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Speaker 1: Welcome to had to Money. I'm Joel and I am Matt,

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Speaker 1: and today we're going to answer some of your listener questions.

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Speaker 2: We hope that you are having a great start to

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Speaker 2: your week, and even better to start to your week

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Speaker 2: now that you're listening to the wonderful tones of Joel's

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Speaker 2: voice sitting across from me.

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Speaker 1: We answered something. We released one episode a little late

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Speaker 1: last week, Matt, just like a couple hours later a

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Speaker 1: few weeks ago, and somebody in the Facebook group was like, no, man,

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Speaker 1: Joel on my morning walk, and we're sorry. We'll try

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Speaker 1: to do better. I try to do better. We like

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Speaker 1: to accompany you on your marble.

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Speaker 2: Well, and I don't know if anyone knows this, but

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Speaker 2: the actual time that we set the episodes to publish, man,

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Speaker 2: I feel like there is a high degree of accountability

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Speaker 2: now that I'm actually saying all this out loud. I

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Speaker 2: always set it for four am Eastern for whatever reason

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Speaker 2: in my mind. That's just like that's when I wanted

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Speaker 2: to show up and everyone's podcast.

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Speaker 1: And even then it can show up like an hour

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Speaker 1: to later or something.

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Speaker 2: That, but at least it well, it depends on when

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Speaker 2: your phone basically when whatever your app is reaching out

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Speaker 2: for that data, right.

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Speaker 1: But now we've got.

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Speaker 2: Great listener questions to get to today. A listener is

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Speaker 2: wondering what she should do about multiple retirement accounts. Maybe

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Speaker 2: there's a way to simplify things. Another listener is wondering

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Speaker 2: how to budget for a new home, specifically how to

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Speaker 2: take into account the sale of their current home and managing.

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Speaker 1: Your kids allowance.

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Speaker 2: It's a little bit trickier than perhaps it seems on

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Speaker 2: the surface. We'll get to those plus more personal finance

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Speaker 2: topics during today's episode.

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Speaker 1: The last one you mentioned is gonna also involve the

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Speaker 1: digital versus analog divide. We'll give it to that as well,

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Speaker 1: because there I think are pros and cons in both sections.

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Speaker 1: But Matt, before we get to listener questions, we've got

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Speaker 1: a listener email a couple of weeks ago from listener

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Speaker 1: Brian and I don't know. I love getting emails from

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Speaker 1: people who have not only made changes to their own

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Speaker 1: personal finance life, but they're using what they've learned to

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Speaker 1: help other people. And Brian, he said he's been listening

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Speaker 1: for a long time, actually said, I think the first

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Speaker 1: time he listened our episode was out of brewery in Atlanta.

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Speaker 1: So well, that's perfect. Yeah, I know right, I must

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Speaker 1: have missed the email. I didn't see it, so mad.

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Speaker 1: Props to Brian slip through the cracks drinking good beer.

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Speaker 1: But also one of the cool things he's done over

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Speaker 1: the years is he's gotten more just interested in personal

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Speaker 1: finance and his knowledge has grown. What he did was

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Speaker 1: he went to his employer and he said, hey, listen,

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Speaker 1: can I teach a personal finance class to the folks

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Speaker 1: on my job? He's in law enforcement? And they were like, yeah,

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Speaker 1: why not. I guess so and so he is like

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Speaker 1: this has been like an effort wholly led by him,

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Speaker 1: with now the approval of the superiors. That's so good.

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Speaker 1: And he's getting emails now after leading some of these

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Speaker 1: courses some of the people he's been working with who've

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Speaker 1: been in that department for twenty plus years and they're saying,

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Speaker 1: oh my gosh, I wish I had known this when

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Speaker 1: I first started on the job. Just incredible, Like it's

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Speaker 1: one thing to make a lot of change in your

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Speaker 1: own personal life. It's something we applaud. It's incredile, but

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Speaker 1: so nothing to pass it on, whether that's in an

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Speaker 1: individual relationship to friend or family member, or to stranger

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Speaker 1: sometimes I don't know, I random stranger combos about money

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Speaker 1: every once in a while. And then to your coworkers,

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Speaker 1: like the people you work with every day. To be

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Speaker 1: able to pass out on is just beautiful. Totally.

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Speaker 2: Yeah, I do think there's a big difference in feeling

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Speaker 2: like that. You have to feel one hundred percent qualified

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Speaker 2: to stand in front of a room of your peers

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Speaker 2: and be able to explain safe withdrawal rates or something

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Speaker 2: like a little more complicated like that, as opposed to

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Speaker 2: having a conversation about money. And that's what we strive

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Speaker 2: for here on the show is to basically make personal finances,

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Speaker 2: to make money more common of a conversation, like we

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Speaker 2: do not want it to remain a taboo topic and

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Speaker 2: like it has so often, And even just asking a

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Speaker 2: question if you're you don't have to be able to

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Speaker 2: deliver all the information, but even just raising a question

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Speaker 2: like that alone right there to the fact that you're

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Speaker 2: showing curiosity. I think for some folks might be.

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Speaker 1: One of the first times.

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Speaker 2: It might be like the first time they've ever heard

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Speaker 2: someone talk about money outside of like, oh, the price

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Speaker 2: of gas or or something crazy superficial or a little

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Speaker 2: bore shallow, right, and that in their mind stands out

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Speaker 2: for you. You're listening to hot of money and so

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Speaker 2: you hear this talked about all the time, but for

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Speaker 2: them it might be something that has like completely been

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Speaker 2: off of their radar, the fact that someone would actually

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Speaker 2: want to talk about that and would have an interest

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Speaker 2: in that. So, yeah, kudos was it, Brian? Brian, Brian

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Speaker 2: for doing that, not to mention showing initiative like that

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Speaker 2: at work.

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Speaker 1: Yeah, that's how you.

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Speaker 2: Get paid more seriously as well in promotion today.

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Speaker 1: Oh, Brian's a very valuable member of Yeah, yes, I

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Speaker 1: totally love that. The thing you mentioned, I think it's

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Speaker 1: bears repeating is you don't have to be some sort

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Speaker 1: of financial brainiac in order to pass on the information

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Speaker 1: that you have, right, Yeah, you don't have to be like,

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Speaker 1: I'm not as smart as Matt and you know what,

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Speaker 1: I say that all the time, I'm not as smart

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Speaker 1: as mental please, But you don't have to be that

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Speaker 1: like brilliant off the chart one hundred and fifty IQ

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Speaker 1: when it comes to money to be able to pass

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Speaker 1: on what you know. And sometimes it's just saying like listen, wow,

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Speaker 1: I heard this fact last week, or man, I didn't

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Speaker 1: realize how good the HSA could be to a fellow

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Speaker 1: cowork or whatever it is. It can be small, or

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Speaker 1: it can be within the realm of what you know

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Speaker 1: and what you know really well. You don't feel like

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Speaker 1: you got to be some sort of like a trained

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Speaker 1: financial professional in order to be able to tell other

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Speaker 1: people some of the good stuff that you've been learning.

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Speaker 2: That's right, speaking of HSA is that's actually one of

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Speaker 2: the questions we're going to get to during today's episode.

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Speaker 2: But first we have to introduce our first crappy beer

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Speaker 2: of the episode, because we're going to enter into the

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Speaker 2: what we do this for about three weeks or so

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Speaker 2: of us drinking I'm I can't even call it craft beer,

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Speaker 2: So it's going to be beer that isn't so great.

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Speaker 1: It's called crap beer.

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Speaker 2: We are today drinking a Covista, which is a Mexican

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Speaker 2: style blogger courtesy of ald and So let's little background.

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Speaker 2: The reason you and I are drinking these not so

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Speaker 2: great craft beers is we had a friendly wager, a

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Speaker 2: little friendly bet going on, and whoever raised the most

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Speaker 2: money in our daffy campaigns. We had competing campaigns going

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Speaker 2: where we were matching listener contributions and the loser was

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Speaker 2: going to be stuck drinking the crappy stuff. And I

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Speaker 2: think you beat me by like one hundred bucks or

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Speaker 2: something like that. One hundred and fifty bucks, was that.

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Speaker 1: Right, something something like that. But then you've got a

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Speaker 1: donation like after the fact, and so you're like, you

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Speaker 1: know what, neither of us hit the total we were

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Speaker 1: going for. We're both gonna drink crap.

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Speaker 2: Heer, Well, I was gonna throw you under the bus

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Speaker 2: since you contributed to your own.

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Speaker 1: Campaign, to your own campaign, I might have cheated jerk

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Speaker 1: just a little bit.

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Speaker 2: But that being said, the campaign pages are still up,

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Speaker 2: and so if you want to hop over there, because

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Speaker 2: maybe you completely miss those campaigns, there's still an opportunity

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Speaker 2: for you to give to those campaigns, and we are

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Speaker 2: still matching dollars and so you still have the ability

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Speaker 2: to change lives and give some of your money away.

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Speaker 1: So for real, seriously, thank you to everyone who did

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Speaker 1: donate to those campaigns. Yeah, you still can, and we're

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Speaker 1: just excited to get the match dollars that get donated

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Speaker 1: some of our favorite nonprofits. So we'll just leave them

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Speaker 1: live until hopefully we reach the total. You still want

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Speaker 1: folks to be able to participate. It doesn't have to

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Speaker 1: be to the charities that Matt and I love, but

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Speaker 1: if you like those charities, we'll guess what your donation

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Speaker 1: gets doubled still, so we'll link to those again in

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Speaker 1: the show notes for this for this episode. But Matt,

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Speaker 1: let's move on. Let's get to listener questions. If you

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Speaker 1: have a money question and you're like I would love

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Speaker 1: Matt and Joel to tackle this on an upcoming episode.

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Speaker 1: We'd love to hear it. Just got to have the

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Speaker 1: money dot com, slash ask or basically record a voice

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Speaker 1: memo on your phone send it our way. Hopefully we'll

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Speaker 1: take it next week on the show. This first question, though, Matt,

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Speaker 1: comes from a listener in Texas who's thinking upgrade in

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Speaker 1: their house.

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Speaker 3: Hi, Matt and Joel, this is Tanya from Tyler, Texas.

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Speaker 3: I have a question regarding how to budget for a

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Speaker 3: new home when factoring and selling a starter home. We

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Speaker 3: bought our starter home back in twenty eleven and says

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Speaker 3: sin and has more than double in value. We also

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Speaker 3: don't owe very much on it, as we always put

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Speaker 3: a little extra towards it each month. It is quite small,

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Speaker 3: but hasn't felt that way until recently. My husband works

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Speaker 3: from home now and we had our first baby last year.

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Speaker 3: We're hoping to add another soon. We're wanting to purchase

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Speaker 3: our next home, possibly our forever home, for our growing family,

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Speaker 3: something a little larger and with a better office space,

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Speaker 3: but I'm stuck on figuring out what we can afford

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Speaker 3: after selling our starter home. What advice do you all have?

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Speaker 3: Thank you for all you do. You're ever niece Texas.

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Speaker 3: Check out Truebne Brewery and Tyler first round.

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Speaker 2: On this Ooh, Tanya, a very generous offer. We'll have

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Speaker 2: to We might actually take you up on that next

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Speaker 2: time we make it down to the great state of Texas.

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Speaker 2: It's been a little bit longer, Joe since you've been there.

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Speaker 2: That's where there's a deal to what was it? South

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Speaker 2: Padre Island is where I took my family to got

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Speaker 2: that Southwest deal.

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Speaker 1: I'm no Spanish expert, but I will say that probably

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Speaker 1: means South Dad Island.

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Speaker 2: You do no more Spanish than me, and so I

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Speaker 2: will have to be further to appropriate. Let's just get

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Speaker 2: to it. Tanya's question, because she mentioned several great pieces

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Speaker 2: of information in here. By the way, she bought her

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Speaker 2: house in twenty eleven, that's awesome because that means she

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Speaker 2: bought a great time obviously before home prices shot up,

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Speaker 2: but that's back when rates interest rates were low, mortgage

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Speaker 2: rates specifically. But it also means because it was so

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Speaker 2: long ago, it means that you have more than crossed

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Speaker 2: the threshold of how long we would like to see

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Speaker 2: folks commit to living in a home that they buy.

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Speaker 2: And because you've owned the home for I guess thirteen

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Speaker 2: years now, you have avoided one of the biggest pain

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Speaker 2: points that other American homeowners who upgrade homes regularly that

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Speaker 2: they face, which are over the top real estate transaction costs.

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Speaker 2: This is a real wealth drainer. It doesn't get mentioned enough.

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Speaker 2: And again, given the recent changes to how it does

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Speaker 2: that realtors are getting paid, that might be going away

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Speaker 2: and there might be a little more fluidity when it

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Speaker 2: comes to the housing market, but for the longest time.

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Speaker 2: That is one of the reasons we want folks to

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Speaker 2: stay in their homes for at least three ideally five

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Speaker 2: plus years.

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Speaker 1: Yeah five to seven, really, I mean minimum three. I

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Speaker 1: mean I don't even know if you're gonna If you

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Speaker 1: said I'm gonna buy a home and sell it three

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Speaker 1: years from now, I always say, don't do it. Interestingly enough,

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Speaker 1: twenty eleven was kind of the trough matt for home prices,

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Speaker 1: so sure there really wasn't a better time to buy

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Speaker 1: anytime in that twenty ten twenty eleven period. You were

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Speaker 1: getting just the lowest prices in a generation, I think

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Speaker 1: for home prices.

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Speaker 2: I remember owning for a couple of years and seeing

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Speaker 2: home value is on Zillo continue to decline, and I

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Speaker 2: remember thinking, ill, I don't know, did we make the

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Speaker 2: right move because we jumped in back when there is

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Speaker 2: a non refundable tax credit because the year in two

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Speaker 2: thousand and eight you had to pay that tax credit

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Speaker 2: back two thousand and nine. They said, you know what,

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Speaker 2: you just hang on to that.

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Speaker 1: Yeah.

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Speaker 2: I think that's when both of us, prior to even

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Speaker 2: knowing each other, said now's the time to buy Relic.

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Speaker 2: She made an even better decision Relic from a bike

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Speaker 2: on era Like, we don't know, no sort of support

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Speaker 2: system in place for want to be homeowners now, But

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Speaker 2: big props to you Tanya for making a good purchase

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Speaker 2: and for holding onto that purchase for so long, and

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Speaker 2: matt Tiny is also not alone in trying to make

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Speaker 2: her current homework the golden handcuffs of a reasonable mortgage

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Speaker 2: and a low rate. Plus if you were to run

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Speaker 2: the numbers of buying a more expensive home, not just

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Speaker 2: the increased price, but now at a seven plus percent rate,

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Speaker 2: that's made a lot of people feel grateful for what

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Speaker 2: they have.

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Speaker 1: And it's not that Tanya isn't grateful, but you know

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Speaker 1: what I mean, right Like she's She's like, I'll take

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Speaker 1: the bird in the hand, and maybe I'll hold on

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Speaker 1: to that because it is such a blessing to my

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Speaker 1: monthly budget. It will make you want to hold off

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Speaker 1: on upgrading as long as possible. But at some point,

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Speaker 1: I think this is true, and I think we're going

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Speaker 1: to see more people moving on from low rates in

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Speaker 1: the future because at some point, no matter how good

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Speaker 1: of a deal you've got, with your families growing and

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Speaker 1: let's say somebody else is working from home and more

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Speaker 1: space becomes a necessity, you got to bite the bullet.

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Speaker 1: You gotta do something, because at some point it becomes

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Speaker 1: untenable to continue to cram more people into that same

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Speaker 1: small space.

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Speaker 2: Yeah, So let's do our best to offer a few solutions. Antonya,

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Speaker 2: I think one thing that's worth considering is outside of

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Speaker 2: the realm of maybe what you're considering at the moment,

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Speaker 2: which is to renovate your current home instead of buying

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Speaker 2: another again with the mortgage rate that you've gotten, with

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Speaker 2: the massive amount of equity that you have, I think

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Speaker 2: it's worth considering whether or not it would make sense

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Speaker 2: to get some plans r on up, maybe interview some contractors,

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Speaker 2: try to increase the square footage of your current home.

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Speaker 2: This is literally something that Kate and I are in

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Speaker 2: the middle of doing right now, because when we moved

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Speaker 2: up to where we're living now, we basically we saw

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Speaker 2: our current home as a temporary move. We thought, all right,

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Speaker 2: we'll make that happen, living it for a couple of years,

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Speaker 2: possibly rent it for a few years after that before

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Speaker 2: we sell it. But given where mortgage rates are, given

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Speaker 2: the lack of inventory on the market. In bottom line,

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Speaker 2: I think over time, we've realized that there is a

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Speaker 2: lot to love about our current home. Essentially, we kind

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Speaker 2: of came into it with a snobbish attitude. We're thinking,

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Speaker 2: wait a minute, this home isn't at least one hundred

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Speaker 2: years old, with loads of charm and character.

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Speaker 1: And ten foot ceilings.

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Speaker 2: And because of that, I think we were like, we're

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Speaker 2: not going to be here for all that long. But

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Speaker 2: now we're realizing, oh, you know what, we actually might

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Speaker 2: be here for a decade plus. We could be here

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Speaker 2: until we're empty nesters, which is mind blowing to think through.

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Speaker 2: And so we're starting to take steps. We have been

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Speaker 2: taking steps to see what it would take in order

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Speaker 2: to make this particular home work for us rather than

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Speaker 2: moving and man just completely being forced to pay so

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Speaker 2: much more every single month, do specifically to hire mortgage rates.

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Speaker 1: Yeah, and part of that has been you've actually started

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Speaker 1: to enjoy your house more and you like your neighborhood.

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Speaker 1: You like your neighbors. And then the other part of

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Speaker 1: that is the economic, the money side of the equation.

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Speaker 1: And it's like, Okay, all these plos together. If I

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Speaker 1: want the slightly bigger house with a little bit more room,

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Speaker 1: an extra bedroom for the next kid, you're giving up

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Speaker 1: the super lowl mortgage that you have locked in. And

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Speaker 1: you're in a similar position to Tanya. And it's lifestyle

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Speaker 1: and financial, it's both, it's both, and you've got a

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Speaker 1: factor in both, right. I guess the lifestyle part is

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Speaker 1: the aspect Tanya, that it's worth thinking through. Like the

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Speaker 1: way we were thinking about it is that like, well,

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Speaker 1: this isn't a dream house, this isn't this isn't going

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Speaker 1: to be a forever home. But I guess the question

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Speaker 1: I'm posing is to think through because the home that

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Speaker 1: you're in it it could be, It could be, and

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Speaker 1: your priorities might change, and maybe in the past you're thinking, oh,

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Speaker 1: this isn't our forever home. And let's be honest, nobody's

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Speaker 1: home is actually their forever home. It's like, okay, more

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Speaker 1: of a long term home than maybe you thought. But

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Speaker 1: your priorities changed and the things that you care about change.

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Speaker 1: So part comes up what it is that you are

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Speaker 1: valuing these days in your life. Yeah, and maybe you've

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Speaker 1: got a big enough lot where you can add on,

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Speaker 1: and the way the house flows and stuff, maybe your

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Speaker 1: house is ripe for a renovation, and maybe that's also

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Speaker 1: the best fiscal move for you as well. You might

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Speaker 1: find that you can take out a helock in order

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Speaker 1: to add on to the house, giving you all the

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Speaker 1: room that you need, right, allowing you to hang on

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Speaker 1: to the current mortgage, which is essentially like free money

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Speaker 1: if you got it back in twenty eleven and then right,

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Speaker 1: and then you can simultaneously pay off the helock in

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Speaker 1: just a few years time. That could be the slam

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Speaker 1: dunk decision. There could be a lot of other reasons

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Speaker 1: maybe why you wouldn't make that choice. I mentioned a

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Speaker 1: lot of size. Let's say you're on a post it's

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Speaker 1: stamp sized lot, something really really small, and you're like, nah,

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Speaker 1: it just doesn't work, or actually I want to home

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Speaker 1: with bigger bones in general, but we at least wanted

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Speaker 1: to float that idea because it can make a lot

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Speaker 1: of financial sense given the current market condition. So if

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Speaker 1: you like where you live and you feel like your

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Speaker 1: house has the ability to it's got the potential to

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Speaker 1: be something great for your family for a long time,

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Speaker 1: it's just in its current state, it's not quite there.

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Speaker 2: At least think through that. Yeah, and plus it sounds

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Speaker 2: like that maybe everything else about the house or like

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Speaker 2: the neighborhood is working out for her, because what she's

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Speaker 2: specifically mentioning is the square footage, not that actually we

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Speaker 2: want to be closer to in laws. Oh, there's a

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Speaker 2: job relocation that's requiring us to move that sort of thing.

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Speaker 2: And so truly, if it is about space, maybe you

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Speaker 2: are actually in the home that you're going to be

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Speaker 2: in for the next little while, but maybe there is

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Speaker 2: a bunch of other information that you didn't share with us.

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Speaker 2: Let's say you are going to actually purchase a different home,

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Speaker 2: a new to you house that is, well, how much

357
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Speaker 2: should you spend? Well, first of all, take what the

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Speaker 2: lender says with a grain of salt, because you're going

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Speaker 2: to start getting pre approved for loan amounts and you

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Speaker 2: want to make sure that you keep your housing expenses reasonable.

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Speaker 2: And if you go all the way up to your

362
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Speaker 2: pre approved limit, it's going to feel way too tight

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Speaker 2: when it comes to your month and month, your sort

364
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Speaker 2: of day to day living, and what you're going to

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Speaker 2: be spending. In that sense, that's why they call a

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Speaker 2: house formatt that's right, and in all likelihood, you're going

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Speaker 2: to want to put down most, if not all, of

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Speaker 2: the proceeds of your current home towards that next house.

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Speaker 2: I think if if rates were a good bit lower,

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Speaker 2: that advice actually it probably would be different. But I'd

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Speaker 2: rather take on as little mortgage debt as possible at

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Speaker 2: seven and a half percent, and because of that big

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Speaker 2: equity chunk, you might even be able to keep your

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Speaker 2: mortgage payment very similar in size, which would I think

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Speaker 2: probably be sort of the ultimate goal for you.

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Speaker 1: But this is a crude rule of.

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Speaker 2: Thumb, but bottom line, you want to make sure that

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Speaker 2: your payment is less than thirty percent of your take

379
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Speaker 2: home pay, and honestly even less than that. If you

380
00:16:27,960 --> 00:16:30,280
Speaker 2: can keep it closer to twenty five percent, then that

381
00:16:30,320 --> 00:16:34,080
Speaker 2: would be even better. But let's say, for instance, you're

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Speaker 2: monthly after tax pay is something like six thousand dollars,

383
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Speaker 2: Well we're talking about an eighteen hundred dollars mortgage payment,

384
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Speaker 2: assuming that you're sticking with that thirty percent goal.

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Speaker 1: Yeah, yeah, I think that's a I think it's a

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Speaker 1: reasonable approach, and of course it's harder than ever to

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Speaker 1: pull off, given the current housing market and how out

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Speaker 1: of control costs and rates have become. But at least

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Speaker 1: Tanya's got one thing in her corner, which is a

390
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Speaker 1: ton of home equity, which I think can help maybe

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Speaker 1: defray some of the costs of the upgrade.

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Speaker 2: So, yeah, you just want the ability to get that

393
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Speaker 2: loan amount down even further.

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Speaker 1: That's going to be huge.

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Speaker 2: Yep, because that's I will say too. This is the

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Speaker 2: like what the typical average American is going to do. Right,

397
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Speaker 2: Like you, you start off with a home, take the

398
00:17:13,720 --> 00:17:15,159
Speaker 2: equity out of that home, you roll it into the

399
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Speaker 2: next one. And there's nothing wrong with that, although we do,

400
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Speaker 2: I guess we want to push you to consider other alternatives,

401
00:17:22,520 --> 00:17:24,439
Speaker 2: like there are other options available to you than just

402
00:17:24,480 --> 00:17:26,000
Speaker 2: doing the typical standard American.

403
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Speaker 1: You think, if you want financial freedom, you're going to

404
00:17:28,000 --> 00:17:30,080
Speaker 1: do some things that are out of the ordinary from

405
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Speaker 1: what most ordinary Americans are doing. And one of those

406
00:17:33,600 --> 00:17:35,639
Speaker 1: things is to hold on to a home longer. It

407
00:17:35,680 --> 00:17:39,240
Speaker 1: is to upgrade and maybe less often. It is to

408
00:17:39,720 --> 00:17:42,160
Speaker 1: be okay with less space. It is maybe to add

409
00:17:42,200 --> 00:17:45,119
Speaker 1: on instead of purchasing the nicer house that's going to

410
00:17:45,200 --> 00:17:47,320
Speaker 1: strain your budget. All those sorts of things are going

411
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Speaker 1: to allow you to sock more into your investments, into

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00:17:49,640 --> 00:17:52,320
Speaker 1: your savings, so you have a larger amount of financial

413
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Speaker 1: freedom in your life, which is freeing in and of itself.

414
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Speaker 1: And if achieving financial independence more quickly is a goal

415
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Speaker 1: that you have, by the way, you're going to want

416
00:18:00,640 --> 00:18:03,760
Speaker 1: to avoid being house for that's crucial, right because if

417
00:18:03,800 --> 00:18:05,679
Speaker 1: more money than you feel comfortable with. Is going to

418
00:18:05,680 --> 00:18:07,520
Speaker 1: the mortgage every month, you're going to feel strained in

419
00:18:07,600 --> 00:18:10,159
Speaker 1: every other area of life. One more random thought to

420
00:18:10,160 --> 00:18:12,600
Speaker 1: toss your way. It's just at least worth pointing out

421
00:18:12,640 --> 00:18:15,320
Speaker 1: that if you're interested in becoming a landlord and you

422
00:18:15,400 --> 00:18:17,639
Speaker 1: like the idea of keeping your current home, the numbers

423
00:18:17,680 --> 00:18:21,000
Speaker 1: could work on that too, and maybe quite nicely. Considering again,

424
00:18:21,040 --> 00:18:22,919
Speaker 1: when you purchase the home and the financing terms that

425
00:18:22,920 --> 00:18:25,760
Speaker 1: you have, there are tax consequences for this, the two

426
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Speaker 1: and five year rule that you're going to want to

427
00:18:27,200 --> 00:18:30,359
Speaker 1: become familiar with, and you'd also have to be ready

428
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Speaker 1: for the part time job of managing a rental property.

429
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Speaker 1: But this is another thing that can help your family

430
00:18:36,000 --> 00:18:38,000
Speaker 1: build wealth and allow you to hold on to a

431
00:18:38,000 --> 00:18:41,240
Speaker 1: really solid asset so you're upgrading to that next home

432
00:18:41,840 --> 00:18:43,920
Speaker 1: that you want to get into. Is going to suit

433
00:18:43,920 --> 00:18:46,120
Speaker 1: your family better well. If you can save up enough

434
00:18:46,119 --> 00:18:48,040
Speaker 1: money for a down payment and still have a reasonable

435
00:18:48,359 --> 00:18:51,960
Speaker 1: mortgage amount and simultaneously hold onto this home, rent it

436
00:18:52,000 --> 00:18:54,080
Speaker 1: out and make a sweet profit every single month while

437
00:18:54,080 --> 00:18:55,920
Speaker 1: that home is going up in value at the same time,

438
00:18:56,480 --> 00:18:58,119
Speaker 1: that can be a best of both worlds approach.

439
00:18:58,160 --> 00:19:02,440
Speaker 2: To Yeah, and that is the typical non average American

440
00:19:02,600 --> 00:19:04,719
Speaker 2: thing to do, which is to hang on to that

441
00:19:04,800 --> 00:19:06,639
Speaker 2: current home that you have there as an investment. And

442
00:19:06,640 --> 00:19:08,360
Speaker 2: that's something Joel, that both you and I have done

443
00:19:08,440 --> 00:19:10,640
Speaker 2: multiple times, the ability to hang on to that low

444
00:19:10,760 --> 00:19:13,000
Speaker 2: rate while at the same time diversifying your income with

445
00:19:13,040 --> 00:19:15,919
Speaker 2: a little bit of that additional rental revenue that you

446
00:19:15,960 --> 00:19:18,040
Speaker 2: got coming in. But Tanya, we hope that gives you

447
00:19:18,040 --> 00:19:19,919
Speaker 2: plenty to think about and gets you pointed in the

448
00:19:20,000 --> 00:19:22,119
Speaker 2: right direction. But Joel, we've got more to get to

449
00:19:22,240 --> 00:19:26,360
Speaker 2: during this episode. Yeah, we'll talk about simplifying your retirement

450
00:19:26,400 --> 00:19:37,160
Speaker 2: accounts that more. Right after the break, fin Matt, let's

451
00:19:37,200 --> 00:19:37,600
Speaker 2: keep rolling.

452
00:19:37,600 --> 00:19:39,920
Speaker 1: We've got more money questions to get to. This next

453
00:19:39,920 --> 00:19:43,040
Speaker 1: one is all about raising financially savvy children.

454
00:19:43,440 --> 00:19:44,200
Speaker 4: Hi, Matt and Joel.

455
00:19:44,320 --> 00:19:46,639
Speaker 5: My name is Megan and I live in the Dallas area.

456
00:19:47,119 --> 00:19:49,480
Speaker 5: A few years ago, I listened to y'all's episode about

457
00:19:49,600 --> 00:19:53,359
Speaker 5: raising financially Savvy kids with Liz Fraser, and afterwards I

458
00:19:53,400 --> 00:19:56,160
Speaker 5: went and bought her book Beyond Piggybanks and Lemonade Stands.

459
00:19:56,680 --> 00:19:59,680
Speaker 5: We have since started giving our kids allowance and use

460
00:19:59,760 --> 00:20:03,480
Speaker 5: this Bend Save Share Jar system. Our kids are nine,

461
00:20:03,640 --> 00:20:06,760
Speaker 5: almost seven, and four, and the older two get a

462
00:20:06,800 --> 00:20:09,320
Speaker 5: dollar a week for their age in years, and our

463
00:20:09,359 --> 00:20:12,280
Speaker 5: youngest one doesn't get allowance yet, but she might start

464
00:20:12,280 --> 00:20:14,480
Speaker 5: getting it soon because she keeps watching her brothers get

465
00:20:14,560 --> 00:20:18,720
Speaker 5: money every week. So currently we have their cash in

466
00:20:18,880 --> 00:20:21,200
Speaker 5: clear plastic jars, which is great because they can watch

467
00:20:21,240 --> 00:20:24,480
Speaker 5: their money grow, but they never have their money on them,

468
00:20:24,560 --> 00:20:26,520
Speaker 5: and so we don't know how much is in each jar,

469
00:20:26,720 --> 00:20:30,359
Speaker 5: particularly the spending jar. So my question for you guys

470
00:20:30,560 --> 00:20:33,119
Speaker 5: is how do you all recommend we keep track of

471
00:20:33,320 --> 00:20:36,960
Speaker 5: their money in a digital way. If they want to

472
00:20:36,960 --> 00:20:39,760
Speaker 5: make an impulse purchase at Target or something, I don't

473
00:20:39,800 --> 00:20:41,480
Speaker 5: know whether or not to say yes because I don't

474
00:20:41,520 --> 00:20:44,080
Speaker 5: know what they have in their spending jar. One of

475
00:20:44,080 --> 00:20:46,399
Speaker 5: the main reasons we started giving them allowance is so

476
00:20:46,400 --> 00:20:48,400
Speaker 5: that they actually have money to make mistakes with while

477
00:20:48,440 --> 00:20:50,639
Speaker 5: the stakes are low, and also so that they can

478
00:20:50,680 --> 00:20:52,880
Speaker 5: learn how to prioritize what they actually want to spend

479
00:20:52,880 --> 00:20:55,080
Speaker 5: their money on. But I feel like I'm missing the

480
00:20:55,119 --> 00:20:58,000
Speaker 5: mark because I never know what they actually have to spend.

481
00:20:58,480 --> 00:21:00,399
Speaker 5: So I've heard of the green Light credit card or

482
00:21:00,480 --> 00:21:03,399
Speaker 5: debit card for older kids, and I've thought about just

483
00:21:03,520 --> 00:21:05,879
Speaker 5: using the split wise app or even a Google sheet.

484
00:21:06,080 --> 00:21:07,960
Speaker 5: But I'm hoping y'all might have a tip for me

485
00:21:08,000 --> 00:21:10,640
Speaker 5: here and of course bonus points if it is free.

486
00:21:11,160 --> 00:21:13,000
Speaker 4: Thank you so much. I really appreciate you guys.

487
00:21:13,080 --> 00:21:14,280
Speaker 1: Take care ooh.

488
00:21:14,400 --> 00:21:16,840
Speaker 2: Meghan mentioned a bunch of the different apps and some

489
00:21:16,880 --> 00:21:19,000
Speaker 2: of the technology that exists out there, but we might

490
00:21:19,040 --> 00:21:21,200
Speaker 2: be bucking the trend a little bit and provide some

491
00:21:21,520 --> 00:21:25,000
Speaker 2: less technologically advanced solutions to her problem.

492
00:21:25,080 --> 00:21:26,679
Speaker 1: I prefer a chisel and tablet.

493
00:21:27,200 --> 00:21:29,600
Speaker 2: Yeah, like, and apicus is a good way of keeping it.

494
00:21:29,680 --> 00:21:32,119
Speaker 1: Like your ten commitment style with my record keeping.

495
00:21:32,119 --> 00:21:36,160
Speaker 2: Meghan mentioned Liz Frasier. We actually spoke with Liz about like,

496
00:21:36,160 --> 00:21:38,320
Speaker 2: like you said, you're raising financially savvy. I think that

497
00:21:38,359 --> 00:21:40,560
Speaker 2: was the name of that episode, Raising Financially Savy Children

498
00:21:40,880 --> 00:21:42,760
Speaker 2: that was back in episode four twenty seven.

499
00:21:42,800 --> 00:21:44,040
Speaker 1: We'll link to that in the show notes.

500
00:21:44,359 --> 00:21:46,800
Speaker 2: But Megan, I like, I just love the questions that

501
00:21:46,840 --> 00:21:48,840
Speaker 2: you're asking because of the fact that you are being

502
00:21:48,880 --> 00:21:51,800
Speaker 2: this proactive and this intentional with how it is that

503
00:21:51,880 --> 00:21:54,400
Speaker 2: you're raising your kids. I mean, like you are way

504
00:21:54,400 --> 00:21:58,119
Speaker 2: ahead of the curve when it comes to kids and money,

505
00:21:58,160 --> 00:22:00,320
Speaker 2: and I think that means your kids are also going

506
00:22:00,359 --> 00:22:02,040
Speaker 2: to be way ahead of the way ahead of the curve.

507
00:22:02,440 --> 00:22:04,640
Speaker 2: And I guess one thing I want to mention is

508
00:22:04,680 --> 00:22:08,960
Speaker 2: to keep in mind how it is that you handle

509
00:22:09,000 --> 00:22:11,240
Speaker 2: and talk about and relate to your finances like in

510
00:22:11,280 --> 00:22:13,919
Speaker 2: the day to day as opposed to the quote unquote

511
00:22:14,000 --> 00:22:16,000
Speaker 2: lessons that you're teaching the kids, because I think I

512
00:22:16,040 --> 00:22:18,000
Speaker 2: think one of the things I've learned, specifically with my

513
00:22:18,119 --> 00:22:20,120
Speaker 2: ten year old as she's gotten older, is I'm seeing

514
00:22:20,160 --> 00:22:24,159
Speaker 2: her adopt attitudes towards things that my wife and I

515
00:22:24,200 --> 00:22:27,399
Speaker 2: share and have similar attitudes towards, even though we have

516
00:22:27,440 --> 00:22:30,000
Speaker 2: told her maybe even the opposite, and we're like, no, no,

517
00:22:30,040 --> 00:22:32,320
Speaker 2: you're supposed to do this, But what we see her

518
00:22:32,320 --> 00:22:34,440
Speaker 2: doing is what we're actually living out.

519
00:22:34,280 --> 00:22:37,160
Speaker 1: In our life. Those you do not as you say yes, yeah.

520
00:22:37,000 --> 00:22:39,480
Speaker 2: And so not in regards to finance, has been in

521
00:22:39,520 --> 00:22:42,120
Speaker 2: regards to other areas in life, and so, Megan, even

522
00:22:42,160 --> 00:22:45,480
Speaker 2: though you are being incredibly intentional and proactive in this way,

523
00:22:45,600 --> 00:22:47,960
Speaker 2: which I love, just keep that in mind. The way

524
00:22:48,040 --> 00:22:50,720
Speaker 2: that you talk about earning money and the money that

525
00:22:50,720 --> 00:22:53,080
Speaker 2: you're saving up for a big purchase and the like

526
00:22:53,160 --> 00:22:55,479
Speaker 2: how much things cost. All of these things have an

527
00:22:55,480 --> 00:22:57,199
Speaker 2: impact on how it is that your your kids are

528
00:22:57,240 --> 00:22:57,880
Speaker 2: going to see money.

529
00:22:57,960 --> 00:23:00,160
Speaker 1: Yeah, the attitudes.

530
00:22:59,760 --> 00:23:02,000
Speaker 2: That they're they're going to develop towards their personal they're

531
00:23:02,000 --> 00:23:04,159
Speaker 2: watching all the time, It's true, and you notice that

532
00:23:04,400 --> 00:23:06,720
Speaker 2: as they get older and they're mimicking your behaviors, you're.

533
00:23:06,560 --> 00:23:08,239
Speaker 1: Like, wait a second, I didn't realize I did that.

534
00:23:08,320 --> 00:23:11,199
Speaker 1: Oh man, I really did not want them to adopt

535
00:23:11,200 --> 00:23:13,399
Speaker 1: that same way of relating to whatever it is money

536
00:23:13,760 --> 00:23:16,919
Speaker 1: or mistakes or something like that, but they really do.

537
00:23:17,000 --> 00:23:18,960
Speaker 1: So it makes it certainly causes you to pay more

538
00:23:18,960 --> 00:23:21,040
Speaker 1: attention as a parent. One of the things, by the way,

539
00:23:21,040 --> 00:23:23,320
Speaker 1: that Megan said in her question, Matt, she said, making

540
00:23:23,359 --> 00:23:25,520
Speaker 1: mistakes while the stakes are low. That's part of what

541
00:23:25,600 --> 00:23:27,040
Speaker 1: she's after. And I think that was a huge That's

542
00:23:27,040 --> 00:23:28,600
Speaker 1: a brilliant way of thinking about it. Because if you

543
00:23:28,600 --> 00:23:31,120
Speaker 1: don't teach them young and you're not working on these things, now,

544
00:23:31,359 --> 00:23:33,280
Speaker 1: guess what the first mistakes are going they're gonna make

545
00:23:33,280 --> 00:23:35,400
Speaker 1: are gonna be out from under your roof. They're gonna

546
00:23:35,560 --> 00:23:38,080
Speaker 1: likely be bigger mistakes, harder to remedy, and so I

547
00:23:38,160 --> 00:23:38,959
Speaker 1: like that sort of approach.

548
00:23:39,000 --> 00:23:40,400
Speaker 2: Okay, so that makes me think of did I tell

549
00:23:40,400 --> 00:23:42,600
Speaker 2: you about again, going back to the ten year old,

550
00:23:42,800 --> 00:23:44,960
Speaker 2: the purchase that she made out a volleyball game. She

551
00:23:45,000 --> 00:23:48,639
Speaker 2: went and saw the Atlanta Vibe, which is like Atlanta's

552
00:23:48,880 --> 00:23:52,080
Speaker 2: professional women's volleyball team or whatever, and a bunch of

553
00:23:52,080 --> 00:23:54,720
Speaker 2: the girls that were going they wanted to buy hoodies

554
00:23:55,160 --> 00:23:59,520
Speaker 2: like merch essentially, and we all know that merch is

555
00:23:59,720 --> 00:24:03,600
Speaker 2: not cheap, and they like they basically they cost like

556
00:24:03,640 --> 00:24:08,480
Speaker 2: fifty bucks, these hoodies, And when they came back, some

557
00:24:08,520 --> 00:24:10,960
Speaker 2: of the parents were really upset that they weren't consulted,

558
00:24:11,000 --> 00:24:13,280
Speaker 2: and rightly, so that's a lot of money. But all

559
00:24:13,320 --> 00:24:15,040
Speaker 2: the kids were like, oh, well, I've got the money,

560
00:24:15,280 --> 00:24:17,439
Speaker 2: and I think in most cases they did. But it

561
00:24:17,480 --> 00:24:20,040
Speaker 2: was funny because it sparked a conversation between Kate and

562
00:24:20,040 --> 00:24:22,359
Speaker 2: I and I thought, man, what a great way to

563
00:24:22,600 --> 00:24:24,920
Speaker 2: realize whether or not this was a good purchase by

564
00:24:25,280 --> 00:24:28,520
Speaker 2: making a quote unquote mistake with one zero at the

565
00:24:28,600 --> 00:24:30,680
Speaker 2: end of it rather than two or three or four

566
00:24:30,760 --> 00:24:33,119
Speaker 2: zeros at the end of it. Because ultimately a couple

567
00:24:33,119 --> 00:24:36,080
Speaker 2: of the girls they had buyer's remorse a little bit

568
00:24:36,080 --> 00:24:36,960
Speaker 2: because of how much they.

569
00:24:36,960 --> 00:24:38,840
Speaker 1: Cost, but also in the moment it sounds awesome.

570
00:24:38,920 --> 00:24:40,360
Speaker 2: The moment. It was fun and they were all kind

571
00:24:40,359 --> 00:24:41,960
Speaker 2: of doing it, and they were thinking that they could

572
00:24:41,960 --> 00:24:44,400
Speaker 2: get some bunch of the players to sign the hoodies

573
00:24:44,480 --> 00:24:46,520
Speaker 2: or the jerseys or whatever, and that didn't actually and

574
00:24:46,960 --> 00:24:49,280
Speaker 2: it didn't happen. There may be a couple of tears.

575
00:24:49,000 --> 00:24:51,879
Speaker 1: Shed, but it was a return policy on these.

576
00:24:52,000 --> 00:24:54,320
Speaker 2: We love the fact though, that this was a mistake

577
00:24:54,359 --> 00:24:56,720
Speaker 2: that they were able to make, like super small stakes. Yeah,

578
00:24:56,720 --> 00:24:59,760
Speaker 2: there wasn't much riding on the line, and these are

579
00:24:59,800 --> 00:25:01,800
Speaker 2: all small little lessons that are going to inform the

580
00:25:01,800 --> 00:25:03,440
Speaker 2: future decisions that they make for sure.

581
00:25:03,280 --> 00:25:06,840
Speaker 1: And how parents respond to them matters to ye. Yes, yeah, yeah,

582
00:25:06,880 --> 00:25:08,960
Speaker 1: And that's what I've had to learn too, by the way,

583
00:25:08,960 --> 00:25:11,240
Speaker 1: with my kids spending money is like it's their money,

584
00:25:11,480 --> 00:25:14,120
Speaker 1: and I don't I need to think I have less

585
00:25:14,359 --> 00:25:16,960
Speaker 1: say because it really is their money. That's just something

586
00:25:16,960 --> 00:25:18,960
Speaker 1: else I've learned as a parent too. And I love

587
00:25:19,000 --> 00:25:20,840
Speaker 1: that you're using the jar method. By the way, Megan,

588
00:25:20,920 --> 00:25:24,040
Speaker 1: we actually started off using a digital money money management

589
00:25:24,080 --> 00:25:27,359
Speaker 1: app called go Henry in our house, Matt, you used

590
00:25:27,359 --> 00:25:29,600
Speaker 1: it too, and it's a fantastic app. I'm not trying

591
00:25:29,600 --> 00:25:32,320
Speaker 1: to throw shade or anything like that, but we realized

592
00:25:32,640 --> 00:25:35,320
Speaker 1: pretty quickly that it just wasn't right for the age

593
00:25:35,359 --> 00:25:37,040
Speaker 1: and the stage that we were at when our kids

594
00:25:37,040 --> 00:25:39,199
Speaker 1: were even younger. The one thing that it did do

595
00:25:39,760 --> 00:25:42,280
Speaker 1: was it helped with knowing how much money they had

596
00:25:42,320 --> 00:25:44,280
Speaker 1: at any given time, which is the problem you're running into.

597
00:25:44,480 --> 00:25:47,320
Speaker 1: It made it easy to send their money money their

598
00:25:47,359 --> 00:25:49,760
Speaker 1: way on a recurring basis. That was nice too. But

599
00:25:50,000 --> 00:25:52,480
Speaker 1: what it didn't do that the jar or the envelope

600
00:25:52,480 --> 00:25:55,680
Speaker 1: method actually does is helped make money tangible, right, And

601
00:25:55,720 --> 00:25:57,960
Speaker 1: so I love giving my kids real dollar bills and

602
00:25:58,000 --> 00:26:01,440
Speaker 1: then funneling those dollars into the various quote unquote accounts

603
00:26:01,480 --> 00:26:04,000
Speaker 1: every single week, their give, save, and spend accounts, and

604
00:26:04,040 --> 00:26:06,399
Speaker 1: so I do think that's a helpful way to connect

605
00:26:06,400 --> 00:26:10,000
Speaker 1: the dots for preteens and for younger kids, I think

606
00:26:10,080 --> 00:26:12,760
Speaker 1: it's best to save the apps typically for when they're older.

607
00:26:12,760 --> 00:26:15,240
Speaker 1: So much depends on your kids, your family, how you

608
00:26:15,240 --> 00:26:18,040
Speaker 1: guys roll. But for us, I think we we went

609
00:26:18,320 --> 00:26:21,680
Speaker 1: digital first, and we realized we need tangible first, analog first,

610
00:26:21,880 --> 00:26:23,480
Speaker 1: we'll move to digital later on. Yep.

611
00:26:23,520 --> 00:26:25,800
Speaker 2: In that way, we're taking more of the Jonathan Height approach. Well,

612
00:26:25,800 --> 00:26:29,640
Speaker 2: we're delaying the use of the apps and phones for

613
00:26:29,760 --> 00:26:32,640
Speaker 2: some of those those later teenage yeers. And by the way,

614
00:26:32,640 --> 00:26:35,560
Speaker 2: Megan mentioned the green Light app, which is also that's

615
00:26:35,640 --> 00:26:37,800
Speaker 2: very similar to Go Henry. We like what both of

616
00:26:37,840 --> 00:26:41,000
Speaker 2: those are up too. But the problem that she's running

617
00:26:41,040 --> 00:26:43,040
Speaker 2: into here, it's a real one. It's hard to know

618
00:26:43,200 --> 00:26:45,720
Speaker 2: how much money they have in their jar or in

619
00:26:45,760 --> 00:26:48,760
Speaker 2: their envelope on the fly when they want to buy something.

620
00:26:49,200 --> 00:26:51,399
Speaker 2: And the first solution here is just to prevent that

621
00:26:51,440 --> 00:26:54,000
Speaker 2: situation from happening in the first place. Because if you

622
00:26:54,160 --> 00:26:56,000
Speaker 2: know that you're gonna go out somewhere and you're likely

623
00:26:56,119 --> 00:26:58,119
Speaker 2: gonna or your kids are gonna are likely going to

624
00:26:58,200 --> 00:26:59,840
Speaker 2: want to make a purchase, we'll just make sure that

625
00:26:59,840 --> 00:27:02,399
Speaker 2: you have them bring their money along. It's not typically

626
00:27:02,480 --> 00:27:05,600
Speaker 2: something they do because kids don't have typically wallets or purses.

627
00:27:05,640 --> 00:27:09,399
Speaker 2: Then you know there's no need for them to do that.

628
00:27:09,440 --> 00:27:12,280
Speaker 2: But if you know that, Okay, here's a store like

629
00:27:12,359 --> 00:27:14,680
Speaker 2: Target where they're gonna want to spend money because they

630
00:27:14,680 --> 00:27:16,280
Speaker 2: got that display right there at the entrance of the

631
00:27:16,280 --> 00:27:19,960
Speaker 2: store where everything's affordable and everything looks so within reach

632
00:27:20,680 --> 00:27:23,520
Speaker 2: of even the budget of a child. We'll see if

633
00:27:23,520 --> 00:27:25,600
Speaker 2: he can show up with that money ready to go,

634
00:27:25,840 --> 00:27:28,280
Speaker 2: but you don't always know that that's going to happen,

635
00:27:28,320 --> 00:27:30,880
Speaker 2: and you might find yourself in a situation where you're

636
00:27:30,880 --> 00:27:34,000
Speaker 2: having to try to remember. So to solve this problem,

637
00:27:34,000 --> 00:27:35,160
Speaker 2: you can go a few different ways here.

638
00:27:35,359 --> 00:27:35,560
Speaker 1: Then.

639
00:27:35,640 --> 00:27:37,879
Speaker 2: The first is to put the onus on your kids,

640
00:27:38,160 --> 00:27:40,119
Speaker 2: and this is especially true I think for like a

641
00:27:40,160 --> 00:27:42,040
Speaker 2: ten year old. But tell them that they need to

642
00:27:42,119 --> 00:27:43,640
Speaker 2: keep up with the actual dollars.

643
00:27:43,960 --> 00:27:44,560
Speaker 1: It's up to.

644
00:27:44,520 --> 00:27:47,119
Speaker 2: Them to bring along the money when they want to

645
00:27:47,119 --> 00:27:49,080
Speaker 2: buy something, but if they don't, it's up to them

646
00:27:49,080 --> 00:27:51,679
Speaker 2: to know roughly what they have on hand for the

647
00:27:51,720 --> 00:27:55,080
Speaker 2: times where you just happen to be somewhere where you

648
00:27:55,200 --> 00:27:58,359
Speaker 2: weren't necessarily planning to make a purchase. But there's something

649
00:27:58,480 --> 00:28:01,359
Speaker 2: that is especially a track to them. And this is

650
00:28:01,400 --> 00:28:03,240
Speaker 2: a great way I think to kind of transition into

651
00:28:03,320 --> 00:28:05,720
Speaker 2: them being able to manage their money a little more

652
00:28:05,760 --> 00:28:08,560
Speaker 2: autonomously on their own is by at the very least

653
00:28:08,800 --> 00:28:12,119
Speaker 2: putting them in charge. Like they are responsible for their dollars.

654
00:28:12,200 --> 00:28:14,320
Speaker 2: They are in charge of at least the dollar amount

655
00:28:14,400 --> 00:28:17,040
Speaker 2: that they have back at home. They're responsible for that amount.

656
00:28:17,119 --> 00:28:19,320
Speaker 1: Yeah, and that's I think that going that to that

657
00:28:19,400 --> 00:28:21,520
Speaker 1: route is gonna take a little bit of parental grace

658
00:28:21,600 --> 00:28:23,479
Speaker 1: because there's gonna be times whe they're like, pretty sure,

659
00:28:23,520 --> 00:28:26,200
Speaker 1: I've got forty bucks, but they forgot about one purchase

660
00:28:26,240 --> 00:28:27,720
Speaker 1: in between or something like that, and so they show

661
00:28:27,760 --> 00:28:29,600
Speaker 1: up and there's something they want and it turns out

662
00:28:29,640 --> 00:28:31,720
Speaker 1: that they got twenty five bucks. And so you get

663
00:28:31,760 --> 00:28:33,879
Speaker 1: back home and you're like, oh, trying to rectify the

664
00:28:33,880 --> 00:28:36,360
Speaker 1: situation and balance the account, and it turns out there

665
00:28:36,359 --> 00:28:39,240
Speaker 1: wasn't enough money in there. And so this doesn't necessarily

666
00:28:39,280 --> 00:28:42,800
Speaker 1: mean you taking it, taking the lumps and paying the

667
00:28:42,800 --> 00:28:45,600
Speaker 1: fifteen bucks or whatever the whatever the margin of difference was.

668
00:28:46,480 --> 00:28:48,240
Speaker 1: You're gonna have to find another way to deal with that,

669
00:28:48,280 --> 00:28:50,200
Speaker 1: maybe debiting their next allowance something like that. I think

670
00:28:50,200 --> 00:28:52,080
Speaker 1: that's a reasonable way to go, and then teaches them

671
00:28:52,080 --> 00:28:54,160
Speaker 1: another elements of personal finance. When do you do that?

672
00:28:54,240 --> 00:28:54,360
Speaker 4: Right?

673
00:28:54,800 --> 00:28:56,920
Speaker 2: Yeah, exactly, this is how much you ho, mommy, you ow.

674
00:28:56,880 --> 00:28:58,920
Speaker 1: Mommy fifteen bucks and so this is how we're gonna roll. Like,

675
00:28:58,960 --> 00:29:01,200
Speaker 1: you're gonna pay me back two bucks a week over

676
00:29:01,200 --> 00:29:04,080
Speaker 1: the course of the next whatever, like almost eight weeks. Yeah.

677
00:29:04,360 --> 00:29:07,160
Speaker 2: I mean, I think the risk that you run there

678
00:29:07,280 --> 00:29:09,360
Speaker 2: is things getting too complicated, and that's I guess. Another

679
00:29:09,400 --> 00:29:11,320
Speaker 2: point I want to make here is that if they

680
00:29:11,360 --> 00:29:13,560
Speaker 2: don't remember, I think it's not too difficult for you

681
00:29:13,640 --> 00:29:15,560
Speaker 2: to remember. I mean, this is honestly, this is how

682
00:29:15,600 --> 00:29:17,600
Speaker 2: we do it. In the moment, we roughly know about

683
00:29:17,600 --> 00:29:21,000
Speaker 2: how much money each of our kids has, and before

684
00:29:21,000 --> 00:29:23,040
Speaker 2: they make the purchase, we make it very clear that, like, hey,

685
00:29:23,080 --> 00:29:24,160
Speaker 2: this is about how.

686
00:29:24,120 --> 00:29:24,760
Speaker 1: Much we think you have.

687
00:29:24,880 --> 00:29:26,440
Speaker 2: This is how much this costs. Are you sure you

688
00:29:26,480 --> 00:29:28,080
Speaker 2: want to do this? I'm like, yeah, it's like okay,

689
00:29:28,520 --> 00:29:29,520
Speaker 2: then we will do that.

690
00:29:29,600 --> 00:29:31,080
Speaker 1: It's funny, I don't know how much my kids have.

691
00:29:31,120 --> 00:29:31,560
Speaker 1: Oh really?

692
00:29:31,640 --> 00:29:34,600
Speaker 2: Yeah, okay, I guess it kind of depends on the family.

693
00:29:34,640 --> 00:29:36,480
Speaker 2: But the point I'm trying to make here, though, is

694
00:29:36,520 --> 00:29:39,880
Speaker 2: that this isn't a perfect way of accounting, which I

695
00:29:39,920 --> 00:29:41,920
Speaker 2: know probably sounds funny coming from the guy that has

696
00:29:41,960 --> 00:29:45,000
Speaker 2: the Excel spreadsheets going back to two thousand and six

697
00:29:45,120 --> 00:29:47,600
Speaker 2: or whatever of every single cent that he's ever spent.

698
00:29:48,040 --> 00:29:49,680
Speaker 2: But we're talking about kids here, and I think what's

699
00:29:49,680 --> 00:29:52,040
Speaker 2: more important here are the principles as opposed to a

700
00:29:52,040 --> 00:29:55,280
Speaker 2: perfect ledger of how much money your kids have a

701
00:29:55,360 --> 00:29:57,480
Speaker 2: home like this isn't true too, Yeah, Like we're not

702
00:29:57,480 --> 00:29:59,400
Speaker 2: looking for a perfect balance sheet, like this isn't a

703
00:29:59,400 --> 00:30:02,360
Speaker 2: publicly trade company. This is like your kid's money and

704
00:30:02,360 --> 00:30:03,360
Speaker 2: how much they've gotten a jar.

705
00:30:03,480 --> 00:30:05,760
Speaker 6: Yeah, that goes back to the grace factor, I think, right, yeah,

706
00:30:05,800 --> 00:30:09,200
Speaker 6: exactly exactly, And so I just think it's important to

707
00:30:09,240 --> 00:30:11,960
Speaker 6: focus on the principles and have that be the priority

708
00:30:12,000 --> 00:30:14,920
Speaker 6: as opposed to the perfection, and which might be more

709
00:30:14,960 --> 00:30:17,160
Speaker 6: difficult if for somebody that has maybe more of an

710
00:30:17,200 --> 00:30:18,840
Speaker 6: accounting numbers background.

711
00:30:18,920 --> 00:30:21,160
Speaker 1: I think, Okay, the other thing you can do is

712
00:30:21,240 --> 00:30:22,840
Speaker 1: kind of a mix of the two, the analog and

713
00:30:22,880 --> 00:30:25,480
Speaker 1: the digital. So maybe let's say you use the analog

714
00:30:25,680 --> 00:30:29,280
Speaker 1: for the saving and for the giving portion of those dollars,

715
00:30:29,280 --> 00:30:31,040
Speaker 1: but then you do have a digital tool like green

716
00:30:31,120 --> 00:30:33,480
Speaker 1: Light or go Henry, whatever it is. I think green Light,

717
00:30:33,480 --> 00:30:34,960
Speaker 1: by the way, is four ninety nine a month for

718
00:30:35,040 --> 00:30:36,479
Speaker 1: up to five kids. I think go Henry is four

719
00:30:36,560 --> 00:30:38,800
Speaker 1: ninety nine a month per kid. So you want to

720
00:30:38,840 --> 00:30:40,520
Speaker 1: take that into account before you figure out which one

721
00:30:40,520 --> 00:30:41,200
Speaker 1: you get a sign up for.

722
00:30:41,360 --> 00:30:43,720
Speaker 2: Definitely a volume discount involved when it comes to green Light.

723
00:30:43,920 --> 00:30:46,080
Speaker 1: Yeah, but let's say you're like cool four nine nine

724
00:30:46,120 --> 00:30:48,280
Speaker 1: a month. I'm willing to spend that sixty bucks a

725
00:30:48,320 --> 00:30:52,120
Speaker 1: year and that covers three kids. And guess what. Now,

726
00:30:52,240 --> 00:30:54,960
Speaker 1: I have the ability to keep up with how much

727
00:30:55,000 --> 00:30:57,120
Speaker 1: money they have on hand at all times. I have

728
00:30:57,160 --> 00:31:00,200
Speaker 1: the ability to like funnel their allowance directly into that account,

729
00:31:00,560 --> 00:31:02,440
Speaker 1: and there's an app, a handy little app that goes

730
00:31:02,440 --> 00:31:04,280
Speaker 1: along with it. But then for the other things, there's

731
00:31:04,320 --> 00:31:06,880
Speaker 1: a tangible reality of the actual dollars going into their hands.

732
00:31:06,920 --> 00:31:09,120
Speaker 1: So maybe maybe it's the best of both worlds approach.

733
00:31:09,240 --> 00:31:11,000
Speaker 1: I think this comes down to the individual family and

734
00:31:11,000 --> 00:31:13,200
Speaker 1: stuff like that, but hopefully that's at least food for

735
00:31:13,280 --> 00:31:16,840
Speaker 1: thought so that you can approach that allowance and those

736
00:31:16,880 --> 00:31:20,600
Speaker 1: spending categories thoughtfully with them and without too much rigidity,

737
00:31:20,680 --> 00:31:21,720
Speaker 1: kind of like you're alluding to MAP.

738
00:31:21,800 --> 00:31:23,440
Speaker 2: Yeah, yeah, I think it's a good way to transition

739
00:31:23,840 --> 00:31:26,760
Speaker 2: to that, but especially focusing on that in the teenage years,

740
00:31:26,800 --> 00:31:28,600
Speaker 2: I think in the interim, and especially if you have

741
00:31:28,640 --> 00:31:32,120
Speaker 2: younger kids. One step that we haven't talked about is basically,

742
00:31:32,200 --> 00:31:33,960
Speaker 2: like when you are out and you make the purchase

743
00:31:34,200 --> 00:31:36,080
Speaker 2: for your kid, because they don't have the money on them,

744
00:31:36,360 --> 00:31:38,520
Speaker 2: making sure that you complete that transaction, so like when

745
00:31:38,520 --> 00:31:41,840
Speaker 2: you get home, like immediately going to their jars, to

746
00:31:41,880 --> 00:31:44,320
Speaker 2: their piggy bank to the envelopes. And I've even done

747
00:31:44,320 --> 00:31:46,360
Speaker 2: this before where I say, hey, let me see that.

748
00:31:46,640 --> 00:31:48,360
Speaker 1: So this happened with our first grader.

749
00:31:48,360 --> 00:31:51,120
Speaker 2: We're at like a state or national park or something

750
00:31:51,200 --> 00:31:52,760
Speaker 2: like that, in the gift shop, and she wanted to

751
00:31:52,760 --> 00:31:54,520
Speaker 2: buy this little box you know what they sell in

752
00:31:54,560 --> 00:31:56,240
Speaker 2: those little gift shops. It's got like her name on

753
00:31:56,320 --> 00:31:58,400
Speaker 2: it and you stick stuff in it. It's just this

754
00:31:58,480 --> 00:32:01,440
Speaker 2: little box. This wouldn't buy And so we went through it.

755
00:32:01,960 --> 00:32:03,360
Speaker 2: We said, okay, let's go ahead and get it. And

756
00:32:03,400 --> 00:32:05,200
Speaker 2: when we got home, though, the first thing we did

757
00:32:05,360 --> 00:32:07,560
Speaker 2: was make sure that she actually paid for it. And

758
00:32:07,600 --> 00:32:09,440
Speaker 2: I literally said, hey, let me hold that.

759
00:32:09,400 --> 00:32:10,920
Speaker 1: Box for a second again, let me see that.

760
00:32:11,520 --> 00:32:13,600
Speaker 2: Oh this is so cool. Oh you haven't paid for

761
00:32:13,680 --> 00:32:16,120
Speaker 2: this yet. And so we walked over to it. She

762
00:32:16,680 --> 00:32:19,120
Speaker 2: counted out the monies. That way, there's that change hammer

763
00:32:19,160 --> 00:32:23,400
Speaker 2: to her piggyback. There's that tangible exchange that's taking place,

764
00:32:23,400 --> 00:32:26,680
Speaker 2: and I think that is so important, like in hammering home,

765
00:32:27,160 --> 00:32:29,560
Speaker 2: the fact that there was a purchase made, and to

766
00:32:29,600 --> 00:32:33,239
Speaker 2: not just take care of the balance transfer like in

767
00:32:33,240 --> 00:32:35,200
Speaker 2: the background to where they don't feel it at all,

768
00:32:35,240 --> 00:32:39,080
Speaker 2: because that's the whole point of dealing specifically with cash,

769
00:32:39,120 --> 00:32:42,040
Speaker 2: with tangible, physical money, and.

770
00:32:41,760 --> 00:32:44,520
Speaker 1: It can lose its bearing in reality when it's numbers

771
00:32:44,520 --> 00:32:45,080
Speaker 1: on a page.

772
00:32:45,280 --> 00:32:48,280
Speaker 2: Yeah exactly, Yeah, yeah, And so I don't know, tying

773
00:32:48,560 --> 00:32:52,480
Speaker 2: that actual transaction, making that happen as close to when

774
00:32:52,480 --> 00:32:55,120
Speaker 2: they actually got the item as possible, I think makes

775
00:32:55,120 --> 00:32:58,040
Speaker 2: it seem even more real as opposed again, as opposed

776
00:32:58,080 --> 00:33:00,200
Speaker 2: to it just being like what the banks do at

777
00:33:00,280 --> 00:33:03,400
Speaker 2: night in the background over the internet, where they all

778
00:33:03,440 --> 00:33:04,600
Speaker 2: just like settle up that kind of thing.

779
00:33:04,640 --> 00:33:07,040
Speaker 1: I think more than anything, Megan's crushing it. And hopefully, yes,

780
00:33:07,120 --> 00:33:09,440
Speaker 1: few suggestions will help you figure out the exact right

781
00:33:09,440 --> 00:33:11,400
Speaker 1: path forward that makes sense for you and your fam.

782
00:33:11,520 --> 00:33:13,360
Speaker 1: All right, Matt, let's get to the next question. This

783
00:33:13,400 --> 00:33:15,920
Speaker 1: one comes from a lister who wants to simplify things

784
00:33:15,960 --> 00:33:16,400
Speaker 1: a little bit.

785
00:33:16,960 --> 00:33:20,880
Speaker 4: Hi, Joel and Matt. Wow, that sounds backwards. Hi, Matt

786
00:33:20,920 --> 00:33:24,560
Speaker 4: and Joel. My name is Kirby. I'm from Northern Montana.

787
00:33:25,560 --> 00:33:30,040
Speaker 4: I'd love to get your feedback on simplifying my retirement

788
00:33:30,040 --> 00:33:33,640
Speaker 4: and savings accounts. So I currently have three four one

789
00:33:33,720 --> 00:33:38,280
Speaker 4: ks and two hsas it's getting a little busy, so

790
00:33:38,360 --> 00:33:40,960
Speaker 4: I just started a new career with a great company

791
00:33:41,040 --> 00:33:43,720
Speaker 4: I plan on staying with for a very long time.

792
00:33:44,440 --> 00:33:47,560
Speaker 4: That came with a new HSA and a new four

793
00:33:47,600 --> 00:33:51,720
Speaker 4: O one K with a six percent match, I might add,

794
00:33:52,080 --> 00:33:56,040
Speaker 4: and it is with Vanguard. Aside from that, I have

795
00:33:56,200 --> 00:33:58,480
Speaker 4: an old four O one K with Vanguard from a

796
00:33:58,520 --> 00:34:02,240
Speaker 4: previous employer. I can't contribute to it, but it has

797
00:34:02,560 --> 00:34:07,200
Speaker 4: good investments and it continues to grow. My other FORUMK

798
00:34:07,760 --> 00:34:11,600
Speaker 4: is a little under a thousand with Boya. Some of

799
00:34:11,640 --> 00:34:14,640
Speaker 4: it's company stock that I wouldn't have to pay taxes on.

800
00:34:15,239 --> 00:34:18,640
Speaker 4: I can roll over the full amount to Vanguard or

801
00:34:19,400 --> 00:34:23,680
Speaker 4: cash out and put the entirety of that amount to

802
00:34:24,000 --> 00:34:28,359
Speaker 4: a high interest credit card debt. And aside from all that,

803
00:34:28,520 --> 00:34:32,239
Speaker 4: I have another HSA with a previous employer. From what

804
00:34:32,320 --> 00:34:35,719
Speaker 4: I understand, I can keep this account and contribute to

805
00:34:35,719 --> 00:34:38,759
Speaker 4: it as long as I have a high deductible healthcare plan,

806
00:34:38,920 --> 00:34:43,080
Speaker 4: which I do through my employer. Please correct me if

807
00:34:43,120 --> 00:34:48,239
Speaker 4: I'm wrong. I'm not an HSA expert like you guys are,

808
00:34:49,160 --> 00:34:53,520
Speaker 4: So what would your advice be to simplify this mess?

809
00:34:54,239 --> 00:34:58,520
Speaker 4: Which accounts can and should I keep? And then after that,

810
00:34:58,719 --> 00:35:04,240
Speaker 4: what order should I contribute to these accounts? To maximize

811
00:35:04,600 --> 00:35:06,680
Speaker 4: my future. Thank you for your help.

812
00:35:06,840 --> 00:35:09,239
Speaker 1: Oh, matthe this begs a question, is Matt and Joel

813
00:35:09,239 --> 00:35:09,600
Speaker 1: and Matt?

814
00:35:09,800 --> 00:35:12,320
Speaker 2: Does one sound better because of the consonants?

815
00:35:12,600 --> 00:35:13,200
Speaker 1: I think that's it.

816
00:35:13,920 --> 00:35:16,359
Speaker 2: Yeah, I don't know, that's a good question. I think

817
00:35:16,360 --> 00:35:18,319
Speaker 2: you can flip. Literally have never thought about that before.

818
00:35:18,360 --> 00:35:20,440
Speaker 2: But Kirby, thank you so much for reaching out. And

819
00:35:20,480 --> 00:35:23,680
Speaker 2: actually I want to she mentioned something too about this mess,

820
00:35:24,000 --> 00:35:27,880
Speaker 2: and I'm going to highlight the fact a she feels

821
00:35:27,880 --> 00:35:29,440
Speaker 2: that this is a mess. That's why she's asking us

822
00:35:29,560 --> 00:35:31,440
Speaker 2: how it is that she can simplify. But having multiple

823
00:35:31,480 --> 00:35:35,040
Speaker 2: accounts it doesn't necessarily mean that your finances are a

824
00:35:35,080 --> 00:35:36,759
Speaker 2: wreck or that it is a mess. I think it

825
00:35:36,800 --> 00:35:38,719
Speaker 2: kind of depends on the individual. And if you can

826
00:35:38,760 --> 00:35:41,200
Speaker 2: keep up with multiple accounts, I think there's nothing wrong

827
00:35:41,239 --> 00:35:44,200
Speaker 2: with that if it makes financial sense. But like Kirby

828
00:35:44,239 --> 00:35:47,200
Speaker 2: pointed out, there are some things kind of going against

829
00:35:47,280 --> 00:35:49,399
Speaker 2: her on that front, and there.

830
00:35:49,360 --> 00:35:52,279
Speaker 1: Are ways to clean it up. But it also means, hey,

831
00:35:52,400 --> 00:35:54,800
Speaker 1: I've been investing consistently every time it's been offered to

832
00:35:54,840 --> 00:35:56,880
Speaker 1: me and that should be congratulated.

833
00:35:57,040 --> 00:35:58,880
Speaker 2: That's kind of a good sign. And congrats on the

834
00:35:58,920 --> 00:35:59,520
Speaker 2: new job.

835
00:35:59,640 --> 00:36:00,200
Speaker 1: By the way.

836
00:36:00,239 --> 00:36:02,120
Speaker 2: I think she mentioned she's going to be with or

837
00:36:02,160 --> 00:36:04,799
Speaker 2: she is now with a company that she's happy to

838
00:36:04,880 --> 00:36:07,040
Speaker 2: be with for a long time. I feel like it's

839
00:36:07,320 --> 00:36:09,239
Speaker 2: seems like a great feeling to know that you're going

840
00:36:09,280 --> 00:36:11,120
Speaker 2: to be somewhere where you can kind of put on

841
00:36:11,160 --> 00:36:14,520
Speaker 2: your roots. Or maybe it's just like an aspirational dream

842
00:36:14,560 --> 00:36:16,480
Speaker 2: company that you've been working towards for a long time.

843
00:36:16,560 --> 00:36:18,560
Speaker 1: Especially if they which is awesome, a six percent match,

844
00:36:18,640 --> 00:36:21,680
Speaker 1: I mean alongside an HSA, which is killer. I'd hold

845
00:36:21,680 --> 00:36:22,680
Speaker 1: tightly to that company.

846
00:36:23,440 --> 00:36:26,399
Speaker 2: Uh yeah, So what should she do with those old

847
00:36:26,480 --> 00:36:29,520
Speaker 2: four win ks as that's her question, because we could

848
00:36:29,560 --> 00:36:31,919
Speaker 2: leave them or she could roll them over in which

849
00:36:31,920 --> 00:36:34,480
Speaker 2: one she chooses depends on a few different factors.

850
00:36:34,560 --> 00:36:36,480
Speaker 1: Yeah, it really does. And so one of the things

851
00:36:36,520 --> 00:36:38,920
Speaker 1: she mentioned was that her old four to one K

852
00:36:39,080 --> 00:36:42,719
Speaker 1: was with an insurance company called Voya, and I would say,

853
00:36:43,120 --> 00:36:45,239
Speaker 1: at least on that front, move that over to a

854
00:36:45,280 --> 00:36:49,279
Speaker 1: low cost brokerage. Stat that's because Voya charges and this

855
00:36:49,400 --> 00:36:52,120
Speaker 1: is true for many insurance companies. If you find that

856
00:36:52,160 --> 00:36:54,600
Speaker 1: your retirement account is with an insurance company, you want

857
00:36:54,600 --> 00:36:57,320
Speaker 1: to dig in and see, well, what are the fees

858
00:36:57,680 --> 00:37:00,719
Speaker 1: that they charge for doing business at the company. And

859
00:37:00,800 --> 00:37:02,719
Speaker 1: if you can avoid doing business with one of the

860
00:37:02,760 --> 00:37:05,399
Speaker 1: insurance companies, you're gonna want to because there are much

861
00:37:05,400 --> 00:37:09,000
Speaker 1: better options, much lower cost options for your investments, and

862
00:37:09,320 --> 00:37:12,640
Speaker 1: Voye charges an additional fee. They offer Vanguard funds, but

863
00:37:12,680 --> 00:37:15,000
Speaker 1: if you want to invest in those Vanguard funds, it's

864
00:37:15,040 --> 00:37:18,040
Speaker 1: gonna cost you more to do so through Voya. Basically,

865
00:37:18,040 --> 00:37:19,960
Speaker 1: what they do is they charge a third of a

866
00:37:20,040 --> 00:37:23,840
Speaker 1: point for using those Vanguard funds. So what a Vanguard

867
00:37:23,840 --> 00:37:27,560
Speaker 1: fund that would be pointzh three now cost point three

868
00:37:27,600 --> 00:37:29,719
Speaker 1: to three or something like that. It's ridiculous. It could

869
00:37:29,719 --> 00:37:32,359
Speaker 1: be ten or eleven times what it would normally cost

870
00:37:32,440 --> 00:37:35,240
Speaker 1: just because you're buying it through the wrong brokerage firm,

871
00:37:35,440 --> 00:37:37,479
Speaker 1: which is silly. Right, there's no need to keep paying

872
00:37:37,480 --> 00:37:39,759
Speaker 1: that fee now that you're no longer working for that

873
00:37:39,840 --> 00:37:42,120
Speaker 1: old employer. Basically you could do a few things. You

874
00:37:42,120 --> 00:37:45,480
Speaker 1: could roll that old account into an IRA, or you

875
00:37:45,480 --> 00:37:47,600
Speaker 1: could roll the funds into your current four oh one

876
00:37:47,680 --> 00:37:50,680
Speaker 1: K with your the employer with right now, there are

877
00:37:50,680 --> 00:37:54,000
Speaker 1: potential benefits to both and potential downsides for both. But

878
00:37:54,000 --> 00:37:55,719
Speaker 1: I would say, because your new four one K is

879
00:37:55,719 --> 00:37:59,040
Speaker 1: with Vanguard, I'd lean hard in going in that direction

880
00:37:59,400 --> 00:38:02,399
Speaker 1: to a direct rollover by contacting your new plan administrator,

881
00:38:02,760 --> 00:38:04,640
Speaker 1: let them help with the transfer. You do not want

882
00:38:04,680 --> 00:38:07,319
Speaker 1: to check in your hands. That's the main thing to say. Uh,

883
00:38:07,360 --> 00:38:09,640
Speaker 1: tell boya, listen, I'm leaving. And then they send you

884
00:38:09,680 --> 00:38:11,440
Speaker 1: a check and you're like, now I've got to get

885
00:38:11,440 --> 00:38:14,440
Speaker 1: this over to Vanguard. Contact Vanguard and allow them to

886
00:38:14,480 --> 00:38:17,080
Speaker 1: help you with the rollover so that you're not having

887
00:38:17,120 --> 00:38:20,480
Speaker 1: to be the custodian meeting a deadline to get that

888
00:38:20,520 --> 00:38:22,680
Speaker 1: money into the new account you wanted to roll over

889
00:38:22,760 --> 00:38:23,840
Speaker 1: directly if at all possible.

890
00:38:23,920 --> 00:38:26,440
Speaker 2: Yeah, and in the spirit of simplification, I mean it

891
00:38:26,480 --> 00:38:28,760
Speaker 2: sounds like you are already going to be with Vanguard

892
00:38:28,800 --> 00:38:30,960
Speaker 2: and Joel, you've even got you've got multiple accounts on

893
00:38:31,320 --> 00:38:32,520
Speaker 2: a single log in as well.

894
00:38:32,600 --> 00:38:35,480
Speaker 1: So that's my company, and at one point changed ownership

895
00:38:35,520 --> 00:38:38,960
Speaker 1: and so then they had to change the new company

896
00:38:39,160 --> 00:38:41,640
Speaker 1: essentially had a new Vanguard plan. So I've got two

897
00:38:41,680 --> 00:38:45,080
Speaker 1: different Vanguard plans but under one login, so for me,

898
00:38:45,120 --> 00:38:47,040
Speaker 1: I don't need to consolidate them, which is pretty nice.

899
00:38:47,040 --> 00:38:47,960
Speaker 1: They're both there when I log in.

900
00:38:48,040 --> 00:38:51,000
Speaker 2: Yeah, okay, let's talk about HSA's and Kirby. If I

901
00:38:51,040 --> 00:38:52,799
Speaker 2: were you, My goal would be to have all of

902
00:38:52,840 --> 00:38:56,440
Speaker 2: my HSA dollars with just one of two providers, either

903
00:38:56,680 --> 00:39:01,840
Speaker 2: Lively or Fidelity. They offer the lowest calls in the industry,

904
00:39:01,880 --> 00:39:04,799
Speaker 2: and to me, consolidating those makes a whole lot of sense.

905
00:39:05,239 --> 00:39:08,319
Speaker 2: You could contribute to your old HSA if you still

906
00:39:08,360 --> 00:39:11,320
Speaker 2: have that high deductible health care plan, but you probably

907
00:39:11,320 --> 00:39:13,799
Speaker 2: don't want to. You likely want to contribute to the

908
00:39:13,840 --> 00:39:16,839
Speaker 2: one that your employer offers, and that's because you'll likely

909
00:39:16,880 --> 00:39:18,560
Speaker 2: get a tax break for doing so.

910
00:39:18,640 --> 00:39:20,919
Speaker 1: We always talk about triple tax advantagement. This is where

911
00:39:20,960 --> 00:39:23,399
Speaker 1: the potential quadruple yes comes in.

912
00:39:23,480 --> 00:39:27,200
Speaker 2: So you avoid FIKA. That money goes in tax free,

913
00:39:27,280 --> 00:39:29,520
Speaker 2: it grows tax free, and then you get to withdraw

914
00:39:29,560 --> 00:39:32,520
Speaker 2: it tax free as well. Quadruple Those are four instances

915
00:39:32,560 --> 00:39:33,800
Speaker 2: that you get to avoid the taxman.

916
00:39:33,880 --> 00:39:37,160
Speaker 1: You withdraw a tax free when spent on qualifying medical expenses,

917
00:39:37,239 --> 00:39:39,279
Speaker 1: right exactly. You got to jump through the hoops. But man,

918
00:39:39,320 --> 00:39:40,560
Speaker 1: this is the ripest account.

919
00:39:40,600 --> 00:39:43,840
Speaker 2: If you do it is technically the most correct account.

920
00:39:44,320 --> 00:39:47,560
Speaker 2: It's certainly the most tax advantageous. Some employers that they'll

921
00:39:47,600 --> 00:39:50,920
Speaker 2: even contribute to your HSA in addition to your four

922
00:39:50,960 --> 00:39:53,480
Speaker 2: O one K, which would be awesome. And hopefully your

923
00:39:53,520 --> 00:39:57,120
Speaker 2: employer's HSA is as low cost as it's four to

924
00:39:57,120 --> 00:39:59,760
Speaker 2: oh one k, but if not, you can always contribute

925
00:40:00,000 --> 00:40:02,320
Speaker 2: and just roll those funds into a lower cost HSA

926
00:40:02,560 --> 00:40:04,520
Speaker 2: down the road as well. And so I think you've

927
00:40:04,560 --> 00:40:06,480
Speaker 2: got you've got some great options laid out before you.

928
00:40:06,560 --> 00:40:09,239
Speaker 1: Yeah, you might find oh wait, this HSA provider isn't

929
00:40:09,239 --> 00:40:11,040
Speaker 1: as low cost as the ones Matt and Joel mentioned.

930
00:40:11,280 --> 00:40:13,879
Speaker 1: I should avoid this and contribute directly one of those. Well,

931
00:40:14,000 --> 00:40:15,840
Speaker 1: then you'd miss out on that potential tax benefit. And

932
00:40:15,880 --> 00:40:17,279
Speaker 1: so what you do is you contribute to the one

933
00:40:17,320 --> 00:40:19,239
Speaker 1: that you have access to through work, and then, like

934
00:40:19,280 --> 00:40:21,560
Speaker 1: you said, Matt, you can roll that into another one

935
00:40:21,760 --> 00:40:24,520
Speaker 1: that you like better and that has lower fees in

936
00:40:24,560 --> 00:40:27,680
Speaker 1: the future. And then last thing that's worth mentioning here

937
00:40:27,680 --> 00:40:30,680
Speaker 1: on this one, Matt Kirby mentioned having some high interest

938
00:40:30,680 --> 00:40:33,360
Speaker 1: credit card debt. I would hate to see you Kirby

939
00:40:33,520 --> 00:40:35,640
Speaker 1: sell your investments in order to pay that debt off.

940
00:40:35,920 --> 00:40:40,000
Speaker 1: That's not ideal in most scenarios, but I'd also love

941
00:40:40,040 --> 00:40:41,600
Speaker 1: to see you get rid of that debt quickly. Right.

942
00:40:41,640 --> 00:40:44,200
Speaker 1: Credit Card debt, of course, is a wealth killer, especially

943
00:40:44,280 --> 00:40:47,600
Speaker 1: when we're talking about today's interest rates. It's worse than

944
00:40:47,640 --> 00:40:50,839
Speaker 1: it was a few years ago by a lot. It's

945
00:40:50,880 --> 00:40:52,560
Speaker 1: moving you in the wrong direction. It's not taking you

946
00:40:52,560 --> 00:40:54,359
Speaker 1: where you want to go. So I would say make

947
00:40:54,360 --> 00:40:57,400
Speaker 1: that a massive priority instead of selling investments, though, maybe

948
00:40:57,440 --> 00:40:59,600
Speaker 1: just dial back what you're contributing for a short period

949
00:40:59,640 --> 00:41:01,960
Speaker 1: of time until you eradicate it completely.

950
00:41:01,719 --> 00:41:04,480
Speaker 2: Yeah, rather than taking that ten percent penalty taken. So

951
00:41:04,920 --> 00:41:08,640
Speaker 2: she mentioned this is the Hoya one right, Barvoya that

952
00:41:08,680 --> 00:41:09,799
Speaker 2: she was thinking, not.

953
00:41:09,719 --> 00:41:10,680
Speaker 1: Hoya, not Georgetown.

954
00:41:10,719 --> 00:41:13,680
Speaker 2: See, if you're talking ten percent on roughly eight thousand dollars,

955
00:41:13,719 --> 00:41:16,440
Speaker 2: so you're looking at eight hundred dollars, eight hundred dollar

956
00:41:16,480 --> 00:41:17,319
Speaker 2: haircut that we're talking about.

957
00:41:17,400 --> 00:41:19,320
Speaker 1: Yeah, so you want to avoid that at all costs.

958
00:41:19,320 --> 00:41:20,759
Speaker 1: And so the best thing to do is not to,

959
00:41:21,200 --> 00:41:23,640
Speaker 1: you know, you know, break that piggy bank we were

960
00:41:23,680 --> 00:41:27,439
Speaker 1: talking about earlier of your retirement account and instead leave

961
00:41:27,480 --> 00:41:30,040
Speaker 1: that money there lingering and just dial back on it

962
00:41:30,280 --> 00:41:33,080
Speaker 1: and do whatever you can to create a debt payoff

963
00:41:33,080 --> 00:41:35,440
Speaker 1: plan so that that has gone in no time, hopefully

964
00:41:35,440 --> 00:41:38,000
Speaker 1: half a dozen months at most, but whatever it is,

965
00:41:38,040 --> 00:41:39,840
Speaker 1: like dial back for the time being, and then you

966
00:41:39,880 --> 00:41:43,200
Speaker 1: can fully ramp up those investments again. And I got

967
00:41:43,239 --> 00:41:45,839
Speaker 1: to say one other thing I like about what Kirby's question.

968
00:41:46,280 --> 00:41:48,600
Speaker 1: We love the goal of simplification what you're trying to

969
00:41:48,640 --> 00:41:51,200
Speaker 1: achieve here. Having fewer log ins, more of your money,

970
00:41:51,200 --> 00:41:54,600
Speaker 1: and fewer accounts and hopefully prioritizing the best low cost

971
00:41:54,600 --> 00:41:57,399
Speaker 1: accounts makes it easier to track. And the truth is, Matt,

972
00:41:57,440 --> 00:42:00,280
Speaker 1: you say this all the time, what gets measured gets manned.

973
00:42:00,640 --> 00:42:02,160
Speaker 1: And I think it's true that for a lot of people,

974
00:42:02,160 --> 00:42:04,879
Speaker 1: you're gonna see better results when you're more easily able

975
00:42:04,920 --> 00:42:07,600
Speaker 1: to track investment growth and net worth in a simple way.

976
00:42:07,800 --> 00:42:11,120
Speaker 1: That doesn't necessarily have to be through the Vanguard log in, right.

977
00:42:11,120 --> 00:42:13,160
Speaker 1: It could be, Oh, I've got a win NAB or

978
00:42:13,200 --> 00:42:15,720
Speaker 1: a monarch money account, and I've got all my accounts

979
00:42:15,760 --> 00:42:17,960
Speaker 1: at least in one place. But I think the easier

980
00:42:17,960 --> 00:42:19,920
Speaker 1: it is to track what's happening with your investments and

981
00:42:19,960 --> 00:42:21,920
Speaker 1: with the growth of your investments and the growth of

982
00:42:21,920 --> 00:42:23,520
Speaker 1: your net worth as you pay down debt and you

983
00:42:23,560 --> 00:42:27,919
Speaker 1: increase the value of your assets, that's a heartening thing.

984
00:42:28,000 --> 00:42:31,239
Speaker 1: And I think it's kind of like success begets success,

985
00:42:31,280 --> 00:42:34,160
Speaker 1: like it's gonna keep you coasting in the proper direction.

986
00:42:34,280 --> 00:42:36,640
Speaker 1: And the more you lose touch with that, the more

987
00:42:36,640 --> 00:42:39,239
Speaker 1: you're likely to start taking some left turns, and it's

988
00:42:39,239 --> 00:42:40,600
Speaker 1: gonna take you longer to get to where you want

989
00:42:40,600 --> 00:42:41,160
Speaker 1: to go. True.

990
00:42:41,200 --> 00:42:43,839
Speaker 2: Yeah, and again in the spirit of simplicity. So one

991
00:42:43,840 --> 00:42:46,160
Speaker 2: of the things Kirby was asking too is which accounts

992
00:42:46,440 --> 00:42:49,200
Speaker 2: or what order should she be investing in. And even

993
00:42:49,239 --> 00:42:53,280
Speaker 2: though technically speaking, the HSA is the most optimized account,

994
00:42:53,719 --> 00:42:55,600
Speaker 2: it does take a little bit of legwork. It takes

995
00:42:55,680 --> 00:42:59,000
Speaker 2: keeping up with the expenses, is tracking those receipts, storing

996
00:42:59,040 --> 00:43:01,800
Speaker 2: those away so that you are able to make qualified

997
00:43:01,800 --> 00:43:05,400
Speaker 2: withdrawals down the road as opposed to your four one

998
00:43:05,480 --> 00:43:06,400
Speaker 2: K one.

999
00:43:06,280 --> 00:43:07,880
Speaker 1: That four one K comes with a sweet match. You

1000
00:43:08,320 --> 00:43:10,359
Speaker 1: want to do that before you think about the HSA too.

1001
00:43:10,520 --> 00:43:13,600
Speaker 2: But we mentioned some employers do provide that HSA match

1002
00:43:13,600 --> 00:43:15,279
Speaker 2: as well. So basically, I guess what I'm saying is,

1003
00:43:15,400 --> 00:43:16,759
Speaker 2: let's say you've got an HSA with a match, and

1004
00:43:16,800 --> 00:43:18,040
Speaker 2: you've got a four to one K with a match.

1005
00:43:18,080 --> 00:43:19,680
Speaker 1: I would for you in this.

1006
00:43:19,600 --> 00:43:22,560
Speaker 2: Situation, Kirby, if you're looking to simplify things, maybe that

1007
00:43:22,640 --> 00:43:25,080
Speaker 2: means steering clear of the HSA and instead just simply

1008
00:43:25,080 --> 00:43:27,600
Speaker 2: focusing on the four to one K, because, yeah, the

1009
00:43:27,640 --> 00:43:31,040
Speaker 2: match is the top priority, whether it's a fifty percent

1010
00:43:31,040 --> 00:43:33,200
Speaker 2: match or one hundred percent match. The ability you're not

1011
00:43:33,239 --> 00:43:34,840
Speaker 2: going to see those You're not going to get that

1012
00:43:34,880 --> 00:43:36,920
Speaker 2: kind of a yield anywhere else. So that is the

1013
00:43:36,960 --> 00:43:38,480
Speaker 2: absolute first thing that you want to do. But if

1014
00:43:38,480 --> 00:43:41,239
Speaker 2: you're choosing between the HSA and the four to one K,

1015
00:43:41,719 --> 00:43:44,680
Speaker 2: even though it's like mathematically not the correct answer, it

1016
00:43:44,760 --> 00:43:46,440
Speaker 2: might make more sense for you to go with the

1017
00:43:46,440 --> 00:43:46,920
Speaker 2: four one K.

1018
00:43:46,960 --> 00:43:48,680
Speaker 1: And then once you're free of the worst kinds of

1019
00:43:48,680 --> 00:43:51,000
Speaker 1: death in your life, maybe you can do both. But

1020
00:43:51,080 --> 00:43:53,480
Speaker 1: for now, man, yeah, laser focus on the four O

1021
00:43:53,520 --> 00:43:56,040
Speaker 1: one K and the credit card debt payoff, and then

1022
00:43:56,080 --> 00:43:58,040
Speaker 1: you can move on to bigger and better things as

1023
00:43:58,080 --> 00:43:59,800
Speaker 1: you continue in your wealth building journey.

1024
00:44:00,280 --> 00:44:01,919
Speaker 2: All right, we've got more to get to. We got

1025
00:44:01,960 --> 00:44:05,080
Speaker 2: some advice for renters out there. How can you score

1026
00:44:05,280 --> 00:44:07,200
Speaker 2: a great apartment for a whole lot less? We'll get

1027
00:44:07,239 --> 00:44:08,239
Speaker 2: to that right after this.

1028
00:44:16,440 --> 00:44:18,719
Speaker 1: All right, we're back. We got more money questions to

1029
00:44:18,760 --> 00:44:21,400
Speaker 1: get to. Let's get to the Facebook question of the week.

1030
00:44:21,640 --> 00:44:25,319
Speaker 1: This one comes from Andrew. He says, I'm curious for

1031
00:44:25,400 --> 00:44:28,400
Speaker 1: those still renting or looking to rent a bigger place

1032
00:44:28,760 --> 00:44:31,680
Speaker 1: when buying is still way too expensive. Talked about that

1033
00:44:31,719 --> 00:44:33,560
Speaker 1: just a little bit earlier, didn't we? He says, are

1034
00:44:33,600 --> 00:44:36,680
Speaker 1: you experiencing rental bidding wars? We live in a very

1035
00:44:36,680 --> 00:44:39,239
Speaker 1: competitive and expensive city, and I have a feeling that

1036
00:44:39,400 --> 00:44:42,839
Speaker 1: everyone is competing for the same apartments. Can anyone tell

1037
00:44:42,840 --> 00:44:45,840
Speaker 1: me their experience and maybe some lessons learned in the process.

1038
00:44:46,080 --> 00:44:49,799
Speaker 2: Well, I'll say, assassinating that in Andrew's market there are

1039
00:44:49,840 --> 00:44:53,279
Speaker 2: still rental bidding wars happening. Because so we can't tell

1040
00:44:53,320 --> 00:44:55,320
Speaker 2: where he's from, but in a lot of the country,

1041
00:44:55,360 --> 00:45:00,040
Speaker 2: demand is actually down. Rents are declining, and instead of

1042
00:45:00,040 --> 00:45:03,160
Speaker 2: getting like ten applicants, landlords are getting just like two.

1043
00:45:04,320 --> 00:45:09,279
Speaker 2: Specifically Austin, Atlanta, Miami, Phoenix, Memphis, they are all seeing

1044
00:45:09,320 --> 00:45:12,359
Speaker 2: declines of three to four percent year over year. And

1045
00:45:12,560 --> 00:45:15,520
Speaker 2: I'm guessing Andrew that he might be somewhere out west

1046
00:45:15,719 --> 00:45:17,440
Speaker 2: or maybe in the northeast, because.

1047
00:45:17,200 --> 00:45:19,279
Speaker 1: They's in Salt Lake City, I know that's yea.

1048
00:45:19,719 --> 00:45:21,600
Speaker 2: They seem to be the only places where rents are

1049
00:45:21,600 --> 00:45:24,680
Speaker 2: still climbing, where in much of the country things are

1050
00:45:24,800 --> 00:45:25,759
Speaker 2: actually cooling off.

1051
00:45:25,800 --> 00:45:28,479
Speaker 1: That's true, which is like welcomed news for renters because

1052
00:45:28,520 --> 00:45:31,560
Speaker 1: what happened. And I remember getting those questions during the

1053
00:45:31,600 --> 00:45:35,280
Speaker 1: heart of the pandemic, Matt, when prices were escalating rapidly

1054
00:45:35,719 --> 00:45:39,160
Speaker 1: on apartments and single family homes for rent across the country,

1055
00:45:39,200 --> 00:45:41,360
Speaker 1: and people were shocked when their lease was up how

1056
00:45:41,440 --> 00:45:44,480
Speaker 1: much their landlord was asking for next year's rent. It

1057
00:45:44,800 --> 00:45:46,680
Speaker 1: left people a lot of people in a tough spot.

1058
00:45:46,840 --> 00:45:50,080
Speaker 1: But even in some of those areas that you mentioned, Matt,

1059
00:45:50,080 --> 00:45:52,440
Speaker 1: the rate at which rents are rising is slowing. So

1060
00:45:52,520 --> 00:45:54,719
Speaker 1: even in the cities where rents are still going up,

1061
00:45:54,719 --> 00:45:57,200
Speaker 1: they're not going up as fast as they were. A

1062
00:45:57,239 --> 00:45:59,799
Speaker 1: close friend of ours actually had twenty showings in an

1063
00:45:59,840 --> 00:46:03,120
Speaker 1: awesome neighborhood in Los Angeles. I think two years ago

1064
00:46:03,280 --> 00:46:05,040
Speaker 1: that listing would have been gone on a weekend. He

1065
00:46:05,080 --> 00:46:06,760
Speaker 1: had a bunch of showings, but he had no takers,

1066
00:46:07,120 --> 00:46:09,800
Speaker 1: and like, this is great news, I think for renters

1067
00:46:09,840 --> 00:46:11,839
Speaker 1: everywhere where. Yeah, maybe a lot of people are looking,

1068
00:46:11,880 --> 00:46:14,879
Speaker 1: but not as many people are pouncing. Most folks are

1069
00:46:14,920 --> 00:46:17,360
Speaker 1: not going through what Andrew is. But let's talk directly

1070
00:46:17,360 --> 00:46:19,920
Speaker 1: to Andrew, because it's his question that we're answering. At

1071
00:46:19,920 --> 00:46:22,280
Speaker 1: the end of the day, how can you compete? Andrew?

1072
00:46:22,560 --> 00:46:25,080
Speaker 1: We've got a couple ideas. One is to look for

1073
00:46:25,160 --> 00:46:27,520
Speaker 1: new builds, especially if you live in a big city.

1074
00:46:27,560 --> 00:46:30,800
Speaker 1: This is easier done than it is in like smaller towns.

1075
00:46:31,400 --> 00:46:34,080
Speaker 1: Those new builds often have to offer free rent for

1076
00:46:34,200 --> 00:46:36,560
Speaker 1: a month or two in order to get their building full.

1077
00:46:36,920 --> 00:46:39,719
Speaker 1: So drive around look for new complexes that have sprung up.

1078
00:46:40,000 --> 00:46:41,600
Speaker 1: That can help in a big way. I would be

1079
00:46:42,360 --> 00:46:45,160
Speaker 1: looking to see when apartments are almost finished. If you

1080
00:46:45,200 --> 00:46:47,640
Speaker 1: live in a midtown or downtown area of a city,

1081
00:46:47,920 --> 00:46:50,480
Speaker 1: you might find that these are being completed, like one

1082
00:46:50,520 --> 00:46:52,960
Speaker 1: every couple of months, and so you might have more

1083
00:46:52,960 --> 00:46:56,480
Speaker 1: opportunity at least, Yeah, might have more opportunity looking for

1084
00:46:56,600 --> 00:47:00,400
Speaker 1: something new. And again they're trying to get that building full,

1085
00:47:00,760 --> 00:47:02,480
Speaker 1: they're going to offer you a discount to movement. Yeah.

1086
00:47:02,520 --> 00:47:04,640
Speaker 2: I think one of the other advantages of driving around

1087
00:47:04,920 --> 00:47:07,480
Speaker 2: as well is that you've got more or even walking

1088
00:47:07,520 --> 00:47:09,399
Speaker 2: around if you like let's say you're in New York,

1089
00:47:09,600 --> 00:47:11,759
Speaker 2: is that you have the ability to potentially find a

1090
00:47:11,800 --> 00:47:13,960
Speaker 2: diamond in the rough because everybody is what are they doing.

1091
00:47:13,960 --> 00:47:15,759
Speaker 2: They're sitting down, they're on their computer, they're looking for

1092
00:47:15,800 --> 00:47:18,080
Speaker 2: everything for rent. But like you said, Joel, if you

1093
00:47:18,120 --> 00:47:19,839
Speaker 2: see a new building that's being built and they've got

1094
00:47:19,840 --> 00:47:22,360
Speaker 2: a sign that says now leasing, right. Or if you

1095
00:47:22,400 --> 00:47:26,040
Speaker 2: come across a non traditional apartment or house or carriage

1096
00:47:26,080 --> 00:47:28,200
Speaker 2: house or granny flat, whatever it is. If you live

1097
00:47:28,200 --> 00:47:30,920
Speaker 2: out in the country, they call it grany flats. But

1098
00:47:30,960 --> 00:47:32,520
Speaker 2: there just might be a sign in the front yard,

1099
00:47:32,760 --> 00:47:35,319
Speaker 2: and that kind of listing isn't going to make it

1100
00:47:35,480 --> 00:47:38,759
Speaker 2: on some of the different listing websites. So basically, go

1101
00:47:38,840 --> 00:47:41,960
Speaker 2: where others aren't going, where others aren't looking, and that's

1102
00:47:41,960 --> 00:47:46,000
Speaker 2: going to present you inventory that others aren't necessarily privy to.

1103
00:47:46,120 --> 00:47:49,040
Speaker 1: Yeah, sometimes it's that adu, it is that carriage house

1104
00:47:49,120 --> 00:47:52,200
Speaker 1: or whatever, Matt that because it's an individual landlord, the

1105
00:47:52,200 --> 00:47:54,040
Speaker 1: price might be a whole lot better, And you're right,

1106
00:47:54,080 --> 00:47:57,400
Speaker 1: you might find it's a scow. Maybe it's only listed

1107
00:47:57,880 --> 00:47:58,960
Speaker 1: on a sign in the front.

1108
00:47:58,800 --> 00:48:00,960
Speaker 2: Yard, and even it's not even a price. But for Angel,

1109
00:48:01,000 --> 00:48:03,279
Speaker 2: it's about just the competition and so like he might

1110
00:48:03,320 --> 00:48:05,239
Speaker 2: be more than willing to pay the top dollar, but

1111
00:48:05,280 --> 00:48:08,680
Speaker 2: it sounds like for him it's about getting chosen out

1112
00:48:08,680 --> 00:48:10,160
Speaker 2: of all the applicants, and there are just going to

1113
00:48:10,200 --> 00:48:12,719
Speaker 2: be fewer applicants for someplace that you have to like

1114
00:48:13,000 --> 00:48:15,200
Speaker 2: show up in person and ring the doorbell. People don't

1115
00:48:15,200 --> 00:48:15,640
Speaker 2: want to do that.

1116
00:48:15,719 --> 00:48:17,720
Speaker 1: Yeah, well I guess okay. One thing on that front.

1117
00:48:17,719 --> 00:48:20,080
Speaker 1: If you want to be chosen, you need to stand out.

1118
00:48:20,160 --> 00:48:21,680
Speaker 1: And part of what it means to stand out is

1119
00:48:21,680 --> 00:48:24,360
Speaker 1: to have a great credit score, is to be prompt

1120
00:48:24,440 --> 00:48:26,960
Speaker 1: when your meeting with the landlord is to follow up.

1121
00:48:27,160 --> 00:48:29,200
Speaker 1: Makes me think of somebody who wants to get hired

1122
00:48:29,200 --> 00:48:31,440
Speaker 1: for a job oftentimes, Matt, what that takes. It is

1123
00:48:31,480 --> 00:48:34,000
Speaker 1: not just submitting a resume and then hoping that someone

1124
00:48:34,000 --> 00:48:36,279
Speaker 1: calls you back. It's being proactive, it's reaching back out. Hey,

1125
00:48:36,480 --> 00:48:39,359
Speaker 1: I'm super excited about this position, but I haven't heard

1126
00:48:39,400 --> 00:48:40,840
Speaker 1: anything in a week or two. I was just checking

1127
00:48:40,840 --> 00:48:43,440
Speaker 1: to see if there was any chance I could set

1128
00:48:43,480 --> 00:48:45,880
Speaker 1: up an interview. Those are the kind of things that

1129
00:48:45,960 --> 00:48:48,480
Speaker 1: help get people a job or otherwise they might be

1130
00:48:48,560 --> 00:48:51,359
Speaker 1: forgotten about. And I think if you're in a hot

1131
00:48:51,400 --> 00:48:53,960
Speaker 1: rental market where you live, that's a route that you

1132
00:48:53,960 --> 00:48:56,319
Speaker 1: can take too that puts you in a good light

1133
00:48:56,560 --> 00:48:58,040
Speaker 1: in front of a potential landlord.

1134
00:48:58,160 --> 00:48:59,680
Speaker 2: Yeah, and something else that you can do. And this

1135
00:48:59,719 --> 00:49:02,280
Speaker 2: is only ever happened to me as a landlord, maybe

1136
00:49:02,320 --> 00:49:05,120
Speaker 2: like once or twice I've had applicants show up and

1137
00:49:05,160 --> 00:49:08,880
Speaker 2: they had letters of recommendation from their current landlord, the

1138
00:49:08,880 --> 00:49:10,960
Speaker 2: fact that they've paid on time, the fact that they've

1139
00:49:11,120 --> 00:49:13,800
Speaker 2: taken care of the property like it was their own. Basically,

1140
00:49:13,840 --> 00:49:16,759
Speaker 2: these are like professional renters, and they.

1141
00:49:16,640 --> 00:49:17,279
Speaker 1: Made it easy on you.

1142
00:49:17,360 --> 00:49:19,160
Speaker 2: They made it easy, and yeah, of course I'm gonna

1143
00:49:19,200 --> 00:49:21,120
Speaker 2: want to rent to them, as opposed to somebody who

1144
00:49:21,760 --> 00:49:24,120
Speaker 2: may not take care of the property nearly as well

1145
00:49:24,160 --> 00:49:24,840
Speaker 2: as they, yeah.

1146
00:49:24,680 --> 00:49:26,960
Speaker 1: Or or at least doesn't go through the same lengths

1147
00:49:27,000 --> 00:49:29,120
Speaker 1: to say, none of your property is the one I want,

1148
00:49:29,160 --> 00:49:30,640
Speaker 1: and I'm gonna try to make it easy on you

1149
00:49:30,680 --> 00:49:32,319
Speaker 1: and try to give you all the proper information that

1150
00:49:32,360 --> 00:49:34,880
Speaker 1: you need up front. I think another tip for Andrew

1151
00:49:34,960 --> 00:49:37,200
Speaker 1: is to wait tilly chiller time of year, because we've

1152
00:49:37,200 --> 00:49:39,240
Speaker 1: talked about this in the past. Met the rental market

1153
00:49:39,280 --> 00:49:42,799
Speaker 1: is typically the hottest in spring. Talked about April and

1154
00:49:42,840 --> 00:49:45,320
Speaker 1: May being the time when everyone's competing for all the

1155
00:49:45,360 --> 00:49:48,200
Speaker 1: same units. And granted they're typically more units available that

1156
00:49:48,239 --> 00:49:50,600
Speaker 1: time of year, but you might find than in November

1157
00:49:50,600 --> 00:49:53,160
Speaker 1: and December there's less competition. So can you sign a

1158
00:49:53,320 --> 00:49:55,839
Speaker 1: six month lease and then try to find something in

1159
00:49:55,920 --> 00:49:58,279
Speaker 1: the late fall early winter, you're gonna find that a

1160
00:49:58,320 --> 00:50:00,600
Speaker 1: lot of your competition is gone. I have quite as

1161
00:50:00,680 --> 00:50:03,800
Speaker 1: much choice from a rental unit perspective. But the landlord

1162
00:50:03,840 --> 00:50:06,719
Speaker 1: also might be begging for you to sign because you're

1163
00:50:06,719 --> 00:50:07,680
Speaker 1: the only person applying.

1164
00:50:07,960 --> 00:50:10,480
Speaker 2: I think just asking around as well, like going back

1165
00:50:10,520 --> 00:50:13,680
Speaker 2: to finding the inventory, because it sounds like he is

1166
00:50:13,719 --> 00:50:15,960
Speaker 2: thinking that everyone is competing for the same apartments. But

1167
00:50:16,080 --> 00:50:19,000
Speaker 2: like the ability to expand the pie essentially and not

1168
00:50:19,040 --> 00:50:21,719
Speaker 2: thinking in sort of a scarcity sort of mindset, but

1169
00:50:21,840 --> 00:50:23,880
Speaker 2: like talking about it with your cowork is sort of

1170
00:50:23,920 --> 00:50:26,400
Speaker 2: like we're talking about at the beginning of the episode.

1171
00:50:26,440 --> 00:50:29,840
Speaker 2: But the ability to have these conversations about money in

1172
00:50:29,880 --> 00:50:31,799
Speaker 2: this case, talk about your housing and how you can't

1173
00:50:31,840 --> 00:50:34,919
Speaker 2: find something, talk to the barista at the coffee shop

1174
00:50:34,920 --> 00:50:38,920
Speaker 2: that you go to. The ability for units to magically

1175
00:50:38,920 --> 00:50:41,000
Speaker 2: appear because it's something that you're looking for. I think

1176
00:50:41,040 --> 00:50:42,840
Speaker 2: that is the kind of out of the box thinking

1177
00:50:42,880 --> 00:50:44,600
Speaker 2: that is going to allow you to find something that

1178
00:50:44,880 --> 00:50:47,000
Speaker 2: a thousand other people aren't also buying for.

1179
00:50:47,080 --> 00:50:49,040
Speaker 1: That's right. Yeah, the barista might say, Oh, actually, my

1180
00:50:49,120 --> 00:50:51,080
Speaker 1: nixt door neighbor's moving out. That's funny. I'll put you

1181
00:50:51,080 --> 00:50:51,880
Speaker 1: in touch with my landlord.

1182
00:50:51,960 --> 00:50:54,879
Speaker 2: Like, there's a guy that comes in here every morning

1183
00:50:54,880 --> 00:50:57,400
Speaker 2: at eight o'clock, and I'm pretty sure he manages like

1184
00:50:57,440 --> 00:51:00,319
Speaker 2: a bunch of different properties. Stick around or show up

1185
00:51:00,320 --> 00:51:01,960
Speaker 2: a little bit early. Maybe you can be the guy

1186
00:51:02,239 --> 00:51:05,719
Speaker 2: you never know putting out the vibes matters. Vibes matter,

1187
00:51:05,800 --> 00:51:07,879
Speaker 2: But Angel, we wish you the best of luck.

1188
00:51:08,320 --> 00:51:08,520
Speaker 1: Joe.

1189
00:51:08,560 --> 00:51:10,239
Speaker 2: Let's get back to the beer real quick that you

1190
00:51:10,280 --> 00:51:13,200
Speaker 2: and I enjoyed during this episode. This is an Aldi

1191
00:51:13,280 --> 00:51:16,080
Speaker 2: beer you say enjoyed. It might be an over statement, Well,

1192
00:51:16,120 --> 00:51:19,560
Speaker 2: yours is gone. Actually I noticed at the beginning you

1193
00:51:19,560 --> 00:51:21,279
Speaker 2: didn't touch it at all, but then you just like

1194
00:51:21,480 --> 00:51:22,680
Speaker 2: snuck it down chug.

1195
00:51:22,880 --> 00:51:27,280
Speaker 1: I promise this one was you know meh. It's honestly

1196
00:51:27,320 --> 00:51:28,560
Speaker 1: not as bad as I thought it would be.

1197
00:51:28,680 --> 00:51:31,560
Speaker 2: Same still not a joyful beer. Though not a joyful beer.

1198
00:51:31,719 --> 00:51:33,480
Speaker 1: It had like a little bit of a sour element,

1199
00:51:33,520 --> 00:51:36,040
Speaker 1: which this is a lagger, and laggers are not supposed

1200
00:51:36,040 --> 00:51:38,200
Speaker 1: to be sour, which is did you notice much? It

1201
00:51:38,239 --> 00:51:39,800
Speaker 1: might be a sign that it's a little old. It

1202
00:51:39,840 --> 00:51:43,560
Speaker 1: could be yeah, or just bad, just not great. It's

1203
00:51:43,680 --> 00:51:45,680
Speaker 1: not as horrific as I was thinking I might have

1204
00:51:45,719 --> 00:51:47,719
Speaker 1: to stomach, but also not a beer i'd pick up again.

1205
00:51:47,760 --> 00:51:48,600
Speaker 1: I think I would give it.

1206
00:51:49,080 --> 00:51:50,960
Speaker 2: Did we ever say how many stars we would give

1207
00:51:50,960 --> 00:51:53,800
Speaker 2: it on untapped because chap they rate out of five,

1208
00:51:54,040 --> 00:51:56,040
Speaker 2: and typically the craft beers that we have on the

1209
00:51:56,040 --> 00:51:57,200
Speaker 2: show are like four.

1210
00:51:56,960 --> 00:51:58,800
Speaker 1: Plus star beers, right Like, they're.

1211
00:51:58,640 --> 00:52:01,400
Speaker 2: Like four, four and a quarter four half. You know,

1212
00:52:01,440 --> 00:52:03,520
Speaker 2: I'd give this one like a solid solid two and

1213
00:52:03,560 --> 00:52:03,839
Speaker 2: a half.

1214
00:52:04,320 --> 00:52:06,360
Speaker 1: Hey, maybe three, I think I'm right there with you.

1215
00:52:06,400 --> 00:52:07,759
Speaker 1: Two and a half. That's not terrible, because there are

1216
00:52:07,800 --> 00:52:09,560
Speaker 1: worst beers I've had. That being said, this is a

1217
00:52:09,600 --> 00:52:10,600
Speaker 1: crazy affordable beer.

1218
00:52:10,640 --> 00:52:12,600
Speaker 2: I think this is like eight bucks for a.

1219
00:52:12,600 --> 00:52:15,640
Speaker 1: Six pack at Aldi, so much cheaper boom than craft

1220
00:52:15,680 --> 00:52:17,840
Speaker 1: beer these days, hard to beat. So if you're an

1221
00:52:17,840 --> 00:52:22,279
Speaker 1: Aldi and you want to pick up a Cobista surveysa this,

1222
00:52:22,680 --> 00:52:25,200
Speaker 1: we don't recommend it. But it's also if you're looking

1223
00:52:25,200 --> 00:52:28,160
Speaker 1: for some cheap, not terrible, yeah, do your thing. So

1224
00:52:28,239 --> 00:52:30,000
Speaker 1: our man that's going to do it for this episode

1225
00:52:30,000 --> 00:52:32,440
Speaker 1: will put links to some of the references that we

1226
00:52:32,560 --> 00:52:34,680
Speaker 1: made up in the show notes on the website at

1227
00:52:34,680 --> 00:52:36,040
Speaker 1: howtomoney dot com.

1228
00:52:36,040 --> 00:52:37,959
Speaker 2: That's right, And by the way, if you haven't left

1229
00:52:38,040 --> 00:52:41,439
Speaker 2: us a review over at Apple Podcasts or orherever it.

1230
00:52:41,360 --> 00:52:42,400
Speaker 1: Is that you listen to podcast.

1231
00:52:42,480 --> 00:52:44,600
Speaker 2: It's been a minute since we've asked for reviews, and

1232
00:52:44,640 --> 00:52:47,600
Speaker 2: it's helpful obviously. It tells the algorithm, it tells the

1233
00:52:47,640 --> 00:52:50,560
Speaker 2: podcatchers where the good stuff is, and so we want

1234
00:52:50,600 --> 00:52:52,359
Speaker 2: folks to know that the good stuff is over at

1235
00:52:52,360 --> 00:52:53,840
Speaker 2: how to Money, So thank you in advance.

1236
00:52:53,880 --> 00:52:55,680
Speaker 1: Maybe not the good beer today, but the good show.

1237
00:52:55,719 --> 00:52:56,640
Speaker 1: I hope that's true.

1238
00:52:56,800 --> 00:52:59,239
Speaker 2: But this maybe it's a more relatable beer for most

1239
00:52:59,200 --> 00:53:01,040
Speaker 2: folks who aren't looking to drop twenty bucks on a

1240
00:53:01,080 --> 00:53:03,759
Speaker 2: single bottle like we do sometimes. But buddy, that's gonna

1241
00:53:03,760 --> 00:53:06,960
Speaker 2: be it for this episode until next time. Best Friends album,

1242
00:53:07,040 --> 00:53:20,840
Speaker 2: best Friends Out Little was that?

1243
00:53:21,560 --> 00:53:25,200
Speaker 1: Yeah, it's not. It did sound sour, yeah,