1 00:00:00,040 --> 00:00:03,480 Speaker 1: Why hello there, Matt. I was like, going, man, all right, 2 00:00:03,520 --> 00:00:05,280 Speaker 1: so we've never started a show like that. I know 3 00:00:05,400 --> 00:00:07,880 Speaker 1: this is a weird beginning, but there's a reason for that. 4 00:00:07,920 --> 00:00:11,119 Speaker 1: This is our first bestie episode, and the reason that 5 00:00:11,160 --> 00:00:13,960 Speaker 1: we're releasing what we're calling a bestie episode is there's 6 00:00:13,960 --> 00:00:16,280 Speaker 1: there's no reason for it, no reason, yeah, other than 7 00:00:16,320 --> 00:00:17,520 Speaker 1: you and I just we want to be able to 8 00:00:17,560 --> 00:00:19,119 Speaker 1: kick back and hanging on the porch and have a 9 00:00:19,160 --> 00:00:22,440 Speaker 1: beer without talking. Right, No, man, I got diapers to change, now, Okay, 10 00:00:22,480 --> 00:00:25,280 Speaker 1: both of us do. That's right. Our babies have been born, 11 00:00:25,760 --> 00:00:28,720 Speaker 1: so we're pretty excited. We got two little dudes each, No, 12 00:00:28,960 --> 00:00:31,280 Speaker 1: just one each one each. You've do total. You've got 13 00:00:31,280 --> 00:00:34,320 Speaker 1: Ezra David. That's right, Yeah, Ezra David. He was born 14 00:00:34,680 --> 00:00:37,840 Speaker 1: just like his dad, super long, super skinny, so twenty 15 00:00:37,840 --> 00:00:41,159 Speaker 1: two inches long, d percent for height already. It's a 16 00:00:41,280 --> 00:00:44,040 Speaker 1: joy having him around. But the sleepless nights, it's kind 17 00:00:44,040 --> 00:00:45,920 Speaker 1: of one of those things. It's a jarring experience to 18 00:00:45,920 --> 00:00:47,760 Speaker 1: have a new boy. Yeah, I forgot you did it 19 00:00:47,760 --> 00:00:50,440 Speaker 1: more recently than me. Yeah. It feels awesome now kind 20 00:00:50,440 --> 00:00:53,000 Speaker 1: of being a family five, whereas before we were just four. Man, 21 00:00:53,040 --> 00:00:55,800 Speaker 1: I forget how sort of physically ill I feel when 22 00:00:55,800 --> 00:00:57,320 Speaker 1: I don't get enough sleep, Like I wake up in 23 00:00:57,320 --> 00:00:58,800 Speaker 1: the morning when I haven't gotten a lot of sleep, 24 00:00:58,840 --> 00:01:00,400 Speaker 1: and I literally feel like I'm gonna throw up, like 25 00:01:00,440 --> 00:01:04,360 Speaker 1: I feel nauseous. But yeah, Weston James, he has joined 26 00:01:04,400 --> 00:01:07,040 Speaker 1: our family as well. At the moment. He's got those 27 00:01:07,040 --> 00:01:09,720 Speaker 1: bright blue eyes, which is odd because neither my wife 28 00:01:09,920 --> 00:01:11,920 Speaker 1: or I have blue eyes. Were loving it. We think 29 00:01:11,920 --> 00:01:14,440 Speaker 1: it's the best thing ever. Both your wife and Kate, 30 00:01:14,520 --> 00:01:17,480 Speaker 1: my wife, they're doing awesome. Healthy babies, healthy mamas. We 31 00:01:17,480 --> 00:01:20,440 Speaker 1: could not be any happier. Quick question for you. Have 32 00:01:20,560 --> 00:01:24,360 Speaker 1: you been initiated yet by your son on the changing table? Oh? Yeah, 33 00:01:24,360 --> 00:01:27,400 Speaker 1: you know talking about so we've only had daughters. Apparently 34 00:01:27,480 --> 00:01:29,880 Speaker 1: when you have a boy and you're changing the diaper, 35 00:01:30,000 --> 00:01:33,679 Speaker 1: you gotta cover up. And my wife totally got initiated 36 00:01:33,720 --> 00:01:35,680 Speaker 1: when all over the place, my wife and oldest daughter, 37 00:01:36,520 --> 00:01:38,440 Speaker 1: she was like watching and then she's like, wait, whoa, 38 00:01:38,520 --> 00:01:42,040 Speaker 1: it's going upwhere? Yeah? Yeah, Weston all over himself, all 39 00:01:42,120 --> 00:01:44,440 Speaker 1: over the table, all over the wall. You hear stories 40 00:01:44,440 --> 00:01:46,080 Speaker 1: about it and you think, sure, I guess that will 41 00:01:46,080 --> 00:01:48,880 Speaker 1: happen at some point, But it's still incredibly surprising, and 42 00:01:48,960 --> 00:01:51,320 Speaker 1: you learn quickly to have an extra cloth there to 43 00:01:51,360 --> 00:01:53,080 Speaker 1: be able to cover up while you're changing that diaper. 44 00:01:53,160 --> 00:01:55,800 Speaker 1: So no word to the wise. Nobody ever expects to 45 00:01:55,800 --> 00:01:58,680 Speaker 1: get urinated on, and then it happens. PM. Man, these boys, 46 00:01:58,680 --> 00:02:00,720 Speaker 1: we got them together the other day. They're awesome. It's 47 00:02:00,720 --> 00:02:02,600 Speaker 1: gonna be so much fun having sons and Dude, they 48 00:02:02,600 --> 00:02:04,360 Speaker 1: were only born two days apart, so I'm pretty sure 49 00:02:04,360 --> 00:02:06,680 Speaker 1: they're gonna be best friends too. And I'm just excited 50 00:02:06,720 --> 00:02:09,800 Speaker 1: to hear their podcast about like passifiers and onesies. That's 51 00:02:09,919 --> 00:02:12,520 Speaker 1: what that newborn life is all about. Man. But speaking 52 00:02:12,560 --> 00:02:15,280 Speaker 1: of episodes, speaking of podcasts, this is gonna be our 53 00:02:15,320 --> 00:02:18,400 Speaker 1: first bestie episode, and we are releasing this one again. 54 00:02:18,520 --> 00:02:21,800 Speaker 1: This is the recession Proofing your Finances episode. Man, this 55 00:02:21,840 --> 00:02:23,840 Speaker 1: is gonna be our first best episode. And this was 56 00:02:23,880 --> 00:02:26,920 Speaker 1: all about getting your your personal finances in order. Yeah, 57 00:02:26,919 --> 00:02:29,040 Speaker 1: basically on this episode, we talked about how to view 58 00:02:29,120 --> 00:02:33,000 Speaker 1: your employment in light of a potential upcoming recession, how 59 00:02:33,040 --> 00:02:36,040 Speaker 1: to think about investing when a recession is potentially looming, 60 00:02:36,200 --> 00:02:38,600 Speaker 1: and Matt, We've gotten so many questions, so many people 61 00:02:38,880 --> 00:02:42,320 Speaker 1: concerned because headlines CNBC, there's a lot of recession talk. 62 00:02:42,320 --> 00:02:44,120 Speaker 1: A lot of people are worried, and so I think 63 00:02:44,160 --> 00:02:46,160 Speaker 1: there are some solid steps that people can take that 64 00:02:46,200 --> 00:02:48,400 Speaker 1: we outline in this episode that can be really helpful 65 00:02:48,600 --> 00:02:50,720 Speaker 1: for folks to to consider and to implement so that 66 00:02:50,760 --> 00:02:53,280 Speaker 1: they feel a little sturdier. And you know what, even 67 00:02:53,320 --> 00:02:56,320 Speaker 1: if a recession doesn't hit, even if the economy stays 68 00:02:56,400 --> 00:02:59,320 Speaker 1: chugging along, these are not bad things to think about anyway. 69 00:02:59,400 --> 00:03:01,680 Speaker 1: So we got eight responses from listeners when this was 70 00:03:01,720 --> 00:03:04,400 Speaker 1: originally released, and I know we've got a lot of 71 00:03:04,440 --> 00:03:06,720 Speaker 1: new listeners who haven't delve back this far, and so 72 00:03:06,760 --> 00:03:08,240 Speaker 1: I think there are a lot of good nuggets in 73 00:03:08,280 --> 00:03:10,679 Speaker 1: here for for everybody. Yeah, it's just great to have 74 00:03:10,840 --> 00:03:13,320 Speaker 1: a solid grasp of the fundamentals, regardless of what the 75 00:03:13,680 --> 00:03:16,200 Speaker 1: market and regardless of what the economy is doing. These 76 00:03:16,200 --> 00:03:18,600 Speaker 1: are the building blocks of our financial lives. And so, 77 00:03:18,720 --> 00:03:21,880 Speaker 1: without further ado, we hope that you enjoyed this episode. 78 00:03:21,960 --> 00:03:23,560 Speaker 1: All right, now, I'm gonna go get some cuddle time 79 00:03:23,600 --> 00:03:26,680 Speaker 1: with my little dude. Welcome to How to Money. I'm Joel, 80 00:03:26,880 --> 00:03:49,800 Speaker 1: I'm Matt, and today we're talking about recession proofing your finances. So, Joel, 81 00:03:49,840 --> 00:03:53,600 Speaker 1: I know how much you love diapers where I'm all 82 00:03:53,640 --> 00:03:57,520 Speaker 1: the time, Dude, I'm going to mention a personal fail, 83 00:03:57,680 --> 00:03:59,760 Speaker 1: which is my my wife and I, Kate and I, 84 00:03:59,840 --> 00:04:02,400 Speaker 1: we thought that twenty nineteen would be the year that 85 00:04:02,440 --> 00:04:05,240 Speaker 1: we kicked diapers to the curb. Our third daughter just 86 00:04:05,320 --> 00:04:07,200 Speaker 1: turned two, and we thought, you know what, it might 87 00:04:07,240 --> 00:04:09,440 Speaker 1: be time. We think she's she's pretty smart, she's pretty sharp, 88 00:04:09,840 --> 00:04:11,760 Speaker 1: she's pretty with it, and get her on that potty 89 00:04:11,760 --> 00:04:14,520 Speaker 1: train band wide. Yes exactly. Well, she's got two older sisters, 90 00:04:14,520 --> 00:04:16,159 Speaker 1: and we thought with her seeing it all the time, 91 00:04:16,240 --> 00:04:19,400 Speaker 1: she'd be ready for it. And I was really excited 92 00:04:19,400 --> 00:04:21,680 Speaker 1: about being able to cut diapers from the budget. And 93 00:04:21,880 --> 00:04:23,560 Speaker 1: and I talked about it, and we decided that if 94 00:04:23,600 --> 00:04:25,960 Speaker 1: we were going to cut diapers, that we would keep 95 00:04:26,000 --> 00:04:28,039 Speaker 1: that amount of money in the budget and then just 96 00:04:28,080 --> 00:04:29,640 Speaker 1: be able to eat a little bit nicer. So we're 97 00:04:29,640 --> 00:04:32,880 Speaker 1: not actually increasing our food budget, but we would be 98 00:04:32,920 --> 00:04:36,760 Speaker 1: able to get say, nicer cheese, is nicer meets the sharkutie, 99 00:04:37,080 --> 00:04:41,000 Speaker 1: to get to eat the diaper money. Yeah exactly, But man, 100 00:04:41,040 --> 00:04:43,479 Speaker 1: we totally failed. We we came back at the beginning 101 00:04:43,480 --> 00:04:46,640 Speaker 1: of the year, beginning of January, and we're hoping that yeah, 102 00:04:46,720 --> 00:04:48,680 Speaker 1: we'd be able to kick it off. But that's not 103 00:04:48,720 --> 00:04:51,480 Speaker 1: on you. That's on Dottie. Okay, that's her fault, and 104 00:04:51,560 --> 00:04:53,080 Speaker 1: I will talk to her about it. She needs upper 105 00:04:53,120 --> 00:04:56,400 Speaker 1: game in all fairness, though she's only twenty four months, 106 00:04:56,600 --> 00:04:58,760 Speaker 1: and with the other girls, we waited until I think 107 00:04:58,800 --> 00:05:01,160 Speaker 1: like twenty six and maybe twenty eight months, but we 108 00:05:01,240 --> 00:05:02,680 Speaker 1: just we just thought we were ready. We thought she 109 00:05:02,720 --> 00:05:05,520 Speaker 1: could handle it. And really we're most excited about being 110 00:05:05,520 --> 00:05:08,200 Speaker 1: able to cut diapers from the budget. So who knows, man, 111 00:05:08,200 --> 00:05:09,440 Speaker 1: it might be a few more months now that we're 112 00:05:09,480 --> 00:05:12,920 Speaker 1: gonna rock those diapers and no nice cheese. Is any 113 00:05:12,960 --> 00:05:15,640 Speaker 1: parents out there listening, They totally know or remember the 114 00:05:16,240 --> 00:05:19,120 Speaker 1: potty training stage, And it's different for every kid. Like 115 00:05:19,160 --> 00:05:22,920 Speaker 1: I swear our first daughter, Selma, like overnight, she had 116 00:05:22,960 --> 00:05:26,320 Speaker 1: like one accident maybe, but no overnight accidents. It was amazing. 117 00:05:26,400 --> 00:05:28,560 Speaker 1: And then our second daughter still did pretty well, but 118 00:05:28,800 --> 00:05:30,560 Speaker 1: it was completely different. It took a lot longer than 119 00:05:30,600 --> 00:05:32,560 Speaker 1: we thought and we had to keep wearing the pull 120 00:05:32,600 --> 00:05:34,920 Speaker 1: ups at night, and so it's different for every kid, 121 00:05:34,960 --> 00:05:36,839 Speaker 1: and some kids don't get it till later, and some kids, 122 00:05:36,839 --> 00:05:39,080 Speaker 1: well boys as well, Like yeah, with boys, it takes 123 00:05:39,200 --> 00:05:41,280 Speaker 1: much longer. So typically, I mean a lot of times 124 00:05:41,320 --> 00:05:43,160 Speaker 1: I think boys are around three years old before they 125 00:05:43,160 --> 00:05:45,440 Speaker 1: even consider potty training. But yeah, like it said, it's 126 00:05:45,440 --> 00:05:47,000 Speaker 1: different for all kids. So you were just hoping that 127 00:05:47,080 --> 00:05:50,200 Speaker 1: dotty was like a bathroom Mozart, like a proud of basically, yeah, 128 00:05:50,440 --> 00:05:53,039 Speaker 1: we we were even ambitious enough to say, do we 129 00:05:53,080 --> 00:05:54,919 Speaker 1: even need to pull up the little toy potty, you know, 130 00:05:54,960 --> 00:05:57,159 Speaker 1: like the little kid one, because she would climb up 131 00:05:57,320 --> 00:06:00,159 Speaker 1: onto the stool and hop up on the on the 132 00:06:00,160 --> 00:06:03,200 Speaker 1: toilet like the big girls do. Nope, Ye, huge fail. 133 00:06:04,080 --> 00:06:06,640 Speaker 1: All right, speaking of goals, so we're you're well into 134 00:06:06,720 --> 00:06:09,000 Speaker 1: January at this point, but I think it's okay for 135 00:06:09,040 --> 00:06:11,560 Speaker 1: people still to set a goal to kind of improve 136 00:06:11,680 --> 00:06:14,320 Speaker 1: in a way in one way or another. And I 137 00:06:14,360 --> 00:06:16,720 Speaker 1: think sometimes maybe at this point, maybe you're two and 138 00:06:16,720 --> 00:06:18,279 Speaker 1: half weeks in and you've already failed at a goal 139 00:06:18,360 --> 00:06:21,400 Speaker 1: or two like Dottie did, right, Dottie completely failed. Yeah, 140 00:06:21,440 --> 00:06:24,240 Speaker 1: it just fell flat on her face. Yeah, so maybe 141 00:06:24,240 --> 00:06:26,200 Speaker 1: you haven't met your goal. I think, like we talked 142 00:06:26,200 --> 00:06:28,200 Speaker 1: about in the Creating a Money roadmap, sometimes it's those 143 00:06:28,240 --> 00:06:30,440 Speaker 1: little things. It's it's not necessarily the end goal that 144 00:06:30,520 --> 00:06:32,120 Speaker 1: is the good goal to have. It's it's the little 145 00:06:32,120 --> 00:06:33,920 Speaker 1: incremental things that you can do along the way they're 146 00:06:33,920 --> 00:06:36,200 Speaker 1: going to help you achieve that bigger goal. And one 147 00:06:36,240 --> 00:06:38,040 Speaker 1: thing I wanted to mention that's been kind of helpful 148 00:06:38,040 --> 00:06:40,880 Speaker 1: to me recently is when I really need to buckle 149 00:06:40,920 --> 00:06:43,279 Speaker 1: down and get some work done is putting my phone 150 00:06:43,360 --> 00:06:46,720 Speaker 1: in airplane mode. And just like I mentioned a long 151 00:06:46,800 --> 00:06:49,120 Speaker 1: time ago that it's been helpful for me to put 152 00:06:49,120 --> 00:06:51,720 Speaker 1: my phone in gray scale mode because I just want 153 00:06:51,760 --> 00:06:53,960 Speaker 1: to look at it less. It just makes me less 154 00:06:54,320 --> 00:06:57,000 Speaker 1: interested in looking at Instagram or Facebook. In the same 155 00:06:57,040 --> 00:06:59,479 Speaker 1: way again, if I really want to buffle down at work, 156 00:06:59,520 --> 00:07:01,720 Speaker 1: it makes it look like a kindle, which exactly I 157 00:07:01,839 --> 00:07:05,560 Speaker 1: tell you that I got my kindle by the all right, anyway, 158 00:07:05,600 --> 00:07:07,840 Speaker 1: sorry to interrupt. So yeah, I mean, I think for 159 00:07:07,880 --> 00:07:09,640 Speaker 1: anybody that really wants to buffle down and get something 160 00:07:09,680 --> 00:07:12,160 Speaker 1: done and they feel like their phone is constantly distracting them, 161 00:07:12,320 --> 00:07:15,400 Speaker 1: you know, set an hour or two hours or even 162 00:07:15,440 --> 00:07:17,760 Speaker 1: just thirty minutes in a row of having your phone 163 00:07:17,760 --> 00:07:19,960 Speaker 1: on airplane mode, you'll just kind of forget that it's 164 00:07:19,960 --> 00:07:22,920 Speaker 1: even there, and you'll you'll actually get more done. Because 165 00:07:22,920 --> 00:07:25,400 Speaker 1: we don't realize how how often we're interrupted by our phone, 166 00:07:25,400 --> 00:07:27,800 Speaker 1: by a text message, by notification, by an alert, and 167 00:07:27,880 --> 00:07:29,720 Speaker 1: so just kind of putting it completely out of sight, 168 00:07:29,760 --> 00:07:31,240 Speaker 1: out of mind is like a great way to kind 169 00:07:31,280 --> 00:07:34,000 Speaker 1: of boost your productivity. Yeah, man, I totally agree, you know, 170 00:07:34,080 --> 00:07:36,720 Speaker 1: And past few months, I've actually had my phone on 171 00:07:37,120 --> 00:07:39,320 Speaker 1: when it's on silent mode that it doesn't vibrate, so 172 00:07:39,320 --> 00:07:42,160 Speaker 1: it's basically completely silent. Which the reason I did that 173 00:07:42,240 --> 00:07:44,080 Speaker 1: was because I would have my phone sitting on my desk, 174 00:07:44,560 --> 00:07:46,400 Speaker 1: and you know, you get all the spam calls and 175 00:07:46,400 --> 00:07:48,200 Speaker 1: you can recognize them because their area codes that you 176 00:07:48,200 --> 00:07:51,240 Speaker 1: don't recognize. But I still would reach over towards it 177 00:07:51,320 --> 00:07:53,040 Speaker 1: to silence. It would hit the little button to make 178 00:07:53,040 --> 00:07:55,640 Speaker 1: it stop vibrating because I don't want to burn my battery. 179 00:07:55,880 --> 00:07:58,720 Speaker 1: But just the fact of reaching towards my phone, I 180 00:07:58,720 --> 00:08:00,640 Speaker 1: would kind of pick it up and then hop over 181 00:08:00,680 --> 00:08:03,200 Speaker 1: to an app and it would Yeah, it was another distraction. 182 00:08:03,360 --> 00:08:05,800 Speaker 1: It's a total attention breaker. Yeah, But that being said, 183 00:08:05,800 --> 00:08:07,960 Speaker 1: it doesn't break my attention nearly as much if it 184 00:08:07,960 --> 00:08:09,680 Speaker 1: just kind of pops up if I see the notification, 185 00:08:09,920 --> 00:08:11,640 Speaker 1: because I won't reach for it. For for me, it 186 00:08:11,720 --> 00:08:14,000 Speaker 1: was the physical act of reaching towards it is what 187 00:08:14,080 --> 00:08:16,280 Speaker 1: threw me off. But I can kind of dart my 188 00:08:16,320 --> 00:08:18,360 Speaker 1: eyes over and see that it's just an unknown caller 189 00:08:18,440 --> 00:08:20,600 Speaker 1: or a number I don't recognize and keep moving on 190 00:08:20,640 --> 00:08:22,000 Speaker 1: with life. But yeah, I'm with you, man, If I 191 00:08:22,040 --> 00:08:24,800 Speaker 1: need to really buckle down, flipping it over to airplane 192 00:08:24,800 --> 00:08:27,120 Speaker 1: mode is is truly the only way just to to 193 00:08:27,160 --> 00:08:30,480 Speaker 1: get quality, deep work done, which is which is key. Yeah, 194 00:08:30,520 --> 00:08:33,440 Speaker 1: And sometimes, honestly, doing something like that actually means you 195 00:08:33,520 --> 00:08:36,079 Speaker 1: might have fewer hours of work that you actually have 196 00:08:36,120 --> 00:08:38,960 Speaker 1: to put in, because if you're more productive while you're 197 00:08:38,960 --> 00:08:41,080 Speaker 1: working with your phone and airplane mode, you might not 198 00:08:41,120 --> 00:08:43,120 Speaker 1: have to work as many hours in the day because 199 00:08:43,120 --> 00:08:45,000 Speaker 1: the hours you're working are so much more productive now 200 00:08:45,040 --> 00:08:46,880 Speaker 1: you don't have that restart time. They say that anytime 201 00:08:46,920 --> 00:08:48,720 Speaker 1: you have a break in your concentration like that, sometimes 202 00:08:48,760 --> 00:08:50,839 Speaker 1: they can take up to fifteen minutes to kind of 203 00:08:50,840 --> 00:08:53,040 Speaker 1: get your train of thought back completely where you're back 204 00:08:53,040 --> 00:08:55,520 Speaker 1: in the groove. And man, I completely agree with that, 205 00:08:55,800 --> 00:08:58,079 Speaker 1: Sweet Matt, So let's tell everybody the beer we're drinking 206 00:08:58,120 --> 00:09:00,840 Speaker 1: in today's episode. Today's beer was sent to us by 207 00:09:00,840 --> 00:09:04,720 Speaker 1: a listener, Philip from Chico. California, which is where Sierra 208 00:09:04,760 --> 00:09:07,800 Speaker 1: Nevada's base. So I don't think he works there, but 209 00:09:07,880 --> 00:09:09,960 Speaker 1: he lives there, and I love that he sent us 210 00:09:10,000 --> 00:09:14,560 Speaker 1: this beer in particular, Mathmer. Yeah, this beer is called Resilience, 211 00:09:15,000 --> 00:09:18,679 Speaker 1: Butte County Proud I p A. And if you're not aware, 212 00:09:18,800 --> 00:09:21,960 Speaker 1: there have been a lot of wildfires in California and 213 00:09:22,040 --> 00:09:25,120 Speaker 1: a lot of the employees of the brewery Sierra Nevada, 214 00:09:25,200 --> 00:09:27,120 Speaker 1: which is one of the biggest craft breweries in the 215 00:09:27,240 --> 00:09:31,360 Speaker 1: nation right were affected, were displaced by the wildfires surrounding 216 00:09:31,360 --> 00:09:34,080 Speaker 1: their brewery and surrounding where their employees live. And so 217 00:09:34,400 --> 00:09:37,560 Speaker 1: Sierra Nevada decided to brew this beer Resilience UH and 218 00:09:37,640 --> 00:09:41,160 Speaker 1: donate all the proceeds to a fund that helps those 219 00:09:41,200 --> 00:09:43,800 Speaker 1: that were impacted by by the fire. And the really 220 00:09:43,800 --> 00:09:46,720 Speaker 1: cool thing, Matt, my favorite part about this story of 221 00:09:46,760 --> 00:09:51,000 Speaker 1: this beer is that other breweries, hundreds of other breweries 222 00:09:51,040 --> 00:09:54,920 Speaker 1: around the country have banded around Sierra Nevada to brew 223 00:09:55,120 --> 00:09:58,640 Speaker 1: this same recipe at their breweries and they're selling it 224 00:09:58,840 --> 00:10:01,160 Speaker 1: and doing the same exact thing. Yeah, so totally awesome. 225 00:10:01,200 --> 00:10:03,320 Speaker 1: I went to a brewery recently and they had their 226 00:10:03,320 --> 00:10:05,920 Speaker 1: own version of Resilience it's the same exact recipe because 227 00:10:05,960 --> 00:10:07,400 Speaker 1: here and about to put the recipe out there for 228 00:10:07,440 --> 00:10:10,959 Speaker 1: everyone to use. And they said so they're calling it Resilience, 229 00:10:11,240 --> 00:10:13,320 Speaker 1: and and they're saying that all the proceeds are going 230 00:10:13,360 --> 00:10:15,720 Speaker 1: to to the same camp fire fund, helping, you know, 231 00:10:15,720 --> 00:10:19,000 Speaker 1: people that were impacted by the by the fires in California. Yeah, man, 232 00:10:19,040 --> 00:10:21,199 Speaker 1: I love that. And even if you don't love craft beer, right, 233 00:10:21,240 --> 00:10:23,920 Speaker 1: you can admire the community and the support that is 234 00:10:24,040 --> 00:10:26,720 Speaker 1: rallying together in order to help change people's lives that 235 00:10:26,720 --> 00:10:29,240 Speaker 1: were affected by those fires. I love that. Yeah, such 236 00:10:29,240 --> 00:10:32,440 Speaker 1: a cool way to use the beer. And I already 237 00:10:32,600 --> 00:10:36,080 Speaker 1: love the packaging. It kind of reflects the beauty of 238 00:10:36,160 --> 00:10:38,040 Speaker 1: that part of the world. And also just like those 239 00:10:38,120 --> 00:10:40,160 Speaker 1: roots kind of coming out of the name Resilience on 240 00:10:40,160 --> 00:10:43,560 Speaker 1: the can reminds you of that community, grassroots effort, the 241 00:10:43,640 --> 00:10:46,400 Speaker 1: roots run deep. I love it. It's got the Yosemite look, 242 00:10:46,400 --> 00:10:49,920 Speaker 1: which is basically my favorite place on earth. So I 243 00:10:49,960 --> 00:10:53,600 Speaker 1: already love it. But let's go ahead and taste it. Man. Cheers. Man, dude, 244 00:10:53,600 --> 00:10:56,120 Speaker 1: that's awesome. And before we mentioned our one word, I 245 00:10:56,160 --> 00:10:57,720 Speaker 1: wanted to share why we have a beer every week, 246 00:10:57,760 --> 00:10:59,600 Speaker 1: which is craft beer. Is something that you and I 247 00:10:59,640 --> 00:11:02,679 Speaker 1: love obviously, and so we have a beer while we 248 00:11:02,720 --> 00:11:04,679 Speaker 1: talk about money, and it's just one of the things 249 00:11:04,720 --> 00:11:06,360 Speaker 1: that we care about, and it's one of the things 250 00:11:06,400 --> 00:11:09,000 Speaker 1: that we're not depriving our life of. It is something 251 00:11:09,040 --> 00:11:11,480 Speaker 1: that we value and because that we spend money, right, Like, 252 00:11:11,520 --> 00:11:13,559 Speaker 1: we were not looking to cut back in every single 253 00:11:13,600 --> 00:11:15,839 Speaker 1: aspect of life, but we try to be intentional with 254 00:11:15,880 --> 00:11:17,720 Speaker 1: our money. Craft beer is one of the ways that 255 00:11:17,760 --> 00:11:20,360 Speaker 1: we are intentional and do spend money. So just keep 256 00:11:20,360 --> 00:11:22,160 Speaker 1: that in mind when you're seeking to kind of get 257 00:11:22,200 --> 00:11:25,080 Speaker 1: your financial life and order right. It's okay to spend money, 258 00:11:25,120 --> 00:11:26,640 Speaker 1: just make sure you're spending money on the things that 259 00:11:26,679 --> 00:11:29,240 Speaker 1: matter to you, all right. Ji. Also, what's your one 260 00:11:29,240 --> 00:11:32,000 Speaker 1: word to describe this beer? Alright? My word is gonna 261 00:11:32,160 --> 00:11:35,120 Speaker 1: involve the use of a hyphened So I'm going old school. 262 00:11:35,440 --> 00:11:37,600 Speaker 1: I don't even know if that's hyphenated, but I'm going 263 00:11:37,640 --> 00:11:39,880 Speaker 1: for it. That's not only way to get both those words. 264 00:11:39,880 --> 00:11:41,040 Speaker 1: You just say, yeah, you just wanted it to be 265 00:11:41,160 --> 00:11:45,000 Speaker 1: hyphen it is so you can get two words and cheater. Alright, Matt, 266 00:11:45,040 --> 00:11:48,120 Speaker 1: what word would you use to describe this week's beer? Yeah? Man, 267 00:11:48,120 --> 00:11:50,319 Speaker 1: my word is multi, So a little bit later on 268 00:11:50,360 --> 00:11:52,640 Speaker 1: the show, we'll get into why we use those words 269 00:11:52,640 --> 00:11:55,040 Speaker 1: to describe this beer, but for now, let's get to 270 00:11:55,080 --> 00:11:58,240 Speaker 1: the subject at hand, Matt, recession proofing your finances. And 271 00:11:58,280 --> 00:12:00,360 Speaker 1: we really wanted to tackle this topic, Matt, because there 272 00:12:00,400 --> 00:12:04,079 Speaker 1: are so many people doom and gloom naysayers that saying 273 00:12:04,120 --> 00:12:07,120 Speaker 1: that the economy is going to crash any moment, And truly, 274 00:12:07,120 --> 00:12:09,280 Speaker 1: the economy has been doing really well for the past 275 00:12:09,320 --> 00:12:12,080 Speaker 1: pretty much decade, right, And I think it's really important 276 00:12:12,280 --> 00:12:14,480 Speaker 1: for our listeners to know that that we shouldn't be 277 00:12:14,520 --> 00:12:18,480 Speaker 1: paying super close attention to these predictions of a recession, 278 00:12:18,920 --> 00:12:21,280 Speaker 1: but it is good to be prepared right for whatever 279 00:12:21,520 --> 00:12:25,160 Speaker 1: might occur, And in particular, preparing for a recession is 280 00:12:25,280 --> 00:12:28,320 Speaker 1: really more than anything being prepared for short term bumps 281 00:12:28,360 --> 00:12:29,959 Speaker 1: in the road. And so that's kind of what we're 282 00:12:29,960 --> 00:12:32,000 Speaker 1: going to cover in this episode. Yeah, there can be 283 00:12:32,040 --> 00:12:34,560 Speaker 1: two extremes when it comes to our outlook towards the 284 00:12:34,559 --> 00:12:36,800 Speaker 1: coming years of our economy. Right, you can either be 285 00:12:37,040 --> 00:12:41,199 Speaker 1: overly positive and optimistic due to near sightedness, thinking of 286 00:12:41,240 --> 00:12:44,680 Speaker 1: that our current situation will continue on like it has forever, 287 00:12:45,080 --> 00:12:48,520 Speaker 1: which is like human nature, which is human nature. Yeah, 288 00:12:48,760 --> 00:12:50,400 Speaker 1: So you might think you'll continue to get those raises 289 00:12:50,440 --> 00:12:52,400 Speaker 1: at work, you might get great returns to the stock market, 290 00:12:52,600 --> 00:12:54,240 Speaker 1: might think that gas prices are going to continue to 291 00:12:54,240 --> 00:12:56,760 Speaker 1: go down because that's what's happening right now. Or you 292 00:12:56,840 --> 00:12:59,600 Speaker 1: might be overly negative in thinking that the market is 293 00:12:59,640 --> 00:13:01,520 Speaker 1: going to crash. You know, just like you said, you 294 00:13:01,679 --> 00:13:03,880 Speaker 1: like the naysayers. We think that it might just be 295 00:13:03,920 --> 00:13:06,680 Speaker 1: too good to be true. And either way, we can't 296 00:13:06,679 --> 00:13:09,360 Speaker 1: control our economy, we can't control the markets, but what 297 00:13:09,400 --> 00:13:13,000 Speaker 1: we can control our our personal finances. This reminds me 298 00:13:13,040 --> 00:13:16,040 Speaker 1: too of Stephen Covey. He's got that classic books, Seven 299 00:13:16,040 --> 00:13:18,439 Speaker 1: Habits of Highly Effective People, and he talks about how 300 00:13:18,440 --> 00:13:20,800 Speaker 1: you have your circle of concern. Right, there's a lot 301 00:13:20,840 --> 00:13:23,160 Speaker 1: of things that impact you and that you are interested 302 00:13:23,160 --> 00:13:26,080 Speaker 1: in and that concern you. However, within that circle of concern, 303 00:13:26,320 --> 00:13:29,400 Speaker 1: there's a smaller circle, which is your circle of influence. 304 00:13:29,960 --> 00:13:32,160 Speaker 1: And the idea is to focus on the things that 305 00:13:32,200 --> 00:13:34,439 Speaker 1: you can control, focus on the things that you have 306 00:13:34,559 --> 00:13:37,920 Speaker 1: influence over, and that's personal finance. Right. Like you can 307 00:13:38,000 --> 00:13:40,640 Speaker 1: read all the news reports, you can follow the stocks 308 00:13:40,640 --> 00:13:43,520 Speaker 1: and the charts all you want, but that's not going 309 00:13:43,559 --> 00:13:47,200 Speaker 1: to change what the market actually does. What you can change, though, 310 00:13:47,440 --> 00:13:50,400 Speaker 1: are your own personal finances. And before we get into 311 00:13:50,440 --> 00:13:52,760 Speaker 1: the nuts and bolts of how you can prepare your 312 00:13:53,000 --> 00:13:56,160 Speaker 1: personal and your families finances for a potential recession, I 313 00:13:56,200 --> 00:13:58,840 Speaker 1: did want to just quickly address to like a mental 314 00:13:58,960 --> 00:14:01,320 Speaker 1: mindset shift that needs to take place for a lot 315 00:14:01,360 --> 00:14:04,640 Speaker 1: of people. If you're somebody that logs onto CNBC every 316 00:14:04,720 --> 00:14:08,320 Speaker 1: day or has the news on and here's people crying 317 00:14:08,360 --> 00:14:11,920 Speaker 1: about potential recession and predicting the all the potential bad 318 00:14:11,960 --> 00:14:14,000 Speaker 1: things that could happen, that can be a recipe for 319 00:14:14,080 --> 00:14:16,320 Speaker 1: you making moves that are not in the best interest 320 00:14:16,400 --> 00:14:19,800 Speaker 1: of your long term financial future. So be careful about 321 00:14:19,840 --> 00:14:22,440 Speaker 1: the news that you're consuming and the people that you're 322 00:14:22,440 --> 00:14:24,880 Speaker 1: listening to, because if you adopt more of a long 323 00:14:25,000 --> 00:14:28,400 Speaker 1: term strategy towards your personal finances, those day to day naysayers, 324 00:14:29,080 --> 00:14:31,080 Speaker 1: it really they have a lot less impact on what 325 00:14:31,160 --> 00:14:34,120 Speaker 1: you actually do with your money. And so after the break, 326 00:14:34,120 --> 00:14:36,320 Speaker 1: we're gonna talk about some specific things that you can 327 00:14:36,360 --> 00:14:39,160 Speaker 1: do to recession proof your finances. And again, these are 328 00:14:39,200 --> 00:14:42,400 Speaker 1: things that you can do proactively versus reacting to the 329 00:14:42,400 --> 00:14:53,560 Speaker 1: news and the market. So there are a lot of 330 00:14:53,600 --> 00:14:56,360 Speaker 1: important things you need to consider when your recession proofing 331 00:14:56,400 --> 00:14:58,800 Speaker 1: your finances, and the first one is to build a 332 00:14:58,920 --> 00:15:02,080 Speaker 1: strong emergency on if you feel like a recession might 333 00:15:02,120 --> 00:15:04,920 Speaker 1: impact you in a meaningful way, it's really important to 334 00:15:05,000 --> 00:15:08,440 Speaker 1: squirrel away more cash. When the economy is roaring, an 335 00:15:08,440 --> 00:15:10,960 Speaker 1: emergency fund is still meaningful, right, We've talked about that 336 00:15:11,000 --> 00:15:13,960 Speaker 1: before the show, but it's even more meaningful when we're 337 00:15:13,960 --> 00:15:17,040 Speaker 1: talking about a potential recession because in the event of 338 00:15:17,200 --> 00:15:20,800 Speaker 1: job loss or decreased pay or fewer hours that you're 339 00:15:20,840 --> 00:15:24,320 Speaker 1: able to work for your incurrent employer because of a recession, 340 00:15:24,440 --> 00:15:26,880 Speaker 1: it's important to have kind of more money uh scrolled 341 00:15:26,880 --> 00:15:29,000 Speaker 1: away in your bank account so that you can be prepared. 342 00:15:29,280 --> 00:15:30,760 Speaker 1: So how much we're talking about here, we're talking about 343 00:15:30,760 --> 00:15:33,040 Speaker 1: like a hundred bucks bucks that won't get you very far. 344 00:15:33,200 --> 00:15:36,560 Speaker 1: Usually a typically the sort of initial emergency fund that 345 00:15:36,560 --> 00:15:38,320 Speaker 1: you want to put together is like a thousand bucks, right, 346 00:15:38,360 --> 00:15:41,160 Speaker 1: A thousand dollars will get you far, but ideally we're 347 00:15:41,160 --> 00:15:43,640 Speaker 1: talking three to six months, maybe even a little bit 348 00:15:43,680 --> 00:15:45,360 Speaker 1: more if you like to have a little more margin, 349 00:15:45,760 --> 00:15:47,360 Speaker 1: a little more of a buffer and when it comes 350 00:15:47,360 --> 00:15:49,600 Speaker 1: to your finances, but at least three to six months 351 00:15:49,640 --> 00:15:51,880 Speaker 1: of expenses is what you want to have when it 352 00:15:51,920 --> 00:15:56,120 Speaker 1: comes to setting aside money for a strong emergency fund. Yeah. 353 00:15:56,160 --> 00:15:58,320 Speaker 1: For a lot of years, cash has been considered like 354 00:15:58,320 --> 00:16:01,560 Speaker 1: a terrible investment, and rightly so, it's not an investment 355 00:16:01,560 --> 00:16:03,840 Speaker 1: at all, right, right, and for rightly so, right for 356 00:16:03,880 --> 00:16:06,840 Speaker 1: that reason, and because returns on cash have been really low, right, 357 00:16:06,880 --> 00:16:09,480 Speaker 1: the low interest rates paid out on cash accounts. But 358 00:16:09,600 --> 00:16:11,960 Speaker 1: in the current state of things, interest rates are rising 359 00:16:12,040 --> 00:16:14,400 Speaker 1: on the savings accounts, and so it's not actually a 360 00:16:14,480 --> 00:16:16,520 Speaker 1: terrible place to put your money right now. Um, So 361 00:16:16,600 --> 00:16:19,280 Speaker 1: at the same time that it's not a terrible place 362 00:16:19,280 --> 00:16:21,640 Speaker 1: to store your money, it's also more important to put 363 00:16:21,680 --> 00:16:24,520 Speaker 1: your money there because of a potential recession and because 364 00:16:24,560 --> 00:16:25,760 Speaker 1: of the impact that it could have on you and 365 00:16:25,760 --> 00:16:28,600 Speaker 1: your family. And and we did an entire episode dedicated 366 00:16:28,640 --> 00:16:31,600 Speaker 1: towards setting aside money for an emergency fund. And again, 367 00:16:31,640 --> 00:16:34,560 Speaker 1: that might mean investing less and saving more in the 368 00:16:34,640 --> 00:16:36,840 Speaker 1: short term, and that is okay, But but look that 369 00:16:36,880 --> 00:16:39,440 Speaker 1: one up. That's episode number twenty one, where we talk 370 00:16:39,480 --> 00:16:42,040 Speaker 1: about everything you need to know about an emergency fund. Yeah, 371 00:16:42,080 --> 00:16:45,560 Speaker 1: and speaking of investing less, that it might make sense 372 00:16:45,600 --> 00:16:48,800 Speaker 1: to potentially back off your ira A contributions or your 373 00:16:48,840 --> 00:16:51,440 Speaker 1: four oh one K contributions through an employer. Let's say 374 00:16:51,440 --> 00:16:53,840 Speaker 1: you're investing tend to twelve percent of your pay in 375 00:16:53,880 --> 00:16:56,720 Speaker 1: a four oh one K, you're backing that automatic deduction 376 00:16:56,840 --> 00:16:59,240 Speaker 1: off to like six or wherever it is, you know, 377 00:16:59,360 --> 00:17:01,760 Speaker 1: just making sure you of course get the company match 378 00:17:01,840 --> 00:17:06,080 Speaker 1: through your employer priority exactly, and then after that making 379 00:17:06,119 --> 00:17:08,280 Speaker 1: sure that you're not investing any more than that until 380 00:17:08,280 --> 00:17:10,160 Speaker 1: you feel like your emergency fund is where you want 381 00:17:10,160 --> 00:17:12,600 Speaker 1: it to be. Excellent man. And the next you want 382 00:17:12,640 --> 00:17:15,640 Speaker 1: to attack high interest rate debt and don't take out 383 00:17:15,640 --> 00:17:17,880 Speaker 1: more debt. And so this makes sense from a number standpoint, 384 00:17:17,960 --> 00:17:19,840 Speaker 1: right from a number is an interest rate standpoint, you 385 00:17:19,840 --> 00:17:21,679 Speaker 1: want to attack the loans that you have to have 386 00:17:21,720 --> 00:17:24,520 Speaker 1: the highest interest rate. If a recession hits, it's so 387 00:17:24,600 --> 00:17:26,879 Speaker 1: important to tackle that high interest rate debt. That's the 388 00:17:26,920 --> 00:17:29,840 Speaker 1: most important. Let's say you've got five thousand dollars in 389 00:17:29,960 --> 00:17:32,560 Speaker 1: student loan debt at a three percent rate and ten 390 00:17:32,560 --> 00:17:35,240 Speaker 1: thousand dollars of credit card debt at a nineteen percent 391 00:17:35,280 --> 00:17:39,000 Speaker 1: interest rate. I think it makes right, which it could be. 392 00:17:39,200 --> 00:17:40,600 Speaker 1: I think it makes a lot more sense for people 393 00:17:40,600 --> 00:17:43,600 Speaker 1: to try to tackle that credit card debt, because a 394 00:17:43,640 --> 00:17:45,639 Speaker 1: three percent interest rate isn't gonna kill you, but a 395 00:17:45,720 --> 00:17:49,680 Speaker 1: nine interest rate is. Ultimately it's gonna crush you. Because 396 00:17:50,000 --> 00:17:52,200 Speaker 1: it's really hard to gain an advantage. I would recommend 397 00:17:52,200 --> 00:17:55,240 Speaker 1: putting every extra dollar that you have towards a really 398 00:17:55,280 --> 00:17:58,080 Speaker 1: high interest rate debt like that before attacking anything with 399 00:17:58,160 --> 00:18:00,760 Speaker 1: a super low interest rate. You definitely need to be 400 00:18:00,760 --> 00:18:03,800 Speaker 1: smart about it. Yeah, and you also mentioned not taking 401 00:18:03,800 --> 00:18:05,720 Speaker 1: out more debt. Yeah. I think a lot of people 402 00:18:05,760 --> 00:18:10,160 Speaker 1: think that taking out a home equity loan or refinancing 403 00:18:10,240 --> 00:18:12,920 Speaker 1: your house that now is a good time to do that. 404 00:18:13,280 --> 00:18:15,280 Speaker 1: And if you're actually gonna lower your rate and get 405 00:18:15,320 --> 00:18:17,639 Speaker 1: better terms, it might still make sense for you. But 406 00:18:17,840 --> 00:18:19,919 Speaker 1: you don't want to take on more debt, and so 407 00:18:20,040 --> 00:18:23,080 Speaker 1: doing a cash out refinance on your personal home in 408 00:18:23,200 --> 00:18:26,040 Speaker 1: order to have some extra cash to pad your lifestyle, well, 409 00:18:26,160 --> 00:18:28,040 Speaker 1: that ultimately is going to bite you in the end. 410 00:18:28,280 --> 00:18:32,320 Speaker 1: Usually you're refinancing into longer term debt at a higher 411 00:18:32,400 --> 00:18:35,320 Speaker 1: rate and with a higher principal balance, So you definitely 412 00:18:35,359 --> 00:18:38,400 Speaker 1: want to stay away from taking out more debt when 413 00:18:38,440 --> 00:18:41,359 Speaker 1: we're talking about recession, Proving your finances and the next 414 00:18:41,440 --> 00:18:44,720 Speaker 1: make yourself an invaluable employee at wherever you work, right, 415 00:18:44,760 --> 00:18:46,840 Speaker 1: and then just make hay while the sun shines. Like, 416 00:18:46,880 --> 00:18:49,440 Speaker 1: you're not guaranteed to keep that job. You don't know 417 00:18:49,480 --> 00:18:51,679 Speaker 1: how long that's gonna last. Right, And so now is 418 00:18:51,680 --> 00:18:54,120 Speaker 1: just not the time to slock off focus on your career, 419 00:18:54,200 --> 00:18:57,160 Speaker 1: especially if you start to see signs of a potential 420 00:18:57,200 --> 00:18:59,960 Speaker 1: recession potential bearer market coming up. You don't want to 421 00:19:00,000 --> 00:19:01,800 Speaker 1: slack off at work, right, Like, this is the time 422 00:19:01,840 --> 00:19:05,280 Speaker 1: to maybe lease initiatives and do something where you're even 423 00:19:05,320 --> 00:19:08,320 Speaker 1: stepping beyond the role that you currently have to take 424 00:19:08,320 --> 00:19:10,959 Speaker 1: on more responsibility and hopefully that will just cement your 425 00:19:11,000 --> 00:19:13,920 Speaker 1: position in your place at your employer. Yeah, you never 426 00:19:13,960 --> 00:19:16,240 Speaker 1: want to be the person that says, that's not my 427 00:19:16,320 --> 00:19:20,120 Speaker 1: job description or that's not really what I do. And 428 00:19:20,200 --> 00:19:23,800 Speaker 1: taking any opportunity to make yourself invaluable to make your 429 00:19:23,880 --> 00:19:27,320 Speaker 1: employer realize that they need you. You want to be 430 00:19:27,320 --> 00:19:30,000 Speaker 1: the least expendable person there. That's that's your goal. And 431 00:19:30,040 --> 00:19:31,800 Speaker 1: I think that's a really important thing to to think 432 00:19:31,840 --> 00:19:34,040 Speaker 1: about in the line of a potential recession. Probably wouldn't 433 00:19:34,080 --> 00:19:35,760 Speaker 1: hurt Ntill like show with donuts either, right, you know, 434 00:19:35,800 --> 00:19:37,679 Speaker 1: like if Joel's always showing up with a donuts but 435 00:19:37,760 --> 00:19:39,640 Speaker 1: Matt never brings the donuts and they both do equal 436 00:19:39,680 --> 00:19:41,479 Speaker 1: amounts of work, well, we know who's on the chop. 437 00:19:41,960 --> 00:19:45,960 Speaker 1: Matt might get axed again. On the topic of employment, Matt, 438 00:19:46,040 --> 00:19:49,040 Speaker 1: if you can create an additional stream of income by 439 00:19:49,200 --> 00:19:52,040 Speaker 1: putting together a side hustle, that you might even be 440 00:19:52,040 --> 00:19:54,240 Speaker 1: able to convert it into a full fledged business in 441 00:19:54,320 --> 00:19:57,240 Speaker 1: the event of a job loss. I think having some 442 00:19:57,240 --> 00:20:00,560 Speaker 1: sort of side hustle side income, multiple stream of income. 443 00:20:00,680 --> 00:20:02,320 Speaker 1: You know, we talked about real estate on the show, 444 00:20:02,320 --> 00:20:04,440 Speaker 1: and that's been helpful. If you could rent out a 445 00:20:04,560 --> 00:20:06,840 Speaker 1: room in your house on Airbnb, whatever it is, a 446 00:20:06,920 --> 00:20:10,000 Speaker 1: side hustle and multiple streams of income, those are great 447 00:20:10,040 --> 00:20:11,919 Speaker 1: things to to think about, really, and we've got a 448 00:20:11,920 --> 00:20:15,120 Speaker 1: whole episode dedicated to side hustles. That's episode number thirty five. 449 00:20:15,200 --> 00:20:17,840 Speaker 1: You can check out creating a Dope side Hustle, which 450 00:20:17,880 --> 00:20:19,720 Speaker 1: is kind of funny, right, Like, the reason we titled 451 00:20:19,720 --> 00:20:22,959 Speaker 1: it that is because not all side hustles are created equally, 452 00:20:23,000 --> 00:20:24,800 Speaker 1: and we wanted to shine a light on that because 453 00:20:24,840 --> 00:20:27,800 Speaker 1: there are some side hustles that are kind of dead end, right. 454 00:20:27,840 --> 00:20:30,080 Speaker 1: And then there's some side hustles that could lead. Like 455 00:20:30,080 --> 00:20:32,359 Speaker 1: you said, Joe, it's an actual business. And dude, this 456 00:20:32,400 --> 00:20:34,480 Speaker 1: is exactly what Kate and I did ten years ago, 457 00:20:34,760 --> 00:20:37,200 Speaker 1: back when the Great Recession hit and you know, two 458 00:20:37,200 --> 00:20:40,359 Speaker 1: thousand and eight, we started our photography business in the 459 00:20:40,400 --> 00:20:43,360 Speaker 1: midst of a recession, which is crazy, right, but that's 460 00:20:43,400 --> 00:20:45,879 Speaker 1: the whole reason we went that direction. The company I 461 00:20:45,920 --> 00:20:48,960 Speaker 1: was working for is a small advertising agency. We weren't 462 00:20:49,000 --> 00:20:50,760 Speaker 1: doing so great at the time. We were losing some 463 00:20:50,840 --> 00:20:52,480 Speaker 1: clients that we you know, we lost a couple of 464 00:20:52,520 --> 00:20:54,520 Speaker 1: big ones, and I kind of saw the writing on 465 00:20:54,560 --> 00:20:57,119 Speaker 1: the wall. I didn't necessarily think I was gonna get fired, 466 00:20:57,160 --> 00:20:58,720 Speaker 1: but I also knew it wasn't my calling. I wasn't 467 00:20:58,720 --> 00:21:01,320 Speaker 1: having a great time in my position there, and so 468 00:21:01,560 --> 00:21:04,000 Speaker 1: finding an outlet where I can make money and find 469 00:21:04,000 --> 00:21:05,560 Speaker 1: all the things that you're looking for in a job 470 00:21:05,840 --> 00:21:09,080 Speaker 1: on the side was incredibly valuable for us. I was 471 00:21:09,119 --> 00:21:11,920 Speaker 1: able to keep those both going for gosh, maybe about 472 00:21:11,920 --> 00:21:13,879 Speaker 1: six months where I kind of had this side hustle 473 00:21:13,960 --> 00:21:16,000 Speaker 1: going on, But after that we went full on, went 474 00:21:16,040 --> 00:21:18,680 Speaker 1: full time, and I've been doing photography full time for 475 00:21:18,720 --> 00:21:21,640 Speaker 1: over ten years now, which is honestly crazy to even 476 00:21:21,640 --> 00:21:23,520 Speaker 1: say out loud that I haven't had a real job 477 00:21:24,040 --> 00:21:26,919 Speaker 1: in ten years, But man, I wouldn't have traded it 478 00:21:26,960 --> 00:21:31,560 Speaker 1: for almost anything. That's awesome, man. And and also on 479 00:21:31,600 --> 00:21:34,439 Speaker 1: the work note, it's important to have your resume ready 480 00:21:34,760 --> 00:21:37,159 Speaker 1: and to you know, reach out to the people in 481 00:21:37,200 --> 00:21:40,600 Speaker 1: your network if job loss is a real potential for you. 482 00:21:40,880 --> 00:21:43,480 Speaker 1: So if you haven't touched your resume in years, it's 483 00:21:43,520 --> 00:21:45,160 Speaker 1: it would be good to spend a few evenings kind 484 00:21:45,160 --> 00:21:47,200 Speaker 1: of getting up to speed. And also, you know, you 485 00:21:47,200 --> 00:21:49,560 Speaker 1: don't have to obviously ask people for a job, but 486 00:21:49,680 --> 00:21:52,080 Speaker 1: just connecting with people in the business that work at 487 00:21:52,080 --> 00:21:54,880 Speaker 1: other companies, set up a coffee date, whatever it is, 488 00:21:55,200 --> 00:21:58,360 Speaker 1: staying in touch with people that you've worked with and 489 00:21:58,400 --> 00:22:01,159 Speaker 1: that do similar jobs to you that could be helpful 490 00:22:01,160 --> 00:22:03,960 Speaker 1: to you in a potential, you know, economic downturn. Keep 491 00:22:04,000 --> 00:22:07,359 Speaker 1: those relationships alive and invest in them right now while 492 00:22:07,480 --> 00:22:09,720 Speaker 1: things are good. Yeah, it definitely doesn't hurt. The next 493 00:22:09,760 --> 00:22:12,399 Speaker 1: thing you want to consider is to not make a 494 00:22:12,480 --> 00:22:15,159 Speaker 1: big expensive plans. You might be thinking about taking a 495 00:22:15,280 --> 00:22:18,560 Speaker 1: sweet European vacation that you've been saving up for, Well, 496 00:22:18,560 --> 00:22:20,400 Speaker 1: it may not be the best time, especially if you're 497 00:22:20,400 --> 00:22:22,360 Speaker 1: not in a strong position when it comes to say, 498 00:22:22,400 --> 00:22:24,399 Speaker 1: like your emergency fund. You want to make sure you 499 00:22:24,440 --> 00:22:27,040 Speaker 1: are set up and your finances are in a healthy place. 500 00:22:27,359 --> 00:22:29,320 Speaker 1: But yeah, I think twice when it comes to making 501 00:22:29,320 --> 00:22:33,160 Speaker 1: some big purchases or making big expensive plans. Yeah, especially 502 00:22:33,480 --> 00:22:36,280 Speaker 1: purchases that have a lot of recurring expenses, right, Matt, 503 00:22:36,280 --> 00:22:38,480 Speaker 1: And Yeah, we talked about that in the Everything Costs 504 00:22:38,480 --> 00:22:40,879 Speaker 1: More Than You Think episode, that that everything that you 505 00:22:40,920 --> 00:22:44,399 Speaker 1: buy comes with secondary costs. And if you're buying something 506 00:22:44,560 --> 00:22:46,520 Speaker 1: that I think I can afford this it works into 507 00:22:46,520 --> 00:22:49,240 Speaker 1: my lifestyle, Well, make sure that you've really factored in 508 00:22:49,240 --> 00:22:51,880 Speaker 1: those secondary costs, because that can come back to bite 509 00:22:51,920 --> 00:22:54,280 Speaker 1: you if you haven't planned well. And I agree that 510 00:22:54,359 --> 00:22:57,320 Speaker 1: making expensive plans for the future is just a bad 511 00:22:57,359 --> 00:23:00,280 Speaker 1: move in line of a potential recession. If you're booking 512 00:23:00,359 --> 00:23:02,720 Speaker 1: in a vacation that feels like it's at the top 513 00:23:02,760 --> 00:23:05,119 Speaker 1: of your budget, what you know, maybe consider doing something 514 00:23:05,200 --> 00:23:08,600 Speaker 1: way cheaper this year and saving more money so that 515 00:23:08,640 --> 00:23:11,080 Speaker 1: you can do it without any guilt or remorse next 516 00:23:11,119 --> 00:23:13,200 Speaker 1: year and you can actually afford it. I think it's 517 00:23:13,240 --> 00:23:15,800 Speaker 1: just really important, more than anything, to not count your 518 00:23:15,880 --> 00:23:18,359 Speaker 1: chickens before they hatch. But what if you like guilty 519 00:23:18,440 --> 00:23:23,919 Speaker 1: vacations Joel and unhatched chickens. That's not a good idea, man, 520 00:23:24,000 --> 00:23:26,520 Speaker 1: it sounds like an omelet. And then finally, to you 521 00:23:26,560 --> 00:23:29,639 Speaker 1: consider your credit score, work on boosting your credit score. 522 00:23:29,760 --> 00:23:32,480 Speaker 1: You want to make sure you have as healthy of 523 00:23:32,520 --> 00:23:35,399 Speaker 1: a score as possible when it comes to a downturn 524 00:23:35,480 --> 00:23:37,040 Speaker 1: in the market, because guess what, man, this is something 525 00:23:37,080 --> 00:23:39,280 Speaker 1: I learned firsthand, which is that when there is a 526 00:23:39,400 --> 00:23:43,119 Speaker 1: huge downturn in the market, lending standards get really, really strict. 527 00:23:43,200 --> 00:23:44,679 Speaker 1: And if we didn't have a high credit score when 528 00:23:44,720 --> 00:23:46,320 Speaker 1: we were trying to apply for a mortgage for our 529 00:23:46,359 --> 00:23:49,360 Speaker 1: first home because we were self employed, right, it's about 530 00:23:49,400 --> 00:23:51,960 Speaker 1: same business I mentioned from ten years ago. We've only 531 00:23:51,960 --> 00:23:54,080 Speaker 1: been in business for one year and when we had 532 00:23:54,119 --> 00:23:56,200 Speaker 1: saved up enough money to put down for a down 533 00:23:56,200 --> 00:23:58,880 Speaker 1: payment on our first house. But banks like to see 534 00:23:58,960 --> 00:24:02,080 Speaker 1: multiple years of business tax returns, and because we only 535 00:24:02,080 --> 00:24:04,600 Speaker 1: had one year, it's severely limited our options when it 536 00:24:04,680 --> 00:24:07,359 Speaker 1: came to a mortgage. And dude, if we didn't have 537 00:24:07,520 --> 00:24:09,240 Speaker 1: a decent credit score, we wouldn't have been able to 538 00:24:09,320 --> 00:24:11,800 Speaker 1: qualify at all for a mortgage, and we would have 539 00:24:11,840 --> 00:24:14,600 Speaker 1: missed out on that suite eight thousand dollars from the government. 540 00:24:14,640 --> 00:24:17,239 Speaker 1: Remember that, Do I remember that? Because you got that too, 541 00:24:17,440 --> 00:24:19,840 Speaker 1: of course, Yeah, that that was Who knows that that 542 00:24:19,840 --> 00:24:21,639 Speaker 1: that will probably never happen again in the history of 543 00:24:21,680 --> 00:24:23,440 Speaker 1: our country. That was just kind of a crazy tax 544 00:24:23,440 --> 00:24:25,959 Speaker 1: credit eight thousand dollars for buying a house that you 545 00:24:26,119 --> 00:24:27,880 Speaker 1: did never have to pay back, and there was one 546 00:24:27,920 --> 00:24:30,840 Speaker 1: before that, right that you did have to pay I 547 00:24:30,840 --> 00:24:33,960 Speaker 1: think all those folks felt a little short changed, right understandably, 548 00:24:34,000 --> 00:24:36,439 Speaker 1: so I would have been so pissed. Yeah. So, so 549 00:24:36,440 --> 00:24:38,320 Speaker 1: I think it's really important yet to work towards us 550 00:24:38,320 --> 00:24:41,760 Speaker 1: increasing your credit score, because as lending standards tighten, you 551 00:24:41,760 --> 00:24:43,800 Speaker 1: want to make sure that if you do decide to 552 00:24:43,800 --> 00:24:46,960 Speaker 1: buy a house, or do for some reason need financing 553 00:24:47,040 --> 00:24:50,159 Speaker 1: on a car, we would tell you not to do that. 554 00:24:50,160 --> 00:24:52,439 Speaker 1: That's not a great idea to finance a vehicle. But 555 00:24:52,560 --> 00:24:55,920 Speaker 1: if you do find yourself needing financing, it's really important 556 00:24:56,080 --> 00:24:57,560 Speaker 1: to make sure that you have a tip top credit 557 00:24:57,560 --> 00:25:00,359 Speaker 1: score because banks are just gonna be in general nervous 558 00:25:00,400 --> 00:25:02,240 Speaker 1: to lend money. Yeah. That makes me think of you know, 559 00:25:02,400 --> 00:25:04,160 Speaker 1: back in two thousand and eight, where where were you 560 00:25:04,280 --> 00:25:06,680 Speaker 1: sort of financially or just kind of in your life 561 00:25:06,960 --> 00:25:09,600 Speaker 1: at the very bottom of the market. Well, I was 562 00:25:09,640 --> 00:25:12,480 Speaker 1: completely just getting started really in the work world. You know, 563 00:25:12,480 --> 00:25:15,240 Speaker 1: I've been looking for a couple of years, still very 564 00:25:15,320 --> 00:25:18,480 Speaker 1: very low income, but I was at least a high saver. 565 00:25:18,680 --> 00:25:22,480 Speaker 1: I'd saved a lot, and so saving had been my priority. 566 00:25:22,520 --> 00:25:24,520 Speaker 1: Investing was a little bit of my porty, but saving 567 00:25:24,560 --> 00:25:26,560 Speaker 1: was my main priority because I wanted to buy a house, 568 00:25:26,920 --> 00:25:28,640 Speaker 1: and in the downturn, I was able to to take 569 00:25:28,680 --> 00:25:31,120 Speaker 1: advantage with a stockpile of cash to buy a house 570 00:25:31,240 --> 00:25:32,920 Speaker 1: and then increase my savings rate even more and trying 571 00:25:32,920 --> 00:25:34,959 Speaker 1: to buy another one two years later. So, yeah, if 572 00:25:34,960 --> 00:25:36,880 Speaker 1: you want to be able to take advantage of potential 573 00:25:36,920 --> 00:25:39,879 Speaker 1: opportunities to in a recession, because there are opportunities for 574 00:25:39,920 --> 00:25:42,199 Speaker 1: people to make a move to make an investment at 575 00:25:42,240 --> 00:25:44,960 Speaker 1: a discount that they don't come around all the time. 576 00:25:45,240 --> 00:25:48,080 Speaker 1: So I think it's important to be prepared financially to 577 00:25:48,080 --> 00:25:50,720 Speaker 1: to take advantage of anything that comes along. And if 578 00:25:50,760 --> 00:25:52,359 Speaker 1: you don't have that cash and you don't have that 579 00:25:52,440 --> 00:25:55,080 Speaker 1: high credit score, chances are you're you're not gonna able 580 00:25:55,080 --> 00:25:57,199 Speaker 1: to take advantage of something that of an opportunity that 581 00:25:57,240 --> 00:25:58,560 Speaker 1: you might even see you right in front of you. 582 00:25:58,600 --> 00:26:01,359 Speaker 1: That's right, man. We're gonna talk more about that specific thing, right, 583 00:26:01,400 --> 00:26:05,239 Speaker 1: taking advantage of opportunities in the market, and we're going 584 00:26:05,280 --> 00:26:08,280 Speaker 1: to talk specifically about investing in light of a potential 585 00:26:08,280 --> 00:26:19,640 Speaker 1: recession right after the break. All right, So let's talk 586 00:26:19,640 --> 00:26:22,720 Speaker 1: now specifically about investing things that you want to consider 587 00:26:22,840 --> 00:26:24,399 Speaker 1: and the steps you want to take. How about you 588 00:26:24,440 --> 00:26:26,239 Speaker 1: kick it off, all right, Matt. Yeah. The first thing 589 00:26:26,320 --> 00:26:28,960 Speaker 1: is to consider your asset allocation, and so we've talked 590 00:26:29,000 --> 00:26:31,639 Speaker 1: about retirement investing before. Yeah, And Matt and I are 591 00:26:31,640 --> 00:26:33,840 Speaker 1: firm believers that if you're in the wealth building stage 592 00:26:34,000 --> 00:26:37,480 Speaker 1: that we think it's important to continue investing mostly in 593 00:26:37,680 --> 00:26:40,879 Speaker 1: a stock type portfolio, and we've talked more about that 594 00:26:40,920 --> 00:26:43,360 Speaker 1: in episodes past. I'm sure we'll talk more about investing 595 00:26:43,560 --> 00:26:46,480 Speaker 1: in future episodes, but in particular, there's a Vanguard quiz 596 00:26:46,480 --> 00:26:48,640 Speaker 1: that can kind of help you understand your risk tolerance, 597 00:26:48,800 --> 00:26:50,000 Speaker 1: and so we'll put a link to that in the 598 00:26:50,000 --> 00:26:52,280 Speaker 1: show notes. But I think if you're in that wealth 599 00:26:52,320 --> 00:26:55,840 Speaker 1: building stage, it's super important to to stay the course 600 00:26:56,080 --> 00:26:58,840 Speaker 1: and be invested in mostly stock type choices because even 601 00:26:58,880 --> 00:27:01,840 Speaker 1: if there's a potential recession. We're talking about your portfolio 602 00:27:01,880 --> 00:27:03,879 Speaker 1: for the long term. When you're investing, you should be 603 00:27:03,880 --> 00:27:07,840 Speaker 1: thinking about that money staying put for ten years or longer. 604 00:27:08,119 --> 00:27:10,400 Speaker 1: And so if that is the case, you should be 605 00:27:10,480 --> 00:27:13,159 Speaker 1: investing in mostly stocks. So we'll put a link to 606 00:27:13,200 --> 00:27:15,240 Speaker 1: that Vanguard quiz to kind of help you understand your 607 00:27:15,240 --> 00:27:17,719 Speaker 1: own risk profile. But I think it is important to 608 00:27:17,760 --> 00:27:19,800 Speaker 1: mention that that stocks are a great choice for people 609 00:27:20,080 --> 00:27:22,080 Speaker 1: if they're in that wealth building phase. Yeah, Joel, And 610 00:27:22,080 --> 00:27:24,200 Speaker 1: you mentioned or you hinted at the sort of ten 611 00:27:24,280 --> 00:27:27,080 Speaker 1: year time frame, right follow that ten your rule, So 612 00:27:27,160 --> 00:27:29,600 Speaker 1: if you know that you will be accessing your funds 613 00:27:29,600 --> 00:27:32,200 Speaker 1: for for ten years, definitely you know, stay the course. 614 00:27:32,520 --> 00:27:35,439 Speaker 1: You want to stay heavily invested in stocks. If you 615 00:27:35,440 --> 00:27:37,720 Speaker 1: do expect to be tapping into that portfolio. You want 616 00:27:37,720 --> 00:27:40,720 Speaker 1: to make sure your portfolio is balanced with bonds and cash. 617 00:27:40,840 --> 00:27:43,040 Speaker 1: You want to maintain that balance if you're getting closer 618 00:27:43,040 --> 00:27:45,760 Speaker 1: to the point where you're gonna withdraw some of those funds. Yeah, Matt, 619 00:27:45,760 --> 00:27:48,080 Speaker 1: And like we kind of briefly mentioned at the top 620 00:27:48,200 --> 00:27:51,160 Speaker 1: of the show, mental preparation is key as well. So 621 00:27:51,359 --> 00:27:53,720 Speaker 1: if you're gonna make changes based on data day news, 622 00:27:54,040 --> 00:27:56,160 Speaker 1: turn off the news. If you aren't willing to stay 623 00:27:56,200 --> 00:27:59,040 Speaker 1: the course despite difficulty in the stock market, you'll likely 624 00:27:59,040 --> 00:28:01,960 Speaker 1: need to make changes. But for a recession occurs, like 625 00:28:02,040 --> 00:28:04,479 Speaker 1: giving somebody else the password to your Vanguard accounts that 626 00:28:04,520 --> 00:28:07,720 Speaker 1: you don't make any knee jerk cells, that's a great 627 00:28:07,760 --> 00:28:09,679 Speaker 1: way to do it, honestly, Yeah, I mean for real, 628 00:28:09,720 --> 00:28:11,600 Speaker 1: Like if you have a spouse, uh and who is 629 00:28:11,640 --> 00:28:13,840 Speaker 1: way more levelheaded, maybe they should have the rains for 630 00:28:13,840 --> 00:28:15,720 Speaker 1: the next few years if if you see a downturn 631 00:28:15,800 --> 00:28:17,840 Speaker 1: right completely completely, And I think some of the best 632 00:28:17,840 --> 00:28:21,160 Speaker 1: advice ever given to any investor is to not look 633 00:28:21,200 --> 00:28:23,040 Speaker 1: day to day and honestly not even look a month 634 00:28:23,080 --> 00:28:25,600 Speaker 1: a month, just don't even look at your portfolio. Be 635 00:28:25,640 --> 00:28:27,920 Speaker 1: resigned to look at your portfolio only once a year, 636 00:28:28,119 --> 00:28:30,080 Speaker 1: because I think, yeah, day to day, month to month, 637 00:28:30,119 --> 00:28:32,600 Speaker 1: we see, we see a balance dropping, we see the 638 00:28:32,600 --> 00:28:35,639 Speaker 1: harmful effects of a recession hitting our investments, and we 639 00:28:35,680 --> 00:28:37,600 Speaker 1: want to take action. We want to do something. But 640 00:28:37,680 --> 00:28:40,320 Speaker 1: the problem is when we do something while the recession 641 00:28:40,480 --> 00:28:42,920 Speaker 1: is in full swing, we actually hurt our long term 642 00:28:42,960 --> 00:28:46,720 Speaker 1: financial future. So mental preparation is key, and whether that 643 00:28:46,760 --> 00:28:49,760 Speaker 1: means handing off your Vanguard password to your spouse or 644 00:28:50,000 --> 00:28:52,520 Speaker 1: typing in something random and you can't remember it, and 645 00:28:52,600 --> 00:28:54,760 Speaker 1: just not opening the statements. If you do get statements 646 00:28:54,760 --> 00:28:57,080 Speaker 1: in the mail or to your or to your email inbox, 647 00:28:57,400 --> 00:28:59,240 Speaker 1: that is going to make it so much better for 648 00:28:59,280 --> 00:29:01,760 Speaker 1: you because you're not going to make decisions based on 649 00:29:01,880 --> 00:29:04,080 Speaker 1: the day to day whims of the market. And again, 650 00:29:04,120 --> 00:29:06,160 Speaker 1: from a mental standpoint, right, it's easy to say that 651 00:29:06,240 --> 00:29:08,280 Speaker 1: you'll write it out when the stock values are near 652 00:29:08,320 --> 00:29:10,720 Speaker 1: all time highs. Things are great. If you feel good, 653 00:29:10,760 --> 00:29:12,360 Speaker 1: you're like, oh, of course, I'll do the smart thing 654 00:29:12,680 --> 00:29:14,760 Speaker 1: because mentally, you know you know that that's the right 655 00:29:14,800 --> 00:29:17,600 Speaker 1: thing to do. But however, it is much harder to do. 656 00:29:17,840 --> 00:29:21,800 Speaker 1: If you're watching your portfolio drop with no end in sight, 657 00:29:22,160 --> 00:29:24,040 Speaker 1: you might start to panic, and so you need to 658 00:29:24,040 --> 00:29:27,480 Speaker 1: prepare yourself to stomach the ups and the downs. And 659 00:29:27,560 --> 00:29:29,880 Speaker 1: so this is why Joel, that we're talking about this now, 660 00:29:29,920 --> 00:29:32,760 Speaker 1: we're talking about this ahead of time, because if you 661 00:29:32,800 --> 00:29:35,200 Speaker 1: can and sort of do the mental exercises of what 662 00:29:35,320 --> 00:29:38,440 Speaker 1: it might feel like to to see your portfolio drop by, 663 00:29:39,240 --> 00:29:41,360 Speaker 1: it just prepares you and hopefully that will put in 664 00:29:41,440 --> 00:29:44,320 Speaker 1: a better position when it comes time to continue to 665 00:29:44,320 --> 00:29:47,960 Speaker 1: stay the course. Yeah, and not all recessions are created equal. 666 00:29:48,200 --> 00:29:49,600 Speaker 1: You know. The last one that we went through in 667 00:29:49,600 --> 00:29:52,640 Speaker 1: our country ten years ago was was really hard and 668 00:29:52,800 --> 00:29:55,040 Speaker 1: it affected a lot of people, a lot of porclosures, 669 00:29:55,120 --> 00:29:58,240 Speaker 1: lots of job loss, So many terrible things can happen 670 00:29:58,320 --> 00:30:00,480 Speaker 1: during a recession. But one of the bigg things that 671 00:30:00,600 --> 00:30:03,200 Speaker 1: average people who didn't lose their job, didn't lose her house, 672 00:30:03,760 --> 00:30:06,120 Speaker 1: did that actually hurt them in the long run was 673 00:30:06,200 --> 00:30:09,680 Speaker 1: changing their allocation of their portfolio while the stock market 674 00:30:09,800 --> 00:30:13,520 Speaker 1: was experiencing its greatest discomfort. I mean, I had a 675 00:30:13,560 --> 00:30:16,480 Speaker 1: friend who at work who told me that he was 676 00:30:16,920 --> 00:30:19,360 Speaker 1: selling his stocks and going into cash because he couldn't 677 00:30:19,360 --> 00:30:22,880 Speaker 1: handle it anymore. And while I understand that mental reaction, 678 00:30:23,080 --> 00:30:24,680 Speaker 1: you have to be able to kind of close yourself 679 00:30:24,720 --> 00:30:27,360 Speaker 1: off from that possibility because that is when you bake 680 00:30:27,400 --> 00:30:29,640 Speaker 1: in losses, and that is when you harm your long 681 00:30:29,720 --> 00:30:32,320 Speaker 1: term potential financial future. That's right, That's that's when you 682 00:30:32,320 --> 00:30:35,719 Speaker 1: actually realize those losses. Hopefully he didn't sell in summer 683 00:30:35,720 --> 00:30:38,880 Speaker 1: of two thousand nine, because I don't remember what it was, 684 00:30:38,960 --> 00:30:40,840 Speaker 1: but it was not It was not good. Wasn't at 685 00:30:40,840 --> 00:30:42,640 Speaker 1: the very bottom of the market. It was pretty close 686 00:30:42,680 --> 00:30:44,720 Speaker 1: to it somewhere around there, and and yeah, like that's 687 00:30:44,840 --> 00:30:47,400 Speaker 1: that's how people ultimately hurt themselves the most, because if 688 00:30:47,440 --> 00:30:49,479 Speaker 1: you look back, and it's actually helpful that we've had 689 00:30:49,480 --> 00:30:51,880 Speaker 1: one so recently to look back and see how quickly 690 00:30:51,920 --> 00:30:54,800 Speaker 1: things turned around. And you know, we don't have any 691 00:30:54,920 --> 00:30:58,760 Speaker 1: prognostication tools. We don't prognostication I like it right. We 692 00:30:58,800 --> 00:31:01,040 Speaker 1: can't read the future. I don't have a crystal ball. 693 00:31:01,200 --> 00:31:03,200 Speaker 1: But it's important to kind of see that history. It's 694 00:31:03,200 --> 00:31:05,480 Speaker 1: actually helpful to note that it lasted for you know, 695 00:31:05,520 --> 00:31:09,280 Speaker 1: a couple really hard years, but what ultimately happens, things 696 00:31:09,360 --> 00:31:11,719 Speaker 1: kind of come back to a state of normalcy. That's right, man, 697 00:31:11,760 --> 00:31:14,080 Speaker 1: you gotta write it back up. And then one last 698 00:31:14,080 --> 00:31:17,560 Speaker 1: tip is that you need to have your cash ready 699 00:31:17,600 --> 00:31:19,840 Speaker 1: and so now is the time to work to be 700 00:31:19,840 --> 00:31:22,800 Speaker 1: in a position to invest more during the next recession. 701 00:31:23,360 --> 00:31:27,440 Speaker 1: Warm buffet encourages people to be greedy when others are fearful, 702 00:31:27,680 --> 00:31:31,560 Speaker 1: and fearful when others are greedy, and honestly, what that 703 00:31:31,600 --> 00:31:34,200 Speaker 1: means is not listening to the news because people get 704 00:31:34,240 --> 00:31:35,920 Speaker 1: scared and they freak each other out, and there's this 705 00:31:35,960 --> 00:31:39,320 Speaker 1: herd mentality and everyone starts selling. That's the precise time 706 00:31:39,400 --> 00:31:41,960 Speaker 1: that you want to take advantage of the market being 707 00:31:42,040 --> 00:31:44,000 Speaker 1: on sale. You don't just want your finances to be 708 00:31:44,040 --> 00:31:46,880 Speaker 1: recession proof. You don't want to just get by. But 709 00:31:47,200 --> 00:31:49,640 Speaker 1: what we're talking about here will allow us to be 710 00:31:49,760 --> 00:31:52,640 Speaker 1: ready and prepared and to excel and do even better 711 00:31:52,920 --> 00:31:55,000 Speaker 1: the next time there's a downturn. You have to take 712 00:31:55,000 --> 00:31:58,680 Speaker 1: advantage of opportunity that comes along this episode, Matt, we 713 00:31:58,760 --> 00:32:00,680 Speaker 1: created it not to worry people. We don't want to 714 00:32:00,680 --> 00:32:03,680 Speaker 1: free people out. We're not making any predictions even that 715 00:32:03,760 --> 00:32:06,080 Speaker 1: a recession is going to happen. I think it's important 716 00:32:06,120 --> 00:32:08,880 Speaker 1: to realize though, that there is a potential for a 717 00:32:08,920 --> 00:32:11,920 Speaker 1: recession to come, and it isn't something to be worried about, 718 00:32:11,960 --> 00:32:13,280 Speaker 1: to be on pins and needles, to be on the 719 00:32:13,360 --> 00:32:15,320 Speaker 1: edge of your seat, but it is something to be 720 00:32:15,360 --> 00:32:18,160 Speaker 1: prepared for, and if you are willing to take, you know, 721 00:32:18,280 --> 00:32:20,400 Speaker 1: just some of the steps that we mentioned above, you're 722 00:32:20,440 --> 00:32:23,400 Speaker 1: gonna put yourself in such a better position to kind 723 00:32:23,400 --> 00:32:27,520 Speaker 1: of handle personally whatever difficulty may occur during a recession, 724 00:32:27,720 --> 00:32:29,880 Speaker 1: while at the same time just getting your personal finances 725 00:32:30,080 --> 00:32:32,400 Speaker 1: in a good space. Another thing to consider too is 726 00:32:32,520 --> 00:32:35,280 Speaker 1: know your individual situation. Right, If you are in an 727 00:32:35,280 --> 00:32:38,320 Speaker 1: industry that is greatly affected by the market, that sees 728 00:32:38,360 --> 00:32:40,760 Speaker 1: a lot of ups and downs in conjunction with the 729 00:32:40,840 --> 00:32:43,640 Speaker 1: ups and downs of the market, you might want to say, 730 00:32:43,680 --> 00:32:46,640 Speaker 1: build a fatter emergency fund, right. Or you might be 731 00:32:46,680 --> 00:32:49,120 Speaker 1: in an industry that is not affected by the market, 732 00:32:49,160 --> 00:32:52,440 Speaker 1: like doctors, right, the medical industry. Really it isn't affected 733 00:32:52,480 --> 00:32:55,040 Speaker 1: that much by swings on the market. No, your specific 734 00:32:55,080 --> 00:32:57,440 Speaker 1: situation and just trying to be smart about take that 735 00:32:57,480 --> 00:32:59,560 Speaker 1: into account when it comes to how you are going 736 00:32:59,600 --> 00:33:02,040 Speaker 1: to prepare for a potential downturn in the market. Yeah, 737 00:33:02,080 --> 00:33:05,360 Speaker 1: I think about when oil prices hit a super low 738 00:33:05,400 --> 00:33:08,000 Speaker 1: price of close to like forty barrel, maybe maybe it 739 00:33:08,120 --> 00:33:09,800 Speaker 1: even went a little bit lower than that. I just 740 00:33:09,800 --> 00:33:14,480 Speaker 1: remember he reading stories about so many job losses that 741 00:33:14,640 --> 00:33:17,720 Speaker 1: were completely unexpected from people working in Texas, working in 742 00:33:17,720 --> 00:33:21,680 Speaker 1: the oil industry around the country, ghost towns. Yeah, completely overnight. 743 00:33:22,040 --> 00:33:24,400 Speaker 1: And so think about what industry you're in, how long 744 00:33:24,440 --> 00:33:26,920 Speaker 1: you've been at your employer. It's obviously important to take 745 00:33:27,040 --> 00:33:29,760 Speaker 1: some of these steps anyway, but it's really important to 746 00:33:29,800 --> 00:33:31,640 Speaker 1: kind of take stock of your own situation. It helps 747 00:33:31,640 --> 00:33:34,400 Speaker 1: you kind of factor in how much effort you need 748 00:33:34,440 --> 00:33:36,160 Speaker 1: to put into some of these things. Yeah, that's right, 749 00:33:36,240 --> 00:33:38,280 Speaker 1: some folks just might be more at risk. All right, Matt, 750 00:33:38,320 --> 00:33:40,200 Speaker 1: Let's get back to the beer. The beer that we 751 00:33:40,280 --> 00:33:44,120 Speaker 1: drank today was Sierra Nevada Resilience. I p A. May Man. 752 00:33:44,120 --> 00:33:46,160 Speaker 1: This was a delicious beer and it poured a nice 753 00:33:46,480 --> 00:33:49,640 Speaker 1: clear amber with a beautiful head, sort of like an 754 00:33:49,640 --> 00:33:51,840 Speaker 1: old school beer. Right, Yeah, that was the word I 755 00:33:51,960 --> 00:33:54,920 Speaker 1: used to describe Sierra Nevada's Resilience. I p A. And 756 00:33:55,000 --> 00:33:56,720 Speaker 1: by the way, I would drink so much of this 757 00:33:56,760 --> 00:33:58,479 Speaker 1: beer just for the cause. I love that that my 758 00:33:58,480 --> 00:34:00,800 Speaker 1: money is going to to help people that were affected 759 00:34:00,840 --> 00:34:03,000 Speaker 1: by the wildfires in California. But the word I used 760 00:34:03,000 --> 00:34:05,400 Speaker 1: to describe this beer, it was old school. It really 761 00:34:05,400 --> 00:34:09,080 Speaker 1: reminds me of their winter beer celebration. Oh yeah, it's 762 00:34:09,120 --> 00:34:12,720 Speaker 1: got this just truly iconic old school I p A vibe. 763 00:34:13,000 --> 00:34:14,960 Speaker 1: And I feel like, honestly, if you had poured this 764 00:34:15,000 --> 00:34:17,640 Speaker 1: class for me and you hadn't have told me what 765 00:34:17,719 --> 00:34:19,560 Speaker 1: brewery was from, I would have said, that's a sering 766 00:34:19,600 --> 00:34:22,640 Speaker 1: about ide you feel. It's like their beers are iconic 767 00:34:22,760 --> 00:34:25,600 Speaker 1: in a way. And this beer, while not the style 768 00:34:25,640 --> 00:34:28,680 Speaker 1: I necessarily trend towards at this moment in time with 769 00:34:28,680 --> 00:34:30,880 Speaker 1: what I like to drink. It's refreshing to have this. 770 00:34:31,040 --> 00:34:34,640 Speaker 1: It's such a good beer. It's so distinct and flavorful. 771 00:34:35,000 --> 00:34:37,680 Speaker 1: I love what's hearing about it does and this is 772 00:34:37,760 --> 00:34:40,640 Speaker 1: just another really really good beer from them. Man. In 773 00:34:40,680 --> 00:34:43,960 Speaker 1: my word was multi because yeah, it just has a 774 00:34:44,080 --> 00:34:46,879 Speaker 1: huge malt backbone. In my in my opinion, so many 775 00:34:46,840 --> 00:34:48,799 Speaker 1: of the I pas that we're drinking today are very 776 00:34:48,920 --> 00:34:54,280 Speaker 1: florally and citrusy and hazy. Uh it's it's the new school. 777 00:34:54,280 --> 00:34:56,840 Speaker 1: It's the East Coast I p a. And this is certainly, 778 00:34:57,000 --> 00:34:59,040 Speaker 1: uh more of an old school not even a West 779 00:34:59,080 --> 00:35:00,879 Speaker 1: Coast I pea, but more of the old school sort 780 00:35:00,920 --> 00:35:03,200 Speaker 1: of flavor profile. So a lot of malts. It's a 781 00:35:03,280 --> 00:35:06,040 Speaker 1: darker beer. That's why I said old school. Yell, come on, 782 00:35:06,800 --> 00:35:09,840 Speaker 1: But it's it's got that malt backbone where it's a 783 00:35:09,840 --> 00:35:11,920 Speaker 1: little bretty, and I think that's what a lot of 784 00:35:11,960 --> 00:35:14,120 Speaker 1: people think of when they think of of an old 785 00:35:14,160 --> 00:35:17,600 Speaker 1: school beer. They think sort of malts. And so yeah, 786 00:35:17,680 --> 00:35:20,399 Speaker 1: we're on the same page, man, old school MALTI beer. 787 00:35:20,520 --> 00:35:23,319 Speaker 1: This is delicious. I want to thank Philip Man thank 788 00:35:23,320 --> 00:35:26,120 Speaker 1: you so much for sending us these beers. This is fantastic. 789 00:35:26,320 --> 00:35:29,120 Speaker 1: And because we were sent these, Joe and I promise 790 00:35:29,200 --> 00:35:31,600 Speaker 1: to go out and we'll buy some of these ourselves 791 00:35:31,600 --> 00:35:34,799 Speaker 1: as well to personally support the cause to Yeah, and yeah, 792 00:35:34,800 --> 00:35:36,840 Speaker 1: if you see this on tap at your local brewery, 793 00:35:36,920 --> 00:35:39,680 Speaker 1: because that brewery decided to to support Sierra Nevada and 794 00:35:39,680 --> 00:35:42,000 Speaker 1: the employees of Sierra Nevada and the people affected by 795 00:35:42,080 --> 00:35:45,360 Speaker 1: by the wildfires in California through this route by that beer, 796 00:35:45,440 --> 00:35:47,600 Speaker 1: because first off, it's a good beer, and second off, 797 00:35:47,880 --> 00:35:50,760 Speaker 1: it's doing so much good. And yeah, I love that story, 798 00:35:51,040 --> 00:35:53,000 Speaker 1: and I love that Philippe sent us is beer to drink, 799 00:35:53,200 --> 00:35:54,920 Speaker 1: all right, Joel, these are our final thoughts when it 800 00:35:54,960 --> 00:35:58,360 Speaker 1: comes to recession proving your finances. Number One, build a 801 00:35:58,480 --> 00:36:01,759 Speaker 1: strong emergency fund. Cash is keen. You want to make 802 00:36:01,760 --> 00:36:04,720 Speaker 1: sure that you have enough margin, you have enough financial buffer. 803 00:36:04,760 --> 00:36:06,680 Speaker 1: You want to be ready with that cash to make 804 00:36:06,719 --> 00:36:08,880 Speaker 1: moves when the time comes and you just don't know 805 00:36:08,920 --> 00:36:11,840 Speaker 1: what the future holds. You might need that cash to float. 806 00:36:11,880 --> 00:36:13,600 Speaker 1: You buy it for a couple of months. Matt. It's 807 00:36:13,600 --> 00:36:16,000 Speaker 1: also important for folks to start attacking their high interest 808 00:36:16,080 --> 00:36:19,560 Speaker 1: rate debt now. Before the recession hits, because in the 809 00:36:19,560 --> 00:36:22,880 Speaker 1: event of a potential job loss or just to reduced income, 810 00:36:23,080 --> 00:36:25,560 Speaker 1: it's gonna be so much harder to attack that debt then, 811 00:36:25,880 --> 00:36:28,000 Speaker 1: So attack it now and make sure you're on solid 812 00:36:28,040 --> 00:36:30,480 Speaker 1: financial ground when it comes to the debt that you're carrying. 813 00:36:30,719 --> 00:36:34,600 Speaker 1: Another helpful tip is to create additional streams of income. 814 00:36:34,840 --> 00:36:36,560 Speaker 1: This is something that you can do with a side hustle, 815 00:36:36,680 --> 00:36:38,680 Speaker 1: this is something you can do with real estate, with 816 00:36:38,680 --> 00:36:42,080 Speaker 1: investment properties. But find a way to diversify your streams 817 00:36:42,080 --> 00:36:44,440 Speaker 1: of income. If you've got all your eggs one basket 818 00:36:44,480 --> 00:36:46,520 Speaker 1: with a single employer, well you're kind of at the 819 00:36:46,560 --> 00:36:50,480 Speaker 1: whims of whatever happens to not only that industry, but 820 00:36:50,680 --> 00:36:54,320 Speaker 1: that specific company, and so yeah, find ways to diversify. Also, 821 00:36:54,520 --> 00:36:57,680 Speaker 1: don't make super expensive plans for the future. You don't 822 00:36:57,760 --> 00:37:00,120 Speaker 1: want to write a check that you can't cash, and 823 00:37:00,120 --> 00:37:02,440 Speaker 1: you don't want to book an expensive vacation that you 824 00:37:02,480 --> 00:37:06,000 Speaker 1: can barely afford in light of a potential recession. Just 825 00:37:06,080 --> 00:37:09,239 Speaker 1: cut back on expensive potential plans and think small for 826 00:37:09,280 --> 00:37:11,759 Speaker 1: the time being. As you up your cash reserves, that 827 00:37:11,800 --> 00:37:13,960 Speaker 1: will make it a little bit easier in the future 828 00:37:14,040 --> 00:37:16,319 Speaker 1: to take that sweet vacation that you've always wanted to take. 829 00:37:16,640 --> 00:37:18,640 Speaker 1: And then finally, when it comes to your investments, man, 830 00:37:18,920 --> 00:37:21,920 Speaker 1: stay the course. If you are invested in low cost 831 00:37:21,960 --> 00:37:24,560 Speaker 1: index funds and you're invested in stocks, you know that 832 00:37:24,800 --> 00:37:26,680 Speaker 1: you're in this for the long haul. Do not be 833 00:37:26,760 --> 00:37:30,080 Speaker 1: affected by the news. Be ready, try to prepare yourself 834 00:37:30,080 --> 00:37:32,560 Speaker 1: so that you can stomach that. But in the end, 835 00:37:32,880 --> 00:37:35,400 Speaker 1: you know, like Joel mentioned earlier, looking back at the 836 00:37:35,400 --> 00:37:38,080 Speaker 1: Great recession right ten years ago, and you can see 837 00:37:38,160 --> 00:37:40,560 Speaker 1: the rise, and you can see where we've come from, 838 00:37:40,600 --> 00:37:43,600 Speaker 1: that's gonna happen again. Right. If you have confidence in 839 00:37:43,719 --> 00:37:46,680 Speaker 1: our country and in our economy and industry and business, 840 00:37:47,080 --> 00:37:49,120 Speaker 1: things are gonna be all right. And as long as 841 00:37:49,160 --> 00:37:51,560 Speaker 1: you do not sell and make any knee jerk reactions, 842 00:37:51,600 --> 00:37:54,640 Speaker 1: your portfolio is gonna end up just fine. Yeah, So again, 843 00:37:55,000 --> 00:37:57,200 Speaker 1: don't worry. We're not trying to freak you out. We're 844 00:37:57,200 --> 00:38:00,640 Speaker 1: not predicting anything, but we are saying that preparation is key, 845 00:38:00,719 --> 00:38:02,880 Speaker 1: and if a recession does happen, you want to make 846 00:38:02,880 --> 00:38:04,960 Speaker 1: sure that you're on solid financial footing and that you 847 00:38:05,000 --> 00:38:07,719 Speaker 1: can weather the storm and even potentially take advantage of 848 00:38:07,719 --> 00:38:10,200 Speaker 1: opportunities that come along. All right, everyone, Thanks so much 849 00:38:10,239 --> 00:38:12,680 Speaker 1: for listening. We will have show notes up for this 850 00:38:12,719 --> 00:38:16,520 Speaker 1: episode at our website, how to money dot com. Yeah, 851 00:38:16,520 --> 00:38:18,279 Speaker 1: and if you are a listener of the show, we 852 00:38:18,400 --> 00:38:20,400 Speaker 1: would love to hear from you. I know it takes 853 00:38:20,440 --> 00:38:22,200 Speaker 1: a minute of your time to hop over there to 854 00:38:22,239 --> 00:38:25,160 Speaker 1: Apple Podcasts to leave a review, but we really do 855 00:38:25,239 --> 00:38:27,120 Speaker 1: read them and it means a lot, right. It helps 856 00:38:27,200 --> 00:38:29,560 Speaker 1: us to get the word out for folks that haven't 857 00:38:29,600 --> 00:38:31,719 Speaker 1: heard the podcast yet, and it helps us to know 858 00:38:31,920 --> 00:38:35,000 Speaker 1: maybe what topics are resonating with you as listeners. We 859 00:38:35,000 --> 00:38:37,520 Speaker 1: actually see the reviews as a feedback loop and so 860 00:38:37,600 --> 00:38:40,040 Speaker 1: for us to be able to see what you found 861 00:38:40,080 --> 00:38:42,320 Speaker 1: helpful will help us to be just a better podcast 862 00:38:42,320 --> 00:38:45,480 Speaker 1: in general. So thank you in advance, no doubt, buddy. Okay, 863 00:38:45,600 --> 00:38:48,359 Speaker 1: until next time, Best friends Out, Best Friends Out.