:09:36,360 --> 00:09:38,960 Speaker 1: incredibly affordable, and you know what, you use that umbrella, 200 00:09:39,000 --> 00:09:41,520 Speaker 1: It's going to keep your head dry, You're not going 201 00:09:41,600 --> 00:09:44,120 Speaker 1: to get wet. Or you could go to like Name 202 00:09:44,160 --> 00:09:46,240 Speaker 1: and Marcus and drop like hundreds of dollars on a 203 00:09:46,280 --> 00:09:49,400 Speaker 1: really fancy umbrella, and guess what, it'll also keep your 204 00:09:49,400 --> 00:09:52,720 Speaker 1: head dry. Well, except for that, you just paid way 205 00:09:52,760 --> 00:09:55,640 Speaker 1: more money for that umbrella. And basically that's what these 206 00:09:55,679 --> 00:09:58,280 Speaker 1: big banks are doing. They are sticking you with fies. 207 00:09:58,400 --> 00:10:00,840 Speaker 1: They are not paying you as high of a rate 208 00:10:01,320 --> 00:10:05,560 Speaker 1: in interest, both the ciats and allies out there, as 209 00:10:05,559 --> 00:10:07,600 Speaker 1: well as Chase and some of these bigger banks. You're 210 00:10:07,600 --> 00:10:09,920 Speaker 1: looking at two hundred fifty thousand dollars, that doesn't change. 211 00:10:09,960 --> 00:10:12,200 Speaker 1: But Chase has to pay for all those locations, those 212 00:10:12,200 --> 00:10:14,559 Speaker 1: brick and mortars, and all the employees somehow and all 213 00:10:14,559 --> 00:10:16,920 Speaker 1: the advertisements. Yeah, and that's the that's why the fees 214 00:10:16,960 --> 00:10:19,319 Speaker 1: and that's why the interest rates suck on those accounts. 215 00:10:19,360 --> 00:10:21,920 Speaker 1: And so it's funny friend of the show, Ben Carlson, 216 00:10:22,040 --> 00:10:24,199 Speaker 1: in an article he wrote this week, he mentioned in 217 00:10:24,240 --> 00:10:26,720 Speaker 1: footnotes at the bottom, Yeah, I bank with Chase largely 218 00:10:26,720 --> 00:10:28,320 Speaker 1: because they're one of the biggest banks. And it's so 219 00:10:28,360 --> 00:10:30,200 Speaker 1: funny to me that a guy as smart as Ben 220 00:10:30,840 --> 00:10:33,760 Speaker 1: like thinks that's important, because I think that's actually the 221 00:10:34,240 --> 00:10:36,840 Speaker 1: wrong move for most people. It doesn't matter how big 222 00:10:36,880 --> 00:10:39,360 Speaker 1: the bank is or how if it's too quote unquote 223 00:10:39,360 --> 00:10:42,959 Speaker 1: too big to fail because guess what FDIC insurance exists. 224 00:10:43,120 --> 00:10:45,720 Speaker 1: It doesn't change anything, right unless he's a baller. So 225 00:10:45,760 --> 00:10:47,760 Speaker 1: maybe he's got more than two hundred fifty K in 226 00:10:47,800 --> 00:10:50,400 Speaker 1: the bank and said that's maybe even still that is, 227 00:10:50,600 --> 00:10:52,280 Speaker 1: you know, not the brag les's kind of what he's 228 00:10:52,320 --> 00:10:54,280 Speaker 1: saying on the side. Well, even still, even if that's 229 00:10:54,320 --> 00:10:55,960 Speaker 1: the case, the answer is not to put it with 230 00:10:56,000 --> 00:10:58,040 Speaker 1: one of the two big to fail institutions to do 231 00:10:58,080 --> 00:10:59,839 Speaker 1: what Jannis did, and it is to put it a 232 00:11:00,280 --> 00:11:02,559 Speaker 1: bunch of different institutions. And it's also the simplest way 233 00:11:02,559 --> 00:11:04,120 Speaker 1: to do. It's important to mention that there are other 234 00:11:04,160 --> 00:11:05,800 Speaker 1: ways to get coverage on more than two hundred and 235 00:11:05,800 --> 00:11:08,680 Speaker 1: fifty thousand dollars too, because example, if you're married, you 236 00:11:08,679 --> 00:11:10,600 Speaker 1: can have an account in each of your names, plus 237 00:11:10,640 --> 00:11:13,320 Speaker 1: a joint account, which would give you total a million 238 00:11:13,360 --> 00:11:15,520 Speaker 1: dollars worth of coverage on your assets. Right, so two 239 00:11:15,559 --> 00:11:18,680 Speaker 1: hundred and fifty each individual lend, the joint account has 240 00:11:18,679 --> 00:11:21,720 Speaker 1: five hund exactly. Yeah, so you can do that. Investment 241 00:11:21,720 --> 00:11:24,560 Speaker 1: firms like Fidelity and Schwab are great choices for banking. 242 00:11:24,600 --> 00:11:29,120 Speaker 1: Two brokerages like Fidelity, they join with FDIC insured banks 243 00:11:29,160 --> 00:11:32,120 Speaker 1: to increase the coverage they offered to clients in cash 244 00:11:32,160 --> 00:11:35,520 Speaker 1: management accounts or what people call cmas, and so Fidelity 245 00:11:35,760 --> 00:11:38,680 Speaker 1: cmas can offer more than a million dollars in production. 246 00:11:38,800 --> 00:11:41,680 Speaker 1: So it's just important to note that the big banks 247 00:11:41,800 --> 00:11:45,160 Speaker 1: do not necessarily equal more security for your money. FDIC 248 00:11:45,679 --> 00:11:49,600 Speaker 1: insurance is safety enough. We're still not big fans of 249 00:11:49,640 --> 00:11:52,120 Speaker 1: the big banks for doing banking. Yeah, maybe they've got 250 00:11:52,120 --> 00:11:54,280 Speaker 1: great credit card products from time to time, but not 251 00:11:54,320 --> 00:11:57,559 Speaker 1: for your banking needs. The best online banks that we've 252 00:11:57,600 --> 00:12:00,520 Speaker 1: always talked about continue to be our favorites in the space, 253 00:12:00,640 --> 00:12:02,439 Speaker 1: that's right. Yeah, And you know there are some other 254 00:12:02,480 --> 00:12:04,640 Speaker 1: solutions out there though, for some of the different small 255 00:12:04,640 --> 00:12:07,880 Speaker 1: businesses who do have larger deposits or even I guess 256 00:12:07,920 --> 00:12:11,120 Speaker 1: individuals who have large sums of money. But it makes 257 00:12:11,120 --> 00:12:13,240 Speaker 1: me think of Roku, for instance, they had almost five 258 00:12:13,320 --> 00:12:17,760 Speaker 1: hundred million dollars in cash at SVB. Yeah, they were 259 00:12:17,760 --> 00:12:20,800 Speaker 1: going to be screwed if the fence didn't come through 260 00:12:20,800 --> 00:12:22,760 Speaker 1: in the clutches. Yeah. So I mean, moving forward, this 261 00:12:22,920 --> 00:12:27,480 Speaker 1: just reveals a specific particular need for small businesses to 262 00:12:27,520 --> 00:12:30,360 Speaker 1: be able to have more insurance coverage. I don't know, 263 00:12:30,400 --> 00:12:32,760 Speaker 1: maybe that will be something that we see, something that 264 00:12:32,840 --> 00:12:35,360 Speaker 1: changes over time. But there's also a product for that 265 00:12:35,440 --> 00:12:37,480 Speaker 1: on the market as well. And so if you are 266 00:12:37,480 --> 00:12:40,480 Speaker 1: an institution or an individual with large sums of money, 267 00:12:40,520 --> 00:12:43,360 Speaker 1: you need to know about Entrofy. We'll make sure to 268 00:12:43,400 --> 00:12:44,680 Speaker 1: link to that in the show notes. But this is 269 00:12:44,679 --> 00:12:47,719 Speaker 1: a service that allows you to deposit bigger chunks of 270 00:12:48,120 --> 00:12:51,160 Speaker 1: money and like literally like in the millions of dollars, 271 00:12:51,640 --> 00:12:54,640 Speaker 1: but then via this network, they disperse your funds in 272 00:12:54,720 --> 00:12:58,240 Speaker 1: two hundred and fifty thousand dollars increments to different FDIC 273 00:12:58,520 --> 00:13:02,400 Speaker 1: insured panks, different stitutions. Does that mean it's great? It 274 00:13:02,440 --> 00:13:05,840 Speaker 1: basically makes it just simpler to manage really large sums 275 00:13:05,840 --> 00:13:07,640 Speaker 1: of money if that happens to be the case for 276 00:13:07,679 --> 00:13:11,559 Speaker 1: you and you don't want to open fifty different bank accounts. Yeah. 277 00:13:11,600 --> 00:13:13,360 Speaker 1: By the way, when you were talking about Umbrella's earlier, 278 00:13:13,400 --> 00:13:15,320 Speaker 1: I was about to comment, but I didn't. But you 279 00:13:15,360 --> 00:13:17,920 Speaker 1: know Ronnie Chang, the comedian that he'd had the stand 280 00:13:17,960 --> 00:13:20,280 Speaker 1: up special where basically he's like talks about him invading 281 00:13:20,280 --> 00:13:23,480 Speaker 1: the US. Yes, he's very funny. I forgot the name 282 00:13:23,480 --> 00:13:25,559 Speaker 1: of Recently, he was on a podcast or something and 283 00:13:25,600 --> 00:13:27,360 Speaker 1: he talked about how much he hates umbrellas, and I 284 00:13:27,400 --> 00:13:29,719 Speaker 1: gotta say I'm with him. Get a hooded like a 285 00:13:29,800 --> 00:13:32,920 Speaker 1: hooded rain jacket instead. Umbrellas are so annoying. Let's just 286 00:13:32,960 --> 00:13:35,199 Speaker 1: ditch umbrellas all together. But I like the analogy though, 287 00:13:35,280 --> 00:13:37,079 Speaker 1: having a nice, small little umbrella in the car, because 288 00:13:37,320 --> 00:13:40,160 Speaker 1: I'm not gonna pack a like a rain jacket in 289 00:13:40,200 --> 00:13:41,840 Speaker 1: the car, but having an umbrella in the car for 290 00:13:41,880 --> 00:13:43,720 Speaker 1: if you're going to run to the store. I don't mind, 291 00:13:43,760 --> 00:13:45,720 Speaker 1: all right, I don't know. I lose them. They a hater, 292 00:13:45,880 --> 00:13:48,600 Speaker 1: not fun all. One last thing too, I think it's 293 00:13:48,640 --> 00:13:51,520 Speaker 1: probably worth noting Matt on this kind of bank blow 294 00:13:51,600 --> 00:13:53,599 Speaker 1: up front and kind of what happened this week, the 295 00:13:54,080 --> 00:13:58,000 Speaker 1: SVB debacle. It might coax the FED into slowing down 296 00:13:58,240 --> 00:14:00,600 Speaker 1: interest rate hikes. We talked about interest rate on Wednesday 297 00:14:00,600 --> 00:14:04,000 Speaker 1: and how they're impacting everyone's finances, but that is really 298 00:14:04,040 --> 00:14:06,439 Speaker 1: anyone's guests still at this point, like we'll find out 299 00:14:06,480 --> 00:14:09,520 Speaker 1: next week. Yeah, yeah, And so I have a feeling 300 00:14:09,800 --> 00:14:14,080 Speaker 1: with inflation still kind of running wild. There's multiple things 301 00:14:14,080 --> 00:14:15,880 Speaker 1: to think about now for the FED and not just 302 00:14:16,240 --> 00:14:19,720 Speaker 1: crushing inflation. But I still think interest rates are likely 303 00:14:19,760 --> 00:14:22,160 Speaker 1: to go up, just maybe not quite as quickly or 304 00:14:22,240 --> 00:14:27,200 Speaker 1: as high overall. But I am in agreement like inflations, 305 00:14:27,280 --> 00:14:29,680 Speaker 1: it's still the biggest problem that all of Americans are 306 00:14:29,720 --> 00:14:32,080 Speaker 1: dealing with, not just a handful, you know, and granted 307 00:14:32,160 --> 00:14:34,120 Speaker 1: is more than a handful, but other than just some 308 00:14:34,120 --> 00:14:36,600 Speaker 1: of these companies out in Silicon Valley. Yeah, yeah, and 309 00:14:36,920 --> 00:14:38,520 Speaker 1: you know, I think we're gonna hear a lot more 310 00:14:38,520 --> 00:14:41,360 Speaker 1: about FDIC insurance and bank regulations in the coming weeks, 311 00:14:41,360 --> 00:14:44,920 Speaker 1: and maybe changes to some of those programs. There are 312 00:14:44,960 --> 00:14:48,840 Speaker 1: already talks within the FED about changing regulations for some 313 00:14:48,920 --> 00:14:52,120 Speaker 1: of these regional banks and adding more stress tests for 314 00:14:52,240 --> 00:14:55,000 Speaker 1: some of these midsize banks. And so yeah, it's kind 315 00:14:55,000 --> 00:14:56,680 Speaker 1: of anyone's guests. We'll keep talking about it here on 316 00:14:56,680 --> 00:14:59,640 Speaker 1: the show as more information that pertains to people's personal 317 00:14:59,640 --> 00:15:02,240 Speaker 1: finance comes up that we feel like is worth discussing. 318 00:15:02,480 --> 00:15:04,600 Speaker 1: But I think if interest rates don't go up as 319 00:15:04,680 --> 00:15:07,280 Speaker 1: much as it was looking like they would, it might 320 00:15:07,320 --> 00:15:08,920 Speaker 1: make sense for a lot of people to opt to 321 00:15:08,920 --> 00:15:11,720 Speaker 1: take a longer look at CDs and maybe lock in 322 00:15:11,720 --> 00:15:13,400 Speaker 1: a rate for the next eleven to twelve months. And 323 00:15:13,440 --> 00:15:16,480 Speaker 1: we're still seeing CD rates at basically five percent for 324 00:15:16,520 --> 00:15:18,800 Speaker 1: some of those products. I know Capital One had a 325 00:15:18,800 --> 00:15:21,160 Speaker 1: five percent offering, I think ally four point seven five 326 00:15:21,240 --> 00:15:24,200 Speaker 1: something like that, And I think that's a reasonable place 327 00:15:24,200 --> 00:15:27,480 Speaker 1: to put at least some of your money, your savings 328 00:15:27,560 --> 00:15:29,120 Speaker 1: to eke out a bit of a higher rate than 329 00:15:29,120 --> 00:15:31,800 Speaker 1: even what you're getting in your pretty decent high YELD 330 00:15:31,800 --> 00:15:33,960 Speaker 1: savings account right now, that's right. Yeah, But even on 331 00:15:34,040 --> 00:15:35,760 Speaker 1: that note, I just saw that earlier this week, c 332 00:15:35,880 --> 00:15:38,520 Speaker 1: I they up their savings rate from they were at 333 00:15:38,600 --> 00:15:41,360 Speaker 1: four point five percent and now they're at four point two. Yeah, 334 00:15:41,360 --> 00:15:43,440 Speaker 1: so they continue to raise that rate. And this is 335 00:15:43,480 --> 00:15:46,360 Speaker 1: money that you could you don't have to super leave 336 00:15:46,360 --> 00:15:48,840 Speaker 1: it locked away for twelve months. It is amazing that 337 00:15:49,080 --> 00:15:51,320 Speaker 1: rates are are at that level. But Joe, we've got 338 00:15:51,320 --> 00:15:54,920 Speaker 1: a few additional stories we're gonna get to, including buying 339 00:15:55,200 --> 00:15:57,480 Speaker 1: while blitzed. We'll get to that one plus a couple 340 00:15:57,560 --> 00:16:09,520 Speaker 1: others right after this. All right, Matt, we're back. We 341 00:16:09,960 --> 00:16:12,000 Speaker 1: got a chance to talk about the banking collapse. I've 342 00:16:12,040 --> 00:16:14,120 Speaker 1: been reading more about the podcasting collapse, though, have you 343 00:16:14,200 --> 00:16:15,760 Speaker 1: have you seen some of moost headlines? I hope we're 344 00:16:15,800 --> 00:16:18,160 Speaker 1: not a part of that, because I don't want to implode. Now, man, 345 00:16:18,160 --> 00:16:22,400 Speaker 1: we're like the mosquitos that you find an ember. We're 346 00:16:22,440 --> 00:16:25,280 Speaker 1: gonna We're gonna outlets the dinosaurs. That's what I'm hoping. 347 00:16:25,280 --> 00:16:29,080 Speaker 1: They'll still be dino dna. It seems like there's just 348 00:16:29,200 --> 00:16:32,320 Speaker 1: less money coming for like the celebrity class in the 349 00:16:32,360 --> 00:16:36,800 Speaker 1: podcasting world. But hopefully we'll stick around. But so far, 350 00:16:36,880 --> 00:16:39,160 Speaker 1: so good, So far, so good five years plus. Right, 351 00:16:39,240 --> 00:16:41,480 Speaker 1: all right, let's get to our Ludacer's headline of the week. 352 00:16:41,680 --> 00:16:43,120 Speaker 1: I always going to do that in this first part 353 00:16:43,120 --> 00:16:45,080 Speaker 1: of the second half of the Friday Flight. This one 354 00:16:45,120 --> 00:16:48,960 Speaker 1: comes from Fortune magazine and the headline reads chat GPT 355 00:16:49,160 --> 00:16:50,720 Speaker 1: help me make a plan to buy a five hundred 356 00:16:50,720 --> 00:16:53,720 Speaker 1: thousand dollars home And what could go wrong using AI 357 00:16:54,280 --> 00:16:56,800 Speaker 1: to get advice for your money? Absolutely nothing? Right, No, 358 00:16:56,920 --> 00:16:59,480 Speaker 1: it sounds like the perfect plan for everyone. Just to 359 00:16:59,680 --> 00:17:01,680 Speaker 1: turn us off right now, go ask chat GPT all 360 00:17:01,680 --> 00:17:04,560 Speaker 1: your questions. And I know, like the chat chat GPT, 361 00:17:04,680 --> 00:17:08,080 Speaker 1: they just released a much better version and so potentially 362 00:17:08,200 --> 00:17:10,960 Speaker 1: at some point in the future AI replaces you and 363 00:17:11,000 --> 00:17:14,720 Speaker 1: I that actually completely It makes an elite and we yeah, 364 00:17:14,760 --> 00:17:17,800 Speaker 1: we do actually die before we get in that amber cocoon. 365 00:17:17,840 --> 00:17:20,080 Speaker 1: Like you were talking about. But the answer that chat 366 00:17:20,119 --> 00:17:23,359 Speaker 1: GPT gave to this specific question that they detailed in 367 00:17:23,400 --> 00:17:27,320 Speaker 1: this article, well, it had some solid advice alongside some 368 00:17:27,440 --> 00:17:30,560 Speaker 1: really bad advice. So like, for instance, one of the 369 00:17:30,600 --> 00:17:32,960 Speaker 1: answers when it comes came to saving up to buy 370 00:17:33,000 --> 00:17:36,320 Speaker 1: this home, well, chat gbt said, paying off credit card 371 00:17:36,320 --> 00:17:39,360 Speaker 1: debt is great. That was the first recommendation to get 372 00:17:39,359 --> 00:17:40,880 Speaker 1: it gave. It's like, if you've got this high interest 373 00:17:40,880 --> 00:17:42,480 Speaker 1: straight credit card debt, it's time to get rid of it. 374 00:17:42,760 --> 00:17:44,439 Speaker 1: I think that's a good answer. I was like, who 375 00:17:44,640 --> 00:17:47,640 Speaker 1: chop one up to AI? That's a win for chat gpt. 376 00:17:48,320 --> 00:17:50,840 Speaker 1: But then it takes a turn for the worse and 377 00:17:50,920 --> 00:17:55,639 Speaker 1: it suggests refinancing student loan debt to lower the interest rates. 378 00:17:55,960 --> 00:17:59,160 Speaker 1: And so yeah, it is chat gpt just completely unaware 379 00:17:59,160 --> 00:18:00,879 Speaker 1: of what's happening over the last couple of years. Is 380 00:18:00,880 --> 00:18:02,800 Speaker 1: it stuck in like twenty twenty or something like that, 381 00:18:03,040 --> 00:18:05,359 Speaker 1: Like it does it not know that borrowers are currently 382 00:18:05,359 --> 00:18:08,000 Speaker 1: on a payment pause with zero interest occrowing, And does 383 00:18:08,000 --> 00:18:09,840 Speaker 1: it not know that interest rates have gone up a 384 00:18:09,840 --> 00:18:11,760 Speaker 1: lot over the past eighteen months, and that if you 385 00:18:12,040 --> 00:18:14,480 Speaker 1: refinance a student loan right now into a private loan, 386 00:18:14,640 --> 00:18:17,000 Speaker 1: you're losing out on a whole lot of federal benefits. 387 00:18:17,119 --> 00:18:19,960 Speaker 1: I mean, it just makes me think that while AI 388 00:18:20,119 --> 00:18:22,000 Speaker 1: is supposed to be the future, and it might be 389 00:18:22,080 --> 00:18:25,560 Speaker 1: like I'm I don't know, but it's certainly in the 390 00:18:25,600 --> 00:18:28,040 Speaker 1: here and now a place where you might turn for 391 00:18:28,640 --> 00:18:30,080 Speaker 1: a little bit of advice, but you got to be 392 00:18:30,119 --> 00:18:31,800 Speaker 1: weary at the same time. Yeah, I think that was 393 00:18:31,880 --> 00:18:34,000 Speaker 1: definitely some information that missed as it was combing the 394 00:18:34,040 --> 00:18:37,200 Speaker 1: internet for some answers for this author. But there's no 395 00:18:37,240 --> 00:18:39,880 Speaker 1: doubt you know that these newest versions of AI are 396 00:18:40,000 --> 00:18:42,720 Speaker 1: just crazy advanced, dude. Like I saw that GPT four 397 00:18:43,080 --> 00:18:45,600 Speaker 1: even past the bar exam. Literally there is a company 398 00:18:45,600 --> 00:18:50,600 Speaker 1: that's launched an AI Legal Assistant, which is crazy, and 399 00:18:50,640 --> 00:18:54,160 Speaker 1: so like, yeah, we'll see what industry is. GPT four 400 00:18:54,320 --> 00:18:58,080 Speaker 1: is going to disrupt and certainly asking a bot for 401 00:18:58,200 --> 00:19:00,880 Speaker 1: money advice that actually might get you some helpful information, 402 00:19:01,160 --> 00:19:03,560 Speaker 1: but it could also lead you down the wrong path. 403 00:19:03,840 --> 00:19:05,920 Speaker 1: This would maybe just stick to using it to write 404 00:19:05,920 --> 00:19:09,800 Speaker 1: you a nice haiku personalized just for you, a love 405 00:19:09,840 --> 00:19:13,359 Speaker 1: poem for your partner who that's an excellent use. Yeah, 406 00:19:13,400 --> 00:19:14,960 Speaker 1: so then you don't have to do it help But 407 00:19:15,040 --> 00:19:17,520 Speaker 1: if you do ask it for financial advice, make sure 408 00:19:17,560 --> 00:19:20,080 Speaker 1: that you just cross check it right, add in some 409 00:19:20,119 --> 00:19:25,000 Speaker 1: other sources for additional context before blindly following it into 410 00:19:25,160 --> 00:19:28,119 Speaker 1: bankruptcy into the abyss. Right, should I jump off a 411 00:19:28,119 --> 00:19:29,960 Speaker 1: bridge chat GBT? I mean, I don't know what it 412 00:19:29,960 --> 00:19:32,919 Speaker 1: would say. Probably no, but yeah, probably it's it's definitely. 413 00:19:32,960 --> 00:19:34,639 Speaker 1: I've seen a lot of answers that are fraught with 414 00:19:34,680 --> 00:19:36,800 Speaker 1: peril from chat GBT, And so it's not that it 415 00:19:36,840 --> 00:19:39,879 Speaker 1: doesn't have some brilliance and not that there's not a 416 00:19:39,880 --> 00:19:42,639 Speaker 1: whole lot of potential, like you said, for this newfangled 417 00:19:42,680 --> 00:19:45,359 Speaker 1: piece attack, but you know, still when it comes to 418 00:19:45,400 --> 00:19:47,640 Speaker 1: personal finance questions, it seems to be lacking, at least 419 00:19:47,640 --> 00:19:50,560 Speaker 1: for the time being. But Matt, let's talk about spending 420 00:19:50,640 --> 00:19:53,080 Speaker 1: while sauced for a second. Oh, we've had a few 421 00:19:53,119 --> 00:19:57,119 Speaker 1: different different iterations. Do not all like it. Yeah, So 422 00:19:57,160 --> 00:20:00,000 Speaker 1: this one's all about buying will drunk, and it's something 423 00:20:00,080 --> 00:20:02,920 Speaker 1: people should be careful of, right, careful to avoid buying 424 00:20:03,000 --> 00:20:06,359 Speaker 1: things when they're inebriated. We were always fans of drinking 425 00:20:06,359 --> 00:20:08,680 Speaker 1: in moderation anyway. We try to say that as often 426 00:20:08,720 --> 00:20:12,360 Speaker 1: as possible. It's the healthiest and safest approach to booze. 427 00:20:12,440 --> 00:20:16,240 Speaker 1: But apparently drunk shoppers spent an estimated fourteen billion dollars 428 00:20:16,320 --> 00:20:20,040 Speaker 1: last year at personal finance website Finder discovered that one 429 00:20:20,119 --> 00:20:23,200 Speaker 1: in six Americans shop under the influence, and forty five 430 00:20:23,240 --> 00:20:27,440 Speaker 1: million folks bought something while they were yes drunk over 431 00:20:27,480 --> 00:20:30,040 Speaker 1: the past year. Food and clothing were the major culprits. 432 00:20:30,280 --> 00:20:33,240 Speaker 1: Here's a weird stat though, Nineteen percent of folks admitted 433 00:20:33,240 --> 00:20:36,199 Speaker 1: that they bought a pet when they were drunk, which 434 00:20:36,400 --> 00:20:40,560 Speaker 1: just seems crazy and it seems pretty irresponsible. It's pretty irresponsible. 435 00:20:40,600 --> 00:20:43,840 Speaker 1: It's like his entire story is just about irresponsibility, right, 436 00:20:44,359 --> 00:20:46,360 Speaker 1: And some people even ended up buying a new car 437 00:20:46,520 --> 00:20:49,520 Speaker 1: while they were drunk, which I guess it's easier to 438 00:20:49,560 --> 00:20:50,879 Speaker 1: do on the internet now, But do you do you 439 00:20:50,920 --> 00:20:52,679 Speaker 1: really go and drunk to the dealership buy the car. 440 00:20:52,760 --> 00:20:54,800 Speaker 1: It seems kind of crazy. At least you can return 441 00:20:54,920 --> 00:20:58,639 Speaker 1: Carvana Baby, yeah, CarMax, that's true, that's yeah. Online shopping, 442 00:20:58,640 --> 00:21:01,880 Speaker 1: I think the used car, yeah, but either way, it's 443 00:21:01,960 --> 00:21:03,480 Speaker 1: it's kind of weird. And at least you can return 444 00:21:03,560 --> 00:21:05,760 Speaker 1: clothing most of the time. But the new car or 445 00:21:05,880 --> 00:21:08,040 Speaker 1: the pet, that's a little more difficult to get off 446 00:21:08,080 --> 00:21:10,360 Speaker 1: your hands. And we still like to drink craft beer 447 00:21:10,400 --> 00:21:12,600 Speaker 1: from time to time. That is our craftier equivalent, and 448 00:21:12,680 --> 00:21:15,000 Speaker 1: it's something that we do absolutely two out of three 449 00:21:15,040 --> 00:21:17,360 Speaker 1: episodes a week. Right. Drinking less, though, is a big 450 00:21:17,400 --> 00:21:19,879 Speaker 1: money saver. And plus, Matt, I know you're really into 451 00:21:20,080 --> 00:21:24,840 Speaker 1: Andrew Huberman and his Oh I know, yeah, alcohol it's toxic. Yeah, 452 00:21:24,840 --> 00:21:27,280 Speaker 1: he says, it's not literally a toxin and basically we 453 00:21:27,280 --> 00:21:30,200 Speaker 1: should stop all together. And yeah, he doesn't get much 454 00:21:30,240 --> 00:21:32,840 Speaker 1: not going to go that far. I can see you 455 00:21:32,880 --> 00:21:35,480 Speaker 1: following down that path. I might like enjoy a protein 456 00:21:35,520 --> 00:21:37,120 Speaker 1: shake after I work out, but it doesn't mean I'm 457 00:21:37,119 --> 00:21:39,040 Speaker 1: not going to enjoy a drink while we record an 458 00:21:39,040 --> 00:21:40,719 Speaker 1: episode of How the Money. That's what I like to hear. 459 00:21:41,000 --> 00:21:43,520 Speaker 1: But I think drinking less could also save you from 460 00:21:43,560 --> 00:21:46,160 Speaker 1: buying stupid stuff that you're probably gonna regret too. Yeah, yeah, 461 00:21:46,200 --> 00:21:48,840 Speaker 1: well again, going back to online shopping. This is yet 462 00:21:48,840 --> 00:21:52,760 Speaker 1: another reason why I love but also hate online shopping, 463 00:21:52,760 --> 00:21:54,959 Speaker 1: because it's great the ability for me to, like, I 464 00:21:55,000 --> 00:21:57,199 Speaker 1: literally just bought some new underwear, like the fact that 465 00:21:57,240 --> 00:21:59,880 Speaker 1: I don't have to like go in congratulations to tar 466 00:22:00,080 --> 00:22:03,879 Speaker 1: Get and they're just the convenience of that or make 467 00:22:03,920 --> 00:22:06,240 Speaker 1: you blush or something. Come on, No, the annoyance factor. 468 00:22:06,520 --> 00:22:08,639 Speaker 1: It's not that I'm like, hey, check out my door. 469 00:22:09,280 --> 00:22:12,480 Speaker 1: I don't care about that. But the ability though to 470 00:22:13,200 --> 00:22:16,120 Speaker 1: buy things online, the convenience, that's also the hate side 471 00:22:16,119 --> 00:22:18,920 Speaker 1: of it, right, because you are just it's so easy 472 00:22:18,960 --> 00:22:22,040 Speaker 1: to make purchases without even thinking. And obviously folks oftentimes 473 00:22:22,080 --> 00:22:26,880 Speaker 1: aren't thinking when they are inebriated. Oh yeah, we don't say, 474 00:22:27,400 --> 00:22:30,359 Speaker 1: but do. Let's talk about some in app purchases, and 475 00:22:30,440 --> 00:22:33,359 Speaker 1: it turns out it is way more expensive. So because 476 00:22:33,400 --> 00:22:35,960 Speaker 1: of the way that that tech companies operate, they of 477 00:22:35,960 --> 00:22:38,439 Speaker 1: course want to make as much money as possible within 478 00:22:38,640 --> 00:22:41,840 Speaker 1: their app stores. It's I guess, at the core this 479 00:22:41,960 --> 00:22:45,280 Speaker 1: is capitalism. So if you download an app and you 480 00:22:45,280 --> 00:22:47,600 Speaker 1: sign up for a service, what this means is that 481 00:22:47,640 --> 00:22:49,800 Speaker 1: it is likely going to cost you more than going 482 00:22:49,880 --> 00:22:53,399 Speaker 1: directly to that company's website and making that exact same purchase. 483 00:22:53,720 --> 00:22:57,159 Speaker 1: This is we haven't heard many folks talk about this. 484 00:22:57,359 --> 00:22:59,520 Speaker 1: Weren't flying under the radars. We're here to get the 485 00:22:59,560 --> 00:23:03,359 Speaker 1: word out that this is going on. Apple specifically, they've 486 00:23:03,400 --> 00:23:05,440 Speaker 1: been doing this for years. They've actually been taken to 487 00:23:05,560 --> 00:23:08,679 Speaker 1: court over the thirty percent take that they have instituted. 488 00:23:09,119 --> 00:23:12,160 Speaker 1: Elon Musk he calls it attacks on the Internet, and 489 00:23:12,280 --> 00:23:15,879 Speaker 1: he's exactly right. It's just this underlying fee that they're 490 00:23:15,920 --> 00:23:18,480 Speaker 1: applying to all purchases. Non savvy people have been paying 491 00:23:18,480 --> 00:23:20,360 Speaker 1: it for years and they continue to do so. So 492 00:23:20,400 --> 00:23:22,520 Speaker 1: here's an example. You can either pay eight dollars a 493 00:23:22,560 --> 00:23:24,960 Speaker 1: month if you want to pay for Twitter Blue from 494 00:23:24,960 --> 00:23:28,000 Speaker 1: your laptop or on your desktop computer. But if you 495 00:23:28,040 --> 00:23:30,640 Speaker 1: do that in the actual app, which is where everybody 496 00:23:30,800 --> 00:23:34,000 Speaker 1: actually uses the dang thing, you're stuck paying not eight 497 00:23:34,000 --> 00:23:36,560 Speaker 1: dollars a month, but eleven dollars a month. And that's 498 00:23:36,600 --> 00:23:39,440 Speaker 1: because of the enormous fees that the app stores charge 499 00:23:39,480 --> 00:23:43,480 Speaker 1: companies like Twitter, who then pass this cost directly onto you. Yeah, 500 00:23:43,520 --> 00:23:45,879 Speaker 1: so first consider whether or not you need that subscription 501 00:23:45,960 --> 00:23:48,400 Speaker 1: something like Twitter Blue, Like, you'll never catch me paying 502 00:23:48,440 --> 00:23:50,399 Speaker 1: eight dollars a month or eleven dollars a month for 503 00:23:50,440 --> 00:23:53,040 Speaker 1: that chunk. But second, if you do take the extra 504 00:23:53,080 --> 00:23:55,679 Speaker 1: step and go directly to the website to sign up 505 00:23:55,680 --> 00:23:57,880 Speaker 1: in order to pay less for it. So, for example, 506 00:23:57,920 --> 00:24:00,800 Speaker 1: an audible subscription will cost you more if you purchase 507 00:24:00,880 --> 00:24:03,920 Speaker 1: it through the app instead of on the audible basically 508 00:24:03,960 --> 00:24:07,719 Speaker 1: Amazon website and the new meta verification again similar to 509 00:24:08,119 --> 00:24:11,880 Speaker 1: Twitter Blue. They want to charge you eleven ninety nine 510 00:24:11,920 --> 00:24:14,080 Speaker 1: if you go directly through them, but it's gonna cost 511 00:24:14,080 --> 00:24:15,879 Speaker 1: you fourteen ninety nine if you buy it on the 512 00:24:15,880 --> 00:24:18,479 Speaker 1: iPhone or Android apps. That is a big difference right 513 00:24:18,480 --> 00:24:20,680 Speaker 1: when you add that up over time, And most folks 514 00:24:20,720 --> 00:24:22,600 Speaker 1: probably don't need to pay one hundred fifty dollars a 515 00:24:22,680 --> 00:24:26,600 Speaker 1: year for a blue checkmark anyway, but maybe some businesses 516 00:24:26,960 --> 00:24:29,720 Speaker 1: like how to Money because of the imposters and Facebook 517 00:24:29,760 --> 00:24:32,960 Speaker 1: being awful at tamping down on spam, that same spammy 518 00:24:33,000 --> 00:24:35,440 Speaker 1: Instagram account maat that was launched I don't know months 519 00:24:35,480 --> 00:24:37,399 Speaker 1: ago that a lot of our listeners are reported that 520 00:24:37,400 --> 00:24:40,359 Speaker 1: we've reported, nothing's been done about it. It's pretty annoying. 521 00:24:40,480 --> 00:24:42,720 Speaker 1: It sucks, yeah, and so it honestly starts to feel 522 00:24:42,720 --> 00:24:45,480 Speaker 1: like extortion from the tech companies. But the bottom line is, 523 00:24:45,880 --> 00:24:48,240 Speaker 1: don't pad the tech company's bottom line. Don't pay them 524 00:24:48,520 --> 00:24:50,840 Speaker 1: extra for the same stuff you were planning to buy. 525 00:24:51,040 --> 00:24:53,359 Speaker 1: Apple and Google they're doing just fine without you paying 526 00:24:53,359 --> 00:24:56,440 Speaker 1: them extra money, an extra thirty percent on the subscription 527 00:24:56,480 --> 00:24:58,920 Speaker 1: you want, So buy that on the company's website directly 528 00:24:59,040 --> 00:25:02,120 Speaker 1: and then log into that account afterwards on the app 529 00:25:02,160 --> 00:25:04,240 Speaker 1: on your phone. That's right, yeah, you know. And what's 530 00:25:04,280 --> 00:25:06,399 Speaker 1: great about this is that the like we have the 531 00:25:06,440 --> 00:25:09,679 Speaker 1: power to obviously direct where we want our dollars. Now 532 00:25:09,680 --> 00:25:12,840 Speaker 1: you sound like he man, we have. But honestly, I 533 00:25:12,880 --> 00:25:15,280 Speaker 1: really do see this as a really cool experiment because 534 00:25:15,400 --> 00:25:18,680 Speaker 1: I am curious to see if the iOS app Store 535 00:25:18,680 --> 00:25:20,760 Speaker 1: and the Android app Store I don't even know what 536 00:25:20,760 --> 00:25:23,880 Speaker 1: it's called over there in Droid Store Android Land because 537 00:25:23,920 --> 00:25:25,840 Speaker 1: it's so fun. It'll be interesting to see if they 538 00:25:25,840 --> 00:25:29,119 Speaker 1: continue to charge that amount to some of the different companies, 539 00:25:29,160 --> 00:25:31,480 Speaker 1: the different app companies and the companies that have apps 540 00:25:31,480 --> 00:25:34,040 Speaker 1: within their stores, because I wouldn't be surprised if they 541 00:25:34,160 --> 00:25:36,880 Speaker 1: keep that around, because people continue to make those purchases, 542 00:25:37,160 --> 00:25:40,360 Speaker 1: because what is it that consumers value more than anything else? 543 00:25:40,400 --> 00:25:42,680 Speaker 1: And I think it's immedia we just talked about. When 544 00:25:42,680 --> 00:25:45,040 Speaker 1: it comes to online shopping, it is convenience. And as 545 00:25:45,040 --> 00:25:47,720 Speaker 1: long as folks are thinking, oh, that's just kind of 546 00:25:47,720 --> 00:25:49,359 Speaker 1: a hassle, I'm not going to do that. I'm just 547 00:25:49,359 --> 00:25:51,879 Speaker 1: gonna make the purchase within the app, I think we 548 00:25:51,920 --> 00:25:54,840 Speaker 1: can expect to see that fee continue to stick around. Yeah, 549 00:25:54,840 --> 00:25:57,600 Speaker 1: and comedience really is robbing so many people of the 550 00:25:57,640 --> 00:26:00,159 Speaker 1: ability to build wealth a dollar or two or three 551 00:26:00,240 --> 00:26:02,280 Speaker 1: at a time. Makes you think of just the big 552 00:26:02,280 --> 00:26:04,080 Speaker 1: banks by a thousand cuts. Man, I'm talking about the 553 00:26:04,119 --> 00:26:06,159 Speaker 1: big banks just a minute ago too. And that is 554 00:26:06,160 --> 00:26:08,560 Speaker 1: another thing I think people chalk it up to convenience. 555 00:26:08,880 --> 00:26:11,600 Speaker 1: I think in today's modern world, it's not necessarily more convenient. 556 00:26:11,640 --> 00:26:13,280 Speaker 1: We just assume it's more convenient to have a bank 557 00:26:13,280 --> 00:26:14,840 Speaker 1: on every corner. But when's the last time you actually 558 00:26:14,840 --> 00:26:17,040 Speaker 1: went into a branch? Most for most of our listeners 559 00:26:17,280 --> 00:26:19,440 Speaker 1: that it's been a long time. It's been quite a while. 560 00:26:19,800 --> 00:26:22,040 Speaker 1: I don't feel the need to go into a branch anymore. 561 00:26:22,320 --> 00:26:24,800 Speaker 1: And so I think that we chalk a lot of 562 00:26:24,800 --> 00:26:27,119 Speaker 1: things up to convenience, when when we if we really 563 00:26:27,160 --> 00:26:28,879 Speaker 1: stop to think about it, wait a second, it's not 564 00:26:29,040 --> 00:26:31,440 Speaker 1: that much more convenient, and it's certainly not worth the 565 00:26:31,480 --> 00:26:34,199 Speaker 1: trade off and the additional cost that I'm incurring to 566 00:26:34,320 --> 00:26:37,159 Speaker 1: have that convenience. So I always we're thinking about pushing 567 00:26:37,160 --> 00:26:40,000 Speaker 1: back on some of that the ways that we're marketed 568 00:26:40,000 --> 00:26:42,360 Speaker 1: to when in terms of convenience and how much better 569 00:26:42,400 --> 00:26:43,719 Speaker 1: it's going to be for our lives, and really it's 570 00:26:43,760 --> 00:26:46,119 Speaker 1: just it's just costing us money. That's right, man. But 571 00:26:46,200 --> 00:26:48,960 Speaker 1: before we wrap this episode, we've got a newsletter referral 572 00:26:49,040 --> 00:26:51,439 Speaker 1: shout out, and the way this works, We've got a 573 00:26:51,560 --> 00:26:55,240 Speaker 1: fantastic personal finance newsletter that goes out every Tuesday morning. 574 00:26:55,280 --> 00:26:57,200 Speaker 1: Best in the world, best in the universe, someone says, 575 00:26:57,440 --> 00:26:59,320 Speaker 1: in all the states. But if you scroll down to 576 00:26:59,320 --> 00:27:02,000 Speaker 1: the bottom, there is a referral hub. And what that does. 577 00:27:02,040 --> 00:27:04,760 Speaker 1: It allows you to refer the newsletter out to a 578 00:27:04,800 --> 00:27:06,800 Speaker 1: bunch of your friends, and it tracks whether or not 579 00:27:06,920 --> 00:27:10,560 Speaker 1: they subscribe to the newsletter or not. And every time 580 00:27:10,960 --> 00:27:13,159 Speaker 1: you refer a friend and they subscribe, it gets you 581 00:27:13,359 --> 00:27:17,400 Speaker 1: closer to the many prizes that the different rewards, the incentives, 582 00:27:17,640 --> 00:27:19,199 Speaker 1: that's the word we should use since we're kind of 583 00:27:19,280 --> 00:27:21,879 Speaker 1: like the nerdy economist type, Joel. But it gets you 584 00:27:21,920 --> 00:27:24,600 Speaker 1: closer to the next level that you are going to 585 00:27:24,640 --> 00:27:28,280 Speaker 1: be able to unlock via those different referrals. And some 586 00:27:28,280 --> 00:27:31,040 Speaker 1: of those levels include literally giving you money, another one 587 00:27:31,119 --> 00:27:33,640 Speaker 1: is giving you awesome how the money socks. And then 588 00:27:33,800 --> 00:27:36,200 Speaker 1: the final, the ultimate level, the boss level, is a 589 00:27:36,320 --> 00:27:38,440 Speaker 1: virtual hangout with the to us. That's right, man, Yeah, 590 00:27:38,560 --> 00:27:41,960 Speaker 1: and so the first level is like I mentioned the 591 00:27:42,000 --> 00:27:44,160 Speaker 1: shout out here on the Friday flight, so a big 592 00:27:44,200 --> 00:27:48,719 Speaker 1: thank you to Argentina m. She shared the newsletter with 593 00:27:48,840 --> 00:27:51,639 Speaker 1: at least three of her friends. And what's great is 594 00:27:51,680 --> 00:27:54,560 Speaker 1: that this isn't just good for Argentina to unlock the 595 00:27:54,640 --> 00:27:57,640 Speaker 1: next level, but these are three folks who hopefully are 596 00:27:57,760 --> 00:28:00,959 Speaker 1: now learning more about money, folks who are hopefully going 597 00:28:01,000 --> 00:28:03,120 Speaker 1: to be able to make smarter money decisions moving forward, 598 00:28:03,160 --> 00:28:05,080 Speaker 1: because it's it easier to have those combos with your 599 00:28:05,080 --> 00:28:06,680 Speaker 1: friends too about money. It's like, hey, you'll read the 600 00:28:06,720 --> 00:28:10,840 Speaker 1: same newsletter, so true sparks that combo. So hopefully if 601 00:28:10,840 --> 00:28:12,239 Speaker 1: you're not signed up, you should sign up at how 602 00:28:12,280 --> 00:28:14,159 Speaker 1: money dot com slash newsletter and if you are, go 603 00:28:14,280 --> 00:28:16,280 Speaker 1: refer a friend or two and hopefully you can win 604 00:28:16,320 --> 00:28:17,879 Speaker 1: those socks or something. Right, And by the way, we 605 00:28:18,000 --> 00:28:20,120 Speaker 1: I think we've got over twenty folks who are really 606 00:28:20,119 --> 00:28:23,480 Speaker 1: close to unlocking that that first level. Just a bunch 607 00:28:23,480 --> 00:28:25,640 Speaker 1: of you folks out there, just a little word of encouragement. 608 00:28:25,640 --> 00:28:29,119 Speaker 1: You're so close. Yeah, all right, well happy Saint Patrick's say, 609 00:28:29,160 --> 00:28:31,000 Speaker 1: by the way, to everybody out there, right, don't drink 610 00:28:31,040 --> 00:28:33,119 Speaker 1: green beer. I don't think that's not worth it, not healthy, 611 00:28:33,160 --> 00:28:36,840 Speaker 1: not good. Andrew Huberman, he would advise against it. That's right. 612 00:28:36,920 --> 00:28:40,680 Speaker 1: Plus it's a good thing we talked about. Yeah, drunk shopping, Yeah, 613 00:28:41,040 --> 00:28:42,680 Speaker 1: don't drink you don't want to do it. Five green 614 00:28:42,720 --> 00:28:44,880 Speaker 1: beers and then hop on Amazon. All right, have a 615 00:28:44,880 --> 00:28:47,720 Speaker 1: great weekend, Matt. Until next time, best friends out, Best 616 00:28:47,760 --> 00:28:48,600 Speaker 1: friends Out.