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Speaker 1: Welcome to Out of Money.

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Speaker 2: I'm Joel and I am Matt, and today we're talking

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Speaker 2: about dumb debit, asinine arbitration, and eccentric economic expectations.

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Speaker 1: Yeah, Joe, let's make sure everyone heard you correctly.

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Speaker 3: You said dumb debit. Everyone knows that debt is dumb.

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Speaker 2: But where pronunciation skills are not the best always.

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Speaker 3: Actually that's normally where I shine my quince and speaking

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Speaker 3: doesn't often shine through.

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Speaker 2: I feel like my alliteration was especially strong today and

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Speaker 2: potentially over the centric economic expectations.

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Speaker 1: That one was really strong. Yeah for sure.

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Speaker 2: I don't mean that in a good way, like maybe

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Speaker 2: I ever did it.

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Speaker 3: Hey, we haven't talked about the Brays recently. You bummed

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Speaker 3: that the Braves are out.

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Speaker 2: Of the playoffs, some massive collapse, but we knew was

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Speaker 2: gonna happen. My hopes were low.

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Speaker 3: But the cool thing, I'm surprised that we that the

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Speaker 3: Braves made it as far as they did, given given

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Speaker 3: the injuries.

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Speaker 1: And yeah, star players who were out agreed.

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Speaker 2: But one I think thing that needs to be talked about,

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Speaker 2: and we won't talk about sports long. Don't worry, but

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Speaker 2: the when you talk. My mom always told me growing

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Speaker 2: up Matt, you can't buy a team, and sometimes, you know,

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Speaker 2: the big spending teams, they always try, like to try

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Speaker 2: to get the star players who are incredibly expensive, and

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Speaker 2: then it was always fun to watch them collapse or

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Speaker 2: not performed merely as well as they were supposed to.

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Speaker 2: And I don't know if anybody out there is like

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Speaker 2: laughing when other people get hurt.

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Speaker 1: So yeah, I.

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Speaker 2: Point and I giggle. It's really fun to see what's

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Speaker 2: happening with the Detroit Tigers right now. Yeah. Their entire

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Speaker 2: payroll is half less than half of what one player

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Speaker 2: on the Yankees gets paid, and so their entire payroll

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Speaker 2: is eighteen million, eighteen million. Yeah, and I think crazy,

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Speaker 2: think about when the Dodgers paid Shoheo Tani seven hundred

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Speaker 2: million dollars, right, And so it's just.

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Speaker 1: Over the course of how many years, like a decade, Yeah,

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Speaker 1: over the.

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Speaker 2: Course of it's still still though, yeah, insane. So I'm

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Speaker 2: pulling for the Detroit Tigers at this point.

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Speaker 3: Oh hey, yeah, Like who doesn't want to root for

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Speaker 3: an underdog? And especially given Detroit, I feel like that

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Speaker 3: city has experienced so much hardship, right like over the

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Speaker 3: like you look at history, like the past fifty years

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Speaker 3: with the collapse of the auto industry and unions and

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Speaker 3: all that, and like it makes me think about like

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Speaker 3: during the housing crisis during the Great Recession, Like I

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Speaker 3: had to get myself off of Instagram, Like I followed

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Speaker 3: this account that was called Cheap Old Houses and they

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Speaker 3: would feature so many beautiful turn of the century homes

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Speaker 3: in Detroit, and I would always show them to Kate

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Speaker 3: and be like, hey, babe, you want to move to

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Speaker 3: this place because they're basically giving these houses like twelve

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Speaker 3: thousand dollars. Yes, and it just needs a little bit

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Speaker 3: of work. And this doesn't mean that Detroit's like all

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Speaker 3: the problems are now fixed because housing was affordable there

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Speaker 3: and now the Tigers might make it to the World Series.

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Speaker 3: But I am happy for Detroit. Yeah, as a city.

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Speaker 3: Good to see when they've been crapped on for so long.

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Speaker 3: There's like a some silver linings.

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Speaker 2: Perhaps it seems like Detroit is a rad place to hang.

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Speaker 2: I have never been. I would love to go, And

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Speaker 2: maybe we'll go see a Tigers game next year and

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Speaker 2: check out this awesome team that they've got. So let's

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Speaker 2: get to the Friday flight, Matt. Let's get to the

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Speaker 2: sampling of stories we found interesting this week. Let's talk

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Speaker 2: about debit cards. We don't really like them for the

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Speaker 2: most part. And the good folks over at Experience, Matt

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Speaker 2: the Credit Bureau Experience, And I say that with my

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Speaker 2: tongue firmly in my cheek. They're not great folks necessarily.

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Speaker 2: I mean, I'm sure there's some good people who worked there,

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Speaker 2: but the organization as a whole not one that we

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Speaker 2: really dig or have much fondness for. They launched a

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Speaker 2: debit card last year, and friend of the show, Ron Lieber,

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Speaker 2: he writes for The New York Times, he put out

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Speaker 2: this great article warning people to be wary of this

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Speaker 2: debit card product that Experience has.

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Speaker 1: He can always count on, mister Lieber.

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Speaker 2: Oh yeah, he's holding people's feet to the fire. And

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Speaker 2: why did he hate this thing? Why is he telling

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Speaker 2: us that we should avoid it. He's basically saying, Hey,

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Speaker 2: the perks are really lackluster, and they're going to make

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Speaker 2: it sound like it's this awesome thing, but it's really not.

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Speaker 2: And some of the promises that the long that they're

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Speaker 2: saying is is basically, this account can help you raise

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Speaker 2: your credit score. That's one of the major selling points

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Speaker 2: for Experience to say, instead of just relying on us

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Speaker 2: for your credit needs, you should also rely on us

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Speaker 2: for your banking needs because guess what if you bank

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Speaker 2: with us, which they're not really a bank, they're one

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Speaker 2: of those they've got one of those pass through banks

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Speaker 2: that they're working with. If you bank with us, well,

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Speaker 2: mate will help you raise your credit score. Well, you

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Speaker 2: can enroll in their Experience Boost program, which is like

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Speaker 2: their free credit building product without opening a bank account

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Speaker 2: with them.

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Speaker 3: So I don't know why folks would actually trust this

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Speaker 3: company that has done such a poor job yeah at

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Speaker 3: protecting your personal.

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Speaker 2: Data, not just Experience, all the credit bureaus, but oh

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Speaker 2: my gosh, Like why would I want to bank with

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Speaker 2: a company with this kind of reputation? And you and

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Speaker 2: I were not fans of debit cards in general, but

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Speaker 2: getting one from a credit bureau would be like a

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Speaker 2: double dose of dumb, I think. So it's called the

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Speaker 2: Experience Smart Money debit card, not so smart avoided people.

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Speaker 3: I was trying to think of a parallel, like what

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Speaker 3: do we see in life, or like what's an example,

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Speaker 3: and it makes me think of Ticketmaster because everybody hates Ticketmaster, right,

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Speaker 3: but it would be as if I.

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Speaker 2: Just had to hold my nose and buy tickets from

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Speaker 2: them recently, Yeah, all.

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Speaker 3: This fees man, it would be as if you chose

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Speaker 3: to wear a Ticketmaster's shirt, because it's like, well, Ticketmaster

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Speaker 3: they are music industry adjacent, like they kind of are

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Speaker 3: involved with the bands that you love, and you love

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Speaker 3: wearing band t shirts stool of your favorite bands. But

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Speaker 3: it's like, but no, I actually hate Ticketmaster. I just

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Speaker 3: like the bands that they tend to showcase. That's what

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Speaker 3: I feel like experience is doing here. It's like they're

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Speaker 3: sort of like the thirty rock how do you do

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Speaker 3: fellow kids, Like they're trying to swoop in and get

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Speaker 3: a part of the action, when in reality they're not

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Speaker 3: able to provide anything of actual substance.

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Speaker 2: Okay, now you're making you want to get a Ticketmaster

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Speaker 2: and an experience lower back tattoo.

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Speaker 1: How much do tattoos cost?

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Speaker 3: I've never I don't have a tattoo, but I would

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Speaker 3: pay for that for you to get given of this. Honestly,

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Speaker 3: we got a tap experience because they would probably they

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Speaker 3: probably would sponsor you. Yeah, we like credit cards a

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Speaker 3: whole lot more obviously, because well they have better protections.

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Speaker 3: They can be far more rewarding. But that being said,

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Speaker 3: there are new credit card fees that are coming down

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Speaker 3: the pike, largely in response to the CFPB's attempt to

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Speaker 3: cap late fees at eight dollars, which is by the way,

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Speaker 3: this is hung up in court. The outcome is unsure.

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Speaker 2: Kind of like a student loan thing. It's like, what's

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Speaker 2: gonna happen here?

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Speaker 3: We don't exactly know. Yeah, but the big credit card issuers,

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Speaker 3: the big banks, they're planning for the hammer to fall.

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Speaker 3: And like we said back when that announcement was made,

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Speaker 3: their credit card companies, they will find another way.

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Speaker 1: To keep their profits elevated. They're crafty.

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Speaker 3: They're gonna find a way to charge you some Some

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Speaker 3: of them are considering instituting new fees for let's say,

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Speaker 3: paper statements. Others are just raising their interest rates, even

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Speaker 3: as the FED is actually lowering the overnight lending rate.

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Speaker 2: You're like, well, I thought my credit card interest rate

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Speaker 2: was gonna go down. Matt and Joel said that it's like, well,

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Speaker 2: there's this other thing happening over here, and.

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Speaker 1: So big bank, so they got to find a way

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Speaker 1: to make a bug.

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Speaker 3: It's actually going up. But bottom line, what this means though,

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Speaker 3: is that you should never run a balance regardless. That's

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Speaker 3: regardless of whether or not interest rates are going up

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Speaker 3: or not. Never carry a balance. If you have one,

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Speaker 3: pay it off as quickly as possible, of course, but

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Speaker 3: then just create a written plan, stick to it when

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Speaker 3: it comes to eliminating some of that credit card debt,

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Speaker 3: and then just make sure to pay attention to some

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Speaker 3: of the different hoops that the banks are going to

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Speaker 3: require us to jump through, and we'll make sure to

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Speaker 3: keep an eye on.

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Speaker 1: That as well. Yeah, if there are any egregious examples

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Speaker 1: of that.

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Speaker 2: Right, if there really is. If you get hit with

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Speaker 2: a paper statement fee, stop getting paper statements and the

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Speaker 2: need to offer the digital ones. And if you feel

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Speaker 2: like you need to keep the records of all your

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Speaker 2: credit card statements, do that. But you can save the

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Speaker 2: PDF of those and keep them on hand digitally. I mean,

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Speaker 2: do people actually save their credit card statements anyway if

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Speaker 2: they keep the paper ones. Yeah, so find a way

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Speaker 2: to reduce those fees. It's you're right, Matt. The credit

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Speaker 2: card companies, we knew this. If you tamp them down

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Speaker 2: in one area, they're going to find another way to

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Speaker 2: keep their profits up. Let's make the case for a

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Speaker 2: second for technology though, and against checks. We've done this before.

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Speaker 2: We hate checks, but it's not because even in this instance,

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Speaker 2: retailers aren't accepting them anymore. We talked about how Target

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Speaker 2: has basically said, no, we're not taking checks at checkout anymore.

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Speaker 2: It's because scammers can actually easily use checks to commit

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Speaker 2: fraud or theft. And there was a recent example of

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Speaker 2: this map. They can steal the check right out of

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Speaker 2: your mailbox and take your money. And so this is

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Speaker 2: happening to people who have opted to get their tax

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Speaker 2: refund by mail instead of getting their refund via direct deposit.

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Speaker 2: And so if you're one of those people, you are

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Speaker 2: a target to have your tax refunds stolen. Fortunately, ninety

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Speaker 2: percent of folks have opted for direct deposit these days,

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Speaker 2: but that's to lease a lot of people. Think about

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Speaker 2: ten percent of Americans Matt, getting their tax refundsent to

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Speaker 2: their mailbox. That's a sizeable number of folks who are

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Speaker 2: taking the old school route. And then if the check

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Speaker 2: gets stolen, it's a massive pain of the button, Matt.

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Speaker 2: There are examples of people who have said, hey, my

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Speaker 2: checkout stolen. I didn't come in the mail, and a

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Speaker 2: thief stole the funds, and then the IRS sends another

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Speaker 2: check it also gets stolen. This is a significant problem.

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Speaker 2: You're out, Yeah, and eventually the IRS is going to

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Speaker 2: send you the money that you're owed, but you're out

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Speaker 2: the refund for even longer. For a lot of people

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Speaker 2: met the refund can be you know, multiple thousands of dollars.

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Speaker 1: A lot of folks are counting on that refund. Yeah.

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Speaker 2: I mean, I think most Town of Money listeners know this,

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Speaker 2: especially given the demographics of the people who listen. But

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Speaker 2: direct deposit offer that it's easier, it has fewer pitfalls,

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Speaker 2: And so in the spring when you file your taxes,

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Speaker 2: make sure to elect for a direct deposit because if

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Speaker 2: you opt for a check to come, one it could

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Speaker 2: get stolen. And two, even when you're asking for a replacement,

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Speaker 2: you can't switch to direct deposit. They have to. The

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Speaker 2: IRS basically says no, we're going to send you another check,

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Speaker 2: and you can't change the method of payment.

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Speaker 1: Yeah.

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Speaker 3: So at the very least, maybe you know somebody so,

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Speaker 3: like you said, Jill, I think a lot of our

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Speaker 3: listeners probably aren't opting for the paper check, but maybe

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Speaker 3: there might be somebody in your family, for instance, who

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Speaker 3: is opting for that, and make sure.

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Speaker 1: That this is a discussion that you have with them. Jill.

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Speaker 3: Let's talk about entrepreneurship. There's a spike in small business

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Speaker 3: formation back when COVID hit, But the thing is is

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Speaker 3: that is continuing strong and many of the companies that

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Speaker 3: were formed during that COVID induced economic downturn, they have

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Speaker 3: been crushing it. And it turns out it wasn't just

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Speaker 3: that you know, stemy check phenomenon that we're causing folks

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Speaker 3: to reconsider their you know how, it is that they

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Speaker 3: spend their time they're nine to five, and that's good news.

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Speaker 3: It's happening all across the country and in big cities

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Speaker 3: and small cities, in metropolitan areas as well as rural

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Speaker 3: locations as well. And the rise of remote work, which

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Speaker 3: it is I will admit it is seeing a bit

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Speaker 3: of a pullback in corporate America, but it is allowing,

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Speaker 3: it is aiding the ability of individuals to start their

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Speaker 3: own thing when they have a little more time, They

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Speaker 3: got a little more flexibility to take on some of

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Speaker 3: that additional works.

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Speaker 2: You're connected. It's so much easier to connect, and you

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Speaker 2: mentioned rural America, Matt, think about something like starlink and

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Speaker 2: how it's easier to get good internet service in almost

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Speaker 2: any part of the country guardless of.

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Speaker 1: Where you are.

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Speaker 3: Even if you're off grid somewhere else, you can still

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Speaker 3: have internet access. It's easier than ever to start working

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Speaker 3: for yourself, even if it's like only part time for

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Speaker 3: a while. Something like eighty percent of businesses are solopreneur businesses,

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Speaker 3: and we are personally big fans of starting your own thing,

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Speaker 3: and so if you are considering hanging your own shingle,

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Speaker 3: we would recommend for you to listen back to episode

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Speaker 3: eight eight four week.

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Speaker 1: You know, we tied some of the benefits.

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Speaker 3: We talked with guests Laura Adams about maybe why it

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Speaker 3: is that you should consider.

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Speaker 1: Working for yourself.

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Speaker 2: Yeah, and she gave a lot of great insights for

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Speaker 2: how to go about launching that business and then specifically

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Speaker 2: as a small business owner too as this wholopreneur kind

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Speaker 2: of some of the things you need to know. So

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Speaker 2: that's definitely worth listening to, Matt. One of the reasons

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Speaker 2: people often choose to not go work for themselves is

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Speaker 2: because their healthcare is tied to their job. Right, A

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Speaker 2: lot of people continue working for the man because they're like,

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Speaker 2: how am I going to pay this twenty five thousand

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Speaker 2: dollars healthcare premium annual premium for my family if I

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Speaker 2: go out and work for myself, and it is that

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Speaker 2: is I will admit, one of the toughest hurdles to

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Speaker 2: jump when we're talking about going out and starting your

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Speaker 2: own thing. It's a terrible economic reality in this country

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Speaker 2: that reduces entrepreneurship and it inhibits economic dynamism, and it's

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Speaker 2: one of the reasons I think that health care costs

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Speaker 2: are rising much faster than almost everything else, the employer

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Speaker 2: involvement in individual and family health care in this country,

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Speaker 2: and as everyone knows, buying healthcare as a self employed

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Speaker 2: person is tough. Is so much of how much it

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Speaker 2: costs depends on your income because of subsidies on the

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Speaker 2: healthcare exchange. A lot of people, including you and I Maatt,

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Speaker 2: have opted for health sharing companies because they're not traditional insurance.

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Speaker 2: But because of that they can save you a bundle

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Speaker 2: with some pitfalls as well that you have to be

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Speaker 2: aware of. But some employers have actually started taking a

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Speaker 2: different approach and so instead of providing actual healthcare and saying, hey,

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Speaker 2: here's the plan that we offer once you sign up,

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Speaker 2: and we're an open enrollment season right now for a

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Speaker 2: lot of people, well, they're offering you money instead to

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Speaker 2: get your own plan on the private market. I like

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Speaker 2: this so much more. You know, more employees are interested

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Speaker 2: essentially in lessening their own financial burden because how much

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Speaker 2: premiums have gone up, And it does give employees more

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Speaker 2: choice over the type of coverage and the type of

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Speaker 2: plan that they choose to have. But I will say

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Speaker 2: this too, where it's happening, it could be end up

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Speaker 2: being a financial loser for some folks. Depending on how

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Speaker 2: generous the healthcare stipend is, you might find that you're

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Speaker 2: not able to buy as nice of a health care

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Speaker 2: policy that maybe doesn't cover quite as much with the

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Speaker 2: new stipend. It's good for employers. I think it can

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Speaker 2: help you make wise decisions when you're shopping for insurance,

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Speaker 2: but you also might find that there's a gap there

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Speaker 2: between the coverage you used to get and the coverage

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Speaker 2: you can now afford. So ultimately, wouldn't it be nice

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Speaker 2: if we were able to disentangle healthcare from employment altogether.

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Speaker 2: I think it'd be good for our country. It'd be

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Speaker 2: good for small businesses, but good for the dynasism. Yeah,

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Speaker 2: that's dynamism.

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Speaker 3: It was like combining cynicism and I guess a dynamic

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Speaker 3: labor market perhaps. But something else that is at least

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Speaker 3: partially connected to your job is your retirement account. We're

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Speaker 3: talking about four to one ks here. Well, changing jobs

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Speaker 3: can also have adverse effects on your retirement and the

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Speaker 3: reason for that is because there is some new research

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Speaker 3: from Vanguard and they find that when people switch jobs,

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Speaker 3: and even if it's to snack a bigger paycheck, they

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Speaker 3: often end up forgetting to sign up for the new.

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Speaker 1: Four to one K plan rookie fail or. A lot of.

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Speaker 3: Employers are auto enrolling their newer employees, but sometimes the

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Speaker 3: default rate is only three percent. And let's say you're

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Speaker 3: at your previous employeer, maybe you're up to I don't know,

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Speaker 3: six seven, eight percent perhaps maybe more, maybe even more. Yeah,

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Speaker 3: And because of that, Vanguard says that this could be

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Speaker 3: easily this could be a six figure mistake, costing folks

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Speaker 3: massive money and compounding over the coming decades because of

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Speaker 3: that reduced contribution amount, because of subsequent inertia bias as well.

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Speaker 3: You just kind of stick with what it is that

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Speaker 3: was the default option, and you're missing out. Future you

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Speaker 3: is missing out. And so if you're changing jobs, just

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Speaker 3: make sure that you pay close attention to what your

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Speaker 3: prior contribution percentage was. And what we would suggest is

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Speaker 3: just try to mirror that at your new employer, right,

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Speaker 3: just carry over some of those good habits or even

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Speaker 3: consider raising it, especially if you are making more money,

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Speaker 3: because it's like, hey.

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Speaker 2: It's a perfect time.

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Speaker 3: It's a perfect time for you to sort of trick

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Speaker 3: yourself into thinking that, oh, well, it's not actually painful

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Speaker 3: at all for me to increase how much I'm saving

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Speaker 3: because my paycheck it's staying the same, and so you're

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Speaker 3: able to save more or you know what, a lot

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Speaker 3: of folks with the raise, they're able to do both.

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Speaker 3: You experience a slightly fatter paycheck but not over the top, yeah,

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Speaker 3: while at the same time experiencing higher amounts of saving

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Speaker 3: as it's going towards your Form one K.

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Speaker 1: This was something I like, the both and approach.

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Speaker 2: Yeah, it's funny, this is something I hadn't really thought about, Like, oh,

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Speaker 2: over the years, you've been increasing your four one K

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Speaker 2: contribution percentage. You started out at five. Let's say by

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Speaker 2: the time you left that job, you got it up

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Speaker 2: to twelve or thirteen percent. Amazing. But then you get

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Speaker 2: the new job, you're auto enrolled at three and you

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Speaker 2: just let it be. I just never thought that was

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Speaker 2: a problem. Vanguard points out that it's a meaningful problem.

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Speaker 2: So if you're switching jobs, definitely pay attention to this, because, yeah,

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Speaker 2: if you're reducing your contribution amount by that much, we

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Speaker 2: are talking about a potential six figure deficit when it

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Speaker 2: comes to your future retirement.

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Speaker 1: But Joe, we got more to get to. We're gonna

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Speaker 1: talk about the types of landlords who are the worst.

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Speaker 1: We'll get to that more right after this.

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Speaker 2: All right, Matt, we're back. We've got more to get to.

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Speaker 2: We will talk about preming landlords and no, it's not

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Speaker 2: gonna be a self owned Okay, we're decent landlords people.

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Speaker 2: But now let's get to the ludacrous headline of the week.

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Speaker 2: This one comes from CNN and the headline reads, couple

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Speaker 2: in severe uber crash can't sue because of an uber

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Speaker 2: eats order, And that sounds really frustrating, Matt, and basically

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Speaker 2: My takeaway from this article is Uber sucks, but they're

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Speaker 2: also not alone and sucking. They're acting like most other companies.

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Speaker 2: And what do most other companies do. They stick arbitration

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Speaker 2: agreements in the terms of service that we all sign

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Speaker 2: but that none of us actually read. And the couple

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Speaker 2: in this attempted lawsuit was severely injured, including spinal fractures,

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Speaker 2: which sounds terrible, after the uber they were riding in

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Speaker 2: was in an accident. And then Uber's response essentially is

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Speaker 2: tough luck. You got to go through the system we've

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Speaker 2: set up that's essentially designed to screw you. So what's

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Speaker 2: so bad about arbitration, you might be wondering, Well, the

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Speaker 2: deck is stacked against the individual in the case of arbitration,

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Speaker 2: the arbitrator. This is The New York Times did this

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Speaker 2: investigation a few years back, Matt. The New York Times

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Speaker 2: essentially found that arbitration finds in favor of the company

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Speaker 2: eighty plus percent of the time. So you, as an individual,

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Speaker 2: you could be spending a lot of money in arbitration

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Speaker 2: and you're not getting a fair shake here. You're not

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Speaker 2: getting a fair hearing. Companies avoid paying out billions of

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Speaker 2: dollars to consumers by using the arbitration system to their advantage.

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Speaker 2: So this is one of those clauses that's in the

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Speaker 2: fine print of every terms of service that we all

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Speaker 2: automatically ascribe to. I think it's important to point that out,

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Speaker 2: and I think it's also important for us to highlight

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Speaker 2: when companies are using it in a way that's improper.

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Speaker 2: And part of this was the couple said that what

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Speaker 2: was their daughter who signed up and made that order

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Speaker 2: through Uber eys It wasn't even them, and Uber saying nope, sorry,

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Speaker 2: it was under the household or whatever. We're holding you

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Speaker 2: to this.

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Speaker 3: Yeah, the terms of service agreements that we have to

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Speaker 3: accept in order to use certain software and different apps

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Speaker 3: and different services, it's kind of ridiculous, get out of control,

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Speaker 3: because I think someone who is following more of the

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Speaker 3: letter of the law would say, well, you shouldn't agree

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Speaker 3: to those terms.

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Speaker 1: Of service, but like, it would truly take a part time.

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Speaker 3: Job to be able to read through all of the

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Speaker 3: different agreements that you scroll down and clickach so you

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Speaker 3: don't even have to scroll down anymore, because it's like

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Speaker 3: it's hyperlinked.

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Speaker 2: Rumpel Stiltskin ask man, I feel like I probably owe

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Speaker 2: my firstborn children to one of these companies.

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Speaker 1: It's ridiculous.

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Speaker 3: But the reason we're pointing this out is because there's

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Speaker 3: a certain amount of hassle that we expect to deal

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Speaker 3: with when it comes to being able to use some

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Speaker 3: of these different services. But when there is a company

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Speaker 3: that isn't doing the right thing, I mean technically, Joe, well,

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Speaker 3: like we're media and so our ability to kind of

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Speaker 3: shine a light on this and hopefully to encourage companies

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Speaker 3: out there to do a better job we were doing.

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Speaker 2: Are we the mainstream corporate media mat or are we

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Speaker 2: the independent media?

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Speaker 3: I feel like we're a little more alternative, independent type

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Speaker 3: of guys. But it makes me think back to Disney.

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Speaker 3: Remember when they there's a lady that died because of

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Speaker 3: that severe allergic reaction.

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Speaker 1: Yeah, that was just not longer.

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Speaker 3: At least they back down when they realized that they were,

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Speaker 3: you know, treating their customers in a way that was

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Speaker 3: just beyond the pale. But Uber they're not budging. So yeah,

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Speaker 3: we want folks to know that these arbitration agreements they're

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Speaker 3: kind of par for the course and they do limit

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Speaker 3: your legal recourse and hopefully, yeah, hopefully Uber ends up

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Speaker 3: doing the right thing. I will say it wasn't just

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Speaker 3: an accident that the car was involved with the driver

437
00:19:45,400 --> 00:19:47,240
Speaker 3: did run a red light, and so part of me,

438
00:19:47,720 --> 00:19:51,480
Speaker 3: I'm just advocating slightly on behalf of Uber, like I'm

439
00:19:51,480 --> 00:19:53,480
Speaker 3: going to play devil's advocate here and say, maybe we

440
00:19:53,520 --> 00:19:57,000
Speaker 3: don't have all the facts, because typically you would sue

441
00:19:57,080 --> 00:20:00,320
Speaker 3: the driver because they have auto insurance. But I'm curious

442
00:20:00,119 --> 00:20:02,680
Speaker 3: us if the couple is looking for a bigger potential

443
00:20:02,680 --> 00:20:05,359
Speaker 3: payoff from a giant company as opposed to just the

444
00:20:05,400 --> 00:20:08,320
Speaker 3: meager offerings that they might receive from somebody who has

445
00:20:08,359 --> 00:20:11,320
Speaker 3: auto insurance. Of course, but that having said, if that's

446
00:20:11,400 --> 00:20:14,119
Speaker 3: the case, then Uber needs to communicate that clearly, because

447
00:20:14,160 --> 00:20:17,080
Speaker 3: you know, this is a pr issue. If that's the case,

448
00:20:17,080 --> 00:20:19,000
Speaker 3: then they need to make it clear that like no, no, no,

449
00:20:19,280 --> 00:20:20,639
Speaker 3: like they're going to be taken care of.

450
00:20:20,720 --> 00:20:24,080
Speaker 1: It's just this is the mean. Yeah.

451
00:20:24,119 --> 00:20:26,080
Speaker 3: So either way, it doesn't seem like that there's a

452
00:20:26,080 --> 00:20:29,800
Speaker 3: whole lot of clarity or transparency in how it is

453
00:20:29,840 --> 00:20:30,760
Speaker 3: that they're handling this.

454
00:20:30,880 --> 00:20:33,359
Speaker 2: But speaking of the companies being unkind, how that's not

455
00:20:33,440 --> 00:20:34,560
Speaker 2: rare at all, isn't that?

456
00:20:34,640 --> 00:20:35,120
Speaker 1: Well?

457
00:20:35,119 --> 00:20:37,520
Speaker 3: On that note, we would recommend to maybe don't rent

458
00:20:37,520 --> 00:20:41,320
Speaker 3: a home from Invitation Homes. The FTC they actually issued

459
00:20:41,359 --> 00:20:45,119
Speaker 3: a warning about unnecessary fees that Invitation Homes has been

460
00:20:45,200 --> 00:20:49,479
Speaker 3: charging tenants. They've got this worry free way of renting

461
00:20:49,480 --> 00:20:53,120
Speaker 3: a home, and the worry free marketing it didn't quite

462
00:20:53,160 --> 00:20:55,680
Speaker 3: line up with the real life tenant treatment that folks

463
00:20:55,680 --> 00:20:56,320
Speaker 3: were receiving.

464
00:20:56,600 --> 00:20:58,800
Speaker 2: There's been some horror stories, yeah, they've come out over

465
00:20:58,800 --> 00:20:59,960
Speaker 2: the years about Invitation Home.

466
00:21:00,080 --> 00:21:02,280
Speaker 3: Yeah, and they're going to be forced to refund forty

467
00:21:02,320 --> 00:21:05,720
Speaker 3: eight million dollars to folks who have rented with them,

468
00:21:05,720 --> 00:21:08,360
Speaker 3: and these two stories with it, you know, with invitation

469
00:21:08,440 --> 00:21:10,199
Speaker 3: Homes and Uber, I think the takeaway is just to

470
00:21:10,240 --> 00:21:12,880
Speaker 3: know your rights, and in this case, I would say

471
00:21:13,040 --> 00:21:16,040
Speaker 3: do your best to avoid Wall Street landlords or phase

472
00:21:16,200 --> 00:21:18,520
Speaker 3: of the mama pop style landlords.

473
00:21:18,880 --> 00:21:21,000
Speaker 2: It's not like all mom and pop landlords are great.

474
00:21:21,119 --> 00:21:23,040
Speaker 2: I'm sure there's a lot that is true. There's a

475
00:21:23,119 --> 00:21:25,280
Speaker 2: number of them that are bad. But the number of

476
00:21:25,359 --> 00:21:29,000
Speaker 2: stories that have come out about invitation Homes across a

477
00:21:29,080 --> 00:21:32,600
Speaker 2: number of years are so harrowing. The lack of response

478
00:21:32,720 --> 00:21:36,400
Speaker 2: to issues that tenants are having. And then this lawsuit

479
00:21:36,440 --> 00:21:40,560
Speaker 2: from the FTC about the excessive fees that are being charged,

480
00:21:40,840 --> 00:21:44,040
Speaker 2: the non refunding of security deposits when they were clearly

481
00:21:44,280 --> 00:21:44,960
Speaker 2: gidden fees.

482
00:21:45,080 --> 00:21:47,760
Speaker 3: Yeah, I don't like that either. Yeah, the ability for

483
00:21:47,840 --> 00:21:49,439
Speaker 3: a company to be transparent in this way as to

484
00:21:49,440 --> 00:21:50,920
Speaker 3: what it is you're actually going to charge your customer.

485
00:21:50,960 --> 00:21:52,440
Speaker 2: They say, oh, it's going to be worried for your renting,

486
00:21:52,480 --> 00:21:54,880
Speaker 2: it turns out it's it's not worry free and it's

487
00:21:54,880 --> 00:21:56,880
Speaker 2: going to cost you. And I think this is also

488
00:21:56,920 --> 00:21:59,280
Speaker 2: really important to mention, Matt to whether you're renting from

489
00:21:59,400 --> 00:22:02,240
Speaker 2: a corporate land or whether you're running from an individual.

490
00:22:02,560 --> 00:22:06,040
Speaker 2: It's always important to take photos and videos when you

491
00:22:06,119 --> 00:22:08,919
Speaker 2: move in to note the condition of the home. Typically

492
00:22:08,960 --> 00:22:11,000
Speaker 2: there's like a walk through inspection with the landlord, but

493
00:22:11,040 --> 00:22:13,000
Speaker 2: they don't always do that, and so what I would

494
00:22:13,040 --> 00:22:15,320
Speaker 2: do is I would document thoroughly, Hey, this is what

495
00:22:15,359 --> 00:22:17,199
Speaker 2: the home looks like. If there are little issues, and

496
00:22:17,240 --> 00:22:19,000
Speaker 2: then you can point them out to the landlord and say, hey,

497
00:22:19,000 --> 00:22:21,840
Speaker 2: these things could be fixed. If they're minor things, you

498
00:22:21,840 --> 00:22:24,040
Speaker 2: don't need to necessarily push it, but at least you

499
00:22:24,119 --> 00:22:26,720
Speaker 2: have that in your back pocket for when you're moving out,

500
00:22:26,760 --> 00:22:29,239
Speaker 2: and you can document take photos and videos then too,

501
00:22:29,280 --> 00:22:30,879
Speaker 2: and say, hey, it looks pretty much the same, or

502
00:22:30,880 --> 00:22:33,800
Speaker 2: actually there is this gouge in the paint here or whatever.

503
00:22:34,000 --> 00:22:35,920
Speaker 2: But if you have photos and videos, that can be

504
00:22:36,200 --> 00:22:39,119
Speaker 2: your protection if there is some sort of legal recourse

505
00:22:39,160 --> 00:22:41,560
Speaker 2: that you have to see totally, Matt, let's talk about

506
00:22:41,600 --> 00:22:44,840
Speaker 2: insurance for a second, and specifically insurance in the light

507
00:22:44,880 --> 00:22:49,080
Speaker 2: of what's been happening recently. As far as the weather,

508
00:22:49,520 --> 00:22:53,600
Speaker 2: it's probably an understatement, just horrific weather events essentially happening

509
00:22:53,720 --> 00:22:58,359
Speaker 2: in the southeast. The destruction from Hurricane Helene was rampant,

510
00:22:58,359 --> 00:23:01,040
Speaker 2: specifically in western North Caro Line. We talked about that,

511
00:23:01,520 --> 00:23:04,600
Speaker 2: and then Hurricane Milton pummeled Florida earlier this week too.

512
00:23:04,960 --> 00:23:07,040
Speaker 2: It seems like it wasn't as bad as it could

513
00:23:07,040 --> 00:23:09,960
Speaker 2: have been, fortunately, but it's been an awful couple of

514
00:23:10,000 --> 00:23:11,600
Speaker 2: weeks on the natural disaster front. I was talking to

515
00:23:11,640 --> 00:23:13,520
Speaker 2: my neighbor who's got a place in Florida, and he's

516
00:23:13,520 --> 00:23:15,639
Speaker 2: basically saying, I don't know, man, I think I might

517
00:23:15,680 --> 00:23:17,520
Speaker 2: be ready to get out, like this is just too

518
00:23:17,600 --> 00:23:19,520
Speaker 2: much to bear. And I totally understand that. Like, if

519
00:23:19,560 --> 00:23:22,520
Speaker 2: you live in Florida, it's been your life has been

520
00:23:22,680 --> 00:23:25,480
Speaker 2: caught up in horrific hurricanes. So our hearts go out

521
00:23:25,520 --> 00:23:27,880
Speaker 2: to everyone who's lost family or friends who's had to

522
00:23:28,119 --> 00:23:32,400
Speaker 2: evacuate and met their estimates. Property damage could cost owners

523
00:23:32,760 --> 00:23:35,560
Speaker 2: forty seven billion dollars. It's kind of hard to fathom.

524
00:23:35,640 --> 00:23:39,200
Speaker 2: That's a big number. And it also has highlighted issues

525
00:23:39,240 --> 00:23:42,600
Speaker 2: that FEMA has been dealing with perpetually and continues to

526
00:23:42,600 --> 00:23:46,119
Speaker 2: deal with, in how they respond to disasters and how

527
00:23:46,160 --> 00:23:48,120
Speaker 2: people are how quickly people are helped, and how quickly

528
00:23:48,160 --> 00:23:50,760
Speaker 2: money gets into their hands. It's also highlighted the gap

529
00:23:50,800 --> 00:23:53,720
Speaker 2: between what people think they're coverages and then the lack

530
00:23:53,760 --> 00:23:55,920
Speaker 2: thereof when it comes down to it. A lot of

531
00:23:55,960 --> 00:23:58,640
Speaker 2: folks thought, hey, my homeowner's insurance it's going to cover

532
00:23:58,840 --> 00:24:01,840
Speaker 2: the damage that I've sustained, and they're often sorely mistaken.

533
00:24:02,440 --> 00:24:06,800
Speaker 2: That's because these policies don't typically cover damage from flooding.

534
00:24:06,960 --> 00:24:10,200
Speaker 2: That's right, you need a separate policy for that. And Matt,

535
00:24:10,320 --> 00:24:13,679
Speaker 2: especially in North Carolina, fewer than one percent of folks

536
00:24:14,000 --> 00:24:16,640
Speaker 2: in the places they get like the worst flooding damage

537
00:24:17,119 --> 00:24:20,160
Speaker 2: have that kind of coverage, which adds insult to injury.

538
00:24:20,440 --> 00:24:22,880
Speaker 2: And so yeah, if damage you are a loved one

539
00:24:23,160 --> 00:24:25,840
Speaker 2: sustained is called flood damage, but you think it isn't.

540
00:24:26,200 --> 00:24:28,560
Speaker 2: It's important to fight back because that's happening too, because

541
00:24:28,560 --> 00:24:31,840
Speaker 2: some insurance companies are saying, hey, listen, no, this damage

542
00:24:31,840 --> 00:24:33,719
Speaker 2: was due to flooding, and you're saying, no, wait, this

543
00:24:33,840 --> 00:24:36,200
Speaker 2: it wasn't. There was a hole in the roof, that's

544
00:24:36,240 --> 00:24:38,399
Speaker 2: how the water got it, like a tree smashed through

545
00:24:38,440 --> 00:24:40,520
Speaker 2: the There was no flooding that happened. You have to

546
00:24:40,560 --> 00:24:43,000
Speaker 2: be willing and able to document and push back on that.

547
00:24:43,080 --> 00:24:45,200
Speaker 3: Yeah, they're standing there pointing fingers at each other right

548
00:24:45,240 --> 00:24:47,240
Speaker 3: where the Hormeter's insurance is saying no, no, this is

549
00:24:47,280 --> 00:24:49,520
Speaker 3: due to flooding, and then the spider man means is

550
00:24:49,720 --> 00:24:51,960
Speaker 3: exactly it's pointing, be like, no, that's actually when damage

551
00:24:52,000 --> 00:24:54,840
Speaker 3: that's not covered under flood insurance. And so there's Yeah,

552
00:24:54,840 --> 00:24:57,080
Speaker 3: there's a whole lot of advocating for yourself that's going

553
00:24:57,160 --> 00:24:57,879
Speaker 3: to have to take place here.

554
00:24:57,920 --> 00:25:00,640
Speaker 2: Yeah, a couple of things too. Won't file a claim

555
00:25:00,640 --> 00:25:03,440
Speaker 2: if the damage you sustained was minor, if it's something

556
00:25:03,480 --> 00:25:05,800
Speaker 2: you feel like you can fix fairly easily. And there

557
00:25:05,840 --> 00:25:07,360
Speaker 2: are a lot of people in that situation too, where

558
00:25:07,359 --> 00:25:10,080
Speaker 2: it's it's just minor damage. Fortunately, you probably don't want

559
00:25:10,080 --> 00:25:12,479
Speaker 2: to get insurance involved because you could see your rate

560
00:25:12,520 --> 00:25:14,840
Speaker 2: skyrocket and it wouldn't be worth it. The other thing is,

561
00:25:15,119 --> 00:25:17,080
Speaker 2: if you feel like you are being treated unfairly by

562
00:25:17,080 --> 00:25:18,960
Speaker 2: an insurance company, you know, I want to contact a

563
00:25:18,960 --> 00:25:21,560
Speaker 2: public adjuster. My parents are literally in this process right

564
00:25:21,600 --> 00:25:24,840
Speaker 2: now because they sustained some roof damage and oh yeah,

565
00:25:24,840 --> 00:25:26,920
Speaker 2: and the insurance company basically said, hey, listen, we don't

566
00:25:26,920 --> 00:25:29,320
Speaker 2: think you need a whole roof replacement. And they're saying,

567
00:25:29,600 --> 00:25:32,680
Speaker 2: we're pretty sure there's enough damage that the whole roof

568
00:25:32,720 --> 00:25:34,600
Speaker 2: needs to be replaced, and so they're an impass and

569
00:25:34,640 --> 00:25:36,600
Speaker 2: so what you do then on your own dime, but

570
00:25:36,720 --> 00:25:38,920
Speaker 2: you got to hire a public adjuster who can help

571
00:25:39,080 --> 00:25:42,040
Speaker 2: mediate that. But oftentimes public adjusters can help you get

572
00:25:42,080 --> 00:25:45,000
Speaker 2: paid in a way that you advocating for yourself cannot.

573
00:25:45,200 --> 00:25:45,600
Speaker 1: That's true.

574
00:25:45,640 --> 00:25:47,480
Speaker 3: Yeah, And I like what you said too about considering

575
00:25:47,680 --> 00:25:50,720
Speaker 3: not even going through insurance if it's a minor enough incident.

576
00:25:50,760 --> 00:25:53,240
Speaker 3: I actually have a neighbor who this is actually before

577
00:25:53,240 --> 00:25:54,680
Speaker 3: all the storms, but it.

578
00:25:54,600 --> 00:25:54,760
Speaker 1: Was a.

579
00:25:56,320 --> 00:25:59,240
Speaker 3: Local storm and a tree went down damage like they're siding,

580
00:25:59,320 --> 00:26:01,680
Speaker 3: took out part of the fence, and I talked to

581
00:26:01,760 --> 00:26:04,440
Speaker 3: him like the very next day, and I was just like, hey,

582
00:26:04,560 --> 00:26:06,639
Speaker 3: actually doesn't look all that bad, huh. But he had

583
00:26:06,680 --> 00:26:09,360
Speaker 3: already reached out and already filed a claim. And I'm

584
00:26:09,400 --> 00:26:12,000
Speaker 3: looking at this as someone who schedules work at homes

585
00:26:12,040 --> 00:26:14,960
Speaker 3: fairly often, and I'm thinking, man, you could probably take

586
00:26:14,960 --> 00:26:16,840
Speaker 3: care of all of this for a few thousand dollars.

587
00:26:17,359 --> 00:26:21,000
Speaker 3: And he's already got the insurance company involved, which could

588
00:26:21,040 --> 00:26:23,200
Speaker 3: have a negative impact on his premiums.

589
00:26:23,320 --> 00:26:26,080
Speaker 2: Sit down on the road, my deductibles one thousand bucks.

590
00:26:26,119 --> 00:26:28,000
Speaker 2: This is going to cost three. I'm coming out two

591
00:26:28,040 --> 00:26:31,240
Speaker 2: grand in the green. Ultimately, that's that's not what happened.

592
00:26:31,280 --> 00:26:34,760
Speaker 3: You are perpetually and definitely even sometimes paying more in

593
00:26:34,800 --> 00:26:36,000
Speaker 3: premiums every single year.

594
00:26:36,040 --> 00:26:37,320
Speaker 2: That's going to go on your clue report when you

595
00:26:37,400 --> 00:26:38,919
Speaker 2: trying to switch insurance companies.

596
00:26:38,920 --> 00:26:40,920
Speaker 3: So that it happened, y'all. So it might be worth

597
00:26:40,920 --> 00:26:43,480
Speaker 3: crunching some numbers in that case. Also for the future,

598
00:26:44,000 --> 00:26:46,720
Speaker 3: for folks who have been impacted by these major storms,

599
00:26:46,800 --> 00:26:50,160
Speaker 3: check out floodsmart dot gov and that's where you can

600
00:26:50,359 --> 00:26:52,560
Speaker 3: determine your risk level, where you can shop for a

601
00:26:52,600 --> 00:26:54,760
Speaker 3: flood insurance policy if it turns out that you are

602
00:26:54,760 --> 00:26:56,639
Speaker 3: in need of one, and if you are, like the

603
00:26:56,760 --> 00:26:59,679
Speaker 3: vast majority of folks without coverage for flood damage, you're

604
00:26:59,680 --> 00:27:03,000
Speaker 3: probably need to get help from FEMA. So make sure

605
00:27:03,040 --> 00:27:06,199
Speaker 3: to apply for assistance over at FEMA dot gov or

606
00:27:06,400 --> 00:27:08,480
Speaker 3: link to where there is where you can apply for

607
00:27:08,520 --> 00:27:12,520
Speaker 3: housing assistance essentially, but then just document everything along the way,

608
00:27:12,560 --> 00:27:14,560
Speaker 3: because a lot of folks aren't going to necessarily want

609
00:27:14,600 --> 00:27:17,240
Speaker 3: to wait to get their life back on track to

610
00:27:17,359 --> 00:27:19,280
Speaker 3: hear like a lot of folk aren't gonna wait to

611
00:27:19,280 --> 00:27:23,399
Speaker 3: hear from a government organization who is probably completely up

612
00:27:23,440 --> 00:27:26,360
Speaker 3: to their neck in trying to help folks. But take pictures,

613
00:27:26,400 --> 00:27:29,240
Speaker 3: take video to highlight the extent of the damage, and

614
00:27:29,359 --> 00:27:32,320
Speaker 3: keep all your receipts. But we wish everyone out there

615
00:27:32,440 --> 00:27:34,160
Speaker 3: the best of luck, and we you know, last week

616
00:27:34,160 --> 00:27:37,359
Speaker 3: we talked about ways to donate if you are so inclined,

617
00:27:37,359 --> 00:27:39,399
Speaker 3: and we'll make sure to include those links to some

618
00:27:39,440 --> 00:27:42,959
Speaker 3: of those different vetted organizations again, but especially too when

619
00:27:43,000 --> 00:27:45,400
Speaker 3: it comes to FEMA. I think I saw only something

620
00:27:45,440 --> 00:27:47,640
Speaker 3: like three percent of folks who are denied, So folks

621
00:27:47,640 --> 00:27:50,040
Speaker 3: who apply for FEMA only something like three percent of

622
00:27:50,040 --> 00:27:53,320
Speaker 3: folks who get denied and are told no, actually appeal

623
00:27:53,840 --> 00:27:56,359
Speaker 3: And man, I know that there's a whole lot going on,

624
00:27:56,400 --> 00:27:59,119
Speaker 3: but when we're talking about a big ticket item like this,

625
00:27:59,320 --> 00:28:02,359
Speaker 3: like your home, this is something that's worth appealing. So

626
00:28:02,680 --> 00:28:05,439
Speaker 3: don't be like ninety seven percent of folks. We want

627
00:28:05,520 --> 00:28:07,200
Speaker 3: you to be a part of that three percent.

628
00:28:07,280 --> 00:28:10,200
Speaker 2: Yeah, this squeaky wheel gets the grease. And if you

629
00:28:10,240 --> 00:28:12,359
Speaker 2: get turned down or something, it could be just because

630
00:28:12,400 --> 00:28:15,280
Speaker 2: you didn't feel something out properly on the application. Like

631
00:28:15,320 --> 00:28:18,399
Speaker 2: there's all sorts of potential explanations. So if you're first,

632
00:28:18,720 --> 00:28:21,000
Speaker 2: the first word you get from FEMA is no, go,

633
00:28:21,840 --> 00:28:24,440
Speaker 2: don't go, like keep barking barking at that door.

634
00:28:24,520 --> 00:28:25,119
Speaker 1: That's right, all right.

635
00:28:25,359 --> 00:28:27,840
Speaker 2: In another sign, Matt, that money is still a taboo

636
00:28:27,840 --> 00:28:31,320
Speaker 2: topic in this country, Americans, as it turns out, a

637
00:28:31,400 --> 00:28:34,440
Speaker 2: recent survey shows would rather talk about politics than money.

638
00:28:34,480 --> 00:28:37,200
Speaker 2: They would rather talk about who they're voting for from

639
00:28:37,200 --> 00:28:39,760
Speaker 2: the heart of belief with their fellow human There's I

640
00:28:39,760 --> 00:28:42,240
Speaker 2: don't want to talk about that with almost anybody right now,

641
00:28:42,280 --> 00:28:46,280
Speaker 2: exactly close trusted friends who get me. But this is

642
00:28:46,280 --> 00:28:49,520
Speaker 2: according to a new US Bank survey. I wish we'd

643
00:28:49,520 --> 00:28:52,440
Speaker 2: talked about politics less and talk about money more. And

644
00:28:52,480 --> 00:28:55,040
Speaker 2: if we're able to accomplish one thing with this show,

645
00:28:55,720 --> 00:28:58,720
Speaker 2: it would hopefully be to prod people to not only

646
00:28:58,800 --> 00:29:00,800
Speaker 2: handle their own money better, but to feel like they

647
00:29:00,800 --> 00:29:03,480
Speaker 2: can talk about money more freely in their lives with

648
00:29:03,480 --> 00:29:05,320
Speaker 2: their friends and their family, not in some sort of

649
00:29:05,360 --> 00:29:08,000
Speaker 2: braggedocious way. Look at how I'm croshing it. I'm doing awesome.

650
00:29:08,320 --> 00:29:11,800
Speaker 2: I'm on money Gear seven, whatever it is. But it's

651
00:29:11,840 --> 00:29:14,040
Speaker 2: certainly not to be able to do that to make

652
00:29:14,080 --> 00:29:17,400
Speaker 2: yourself look awesome. But money, confusion, money shame are just

653
00:29:17,440 --> 00:29:21,120
Speaker 2: these powerful things. They hold people back, oftentimes from making progress,

654
00:29:21,120 --> 00:29:23,320
Speaker 2: and I think so much of that. The reason that

655
00:29:23,560 --> 00:29:25,680
Speaker 2: is the case is because we have made it a

656
00:29:25,760 --> 00:29:29,760
Speaker 2: topic that people are essentially not allowed to discuss. And

657
00:29:30,120 --> 00:29:32,480
Speaker 2: you know who better to start some of those combos

658
00:29:32,480 --> 00:29:34,480
Speaker 2: than people who listen to the show How to Money.

659
00:29:35,320 --> 00:29:36,760
Speaker 2: You don't need to know it all, You just need

660
00:29:36,800 --> 00:29:39,560
Speaker 2: to be willing to start a conversation and to allow

661
00:29:39,640 --> 00:29:41,680
Speaker 2: for a little bit of awkwardness in the beginning. Matter

662
00:29:41,760 --> 00:29:44,320
Speaker 2: You might start that conversation start feeling a little weird

663
00:29:44,480 --> 00:29:47,000
Speaker 2: and self conscious that you're doing it. But I think

664
00:29:47,040 --> 00:29:49,600
Speaker 2: there are ways to go about being a little more

665
00:29:49,640 --> 00:29:53,360
Speaker 2: open about this topic without freaking your friends out. And

666
00:29:53,440 --> 00:29:55,360
Speaker 2: I think the more we talk about it, the more

667
00:29:55,400 --> 00:29:58,360
Speaker 2: we normalize this as a topic of conversation, the better

668
00:29:58,400 --> 00:30:00,600
Speaker 2: off we're all going to be, because then I guarantee

669
00:30:00,640 --> 00:30:02,640
Speaker 2: your friends and your family have questions they don't know

670
00:30:02,680 --> 00:30:04,360
Speaker 2: what they're doing with their money, or if they do,

671
00:30:04,440 --> 00:30:06,120
Speaker 2: they love to talk about it too. They just feel

672
00:30:06,160 --> 00:30:10,440
Speaker 2: uncomfortable as well. So starts slow, starts small, But I

673
00:30:10,440 --> 00:30:12,480
Speaker 2: think having those conversations it's going to be way better

674
00:30:12,480 --> 00:30:14,880
Speaker 2: than talk about politics, talk about money instead of Thanksgiving

675
00:30:14,920 --> 00:30:15,440
Speaker 2: table this year?

676
00:30:15,480 --> 00:30:16,400
Speaker 1: Really agree?

677
00:30:16,480 --> 00:30:19,920
Speaker 3: Okay, So on the note of conversations, something that economists

678
00:30:20,040 --> 00:30:23,680
Speaker 3: have essentially stopped talking about. It's the possibility of a recession.

679
00:30:23,960 --> 00:30:27,120
Speaker 3: Goldman sacks they just reduced their projected likelihood of a

680
00:30:27,160 --> 00:30:31,040
Speaker 3: recession in the next year to fifteen percent. And Jully,

681
00:30:31,040 --> 00:30:33,160
Speaker 3: remember it wasn't all that long ago that I think

682
00:30:33,160 --> 00:30:35,400
Speaker 3: Bloomberg said that we had a one hundred percent chance

683
00:30:35,560 --> 00:30:36,920
Speaker 3: of experiencing a recession.

684
00:30:36,960 --> 00:30:39,160
Speaker 2: This was almost exactly two years ago, Matt. It was

685
00:30:39,160 --> 00:30:40,440
Speaker 2: October twenty twenty two.

686
00:30:40,520 --> 00:30:43,520
Speaker 3: Yes, the end of twenty two, and even early into

687
00:30:43,800 --> 00:30:45,880
Speaker 3: beginning of twenty three. It was like, oh, it's going

688
00:30:45,960 --> 00:30:47,840
Speaker 3: to happen. It's going to happen. When's it going to hit?

689
00:30:47,880 --> 00:30:50,880
Speaker 2: So much humility coming from Bloomberg, the one hundred percent

690
00:30:50,920 --> 00:30:52,560
Speaker 2: call that didn't come to pass.

691
00:30:52,440 --> 00:30:53,000
Speaker 1: It never hit.

692
00:30:53,600 --> 00:30:55,920
Speaker 3: Economists are now saying that everything's going to be fine

693
00:30:55,960 --> 00:31:00,080
Speaker 3: and dandy, there's no clouds on the horizon. And we

694
00:31:00,120 --> 00:31:02,520
Speaker 3: say that, like, I'm not poking fun at economists, I'm

695
00:31:02,520 --> 00:31:04,920
Speaker 3: not mad at them, but I do tend not to

696
00:31:04,960 --> 00:31:08,560
Speaker 3: trust these sorts of predictions because, like a one hand,

697
00:31:08,680 --> 00:31:11,520
Speaker 3: the economy, it certainly looks solid right now, markets at

698
00:31:11,520 --> 00:31:14,160
Speaker 3: all time highs is great. But I also wouldn't assume

699
00:31:14,600 --> 00:31:17,760
Speaker 3: that events out of our control couldn't negatively.

700
00:31:17,320 --> 00:31:19,880
Speaker 1: Impact the status quo. We would always.

701
00:31:19,560 --> 00:31:22,360
Speaker 3: Recommend for folks like basically, anytime there's good news, we

702
00:31:22,400 --> 00:31:24,840
Speaker 3: want you to think, hey, something bad could happen. And

703
00:31:24,880 --> 00:31:26,600
Speaker 3: when everyone is like freaking out and running for the

704
00:31:26,640 --> 00:31:28,280
Speaker 3: hills and saying that like the world's about to end,

705
00:31:28,640 --> 00:31:32,400
Speaker 3: look for opportunity because the herd mentality, I think oftentimes

706
00:31:32,400 --> 00:31:34,680
Speaker 3: works against our own ability to get ahead with our

707
00:31:34,680 --> 00:31:36,840
Speaker 3: personal finances. And so what that means for right now

708
00:31:36,880 --> 00:31:39,280
Speaker 3: for you practically speaking, is just to not get too

709
00:31:39,280 --> 00:31:41,520
Speaker 3: far over your skis. When it comes to your spending,

710
00:31:41,880 --> 00:31:44,040
Speaker 3: it means living on less than you make. It means

711
00:31:44,440 --> 00:31:47,600
Speaker 3: living within your means having a solid emergency fund in place,

712
00:31:47,640 --> 00:31:49,840
Speaker 3: having life insurance, all the things that we talk about

713
00:31:50,280 --> 00:31:52,000
Speaker 3: day in and day out here on the show. I

714
00:31:52,120 --> 00:31:54,760
Speaker 3: mentioned the stock market a second ago. It means not

715
00:31:54,800 --> 00:31:58,080
Speaker 3: getting overly excited that, oh my gosh, I'm wealthier than

716
00:31:58,080 --> 00:31:59,360
Speaker 3: I've ever been in my entire life.

717
00:31:59,680 --> 00:32:01,320
Speaker 1: Well for most people.

718
00:32:01,120 --> 00:32:03,800
Speaker 3: That's for like retired you, and it shouldn't have an

719
00:32:03,800 --> 00:32:05,960
Speaker 3: impact on how it is that you're spending money today. Yeah,

720
00:32:06,080 --> 00:32:08,440
Speaker 3: And so if you're tempted to check your balances, don't

721
00:32:08,440 --> 00:32:11,080
Speaker 3: do that. Just keep investing like you always have them.

722
00:32:11,240 --> 00:32:14,040
Speaker 3: And these predictors might be right. There might not be

723
00:32:14,080 --> 00:32:16,920
Speaker 3: a recession over the next incoming over the next year.

724
00:32:17,240 --> 00:32:17,760
Speaker 1: We don't know.

725
00:32:18,000 --> 00:32:20,120
Speaker 2: They don't know. And just like the Bloomberg people didn't

726
00:32:20,160 --> 00:32:22,600
Speaker 2: know two years ago because they were dead wrong. They

727
00:32:22,600 --> 00:32:24,680
Speaker 2: were almost the exact opposite.

728
00:32:24,720 --> 00:32:25,520
Speaker 1: Everybody was dead right.

729
00:32:25,760 --> 00:32:29,600
Speaker 2: Yes, So just yeah, don't believe the talking heads economists

730
00:32:29,640 --> 00:32:32,320
Speaker 2: have correctly predicted predicted like nine out of the last

731
00:32:32,320 --> 00:32:34,640
Speaker 2: two recessions. Matt, that is a common thing. And I

732
00:32:34,640 --> 00:32:36,840
Speaker 2: also want to say this too, that despite whether or

733
00:32:36,840 --> 00:32:39,959
Speaker 2: not we have a macro recession that kind of like

734
00:32:40,400 --> 00:32:43,680
Speaker 2: impacts our country as a whole, there's always the possibility

735
00:32:43,680 --> 00:32:45,920
Speaker 2: for a micro recession, like a personal recession in your

736
00:32:45,960 --> 00:32:49,440
Speaker 2: own way, whether it's just your specific industry, your employer,

737
00:32:49,960 --> 00:32:52,720
Speaker 2: something that happens in your own family. So like kind

738
00:32:52,720 --> 00:32:55,880
Speaker 2: of what you're talking to about, personal preparedness that matters.

739
00:32:55,960 --> 00:32:56,760
Speaker 1: That's what's all about.

740
00:32:56,840 --> 00:32:58,560
Speaker 2: Yeah, and you might see, oh, things are rosy with

741
00:32:58,600 --> 00:33:00,760
Speaker 2: the economy, but actually things aren't great in my life

742
00:33:00,840 --> 00:33:04,040
Speaker 2: right now. We want you to be prepared for that eventuality,

743
00:33:04,080 --> 00:33:07,640
Speaker 2: despite what the goons at Golden Sacks or Bloomberger are saying.

744
00:33:07,800 --> 00:33:08,800
Speaker 1: That's right, all.

745
00:33:08,760 --> 00:33:11,120
Speaker 3: Right, Well, we hope everyone has a great weekend, Hug

746
00:33:11,160 --> 00:33:13,280
Speaker 3: the ones you love, and we will see everyone back

747
00:33:13,280 --> 00:33:15,880
Speaker 3: here on Monday. You can find links up on our

748
00:33:15,920 --> 00:33:17,880
Speaker 3: website at howtomoney dot com.

749
00:33:17,960 --> 00:33:18,640
Speaker 1: That's why we've.

750
00:33:18,520 --> 00:33:21,120
Speaker 3: Got all the different resources for you and your personal

751
00:33:21,160 --> 00:33:24,000
Speaker 3: finance journeys, so many resources. Man, But Joe, I think

752
00:33:24,040 --> 00:33:26,040
Speaker 3: it's gonna be it for this episode. So until next time,

753
00:33:26,160 --> 00:33:28,440
Speaker 3: best Friends Out and best Friends Out