1
00:00:00,120 --> 00:00:02,920
Speaker 1: Welcome to How the Money. I'm Joel and I am Matt,

2
00:00:03,040 --> 00:00:06,240
Speaker 1: and today we're discussing the seven money Gears. When to

3
00:00:06,360 --> 00:00:28,640
Speaker 1: Do What with Your Money? Joel Man, I am so

4
00:00:29,200 --> 00:00:32,159
Speaker 1: sticking excited for this episode because you and I, I mean,

5
00:00:32,159 --> 00:00:34,479
Speaker 1: we've put out over three episodes now, and we have

6
00:00:34,560 --> 00:00:38,120
Speaker 1: talked about a lot of different things as it pertains

7
00:00:38,159 --> 00:00:40,559
Speaker 1: to our personal finances we have, uh, and it can

8
00:00:40,600 --> 00:00:42,919
Speaker 1: be difficult, I think sometimes for a listener to come

9
00:00:42,960 --> 00:00:45,720
Speaker 1: in and they're they're just kind of crushed with this,

10
00:00:46,000 --> 00:00:49,160
Speaker 1: you know, wall of information that we are unloading every

11
00:00:49,159 --> 00:00:50,919
Speaker 1: single week, you know, three times a week as we're

12
00:00:50,920 --> 00:00:52,760
Speaker 1: talking about our money. And so I think what this

13
00:00:52,800 --> 00:00:54,320
Speaker 1: episode is going to be able to do is to

14
00:00:54,440 --> 00:00:58,000
Speaker 1: point listeners, in particular like newer listeners, but really anybody.

15
00:00:58,160 --> 00:01:00,600
Speaker 1: It's gonna point them in the right direct and where

16
00:01:00,640 --> 00:01:02,320
Speaker 1: to go and what they should be doing with their

17
00:01:02,360 --> 00:01:04,400
Speaker 1: money right now. It makes me think of like at

18
00:01:04,400 --> 00:01:07,160
Speaker 1: the beginning of a of a book or in its cyclopedia,

19
00:01:07,240 --> 00:01:09,640
Speaker 1: you know, like having the table of contents, but it

20
00:01:09,680 --> 00:01:11,840
Speaker 1: basically shows you that like, Okay, if this is what

21
00:01:11,880 --> 00:01:14,480
Speaker 1: you're looking for, then skip ahead the chapter three, you know.

22
00:01:14,840 --> 00:01:16,800
Speaker 1: And so we're gonna be able to provide that information

23
00:01:16,840 --> 00:01:19,640
Speaker 1: in a single episode right here for our listeners. And

24
00:01:19,640 --> 00:01:21,440
Speaker 1: it's going to, I think, make all of what we

25
00:01:21,480 --> 00:01:24,000
Speaker 1: talk about even more practical. Yeah. And I think even

26
00:01:24,000 --> 00:01:26,039
Speaker 1: for some of our listeners who have been um listening

27
00:01:26,080 --> 00:01:27,560
Speaker 1: to The Out of Money for quite a while, they

28
00:01:27,600 --> 00:01:29,839
Speaker 1: might not know that they aren't as high money gear

29
00:01:29,920 --> 00:01:32,800
Speaker 1: as they are. Yeah. And sometimes even as you progress,

30
00:01:32,800 --> 00:01:35,160
Speaker 1: you're like, you maybe get stalled out. You're not sure

31
00:01:35,280 --> 00:01:37,800
Speaker 1: what the next best move for progress with the next

32
00:01:37,800 --> 00:01:40,000
Speaker 1: best action to take with your personal finances at this

33
00:01:40,240 --> 00:01:41,880
Speaker 1: right and and so I think this is going to

34
00:01:41,959 --> 00:01:43,720
Speaker 1: help you might be like, oh, man, I'm solidly on

35
00:01:43,800 --> 00:01:46,200
Speaker 1: money Gear four. Um, it's it's nice to know the

36
00:01:46,240 --> 00:01:48,040
Speaker 1: money gear five is next, and that's probably where I

37
00:01:48,080 --> 00:01:49,640
Speaker 1: should be going, where I should be heading. So, yeah,

38
00:01:49,640 --> 00:01:51,440
Speaker 1: we've got seven money gears we want to cover today,

39
00:01:51,480 --> 00:01:53,800
Speaker 1: and we'll also explain why we're calling them money gears.

40
00:01:53,800 --> 00:01:56,880
Speaker 1: We've got I think a fantastic analogy, a great metaphor

41
00:01:57,120 --> 00:02:00,120
Speaker 1: as to why it is we're talking about gears. But

42
00:02:00,160 --> 00:02:02,360
Speaker 1: we don't want to get ahead of ourselves too much. Man.

43
00:02:02,400 --> 00:02:05,160
Speaker 1: Before we launched into the episode, I wanted to mention

44
00:02:05,240 --> 00:02:07,280
Speaker 1: Amazon Warehouse. First of all, have you heard of it?

45
00:02:07,400 --> 00:02:10,880
Speaker 1: I have? Have you part taken in the Amazon Warehouse,

46
00:02:10,919 --> 00:02:13,200
Speaker 1: I think only once, and I think it Actually the

47
00:02:13,280 --> 00:02:15,880
Speaker 1: chair that I'm sitting in right now is is literally

48
00:02:15,880 --> 00:02:17,720
Speaker 1: the only thing I've ever bought. Yeah, so I think

49
00:02:17,720 --> 00:02:20,799
Speaker 1: it was like it was like off Amazon Warehouse products, um,

50
00:02:20,880 --> 00:02:23,440
Speaker 1: and so because of that, like this chair was forty

51
00:02:23,440 --> 00:02:26,200
Speaker 1: bucks as opposed to you know, the new price of

52
00:02:26,320 --> 00:02:28,680
Speaker 1: seventy five or something like that. So yeah, I think

53
00:02:28,680 --> 00:02:30,799
Speaker 1: that's the only thing I've ever bought from from there though.

54
00:02:30,919 --> 00:02:34,280
Speaker 1: Nice man. Yeah, for folks who aren't aware, Amazon Warehouse,

55
00:02:34,280 --> 00:02:37,799
Speaker 1: it's sort of like the subsection of Amazon. And essentially,

56
00:02:37,880 --> 00:02:39,480
Speaker 1: you know, like when you order something Joel, and you're

57
00:02:39,480 --> 00:02:40,920
Speaker 1: a Prime member, so you order something and you get

58
00:02:40,960 --> 00:02:42,120
Speaker 1: it and you're like, oh, dang it, it's not what

59
00:02:42,160 --> 00:02:44,560
Speaker 1: I expected it to be, or oh it's the wrong size.

60
00:02:44,680 --> 00:02:46,560
Speaker 1: You send it back. Well, all that most of the

61
00:02:46,560 --> 00:02:48,160
Speaker 1: items that you send back I think end up in

62
00:02:48,240 --> 00:02:50,919
Speaker 1: what they call the Amazon Warehouse, and their items that

63
00:02:50,960 --> 00:02:53,160
Speaker 1: are in perfectly fine condition must be thinking of the

64
00:02:53,240 --> 00:02:57,600
Speaker 1: Island of misfit Toys. Obviously, Christmas season now passed, but

65
00:02:57,639 --> 00:02:59,760
Speaker 1: like you know, we watched that movie a couple of times,

66
00:02:59,760 --> 00:03:02,200
Speaker 1: and uh, yeah, is that that that's where my the

67
00:03:02,200 --> 00:03:04,400
Speaker 1: things I send back go to the island of misfit

68
00:03:04,480 --> 00:03:07,440
Speaker 1: Amazon Warehouse toys exactly okay, except for everything there is

69
00:03:07,440 --> 00:03:09,399
Speaker 1: in perfect shape, or maybe it's not in perfect shape,

70
00:03:09,400 --> 00:03:11,600
Speaker 1: but it's in pretty good shape. Or maybe it's missing

71
00:03:11,720 --> 00:03:13,680
Speaker 1: like a cord or something like that, or maybe just

72
00:03:13,720 --> 00:03:16,679
Speaker 1: the packaging is open. Sometimes those chords are important, yes,

73
00:03:16,720 --> 00:03:18,800
Speaker 1: and yeah, and you gotta find one of those on

74
00:03:18,880 --> 00:03:20,800
Speaker 1: the cheap. But that's something that we hadn't really taken

75
00:03:20,960 --> 00:03:24,480
Speaker 1: much advantage of until this recent holiday season. And granted,

76
00:03:24,520 --> 00:03:27,639
Speaker 1: you don't want to necessarily buy used stuff for other people,

77
00:03:27,720 --> 00:03:31,600
Speaker 1: but for our kids where the packaging doesn't matter as much. Man,

78
00:03:31,639 --> 00:03:35,280
Speaker 1: we actually bought a good amount of stuff via Amazon Warehouse. Uh.

79
00:03:35,400 --> 00:03:37,000
Speaker 1: We went ahead and took it out of the packaging

80
00:03:37,040 --> 00:03:39,320
Speaker 1: and kind of created our own packaging. Uh. They don't

81
00:03:39,360 --> 00:03:42,400
Speaker 1: care if it's perfectly brand new in box with tags. Uh.

82
00:03:42,400 --> 00:03:43,880
Speaker 1: And so I know for us, that was a way

83
00:03:43,880 --> 00:03:45,720
Speaker 1: that we were able to save money by essentially buying

84
00:03:45,880 --> 00:03:48,480
Speaker 1: quote unquote used products that weren't actually used. They just

85
00:03:48,520 --> 00:03:51,080
Speaker 1: weren't perfectly brand new. And so if you haven't checked

86
00:03:51,080 --> 00:03:54,160
Speaker 1: out Amazon Warehouse before, we would recommend for you to

87
00:03:54,160 --> 00:03:55,640
Speaker 1: to certainly check them out. It's a good way to

88
00:03:55,760 --> 00:03:59,520
Speaker 1: easily save on something that is just as good as

89
00:03:59,680 --> 00:04:02,000
Speaker 1: a a new, perfect product. There you go. Okay, maybe

90
00:04:02,040 --> 00:04:06,520
Speaker 1: I'll start browsing Amazon Warehouse a little more frequently. Uh.

91
00:04:06,560 --> 00:04:08,120
Speaker 1: You know what, this chair hasn't fallen apart on me.

92
00:04:08,160 --> 00:04:10,520
Speaker 1: I'm still I'm still sitting up right. So and it

93
00:04:10,520 --> 00:04:13,400
Speaker 1: it had everything that I needed in the box when

94
00:04:13,440 --> 00:04:15,400
Speaker 1: when I got it. So man, yeah, if it's if

95
00:04:15,440 --> 00:04:17,560
Speaker 1: it's actually missing a couple of important things, I might

96
00:04:17,600 --> 00:04:19,480
Speaker 1: have a different view on it. But they've got it.

97
00:04:19,480 --> 00:04:21,880
Speaker 1: They've got different ratings and so like as to whether

98
00:04:21,920 --> 00:04:23,640
Speaker 1: it's just like in a really good condition or like

99
00:04:23,680 --> 00:04:25,360
Speaker 1: pretty good, it's you know, it's it's kind of ranked

100
00:04:25,360 --> 00:04:27,120
Speaker 1: like the goods maybe on eBay, or it's just like

101
00:04:27,279 --> 00:04:32,479
Speaker 1: a perfect condition or like new or decent fair tons

102
00:04:32,480 --> 00:04:35,440
Speaker 1: of scratches. Yeah, exactly. Yeah, Well thanks for the tip man.

103
00:04:35,680 --> 00:04:37,599
Speaker 1: All right, let's move on. Let's mention the beer that

104
00:04:37,600 --> 00:04:40,120
Speaker 1: we're having on this episode today. We're drinking a beer

105
00:04:40,160 --> 00:04:43,240
Speaker 1: called Future Knowledge by Paradox Beer Company, and Matt and

106
00:04:43,240 --> 00:04:45,240
Speaker 1: I will give our thoughts on this beer at the

107
00:04:45,320 --> 00:04:47,320
Speaker 1: end of the episode most Deaf. But for now, let's

108
00:04:47,320 --> 00:04:49,719
Speaker 1: get on the topic at hand. Let's tackle the money gears.

109
00:04:50,160 --> 00:04:52,719
Speaker 1: When to do what with your money? What is the

110
00:04:52,720 --> 00:04:54,520
Speaker 1: next step I should take with my money? I feel

111
00:04:54,520 --> 00:04:57,799
Speaker 1: like is this often asked question, what's the next highest

112
00:04:57,800 --> 00:05:00,320
Speaker 1: priority for where I should put extra funds? That people

113
00:05:00,600 --> 00:05:04,080
Speaker 1: are always asking that question and so um. In fact, Matt,

114
00:05:04,240 --> 00:05:06,360
Speaker 1: recently my sister reached out to me, my older sister,

115
00:05:06,360 --> 00:05:09,080
Speaker 1: and she said, where should I put more money right now?

116
00:05:09,120 --> 00:05:11,960
Speaker 1: Should I put money in an emergency fund? Or should

117
00:05:12,000 --> 00:05:14,400
Speaker 1: I start investing in an IRA? And that just made

118
00:05:14,440 --> 00:05:18,039
Speaker 1: me realize that we needed to create an episode discussing

119
00:05:18,080 --> 00:05:22,080
Speaker 1: the importance of ordering financial action. Well, we want to

120
00:05:22,080 --> 00:05:25,560
Speaker 1: share today how we think about ordering money actions in

121
00:05:25,600 --> 00:05:27,960
Speaker 1: your life so that you can make a more informed

122
00:05:28,040 --> 00:05:30,280
Speaker 1: decision as to where your money should be going and

123
00:05:30,360 --> 00:05:33,479
Speaker 1: which goals you should be pursuing based on the current

124
00:05:33,520 --> 00:05:35,840
Speaker 1: money gear that you're at. Yeah, most people just don't

125
00:05:35,880 --> 00:05:38,640
Speaker 1: know where to start, where to begin, and especially since

126
00:05:38,680 --> 00:05:40,840
Speaker 1: it's the start of a new year, lots of folks

127
00:05:40,839 --> 00:05:44,080
Speaker 1: are looking for specific guidance for their next step. And

128
00:05:44,080 --> 00:05:45,560
Speaker 1: so if you've been listening, you know, to the show

129
00:05:45,600 --> 00:05:47,800
Speaker 1: for a while, and you're into personal finance, you probably

130
00:05:47,800 --> 00:05:51,599
Speaker 1: have gathered enough information to know maybe where you are

131
00:05:51,880 --> 00:05:54,760
Speaker 1: on your personal finance journey, but maybe you don't. You know,

132
00:05:54,800 --> 00:05:56,920
Speaker 1: maybe you've forgotten or maybe you've sort of lost sight

133
00:05:57,000 --> 00:05:59,280
Speaker 1: as to what you should be working towards. And especially

134
00:05:59,360 --> 00:06:01,840
Speaker 1: if you're new to SMaL finance and maybe you're newer

135
00:06:01,880 --> 00:06:04,200
Speaker 1: to thinking about your money in a strategic way, it's

136
00:06:04,200 --> 00:06:07,919
Speaker 1: incredibly helpful to have a map or a guide to

137
00:06:07,920 --> 00:06:09,880
Speaker 1: get you there. And so today we're going to discuss

138
00:06:10,000 --> 00:06:13,000
Speaker 1: what your priority should be depending on what money gear

139
00:06:13,080 --> 00:06:15,839
Speaker 1: you're currently in, in order to bring some clarity to

140
00:06:16,000 --> 00:06:18,800
Speaker 1: what the next best money moves are for you. Yeah. So,

141
00:06:18,800 --> 00:06:21,120
Speaker 1: so before we get all the way into it, let's

142
00:06:21,160 --> 00:06:23,200
Speaker 1: talk about a case for going in the right order.

143
00:06:23,400 --> 00:06:25,239
Speaker 1: When you pick up a book, you don't start reading

144
00:06:25,320 --> 00:06:27,240
Speaker 1: in the middle, right, I mean, that's just w'd be crazy.

145
00:06:27,279 --> 00:06:29,520
Speaker 1: You want to read it in logical order. And there

146
00:06:29,560 --> 00:06:32,360
Speaker 1: are lots of instances in life when if you do

147
00:06:32,400 --> 00:06:34,880
Speaker 1: things in the right order, life is just easier, it

148
00:06:34,920 --> 00:06:37,240
Speaker 1: works better. Like if you're painting your house right, you

149
00:06:37,240 --> 00:06:39,680
Speaker 1: need to pressure wash it first. Then there's some scraping

150
00:06:39,880 --> 00:06:43,080
Speaker 1: of old paint that's involved, then you prime and then

151
00:06:43,200 --> 00:06:46,680
Speaker 1: paint um. If you don't paint, prime, scrape and then wash,

152
00:06:47,120 --> 00:06:48,560
Speaker 1: that would not work out very well, right, Like your

153
00:06:48,560 --> 00:06:51,280
Speaker 1: house wouldn't look it. Or if you just did none

154
00:06:51,279 --> 00:06:54,119
Speaker 1: of the prep steps and you've just painted, the paint

155
00:06:54,160 --> 00:06:56,120
Speaker 1: is gonna start peeling pretty quickly, right, it's not gonna

156
00:06:56,160 --> 00:06:58,440
Speaker 1: last very long. And the same is true when making

157
00:06:58,480 --> 00:07:01,120
Speaker 1: financial decisions. If we them in the wrong order, that

158
00:07:01,120 --> 00:07:03,200
Speaker 1: can keep us in debt longer than we need to be.

159
00:07:03,440 --> 00:07:05,880
Speaker 1: It can cause us to put off investing for retirement

160
00:07:05,920 --> 00:07:08,039
Speaker 1: for far too long, and it can lead to higher

161
00:07:08,080 --> 00:07:11,040
Speaker 1: levels of stress of money stress in our lives too. Yeah,

162
00:07:11,080 --> 00:07:12,680
Speaker 1: And if you've been listening to the show for a while,

163
00:07:12,720 --> 00:07:15,120
Speaker 1: you know that Joel and I love to bike. We

164
00:07:15,160 --> 00:07:18,040
Speaker 1: love biking for so many different reasons, for health reasons,

165
00:07:18,200 --> 00:07:20,720
Speaker 1: saves money, it's good for the environment, it's good for

166
00:07:20,800 --> 00:07:23,320
Speaker 1: your community. I'm not gonna go through all the different reasons,

167
00:07:23,360 --> 00:07:25,160
Speaker 1: but there are a lot of them. But we're gonna

168
00:07:25,240 --> 00:07:29,400
Speaker 1: use biking as a metaphor for what we're gonna cover today. Right,

169
00:07:29,440 --> 00:07:32,680
Speaker 1: And so let's say that you're biking up hill and Uh, well,

170
00:07:32,840 --> 00:07:35,160
Speaker 1: you know you're gonna want to use a lower, easier

171
00:07:35,240 --> 00:07:37,160
Speaker 1: gear if you're biking up hill, or if you're just

172
00:07:37,320 --> 00:07:39,960
Speaker 1: getting started, right, if you try to use a higher

173
00:07:40,040 --> 00:07:42,560
Speaker 1: and a harder gear, you're gonna burn yourself out, or

174
00:07:42,600 --> 00:07:45,040
Speaker 1: you know, you may not be successful in getting up

175
00:07:45,040 --> 00:07:47,360
Speaker 1: the hill at all. You might even break the equipment,

176
00:07:47,760 --> 00:07:48,840
Speaker 1: you know, if you're trying to go up hill and

177
00:07:48,840 --> 00:07:51,040
Speaker 1: you're just really cranking down on a higher gear. If

178
00:07:51,080 --> 00:07:54,040
Speaker 1: you have a cheap bike, so you have to start

179
00:07:54,200 --> 00:07:57,200
Speaker 1: with the proper gear in order to get moving. Uh.

180
00:07:57,200 --> 00:07:59,360
Speaker 1: And the same is most definitely true when it comes

181
00:07:59,360 --> 00:08:02,160
Speaker 1: to our money. I remember when I got Emily like

182
00:08:02,360 --> 00:08:06,080
Speaker 1: a used old school bike, and um, she she loves

183
00:08:06,120 --> 00:08:08,520
Speaker 1: writing it, but she was having trouble figuring out the

184
00:08:08,520 --> 00:08:10,720
Speaker 1: gears in the beginning, and she was trying to go

185
00:08:10,800 --> 00:08:13,240
Speaker 1: up the hill in the highest gear. I was like,

186
00:08:13,400 --> 00:08:15,360
Speaker 1: maybe you gotta you gotta crank down to like gear

187
00:08:15,440 --> 00:08:17,240
Speaker 1: number one, like it's gonna be so much easier, and

188
00:08:17,280 --> 00:08:19,200
Speaker 1: she was like, oh, yeah, that is way easier. But

189
00:08:19,480 --> 00:08:24,240
Speaker 1: it's true, like standing up mashed. I mean, you're gonna

190
00:08:24,240 --> 00:08:26,440
Speaker 1: get the best workout that way, I guess, but still,

191
00:08:26,720 --> 00:08:29,000
Speaker 1: uh yeah, and to extend that metaphor, right for something,

192
00:08:29,000 --> 00:08:31,160
Speaker 1: it's gonna be tougher and you're gonna be in a

193
00:08:31,160 --> 00:08:33,200
Speaker 1: lower gear for a little bit longer. Maybe you don't

194
00:08:33,200 --> 00:08:35,160
Speaker 1: have a large income, or maybe a lot of your

195
00:08:35,160 --> 00:08:37,600
Speaker 1: money is currently going towards paying down debt that you've

196
00:08:37,600 --> 00:08:40,120
Speaker 1: accrued over the years. That's okay. It all takes us

197
00:08:40,160 --> 00:08:43,040
Speaker 1: different amounts of time to shift gears and to move

198
00:08:43,160 --> 00:08:46,400
Speaker 1: to another money gear, right, So don't beat yourself up

199
00:08:46,440 --> 00:08:48,840
Speaker 1: if it's taking longer than you hoped. For others, it's

200
00:08:48,880 --> 00:08:50,600
Speaker 1: gonna be even easier. Right. It feels more like you're

201
00:08:50,600 --> 00:08:53,520
Speaker 1: biking downhill, especially if you've been into personal finance for

202
00:08:53,559 --> 00:08:55,560
Speaker 1: a while. If you've been investing for let's say a

203
00:08:55,640 --> 00:09:00,000
Speaker 1: decade or longer, you're likely pedaling in a higher gear already.

204
00:09:00,200 --> 00:09:02,199
Speaker 1: That's why we're talking about this order of money decisions.

205
00:09:02,200 --> 00:09:05,400
Speaker 1: There's there's just an order of action, uh, that that's

206
00:09:05,440 --> 00:09:09,360
Speaker 1: optimal in your continued pursuit of financial independence. Yeah, and

207
00:09:09,360 --> 00:09:11,240
Speaker 1: this is regardless of how much money you make or

208
00:09:11,240 --> 00:09:13,520
Speaker 1: how much money you owe, right, Like, this is why

209
00:09:13,559 --> 00:09:15,520
Speaker 1: this is so important. It is because these steps like

210
00:09:15,559 --> 00:09:18,160
Speaker 1: these are the optimal steps for everybody, regardless of how

211
00:09:18,240 --> 00:09:20,160
Speaker 1: much money you have or how little money you have,

212
00:09:20,520 --> 00:09:22,520
Speaker 1: it makes sense to to go in this order, to

213
00:09:22,559 --> 00:09:26,200
Speaker 1: start with the the easier lower money gears first. Uh.

214
00:09:26,240 --> 00:09:28,280
Speaker 1: And then you know, once you're cruising along with your money,

215
00:09:28,559 --> 00:09:32,640
Speaker 1: you know, there's that added security and freedom. Uh. And dude, ultimately,

216
00:09:32,720 --> 00:09:35,040
Speaker 1: that's the major reason why we want listeners to know

217
00:09:35,080 --> 00:09:37,600
Speaker 1: about these different money gears, which one they're currently on,

218
00:09:37,679 --> 00:09:39,440
Speaker 1: and you know which one is next. Then that some

219
00:09:39,480 --> 00:09:41,520
Speaker 1: bolts of paying down debt and you know, not paying

220
00:09:41,559 --> 00:09:43,439
Speaker 1: a bank or a credit card company, or or student

221
00:09:43,480 --> 00:09:46,440
Speaker 1: loan service or interest when you could instead be investing

222
00:09:46,559 --> 00:09:49,000
Speaker 1: in seeing your money grow. That is a major motivator.

223
00:09:49,200 --> 00:09:51,920
Speaker 1: But the new reality that you'll be living in of

224
00:09:52,040 --> 00:09:55,480
Speaker 1: greater freedom over your future is priceless. And so with

225
00:09:55,520 --> 00:09:57,560
Speaker 1: every gear that you graduate from, with every one of

226
00:09:57,559 --> 00:10:00,320
Speaker 1: those gear shifts, there's a greater sense of of a

227
00:10:00,360 --> 00:10:03,840
Speaker 1: weight being lifted off your shoulders and more excitement for

228
00:10:03,880 --> 00:10:06,760
Speaker 1: your future possibilities. That's what we're all about. That's why

229
00:10:06,800 --> 00:10:08,920
Speaker 1: we have the show, and we're hoping that this episode

230
00:10:08,920 --> 00:10:11,120
Speaker 1: is going to get you closer to that reality. Yeah, alright,

231
00:10:11,120 --> 00:10:13,640
Speaker 1: so we're gonna identify all seven mony gears provide some

232
00:10:13,679 --> 00:10:16,000
Speaker 1: context to to help you know where you're at and

233
00:10:16,040 --> 00:10:17,640
Speaker 1: how you can move forward. We'll get to all that

234
00:10:17,760 --> 00:10:29,440
Speaker 1: right after this break. All right, we're back for the break.

235
00:10:29,480 --> 00:10:31,400
Speaker 1: We've made a case for why it is so important

236
00:10:31,440 --> 00:10:33,680
Speaker 1: to go in order why it makes sense to maybe

237
00:10:33,679 --> 00:10:36,040
Speaker 1: think about these as gears on a bike. Let's go ahead,

238
00:10:36,080 --> 00:10:38,360
Speaker 1: now launch into the first gear. Man. The first one

239
00:10:38,520 --> 00:10:41,439
Speaker 1: is a basic emergency fund. That's gear number one. To

240
00:10:41,760 --> 00:10:45,679
Speaker 1: fully reach this level means having two thousand, four and

241
00:10:45,720 --> 00:10:49,439
Speaker 1: sixty seven dollars set aside and you're savings account for

242
00:10:49,480 --> 00:10:52,320
Speaker 1: any sort of emergency that could arise. I love how

243
00:10:52,400 --> 00:10:55,040
Speaker 1: specific you get there, Matthew. Well, the reason for that

244
00:10:55,080 --> 00:10:57,840
Speaker 1: is economists have identified that that is the number that

245
00:10:58,000 --> 00:11:01,040
Speaker 1: for the vast majority of Americans will allow them to

246
00:11:01,080 --> 00:11:04,040
Speaker 1: overcome you need, small hurdle in their life. Their studies

247
00:11:04,040 --> 00:11:06,120
Speaker 1: to back it up. But you know what, if is

248
00:11:06,160 --> 00:11:07,720
Speaker 1: easier for free to remember than you can do that.

249
00:11:07,760 --> 00:11:09,640
Speaker 1: But I personally like two four or six seven, dude,

250
00:11:09,640 --> 00:11:12,640
Speaker 1: I think it actually helps me remember it number. I'm like, well,

251
00:11:12,720 --> 00:11:14,679
Speaker 1: that number, oh yeah, two thousand, four hundred and sixty

252
00:11:14,679 --> 00:11:17,680
Speaker 1: seven dollars. If you can say that amount, you're you're golden.

253
00:11:17,720 --> 00:11:20,000
Speaker 1: You you've achieved money gear number one. Yeah. Well, and

254
00:11:20,040 --> 00:11:22,720
Speaker 1: the reason that having a basic emergency fund is so

255
00:11:22,760 --> 00:11:26,880
Speaker 1: important is that Americans can't handle an emergency in their

256
00:11:26,880 --> 00:11:29,880
Speaker 1: life that costs just four hundred dollars and so, man,

257
00:11:29,960 --> 00:11:32,440
Speaker 1: that is such a precarious place to to live. You know,

258
00:11:32,480 --> 00:11:35,959
Speaker 1: you're basically living on the financial edge, and that has

259
00:11:36,000 --> 00:11:38,280
Speaker 1: all sorts of other consequences in your life as well.

260
00:11:38,559 --> 00:11:40,520
Speaker 1: Think about the additional stress that's going to a company

261
00:11:40,559 --> 00:11:42,840
Speaker 1: that basically, well, when everyone listening to make sure that

262
00:11:42,880 --> 00:11:45,800
Speaker 1: they have enough margin, enough breathing room in their lives. Uh,

263
00:11:45,880 --> 00:11:47,959
Speaker 1: we don't want them stressing over every single bill that

264
00:11:48,000 --> 00:11:49,880
Speaker 1: they have to pay, you know, with with every bill pay,

265
00:11:50,120 --> 00:11:51,840
Speaker 1: if you're worried about every single payment that you make

266
00:11:51,880 --> 00:11:54,360
Speaker 1: and whether or not you have enough, Uh, that's not

267
00:11:54,480 --> 00:11:56,520
Speaker 1: the kind of place that we want you in. Yeah,

268
00:11:56,559 --> 00:11:58,679
Speaker 1: So let's talk about emergency funds here for a second.

269
00:11:58,679 --> 00:12:01,760
Speaker 1: Match is really helpful to know what's an emergency and

270
00:12:01,800 --> 00:12:04,640
Speaker 1: what's not. And so, yeah, that two thousand, four hundred

271
00:12:04,679 --> 00:12:06,560
Speaker 1: and sixty seven dollars we want you to save, we

272
00:12:06,600 --> 00:12:10,760
Speaker 1: wanted to specifically be for emergency purposes, and an emergency

273
00:12:11,000 --> 00:12:13,640
Speaker 1: is not something like I need new tires on my car.

274
00:12:13,920 --> 00:12:15,959
Speaker 1: That's something that that you should be planning ahead for

275
00:12:16,120 --> 00:12:17,960
Speaker 1: and budgeting for. It's and known expenses going to come

276
00:12:18,040 --> 00:12:19,640
Speaker 1: up at some point in the near future. Right, Yeah,

277
00:12:19,640 --> 00:12:22,160
Speaker 1: maybe it's higher blowout now, that's that's an emergency, But

278
00:12:22,360 --> 00:12:26,319
Speaker 1: just needing new tires, that's yea less of an emergency exactly. So, yeah,

279
00:12:26,360 --> 00:12:29,120
Speaker 1: the fund is specifically for bigger money messes that pop

280
00:12:29,200 --> 00:12:31,719
Speaker 1: up like a transmission failure. You can't really plan for

281
00:12:31,760 --> 00:12:35,080
Speaker 1: that in h VACT, biting the dust, or job loss.

282
00:12:35,200 --> 00:12:37,400
Speaker 1: Right that those are the kind of things that this

283
00:12:37,880 --> 00:12:39,640
Speaker 1: money that you've got set aside is going to be

284
00:12:39,679 --> 00:12:42,720
Speaker 1: able to help you push through. So in order to

285
00:12:42,720 --> 00:12:45,160
Speaker 1: achieve this level, it's gonna involve tracking your spending and

286
00:12:45,200 --> 00:12:47,600
Speaker 1: cutting back in some areas too. If you need some

287
00:12:47,640 --> 00:12:50,360
Speaker 1: ideas for the best places to start trimming, check out

288
00:12:50,360 --> 00:12:54,200
Speaker 1: episode too sixty, where we specifically offered up seven things

289
00:12:54,280 --> 00:12:56,320
Speaker 1: that you can do this week to get started saving

290
00:12:56,320 --> 00:12:59,000
Speaker 1: more money. Then put that money in a special bucket

291
00:12:59,200 --> 00:13:01,439
Speaker 1: or even maybe in an another bank account so you

292
00:13:01,480 --> 00:13:04,560
Speaker 1: don't touch it unless that emergency comes along. And Matt,

293
00:13:04,559 --> 00:13:06,679
Speaker 1: like you said, hitting this money level provide so much

294
00:13:06,800 --> 00:13:10,400
Speaker 1: breathing room and just distresses everything in your financial life. Yeah,

295
00:13:10,400 --> 00:13:11,840
Speaker 1: that's right, And so that's the first gear that you're

296
00:13:11,880 --> 00:13:14,080
Speaker 1: gonna be pedaling. And once you've been able to accomplish that,

297
00:13:14,120 --> 00:13:16,760
Speaker 1: you're gonna want to shift to second gear, and that

298
00:13:16,920 --> 00:13:19,920
Speaker 1: is snagging a company match if you have one. And

299
00:13:19,920 --> 00:13:21,880
Speaker 1: so this is important because it gets you first of all,

300
00:13:21,920 --> 00:13:24,320
Speaker 1: it gets you started with investing, right, and then on

301
00:13:24,360 --> 00:13:26,600
Speaker 1: top of that, often you will receive an instant fift

302
00:13:27,120 --> 00:13:29,840
Speaker 1: return on your money. Dude. Some employers are so generous

303
00:13:29,840 --> 00:13:33,199
Speaker 1: that you'll snag a return because they match dollar for dollar.

304
00:13:33,440 --> 00:13:35,920
Speaker 1: It's pretty much impossible to get a better return on

305
00:13:35,960 --> 00:13:38,720
Speaker 1: your money. And so that's why this is such a

306
00:13:38,800 --> 00:13:41,680
Speaker 1: high financial priority, other than giving yourself just a little

307
00:13:41,679 --> 00:13:44,040
Speaker 1: bit of that financial breathing room. Uh. And you know again,

308
00:13:44,080 --> 00:13:45,880
Speaker 1: it helps you to get the ball rolling when it

309
00:13:45,920 --> 00:13:48,880
Speaker 1: comes to investing, which is of critical importance for your

310
00:13:48,880 --> 00:13:51,880
Speaker 1: future as well. Yeah for sure. Yeah, yeah, starting investing,

311
00:13:51,960 --> 00:13:55,520
Speaker 1: becoming an investor. Um, it's like a psychological play at

312
00:13:55,520 --> 00:13:58,600
Speaker 1: the same time as a financial one. Right when you

313
00:13:58,760 --> 00:14:01,480
Speaker 1: start investing, you you start to think differently about money

314
00:14:01,480 --> 00:14:03,559
Speaker 1: and about where you're going that's right. On Monday, Charles

315
00:14:03,640 --> 00:14:05,680
Speaker 1: do Hig was talking about when we shift how we

316
00:14:05,760 --> 00:14:08,880
Speaker 1: perceive ourselves, when our identity has changed, it has huge

317
00:14:08,880 --> 00:14:11,280
Speaker 1: effects on how we actually behave. Yeah. Yeah, we're going

318
00:14:11,320 --> 00:14:14,080
Speaker 1: to continue to make better decisions because we started making

319
00:14:14,160 --> 00:14:17,000
Speaker 1: better decisions, um, just a little while ago. Right, So,

320
00:14:17,120 --> 00:14:20,000
Speaker 1: hopefully your company has automatically enrolled you up to the

321
00:14:20,000 --> 00:14:22,960
Speaker 1: match level. More and more employers are doing that automatic enrollment.

322
00:14:23,160 --> 00:14:25,280
Speaker 1: But if your company has not done that for you,

323
00:14:25,280 --> 00:14:27,880
Speaker 1: you're gonna need to log in and start contributing if

324
00:14:27,920 --> 00:14:30,240
Speaker 1: you haven't done so yet, and if you can't contribute

325
00:14:30,320 --> 00:14:32,120
Speaker 1: enough to get the full match right away, set a

326
00:14:32,160 --> 00:14:34,360
Speaker 1: goal for when you're gonna be able to do that. Like,

327
00:14:34,440 --> 00:14:36,720
Speaker 1: let's say your goal is to invest two percent more

328
00:14:36,960 --> 00:14:38,640
Speaker 1: every time you get a raise so that you're able

329
00:14:38,640 --> 00:14:40,520
Speaker 1: to hit this level, let's say in the next eighteen

330
00:14:40,560 --> 00:14:43,400
Speaker 1: to thirty six months. That's a reasonable goal that will

331
00:14:43,440 --> 00:14:46,040
Speaker 1: help prevent you for being stuck in gear number two

332
00:14:46,160 --> 00:14:48,680
Speaker 1: for too long. Yeah, that's right, Joel in. One caveat

333
00:14:48,680 --> 00:14:51,040
Speaker 1: to take into consideration, and that's to know how long

334
00:14:51,080 --> 00:14:54,800
Speaker 1: it's gonna take for that match to vest. A lot

335
00:14:54,800 --> 00:14:56,720
Speaker 1: of the companies will have a vesting period where you

336
00:14:56,720 --> 00:14:58,680
Speaker 1: need to make sure that that you're sticking around for

337
00:14:58,760 --> 00:15:01,280
Speaker 1: maybe I don't know, a year, three years, even if

338
00:15:01,320 --> 00:15:03,280
Speaker 1: it takes a while and you don't plan on being

339
00:15:03,320 --> 00:15:06,200
Speaker 1: with this employer, you know, all that long, it doesn't

340
00:15:06,240 --> 00:15:08,000
Speaker 1: make sense for you to make this a high priority

341
00:15:08,000 --> 00:15:10,160
Speaker 1: because you're gonna end up losing that match. But for

342
00:15:10,200 --> 00:15:12,760
Speaker 1: most people, this second gear of getting that company match

343
00:15:13,040 --> 00:15:14,560
Speaker 1: is the next thing you want to aim for. And

344
00:15:14,560 --> 00:15:16,280
Speaker 1: if you don't get a company match, you know, sorry

345
00:15:16,320 --> 00:15:18,000
Speaker 1: to hear that, but we would recommend for you to

346
00:15:18,120 --> 00:15:21,680
Speaker 1: just keep peddling, yeah, and then shift into gear number

347
00:15:21,680 --> 00:15:25,080
Speaker 1: three right. Gear number three is paying off high interest

348
00:15:25,200 --> 00:15:28,160
Speaker 1: rate debt. Uh Like credit cards are probably the most

349
00:15:28,240 --> 00:15:32,040
Speaker 1: likely culprit for most of our listeners here, personal loans

350
00:15:32,160 --> 00:15:35,200
Speaker 1: or high interest car loans are also a major priority

351
00:15:35,280 --> 00:15:38,280
Speaker 1: when you're in gear number three. Considering that the average

352
00:15:38,400 --> 00:15:42,200
Speaker 1: credit card interest rate MAT is fiftent, some goes high

353
00:15:42,400 --> 00:15:45,480
Speaker 1: as the low to mid twenties, UM, ditching your credit

354
00:15:45,480 --> 00:15:47,240
Speaker 1: card debt as soon as possible should be a top

355
00:15:47,280 --> 00:15:50,560
Speaker 1: priority when you're done peddling through the first two gears. So, yeah,

356
00:15:50,600 --> 00:15:52,360
Speaker 1: I think if we were to break it down into

357
00:15:52,480 --> 00:15:55,520
Speaker 1: kind of what is high interest rate debt. Something in

358
00:15:55,520 --> 00:15:57,520
Speaker 1: the range of seven percent or higher is going to

359
00:15:57,600 --> 00:15:59,840
Speaker 1: be debt you're gonna want to prioritize when you're in

360
00:16:00,040 --> 00:16:02,240
Speaker 1: the gear number three. Yeah, anything lower than that you

361
00:16:02,240 --> 00:16:04,200
Speaker 1: don't need to address just yet. Will actually get to

362
00:16:04,240 --> 00:16:06,360
Speaker 1: that later in the episode. But let's talk about how

363
00:16:06,360 --> 00:16:07,880
Speaker 1: to go about doing this. You know, it's important to

364
00:16:07,920 --> 00:16:10,800
Speaker 1: have a sound strategy when you're working to pay off

365
00:16:10,800 --> 00:16:12,640
Speaker 1: your credit card debt so that you aren't you know,

366
00:16:12,680 --> 00:16:15,520
Speaker 1: just aimless, which will cause you to stay in debt

367
00:16:15,520 --> 00:16:18,640
Speaker 1: even longer while paying more in interest. And so part

368
00:16:18,680 --> 00:16:20,640
Speaker 1: of that is to stop using your credit cards for

369
00:16:20,640 --> 00:16:22,840
Speaker 1: the time being. Uh, Joel, you know, you and I

370
00:16:22,880 --> 00:16:25,440
Speaker 1: we love credit cards for routine spending and for you know,

371
00:16:25,520 --> 00:16:28,040
Speaker 1: large purchases as well, But you know, not if you're

372
00:16:28,040 --> 00:16:29,920
Speaker 1: in third gear trying to pay off the debt that

373
00:16:29,960 --> 00:16:32,280
Speaker 1: you've racked up, if you have a spending problem, and so,

374
00:16:32,440 --> 00:16:35,720
Speaker 1: you know, recognizing these poor spending habits and then creating

375
00:16:35,720 --> 00:16:39,000
Speaker 1: a system that will help you avoid those habits is crucial.

376
00:16:39,120 --> 00:16:41,440
Speaker 1: And if you didn't listen to Monday's episode, that's all

377
00:16:41,480 --> 00:16:43,840
Speaker 1: about habits and that will help you. I think curb

378
00:16:43,920 --> 00:16:46,240
Speaker 1: some of those spending habits and realize that you have

379
00:16:46,360 --> 00:16:48,840
Speaker 1: more power than you think to to control and curb

380
00:16:48,960 --> 00:16:51,600
Speaker 1: some of those poor habits that you've maybe gotten used to.

381
00:16:52,080 --> 00:16:54,680
Speaker 1: And then to create a debt payoff plan, write all

382
00:16:54,760 --> 00:16:56,600
Speaker 1: your debts down on a piece of paper or in

383
00:16:56,680 --> 00:17:00,280
Speaker 1: Google sheets or excel. Facing the facts is necessary, like

384
00:17:00,280 --> 00:17:02,840
Speaker 1: staring all these numbers in the face at one time,

385
00:17:03,080 --> 00:17:05,240
Speaker 1: and then decide whether you're gonna take the avalanche or

386
00:17:05,240 --> 00:17:08,399
Speaker 1: the snowball approach. Those are two different methods of paying

387
00:17:08,400 --> 00:17:11,440
Speaker 1: down debt and get going. If you encounter a setback,

388
00:17:11,480 --> 00:17:13,600
Speaker 1: don't let that get you down. I know sometimes that

389
00:17:13,680 --> 00:17:16,639
Speaker 1: can throw a wrench in the gear of Gear number

390
00:17:16,680 --> 00:17:19,840
Speaker 1: three is if something unexpected comes up that you have

391
00:17:19,920 --> 00:17:21,600
Speaker 1: to pay for. But that's what gear number one was for.

392
00:17:21,680 --> 00:17:24,479
Speaker 1: You've already got your your emergency fund, so use that

393
00:17:24,640 --> 00:17:27,159
Speaker 1: debt pay off plan to give you a firm timetable

394
00:17:27,440 --> 00:17:30,120
Speaker 1: of how long it's gonna take you to actually get

395
00:17:30,200 --> 00:17:33,120
Speaker 1: rid of that debt altogether. And this is a crucial gear.

396
00:17:33,480 --> 00:17:35,240
Speaker 1: I know it can be the hardest mentally for a

397
00:17:35,280 --> 00:17:37,639
Speaker 1: lot of people to push through gear number three to

398
00:17:37,680 --> 00:17:39,800
Speaker 1: get to the gears beyond that and that's why that

399
00:17:39,880 --> 00:17:42,320
Speaker 1: plan is going to be so effective in helping you

400
00:17:42,520 --> 00:17:44,840
Speaker 1: actually continue to push through and make it happen. Yeah,

401
00:17:44,880 --> 00:17:46,560
Speaker 1: and so Joel, those are our first three gears that

402
00:17:46,600 --> 00:17:50,440
Speaker 1: we just pedaled through. Uh. And something that we wanted

403
00:17:50,480 --> 00:17:53,280
Speaker 1: to note about these first three gears is that they're

404
00:17:53,320 --> 00:17:56,159
Speaker 1: pretty non negotiable. You know, like when we take listener questions,

405
00:17:56,160 --> 00:17:58,159
Speaker 1: when we talk about a lot of different topics on

406
00:17:58,200 --> 00:18:00,160
Speaker 1: the show. There's a lot of nuance that goes into

407
00:18:00,240 --> 00:18:02,240
Speaker 1: that how we talk about things, and there's a lot

408
00:18:02,280 --> 00:18:04,320
Speaker 1: of personal goals that come into play as well. But

409
00:18:04,359 --> 00:18:05,639
Speaker 1: the way we see it, there's not a lot of

410
00:18:05,640 --> 00:18:09,000
Speaker 1: wiggle room between gears one and three. These are things

411
00:18:09,000 --> 00:18:10,959
Speaker 1: that you need to make sure that you prioritize. These

412
00:18:11,000 --> 00:18:13,080
Speaker 1: are things that you need to get to first before

413
00:18:13,720 --> 00:18:17,280
Speaker 1: upgrading your car, before pursuing maybe a nicer vacation or

414
00:18:17,440 --> 00:18:19,280
Speaker 1: or some of these other grainder goals you might have,

415
00:18:19,320 --> 00:18:22,119
Speaker 1: even maybe purchasing a house that needs to be pushed

416
00:18:22,119 --> 00:18:23,720
Speaker 1: off down the road until you've got these first three

417
00:18:23,720 --> 00:18:25,880
Speaker 1: money gears that worked through. Yes. Yeah, And it feels

418
00:18:25,920 --> 00:18:28,359
Speaker 1: weird for us to say that because, you know, again,

419
00:18:28,400 --> 00:18:30,080
Speaker 1: like the way we talk about things so much of

420
00:18:30,119 --> 00:18:32,520
Speaker 1: it comes down to the individual and the different things

421
00:18:32,520 --> 00:18:34,639
Speaker 1: that they are personally working through. But man, with these

422
00:18:34,680 --> 00:18:37,080
Speaker 1: first three gears, we are pretty firm in our approach

423
00:18:37,359 --> 00:18:39,280
Speaker 1: to making sure that you go through these one after

424
00:18:39,320 --> 00:18:42,639
Speaker 1: the other before you consider anything else. However, with gears

425
00:18:42,640 --> 00:18:44,960
Speaker 1: four through seven, there is a little bit more flexibility

426
00:18:45,080 --> 00:18:46,919
Speaker 1: depending on your personal goals, and so we'll get to

427
00:18:46,960 --> 00:18:58,880
Speaker 1: those right after this break alart. We're back from the break.

428
00:18:58,920 --> 00:19:01,639
Speaker 1: We're talking about money years and when you should do

429
00:19:01,680 --> 00:19:04,000
Speaker 1: what with your money, kind of giving you an order

430
00:19:04,000 --> 00:19:06,480
Speaker 1: of operations for when you should make different money moves

431
00:19:06,480 --> 00:19:08,440
Speaker 1: in your life. And I hope you're not too winded

432
00:19:08,680 --> 00:19:11,760
Speaker 1: after going peddling through gears one through three, because we

433
00:19:11,840 --> 00:19:14,040
Speaker 1: have a few more gears to get to. Matt, let's

434
00:19:14,040 --> 00:19:16,080
Speaker 1: get to give number four. The next gear that you

435
00:19:16,119 --> 00:19:19,320
Speaker 1: need to shift into is fully funding your emergency fund

436
00:19:19,359 --> 00:19:22,560
Speaker 1: with three to six months of monthly expenses in savings.

437
00:19:23,040 --> 00:19:25,359
Speaker 1: And I think, Matt, a lot of our listeners actually

438
00:19:25,440 --> 00:19:29,560
Speaker 1: might be like, why are you prioritizing savings here above investing? Uh,

439
00:19:29,680 --> 00:19:31,800
Speaker 1: that that could be a bit controversial, And you and

440
00:19:31,840 --> 00:19:33,840
Speaker 1: I we realize that there can be a degree of

441
00:19:33,920 --> 00:19:36,040
Speaker 1: fomo like a fear of missing out right as you

442
00:19:36,080 --> 00:19:38,240
Speaker 1: see the market's climb and you're like, but I'm just

443
00:19:38,280 --> 00:19:40,960
Speaker 1: putting money in my pitally savings account that's earning half

444
00:19:40,960 --> 00:19:43,320
Speaker 1: a percent right now, but it's still actually makes the

445
00:19:43,359 --> 00:19:45,840
Speaker 1: most sense for you to have a solid savings back

446
00:19:45,920 --> 00:19:49,280
Speaker 1: up before you start to massively ramp up those investing efforts.

447
00:19:49,560 --> 00:19:51,800
Speaker 1: Access to cash. As we found out recently, even as

448
00:19:51,840 --> 00:19:54,200
Speaker 1: the markets have been climbing in the time of COVID,

449
00:19:54,520 --> 00:19:56,159
Speaker 1: it has meant so much to so many people. It

450
00:19:56,200 --> 00:19:58,560
Speaker 1: has given them freedom and flexibility. We've heard this from

451
00:19:58,560 --> 00:20:00,879
Speaker 1: our listeners who say that the savings I've had in

452
00:20:00,960 --> 00:20:04,000
Speaker 1: hand when I got laid off gave me just massive

453
00:20:04,040 --> 00:20:07,399
Speaker 1: amounts of freedom to wait for the right job opportunity

454
00:20:07,520 --> 00:20:09,719
Speaker 1: to come along. Yeah, we heard story after story of

455
00:20:09,760 --> 00:20:12,360
Speaker 1: that in our Money Wins episode, as we heard from listeners,

456
00:20:12,440 --> 00:20:14,879
Speaker 1: and that's the exact situation that they found themselves in.

457
00:20:14,960 --> 00:20:17,480
Speaker 1: You know, like having a big emergency fund, it's not

458
00:20:17,520 --> 00:20:19,800
Speaker 1: about growing your money, it's about preserving it and having

459
00:20:19,800 --> 00:20:22,520
Speaker 1: it accessible. That's right. So gear number four is to

460
00:20:22,720 --> 00:20:25,239
Speaker 1: continue to build up that savings past that two four

461
00:20:25,320 --> 00:20:27,840
Speaker 1: hundred and sixties seven dollar mark and into something even

462
00:20:27,960 --> 00:20:31,920
Speaker 1: more substantial that. Uh, that provides you a legitimate pad

463
00:20:32,480 --> 00:20:35,439
Speaker 1: against more severe difficulties that you might encounter. Yeah, and

464
00:20:35,440 --> 00:20:37,600
Speaker 1: obviously that is up to you. Whether you're gonna air

465
00:20:37,640 --> 00:20:39,600
Speaker 1: on more than three months side or the six months side.

466
00:20:39,600 --> 00:20:41,439
Speaker 1: It depends on a lot of factors. Things you might

467
00:20:41,480 --> 00:20:43,040
Speaker 1: want to take no account or you know, how many

468
00:20:43,040 --> 00:20:45,360
Speaker 1: different streams of income you might have, or or maybe

469
00:20:45,400 --> 00:20:47,359
Speaker 1: how many other people are dependent on you, you know,

470
00:20:47,400 --> 00:20:49,240
Speaker 1: like how big is your family. These are all things

471
00:20:49,280 --> 00:20:51,840
Speaker 1: that you want to consider as you are kind of

472
00:20:51,880 --> 00:20:53,480
Speaker 1: weighing whether or not you want to maybe stick with

473
00:20:53,520 --> 00:20:56,080
Speaker 1: that leaner three months or six months or even larger

474
00:20:56,080 --> 00:21:00,199
Speaker 1: than that for some individuals to feel secure with their savings. Right.

475
00:21:00,240 --> 00:21:02,000
Speaker 1: So that's gear four. Let's shift it now it's a

476
00:21:02,080 --> 00:21:05,240
Speaker 1: fifth gear. Uh, And that is maybe the moment a

477
00:21:05,280 --> 00:21:08,119
Speaker 1: lot of people have been waiting for investing more money

478
00:21:08,240 --> 00:21:13,199
Speaker 1: in tax sheltered retirement accounts and preferably or more. You know,

479
00:21:13,240 --> 00:21:15,480
Speaker 1: a lot of money experts will often give ten percent

480
00:21:15,560 --> 00:21:18,280
Speaker 1: as the number to strive for, but we think is

481
00:21:18,320 --> 00:21:20,720
Speaker 1: a much better goal to have if not more. And

482
00:21:20,800 --> 00:21:23,639
Speaker 1: then which tax sheltered accounts are we talking about? Uh,

483
00:21:23,680 --> 00:21:25,760
Speaker 1: we're talking about h S A S, I RA S

484
00:21:25,840 --> 00:21:28,080
Speaker 1: and four O n K S in particular. Uh, and

485
00:21:28,119 --> 00:21:30,240
Speaker 1: even specifically kind of in that order if you have

486
00:21:30,280 --> 00:21:33,159
Speaker 1: access to H S A S as well if you're

487
00:21:33,200 --> 00:21:36,280
Speaker 1: in the military. We're talking about pumping money into your TSP,

488
00:21:36,600 --> 00:21:39,480
Speaker 1: your thrift savings plan. But funnily, more money into these

489
00:21:39,480 --> 00:21:42,480
Speaker 1: accounts over the years as you master uh, your fifth

490
00:21:42,520 --> 00:21:45,720
Speaker 1: gear will pay huge dividends in your pursuit of some

491
00:21:45,800 --> 00:21:49,080
Speaker 1: financial freedom in your life. Yeah. Yeah, and it's important

492
00:21:49,160 --> 00:21:52,200
Speaker 1: to be actually investing inside of these accounts. By the way,

493
00:21:52,680 --> 00:21:54,880
Speaker 1: most of our listeners they know this, but it bears

494
00:21:54,920 --> 00:21:57,960
Speaker 1: repeating that because actually just a stat recently, the CFP

495
00:21:58,119 --> 00:22:01,320
Speaker 1: Board said that of them Arikans have some of their

496
00:22:01,359 --> 00:22:04,400
Speaker 1: retirement money in a straight up savings account. That's not good.

497
00:22:04,600 --> 00:22:08,000
Speaker 1: Not good. What means you're earning a negative rate of return, right, Yeah,

498
00:22:08,000 --> 00:22:10,040
Speaker 1: that your E fund. It's a great place for that

499
00:22:10,080 --> 00:22:12,639
Speaker 1: to be, uh, your retirement money. No, No, that's not

500
00:22:12,680 --> 00:22:14,240
Speaker 1: a good place for it to be. So, you know,

501
00:22:14,240 --> 00:22:16,680
Speaker 1: Matt and I were fans of broad market index funds

502
00:22:16,680 --> 00:22:18,960
Speaker 1: and target date retirement funds, So make sure to pay

503
00:22:18,960 --> 00:22:21,920
Speaker 1: special attention make sure that your retirement money isn't put

504
00:22:21,960 --> 00:22:23,720
Speaker 1: into the right vehicle and then left to sit in

505
00:22:23,760 --> 00:22:26,720
Speaker 1: a money market account earning almost no return at all.

506
00:22:26,920 --> 00:22:29,280
Speaker 1: You want it invested in a way that it's actually

507
00:22:29,320 --> 00:22:31,960
Speaker 1: gonna grow for your future, in a meaningful way. Yeah,

508
00:22:31,920 --> 00:22:34,160
Speaker 1: and so that's gear number five. You know it's worth

509
00:22:34,200 --> 00:22:36,600
Speaker 1: highlighting here too that this is the first time that maybe,

510
00:22:36,800 --> 00:22:39,520
Speaker 1: uh some individuals out there are going to actually be

511
00:22:39,600 --> 00:22:42,080
Speaker 1: investing their money. Obviously, if you have a company match,

512
00:22:42,080 --> 00:22:44,080
Speaker 1: you're gonna get that ball rolling back in second gear.

513
00:22:44,320 --> 00:22:46,080
Speaker 1: But if you don't, if you're someone like me who

514
00:22:46,080 --> 00:22:48,280
Speaker 1: has never had a company match, that means you truly

515
00:22:48,359 --> 00:22:50,960
Speaker 1: won't be investing in your money until you've worked through

516
00:22:50,960 --> 00:22:53,800
Speaker 1: those first four gears, until you have that solid financial

517
00:22:53,800 --> 00:22:56,000
Speaker 1: footing in place, no doubt. All right, Matt, let's get

518
00:22:56,000 --> 00:22:59,200
Speaker 1: to gear number six. Uh so, they you're obviously doing

519
00:22:59,240 --> 00:23:01,880
Speaker 1: a great job with your personal finances if you've made

520
00:23:01,880 --> 00:23:04,080
Speaker 1: it all the way through the first five gears, and

521
00:23:04,080 --> 00:23:06,480
Speaker 1: the next gear you're gonna be shifting into is knocking

522
00:23:06,520 --> 00:23:10,440
Speaker 1: out lower rate debts like student loans, maybe low interest

523
00:23:10,520 --> 00:23:13,320
Speaker 1: rate car loans. Anything it's at an interest rate of

524
00:23:13,480 --> 00:23:17,800
Speaker 1: seven or less, you could potentially put mortgages in this category,

525
00:23:18,040 --> 00:23:20,240
Speaker 1: but those are actually typically the least important debt to

526
00:23:20,280 --> 00:23:22,880
Speaker 1: pursue paying off early. So I think that the paid

527
00:23:22,920 --> 00:23:25,639
Speaker 1: off mortgage probably belongs in gear number seven. We'll get

528
00:23:25,680 --> 00:23:27,320
Speaker 1: to that in a minute. But at this point, you've

529
00:23:27,320 --> 00:23:29,680
Speaker 1: got the nastiest kinds of debt out of your life.

530
00:23:29,720 --> 00:23:31,959
Speaker 1: You've got no credit card debt. Now you can focus

531
00:23:32,000 --> 00:23:35,040
Speaker 1: on the other pesky debts that remain, but the ones

532
00:23:35,080 --> 00:23:38,080
Speaker 1: that didn't need as much of a focus prior. So

533
00:23:38,200 --> 00:23:40,639
Speaker 1: Federal student loans are kind of an oddball debt right

534
00:23:40,640 --> 00:23:43,760
Speaker 1: now because of the forbearance that borrowers are currently in,

535
00:23:44,160 --> 00:23:46,040
Speaker 1: but you should still be saving up in order to

536
00:23:46,040 --> 00:23:49,679
Speaker 1: access seeing swiftly when interest does resume on those loans.

537
00:23:49,920 --> 00:23:52,000
Speaker 1: Gear number six is the is the perfect time to

538
00:23:52,040 --> 00:23:54,600
Speaker 1: start lining these other debts up and knocking them down

539
00:23:54,600 --> 00:23:56,040
Speaker 1: one by one. Yeah, that's right. And one of the

540
00:23:56,040 --> 00:23:58,600
Speaker 1: reasons to we've chosen seven persential is that on average,

541
00:23:58,760 --> 00:24:01,280
Speaker 1: you can expect to receive a about seven percent if

542
00:24:01,320 --> 00:24:03,680
Speaker 1: your money is invested in the stock market, taking inflation

543
00:24:03,680 --> 00:24:06,800
Speaker 1: into account, right, and so debts higher than seven percent, uh,

544
00:24:06,840 --> 00:24:08,600
Speaker 1: you're it's it's less likely that you're gonna get that

545
00:24:08,720 --> 00:24:10,480
Speaker 1: kind of return on your money if it's invested, so

546
00:24:10,520 --> 00:24:13,040
Speaker 1: it's a guaranteed slam dunk to go ahead and eliminate

547
00:24:13,080 --> 00:24:15,920
Speaker 1: those debts. But anything lower than seven percent, well there's

548
00:24:15,960 --> 00:24:17,480
Speaker 1: a good chance you might be able to earn more

549
00:24:17,520 --> 00:24:19,199
Speaker 1: than that in the stock market. That's why we have

550
00:24:19,280 --> 00:24:22,280
Speaker 1: you investing before we get to gear six, where we're

551
00:24:22,320 --> 00:24:24,800
Speaker 1: paying down these smaller debts. But once you've started investing,

552
00:24:24,800 --> 00:24:28,400
Speaker 1: you've got your money in those tax sheltered retirement accounts UH,

553
00:24:28,400 --> 00:24:30,640
Speaker 1: and you're hoping to earn seven percent or more. Then

554
00:24:30,680 --> 00:24:33,160
Speaker 1: beyond that you're gonna continue to whittle your way down

555
00:24:33,400 --> 00:24:35,959
Speaker 1: the interest rate chain. And what's next, Well, that's these

556
00:24:35,960 --> 00:24:38,960
Speaker 1: smaller debts at seven percent or lower. UH. And you know, again,

557
00:24:39,000 --> 00:24:41,080
Speaker 1: you want to create a similar debt payoff plan that

558
00:24:41,119 --> 00:24:43,760
Speaker 1: we talked about in Gear three, you know, for those

559
00:24:43,760 --> 00:24:45,720
Speaker 1: other debts in your life. But go ahead and write

560
00:24:45,760 --> 00:24:47,440
Speaker 1: them all down and come up with a time frame

561
00:24:47,480 --> 00:24:50,400
Speaker 1: and a plan of attack for which debt you will

562
00:24:50,520 --> 00:24:54,640
Speaker 1: pursue the hardest while paying minimum payments on all the others. Um.

563
00:24:54,760 --> 00:24:56,840
Speaker 1: You know, when you're able to attack one debt at

564
00:24:56,840 --> 00:24:59,160
Speaker 1: a time, that gives you an incredible amount of focus

565
00:24:59,280 --> 00:25:01,880
Speaker 1: to make sure that you eliminate those debts quickly from

566
00:25:01,880 --> 00:25:04,600
Speaker 1: your life. Yeah, for sure. And okay, if you are

567
00:25:04,640 --> 00:25:07,880
Speaker 1: able to churn through gear six, you're pedaling hard, you're

568
00:25:07,920 --> 00:25:10,440
Speaker 1: going into gear seven. Not only are you pedaling hard,

569
00:25:10,480 --> 00:25:12,520
Speaker 1: but you're going quickly, you know, like you're covering a

570
00:25:12,520 --> 00:25:14,520
Speaker 1: lot of grounds through the point, like you've kind of

571
00:25:14,520 --> 00:25:16,199
Speaker 1: got momentum on your side. You know, it's kind of

572
00:25:16,200 --> 00:25:18,000
Speaker 1: hard to slow down once you get going that fast.

573
00:25:18,040 --> 00:25:21,240
Speaker 1: It's like a train barreling in the right direction. And yeah,

574
00:25:21,240 --> 00:25:24,320
Speaker 1: so once you're able to shift into gear number seven,

575
00:25:24,359 --> 00:25:27,760
Speaker 1: that that means going after bigger uh money and savings

576
00:25:27,760 --> 00:25:29,639
Speaker 1: goals that you have in your life. This is just

577
00:25:29,680 --> 00:25:31,359
Speaker 1: such an awesome place to be when you get to

578
00:25:31,400 --> 00:25:34,040
Speaker 1: gear number seven. Um, you've paid off all of your

579
00:25:34,080 --> 00:25:36,480
Speaker 1: debts at this point except for potentially your mortgage. That

580
00:25:36,600 --> 00:25:39,560
Speaker 1: might be your next goal. In gear number seven, you're

581
00:25:39,600 --> 00:25:41,600
Speaker 1: investing a healthy amount of what you bring in, and

582
00:25:41,680 --> 00:25:44,800
Speaker 1: now you can look to funnel money towards starting your

583
00:25:44,800 --> 00:25:47,919
Speaker 1: own business or a home renovation, or a giant vacation

584
00:25:47,960 --> 00:25:49,800
Speaker 1: that you've wanted to plan with your family or or

585
00:25:49,840 --> 00:25:52,800
Speaker 1: your spouse or your partner or even boosting your emergency

586
00:25:52,800 --> 00:25:55,359
Speaker 1: fund to a year's worth of expenses. Like, this is

587
00:25:55,400 --> 00:25:58,440
Speaker 1: the time where you can attack an even bigger money goal.

588
00:25:58,440 --> 00:26:01,280
Speaker 1: Whereas before it didn't make enough sense to put most

589
00:26:01,320 --> 00:26:03,960
Speaker 1: of your efforts in that direction, now it does. Yeah.

590
00:26:03,960 --> 00:26:06,000
Speaker 1: In gear seven is when you can maybe start looking

591
00:26:06,000 --> 00:26:08,520
Speaker 1: towards yeah, like like a big vacation, you know, some

592
00:26:08,560 --> 00:26:11,359
Speaker 1: of these luxuries, some of these niceties in life, or

593
00:26:11,359 --> 00:26:13,600
Speaker 1: even like you said, like a bigger emergency fund, Like

594
00:26:13,720 --> 00:26:16,000
Speaker 1: for some people having that additional security brings them a

595
00:26:16,040 --> 00:26:18,640
Speaker 1: lot of peace of mind. But also you know, another

596
00:26:18,680 --> 00:26:21,320
Speaker 1: aspect of focusing on some of these, you know, larger

597
00:26:21,359 --> 00:26:24,400
Speaker 1: savings goals can also be too. Seriously build some wealth. Uh,

598
00:26:24,440 --> 00:26:26,000
Speaker 1: you know, you can look to max out your retirement

599
00:26:26,000 --> 00:26:29,760
Speaker 1: accounts and then beyond that investing in brokerage accounts. You know,

600
00:26:29,880 --> 00:26:31,879
Speaker 1: all that comes at this point when you're in seventh

601
00:26:31,880 --> 00:26:35,199
Speaker 1: gear um or even pursuing local real estate investments. You know,

602
00:26:35,240 --> 00:26:37,800
Speaker 1: that's another perfect thing to do within this gear. This

603
00:26:37,840 --> 00:26:39,480
Speaker 1: is also an appropriate time free to maybe say if

604
00:26:39,480 --> 00:26:42,639
Speaker 1: your kids college and just working to build that generational wealth,

605
00:26:42,840 --> 00:26:44,520
Speaker 1: you know, Joel. Earlier we we we talked about the

606
00:26:44,560 --> 00:26:46,840
Speaker 1: analogy of biking you know, and how like when you're

607
00:26:46,880 --> 00:26:49,120
Speaker 1: just getting started, you know you're at a stand still,

608
00:26:49,200 --> 00:26:51,360
Speaker 1: you want to start with those easier gears, or if

609
00:26:51,359 --> 00:26:53,240
Speaker 1: you're working up hill, you gotta you know, you're gonna

610
00:26:53,240 --> 00:26:56,000
Speaker 1: be using those easier gears. And so to really extend

611
00:26:56,000 --> 00:26:57,920
Speaker 1: this metaphor, I was thinking about, like what it means

612
00:26:57,920 --> 00:27:01,200
Speaker 1: to achieve financial independence or financial freedom with this bike analogy.

613
00:27:01,240 --> 00:27:02,560
Speaker 1: And it's kind of like if you've been biking up

614
00:27:02,560 --> 00:27:04,520
Speaker 1: a mountain, like, yeah, it's got us up and downs,

615
00:27:04,520 --> 00:27:06,760
Speaker 1: but still you're kind of for the most part, biking uphill.

616
00:27:07,119 --> 00:27:10,800
Speaker 1: But once you achieve financial independence, uh, you're at the peak. Uh,

617
00:27:10,840 --> 00:27:12,640
Speaker 1: and you kind of crest that peak and you're starting

618
00:27:12,720 --> 00:27:14,800
Speaker 1: to go down the other side of the mountain. And dude,

619
00:27:14,840 --> 00:27:17,720
Speaker 1: at that point, like you've got the laws of gravity

620
00:27:18,000 --> 00:27:20,119
Speaker 1: working in your favor. You know, like you can keep

621
00:27:20,160 --> 00:27:21,879
Speaker 1: peddling if you want to, because you know, riding a

622
00:27:21,880 --> 00:27:24,240
Speaker 1: bike is fun, but you can also kind of take

623
00:27:24,240 --> 00:27:26,479
Speaker 1: it a little easier. But either way, it's hard not

624
00:27:26,520 --> 00:27:29,520
Speaker 1: to gain some serious speeds, some serious momentum. Dude. That's

625
00:27:29,520 --> 00:27:30,959
Speaker 1: the same thing when it comes to our money, right,

626
00:27:30,960 --> 00:27:33,040
Speaker 1: Like when you have enough money invested and you've kind

627
00:27:33,040 --> 00:27:34,680
Speaker 1: of reached that peak and you kind of crest it

628
00:27:34,680 --> 00:27:36,359
Speaker 1: and you start dropping to the other side. You have

629
00:27:36,440 --> 00:27:39,439
Speaker 1: the principles and the rules of compounding interest working in

630
00:27:39,480 --> 00:27:41,480
Speaker 1: your favor, and at that point it's hard not to

631
00:27:41,520 --> 00:27:43,560
Speaker 1: win with your money. Uh. You know, that's the point

632
00:27:43,600 --> 00:27:45,560
Speaker 1: in your life when you can continue working, just like

633
00:27:45,600 --> 00:27:48,280
Speaker 1: you can continue peddling, but you're not doing it because

634
00:27:48,400 --> 00:27:50,080
Speaker 1: you need the money. You're doing it because it's something

635
00:27:50,119 --> 00:27:52,080
Speaker 1: you enjoy in the same way that you just want

636
00:27:52,080 --> 00:27:54,200
Speaker 1: to keep on riding your bike. Yeah, I think too.

637
00:27:54,320 --> 00:27:57,440
Speaker 1: Momentum is such a big part of this whole thing,

638
00:27:57,520 --> 00:28:00,440
Speaker 1: right when you're when you're shifting gears, when you're climbing something,

639
00:28:00,480 --> 00:28:02,640
Speaker 1: when you're when you have a plan of attack, you're

640
00:28:02,680 --> 00:28:06,000
Speaker 1: going places, and that momentum feeds on itself and it

641
00:28:06,040 --> 00:28:08,960
Speaker 1: propels you almost into the next gear. And so I think, yeah,

642
00:28:09,040 --> 00:28:11,560
Speaker 1: if you're on gear number one right now and you're

643
00:28:11,720 --> 00:28:13,920
Speaker 1: a little bummed, you're like, man, there's seven money gears,

644
00:28:13,920 --> 00:28:16,160
Speaker 1: I'm only gear number one. That can be a tough

645
00:28:16,160 --> 00:28:18,320
Speaker 1: thing to swallow, a tough pill to swallow, but but

646
00:28:18,480 --> 00:28:21,880
Speaker 1: realize that that momentum can quickly take you through these

647
00:28:21,920 --> 00:28:24,199
Speaker 1: other gears, and let's say you're further along, you're on

648
00:28:24,240 --> 00:28:26,960
Speaker 1: gear four or five. Uh, it's also easy to get

649
00:28:26,960 --> 00:28:28,439
Speaker 1: stalled out if you don't have a plan and if

650
00:28:28,480 --> 00:28:30,560
Speaker 1: you don't have the proper habits in place, and so

651
00:28:30,640 --> 00:28:32,439
Speaker 1: knowing what the next gear is and knowing what you

652
00:28:32,480 --> 00:28:35,040
Speaker 1: need to accomplish in the gear that you're currently in

653
00:28:35,400 --> 00:28:38,320
Speaker 1: can be so helpful as a motivating force to get

654
00:28:38,360 --> 00:28:41,480
Speaker 1: you to keep going and keep pushing in the right direction.

655
00:28:41,640 --> 00:28:43,960
Speaker 1: Totally man. Yeah, and so hopefully this episode has served

656
00:28:44,000 --> 00:28:46,240
Speaker 1: not only as a map to locate you know, where

657
00:28:46,280 --> 00:28:48,760
Speaker 1: you are on your personal finance journey, but but also

658
00:28:48,800 --> 00:28:50,360
Speaker 1: our goal for this episode is that it works as

659
00:28:50,360 --> 00:28:53,640
Speaker 1: a sort of money owners manual. You know, you might

660
00:28:53,800 --> 00:28:55,720
Speaker 1: know of some of these specific tricks and how to

661
00:28:55,800 --> 00:28:58,840
Speaker 1: make your money work for you, uh, some different money hacks,

662
00:28:58,840 --> 00:29:00,280
Speaker 1: but it's important to see how the end of vigual

663
00:29:00,320 --> 00:29:02,480
Speaker 1: actions and the stuffs we take, how they can make

664
00:29:02,480 --> 00:29:05,760
Speaker 1: the overall machine work right, and so it's really important

665
00:29:05,760 --> 00:29:08,880
Speaker 1: to see how we should properly use these money gears

666
00:29:09,080 --> 00:29:11,600
Speaker 1: to propel us forward, you know, towards financial freedom. You

667
00:29:11,600 --> 00:29:13,680
Speaker 1: want to make sure that you're going in the right order,

668
00:29:13,840 --> 00:29:15,480
Speaker 1: because if you start with the wrong gear at the

669
00:29:15,480 --> 00:29:18,280
Speaker 1: wrong time. Uh, that's a that's just a recipe for

670
00:29:18,360 --> 00:29:21,120
Speaker 1: just getting burned out or just not achieving any goals. Right,

671
00:29:21,200 --> 00:29:24,200
Speaker 1: you just test my wife. Yeah, you try going up

672
00:29:24,200 --> 00:29:26,560
Speaker 1: that hill and you know gear five and you've not

673
00:29:26,600 --> 00:29:28,920
Speaker 1: done any biking before. Pretty soon you're gonna be walking

674
00:29:28,920 --> 00:29:30,400
Speaker 1: that bike up the rest of the hill. Yeah, you're

675
00:29:30,400 --> 00:29:32,400
Speaker 1: not gonna be riding. So yeah, these money gears, man,

676
00:29:32,440 --> 00:29:34,800
Speaker 1: I think they're they're such a great organizational tool for

677
00:29:34,800 --> 00:29:36,600
Speaker 1: how we think about money and how we move forward

678
00:29:36,640 --> 00:29:38,640
Speaker 1: with money. But all right, Matt, let's get back to

679
00:29:38,640 --> 00:29:40,200
Speaker 1: the beer that we had on the show today. This

680
00:29:40,240 --> 00:29:43,200
Speaker 1: one's called Future Knowledge. It's by Paradox Beer Company out

681
00:29:43,200 --> 00:29:46,200
Speaker 1: of Colorado. What were your thoughts on this farmhouse sale? Man,

682
00:29:46,240 --> 00:29:48,800
Speaker 1: this was a really delicious one. Before I kind of

683
00:29:48,840 --> 00:29:50,640
Speaker 1: talked about the flavor. What I love is that this

684
00:29:50,720 --> 00:29:52,920
Speaker 1: is a brewery that I've never even heard of, let

685
00:29:53,080 --> 00:29:55,840
Speaker 1: let alone had. Uh, we've never had Paradox in the show.

686
00:29:55,920 --> 00:29:57,520
Speaker 1: You're able to pick a couple of these up. They

687
00:29:57,520 --> 00:30:00,000
Speaker 1: are based in Colorado. But the first thing I noted

688
00:30:00,000 --> 00:30:01,520
Speaker 1: this is that kind of had some of that bready

689
00:30:01,720 --> 00:30:04,040
Speaker 1: funk going on you know, this is a farmhouse sale.

690
00:30:04,280 --> 00:30:05,760
Speaker 1: It had something funk, but at the same time, it

691
00:30:05,800 --> 00:30:07,840
Speaker 1: wasn't overly tart, you know, it was in my mind

692
00:30:07,840 --> 00:30:11,120
Speaker 1: it was pretty mild. Uh, drink like a nice, smooth,

693
00:30:11,160 --> 00:30:14,240
Speaker 1: easy to drink farmhouse beer. If you aren't a fan

694
00:30:14,400 --> 00:30:16,600
Speaker 1: of hoppy beers because you're like, oh, it's just too bitter,

695
00:30:16,960 --> 00:30:19,480
Speaker 1: I would recommend maybe trying out farmhouse beers because they're

696
00:30:19,600 --> 00:30:21,880
Speaker 1: a lot of times they're considered like table beers and

697
00:30:21,960 --> 00:30:23,440
Speaker 1: a lot of countries they're just kind of like the

698
00:30:23,440 --> 00:30:26,640
Speaker 1: standard beer to have with dinner. It's not too out there,

699
00:30:26,640 --> 00:30:28,320
Speaker 1: and so this is one, Yeah, I really enjoyed. Man,

700
00:30:28,320 --> 00:30:30,680
Speaker 1: how about you? What your thoughts? So I love a

701
00:30:30,680 --> 00:30:32,920
Speaker 1: good farmhouse slee It's funny, though, when you read the

702
00:30:32,960 --> 00:30:35,960
Speaker 1: descriptions of a lot of them, they get kind of weird.

703
00:30:36,040 --> 00:30:39,960
Speaker 1: It's like, oh, it smells like a barnyard funk, or

704
00:30:40,480 --> 00:30:42,720
Speaker 1: like a wet blanket or or hey, or something like

705
00:30:42,720 --> 00:30:45,280
Speaker 1: like they're all these dirty socks. I've seen that before

706
00:30:45,320 --> 00:30:47,360
Speaker 1: on the bottle where I'm just like, oh, like, I

707
00:30:47,400 --> 00:30:49,160
Speaker 1: don't want to drink that. The descriptions can be off

708
00:30:49,160 --> 00:30:51,240
Speaker 1: putting and they can make you say, um, why would

709
00:30:51,280 --> 00:30:53,880
Speaker 1: I ever drink a farmhouse sale? But I actually think

710
00:30:54,240 --> 00:30:56,760
Speaker 1: it's it's it really is. It's a hard flavor to describe,

711
00:30:56,960 --> 00:30:59,480
Speaker 1: but I do appreciate the funkiness that you get in

712
00:30:59,520 --> 00:31:01,600
Speaker 1: a farmhouse sale. I thought this one had a nice

713
00:31:01,640 --> 00:31:04,400
Speaker 1: funkiness with a with a slight tartness, And so this

714
00:31:04,440 --> 00:31:06,080
Speaker 1: one is definitely in my wheelhouse. And it's a style

715
00:31:06,120 --> 00:31:08,160
Speaker 1: I don't drink often enough, so I was glad to

716
00:31:08,200 --> 00:31:10,400
Speaker 1: get to try this one from Paradox Beer Company today

717
00:31:10,400 --> 00:31:12,480
Speaker 1: on The show Man. But all right, that's gonna do

718
00:31:12,520 --> 00:31:15,320
Speaker 1: it for this episode. For our listeners who want show

719
00:31:15,360 --> 00:31:18,320
Speaker 1: notes for this episode, who want the money gears in order,

720
00:31:18,640 --> 00:31:21,560
Speaker 1: because sometimes it's helpful to actually visualize it and see

721
00:31:21,600 --> 00:31:23,120
Speaker 1: it with your own two eyes, and I will have

722
00:31:23,200 --> 00:31:25,720
Speaker 1: those up on our website at how to money dot com. Yeah,

723
00:31:25,760 --> 00:31:27,360
Speaker 1: and if you're listening to this episode and you found

724
00:31:27,360 --> 00:31:29,560
Speaker 1: it helpful, we would love it if you went over

725
00:31:29,600 --> 00:31:32,080
Speaker 1: to Apple Podcasts and left us a solid rating and

726
00:31:32,160 --> 00:31:34,000
Speaker 1: review over there. It doesn't matter if this is the

727
00:31:34,080 --> 00:31:35,880
Speaker 1: very first episode you ever heard. If you enjoyed it,

728
00:31:35,960 --> 00:31:38,640
Speaker 1: you can let other people know, no doubt we'd appreciate

729
00:31:38,640 --> 00:31:41,240
Speaker 1: it and make sure you subscribe while you're there, but Joel,

730
00:31:41,320 --> 00:31:43,600
Speaker 1: that's gonna be it for this episode, Buddy, until next time.

731
00:31:43,720 --> 00:32:00,160
Speaker 1: Best Friends Out, Best Friends Out,