1 00:00:00,280 --> 00:00:03,400 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,440 --> 00:00:25,800 Speaker 1: and today we are answering your listener questions. That's right, Joel. 3 00:00:25,880 --> 00:00:27,920 Speaker 1: This is our ask how them on the episode where 4 00:00:28,200 --> 00:00:31,680 Speaker 1: every other Monday we answer five listener questions, and this 5 00:00:31,760 --> 00:00:34,800 Speaker 1: week we've got five great ones, including a question about 6 00:00:34,840 --> 00:00:37,880 Speaker 1: tuition reimbursement, the best way to go about that, a 7 00:00:38,000 --> 00:00:41,800 Speaker 1: question about some different new bank account bonuses, and also 8 00:00:42,280 --> 00:00:46,880 Speaker 1: when paying off your mortgage early does not make sense. Yeah, 9 00:00:47,040 --> 00:00:49,320 Speaker 1: we've got those three plus a couple others here on 10 00:00:49,360 --> 00:00:51,479 Speaker 1: this episode. Yeah, so looking forward to it. I think 11 00:00:51,479 --> 00:00:53,760 Speaker 1: we've got some good ones and just one that are 12 00:00:53,960 --> 00:00:57,040 Speaker 1: ones that are highly applicable to most of us. So 13 00:00:57,120 --> 00:00:58,880 Speaker 1: a lot of good questions that we're gonna get to 14 00:00:59,040 --> 00:01:01,200 Speaker 1: on this episode, plus a couple others that may not 15 00:01:01,280 --> 00:01:04,000 Speaker 1: be as applicable but are still very good. Yeah, still 16 00:01:04,040 --> 00:01:07,000 Speaker 1: interesting for sure. I think sometimes I'm fascinated by the 17 00:01:07,080 --> 00:01:10,080 Speaker 1: variety of questions that come in because even if the 18 00:01:10,160 --> 00:01:12,240 Speaker 1: spice of life, even if it's not something that I 19 00:01:12,319 --> 00:01:15,479 Speaker 1: have dealt with personally, like I know that someone someone 20 00:01:15,480 --> 00:01:17,120 Speaker 1: who has, and I can, like I don't know, just 21 00:01:17,200 --> 00:01:19,240 Speaker 1: kind of think of it as building a robust amount 22 00:01:19,280 --> 00:01:21,520 Speaker 1: of financial knowledge. And I'm just curious, and I think 23 00:01:21,560 --> 00:01:23,440 Speaker 1: a lot of our listeners are too. They're just curious 24 00:01:23,440 --> 00:01:25,959 Speaker 1: about money in general. And hopefully the stuff we covered 25 00:01:26,000 --> 00:01:29,440 Speaker 1: here just leads to you being like smarter when it 26 00:01:29,440 --> 00:01:31,360 Speaker 1: comes to money in general. But Matt, before we get 27 00:01:31,400 --> 00:01:33,600 Speaker 1: to that, you you don't like to go to the doctor. 28 00:01:33,720 --> 00:01:36,160 Speaker 1: You don't like to go to the dentist. That is true, 29 00:01:36,200 --> 00:01:38,560 Speaker 1: although I'm trying to fix all of these things. I know, yeah, 30 00:01:38,600 --> 00:01:40,319 Speaker 1: you actually have gone recently, and you actually went to 31 00:01:40,319 --> 00:01:43,360 Speaker 1: the eye doctor recently, which I was surprised to hear 32 00:01:43,400 --> 00:01:45,120 Speaker 1: that you decided to make that move. Yeah, I'm gonna 33 00:01:45,120 --> 00:01:47,200 Speaker 1: share this story with folks. And so I've been sent 34 00:01:47,400 --> 00:01:49,120 Speaker 1: to not go to the eye doctor and you know this, 35 00:01:49,240 --> 00:01:52,280 Speaker 1: but I know I've needed to go because my girls 36 00:01:52,400 --> 00:01:54,800 Speaker 1: will point out that I can't read the clock that's 37 00:01:54,840 --> 00:01:57,720 Speaker 1: on the stove. And here's the thing. It's in blue lettering. 38 00:01:57,800 --> 00:02:00,120 Speaker 1: It's not very bright. It is hard to see. But 39 00:02:00,160 --> 00:02:01,320 Speaker 1: they still make fun of me and they're like, you 40 00:02:01,320 --> 00:02:04,320 Speaker 1: can't read that when we're sitting at the table here. 41 00:02:04,400 --> 00:02:06,040 Speaker 1: It has made me realize, though that I think my 42 00:02:06,080 --> 00:02:08,519 Speaker 1: eyes have gotten worse over the years. It has been 43 00:02:08,760 --> 00:02:11,320 Speaker 1: twelve solid years since I had gone and got my 44 00:02:11,360 --> 00:02:15,080 Speaker 1: eyes checked. But I was tempted to instead of actually 45 00:02:15,080 --> 00:02:17,960 Speaker 1: go to the eye doctor, to just hop on zinny 46 00:02:18,000 --> 00:02:21,000 Speaker 1: and slightly tweak my prescription and making it a little 47 00:02:21,040 --> 00:02:23,679 Speaker 1: bit uh stronger, because basically they're like a frugal or 48 00:02:23,720 --> 00:02:26,040 Speaker 1: cheap kin undrum. You're like, yeah, yeah, do I pay 49 00:02:26,120 --> 00:02:27,880 Speaker 1: the money to go to an eye doctor or do 50 00:02:27,960 --> 00:02:30,760 Speaker 1: I just assume that my vision has deteriorated a little bit, 51 00:02:31,240 --> 00:02:33,120 Speaker 1: just like pad the numbers right exactly. And so I 52 00:02:33,120 --> 00:02:34,600 Speaker 1: was like, Okay, I'm just gonna make a little bit stronger. 53 00:02:34,600 --> 00:02:36,520 Speaker 1: I'm gonna order those I can avoid the you know, 54 00:02:36,560 --> 00:02:38,800 Speaker 1: going to the eye doctor altogether. But in the end 55 00:02:38,840 --> 00:02:41,440 Speaker 1: I decided, okay, I think that would be cheap, Like 56 00:02:41,440 --> 00:02:45,440 Speaker 1: that would be an instance of me, uh maybe doing 57 00:02:45,440 --> 00:02:47,480 Speaker 1: what I should be doing, which is actually going in 58 00:02:47,520 --> 00:02:49,160 Speaker 1: and seeing the eye doctor, because they, you know, they 59 00:02:49,240 --> 00:02:51,320 Speaker 1: check for other things in your eye while you're in 60 00:02:51,360 --> 00:02:52,960 Speaker 1: there as well, making sure. I don't know what they 61 00:02:52,960 --> 00:02:54,720 Speaker 1: look for, but they you gotta fly in there, man, 62 00:02:54,760 --> 00:02:56,560 Speaker 1: like you gotta pick that out. Does make sure that 63 00:02:56,600 --> 00:02:59,240 Speaker 1: there's not other weird stuff going on. So that was 64 00:02:59,320 --> 00:03:01,520 Speaker 1: the decision that I make. And here's the thing. I 65 00:03:01,560 --> 00:03:04,120 Speaker 1: am so glad that I did because I went in 66 00:03:04,639 --> 00:03:07,280 Speaker 1: and I don't have like eye cancer or anything like that, 67 00:03:07,360 --> 00:03:09,639 Speaker 1: like not nothing terrible, which I was actually a little 68 00:03:09,639 --> 00:03:10,840 Speaker 1: bit worried as I was sitting down, I was like, 69 00:03:10,880 --> 00:03:13,079 Speaker 1: oh man, it's been over a decade, like I might 70 00:03:13,120 --> 00:03:15,560 Speaker 1: have some screw top eyes, but it's are another healthy 71 00:03:15,600 --> 00:03:19,440 Speaker 1: but they have gotten worse. But specifically, we discovered that 72 00:03:19,560 --> 00:03:22,320 Speaker 1: I have an a stigmatism and both of my eyes. 73 00:03:22,760 --> 00:03:24,400 Speaker 1: And what that means is that there is something different 74 00:03:24,440 --> 00:03:26,680 Speaker 1: that you have to do to your eyeglass prescription. You 75 00:03:26,680 --> 00:03:29,360 Speaker 1: can't just make it stronger. You have to do something 76 00:03:29,760 --> 00:03:31,600 Speaker 1: you know there, it's like another set of numbers that 77 00:03:31,600 --> 00:03:33,679 Speaker 1: you have to make an adjustment for. Uh. And I'm 78 00:03:33,680 --> 00:03:36,640 Speaker 1: so glad that I actually went in because had I 79 00:03:36,720 --> 00:03:39,400 Speaker 1: not gone in and had I just made my prescription stronger, 80 00:03:39,760 --> 00:03:42,680 Speaker 1: I would have a not improved my vision because it 81 00:03:42,680 --> 00:03:45,800 Speaker 1: wouldn't have been the right correction. B There's a good 82 00:03:45,880 --> 00:03:48,120 Speaker 1: chance my eyes would hurt because I would be constantly 83 00:03:48,120 --> 00:03:50,440 Speaker 1: straining because I hadn't corrected my eyes. You know, I 84 00:03:50,480 --> 00:03:53,360 Speaker 1: hadn't corrected my prescription in the correct way. And I 85 00:03:53,360 --> 00:03:55,000 Speaker 1: would have been out the money, like the thirty bucks 86 00:03:55,080 --> 00:03:57,520 Speaker 1: or whatever that I would have spent on Zinny, because 87 00:03:57,520 --> 00:03:59,720 Speaker 1: that's where I'm gonna Actually I ordered some earlier this 88 00:03:59,760 --> 00:04:01,640 Speaker 1: morning before we started working. All there. You got me 89 00:04:01,680 --> 00:04:04,080 Speaker 1: a new set of eyeglasses on the way from Zenny 90 00:04:04,120 --> 00:04:07,080 Speaker 1: optical right ones that are gonna yeah, and they help 91 00:04:07,120 --> 00:04:09,840 Speaker 1: your eyes, and so I'm so looking forward to not 92 00:04:09,920 --> 00:04:12,280 Speaker 1: only being able to see properly. But I'm just glad 93 00:04:12,280 --> 00:04:13,960 Speaker 1: I made the right decision in this case, because, like 94 00:04:14,000 --> 00:04:18,279 Speaker 1: you said, I can be a cheap buddy and avoid 95 00:04:18,320 --> 00:04:19,839 Speaker 1: doing the thing I think I need to do in 96 00:04:19,920 --> 00:04:22,200 Speaker 1: order to save a couple of bucks, and in this case, 97 00:04:22,560 --> 00:04:25,000 Speaker 1: I'm glad I mean the right decision. So the lesson here, 98 00:04:25,440 --> 00:04:29,239 Speaker 1: don't self diagnose any ailments you might have, instead actually 99 00:04:29,279 --> 00:04:31,279 Speaker 1: going and spend the In my case, I spent like 100 00:04:31,320 --> 00:04:33,400 Speaker 1: eighty bucks getting my eyes checked and she gave me 101 00:04:33,440 --> 00:04:36,040 Speaker 1: the prescription and Nana, I'm set for another twelve years. Yeah. 102 00:04:36,040 --> 00:04:38,680 Speaker 1: That's the thing. It's not terribly expensive. Hopeully not twelve. 103 00:04:38,720 --> 00:04:42,720 Speaker 1: But that's the thing is is it's not terribly expensive 104 00:04:42,760 --> 00:04:44,960 Speaker 1: to go to see an eye doctor. Usually you can 105 00:04:45,080 --> 00:04:47,400 Speaker 1: get that appointment for seventy eight bucks. Not not not much. 106 00:04:47,440 --> 00:04:49,520 Speaker 1: It's really not too bad. And then yeah, save on 107 00:04:49,560 --> 00:04:52,080 Speaker 1: the back end when it comes to the glasses that 108 00:04:52,120 --> 00:04:54,680 Speaker 1: you're getting, because that is where most people fork over 109 00:04:54,720 --> 00:04:58,720 Speaker 1: the most money. They'll drop three fo on you know, 110 00:04:58,760 --> 00:05:01,760 Speaker 1: prescription lenses as opposed to going to a place like 111 00:05:01,839 --> 00:05:05,160 Speaker 1: Zenny where you went, which is dirt cheap, but you 112 00:05:05,480 --> 00:05:07,599 Speaker 1: still just as good a quality. And they've got some 113 00:05:07,600 --> 00:05:10,359 Speaker 1: cool sis. So I love their glasses. I'm actually really excited. 114 00:05:10,360 --> 00:05:12,839 Speaker 1: I've got these kind of gray, clear ish colored ones. 115 00:05:13,240 --> 00:05:16,479 Speaker 1: So the frames are kind of a little more transparent. Uh, 116 00:05:16,520 --> 00:05:18,560 Speaker 1: And yeah, I'm looking forward to train out some new frames. 117 00:05:18,600 --> 00:05:21,400 Speaker 1: I thought about getting someone like the hip wire frame. 118 00:05:21,720 --> 00:05:23,560 Speaker 1: I don't think I can pull this off. My dad 119 00:05:23,600 --> 00:05:25,360 Speaker 1: he went and got his at Warby Parker. That's another 120 00:05:25,360 --> 00:05:27,800 Speaker 1: good choices are a little more expensive, but they're still 121 00:05:27,880 --> 00:05:30,440 Speaker 1: cheaper than going to a lot of the traditional eyeglass shops. 122 00:05:30,560 --> 00:05:33,240 Speaker 1: And so once you get that prescription once and once 123 00:05:33,279 --> 00:05:35,480 Speaker 1: you've had that eye exam, once you've not cheaped out 124 00:05:35,480 --> 00:05:37,279 Speaker 1: on that, and then you can like kind of sort 125 00:05:37,320 --> 00:05:40,240 Speaker 1: of cheap out on the glasses. Like that's get the 126 00:05:40,279 --> 00:05:44,160 Speaker 1: right prescriptions, right, But don't just necessarily like overdo it 127 00:05:44,160 --> 00:05:46,400 Speaker 1: and spend buckoos a bucks for the frames. Yeah, so, 128 00:05:46,800 --> 00:05:49,520 Speaker 1: especially with younger kids too, were wrestling around. I don't 129 00:05:49,520 --> 00:05:50,960 Speaker 1: know how many times I've gotten smacked in the side 130 00:05:50,960 --> 00:05:53,000 Speaker 1: of the face or had had them kind of wrenched off. 131 00:05:53,279 --> 00:05:57,000 Speaker 1: That's me though, when we're wrestling that that is true. 132 00:05:57,040 --> 00:05:59,080 Speaker 1: I mean, you know, before we podcast every time, I 133 00:05:59,200 --> 00:06:01,560 Speaker 1: gotta get that heart it up to that target heart rate, 134 00:06:01,720 --> 00:06:05,880 Speaker 1: make sure that we are podcasting at the optimal levels. Uh, Joe, 135 00:06:05,960 --> 00:06:07,880 Speaker 1: Let's go ahead to introduce our beer this episode. This 136 00:06:07,960 --> 00:06:11,480 Speaker 1: is one by Burial, uh and it is called Beneath 137 00:06:11,480 --> 00:06:14,719 Speaker 1: the Tides of Relative and Permanence. I don't really have 138 00:06:14,720 --> 00:06:17,880 Speaker 1: anything else to say. We'll talk about this beer and 139 00:06:17,880 --> 00:06:19,440 Speaker 1: our thoughts on it at the end of the episode. 140 00:06:19,440 --> 00:06:21,960 Speaker 1: Maybe we should let the folks at Burial name our 141 00:06:22,000 --> 00:06:24,840 Speaker 1: podcast episode like that'll be kind of fun to see 142 00:06:24,880 --> 00:06:26,240 Speaker 1: what they come up with. We don't want folks to 143 00:06:26,240 --> 00:06:28,720 Speaker 1: get depressed though, just by reading the name of our 144 00:06:28,760 --> 00:06:30,919 Speaker 1: episodes right to actually click it and listen to. They 145 00:06:30,920 --> 00:06:33,520 Speaker 1: have the most interesting beer names and sometimes depressing, but 146 00:06:33,680 --> 00:06:35,760 Speaker 1: they go deep. Let's move on. Let's get to some 147 00:06:35,800 --> 00:06:38,800 Speaker 1: listener questions. And if you have a question you want 148 00:06:38,800 --> 00:06:40,280 Speaker 1: to submit for Matt and I to take on an 149 00:06:40,320 --> 00:06:43,400 Speaker 1: upcoming ask TM episode, we would love to hear it. 150 00:06:43,440 --> 00:06:46,200 Speaker 1: Just go to how to money dot com slash ask 151 00:06:46,480 --> 00:06:49,200 Speaker 1: simple instructions. There is basically recording a voice membo on 152 00:06:49,200 --> 00:06:51,080 Speaker 1: your phone and then emailing it over to us and 153 00:06:51,120 --> 00:06:53,960 Speaker 1: hopefully we'll get it on the next one. So Matt, 154 00:06:54,000 --> 00:06:56,760 Speaker 1: let's get to our first question of this episode. This 155 00:06:56,800 --> 00:07:01,480 Speaker 1: one is about banking bonuses, how to score money by 156 00:07:01,480 --> 00:07:04,960 Speaker 1: moving your dollars around. Hi, man Joel. I'm a longtime 157 00:07:05,040 --> 00:07:08,000 Speaker 1: listener and I really enjoyed your podcast on my runs 158 00:07:08,080 --> 00:07:11,360 Speaker 1: during the pandemic. I'm retiring next week at fifty two, 159 00:07:11,400 --> 00:07:13,400 Speaker 1: and I plan to spend a certain amount of time 160 00:07:13,440 --> 00:07:16,440 Speaker 1: shuffling our cash reserve around to various high yield savings 161 00:07:16,440 --> 00:07:18,760 Speaker 1: accounts just to try to squeeze out a bit of 162 00:07:18,800 --> 00:07:23,000 Speaker 1: extra interest without taking on additional risk. I found though, 163 00:07:23,080 --> 00:07:27,520 Speaker 1: that many online banks have a direct deposit requirement. Since 164 00:07:27,560 --> 00:07:30,960 Speaker 1: I'll be retired and it don't have an employer giving 165 00:07:30,960 --> 00:07:33,360 Speaker 1: me a wage anymore, I don't have any way to 166 00:07:33,880 --> 00:07:38,160 Speaker 1: meet this. What do you suggest? Is there some way 167 00:07:38,240 --> 00:07:41,960 Speaker 1: for me to get around this direct deposit requirement, maybe 168 00:07:41,960 --> 00:07:46,360 Speaker 1: by setting up some kind of deposit from my brokerage 169 00:07:46,360 --> 00:07:49,400 Speaker 1: account or something like that. I would love to hear 170 00:07:50,320 --> 00:07:53,760 Speaker 1: any solutions you might have for this issue. Thanks again. 171 00:07:54,360 --> 00:07:57,160 Speaker 1: All right man, I like Jeff's question. I personally am 172 00:07:57,160 --> 00:08:00,000 Speaker 1: not much of a runner, but yeah, when I am 173 00:08:00,080 --> 00:08:02,760 Speaker 1: going on a bike ride, I sometimes listen to podcasts, 174 00:08:02,800 --> 00:08:04,800 Speaker 1: sometimes listen to music, depending on kind of what I'm 175 00:08:04,800 --> 00:08:07,000 Speaker 1: going for. I'm a little more leisurely, it's usually a podcast. 176 00:08:07,040 --> 00:08:09,080 Speaker 1: But what about you? Do you run to podcast you 177 00:08:09,120 --> 00:08:11,840 Speaker 1: run to music? Do we actually pump people up enough 178 00:08:12,800 --> 00:08:15,440 Speaker 1: for their workout? I hope we do actually, so yeah, 179 00:08:15,520 --> 00:08:19,360 Speaker 1: big thanks to all of our runners and workouters us 180 00:08:19,760 --> 00:08:22,080 Speaker 1: the right tory probably not out there here, I'll say this. 181 00:08:22,360 --> 00:08:25,800 Speaker 1: I actually I've had some issues listening to audiobooks and 182 00:08:25,840 --> 00:08:28,400 Speaker 1: listening to podcasts while I run, because for my entire 183 00:08:28,440 --> 00:08:30,360 Speaker 1: life I've always used that as a time to kind 184 00:08:30,360 --> 00:08:33,400 Speaker 1: of decompress, unplug, But lately I'm if I'm wanting to 185 00:08:33,440 --> 00:08:35,120 Speaker 1: catch up on something, I'll you know, popping in the 186 00:08:35,160 --> 00:08:38,079 Speaker 1: earbud one year take off running. But here's the problem 187 00:08:38,120 --> 00:08:41,240 Speaker 1: with that is I get so engrossed into the story 188 00:08:41,440 --> 00:08:44,120 Speaker 1: or the podcast that the narrative essentially that I won't 189 00:08:44,120 --> 00:08:46,800 Speaker 1: always pay attention. I pay attention to traffic, there's no 190 00:08:46,920 --> 00:08:49,480 Speaker 1: danger there. But I have an issue with not listening 191 00:08:49,520 --> 00:08:52,000 Speaker 1: to my body as much, and so I'll start running 192 00:08:52,240 --> 00:08:54,640 Speaker 1: and I realized, like halfway through the rung, I'm like, crap, 193 00:08:54,679 --> 00:08:57,040 Speaker 1: my my knee has been really hurting, and I don't 194 00:08:57,040 --> 00:08:59,240 Speaker 1: really pay attention to it because I'm not because I'm 195 00:08:59,280 --> 00:09:02,240 Speaker 1: completely too into what I'm listening to. I'm not really 196 00:09:02,280 --> 00:09:04,400 Speaker 1: listening to my body as much. But the Jeff and 197 00:09:04,400 --> 00:09:06,160 Speaker 1: all the other folks out there who can do two 198 00:09:06,200 --> 00:09:09,600 Speaker 1: things at once, good as to you, and we appreciate 199 00:09:09,600 --> 00:09:12,120 Speaker 1: you all listening. But Jeff, let's ahead and answer your question. 200 00:09:12,440 --> 00:09:14,920 Speaker 1: You're talking about basically trying to get around some of 201 00:09:14,960 --> 00:09:18,200 Speaker 1: these direct deposit requirements, and we we feel that this 202 00:09:18,240 --> 00:09:20,160 Speaker 1: is a great approach. Uh. You know, if you can 203 00:09:20,200 --> 00:09:23,199 Speaker 1: snag those bonuses in order to get a higher rate 204 00:09:23,200 --> 00:09:25,600 Speaker 1: of return, we feel that that's probably the best method 205 00:09:25,600 --> 00:09:28,520 Speaker 1: we know of to increase returns on your money that 206 00:09:28,600 --> 00:09:30,760 Speaker 1: you aren't willing to risk in the market for money 207 00:09:30,760 --> 00:09:32,000 Speaker 1: that you want to keep on hand, that you want 208 00:09:32,000 --> 00:09:34,400 Speaker 1: to keep liquid. Uh. And the thing is is Not 209 00:09:34,440 --> 00:09:38,079 Speaker 1: all banks require you to have a number of direct 210 00:09:38,080 --> 00:09:40,480 Speaker 1: deposits in order to snag the bonus, but some of 211 00:09:40,520 --> 00:09:43,040 Speaker 1: them definitely do. Uh. It's kind of annoying, but we 212 00:09:43,120 --> 00:09:45,280 Speaker 1: understand why they do it. You know, they know it's 213 00:09:45,320 --> 00:09:48,240 Speaker 1: sort of like this, it's a bit of a hassle. Uh. 214 00:09:48,280 --> 00:09:50,240 Speaker 1: And so once you do get that direct deposit up 215 00:09:50,280 --> 00:09:52,320 Speaker 1: and running, you've got that money going into that account, 216 00:09:52,320 --> 00:09:55,880 Speaker 1: you're far more likely to stick around as a customer, sticky. 217 00:09:56,000 --> 00:09:57,959 Speaker 1: It's like a web they've fun for you. Yeah, and 218 00:09:58,040 --> 00:10:00,000 Speaker 1: of course, you know, if if you bank with them, 219 00:10:00,200 --> 00:10:01,880 Speaker 1: you know for the long term, there's a higher likelihood 220 00:10:01,920 --> 00:10:04,400 Speaker 1: that you're gonna maybe use their other products like a helock, 221 00:10:04,600 --> 00:10:06,080 Speaker 1: or maybe you'll go to them for a car loan, 222 00:10:06,160 --> 00:10:07,760 Speaker 1: that sort of thing. So we understand why they do it, 223 00:10:08,200 --> 00:10:11,040 Speaker 1: but it makes it annoying for us as consumers when 224 00:10:11,040 --> 00:10:14,360 Speaker 1: we're trying to maximize our return. Yeah. But let's let's 225 00:10:14,400 --> 00:10:17,679 Speaker 1: talk about yes specific situation, and he wants to get 226 00:10:17,720 --> 00:10:21,240 Speaker 1: around these direct deposit requirements when he doesn't have a paycheck, 227 00:10:21,440 --> 00:10:24,280 Speaker 1: and that's it's tricky, right. So it's even tricky for 228 00:10:24,520 --> 00:10:28,240 Speaker 1: freelancers Matt right, who don't have a steady paycheck coming 229 00:10:28,280 --> 00:10:30,839 Speaker 1: in and they just get paid willy nilly here and 230 00:10:30,880 --> 00:10:33,400 Speaker 1: there by different clients at different times. But for everyone 231 00:10:33,440 --> 00:10:35,800 Speaker 1: who out there who it does have W two employment, 232 00:10:36,080 --> 00:10:38,439 Speaker 1: all you gotta do is set up your direct deposit 233 00:10:38,640 --> 00:10:40,400 Speaker 1: to go to this new bank and boom you've done. 234 00:10:40,440 --> 00:10:42,679 Speaker 1: It was super easy. But yeah, Jeff, you said you're 235 00:10:42,679 --> 00:10:44,640 Speaker 1: retiring next week at the age of fifty two, which, 236 00:10:44,679 --> 00:10:47,960 Speaker 1: by the way, congrats, cheers very early retirement. We're very 237 00:10:47,960 --> 00:10:51,040 Speaker 1: happy for you. But this this doesn't apply to you 238 00:10:51,200 --> 00:10:53,440 Speaker 1: since you're too young. But for our more mature listeners 239 00:10:53,480 --> 00:10:57,600 Speaker 1: who are receiving show social Security benefits, that check actually 240 00:10:57,679 --> 00:11:01,079 Speaker 1: from Social Security, it usually counts for or requirements or 241 00:11:01,120 --> 00:11:04,640 Speaker 1: promotions like this, that counts as a direct deposit. So yeah, 242 00:11:04,640 --> 00:11:06,600 Speaker 1: if you're in that boat, then you simply switch the 243 00:11:06,600 --> 00:11:09,360 Speaker 1: account that your monthly check goes into, if that's the case. 244 00:11:09,679 --> 00:11:12,440 Speaker 1: But again, Jeff's kind of in no man's land. He's 245 00:11:12,440 --> 00:11:16,760 Speaker 1: stuck in this direct deposit purgatory essentially, So Matt, you 246 00:11:16,800 --> 00:11:19,120 Speaker 1: have kind of one way though that he can get 247 00:11:19,160 --> 00:11:21,600 Speaker 1: around these direct deposit requirements. Sign up for a new 248 00:11:21,600 --> 00:11:23,760 Speaker 1: account and still get the bonus, right Yeah, So yeah, Jeff, 249 00:11:23,800 --> 00:11:26,360 Speaker 1: kind of in limbo. But for Jeff and other listeners 250 00:11:26,400 --> 00:11:28,560 Speaker 1: out there who you know, don't want to change what 251 00:11:28,600 --> 00:11:31,640 Speaker 1: account their paycheck is getting deposited in, the next best 252 00:11:31,679 --> 00:11:34,840 Speaker 1: method is to try using a c H transfers and 253 00:11:34,880 --> 00:11:38,280 Speaker 1: so a c H transfers that stands for Automated clearinghouse UH. 254 00:11:38,280 --> 00:11:41,079 Speaker 1: And these are just the standard push or pull transfers 255 00:11:41,120 --> 00:11:44,240 Speaker 1: that you should be able to initiate with any bank account. 256 00:11:44,520 --> 00:11:46,200 Speaker 1: And here's the thing too, This is going to be 257 00:11:46,200 --> 00:11:49,679 Speaker 1: completely dependent on what bank you're attempting to open an 258 00:11:49,679 --> 00:11:53,720 Speaker 1: account with and what their specific requirements are. But a 259 00:11:53,800 --> 00:11:56,480 Speaker 1: lot of banks say that a c H transfers from 260 00:11:56,480 --> 00:11:58,920 Speaker 1: a bank UH, and just from regular banks like ally 261 00:11:59,000 --> 00:12:02,840 Speaker 1: Capital One discover that they're completely legit and that they'll 262 00:12:02,880 --> 00:12:06,000 Speaker 1: count as those direct deposits. UH. There are some banks 263 00:12:06,000 --> 00:12:09,280 Speaker 1: out there that will even count transfers from PayPal and Venmo, 264 00:12:09,640 --> 00:12:12,800 Speaker 1: so it doesn't necessarily have to be this super official 265 00:12:13,280 --> 00:12:16,600 Speaker 1: direct deposit from an employer like you're used to. That 266 00:12:16,640 --> 00:12:18,680 Speaker 1: being said, it is worth reaching out to someone at 267 00:12:18,679 --> 00:12:21,240 Speaker 1: the bank to see if that counts as a direct 268 00:12:21,240 --> 00:12:22,840 Speaker 1: deposit ahead of time. You want to make sure that 269 00:12:22,880 --> 00:12:26,240 Speaker 1: you're not wasting your time but quite a few banks 270 00:12:26,240 --> 00:12:29,920 Speaker 1: will count these A c H transfers similarly to a 271 00:12:30,000 --> 00:12:32,880 Speaker 1: direct deposit, allowing you to still get that sign up 272 00:12:32,880 --> 00:12:35,920 Speaker 1: bonus or that higher interest rate from that account. Yeah, 273 00:12:35,920 --> 00:12:38,920 Speaker 1: and it's so easy to initiate an A c H 274 00:12:39,000 --> 00:12:41,600 Speaker 1: transfer from one bank to another. You just have to 275 00:12:41,600 --> 00:12:43,760 Speaker 1: make sure you link those accounts and once you do, 276 00:12:43,920 --> 00:12:47,240 Speaker 1: like I'm always transferring money back and forth from one 277 00:12:47,280 --> 00:12:50,439 Speaker 1: account to another, and so it's as simple as that. Really, 278 00:12:50,520 --> 00:12:54,280 Speaker 1: for most banks, they accept that as a direct deposit, 279 00:12:54,520 --> 00:12:57,319 Speaker 1: and then you know, Jeff will be qualified, he'll be 280 00:12:57,360 --> 00:13:00,920 Speaker 1: able to get that bonus, which in effect equates to 281 00:13:01,000 --> 00:13:03,559 Speaker 1: a massive return on his money, especially in the environment 282 00:13:03,640 --> 00:13:06,800 Speaker 1: we're in with just incredibly low rates of savings. It's 283 00:13:06,840 --> 00:13:09,520 Speaker 1: like those bank account bonuses are gold. It's a it's 284 00:13:09,520 --> 00:13:12,000 Speaker 1: a big deal. And and speaking of that, Doctor of 285 00:13:12,040 --> 00:13:15,440 Speaker 1: Credit is our favorite site for bank sign up bonuses. Uh, 286 00:13:15,480 --> 00:13:17,720 Speaker 1: they aren't usually as rich as sign up bonuses for 287 00:13:17,760 --> 00:13:20,120 Speaker 1: credit cards, but they can still be meaningful, you know, 288 00:13:20,200 --> 00:13:24,080 Speaker 1: to three potentially for opening a new bank account and 289 00:13:24,200 --> 00:13:27,760 Speaker 1: keeping it around for sixty to ninety days. The great 290 00:13:27,840 --> 00:13:30,440 Speaker 1: thing is that opening a bank account it's not as 291 00:13:30,440 --> 00:13:32,800 Speaker 1: painful as it used to be. I specifically remember Matt 292 00:13:32,880 --> 00:13:35,000 Speaker 1: actually doing one of these with one of the big 293 00:13:35,040 --> 00:13:37,520 Speaker 1: banks back in the day, and uh, that was a 294 00:13:37,559 --> 00:13:40,760 Speaker 1: mistake for so many reasons. One, just going into the 295 00:13:40,760 --> 00:13:43,360 Speaker 1: branch was a big pain. Trying to close that account 296 00:13:43,360 --> 00:13:46,920 Speaker 1: at the end was frustrating, and to make it super hard. 297 00:13:47,280 --> 00:13:48,640 Speaker 1: And of course it's they don't want you to leave 298 00:13:48,720 --> 00:13:50,640 Speaker 1: one of the big banks exactly. They're trying to make 299 00:13:50,679 --> 00:13:53,960 Speaker 1: your life miserable as usual. But yeah, but yeah, that's 300 00:13:54,000 --> 00:13:56,960 Speaker 1: not the case. You're opening up an account online these days, 301 00:13:57,040 --> 00:14:00,280 Speaker 1: and so uh, for for Jeff, it should be pretty 302 00:14:00,280 --> 00:14:02,400 Speaker 1: simple to kind of bounce around to some of these 303 00:14:02,440 --> 00:14:06,000 Speaker 1: different accounts, open up, open one up, get the bonus, 304 00:14:06,160 --> 00:14:07,880 Speaker 1: and kind of see whether he likes the product or not, 305 00:14:07,920 --> 00:14:10,199 Speaker 1: whether he wants to stick around. But I think this is, yeah, 306 00:14:10,320 --> 00:14:12,960 Speaker 1: is a great strategy, very reasonable to increase your earnings 307 00:14:12,960 --> 00:14:15,480 Speaker 1: on savings without taking on any additional risk. It just 308 00:14:15,559 --> 00:14:19,480 Speaker 1: takes really a little bit of record keeping, right, make 309 00:14:19,520 --> 00:14:21,320 Speaker 1: sure you're keeping track of where your money is going. 310 00:14:21,560 --> 00:14:24,720 Speaker 1: But other than that, it's, uh, it's usually just ten 311 00:14:24,800 --> 00:14:27,280 Speaker 1: fifteen minutes to open that new account, making a couple 312 00:14:27,320 --> 00:14:31,520 Speaker 1: of those transfers and Jeff's gonna be golden. That's rights. 313 00:14:31,840 --> 00:14:33,840 Speaker 1: We've got several other questions that we're gonna get to 314 00:14:34,000 --> 00:14:36,600 Speaker 1: during this episode, like the ones we mentioned about tuition 315 00:14:36,720 --> 00:14:39,760 Speaker 1: reimbursements when paying off for mortgage when that doesn't make sense, 316 00:14:39,960 --> 00:14:41,760 Speaker 1: plus a couple others. We'll get to all of that 317 00:14:42,000 --> 00:14:53,200 Speaker 1: right after this break. Alright, we're back from break. We're 318 00:14:53,200 --> 00:14:56,240 Speaker 1: still taking listener questions. This next one comes from a 319 00:14:56,240 --> 00:14:58,960 Speaker 1: listener who's trying to find the right credit card for 320 00:14:59,040 --> 00:15:02,320 Speaker 1: his daughter. Hey, Matt and Joel, my name is Jason. 321 00:15:02,760 --> 00:15:05,960 Speaker 1: I am forty five. My life is forty four. We 322 00:15:06,000 --> 00:15:09,600 Speaker 1: have good income paying jobs, and we have three kiddos. 323 00:15:10,080 --> 00:15:14,240 Speaker 1: Our otis kiddo just started college, and we're thinking about 324 00:15:14,640 --> 00:15:17,680 Speaker 1: getting her a credit card just so she can start 325 00:15:17,720 --> 00:15:22,320 Speaker 1: building some credit score as well, just so that she 326 00:15:22,520 --> 00:15:25,920 Speaker 1: is has something to put her gas money on and 327 00:15:26,560 --> 00:15:30,360 Speaker 1: expenses other than her debit card right now, and so 328 00:15:30,440 --> 00:15:33,120 Speaker 1: that she's a little bit more protected. Of course, mom 329 00:15:33,120 --> 00:15:36,400 Speaker 1: and dad would be watching it, but she is very 330 00:15:36,400 --> 00:15:40,160 Speaker 1: responsible for an eighteen year old. But we also don't 331 00:15:40,200 --> 00:15:44,080 Speaker 1: want to allow the leash out too much on just 332 00:15:44,200 --> 00:15:47,680 Speaker 1: opening the window for spending everything on a credit card. 333 00:15:47,800 --> 00:15:51,040 Speaker 1: So I'm curious, do you have a credit card you 334 00:15:51,080 --> 00:15:56,360 Speaker 1: would recommend for a young new credit card holder. Thanks, 335 00:15:56,600 --> 00:15:59,080 Speaker 1: and have a great day. Look forward to hearing from you, 336 00:15:59,520 --> 00:16:01,960 Speaker 1: all right, and thanks so much for that question. And 337 00:16:02,040 --> 00:16:03,760 Speaker 1: we are so glad to hear that this is something 338 00:16:03,800 --> 00:16:07,040 Speaker 1: that is on your mind. We feel that now is 339 00:16:07,760 --> 00:16:10,160 Speaker 1: absolutely the time to be doing this. We want you 340 00:16:10,200 --> 00:16:12,360 Speaker 1: to get your daughter used to credit cards while she's 341 00:16:12,400 --> 00:16:15,320 Speaker 1: you know, relatively young, because here's the thing, She's likely 342 00:16:15,360 --> 00:16:18,080 Speaker 1: going to make some mistakes. But since it sounds like 343 00:16:18,280 --> 00:16:21,520 Speaker 1: that you're still maybe financially responsible for her, maybe she's 344 00:16:21,520 --> 00:16:23,480 Speaker 1: still under your roof. You'll be able to help her 345 00:16:23,760 --> 00:16:26,880 Speaker 1: learn those lessons on a on a much smaller scale, 346 00:16:27,320 --> 00:16:30,040 Speaker 1: instead of her learning them the hard way later in 347 00:16:30,120 --> 00:16:32,520 Speaker 1: life when maybe she's less likely to have someone looking 348 00:16:32,520 --> 00:16:35,120 Speaker 1: out for her. Basically, you want are learning those lessons 349 00:16:35,120 --> 00:16:38,040 Speaker 1: with like tens and hundreds rather than with like thousands 350 00:16:38,120 --> 00:16:41,360 Speaker 1: and ten thousands of dollars. Essentially, this is why Joel, 351 00:16:41,440 --> 00:16:43,280 Speaker 1: not like you and I, we both use go Henry, 352 00:16:43,280 --> 00:16:46,600 Speaker 1: which is an app for kids. Uh, we use them 353 00:16:46,680 --> 00:16:49,240 Speaker 1: right now with our oldest daughters because like our kids, 354 00:16:49,360 --> 00:16:52,440 Speaker 1: they're gonna use plastic to make purchases eventually in their life. 355 00:16:52,640 --> 00:16:55,080 Speaker 1: And so our philosophy is, you know, why not get 356 00:16:55,080 --> 00:16:57,280 Speaker 1: them used to to using it while they're young and 357 00:16:57,280 --> 00:16:59,640 Speaker 1: while we have the ability to to guide them. But 358 00:16:59,680 --> 00:17:02,000 Speaker 1: of course, go Henry, it's a debit card system, but 359 00:17:02,040 --> 00:17:04,639 Speaker 1: we feel that the same principles apply when it comes 360 00:17:04,680 --> 00:17:07,959 Speaker 1: to them swiping that card and understanding that money is 361 00:17:08,160 --> 00:17:10,600 Speaker 1: leaving their possession, right, Yeah, for sure. And I do 362 00:17:10,680 --> 00:17:12,720 Speaker 1: think Matt, like what you said that there's no better 363 00:17:12,760 --> 00:17:16,520 Speaker 1: time than the present, because, yeah, as your kids get older, 364 00:17:16,560 --> 00:17:19,720 Speaker 1: you have less and less influence. And Jason still has 365 00:17:19,760 --> 00:17:21,960 Speaker 1: a lot of influence over his daughter right now, Like 366 00:17:22,000 --> 00:17:24,280 Speaker 1: he can help help her figure out which credit card 367 00:17:24,359 --> 00:17:26,119 Speaker 1: is best, and he can then you know, they can 368 00:17:26,160 --> 00:17:28,440 Speaker 1: look at her spending together and they can figure out 369 00:17:28,480 --> 00:17:31,600 Speaker 1: where she's making mistakes, kind of help her own how 370 00:17:31,640 --> 00:17:34,200 Speaker 1: she uses it. So yeah, I love the idea of 371 00:17:34,320 --> 00:17:38,760 Speaker 1: not waiting and hoping that eventually, when she's got her 372 00:17:38,760 --> 00:17:41,000 Speaker 1: own place and her own job, that she's going to 373 00:17:41,080 --> 00:17:43,000 Speaker 1: figure it out and use it. Well, Like, let's make 374 00:17:43,000 --> 00:17:46,560 Speaker 1: sure we impart those values and the knowledge. Now, I 375 00:17:46,560 --> 00:17:49,119 Speaker 1: think you know, one reason to to move forward with 376 00:17:49,160 --> 00:17:51,960 Speaker 1: this is because credit cards are great tools, Like we 377 00:17:51,960 --> 00:17:53,879 Speaker 1: talked about that all the time, but like all tools 378 00:17:53,920 --> 00:17:56,320 Speaker 1: out there, you run the risk of using them poorly 379 00:17:56,359 --> 00:17:58,879 Speaker 1: and hurting yourself. Like you can misuse a tool, right, 380 00:17:58,920 --> 00:18:00,560 Speaker 1: You can use a hammer to us through a painting 381 00:18:00,560 --> 00:18:02,760 Speaker 1: glass and it's like, dang it, I didn't did the 382 00:18:02,760 --> 00:18:05,320 Speaker 1: wrong thing with that, and you cause a lot of trouble. 383 00:18:05,600 --> 00:18:10,320 Speaker 1: But it's effective in the wrong way, and in this case, right, 384 00:18:10,480 --> 00:18:13,560 Speaker 1: your credit score and your personal finances could be hurt 385 00:18:13,600 --> 00:18:15,720 Speaker 1: in a big way if you don't use credit cards. Well, 386 00:18:16,119 --> 00:18:18,760 Speaker 1: like you mentioned your daughter, she sounds like a responsible 387 00:18:18,840 --> 00:18:20,879 Speaker 1: young woman, but you want to make sure that she 388 00:18:21,000 --> 00:18:24,440 Speaker 1: understands that the credit card it's not offering free money. 389 00:18:24,680 --> 00:18:27,120 Speaker 1: I think oftentimes for college students that's how they've gotten 390 00:18:27,160 --> 00:18:29,359 Speaker 1: in trouble is they were like, wait, how much is 391 00:18:29,359 --> 00:18:31,520 Speaker 1: my limit? Cool, guess that's how much I can spend 392 00:18:31,840 --> 00:18:34,480 Speaker 1: two thousand free dollars just sitting there, right, And it's like, 393 00:18:34,560 --> 00:18:36,679 Speaker 1: that's not how that works. But really, it is so 394 00:18:36,720 --> 00:18:40,520 Speaker 1: important for her to understand that she's spending her own money, uh, 395 00:18:40,560 --> 00:18:43,520 Speaker 1: not free money that someone's given her. And it's a 396 00:18:43,560 --> 00:18:47,200 Speaker 1: shift in mindset that's important to foster, especially for young 397 00:18:47,240 --> 00:18:49,160 Speaker 1: folks who are getting to that age where they're gonna 398 00:18:49,160 --> 00:18:51,960 Speaker 1: fly the coupe, those are like really important developmental years 399 00:18:52,040 --> 00:18:54,760 Speaker 1: and we still need the input of our parents in 400 00:18:54,800 --> 00:18:56,439 Speaker 1: those years to kind of help us with some of 401 00:18:56,440 --> 00:18:59,639 Speaker 1: those bigger life changes. And really, of course that the 402 00:18:59,680 --> 00:19:02,159 Speaker 1: most iportant rule for anyone using a credit card that 403 00:19:02,160 --> 00:19:03,560 Speaker 1: you need to impart to your daughter is that she 404 00:19:03,680 --> 00:19:05,879 Speaker 1: must pay the balance in full at the end of 405 00:19:05,920 --> 00:19:08,520 Speaker 1: every month and to never buy anything put anything on 406 00:19:08,520 --> 00:19:10,600 Speaker 1: that credit card that she where she won't be able 407 00:19:10,600 --> 00:19:13,520 Speaker 1: to actually make that happen exactly, But you know, once 408 00:19:13,560 --> 00:19:15,720 Speaker 1: you get that straight, like, there are so many different 409 00:19:15,720 --> 00:19:20,119 Speaker 1: reasons that we are fans of credit cards, Jason, you 410 00:19:20,160 --> 00:19:22,480 Speaker 1: mentioned two of the biggest ones. You know, the ability 411 00:19:22,560 --> 00:19:24,960 Speaker 1: to start growing your credit score like that is huge, 412 00:19:25,320 --> 00:19:28,080 Speaker 1: and the additional consumer protections they offer are great as well. 413 00:19:28,600 --> 00:19:31,480 Speaker 1: There's a lot of peace of mind because that you know, 414 00:19:31,520 --> 00:19:35,200 Speaker 1: liability for fraudulent transactions is capped when you use credit cards. 415 00:19:35,400 --> 00:19:37,960 Speaker 1: If you get scammed out of your cash, you know, 416 00:19:37,960 --> 00:19:40,040 Speaker 1: regardless of it's physical cash or even you know from 417 00:19:40,040 --> 00:19:42,000 Speaker 1: a debit card, you're out of luck. But if you 418 00:19:42,000 --> 00:19:46,000 Speaker 1: get ripped off the credit card transaction you've got immediate 419 00:19:46,040 --> 00:19:49,399 Speaker 1: protections built in that card acts as a buffer. And 420 00:19:49,440 --> 00:19:51,360 Speaker 1: of course, you know, there are so many other credit 421 00:19:51,400 --> 00:19:54,080 Speaker 1: card benefits like sign up bonuses that we won't get into. 422 00:19:54,280 --> 00:19:56,240 Speaker 1: We've talked about those enough here on the show, but 423 00:19:56,640 --> 00:19:58,800 Speaker 1: if you want to listen back to episode three six, 424 00:19:58,800 --> 00:20:01,160 Speaker 1: we actually do a deep dive on the different credit 425 00:20:01,160 --> 00:20:04,800 Speaker 1: card benefits that you aren't using. And so, you know, Jason, 426 00:20:04,800 --> 00:20:06,520 Speaker 1: in your case, you know that this is something you 427 00:20:06,520 --> 00:20:08,520 Speaker 1: want to get your daughter doing. But for everyone else 428 00:20:08,520 --> 00:20:10,960 Speaker 1: out there who's thinking, maybe I don't know, you've come 429 00:20:11,000 --> 00:20:14,880 Speaker 1: from some other personal finance guys who advocate against using 430 00:20:14,920 --> 00:20:17,720 Speaker 1: credit cards, we are all for it, assuming just like 431 00:20:17,800 --> 00:20:19,560 Speaker 1: Joel said, that you pay your balance off at the 432 00:20:19,680 --> 00:20:22,360 Speaker 1: end of every single month in full and on time. 433 00:20:22,400 --> 00:20:25,719 Speaker 1: That's right, and let's talk about something else, Matt. Another 434 00:20:25,760 --> 00:20:29,280 Speaker 1: option to boost Jason's daughter's credit score is to make 435 00:20:29,280 --> 00:20:32,640 Speaker 1: her an authorized user on your credit cards. Jason, and 436 00:20:32,760 --> 00:20:35,960 Speaker 1: that's assuming you've got great credit. But we're assuming that 437 00:20:36,000 --> 00:20:37,760 Speaker 1: you do, because it sounds like you've got your money 438 00:20:37,800 --> 00:20:41,040 Speaker 1: game together and you're listening to this podcast and you're 439 00:20:41,040 --> 00:20:43,320 Speaker 1: asking a question, So I'm sure things are good with 440 00:20:43,320 --> 00:20:45,600 Speaker 1: your credit score. But go ahead and check, and then 441 00:20:46,000 --> 00:20:48,920 Speaker 1: you can sign your daughter up as an authorized user. 442 00:20:48,960 --> 00:20:51,280 Speaker 1: You can list her as an authorized user on one 443 00:20:51,680 --> 00:20:54,240 Speaker 1: or two of your credit cards, and that will really 444 00:20:54,320 --> 00:20:57,080 Speaker 1: quickly benefit her credit score. It'll make it look like 445 00:20:57,119 --> 00:21:00,399 Speaker 1: she's been responsible as responsible as you have to the 446 00:21:00,400 --> 00:21:03,040 Speaker 1: credit bureaus, which is pretty cool. How you can kind 447 00:21:03,040 --> 00:21:06,720 Speaker 1: of do that and grandfather your daughter into your good 448 00:21:06,760 --> 00:21:09,719 Speaker 1: credit standing in that way. So yeah, consider that and 449 00:21:09,760 --> 00:21:12,560 Speaker 1: then work towards getting a card of her own too, 450 00:21:13,119 --> 00:21:15,040 Speaker 1: and then kind of well, what's the best credit card 451 00:21:15,040 --> 00:21:16,879 Speaker 1: to get that That question is the next one that 452 00:21:16,920 --> 00:21:20,360 Speaker 1: pops up, Well, that really depends. And actually before two 453 00:21:20,359 --> 00:21:23,320 Speaker 1: thousand nine and the introduction of the Card Act, the 454 00:21:23,359 --> 00:21:26,119 Speaker 1: world was kind of the college kids oyster. Uh. You know, 455 00:21:26,160 --> 00:21:28,800 Speaker 1: banks were offering credit cards like candy on campuses. We've 456 00:21:28,840 --> 00:21:31,280 Speaker 1: heard stories, Matt remember back in the day, we had J. D. 457 00:21:31,400 --> 00:21:33,399 Speaker 1: Roth On and he talked about what was a free pizza? 458 00:21:33,440 --> 00:21:35,040 Speaker 1: Is that what he got? Or did you get a 459 00:21:35,040 --> 00:21:37,120 Speaker 1: free pizza? I got a free pizza. What did he get? 460 00:21:37,119 --> 00:21:40,000 Speaker 1: He had a frisbee at Frisbee. Yeah, And so that 461 00:21:40,080 --> 00:21:41,600 Speaker 1: was kind of like the way things went down is 462 00:21:42,160 --> 00:21:45,760 Speaker 1: banks were on college campuses offering credit cards to kids 463 00:21:46,040 --> 00:21:49,480 Speaker 1: when they had to be able to prove zero about 464 00:21:49,760 --> 00:21:52,280 Speaker 1: their financial responsibility, their income, any of that stuff. Well 465 00:21:52,280 --> 00:21:54,119 Speaker 1: even before that, I mean my first credit card I 466 00:21:54,119 --> 00:21:56,000 Speaker 1: got when I was a teenager living at home in 467 00:21:56,080 --> 00:21:58,159 Speaker 1: high school, and at the point when I applied for 468 00:21:58,200 --> 00:22:02,239 Speaker 1: the card and received it, I had to have a job. Yeah. So, uh, 469 00:22:02,359 --> 00:22:04,479 Speaker 1: the laws have changed a lot since then. You know what, 470 00:22:04,520 --> 00:22:07,320 Speaker 1: we're podcasters. We still barely have jobs. But uh, I 471 00:22:07,560 --> 00:22:09,040 Speaker 1: think that that was one of those things that it 472 00:22:09,160 --> 00:22:12,520 Speaker 1: led to severe long term debt problems for so many people. 473 00:22:12,840 --> 00:22:15,520 Speaker 1: And so now because of that, you know, legislation twelve 474 00:22:15,600 --> 00:22:18,160 Speaker 1: years ago, if you're under twenty one with no credit score, 475 00:22:18,359 --> 00:22:20,480 Speaker 1: you have to have proof of income or a willing 476 00:22:20,520 --> 00:22:23,359 Speaker 1: co signer, And we suggest that you go in the 477 00:22:23,400 --> 00:22:26,800 Speaker 1: student credit card direction for the time being until her 478 00:22:27,640 --> 00:22:29,919 Speaker 1: her credit score gets boosted to where she can get 479 00:22:29,960 --> 00:22:31,640 Speaker 1: some of the better cards that Matt and I talked 480 00:22:31,640 --> 00:22:35,040 Speaker 1: about that we prefer. Discover is probably the best in 481 00:22:35,040 --> 00:22:38,639 Speaker 1: this area with their IT cards. Capital One Quicksilver Student 482 00:22:38,760 --> 00:22:41,320 Speaker 1: is another great one with no annual fee and it 483 00:22:41,359 --> 00:22:43,600 Speaker 1: gets you one and a half percent cash back. Uh. 484 00:22:43,640 --> 00:22:45,840 Speaker 1: And then yeah, once you've established, you can upgrade that 485 00:22:45,840 --> 00:22:48,399 Speaker 1: credit card with one of those credit card companies, or 486 00:22:48,720 --> 00:22:50,960 Speaker 1: you can just sign up for another credit card that 487 00:22:51,080 --> 00:22:53,600 Speaker 1: is going to be better, better fit for her and 488 00:22:53,640 --> 00:22:55,800 Speaker 1: for how she spends. But well, we'll link to both 489 00:22:55,800 --> 00:22:57,720 Speaker 1: those cards in the Charlottes. We think they're two of 490 00:22:57,760 --> 00:23:00,280 Speaker 1: the best for anybody in her position. One of the 491 00:23:00,280 --> 00:23:03,360 Speaker 1: benefits of those student cards is the fact that oftentimes 492 00:23:03,400 --> 00:23:05,240 Speaker 1: their limits are lower, and sort of, like we said 493 00:23:05,280 --> 00:23:07,120 Speaker 1: at the beginning of the episode, if she can make 494 00:23:07,160 --> 00:23:10,000 Speaker 1: mistakes with just maybe hundreds instead of thousands and tens 495 00:23:10,000 --> 00:23:11,800 Speaker 1: of thousands, I think what that's one of the things 496 00:23:11,800 --> 00:23:13,680 Speaker 1: to keep in mind is that, regardless of the card, 497 00:23:13,840 --> 00:23:15,840 Speaker 1: it probably would be better for her to have a 498 00:23:15,840 --> 00:23:18,560 Speaker 1: card with a lower limit. That way keeps her out 499 00:23:18,560 --> 00:23:20,960 Speaker 1: of trouble. I think another interer from going in the 500 00:23:21,000 --> 00:23:24,919 Speaker 1: Maserati leadership, you know, yeah, but uh, and then the 501 00:23:24,960 --> 00:23:27,439 Speaker 1: co signing option, maybe think of the fact too, it 502 00:23:27,520 --> 00:23:30,880 Speaker 1: might be worth you proactively co signing that card with her. 503 00:23:31,119 --> 00:23:33,200 Speaker 1: That way you can I don't know, maybe it's meeting 504 00:23:33,200 --> 00:23:34,880 Speaker 1: once a month or just talking on the phone once 505 00:23:34,880 --> 00:23:37,320 Speaker 1: a month to kind of go over some of her transactions, 506 00:23:37,320 --> 00:23:39,520 Speaker 1: seeing where her balances are, and I think that could 507 00:23:39,520 --> 00:23:42,160 Speaker 1: allow you to have a more active role in sort 508 00:23:42,160 --> 00:23:45,840 Speaker 1: of the day to day operations of that specific credit card. 509 00:23:45,840 --> 00:23:47,800 Speaker 1: And I don't know, like this doesn't have to continue, 510 00:23:47,840 --> 00:23:50,600 Speaker 1: and definitely, but after like six to eight months, if 511 00:23:50,600 --> 00:23:52,320 Speaker 1: she's doing a great job and just like you said, 512 00:23:52,560 --> 00:23:55,320 Speaker 1: she's being incredibly responsible, it's something where maybe you check 513 00:23:55,359 --> 00:23:57,200 Speaker 1: in like once a quarter, like once every few months, 514 00:23:57,280 --> 00:23:59,639 Speaker 1: or like only at holidays. You're like, hey, how you 515 00:23:59,680 --> 00:24:01,359 Speaker 1: doing with credit card? By the way, we will make 516 00:24:01,400 --> 00:24:03,320 Speaker 1: sure you're being you know, you're paying out your balance 517 00:24:03,359 --> 00:24:05,560 Speaker 1: every month, and hopefully you'll hear the great news that 518 00:24:05,640 --> 00:24:07,400 Speaker 1: like yep, you know, paying it off every single month, 519 00:24:07,640 --> 00:24:09,560 Speaker 1: where she's almost treating it like a debit card, but 520 00:24:09,640 --> 00:24:12,960 Speaker 1: getting all of those sweet credit card benefits, no doubt. Jason, 521 00:24:13,040 --> 00:24:15,800 Speaker 1: best of luck to you and your daughter. And I mean, yeah, 522 00:24:15,840 --> 00:24:17,720 Speaker 1: it's a big time leaving the nest like that, So 523 00:24:18,200 --> 00:24:20,160 Speaker 1: congrats to to you and her. I get you thinking 524 00:24:20,200 --> 00:24:22,520 Speaker 1: like ten years from now, I'm just gonna like purposefully 525 00:24:22,520 --> 00:24:24,000 Speaker 1: make sure my kids fail at school so they have 526 00:24:24,000 --> 00:24:26,560 Speaker 1: to continue to stay home with me because I like 527 00:24:26,600 --> 00:24:29,240 Speaker 1: hanging out with him. Let him fly, all right, let's 528 00:24:29,400 --> 00:24:31,199 Speaker 1: I'm sure I'll feel that way at some point, but 529 00:24:31,560 --> 00:24:33,720 Speaker 1: let's let's get to the next question. This one is 530 00:24:33,880 --> 00:24:38,640 Speaker 1: about rebuilding your finances after filing for bankruptcy. Hi, Matt, 531 00:24:38,640 --> 00:24:42,080 Speaker 1: and Jeel. I'm generally a financially smart person and I 532 00:24:42,119 --> 00:24:44,919 Speaker 1: have a strong financial history, but I made the horrible 533 00:24:44,960 --> 00:24:47,879 Speaker 1: mistake of allowing my former husband to have complete control 534 00:24:47,920 --> 00:24:50,640 Speaker 1: over our finances, and as a result, we went through 535 00:24:50,680 --> 00:24:54,040 Speaker 1: a bankruptcy. We are now divorced, and our bankruptcy is 536 00:24:54,040 --> 00:24:57,280 Speaker 1: finally discharging. My credit score has taken a major hit, 537 00:24:57,320 --> 00:25:00,960 Speaker 1: of course, what steps would you recommend begin to rebuild 538 00:25:00,960 --> 00:25:05,280 Speaker 1: my credit as efficiently as possible? Thanks for everything, all right, Matt. 539 00:25:05,280 --> 00:25:07,840 Speaker 1: By the way, that question was from Becky, And uh, 540 00:25:08,280 --> 00:25:11,159 Speaker 1: really tough question, Becky. I'm so sorry to hear about 541 00:25:11,200 --> 00:25:15,040 Speaker 1: the financial, the relational, and the emotional turmoil that you've 542 00:25:15,080 --> 00:25:19,399 Speaker 1: gone through recently. That sounds like a lot, and I 543 00:25:19,440 --> 00:25:22,680 Speaker 1: think it's important. I'll just want to speak from personal 544 00:25:22,760 --> 00:25:24,840 Speaker 1: history for a minute, Like I want you to know 545 00:25:24,880 --> 00:25:26,840 Speaker 1: that bankruptcy it's not the end all be all. It 546 00:25:26,880 --> 00:25:30,199 Speaker 1: doesn't define who you are, and it doesn't say anything 547 00:25:30,200 --> 00:25:33,360 Speaker 1: about you as a person. And when I was a kid, 548 00:25:33,440 --> 00:25:36,400 Speaker 1: my parents went through bankruptcy. I was about twelve years old. 549 00:25:36,560 --> 00:25:38,840 Speaker 1: It was really really tough on them. It was tough 550 00:25:38,880 --> 00:25:42,080 Speaker 1: on my whole family, my siblings, but they made it 551 00:25:42,119 --> 00:25:44,320 Speaker 1: out on the other side, and they're in a better 552 00:25:44,359 --> 00:25:48,119 Speaker 1: financial situation than ever. Like they're both just about on 553 00:25:48,160 --> 00:25:50,199 Speaker 1: the precipice of retiring and they're gonna be able to 554 00:25:50,200 --> 00:25:52,439 Speaker 1: do that in their late sixties, which I think in 555 00:25:52,480 --> 00:25:55,360 Speaker 1: their forties they were like, we're gonna work until we die, 556 00:25:55,400 --> 00:25:57,040 Speaker 1: Like that's what they assumed at that at that point 557 00:25:57,080 --> 00:25:58,919 Speaker 1: in time. And so yeah, I just want you to 558 00:25:59,000 --> 00:26:02,359 Speaker 1: know that these things happen and to not beat yourself 559 00:26:02,440 --> 00:26:04,280 Speaker 1: up over it, because it's easy to do that and 560 00:26:04,320 --> 00:26:08,480 Speaker 1: get into like that self flagellation mindset. But really, let's 561 00:26:08,480 --> 00:26:10,440 Speaker 1: talk about like what you can do moving forward, and 562 00:26:10,520 --> 00:26:15,080 Speaker 1: let's not dwell on like the negative past mistakes, you know, Becky. 563 00:26:15,119 --> 00:26:17,760 Speaker 1: For you, I think one silver lining is that it 564 00:26:17,800 --> 00:26:19,520 Speaker 1: sounds like you know your stuff when it comes to 565 00:26:19,520 --> 00:26:22,000 Speaker 1: personal finance, and so it's it's not like you're you're 566 00:26:22,119 --> 00:26:25,760 Speaker 1: starting from, you know, complete scratch on the knowledge side, 567 00:26:26,080 --> 00:26:28,480 Speaker 1: and I feel like that's incredibly helpful. So yeah, let's 568 00:26:28,520 --> 00:26:31,399 Speaker 1: let's kind of talk about rebuilding here. That bankruptcy is 569 00:26:31,400 --> 00:26:33,640 Speaker 1: gonna stay on your credit report for seven years most likely, 570 00:26:33,680 --> 00:26:36,479 Speaker 1: and that is going to impact your credit score. Although 571 00:26:36,520 --> 00:26:39,640 Speaker 1: the further away that you get, the more that your 572 00:26:39,680 --> 00:26:42,359 Speaker 1: score is going to start to improve even before it 573 00:26:42,400 --> 00:26:46,080 Speaker 1: is completely removed from your credit report altogether. So that's 574 00:26:46,080 --> 00:26:48,240 Speaker 1: some additional good news. But in the meantime, there are 575 00:26:48,760 --> 00:26:51,000 Speaker 1: some of the things that you can do now to 576 00:26:51,080 --> 00:26:53,280 Speaker 1: improve that credit score. Yeah, it's important to do what 577 00:26:53,400 --> 00:26:57,119 Speaker 1: you can to handle credit responsibly now, but getting that 578 00:26:57,160 --> 00:26:59,920 Speaker 1: credit is tough when you have a bankruptcy on your 579 00:27:00,040 --> 00:27:02,200 Speaker 1: credit report. So how do you get a credit card 580 00:27:02,240 --> 00:27:05,639 Speaker 1: and actually start to do the hard work, uh, towards 581 00:27:05,800 --> 00:27:08,679 Speaker 1: improving that score. Well, you might have to initially settle 582 00:27:08,760 --> 00:27:11,119 Speaker 1: for a secured card. And the way that these secured 583 00:27:11,160 --> 00:27:13,280 Speaker 1: credit cards work is that you essentially you put down 584 00:27:13,280 --> 00:27:16,679 Speaker 1: a deposit at the bank. In that deposit essentially acts 585 00:27:16,720 --> 00:27:19,280 Speaker 1: as your credit limit. There's no risk to the financial 586 00:27:19,320 --> 00:27:22,000 Speaker 1: institution because if someone doesn't pay, they have the deposit 587 00:27:22,040 --> 00:27:24,280 Speaker 1: to cover it. So let's say you open up a 588 00:27:24,320 --> 00:27:26,520 Speaker 1: thousand dollar secured credit card. You have to come to 589 00:27:26,560 --> 00:27:29,040 Speaker 1: the table with a thousand dollars, but then at the 590 00:27:29,080 --> 00:27:30,720 Speaker 1: end of the day, you have this reporting to the 591 00:27:30,720 --> 00:27:32,920 Speaker 1: credit bureaus that you have a thousand dollar credit limit 592 00:27:33,040 --> 00:27:35,560 Speaker 1: on this card, and then you want to at the 593 00:27:35,600 --> 00:27:38,000 Speaker 1: same time make sure you're not using too much of 594 00:27:38,040 --> 00:27:41,879 Speaker 1: that available credit at most using charging three on that 595 00:27:41,880 --> 00:27:44,160 Speaker 1: credit card each month, because you want to keep that 596 00:27:44,400 --> 00:27:47,000 Speaker 1: what's known as the credit utilization rate low on that 597 00:27:47,040 --> 00:27:49,040 Speaker 1: secured card. So it puts you in a tight spot. 598 00:27:49,040 --> 00:27:50,639 Speaker 1: Like you you don't want to be using those credit 599 00:27:50,680 --> 00:27:53,159 Speaker 1: cards necessarily at this point in time to fund all 600 00:27:53,200 --> 00:27:56,159 Speaker 1: your purchases. While it's a secured card, you want to 601 00:27:56,240 --> 00:27:59,200 Speaker 1: keep the amount that you're using on it low. Yeah, 602 00:27:59,200 --> 00:28:00,800 Speaker 1: it's somebody keep them into when it comes to these 603 00:28:00,800 --> 00:28:03,959 Speaker 1: specific cards, UH is that of course, you know, like 604 00:28:04,000 --> 00:28:06,639 Speaker 1: the typical credit card benefits that we talk about that 605 00:28:06,720 --> 00:28:09,560 Speaker 1: you will often see with normal credit cards, they're gonna 606 00:28:09,560 --> 00:28:13,120 Speaker 1: be pretty pretty meager with the secured cards. But there 607 00:28:13,119 --> 00:28:15,760 Speaker 1: are some great options out there with no annual fees, 608 00:28:16,280 --> 00:28:19,280 Speaker 1: like the Capital One Platinum secured card, and we can 609 00:28:19,280 --> 00:28:21,719 Speaker 1: link to that one in our show notes. Amazon they 610 00:28:21,720 --> 00:28:25,000 Speaker 1: actually offer a similar credit Builder credit card that will 611 00:28:25,000 --> 00:28:27,200 Speaker 1: link to UH And and here's the other thing too. 612 00:28:27,200 --> 00:28:28,919 Speaker 1: You know, Joel mentioned coming to the table with a 613 00:28:28,920 --> 00:28:32,120 Speaker 1: thousand dollars in order to provide that backstop in order 614 00:28:32,119 --> 00:28:35,320 Speaker 1: to essentially put down a deposit for your card. But 615 00:28:35,600 --> 00:28:37,600 Speaker 1: for folks out there who can't spare the money, you know, 616 00:28:37,640 --> 00:28:40,440 Speaker 1: to put down that money towards a secured card, we 617 00:28:40,440 --> 00:28:43,880 Speaker 1: would recommend Self, who actually used to be called self Lender, 618 00:28:44,200 --> 00:28:45,880 Speaker 1: and so we'll link to to their site in the 619 00:28:45,880 --> 00:28:48,400 Speaker 1: show notes as well. But they offer something that is 620 00:28:48,440 --> 00:28:51,960 Speaker 1: known as a credit builder account, where you essentially take 621 00:28:52,000 --> 00:28:54,760 Speaker 1: out a small loan from self and then you pay 622 00:28:54,800 --> 00:28:58,560 Speaker 1: yourself back. That's why they call it self uh. And 623 00:28:58,600 --> 00:29:00,840 Speaker 1: so it's just about the easiest and it's like, I mean, 624 00:29:00,880 --> 00:29:02,880 Speaker 1: the safest way to build your credit score back up 625 00:29:02,920 --> 00:29:06,480 Speaker 1: from scratch without having money up front. And then at 626 00:29:06,480 --> 00:29:08,440 Speaker 1: the end of that period of time which you've paid 627 00:29:08,440 --> 00:29:10,120 Speaker 1: that money back, you've kind of got this nice amount 628 00:29:10,120 --> 00:29:13,160 Speaker 1: of money sitting there in a c D waiting for you. Yeah. Self, 629 00:29:13,240 --> 00:29:15,880 Speaker 1: the product that came up with this genius is pretty great. Yeah, 630 00:29:15,960 --> 00:29:18,080 Speaker 1: and it's it helps a ton of people out who 631 00:29:18,440 --> 00:29:21,720 Speaker 1: have little to no credit score. And so I think 632 00:29:21,720 --> 00:29:24,440 Speaker 1: it's a perfect Becky gan. If you can do both, 633 00:29:24,480 --> 00:29:26,560 Speaker 1: do both. Have the installment loan with self, have the 634 00:29:26,560 --> 00:29:29,280 Speaker 1: credit card, the secured credit card, and you know, having 635 00:29:29,280 --> 00:29:31,480 Speaker 1: both of those things and making sure you handle both 636 00:29:31,480 --> 00:29:33,520 Speaker 1: of those products well is going to help increase your 637 00:29:33,520 --> 00:29:35,680 Speaker 1: credit score in a big way over time. Uh. And 638 00:29:35,920 --> 00:29:37,440 Speaker 1: I just want to say a note to all the 639 00:29:37,440 --> 00:29:40,440 Speaker 1: other had the money listeners as well. It's so crucial, 640 00:29:40,560 --> 00:29:42,920 Speaker 1: you know, Becky, it paid me to hear you say 641 00:29:43,160 --> 00:29:46,560 Speaker 1: that you knew, you know a lot about personal finances, 642 00:29:46,560 --> 00:29:49,000 Speaker 1: but you kind of gave the reins completely over to 643 00:29:49,040 --> 00:29:51,880 Speaker 1: your partner. And I'm sure looking back you regret that. 644 00:29:51,880 --> 00:29:54,120 Speaker 1: That's like, that's you feel like that was a mistake. 645 00:29:54,120 --> 00:29:56,480 Speaker 1: And I totally understand that in hindsight, your X was 646 00:29:56,520 --> 00:30:01,200 Speaker 1: an idiot. So we empathize with you because that's incredibly 647 00:30:01,200 --> 00:30:03,840 Speaker 1: difficult to have happened, to trust somebody and then to 648 00:30:03,880 --> 00:30:07,400 Speaker 1: see them ruin that trust by and and you know, 649 00:30:07,480 --> 00:30:10,000 Speaker 1: dissolving the marriage and then hurting your finances at the 650 00:30:10,040 --> 00:30:12,200 Speaker 1: same time. But you know, we want to just say 651 00:30:12,240 --> 00:30:14,560 Speaker 1: that it's crucial to have both partners involved, at least 652 00:30:14,560 --> 00:30:18,200 Speaker 1: to some degree in financial decisions, in budgeting, and even 653 00:30:18,240 --> 00:30:20,840 Speaker 1: if you trust your partner completely, which you know most 654 00:30:20,880 --> 00:30:24,000 Speaker 1: of us feel like we do. Um, and even if 655 00:30:24,000 --> 00:30:26,760 Speaker 1: they're brilliant with money, Like if even though my wife 656 00:30:26,880 --> 00:30:29,440 Speaker 1: like knows I've got a money podcast and we really 657 00:30:29,480 --> 00:30:31,800 Speaker 1: three episodes a week, like, she still has some si 658 00:30:31,960 --> 00:30:35,600 Speaker 1: jol he's brilliant with money, she still has a healthy 659 00:30:35,600 --> 00:30:38,720 Speaker 1: amount of skepticism towards my you know, some of my 660 00:30:38,840 --> 00:30:42,360 Speaker 1: nuttier financial ventures. And so yeah, she trust me a lot, 661 00:30:42,640 --> 00:30:45,040 Speaker 1: and I do handle most of the investment decisions, but 662 00:30:45,160 --> 00:30:47,320 Speaker 1: I always run them by her first, And she asked 663 00:30:47,320 --> 00:30:49,440 Speaker 1: good questions that actually kind of helped prode me in 664 00:30:49,440 --> 00:30:53,640 Speaker 1: the right direction, maybe from away from doing something that's 665 00:30:53,680 --> 00:30:55,400 Speaker 1: a little spur of the moment, because I'm kind of 666 00:30:55,400 --> 00:30:57,920 Speaker 1: a go with the gut kind of guy. And so yeah, 667 00:30:58,000 --> 00:31:00,760 Speaker 1: her involvement is really really crucial. She might not know 668 00:31:00,840 --> 00:31:03,080 Speaker 1: all the questions to ask, she might not have as 669 00:31:03,280 --> 00:31:06,280 Speaker 1: robust of when it comes to a personal financial knowledge 670 00:31:06,640 --> 00:31:10,080 Speaker 1: as I do, but that interplay, the way we help 671 00:31:10,120 --> 00:31:12,840 Speaker 1: each other and the way we run things by each other, 672 00:31:13,160 --> 00:31:15,520 Speaker 1: is really important. So I just suggest that, like, it 673 00:31:15,560 --> 00:31:18,040 Speaker 1: doesn't have to be an exact fifty fifty split in couples, 674 00:31:18,040 --> 00:31:20,000 Speaker 1: and it rarely will it be that. Rarely will you 675 00:31:20,040 --> 00:31:23,640 Speaker 1: both be as passionate or interested or gifted when it 676 00:31:23,640 --> 00:31:26,280 Speaker 1: comes to handling your personal finances. But I suggest a 677 00:31:26,320 --> 00:31:30,600 Speaker 1: minimum split of ten to so uh, and it's better 678 00:31:30,640 --> 00:31:33,120 Speaker 1: if it's at least in that twenty eight range. So 679 00:31:33,440 --> 00:31:37,320 Speaker 1: hopefully other listeners can hear that and apply that to 680 00:31:37,400 --> 00:31:41,400 Speaker 1: their own marriages or partnerships. But Becky, you're gonna rebuild. 681 00:31:41,480 --> 00:31:43,720 Speaker 1: You've got the knowledge, and now you're gonna take some 682 00:31:43,760 --> 00:31:46,880 Speaker 1: of these steps hopefully when it comes to rebuilding your credit, 683 00:31:47,120 --> 00:31:50,440 Speaker 1: rebuilding your financial situation, and we wish you the best 684 00:31:50,440 --> 00:31:52,960 Speaker 1: of luck. Yeah, and Becky's you know. One last thing too, 685 00:31:53,040 --> 00:31:54,719 Speaker 1: is we want to make sure that you don't have 686 00:31:54,840 --> 00:31:57,320 Speaker 1: your credit score set on this pedical as like this 687 00:31:57,400 --> 00:32:01,520 Speaker 1: be all end all of your worth. Um. It's important 688 00:32:01,560 --> 00:32:03,960 Speaker 1: certainly to build that back up, especially if you want 689 00:32:04,000 --> 00:32:07,160 Speaker 1: to purchase a home in the future. But other than that, 690 00:32:07,200 --> 00:32:10,120 Speaker 1: I mean, there aren't a a ton of different reasons 691 00:32:10,160 --> 00:32:13,440 Speaker 1: why you want to immediately rush as quickly as possible 692 00:32:13,480 --> 00:32:16,440 Speaker 1: back into having a you know, sky high, beautiful, perfect 693 00:32:16,480 --> 00:32:18,640 Speaker 1: credit score. Uh. And so we don't want you just 694 00:32:18,680 --> 00:32:20,720 Speaker 1: to completely go out of your way pay lots of 695 00:32:20,760 --> 00:32:24,840 Speaker 1: extra money uh in an attempt to rebound your credit 696 00:32:24,840 --> 00:32:27,040 Speaker 1: score as quickly as possible. It's definitely something that we 697 00:32:27,080 --> 00:32:29,800 Speaker 1: want you working towards. But at the same time, it 698 00:32:29,920 --> 00:32:32,840 Speaker 1: is not that important and not oftentimes we can focus 699 00:32:32,920 --> 00:32:35,800 Speaker 1: on these small technical things when instead maybe there are 700 00:32:35,920 --> 00:32:38,680 Speaker 1: larger things like our career are overall financial health that 701 00:32:38,680 --> 00:32:40,920 Speaker 1: we should be focusing on. So it's important, but it 702 00:32:41,080 --> 00:32:43,520 Speaker 1: is not the most important thing. Yeah, and the great 703 00:32:43,560 --> 00:32:47,440 Speaker 1: thing is time heals always really time heals credit score wounds, 704 00:32:47,560 --> 00:32:50,080 Speaker 1: time heals the emotional pain that's been inflicted. The damage 705 00:32:50,120 --> 00:32:52,240 Speaker 1: has been done. And you know, I don't think some 706 00:32:52,320 --> 00:32:55,160 Speaker 1: of these things, like especially emotional stuff and never completely 707 00:32:55,440 --> 00:32:59,160 Speaker 1: goes away. But it's amazing how you as humans were 708 00:32:59,160 --> 00:33:01,760 Speaker 1: resilient we can move forward, and so we we wish 709 00:33:01,840 --> 00:33:04,080 Speaker 1: that for you. Becky. All right, well, let's get to 710 00:33:04,160 --> 00:33:06,680 Speaker 1: a couple more questions, Matt, including one about paying off 711 00:33:06,680 --> 00:33:08,840 Speaker 1: a mortgage. Does it make sense? We'll get to that 712 00:33:09,040 --> 00:33:19,640 Speaker 1: and more right up of this break. Alright, we are back. 713 00:33:19,680 --> 00:33:22,520 Speaker 1: We've got a couple more listener questions, and first we've 714 00:33:22,560 --> 00:33:26,200 Speaker 1: got one about this sweet little perk that an employer 715 00:33:26,240 --> 00:33:29,640 Speaker 1: is offering. Hi, Joel and Matt, this is Jen from Wichita. 716 00:33:30,120 --> 00:33:32,160 Speaker 1: I have a question about how best to use my 717 00:33:32,200 --> 00:33:36,840 Speaker 1: tuition reimbursement. I just started a two years master's degree program. 718 00:33:36,880 --> 00:33:39,600 Speaker 1: I paid cash for the first semester this past summer, 719 00:33:40,000 --> 00:33:42,520 Speaker 1: and I plan to pay cash for the final summer semester, 720 00:33:42,760 --> 00:33:47,120 Speaker 1: but I'm borrowing for the spring and fall semesters. All told, 721 00:33:47,160 --> 00:33:49,680 Speaker 1: it will be about fourteen thousand dollars that I borrow. 722 00:33:50,320 --> 00:33:55,800 Speaker 1: My employer offers tuition reimbursement, that is about per fiscal year. 723 00:33:56,400 --> 00:33:59,480 Speaker 1: When I get the reimbursement from this past summer semester, 724 00:34:00,080 --> 00:34:03,400 Speaker 1: how's the best way to use this? Should I go 725 00:34:03,440 --> 00:34:06,320 Speaker 1: ahead and pay against the first loan that I've already 726 00:34:06,320 --> 00:34:09,680 Speaker 1: taken out, or should I sit on it until next 727 00:34:09,760 --> 00:34:14,200 Speaker 1: year and borrow a lesser amount or doesn't matter, visit 728 00:34:14,360 --> 00:34:16,839 Speaker 1: six and one half a dozen of the other And 729 00:34:16,880 --> 00:34:19,799 Speaker 1: then during my second year, when I get tuition reimbursement, 730 00:34:19,960 --> 00:34:22,640 Speaker 1: should I pay that towards the first loan or the 731 00:34:22,719 --> 00:34:24,960 Speaker 1: second loan, or split it in half and pay it 732 00:34:24,960 --> 00:34:28,440 Speaker 1: towards both. Thanks all right, Jenn, great question. What a 733 00:34:28,440 --> 00:34:31,359 Speaker 1: great employer perk. By the way, Matt, that yeah, and 734 00:34:31,440 --> 00:34:32,759 Speaker 1: I love that we're seeing more and more of this, 735 00:34:32,880 --> 00:34:35,399 Speaker 1: like employers are realizing, Hey, student loans are a big 736 00:34:35,400 --> 00:34:38,720 Speaker 1: problem for our workforce, and we're gonna find ways to 737 00:34:38,800 --> 00:34:41,600 Speaker 1: meet that problem with my paying people money if they 738 00:34:41,600 --> 00:34:43,759 Speaker 1: have student loan storts are getting a higher education, even 739 00:34:43,800 --> 00:34:46,799 Speaker 1: covering the cost of books. That's solid. Those books. We 740 00:34:46,840 --> 00:34:48,560 Speaker 1: know they're not cheap, and I know they're not cheap 741 00:34:48,560 --> 00:34:50,799 Speaker 1: because I just bought some for Emily. But there were 742 00:34:50,800 --> 00:34:52,359 Speaker 1: some ways, there are some ways around that. We've talked 743 00:34:52,360 --> 00:34:55,040 Speaker 1: about that before. But yeah, I do love seeing employers 744 00:34:55,120 --> 00:34:59,040 Speaker 1: investing in their workforce. And Jen, good luck with your schooling. Obviously, 745 00:34:59,120 --> 00:35:00,719 Speaker 1: we love that you're able to pay cash for a 746 00:35:00,760 --> 00:35:03,040 Speaker 1: lot of it, and that you're keeping your borrowing to 747 00:35:03,080 --> 00:35:06,040 Speaker 1: a minimum. This is gonna serve you well in the 748 00:35:06,080 --> 00:35:10,080 Speaker 1: future when you're able to, hopefully after post graduation, have 749 00:35:10,280 --> 00:35:13,120 Speaker 1: a high rate of pay and have very little money 750 00:35:13,160 --> 00:35:15,480 Speaker 1: that you owe in student loans. That's the place to be, 751 00:35:15,600 --> 00:35:17,480 Speaker 1: that's right. So let's talk about what to do with 752 00:35:17,520 --> 00:35:20,439 Speaker 1: this tuition reimbursement money. And we think that the best 753 00:35:20,480 --> 00:35:23,080 Speaker 1: choice is to use that money to pay off any 754 00:35:23,120 --> 00:35:26,080 Speaker 1: loans that you currently have right now. Uh, And that's 755 00:35:26,080 --> 00:35:29,480 Speaker 1: because your your grad school loans, they are accruing interest 756 00:35:29,719 --> 00:35:33,279 Speaker 1: like literally as we speak of the interest clock. It 757 00:35:33,360 --> 00:35:37,560 Speaker 1: starts sticking right when that loan gets made, uh, compared 758 00:35:37,600 --> 00:35:40,719 Speaker 1: to UH subsidized undergrad loans, right, because that's not the 759 00:35:40,719 --> 00:35:43,799 Speaker 1: case oftentimes that interest is paid by the governments until 760 00:35:43,840 --> 00:35:45,520 Speaker 1: you're out of school for a certain amount of time. 761 00:35:45,840 --> 00:35:48,880 Speaker 1: And so for you, though you are currently racking up interest, 762 00:35:49,000 --> 00:35:51,080 Speaker 1: and so it's a whole lot more financially savvy to 763 00:35:51,280 --> 00:35:54,120 Speaker 1: pay that lumps some directly against the loan that you 764 00:35:54,200 --> 00:35:56,640 Speaker 1: currently have, So you can slash some of those interest 765 00:35:56,760 --> 00:36:00,439 Speaker 1: costs immediately instead of keeping it and savings were you'll 766 00:36:00,440 --> 00:36:03,120 Speaker 1: be earning next to nothing. Uh. We can't think of 767 00:36:03,120 --> 00:36:05,680 Speaker 1: any benefit that would come from sitting on that money 768 00:36:05,840 --> 00:36:08,680 Speaker 1: as opposed to putting it towards your loan. Now, yeah, man, 769 00:36:08,719 --> 00:36:11,480 Speaker 1: I completely agree. And then the next tuition reimbursement, the 770 00:36:11,560 --> 00:36:13,880 Speaker 1: gen asked about, well, we would say that should go 771 00:36:13,960 --> 00:36:17,160 Speaker 1: towards paying off whichever loan has the highest interest rate. 772 00:36:17,440 --> 00:36:19,680 Speaker 1: It's likely that it will be the most recent one too, 773 00:36:19,760 --> 00:36:23,719 Speaker 1: because rates on federal student loans they actually recently went up. Right, 774 00:36:23,760 --> 00:36:27,080 Speaker 1: there's something by about a point, So I think graduate 775 00:36:27,120 --> 00:36:28,719 Speaker 1: student loans are like five and a quarter. That used 776 00:36:28,719 --> 00:36:30,600 Speaker 1: to be four in a quarter. So when it comes 777 00:36:30,600 --> 00:36:33,080 Speaker 1: to paying off of that debt, this would be considered 778 00:36:33,080 --> 00:36:35,359 Speaker 1: the debt avalanche. Since you're ranking them by interest rate, 779 00:36:35,440 --> 00:36:38,120 Speaker 1: you're looking at the numbers exactly, specifically the interest rate, 780 00:36:38,120 --> 00:36:41,120 Speaker 1: and they're probably you know, similarly sized loans. But if 781 00:36:41,120 --> 00:36:43,160 Speaker 1: there's a big enough difference in the two loan amounts, 782 00:36:43,200 --> 00:36:45,600 Speaker 1: you could also take the size of the balance into 783 00:36:45,640 --> 00:36:48,040 Speaker 1: account and you could pay down the smaller loan, which 784 00:36:48,080 --> 00:36:51,480 Speaker 1: is the debt snowball approach. But yeah, the the balances 785 00:36:51,520 --> 00:36:54,200 Speaker 1: are probably close, and the you know, interest rates aren't 786 00:36:54,200 --> 00:36:56,760 Speaker 1: too dissimilar, but focus on the one with the higher 787 00:36:56,800 --> 00:36:59,279 Speaker 1: interest you know, get after that one and make sure 788 00:36:59,360 --> 00:37:01,160 Speaker 1: that one is all the way gone before you move 789 00:37:01,160 --> 00:37:03,239 Speaker 1: on to the next one. That's the way we prefer 790 00:37:03,280 --> 00:37:05,359 Speaker 1: you to go after it, by mathematically paying the least 791 00:37:05,400 --> 00:37:08,520 Speaker 1: amount of interest possible. And one other thing to consider too, 792 00:37:08,520 --> 00:37:12,040 Speaker 1: if if your balance is manageable, maybe you should refinance 793 00:37:12,120 --> 00:37:15,040 Speaker 1: that federal loan into a private loan. Since you are 794 00:37:15,160 --> 00:37:17,359 Speaker 1: it sounds like you're really intentional with your money, and 795 00:37:17,480 --> 00:37:20,560 Speaker 1: it sounds like your balance is relatively small jen for you, 796 00:37:20,640 --> 00:37:22,960 Speaker 1: it can make a ton of sense to refi with 797 00:37:23,040 --> 00:37:25,600 Speaker 1: a private lender. You can score lower rate, and then 798 00:37:25,640 --> 00:37:28,319 Speaker 1: you can pay that loan off more quickly. So much 799 00:37:28,320 --> 00:37:30,800 Speaker 1: harder to do if you have a hundred thousand dollar balance, 800 00:37:30,840 --> 00:37:33,240 Speaker 1: But if you've got twelve tho dollars and student loans 801 00:37:33,360 --> 00:37:36,320 Speaker 1: then and you feel like that's manageable within your budget, 802 00:37:36,520 --> 00:37:38,799 Speaker 1: refining getting a lower interest rate can make a whole 803 00:37:38,840 --> 00:37:40,480 Speaker 1: lot of sense, a bit more feasible. You know that 804 00:37:40,480 --> 00:37:42,319 Speaker 1: you're going to be paying that entire balance off, and 805 00:37:42,320 --> 00:37:44,440 Speaker 1: so it's a matter of how quickly can you pay 806 00:37:44,480 --> 00:37:46,880 Speaker 1: the balance off. Yeah, we've actually gotten an article up 807 00:37:46,880 --> 00:37:49,880 Speaker 1: on the site on refinancing student loans, and we'll make 808 00:37:49,920 --> 00:37:52,200 Speaker 1: sure to link to that in our show notes. Former 809 00:37:52,239 --> 00:37:55,160 Speaker 1: guests to the show, Megan Landers. She isn't a CSLP 810 00:37:55,320 --> 00:37:58,960 Speaker 1: certified Student Loan Professional, and that means she's an expert. 811 00:37:59,239 --> 00:38:01,640 Speaker 1: So she wrote a great article up there and will 812 00:38:01,640 --> 00:38:03,520 Speaker 1: link to that in the show notes, just about when 813 00:38:03,560 --> 00:38:05,960 Speaker 1: it makes sense to refinance and where it makes sense 814 00:38:06,120 --> 00:38:09,839 Speaker 1: to go when you're considering refinancing, shopping the rates, just 815 00:38:09,920 --> 00:38:12,080 Speaker 1: a little teaser out there is the best way to go. 816 00:38:12,120 --> 00:38:15,000 Speaker 1: There's it's so easy to do now on the interwebs. 817 00:38:15,160 --> 00:38:18,600 Speaker 1: But let's let's get to the next question for this episode, Matt. 818 00:38:18,840 --> 00:38:22,160 Speaker 1: This one is from listener John, and he's kind of 819 00:38:22,200 --> 00:38:24,600 Speaker 1: ready to be done with mortgage parents. Hey guys, this 820 00:38:24,719 --> 00:38:26,360 Speaker 1: is John and Ashville. I love the show and the 821 00:38:26,360 --> 00:38:29,000 Speaker 1: beer recommendations. If you guys are Moo town, I would 822 00:38:29,000 --> 00:38:32,360 Speaker 1: love to buy a beer three at my favorite crafty spot, 823 00:38:32,600 --> 00:38:35,680 Speaker 1: jack Alo Brewery. I wanted to get your thoughts about 824 00:38:35,760 --> 00:38:39,359 Speaker 1: using my emergency fund and a helock to pay off 825 00:38:39,440 --> 00:38:42,719 Speaker 1: my mortgage and then keeping the helock around. It's my 826 00:38:42,719 --> 00:38:46,520 Speaker 1: emergency fund until I'm able to replenish that fund. About 827 00:38:46,520 --> 00:38:49,719 Speaker 1: fifty thousand remaining on my mortgage with four percent rate 828 00:38:50,520 --> 00:38:54,640 Speaker 1: with ASCAR, we pay about month about thirty forty payments left. 829 00:38:55,719 --> 00:38:59,680 Speaker 1: I have thirty thousand in my emergency Slash savings account 830 00:39:00,160 --> 00:39:03,279 Speaker 1: and again barely earning any interest. The only other dead 831 00:39:03,360 --> 00:39:06,200 Speaker 1: is a Costco viason I pay off monthly. I got 832 00:39:06,200 --> 00:39:08,200 Speaker 1: to get those rewards and I maxed out my four 833 00:39:08,239 --> 00:39:11,080 Speaker 1: in one K and both my wife and my I 834 00:39:11,280 --> 00:39:15,319 Speaker 1: ra each year. Um. The heatlock is prime plus point 835 00:39:15,320 --> 00:39:18,600 Speaker 1: to five and today's primes three point to five, but 836 00:39:18,640 --> 00:39:20,600 Speaker 1: it does have a floor four percent, so it's as 837 00:39:20,600 --> 00:39:23,520 Speaker 1: equal as my as my mortgage. I just want to 838 00:39:23,560 --> 00:39:26,839 Speaker 1: get your thoughts at the risk there. If no emergencies come, 839 00:39:26,920 --> 00:39:29,600 Speaker 1: it will be great. It will work out just fine 840 00:39:30,000 --> 00:39:33,359 Speaker 1: unless the Fed moves that prime above three point seven five. 841 00:39:33,960 --> 00:39:36,480 Speaker 1: So it's love to get your thoughts. Thanks Matt. John's 842 00:39:36,560 --> 00:39:38,520 Speaker 1: rolling with one of my favorite credit cards. So I've 843 00:39:38,560 --> 00:39:41,040 Speaker 1: got to get that Costco Visa because I mean, you 844 00:39:41,080 --> 00:39:44,720 Speaker 1: can't really beat the four percent on gasoline purchases, and 845 00:39:45,200 --> 00:39:47,440 Speaker 1: like what is the cash back also in Costco stores? 846 00:39:48,520 --> 00:39:51,359 Speaker 1: And now that I've officially um brought you into the 847 00:39:51,360 --> 00:39:53,680 Speaker 1: cult that is Costco, I think you have to go 848 00:39:53,719 --> 00:39:55,480 Speaker 1: all the way and now get the credit card. Well, 849 00:39:55,520 --> 00:39:57,800 Speaker 1: I probably will. I feel like I've gotten more targeted 850 00:39:57,840 --> 00:40:00,400 Speaker 1: with my my different credit cards, and so we might 851 00:40:00,440 --> 00:40:02,439 Speaker 1: have to make an update to the different credit cards 852 00:40:02,520 --> 00:40:06,640 Speaker 1: that we use. Hopefully it's not overlap between you and me. 853 00:40:07,080 --> 00:40:09,320 Speaker 1: But John, first of all, I gotta say I appreciate 854 00:40:09,360 --> 00:40:12,239 Speaker 1: your your dislike for debts, the desire to get rid 855 00:40:12,280 --> 00:40:15,080 Speaker 1: of your mortgage and to do so more quickly. It's 856 00:40:15,320 --> 00:40:17,760 Speaker 1: a really good desire. In a recent episode, we actually 857 00:40:17,800 --> 00:40:21,279 Speaker 1: talked about using a helock as a backup to an 858 00:40:21,280 --> 00:40:24,160 Speaker 1: emergency fund, and we do think that that is a 859 00:40:24,239 --> 00:40:27,080 Speaker 1: reasonable and not too risky of a move that can 860 00:40:27,200 --> 00:40:30,160 Speaker 1: help people to accelerate their ability to invest a little 861 00:40:30,160 --> 00:40:33,240 Speaker 1: bit more, especially with the you know, the meager returns 862 00:40:33,239 --> 00:40:36,080 Speaker 1: that folks are seeing on their savings accounts right now, 863 00:40:36,360 --> 00:40:38,440 Speaker 1: and so we're cool with that. But one thing that 864 00:40:38,480 --> 00:40:40,960 Speaker 1: we didn't hear much about in your specific question actually 865 00:40:41,040 --> 00:40:44,800 Speaker 1: was how your investments are doing, because it's probably better, 866 00:40:45,040 --> 00:40:48,600 Speaker 1: at least from a financial return standpoint, to invest more 867 00:40:49,239 --> 00:40:51,800 Speaker 1: than it's going to be to accelerate that mortgage payoff. 868 00:40:51,960 --> 00:40:54,160 Speaker 1: You know, we don't know how his investments are performing, 869 00:40:54,200 --> 00:40:56,440 Speaker 1: but my guests, it sounds like John is doing a 870 00:40:56,440 --> 00:40:59,040 Speaker 1: good job when it comes to putting money aside in 871 00:40:59,120 --> 00:41:02,239 Speaker 1: his investments, at least maxing out his retirement account. And 872 00:41:02,360 --> 00:41:04,960 Speaker 1: to me, that says a lot. But let's talk about 873 00:41:04,960 --> 00:41:07,840 Speaker 1: why investing more makes sense. It's for a few reasons. First, 874 00:41:08,080 --> 00:41:11,280 Speaker 1: your mortgage rate it's relatively low four percent. It doesn't 875 00:41:11,280 --> 00:41:13,800 Speaker 1: look as good as it used to with rates continuing 876 00:41:13,800 --> 00:41:17,880 Speaker 1: to slide, but it's still really solid. Secondly, your balance 877 00:41:18,000 --> 00:41:21,040 Speaker 1: is incredibly low, John, and since you're so far along 878 00:41:21,080 --> 00:41:23,319 Speaker 1: in that loan, you're not paying all that much an 879 00:41:23,360 --> 00:41:25,960 Speaker 1: interest because you got most of that all out of 880 00:41:25,960 --> 00:41:28,759 Speaker 1: the way already. Like when you look at what how 881 00:41:28,840 --> 00:41:31,720 Speaker 1: much money is going to the interest versus the principle, 882 00:41:32,000 --> 00:41:33,960 Speaker 1: it's a lot of money towards the interest at the 883 00:41:34,000 --> 00:41:36,440 Speaker 1: beginning of your loan, and it's way way less. It's 884 00:41:36,480 --> 00:41:39,040 Speaker 1: so much going towards principle at the end, and you're 885 00:41:39,120 --> 00:41:41,160 Speaker 1: on the tail end, which means that most of your 886 00:41:41,160 --> 00:41:44,440 Speaker 1: money is not going towards those interest payments, right, and 887 00:41:44,480 --> 00:41:46,799 Speaker 1: that makes it less helpful to actually rush to pay 888 00:41:46,840 --> 00:41:49,320 Speaker 1: it off. So going through these steps in an attempt 889 00:41:49,320 --> 00:41:52,520 Speaker 1: to technically be mortgage free, while it might make sense 890 00:41:52,600 --> 00:41:55,879 Speaker 1: from an emotional standpoint, it's not necessarily the best move 891 00:41:55,920 --> 00:41:58,239 Speaker 1: when you're looking at the numbers. We'd rather see you 892 00:41:58,239 --> 00:42:00,880 Speaker 1: pay that mortgage off over the next thirty nine months 893 00:42:00,880 --> 00:42:03,600 Speaker 1: as agreed and increase the money that you're investing instead, 894 00:42:03,920 --> 00:42:07,000 Speaker 1: because of how favorable the terms are at this point 895 00:42:07,040 --> 00:42:10,240 Speaker 1: for you. Yeah, the way the amateurization schedule works, John, 896 00:42:10,560 --> 00:42:12,879 Speaker 1: basically you're paying like pennies on the dollar right now? 897 00:42:12,960 --> 00:42:17,960 Speaker 1: Right do you say amorgization three times fast? Pat amateurization, amateurization, amateurization. 898 00:42:19,080 --> 00:42:21,160 Speaker 1: It did some different when I said it through testation, 899 00:42:22,440 --> 00:42:24,799 Speaker 1: But John, I mean seriously, so little money right now 900 00:42:24,880 --> 00:42:27,880 Speaker 1: is going towards interest that even though technically you do 901 00:42:28,040 --> 00:42:31,200 Speaker 1: have a four percent mortgage, you are effectively paying way 902 00:42:31,360 --> 00:42:34,800 Speaker 1: less than four percent currently for these last thirty nine payments. 903 00:42:34,960 --> 00:42:37,239 Speaker 1: Like you know, for a thirty year mortgage. Actually there's 904 00:42:37,239 --> 00:42:39,239 Speaker 1: like this tipping point and it's not until about year 905 00:42:39,320 --> 00:42:42,000 Speaker 1: seven where the money that you're putting down that's going 906 00:42:42,000 --> 00:42:44,200 Speaker 1: towards your balance is actually more than the amount that's 907 00:42:44,200 --> 00:42:46,719 Speaker 1: going towards interest. And obviously you are well past that 908 00:42:46,760 --> 00:42:48,959 Speaker 1: seven year mark well, assuming that you have a thirty 909 00:42:49,040 --> 00:42:51,480 Speaker 1: year mortgage. But John, this is definitely something important to 910 00:42:51,520 --> 00:42:53,879 Speaker 1: keep in mind for you. And the other thing too 911 00:42:54,200 --> 00:42:56,719 Speaker 1: is that, I mean basically John is in money here 912 00:42:56,800 --> 00:42:58,799 Speaker 1: seven right like he and his wife like that. They 913 00:42:58,840 --> 00:43:00,799 Speaker 1: are maxing out the retirement of ounce. They've got a 914 00:43:00,800 --> 00:43:03,440 Speaker 1: great emergency funding place. Their mortgage is not going to 915 00:43:03,560 --> 00:43:07,360 Speaker 1: be around for much longer. Really, they could probably go 916 00:43:07,400 --> 00:43:09,800 Speaker 1: in any direction that they want from here. All the 917 00:43:09,840 --> 00:43:12,640 Speaker 1: options are great. The world is the oyster, And said John, 918 00:43:12,680 --> 00:43:15,120 Speaker 1: if you have a desire to invest more of that money, 919 00:43:15,360 --> 00:43:17,800 Speaker 1: we'd say to open up a brokerage account and start 920 00:43:17,920 --> 00:43:20,200 Speaker 1: investing more. If you want to pay off your mortgage 921 00:43:20,239 --> 00:43:22,439 Speaker 1: instead you want to go hard in that direction, that's 922 00:43:22,440 --> 00:43:24,400 Speaker 1: fine too, if you want to kind of feel some 923 00:43:24,440 --> 00:43:27,400 Speaker 1: of those emotional wins, But going the heelock route to 924 00:43:27,400 --> 00:43:30,120 Speaker 1: do so, it just doesn't make sense mathematically based on 925 00:43:30,200 --> 00:43:32,480 Speaker 1: where you are within the life of your loan. For 926 00:43:32,520 --> 00:43:34,440 Speaker 1: your case specifically, we would say that you just air 927 00:43:34,480 --> 00:43:36,400 Speaker 1: on the slide of simplicity rather than going down the 928 00:43:36,440 --> 00:43:39,720 Speaker 1: path of opening that helock. Yeah, no doubt. But John, seriously, 929 00:43:40,200 --> 00:43:43,319 Speaker 1: there are so many options available to you. Thirty nine 930 00:43:43,360 --> 00:43:47,040 Speaker 1: months left on your mortgage is incredible, and the fact 931 00:43:47,040 --> 00:43:48,560 Speaker 1: that you're gonna be able to pay it off in 932 00:43:48,719 --> 00:43:50,480 Speaker 1: a whole lot less than that if you want to, 933 00:43:51,200 --> 00:43:53,680 Speaker 1: is really cool, and that's a big financial win. But 934 00:43:53,760 --> 00:43:55,719 Speaker 1: jump at the roofs and potentially paying more to the 935 00:43:55,760 --> 00:43:58,560 Speaker 1: banks by opening a helock just doesn't make sense for you, 936 00:43:58,640 --> 00:44:00,840 Speaker 1: we don't think. But the cool thing about being in 937 00:44:00,840 --> 00:44:03,719 Speaker 1: money gear seven, Matt. We've talked about this is that 938 00:44:03,800 --> 00:44:05,960 Speaker 1: you can start to spend more, you can start to 939 00:44:05,960 --> 00:44:08,200 Speaker 1: give more money away. There's so many options when you 940 00:44:08,239 --> 00:44:09,960 Speaker 1: get to this point, and so I want John to 941 00:44:10,000 --> 00:44:12,480 Speaker 1: think a little bit bigger than just like paying off 942 00:44:12,480 --> 00:44:15,359 Speaker 1: the mortgage in as rapid of fashion as possible. Like, 943 00:44:15,680 --> 00:44:18,040 Speaker 1: start thinking, John about what you want your life to 944 00:44:18,080 --> 00:44:20,560 Speaker 1: look like and how you want to funnel the vast 945 00:44:20,560 --> 00:44:22,720 Speaker 1: amount of money you've been able to save over time, 946 00:44:23,080 --> 00:44:26,040 Speaker 1: especially without having a mortgage, You're gonna have more room 947 00:44:26,080 --> 00:44:28,000 Speaker 1: in your budget. Where do you want that money to go? 948 00:44:28,239 --> 00:44:31,279 Speaker 1: Those are good questions to start asking. Now. Yeah, over 949 00:44:31,280 --> 00:44:33,759 Speaker 1: the next three years, that's gonna be hopefully plenty of 950 00:44:33,800 --> 00:44:35,400 Speaker 1: time for you to kind of start thinking about what 951 00:44:35,440 --> 00:44:38,040 Speaker 1: your life is gonna look like, right for sure? All right, Matt, 952 00:44:38,080 --> 00:44:39,520 Speaker 1: let's get back to the beer that we had on 953 00:44:39,560 --> 00:44:41,759 Speaker 1: this episode. This one, of course, had a weird name 954 00:44:41,760 --> 00:44:44,799 Speaker 1: because it was brewed by Burial Brewing, and this one 955 00:44:44,840 --> 00:44:48,880 Speaker 1: is called Beneath the Tides of Relative Impermanence. It's a 956 00:44:48,960 --> 00:44:51,239 Speaker 1: double I p A. What are your thoughts on this one? Well, 957 00:44:51,280 --> 00:44:52,759 Speaker 1: I've got to say that I feel like this is 958 00:44:53,000 --> 00:44:55,560 Speaker 1: just as delicious now here in a can as it 959 00:44:55,640 --> 00:44:58,879 Speaker 1: was in person on draft. Kate and I we picked 960 00:44:58,960 --> 00:45:01,759 Speaker 1: up this beer back when we took a little anniversary 961 00:45:01,760 --> 00:45:04,080 Speaker 1: trip up to Asheville, North Carolina, one of our favorite 962 00:45:04,080 --> 00:45:07,080 Speaker 1: little kind of getaway cities to head off to. But dude, 963 00:45:07,080 --> 00:45:09,759 Speaker 1: this was such a good New England style double dry 964 00:45:09,800 --> 00:45:13,080 Speaker 1: hopped I p A. It had so much of that sharp, 965 00:45:13,080 --> 00:45:16,000 Speaker 1: hoppy funkiness going on that we so often look for 966 00:45:16,120 --> 00:45:18,200 Speaker 1: when it comes to these different New England style I 967 00:45:18,280 --> 00:45:20,400 Speaker 1: p A s. And so, yeah, I'm not gonna talk 968 00:45:20,440 --> 00:45:23,040 Speaker 1: about the tasting notes as much, but it's just definitely 969 00:45:23,400 --> 00:45:25,000 Speaker 1: there's a good reason why this is a go to 970 00:45:25,120 --> 00:45:27,480 Speaker 1: style for both you and I. And instead I kind 971 00:45:27,480 --> 00:45:29,759 Speaker 1: of want to focus on the can art because their 972 00:45:29,840 --> 00:45:31,960 Speaker 1: art is always pretty awesome, right, This one was like 973 00:45:32,000 --> 00:45:34,640 Speaker 1: Salvador Dolly, Yes, Yes, And I was gonna say, actually, 974 00:45:35,000 --> 00:45:37,880 Speaker 1: speaking of art, Matt, this beer was almost like a 975 00:45:37,920 --> 00:45:39,040 Speaker 1: work of art. It was that good. And you know 976 00:45:39,080 --> 00:45:41,480 Speaker 1: how when you see something that's like amazing hanging up 977 00:45:41,480 --> 00:45:43,640 Speaker 1: on the wall and you're kind of speechless. I think 978 00:45:43,640 --> 00:45:45,200 Speaker 1: that's why you didn't have a lot of tasting notes. 979 00:45:45,239 --> 00:45:48,040 Speaker 1: Why in same here, I'm like, it was just that good, 980 00:45:48,160 --> 00:45:52,600 Speaker 1: like when you experience something that's close to Nirvanic. Yeah, 981 00:45:52,760 --> 00:45:55,480 Speaker 1: this beer was that. So I don't have much else 982 00:45:55,520 --> 00:45:58,080 Speaker 1: to share either on the way it tasted, like, the 983 00:45:58,200 --> 00:46:02,080 Speaker 1: art looks amazing. I love what the Salvador Dolly piece, 984 00:46:02,200 --> 00:46:04,680 Speaker 1: the persistence of memory or whatever and this this one 985 00:46:04,719 --> 00:46:07,160 Speaker 1: definitely had that vibe and get the melting clock actually 986 00:46:07,200 --> 00:46:08,920 Speaker 1: going on there on the label and the beer just 987 00:46:09,000 --> 00:46:11,239 Speaker 1: kind of melted this phenomenal. Basically, we should just quit 988 00:46:11,239 --> 00:46:13,319 Speaker 1: while we're ahead, right right, Yeah, all right, so we 989 00:46:13,320 --> 00:46:15,719 Speaker 1: will quit for today. Uh And if you have a 990 00:46:15,840 --> 00:46:18,080 Speaker 1: question that you want to, yeah for a Matt and 991 00:46:18,080 --> 00:46:20,520 Speaker 1: I to take on an upcoming ask kind of money episode, 992 00:46:20,520 --> 00:46:21,920 Speaker 1: we would love to hear it, just go to how 993 00:46:21,920 --> 00:46:24,919 Speaker 1: to Money dot com slash ask submit it there and yeah, 994 00:46:24,960 --> 00:46:26,880 Speaker 1: hopefully we'll take it. Two weeks from today, we'll go 995 00:46:26,880 --> 00:46:28,160 Speaker 1: ahead and wrap this one up so you can get 996 00:46:28,160 --> 00:46:30,400 Speaker 1: to the next podcast episode that you're gonna listen to. 997 00:46:30,440 --> 00:46:32,320 Speaker 1: You but look us up on Instagram if you haven't recently. 998 00:46:32,320 --> 00:46:34,600 Speaker 1: We're gonna try to share some more personal stuff like 999 00:46:34,640 --> 00:46:36,640 Speaker 1: we've been doing over the last couple of weeks. You 1000 00:46:36,680 --> 00:46:38,640 Speaker 1: can find us there under the user name of how 1001 00:46:38,680 --> 00:46:41,400 Speaker 1: to Money Pod Joel. That's gonna be a buddy until 1002 00:46:41,600 --> 00:46:44,399 Speaker 1: next time. Best Friends Out, Best Friends Out.