1 00:00:00,080 --> 00:00:03,000 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,080 --> 00:00:27,600 Speaker 1: and today we're discussing checkout hacks, calming, compounding, and Balenciaga babies. Dude, 3 00:00:27,640 --> 00:00:32,320 Speaker 1: I barely know what Balenciaga is. There's no Emily doesn't 4 00:00:32,320 --> 00:00:36,600 Speaker 1: own any course, it's not a turn that we often 5 00:00:36,760 --> 00:00:39,320 Speaker 1: use and so but we know it's a fancy fashion. 6 00:00:40,000 --> 00:00:42,839 Speaker 1: I was going for the little Yeah, it's a fancy brand. Uh. 7 00:00:43,240 --> 00:00:45,199 Speaker 1: We are going to talk about the money that we 8 00:00:45,280 --> 00:00:47,520 Speaker 1: spend on babies, but this is our Friday fight. Uh. 9 00:00:47,520 --> 00:00:50,879 Speaker 1: And specifically we're talking about some of the different headlines 10 00:00:50,920 --> 00:00:53,559 Speaker 1: we've come across and specifically how those headlines are going 11 00:00:53,600 --> 00:00:57,280 Speaker 1: to impact your money, your ability to earn an invest 12 00:00:57,360 --> 00:01:00,000 Speaker 1: and to spend. But it looks like you've got a person, 13 00:01:00,000 --> 00:01:01,920 Speaker 1: well Finnance win here that you want to talk about. Yeah, 14 00:01:01,960 --> 00:01:04,480 Speaker 1: so I'm saving five hundred bucks this here for making 15 00:01:04,520 --> 00:01:06,800 Speaker 1: one move. We've talked about the show on the show before, 16 00:01:06,920 --> 00:01:09,920 Speaker 1: but we I just bought our house and they were 17 00:01:09,920 --> 00:01:12,200 Speaker 1: in July, right. We we moved in up here to 18 00:01:12,560 --> 00:01:15,760 Speaker 1: our new stopping grounds in July of this year, and 19 00:01:16,280 --> 00:01:19,600 Speaker 1: so many moving parts when we're buying a house that 20 00:01:20,160 --> 00:01:23,240 Speaker 1: I forgot to kind of think about what my deductible 21 00:01:23,240 --> 00:01:26,240 Speaker 1: is going to be on this new property, and that's 22 00:01:26,280 --> 00:01:27,959 Speaker 1: not something I have looked at either. I went back 23 00:01:28,000 --> 00:01:30,600 Speaker 1: in to look at my at my premiums, and I 24 00:01:30,600 --> 00:01:32,240 Speaker 1: was like, wait, this is is kind of high. Is 25 00:01:32,280 --> 00:01:34,800 Speaker 1: as kind of expensive as I'm like shopping everything, I'm 26 00:01:34,800 --> 00:01:37,200 Speaker 1: like literally reaching out to other insurers and stuff. It 27 00:01:37,240 --> 00:01:40,080 Speaker 1: turns out I've got a decent rate overall for all 28 00:01:40,080 --> 00:01:42,520 Speaker 1: the policies. I have a lot of layover policies, the 29 00:01:42,520 --> 00:01:45,680 Speaker 1: car insurance policy, the home policy. But I was like, 30 00:01:45,840 --> 00:01:47,600 Speaker 1: there's gotta be a way for me to cut this down. 31 00:01:47,720 --> 00:01:51,480 Speaker 1: And of course, yes, raising my deductible was a great 32 00:01:51,480 --> 00:01:53,720 Speaker 1: way for me to say five dred bucks more than 33 00:01:54,920 --> 00:01:58,080 Speaker 1: every single year. Granted it went a lot higher. So 34 00:01:58,120 --> 00:02:01,040 Speaker 1: my deductible is now not even a firm number. It 35 00:02:01,080 --> 00:02:04,440 Speaker 1: is a percentage of the home's value. So it's just 36 00:02:04,600 --> 00:02:07,080 Speaker 1: if something happens like I have to have a lot 37 00:02:07,120 --> 00:02:10,239 Speaker 1: of money on it to make a what's the percentage? 38 00:02:10,280 --> 00:02:12,160 Speaker 1: So I'm at three percent, you can do two or 39 00:02:12,200 --> 00:02:15,400 Speaker 1: three percent, which is my insurance cooking. And so based 40 00:02:15,440 --> 00:02:17,960 Speaker 1: on the amount of money I've got currently stashed away 41 00:02:18,160 --> 00:02:20,480 Speaker 1: in savings. I feel comfortable self insuring for this and 42 00:02:20,560 --> 00:02:24,000 Speaker 1: just taking taking that savings on the premium amount everyone 43 00:02:24,120 --> 00:02:27,800 Speaker 1: plus as you know, sure, the goal of this insurance 44 00:02:27,840 --> 00:02:29,560 Speaker 1: is is to never use it. Yeah, never use it. 45 00:02:29,680 --> 00:02:31,840 Speaker 1: You want to make sure that it's it's got to 46 00:02:31,880 --> 00:02:35,679 Speaker 1: be for something catastrophic, right, Otherwise, were you to use it, 47 00:02:35,680 --> 00:02:38,600 Speaker 1: you're going to see this rates skyrocket. Oftentimes it said 48 00:02:38,600 --> 00:02:41,119 Speaker 1: that if you use it, you lose it. But uh, man, 49 00:02:41,160 --> 00:02:42,919 Speaker 1: that's what made you so you were just shopping around 50 00:02:42,919 --> 00:02:45,920 Speaker 1: your insurance because typically I just got an angel reminder 51 00:02:45,960 --> 00:02:48,280 Speaker 1: comes around and so we bought our homes. Well we 52 00:02:48,360 --> 00:02:50,480 Speaker 1: got our house back in the spring. Uh And so 53 00:02:50,960 --> 00:02:52,600 Speaker 1: I feel like I would that would pop pop up 54 00:02:52,600 --> 00:02:54,520 Speaker 1: on my radar maybe in like February. So it was 55 00:02:54,600 --> 00:02:57,840 Speaker 1: because I got a notice of a bump up in 56 00:02:57,919 --> 00:03:02,000 Speaker 1: my car insurance rates by something close. So it was 57 00:03:02,080 --> 00:03:04,200 Speaker 1: it was a huge increase, and I saw I reached 58 00:03:04,240 --> 00:03:05,959 Speaker 1: back out to to my agent. I'm like, hey, what's 59 00:03:06,000 --> 00:03:09,160 Speaker 1: going on here? Like why so much? But this is honestly, 60 00:03:09,160 --> 00:03:11,160 Speaker 1: it's the reality for a lot of people around the country, 61 00:03:11,160 --> 00:03:13,600 Speaker 1: like rates or skyrock a lot of car insurance and 62 00:03:13,680 --> 00:03:16,400 Speaker 1: raising their raising the rates a lot exactly. So I 63 00:03:16,440 --> 00:03:17,880 Speaker 1: was like, how can we how can we knock this 64 00:03:17,880 --> 00:03:20,280 Speaker 1: one down? Sadly there wasn't much to do on that front, 65 00:03:20,280 --> 00:03:21,560 Speaker 1: but I was like, I gotta find somewhere else to 66 00:03:21,600 --> 00:03:24,080 Speaker 1: cut back if if my car insurance is going up 67 00:03:24,120 --> 00:03:27,680 Speaker 1: by by this drastic amount. So, uh, unfortunately we have 68 00:03:27,760 --> 00:03:29,880 Speaker 1: one car. Unfortunately it's a cheap car, so we don't 69 00:03:29,880 --> 00:03:32,720 Speaker 1: have full coverage. So even though it's going up, it's 70 00:03:33,080 --> 00:03:36,040 Speaker 1: it's relative, right, it's but it's uh, it's still I'm 71 00:03:36,040 --> 00:03:37,640 Speaker 1: glad I was able to find a way to claw 72 00:03:37,880 --> 00:03:40,080 Speaker 1: some savings back at the same time, jack up that 73 00:03:40,120 --> 00:03:42,760 Speaker 1: deductible on your home insurance because that isn't that insurance 74 00:03:42,760 --> 00:03:45,520 Speaker 1: that you typically want to see yourself using. But do 75 00:03:45,600 --> 00:03:47,560 Speaker 1: make sure you've got that emergency fund set aside to 76 00:03:47,680 --> 00:03:51,360 Speaker 1: handle that really high deductible if and when that event 77 00:03:51,360 --> 00:03:53,520 Speaker 1: ever does come. Yeah, and just a good reminder to 78 00:03:53,600 --> 00:03:55,360 Speaker 1: all of our listeners out there to take a look. 79 00:03:55,400 --> 00:03:56,840 Speaker 1: Do you know what your deductible is? And do you 80 00:03:56,880 --> 00:03:58,400 Speaker 1: know how much you could say if you raised it? 81 00:03:58,680 --> 00:04:00,280 Speaker 1: And can you afford to raise it, like you have 82 00:04:00,320 --> 00:04:03,120 Speaker 1: the money on hand to self ensure Those are those 83 00:04:03,160 --> 00:04:05,560 Speaker 1: are important questions, but We'll hope you ask him because 84 00:04:05,640 --> 00:04:07,280 Speaker 1: it could could save you a lot of money. All right, man, 85 00:04:07,360 --> 00:04:10,280 Speaker 1: let's get to our Friday flight. So this is that 86 00:04:10,400 --> 00:04:12,920 Speaker 1: quick sampling of stories that we found interesting this week. 87 00:04:12,960 --> 00:04:15,360 Speaker 1: And first we want to get to I bonds. And 88 00:04:15,480 --> 00:04:18,640 Speaker 1: despite the litany of issues that we heard about from 89 00:04:18,720 --> 00:04:21,720 Speaker 1: listeners and you know, from the interwebs in general, the 90 00:04:21,800 --> 00:04:24,760 Speaker 1: Treasury Department they managed to sell almost one billion dollars 91 00:04:24,760 --> 00:04:28,440 Speaker 1: worth of I bonds in a single day last Friday. 92 00:04:28,800 --> 00:04:32,120 Speaker 1: It's a tremendous amount of of money flowing into I bons, 93 00:04:32,160 --> 00:04:34,680 Speaker 1: something that most folks hadn't even heard of before. If 94 00:04:34,680 --> 00:04:37,000 Speaker 1: you missed out because of some of those web glitches, 95 00:04:37,120 --> 00:04:39,160 Speaker 1: or maybe it just wasn't even on your radar up 96 00:04:39,200 --> 00:04:42,040 Speaker 1: until now. That's okay. The new rate on I bons 97 00:04:42,240 --> 00:04:44,800 Speaker 1: has shrunk, but it's still uh in my opinion, do 98 00:04:44,839 --> 00:04:48,799 Speaker 1: it like a super solid six point eight nine almost seven. 99 00:04:49,440 --> 00:04:52,080 Speaker 1: And it's actually higher than most had predicted because the 100 00:04:52,120 --> 00:04:55,800 Speaker 1: Treasury Department they added a point four percent fixed rate 101 00:04:55,800 --> 00:04:58,800 Speaker 1: of interest in addition to to netting the rate of inflation. 102 00:04:59,279 --> 00:05:02,840 Speaker 1: So this means that even as inflation eases, you'll still 103 00:05:02,880 --> 00:05:06,559 Speaker 1: have a fixed rate floor to count on. Which still 104 00:05:06,560 --> 00:05:09,960 Speaker 1: makes I bonds an attractive buy for a decent checken folks. 105 00:05:10,240 --> 00:05:12,360 Speaker 1: But it's also important to mention that I bonds there 106 00:05:12,360 --> 00:05:14,760 Speaker 1: are a great tool for medium term savers. We're talking 107 00:05:15,360 --> 00:05:17,400 Speaker 1: at least I mean, you can't touch it for at 108 00:05:17,480 --> 00:05:19,320 Speaker 1: least one year, but you know, if not two to 109 00:05:19,360 --> 00:05:21,680 Speaker 1: three years, that is a good time friend. To keep 110 00:05:21,680 --> 00:05:23,480 Speaker 1: in mind, this isn't money that you need to have 111 00:05:23,640 --> 00:05:26,600 Speaker 1: access to immediately. But I mean, said younger, folks with 112 00:05:26,680 --> 00:05:28,919 Speaker 1: an even longer time horizon are still better off stalking 113 00:05:28,960 --> 00:05:33,599 Speaker 1: away money into the stock market via those tax advantage accounts. Um. 114 00:05:33,640 --> 00:05:35,680 Speaker 1: But the the other thing to point out two is 115 00:05:35,760 --> 00:05:38,960 Speaker 1: that fixed rate floor, that point four percent, that's actually 116 00:05:39,000 --> 00:05:40,960 Speaker 1: good for the full length of the bond. So we're 117 00:05:41,000 --> 00:05:44,159 Speaker 1: talking a solid thirty years, and granted it's not much, 118 00:05:44,200 --> 00:05:45,640 Speaker 1: but it is nice to know that you can kind 119 00:05:45,640 --> 00:05:47,880 Speaker 1: of always count on at least that point four percent. 120 00:05:48,000 --> 00:05:49,640 Speaker 1: And there's not a whole lot of folks, let's say 121 00:05:49,640 --> 00:05:51,360 Speaker 1: inflation does go back to normal, who are gonna want 122 00:05:51,360 --> 00:05:53,640 Speaker 1: to hold on to this I bond for full thirty years? 123 00:05:53,720 --> 00:05:56,480 Speaker 1: I can't imagine most of our listeners are gonna probably 124 00:05:56,480 --> 00:05:58,800 Speaker 1: not as the rate does go back down. But you're right. 125 00:05:58,960 --> 00:06:01,200 Speaker 1: I think it's it isn't. Weren't to mention as well 126 00:06:01,240 --> 00:06:02,960 Speaker 1: that I bans have gotten a lot of press. We've 127 00:06:02,960 --> 00:06:06,000 Speaker 1: talked about I bonds quite a bit, but still even 128 00:06:06,040 --> 00:06:07,920 Speaker 1: while I bonds remained a great deal, they remain a 129 00:06:07,960 --> 00:06:10,479 Speaker 1: great deal for certain folks in certain situations. And there 130 00:06:10,520 --> 00:06:12,640 Speaker 1: are a lot of people who would be better served 131 00:06:12,640 --> 00:06:15,640 Speaker 1: by investing more and not even really considering I bonds. 132 00:06:15,880 --> 00:06:17,880 Speaker 1: But yeah, so much comes down to the individual. And 133 00:06:17,960 --> 00:06:19,880 Speaker 1: let's talk about gift giving for a second, map because 134 00:06:19,880 --> 00:06:22,160 Speaker 1: we are getting close to that time of year. There's 135 00:06:22,240 --> 00:06:24,200 Speaker 1: a new survey that I saw this week that came 136 00:06:24,560 --> 00:06:27,360 Speaker 1: out from TransUnion, one of the credit bureaus, and it 137 00:06:27,480 --> 00:06:30,320 Speaker 1: found that a decent chunk of shoppers are changing the 138 00:06:30,360 --> 00:06:33,040 Speaker 1: way they think about buying gifts for their loved ones 139 00:06:33,120 --> 00:06:36,640 Speaker 1: this coming holiday season. I think largely due to the 140 00:06:36,680 --> 00:06:39,440 Speaker 1: reality of inflation, which is part of the reason I 141 00:06:39,480 --> 00:06:41,920 Speaker 1: bonds are so valuable right now. But a third of 142 00:06:41,960 --> 00:06:45,760 Speaker 1: folks said they planned to buy fewer gifts. Overall, seventeen 143 00:06:45,800 --> 00:06:48,600 Speaker 1: percent of people said they planned to buy cheap gifts, 144 00:06:48,839 --> 00:06:52,560 Speaker 1: and thirteen percent said they are turning to more practical 145 00:06:52,960 --> 00:06:56,560 Speaker 1: gift options over the holidays, And I gotta say, Matt, 146 00:06:56,640 --> 00:06:59,000 Speaker 1: I mostly like the people are pivoting in these ways. 147 00:06:59,040 --> 00:07:00,800 Speaker 1: I think this is a good sign because we do 148 00:07:00,880 --> 00:07:04,200 Speaker 1: have to make different decisions as inflation roars. Like if 149 00:07:04,200 --> 00:07:06,360 Speaker 1: your salary hasn't kept up with the pace of inflation, 150 00:07:06,800 --> 00:07:09,320 Speaker 1: you you're spending power has gone down and you have 151 00:07:09,400 --> 00:07:13,520 Speaker 1: to change accordingly. So, yeah, buying fewer gifts, as long 152 00:07:13,560 --> 00:07:16,200 Speaker 1: as you're communicating that with potential family and friends, I'd 153 00:07:16,240 --> 00:07:18,600 Speaker 1: say that's one of the best ways to go totally. Yeah. 154 00:07:18,600 --> 00:07:20,920 Speaker 1: We actually talked about this last year with Meg Nordman 155 00:07:21,440 --> 00:07:24,800 Speaker 1: on how to have a minimalist Christmas. We can link 156 00:07:24,840 --> 00:07:26,800 Speaker 1: to that episode in their show notes. And you know, 157 00:07:26,840 --> 00:07:28,840 Speaker 1: you definitely don't want to just show up without any 158 00:07:28,880 --> 00:07:32,640 Speaker 1: gifts on the day of the family gets together because 159 00:07:32,680 --> 00:07:35,440 Speaker 1: you're tied on cash. That's not cool. But other friends 160 00:07:35,480 --> 00:07:38,320 Speaker 1: and family members, uh, they're they're likely filling the inflation 161 00:07:38,360 --> 00:07:42,360 Speaker 1: pinch as well, and they will probably welcome this conversation. 162 00:07:42,400 --> 00:07:44,760 Speaker 1: It'll actually be a relief for them. Uh. And so 163 00:07:44,840 --> 00:07:47,640 Speaker 1: that earlier that you make this phone call or even 164 00:07:47,680 --> 00:07:51,400 Speaker 1: better FaceTime, the better. We're still in early November, so 165 00:07:51,440 --> 00:07:53,840 Speaker 1: you know, cleaning the air about gift expectations now. It's 166 00:07:53,840 --> 00:07:56,640 Speaker 1: a smart move. And if you haven't even started thinking 167 00:07:56,680 --> 00:07:58,160 Speaker 1: about gifts at all, for the gifts that you are 168 00:07:58,160 --> 00:07:59,960 Speaker 1: going to get, I think it also makes sense to 169 00:08:00,080 --> 00:08:02,920 Speaker 1: start thinking now. Um. I say this because we recently 170 00:08:02,960 --> 00:08:05,760 Speaker 1: purchased a gift for my father in law. This is 171 00:08:05,800 --> 00:08:08,320 Speaker 1: a gift that we had kind of thought of last year. 172 00:08:08,400 --> 00:08:09,960 Speaker 1: We didn't pull the trigger on it, but it was 173 00:08:10,000 --> 00:08:12,880 Speaker 1: still on our minds, and uh, it popped up thirty 174 00:08:12,920 --> 00:08:14,520 Speaker 1: It is like thirty or forty pc off on slick 175 00:08:14,560 --> 00:08:17,440 Speaker 1: Deals one of their daily emails. Nice So slick Deals, 176 00:08:17,600 --> 00:08:19,600 Speaker 1: Deal News. Those are sites that we talk about often. 177 00:08:19,600 --> 00:08:21,600 Speaker 1: But if you thought about it ahead of time, if 178 00:08:21,640 --> 00:08:23,760 Speaker 1: you've identified those gifts, then they can be on your radar. 179 00:08:23,880 --> 00:08:26,640 Speaker 1: That way you can be sure to find the best deal. Yeah. 180 00:08:26,640 --> 00:08:28,440 Speaker 1: I like that. And and again I do like that 181 00:08:28,520 --> 00:08:31,720 Speaker 1: idea too, of just fewer gifts overall. I think, especially 182 00:08:32,320 --> 00:08:36,920 Speaker 1: like when we talked with Meg, fewer quality gifts, just 183 00:08:37,000 --> 00:08:39,560 Speaker 1: not the junk, not buying for adults, just saying listen, 184 00:08:39,600 --> 00:08:41,800 Speaker 1: we're not doing gift giving for adults this year, or 185 00:08:41,840 --> 00:08:43,199 Speaker 1: something like that. That That can actually take a lot of 186 00:08:43,200 --> 00:08:45,200 Speaker 1: the pressure off because sometimes we're like, oh, I gotta 187 00:08:45,240 --> 00:08:48,120 Speaker 1: get something, and it's hard to Like my dad, love 188 00:08:48,160 --> 00:08:50,280 Speaker 1: the guy, I don't know how to buy anything for him, 189 00:08:50,320 --> 00:08:52,880 Speaker 1: Like it's he's so hard to shop for. And so 190 00:08:53,440 --> 00:08:56,560 Speaker 1: sometimes calling off the gift giving can actually like make 191 00:08:56,640 --> 00:09:00,440 Speaker 1: it a better holiday and only give gifts for kiddos 192 00:09:00,520 --> 00:09:02,600 Speaker 1: under fifteen or eighteen, I don't know whatever. I think 193 00:09:02,600 --> 00:09:05,120 Speaker 1: that's when you bust out the coupon for a night 194 00:09:05,120 --> 00:09:07,480 Speaker 1: out on the town with you and me, pops, rather 195 00:09:07,520 --> 00:09:10,040 Speaker 1: than an actual item that you you package. I've gone 196 00:09:10,040 --> 00:09:13,080 Speaker 1: to that well many times at this point. But yeah, 197 00:09:13,120 --> 00:09:15,880 Speaker 1: it's it's worth thinking about, like as everything is getting 198 00:09:15,880 --> 00:09:19,559 Speaker 1: more expensive, like do you change your your tactics when 199 00:09:19,559 --> 00:09:21,360 Speaker 1: it comes to buying gifts this year? And all right, 200 00:09:21,400 --> 00:09:24,240 Speaker 1: malict's get that to that Balenciaga baby's story. I really 201 00:09:24,240 --> 00:09:26,720 Speaker 1: like this one. This one was probably my favorite article 202 00:09:26,760 --> 00:09:29,400 Speaker 1: from the past week from the Atlantic, and it was 203 00:09:29,440 --> 00:09:33,480 Speaker 1: titled Babies Don't Need Fancy Things, which I love. That's 204 00:09:33,480 --> 00:09:35,600 Speaker 1: a great title and in and of itself great headlines. 205 00:09:35,640 --> 00:09:38,760 Speaker 1: So freaking true because weddings and babies are, of course, 206 00:09:39,040 --> 00:09:42,520 Speaker 1: two places where folks will spend insane amounts of money 207 00:09:43,080 --> 00:09:46,000 Speaker 1: without really batting an eye. So yeah, from fancy strollers 208 00:09:46,040 --> 00:09:50,439 Speaker 1: to newfangled sleeping devices. The amount of money slashing around 209 00:09:51,200 --> 00:09:53,920 Speaker 1: in like even just like the baby development spased match 210 00:09:54,200 --> 00:09:57,200 Speaker 1: to develop new products. It's astronomical. And marketers, of course, 211 00:09:57,240 --> 00:09:59,040 Speaker 1: they want you to spend your money on the products 212 00:09:59,040 --> 00:10:01,560 Speaker 1: that they've created. The best line in this article mat 213 00:10:01,559 --> 00:10:04,760 Speaker 1: was when it said that these marketers equate certain kinds 214 00:10:04,800 --> 00:10:08,600 Speaker 1: of consumption with responsible parenting. They that's true. They are 215 00:10:08,640 --> 00:10:11,480 Speaker 1: selling you. That's the brainwashing that has occurred. Yes, in 216 00:10:11,600 --> 00:10:14,080 Speaker 1: order to be a good parent, you have to get 217 00:10:14,120 --> 00:10:17,600 Speaker 1: these items. Uh. The pressure is real for parents because 218 00:10:17,600 --> 00:10:21,439 Speaker 1: they see that marketing. They internalize it and they feel like, well, 219 00:10:21,440 --> 00:10:23,320 Speaker 1: I got to spend money to show that I actually 220 00:10:23,320 --> 00:10:25,400 Speaker 1: love my kid. But we say, we agree with this 221 00:10:25,559 --> 00:10:28,680 Speaker 1: article's babies don't need fancy things. And it's hard to 222 00:10:28,720 --> 00:10:32,520 Speaker 1: turn a deaf ear to this finely tuned marketing machine 223 00:10:32,800 --> 00:10:35,040 Speaker 1: trying to part you from your dollars. But we would 224 00:10:35,040 --> 00:10:38,200 Speaker 1: say it's it's in your best financial interest to at 225 00:10:38,240 --> 00:10:40,600 Speaker 1: least try to put on the ear muffs, give it 226 00:10:40,600 --> 00:10:42,240 Speaker 1: a shot, say la la la la, la la la, 227 00:10:42,320 --> 00:10:45,200 Speaker 1: and and and try to avoid all of the fancy 228 00:10:45,200 --> 00:10:47,640 Speaker 1: schmancy baby stuff that's coming down the pipe. Yeah, and 229 00:10:47,720 --> 00:10:49,439 Speaker 1: we've got a lot of kidos, Joel, Like you, you've 230 00:10:49,559 --> 00:10:52,080 Speaker 1: you've got three kids. We have four. Our youngest dudes 231 00:10:52,080 --> 00:10:55,360 Speaker 1: they're still toddlers, so we feel this pressure ourselves. Um, 232 00:10:55,400 --> 00:10:58,800 Speaker 1: and we've seen how so many baby items they're described 233 00:10:58,840 --> 00:11:02,640 Speaker 1: as miracle purchases. Right, they're gonna fix whatever ails your baby. 234 00:11:03,160 --> 00:11:05,200 Speaker 1: Therefore it's going to decrease your stress levels as well. 235 00:11:05,679 --> 00:11:08,439 Speaker 1: The biggest money making promise, honestly is it's like anything 236 00:11:08,480 --> 00:11:10,000 Speaker 1: that will get your kids to sleep through the night, 237 00:11:10,320 --> 00:11:12,680 Speaker 1: even sell diapers now, that will promise better sleep for 238 00:11:12,679 --> 00:11:15,360 Speaker 1: your child. Seriously, I gotta say, what they're really promising 239 00:11:15,559 --> 00:11:18,000 Speaker 1: is what you care about more, is less about your 240 00:11:18,040 --> 00:11:19,560 Speaker 1: child sleep and more about your own sleep. Like if 241 00:11:19,559 --> 00:11:22,280 Speaker 1: they sleep, I'll sleep absolutely because you know that if 242 00:11:22,559 --> 00:11:25,400 Speaker 1: you can sleep and function during the day like that 243 00:11:25,480 --> 00:11:27,800 Speaker 1: is gonna make everybody happier. Like I definitely get that. 244 00:11:27,840 --> 00:11:31,040 Speaker 1: I mean this honestly. It makes me think of recently 245 00:11:31,160 --> 00:11:34,240 Speaker 1: our youngest he's been walking into our room in the 246 00:11:34,240 --> 00:11:36,760 Speaker 1: middle of the night, not sleeping through the night. And 247 00:11:36,960 --> 00:11:40,160 Speaker 1: this started a conversation between Kate and I and We're like, 248 00:11:40,200 --> 00:11:42,000 Speaker 1: you know, maybe what he needs is a big boy 249 00:11:42,000 --> 00:11:44,880 Speaker 1: bed because he's not really sleeping on it. It's just 250 00:11:44,920 --> 00:11:48,280 Speaker 1: like this little cheap phone mattress. We talked about this 251 00:11:48,320 --> 00:11:50,040 Speaker 1: for a little bit before it clicked him ahead and 252 00:11:50,080 --> 00:11:52,320 Speaker 1: I realized that we were it was a cell phone like, 253 00:11:52,360 --> 00:11:54,600 Speaker 1: we were falling into this trap. We weren't even being 254 00:11:54,640 --> 00:11:57,319 Speaker 1: presented with any marketing or advertising messages. It was us 255 00:11:57,320 --> 00:12:00,280 Speaker 1: convincing ourselves that maybe the solution here is the to 256 00:12:00,360 --> 00:12:02,960 Speaker 1: spend money to buy something a little bit fancier, something 257 00:12:02,960 --> 00:12:05,080 Speaker 1: a little bit nicer. But then I remember that, wait 258 00:12:05,120 --> 00:12:08,120 Speaker 1: a minute, our oldest daughter slept in that toddler bed 259 00:12:08,520 --> 00:12:11,720 Speaker 1: for until she was like five years old. So we're 260 00:12:11,720 --> 00:12:14,480 Speaker 1: convincing ourselves that, oh, yeah, it's it's not even a 261 00:12:14,520 --> 00:12:17,320 Speaker 1: real bed. It's just like this fake, pretend, little cheap 262 00:12:17,360 --> 00:12:20,760 Speaker 1: ikea toddler bed with like a four inch foam mattress, 263 00:12:21,160 --> 00:12:23,640 Speaker 1: until we were able to look back at history and 264 00:12:23,679 --> 00:12:26,080 Speaker 1: to realize that, wait a minute, this is not necessary. 265 00:12:26,280 --> 00:12:28,720 Speaker 1: And it turns out it's because he had a cold. 266 00:12:28,920 --> 00:12:30,400 Speaker 1: When I have a cold, I don't sleep that well 267 00:12:30,440 --> 00:12:32,720 Speaker 1: at night, and he is totally back to sleeping through 268 00:12:32,720 --> 00:12:35,040 Speaker 1: the night. Well, no additional dollars spent. It makes me 269 00:12:35,080 --> 00:12:37,600 Speaker 1: think too that there's just like this massive gap between 270 00:12:38,000 --> 00:12:41,560 Speaker 1: these expensive new baby items and then they're used value 271 00:12:41,920 --> 00:12:44,240 Speaker 1: on Craigslist or Facebook marketplace. And so that's one way 272 00:12:44,280 --> 00:12:46,120 Speaker 1: around it. If you are going to get yeah, if 273 00:12:46,160 --> 00:12:49,440 Speaker 1: you feel the need to get the snow whatever, the 274 00:12:49,480 --> 00:12:53,319 Speaker 1: baby sleeper that rotates at different times to make sure 275 00:12:53,320 --> 00:12:57,000 Speaker 1: that they sleep at their optimal levels, whatever, then buy 276 00:12:57,040 --> 00:13:00,160 Speaker 1: it used at least because they're they're like si new, 277 00:13:00,160 --> 00:13:01,120 Speaker 1: but I bet you can get one for a few 278 00:13:01,200 --> 00:13:03,720 Speaker 1: hundred dollars on Facebook marketplace like. And the thing is, 279 00:13:03,800 --> 00:13:06,280 Speaker 1: you don't keep many of these items around in your 280 00:13:06,320 --> 00:13:10,120 Speaker 1: life very long as your kid ages up, Like you're 281 00:13:10,120 --> 00:13:12,760 Speaker 1: getting rid of baby and kids stuff all the time. Yeah, 282 00:13:12,800 --> 00:13:16,200 Speaker 1: it's a revolving door of items. But we have and 283 00:13:16,400 --> 00:13:19,640 Speaker 1: provide for so buying new makes less sense by used 284 00:13:19,640 --> 00:13:20,760 Speaker 1: at least if you want to get some of those 285 00:13:20,800 --> 00:13:22,640 Speaker 1: fancy stuff, and then maybe at least you're not going 286 00:13:22,679 --> 00:13:24,160 Speaker 1: to lose a lot of money in the process because 287 00:13:24,160 --> 00:13:26,640 Speaker 1: then you can sell it used again and maybe might 288 00:13:26,640 --> 00:13:28,160 Speaker 1: be able to even get what you what you paid 289 00:13:28,200 --> 00:13:30,520 Speaker 1: for it. And exactly there you go, and honestly it 290 00:13:30,559 --> 00:13:32,560 Speaker 1: seems like the fancier the item, the more likely the 291 00:13:32,600 --> 00:13:34,360 Speaker 1: uter break. I feel like I saw there's articles this 292 00:13:34,360 --> 00:13:37,119 Speaker 1: past week of some sort of like baby stroller that's 293 00:13:37,120 --> 00:13:38,800 Speaker 1: been like breaking in half. It's like one of those 294 00:13:38,840 --> 00:13:41,560 Speaker 1: double baby strollers. Did you see that doesn't sound good? 295 00:13:41,840 --> 00:13:45,760 Speaker 1: I know that's the it's like completely collapsing and so 296 00:13:46,160 --> 00:13:49,960 Speaker 1: more money, more problems. That's why I approach it compared 297 00:13:50,000 --> 00:13:52,280 Speaker 1: to just like the classic crib or some of these 298 00:13:52,280 --> 00:13:55,960 Speaker 1: other items that are pretty basic. I think the simpler 299 00:13:56,000 --> 00:13:57,319 Speaker 1: that we can keep it, the better off will be. 300 00:13:57,480 --> 00:13:59,719 Speaker 1: And you are still a good parent even if you 301 00:13:59,760 --> 00:14:02,360 Speaker 1: don't bamboukoo dollars on all this crap that you're being 302 00:14:02,559 --> 00:14:05,360 Speaker 1: told you need to the love and attention and that 303 00:14:05,400 --> 00:14:07,800 Speaker 1: you're providing your kids, not the crap that you're buying 304 00:14:07,800 --> 00:14:10,640 Speaker 1: for them. Uh. Actually, speaking of buying stuff, there is 305 00:14:10,640 --> 00:14:14,160 Speaker 1: an interesting article on MSN money based on a TikTok 306 00:14:14,240 --> 00:14:17,920 Speaker 1: video about a new checkout hack that you might only consider, 307 00:14:18,440 --> 00:14:20,520 Speaker 1: especially if you're you're one of these folks who are 308 00:14:20,840 --> 00:14:22,560 Speaker 1: you know, who's always got like a pocket full of 309 00:14:22,560 --> 00:14:25,120 Speaker 1: spare change. You got that jar in the corner of 310 00:14:25,120 --> 00:14:26,400 Speaker 1: your room and you're trying to figure out what do 311 00:14:26,480 --> 00:14:28,480 Speaker 1: I do with all these coins? Exactly? Yeah, well, it 312 00:14:28,480 --> 00:14:31,040 Speaker 1: always works me to see folks using the coin star 313 00:14:31,120 --> 00:14:34,640 Speaker 1: machines at the grocery stores. Right they show up with 314 00:14:34,760 --> 00:14:38,240 Speaker 1: their jars and they turn that spare change into dollar bills. Uh. 315 00:14:38,280 --> 00:14:40,280 Speaker 1: But this is a bad route to take because cornstar 316 00:14:40,480 --> 00:14:43,520 Speaker 1: takes up to twelve and a half percent plus a 317 00:14:43,600 --> 00:14:48,520 Speaker 1: fifty cent transaction fee. Uh, and so instead of convenience exactly. 318 00:14:48,600 --> 00:14:50,880 Speaker 1: But what's crazy is that these often times you see 319 00:14:50,880 --> 00:14:54,400 Speaker 1: these at grocery stores, right, Well, instead, just take those 320 00:14:54,400 --> 00:14:56,920 Speaker 1: coins and use them when you're making a purchase at 321 00:14:56,920 --> 00:14:58,800 Speaker 1: a self checkout kiosk. Well, the thing is you can 322 00:14:58,840 --> 00:15:01,680 Speaker 1: literally bring if you eighty bucks worth of change, yes, 323 00:15:01,720 --> 00:15:03,600 Speaker 1: and if you have like a giant draw or feel 324 00:15:03,640 --> 00:15:05,440 Speaker 1: bad about so you don't have to feel bad about 325 00:15:05,440 --> 00:15:07,680 Speaker 1: it if you're using it a self checkout, because the 326 00:15:07,720 --> 00:15:11,440 Speaker 1: computer fine with that. But hopefully, hopefully you won't fill 327 00:15:11,520 --> 00:15:15,440 Speaker 1: up their coin reservoir. Uh and we will not accept 328 00:15:15,520 --> 00:15:19,240 Speaker 1: any more quarters. But yeah, self spare change. It kind 329 00:15:19,240 --> 00:15:21,960 Speaker 1: of sucks rolling your change. That's not fun either, But 330 00:15:22,040 --> 00:15:25,400 Speaker 1: dumping those coins into the self checkout machines specifically to 331 00:15:25,960 --> 00:15:27,880 Speaker 1: you know, spend them down for purchases you're already making. 332 00:15:27,920 --> 00:15:30,280 Speaker 1: We think that's brilliant. Do make sure that you keep 333 00:15:30,280 --> 00:15:32,720 Speaker 1: a quarter though, for when you do go to Aldi, 334 00:15:32,880 --> 00:15:34,920 Speaker 1: that you've got that quarter to be able to snag 335 00:15:35,000 --> 00:15:37,800 Speaker 1: that cart. But just the ability to take the edge 336 00:15:37,840 --> 00:15:40,160 Speaker 1: off as well. I like the idea of just always 337 00:15:40,280 --> 00:15:42,080 Speaker 1: spending down some of the change that you've got, like 338 00:15:42,120 --> 00:15:44,680 Speaker 1: in the ashtray of your car, maybe in your pocket, 339 00:15:44,720 --> 00:15:46,840 Speaker 1: that kind of thing. But either way, this takes the 340 00:15:46,960 --> 00:15:49,320 Speaker 1: edge off of higher prices that we're seeing in the 341 00:15:49,320 --> 00:15:51,840 Speaker 1: grocery store. And speaking of Aldi, we we actually have 342 00:15:51,880 --> 00:15:53,920 Speaker 1: another Aldi story that we're gonna get to right after 343 00:15:53,960 --> 00:15:56,480 Speaker 1: the break. We'll talk about car Loans on the Rise, 344 00:15:56,560 --> 00:15:58,680 Speaker 1: as well as five nine accounts. We'll get to all 345 00:15:58,720 --> 00:16:10,160 Speaker 1: of that right after this. All right, Matt, let's keep going. 346 00:16:10,280 --> 00:16:12,480 Speaker 1: It's our Friday Flights. We've got a lot more stories 347 00:16:12,760 --> 00:16:14,640 Speaker 1: to get to this week. And of course, every week 348 00:16:14,680 --> 00:16:17,680 Speaker 1: we tackle the ludicrous headline of the week, and this 349 00:16:17,720 --> 00:16:21,840 Speaker 1: one comes from CNBC and it reads, inflation has caused 350 00:16:22,800 --> 00:16:26,920 Speaker 1: adults to stop or reduce retirement savings. Bad news. Yeah, 351 00:16:27,000 --> 00:16:29,440 Speaker 1: we don't like seeing this because, yeah, we want people 352 00:16:29,440 --> 00:16:34,120 Speaker 1: obviously contributing to their tax advantage retirement accounts, especially especially 353 00:16:34,240 --> 00:16:37,200 Speaker 1: right now when the market is on sale, so investing 354 00:16:37,200 --> 00:16:40,520 Speaker 1: for your future. To us, it's non negotiable, right that 355 00:16:40,680 --> 00:16:44,920 Speaker 1: the idea of paying yourself first is crucial before you 356 00:16:44,960 --> 00:16:47,320 Speaker 1: start paying all those other bills. Yeah, it really is. 357 00:16:47,480 --> 00:16:49,120 Speaker 1: A friend of Joel is that this is a mutual 358 00:16:49,160 --> 00:16:52,240 Speaker 1: friend of ours. Reached out was like, Hey, my employer 359 00:16:52,320 --> 00:16:54,840 Speaker 1: is offering a high deductible healthcare healthcare plan and it's 360 00:16:54,840 --> 00:16:56,600 Speaker 1: got an h s A. What do you think I 361 00:16:56,600 --> 00:16:59,360 Speaker 1: should do? And I was like, oh, absolutely yeah, and 362 00:16:59,440 --> 00:17:02,080 Speaker 1: this employer chips in they will pay into that hs 363 00:17:02,160 --> 00:17:04,119 Speaker 1: A for you as well, so there's more free money there. 364 00:17:04,680 --> 00:17:06,360 Speaker 1: And but then he said, well, what if I don't 365 00:17:06,359 --> 00:17:08,240 Speaker 1: want to say from my retirement, And I don't know 366 00:17:08,280 --> 00:17:11,920 Speaker 1: if he was joking or not, like, than, you can't 367 00:17:11,920 --> 00:17:14,280 Speaker 1: be my friends. That's exactly what I said. But we 368 00:17:14,320 --> 00:17:16,440 Speaker 1: haven't talked about it in person yet. That's kind of 369 00:17:16,440 --> 00:17:18,280 Speaker 1: one of those conversations that you probably want to follow 370 00:17:18,359 --> 00:17:20,520 Speaker 1: up with in person rather than text. Well, just to 371 00:17:20,560 --> 00:17:22,639 Speaker 1: make sure he knows who's talking to Yeah, he knows 372 00:17:22,680 --> 00:17:25,040 Speaker 1: where I stand. Yeah. Well. In addition, in addition to 373 00:17:25,240 --> 00:17:29,240 Speaker 1: this people reducing their retirement contributions. Matt. The even more 374 00:17:29,359 --> 00:17:33,040 Speaker 1: shocking stat I saw in this article was that of 375 00:17:33,119 --> 00:17:35,720 Speaker 1: respondents said that they opted to take money out of 376 00:17:35,760 --> 00:17:38,600 Speaker 1: their retirement account in order to combat the higher prices 377 00:17:38,640 --> 00:17:41,960 Speaker 1: that we're seeing, which is even worse. Right, So it's 378 00:17:42,000 --> 00:17:44,640 Speaker 1: one thing to reduce or to even stop your retirement 379 00:17:44,640 --> 00:17:48,000 Speaker 1: contributions altogether for a period of time. Slow in the flow. Yeah, 380 00:17:48,200 --> 00:17:50,280 Speaker 1: that's a different tactic, and it's one that we don't 381 00:17:50,320 --> 00:17:53,560 Speaker 1: find as appalling. But when you're talking about taking money 382 00:17:53,640 --> 00:17:57,439 Speaker 1: out of your retirement account, you're reversing the flow that 383 00:17:57,560 --> 00:18:00,679 Speaker 1: prevents That creates bigger problems. And so if you're opting 384 00:18:00,680 --> 00:18:02,280 Speaker 1: to grab that money, let's say, in the form of 385 00:18:02,320 --> 00:18:05,560 Speaker 1: something like a hardship withdrawal, which has gotten easier in 386 00:18:05,640 --> 00:18:08,720 Speaker 1: recent years, so people can more easily say, yeah, I 387 00:18:08,760 --> 00:18:10,960 Speaker 1: got a hardship, but you don't really have to. It's 388 00:18:11,040 --> 00:18:14,439 Speaker 1: it's there's a more lenient process of approval for you 389 00:18:14,480 --> 00:18:16,720 Speaker 1: to snag that money. Well, that's even worse because you're 390 00:18:16,760 --> 00:18:18,920 Speaker 1: taking your money out of the market at a really 391 00:18:18,960 --> 00:18:21,719 Speaker 1: bad time. You likely have less money overall in that 392 00:18:21,760 --> 00:18:24,920 Speaker 1: retirement account because of sagging values and and On top 393 00:18:24,920 --> 00:18:26,800 Speaker 1: of that, folks who who go this route are gonna 394 00:18:26,800 --> 00:18:30,080 Speaker 1: pay taxes and a ten percent penalty on those withdrawals, 395 00:18:30,520 --> 00:18:32,399 Speaker 1: and they're gonna have less money, say for their future. 396 00:18:32,440 --> 00:18:35,960 Speaker 1: So you'd say, yes, stopping the account contributions for a 397 00:18:35,960 --> 00:18:38,119 Speaker 1: little period of time while you're getting back on your feet, 398 00:18:38,119 --> 00:18:40,520 Speaker 1: that's one thing. But taking money out of your retirement 399 00:18:40,520 --> 00:18:44,440 Speaker 1: account is another. You should really be avoiding taking money 400 00:18:44,480 --> 00:18:46,639 Speaker 1: out of your retirement accounts, specifically your four one K 401 00:18:47,119 --> 00:18:49,480 Speaker 1: like to play. It's I think it's even slightly different 402 00:18:49,480 --> 00:18:52,520 Speaker 1: if we're talking about taking out rath contributions. I don't 403 00:18:52,560 --> 00:18:55,719 Speaker 1: like that either, but it's it's better, at least from 404 00:18:55,720 --> 00:18:57,879 Speaker 1: a tax and penalty perspective. If you're gonna go, if 405 00:18:57,880 --> 00:18:59,840 Speaker 1: you're gonna go to the Wroth, well that's better than 406 00:18:59,880 --> 00:19:02,480 Speaker 1: the were on KA. Well for sure. Absolutely. Yeah. Actually, 407 00:19:02,520 --> 00:19:05,159 Speaker 1: another recent study from bank rate, they found that fifty 408 00:19:05,200 --> 00:19:09,080 Speaker 1: five percent Americans say that they are not prepared for retirement. 409 00:19:09,320 --> 00:19:12,400 Speaker 1: And again, not a surprise that folks aren't saving and 410 00:19:12,520 --> 00:19:15,720 Speaker 1: investing enough, or at least like they don't think that 411 00:19:15,760 --> 00:19:19,520 Speaker 1: they're saving enough, because actually, like maybe they are, but 412 00:19:19,600 --> 00:19:22,200 Speaker 1: they just haven't sat down to crunch the numbers. Because 413 00:19:22,240 --> 00:19:26,000 Speaker 1: of the way that compounding returns work, most folks are 414 00:19:26,040 --> 00:19:27,879 Speaker 1: going to feel like that they don't have enough, you know, 415 00:19:27,920 --> 00:19:30,760 Speaker 1: within their portfolio to retire on until just those last 416 00:19:30,800 --> 00:19:34,080 Speaker 1: few years right before retirement. Juli actually makes me think 417 00:19:34,119 --> 00:19:36,280 Speaker 1: of I think this is an illustration we've talked about 418 00:19:36,400 --> 00:19:38,960 Speaker 1: before here on the show, but the lily pad example, right, 419 00:19:39,000 --> 00:19:41,960 Speaker 1: And so imagine you've got this lily pad on this pond, 420 00:19:42,280 --> 00:19:44,560 Speaker 1: and it doubles in size every single day, and at 421 00:19:44,560 --> 00:19:47,000 Speaker 1: the end of the month, right after thirty days, it 422 00:19:47,119 --> 00:19:50,760 Speaker 1: has completely covered the entire pond, right, So you can 423 00:19:50,800 --> 00:19:52,959 Speaker 1: kind of picture this of the lily pad growing. And 424 00:19:53,000 --> 00:19:55,760 Speaker 1: so if you were to ask somebody, hey, when will 425 00:19:55,800 --> 00:19:59,359 Speaker 1: that lily pad cover half of the pond? Without that 426 00:19:59,400 --> 00:20:01,560 Speaker 1: person thinking too hard about it, they would a lot 427 00:20:01,600 --> 00:20:03,879 Speaker 1: of folks would just say, I don't like maybe day fifteen, 428 00:20:03,960 --> 00:20:07,440 Speaker 1: like the process with you the month, when in reality, no, 429 00:20:08,040 --> 00:20:10,800 Speaker 1: it's going to cover half of the pond the day 430 00:20:10,800 --> 00:20:13,359 Speaker 1: before the twenty ninth day, basically the day before the 431 00:20:13,440 --> 00:20:15,760 Speaker 1: end of the month. And granted we're what we're talking 432 00:20:15,800 --> 00:20:18,320 Speaker 1: about here in this example, that lily pad is growing 433 00:20:18,520 --> 00:20:21,320 Speaker 1: at a rate of right, it's doubling in size every 434 00:20:21,320 --> 00:20:23,400 Speaker 1: single day, and so we're not gonna we're not trying 435 00:20:23,400 --> 00:20:25,800 Speaker 1: to say that that's what your investments are going to do. 436 00:20:26,320 --> 00:20:28,159 Speaker 1: But the fact is we have a difficult time with 437 00:20:28,200 --> 00:20:31,040 Speaker 1: that kind of math, with compounding growth, with exponential growth, 438 00:20:31,400 --> 00:20:35,840 Speaker 1: and our investments are oftentimes closer to that reality, that example, 439 00:20:35,920 --> 00:20:38,679 Speaker 1: than what we imagine right where you're slowly adding to 440 00:20:38,800 --> 00:20:40,679 Speaker 1: your portfolio. And I think I think you're right. I 441 00:20:40,680 --> 00:20:43,520 Speaker 1: think there's a problem, like a lot of us, especially 442 00:20:43,560 --> 00:20:46,320 Speaker 1: how the money listeners might misperceive. They might think they're 443 00:20:46,359 --> 00:20:48,160 Speaker 1: not doing enough even though they are. And I think 444 00:20:48,160 --> 00:20:49,440 Speaker 1: that's what you're trying to get back here. I think 445 00:20:49,440 --> 00:20:52,320 Speaker 1: the reality is too though most Americans aren't saving. Yeah, 446 00:20:52,359 --> 00:20:53,679 Speaker 1: I do think there are a lot of folks who 447 00:20:53,720 --> 00:20:55,600 Speaker 1: aren't saving. And we see what the saving trade is 448 00:20:55,600 --> 00:20:58,320 Speaker 1: for the average American. It's abysmal. So most people really aren't. 449 00:20:58,600 --> 00:21:00,000 Speaker 1: But for how the money listeners, I think this is 450 00:21:00,119 --> 00:21:02,760 Speaker 1: good encouragement. You might think you're not and it always 451 00:21:02,800 --> 00:21:06,240 Speaker 1: feels like you can or should do more, But when 452 00:21:06,240 --> 00:21:08,560 Speaker 1: you crunch the numbers, when you take a look at 453 00:21:09,119 --> 00:21:12,320 Speaker 1: the reality of compounding returns and how Yeah, later in 454 00:21:12,320 --> 00:21:15,760 Speaker 1: your life what seems like a decent sized nest egg 455 00:21:15,760 --> 00:21:18,160 Speaker 1: can become a massive nest egg in just a few 456 00:21:18,160 --> 00:21:20,680 Speaker 1: short years. That's a that's a really important thing for 457 00:21:20,680 --> 00:21:23,120 Speaker 1: for our listeners. Yeah, And so there's a practical step here. 458 00:21:23,440 --> 00:21:25,119 Speaker 1: So if you're hearing this and you're like, well, I 459 00:21:25,160 --> 00:21:27,000 Speaker 1: don't know where things are for me, Like, I'm not 460 00:21:27,040 --> 00:21:29,360 Speaker 1: totally sure what that's gonna look like for me, will 461 00:21:29,400 --> 00:21:31,280 Speaker 1: actually sit down and do the math. Uh. And a 462 00:21:31,280 --> 00:21:33,480 Speaker 1: good rule of thumb is that you'll need roughly twenty 463 00:21:33,520 --> 00:21:36,000 Speaker 1: five times your annual expenses once you fully retire, right, 464 00:21:36,040 --> 00:21:38,119 Speaker 1: We've talked about that on the show many times, And 465 00:21:38,160 --> 00:21:40,840 Speaker 1: so figure that out first and then just start playing 466 00:21:40,840 --> 00:21:43,359 Speaker 1: around with a compound interest calculator, and then you'll be 467 00:21:43,359 --> 00:21:44,959 Speaker 1: able to see how much you need to set aside 468 00:21:45,000 --> 00:21:47,760 Speaker 1: each month in order to reach that that twenty five 469 00:21:47,800 --> 00:21:51,200 Speaker 1: times you anual expenses number based on how many years 470 00:21:51,240 --> 00:21:53,240 Speaker 1: you have left that you want to work. And so 471 00:21:53,280 --> 00:21:56,000 Speaker 1: we share that because there's just us honestly a very practical, 472 00:21:56,040 --> 00:21:58,680 Speaker 1: simple solution here to actually figure out what those numbers are. 473 00:21:58,680 --> 00:22:02,280 Speaker 1: And you might find that you are perhaps far ahead 474 00:22:02,880 --> 00:22:04,280 Speaker 1: of the curve then you think you are, like it 475 00:22:04,400 --> 00:22:07,679 Speaker 1: feels like that you're way behind. It's difficult to understand 476 00:22:07,880 --> 00:22:09,919 Speaker 1: the compounding returns that you're going to experience in your 477 00:22:10,000 --> 00:22:12,679 Speaker 1: later years once your portfolio continues to swell. But the 478 00:22:12,720 --> 00:22:14,919 Speaker 1: idea is that you can take that data and allow 479 00:22:15,040 --> 00:22:17,199 Speaker 1: that to calm your nerves a little bit into here 480 00:22:17,240 --> 00:22:19,199 Speaker 1: now for sure. And I think especially if you're like 481 00:22:19,200 --> 00:22:21,280 Speaker 1: a Type A personality and you're like I'm you never 482 00:22:21,320 --> 00:22:23,359 Speaker 1: feel like you're doing enough. And even I like I 483 00:22:23,560 --> 00:22:26,120 Speaker 1: am not Type A, but we all we all fall 484 00:22:26,119 --> 00:22:28,040 Speaker 1: into when I'm unhealthy, I fall into kind of some 485 00:22:28,119 --> 00:22:29,720 Speaker 1: Type A tendencies. Think a lot of this ted on 486 00:22:29,800 --> 00:22:32,320 Speaker 1: my angiogram number, but just the scarcity mindset, right like 487 00:22:32,320 --> 00:22:33,760 Speaker 1: where you're just like, oh, like, am I going to 488 00:22:33,840 --> 00:22:36,200 Speaker 1: have enough? I think that can easily be a default 489 00:22:36,240 --> 00:22:37,760 Speaker 1: position that we fall back into you And so I 490 00:22:37,760 --> 00:22:39,879 Speaker 1: think you're right. The doing the math, looking at the 491 00:22:39,960 --> 00:22:43,240 Speaker 1: numbers face on can help you realize, oh wait a second, Yeah, 492 00:22:43,520 --> 00:22:45,280 Speaker 1: the amount of money I have saved for where I'm 493 00:22:45,320 --> 00:22:47,480 Speaker 1: at in life is actually pretty good. Compounding is going 494 00:22:47,560 --> 00:22:49,280 Speaker 1: to do a lot of heavy lifting for me, and 495 00:22:49,320 --> 00:22:51,240 Speaker 1: I can freak out a little bit less and actually 496 00:22:51,760 --> 00:22:53,280 Speaker 1: I don't have to put the pedal to the metal 497 00:22:53,359 --> 00:22:57,200 Speaker 1: quite as hard. Exactly exactly. Let's talk about another accounts 498 00:22:57,359 --> 00:22:59,760 Speaker 1: math that people used to save and invest, and that's 499 00:22:59,760 --> 00:23:03,240 Speaker 1: why accounts. We talked on Wednesday on the show about 500 00:23:03,240 --> 00:23:05,479 Speaker 1: how to set your kids up her financial success and 501 00:23:05,520 --> 00:23:08,480 Speaker 1: so yeah, if you have kids, we we actually downplay 502 00:23:08,600 --> 00:23:11,360 Speaker 1: the effectiveness of saving for their college in a state 503 00:23:11,359 --> 00:23:15,480 Speaker 1: sponsored five plan on that episode. Sure, yeah, it makes 504 00:23:15,480 --> 00:23:18,119 Speaker 1: sense for some folks, mostly folks who are in money 505 00:23:18,119 --> 00:23:20,760 Speaker 1: gear number seven though, who are pretty much in that 506 00:23:20,880 --> 00:23:23,919 Speaker 1: financially independent zone, who have been saving well for their 507 00:23:23,960 --> 00:23:27,480 Speaker 1: own retirement for likely a long time. They have enough 508 00:23:27,520 --> 00:23:31,760 Speaker 1: financial flexibility to prioritize saving money for their kids college. 509 00:23:32,119 --> 00:23:34,720 Speaker 1: But a whole lot of other folks, it just doesn't 510 00:23:34,760 --> 00:23:37,679 Speaker 1: make much sense. And another reason actually for why we 511 00:23:37,720 --> 00:23:40,240 Speaker 1: feel this way actually popped up in a survey that 512 00:23:40,280 --> 00:23:42,840 Speaker 1: we saw this week which reinforces are are not sold 513 00:23:42,840 --> 00:23:46,920 Speaker 1: lockty views of five accounts. This new study by Intelligent 514 00:23:47,000 --> 00:23:49,879 Speaker 1: dot Com finds that a third of parents actually end 515 00:23:49,920 --> 00:23:53,359 Speaker 1: up using five money for purposes other than college for 516 00:23:53,480 --> 00:23:56,600 Speaker 1: non qualified distributions. A lot of parents, that's a lot 517 00:23:56,600 --> 00:24:00,959 Speaker 1: of yea, using this money for thing other than college, 518 00:24:01,000 --> 00:24:05,560 Speaker 1: which means that you're gonna pay uh tax and penalty, 519 00:24:05,560 --> 00:24:09,480 Speaker 1: a ten percent penalty on any of those non qualified distributions. 520 00:24:09,600 --> 00:24:12,840 Speaker 1: So yeah, five twenty nine account is a particularly bad idea. 521 00:24:12,920 --> 00:24:14,960 Speaker 1: We would say, if you don't end up using those 522 00:24:14,960 --> 00:24:18,679 Speaker 1: funds to pay for college expenses. It's not an awful 523 00:24:18,720 --> 00:24:21,440 Speaker 1: idea to save in a five nine fund if it's 524 00:24:21,440 --> 00:24:24,440 Speaker 1: actually going to go towards the stated goal and get 525 00:24:24,440 --> 00:24:26,960 Speaker 1: those extra tax benefits. But if you're taking that money 526 00:24:26,960 --> 00:24:29,679 Speaker 1: out and it's a non qualified distribution, it completely defeats 527 00:24:29,680 --> 00:24:31,960 Speaker 1: the purpose of what those accounts are set up for exactly. 528 00:24:32,160 --> 00:24:34,680 Speaker 1: It's like the least optimized way for you to set 529 00:24:34,720 --> 00:24:37,800 Speaker 1: money aside. Not only are you using it for other purposes, 530 00:24:37,800 --> 00:24:39,920 Speaker 1: but you're being penalized for that. This is just another 531 00:24:39,960 --> 00:24:43,640 Speaker 1: reason why these accounts aren't our favorite, why they kind 532 00:24:43,640 --> 00:24:45,119 Speaker 1: of end up at the back of the line when 533 00:24:45,160 --> 00:24:46,840 Speaker 1: it comes to the different accounts we like to see 534 00:24:46,840 --> 00:24:48,960 Speaker 1: you saving up for, you know, we'd rather you have 535 00:24:49,040 --> 00:24:52,159 Speaker 1: money in more flexible accounts that but these are just 536 00:24:52,320 --> 00:24:55,160 Speaker 1: hyper specific accounts that a lot of people don't use 537 00:24:55,240 --> 00:24:58,160 Speaker 1: effectively exactly, and they're prioritizing these accounts at the expense 538 00:24:58,200 --> 00:25:01,040 Speaker 1: of their own financial future right. Often, like we often 539 00:25:01,080 --> 00:25:03,480 Speaker 1: talk about the putting the oxygen mask on yourself before 540 00:25:03,520 --> 00:25:05,560 Speaker 1: you put it on your kids. But folks instead they're 541 00:25:05,560 --> 00:25:07,120 Speaker 1: just looking at their kids. And it kind of makes 542 00:25:07,119 --> 00:25:10,359 Speaker 1: me think of the Lanciaga babies. Folks are oftentimes so 543 00:25:10,440 --> 00:25:12,360 Speaker 1: focused on the things that they want to be able 544 00:25:12,400 --> 00:25:14,120 Speaker 1: to provide their kids, and in this case we're talking 545 00:25:14,119 --> 00:25:17,280 Speaker 1: about college. It seems very noble. But yes, you do 546 00:25:17,359 --> 00:25:18,720 Speaker 1: need to make sure that you're taking care of your 547 00:25:18,720 --> 00:25:21,520 Speaker 1: own retirement first. And so let's keep moving though, Joel. 548 00:25:21,720 --> 00:25:23,760 Speaker 1: You know we did talk earlier a little bit about Aldi. 549 00:25:24,320 --> 00:25:28,080 Speaker 1: Here's another reason to love Aldi. Starting this past Wednesday 550 00:25:28,320 --> 00:25:33,879 Speaker 1: and through November nine, Aldi they've instituted a Thanksgiving price 551 00:25:33,960 --> 00:25:38,320 Speaker 1: rewind Um, I love it, which means that traditional holiday 552 00:25:38,400 --> 00:25:42,840 Speaker 1: items like apple pie, green beans, and many marshmallows, uh, 553 00:25:42,840 --> 00:25:45,119 Speaker 1: cornbread stuffing us all as well, they're gonna be sold 554 00:25:45,200 --> 00:25:48,560 Speaker 1: at nineteen prizes, which is of stuff on that list 555 00:25:48,760 --> 00:25:51,600 Speaker 1: really stinking cool. Yeah, and you know, all the is 556 00:25:51,640 --> 00:25:54,480 Speaker 1: already attracting an insane amount of new customers things to 557 00:25:54,640 --> 00:25:58,199 Speaker 1: rapidly rising prices on groceries. Writer's reports that because of 558 00:25:58,240 --> 00:26:01,480 Speaker 1: how it is that Aldi handles thing and produce buying 559 00:26:01,480 --> 00:26:04,400 Speaker 1: that the you know, they charged between twenty and less 560 00:26:04,440 --> 00:26:07,919 Speaker 1: than their competitors for specifically for fresh fruits and veggies. 561 00:26:07,920 --> 00:26:10,679 Speaker 1: They just need less workers because of the packaging, how 562 00:26:10,720 --> 00:26:14,040 Speaker 1: they set their stores up exactly, it's incredibly efficient. Honestly, 563 00:26:14,080 --> 00:26:16,199 Speaker 1: this sounds about right from our experience, you know, like 564 00:26:16,240 --> 00:26:19,000 Speaker 1: we have always said that just making this one change, 565 00:26:19,240 --> 00:26:20,920 Speaker 1: that it's going to be the easiest, the most effective 566 00:26:20,920 --> 00:26:23,960 Speaker 1: way to decrease your your monthly food budget. But then 567 00:26:24,359 --> 00:26:27,679 Speaker 1: you see Aldi and they double down on their value proposition, 568 00:26:28,080 --> 00:26:30,160 Speaker 1: and I also to that love the fact that they're 569 00:26:30,160 --> 00:26:32,960 Speaker 1: harkening back to their twenty nineteen prices. It makes more times. Yeah, 570 00:26:33,080 --> 00:26:36,199 Speaker 1: like there's something almost nostalgic about it. Like so last night, Kate, 571 00:26:36,280 --> 00:26:38,600 Speaker 1: now we had our date night and we came home 572 00:26:38,640 --> 00:26:40,520 Speaker 1: to relieve you of your babysitting duties. We do the 573 00:26:40,560 --> 00:26:42,840 Speaker 1: date night swap and uh You're like, yeah, you know, 574 00:26:42,840 --> 00:26:45,480 Speaker 1: how was it? And we had a great time. And 575 00:26:45,480 --> 00:26:49,000 Speaker 1: do you remember specifically what I said that the cocktail 576 00:26:49,040 --> 00:26:53,199 Speaker 1: prices to this place where like Bucks for a cocktail 577 00:26:53,200 --> 00:26:55,040 Speaker 1: where is now a lot of restaurants around here. It's 578 00:26:55,080 --> 00:26:58,959 Speaker 1: like exactly, and so when you do something like that, 579 00:26:59,000 --> 00:27:02,920 Speaker 1: not obviously you are saving folks money when you're able 580 00:27:02,960 --> 00:27:06,000 Speaker 1: to keep your prices, though they are ingratiating themselves towards 581 00:27:06,040 --> 00:27:08,760 Speaker 1: their customers, towards their patrons. That that just show up, 582 00:27:08,800 --> 00:27:10,560 Speaker 1: and and that means I'm gonna go back, right, Like 583 00:27:10,600 --> 00:27:13,560 Speaker 1: you create these these warm, fuzzy feelings, and does it 584 00:27:13,680 --> 00:27:16,760 Speaker 1: impact me emotionally and how I view that experience we 585 00:27:16,840 --> 00:27:19,680 Speaker 1: just had. Yeah, but also like there is real value 586 00:27:19,720 --> 00:27:22,840 Speaker 1: that is being provided to us. Maybe the food wasn't 587 00:27:22,920 --> 00:27:24,960 Speaker 1: quite as good as I remember it being because I 588 00:27:25,000 --> 00:27:28,960 Speaker 1: was awash in this nine price glow. Maybe so, but 589 00:27:29,000 --> 00:27:31,160 Speaker 1: it doesn't matter. I'm gonna go back. Yeah, And so 590 00:27:31,400 --> 00:27:32,920 Speaker 1: it's just I don't know. Something to keep in mind. 591 00:27:32,960 --> 00:27:35,280 Speaker 1: I love that not only what Aldi is doing, but 592 00:27:35,320 --> 00:27:37,760 Speaker 1: just I don't know how they're saying it as well. Yeah, exactly. Yeah, 593 00:27:37,760 --> 00:27:40,920 Speaker 1: it's it's good branding for them, and it's it's good 594 00:27:40,920 --> 00:27:42,760 Speaker 1: price savings for for a lot of us and for 595 00:27:42,800 --> 00:27:46,040 Speaker 1: our listeners who have held out against shopping at Aldi. 596 00:27:46,240 --> 00:27:48,399 Speaker 1: Or legal. I don't know if is it legal or 597 00:27:48,400 --> 00:27:49,679 Speaker 1: a little? I think it's a little. I don't know, 598 00:27:49,720 --> 00:27:52,199 Speaker 1: but we always say legal, we do. But either one 599 00:27:52,200 --> 00:27:53,320 Speaker 1: of those, Like, if you go to either one of 600 00:27:53,359 --> 00:27:55,440 Speaker 1: those stores, they're gonna save you a bunch of money 601 00:27:55,480 --> 00:27:58,520 Speaker 1: compared to the grocery stores you're typically shopping up. Yeah, 602 00:27:58,560 --> 00:28:00,640 Speaker 1: And I'm one last thing. I feel like we've seen 603 00:28:00,640 --> 00:28:03,199 Speaker 1: this firsthand as well, because recently we have started shopping 604 00:28:03,200 --> 00:28:06,200 Speaker 1: more at Costco and we have been going over our 605 00:28:06,240 --> 00:28:09,680 Speaker 1: grocery budget ever so slightly every single month. And it's 606 00:28:10,040 --> 00:28:12,840 Speaker 1: totally because of Costco. I mean, back in the day, man, 607 00:28:12,920 --> 00:28:15,520 Speaker 1: like you're buying that fancy barbecue sauce, dude, I mean 608 00:28:15,640 --> 00:28:20,119 Speaker 1: that je, But like nine our grocery shopping earlier this 609 00:28:20,160 --> 00:28:22,920 Speaker 1: year was was at Aldi. And since we switched to Costco, 610 00:28:23,280 --> 00:28:25,119 Speaker 1: like we do maybe like eight percent of our grocery 611 00:28:25,119 --> 00:28:29,840 Speaker 1: shopping there only like at Legal and Aldi. But because 612 00:28:29,880 --> 00:28:32,359 Speaker 1: of that, I guarantee that that is why we're seeing 613 00:28:32,359 --> 00:28:35,160 Speaker 1: our our grocery bill go up. Right. I don't hate 614 00:28:35,160 --> 00:28:38,320 Speaker 1: too much the real thing. But let's let's talk about 615 00:28:38,360 --> 00:28:42,160 Speaker 1: rate hikes, Matt, and how those are impacting consumers, and specifically, 616 00:28:42,320 --> 00:28:45,800 Speaker 1: another rate hike was announced on Wednesday, although the FED 617 00:28:46,000 --> 00:28:48,680 Speaker 1: signaled that the speed of those rate increases could slow 618 00:28:48,720 --> 00:28:51,360 Speaker 1: in the near future and We've talked about on the 619 00:28:51,360 --> 00:28:54,280 Speaker 1: show how credit card rates are going up, So pay 620 00:28:54,280 --> 00:28:55,960 Speaker 1: off that credit card debt right if you have any 621 00:28:56,040 --> 00:28:58,720 Speaker 1: lingering around. But there's another way that these rate hikes 622 00:28:58,720 --> 00:29:01,280 Speaker 1: are having an impact on the lives of everyday folks, 623 00:29:01,400 --> 00:29:03,520 Speaker 1: and that is a car loan rates. New data from 624 00:29:03,600 --> 00:29:06,080 Speaker 1: Edmonds shows that car loan rates are at the highest 625 00:29:06,080 --> 00:29:08,840 Speaker 1: they've been in fourteen years, and so the average new 626 00:29:08,840 --> 00:29:10,760 Speaker 1: car loan rate is north of six percent now I 627 00:29:10,800 --> 00:29:13,719 Speaker 1: think it's six point three percent. And the average car payment, 628 00:29:13,960 --> 00:29:17,440 Speaker 1: according to the CFPB the Consumer Financial Protection Bureau, is 629 00:29:17,480 --> 00:29:20,720 Speaker 1: up somewhere between thirteen and nineteen from a year ago, 630 00:29:21,120 --> 00:29:22,960 Speaker 1: and so that means that the average annual cost of 631 00:29:22,960 --> 00:29:26,720 Speaker 1: car ownership is is just shy up eleven thousand dollars, 632 00:29:26,920 --> 00:29:29,440 Speaker 1: which is just so much money. We were just talking 633 00:29:29,480 --> 00:29:32,360 Speaker 1: Matt about the need for Americans to save and invest more. 634 00:29:32,720 --> 00:29:35,720 Speaker 1: Will imagine if just a fraction of those car payments 635 00:29:35,960 --> 00:29:38,360 Speaker 1: or being invested as rates go up on these loans, 636 00:29:38,600 --> 00:29:42,480 Speaker 1: it makes the cars more unaffordable, more expensive, and it's 637 00:29:42,520 --> 00:29:44,960 Speaker 1: going to crimp our budgets even more. Absolutely, yeah that 638 00:29:44,960 --> 00:29:47,360 Speaker 1: the CFPB. They also report that the average price of 639 00:29:47,360 --> 00:29:49,560 Speaker 1: a new car has ballooned to more than forty eight 640 00:29:49,560 --> 00:29:52,440 Speaker 1: thousand dollars. That's complete insanity. Not only are we seeing 641 00:29:52,800 --> 00:29:55,080 Speaker 1: financing the cost of financing going up, but the actual 642 00:29:55,160 --> 00:29:58,880 Speaker 1: cost of vehicles are climbing as well. Those payments are 643 00:29:58,880 --> 00:30:01,880 Speaker 1: going up even more, and you're getting hit getting on 644 00:30:01,960 --> 00:30:04,840 Speaker 1: both ends. Uh So, I mean yeah, With with prices 645 00:30:04,920 --> 00:30:08,080 Speaker 1: being just way higher in both the used and new 646 00:30:08,120 --> 00:30:11,520 Speaker 1: car markets thanks to chip shortages, thanks to supply chain issues, 647 00:30:11,760 --> 00:30:14,920 Speaker 1: it's even more important to keep your transportation spending in check, 648 00:30:15,720 --> 00:30:18,120 Speaker 1: despite what other folks out there are doing to their 649 00:30:18,120 --> 00:30:20,720 Speaker 1: monthly budgets by opting for a new car right now, 650 00:30:20,840 --> 00:30:22,880 Speaker 1: or even just a new car to them right now. 651 00:30:23,240 --> 00:30:25,920 Speaker 1: We're not fans of taking on debt for depreciating assets 652 00:30:25,960 --> 00:30:29,240 Speaker 1: like cars, but even less so when it becomes more 653 00:30:29,240 --> 00:30:31,080 Speaker 1: expensive to do so, when the race have risen as 654 00:30:31,160 --> 00:30:33,200 Speaker 1: much as they have. Uh And, actually, we're gonna do 655 00:30:33,240 --> 00:30:37,120 Speaker 1: a deep dive with Mike Quincy from Consumer Reports on 656 00:30:37,200 --> 00:30:40,320 Speaker 1: Monday all about cars, so you can look forward to 657 00:30:40,360 --> 00:30:43,400 Speaker 1: that interview. We're gonna talk about future of electric vehicles. 658 00:30:43,400 --> 00:30:45,200 Speaker 1: We're gonna talk about how to get a great car 659 00:30:45,440 --> 00:30:48,600 Speaker 1: for a lot less money than forty eight thousand dollars. 660 00:30:48,840 --> 00:30:50,320 Speaker 1: You do not need to be spending that much. And 661 00:30:50,320 --> 00:30:52,400 Speaker 1: so that's an episode you can look forward to here 662 00:30:52,520 --> 00:30:56,160 Speaker 1: on Monday. And we love Consumer Reports. My Quincy has 663 00:30:56,200 --> 00:30:59,160 Speaker 1: been with Consumer Reports for a long time. Consumer Reports 664 00:30:59,200 --> 00:31:02,200 Speaker 1: does a great job of it helping everyday Americans keep 665 00:31:02,240 --> 00:31:04,880 Speaker 1: money in their pockets and help make good decisions about 666 00:31:04,880 --> 00:31:07,200 Speaker 1: the products are buying. So we will Yeah, we'll look 667 00:31:07,200 --> 00:31:09,200 Speaker 1: forward to that chat with Mike. Hope you enjoy it 668 00:31:09,240 --> 00:31:10,800 Speaker 1: on Monday, and we hope you have a great weekend. 669 00:31:11,200 --> 00:31:12,960 Speaker 1: That's gonna do it for this episode. Don't forget to 670 00:31:12,960 --> 00:31:15,520 Speaker 1: sign up for the How the Money newsletter. You can 671 00:31:15,640 --> 00:31:18,400 Speaker 1: find that at how to money dot com slash newsletter. 672 00:31:18,560 --> 00:31:20,160 Speaker 1: That's right, but buddy, that's going to be it until 673 00:31:20,200 --> 00:31:22,640 Speaker 1: next time. Best Friends Out, Best Friends Out.