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

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Speaker 1: Today we are answering your listener questions. That's right. This

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Speaker 1: is an Ask Count of Money episode, Joel, where we

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Speaker 1: have five delightful questions to get to. During this episode,

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Speaker 1: we've got a listener who was asking about investing in

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Speaker 1: real estate starting with only five dollars, looking forward to that.

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Speaker 1: You need to get a foot long sandwich for that

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Speaker 1: amount anymore anything but you can buy real estate evidently. Listener.

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Speaker 1: He's asking about tapping into a four one K in

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Speaker 1: order to pay off some debt, whether or not that's

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Speaker 1: a good idea. And another listener he kind of has

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Speaker 1: essentially like a frugal or cheap about currency exchange. He

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Speaker 1: was abroad. He's going to share a story. I'm looking

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Speaker 1: forward to that one plus a couple others. Yeah, and

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Speaker 1: by the way, if you are planning on taking any

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Speaker 1: sort of international trip, you're gonna want to hear the

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Speaker 1: answer to that question, because nice tease a lot of

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Speaker 1: advice in there. Man, We tease more often stuff like

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Speaker 1: that stick around. Probably, Well, if you want to tune out,

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Speaker 1: feel free just to go ahead and attend to your

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Speaker 1: child who is maybe playing on the playground, or maybe

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Speaker 1: you're in the elevator at work and a co workers

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Speaker 1: trying to have a conversation with you. You have permission

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Speaker 1: to turn off the podcast. Real quick, dude. Okay, So

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Speaker 1: there has been a bike community. There's a guy in

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Speaker 1: the neighborhood where we're living at our new house, and

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Speaker 1: I have seen this guy bike past our house multiple times,

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Speaker 1: but I am always inside the house and he goes

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Speaker 1: zipping by. It's clear that he's a bike commuter, just

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Speaker 1: I don't know. I see him regularly, like before or not,

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Speaker 1: not before work, I see him in the afternoon sometimes.

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Speaker 1: And recently a few weeks ago, we talked about just

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Speaker 1: how biking, how it's the superpower. Basically, it's this life hack,

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Speaker 1: it's this money hack. And one of the ways that

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Speaker 1: makes your life better is I mean, it reinforces community

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Speaker 1: that you already have. But I also see the reverse

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Speaker 1: of that, which is that the ability to commune with

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Speaker 1: other bike commuters, folks who are really into biking. But

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Speaker 1: I have not been able to, Like, I don't know

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Speaker 1: who this guy is, right, And so he goes past

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Speaker 1: our house, and you know, if I were to like

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Speaker 1: run out there, Hey, that'd be kind of weird talked, so,

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Speaker 1: I mean, it would be weird, but I just want

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Speaker 1: to I haven't been able to figure out who this

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Speaker 1: guy is. So my question for you, do you have

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Speaker 1: any suggestions as to how I can figure out who

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Speaker 1: this guy is. I was thinking about maybe setting up

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Speaker 1: a little stand on the side of the road, saying like,

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Speaker 1: I love bikes. Would you like to talk about bikes

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Speaker 1: just so that he knows they're gonna proselytize the people

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Speaker 1: in Yeah, I can't figure out how to how to

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Speaker 1: bridge of this gap. Do you have anything you thought? Okay,

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Speaker 1: do you guys have like a Facebook group or anything

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Speaker 1: like that you could post him there Facebook. Yeah, that's

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Speaker 1: like the obvious choice, like, hey, who's the who's the

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Speaker 1: other first person in the neighborhood biking on the rag

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Speaker 1: like come over to my house man? That's like, that's

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Speaker 1: too easy of an answer. I guess it's social media

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Speaker 1: the answer to more things than I really could go

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Speaker 1: not bind every door and and finally, you know, there's

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Speaker 1: there's not that many doors. How long would it think? Yeah?

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Speaker 1: I guess I just want them to be like non

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Speaker 1: social media and on digital, non internet answers to certain problems.

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Speaker 1: Like it's a yard sign in your front yard that says,

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Speaker 1: are you the person who bikes passed my house every day?

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Speaker 1: And I wish call this number? Is there is there

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Speaker 1: like a local like bite support group like that in town?

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Speaker 1: We had Atlanta Bite Coalition. Yeah, I wonder if there's

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Speaker 1: something like that around here that we could join and

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Speaker 1: be a part of. That's a good question here. I'm

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Speaker 1: not sure, but get one of those science stuck out

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Speaker 1: in the yard, all right, whatever it takes, good luck

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Speaker 1: meeting this person. I feel like, yeah, when we have

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Speaker 1: something in common, like hey, we both bike a lot,

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Speaker 1: there's just like if you if you're a personal finance nerd,

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Speaker 1: those those deeper attributes kind of about yourself. I'm sure.

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Speaker 1: So I can really created a nice springboard for for

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Speaker 1: a conversation or for a friendship. Yeah, and in particular,

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Speaker 1: I mean out here in the burbs, I mean there

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Speaker 1: are I think there are fewer folks biking out here

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Speaker 1: than than when we were living into We gotta stick

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Speaker 1: together more than that. Yeah, I kind of wanna be like, hey,

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Speaker 1: like let's meet and then maybe we'll start a ride

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Speaker 1: where we're like right into the square and like you

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Speaker 1: can meet us like halfway and you can join with

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Speaker 1: like some of the guys from your neighborhood and we

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Speaker 1: head to the brewery. That that kind of thing. That

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Speaker 1: that's what I envisioned. Ultimately, we can start revolution up here.

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Speaker 1: Let's do it. It's happening, all right, Well, good luck

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Speaker 1: meeting this guy. Let me know how it goes. And

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Speaker 1: I'm curious to know which format it takes. Whether it's

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Speaker 1: whether you're gonna go digital or are you gonna do

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Speaker 1: this book seems like the obvious choice. Yeah, I just

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Speaker 1: spend so little time on social media, in particular on Facebook.

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Speaker 1: Yeah I get that. Yeah, yeah, try to limit my intake.

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Speaker 1: I understand. All well, let's move on. Let's get to

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Speaker 1: the let's mention the beer we're having on this episode, Matt.

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Speaker 1: This one is by mckeller and it's called trade Blood.

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Speaker 1: It's an Imperial stout. We will give our thoughts on

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Speaker 1: this one at the end of the episode. Mckeller doesn't

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Speaker 1: make bad beer, so I have a feeling we're gonna

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Speaker 1: like it. But let's let's get to the topic in hand.

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Speaker 1: We are answering listener questions and if you have a

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Speaker 1: question you want to submit for Matt and I to

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Speaker 1: take on a future episode. We would love to hear it.

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Speaker 1: Just go to how to money dot com slash ask.

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Speaker 1: There are simple instructions for you to record your voice

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Speaker 1: in the voice memo app on your phone, send it

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Speaker 1: our way, and hopefully we can take it in a

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Speaker 1: couple of weeks. But Matt, let's get to the first question.

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Speaker 1: This one is about investing in real estate with almost

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Speaker 1: no money. My name is James, and I'm reaching out

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Speaker 1: from St. Louis Us. I recently came across a tech

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Speaker 1: Crunch article called Landa can make you a landlord for

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Speaker 1: just five dollars. It's about a real estate targeted investment

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Speaker 1: app called Landa that apparently takes your money, pulls it

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Speaker 1: with others, buys houses, and then gives you abortion of

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Speaker 1: the rent. While investing apps don't have much appeal to me,

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Speaker 1: this one does because landlording has long appealed to me

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Speaker 1: as a strategy for generating extra income. That goal feels

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Speaker 1: farther away with interest rates shooting up, making leveraging even harder,

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Speaker 1: and the ability to jump right in with Landa sounds appealing,

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Speaker 1: But I don't really know how to evaluate them or

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Speaker 1: what they are. Is this the same idea as a

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Speaker 1: real estate syndicate? And why do they invest in high

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Speaker 1: cost markets? Like I think I saw New York. You'd

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Speaker 1: think the best rental markets are places with low property

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Speaker 1: values but high rents. Those are tipically midwestern college town

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Speaker 1: with a significant year round population. I'm interested in if

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Speaker 1: there are other apps and how to evaluate their potential. Alright, Joel,

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Speaker 1: let's talk about landa, which also kind of makes me

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Speaker 1: think of Lambda like the uh like, uh, you were

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Speaker 1: a member of landa KAI, the real estate buying fraternity

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Speaker 1: while you're in college. Weren't, you know, no fraternities every here?

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Speaker 1: All right? Well, James, you know, like you're talking about landlording,

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Speaker 1: like for five bucks, that sounds pretty great. It would

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Speaker 1: definitely be nice to to, you know, get in the

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Speaker 1: real estate game without having to save up this massive

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Speaker 1: down payment, uh like you said, especially given where interest

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Speaker 1: rates are currently. But you know, let's talk about whether

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Speaker 1: or not this makes financial sense. And you know, first

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Speaker 1: you mentioned to say it's it's true, like I think

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Speaker 1: that is one of the biggest hurdles to real estate investing. Yeah,

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Speaker 1: it's a lot of money, is the upfront amount that

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Speaker 1: people have to save up for the down payment, and

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Speaker 1: so that puts it off people like, oh that, well,

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Speaker 1: I'm never going to get to that point, and so

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Speaker 1: a lot of will say I'm just never gonna become

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Speaker 1: a real estate investor. And so that is what makes

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Speaker 1: some of these websites that say you can become a landlord,

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Speaker 1: that say you can invest in real estate for as

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Speaker 1: little as five or ten bucks, it's very appealing to

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Speaker 1: to a lot of people because of that. Sure totally

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Speaker 1: and they're like, oh, man, if I had it, I

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Speaker 1: totally get into real estate right exactly. Yeah, I feel

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Speaker 1: like I need to clear the air as well. Like Landa,

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Speaker 1: Kai isn't a real fraternity, so it's just joking around.

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Speaker 1: But so James, either of us were part of fraternities.

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Speaker 1: Neither one of us were. No. Yeah, but he mentions that, like,

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Speaker 1: you know, some of these other players, some of these

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Speaker 1: other apps um within the real estate space. And so

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Speaker 1: let's talk about fund Rise because they are one that's

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Speaker 1: been around for a while now. Although you know, I

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Speaker 1: think Landa I think they might be the only one

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Speaker 1: that has a minimum as low as five dollars. But

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Speaker 1: fund Rise that's the main app that most folks have

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Speaker 1: probably heard of, and their starter portfolios allow you to

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Speaker 1: get get started with just ten dollars, so still very affordable. Yeah,

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Speaker 1: but they just recently changed that, right, wasn't it was

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Speaker 1: it a thousand bucks and it used to be a

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Speaker 1: funder bux or something that used to be a thousand

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Speaker 1: used to be more so it's quick gone down. Fundise

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Speaker 1: is trying to compete with the lands well, and that's

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Speaker 1: and that's I think the advantage of having some additional

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Speaker 1: players within the space is competition. Um. But basically that

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Speaker 1: the model is that it is a real estate investment trust. Uh.

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Speaker 1: And to be honest, I mean Fundraise it seems like

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Speaker 1: a solid company, uh, that they're doing good business. But

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Speaker 1: even still, we we typically don't recommend for folks to

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Speaker 1: invest in real estate via fund rise um or or

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Speaker 1: even other apps, and that's because of the liquidity issues

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Speaker 1: as well as the fees that they charge. Publicly traded

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Speaker 1: reats which are real estate investment trusts. We think that

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Speaker 1: those are just a superior option. Uh. So for instance, Vanguard, Uh,

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Speaker 1: they've got an e t F is called v n

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Speaker 1: Q and they own hotels, office buildings other real estate holdings. Uh.

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Speaker 1: But because it's an et F that means you can

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Speaker 1: easily buy and sell. Uh. And plus the expense ratio

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Speaker 1: is tiny, like virtually non existent compared to some of

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Speaker 1: these other companies that only just point one two. So

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Speaker 1: you compare that to fund Rise, where you're paying at

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Speaker 1: least one percent in fees, which is, you know, nearly

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Speaker 1: ten x more than V and Q and so all

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Speaker 1: of us being equal, Yes, we often do look to

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Speaker 1: the fees. We look to what it's going to cost

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Speaker 1: you because uh, future results and returns you can't guarantee

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Speaker 1: of those. And so how is it that you can

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Speaker 1: essentially minimize risk and you can easily do that typically

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Speaker 1: by keeping your fees your expenses at a minimum. I'm

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Speaker 1: glad you mentioned Fundrise because yeah, that is kind of

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Speaker 1: the most well known of the places you can invest online.

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Speaker 1: And I think, like you said, like, I think Fundise

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Speaker 1: does a decent job. It's just that, Yeah, there are

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Speaker 1: better ways for we would say, for people to invest

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Speaker 1: in real estate if you're not ready to become a

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Speaker 1: landlord by your own property, right, but like investing in

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Speaker 1: a real estate investment trust, like you said, Matt, or

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Speaker 1: another app like fundrise. You know, it takes virtually no

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Speaker 1: money to get started. That's the same with Landa, which

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Speaker 1: is the the company the app that James is asking about.

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Speaker 1: And we would say that's a plus, right, it is

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Speaker 1: nice to be able to get started investing with basically

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Speaker 1: no money. Um. But while that is a selling point,

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Speaker 1: what you know, what about the fees that they charge?

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Speaker 1: What about the fees that Landa takes? And they're not

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Speaker 1: so great to be honest, because the fees they're charging

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Speaker 1: are actually pretty significant, and that is something that we

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Speaker 1: would say is a red flag. You know. The one

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Speaker 1: that sticks out to me is the six percent acquisition

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Speaker 1: fe Matt that I saw on their website. Another downside

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Speaker 1: is that you're gonna be way less diversified. Right then

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Speaker 1: you'll be buying a publicly traded rate because you're investing

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Speaker 1: in a single property or maybe a few properties right

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Speaker 1: that they that they have on offer. On top of that,

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Speaker 1: you've got to trust that the land of folks know

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Speaker 1: how to buy properties that cash flow well, like do they?

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Speaker 1: I don't know, Like I can't. I can't speak to that.

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Speaker 1: Their track record is not very long and they don't

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Speaker 1: own that many properties. There's just not enough data to

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Speaker 1: let us know whether or not the folks Atlanta are

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Speaker 1: good real estate investors are not, And you're really just

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Speaker 1: kind of hoping against hope that they're buying good properties,

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Speaker 1: that the numbers work, and that you're able to profit

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Speaker 1: because of it. Exactly. Yeah, and James, you asked to

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Speaker 1: you know, if this is like doing a syndication deal,

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Speaker 1: It kind of is, because Lenda, you know, they're doing

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Speaker 1: all the buying, they're doing all the managing the maintenance

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Speaker 1: on these properties. But the difference between this and a

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Speaker 1: syndication deal is that this just requires fewer dollars to

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Speaker 1: get started, you know, like you've typically got to be

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Speaker 1: an accredited investor with tens of thousands of dollars to

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Speaker 1: invest in those just to be allowed in the club. Basically,

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Speaker 1: credited investor typically means that you have a net worth

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Speaker 1: of over a million dollars or you have an annual

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Speaker 1: income of something like a quarter million dollars, So you

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Speaker 1: have to be kind of rich to the rich to

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Speaker 1: get into the syndicated investment deals exactly. But unlike syndication deals,

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Speaker 1: there's you know, there's far less information out there for

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Speaker 1: you to be able to just vet the property that

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Speaker 1: you'd be investing in. With landa UM, you know, it

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Speaker 1: takes risk to generate returns basically, and while landa like

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Speaker 1: they're trying to minimize a risk based on your ability

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Speaker 1: to invest in small chunks, we still say that it's

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Speaker 1: better even though we're not talking about large dollars, you know,

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Speaker 1: large amounts of money here, we still we think it's

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Speaker 1: a better idea to invest within a reats like V

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Speaker 1: and Q or to actually save up to buy a

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Speaker 1: physical property instead. It sounds like you are well versed

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Speaker 1: when it comes to real estate. It sounds like you

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Speaker 1: are aware of what different properties could demand when it

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Speaker 1: comes to rents, and so maybe for you it's it

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Speaker 1: is saving up that down payment, like Joel said, like

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Speaker 1: that is the biggest hurdle that keeps folks from getting

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Speaker 1: into the real estate investing game. But it does sound

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Speaker 1: like you have an interest in it. You're you're talking

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Speaker 1: about those those Midwestern regions that should be able to

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Speaker 1: demand higher rents. I mean that's another also cheaper to

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Speaker 1: get into that. Yeah. Absolutely, James mentioned housing prices and

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Speaker 1: investing in some of these more expensive cities. Often the

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Speaker 1: numbers don't work out as well, and you've got to

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Speaker 1: save up a whole lot more to get some skin

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Speaker 1: in the game. But in some of these Midwestern cities,

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Speaker 1: like there's there's some couples that I know out there

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Speaker 1: investing in real estate and they are buying hundred fifty

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Speaker 1: dollar duplexes and stuff like that. So it's just it's

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Speaker 1: it's more accessible for a lot of want to be

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Speaker 1: landlords exactly. And in my mix even sense, even where

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Speaker 1: he is up there in St. Louis, I wonder if

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Speaker 1: that's just a part of land uh. I mean, like

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Speaker 1: essentially what an app like this is doing. They are

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Speaker 1: catering to folks who want things to be easy, and Jay,

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Speaker 1: it sounds like you are a little more sophisticated, and

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Speaker 1: because of that you are asking some of these questions

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Speaker 1: of like, well, shouldn't we be investing over here rather

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Speaker 1: than over here? You're not gonna have much say when

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Speaker 1: and you say when it comes to where it is

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Speaker 1: Atlanta is investing. But I wonder, without having, you know,

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Speaker 1: without diving into all of Landa's holdings, if they're naming

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Speaker 1: some of these big cities because you've heard of New

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Speaker 1: York City you've heard of some of these large areas, Oh,

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Speaker 1: I know that place a little all me in in St.

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Speaker 1: Louis can invest in, you know, harmony complexes, or in

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Speaker 1: a single family house somewhere in New York as opposed

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Speaker 1: to what might turn folks off, which is hearing the

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Speaker 1: name of like some small or even no name town

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Speaker 1: out in the Midwest and they're thinking, wait, my money's

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Speaker 1: gonna go where? And I think that's where. Like the

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Speaker 1: reality of what it looks like to invest in real

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Speaker 1: estate may not necessarily align with what people are thinking.

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Speaker 1: It involves like people are thinking like Shark Tank and

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Speaker 1: you know, like like big and flashy New York City.

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Speaker 1: All of this as opposed to the humble approach of

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Speaker 1: what it actually means to to typically be a real

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Speaker 1: estate investor. And I get the people want skin in

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Speaker 1: the game. They want to be able to have some

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Speaker 1: real estate exposure. But the truth is that the there

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Speaker 1: are two ways that we recommend it, Matt typically, and

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Speaker 1: that is that people buy physical property, which is easier

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Speaker 1: said than done. Right, It's it's more difficult to save

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Speaker 1: with money and to actually get to that point where

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Speaker 1: you can buy a physical duplex or triplex or something

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Speaker 1: like that where you live. And the other option, the

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Speaker 1: easy one, is to invest in publicly traded reads, and

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Speaker 1: there are a lot of them out there. We just

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Speaker 1: mentioned one from Vanguard, but you can you can do

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Speaker 1: more research and find other ones that maybe make sense.

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Speaker 1: They're investing in specific sectors of real estate that maybe

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Speaker 1: you're interested in. Just pay attention, like like Matt mentioned,

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Speaker 1: to those to the investment fees that they're charging. But

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Speaker 1: you might find that that kind of scratches the itch

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Speaker 1: of allowing you to invest in real estate, but in

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Speaker 1: a way that isn't gonna fee you to death, and

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Speaker 1: that's gonna be a little more liquid that you can

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Speaker 1: get your cash back at some point that isn't necessarily

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Speaker 1: five or ten years in the future. Absolutely. All right,

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Speaker 1: let's Matt. Let's take more questions from How the Money listeners,

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Speaker 1: including one about using a retirement account to pay off debt.

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Speaker 1: Is that a good idea? Well, we'll talk about that

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Speaker 1: more right after this. All right, we are back from

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Speaker 1: the break, and before we get to that four one

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Speaker 1: K question, we've got a question about another sort of

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Speaker 1: foundational piece of the financial puzzle that many folks incorporate

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Speaker 1: in their lives. We've got a question here about a budget. Hey,

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Speaker 1: Matt and Joel love listening to your podcast. I'm Ashley

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Speaker 1: and I am calling from Columbia, Missouri. I'm wondering if

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Speaker 1: you all could visit the topic of budgeting, specifically, how

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Speaker 1: do people categorize items in their budgets. For example, I'm

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Speaker 1: curious if someone has a housing maintenance fund and their budget,

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Speaker 1: what do people consider as housing maintenance. I started a

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Speaker 1: fund like that in my budget after I heard you

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Speaker 1: all suggest doing that a few years ago. At the time,

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Speaker 1: the suggestion was to play in one percent of your

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Speaker 1: housing price for house maintenance. We have used that fund

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Speaker 1: for good things such as our new air conditioning, and

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Speaker 1: we also throw things like our refrigerator, filter, air furnace filter,

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Speaker 1: gardening supplies, mulch, etcetera into that budget item. I also

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Speaker 1: try to get away with sneaking in my gardening stuff

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Speaker 1: into the budget category, but I'm shocked at how much

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Speaker 1: those gardens supplies actually add up to. I'm really looking

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Speaker 1: forward to what you all have to say about it.

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Speaker 1: Thank you so much. All right, Matt Missouri representing here

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Speaker 1: on today's Ask Kind of Money episode. So all of

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Speaker 1: our questions today from Missouri. If only that'd be great,

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Speaker 1: I'd be pretty cool. Yeah, well, uh, Mat, let's let's

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Speaker 1: tackle actually Ashley's questions. Like with inflation, obviously at fourty

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Speaker 1: year highs, we shouldn't be surprised probably that virtually all

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Speaker 1: of our expenses are adding up more quickly than the

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Speaker 1: use two not just your gardening supplies. Yes, everybody's budget

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Speaker 1: feels a little pinched or a lot pinched, like craft

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Speaker 1: beer budget. Yes, totally going out the window, right You

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Speaker 1: Basically you've got to be a boomer or a gen

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Speaker 1: expert to remember prices rising as fast as we're currently

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Speaker 1: seeing them, and even some of them were little tykes

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Speaker 1: when it was happening. But like, you're alive while that happened, right,

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Speaker 1: Maybe you don't. Actually you're you weren't paying the bills,

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Speaker 1: that's right, the exact boomers, yes, yeah, gen xpers Now,

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Speaker 1: some of those gen X, especially the younger ones, like

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Speaker 1: they're like, I was a toddler, dude, what are you

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Speaker 1: talking about? But yeah, you're asking about how to categorize expenses,

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Speaker 1: which I think is a really helpful question and it's

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Speaker 1: not an abnormal one in the question or in the

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Speaker 1: realm of budgeting. But so much of this comes down

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Speaker 1: to what Matt and I would say is like, it's

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Speaker 1: different strokes, are different folks, and so we'll offer you

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Speaker 1: like our best advice. But yeah, some folks just prefer

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Speaker 1: like an incredibly granular budget broken into dozens of categories,

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Speaker 1: whors other people prefer to keep it more simple. So

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Speaker 1: much comes down to personal preference. Matt, you and I

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Speaker 1: we even did an episode I don't know, a couple

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Speaker 1: of years ago about budgeting for different kinds of personalities,

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Speaker 1: because yeah, if you talk to somebody like me about

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Speaker 1: some sort of massively granular budget, I'm going to walk

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Speaker 1: away annoyed because that's not my jam. But other people,

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Speaker 1: people like you, you like kind of getting more granular

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Speaker 1: with it. I love it exactly. Yeah, yeah, some folks

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Speaker 1: are going to be more comfortable with a budget like here,

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Speaker 1: it's like something that feels a little more unlabeled. Nothing. Well,

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Speaker 1: I mean, I don't know, I'm not like digging to

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Speaker 1: your personal finances, but I'm guessing you have fewer things

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Speaker 1: of ear marked than I do. I do. You probably

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Speaker 1: have like just a large amount of money just slashing

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Speaker 1: around and you're checking and savings account Like that's actually

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Speaker 1: how an economist might tell you to budget, right, because

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Speaker 1: an economist knows that, like all money is fungible, So

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Speaker 1: what differences to make what you actually label it? We

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Speaker 1: don't need labels, man, No, this is uh. It just

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Speaker 1: goes into the giant pile of money that you have,

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Speaker 1: and you pay or spend out of that accordingly on

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Speaker 1: paper that that might be how they say they view money,

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Speaker 1: but in reality that might not be how they actually

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Speaker 1: do it. So much better on paper than they are

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Speaker 1: in person. Yeah, because you know, like in practice, it

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Speaker 1: can be really helpful to organize your cash and to

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Speaker 1: you know, either create like savings buckets like they've got

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Speaker 1: over an ally or sinking funds whatever it is that

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Speaker 1: you want to call it, where you're stashing away small

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Speaker 1: amounts of money towards a particular expense. You might even

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Speaker 1: like the documentation side of things if it maybe may

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Speaker 1: like maybe it released some stress in your life to

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Speaker 1: know that you've got a certain amount of money your

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Speaker 1: marked for an expense coming up. But just remember it

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Speaker 1: is possible to overdo it because if you're attempting to

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Speaker 1: get too specific, uh, and where you're perfectly categorizing everything

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Speaker 1: your budget, it might be running your life versus the

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Speaker 1: other way around. You know, you might find yourself spending

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Speaker 1: too much time categorizing where you're you know, attempting to

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Speaker 1: make that perfect budget, and in that case, you might

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Speaker 1: be creating too much of a tedious obligation as opposed

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Speaker 1: to actually getting out there and living life. I don't

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Speaker 1: know if this is a good analogy map, but it

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Speaker 1: makes me I feel like I've heard about people being

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Speaker 1: obsessed with organization. They got to organized their closet to

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Speaker 1: the max, or think their whole home has to be

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Speaker 1: just so freaking organized like they do right. They're the

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Speaker 1: kind of people who don't have a junct chore. You know,

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Speaker 1: everything everything is in its right place. Yeah, And so

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00:19:40,160 --> 00:19:44,080
Speaker 1: then they go to someplace like the container store and

428
00:19:44,200 --> 00:19:47,880
Speaker 1: maybe they spend more money than they should because they're

429
00:19:47,960 --> 00:19:51,800
Speaker 1: so they're so particular about how things are organized that

430
00:19:51,840 --> 00:19:55,040
Speaker 1: maybe they spend more money on the stuff that's holding

431
00:19:55,080 --> 00:19:57,480
Speaker 1: up their clothes and maybe they've actually spent on their wardrobe.

432
00:19:57,640 --> 00:20:00,280
Speaker 1: That's possible. It's possible to get to that point, and

433
00:20:00,320 --> 00:20:02,240
Speaker 1: I think similar to what you're talking about, it's it's

434
00:20:02,240 --> 00:20:05,199
Speaker 1: possible to spend more time, more effort on making a

435
00:20:05,200 --> 00:20:07,119
Speaker 1: beautiful budget that you can tie in a bow, and

436
00:20:07,160 --> 00:20:09,320
Speaker 1: maybe it helps some practicality, but you could have been

437
00:20:09,320 --> 00:20:11,959
Speaker 1: doing better things with your time. Yeah, I mean chances

438
00:20:11,960 --> 00:20:15,119
Speaker 1: are I think for most people, like the principle totally applies,

439
00:20:15,160 --> 00:20:17,400
Speaker 1: you know, like essentially within a small amount of time,

440
00:20:17,400 --> 00:20:19,240
Speaker 1: where like you're getting most of the way there and

441
00:20:19,280 --> 00:20:21,960
Speaker 1: you'd be spending in an order amount of time in

442
00:20:22,080 --> 00:20:24,840
Speaker 1: order to say, finally crafted and have it exactly perfect. Yes,

443
00:20:25,320 --> 00:20:28,520
Speaker 1: even though that's what I do. Well, let's get back

444
00:20:28,560 --> 00:20:31,720
Speaker 1: to Ashley's question, because you know, what goes into the

445
00:20:31,760 --> 00:20:34,800
Speaker 1: housing maintenance category and again this is kind of a

446
00:20:34,800 --> 00:20:36,960
Speaker 1: personal question, but at the bare minimum we should say

447
00:20:36,960 --> 00:20:39,679
Speaker 1: we would say it should likely include expenses that are

448
00:20:39,680 --> 00:20:42,440
Speaker 1: required to keep the house in good shape, So any

449
00:20:42,480 --> 00:20:44,560
Speaker 1: bigg repairs that might be coming down the line, like

450
00:20:44,680 --> 00:20:46,800
Speaker 1: a new roof, or if the house needs to be

451
00:20:46,840 --> 00:20:49,960
Speaker 1: painted in two years from now, let's say. But then

452
00:20:50,200 --> 00:20:51,679
Speaker 1: you know, you also want to make sure you're setting

453
00:20:51,920 --> 00:20:54,840
Speaker 1: some some money aside for smaller expenses that might come up,

454
00:20:55,040 --> 00:20:57,880
Speaker 1: including even just the thing like a like air filters

455
00:20:58,000 --> 00:21:00,320
Speaker 1: right for your HVAC. And it might be totally fine

456
00:21:00,359 --> 00:21:03,000
Speaker 1: to include gardening supplies inside of this category, but I

457
00:21:03,000 --> 00:21:04,880
Speaker 1: just want to make sure you know, if I were you,

458
00:21:05,119 --> 00:21:07,679
Speaker 1: actually that you have enough money in that category to

459
00:21:07,720 --> 00:21:09,520
Speaker 1: be able to handle the big expenses first, to make

460
00:21:09,560 --> 00:21:12,399
Speaker 1: sure that you're not uh ripping so much out of it,

461
00:21:12,640 --> 00:21:14,600
Speaker 1: eating away at that fun month after month. And then

462
00:21:14,680 --> 00:21:16,639
Speaker 1: you know, let's say, I don't know, something big comes along,

463
00:21:16,720 --> 00:21:18,679
Speaker 1: you got to replace a sewer line to the street

464
00:21:19,040 --> 00:21:22,840
Speaker 1: and it's or maybe even more, you don't have the

465
00:21:22,880 --> 00:21:25,440
Speaker 1: funds to cover it in that that's really the situation

466
00:21:25,560 --> 00:21:28,600
Speaker 1: we want you to avoid. I mean, however you categories,

467
00:21:28,720 --> 00:21:30,800
Speaker 1: whether you break out your gardening supplies into a separate

468
00:21:30,840 --> 00:21:32,359
Speaker 1: line item on the budget, I think that's okay. And

469
00:21:32,400 --> 00:21:34,960
Speaker 1: if that helps you think about how much you're allowed

470
00:21:34,960 --> 00:21:37,320
Speaker 1: to spend and and make sure that you you don't

471
00:21:37,320 --> 00:21:40,520
Speaker 1: pull money towards gardening that could and probably should go

472
00:21:40,560 --> 00:21:43,320
Speaker 1: other places that might be most helpful. But so much

473
00:21:43,359 --> 00:21:45,760
Speaker 1: of it depends on like how how you think about it. Remember,

474
00:21:45,800 --> 00:21:49,240
Speaker 1: the main point of this particular portion of your budget

475
00:21:49,359 --> 00:21:51,879
Speaker 1: is to ensure that you have the money to be

476
00:21:51,960 --> 00:21:55,080
Speaker 1: able to make home repairs when they're needed. And so

477
00:21:55,119 --> 00:21:56,919
Speaker 1: if you start to use it for other things. You're

478
00:21:56,960 --> 00:21:59,320
Speaker 1: starting to pull it full eating out or something like that. Right,

479
00:21:59,320 --> 00:22:01,480
Speaker 1: that would be complete lately outside of the scope of this,

480
00:22:01,560 --> 00:22:03,960
Speaker 1: but let's say you start using funds from there to

481
00:22:04,200 --> 00:22:06,840
Speaker 1: feed other areas of your life. You're quickly going to

482
00:22:06,920 --> 00:22:09,440
Speaker 1: find those funds depleted and you're going to find yourself

483
00:22:09,520 --> 00:22:12,760
Speaker 1: over a barrel. Right if you do have bigger home

484
00:22:12,800 --> 00:22:14,600
Speaker 1: expenses come at you into your future, that's right, you're

485
00:22:14,600 --> 00:22:16,560
Speaker 1: gonna be up the creek without a paddle like our

486
00:22:16,720 --> 00:22:20,520
Speaker 1: country friends who we don't have, like they say, but

487
00:22:20,600 --> 00:22:24,000
Speaker 1: we're not Nashville types. Man's true. So actually, since it

488
00:22:24,080 --> 00:22:26,680
Speaker 1: sounds like you are a budget or if you find freedom,

489
00:22:26,760 --> 00:22:28,480
Speaker 1: you know, within a budget, and if it reduces the

490
00:22:28,480 --> 00:22:30,240
Speaker 1: amount of stress in your life, I think that it

491
00:22:30,520 --> 00:22:32,680
Speaker 1: might make sense for you to create a new category

492
00:22:32,840 --> 00:22:36,000
Speaker 1: titled lawn and garden. And it does sound like it's

493
00:22:36,040 --> 00:22:38,040
Speaker 1: more of a hobby for you, and so if that's

494
00:22:38,080 --> 00:22:40,440
Speaker 1: the case, maybe it would be worthwhile for you to

495
00:22:40,440 --> 00:22:42,080
Speaker 1: to separate it out for you could even put it

496
00:22:42,080 --> 00:22:46,080
Speaker 1: in a category, right, yeah, exactly, an extra fifty bucks

497
00:22:46,080 --> 00:22:48,199
Speaker 1: a month here, hobbies category a hobby. This is a

498
00:22:48,200 --> 00:22:50,199
Speaker 1: hobby that might increase the value of your house, you know,

499
00:22:50,240 --> 00:22:53,520
Speaker 1: maybe more than other hobbies, Like what value does playing

500
00:22:53,520 --> 00:22:57,280
Speaker 1: golf bring to your house when it comes to resale?

501
00:22:57,560 --> 00:22:59,679
Speaker 1: But ultimately, like we want you to do whatever it

502
00:22:59,760 --> 00:23:01,520
Speaker 1: is that you think is going to work for you,

503
00:23:01,520 --> 00:23:03,919
Speaker 1: you know, like use whatever tools, use whatever methods that

504
00:23:03,960 --> 00:23:06,280
Speaker 1: are going to allow you to spend your money in

505
00:23:06,320 --> 00:23:09,199
Speaker 1: a purposeful, in a guilt free way that's also going

506
00:23:09,240 --> 00:23:11,560
Speaker 1: to bring you the most life satisfaction. Uh. And I

507
00:23:11,600 --> 00:23:14,639
Speaker 1: say this because I mean I'll loude back to us personally,

508
00:23:14,640 --> 00:23:17,240
Speaker 1: because we actually literally did this a couple of years

509
00:23:17,280 --> 00:23:19,679
Speaker 1: ago during the pandemic, we found ourselves at home a

510
00:23:19,680 --> 00:23:21,320
Speaker 1: lot more and so Kate and I we were spending

511
00:23:21,320 --> 00:23:23,480
Speaker 1: way more time out in the garden, and we realized

512
00:23:23,520 --> 00:23:25,320
Speaker 1: we were dropping a lot of money and we were

513
00:23:26,040 --> 00:23:29,160
Speaker 1: completely pulling that money out of the house category. That's

514
00:23:29,160 --> 00:23:30,680
Speaker 1: it's just what we called it house, And we don't

515
00:23:30,720 --> 00:23:33,399
Speaker 1: really call it housing maintenance or whatever. We just call

516
00:23:33,440 --> 00:23:35,040
Speaker 1: it house. And so then we created instead of a

517
00:23:35,040 --> 00:23:37,960
Speaker 1: house category, a garden category because what we realized was

518
00:23:37,960 --> 00:23:40,880
Speaker 1: that this was not a necessary expense, this was something

519
00:23:40,920 --> 00:23:45,600
Speaker 1: we enjoy doing it. Yeah, certainly is maybe boosting the

520
00:23:45,640 --> 00:23:47,320
Speaker 1: curb appeal a little bit of the house, which might

521
00:23:47,680 --> 00:23:49,400
Speaker 1: help when it comes time to to sell your home.

522
00:23:49,720 --> 00:23:52,000
Speaker 1: But we essentially found that we just needed to be

523
00:23:52,040 --> 00:23:54,560
Speaker 1: honest with ourselves and instead of seeing this as a

524
00:23:54,640 --> 00:23:56,840
Speaker 1: necessary expense, to realize that, you know what, we're doing

525
00:23:56,840 --> 00:23:58,640
Speaker 1: this because of us. It allows us to spend time

526
00:23:58,680 --> 00:24:01,680
Speaker 1: together outside the ads are able to participate a little bit,

527
00:24:01,800 --> 00:24:03,719
Speaker 1: and it was a way for us to stop basically

528
00:24:03,720 --> 00:24:06,199
Speaker 1: fooling ourselves, which is essentially what we're doing by kind

529
00:24:06,240 --> 00:24:08,680
Speaker 1: of siphening some of those funds off of the fund

530
00:24:08,720 --> 00:24:10,760
Speaker 1: that we would have used to like, yeah, like replace

531
00:24:10,800 --> 00:24:12,800
Speaker 1: the roof something like that. Yeah. No, I like the

532
00:24:12,800 --> 00:24:14,960
Speaker 1: idea of separating them if that makes more the most

533
00:24:14,960 --> 00:24:16,840
Speaker 1: sense for for how you use it. And I like

534
00:24:16,960 --> 00:24:19,040
Speaker 1: Matt two that you kind of categorized it in a way,

535
00:24:19,359 --> 00:24:20,840
Speaker 1: and I think it is what Ashley is trying to do.

536
00:24:20,920 --> 00:24:23,359
Speaker 1: So she's not, yeah, pulling away from kind of one

537
00:24:23,400 --> 00:24:27,199
Speaker 1: of those those budget categories that you're not excited to funds.

538
00:24:27,480 --> 00:24:31,640
Speaker 1: It's easier to pull money out of something like a

539
00:24:31,680 --> 00:24:34,120
Speaker 1: boring old house fund and you're just like, ah, yeah,

540
00:24:34,119 --> 00:24:36,280
Speaker 1: I'll put this towards the gardening supplies and stuff. Like

541
00:24:36,320 --> 00:24:38,280
Speaker 1: that the stuff that I get excited about, and you

542
00:24:38,359 --> 00:24:40,359
Speaker 1: might get used to that and you might pull too

543
00:24:40,440 --> 00:24:43,080
Speaker 1: much out, and whereas if it's a separate category, it's

544
00:24:43,080 --> 00:24:44,600
Speaker 1: a joy to kind of fund that category, and then

545
00:24:44,600 --> 00:24:46,760
Speaker 1: it's a joy to spend the money down in that category.

546
00:24:47,080 --> 00:24:48,840
Speaker 1: And and I think you're right, there's probably a level

547
00:24:48,840 --> 00:24:51,119
Speaker 1: of honesty that comes alongside of that, and so maybe

548
00:24:51,119 --> 00:24:53,840
Speaker 1: that's the best course of action here for Ashley. But

549
00:24:54,119 --> 00:24:55,480
Speaker 1: as long as it's not just like too much to

550
00:24:55,520 --> 00:24:57,560
Speaker 1: keep up with and you're not overburdening yourself and making

551
00:24:57,600 --> 00:24:59,879
Speaker 1: your budget too taxing to keep up with. There you go,

552
00:25:00,000 --> 00:25:02,760
Speaker 1: all right, But let's move on to the next question. Uh, Matt,

553
00:25:02,800 --> 00:25:05,000
Speaker 1: this one does not come from the state of Missouri, sadly,

554
00:25:05,000 --> 00:25:06,920
Speaker 1: this one comes from the state of Utah. And this

555
00:25:07,000 --> 00:25:09,280
Speaker 1: is from listener Jordan's who needs some advice when it

556
00:25:09,280 --> 00:25:11,879
Speaker 1: comes to paying off medical debt. Hey guys, this is

557
00:25:11,960 --> 00:25:16,640
Speaker 1: Jordan from Salt Lake, Utah. I'm wondering about pulling out

558
00:25:16,800 --> 00:25:20,080
Speaker 1: some money from a four oh one K to pay

559
00:25:20,080 --> 00:25:24,320
Speaker 1: off some medical debt because of my wife's epilepsy. We

560
00:25:25,080 --> 00:25:29,800
Speaker 1: have about fifteen thousand dollars worth of medical debt and

561
00:25:29,880 --> 00:25:33,399
Speaker 1: I have about eighteen thousand, five hundred dollars in a

562
00:25:33,400 --> 00:25:35,119
Speaker 1: four oh one K from a company that I no

563
00:25:35,200 --> 00:25:38,320
Speaker 1: longer work for. I'm wondering if it would be advisable

564
00:25:38,359 --> 00:25:41,159
Speaker 1: to take that money out and to pay off that

565
00:25:41,200 --> 00:25:45,040
Speaker 1: medical debt so that we no longer have any debt

566
00:25:45,160 --> 00:25:49,480
Speaker 1: in that area whatsoever. We are currently only able to

567
00:25:49,480 --> 00:25:55,000
Speaker 1: put about one towards that amount each month, which is

568
00:25:55,040 --> 00:25:58,960
Speaker 1: basically doing nothing towards getting rid of it. So any

569
00:25:59,040 --> 00:26:04,560
Speaker 1: advice on this would be great. Thank you so much. Hey, Jordan,

570
00:26:04,640 --> 00:26:06,959
Speaker 1: I am so sorry to hear about your wife's medical

571
00:26:07,000 --> 00:26:11,320
Speaker 1: issues as well as the subsequent medical debt that you've accrued.

572
00:26:11,880 --> 00:26:15,160
Speaker 1: And honestly, the reality is that medical debt it plagues

573
00:26:15,280 --> 00:26:18,440
Speaker 1: millions of folks around the country. Americans owe debt collectors

574
00:26:18,480 --> 00:26:20,880
Speaker 1: more money in medical debt than any other kind of debt.

575
00:26:20,920 --> 00:26:24,280
Speaker 1: It's the number one reason that folks declare bankruptcy. And

576
00:26:24,320 --> 00:26:26,560
Speaker 1: so I think that's a major issue that not enough

577
00:26:26,600 --> 00:26:28,840
Speaker 1: folks are talking about. So we appreciate you taking the

578
00:26:28,920 --> 00:26:31,680
Speaker 1: time to send us your your question. It's gonna be

579
00:26:31,680 --> 00:26:33,679
Speaker 1: widely appical with lots of folks. Beat true here, I

580
00:26:33,680 --> 00:26:36,840
Speaker 1: think exactly. Yeah, And by the way, fifteen dollars like

581
00:26:36,880 --> 00:26:40,439
Speaker 1: that is a big chunk of change to owe money on.

582
00:26:40,840 --> 00:26:42,520
Speaker 1: And you know, I see how it might be tempting

583
00:26:42,560 --> 00:26:44,640
Speaker 1: to use your old four one k you know, where

584
00:26:44,640 --> 00:26:46,560
Speaker 1: you're going to empty that sucker out. You're gonna wipe

585
00:26:46,560 --> 00:26:48,520
Speaker 1: it out, you know, wipe out this debt completely. But

586
00:26:48,880 --> 00:26:51,080
Speaker 1: that is also not a great solution either. You know,

587
00:26:51,160 --> 00:26:54,480
Speaker 1: like you might owe tax and a penalty on the

588
00:26:54,480 --> 00:26:56,680
Speaker 1: money that you're taking out if you're under the age

589
00:26:56,680 --> 00:26:59,800
Speaker 1: of fifty nine and a half. Although because this this

590
00:27:00,000 --> 00:27:03,240
Speaker 1: would likely be considered a hardship withdrawal, you'll likely be

591
00:27:03,320 --> 00:27:07,240
Speaker 1: able to avoid that additional tempercent penalty, but still you'd

592
00:27:07,240 --> 00:27:10,240
Speaker 1: be you know, eradicating all of the investment dollars that

593
00:27:10,280 --> 00:27:12,120
Speaker 1: you have. But by the way, at a time when

594
00:27:12,119 --> 00:27:15,280
Speaker 1: the market isn't looking so great, uh, and racking up

595
00:27:15,600 --> 00:27:17,880
Speaker 1: a tax bill as well. So you know, I share

596
00:27:17,880 --> 00:27:20,000
Speaker 1: that because like that's not something we love. So we're

597
00:27:20,040 --> 00:27:22,760
Speaker 1: not keen on you going this route. You know, even

598
00:27:22,760 --> 00:27:25,040
Speaker 1: though that you're thinking this might provide you provide all

599
00:27:25,080 --> 00:27:28,760
Speaker 1: some some emotional relief from a financial standpoint, it does

600
00:27:28,840 --> 00:27:30,760
Speaker 1: not make sense, that's right. Yeah, it seems like you're

601
00:27:30,760 --> 00:27:33,199
Speaker 1: eradicating a problem, but you're creating another problem for you.

602
00:27:33,200 --> 00:27:36,919
Speaker 1: You're creating a tax problem and a future you problem. Right,

603
00:27:36,920 --> 00:27:40,480
Speaker 1: You're creating a retirement account conundrum by eradicating this sake,

604
00:27:40,520 --> 00:27:42,280
Speaker 1: do you have any money left then saving to save

605
00:27:42,359 --> 00:27:44,679
Speaker 1: for your future? And like you said, Matt, at a

606
00:27:44,680 --> 00:27:47,400
Speaker 1: time when the markets down by a significant amount, you're

607
00:27:47,400 --> 00:27:50,560
Speaker 1: compounding the issue. And and so now, Jordan, you might

608
00:27:50,600 --> 00:27:53,080
Speaker 1: be saying, like, Okay, guys, I hear that. So this

609
00:27:53,160 --> 00:27:55,000
Speaker 1: is my one plan to pay out this medical debt.

610
00:27:55,200 --> 00:27:57,719
Speaker 1: What in the world do I do? Because you just

611
00:27:57,760 --> 00:27:59,720
Speaker 1: told me the one place where I can go grab

612
00:27:59,760 --> 00:28:01,760
Speaker 1: all the money to pay off this debt that I

613
00:28:01,760 --> 00:28:04,600
Speaker 1: shouldn't touch it. So how do I handle this situation?

614
00:28:04,680 --> 00:28:06,959
Speaker 1: And so here's what we would suggest. We'd say, contact

615
00:28:06,960 --> 00:28:09,720
Speaker 1: the medical provider and asked to speak to what's known

616
00:28:09,720 --> 00:28:12,239
Speaker 1: as a patient advocate, because based on how hard it

617
00:28:12,320 --> 00:28:13,920
Speaker 1: is for you to pay this payment plan, I can

618
00:28:13,920 --> 00:28:17,119
Speaker 1: tell just based on your question, there's a strong likelihood

619
00:28:17,119 --> 00:28:20,240
Speaker 1: that you might be eligible to have your bill completely

620
00:28:20,280 --> 00:28:23,600
Speaker 1: waived by the provider. Matt, I've had this happened multiple times.

621
00:28:23,600 --> 00:28:26,600
Speaker 1: This happened after my middle child's birth. Based on our

622
00:28:26,640 --> 00:28:28,800
Speaker 1: income at that point in time, we're able to have

623
00:28:28,920 --> 00:28:32,800
Speaker 1: a significant amount of her birth costs completely forgiven because

624
00:28:32,800 --> 00:28:35,320
Speaker 1: of the financial assistance programs that this that the hospital

625
00:28:35,359 --> 00:28:38,560
Speaker 1: that where we had her offered and well and you

626
00:28:38,600 --> 00:28:40,520
Speaker 1: weren't broke, you know, like that. That's the other thing

627
00:28:40,520 --> 00:28:43,360
Speaker 1: that's worth mentioned. It's just for people who make below

628
00:28:43,400 --> 00:28:46,880
Speaker 1: the poverty exactly. It's literally laced on whatever definitions they have,

629
00:28:47,080 --> 00:28:49,800
Speaker 1: you could qualify so exactly like you don't. There's there's

630
00:28:49,840 --> 00:28:53,080
Speaker 1: no like emotional threshold where it's just like, well, I

631
00:28:53,520 --> 00:28:55,800
Speaker 1: really feel like we're down and out. Well, I mean no,

632
00:28:56,280 --> 00:28:59,240
Speaker 1: there's there are clear dollar amounts and income threshold and

633
00:28:59,360 --> 00:29:01,760
Speaker 1: typically based on a g I of your last tax return.

634
00:29:02,200 --> 00:29:05,240
Speaker 1: And many of these hospitals and providers have financial assistance

635
00:29:05,320 --> 00:29:08,240
Speaker 1: information available on their websites, and oftentimes you can even

636
00:29:08,320 --> 00:29:11,560
Speaker 1: find exactly how much you can make based on the

637
00:29:11,560 --> 00:29:14,600
Speaker 1: size of your household and what percentage of financial assistance

638
00:29:14,600 --> 00:29:16,960
Speaker 1: you can qualify based on that income. And if you

639
00:29:16,960 --> 00:29:18,600
Speaker 1: can't find it on the site, I would say, call

640
00:29:18,640 --> 00:29:21,600
Speaker 1: the staff, ask questions about financial assistance, let them know

641
00:29:21,680 --> 00:29:24,440
Speaker 1: you're unable to pay this bill even under the payment

642
00:29:24,440 --> 00:29:26,520
Speaker 1: plan that they've created for you, that it's too much

643
00:29:26,520 --> 00:29:28,960
Speaker 1: of a hardship, and that based on your income, it's

644
00:29:28,960 --> 00:29:31,280
Speaker 1: just not possible to do. Yeah, yeah, I mean, Jordan,

645
00:29:31,360 --> 00:29:33,040
Speaker 1: I think it's important to mention that, like you can

646
00:29:33,080 --> 00:29:35,400
Speaker 1: no longer afford this, we don't want you to just

647
00:29:35,440 --> 00:29:38,960
Speaker 1: settle for a reduced payment. You want a massive chunk

648
00:29:39,000 --> 00:29:41,120
Speaker 1: of this medical debt forgiven. And so if if that's

649
00:29:41,160 --> 00:29:42,720
Speaker 1: kind of the position you're in, I think you could,

650
00:29:42,760 --> 00:29:44,760
Speaker 1: really you can. You can do a lot, You can

651
00:29:44,840 --> 00:29:46,440
Speaker 1: knock a lot off by advocating for yourself, and you

652
00:29:46,560 --> 00:29:48,080
Speaker 1: can make a case for this, I think yeah. And

653
00:29:48,120 --> 00:29:50,720
Speaker 1: you know, we should also also mention that suing this

654
00:29:50,840 --> 00:29:54,000
Speaker 1: medical provider in small claims court if the medical bill

655
00:29:54,160 --> 00:29:56,840
Speaker 1: was out of line in the first place, uh, if

656
00:29:56,840 --> 00:29:59,680
Speaker 1: it's you know, far more expensive than what most providers charged,

657
00:30:00,200 --> 00:30:02,120
Speaker 1: might be an option. You might have some legal recourse

658
00:30:02,160 --> 00:30:05,120
Speaker 1: to do that. You might want to send a warning

659
00:30:05,160 --> 00:30:07,960
Speaker 1: letter to the provider first, like something like where you

660
00:30:08,000 --> 00:30:10,440
Speaker 1: just let them know thirty days in advance, just to

661
00:30:10,440 --> 00:30:12,720
Speaker 1: give him that heads up, that notice of sorts they

662
00:30:12,800 --> 00:30:15,000
Speaker 1: before you planned to file in court. They might want

663
00:30:15,000 --> 00:30:17,240
Speaker 1: to settle with you outside, like oh wait, wait a second,

664
00:30:17,440 --> 00:30:19,480
Speaker 1: this is this guy serious? Serious? And you might be

665
00:30:19,520 --> 00:30:22,400
Speaker 1: surprised that the flexibility that billing and collections has when

666
00:30:22,400 --> 00:30:25,040
Speaker 1: it comes to you kind of stepping up the rhetoric.

667
00:30:25,080 --> 00:30:26,840
Speaker 1: It might have been getting the run around, and now

668
00:30:26,880 --> 00:30:29,880
Speaker 1: they're like, wait a second, this guy, he's not playing games,

669
00:30:29,960 --> 00:30:31,800
Speaker 1: and so we're gonna give him a call, We're gonna

670
00:30:31,800 --> 00:30:33,520
Speaker 1: talk to exactly. Yeah, that might just give him that

671
00:30:33,600 --> 00:30:36,200
Speaker 1: chance to proactively do something. And so I think it

672
00:30:36,200 --> 00:30:39,200
Speaker 1: helps the judge to see that you've attempted to figure

673
00:30:39,240 --> 00:30:42,400
Speaker 1: things out ahead of time beforehand before taking this this

674
00:30:42,480 --> 00:30:44,920
Speaker 1: medical provider to court, and so you know, just keep

675
00:30:44,960 --> 00:30:46,760
Speaker 1: that in mind as well. Yeah, for sure. And of

676
00:30:46,760 --> 00:30:49,920
Speaker 1: course it's hard, like medical debt is a problem, like

677
00:30:49,960 --> 00:30:52,840
Speaker 1: there's no silver bullet solution. These are the kind of problems,

678
00:30:52,840 --> 00:30:54,960
Speaker 1: like you said, Matt, that tens of millions of people

679
00:30:54,960 --> 00:30:57,640
Speaker 1: in this country are are faced with. And you shouldn't

680
00:30:57,640 --> 00:30:59,640
Speaker 1: have to go to these links to get it fixed.

681
00:31:00,080 --> 00:31:01,600
Speaker 1: But the truth is you do have to stand up

682
00:31:01,600 --> 00:31:03,680
Speaker 1: for yourself. You've got to push back against this medical

683
00:31:03,720 --> 00:31:06,680
Speaker 1: provider if you can't afford to pay. And we would

684
00:31:06,680 --> 00:31:08,680
Speaker 1: suggest every how the money listening to go back and

685
00:31:08,680 --> 00:31:11,840
Speaker 1: listen to episode four oh six with Marshall Allen about

686
00:31:11,920 --> 00:31:15,440
Speaker 1: fighting back against high healthcare costs. And Marshall was a

687
00:31:15,480 --> 00:31:19,200
Speaker 1: reporter for Pro Publica and he wrote a very detailed

688
00:31:19,400 --> 00:31:22,040
Speaker 1: book about the methods you can take to push back

689
00:31:22,080 --> 00:31:25,280
Speaker 1: against ridiculous healthcare costs in your own personal life, exactly,

690
00:31:25,320 --> 00:31:28,680
Speaker 1: and especially post treatment. So, uh, and Jordan, we're actually

691
00:31:28,720 --> 00:31:30,360
Speaker 1: gonna send you that book because we think it's such

692
00:31:30,360 --> 00:31:32,640
Speaker 1: a powerful book and based on your position, there's so

693
00:31:32,720 --> 00:31:34,760
Speaker 1: much good insight that Marshall has in that book. We

694
00:31:34,840 --> 00:31:36,840
Speaker 1: want you to have it on hand so you can

695
00:31:36,880 --> 00:31:38,240
Speaker 1: reference it and so that you can use some of

696
00:31:38,240 --> 00:31:41,320
Speaker 1: those tactics in your own life to fight back against

697
00:31:41,320 --> 00:31:43,800
Speaker 1: this medical debt. We don't want you to forsake your

698
00:31:43,840 --> 00:31:46,280
Speaker 1: own retirement, to take that money out of this account,

699
00:31:46,360 --> 00:31:49,280
Speaker 1: and to hamstring your future in order to do so. So, Yeah,

700
00:31:49,320 --> 00:31:51,080
Speaker 1: we'll reach out to the email, we'll get your address,

701
00:31:51,080 --> 00:31:52,640
Speaker 1: we'll get that book out your way. Yeah, the book

702
00:31:52,720 --> 00:31:55,000
Speaker 1: is never pay the first bill for everybody else out

703
00:31:55,000 --> 00:31:57,440
Speaker 1: there who we won't be sending the book to, but

704
00:31:57,520 --> 00:31:59,960
Speaker 1: it's worth it's worth getting. Exactly. You'll have a cop

705
00:32:00,400 --> 00:32:02,920
Speaker 1: heading your way. And and one last thing you mentioned

706
00:32:02,960 --> 00:32:06,400
Speaker 1: that this is an old four own k and instead

707
00:32:06,640 --> 00:32:08,640
Speaker 1: of cashing that thing out, like you know, we just

708
00:32:08,720 --> 00:32:11,920
Speaker 1: recommend you not doing roll that sucker over. This is

709
00:32:12,200 --> 00:32:15,000
Speaker 1: a perfect opportunity for you to It's like kind of

710
00:32:15,040 --> 00:32:18,480
Speaker 1: gathering all the chicks under one roofe. Essentially, we don't

711
00:32:18,520 --> 00:32:20,280
Speaker 1: want there to be four win ks that are off

712
00:32:20,400 --> 00:32:23,720
Speaker 1: floating out in another regions that you forget about. Actually,

713
00:32:23,720 --> 00:32:26,280
Speaker 1: if it's with a crappy company, like an insurance company

714
00:32:26,400 --> 00:32:29,440
Speaker 1: that's overcharging you, overcharging you, and in particular if they

715
00:32:29,440 --> 00:32:32,960
Speaker 1: have subpar investing options. And specifically this is where a

716
00:32:32,960 --> 00:32:35,320
Speaker 1: company like Capitalized comes in. We've mentioned them before, but

717
00:32:35,440 --> 00:32:39,400
Speaker 1: they are a company who will for completely free. This

718
00:32:39,480 --> 00:32:41,640
Speaker 1: is going to cost you nothing, but they will help

719
00:32:41,680 --> 00:32:44,360
Speaker 1: you to roll over that old four owin K to

720
00:32:44,520 --> 00:32:47,200
Speaker 1: a new provider. That way you can more easily keep

721
00:32:47,200 --> 00:32:49,880
Speaker 1: tabs on all of your different retirement accounts. And Joel,

722
00:32:49,880 --> 00:32:52,440
Speaker 1: you've you've actually got some personal experience with this. Well yeah,

723
00:32:52,440 --> 00:32:54,120
Speaker 1: and the great thing, by the way, they help you

724
00:32:54,200 --> 00:32:56,280
Speaker 1: roll it over to one of the low cost providers,

725
00:32:56,280 --> 00:33:00,160
Speaker 1: our favorite providers who charge very little, who have the

726
00:33:00,160 --> 00:33:02,800
Speaker 1: the funds that with the best expense ratios and and

727
00:33:02,840 --> 00:33:05,040
Speaker 1: so yeah, Fidelity Vankar tropics we're talking about. But yeah,

728
00:33:05,040 --> 00:33:06,840
Speaker 1: I wrote an article. Well, you could transfer it over

729
00:33:06,880 --> 00:33:08,800
Speaker 1: to some of the more expensive companies, but we just

730
00:33:08,800 --> 00:33:11,120
Speaker 1: wouldn't recommend that. Well, they mostly work with the best

731
00:33:11,120 --> 00:33:13,520
Speaker 1: companies there. There are a couple other options that you

732
00:33:13,600 --> 00:33:15,320
Speaker 1: have if you want to learn over with capitalized, but

733
00:33:15,360 --> 00:33:17,479
Speaker 1: we're saying go with one of those three ideally, but

734
00:33:17,480 --> 00:33:19,440
Speaker 1: they have other ones that they work with two. But yeah,

735
00:33:19,480 --> 00:33:21,040
Speaker 1: I wrote an article about it on the site. If

736
00:33:21,040 --> 00:33:22,440
Speaker 1: you want to check out more about that, well, we'll

737
00:33:22,480 --> 00:33:24,000
Speaker 1: link to it in the show notes. Well, we've got

738
00:33:24,000 --> 00:33:26,080
Speaker 1: two additional questions that we are going to get to

739
00:33:26,200 --> 00:33:28,880
Speaker 1: during this episode, including one about essentially this is a

740
00:33:28,960 --> 00:33:32,440
Speaker 1: success story from a listener who has gotten ahead by

741
00:33:32,520 --> 00:33:34,840
Speaker 1: house hacking. I look forward to that question plus another

742
00:33:35,000 --> 00:33:46,120
Speaker 1: right after this all, Matt, we got a couple more

743
00:33:46,200 --> 00:33:48,760
Speaker 1: questions to get to on today's Ask how the Money.

744
00:33:49,000 --> 00:33:51,280
Speaker 1: We're gonna get to one about how to save money

745
00:33:51,440 --> 00:33:54,720
Speaker 1: while you're traveling abroad, specifically when it comes to foreign

746
00:33:54,760 --> 00:33:57,960
Speaker 1: currency transactions. But first let's get to that house hacking

747
00:33:58,040 --> 00:34:01,240
Speaker 1: question you mentioned right before the break. Hello, my name

748
00:34:01,320 --> 00:34:04,560
Speaker 1: is Connor and I'm from Pittsburgh. I purchased a duplex

749
00:34:04,560 --> 00:34:07,280
Speaker 1: in April twenty as a house heck, and I lived

750
00:34:07,320 --> 00:34:11,239
Speaker 1: there from May to November one, at which point my

751
00:34:11,320 --> 00:34:14,920
Speaker 1: fiance and I purchased a single family home in the city.

752
00:34:15,160 --> 00:34:18,240
Speaker 1: My duplex is fully rented, bringing in about seventeen hundred

753
00:34:18,239 --> 00:34:20,560
Speaker 1: a month in rent, with a mortgage payment of just

754
00:34:20,640 --> 00:34:23,880
Speaker 1: seven hundred dollars at three point five percent interest, and

755
00:34:23,920 --> 00:34:28,040
Speaker 1: monthly utilities averaging to about two hundred dollars. My rent

756
00:34:28,080 --> 00:34:30,960
Speaker 1: is probably a bit on the low side considering, but

757
00:34:31,120 --> 00:34:33,600
Speaker 1: my tenants are easy. One of my tenants wants to

758
00:34:33,640 --> 00:34:35,840
Speaker 1: purchase the property at a price that would double the

759
00:34:35,840 --> 00:34:38,640
Speaker 1: money I've put into it is probably fifty to seventy

760
00:34:38,640 --> 00:34:41,440
Speaker 1: thousand dollars more than it's worth. Because of this, I

761
00:34:41,480 --> 00:34:44,759
Speaker 1: had met about a hundred thousand before taxes. I'm not

762
00:34:44,920 --> 00:34:48,120
Speaker 1: against selling, since long term, i'd want to own properties

763
00:34:48,160 --> 00:34:50,720
Speaker 1: closer to the city. For this reason, I'd be considering

764
00:34:50,719 --> 00:34:52,560
Speaker 1: a ten thirty one exchange if I went through with

765
00:34:52,640 --> 00:34:55,000
Speaker 1: the sale. I'd also opt to use a real estate

766
00:34:55,080 --> 00:34:58,120
Speaker 1: attorney instead of an agent to avoid commission. Could you

767
00:34:58,160 --> 00:35:00,560
Speaker 1: help me think through this decision and outline the process.

768
00:35:00,680 --> 00:35:04,440
Speaker 1: Any advice for me would be much appreciated. Connor way

769
00:35:04,719 --> 00:35:06,960
Speaker 1: to go man house hacking, Like, even just for a

770
00:35:07,000 --> 00:35:09,640
Speaker 1: little bit, that can be a complete game changer when

771
00:35:09,680 --> 00:35:11,400
Speaker 1: it comes to your personal planess is you know, we

772
00:35:11,480 --> 00:35:13,360
Speaker 1: say it all the time, but it's totally true, and

773
00:35:13,440 --> 00:35:16,160
Speaker 1: we're just glad to hear just how great this duplex

774
00:35:16,280 --> 00:35:18,799
Speaker 1: has already been for you as an investment. This is

775
00:35:18,840 --> 00:35:20,320
Speaker 1: something like he's only had it for you know, a

776
00:35:20,320 --> 00:35:23,040
Speaker 1: couple of years now, and you are already seeing how

777
00:35:23,080 --> 00:35:25,320
Speaker 1: it's provided you with additional options. Yeah, we try not

778
00:35:25,400 --> 00:35:27,880
Speaker 1: to talk, like to too much about real estate investing,

779
00:35:27,920 --> 00:35:29,719
Speaker 1: that this isn't a real estate investing podcast, but the

780
00:35:29,800 --> 00:35:32,000
Speaker 1: second question of this episode at least, Yeah, but we

781
00:35:32,080 --> 00:35:34,160
Speaker 1: do think it's a powerful tool for people to grow

782
00:35:34,160 --> 00:35:35,880
Speaker 1: their wealth. And so in Matt and I we do

783
00:35:35,920 --> 00:35:37,440
Speaker 1: it ourselves, and so it is something that we're going

784
00:35:37,480 --> 00:35:39,360
Speaker 1: to talk about from time time on the show. Of course,

785
00:35:39,760 --> 00:35:42,239
Speaker 1: and people might be like, Okay, they weren't a house hacking.

786
00:35:42,280 --> 00:35:45,080
Speaker 1: It's so overused, but when you hear how powerful it

787
00:35:45,080 --> 00:35:48,400
Speaker 1: can be in specific, specifically in Connor situation. You know,

788
00:35:48,440 --> 00:35:52,520
Speaker 1: we've done multiple episodes on house hacking in particular, and

789
00:35:52,840 --> 00:35:55,520
Speaker 1: it's such an incredible level to be able to build wealth,

790
00:35:55,560 --> 00:35:57,120
Speaker 1: to be able to lower your housing costs, which are

791
00:35:57,120 --> 00:35:59,040
Speaker 1: one of the most expensive line items in your budget.

792
00:35:59,040 --> 00:36:02,040
Speaker 1: Typically that no wonder we talk about it as much

793
00:36:02,080 --> 00:36:03,440
Speaker 1: as we do. We have we feel like we have

794
00:36:03,480 --> 00:36:06,120
Speaker 1: to the ability to not only reduce that cost, but

795
00:36:06,200 --> 00:36:08,719
Speaker 1: to maybe even break even. And then on top of that,

796
00:36:08,760 --> 00:36:11,520
Speaker 1: if you're able to get ahead by house hacking, you

797
00:36:11,520 --> 00:36:15,440
Speaker 1: you're taking It's like this judo move uh on a taekwondo.

798
00:36:15,840 --> 00:36:19,360
Speaker 1: I think judo always like you're taking like the momentum

799
00:36:19,400 --> 00:36:21,920
Speaker 1: of of of an opponents, in this case an expense,

800
00:36:21,960 --> 00:36:23,880
Speaker 1: and you're turning it on its head, flipping it around

801
00:36:24,120 --> 00:36:27,080
Speaker 1: and using it to your benefit. We love that approach,

802
00:36:27,080 --> 00:36:28,920
Speaker 1: agains why we talk about it so much. By the way,

803
00:36:28,960 --> 00:36:31,200
Speaker 1: can we just talk about not raising rent for a second,

804
00:36:31,200 --> 00:36:34,600
Speaker 1: Because Connor said that he could probably make more on

805
00:36:34,760 --> 00:36:37,399
Speaker 1: this property, but his tenants are easy. I think there's

806
00:36:37,400 --> 00:36:39,839
Speaker 1: a lot to be said for not raising rents when

807
00:36:39,840 --> 00:36:42,640
Speaker 1: you've got great tenants like this we are. We're less

808
00:36:42,680 --> 00:36:45,879
Speaker 1: enthusiastic about charging more when you've got folks who pay

809
00:36:45,920 --> 00:36:47,600
Speaker 1: on time and they're easy to deal with, and you

810
00:36:47,600 --> 00:36:49,840
Speaker 1: know they take care of the place that holds a

811
00:36:49,840 --> 00:36:53,080
Speaker 1: lot more value than than quite literally rent seeking prices are.

812
00:36:53,120 --> 00:36:54,520
Speaker 1: You know, they probably are going to be going up

813
00:36:54,520 --> 00:36:57,560
Speaker 1: on on taxes and when you have to make repairs,

814
00:36:57,600 --> 00:36:59,440
Speaker 1: like that's going to cost you more as well. So

815
00:36:59,520 --> 00:37:02,040
Speaker 1: definitely it's take that into consideration for you, Connor, as

816
00:37:02,080 --> 00:37:03,799
Speaker 1: you've got this duplex, or for other folks out there.

817
00:37:04,120 --> 00:37:06,799
Speaker 1: But also, you know, don't feel the need to exactly

818
00:37:06,960 --> 00:37:10,640
Speaker 1: mirror the market rent increases that we're seeing in the news. Personally,

819
00:37:10,840 --> 00:37:13,720
Speaker 1: I feel like I'm in a very similar boats as Connor.

820
00:37:13,719 --> 00:37:16,120
Speaker 1: I've got some great tenants. Literally, I've got one tenant

821
00:37:16,120 --> 00:37:19,120
Speaker 1: who has been in a property for I think she like,

822
00:37:19,160 --> 00:37:21,759
Speaker 1: we're past year four now, and I know that I

823
00:37:21,800 --> 00:37:24,200
Speaker 1: could charge a decent bit more, but you know what,

824
00:37:24,320 --> 00:37:27,560
Speaker 1: she is fantastic, always pays on time, doesn't ask much

825
00:37:27,719 --> 00:37:29,239
Speaker 1: when it comes to repairs. I think there's a lot

826
00:37:29,280 --> 00:37:31,040
Speaker 1: of stuff she kind of does on her own. It's

827
00:37:31,040 --> 00:37:34,160
Speaker 1: basically a win win scenario. Yeah, it's less work on

828
00:37:34,160 --> 00:37:36,040
Speaker 1: on your part. I have a tenant to who I

829
00:37:36,080 --> 00:37:37,919
Speaker 1: literally reached out to him being I'm like, hey, haven't

830
00:37:37,960 --> 00:37:40,040
Speaker 1: heard for from me in a while. Everything okay. He's

831
00:37:40,080 --> 00:37:47,360
Speaker 1: just like yep, finding dandy over here. And the first week, yep. Alone,

832
00:37:47,480 --> 00:37:49,600
Speaker 1: first week he moved in, he basically did a repair

833
00:37:49,719 --> 00:37:51,560
Speaker 1: to the stove on his own. I was like, it's awesome.

834
00:37:51,560 --> 00:37:53,000
Speaker 1: I'm happy to send someone out and I'm happy to

835
00:37:53,080 --> 00:37:55,120
Speaker 1: you know, get order the part, have it sent whatever.

836
00:37:55,160 --> 00:37:56,799
Speaker 1: And he's like, no, I got it. A big deal.

837
00:37:57,200 --> 00:37:59,280
Speaker 1: Was like, boom, guess who's not getting a run? Increase

838
00:37:59,480 --> 00:38:01,879
Speaker 1: that guy, you man, because you rock. Let's let's talk

839
00:38:01,880 --> 00:38:04,279
Speaker 1: about Connors is the heart of his question. That's a

840
00:38:04,280 --> 00:38:06,839
Speaker 1: great spread and a great interest rate he's got and

841
00:38:06,880 --> 00:38:10,520
Speaker 1: so making like around a thousand. When you when you

842
00:38:10,600 --> 00:38:14,520
Speaker 1: have a good income producing rental property, like, why would

843
00:38:14,560 --> 00:38:16,960
Speaker 1: you want to sell it? That's that's like my first instinct.

844
00:38:17,080 --> 00:38:19,799
Speaker 1: But we would say it might make sense to sell

845
00:38:19,800 --> 00:38:22,320
Speaker 1: this duplex because the the truth is I would probably

846
00:38:22,320 --> 00:38:25,040
Speaker 1: take the deal of the Connors being offered, especially given

847
00:38:25,040 --> 00:38:26,439
Speaker 1: the fact that he wants to do a ten thirty

848
00:38:26,440 --> 00:38:29,959
Speaker 1: one exchange. He wants to buy another property with the proceeds,

849
00:38:29,719 --> 00:38:31,360
Speaker 1: so he's not going to take the you know, the

850
00:38:32,239 --> 00:38:37,120
Speaker 1: capital gains that he's realized, right, put that towards tropical vacation. Um,

851
00:38:37,160 --> 00:38:38,880
Speaker 1: that's really expensive. Yeah, and he doesn't have to pay

852
00:38:38,960 --> 00:38:41,480
Speaker 1: unfle sam on on this because a tens already one exchanges.

853
00:38:41,560 --> 00:38:44,400
Speaker 1: This particular thing available to real estate investors where if

854
00:38:44,400 --> 00:38:46,640
Speaker 1: you brought buy a property of light kind within a

855
00:38:46,640 --> 00:38:48,280
Speaker 1: certain time period, we'll get to that in a second,

856
00:38:48,480 --> 00:38:52,600
Speaker 1: it allows you then to basically swap investments and so um, Yeah,

857
00:38:52,640 --> 00:38:54,320
Speaker 1: if you if if this is a win win allowing

858
00:38:54,640 --> 00:38:56,719
Speaker 1: your tenant to buy this duplex while allowing you to

859
00:38:56,800 --> 00:38:59,920
Speaker 1: cash out at a premium, then going this rock could

860
00:38:59,920 --> 00:39:02,000
Speaker 1: be great. And it sounds like you'll now be able

861
00:39:02,000 --> 00:39:04,280
Speaker 1: to buy properties that are closer to you in the future,

862
00:39:04,560 --> 00:39:06,480
Speaker 1: which is helpful if you plan on continuing to self

863
00:39:06,520 --> 00:39:08,839
Speaker 1: manage to totally. The further away properties get, the more

864
00:39:08,840 --> 00:39:11,600
Speaker 1: difficult it becomes to do that over time. And so

865
00:39:11,640 --> 00:39:14,600
Speaker 1: if this is like kind of solving multiple problems for you,

866
00:39:14,680 --> 00:39:17,360
Speaker 1: allowing you to bring that rental port portholo closer to

867
00:39:17,400 --> 00:39:19,959
Speaker 1: home and sell it at a pretty sweet price while

868
00:39:20,080 --> 00:39:22,160
Speaker 1: still avoiding the taxman, I feel like I feel like

869
00:39:22,160 --> 00:39:24,359
Speaker 1: that's a great, great way to go. Yeah, I mean,

870
00:39:24,360 --> 00:39:26,240
Speaker 1: in this way, it's it's almost as if the IRIS

871
00:39:26,360 --> 00:39:29,840
Speaker 1: has your best interest at heart, right, because they essentially

872
00:39:29,840 --> 00:39:33,120
Speaker 1: want to see your capital, your equity within that property.

873
00:39:33,239 --> 00:39:35,960
Speaker 1: They want it to remain within real estate. And so

874
00:39:36,000 --> 00:39:38,040
Speaker 1: not only is this good from a tax perspective because

875
00:39:38,040 --> 00:39:39,560
Speaker 1: you can avoid these taxes, but it's good for you

876
00:39:39,640 --> 00:39:42,760
Speaker 1: personally because again you're not taking that those capital gains,

877
00:39:42,800 --> 00:39:44,759
Speaker 1: that money that you would get from that sale those

878
00:39:44,800 --> 00:39:48,080
Speaker 1: proceeds and then just straight up consume it. You're keeping

879
00:39:48,080 --> 00:39:50,000
Speaker 1: it in the market. Uh. And so when it comes

880
00:39:50,040 --> 00:39:51,320
Speaker 1: to a ten thirty one, you know, what is it

881
00:39:51,360 --> 00:39:53,680
Speaker 1: that kind of needs to think about. The two things

882
00:39:53,719 --> 00:39:57,000
Speaker 1: that you need to get right are timing and the procedure.

883
00:39:57,160 --> 00:39:59,359
Speaker 1: You know, you screw these two things up, and you're

884
00:39:59,400 --> 00:40:02,480
Speaker 1: gonna get a a big old tax bill on the sale. Uh.

885
00:40:02,600 --> 00:40:04,759
Speaker 1: Do it right, however, and you'll be able to make

886
00:40:04,760 --> 00:40:07,439
Speaker 1: the swap tax free. Uh. And so the procedure part

887
00:40:07,719 --> 00:40:09,719
Speaker 1: is that you need to make sure that the proceeds

888
00:40:09,800 --> 00:40:12,799
Speaker 1: from the sale of that duplex are held in escrow

889
00:40:12,880 --> 00:40:15,520
Speaker 1: by a third party, so you don't take a check

890
00:40:15,560 --> 00:40:18,120
Speaker 1: from that sale and then you know, deposited into I

891
00:40:18,200 --> 00:40:22,200
Speaker 1: bonds or like a high yeld savings account if you've

892
00:40:22,239 --> 00:40:25,000
Speaker 1: done that exactly. Uh. And the two timing rules that

893
00:40:25,040 --> 00:40:27,640
Speaker 1: you need to know are the forty five day rule

894
00:40:28,040 --> 00:40:31,320
Speaker 1: and then the eight day rule. Uh. And so the

895
00:40:31,360 --> 00:40:33,719
Speaker 1: way that goes, you must identify the next property that

896
00:40:33,760 --> 00:40:36,000
Speaker 1: you want to buy within forty five days of the

897
00:40:36,080 --> 00:40:39,560
Speaker 1: sale of the first property that you're downloading. You've got

898
00:40:39,560 --> 00:40:42,880
Speaker 1: to designate that in writing to the intermediary who is

899
00:40:42,920 --> 00:40:45,920
Speaker 1: holding your funds. And then you've got to close on

900
00:40:45,960 --> 00:40:48,600
Speaker 1: that property, that new property within one hundred and eighty

901
00:40:48,680 --> 00:40:51,120
Speaker 1: days of the sale of your duplex as well. You

902
00:40:51,160 --> 00:40:53,520
Speaker 1: do do those two things right, uh, and then you

903
00:40:53,560 --> 00:40:55,680
Speaker 1: have yourself at ten thirty one exchange. Maybe yeah, you

904
00:40:55,719 --> 00:40:58,040
Speaker 1: do a super smooth but I think, right, Matt, you

905
00:40:58,120 --> 00:41:00,120
Speaker 1: gotta boil it down to those two things, and you've

906
00:41:00,160 --> 00:41:02,080
Speaker 1: got you've got to get the timing right. You basically

907
00:41:02,080 --> 00:41:04,680
Speaker 1: have half a year to pull this off in total um.

908
00:41:04,719 --> 00:41:07,040
Speaker 1: But if you don't hit those those timing marks along

909
00:41:07,080 --> 00:41:09,560
Speaker 1: the way, you could, like you said, have that big

910
00:41:09,560 --> 00:41:12,959
Speaker 1: tax bill and a massive advantage. Though that Connor has

911
00:41:13,040 --> 00:41:16,080
Speaker 1: here is that he has a buyer waiting in the wings.

912
00:41:16,160 --> 00:41:19,080
Speaker 1: Most people who are doing this are are listing their

913
00:41:19,080 --> 00:41:21,280
Speaker 1: house on the market and there and so the timing

914
00:41:21,280 --> 00:41:23,600
Speaker 1: piece is harder to get right. But what's great about

915
00:41:23,640 --> 00:41:26,920
Speaker 1: this is that there's more flexibility on the closing date

916
00:41:26,920 --> 00:41:29,200
Speaker 1: of that duplex, and all likelihood since Connor already knows

917
00:41:29,200 --> 00:41:30,880
Speaker 1: who the buyer is going to be and he can

918
00:41:30,880 --> 00:41:33,239
Speaker 1: probably work with them to ensure that it makes sense

919
00:41:33,239 --> 00:41:36,440
Speaker 1: for his timeline. So a great strategy would be to

920
00:41:36,440 --> 00:41:39,440
Speaker 1: start looking for the replacement property now before you've actually

921
00:41:39,440 --> 00:41:42,239
Speaker 1: sold the duplex that you're relinquishing to your tenants, and

922
00:41:42,280 --> 00:41:44,920
Speaker 1: once you have the new property under contract, then then

923
00:41:44,960 --> 00:41:46,759
Speaker 1: you move forward with the sale of the duplex to

924
00:41:46,880 --> 00:41:49,560
Speaker 1: ensure that you're within that hud and eight day window.

925
00:41:50,200 --> 00:41:52,120
Speaker 1: And and you've got that tendant who's sitting there waiting.

926
00:41:52,160 --> 00:41:54,319
Speaker 1: They obviously like the place and so they're not they're

927
00:41:54,320 --> 00:41:56,040
Speaker 1: probably not going to go anywhere. And so as long

928
00:41:56,080 --> 00:41:58,360
Speaker 1: as you can come to terms about when maybe a

929
00:41:58,520 --> 00:42:00,840
Speaker 1: range of time like when that's all might happen, just

930
00:42:00,920 --> 00:42:02,759
Speaker 1: so that you're not just dragging them along, I think

931
00:42:02,760 --> 00:42:04,600
Speaker 1: that would be totally fair and exactly. I think in

932
00:42:04,640 --> 00:42:06,279
Speaker 1: the tennant's case, they would be more than happy to

933
00:42:06,320 --> 00:42:07,960
Speaker 1: be like, all right, cool, like, if we can agree

934
00:42:08,000 --> 00:42:10,759
Speaker 1: to this price, I'm willing to sit on my hands.

935
00:42:10,760 --> 00:42:12,440
Speaker 1: I could be three or four months go for it, exactly.

936
00:42:12,440 --> 00:42:14,960
Speaker 1: Take your time finding that maybe even longer. Like that's

937
00:42:14,960 --> 00:42:17,240
Speaker 1: what's so great about the position that Connors is exactly

938
00:42:17,280 --> 00:42:19,640
Speaker 1: And and the truth is one exchanges are this really

939
00:42:19,719 --> 00:42:22,239
Speaker 1: cool tool for real estate investors. They can allow you

940
00:42:22,280 --> 00:42:25,800
Speaker 1: to scale up while pushing that eventual tax burden further

941
00:42:25,840 --> 00:42:27,680
Speaker 1: down the road. And so it sounds like Connor is

942
00:42:27,760 --> 00:42:31,399
Speaker 1: using some more advanced real estate investing strategies, but when

943
00:42:31,400 --> 00:42:33,000
Speaker 1: that's going to benefit him in a big way. And

944
00:42:33,120 --> 00:42:35,400
Speaker 1: the cool thing is that his his current renters are

945
00:42:35,440 --> 00:42:37,160
Speaker 1: gonna be able to take over and do the same

946
00:42:37,160 --> 00:42:39,680
Speaker 1: thing basically he did. Yeah, I love it, uh, Connor.

947
00:42:39,800 --> 00:42:42,719
Speaker 1: It's also worth mentioning though, that you could just keep

948
00:42:42,719 --> 00:42:45,239
Speaker 1: this duplex right and just start staving up for your

949
00:42:45,239 --> 00:42:48,040
Speaker 1: next rental property. Uh, you know, use that nice spread

950
00:42:48,080 --> 00:42:50,640
Speaker 1: that you've got there to jump start your your next

951
00:42:50,640 --> 00:42:53,440
Speaker 1: down payment. You know, anyone who's listening who is just

952
00:42:53,440 --> 00:42:56,000
Speaker 1: trying to script together their first down payment, like they

953
00:42:56,000 --> 00:42:59,240
Speaker 1: would kill to have an additional one thousand dollars flowing

954
00:42:59,280 --> 00:43:01,839
Speaker 1: in to help them buy that first house. Uh. And

955
00:43:01,960 --> 00:43:03,759
Speaker 1: plus you know, by selling, you'd be giving up a

956
00:43:03,840 --> 00:43:07,560
Speaker 1: really low mortgage interest rate on that duplex that you

957
00:43:07,600 --> 00:43:10,719
Speaker 1: may never be able to replicate. Again, who knows where

958
00:43:10,760 --> 00:43:13,400
Speaker 1: mortgage rates are going to be in the future, But

959
00:43:13,600 --> 00:43:15,040
Speaker 1: I mean, the chances are that we're gonna be able

960
00:43:15,080 --> 00:43:18,959
Speaker 1: to get something, uh anywhere near the range that folks

961
00:43:19,000 --> 00:43:20,640
Speaker 1: were able to snag a year and a half ago

962
00:43:21,320 --> 00:43:25,520
Speaker 1: are probably next to none. Unlikely, unlikely, but again kind

963
00:43:25,520 --> 00:43:27,239
Speaker 1: of given the fact that you have a plan for

964
00:43:27,280 --> 00:43:29,640
Speaker 1: this money, you you know, you want to buy additional

965
00:43:29,680 --> 00:43:32,600
Speaker 1: investment properties. I think at ten thirty one exchange, it's

966
00:43:32,600 --> 00:43:34,920
Speaker 1: a really cool tool that you can utilize it in

967
00:43:35,000 --> 00:43:38,840
Speaker 1: order to help you to essentially design and craft a

968
00:43:38,840 --> 00:43:40,520
Speaker 1: life that you you want to lead. You know, maybe

969
00:43:40,520 --> 00:43:42,840
Speaker 1: you don't want to go up to that wherever you

970
00:43:42,920 --> 00:43:44,719
Speaker 1: used to live, up to that duplex to manage that

971
00:43:44,760 --> 00:43:48,520
Speaker 1: property anymore. If you are looking to focus on properties

972
00:43:48,520 --> 00:43:50,520
Speaker 1: that are that are closer to you, it's not only

973
00:43:50,560 --> 00:43:52,960
Speaker 1: about the best rates and where you're going to see

974
00:43:52,960 --> 00:43:54,839
Speaker 1: the best spread. You may not be able to see

975
00:43:54,840 --> 00:43:57,880
Speaker 1: a spread like that anytime soon with a property that

976
00:43:57,920 --> 00:44:00,520
Speaker 1: you might buy here in the near future. But life

977
00:44:00,800 --> 00:44:03,560
Speaker 1: is more than just the you know, the spread. What

978
00:44:03,600 --> 00:44:05,239
Speaker 1: it is that you can earn is not just about

979
00:44:05,280 --> 00:44:07,279
Speaker 1: the numbers, Yeah, for sure, but you know, I have

980
00:44:07,320 --> 00:44:09,719
Speaker 1: a feeling that, based on his experience in real estate

981
00:44:09,960 --> 00:44:12,160
Speaker 1: and his knowledge already, that he's gonna be able to

982
00:44:12,239 --> 00:44:15,120
Speaker 1: land another property that makes some money every single month

983
00:44:15,440 --> 00:44:18,320
Speaker 1: and hopefully makes his lifestyle. That management of that property

984
00:44:18,320 --> 00:44:20,160
Speaker 1: a little bit easier too, because it's a lot closer

985
00:44:20,200 --> 00:44:22,040
Speaker 1: to him. So all Matt, let's let's get to one

986
00:44:22,120 --> 00:44:24,640
Speaker 1: last question for this episode. This one comes from a

987
00:44:24,680 --> 00:44:27,200
Speaker 1: listener who it wants to know whether he was frugal

988
00:44:27,280 --> 00:44:31,680
Speaker 1: or cheap exchanging money overseas. Hey, guys, Joe Nugent here

989
00:44:31,719 --> 00:44:34,600
Speaker 1: from Frankfort, Michigan, got a frugal a cheap for you.

990
00:44:35,239 --> 00:44:38,719
Speaker 1: I recently traveled to Greece in Europe with ten of

991
00:44:38,800 --> 00:44:42,000
Speaker 1: my family members for about two weeks. We went through

992
00:44:42,000 --> 00:44:46,640
Speaker 1: a currency exchange issue. We were at the airport exchanging

993
00:44:46,680 --> 00:44:50,080
Speaker 1: our US dollars to euros, and we had pulled all

994
00:44:50,120 --> 00:44:52,040
Speaker 1: of our money, so it was close to three thousand

995
00:44:52,040 --> 00:44:56,399
Speaker 1: dollars in cash at the airport, and we'd handed over

996
00:44:56,440 --> 00:44:59,080
Speaker 1: all the money, uh and they'd already counted everything out,

997
00:44:59,120 --> 00:45:00,840
Speaker 1: and they told us each change rate was going to

998
00:45:00,920 --> 00:45:05,719
Speaker 1: be one point to two dollars per euro, and I

999
00:45:05,800 --> 00:45:08,120
Speaker 1: knew it was supposed to be more like one to one,

1000
00:45:08,239 --> 00:45:10,719
Speaker 1: so it would have end up costing us about five

1001
00:45:11,160 --> 00:45:14,600
Speaker 1: fifty dollars out of this three thousand. But I stopped

1002
00:45:14,600 --> 00:45:17,799
Speaker 1: the transaction at the very end and told them we

1003
00:45:17,840 --> 00:45:21,600
Speaker 1: wanted our money back because that seemed like the terrible

1004
00:45:21,600 --> 00:45:24,839
Speaker 1: exchange rate to me. Uh So, long story short, we

1005
00:45:24,960 --> 00:45:28,719
Speaker 1: ended up getting our money changed in Athens, Greece, just

1006
00:45:28,800 --> 00:45:32,120
Speaker 1: at a money lender downtown and they give us a

1007
00:45:32,239 --> 00:45:35,160
Speaker 1: one point oh three exchange rate, so it only costs

1008
00:45:35,200 --> 00:45:38,440
Speaker 1: us like ninety bucks on the three thousand dollars to exchange.

1009
00:45:38,760 --> 00:45:40,560
Speaker 1: So anyway, I just wanted to know if that was

1010
00:45:40,640 --> 00:45:43,759
Speaker 1: frugal or cheap of me to stop the transaction after

1011
00:45:43,800 --> 00:45:47,880
Speaker 1: they had already counted everything out and then go and

1012
00:45:47,920 --> 00:45:51,520
Speaker 1: find a better rate elsewhere. Thanks guys, to love the show.

1013
00:45:51,760 --> 00:45:53,640
Speaker 1: And if you're ever in Frankfort, Michigan, we've got a

1014
00:45:53,640 --> 00:45:57,279
Speaker 1: great micro brewery called storm Cloud Brewing. They make some

1015
00:45:57,400 --> 00:46:01,080
Speaker 1: great beer. Thanks guys. Bye, say for your question, Joe,

1016
00:46:01,280 --> 00:46:02,800
Speaker 1: I hope you had a blast on your trip. And

1017
00:46:02,840 --> 00:46:04,239
Speaker 1: by the way, I feel like we've heard of storm Cloud.

1018
00:46:04,239 --> 00:46:06,320
Speaker 1: I don't know if that's an increasing I don't know

1019
00:46:06,320 --> 00:46:10,240
Speaker 1: if I've a specific beer that is called storm cloud.

1020
00:46:10,280 --> 00:46:12,600
Speaker 1: I don't know, I do not know, but Joe, it's

1021
00:46:12,600 --> 00:46:13,840
Speaker 1: just a storm cloud I saw on the sky the

1022
00:46:13,880 --> 00:46:17,799
Speaker 1: other day. And you're like beer. I see beer in

1023
00:46:17,800 --> 00:46:20,520
Speaker 1: this guy. Sometimes it looks like a six pack up.

1024
00:46:20,600 --> 00:46:22,839
Speaker 1: My kids see like money, rabbits and stuff. I see beer,

1025
00:46:22,920 --> 00:46:26,160
Speaker 1: beer mugs. You see what is on your mind? Um, Joe,

1026
00:46:26,440 --> 00:46:28,480
Speaker 1: you were not being cheap. I'm gonna go ahead and

1027
00:46:28,520 --> 00:46:30,880
Speaker 1: cut to the chase. I think this was definitely a

1028
00:46:30,920 --> 00:46:34,000
Speaker 1: frugal move. You were about to get ripped off all

1029
00:46:34,120 --> 00:46:36,880
Speaker 1: that exchange rate, and I think most folks would actually

1030
00:46:36,880 --> 00:46:39,600
Speaker 1: have just been like okay, whether it be like the

1031
00:46:39,640 --> 00:46:42,480
Speaker 1: norms of not wanting just to stop something that you've

1032
00:46:42,480 --> 00:46:45,279
Speaker 1: already started, or just I don't know, pure laziness. I

1033
00:46:45,320 --> 00:46:46,560
Speaker 1: think a lot of folks just would have kind of

1034
00:46:46,600 --> 00:46:50,120
Speaker 1: gone along with the transaction. But it's actually so much

1035
00:46:50,160 --> 00:46:52,880
Speaker 1: easier to get in a great exchange right now. Uh.

1036
00:46:52,920 --> 00:46:54,719
Speaker 1: And the the truth is you can actually pay even

1037
00:46:54,800 --> 00:46:57,880
Speaker 1: less than ninety dollars to exchange that three thousand dollars

1038
00:46:57,880 --> 00:47:00,520
Speaker 1: into local currency. We will will get to that in

1039
00:47:00,560 --> 00:47:02,520
Speaker 1: a second, um, but first off, we want to mention

1040
00:47:02,880 --> 00:47:08,000
Speaker 1: that taking a load of bills of whatever currency in

1041
00:47:08,040 --> 00:47:11,160
Speaker 1: an effort to physically exchange them once you get to

1042
00:47:11,280 --> 00:47:14,600
Speaker 1: your destination abroad. That comes with a lot of hazards. Uh.

1043
00:47:14,640 --> 00:47:17,040
Speaker 1: That is not something we want to see a lot

1044
00:47:17,080 --> 00:47:18,719
Speaker 1: of folks doing, you know, Like, we don't want you

1045
00:47:18,800 --> 00:47:20,799
Speaker 1: jet setting with that much cash on hand. We don't

1046
00:47:20,800 --> 00:47:22,840
Speaker 1: want you to be a target exactly while you're traveling

1047
00:47:22,840 --> 00:47:24,600
Speaker 1: abroad because you never know. Let's say you forget to

1048
00:47:24,600 --> 00:47:26,440
Speaker 1: exchange the airport, and even at the airport, like, you

1049
00:47:26,480 --> 00:47:29,400
Speaker 1: never know what could happen, dropping money, misplacing it, or

1050
00:47:29,719 --> 00:47:32,160
Speaker 1: in there's pickpockets, right and in all sorts of places.

1051
00:47:32,160 --> 00:47:34,280
Speaker 1: So if you're carrying a lot of cash on your person,

1052
00:47:34,719 --> 00:47:36,600
Speaker 1: there's a lot of risk. You're putting yourself in a

1053
00:47:36,640 --> 00:47:39,400
Speaker 1: lot of risk and that money at risk. But I

1054
00:47:39,440 --> 00:47:41,239
Speaker 1: like that you said, Matt, he could do even better

1055
00:47:41,280 --> 00:47:42,880
Speaker 1: than this, right, So I think, yeah, I think he

1056
00:47:43,000 --> 00:47:46,080
Speaker 1: was frugal, not cheap. But the reality is, Joe, you

1057
00:47:46,080 --> 00:47:47,919
Speaker 1: could be even more frugal. And so let's talk about

1058
00:47:47,920 --> 00:47:49,640
Speaker 1: I think that was time well spent to go out

1059
00:47:49,640 --> 00:47:52,000
Speaker 1: there in the city and to find somebody who's only

1060
00:47:52,080 --> 00:47:54,319
Speaker 1: charging three cents on the dollar or whatever it was. Well,

1061
00:47:54,400 --> 00:47:56,319
Speaker 1: let's talk about how he can do it even better

1062
00:47:56,360 --> 00:47:58,200
Speaker 1: next time, and how our listeners can can do foreig

1063
00:47:58,239 --> 00:48:01,480
Speaker 1: encouraging exchange even more of actively in the future and

1064
00:48:01,480 --> 00:48:03,839
Speaker 1: in the best way to exchange money while paying next

1065
00:48:03,840 --> 00:48:06,560
Speaker 1: to nothing is to use credit cards and many of

1066
00:48:06,560 --> 00:48:08,560
Speaker 1: the top travel cards we have an article on our

1067
00:48:08,560 --> 00:48:11,880
Speaker 1: site about the best travel cards for you come with

1068
00:48:11,920 --> 00:48:15,239
Speaker 1: a zero percent foreign transaction fee attached to them, So

1069
00:48:15,320 --> 00:48:18,080
Speaker 1: every time you're using your card overseas, it means that

1070
00:48:18,120 --> 00:48:19,920
Speaker 1: you're not carrying a bunch of cash on your person,

1071
00:48:19,960 --> 00:48:22,000
Speaker 1: which is safer, but you're also not paying a dime

1072
00:48:22,360 --> 00:48:26,240
Speaker 1: in fees when you're making that purchase, which is pretty sweet.

1073
00:48:26,520 --> 00:48:29,760
Speaker 1: And so snagging something like let's say the Chase Sapphire

1074
00:48:29,760 --> 00:48:32,080
Speaker 1: preferred before you go on your next vacation would be

1075
00:48:32,120 --> 00:48:34,040
Speaker 1: smart and the cool thing is nerd while that they

1076
00:48:34,080 --> 00:48:36,480
Speaker 1: did a bunch of research on this, but the credit

1077
00:48:36,520 --> 00:48:40,399
Speaker 1: card company rates are basically on par with market exchange rates,

1078
00:48:40,400 --> 00:48:42,360
Speaker 1: So not only are you paying a zero percent fee,

1079
00:48:42,560 --> 00:48:45,680
Speaker 1: but you're also getting yeah, pretty much the best the

1080
00:48:45,719 --> 00:48:47,680
Speaker 1: closest to the best exchange rate on the market at

1081
00:48:47,680 --> 00:48:49,719
Speaker 1: the same time at the moment you're swiping your card.

1082
00:48:50,040 --> 00:48:53,560
Speaker 1: So credit cards just make travel obviously a whole lot easier.

1083
00:48:53,719 --> 00:48:56,680
Speaker 1: They make safety a whole lot better. Feel like, credit

1084
00:48:56,680 --> 00:48:58,759
Speaker 1: cards are just the most effective way for people to

1085
00:48:58,800 --> 00:49:03,400
Speaker 1: travel overseas, avoiding all the fees, avoiding exchange rate conundrums.

1086
00:49:03,520 --> 00:49:05,040
Speaker 1: They've just made it easier for all of us to

1087
00:49:05,080 --> 00:49:07,880
Speaker 1: travel when we want, where we want and avoiding househol

1088
00:49:07,880 --> 00:49:10,160
Speaker 1: at the same time. Exactly, Basically, the credit card companies

1089
00:49:10,160 --> 00:49:13,879
Speaker 1: are undercutting all of the other currency exchangers out there

1090
00:49:13,920 --> 00:49:16,560
Speaker 1: because they're saying, we want to get all the business,

1091
00:49:16,600 --> 00:49:18,960
Speaker 1: and we're willing to ratio to the bottom. That's what

1092
00:49:18,960 --> 00:49:21,560
Speaker 1: they've done. And one of the things that's worth noting

1093
00:49:21,600 --> 00:49:25,160
Speaker 1: as well. Sometimes when you're abroad, the proprietor of a

1094
00:49:25,200 --> 00:49:27,960
Speaker 1: shop or a business, they will ask you if you

1095
00:49:27,960 --> 00:49:32,279
Speaker 1: want to pay in US dollars versus the local currency there. Uh.

1096
00:49:32,320 --> 00:49:35,239
Speaker 1: When presented with that question, always things or no, because

1097
00:49:35,680 --> 00:49:38,239
Speaker 1: like so, it might be nice right to see how

1098
00:49:38,239 --> 00:49:40,600
Speaker 1: many dollars you're you're spending versus trying to do that

1099
00:49:40,600 --> 00:49:43,919
Speaker 1: conversion in your head for record keeping purposes, But there's

1100
00:49:43,960 --> 00:49:47,000
Speaker 1: a significant chance that you're gonna end up with a

1101
00:49:47,120 --> 00:49:51,040
Speaker 1: vastly inferior exchange rate if you go that route. Basically,

1102
00:49:51,080 --> 00:49:54,399
Speaker 1: they're able to calculate the current exchange rate and then

1103
00:49:54,560 --> 00:49:57,480
Speaker 1: tack on if you because they're able to pocket the

1104
00:49:57,480 --> 00:50:00,560
Speaker 1: difference just for the pleasure of seeing the transaction US dollars.

1105
00:50:00,560 --> 00:50:03,440
Speaker 1: You're paying additional money, um to make it easier on

1106
00:50:03,440 --> 00:50:06,760
Speaker 1: your eyes, exactly. Uh. And so if in those instances,

1107
00:50:06,760 --> 00:50:09,640
Speaker 1: always select to have the transaction performed in the local

1108
00:50:09,640 --> 00:50:12,640
Speaker 1: currency wherever you are, because that's gonna be much closer

1109
00:50:12,680 --> 00:50:14,840
Speaker 1: to the actual market rate. You're gonna pay the least

1110
00:50:14,880 --> 00:50:16,960
Speaker 1: amount of that way. And let's let's just give one

1111
00:50:16,960 --> 00:50:19,880
Speaker 1: more thing he for all of our listeners to explore

1112
00:50:19,960 --> 00:50:22,000
Speaker 1: to think about. Matt. Let's say people want cash on

1113
00:50:22,040 --> 00:50:24,160
Speaker 1: hand right for shopping in the market, stuff of that nature.

1114
00:50:24,200 --> 00:50:26,799
Speaker 1: Sometimes having cash, at least some cash on your person

1115
00:50:26,880 --> 00:50:29,239
Speaker 1: is helpful when you're traveling abroad, and the credit card

1116
00:50:29,280 --> 00:50:32,520
Speaker 1: doesn't necessarily solve the conundrum, although it can feel more

1117
00:50:32,520 --> 00:50:35,960
Speaker 1: like a local right. Although credit cards are much more

1118
00:50:35,960 --> 00:50:39,120
Speaker 1: widely accepted, and so I think for most people it's

1119
00:50:39,120 --> 00:50:43,120
Speaker 1: gonna get you the way there. But many debit cards

1120
00:50:43,239 --> 00:50:47,080
Speaker 1: also offer a zero percent foreign transaction rate to I've

1121
00:50:47,120 --> 00:50:49,600
Speaker 1: had a bank account Matt with Discover for a long time.

1122
00:50:49,880 --> 00:50:52,240
Speaker 1: Part of the reason is because they offer competitive savings

1123
00:50:52,320 --> 00:50:55,080
Speaker 1: rates and great customer service, all that stuff. But I

1124
00:50:55,160 --> 00:50:57,799
Speaker 1: also love that they don't charge any foreign transaction fee

1125
00:50:57,840 --> 00:51:00,319
Speaker 1: on their debit card. I don't really use a debit

1126
00:51:00,360 --> 00:51:04,040
Speaker 1: card almost ever. Like basically gonna think of the last

1127
00:51:04,040 --> 00:51:05,800
Speaker 1: time I pulled out my debit I can't think. I

1128
00:51:05,800 --> 00:51:07,120
Speaker 1: don't even carried it around with me and my wal

1129
00:51:07,160 --> 00:51:08,680
Speaker 1: it anymore. Probably the last time I pulled by an

1130
00:51:08,719 --> 00:51:11,600
Speaker 1: out was somewhere overseas, the last time I went on

1131
00:51:11,600 --> 00:51:14,239
Speaker 1: a on a trip to another country. Because that's what

1132
00:51:14,320 --> 00:51:16,120
Speaker 1: their best at and and a lot of banks are

1133
00:51:16,120 --> 00:51:18,239
Speaker 1: going to charge you two to three percent every time

1134
00:51:18,239 --> 00:51:19,560
Speaker 1: you want to pull money out of an a t

1135
00:51:19,680 --> 00:51:21,320
Speaker 1: M while you're on a trip, but I like to

1136
00:51:21,440 --> 00:51:23,920
Speaker 1: discover charges you nothing for doing it. Capital one is

1137
00:51:23,960 --> 00:51:26,759
Speaker 1: another bank, Capital one three sixty that that charges you

1138
00:51:26,840 --> 00:51:30,160
Speaker 1: nothing for when it comes to foreign transaction fees. Often

1139
00:51:30,160 --> 00:51:32,080
Speaker 1: they'll help you find an a t M via their

1140
00:51:32,080 --> 00:51:33,960
Speaker 1: app that doesn't charge any fees either, so you can

1141
00:51:34,000 --> 00:51:35,920
Speaker 1: get cash out of the a t M when you

1142
00:51:35,960 --> 00:51:39,080
Speaker 1: need it, carrying less cash on your person at all times,

1143
00:51:39,400 --> 00:51:42,640
Speaker 1: and still still you're getting that awesome exchange rate and

1144
00:51:42,640 --> 00:51:45,400
Speaker 1: you're not paying any fees to get to get the

1145
00:51:45,400 --> 00:51:48,799
Speaker 1: money that's yours exactly, And honestly, all this exchange talk

1146
00:51:48,920 --> 00:51:51,000
Speaker 1: has helped me to realize that it's been a minute

1147
00:51:51,000 --> 00:51:53,080
Speaker 1: since I've been overseas, because I can't remember the last

1148
00:51:53,120 --> 00:51:55,440
Speaker 1: time I held for currency in my hand trying to

1149
00:51:55,480 --> 00:51:57,160
Speaker 1: make a transaction. So it's been a while. It's been

1150
00:51:57,360 --> 00:51:59,240
Speaker 1: for me too, not only with the pandemic, but again,

1151
00:51:59,280 --> 00:52:00,800
Speaker 1: you know, just age of life and you've got a

1152
00:52:00,800 --> 00:52:02,080
Speaker 1: bunch of kids, you don't do a whole lot of

1153
00:52:02,080 --> 00:52:04,920
Speaker 1: travel abroad. Well, the kids are gets starting to get

1154
00:52:04,960 --> 00:52:07,160
Speaker 1: a little bit older, so hopefully that's something we can

1155
00:52:07,200 --> 00:52:09,200
Speaker 1: take care of soon. We need to do a couple's trip,

1156
00:52:09,320 --> 00:52:11,719
Speaker 1: is what we need to do. That's definitely something I

1157
00:52:11,719 --> 00:52:14,239
Speaker 1: feel like we've been missing in our lives. Yeah, well,

1158
00:52:14,400 --> 00:52:17,319
Speaker 1: I'm glad that Joe next time he goes abroad, he's

1159
00:52:17,360 --> 00:52:19,880
Speaker 1: not gonna pay even ninety bucks to get the cash

1160
00:52:19,920 --> 00:52:22,840
Speaker 1: that he needs for for that trip. And hopefully everyone

1161
00:52:22,840 --> 00:52:25,640
Speaker 1: else out there can travel fee free next time they

1162
00:52:25,680 --> 00:52:27,360
Speaker 1: go to their next destination. Yeah, you can spend that

1163
00:52:27,400 --> 00:52:32,080
Speaker 1: extra nine bucks on euros, not on euros euros, yes exactly,

1164
00:52:32,680 --> 00:52:36,000
Speaker 1: Lamb meat and whatnot. Uh, let's go ahead and shift gears.

1165
00:52:36,000 --> 00:52:37,319
Speaker 1: Get back to the beer, Joel that you and I

1166
00:52:37,440 --> 00:52:40,800
Speaker 1: enjoyed during this episode. This one is called trade Blood.

1167
00:52:41,360 --> 00:52:44,680
Speaker 1: You said trade Blood before. There's only one? Oh yeah,

1168
00:52:44,840 --> 00:52:47,000
Speaker 1: but I think I know what you're why you're saying that,

1169
00:52:47,080 --> 00:52:50,680
Speaker 1: because like the illustration for this beer, Yeah, there's a

1170
00:52:50,680 --> 00:52:53,200
Speaker 1: guy laying on the ground and he's basically drinking directly

1171
00:52:53,239 --> 00:52:56,080
Speaker 1: from a tap that's in a tree. Uh. This is

1172
00:52:56,280 --> 00:52:59,600
Speaker 1: a looks like Imperial stout brewed with maple and coffee.

1173
00:53:00,000 --> 00:53:02,719
Speaker 1: What are your thoughts on this delicious beer, my friend? Yeah,

1174
00:53:02,760 --> 00:53:04,920
Speaker 1: this one had mostly dark chocolate vibes and a lot

1175
00:53:05,000 --> 00:53:07,000
Speaker 1: of coffee coming through. The maple syrup was just like

1176
00:53:07,080 --> 00:53:09,200
Speaker 1: a touch of sweetness to round it out. Yeah, and

1177
00:53:09,239 --> 00:53:11,319
Speaker 1: it wasn't a lot of that. Some some maple syrup

1178
00:53:11,360 --> 00:53:13,879
Speaker 1: beers are just like really too sweet. This one happen

1179
00:53:13,880 --> 00:53:15,279
Speaker 1: pitch you over the top of the head with it. Yeah,

1180
00:53:15,320 --> 00:53:17,399
Speaker 1: just that little little note thrown in there. So, I mean,

1181
00:53:17,640 --> 00:53:20,600
Speaker 1: I like Mikellor beers so and this one. I felt

1182
00:53:20,640 --> 00:53:22,640
Speaker 1: like we had to drink this on today's episode because

1183
00:53:23,840 --> 00:53:27,080
Speaker 1: yea happy Halloween everybody, and we didn't we didn't say

1184
00:53:27,080 --> 00:53:28,960
Speaker 1: anything about that at the beginning of the episode. We

1185
00:53:29,000 --> 00:53:32,880
Speaker 1: missed an opportunity to connect with people emotionally. Did a

1186
00:53:32,880 --> 00:53:35,440
Speaker 1: good job teasing, but you didn't even mention everyone's favorite

1187
00:53:35,480 --> 00:53:37,000
Speaker 1: holiday of the year. I know, well, yeah, I know.

1188
00:53:37,000 --> 00:53:38,960
Speaker 1: I'm looking forward to going trigger treating to night with

1189
00:53:39,000 --> 00:53:41,239
Speaker 1: my kiddos and this beer kind of gets me in

1190
00:53:41,280 --> 00:53:44,000
Speaker 1: the mood because it looks like, yeah, vampire on the

1191
00:53:44,239 --> 00:53:46,839
Speaker 1: And so if you want to see the can art

1192
00:53:46,840 --> 00:53:49,200
Speaker 1: for this beer, you can follow us on Instagram over

1193
00:53:49,239 --> 00:53:50,879
Speaker 1: at how the Money Pod and you can see all

1194
00:53:50,920 --> 00:53:52,759
Speaker 1: the lovely beers that we get to drink on the show.

1195
00:53:52,960 --> 00:53:55,719
Speaker 1: But this one was a really good one. Yeah, super roasty,

1196
00:53:55,920 --> 00:53:59,040
Speaker 1: nice toasty, roasty. Stout notes this is the kind of

1197
00:53:59,080 --> 00:54:00,960
Speaker 1: beer that you want to drink more or of during

1198
00:54:01,040 --> 00:54:04,160
Speaker 1: some of these fall and upcoming winter months. But Joel,

1199
00:54:04,200 --> 00:54:05,799
Speaker 1: that's going to be it for this episode, buddy. We

1200
00:54:05,800 --> 00:54:07,719
Speaker 1: will link to any of the resources we may have

1201
00:54:07,760 --> 00:54:10,160
Speaker 1: mentioned during this episode up in our show notes on

1202
00:54:10,200 --> 00:54:13,040
Speaker 1: the website at how to money dot com, and that

1203
00:54:13,160 --> 00:54:15,120
Speaker 1: is also where you will find our new credit card tool.

1204
00:54:15,160 --> 00:54:16,880
Speaker 1: Just go to how to money dot com forward slash

1205
00:54:16,960 --> 00:54:20,520
Speaker 1: credit cards if you happen to be. If if you're like, oh, yeah, no,

1206
00:54:20,600 --> 00:54:23,920
Speaker 1: I am going to be traveling abroad here soon, go

1207
00:54:24,040 --> 00:54:26,319
Speaker 1: head over there, and there's a little slider and under

1208
00:54:26,520 --> 00:54:29,400
Speaker 1: foreign Transaction Fee you can filter the results so that

1209
00:54:29,440 --> 00:54:32,080
Speaker 1: you only see the best cards out there that charge

1210
00:54:32,120 --> 00:54:35,680
Speaker 1: you absolutely nothing while making purchases abroad. Yeah, this new

1211
00:54:35,760 --> 00:54:38,720
Speaker 1: tool is a game changer, helping people choose the credit

1212
00:54:38,719 --> 00:54:42,200
Speaker 1: card that's killing them so easily. Check that out. All right, Matt,

1213
00:54:42,239 --> 00:54:44,439
Speaker 1: that's gonna do it for this episode until next time.

1214
00:54:44,880 --> 00:54:46,919
Speaker 1: Best Friends Out, Best Friends Out,