1 00:00:00,040 --> 00:00:02,400 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,520 --> 00:00:06,120 Speaker 1: Matt and today we're discussing financial lessons learned during COVID 3 00:00:06,519 --> 00:00:27,960 Speaker 1: m Yeah, Joe, it's safe to say that our lives 4 00:00:27,960 --> 00:00:30,000 Speaker 1: look a lot different now than they did at the 5 00:00:30,000 --> 00:00:32,320 Speaker 1: beginning of the year. You know, a lot of our 6 00:00:32,360 --> 00:00:34,559 Speaker 1: personal finances have really taken a hit, a lot of 7 00:00:34,600 --> 00:00:37,120 Speaker 1: our incomes are are maybe a good bit lower than 8 00:00:37,159 --> 00:00:39,680 Speaker 1: they used to be. This pandemic that we've lived through 9 00:00:39,760 --> 00:00:42,479 Speaker 1: has certainly taught us a lot of lessons. And the 10 00:00:42,520 --> 00:00:44,400 Speaker 1: thing is, these are lessons that we knew to be 11 00:00:44,440 --> 00:00:48,279 Speaker 1: true before, but the coronavirus has heightened, you know, our 12 00:00:48,320 --> 00:00:50,600 Speaker 1: awareness of these truths and the impact that we have 13 00:00:50,920 --> 00:00:52,800 Speaker 1: on our lives. And so that's what we're gonna talk 14 00:00:52,840 --> 00:00:55,120 Speaker 1: about today. Man, We're gonna talk through these different lessons 15 00:00:55,160 --> 00:00:56,640 Speaker 1: that you and I that we've learned, that others have 16 00:00:56,760 --> 00:00:59,760 Speaker 1: learned during this time of financial stress. Yeah, Matt. And 17 00:00:59,800 --> 00:01:02,320 Speaker 1: it's been said that those who cannot learn from history 18 00:01:02,360 --> 00:01:05,160 Speaker 1: are doomed to repeat it for that before, right, It's 19 00:01:05,160 --> 00:01:07,800 Speaker 1: a popular phrase. Uh, And and so I think, yeah, 20 00:01:07,800 --> 00:01:09,880 Speaker 1: if we don't learn these lessons, if we don't kind 21 00:01:09,880 --> 00:01:13,080 Speaker 1: of document them, discuss them and basically learn from what 22 00:01:13,080 --> 00:01:15,399 Speaker 1: we've gone through, right, I mean, we are learning a 23 00:01:15,400 --> 00:01:18,040 Speaker 1: lot on the health front that is gonna hopefully help 24 00:01:18,120 --> 00:01:21,080 Speaker 1: us in the case of, you know, a potential future pandemic, 25 00:01:21,080 --> 00:01:23,240 Speaker 1: which I hope never happens, because this one's been pretty 26 00:01:23,240 --> 00:01:26,080 Speaker 1: horrible in and of itself. But there are financial lessons 27 00:01:26,120 --> 00:01:28,080 Speaker 1: that we should all be learning and we should put 28 00:01:28,080 --> 00:01:30,080 Speaker 1: to use for our future, because I think you can 29 00:01:30,160 --> 00:01:33,720 Speaker 1: help us whether upcoming storms, hopefully not pandemic storms in 30 00:01:33,720 --> 00:01:36,240 Speaker 1: our financial future, but but other financial storms that we 31 00:01:36,280 --> 00:01:38,959 Speaker 1: are going to go through, because they inevitably happen in 32 00:01:39,000 --> 00:01:40,839 Speaker 1: life to all of us at one point or another. 33 00:01:40,959 --> 00:01:42,960 Speaker 1: But before we get to that, Matt, I think a 34 00:01:43,000 --> 00:01:45,440 Speaker 1: couple of weeks ago, I mentioned a new power line 35 00:01:45,480 --> 00:01:48,680 Speaker 1: internet solution that that we purchased uh for homeschooling to 36 00:01:48,760 --> 00:01:51,800 Speaker 1: help increase the Internet in our house. And I'm sure 37 00:01:51,960 --> 00:01:53,520 Speaker 1: people have heard of this on the show before, but 38 00:01:53,760 --> 00:01:55,640 Speaker 1: you know, Emily and I are family. We basically live 39 00:01:55,680 --> 00:01:59,000 Speaker 1: in this duplex that we used to have somebody living 40 00:01:59,000 --> 00:02:00,360 Speaker 1: in the back of our house, and now we kind 41 00:02:00,360 --> 00:02:02,440 Speaker 1: of taking it all over, but we still have this 42 00:02:02,640 --> 00:02:05,480 Speaker 1: kitchen in the back like a second kitchen, and we're 43 00:02:05,520 --> 00:02:07,919 Speaker 1: five people. We don't need two kitchens. Almost nobody actually 44 00:02:07,960 --> 00:02:10,560 Speaker 1: needs two kitchens. This is our breakfast kitchen, and lunch 45 00:02:10,600 --> 00:02:12,520 Speaker 1: and dinner kitchen is up front. Yeah, that sounds like 46 00:02:12,919 --> 00:02:15,560 Speaker 1: something a fancy person would have, right, you are pretty fancy, 47 00:02:15,639 --> 00:02:18,959 Speaker 1: that's true. But yeah, so this kitchen basically there, it's 48 00:02:19,040 --> 00:02:20,640 Speaker 1: used to storage, Like we put our bikes back there 49 00:02:20,639 --> 00:02:22,840 Speaker 1: and stuff right now, and we realize, man, this is 50 00:02:22,840 --> 00:02:25,760 Speaker 1: a perfect space to try to do homeschooling with the kids. 51 00:02:26,040 --> 00:02:29,200 Speaker 1: And so I'm in the process of ripping everything out 52 00:02:29,240 --> 00:02:32,320 Speaker 1: of the kitchen and selling off everything I can and 53 00:02:32,360 --> 00:02:35,480 Speaker 1: just making it a conducive space to do homeschooling. And 54 00:02:35,480 --> 00:02:38,600 Speaker 1: it's something that we probably wouldn't have thought about, and 55 00:02:38,680 --> 00:02:41,320 Speaker 1: we probably would have just left it as is for 56 00:02:41,680 --> 00:02:44,320 Speaker 1: a while longer or it not for this realization that, like, 57 00:02:44,360 --> 00:02:47,079 Speaker 1: we need extra space. We can't just be doing everything 58 00:02:47,160 --> 00:02:49,560 Speaker 1: in the girl's bedrooms. They already share a bedroom. If 59 00:02:49,600 --> 00:02:51,560 Speaker 1: we put all the schooling in there plus their toys, 60 00:02:51,560 --> 00:02:52,880 Speaker 1: I mean, it's just gonna be it's gonna be a 61 00:02:52,880 --> 00:02:56,120 Speaker 1: close lot of stuff. Yeah. So yeah, I'm curious to 62 00:02:56,160 --> 00:02:58,440 Speaker 1: know kind of what our listeners are doing and maybe 63 00:02:58,520 --> 00:03:00,720 Speaker 1: what you're doing to Like, I'm sure so many people 64 00:03:00,800 --> 00:03:04,800 Speaker 1: are reconsidering their the space in their home for how 65 00:03:04,800 --> 00:03:07,880 Speaker 1: they're going to do childcare and schooling and all that 66 00:03:07,919 --> 00:03:10,480 Speaker 1: kind of stuff, because we're all in a completely different 67 00:03:10,520 --> 00:03:12,720 Speaker 1: boat right now. Yeah, man, And you know that's something 68 00:03:12,760 --> 00:03:14,520 Speaker 1: that a lot of families here in Atlanta, I guess 69 00:03:14,639 --> 00:03:17,360 Speaker 1: l A just other cities where schools are not opening 70 00:03:17,400 --> 00:03:21,440 Speaker 1: in person, where they're only opening virtually or online this fall. 71 00:03:21,800 --> 00:03:23,480 Speaker 1: But the thing is, in order to do that, you 72 00:03:23,520 --> 00:03:25,800 Speaker 1: have to have somebody to help facilitate that, someone to 73 00:03:25,919 --> 00:03:28,000 Speaker 1: watch the kids actually during the day. And men, you 74 00:03:28,040 --> 00:03:29,920 Speaker 1: and I were our families are in a position where 75 00:03:29,960 --> 00:03:32,639 Speaker 1: our wives it's maybe a little old school, but we're 76 00:03:32,720 --> 00:03:34,880 Speaker 1: lucky enough to have them be stay at home moms. 77 00:03:34,880 --> 00:03:37,920 Speaker 1: Those are some decisions that we have proactively made. But 78 00:03:37,920 --> 00:03:39,600 Speaker 1: what that means is that we're lucky enough to have 79 00:03:39,920 --> 00:03:42,840 Speaker 1: someone to oversee and facilitate that learning while the kids 80 00:03:42,880 --> 00:03:44,960 Speaker 1: are at home. But man, we know that that is 81 00:03:45,000 --> 00:03:47,560 Speaker 1: not the case for everyone. There's a lot of individuals 82 00:03:47,680 --> 00:03:50,360 Speaker 1: who you know, we're both parents need to work, or 83 00:03:50,360 --> 00:03:52,520 Speaker 1: if it's a single parent household, like that parent has 84 00:03:52,600 --> 00:03:54,560 Speaker 1: to go back to work. Uh, and they're in a 85 00:03:54,560 --> 00:03:56,840 Speaker 1: tough position to where they're having to figure out what 86 00:03:56,920 --> 00:03:59,360 Speaker 1: childcare looks like for them as they go back to work, 87 00:03:59,400 --> 00:04:02,120 Speaker 1: you know. And the thing is, not very many employers 88 00:04:02,280 --> 00:04:05,920 Speaker 1: are offering any type of backup childcare or any additional 89 00:04:05,960 --> 00:04:09,400 Speaker 1: benefits to help take care of those situations. Yeah. Sure, 90 00:04:09,480 --> 00:04:12,880 Speaker 1: that's a stressfhold place to be in if especially if 91 00:04:12,920 --> 00:04:15,200 Speaker 1: you have to go into a physical location to work. 92 00:04:15,360 --> 00:04:17,320 Speaker 1: If you're working from home, that's hard enough, right to 93 00:04:17,440 --> 00:04:19,839 Speaker 1: multitask and do both, But if you actually have to 94 00:04:19,880 --> 00:04:22,680 Speaker 1: hop in the car go somewhere for work, how in 95 00:04:22,720 --> 00:04:25,920 Speaker 1: the world if you're a single parent or both parents 96 00:04:25,920 --> 00:04:28,200 Speaker 1: have to go into work, do you even come close 97 00:04:28,279 --> 00:04:30,480 Speaker 1: to making sure your kids taken care of. We talked 98 00:04:30,480 --> 00:04:32,920 Speaker 1: about pod schooling a while back, and that's one thing 99 00:04:32,960 --> 00:04:34,800 Speaker 1: that some people are considering, and I think that can 100 00:04:34,839 --> 00:04:37,600 Speaker 1: be helpful a small group of people and in your 101 00:04:37,640 --> 00:04:40,680 Speaker 1: community doing school together with other kids that are in 102 00:04:40,720 --> 00:04:43,400 Speaker 1: the same class or same grade. I think too, it's 103 00:04:43,400 --> 00:04:46,440 Speaker 1: really important for a lot of parents right now to 104 00:04:46,600 --> 00:04:50,040 Speaker 1: petition their their boss, to talk to someone in HR 105 00:04:50,400 --> 00:04:53,040 Speaker 1: and see what's available, and to see if that company 106 00:04:53,080 --> 00:04:55,760 Speaker 1: is willing to make more resources available when it comes 107 00:04:55,760 --> 00:04:58,359 Speaker 1: to childcare, because obviously we're all just kind of winging 108 00:04:58,360 --> 00:05:00,000 Speaker 1: it at the end of the school year last year. 109 00:05:00,360 --> 00:05:02,560 Speaker 1: But at this point, I think employers have had enough 110 00:05:02,600 --> 00:05:05,240 Speaker 1: time to kind of put some thought into Okay, I'm 111 00:05:05,279 --> 00:05:06,760 Speaker 1: asking you to come back to work, I need you 112 00:05:06,839 --> 00:05:08,880 Speaker 1: to be this productive. But at the same time, the 113 00:05:08,920 --> 00:05:11,560 Speaker 1: options are pretty slim when it comes to how you 114 00:05:11,600 --> 00:05:15,000 Speaker 1: handle childcare. And and so, yeah, I think employers do 115 00:05:15,080 --> 00:05:17,920 Speaker 1: have a role to play in this conversation. And as 116 00:05:18,080 --> 00:05:20,680 Speaker 1: an employee, I think you have every right to ask 117 00:05:20,720 --> 00:05:22,599 Speaker 1: for your employer to help be a part of the 118 00:05:22,680 --> 00:05:26,040 Speaker 1: solution in that case. Yeah, And personally, what I wouldn't 119 00:05:26,080 --> 00:05:28,320 Speaker 1: want to see is like an employer trying to create 120 00:05:28,360 --> 00:05:31,320 Speaker 1: their own daycare but instead, like you kind of hinted 121 00:05:31,360 --> 00:05:34,000 Speaker 1: at this, but like just compensation, right, like additional funds, 122 00:05:34,000 --> 00:05:38,000 Speaker 1: additional money, uh, that's kind of earmarked for childcare, you know, 123 00:05:38,320 --> 00:05:40,640 Speaker 1: and then allow the individual employees to to figure out 124 00:05:40,760 --> 00:05:43,120 Speaker 1: what is going to work best for them, because maybe 125 00:05:43,120 --> 00:05:45,400 Speaker 1: for someone they were going to have a parent come 126 00:05:45,400 --> 00:05:47,599 Speaker 1: and watch the you know, the kids, the grandkids, but 127 00:05:47,920 --> 00:05:51,160 Speaker 1: knowing that there's compensation evolved might make that decision a 128 00:05:51,200 --> 00:05:53,720 Speaker 1: lot a lot easier. Um, it's not a matter of 129 00:05:53,920 --> 00:05:56,880 Speaker 1: having to create, uh, you know, this daycare program there 130 00:05:56,920 --> 00:05:59,600 Speaker 1: on site or something crazy like that, although some employers 131 00:05:59,600 --> 00:06:01,320 Speaker 1: are doing at But I think it would be more 132 00:06:01,360 --> 00:06:04,520 Speaker 1: efficient and just a smarter use of time and money 133 00:06:04,760 --> 00:06:06,839 Speaker 1: if you're able to to leave it up to the individual. 134 00:06:06,960 --> 00:06:08,880 Speaker 1: But yeah, I couldn't agree more though. It's just to 135 00:06:09,000 --> 00:06:11,960 Speaker 1: advocate for what it is that you need, because I mean, 136 00:06:12,000 --> 00:06:14,280 Speaker 1: in the end, it's sort of supply in demand, right 137 00:06:14,320 --> 00:06:16,719 Speaker 1: Like if employeers are seeing that, man, a lot of 138 00:06:16,800 --> 00:06:19,719 Speaker 1: employees are demanding this, there's this other employer that is 139 00:06:19,760 --> 00:06:21,960 Speaker 1: offering this. Well, you know, those employees are gonna see 140 00:06:21,960 --> 00:06:24,880 Speaker 1: that that's a benefit that another company offers and they 141 00:06:24,880 --> 00:06:26,840 Speaker 1: don't want to lose those those great employees. You know, 142 00:06:26,880 --> 00:06:31,160 Speaker 1: It's it's expensive to train and recruit rehire employees. And 143 00:06:31,360 --> 00:06:33,920 Speaker 1: at the very least, I think if your employer isn't 144 00:06:33,960 --> 00:06:36,599 Speaker 1: doing anything to help you out when on the childcare front, 145 00:06:36,839 --> 00:06:39,000 Speaker 1: you need to start the conversation now based on kind 146 00:06:39,000 --> 00:06:41,680 Speaker 1: of what your school is doing, whether your kids going 147 00:06:41,720 --> 00:06:44,520 Speaker 1: back to school or whether your kid is is homeschooling 148 00:06:44,720 --> 00:06:47,040 Speaker 1: for the fall. You need to have that conversation now 149 00:06:47,080 --> 00:06:49,440 Speaker 1: about what your work days look like and what the 150 00:06:49,760 --> 00:06:53,719 Speaker 1: level of productivity expectation can be. And employers are definitely 151 00:06:53,720 --> 00:06:55,640 Speaker 1: gonna have to be flexible on that front. I know 152 00:06:55,680 --> 00:06:57,600 Speaker 1: if I was a single parent with two kids at 153 00:06:57,640 --> 00:07:00,240 Speaker 1: home going to school trying to work as well, my 154 00:07:00,279 --> 00:07:03,040 Speaker 1: productivity would would suffer greatly and I would hope that 155 00:07:03,080 --> 00:07:05,320 Speaker 1: my employer would be understanding. And that's a conversation. I 156 00:07:05,360 --> 00:07:08,600 Speaker 1: think that needs to start now, if if it hasn't already, Yeah, 157 00:07:08,760 --> 00:07:11,160 Speaker 1: the sooner the better, for sure. On that, Let's go 158 00:07:11,160 --> 00:07:13,240 Speaker 1: ahead and introduce our beer for this episode. Man, we 159 00:07:13,280 --> 00:07:16,480 Speaker 1: are having Modus the Vendi and this is by the 160 00:07:16,520 --> 00:07:19,120 Speaker 1: Wild Beer Company, and I'm looking forward to sharing our 161 00:07:19,160 --> 00:07:21,440 Speaker 1: thoughts on this one, Buddy at the end of the episode. Yeah, 162 00:07:21,480 --> 00:07:23,640 Speaker 1: this breweries out of the UK. Looking forward to having 163 00:07:23,800 --> 00:07:27,320 Speaker 1: a foreign beer on today's episode. Yeah, so all right, 164 00:07:27,320 --> 00:07:29,840 Speaker 1: But let's get onto the topic at hand, financial lessons 165 00:07:29,920 --> 00:07:32,800 Speaker 1: learned during COVID, Matt. I don't think any of us 166 00:07:32,800 --> 00:07:35,200 Speaker 1: ever expected to live through a pandemic. It wasn't not 167 00:07:35,240 --> 00:07:37,640 Speaker 1: my radar. I know my mom was reading books about 168 00:07:37,640 --> 00:07:41,120 Speaker 1: ebola back in the nineties and she's a nurse. She's 169 00:07:41,160 --> 00:07:43,200 Speaker 1: a nurse, so she's like an upper ally. Yeah, she's 170 00:07:43,240 --> 00:07:45,040 Speaker 1: interested in that stuff. And and so I was always like, 171 00:07:45,080 --> 00:07:47,080 Speaker 1: all right, cool, that sounds like that's it's like a 172 00:07:47,120 --> 00:07:49,400 Speaker 1: Grisham novel or something like that, But it never felt 173 00:07:49,400 --> 00:07:52,040 Speaker 1: like it could actually be reality. But it is our 174 00:07:52,080 --> 00:07:54,920 Speaker 1: reality right now. Right the current health crisis has had 175 00:07:54,960 --> 00:07:57,720 Speaker 1: this domino like effect on so many other areas of 176 00:07:57,720 --> 00:07:59,600 Speaker 1: our lives. We just talked about childcare, but of course 177 00:07:59,760 --> 00:08:02,400 Speaker 1: finances as well. Some of our listeners have filed for 178 00:08:02,440 --> 00:08:05,200 Speaker 1: unemployment for the first time, others have been furloughed, and 179 00:08:05,240 --> 00:08:07,680 Speaker 1: others have just kind of seen what's happening around them 180 00:08:07,680 --> 00:08:10,240 Speaker 1: and felt this keen sense of a need to say 181 00:08:10,280 --> 00:08:12,160 Speaker 1: more money. Right. And so today on the show, Matt, 182 00:08:12,200 --> 00:08:13,920 Speaker 1: you and I were gonna share some of the financial 183 00:08:14,000 --> 00:08:16,120 Speaker 1: lessons that really seem to stick out like a sore 184 00:08:16,160 --> 00:08:18,240 Speaker 1: thumb due to the impact of COVID on our lives. 185 00:08:18,520 --> 00:08:21,000 Speaker 1: Because again, there are things we can take away there, 186 00:08:21,040 --> 00:08:22,960 Speaker 1: there are lessons we can learn that are gonna help 187 00:08:23,000 --> 00:08:27,240 Speaker 1: improve our financial trajectory from today moving forward. Yeah, man, 188 00:08:27,280 --> 00:08:29,120 Speaker 1: And you know, some of these lessons we're going to discuss, 189 00:08:29,320 --> 00:08:32,480 Speaker 1: they are probably something you've thought of already because you know, like, 190 00:08:32,480 --> 00:08:35,199 Speaker 1: how could you not, especially if you've you know, listened 191 00:08:35,200 --> 00:08:37,040 Speaker 1: to the show for a while. But there are gonna 192 00:08:37,040 --> 00:08:38,920 Speaker 1: be some other financial lessons that we're gonna share that 193 00:08:39,000 --> 00:08:41,320 Speaker 1: might feel brand new to you. But the impact of 194 00:08:41,360 --> 00:08:44,640 Speaker 1: COVID has certainly taught us all a good bit. There 195 00:08:44,640 --> 00:08:47,400 Speaker 1: are some broader macro money lessons that we've learned as 196 00:08:47,400 --> 00:08:50,200 Speaker 1: a just as a whole society, But we're gonna stick 197 00:08:50,280 --> 00:08:52,960 Speaker 1: mostly to you know, personal finance in this episode because 198 00:08:53,000 --> 00:08:54,920 Speaker 1: that's what we do, man, That's what we talk about. Yeah, 199 00:08:54,960 --> 00:08:57,200 Speaker 1: for sure, Matt. I think one of the first lessons 200 00:08:57,200 --> 00:08:59,160 Speaker 1: that we need to mention that sticks out to me 201 00:08:59,640 --> 00:09:02,320 Speaker 1: that I've learned through going through a pandemic was that 202 00:09:02,559 --> 00:09:06,280 Speaker 1: emotions influence how we handle money in just a major way. 203 00:09:06,600 --> 00:09:10,520 Speaker 1: Human emotion can be this simultaneously wonderful and terrible thing. 204 00:09:10,760 --> 00:09:13,400 Speaker 1: Emotions can create the most beautiful feelings that lead to 205 00:09:13,720 --> 00:09:16,920 Speaker 1: wonderful action, right, like like an incredible piece of art. 206 00:09:17,160 --> 00:09:19,800 Speaker 1: Often those are inspired by an overwhelming emotion, right, But 207 00:09:20,040 --> 00:09:22,080 Speaker 1: it can also lead us to eat a whole pint 208 00:09:22,080 --> 00:09:24,000 Speaker 1: of ice cream in one sitting. I know you're eating 209 00:09:24,000 --> 00:09:25,640 Speaker 1: the all the ice cream though in one sitting Matt, 210 00:09:25,679 --> 00:09:27,640 Speaker 1: if if that happens to you, I have been known 211 00:09:27,679 --> 00:09:29,640 Speaker 1: to lack some self control when it comes to eating 212 00:09:29,679 --> 00:09:32,480 Speaker 1: ice cream, especially the good all these stuff. Right, But yeah, 213 00:09:32,559 --> 00:09:34,400 Speaker 1: we're we're all dealing with a lot right now from 214 00:09:34,480 --> 00:09:37,480 Speaker 1: the pandemic. Racial injustice is a real issue in our 215 00:09:37,520 --> 00:09:40,560 Speaker 1: country right now, and it's an election here, so emotions 216 00:09:40,559 --> 00:09:42,800 Speaker 1: are running high, and because of that, many of us 217 00:09:42,880 --> 00:09:46,920 Speaker 1: are dealing with wider emotional swings. And it's just to me, 218 00:09:46,960 --> 00:09:50,319 Speaker 1: it's so clear that the emotions that are happening around 219 00:09:50,400 --> 00:09:53,600 Speaker 1: us interpersonal emotions to Matt with with people that were 220 00:09:53,600 --> 00:09:57,000 Speaker 1: close to It's harder on parent child relationships, it's harder 221 00:09:57,040 --> 00:10:00,439 Speaker 1: on partner relationships right now. And I think the increased 222 00:10:00,440 --> 00:10:03,959 Speaker 1: emotional tension is affecting the way people actually handle their 223 00:10:03,960 --> 00:10:06,560 Speaker 1: dollars and cents too. Yeah, like you mentioned, even on 224 00:10:06,600 --> 00:10:08,240 Speaker 1: a personal level, right you know, Like we just talked 225 00:10:08,280 --> 00:10:11,560 Speaker 1: about childcare difficulties at the top of the show, but 226 00:10:11,640 --> 00:10:15,520 Speaker 1: even that can create higher psychological distress levels. Our emotions 227 00:10:15,559 --> 00:10:18,760 Speaker 1: can cause us to follow these different urges to maybe 228 00:10:18,760 --> 00:10:21,080 Speaker 1: spend more money or to sell stocks in a panic. 229 00:10:21,559 --> 00:10:23,920 Speaker 1: Even just being aware of the fact that emotion can 230 00:10:24,040 --> 00:10:26,480 Speaker 1: wreak havoc on our finances that can help us to 231 00:10:26,480 --> 00:10:29,800 Speaker 1: take solid action to do something hopefully differently, in something 232 00:10:29,840 --> 00:10:32,280 Speaker 1: that's a little bit more smart. You might just need 233 00:10:32,320 --> 00:10:35,000 Speaker 1: to to reframe things mentally, or you know, you might 234 00:10:35,120 --> 00:10:36,920 Speaker 1: need a trusted friend to talk to you off the 235 00:10:36,960 --> 00:10:41,240 Speaker 1: ledge before maybe making a harmful money move. Yeah, sometimes 236 00:10:41,280 --> 00:10:44,480 Speaker 1: it's hard to recognize kind of the emotion that's overtaken 237 00:10:44,559 --> 00:10:47,600 Speaker 1: us until we've made the poor decision, Until we see 238 00:10:47,640 --> 00:10:50,800 Speaker 1: the empty ice cream pint on the couch next to us, 239 00:10:50,960 --> 00:10:53,960 Speaker 1: we're like, oh, yeah, that's what happened. And that's just 240 00:10:54,000 --> 00:10:55,560 Speaker 1: common for so many of us. It's hard to see 241 00:10:55,559 --> 00:10:57,280 Speaker 1: it coming on. It's hard to know that the emotion 242 00:10:57,600 --> 00:10:59,959 Speaker 1: is overtaking us and is leading to disastrous results. And 243 00:11:00,080 --> 00:11:02,440 Speaker 1: so yeah, I think Matt kind of putting things in 244 00:11:02,480 --> 00:11:06,040 Speaker 1: place that can help you realize those emotions. Having, like 245 00:11:06,080 --> 00:11:08,480 Speaker 1: you said, uh, someone to bounce something off of so 246 00:11:08,559 --> 00:11:12,240 Speaker 1: you don't make a catastrophic money money move in a 247 00:11:12,280 --> 00:11:16,120 Speaker 1: particularly emotional time is incredibly beneficial. And then right if 248 00:11:16,160 --> 00:11:18,440 Speaker 1: you've made a bad financial move, I feel like that 249 00:11:18,640 --> 00:11:21,400 Speaker 1: then feeds into feeling more stressed and it becomes this 250 00:11:21,480 --> 00:11:24,240 Speaker 1: kind of perpetuating cycle if we can't stop it, and 251 00:11:24,320 --> 00:11:27,360 Speaker 1: over time, like money in security leads to poor mental health. Matt, 252 00:11:27,360 --> 00:11:29,040 Speaker 1: We've talked about this on the show before, but but 253 00:11:29,160 --> 00:11:32,319 Speaker 1: not having a solid financial foundation leads to increased levels 254 00:11:32,320 --> 00:11:34,760 Speaker 1: of stress and that UH studies then show that your 255 00:11:34,760 --> 00:11:37,720 Speaker 1: i Q decreases by about a dozen points when your 256 00:11:37,720 --> 00:11:40,080 Speaker 1: stress levels go up. There are very few of us 257 00:11:40,080 --> 00:11:43,200 Speaker 1: who perform better at work and make better financial decisions 258 00:11:43,320 --> 00:11:45,040 Speaker 1: when our brains feel fried. And so I just think 259 00:11:45,040 --> 00:11:47,199 Speaker 1: that's where a lot of people are right now. And 260 00:11:47,320 --> 00:11:50,520 Speaker 1: it's so so important to realize the impact that emotions 261 00:11:50,520 --> 00:11:52,439 Speaker 1: can have on the way that we we handle our 262 00:11:52,440 --> 00:11:55,040 Speaker 1: money because they have so much more power than we 263 00:11:55,080 --> 00:11:57,640 Speaker 1: typically realize. And on a personal finance show, Matt, we're 264 00:11:57,640 --> 00:12:00,200 Speaker 1: talking about the steps are the numbers, But emotion play 265 00:12:00,280 --> 00:12:03,559 Speaker 1: such a huge part of how we handle our personal finances, 266 00:12:03,600 --> 00:12:05,400 Speaker 1: and I think that needs to be acknowledged and it's 267 00:12:05,400 --> 00:12:08,280 Speaker 1: something that more people in the personal finance fear should 268 00:12:08,280 --> 00:12:10,560 Speaker 1: be talking about. Yeah, that's a lot of talk about 269 00:12:10,600 --> 00:12:12,640 Speaker 1: emotions in our minds, right, but you know, we do 270 00:12:12,720 --> 00:12:15,320 Speaker 1: feel that that's an important place to start because so 271 00:12:15,400 --> 00:12:18,600 Speaker 1: much of personal finance has to do with what goes 272 00:12:18,640 --> 00:12:20,840 Speaker 1: on inside of our heads. It's not just about knowing 273 00:12:20,880 --> 00:12:22,920 Speaker 1: the right actions and right steps to take, you know, 274 00:12:22,960 --> 00:12:25,640 Speaker 1: it's not just about the tips and tricks. Psychology and 275 00:12:25,640 --> 00:12:28,720 Speaker 1: our our human behavior that plays a large role. You know. 276 00:12:28,760 --> 00:12:30,400 Speaker 1: Now that we've covered all of that, let's go ahead 277 00:12:30,400 --> 00:12:33,160 Speaker 1: and get to some more of these, maybe more tangible 278 00:12:33,240 --> 00:12:36,040 Speaker 1: financial lessons that we've learned due to COVID and we'll 279 00:12:36,080 --> 00:12:48,319 Speaker 1: get to those right after the break. We're back from 280 00:12:48,320 --> 00:12:50,680 Speaker 1: the break. We're talking about financial lessons that we've learned 281 00:12:50,720 --> 00:12:52,960 Speaker 1: during the pandemic, and Matt, let's talk about some of 282 00:12:52,960 --> 00:12:55,520 Speaker 1: the takeaways that that we've had, things that we knew 283 00:12:55,600 --> 00:12:59,600 Speaker 1: but but things that have become even more apparent of 284 00:12:59,720 --> 00:13:02,360 Speaker 1: their level of importance. And one thing I think that 285 00:13:02,440 --> 00:13:05,240 Speaker 1: just sticks out like a sore thumb, probably the thing 286 00:13:05,360 --> 00:13:08,400 Speaker 1: that most people are feeling right now, is the importance 287 00:13:08,440 --> 00:13:12,000 Speaker 1: of having a solid emergency fund, of having cash on hand. 288 00:13:12,280 --> 00:13:14,960 Speaker 1: Right even though I think over the last ten years, 289 00:13:15,000 --> 00:13:18,120 Speaker 1: in particular, the idea of having more cash in the 290 00:13:18,120 --> 00:13:20,440 Speaker 1: bank has become downplayed. A lot of people were prone 291 00:13:20,480 --> 00:13:23,040 Speaker 1: to prode you to invest that money, because why are 292 00:13:23,040 --> 00:13:25,880 Speaker 1: you letting it sit around? And savings earning very little, right, 293 00:13:26,120 --> 00:13:28,800 Speaker 1: especially as the stock market has been performing incredibly well, 294 00:13:29,240 --> 00:13:31,480 Speaker 1: it just became more popular to frown on holding cash 295 00:13:31,760 --> 00:13:34,040 Speaker 1: in those savings accounts, but then having money in the 296 00:13:34,040 --> 00:13:37,320 Speaker 1: bank a minimum of roughly tred but you know, you 297 00:13:37,400 --> 00:13:40,160 Speaker 1: and I are fans of people having six plus months 298 00:13:40,200 --> 00:13:42,640 Speaker 1: of living expenses in the bank that they have a 299 00:13:42,679 --> 00:13:45,400 Speaker 1: liquid access to. It became so much more vital as 300 00:13:45,440 --> 00:13:48,360 Speaker 1: Americans were were no longer able to work and earn 301 00:13:48,400 --> 00:13:51,720 Speaker 1: an income. So many Americans I think of Americans the 302 00:13:51,760 --> 00:13:54,840 Speaker 1: last I saw, had their income negatively affected because of 303 00:13:55,000 --> 00:13:57,240 Speaker 1: the pandemic, whether that was a full on job loss 304 00:13:57,320 --> 00:13:59,680 Speaker 1: or even just being able to earn less because of 305 00:13:59,679 --> 00:14:02,560 Speaker 1: what's opening. Yeah, and having cash on hand. Essentially, what 306 00:14:02,559 --> 00:14:04,760 Speaker 1: we're talking about here is an emergency fund, right and 307 00:14:04,840 --> 00:14:07,439 Speaker 1: hopefully you rarely need to tap that emergency fund, but 308 00:14:07,520 --> 00:14:10,640 Speaker 1: if you do, it is important to have a financial 309 00:14:10,679 --> 00:14:14,400 Speaker 1: fire drill in place, knowing how you'll respond to different 310 00:14:14,400 --> 00:14:17,680 Speaker 1: financial scenarios that can take the stress down quite a bit. 311 00:14:18,040 --> 00:14:21,320 Speaker 1: Even if you're barely saving any money currently, Knowing what 312 00:14:21,480 --> 00:14:23,840 Speaker 1: and how much you can cut back if times get tough, 313 00:14:24,200 --> 00:14:26,320 Speaker 1: that's gonna be comforting to you, you know, man for us, 314 00:14:26,360 --> 00:14:28,840 Speaker 1: I know that we typically spend around four hundred bucks 315 00:14:28,880 --> 00:14:31,160 Speaker 1: every month just to go about to eat, but I 316 00:14:31,200 --> 00:14:33,360 Speaker 1: know that we don't need to do that every month. 317 00:14:33,400 --> 00:14:36,400 Speaker 1: We also put a set amount towards saving for Christmas 318 00:14:36,440 --> 00:14:39,120 Speaker 1: gifts as well as vacation every year. But again, I 319 00:14:39,160 --> 00:14:41,720 Speaker 1: know that if we were in a tight spot, we 320 00:14:41,760 --> 00:14:44,720 Speaker 1: could hit pause and get by on a whole lot less. 321 00:14:44,720 --> 00:14:47,760 Speaker 1: And so having that plan and knowing how it is 322 00:14:47,840 --> 00:14:49,560 Speaker 1: that we could cut back, you know, just knowing that 323 00:14:49,600 --> 00:14:51,880 Speaker 1: there's some legal room there that definitely gives me some 324 00:14:51,960 --> 00:14:54,640 Speaker 1: peace of mind. Yeah. I think in in middle school 325 00:14:54,680 --> 00:14:56,640 Speaker 1: or something like that, Matt, we were supposed to kind 326 00:14:56,640 --> 00:14:59,040 Speaker 1: of figure out our house how we would escape in 327 00:14:59,080 --> 00:15:02,680 Speaker 1: the event of a fire. And I totally remember that right, like, 328 00:15:03,000 --> 00:15:04,600 Speaker 1: we were supposed to meet as a family in one 329 00:15:04,640 --> 00:15:06,680 Speaker 1: particular area, this is the best way to get out 330 00:15:06,680 --> 00:15:08,720 Speaker 1: of the house, all that kind of stuff, And and 331 00:15:08,760 --> 00:15:10,600 Speaker 1: that's a good exercise to go through as a family, 332 00:15:10,640 --> 00:15:12,720 Speaker 1: to actually think about what would happen in the event 333 00:15:12,760 --> 00:15:15,800 Speaker 1: of a legitimate fire in your house. But then, but 334 00:15:15,880 --> 00:15:18,840 Speaker 1: I agree, doing something similar with your finances and thinking through, Okay, 335 00:15:19,000 --> 00:15:21,680 Speaker 1: if stuff hits the fan, what do we do and 336 00:15:21,680 --> 00:15:24,520 Speaker 1: and what are the first things that we cut immediately? 337 00:15:24,800 --> 00:15:26,840 Speaker 1: What could our budget look like? What could we live on? 338 00:15:27,120 --> 00:15:30,080 Speaker 1: That's so so helpful and and having that financial fire 339 00:15:30,160 --> 00:15:32,600 Speaker 1: drill in place is something I think so many people 340 00:15:32,640 --> 00:15:35,240 Speaker 1: would would benefit from. Yeah, man. And you know what's 341 00:15:35,280 --> 00:15:38,440 Speaker 1: interesting too, is that we've seen people make changes to 342 00:15:38,520 --> 00:15:41,440 Speaker 1: their spending. I think even if they haven't really thought through, 343 00:15:41,800 --> 00:15:44,520 Speaker 1: you know, what steps they could take. We've seen because 344 00:15:44,520 --> 00:15:47,000 Speaker 1: of the pandemic that upping your savings rate by spending 345 00:15:47,040 --> 00:15:49,880 Speaker 1: less that it is almost always possible. Hopefully a less 346 00:15:49,880 --> 00:15:51,720 Speaker 1: in our country has learned from the pandemic is that 347 00:15:51,760 --> 00:15:54,200 Speaker 1: we don't need to spend as much as we are 348 00:15:54,240 --> 00:15:58,320 Speaker 1: actually guilty of spending. Uh. The recent increased savings rate numbers, man, 349 00:15:58,360 --> 00:16:01,480 Speaker 1: that's evidence that it actually can be done. As job 350 00:16:01,480 --> 00:16:03,960 Speaker 1: losses piled up there, there were just millions of people 351 00:16:04,160 --> 00:16:06,920 Speaker 1: getting laid off in an incredibly short period of time, 352 00:16:07,160 --> 00:16:08,720 Speaker 1: but at the same time, we saw the savings rate 353 00:16:08,760 --> 00:16:12,000 Speaker 1: in America that it was actually increasing. That is in 354 00:16:12,080 --> 00:16:15,040 Speaker 1: large part because we couldn't go out and spend money 355 00:16:15,080 --> 00:16:17,600 Speaker 1: like we usually would, and that has led to a 356 00:16:17,640 --> 00:16:21,120 Speaker 1: realization for many that we can get by by spending less, 357 00:16:21,160 --> 00:16:23,600 Speaker 1: and that our budgets are more in our control than 358 00:16:23,760 --> 00:16:26,560 Speaker 1: you know we sometimes think. Yeah, So another lesson learned, 359 00:16:26,640 --> 00:16:30,680 Speaker 1: upgrading your savings rate by spending less is almost always possible. 360 00:16:30,880 --> 00:16:32,800 Speaker 1: I feel like that's one of the most common excuses 361 00:16:33,000 --> 00:16:35,880 Speaker 1: when people talk about personal finance. It's I can't cut anymore, 362 00:16:35,920 --> 00:16:38,560 Speaker 1: like there's nothing left. And for so many people that's 363 00:16:38,560 --> 00:16:40,320 Speaker 1: just not the case. We found that out. And if 364 00:16:40,360 --> 00:16:42,640 Speaker 1: you actually look at your budget and you actually comb 365 00:16:42,720 --> 00:16:44,560 Speaker 1: through your credit card bills and you see what you're 366 00:16:44,560 --> 00:16:47,520 Speaker 1: spending money on every single month, I guarantee there's something 367 00:16:47,520 --> 00:16:50,440 Speaker 1: that ninety five plus percent of us could find that 368 00:16:50,600 --> 00:16:52,960 Speaker 1: doesn't need to be there, or a bill that can 369 00:16:52,960 --> 00:16:55,680 Speaker 1: be slashed in some way, form or fashion. And so yeah, 370 00:16:55,760 --> 00:16:58,400 Speaker 1: upping your savings rate it's almost always possible. I think 371 00:16:58,400 --> 00:17:00,920 Speaker 1: that's something that we've we've learned as we've seen, like 372 00:17:00,960 --> 00:17:04,560 Speaker 1: you said, historic job losses, and yet UH savings rates 373 00:17:04,600 --> 00:17:07,720 Speaker 1: increases across the board at the same time. Another lesson, though, Matt, 374 00:17:07,760 --> 00:17:11,000 Speaker 1: that we've learned during the pandemic is that prioritizing debt 375 00:17:11,040 --> 00:17:14,000 Speaker 1: payoff is almost never a bad idea. And I do 376 00:17:14,040 --> 00:17:15,840 Speaker 1: stress almost and I'm gonna get to that in just 377 00:17:15,880 --> 00:17:18,400 Speaker 1: a second. Why. But yeah, working towards not having debt 378 00:17:18,680 --> 00:17:21,760 Speaker 1: is this foundational, uh personal finance principle right at the 379 00:17:21,800 --> 00:17:24,439 Speaker 1: core of wealth building. It's in the fact that we 380 00:17:24,480 --> 00:17:26,520 Speaker 1: need to be earning interests and not paying it out 381 00:17:26,560 --> 00:17:29,680 Speaker 1: to the banks that it puts us in a tough position, right, 382 00:17:30,000 --> 00:17:32,359 Speaker 1: And so you and I were fans of helping people 383 00:17:32,640 --> 00:17:35,280 Speaker 1: think through debt payoff in order to get in a 384 00:17:35,320 --> 00:17:38,240 Speaker 1: stronger financial position. But at the same time, while eliminating 385 00:17:38,240 --> 00:17:41,200 Speaker 1: debt is so helpful to a person's financial journey, it's 386 00:17:41,200 --> 00:17:44,879 Speaker 1: actually even more important when the infected respiratory droplets hit 387 00:17:44,880 --> 00:17:47,359 Speaker 1: the fan, right, the entire country stays at home and 388 00:17:47,400 --> 00:17:50,200 Speaker 1: you lose your job. So like, while student loan deferments 389 00:17:50,200 --> 00:17:53,000 Speaker 1: and other programs to postpone debt payments, they've been nice, 390 00:17:53,040 --> 00:17:54,679 Speaker 1: but think about how much better it would be if 391 00:17:54,720 --> 00:17:57,240 Speaker 1: you didn't have those loans altogether, if you had come 392 00:17:57,320 --> 00:17:59,600 Speaker 1: up with a plan to pay off those debts quickly. 393 00:18:00,040 --> 00:18:02,120 Speaker 1: I did say that the lesson was that it's almost 394 00:18:02,240 --> 00:18:04,080 Speaker 1: never a bad idea, right. So on the flip side, 395 00:18:04,440 --> 00:18:06,919 Speaker 1: eliminating that emergency fund that we just talked about in 396 00:18:07,000 --> 00:18:09,960 Speaker 1: order to get rid of your debt more quickly. Places 397 00:18:10,080 --> 00:18:13,240 Speaker 1: too high of a priority on debt elimination in most cases, 398 00:18:13,600 --> 00:18:15,840 Speaker 1: because in the event of job loss, it's nice, of 399 00:18:15,840 --> 00:18:18,160 Speaker 1: course to not have a student loan payment, It's nice, 400 00:18:18,200 --> 00:18:20,439 Speaker 1: of course to not have a mortgage, but if you 401 00:18:20,480 --> 00:18:22,520 Speaker 1: paid those off quickly at the expense of having any 402 00:18:22,560 --> 00:18:24,640 Speaker 1: cash in the bank. To whether you throw any sort 403 00:18:24,640 --> 00:18:26,920 Speaker 1: of storm, that is I would say when you put 404 00:18:27,000 --> 00:18:30,160 Speaker 1: maybe a little too much emphasis on the debt payoff thing, right, yeah, 405 00:18:30,320 --> 00:18:33,320 Speaker 1: hot priority is maintaining that emergency fund, having that cushion, 406 00:18:33,600 --> 00:18:36,880 Speaker 1: having that financial margin. Another lesson that we've learned man 407 00:18:36,920 --> 00:18:40,920 Speaker 1: from the pandemic is that no career is completely solid. Man, 408 00:18:40,920 --> 00:18:42,560 Speaker 1: And this is a lesson that I can speak to 409 00:18:42,560 --> 00:18:45,959 Speaker 1: you from personal experience. Okay, Now, we began shooting weddings 410 00:18:46,000 --> 00:18:48,520 Speaker 1: full time back in two thousand and eight, and at 411 00:18:48,520 --> 00:18:50,760 Speaker 1: the time business grew like crazy. Man, like you, we 412 00:18:50,760 --> 00:18:53,760 Speaker 1: would quickly realize that, like wow, this is an industry 413 00:18:53,880 --> 00:18:56,200 Speaker 1: that is basically a recession proof. No matter what is 414 00:18:56,240 --> 00:18:58,800 Speaker 1: going on with the economy, people continue to get married 415 00:18:58,840 --> 00:19:01,720 Speaker 1: even during the Great Session. But you know, while the 416 00:19:01,720 --> 00:19:05,359 Speaker 1: wedding industry is recession proof, it's definitely not pandemic proof. 417 00:19:05,680 --> 00:19:08,840 Speaker 1: Needless to say, uh, there have been many many weddings 418 00:19:09,000 --> 00:19:11,760 Speaker 1: that have been canceled or postponed, which also means that 419 00:19:11,800 --> 00:19:14,640 Speaker 1: there have been many wedding professionals who have had their 420 00:19:14,680 --> 00:19:18,159 Speaker 1: income canceled or postponed. So thankfully, man, if you know, 421 00:19:18,200 --> 00:19:20,520 Speaker 1: in our case, we're doing fine. Over the years, we've 422 00:19:20,560 --> 00:19:24,199 Speaker 1: transitioned to taking on fewer weddings, and we have diversified 423 00:19:24,280 --> 00:19:27,359 Speaker 1: or income through real estate and even side gigs like podcasting. 424 00:19:27,520 --> 00:19:30,520 Speaker 1: But it's important to develop alternate ways to to make 425 00:19:30,560 --> 00:19:33,320 Speaker 1: a living. And ideally, again we're you're doing this before 426 00:19:33,400 --> 00:19:36,000 Speaker 1: you actually need it, because sometimes if you're gonna wait 427 00:19:36,040 --> 00:19:38,200 Speaker 1: until you need it, it's a little bit too late. Yeah. 428 00:19:38,200 --> 00:19:40,280 Speaker 1: It makes me think about a long time ago when 429 00:19:40,320 --> 00:19:42,520 Speaker 1: we had Jordan Harbinger on the show and he gives 430 00:19:42,560 --> 00:19:44,959 Speaker 1: the example of digging the well before you're thirsty. He 431 00:19:45,040 --> 00:19:49,200 Speaker 1: specifically talks about networking right and how having those contacts 432 00:19:49,240 --> 00:19:51,200 Speaker 1: before you lose your job or before you go through 433 00:19:51,359 --> 00:19:55,320 Speaker 1: a tough career situation, that having those relationships and staying 434 00:19:55,320 --> 00:19:58,159 Speaker 1: in contact with people that can be influential in your 435 00:19:58,200 --> 00:20:01,520 Speaker 1: future job decisions is so a clutch and I love 436 00:20:01,560 --> 00:20:04,119 Speaker 1: that idea. I also love that idea of digging that 437 00:20:04,119 --> 00:20:06,600 Speaker 1: well before your thirsty when it comes to having multiple 438 00:20:06,720 --> 00:20:09,399 Speaker 1: streams of income, Matt, if you hadn't thought about that 439 00:20:09,560 --> 00:20:12,520 Speaker 1: years ago, if you weren't working towards a more diversified 440 00:20:12,600 --> 00:20:16,120 Speaker 1: way of earning money, you'd probably be going through a really, 441 00:20:16,119 --> 00:20:18,440 Speaker 1: really difficult time right now seeing a lot of those 442 00:20:18,480 --> 00:20:21,919 Speaker 1: weddings basically just vanished. Try out. Yeah, So I just 443 00:20:21,920 --> 00:20:25,320 Speaker 1: would encourage everybody out there to know that their career 444 00:20:25,800 --> 00:20:28,040 Speaker 1: as solid as they might have thought it was. The 445 00:20:28,080 --> 00:20:30,840 Speaker 1: industry maybe that was recession proof, or maybe they're the 446 00:20:31,119 --> 00:20:33,920 Speaker 1: number one producer at their job, but that industry has 447 00:20:34,200 --> 00:20:36,399 Speaker 1: been affected just in a massive way right now, and 448 00:20:36,560 --> 00:20:39,959 Speaker 1: maybe they're not on solid footing anymore. Realizing that your career, 449 00:20:40,320 --> 00:20:43,280 Speaker 1: that no career is completely solid is is definitely I 450 00:20:43,280 --> 00:20:45,800 Speaker 1: think one of the lessons that we've learned during this pandemic, 451 00:20:45,840 --> 00:20:47,159 Speaker 1: and it's something that we can take to heart and 452 00:20:47,200 --> 00:20:50,560 Speaker 1: we can make changes to actually strengthen our personal finances 453 00:20:50,560 --> 00:20:53,399 Speaker 1: in the future. And ultimately maybe it's just a call 454 00:20:53,520 --> 00:20:55,840 Speaker 1: to say, be a little clear eyed about this and 455 00:20:55,880 --> 00:20:58,800 Speaker 1: don't just assume that the job that you're in is 456 00:20:58,840 --> 00:21:01,080 Speaker 1: going to continue to provide for you no matter what. 457 00:21:01,400 --> 00:21:03,760 Speaker 1: It's important for you to have a plan, even for 458 00:21:03,880 --> 00:21:07,000 Speaker 1: the unlikeliest of situations. Yeah, I like what you said, man, 459 00:21:07,040 --> 00:21:09,879 Speaker 1: about your specific job. You might feel pretty secure about that. 460 00:21:09,880 --> 00:21:12,000 Speaker 1: You know, you might feel really good about your specific company. 461 00:21:12,359 --> 00:21:14,480 Speaker 1: But aside from whether or not your specific company is 462 00:21:14,480 --> 00:21:16,600 Speaker 1: doing well, like the industry as a whole might collapse, 463 00:21:16,640 --> 00:21:18,679 Speaker 1: you know, like it did for us. And so, Man, 464 00:21:18,720 --> 00:21:20,080 Speaker 1: at the heart of it, what we're talking about here 465 00:21:20,119 --> 00:21:23,080 Speaker 1: is diversification of income. But after the break, we're gonna 466 00:21:23,080 --> 00:21:26,359 Speaker 1: talk about diversification in another way. We're gonna talk about it, uh, 467 00:21:26,480 --> 00:21:29,320 Speaker 1: in your portfolio, in what it is that you invest in, 468 00:21:29,359 --> 00:21:41,120 Speaker 1: and we'll get to that right after the break. We're 469 00:21:41,119 --> 00:21:43,480 Speaker 1: back from the break. Of course, we're talking about the 470 00:21:43,520 --> 00:21:46,240 Speaker 1: pandemic and how it has affected our finances, and there's 471 00:21:46,240 --> 00:21:47,760 Speaker 1: some lessons that we can learn and we can take 472 00:21:47,760 --> 00:21:50,640 Speaker 1: those lessons and kind of implement them into how we 473 00:21:50,800 --> 00:21:54,240 Speaker 1: begin to build our financial lives from today moving forward. 474 00:21:54,520 --> 00:21:56,840 Speaker 1: And that we just talked about how no career, no 475 00:21:57,000 --> 00:21:59,919 Speaker 1: specific job, is completely solid, right, and so it's in 476 00:22:00,000 --> 00:22:02,919 Speaker 1: iportant for us to be diversified when it comes to 477 00:22:03,119 --> 00:22:05,960 Speaker 1: how we make money. But yeah, diversification in in what 478 00:22:06,000 --> 00:22:08,680 Speaker 1: we invest in is crucial to the stock market was 479 00:22:08,720 --> 00:22:11,920 Speaker 1: hammered right in March and April, and some individual stocks 480 00:22:11,920 --> 00:22:14,760 Speaker 1: in particular are still feeling the pain and and they 481 00:22:14,760 --> 00:22:17,760 Speaker 1: haven't recovered in the slightest. Other companies have seen increased 482 00:22:17,800 --> 00:22:20,679 Speaker 1: demands for their products and services due to COVID, and 483 00:22:20,720 --> 00:22:24,040 Speaker 1: the market is reflecting that right their stocks are sky high. 484 00:22:24,240 --> 00:22:27,320 Speaker 1: But but who could have predicted these exact outcomes? Now, 485 00:22:27,440 --> 00:22:30,480 Speaker 1: you or I'm at I wouldn't have predicted Tesla's meteoric rise. 486 00:22:30,720 --> 00:22:35,000 Speaker 1: And diversification in your investing is always key because it 487 00:22:35,160 --> 00:22:37,960 Speaker 1: is so hard for us as individuals one to know 488 00:22:38,000 --> 00:22:39,800 Speaker 1: what's coming and then too to know how that's going 489 00:22:39,840 --> 00:22:43,280 Speaker 1: to influence the markets and businesses and and their demand 490 00:22:43,320 --> 00:22:45,439 Speaker 1: for their services. Yeah, that's right, man, And that's why 491 00:22:45,520 --> 00:22:49,439 Speaker 1: we don't recommend single stock investing. We recommend buying the 492 00:22:49,600 --> 00:22:54,040 Speaker 1: entire stock market, basically investing into the entire U S economy. 493 00:22:54,080 --> 00:22:56,800 Speaker 1: Another lesson that we we've learned due to the pandemic 494 00:22:57,000 --> 00:22:59,760 Speaker 1: is that we need to invest for decades, not for years. 495 00:23:00,040 --> 00:23:02,200 Speaker 1: You know, if you many ay changes to your investments 496 00:23:02,200 --> 00:23:04,600 Speaker 1: this past spring, maybe other than buying as much as 497 00:23:04,640 --> 00:23:08,200 Speaker 1: you could, Uh, you need to rethink you're investing prime horizon. 498 00:23:08,480 --> 00:23:11,359 Speaker 1: We wouldn't recommend investing money in the stock market unless 499 00:23:11,359 --> 00:23:13,960 Speaker 1: you're willing to not touch it for five or you know, 500 00:23:14,000 --> 00:23:17,639 Speaker 1: ideally seven years. If you're looking to the headlines and 501 00:23:17,680 --> 00:23:20,160 Speaker 1: you know you're buying and selling stocks on a daily basis, 502 00:23:20,480 --> 00:23:23,639 Speaker 1: that's not actually investing. It's just speculating. Yeah, boy, And 503 00:23:23,680 --> 00:23:26,560 Speaker 1: isn't that Another lesson that we've learned in the COVID 504 00:23:26,600 --> 00:23:30,400 Speaker 1: times is that speculating can cause a lot of financial harm. 505 00:23:30,480 --> 00:23:32,879 Speaker 1: There's been so many stories written about Robin Hood training 506 00:23:33,040 --> 00:23:36,520 Speaker 1: and youngsters in particular getting into the stock market in 507 00:23:36,560 --> 00:23:39,280 Speaker 1: this kind of tumultuous and volatile time, and so many 508 00:23:39,320 --> 00:23:41,240 Speaker 1: of them it looks like for a minute that they've 509 00:23:41,240 --> 00:23:43,080 Speaker 1: just made a ton of money and then they get crushed. 510 00:23:43,320 --> 00:23:46,040 Speaker 1: And you're right, Matt, that speculation that is not investing. 511 00:23:46,320 --> 00:23:48,320 Speaker 1: So another lesson we need to learn is what our 512 00:23:48,359 --> 00:23:51,000 Speaker 1: investing strategy should be. And I think there's a quote 513 00:23:51,000 --> 00:23:52,960 Speaker 1: from Warren Buffett that sums us up well. He says 514 00:23:53,280 --> 00:23:55,199 Speaker 1: that we should be fearful when others are greedy, and 515 00:23:55,240 --> 00:23:58,639 Speaker 1: greedy when others are fearful, and there will be volatility 516 00:23:58,640 --> 00:24:00,399 Speaker 1: in the market. We've talked about that before, but we 517 00:24:00,440 --> 00:24:02,360 Speaker 1: have to train ourselves to kind of see those drops 518 00:24:02,640 --> 00:24:05,080 Speaker 1: as the market going on sale, not as a sign 519 00:24:05,080 --> 00:24:06,720 Speaker 1: that we're gonna lose everything and it's time to bail 520 00:24:06,760 --> 00:24:08,919 Speaker 1: out of our investments. But at the same time, not 521 00:24:09,040 --> 00:24:12,239 Speaker 1: buying individual stocks when they're on sale, because we do that, 522 00:24:12,359 --> 00:24:14,200 Speaker 1: especially as so many people are doing right now, is 523 00:24:14,280 --> 00:24:17,800 Speaker 1: kind of armchair investors without much knowledge going into the 524 00:24:17,880 --> 00:24:20,800 Speaker 1: trades you're making on specific companies. That's when you put 525 00:24:20,840 --> 00:24:23,600 Speaker 1: a whole lot of your personal wealth at risk. Yeah, man, 526 00:24:23,640 --> 00:24:26,640 Speaker 1: So those are some thoughts on investing right. Another lesson 527 00:24:26,760 --> 00:24:29,239 Speaker 1: that we've learned is that it is important for us 528 00:24:29,280 --> 00:24:32,199 Speaker 1: to prepare for the inevitable. People are dying, man, but 529 00:24:32,240 --> 00:24:33,800 Speaker 1: you know, because of a virus that most of us 530 00:24:33,840 --> 00:24:37,000 Speaker 1: didn't see coming. But we all know that, like someday 531 00:24:37,000 --> 00:24:39,080 Speaker 1: that we are going to die, right, and so making 532 00:24:39,119 --> 00:24:41,960 Speaker 1: sure that we are preparing for that is important. Uh. This, 533 00:24:42,400 --> 00:24:44,080 Speaker 1: you know likely means that you need to make sure 534 00:24:44,119 --> 00:24:46,480 Speaker 1: that you have a will and creating steps maybe for 535 00:24:46,480 --> 00:24:49,240 Speaker 1: your your significant other, your partner to know how to 536 00:24:49,280 --> 00:24:51,600 Speaker 1: handle the finances if you were to die and that 537 00:24:51,680 --> 00:24:53,360 Speaker 1: was you know, one of the roles that you took 538 00:24:53,400 --> 00:24:55,840 Speaker 1: on in your relationship. I mean, at the very least, 539 00:24:55,840 --> 00:24:57,640 Speaker 1: it's important for them to know where the passports are, 540 00:24:57,640 --> 00:24:59,800 Speaker 1: you know, like for them to be able to log 541 00:24:59,840 --> 00:25:02,440 Speaker 1: in the accounts that you jointly hold together. That way 542 00:25:02,480 --> 00:25:05,640 Speaker 1: their personal finances can continue, that way their financial life 543 00:25:05,680 --> 00:25:08,760 Speaker 1: doesn't get up ended. Yeah. Man, that provides so much 544 00:25:08,840 --> 00:25:10,680 Speaker 1: peace of mind in the here and now when things 545 00:25:10,720 --> 00:25:14,240 Speaker 1: are kind of in a crazy state all around us. 546 00:25:14,560 --> 00:25:16,760 Speaker 1: Knowing that you have a will in place, that you 547 00:25:16,800 --> 00:25:19,919 Speaker 1: have life insurance, that you have access to those passwords, 548 00:25:20,119 --> 00:25:23,280 Speaker 1: and that you've communicated well about you know, the inevitable happening. 549 00:25:23,440 --> 00:25:25,800 Speaker 1: It's such a healthy conversation to have, but nobody wants 550 00:25:25,840 --> 00:25:27,760 Speaker 1: to have it. It's not fun. But it is one 551 00:25:27,800 --> 00:25:29,680 Speaker 1: of those things that that I think we've seen as 552 00:25:29,680 --> 00:25:31,840 Speaker 1: a lesson is that it's important, and it feels like 553 00:25:31,880 --> 00:25:34,320 Speaker 1: it's even more important right now. Yeah, so true, But 554 00:25:34,359 --> 00:25:36,320 Speaker 1: like you said, it's not fun, Like, that's not a 555 00:25:36,400 --> 00:25:38,560 Speaker 1: conversation with My wife wants to hear me say. It's like, Hey, 556 00:25:38,840 --> 00:25:40,840 Speaker 1: when I die, here's how you can log into everything 557 00:25:40,880 --> 00:25:42,960 Speaker 1: and make sure that you continue living your life, you know, 558 00:25:43,600 --> 00:25:46,359 Speaker 1: but that doesn't mean it's any less important, Joel. One 559 00:25:46,400 --> 00:25:48,960 Speaker 1: other lesson too, that we've learned is that money, man, 560 00:25:49,040 --> 00:25:51,719 Speaker 1: it's not everything. You know. The pandemic has for for 561 00:25:51,720 --> 00:25:54,480 Speaker 1: many of us, helped us realize that while being financially 562 00:25:54,560 --> 00:25:58,040 Speaker 1: secure through smart money management, it's great, but money does 563 00:25:58,119 --> 00:26:00,160 Speaker 1: have its limits. Many of us have been separated from 564 00:26:00,200 --> 00:26:02,919 Speaker 1: family and from friends, and hopefully a lot of us 565 00:26:02,920 --> 00:26:05,400 Speaker 1: have realized that those relationships that they mean so much 566 00:26:05,400 --> 00:26:08,040 Speaker 1: more to us than having a padded bank account, than 567 00:26:08,160 --> 00:26:10,400 Speaker 1: having all of our ducks lined up and where we're 568 00:26:10,400 --> 00:26:12,960 Speaker 1: not having to worry about our finances quite as much. 569 00:26:13,440 --> 00:26:16,080 Speaker 1: Relationships also mean a whole lot to us. Yeah, and 570 00:26:16,119 --> 00:26:18,400 Speaker 1: whether we've kept our job or we've had a pay cut, 571 00:26:18,440 --> 00:26:21,200 Speaker 1: what whatever position we're in, I think there's a lot 572 00:26:21,240 --> 00:26:23,680 Speaker 1: for us to be thankful for and grateful for, even 573 00:26:23,680 --> 00:26:25,360 Speaker 1: if COVID has thrown kind of a wrench in our 574 00:26:25,359 --> 00:26:27,840 Speaker 1: plans and and a wrench specifically in some of our 575 00:26:27,880 --> 00:26:31,680 Speaker 1: financial plans. I think also too, you know, money isn't everything. Yes, 576 00:26:31,720 --> 00:26:34,040 Speaker 1: that's an important lesson to learn, and at the same time, 577 00:26:34,040 --> 00:26:36,680 Speaker 1: being thankful for the good health that we'd have. I mean, 578 00:26:36,720 --> 00:26:40,120 Speaker 1: I know, I'm acutely aware of the fact that, you know, one, 579 00:26:40,240 --> 00:26:43,199 Speaker 1: we haven't gotten COVID, and too, I've been able to 580 00:26:43,320 --> 00:26:46,359 Speaker 1: enjoy my healthy body, like during these times going on 581 00:26:46,400 --> 00:26:48,399 Speaker 1: bike rides with the kids, and when you look at 582 00:26:48,400 --> 00:26:50,960 Speaker 1: the mounting cases of COVID and the people battling for 583 00:26:51,040 --> 00:26:53,400 Speaker 1: their lives and and many people having lost their lives, 584 00:26:53,600 --> 00:26:56,000 Speaker 1: I think we've definitely learned that not taking our health 585 00:26:56,080 --> 00:26:59,359 Speaker 1: for granted is important. We're not promised tomorrow, none of us, right, 586 00:26:59,560 --> 00:27:02,919 Speaker 1: and so be thankful having gratitude for what we currently 587 00:27:02,960 --> 00:27:05,399 Speaker 1: do have in our lives, the relationships, but then also 588 00:27:05,840 --> 00:27:07,760 Speaker 1: good health. That's certainly a lesson I want to learn 589 00:27:07,920 --> 00:27:10,000 Speaker 1: and I want to kind of continue to implement in 590 00:27:10,040 --> 00:27:12,480 Speaker 1: my life from from here on out. Yeah, I mean, 591 00:27:12,480 --> 00:27:15,520 Speaker 1: COVID it's impacted us all in different ways, but hopefully 592 00:27:15,600 --> 00:27:18,560 Speaker 1: we've all learned some financial lessons in the midst of 593 00:27:18,600 --> 00:27:20,679 Speaker 1: all of this insanity. You know, Let's let's hope that 594 00:27:20,720 --> 00:27:23,320 Speaker 1: we can make some meaningful changes based on on what 595 00:27:23,359 --> 00:27:24,960 Speaker 1: we've learned. And like you said at the beginning, Joel, 596 00:27:25,040 --> 00:27:27,439 Speaker 1: it's important for us to to cover these things in 597 00:27:27,560 --> 00:27:30,200 Speaker 1: order that they stick and that we don't allow history 598 00:27:30,240 --> 00:27:32,600 Speaker 1: to repeat itself. And unfortunately, you know, there are some 599 00:27:32,640 --> 00:27:34,720 Speaker 1: of us who have learned these lessons the hard way, 600 00:27:34,760 --> 00:27:36,960 Speaker 1: and so by talking about these lessons, hopefully we can 601 00:27:36,960 --> 00:27:40,480 Speaker 1: help others to completely avoid them all together in their lives. Yeah, 602 00:27:40,640 --> 00:27:43,040 Speaker 1: learn the lessons from listening to a podcast as opposed 603 00:27:43,040 --> 00:27:46,919 Speaker 1: to going through incredibly difficult times and not being prepared. Yes, 604 00:27:47,000 --> 00:27:48,720 Speaker 1: so I think we can be more prepared based on 605 00:27:48,760 --> 00:27:51,760 Speaker 1: these lessons. And of course, hopefully we don't encounter another pandemic, 606 00:27:51,800 --> 00:27:55,320 Speaker 1: but financial pitfalls and difficulties and emergencies come up for 607 00:27:55,520 --> 00:27:57,800 Speaker 1: all of us at different times, and they will happen, 608 00:27:57,840 --> 00:27:59,760 Speaker 1: and they're going to happen, and we can be more 609 00:27:59,800 --> 00:28:01,840 Speaker 1: for paired than we currently are. And I think these 610 00:28:01,840 --> 00:28:03,240 Speaker 1: are just some of the ways that we can learn 611 00:28:03,240 --> 00:28:06,080 Speaker 1: a lesson, implement some change, and make a difference for 612 00:28:06,160 --> 00:28:08,159 Speaker 1: our future selves. All right, let's get back to the 613 00:28:08,200 --> 00:28:09,720 Speaker 1: beer that we had on the show today. We drank 614 00:28:09,720 --> 00:28:12,760 Speaker 1: a beer called Modus Vivendi by the Wild Beer Company 615 00:28:12,880 --> 00:28:14,840 Speaker 1: out of the UK. I've actually had this one kind 616 00:28:14,840 --> 00:28:16,920 Speaker 1: of stored away in my quote unquote beer seller, which 617 00:28:16,960 --> 00:28:19,240 Speaker 1: means my kitchen country. Yeah, for like two and a 618 00:28:19,280 --> 00:28:21,720 Speaker 1: half three years now, but I decided to pop it 619 00:28:21,720 --> 00:28:23,359 Speaker 1: out for for this episode with you. Man, what were 620 00:28:23,359 --> 00:28:25,120 Speaker 1: your thoughts on it? Sometimes you gotta bust it out 621 00:28:25,119 --> 00:28:27,960 Speaker 1: for a special occasion podcast or not special occasion, just 622 00:28:28,640 --> 00:28:30,720 Speaker 1: random recording day. Yeah. I will say, this is a 623 00:28:30,720 --> 00:28:33,359 Speaker 1: beer I've had before, and every time I have it, 624 00:28:33,480 --> 00:28:35,960 Speaker 1: I really enjoy it. You know. It doesn't necessarily say 625 00:28:36,000 --> 00:28:38,200 Speaker 1: on the bottle that it's a Flanders red but it 626 00:28:38,280 --> 00:28:40,560 Speaker 1: drinks just like a Flanders Red ale. For for the 627 00:28:40,600 --> 00:28:42,920 Speaker 1: non beer nerds out there, let's just mention that Flanders 628 00:28:42,920 --> 00:28:46,400 Speaker 1: read is this incredibly tart beer with like a vinegar 629 00:28:46,560 --> 00:28:50,360 Speaker 1: profile that is typically found in the Flanders region of Belgium. Yeah, man, 630 00:28:50,400 --> 00:28:52,360 Speaker 1: And that's exactly how I would describe this beer. You know, 631 00:28:52,440 --> 00:28:54,760 Speaker 1: it was acidic and so it was nice and bright, 632 00:28:55,160 --> 00:28:57,520 Speaker 1: but at the same time it had uh it was 633 00:28:57,600 --> 00:28:59,680 Speaker 1: Asian oak barrels, and so it had this kind of 634 00:28:59,680 --> 00:29:03,800 Speaker 1: oak tannon flavor that complemented the acidity very well. It's 635 00:29:03,840 --> 00:29:05,680 Speaker 1: a it's a flavor profile that I can always turn 636 00:29:05,680 --> 00:29:07,920 Speaker 1: to and I know that I will enjoy and this one, 637 00:29:07,960 --> 00:29:11,280 Speaker 1: in particular Modus Vivendi by the Wild Beer Company. I 638 00:29:11,280 --> 00:29:14,080 Speaker 1: feel that this is a perfect example of what this 639 00:29:14,160 --> 00:29:16,719 Speaker 1: style should taste like. Really enjoyed it, buddy, Thank you 640 00:29:16,720 --> 00:29:19,480 Speaker 1: for sharing. What are your thoughts on this one? No, man, 641 00:29:19,520 --> 00:29:22,400 Speaker 1: I totally agree. I really like this beer. I don't 642 00:29:22,400 --> 00:29:24,000 Speaker 1: know why I held onto it for so long without 643 00:29:24,080 --> 00:29:26,920 Speaker 1: drinking it, but now I'm glad I did. And yeah, 644 00:29:27,000 --> 00:29:29,320 Speaker 1: I think to what you said about it being aged 645 00:29:29,320 --> 00:29:34,000 Speaker 1: in oak barrels. It's so massively mellows the those uh, 646 00:29:34,200 --> 00:29:37,080 Speaker 1: those Harsher flavors, and actually really like those Harsher flavors, 647 00:29:37,240 --> 00:29:39,160 Speaker 1: but when you mellow them out with the oak, I 648 00:29:39,160 --> 00:29:40,959 Speaker 1: feel like it actually opens up a whole lot of 649 00:29:40,960 --> 00:29:43,000 Speaker 1: other flavors that are going on in the beer. It's 650 00:29:43,000 --> 00:29:46,240 Speaker 1: not overpowering in its hardness because of the oak. So yeah, 651 00:29:46,280 --> 00:29:49,320 Speaker 1: this was like expertly done right, because some people can 652 00:29:49,360 --> 00:29:50,960 Speaker 1: make a Flanders Red and it can just be like 653 00:29:51,200 --> 00:29:52,560 Speaker 1: a punch to the mouth. It can be a little 654 00:29:52,600 --> 00:29:55,480 Speaker 1: bit too much sometimes, you know, or sometimes even not enough. Yeah, 655 00:29:55,560 --> 00:29:57,240 Speaker 1: either one, and I feel like, yeah, they kind of 656 00:29:57,280 --> 00:29:59,200 Speaker 1: did hit it perfectly on this one. So yeah, I 657 00:29:59,240 --> 00:30:01,320 Speaker 1: really like this beer. Cool man, Well that's going to 658 00:30:01,360 --> 00:30:03,160 Speaker 1: be it for this episode. Listeners. You can find our 659 00:30:03,160 --> 00:30:05,240 Speaker 1: show notes up on our website at how to money 660 00:30:05,280 --> 00:30:07,320 Speaker 1: dot com. And if you've been listening for a while, 661 00:30:07,360 --> 00:30:09,520 Speaker 1: thanks so much. If you're a new listener, don't forget 662 00:30:09,520 --> 00:30:11,800 Speaker 1: to hit that subscribe button so you continue to get 663 00:30:11,840 --> 00:30:14,880 Speaker 1: notifications of every episode that Matt and I put out. 664 00:30:15,120 --> 00:30:16,560 Speaker 1: So all right, Matt, that's gonna do it for this 665 00:30:16,560 --> 00:30:19,920 Speaker 1: one until next time, Buddy, best Friends Out, Best Friends Out.