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

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Speaker 1: and today we're talking about underwater autos, freelancing for the win,

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Speaker 1: and E fund idiocy.

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Speaker 2: E fund idiocy.

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Speaker 3: That will most likely be our ludicrous headline of the

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Speaker 3: week that we'll get to today.

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Speaker 1: Joel, We're gonna take some other financial influencer to task

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Speaker 1: on that one.

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Speaker 3: Indeed, Oh, we don't have anything here about the government shutdown.

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Speaker 3: Maybe we should say something about that. How at least

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Speaker 3: at the time of this recording, we are, I guess

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Speaker 3: on day three of the government shut down. Toilets are

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Speaker 3: perhaps overflowing in national parks a terrible site to or

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Speaker 3: the toilets are closed completely. I went by our National

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Speaker 3: Battlefield Park the other day to go for a run.

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Speaker 3: Do they mark the doors were closed? Nobody at home.

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Speaker 3: I had to pee, so said to go on, I

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Speaker 3: should have go on the trail like I mean, don't

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Speaker 3: don't wrap me up. You should be doing that anyway, right,

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Speaker 3: you come on, you're out like out there in the

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Speaker 3: middle of the woods. It's not like you're at some

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Speaker 3: highly congested You've got to do it very popular. You

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Speaker 3: got to do it in an unpopulated spot.

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Speaker 1: Do what you gotta do.

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Speaker 3: Yeah, but I can't imagine this is going to stretch

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Speaker 3: on for for.

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Speaker 1: All that I hope not. Yeah, we have listeners and

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Speaker 1: friends who are are impacted by this, and we're gonna

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Speaker 1: talk about emergency funds later on, and I don't just

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Speaker 1: makes you take it. Two things you can do about this.

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Speaker 2: One is the case for an emergency fund.

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Speaker 1: Yeah, yeah, I mean, the more money you have in savings,

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Speaker 1: the there's still the psychological impact and the the maybe

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Speaker 1: frustration right with the fact that it comes to this,

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Speaker 1: and that that the looming government shutdown threat is seems

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Speaker 1: like it's perpetually upon us. It's not often we get

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Speaker 1: to this point in the process, but sure my heart

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Speaker 1: goes out to all you folks out there who are having.

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Speaker 3: Folks who are impacted, who are not getting paid, who

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Speaker 3: are furloughed and still expected to come to work.

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Speaker 1: Yeah.

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Speaker 3: You know, I said, I don't think it's going to

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Speaker 3: stretch on, but it might because of the fact that

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Speaker 3: folks are taking they're using this, you know, they're trying

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Speaker 3: to use this as like a political bludgeon.

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Speaker 2: It makes me think.

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Speaker 3: Of so have you have you heard of the economic problem?

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Speaker 3: The chess piece fallacy.

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Speaker 1: It basically.

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Speaker 3: Adam Smith I think originally, but then Thomas sol popularized it.

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Speaker 3: But it talks about how if you're a policymaker, you

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Speaker 3: think that like, oh well, we can just try this out,

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Speaker 3: we can experiment, maybe we'll end up breaking things and

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Speaker 3: we'll learn from that, which I understand when you are

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Speaker 3: talking about like, well, in this case, so a chess piece,

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Speaker 3: you're essentially the mastermind and you're moving the pieces around

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Speaker 3: and you're playing this very elaborate game. But in this case,

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Speaker 3: we're not talking about a game with no stakes, like

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Speaker 3: we are talking about individuals' lives, like people's livelihoods, and

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Speaker 3: that's when people start to revolt. That's when people get

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Speaker 3: upset if they have.

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Speaker 1: The misrent payment or afford to go on the trip,

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Speaker 1: that they even just like putting food on the table.

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Speaker 3: It has so it has all these unintended consequences that

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Speaker 3: when you discount how it impacts individuals lives, there's a

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Speaker 3: problem there essentially. So it also makes me think about

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Speaker 3: like when when Elon came in and bought bought Twitter

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Speaker 3: slash the workforce broke code and like that is a

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Speaker 3: very maybe it shouldn't be a chess piece fallacy. It

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Speaker 3: should be like a programmer fallacy, because that's how programmers think.

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Speaker 3: That's what I've been told. I'm not a program myself.

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Speaker 3: But you go in, you break things, you try things out,

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Speaker 3: and then you just put it back to get it

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Speaker 3: back to working. But you can't necessarily. It's a lot

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Speaker 3: hard to do that with individuals lives again, when people

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Speaker 3: are being impacted in a significant way for some individuals

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Speaker 3: out there.

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Speaker 1: Agreed, All right, Vosh, we'll get to the Friday flight.

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Speaker 1: Let's let's do it. Sampling of stories we found interesting

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Speaker 1: this week. Let's start off talking about streaming. Streaming price

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Speaker 1: hikes are of course coming down the pike with regularity.

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Speaker 2: Now.

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Speaker 1: I think Apple TV Plus is that what they call theirs, Matt.

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Speaker 1: I think they've had a price hike every year for

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Speaker 1: the last three years, which is interesting because I don't

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Speaker 1: feel like they've got a lot of stuff for you

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Speaker 1: to watch on it, like they've got the best stuff?

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Speaker 2: Do they? Severance?

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Speaker 1: Okay, Severance was one. I still haven't seen that one.

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Speaker 1: You've told me it's so good, it's so good. It

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Speaker 1: just feels like they have so little uh for you

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Speaker 1: to interest me.

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Speaker 3: But if it really counts the stuff that they do

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Speaker 3: put out there and does is that enough to win

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Speaker 3: you over?

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Speaker 1: Yeah, that's what That's why I feel like HBO has

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Speaker 1: been so good at is Yes, exactly.

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Speaker 3: I think that's the model that Apple's trying to trying

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Speaker 3: to go with, although I will say at the end

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Speaker 3: of the last season it does lead some questions where

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Speaker 3: you're just like, oh, come on, I don't want to

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Speaker 3: put any spoilers. One.

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Speaker 1: I'm guessing where they go, and I'm guessing you've canceled

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Speaker 1: Apple TV Plus at this point because you're done with

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Speaker 1: severance and you'll sign up again later. Of course, So

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Speaker 1: the the cheap prices of early streaming days, they're just

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Speaker 1: in the rear view mirror completely at this point right

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Speaker 1: where you.

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Speaker 3: Can just keep it around even when the season's over.

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Speaker 3: You can, but like you way more than you need to.

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Speaker 1: And so Disney just notified subscribers that they're going to

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Speaker 1: be ramping up the prices of Disney Plus Hulu plans,

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Speaker 1: and uh, the price acts are just going to keep coming.

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Speaker 1: Why are they going to keep coming? Well, it's because

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Speaker 1: consumers aren't really changing their habits. They're not canceling in

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Speaker 1: the numbers that are impacting the streaming services to a

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Speaker 1: meaningful degree. There's this new credit Karma survey and it

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Speaker 1: found that streaming is at the very top of non

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Speaker 1: essential priorities in people's budgets in their lives. So it's

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Speaker 1: this really sticky service that people aren't willing to do without.

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Speaker 1: The streaming companies know this, and they're taking full advantage.

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Speaker 1: So I know that price hex can be frustrating. People

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Speaker 1: get that email and they're like, again, really, you're going

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Speaker 1: to up the price and you haven't really added much

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Speaker 1: more good stuff for me to check out, So but

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Speaker 1: I don't know, they just stay with it anyway. People

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Speaker 1: take this lying down it seems. I think there are

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Speaker 1: some pros and cons of being out of the cable

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Speaker 1: TV era. The early streaming days, though Matt, seemed to

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Speaker 1: be the best of times, and now we're entering this

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Speaker 1: period of time where streaming is more competitive, just as

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Speaker 1: bad as cable in so many ways. The only way

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Speaker 1: we as individuals can get the best get the most

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Speaker 1: bang for our buck is to I think, sign up

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Speaker 1: for services when we're going to use them, cancel when

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Speaker 1: we're not, and just be more thoughtful in general about

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Speaker 1: what we're subscribing to and when.

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Speaker 3: Totally yes, And actually I just said that it's more competitive,

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Speaker 3: it's actually less competitive because when it was more competitive,

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Speaker 3: when Netflix was the big player on the scene when

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Speaker 3: they do you remember back when they won their first

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Speaker 3: Emmy or Golden Globe or I don't know, it was

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Speaker 3: just a massive deal, like they swept the awards that year.

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Speaker 3: It's like, oh, wow, they are a legitimate studio.

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Speaker 1: They're on the scene.

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Speaker 3: Yes, yeah, And so back in those days when there

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Speaker 3: was more competition, I think all of these streamers, well

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Speaker 3: they were willing to offer their services for a lot

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Speaker 3: less as they're trying to gobble up market share. But

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Speaker 3: it's less competitive now and they're all kind of sitting back,

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Speaker 3: they're getting comfortable. They're trying to increase that profit share,

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Speaker 3: increase those margins.

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Speaker 2: But yeah, I think.

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Speaker 3: So we just canceled Disney Disney Plus, which is was

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Speaker 3: kind of a mainstay for us because we wanted to

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Speaker 3: watch something on Netflix, and so I was what I said,

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Speaker 3: was like, Hey, what we're going to do here, We're

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Speaker 3: going to implement the classic one in, one out, Like though,

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Speaker 3: if you're trying to manage your closet, like manage your

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Speaker 3: wardrobe instead of just letting them proliferate. Yeah, well, so

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Speaker 3: you kind of have to do that with your closet,

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Speaker 3: right because you are literally going to run out of space.

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Speaker 3: I think that's one of the one of the benefits

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Speaker 3: of doing that, not just letting it get get so overcrowded.

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Speaker 3: But when it comes to these digital streaming services, these

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Speaker 3: digital products, what is it cluttering up?

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Speaker 2: Yeah? Nothing, you just continue to yes.

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Speaker 3: Yeah, And so you were just you were out the

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Speaker 3: money and you don't realize how many of these that

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Speaker 3: you've accumulated. There's no physical, tangible response mechanism that's telling you, oh,

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Speaker 3: you have too many of these. Typically, when it comes

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Speaker 3: to digital stuff like the more options we have, the better.

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Speaker 3: But in this case, uh yeah, I guess you could

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Speaker 3: have them all, but it's going to cost you a ton.

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Speaker 3: You truly are back into the cable bundling days when

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Speaker 3: you were paying for everything. But that's what's so beautiful

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Speaker 3: about streaming is that you have the ability to very

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Speaker 3: easily drop one of the streamers after a couple that

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Speaker 3: once that show's over.

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Speaker 1: Well, Peloton just announced in the middle of the week

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Speaker 1: as well that they're increasing their prices for folks who

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Speaker 1: have a bike and they like to work out on

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Speaker 1: it or whatever. And I think I talked recently on

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Speaker 1: the show not too long ago about buying a used

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Speaker 1: peloton for my wife who likes to jump on it

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Speaker 1: and do her thing. You get her spin on. Yeah,

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Speaker 1: but they're going from forty five bucks a month to

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Speaker 1: fifty bucks a month and five bucks not a biggie,

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Speaker 1: that's what Yeah, that's what you say. But like, I'm

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Speaker 1: not a frog in the boiling water. At some point,

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Speaker 1: we're jumping out, and she was like, she came to

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Speaker 1: me before I even said anything, because I'm trying not

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Speaker 1: to cause marital strife. And she was like, man, I'm

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Speaker 1: so mad that they raised the price. I think I'm

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Speaker 1: going to cancel for a while. And I was like,

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Speaker 1: because she's like, I'm never using it. She's a member

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Speaker 1: of another gym as well, and it's like the price

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Speaker 1: per use just went up. I'm not using it as

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Speaker 1: much as i'd like to. So they all hop on

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Speaker 1: still use it but not pay for the service. I'm like,

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Speaker 1: all right, fine with me. So what's the benefit of

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Speaker 1: the service. The fact that you've got like the screen

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Speaker 1: and you got somebody encouraging you. That's music playing the

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Speaker 1: actual class and the metrics and all that stuff.

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Speaker 3: There's got to be some online free YouTube channels that

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Speaker 3: you can pull up where you're listening to this very

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Speaker 3: similar kind of deal having to pay for.

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Speaker 1: It, right, Well, yeah, there's ads. Yeah. And then like

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Speaker 1: there was a we were doing some of the stretching

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Speaker 1: classes the peloton, but I was like, I've got some

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Speaker 1: great YouTube videos that are one hundred percent free. You

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Speaker 1: don't need I mean, they're not live classes even they're

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Speaker 1: like pre recorded. We were just doing the same one

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Speaker 1: over and over. Yeah.

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Speaker 2: Well that's the thing.

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Speaker 3: Like, now you've learned how to do it and you've

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Speaker 3: internalized it, you don't need someone to guide you through

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Speaker 3: that anymore. Like you are your own stretching Shirpa. Let's

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Speaker 3: talk about owning a vehicle, because trading in a car

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Speaker 3: it's fraught with so much financial peril. First of all,

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Speaker 3: when you trade in instead of selling that car outright

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Speaker 3: to an individual, you risk getting a lot less than

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Speaker 3: it's worth listing it yourself. Putting in a bit more,

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Speaker 3: a little bit more effort, taking the pictures, scheduling the meetups,

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Speaker 3: it could net you thousands of additional dollars.

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Speaker 1: Doing the hassle thing. It's worth it. It takes a

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Speaker 1: little more work.

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Speaker 3: But one of the worst financial moves though, that you

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Speaker 3: can make is to upgrade your ride and then trade

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Speaker 3: in a car that you are underwater on. But Americans

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Speaker 3: are doing it like it's their job. More than a

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Speaker 3: quarter of trade ins today are being done by folks

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Speaker 3: with negative equity who owe more on that car than

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Speaker 3: it's actually worth, often by like many thousands of dollars,

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Speaker 3: which is man, that's very frightening.

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Speaker 1: I think the average underwater amount is over six thousand dollars.

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Speaker 1: That's a lot of money.

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Speaker 2: Man.

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Speaker 1: I was talking to somebody this week and they had

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Speaker 1: a friend who traded in a car that was like

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Speaker 1: thirty grand underwater, which that's insane. Punch me in the face.

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Speaker 1: It's all your stuff like that. It makes me so sad.

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Speaker 3: It also isn't all that surprising given the price of vehicles, right, Like,

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Speaker 3: you buy a brand new eighty thousand dollars nice you know,

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Speaker 3: luxury suv, it's probably not going to take that long

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Speaker 3: for you. If you have these payments that are stretched

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Speaker 3: out in two three years. Like there's a very good

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Speaker 3: chance that you're going to owe more on that.

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Speaker 1: Thing, yeah, than what it's actually worth. You're exactly right,

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Speaker 1: it's the cost of the car. But it's also, like

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Speaker 1: you just the length of the car loan itself, and

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Speaker 1: so you are making such a small dent in those

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Speaker 1: first couple of years on the actual I mean, you're

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Speaker 1: paying down the principle, but because you've stretched it out

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Speaker 1: from like let's say forty eight months four years to

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Speaker 1: something like eighty four months, it's just taking so much longer.

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Speaker 1: And if in three years time you get tired of

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Speaker 1: that car and you're like, oh, it's not for me

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Speaker 1: to upgrade, well, you've paid so much less of that car,

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Speaker 1: and so you are of course going to have negative equity,

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Speaker 1: and then you roll it into the next loan and

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Speaker 1: you've got a giant loan. You're way upside down on

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Speaker 1: the next car, only compounding the problem making it worse.

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Speaker 3: So yeah, personally, I'm going to say no car loan,

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Speaker 3: but I know some folks are. They're not in the

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Speaker 3: situation to where they've got the money on you, right,

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Speaker 3: I should be able to cover that.

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Speaker 1: You and I were typically fans of that right only

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Speaker 1: buy a car if you have the cash or save

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Speaker 1: up longer. And if you don't agree with us or yeah,

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Speaker 1: you are in that position, just make sure you don't

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Speaker 1: take out a loan that's longer than forty eight months

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Speaker 1: ideally forty two or less. Cause yeah, like driving a

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Speaker 1: car with negative equity, it's not ideal, but it's not

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Speaker 1: the worst thing in the world as long as you

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Speaker 1: can hold on to it. If you really want to

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Speaker 1: upgrade your ride, but you just aren't in the financial

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Speaker 1: position to do that, truly, wait longer. That is the

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Speaker 1: solution here. And by the way, matt I See Cars

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Speaker 1: released its list of the vehicles that are most likely

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Speaker 1: to last two hundred and fifty thousand miles. That's not

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Speaker 1: sure that most people want to go there, I do.

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Speaker 1: I'm probably not doing that with both the cars that

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Speaker 1: we currently own. I'm getting so close to two hundred

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Speaker 1: k with the with the Honda, Yeah, I work, you're

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Speaker 1: beyond us. I think we're at like one eighty and

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Speaker 1: my other cars like one seventy one, but we're like

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Speaker 1: one ninety two. Yeah.

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Speaker 3: Hey, like I don't want to put the miles on,

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Speaker 3: but every time it gets closer, it just it makes

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Speaker 3: me so happy, it's inevitable, it's gonna happen. Okay, But

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Speaker 3: you know, you know the brand that was number one

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Speaker 3: on that list, it's oh yeah, yea. You don't even

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Speaker 3: have to like read it like a long shot.

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Speaker 1: Yeah, yeah. This is like they said that Toyotas are

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Speaker 1: what three point seven times more likely to last two

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Speaker 1: hundred fifty thousand miles than any other car manufacturer. Lexis

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Speaker 1: and Honda were right up there too, but it's like

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Speaker 1: Toyota's were like by a long shot, crushing. Yeah.

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Speaker 3: Basically, Toyota, Toyota, and Lexis are like one and two

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Speaker 3: then Handa and makes yeah, and Hannah makes accurate, So

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Speaker 3: they're basically first, Toyota's first, Hanna's second. You know what

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Speaker 3: I thought was so fascinating that was basically next on

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Speaker 3: the list Tesla, which got me thinking, like, it makes

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Speaker 3: so much sense given the fact that there are so

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Speaker 3: many fewer moving parts. It would not surprise me if

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Speaker 3: over the years we see the share of Tesla's that

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Speaker 3: are on the road, that you are able to keep

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Speaker 3: those around for much longer periods of time because of

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Speaker 3: the fact that it's just an electric An electric motor

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Speaker 3: is a very efficient durable like mechanical device, and yeah,

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Speaker 3: it makes all the makes all the sense in the world.

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Speaker 3: I thought it was very humorous to see that the

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Speaker 3: cars that had a zero percent chance two hundred and

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Speaker 3: fifty k. It's not surprising. It was like Jaguar Mini Cooper,

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Speaker 3: which that one actually kind of surprised me. I thought

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Speaker 3: menis were a little more. They just seem to have

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Speaker 3: such a fan base.

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Speaker 1: Yeah, you know, but I don't think it's because they're reliable.

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Speaker 1: I guess not. Yeah.

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Speaker 3: And when I say Jaguar Mini and like Maserati or

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Speaker 3: something like that, okay, yeah, which you've got a couple

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Speaker 3: of those.

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Speaker 1: Yeah, yeah, a few of those.

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Speaker 3: I know, Hey, I'm only going to hit fifty thousand

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Speaker 3: on those bad right exactly.

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Speaker 1: So I guess when it comes down to it, that's

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Speaker 1: one of the key ingredients too, in being able to

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Speaker 1: hold onto your car longer is to get something that's reliable.

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Speaker 1: And you can go in to consumer reports and you

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Speaker 1: can dig in and see what makes and models in

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Speaker 1: years have like the highest reliability ratings, or you can

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Speaker 1: even just take this generic ICEE car survey and be like,

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Speaker 1: I guess I'm getting a Toyota Rohanda.

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Speaker 3: Yeah, car reliability matters, dude. Let's talk about car insurance.

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Speaker 3: So we obviously talk a lot about saving money, but

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Speaker 3: getting the lowest possible price, it's not always the goal.

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Speaker 3: We talk about frugal versus cheap moves when it comes

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Speaker 3: to car insurance. We want to get value for the

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Speaker 3: money that we're paying, and that is particularly true here.

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Speaker 3: It doesn't matter how much you save on premiums if

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Speaker 3: your insurance company actually won't pay your claim, or if

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Speaker 3: they're impossible to deal with, if you can't get them

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Speaker 3: to respond to any calls consumer reports. They released a

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Speaker 3: list of insurance companies who have the best record of

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Speaker 3: paying claims and two the were ones that we've talked

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Speaker 3: about on the show before. Amika USAA. There's a new

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Speaker 3: one that I never heard before. Erie er I E yeah,

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Speaker 3: and evidently they are pretty tops as well. Only downside,

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Speaker 3: they're only in like ten states in the country. But

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Speaker 3: if you have access to Erie, check them out, but

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Speaker 3: otherwise shop around get quotes, but specifically from these insurance

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Speaker 3: companies that tend to rate more highly.

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Speaker 1: This is like an interesting one because you and I

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Speaker 1: we talked about shopping on insurance to save money, and

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Speaker 1: we think there's a lot of wisdom to that, but

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Speaker 1: you just have to be careful because there are kind

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Speaker 1: of like fly by night insurance companies, and then there

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Speaker 1: are also It's kind of like we answered a question

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Speaker 1: recently about renting from one of those super cheap car

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Speaker 1: rental companies, you po car and you have to be

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Speaker 1: careful in that, and the same thing is true with

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Speaker 1: getting that insurance. It's like, it's best to get that

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Speaker 1: policy from a company who's reliably pays out claims. That's

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Speaker 1: kind of what Consumer Reports was getting out here. They

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Speaker 1: rank them in order, and it's worth taking a look

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Speaker 1: and seeing where your insurance company falls because you might

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Speaker 1: you might be like, yeah, they're saving me a little

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Speaker 1: bit of money, but if I do get into a

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Speaker 1: situation where I have to file a claim, they're going

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Speaker 1: to like put me through the ringer and that'll be

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Speaker 1: super frustrating.

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Speaker 3: Yep, car insurance seems like an industry a market that

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Speaker 3: needs disrupting. Let's talk about jobs, because the market's been

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Speaker 3: getting worse and worse sadly. But we've got one piece

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Speaker 3: of advice that might help folks out there who might

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Speaker 3: be looking for another job or you know, like whether

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Speaker 3: you are out of work or maybe you're you're still

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Speaker 3: employed and you're looking for a new job. And that

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Speaker 3: is that freelance and contract positions might make more sense

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Speaker 3: than a traditional W two full time employ like employment

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Speaker 3: job that you might be used to. And this is

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Speaker 3: for a number of reasons. First of all, it might

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Speaker 3: be easier to get in the door hiring someone on

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Speaker 3: a contract basis. It can be easier for employers. I

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Speaker 3: think this is especially true given the uncertainty that businesses

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Speaker 3: have seen with Terris right, Like, that's one of the

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Speaker 3: downsides is when you don't if you can't look ahead

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Speaker 3: to the future and forecast what the industry is going

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Speaker 3: to look like, you're less prone to make investments in

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Speaker 3: your business, which one of the biggest investments you can

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Speaker 3: make is human capital.

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Speaker 1: Of those employers are saying, hey, we need to hire somebody.

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Speaker 1: We're not off from the full time furlough on new

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Speaker 1: hires a contract position because it's just it's a less

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Speaker 1: embedded relationship.

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Speaker 3: Yeah, so I totally get it from the employer's standpoint,

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Speaker 3: but as an employee, for you out there looking to

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Speaker 3: get a new job, it can often lead to that

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Speaker 3: full time job, that full time work there in the future,

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Speaker 3: you're getting your foot in the door, you're making these relationships.

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Speaker 1: This is all clutch, and you.

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Speaker 3: Can also potentially start at a higher hourly rate. A

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Speaker 3: lot of times that's because you're not getting the other benefits,

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Speaker 3: so they are trying to offset, they're trying to compensate

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Speaker 3: a little bit for the fact that you're not getting

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Speaker 3: some of these additional benefits. Yeah, we're talking health insurance

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Speaker 3: as well. That's probably one of the biggest ones. It's

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Speaker 3: not cheap. That being said, your increased pay, that higher

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Speaker 3: hourly rate might be worth it. So it makes me

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Speaker 3: think something to consider one.

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Speaker 1: Of our friends who got laid off and then he

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Speaker 1: ended up getting contract work with the company that just

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Speaker 1: let him go, and because of that, his hourly rate

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Speaker 1: went up meaningfully because he doesn't have access to those benefits.

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Speaker 1: And so for a lot of folks, let's say, especially

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Speaker 1: if you have health insurance, you can get coverage through

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Speaker 1: a partner or something like that, maybe it's the best

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Speaker 1: of both worlds. But I think you're right, Matt, just

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Speaker 1: for some people maybe considering more some of those freelance

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Speaker 1: and contract positions instead of just looking for that full

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Speaker 1: time benefits included. A job might make sense, especially right now,

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Speaker 1: but contract work is different than signing up for a

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Speaker 1: side hustle. You and I we have discussed our feelings

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Speaker 1: about side hustle. Don't remember the episode number, but we

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Speaker 1: talked about kind of the nefarious what do we call it?

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Speaker 2: Some of them with that episode.

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Speaker 1: Yeah, but the side hustles can be nefarious, and part

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Speaker 1: of the reason is because, yeah, they can be a

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Speaker 1: great way to make cash quickly, but they're not typically

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Speaker 1: a great long term solution for people's finances. Another problem, though,

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Speaker 1: that we're seeing is a rise in side hustle scams,

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Speaker 1: and we'll link to a great Yahoo Finance post about

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Speaker 1: the red flags to watch out for. But if you

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Speaker 1: are in a pinch job wise, which more and more

436
00:19:30,600 --> 00:19:33,719
Speaker 1: people are finding themselves in right now, be careful before

437
00:19:33,840 --> 00:19:37,320
Speaker 1: taking a gig based on a text that you receive

438
00:19:37,480 --> 00:19:40,000
Speaker 1: or a social media post that you saw, and don't

439
00:19:40,040 --> 00:19:42,800
Speaker 1: ever sign up for a side hustle that comes with

440
00:19:42,880 --> 00:19:46,159
Speaker 1: upfront costs. That is a massive red flag right to

441
00:19:46,160 --> 00:19:48,840
Speaker 1: get scams. Oh yeah, hey, we'd love to give you

442
00:19:48,880 --> 00:19:51,160
Speaker 1: this job, but you have to pay some money for

443
00:19:51,240 --> 00:19:53,720
Speaker 1: training or for equipment that you need in order to

444
00:19:53,720 --> 00:19:55,760
Speaker 1: be able to do this job from your home. Even

445
00:19:55,800 --> 00:19:57,760
Speaker 1: if they offer to send a check to cover those costs,

446
00:19:57,760 --> 00:20:00,240
Speaker 1: because the check, of course turns out to be frau vigil,

447
00:20:00,680 --> 00:20:03,320
Speaker 1: you're out the money. And it just seems like we're

448
00:20:03,320 --> 00:20:07,080
Speaker 1: seeing a rise inside hustle scams right now. So and

449
00:20:07,320 --> 00:20:10,720
Speaker 1: especially with people looking for employment and some folks getting desperate,

450
00:20:11,080 --> 00:20:12,000
Speaker 1: be on the lookout for that.

451
00:20:12,200 --> 00:20:12,440
Speaker 2: Yeah.

452
00:20:12,560 --> 00:20:14,640
Speaker 3: Even I saw another story, I think it was last

453
00:20:14,640 --> 00:20:17,840
Speaker 3: week where a lady was scammed via a job that

454
00:20:18,000 --> 00:20:20,479
Speaker 3: she was hired for, like over on LinkedIn. So like

455
00:20:20,520 --> 00:20:23,119
Speaker 3: it's not just the air and email that shows up

456
00:20:23,160 --> 00:20:25,960
Speaker 3: out of nowhere, but also somewhere that you feel like.

457
00:20:26,040 --> 00:20:28,280
Speaker 2: It feels like one of the brighter.

458
00:20:28,040 --> 00:20:31,120
Speaker 3: Sunnier corners of the Internet, like a trusted site, and

459
00:20:31,240 --> 00:20:34,360
Speaker 3: you can still find scammy postings there. Yeah, but we've

460
00:20:34,359 --> 00:20:35,840
Speaker 3: got more to get to. We're going to talk about

461
00:20:35,840 --> 00:20:39,160
Speaker 3: the cost of drugs and plenty more on today's Friday flight.

462
00:20:39,400 --> 00:20:48,680
Speaker 3: But first some ads, thanks.

463
00:20:48,480 --> 00:20:50,760
Speaker 1: For sticking with us on this Friday flight. We've got

464
00:20:50,760 --> 00:20:53,280
Speaker 1: more to get to. We are going to talk about drugs, specifically,

465
00:20:54,000 --> 00:20:56,160
Speaker 1: not good our ex Matt, but Trump, our ex we'll

466
00:20:56,160 --> 00:20:59,479
Speaker 1: talk about that. It's a real thing. It's happening. Well,

467
00:20:59,480 --> 00:21:01,520
Speaker 1: the first, let's to the ludacrous headline of the week.

468
00:21:01,560 --> 00:21:04,840
Speaker 1: This one comes from Yahoo Finance and it reads Grant

469
00:21:04,880 --> 00:21:08,440
Speaker 1: Cardon calls the concept of emergency savings a bank myth.

470
00:21:09,119 --> 00:21:11,800
Speaker 1: And I'm not sure if everyone listening is familiar with

471
00:21:11,840 --> 00:21:14,960
Speaker 1: this real estate influencer, Grant Cardon. He's kind of a

472
00:21:15,200 --> 00:21:17,359
Speaker 1: brash fella. I don't know much.

473
00:21:17,240 --> 00:21:20,080
Speaker 3: About I know the name, but was he on TV?

474
00:21:20,359 --> 00:21:21,320
Speaker 3: Did he have like a TV show?

475
00:21:21,440 --> 00:21:23,280
Speaker 1: I don't even know. Okay, I think maybe, but I

476
00:21:23,760 --> 00:21:26,440
Speaker 1: just know that, like so he's just there on lander webs. Yeah,

477
00:21:26,480 --> 00:21:29,719
Speaker 1: he's one of the biggest influencers in the real estate space,

478
00:21:29,800 --> 00:21:32,960
Speaker 1: and a lot of what he says doesn't really jibe

479
00:21:32,960 --> 00:21:35,320
Speaker 1: with me, probably because we have different goals but also

480
00:21:35,480 --> 00:21:39,720
Speaker 1: different philosophies. And sometimes this is just the case. Also

481
00:21:39,840 --> 00:21:42,320
Speaker 1: in people who are super duper into real estate, they

482
00:21:42,320 --> 00:21:44,359
Speaker 1: can just be tough to listen to because they think

483
00:21:44,760 --> 00:21:48,040
Speaker 1: that real estate is the answer to every single problem.

484
00:21:48,160 --> 00:21:50,000
Speaker 1: And this guy in particular, it's kind of hard for

485
00:21:50,160 --> 00:21:54,520
Speaker 1: me the stomach, But they often real estate people. You

486
00:21:54,560 --> 00:21:57,200
Speaker 1: and I are real estate investors. Map but that's only

487
00:21:57,359 --> 00:22:00,000
Speaker 1: a part of what we do. Or real estate light, Yeah,

488
00:22:00,119 --> 00:22:02,680
Speaker 1: real estate light and so. But a lot of people

489
00:22:02,720 --> 00:22:04,600
Speaker 1: who go heavy into that space they basically think that,

490
00:22:04,640 --> 00:22:07,680
Speaker 1: you know, basic personal finance knowledge and hygiene aren't really

491
00:22:07,760 --> 00:22:10,080
Speaker 1: that important. Real estate's going to solve all the problems.

492
00:22:10,320 --> 00:22:13,479
Speaker 1: And Grant Cardon's premise is that saving money is a

493
00:22:13,480 --> 00:22:16,320
Speaker 1: trick the banks are playing on us, and that going

494
00:22:16,359 --> 00:22:19,040
Speaker 1: to work, he says, is the key to getting by

495
00:22:19,720 --> 00:22:24,359
Speaker 1: if stuff hits the fan. That's clearly what about if

496
00:22:24,359 --> 00:22:26,359
Speaker 1: you can't work, I know, right, yeah, what if you

497
00:22:26,359 --> 00:22:27,080
Speaker 1: get injured or what?

498
00:22:27,400 --> 00:22:30,520
Speaker 3: Sometimes that's why you need an emergency fund, Why you

499
00:22:30,560 --> 00:22:31,440
Speaker 3: need some cash in the bank.

500
00:22:31,520 --> 00:22:32,320
Speaker 1: No, that's good.

501
00:22:32,359 --> 00:22:34,080
Speaker 3: I mean you can always just like turn like turn

502
00:22:34,160 --> 00:22:36,639
Speaker 3: on the you know, like the works bigot.

503
00:22:36,280 --> 00:22:39,600
Speaker 1: And receive cash. It seems kind of ludicrous that he

504
00:22:39,640 --> 00:22:42,159
Speaker 1: would say this, especially given all the studies that have

505
00:22:42,240 --> 00:22:46,199
Speaker 1: been done about the mental benefit and the real personal

506
00:22:46,200 --> 00:22:50,200
Speaker 1: finance benefit that people gain by having an emergency fund

507
00:22:50,240 --> 00:22:52,720
Speaker 1: at at their disposal, And just by looking at my

508
00:22:52,800 --> 00:22:54,639
Speaker 1: own life and history and other people that I know,

509
00:22:54,720 --> 00:22:58,000
Speaker 1: it's like the momssif fund comes in clutch sometimes for people, right, Ye,

510
00:22:58,720 --> 00:23:00,560
Speaker 1: you probably don't need a whole year cash on hand.

511
00:23:00,600 --> 00:23:03,439
Speaker 1: There's been more people saying that lately. But and I

512
00:23:03,440 --> 00:23:05,280
Speaker 1: do think maybe if I'm going to be the most

513
00:23:05,320 --> 00:23:08,920
Speaker 1: generous interpretation of what Grant Cardone is saying, maybe maybe

514
00:23:08,920 --> 00:23:10,840
Speaker 1: what he's trying to say is that, well, people tend

515
00:23:10,880 --> 00:23:14,920
Speaker 1: to over index into savings and they don't invest when

516
00:23:14,920 --> 00:23:17,480
Speaker 1: they should be. They're too much, they're shoveling too much

517
00:23:17,480 --> 00:23:20,200
Speaker 1: money into their savings accountant, not enough into their four

518
00:23:20,280 --> 00:23:24,399
Speaker 1: one k's iras or into real estate investments. That's just

519
00:23:24,440 --> 00:23:26,399
Speaker 1: being generous. But I don't think that's what he's saying.

520
00:23:26,920 --> 00:23:29,680
Speaker 1: But and that can be true. There are some people

521
00:23:29,720 --> 00:23:33,400
Speaker 1: who do over index to savings, and yeah, you don't

522
00:23:33,400 --> 00:23:35,480
Speaker 1: need a year of savings built up before you start investing,

523
00:23:35,520 --> 00:23:39,480
Speaker 1: but still having some liquid cash on hand, it's a necessity.

524
00:23:39,800 --> 00:23:41,119
Speaker 1: It always has been, always will be.

525
00:23:41,400 --> 00:23:43,199
Speaker 3: I just think he's out of touch with like the

526
00:23:43,240 --> 00:23:46,200
Speaker 3: common person out there who like runs into cashlow issues,

527
00:23:46,320 --> 00:23:47,920
Speaker 3: and like when you've got tons of real estate, yes,

528
00:23:48,080 --> 00:23:50,920
Speaker 3: like you have the ability to tap these other investments,

529
00:23:50,920 --> 00:23:54,200
Speaker 3: and you've got private equity and just ways of acquiring

530
00:23:54,320 --> 00:23:56,480
Speaker 3: just getting your hands on money, that's not that's not

531
00:23:56,880 --> 00:24:00,199
Speaker 3: where most Americans are man So because of that, the

532
00:24:00,200 --> 00:24:04,439
Speaker 3: basic emergency fund, which we've updated because originally it was

533
00:24:04,560 --> 00:24:06,359
Speaker 3: two thousand and four or sixty seven dollars back in

534
00:24:06,400 --> 00:24:09,680
Speaker 3: the day, and withflation, that dollar amount is now three

535
00:24:10,480 --> 00:24:13,760
Speaker 3: forty five dollars. So remember that thirty forty five.

536
00:24:14,000 --> 00:24:15,440
Speaker 1: And I do think probably he is out of touch

537
00:24:15,440 --> 00:24:17,400
Speaker 1: because I remember seeing an article in the Wall Street

538
00:24:17,440 --> 00:24:20,120
Speaker 1: Journal or New York Times about his like super super

539
00:24:20,160 --> 00:24:21,600
Speaker 1: fancy house on the beach in Malibu.

540
00:24:21,680 --> 00:24:24,159
Speaker 3: Oh okay, yeah, I'm like, okay, all that fits with you,

541
00:24:24,280 --> 00:24:27,399
Speaker 3: that guy. Okay, exactly, congrats exactly. But so I just

542
00:24:27,440 --> 00:24:30,360
Speaker 3: said the specific dollar amounts that you need to set

543
00:24:30,359 --> 00:24:32,520
Speaker 3: aside for an emergency fund, and it turns out that

544
00:24:32,680 --> 00:24:36,399
Speaker 3: is key when it comes to growing your emergency fund quickly.

545
00:24:36,440 --> 00:24:39,439
Speaker 3: You need to set a specific goal. So that's the

546
00:24:39,440 --> 00:24:41,440
Speaker 3: first step, and then the second step is to put

547
00:24:41,440 --> 00:24:45,000
Speaker 3: that goal, that specific amount, like constantly in front of you,

548
00:24:45,080 --> 00:24:47,760
Speaker 3: like we're talking like a sticky note on your bathroom mirror,

549
00:24:48,080 --> 00:24:49,160
Speaker 3: putting a note up on.

550
00:24:49,160 --> 00:24:51,800
Speaker 1: The fridge, the dash of your car.

551
00:24:51,840 --> 00:24:53,960
Speaker 3: And certainly try to find the most painless ways to

552
00:24:54,000 --> 00:24:57,000
Speaker 3: cut back first, but then start making some harder moves

553
00:24:57,040 --> 00:25:00,760
Speaker 3: like finding ways to just like eating out lest maybe

554
00:25:01,040 --> 00:25:03,399
Speaker 3: maybe you haven't bounced around your insurance a little bit

555
00:25:03,400 --> 00:25:06,320
Speaker 3: and you're way over paying. There are more difficult steps

556
00:25:06,359 --> 00:25:08,600
Speaker 3: that take a little bit more time to ensure that

557
00:25:08,640 --> 00:25:11,399
Speaker 3: you're spending less money to where you're allowing yourself to

558
00:25:11,440 --> 00:25:14,080
Speaker 3: build up that emergency fund more quickly. But those two

559
00:25:14,160 --> 00:25:18,240
Speaker 3: steps specifically identifying your the dollar amount three forty five

560
00:25:18,280 --> 00:25:21,360
Speaker 3: dollars and then reminding yourself of it, that comes from

561
00:25:21,520 --> 00:25:24,720
Speaker 3: friend of the show Katie Milkman, who is brilliant. Those

562
00:25:24,720 --> 00:25:26,560
Speaker 3: are great tips. But I will say I think in

563
00:25:26,600 --> 00:25:29,679
Speaker 3: addition to that, I think what's going to cement it

564
00:25:29,720 --> 00:25:32,320
Speaker 3: for a lot of people is once they actually have

565
00:25:32,440 --> 00:25:34,600
Speaker 3: that emerency fund on hand and then they use it,

566
00:25:34,960 --> 00:25:37,760
Speaker 3: they find themselves in a situation to where they're like, oh,

567
00:25:37,800 --> 00:25:40,439
Speaker 3: I knew that the roof was going out, and I

568
00:25:40,480 --> 00:25:42,720
Speaker 3: had some money set aside there, but I thought it

569
00:25:42,720 --> 00:25:44,520
Speaker 3: was only gonna be nine thousand dollars. Turns out as

570
00:25:44,640 --> 00:25:47,360
Speaker 3: twelve thousand dollars. Oh, I got some extra money here.

571
00:25:47,680 --> 00:25:51,159
Speaker 3: Like experiencing the like the sigh of relief that you

572
00:25:51,200 --> 00:25:54,320
Speaker 3: get to like that you get to exhale knowing that

573
00:25:54,359 --> 00:25:56,200
Speaker 3: you're not having to put it on credit cards still

574
00:25:56,200 --> 00:25:59,639
Speaker 3: where you're paying over twenty percent because you aren't financially

575
00:25:59,680 --> 00:26:02,120
Speaker 3: prepared for the emergency room visit, right, Like, no one

576
00:26:02,119 --> 00:26:04,679
Speaker 3: expects that, but if you find yourself in a pinch, like,

577
00:26:04,720 --> 00:26:06,639
Speaker 3: that's what people have to rely on, and that's what

578
00:26:06,680 --> 00:26:08,240
Speaker 3: we're trying to get folks to avoid. It's not that

579
00:26:08,640 --> 00:26:10,639
Speaker 3: I don't even care that people. I don't want you

580
00:26:10,680 --> 00:26:12,320
Speaker 3: to have tons of money in your savings account, not

581
00:26:12,400 --> 00:26:14,880
Speaker 3: because you could be doing smarterer things without money. It's

582
00:26:15,040 --> 00:26:17,080
Speaker 3: because it's not about the money. It's about the relief.

583
00:26:17,160 --> 00:26:21,040
Speaker 3: It's about the PM worry. Yeah, yeah, the piece that

584
00:26:21,040 --> 00:26:22,560
Speaker 3: that's going to allow you to then be able to

585
00:26:22,560 --> 00:26:24,800
Speaker 3: focus on the things that are more important than life.

586
00:26:24,800 --> 00:26:28,879
Speaker 3: We don't want you obsessing over your dollars. It's about life.

587
00:26:28,880 --> 00:26:30,879
Speaker 3: It's about what you can then turn your attention to

588
00:26:30,960 --> 00:26:33,280
Speaker 3: what you can then focus on that's so much more important.

589
00:26:33,320 --> 00:26:35,840
Speaker 1: I've had a couple of conversations recently with some real

590
00:26:35,960 --> 00:26:40,040
Speaker 1: estate investors and just who are friends, and I've been like,

591
00:26:40,880 --> 00:26:43,480
Speaker 1: there's some tough times happening right now in the multifamily

592
00:26:43,760 --> 00:26:48,560
Speaker 1: and commercial realty spaces right now. For people who have

593
00:26:48,800 --> 00:26:53,359
Speaker 1: investments that they've made, they are finding that the numbers

594
00:26:53,359 --> 00:26:56,920
Speaker 1: aren't nearly as good as they had projected. And when

595
00:26:56,920 --> 00:26:58,800
Speaker 1: you're thinking about that, like you need what do you

596
00:26:58,840 --> 00:27:00,879
Speaker 1: need to be able to hang on to investment? You

597
00:27:00,920 --> 00:27:04,040
Speaker 1: need liquidity, right, And so it's even as a real

598
00:27:04,119 --> 00:27:07,320
Speaker 1: estate investor who you can project the best numbers, but

599
00:27:07,320 --> 00:27:09,119
Speaker 1: if they don't come to pass the way you hoped

600
00:27:09,440 --> 00:27:11,760
Speaker 1: they would, you need to have cash in the bank

601
00:27:11,760 --> 00:27:14,040
Speaker 1: to be able to allow you to make it through,

602
00:27:14,119 --> 00:27:17,480
Speaker 1: so you don't have to fire sale and completely mess

603
00:27:17,520 --> 00:27:19,920
Speaker 1: your finances up in the process. So, especially as a

604
00:27:19,960 --> 00:27:22,360
Speaker 1: real estate investor, that doesn't eliminate you, I don't think

605
00:27:22,400 --> 00:27:25,280
Speaker 1: from the need for having an emergency fund. I think,

606
00:27:25,359 --> 00:27:27,679
Speaker 1: in fact, it makes it potentially even more.

607
00:27:27,520 --> 00:27:30,680
Speaker 3: Important, not for the individuals out there, but for the

608
00:27:30,760 --> 00:27:32,480
Speaker 3: quote unquote savvy folks out.

609
00:27:32,359 --> 00:27:35,480
Speaker 1: There as well. By the way, some employers are being

610
00:27:35,480 --> 00:27:40,040
Speaker 1: more helpful in the area of helping people garner a

611
00:27:40,040 --> 00:27:43,560
Speaker 1: bigger emergency fund, which is kind of cool. And this

612
00:27:43,600 --> 00:27:46,360
Speaker 1: is kind of a self interested play as well, right

613
00:27:46,400 --> 00:27:49,800
Speaker 1: that these employers realize that their employees are potentially like

614
00:27:49,840 --> 00:27:53,040
Speaker 1: living on the financial precipice and they're stressed about it,

615
00:27:53,119 --> 00:27:56,040
Speaker 1: and because of that, they're less productive in their job.

616
00:27:57,359 --> 00:28:00,159
Speaker 1: That not having savings it takes a mental toll. So

617
00:28:00,480 --> 00:28:03,360
Speaker 1: there are new fintech companies springing up. There's one called

618
00:28:03,440 --> 00:28:05,760
Speaker 1: secure Save. There was an article just written about them,

619
00:28:06,080 --> 00:28:09,960
Speaker 1: and they're making it easier for employers to offer a

620
00:28:10,080 --> 00:28:13,800
Speaker 1: match towards emergency savings, which is just this benefit for

621
00:28:13,840 --> 00:28:16,639
Speaker 1: people to incentivize something that is going to help the

622
00:28:16,680 --> 00:28:19,639
Speaker 1: employee and the employer. Makes sense, man, Yeah, and I

623
00:28:19,640 --> 00:28:21,719
Speaker 1: don't necessarily think it's the employer's job. I think it's

624
00:28:21,760 --> 00:28:23,840
Speaker 1: our job. But it's also cool to see that employer.

625
00:28:23,920 --> 00:28:26,840
Speaker 1: Some employers are responding and they're being like, actually, why

626
00:28:26,880 --> 00:28:29,080
Speaker 1: not We realize that this is like a goal you

627
00:28:29,119 --> 00:28:31,280
Speaker 1: should be tackling, but why don't we help you out

628
00:28:31,280 --> 00:28:33,080
Speaker 1: with it because it's a win win it's in our

629
00:28:33,119 --> 00:28:34,640
Speaker 1: best interest too. Yeah.

630
00:28:34,640 --> 00:28:38,000
Speaker 3: Well, on a similar note, worker satisfaction is being tied

631
00:28:38,120 --> 00:28:42,040
Speaker 3: to being offered financial advice from their employers. So not

632
00:28:42,080 --> 00:28:44,960
Speaker 3: only do they want the good benefits like health coverage,

633
00:28:45,600 --> 00:28:48,840
Speaker 3: a nice four win K match, and maybe now an

634
00:28:48,880 --> 00:28:52,080
Speaker 3: emergency fund match, but they want money advice money help

635
00:28:52,120 --> 00:28:56,160
Speaker 3: as well, whether it's access to budgeting software out there

636
00:28:56,280 --> 00:28:58,680
Speaker 3: or just even engaging content. Man, this makes me think

637
00:28:58,680 --> 00:29:01,840
Speaker 3: about we've done seminars companies out there to help teach

638
00:29:01,880 --> 00:29:03,960
Speaker 3: their employees about money, which is a ton of fun

639
00:29:04,400 --> 00:29:06,800
Speaker 3: and it is very very cool to see folks engage

640
00:29:06,840 --> 00:29:10,120
Speaker 3: and asking great questions. You as an individual, you can't

641
00:29:10,160 --> 00:29:12,920
Speaker 3: rely on your employer to, I think, play this role

642
00:29:12,920 --> 00:29:15,160
Speaker 3: in your life. But man, I think given the poor

643
00:29:15,200 --> 00:29:18,400
Speaker 3: state of personal finance education in the country, I'm for

644
00:29:18,600 --> 00:29:22,160
Speaker 3: helpful instruction, like from wherever it comes from. It makes

645
00:29:22,200 --> 00:29:25,280
Speaker 3: me wonder if more folks were talking about personal finance

646
00:29:25,280 --> 00:29:26,840
Speaker 3: like back in the day, because there is certainly a

647
00:29:26,880 --> 00:29:29,520
Speaker 3: demand for it, So like where was the supply, like,

648
00:29:29,680 --> 00:29:32,560
Speaker 3: and we're providing the supply now, yeah, and companies are

649
00:29:32,640 --> 00:29:36,160
Speaker 3: doing that. We're definitely we're trying to but like, yeah,

650
00:29:36,200 --> 00:29:39,920
Speaker 3: it makes me wonder, like we're folks more willing to

651
00:29:39,920 --> 00:29:42,040
Speaker 3: talk about their personal finances back in the day and

652
00:29:42,080 --> 00:29:45,920
Speaker 3: has it become more private over the past twenty years

653
00:29:46,080 --> 00:29:46,600
Speaker 3: show I don't know.

654
00:29:46,720 --> 00:29:48,880
Speaker 1: I think a lot of it comes down to at

655
00:29:48,880 --> 00:29:52,720
Speaker 1: a complexity and personal finances have just become there's just

656
00:29:52,760 --> 00:29:56,080
Speaker 1: a lot more to wade through, to think through, and

657
00:29:56,120 --> 00:29:58,440
Speaker 1: I think it's just used to be less complex back

658
00:29:58,440 --> 00:30:01,080
Speaker 1: in the day, which made maybe maybe made some of

659
00:30:01,080 --> 00:30:03,160
Speaker 1: this content a little bit less necessary.

660
00:30:03,200 --> 00:30:06,720
Speaker 3: But we live in a more complex, optimized world, and

661
00:30:06,760 --> 00:30:09,520
Speaker 3: so as companies are looking to grow their margins, grow

662
00:30:09,560 --> 00:30:11,520
Speaker 3: their profits, a lot of times what that means is

663
00:30:11,520 --> 00:30:15,200
Speaker 3: folks potentially overpaying for products for services, not investing as

664
00:30:15,240 --> 00:30:15,760
Speaker 3: well as it could be.

665
00:30:15,800 --> 00:30:18,880
Speaker 1: And we've had a proliferation of options for people, right,

666
00:30:19,000 --> 00:30:22,440
Speaker 1: so it's this we're entering into this like Walmart sized

667
00:30:22,440 --> 00:30:24,440
Speaker 1: grocery store instead of like an all they sized grocery

668
00:30:24,480 --> 00:30:28,360
Speaker 1: store with like minimal choices, and it's just, man, I

669
00:30:28,360 --> 00:30:31,560
Speaker 1: think there's overload for people trying to figure out their finances,

670
00:30:31,600 --> 00:30:34,160
Speaker 1: and so we want to at least here, we want

671
00:30:34,160 --> 00:30:36,480
Speaker 1: to simplify things and help help folks make those most

672
00:30:36,520 --> 00:30:38,120
Speaker 1: important decisions. That's what we're doing with us.

673
00:30:38,120 --> 00:30:39,040
Speaker 2: We're trying to do at least all.

674
00:30:39,120 --> 00:30:42,280
Speaker 1: Right, let's talk about prescription drugs. We've talked about using

675
00:30:42,400 --> 00:30:45,840
Speaker 1: good RX for saving money on websites. I used good

676
00:30:45,920 --> 00:30:48,320
Speaker 1: RX the other day at a pharmacy. I told you

677
00:30:48,400 --> 00:30:52,800
Speaker 1: should get that rash look at antibiotic for my daughter.

678
00:30:53,200 --> 00:30:54,520
Speaker 1: And I went in there and I pulled up good

679
00:30:54,600 --> 00:30:56,400
Speaker 1: rx and it saved me I don't know, like three

680
00:30:56,440 --> 00:30:58,480
Speaker 1: dollars and fifty cents. It wasn't a ton of money,

681
00:30:58,480 --> 00:31:01,640
Speaker 1: but it took me all the fifty three seconds, you know.

682
00:31:02,840 --> 00:31:06,800
Speaker 1: But no joke. Trump Ourx is joining the ranks of

683
00:31:06,920 --> 00:31:12,720
Speaker 1: discount medicine websites. The Wall Street Journal they love to

684
00:31:12,800 --> 00:31:15,680
Speaker 1: jab him right now and they called him the pharmacist

685
00:31:15,720 --> 00:31:18,120
Speaker 1: in Chief in one of their recent headlines. And we're

686
00:31:18,120 --> 00:31:21,600
Speaker 1: just seeing a unique blend of capitalism and socialism coming

687
00:31:21,640 --> 00:31:24,600
Speaker 1: down from the White House these days. The President himself,

688
00:31:24,640 --> 00:31:28,080
Speaker 1: i guess, has negotiated deals directly with some drug companies,

689
00:31:28,120 --> 00:31:31,840
Speaker 1: specifically Pfizer, to be able to offer discounted medicines to

690
00:31:31,880 --> 00:31:36,000
Speaker 1: consumers through trump rx dot com. The details are vague,

691
00:31:36,040 --> 00:31:37,680
Speaker 1: so we don't know exactly what this is going to

692
00:31:37,720 --> 00:31:40,160
Speaker 1: look like or how much savings people are going to

693
00:31:40,200 --> 00:31:43,880
Speaker 1: be able to realize. Truly, the threat of tariffs is

694
00:31:43,960 --> 00:31:46,760
Speaker 1: ultimately what made this deal happen. Pfizer got like a

695
00:31:46,760 --> 00:31:49,080
Speaker 1: three year exemption from the tariffs that are being threatened,

696
00:31:49,600 --> 00:31:52,960
Speaker 1: and so this site is set to launch early next year.

697
00:31:53,000 --> 00:31:55,440
Speaker 1: We'll be on the lookout for it. I'm curious, Matt,

698
00:31:55,480 --> 00:31:57,800
Speaker 1: I am very curious to see what this entails and

699
00:31:57,840 --> 00:32:01,040
Speaker 1: how much it can or will help people. How robust

700
00:32:01,120 --> 00:32:03,240
Speaker 1: it's going to be. We'll see. I hope it says

701
00:32:03,240 --> 00:32:05,840
Speaker 1: people money on expensive drugs, but there's also a lot

702
00:32:05,840 --> 00:32:08,560
Speaker 1: of other websites out there that are already making hay

703
00:32:09,080 --> 00:32:12,040
Speaker 1: in that space. Cost Plus Drugs, which Mark Cuban launched

704
00:32:12,360 --> 00:32:14,959
Speaker 1: a few years back, is a big one in that space.

705
00:32:15,760 --> 00:32:18,600
Speaker 1: Doesn't cover everything, that's for sure, but it's a great

706
00:32:18,600 --> 00:32:21,880
Speaker 1: place to turn because they have a very costco esque

707
00:32:21,920 --> 00:32:25,240
Speaker 1: approach where it's like a fifteen percent markup, which means

708
00:32:25,240 --> 00:32:27,520
Speaker 1: that the drugs cost a fraction of what they're going

709
00:32:27,600 --> 00:32:29,240
Speaker 1: to cost in a lot of other places that you

710
00:32:29,400 --> 00:32:30,040
Speaker 1: that you might turn.

711
00:32:30,160 --> 00:32:32,360
Speaker 3: And the best part is that that was launched by

712
00:32:32,480 --> 00:32:36,560
Speaker 3: an individual, you know, capitalism baby, not by the federal government.

713
00:32:36,600 --> 00:32:38,480
Speaker 3: And that's the problem. That's what rubs me the wrong

714
00:32:38,520 --> 00:32:40,480
Speaker 3: way about going like do I want to see lower

715
00:32:40,520 --> 00:32:42,680
Speaker 3: drug prices? Do I want to see lower healthcare prices

716
00:32:42,720 --> 00:32:47,360
Speaker 3: for American citizens? Absolutely? But how we get there matters

717
00:32:47,480 --> 00:32:48,920
Speaker 3: so much and so on.

718
00:32:49,280 --> 00:32:51,160
Speaker 1: It also feels less like the government, by the way,

719
00:32:51,200 --> 00:32:53,640
Speaker 1: and like an individual yeah, you know, which, like it'd

720
00:32:53,680 --> 00:32:55,320
Speaker 1: be different if Congress was like, we're going to create

721
00:32:55,320 --> 00:32:57,640
Speaker 1: this website and we're going to create some legulation around this.

722
00:32:58,000 --> 00:33:00,840
Speaker 1: But it's one individual trying to launch, sure a website

723
00:33:00,840 --> 00:33:02,520
Speaker 1: with their name with his name on it. Sure.

724
00:33:02,680 --> 00:33:06,160
Speaker 3: Yeah, what's the Obamacare equivalent where with his name plastered

725
00:33:06,200 --> 00:33:10,320
Speaker 3: on this potential offering for folks. But either way, I

726
00:33:10,320 --> 00:33:13,040
Speaker 3: mean in both cases, I still don't like it if

727
00:33:13,080 --> 00:33:15,160
Speaker 3: it's coming from the top down, and so on a

728
00:33:15,200 --> 00:33:19,320
Speaker 3: similar note, here's a potentially positive note, but we might

729
00:33:19,360 --> 00:33:23,240
Speaker 3: be seeing fewer pharma ads on TV. The FDA director

730
00:33:23,280 --> 00:33:25,360
Speaker 3: wrote an op ed in The New York Times about

731
00:33:25,480 --> 00:33:28,520
Speaker 3: pharmaceutical ads, basically how they run a muck and how

732
00:33:28,560 --> 00:33:32,000
Speaker 3: he's planning to rain them in. And the US is

733
00:33:32,080 --> 00:33:34,280
Speaker 3: one of the two developed countries in the world that

734
00:33:34,400 --> 00:33:38,720
Speaker 3: continues to allow direct advertising from pharmaceutical companies, which is fascinating.

735
00:33:39,120 --> 00:33:40,320
Speaker 1: But New Zealand the other.

736
00:33:40,600 --> 00:33:43,360
Speaker 3: Yeah, yeah, Like what is it with us in New Zealand?

737
00:33:43,360 --> 00:33:43,760
Speaker 1: I don't know.

738
00:33:43,960 --> 00:33:47,480
Speaker 3: And I certainly am totally on board with the fact

739
00:33:47,560 --> 00:33:48,920
Speaker 3: that these commercials are annoying.

740
00:33:49,200 --> 00:33:50,719
Speaker 1: They're stupid, they're so silly.

741
00:33:50,880 --> 00:33:53,840
Speaker 3: It's just people like living their best lives and you know,

742
00:33:54,000 --> 00:33:56,160
Speaker 3: you spend thirty seconds talking about all the side effect.

743
00:33:56,040 --> 00:33:57,920
Speaker 1: Because of this farmer drug. Yeah yeah, and it's like

744
00:33:57,960 --> 00:34:01,800
Speaker 1: it makes me happier. I might I kill over instantly

745
00:34:01,880 --> 00:34:03,680
Speaker 1: by taking this drug? It was worth it wasn't.

746
00:34:04,800 --> 00:34:06,880
Speaker 3: Yeah, So that the last line in the article was

747
00:34:06,920 --> 00:34:09,960
Speaker 3: that the billions of dollars drug companies spent on advertising

748
00:34:10,040 --> 00:34:12,560
Speaker 3: it would be better spent a lowering drug prices for

749
00:34:12,640 --> 00:34:15,720
Speaker 3: American consumers, which certainly sounds nice.

750
00:34:15,719 --> 00:34:17,040
Speaker 2: But at the same time, I think.

751
00:34:16,920 --> 00:34:18,400
Speaker 3: What you have to ask yourself is where do you

752
00:34:18,480 --> 00:34:20,880
Speaker 3: draw the line when it comes to what you're going

753
00:34:20,920 --> 00:34:24,040
Speaker 3: to allow your government to decide for you? Right because

754
00:34:24,239 --> 00:34:25,920
Speaker 3: and like this is this kind of mirror is the

755
00:34:25,920 --> 00:34:29,760
Speaker 3: free speech conversations that we're having these days. It's really

756
00:34:29,800 --> 00:34:32,280
Speaker 3: easy when you see something you don't like to say, yeah,

757
00:34:32,760 --> 00:34:34,920
Speaker 3: they should shut that down. But what we need to

758
00:34:34,960 --> 00:34:37,120
Speaker 3: do is imagine the shoe being on the other foot.

759
00:34:37,120 --> 00:34:39,360
Speaker 3: And what we need to be thinking through is imagine

760
00:34:39,360 --> 00:34:41,879
Speaker 3: a policy, Imagine a product, something that the government does

761
00:34:42,000 --> 00:34:45,360
Speaker 3: or not does, but that's out there that you really like,

762
00:34:46,080 --> 00:34:48,400
Speaker 3: and now think, oh, yeah, the folks on the other

763
00:34:48,440 --> 00:34:50,319
Speaker 3: side of the aisle are going to say, yeah, let's

764
00:34:50,320 --> 00:34:52,759
Speaker 3: shut that down because now we're in power. Is that

765
00:34:52,800 --> 00:34:55,000
Speaker 3: the kind of power that we want our federal government

766
00:34:55,040 --> 00:34:57,040
Speaker 3: to have. That's why I have such a hard time

767
00:34:57,480 --> 00:35:01,200
Speaker 3: with Trump, rx with anything the federal government does. And

768
00:35:01,280 --> 00:35:03,520
Speaker 3: I am all for Mark Cuban and all the different

769
00:35:03,600 --> 00:35:06,600
Speaker 3: entrepreneurs out there doing awesome things on their own dime.

770
00:35:06,840 --> 00:35:10,000
Speaker 3: They're the ones taking the risk as opposed to the government,

771
00:35:10,000 --> 00:35:11,960
Speaker 3: the federal government taking the risk. And then and then

772
00:35:12,080 --> 00:35:15,719
Speaker 3: us as US citizens as taxpayers, being saddled with the bill.

773
00:35:15,760 --> 00:35:18,640
Speaker 1: I will say, the FDA director, he didn't say I'm

774
00:35:18,640 --> 00:35:21,160
Speaker 1: going to outlaw them, but what he said was, there's

775
00:35:21,200 --> 00:35:26,560
Speaker 1: actually we used to send letters to the pharmaceutical companies

776
00:35:26,800 --> 00:35:29,600
Speaker 1: about truth and advertising claims. We don't really send those

777
00:35:29,640 --> 00:35:31,960
Speaker 1: letters anymore. We've kind of like the cop isn't on

778
00:35:32,000 --> 00:35:34,399
Speaker 1: the beat anymore, and some of the claims being made

779
00:35:34,800 --> 00:35:38,600
Speaker 1: are pretty ostentatious, not not aligned with reality. And so

780
00:35:38,640 --> 00:35:40,600
Speaker 1: he's saying, we're just gonna be on We're gonna be

781
00:35:40,600 --> 00:35:42,400
Speaker 1: on it a little bit more. And I think that's

782
00:35:42,480 --> 00:35:43,680
Speaker 1: that's probably.

783
00:35:43,800 --> 00:35:46,400
Speaker 3: That just sounds like, don't make me count to three.

784
00:35:46,560 --> 00:35:48,440
Speaker 3: But you know, because then what like, what does it

785
00:35:48,480 --> 00:35:50,560
Speaker 3: come down to? It comes down to enforcement, and then

786
00:35:50,600 --> 00:35:52,640
Speaker 3: what that costs money. And then at some point you

787
00:35:52,640 --> 00:35:54,160
Speaker 3: have to decide what you're gonna allow what you're not

788
00:35:54,160 --> 00:35:57,120
Speaker 3: gonna allow, Like I don't again, I'm totally on board

789
00:35:57,120 --> 00:35:59,400
Speaker 3: with the fact that these commercials are so stupid. But

790
00:35:59,480 --> 00:36:02,319
Speaker 3: let's just make one of them, right, Like, let's make

791
00:36:02,360 --> 00:36:03,440
Speaker 3: it similar sway.

792
00:36:03,239 --> 00:36:05,600
Speaker 1: By them, Let's make it so ridiculous in their doctor's

793
00:36:05,600 --> 00:36:08,160
Speaker 1: office and they're like, hey, I know, and I think well,

794
00:36:08,200 --> 00:36:10,799
Speaker 1: and that the hippocratic gath right, like that falls then

795
00:36:10,880 --> 00:36:13,600
Speaker 1: upon the doctors to say, hey, let me tell you.

796
00:36:13,640 --> 00:36:15,520
Speaker 3: What's actually best for you in this in this scenario.

797
00:36:15,560 --> 00:36:19,400
Speaker 3: I understand why that's attractive, but as healthcare professionals, I

798
00:36:19,400 --> 00:36:22,239
Speaker 3: think there should be I mean, then there is a

799
00:36:22,320 --> 00:36:24,960
Speaker 3: high standard as to what it is that you're gonna

800
00:36:25,040 --> 00:36:25,760
Speaker 3: do for your patients.

801
00:36:25,800 --> 00:36:28,920
Speaker 1: Yeah, all right, good time. So we'll see what happens there.

802
00:36:29,560 --> 00:36:31,560
Speaker 1: We'll be following this indeed, all right, that's gonna do

803
00:36:31,560 --> 00:36:33,960
Speaker 1: it for this episode. Map we'll put links to some

804
00:36:34,080 --> 00:36:36,799
Speaker 1: of the stories that we mentioned in today's episode up

805
00:36:36,840 --> 00:36:39,479
Speaker 1: on our website at health to money dot com. And

806
00:36:39,520 --> 00:36:41,759
Speaker 1: we'll see you back here on Monday with a fresh

807
00:36:42,000 --> 00:36:44,480
Speaker 1: ask how to Money episode. And if you have a

808
00:36:44,560 --> 00:36:46,799
Speaker 1: question for us, a money question. Send it our way.

809
00:36:46,840 --> 00:36:49,440
Speaker 1: We'd love to take it. Just record it on the

810
00:36:49,480 --> 00:36:51,719
Speaker 1: voicemail map of your phone. Email it over to us

811
00:36:51,719 --> 00:36:54,399
Speaker 1: at how to moneypot at gmail dot com. Until next time,

812
00:36:54,800 --> 00:36:55,280
Speaker 1: best friends

813
00:36:55,280 --> 00:37:08,000
Speaker 3: Out, Best friends Out,