1 00:00:00,080 --> 00:00:02,840 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt. 2 00:00:03,040 --> 00:00:06,320 Speaker 1: Today we're discussing the housing halt, low cost healthcare, and 3 00:00:06,400 --> 00:00:28,639 Speaker 1: delinquent debtors. That's right, Joel. This is our Friday flight 4 00:00:28,720 --> 00:00:31,280 Speaker 1: where we tackle what we believe are the most pertinent 5 00:00:31,760 --> 00:00:33,879 Speaker 1: stories to get to this week, the stories that we 6 00:00:33,880 --> 00:00:36,440 Speaker 1: think are going to impact your money the most. And 7 00:00:36,479 --> 00:00:38,959 Speaker 1: by the way, Happy Black Friday to everybody. This is uh, 8 00:00:39,240 --> 00:00:41,280 Speaker 1: it's the it's the day for sales man. Yeah, I 9 00:00:41,280 --> 00:00:43,600 Speaker 1: guess I guess it is. It's I'm not going shopping 10 00:00:43,600 --> 00:00:46,120 Speaker 1: to day personally, I'm looking out for sales. I'm definitely 11 00:00:46,120 --> 00:00:47,600 Speaker 1: I've got a few items on my list. I'm not 12 00:00:47,640 --> 00:00:50,040 Speaker 1: gonna go in person. I feel like we've we've arrived 13 00:00:50,080 --> 00:00:52,120 Speaker 1: to the point to where, in my mind, cyber Monday 14 00:00:52,200 --> 00:00:55,280 Speaker 1: isn't hardly a thing because so many retailers are offering 15 00:00:55,280 --> 00:00:57,400 Speaker 1: sales online like it used to be the special thing 16 00:00:57,400 --> 00:01:00,400 Speaker 1: where online retail was like a separate just a different 17 00:01:00,400 --> 00:01:02,360 Speaker 1: way of seeing the world and the deals were always 18 00:01:02,360 --> 00:01:04,600 Speaker 1: better in person for a number of years. No longer, 19 00:01:04,680 --> 00:01:07,520 Speaker 1: but but now just the way folks. For the most part, 20 00:01:07,600 --> 00:01:10,520 Speaker 1: more folks are shopping online, and so there, there's a 21 00:01:10,520 --> 00:01:13,760 Speaker 1: lot of sales out there on Black Friday. We just 22 00:01:13,880 --> 00:01:16,800 Speaker 1: like people need to be careful because while deals exist, 23 00:01:16,840 --> 00:01:19,600 Speaker 1: and I agree, like start buying your your presence earlier. 24 00:01:19,640 --> 00:01:21,679 Speaker 1: We've talked about this. You're gonna save more money if 25 00:01:21,680 --> 00:01:23,560 Speaker 1: you start earlier because the sales are better. If you 26 00:01:23,560 --> 00:01:26,400 Speaker 1: wait till you know, mid to late December, you're likely 27 00:01:26,400 --> 00:01:27,960 Speaker 1: going to pay more for that stuff. But you can 28 00:01:28,000 --> 00:01:30,040 Speaker 1: also overdo it, right, And there's a lot of temptation 29 00:01:30,120 --> 00:01:32,560 Speaker 1: on Black Friday to like stop off for some stuff 30 00:01:32,560 --> 00:01:34,800 Speaker 1: like yourself when nick with your you don't need it, 31 00:01:34,840 --> 00:01:36,840 Speaker 1: the items on your watch list, yeah, for your family 32 00:01:36,840 --> 00:01:39,960 Speaker 1: and friends and better yet, I think I saw there 33 00:01:40,000 --> 00:01:42,600 Speaker 1: there's a survey. There's a ranking done by of different 34 00:01:42,600 --> 00:01:45,320 Speaker 1: states and how enthusiastic they are towards Black Friday, and 35 00:01:45,360 --> 00:01:47,440 Speaker 1: like at the bottom of the list, we're like Alaska 36 00:01:47,680 --> 00:01:51,200 Speaker 1: and Montana, which makes sense. They've they've got other things 37 00:01:51,240 --> 00:01:53,680 Speaker 1: to worry about. They've got like staying warm at the 38 00:01:53,680 --> 00:01:57,120 Speaker 1: top of the list, right, grizzly bears, like surviving that 39 00:01:57,200 --> 00:01:59,160 Speaker 1: kind of thing. Maybe like bear traps go on sale there, 40 00:01:59,160 --> 00:02:02,360 Speaker 1: and you know it's be more like Alaska in Montana, right, yeah, 41 00:02:02,400 --> 00:02:04,640 Speaker 1: I'm sure Hawaii too, is why are they into Black Friday? 42 00:02:04,640 --> 00:02:06,240 Speaker 1: They gotta be download and even I didn't just I 43 00:02:06,240 --> 00:02:09,080 Speaker 1: wonder if like continental United States, it's just the shipping 44 00:02:09,160 --> 00:02:11,720 Speaker 1: is a little more difficult to get to Hawaiian Alaska. 45 00:02:11,800 --> 00:02:14,760 Speaker 1: So I wanted a heartland thing. Yeah, yeah, all right, 46 00:02:14,800 --> 00:02:17,000 Speaker 1: well yeah, best of luck to everybody out there on 47 00:02:17,000 --> 00:02:21,160 Speaker 1: this Black Friday, staying more but also avoiding spending too much. 48 00:02:21,720 --> 00:02:23,800 Speaker 1: And Matt Broo quick, I wanted to mention that the 49 00:02:23,840 --> 00:02:26,120 Speaker 1: good folks at Capital One they tried to lower my 50 00:02:26,120 --> 00:02:28,360 Speaker 1: credit limit on a credit card the other day, and 51 00:02:28,440 --> 00:02:30,000 Speaker 1: so they sent me an email. They give me a 52 00:02:30,000 --> 00:02:32,320 Speaker 1: heads up and they're like, we're basically they like hinted 53 00:02:32,360 --> 00:02:34,360 Speaker 1: that we're thinking about doing this. Had you not gotten 54 00:02:34,360 --> 00:02:36,239 Speaker 1: in there and updated you in for your information? No, 55 00:02:36,360 --> 00:02:38,040 Speaker 1: I had I've done that too, because they always they 56 00:02:38,080 --> 00:02:40,200 Speaker 1: always prompt you at the beginning, and I'm always like, 57 00:02:40,320 --> 00:02:42,560 Speaker 1: I'll do it later or remind me later or whatever, 58 00:02:42,919 --> 00:02:45,519 Speaker 1: just like the software updates on the computer that always 59 00:02:45,919 --> 00:02:47,639 Speaker 1: that I need to do. Know. They told me that, hey, 60 00:02:47,800 --> 00:02:50,600 Speaker 1: you haven't been using your credit card enough and so 61 00:02:50,760 --> 00:02:53,520 Speaker 1: we've got this like massive credit credit limit for you. 62 00:02:53,720 --> 00:02:55,560 Speaker 1: But we're going to turn that back if if you 63 00:02:55,560 --> 00:02:57,480 Speaker 1: don't start using it or and we're gonna do this 64 00:02:57,520 --> 00:03:00,519 Speaker 1: like audit of your account basically. And so they didn't 65 00:03:00,520 --> 00:03:01,880 Speaker 1: call it about it because if they had, that would 66 00:03:01,919 --> 00:03:03,600 Speaker 1: have freed me out. Yet it always a little stereo 67 00:03:03,639 --> 00:03:06,760 Speaker 1: when that, yeah, but but so basically they're like, we're 68 00:03:06,760 --> 00:03:09,680 Speaker 1: gonna we're gonna check this out unless you actually tell 69 00:03:09,760 --> 00:03:12,400 Speaker 1: us not to. And so I was like, oh, hey, yeah, no, 70 00:03:12,480 --> 00:03:15,440 Speaker 1: let's not It's dope. But it did remind me that 71 00:03:15,560 --> 00:03:17,480 Speaker 1: some of those credit cards that I have, I get 72 00:03:17,600 --> 00:03:20,600 Speaker 1: used to using the same three or three cards basically 73 00:03:20,680 --> 00:03:23,040 Speaker 1: most of the time, and that that in particular is 74 00:03:23,320 --> 00:03:24,720 Speaker 1: a card I've had a long time. I've had a 75 00:03:24,720 --> 00:03:26,800 Speaker 1: long relationship with Capital One, but I don't really use 76 00:03:26,800 --> 00:03:28,959 Speaker 1: that card much anymore because it doesn't provide the top 77 00:03:28,960 --> 00:03:30,800 Speaker 1: tier benefits and so it's not a card that's in 78 00:03:30,800 --> 00:03:32,480 Speaker 1: your wallet. That's more like a top drawer of the 79 00:03:32,520 --> 00:03:35,560 Speaker 1: desk credit cards sitting there is exactly like one of those. 80 00:03:35,600 --> 00:03:37,520 Speaker 1: But I just need to use that occasionally just to 81 00:03:37,640 --> 00:03:39,880 Speaker 1: register activity. So it's a good reminder of folks out there, 82 00:03:40,160 --> 00:03:42,680 Speaker 1: you know, put put those credit cards that you have 83 00:03:42,880 --> 00:03:45,800 Speaker 1: that you don't use very often, make them automatically pay 84 00:03:45,840 --> 00:03:47,640 Speaker 1: for certain things. I've got to remember to do this now. 85 00:03:47,760 --> 00:03:50,040 Speaker 1: Sign up to pay something two or three things with 86 00:03:50,040 --> 00:03:52,320 Speaker 1: this credit card that are low level, just to kind 87 00:03:52,320 --> 00:03:54,480 Speaker 1: of keep it active in my credit mix. But nice 88 00:03:54,520 --> 00:03:57,440 Speaker 1: actually did that recently with a card I infrequently use. 89 00:03:57,800 --> 00:03:59,920 Speaker 1: I use that card. I set it up to pay 90 00:04:00,280 --> 00:04:03,000 Speaker 1: the peach Pass, which is like a very It's like, 91 00:04:03,040 --> 00:04:04,960 Speaker 1: we don't use it very often, but like maybe once 92 00:04:05,040 --> 00:04:06,560 Speaker 1: or twice a year, we'll get a charge because it 93 00:04:06,600 --> 00:04:08,680 Speaker 1: has to like re up that account, which is it's 94 00:04:08,720 --> 00:04:12,480 Speaker 1: like the paper use h ov Lane basically are in 95 00:04:12,240 --> 00:04:14,760 Speaker 1: a in and around Atlanta. But it's such a small 96 00:04:14,800 --> 00:04:17,320 Speaker 1: dollar amount, but it also keeps it alive, keeps it fresh, yep, 97 00:04:17,520 --> 00:04:19,479 Speaker 1: for sure. So I like it right and of course 98 00:04:19,560 --> 00:04:21,400 Speaker 1: let me The reason you don't want your credit limit 99 00:04:21,440 --> 00:04:25,000 Speaker 1: decreased is if you have less credit that's available to you. 100 00:04:25,279 --> 00:04:27,080 Speaker 1: That means, if you go along with your typical spending, 101 00:04:27,080 --> 00:04:29,400 Speaker 1: you're going to see a higher utilization rate of your 102 00:04:29,440 --> 00:04:32,520 Speaker 1: credit that's available to you, which will technically lower your 103 00:04:32,520 --> 00:04:34,680 Speaker 1: credit score, which is something that you want to avoid 104 00:04:34,680 --> 00:04:37,960 Speaker 1: doing for sure. And we've got yeah, old episodes on 105 00:04:38,080 --> 00:04:39,800 Speaker 1: credit scores. It's going to go back and listen if 106 00:04:39,839 --> 00:04:41,320 Speaker 1: you want to know the intricacies of how they work, 107 00:04:41,400 --> 00:04:46,360 Speaker 1: because it is like it's not intuitive necessarily you would think, oh, 108 00:04:46,440 --> 00:04:49,480 Speaker 1: more credit available, that uh, that you might be a 109 00:04:49,600 --> 00:04:52,520 Speaker 1: riskier credit bad right, right? A lot of people think that. 110 00:04:52,640 --> 00:04:55,200 Speaker 1: So there's a lot of nonintuitive things we we've covered 111 00:04:55,240 --> 00:04:57,960 Speaker 1: before in episodes on credit scores. But Matt, let's move on. 112 00:04:58,040 --> 00:05:00,279 Speaker 1: Let's get to the Friday Flight the sampling of stories 113 00:05:00,279 --> 00:05:03,640 Speaker 1: we found interesting this week. And we talked about student 114 00:05:03,680 --> 00:05:07,400 Speaker 1: loan forgiveness being on hold last week because of a 115 00:05:07,480 --> 00:05:10,320 Speaker 1: court in Texas, but there is actually some new news 116 00:05:10,440 --> 00:05:14,320 Speaker 1: report on that front. No, sadly, we don't know whether 117 00:05:14,440 --> 00:05:17,240 Speaker 1: or not student loans are going to be to be 118 00:05:17,279 --> 00:05:20,880 Speaker 1: able to be forgiven via the Biden administration mandate. That's 119 00:05:20,880 --> 00:05:23,640 Speaker 1: still in limbo through the court system. But the Biden 120 00:05:23,680 --> 00:05:26,680 Speaker 1: administration has just announced that they're going to be extending 121 00:05:26,720 --> 00:05:31,200 Speaker 1: a pause on federal student loan payments while these legal 122 00:05:31,279 --> 00:05:37,040 Speaker 1: challenges remain. So, yeah, payments were set to resume January one, 123 00:05:37,320 --> 00:05:39,760 Speaker 1: but now we're just not sure what the start date 124 00:05:39,760 --> 00:05:41,400 Speaker 1: for those payments is going to be. Again, that now 125 00:05:41,480 --> 00:05:44,880 Speaker 1: they're going to be set to resume sixty days after 126 00:05:45,520 --> 00:05:48,640 Speaker 1: we know whether student loan forgiveness is actually going to 127 00:05:48,680 --> 00:05:50,880 Speaker 1: happen or not, so whether once this court case is 128 00:05:50,920 --> 00:05:56,000 Speaker 1: resolved or one student loan forgiveness is implemented. Now the 129 00:05:56,240 --> 00:05:58,960 Speaker 1: what's what you know, what's happening is that payments are 130 00:05:58,960 --> 00:06:02,800 Speaker 1: supposed to resume sixty days after that resolution comes to pass. 131 00:06:02,839 --> 00:06:05,640 Speaker 1: So this student loan and pause kind of feels perpetual 132 00:06:05,680 --> 00:06:08,359 Speaker 1: at this point, and who knows how much longer it goes. 133 00:06:08,600 --> 00:06:13,680 Speaker 1: Apparently there is a June deadline where if if you 134 00:06:13,680 --> 00:06:16,240 Speaker 1: know the we haven't figured out what's going on with 135 00:06:16,279 --> 00:06:19,599 Speaker 1: the forgiveness proposal from the Biden administration, that payments are 136 00:06:19,600 --> 00:06:22,400 Speaker 1: going to resume sixty days after after that date, So 137 00:06:22,480 --> 00:06:24,720 Speaker 1: I guess that would mean in the end of August. 138 00:06:25,040 --> 00:06:27,080 Speaker 1: But yeah, there's still a lot of moving parts in it. 139 00:06:27,080 --> 00:06:30,080 Speaker 1: It certainly looks like from where we're sitting right now, 140 00:06:30,360 --> 00:06:32,960 Speaker 1: student loan payments are not going to resume, much to 141 00:06:33,040 --> 00:06:35,960 Speaker 1: the happiness I'm sure of many at the beginning of 142 00:06:36,000 --> 00:06:38,720 Speaker 1: the year. But yeah, there's something else to talk about 143 00:06:38,720 --> 00:06:41,760 Speaker 1: on that front too, because scammers are on the prowl 144 00:06:42,120 --> 00:06:44,719 Speaker 1: trying to use this kind of limbo time, as it were, 145 00:06:44,760 --> 00:06:48,000 Speaker 1: to steal money from anxious student loan borrowers. This there 146 00:06:48,080 --> 00:06:49,840 Speaker 1: was a story in the Wall Street Journal about this week, 147 00:06:49,880 --> 00:06:53,520 Speaker 1: and internet thieves are are touting that they can fast 148 00:06:53,520 --> 00:06:56,800 Speaker 1: track forgiveness or that they can even make a bigger 149 00:06:56,839 --> 00:06:59,240 Speaker 1: chunk of your student loans go away completely, like more 150 00:06:59,279 --> 00:07:02,279 Speaker 1: than what the Biden illustration has promised. So some some 151 00:07:02,360 --> 00:07:04,840 Speaker 1: scammers are saying, you know what we're gonna We're gonna 152 00:07:05,000 --> 00:07:07,080 Speaker 1: help you get sixty dollars with the student loan forgiveness, 153 00:07:07,120 --> 00:07:09,560 Speaker 1: which sounds really nice. Folks who hear the pitch might 154 00:07:09,560 --> 00:07:12,200 Speaker 1: get really stoked. But the reality is that it's too 155 00:07:12,200 --> 00:07:14,240 Speaker 1: good to be true. And so no matter how these 156 00:07:14,280 --> 00:07:17,400 Speaker 1: folks try to contact you, we say don't respond. The U. S. 157 00:07:17,400 --> 00:07:19,640 Speaker 1: Department of Education, they're not going to reach out to 158 00:07:19,640 --> 00:07:22,920 Speaker 1: you asking for sensitive information over the phone, like your 159 00:07:22,920 --> 00:07:25,880 Speaker 1: social Security number or anything like that. All communication is 160 00:07:25,880 --> 00:07:29,480 Speaker 1: going to happen via verified government email addresses. And so 161 00:07:29,560 --> 00:07:31,760 Speaker 1: if there are any changes on the forgiveness front, you'll 162 00:07:31,760 --> 00:07:33,840 Speaker 1: hear from it there. You'll also hear us discuss it 163 00:07:33,880 --> 00:07:35,960 Speaker 1: here on the show. But just be careful out there 164 00:07:35,960 --> 00:07:38,680 Speaker 1: because there are more and more of these individuals. Whenever 165 00:07:38,680 --> 00:07:40,920 Speaker 1: there's like big money at stake, matts, some sort of 166 00:07:41,160 --> 00:07:43,120 Speaker 1: government forgiveness thing, a lot of people come out of 167 00:07:43,120 --> 00:07:45,880 Speaker 1: the woodwork and they want to like steal money from 168 00:07:46,000 --> 00:07:48,320 Speaker 1: unsuspecting victims. That's right. It's important to keep an eye 169 00:07:48,320 --> 00:07:52,400 Speaker 1: out anytime there's an opportunity out there for thieves. But 170 00:07:52,520 --> 00:07:54,640 Speaker 1: they're actually so. There has been one other change on 171 00:07:54,680 --> 00:07:57,760 Speaker 1: the student loan front this past week which could make 172 00:07:57,760 --> 00:08:01,800 Speaker 1: it easier for some folks to jettison their student loans altogether. 173 00:08:02,280 --> 00:08:05,640 Speaker 1: And that's the new guidelines that the Biden administration has 174 00:08:05,640 --> 00:08:08,440 Speaker 1: set which will likely make it easier for those who 175 00:08:08,480 --> 00:08:13,480 Speaker 1: have student loans UM for judges and courts for them 176 00:08:13,480 --> 00:08:15,440 Speaker 1: to decide whether or not those folks are going to 177 00:08:15,480 --> 00:08:19,400 Speaker 1: be eligible for bankruptcy right now. It's it's the water 178 00:08:19,440 --> 00:08:21,040 Speaker 1: is kind of murky or at least for their loans 179 00:08:21,040 --> 00:08:25,360 Speaker 1: to be discharged in the process of bankruptcy exactly. Yeah, Like, 180 00:08:25,400 --> 00:08:29,000 Speaker 1: basically it's it's very unclear as to what is allowed 181 00:08:29,440 --> 00:08:33,200 Speaker 1: um And basically, like student loans have until now been 182 00:08:33,200 --> 00:08:38,040 Speaker 1: almost impossible to discharge within bankruptcy proceedings, largely in an 183 00:08:38,080 --> 00:08:40,400 Speaker 1: attempt for recent collegegrats to not be able to gain 184 00:08:40,440 --> 00:08:42,520 Speaker 1: the system right, like where they're trusting that their future 185 00:08:42,559 --> 00:08:46,120 Speaker 1: earnings would be higher thanks to that handy new degree. 186 00:08:46,240 --> 00:08:48,640 Speaker 1: It's like trying to declare bankruptcy when you're twenty three 187 00:08:48,800 --> 00:08:51,000 Speaker 1: making twenty thousand allarsy or with a hundred fifty thousand 188 00:08:51,000 --> 00:08:53,959 Speaker 1: dollars worth the debt, knowing yeah, and eventually you're going 189 00:08:53,960 --> 00:08:57,080 Speaker 1: to to make bank yeah exactly. But it's so What 190 00:08:57,120 --> 00:08:59,680 Speaker 1: that means, though, is it's incredibly difficult. UH stats find 191 00:08:59,679 --> 00:09:02,199 Speaker 1: that only three hundred out of two hundred and fifty 192 00:09:02,200 --> 00:09:05,440 Speaker 1: thousand folks who filed for bankruptcy actually had their student 193 00:09:05,480 --> 00:09:09,360 Speaker 1: loans discharged along with their other consumer debts. But luckily 194 00:09:09,559 --> 00:09:11,680 Speaker 1: that is set to change and hopefully there'll be a 195 00:09:11,679 --> 00:09:13,240 Speaker 1: lot of folks who are going to be able to 196 00:09:13,240 --> 00:09:16,680 Speaker 1: receive some of this relief use these new guidelines. They're 197 00:09:16,679 --> 00:09:19,640 Speaker 1: going to set some of these specific requirements for proving 198 00:09:19,880 --> 00:09:22,840 Speaker 1: financial distress. In the past, it was much more nebulous. 199 00:09:22,880 --> 00:09:26,920 Speaker 1: But anytime there's transparency and clear rules as to what 200 00:09:27,080 --> 00:09:30,160 Speaker 1: the game is that you're playing, I am all for that, agreed. Yeah, 201 00:09:30,160 --> 00:09:32,599 Speaker 1: it's always it's student loans have been kind of a 202 00:09:32,880 --> 00:09:35,760 Speaker 1: new surround people's neck really and where they and it 203 00:09:35,840 --> 00:09:38,000 Speaker 1: was impossible to get rid of that three hundred out 204 00:09:38,000 --> 00:09:41,760 Speaker 1: of two and fifty stat is sobering. But basically nobody 205 00:09:42,120 --> 00:09:45,839 Speaker 1: can get any sort of dischargement of student loans via 206 00:09:45,880 --> 00:09:48,600 Speaker 1: bankruptcy proceedings. That is set to change. It's it's going 207 00:09:48,640 --> 00:09:50,280 Speaker 1: to be interesting to see how it shakes out and 208 00:09:50,320 --> 00:09:52,440 Speaker 1: what percentage of people are going to be able to 209 00:09:52,480 --> 00:09:54,000 Speaker 1: go that route in the future to get rid of 210 00:09:54,000 --> 00:09:56,439 Speaker 1: student loans. Um I think people are gonna be a 211 00:09:56,480 --> 00:09:59,120 Speaker 1: lot more interested in that moving forward, and as we 212 00:09:59,200 --> 00:10:01,720 Speaker 1: see more progress us with these new rules and and 213 00:10:01,720 --> 00:10:04,160 Speaker 1: how they're playing out, we'll we'll certainly continue to weigh 214 00:10:04,160 --> 00:10:06,920 Speaker 1: in on that. But let's move on. Let's talk about cars, 215 00:10:06,960 --> 00:10:10,800 Speaker 1: because according to our friends at Consumer Reports, electric vehicle 216 00:10:10,920 --> 00:10:15,199 Speaker 1: reliability is going down at prices. Yet on the other hand, 217 00:10:15,200 --> 00:10:17,240 Speaker 1: are going up in a big way. But evs are 218 00:10:17,280 --> 00:10:19,680 Speaker 1: just they're just not as good as they have been 219 00:10:19,760 --> 00:10:22,319 Speaker 1: in recent years. And one of the main reasons is 220 00:10:22,360 --> 00:10:26,720 Speaker 1: apparently because automakers are using the the advents of new 221 00:10:26,760 --> 00:10:30,520 Speaker 1: electric vehicle styles to launch other new technologies at the 222 00:10:30,559 --> 00:10:33,839 Speaker 1: same time. Basically, they're learning as as they go. The 223 00:10:34,160 --> 00:10:37,439 Speaker 1: auto manufacturers are and we're the guinea pigs as people 224 00:10:37,440 --> 00:10:40,080 Speaker 1: who are bought buyers of vehicles like that not all 225 00:10:40,840 --> 00:10:43,240 Speaker 1: and you and I weren't were fans of electric vehicles. 226 00:10:43,240 --> 00:10:46,480 Speaker 1: We think that they're largely going to replace internal combustion 227 00:10:46,520 --> 00:10:49,960 Speaker 1: engine vehicles in the coming decades. I'd be shocked if 228 00:10:50,040 --> 00:10:52,080 Speaker 1: that wasn't the case. They're fun to drive, there are 229 00:10:52,120 --> 00:10:55,920 Speaker 1: fewer maintenance requirements. Like electric vehicles are awesome in so 230 00:10:55,960 --> 00:10:58,680 Speaker 1: many ways, but right in the middle of this shift 231 00:10:58,880 --> 00:11:02,120 Speaker 1: taking place, this pivot, and consumers out there, we've got 232 00:11:02,120 --> 00:11:03,559 Speaker 1: to be careful and we've got to do our own 233 00:11:03,600 --> 00:11:06,800 Speaker 1: due diligence. Consumer Reports, we would say, is a great resource, 234 00:11:07,120 --> 00:11:08,880 Speaker 1: albeit one that you have to pay for unless you 235 00:11:08,880 --> 00:11:10,680 Speaker 1: go to the library. But it's a great place to 236 00:11:10,720 --> 00:11:13,959 Speaker 1: kind of look up and to see which specific vehicles 237 00:11:14,000 --> 00:11:17,280 Speaker 1: are having issues or which ones get get great reviews. 238 00:11:17,760 --> 00:11:19,640 Speaker 1: But like friend of the show Mike Quincy, who works 239 00:11:19,640 --> 00:11:23,160 Speaker 1: for Consumer Reports told us on episode eighty nine, he said, 240 00:11:23,160 --> 00:11:26,080 Speaker 1: buying the first version of any vehicle means you're likely 241 00:11:26,080 --> 00:11:29,120 Speaker 1: buying more problems, which is true. That's historically true for cars, 242 00:11:29,280 --> 00:11:32,559 Speaker 1: and it's even more true of electric vehicles right now. Plus, 243 00:11:32,600 --> 00:11:34,199 Speaker 1: by the way, it means you're buying a new car, 244 00:11:34,360 --> 00:11:36,080 Speaker 1: which of course is going to cost you more. So 245 00:11:36,160 --> 00:11:38,560 Speaker 1: we would say reliable use cars are still the best 246 00:11:38,559 --> 00:11:41,800 Speaker 1: bet for most folks. And and and just yeah, you 247 00:11:41,840 --> 00:11:44,120 Speaker 1: have to be careful when you're if you are in 248 00:11:44,160 --> 00:11:47,319 Speaker 1: the market, you're looking to get into the you want 249 00:11:47,320 --> 00:11:49,520 Speaker 1: to trade in a gas power vehicle for an electric vehicle, 250 00:11:49,880 --> 00:11:51,839 Speaker 1: you just have to be careful because you don't want 251 00:11:51,840 --> 00:11:54,760 Speaker 1: to be buying one of those first models that has 252 00:11:54,840 --> 00:11:56,839 Speaker 1: like copious problems that you're gonna be dealing with for 253 00:11:56,960 --> 00:11:59,640 Speaker 1: years to come, exactly, those new electric vehicles with new 254 00:12:00,600 --> 00:12:02,920 Speaker 1: By the way, let's talk about which cars retain their 255 00:12:02,960 --> 00:12:05,920 Speaker 1: value the best, because I see cars. They just released 256 00:12:05,920 --> 00:12:08,920 Speaker 1: a survey and they found that the Jeep Wrangler, it 257 00:12:09,000 --> 00:12:12,320 Speaker 1: takes the top two spots, is two different models when 258 00:12:12,360 --> 00:12:15,640 Speaker 1: it comes to depreciation. Turns out, over five years, these 259 00:12:15,679 --> 00:12:18,880 Speaker 1: puppies they only lose something like seven to nine percent 260 00:12:18,960 --> 00:12:22,719 Speaker 1: of their value, which is incredibly impressive, especially when you 261 00:12:22,760 --> 00:12:26,640 Speaker 1: consider the national average, which is closer to thirty three. Uh. 262 00:12:26,640 --> 00:12:29,319 Speaker 1: And so we felt this is worth jarry because this 263 00:12:29,400 --> 00:12:32,040 Speaker 1: is why we are so keen on our listeners out 264 00:12:32,040 --> 00:12:34,840 Speaker 1: there to buy these older cars that have already taken 265 00:12:34,880 --> 00:12:38,600 Speaker 1: a significant depreciation hit, because yeah, you know, with the 266 00:12:38,640 --> 00:12:40,640 Speaker 1: with the average new cars selling for like close to 267 00:12:40,720 --> 00:12:45,040 Speaker 1: fifty thou dollars, you're losing like nearly sixteen thousand dollars 268 00:12:45,040 --> 00:12:49,120 Speaker 1: just in depreciation alone over those for a few years. Uh. 269 00:12:49,600 --> 00:12:53,240 Speaker 1: Some fancier luxury cars out there, like uh like Beamers, Jaguars, 270 00:12:53,520 --> 00:12:56,040 Speaker 1: they have models that lose more than fifty percent of 271 00:12:56,160 --> 00:12:58,920 Speaker 1: their of their value in that time, which is insane. 272 00:12:59,200 --> 00:13:02,480 Speaker 1: We're talking like thirty two fifty dollars in the case 273 00:13:02,520 --> 00:13:04,920 Speaker 1: of this vehicle just in depreciation costs that you're eating 274 00:13:05,000 --> 00:13:08,320 Speaker 1: over a few years times ridiculous. Yeah, it's it's it's 275 00:13:08,400 --> 00:13:11,480 Speaker 1: not a cost that car buyers often consider, but you know, 276 00:13:11,760 --> 00:13:15,000 Speaker 1: money savvy folks out there will minimize the depreciation hit 277 00:13:15,040 --> 00:13:17,960 Speaker 1: that they take on with their automobiles with the purchases 278 00:13:18,120 --> 00:13:19,920 Speaker 1: that they're making, and it makes all the sense in 279 00:13:19,960 --> 00:13:21,480 Speaker 1: the world too. Like I was thinking about how the 280 00:13:21,520 --> 00:13:24,920 Speaker 1: fact that the Jeep Wrangler, it has such an iconic look, 281 00:13:25,360 --> 00:13:28,200 Speaker 1: it makes sense that they're not going down in value, 282 00:13:28,240 --> 00:13:30,800 Speaker 1: they're not depreciating because they look the same. They they 283 00:13:30,840 --> 00:13:32,400 Speaker 1: look the same now that as they did a few 284 00:13:32,440 --> 00:13:34,720 Speaker 1: years ago, that they can barely tell years ago, the eighties, 285 00:13:34,760 --> 00:13:37,640 Speaker 1: the nineties, early things. They look very love it as 286 00:13:37,640 --> 00:13:41,080 Speaker 1: opposed to some of these more luxury models, where I 287 00:13:41,080 --> 00:13:44,440 Speaker 1: mean they're updating them constantly, and because they're luxury brands, 288 00:13:44,760 --> 00:13:46,880 Speaker 1: what you're seeing am I like? It's it's a status 289 00:13:46,880 --> 00:13:49,400 Speaker 1: symbol essentially, right, Like you are only buying the new 290 00:13:49,480 --> 00:13:52,000 Speaker 1: thing because you can afford it. And what you're demonstrating 291 00:13:52,080 --> 00:13:54,080 Speaker 1: to your neighbors and the people you're passing on the 292 00:13:54,080 --> 00:13:57,840 Speaker 1: freeway is that, oh, I have the ability to spend 293 00:13:57,840 --> 00:14:00,640 Speaker 1: this kind. It's it's conspicuous consumption based, like you don't 294 00:14:00,679 --> 00:14:03,200 Speaker 1: have to buy that thing, but you're choosing to. But dang, 295 00:14:03,360 --> 00:14:06,720 Speaker 1: what an expensive way to signal how much money you got. Well, 296 00:14:06,880 --> 00:14:08,880 Speaker 1: I don't like it, and and sad you're right that 297 00:14:08,920 --> 00:14:11,120 Speaker 1: most people don't think about card appreciation and they don't 298 00:14:11,160 --> 00:14:15,240 Speaker 1: factor that into they're sort of overall net worse and 299 00:14:15,280 --> 00:14:16,679 Speaker 1: so they're just like, oh, I'm just gonna upgrade my 300 00:14:16,760 --> 00:14:18,319 Speaker 1: vehicle when I need one or when I want one. 301 00:14:18,679 --> 00:14:21,960 Speaker 1: But if the most money savvy folks consider their cars 302 00:14:22,000 --> 00:14:24,360 Speaker 1: as an expense and they take card appreciation into account 303 00:14:24,560 --> 00:14:27,640 Speaker 1: because it is when you look at that headline number. Oh, 304 00:14:27,760 --> 00:14:29,800 Speaker 1: if you tell someone you're gonna lose sixteen dollars over 305 00:14:29,800 --> 00:14:31,520 Speaker 1: the next three or four years because that car is 306 00:14:31,520 --> 00:14:33,200 Speaker 1: going to go down and value, Like, that's just not 307 00:14:33,280 --> 00:14:35,760 Speaker 1: something that registers in the same way as gas prices 308 00:14:35,800 --> 00:14:38,720 Speaker 1: as we're driving around town. But it should, it should 309 00:14:38,720 --> 00:14:41,720 Speaker 1: be factored more into our decision than gas prices because 310 00:14:41,760 --> 00:14:44,000 Speaker 1: it's gonna cost us more than gas will over three 311 00:14:44,080 --> 00:14:46,000 Speaker 1: years too. So yeah, it's it's it's almost as if 312 00:14:46,000 --> 00:14:47,920 Speaker 1: at the new dealership lots, you know, just like you 313 00:14:47,960 --> 00:14:51,200 Speaker 1: have the big signs and you know five point font 314 00:14:51,200 --> 00:14:53,400 Speaker 1: that tells you the prices down. What if they just 315 00:14:53,440 --> 00:14:56,360 Speaker 1: had the average depreciation of the vehicles that happen to 316 00:14:56,400 --> 00:14:58,080 Speaker 1: be on this lot. No, they're not going to they 317 00:14:58,080 --> 00:15:00,240 Speaker 1: don't want to make that public. Completely change to the 318 00:15:00,240 --> 00:15:03,960 Speaker 1: game and how it is that folks approach, especially by 319 00:15:04,000 --> 00:15:06,720 Speaker 1: new vehicles, and it should, it should impact which vehicle 320 00:15:06,800 --> 00:15:08,760 Speaker 1: we purchase, but it should also impact the age of 321 00:15:08,880 --> 00:15:12,040 Speaker 1: vehicle we decide to purchase. And and if you if 322 00:15:12,080 --> 00:15:13,960 Speaker 1: you're in money gear six or seven and you've got 323 00:15:14,160 --> 00:15:15,920 Speaker 1: you've got the money on hand to pay cash for 324 00:15:15,960 --> 00:15:18,160 Speaker 1: one of these nighttrare vehicles and you don't care or 325 00:15:18,200 --> 00:15:19,920 Speaker 1: you plan to drive it for a really long time, 326 00:15:20,320 --> 00:15:22,160 Speaker 1: then it's a different story. And I think you can 327 00:15:22,200 --> 00:15:24,640 Speaker 1: make that decision, but make it with your eyes wide open. Yeah, 328 00:15:24,720 --> 00:15:26,080 Speaker 1: I don't even I don't even think you have to 329 00:15:26,080 --> 00:15:27,840 Speaker 1: be in that high of money here, because if it's 330 00:15:27,840 --> 00:15:30,040 Speaker 1: like your splurge and you've got the money set aside 331 00:15:30,120 --> 00:15:33,040 Speaker 1: in order to make that purchase, I'm okay with someone 332 00:15:33,120 --> 00:15:36,000 Speaker 1: who isn't a big time earner if it's something that 333 00:15:36,040 --> 00:15:38,800 Speaker 1: they've saved up toward over the over a course of years. 334 00:15:38,960 --> 00:15:40,360 Speaker 1: At some point, we came up with the rule of 335 00:15:40,400 --> 00:15:43,680 Speaker 1: thumb to help folks like measure their income plus their 336 00:15:43,720 --> 00:15:45,320 Speaker 1: net worth or something like that. We ought to scrape 337 00:15:45,360 --> 00:15:47,920 Speaker 1: that back up um. But it just depends on who 338 00:15:47,960 --> 00:15:49,800 Speaker 1: you are and the type of value that you put 339 00:15:49,840 --> 00:15:52,080 Speaker 1: on new vehicles. I like, I guess I'm saying this 340 00:15:52,080 --> 00:15:54,080 Speaker 1: because I mean, we're kind of crapping all our luxury 341 00:15:54,120 --> 00:15:55,720 Speaker 1: cars and I don't want to. I don't want to 342 00:15:55,800 --> 00:15:58,000 Speaker 1: yuck on someone else's yum. But you need to make 343 00:15:58,040 --> 00:16:00,080 Speaker 1: sure that you are in the financial position to be 344 00:16:00,120 --> 00:16:01,480 Speaker 1: able to handle that kind of and even if you 345 00:16:01,480 --> 00:16:03,240 Speaker 1: have the cash, like make sure, okay, cool, do I 346 00:16:03,240 --> 00:16:06,720 Speaker 1: want my this asset I'm buying to depreciate this rapidly 347 00:16:07,040 --> 00:16:09,480 Speaker 1: and to basically like sink half of what I put 348 00:16:09,520 --> 00:16:12,680 Speaker 1: into it. It's gone, it's evaporated. And that's okay. It's 349 00:16:12,680 --> 00:16:14,840 Speaker 1: okay to do that as long as you know that's 350 00:16:14,840 --> 00:16:16,880 Speaker 1: what you're getting into. But let's talk let's talk about 351 00:16:16,920 --> 00:16:19,000 Speaker 1: health health care for a second map because open enrollment 352 00:16:19,040 --> 00:16:22,040 Speaker 1: is happening nationwide right now, and we've we've talked about 353 00:16:22,240 --> 00:16:24,280 Speaker 1: a couple of helpful solutions over the years. If you 354 00:16:24,320 --> 00:16:27,640 Speaker 1: don't have insurance through your employer, if you're buying on 355 00:16:27,800 --> 00:16:30,400 Speaker 1: the open marketplace, a lot of folks are actually gonna 356 00:16:30,400 --> 00:16:32,920 Speaker 1: find that healthcare dot gov is the best place to turn. 357 00:16:33,280 --> 00:16:36,480 Speaker 1: But so much depends on your specific situation, your household size, 358 00:16:36,680 --> 00:16:41,200 Speaker 1: and your income in particular, like how inexpensive your your 359 00:16:41,200 --> 00:16:43,120 Speaker 1: healthcare plan is actually going to be. And we would 360 00:16:43,120 --> 00:16:44,560 Speaker 1: say it's well worth your time to go through the 361 00:16:44,560 --> 00:16:46,920 Speaker 1: steps in order to get quotes because of the extensive 362 00:16:47,080 --> 00:16:50,560 Speaker 1: subsidies that the federal government is currently offering. And I 363 00:16:50,560 --> 00:16:53,320 Speaker 1: found this really helpful calculator mat over at the Kaiser 364 00:16:53,360 --> 00:16:56,040 Speaker 1: Family Foundation, which can help people figure out what they're 365 00:16:56,040 --> 00:16:58,400 Speaker 1: likely subsidies are going to be, what they're gonna qualify for, 366 00:16:58,840 --> 00:17:01,880 Speaker 1: and how much that's actually gonna lower your premium amount. 367 00:17:02,360 --> 00:17:05,240 Speaker 1: Because if you go through Healthcare dot go first and foremost, 368 00:17:05,520 --> 00:17:07,400 Speaker 1: you're gonna have to submit a lot of information. It's 369 00:17:07,400 --> 00:17:10,720 Speaker 1: gonna take probably minutes to fill out that application. So 370 00:17:10,760 --> 00:17:14,480 Speaker 1: if you watch just like a quick idea understanding of 371 00:17:14,560 --> 00:17:16,840 Speaker 1: what you're likely to pay once you go through all 372 00:17:16,840 --> 00:17:20,200 Speaker 1: those steps, well that Kaiser Family Foundation calculator can really 373 00:17:20,200 --> 00:17:23,520 Speaker 1: help you assess that based on literally just thirty seconds 374 00:17:23,560 --> 00:17:26,320 Speaker 1: of plugging plugging stuff in. So I think it's really helpful. 375 00:17:26,359 --> 00:17:29,199 Speaker 1: As people are are shopping the open market, they want 376 00:17:29,200 --> 00:17:31,440 Speaker 1: to save money on premiums. They also want to limit 377 00:17:31,440 --> 00:17:33,840 Speaker 1: their overall health care expenses for the year. I think 378 00:17:33,840 --> 00:17:35,879 Speaker 1: this calculator can really help people, you know, make the 379 00:17:35,960 --> 00:17:39,840 Speaker 1: most of their healthcare budget. That's right. And what if 380 00:17:39,880 --> 00:17:43,439 Speaker 1: though you've got insurance through your employer, Well that's not 381 00:17:43,480 --> 00:17:48,120 Speaker 1: necessarily cheap either. Healthcare price shock like this is still 382 00:17:48,119 --> 00:17:50,840 Speaker 1: a reality for many folks who are in that scenario 383 00:17:51,160 --> 00:17:53,919 Speaker 1: where you're expecting you know, I don't know. It depends 384 00:17:53,920 --> 00:17:56,040 Speaker 1: on the employer that you're with. Some employers are covering 385 00:17:56,040 --> 00:17:58,399 Speaker 1: your healthcare costs all the way sale, but a lot 386 00:17:58,480 --> 00:17:59,680 Speaker 1: of them are. A lot of them are, though, and 387 00:17:59,720 --> 00:18:01,919 Speaker 1: you're still having to pay out of pocket, pay a 388 00:18:01,960 --> 00:18:03,840 Speaker 1: ton of money out of I talked to a friend recently, 389 00:18:03,880 --> 00:18:06,160 Speaker 1: Matt he you you automatically think that the people who 390 00:18:06,240 --> 00:18:10,119 Speaker 1: have health insurance through provided through their work, you know, 391 00:18:10,119 --> 00:18:12,399 Speaker 1: it's pretty easy for them, right, They gotta covered the employers. 392 00:18:12,840 --> 00:18:16,399 Speaker 1: It's kind of the default sixty assumption. But considering how 393 00:18:16,440 --> 00:18:18,720 Speaker 1: expensive healthcare has gotten, wasn't for him, even though well 394 00:18:18,760 --> 00:18:21,400 Speaker 1: it's his premiums were still like more than five bucks 395 00:18:21,400 --> 00:18:24,200 Speaker 1: a month first family like, it's still prohiably expensive even 396 00:18:24,200 --> 00:18:26,560 Speaker 1: for folks who are having it subsidized by their employer. 397 00:18:26,600 --> 00:18:28,359 Speaker 1: In anyways, Yeah, well, you know, the best way to 398 00:18:28,400 --> 00:18:30,560 Speaker 1: be able to lower your costs if you are in 399 00:18:30,600 --> 00:18:34,200 Speaker 1: that boat is to choose a high deductible healthcare plan 400 00:18:34,520 --> 00:18:36,920 Speaker 1: um at least for for some folks out there, because 401 00:18:36,960 --> 00:18:39,120 Speaker 1: a huge part of that there's the bonus that you'll 402 00:18:39,119 --> 00:18:41,480 Speaker 1: be able to sock money away into an hs A. 403 00:18:42,480 --> 00:18:44,119 Speaker 1: And by the way, make sure that if you do 404 00:18:44,200 --> 00:18:46,400 Speaker 1: have money in an hs say that you are actually 405 00:18:46,640 --> 00:18:49,840 Speaker 1: treating that account more like a retirement account. I was 406 00:18:49,960 --> 00:18:52,080 Speaker 1: talking about some folks this past weekend and we got 407 00:18:52,240 --> 00:18:53,959 Speaker 1: the to talking about h s A is like you do, 408 00:18:54,520 --> 00:18:56,840 Speaker 1: and I was surprised that nobody there knew that you 409 00:18:56,840 --> 00:18:58,760 Speaker 1: can actually invest the money that's in your h s 410 00:18:58,840 --> 00:19:01,560 Speaker 1: A as opposed to it sitting there as cash. Uh. 411 00:19:01,560 --> 00:19:04,000 Speaker 1: And so make sure to do that. It's the great secret. 412 00:19:04,240 --> 00:19:07,000 Speaker 1: It's yeah, triple tax advantage, baby. And those high deductible 413 00:19:07,040 --> 00:19:10,120 Speaker 1: healthcare plans, obviously they're gonna lower your premiums, but you're 414 00:19:10,119 --> 00:19:11,760 Speaker 1: gonna need to make sure that you've got more money 415 00:19:11,760 --> 00:19:16,240 Speaker 1: stocked away for those potential out of pocket expenses. And 416 00:19:16,640 --> 00:19:18,080 Speaker 1: one of the things that we've talked about when it 417 00:19:18,080 --> 00:19:20,280 Speaker 1: comes to insurance, Matt like a lot of these insurance 418 00:19:20,320 --> 00:19:23,800 Speaker 1: products are necessary for us to have to like protect 419 00:19:24,280 --> 00:19:26,240 Speaker 1: the smart financial moves we've been able to make. Right. 420 00:19:26,280 --> 00:19:29,399 Speaker 1: So something like life insurance, like term life insurance is important. 421 00:19:29,560 --> 00:19:31,520 Speaker 1: It's important to have health insurance right so in case 422 00:19:31,560 --> 00:19:35,000 Speaker 1: something catastrophic happens, like you're not completely wiped out, and 423 00:19:35,320 --> 00:19:37,000 Speaker 1: but the thing is too you want to make sure 424 00:19:37,080 --> 00:19:40,200 Speaker 1: you have the right coverage and that you're self insured 425 00:19:40,240 --> 00:19:42,800 Speaker 1: to a certain extent, limiting your out of pocket costs 426 00:19:43,000 --> 00:19:45,560 Speaker 1: hopefully over the years on average, and you might have 427 00:19:45,960 --> 00:19:49,480 Speaker 1: a year that requires more spending on healthcare, which which stinks. 428 00:19:49,480 --> 00:19:50,639 Speaker 1: You just have to be prepared for that. You have 429 00:19:50,680 --> 00:19:52,320 Speaker 1: to be self insured, have the money in the bank 430 00:19:52,560 --> 00:19:55,080 Speaker 1: to make sure that high deductible health plan is going 431 00:19:55,119 --> 00:19:56,840 Speaker 1: to work for you. You have to you have to 432 00:19:56,880 --> 00:20:00,600 Speaker 1: work in conjunction with it, saving and planning for as expenses. 433 00:20:01,080 --> 00:20:03,400 Speaker 1: But we've got more stories to get to you, Matt, 434 00:20:03,400 --> 00:20:05,639 Speaker 1: including we're gonna talk a little bit about what's happening 435 00:20:05,880 --> 00:20:08,520 Speaker 1: in the housing market. Mortgage rates have actually come down 436 00:20:08,600 --> 00:20:10,680 Speaker 1: a little bit recently. Is that kind of what sort 437 00:20:10,680 --> 00:20:12,639 Speaker 1: of effect is that having. We'll talk about that and 438 00:20:12,720 --> 00:20:23,920 Speaker 1: more right after this. All right, we are back from 439 00:20:23,920 --> 00:20:26,160 Speaker 1: the break, and Joel will get to that housing halt 440 00:20:26,440 --> 00:20:28,199 Speaker 1: story here in a second. But first we've got our 441 00:20:28,520 --> 00:20:31,240 Speaker 1: ludicrous headline of the week, and this one is from 442 00:20:31,480 --> 00:20:36,360 Speaker 1: the New York Federal Reserve and it reads balances are 443 00:20:36,400 --> 00:20:39,200 Speaker 1: on the rise? So who's taking on more credit card debt? 444 00:20:40,640 --> 00:20:43,280 Speaker 1: Which I found kind of humorous. Joel, this is like 445 00:20:43,359 --> 00:20:47,119 Speaker 1: exactly the type of candid and playing spoken title that 446 00:20:47,119 --> 00:20:49,200 Speaker 1: you would expect from the Fed. UH, And so we're 447 00:20:49,200 --> 00:20:51,080 Speaker 1: here to pump it up a little bit, to take 448 00:20:51,080 --> 00:20:53,640 Speaker 1: it up a notch, jazz it up. I guess we've 449 00:20:53,640 --> 00:20:57,520 Speaker 1: talked about how the rate hikes, how they're impacting many 450 00:20:57,560 --> 00:21:00,000 Speaker 1: areas of our lives, and we're now seeing credit card 451 00:21:00,000 --> 00:21:04,000 Speaker 1: our delinquencies ticking up. Balances are on the rise in 452 00:21:04,040 --> 00:21:06,879 Speaker 1: a big way, UH, in large part due to increased 453 00:21:06,880 --> 00:21:10,320 Speaker 1: spending in higher aprs on your credit cards. Basically, the 454 00:21:10,560 --> 00:21:13,480 Speaker 1: cost of carrying that debt has gotten much more expensive, 455 00:21:13,920 --> 00:21:15,960 Speaker 1: and it's likely to go up even more in the 456 00:21:15,960 --> 00:21:18,439 Speaker 1: coming months. And so we are here to make a 457 00:21:18,440 --> 00:21:21,440 Speaker 1: big deal out of this tiny little headline that doesn't 458 00:21:21,440 --> 00:21:24,879 Speaker 1: sound very ludicrous, because this is fundamentally one of the 459 00:21:24,880 --> 00:21:26,640 Speaker 1: worst things that you can do with your money. It's 460 00:21:26,680 --> 00:21:29,639 Speaker 1: basically the opposite, the exact opposite of investing right well, 461 00:21:29,640 --> 00:21:32,200 Speaker 1: like where instead of receiving a solid rate of return, 462 00:21:32,280 --> 00:21:35,719 Speaker 1: you are paying out the nose for consumer purchases. We 463 00:21:35,760 --> 00:21:38,400 Speaker 1: want you to avoid credit card debt like the plague, 464 00:21:38,720 --> 00:21:40,840 Speaker 1: and if you have any, this is something that we 465 00:21:40,880 --> 00:21:44,280 Speaker 1: want you to focus on paying off. But yeah, we 466 00:21:44,359 --> 00:21:46,000 Speaker 1: thought this is a good story to focus on because 467 00:21:46,000 --> 00:21:48,680 Speaker 1: even though the headline in and of itself is not ludicrous. 468 00:21:48,720 --> 00:21:52,320 Speaker 1: The again, the underlying principle is what we're talking about here. 469 00:21:52,400 --> 00:21:54,879 Speaker 1: We want folks out of debt, in particular out of 470 00:21:54,880 --> 00:21:57,200 Speaker 1: credit card and it's not the word against credit cards, 471 00:21:57,200 --> 00:22:00,000 Speaker 1: Like using your credit cards judiciously is what we recommend. 472 00:22:00,000 --> 00:22:02,280 Speaker 1: In the wise use of credit cards, we actually think 473 00:22:02,280 --> 00:22:03,960 Speaker 1: that they're the best form of payment. Maybe will do 474 00:22:03,960 --> 00:22:07,600 Speaker 1: a whole episode on that soon, but we only it 475 00:22:07,720 --> 00:22:10,160 Speaker 1: only makes sense though, if you pay your credit card 476 00:22:10,200 --> 00:22:13,359 Speaker 1: off in full, on time at the end of the month. 477 00:22:13,600 --> 00:22:15,320 Speaker 1: But it's worth pointing out to that some credit cards 478 00:22:15,320 --> 00:22:18,160 Speaker 1: are better than others, and store credit cards actually suck 479 00:22:18,240 --> 00:22:21,120 Speaker 1: the most. Like those cards already come with higher rates 480 00:22:21,160 --> 00:22:24,080 Speaker 1: of interest, but with rates on the rise, some of 481 00:22:24,119 --> 00:22:26,000 Speaker 1: the interest rates on some of these store cards MATT 482 00:22:26,040 --> 00:22:30,800 Speaker 1: are topping. So whereas the average normal credit card, the 483 00:22:30,800 --> 00:22:34,440 Speaker 1: non store branding credit card is somewhere around like nineteen percent, 484 00:22:34,720 --> 00:22:36,639 Speaker 1: we're talking about some of the store cards being at thirties. 485 00:22:36,760 --> 00:22:40,160 Speaker 1: Which yeah, so just like every time you you buy 486 00:22:40,160 --> 00:22:42,080 Speaker 1: something with that store credit card and you don't pay 487 00:22:42,119 --> 00:22:44,280 Speaker 1: it off, you're paying a lot of money, a lot 488 00:22:44,280 --> 00:22:46,040 Speaker 1: of extra money for the item. You're buying. And so 489 00:22:46,040 --> 00:22:47,840 Speaker 1: while you might be tempted to open up a store 490 00:22:47,880 --> 00:22:51,160 Speaker 1: card while you're shopping this holiday season, know that their 491 00:22:51,200 --> 00:22:54,000 Speaker 1: inferior and that they come with worse terms, they come 492 00:22:54,000 --> 00:22:56,760 Speaker 1: with higher interest rates. So while we always we always 493 00:22:56,760 --> 00:22:58,679 Speaker 1: want you to avoid credit card debt, we want you 494 00:22:58,720 --> 00:23:01,440 Speaker 1: to avoid racking up debt on store cards even more 495 00:23:01,560 --> 00:23:04,000 Speaker 1: than we want you to avoid wracking up debt on 496 00:23:04,560 --> 00:23:07,880 Speaker 1: a regular credit card. But just avoiding debt on any 497 00:23:07,880 --> 00:23:10,800 Speaker 1: sort of plastic is ideal, Like that is the best 498 00:23:10,800 --> 00:23:13,160 Speaker 1: place to be. Absolutely, And going back to the top 499 00:23:13,200 --> 00:23:15,160 Speaker 1: of the show, when we're talking about Black Friday, don't 500 00:23:15,200 --> 00:23:17,760 Speaker 1: be tempted. You're you're, you're you might be getting ready 501 00:23:17,760 --> 00:23:20,080 Speaker 1: to stand in some checkoutline and they're gonna say, hey, 502 00:23:20,200 --> 00:23:22,360 Speaker 1: by the way, you can extra off if you sign 503 00:23:22,440 --> 00:23:25,200 Speaker 1: up for this card today. Well guess what you know yourself. 504 00:23:25,240 --> 00:23:27,640 Speaker 1: You know whether you can say, oh, yeah, by the way, 505 00:23:27,680 --> 00:23:29,960 Speaker 1: I will go ahead and basically take that equivalent of 506 00:23:30,000 --> 00:23:33,760 Speaker 1: a coupon, get this massive discount on this item, pay 507 00:23:33,760 --> 00:23:36,600 Speaker 1: it off, turn around, immediately close the card. That's one 508 00:23:36,600 --> 00:23:38,240 Speaker 1: type of person, but you also know if you're the 509 00:23:38,280 --> 00:23:40,720 Speaker 1: type who's going to keep that card around as one 510 00:23:40,720 --> 00:23:44,000 Speaker 1: of your oldest, most beloved credit cards, because it's just 511 00:23:44,359 --> 00:23:46,600 Speaker 1: how you operate. It's just, uh, maybe you're a creature 512 00:23:46,600 --> 00:23:49,760 Speaker 1: of habit. Maybe uh maybe maybe it would even tempt 513 00:23:49,800 --> 00:23:52,119 Speaker 1: you to spend more at that particular retailer because they 514 00:23:52,160 --> 00:23:55,560 Speaker 1: are regularly offering discounts to card holders. You just need 515 00:23:55,640 --> 00:23:57,400 Speaker 1: to make sure that you know yourself and like Joel said, 516 00:23:57,400 --> 00:23:59,359 Speaker 1: that you are using credit cards in a way that 517 00:23:59,480 --> 00:24:02,400 Speaker 1: is going to stimately net you the most down the road, 518 00:24:02,400 --> 00:24:04,160 Speaker 1: that's gonna nt you the most benefit, and that's gonna 519 00:24:04,320 --> 00:24:07,080 Speaker 1: further you along on your journey towards financial freedom. And 520 00:24:07,080 --> 00:24:08,760 Speaker 1: the only two store credit cards, by the way, that 521 00:24:08,800 --> 00:24:10,480 Speaker 1: are the exception to this rule, I would say our 522 00:24:10,520 --> 00:24:12,720 Speaker 1: targeting Amazon that I know of, because those are those 523 00:24:12,800 --> 00:24:15,679 Speaker 1: give you five percent cash back when you spend on 524 00:24:15,720 --> 00:24:18,080 Speaker 1: that credit card at those stores, and so some people 525 00:24:18,240 --> 00:24:20,800 Speaker 1: who really really like shopping at those stores, and I 526 00:24:20,840 --> 00:24:23,400 Speaker 1: think those cards can make sense. All the other ones 527 00:24:23,440 --> 00:24:25,720 Speaker 1: are basically crap. Yeah, and by the way, if anyone 528 00:24:25,720 --> 00:24:27,240 Speaker 1: when you use those ones, you've gotta be careful. Yeah. 529 00:24:27,240 --> 00:24:29,000 Speaker 1: I was gonna mention our credit cards tool, how do 530 00:24:29,080 --> 00:24:31,600 Speaker 1: many dot com forward slash credit cards? And if you 531 00:24:31,640 --> 00:24:34,479 Speaker 1: are right now looking for a specific card because you 532 00:24:34,520 --> 00:24:36,920 Speaker 1: are that that first type of person that I mentioned. 533 00:24:36,920 --> 00:24:38,560 Speaker 1: You are on top of it. You're organized, and you're 534 00:24:38,560 --> 00:24:40,600 Speaker 1: looking for the best rewards, maybe for the best sign 535 00:24:40,640 --> 00:24:42,680 Speaker 1: up bonus. Head over there, check out that tool. You 536 00:24:42,720 --> 00:24:45,359 Speaker 1: can click the sliders and find the card that's gonna 537 00:24:45,359 --> 00:24:47,280 Speaker 1: work best for you. Well, that's a good point because 538 00:24:47,280 --> 00:24:49,879 Speaker 1: a lot of in that checkout line, they're gonna on 539 00:24:49,920 --> 00:24:53,600 Speaker 1: this purchase of twenty dollars. So you're like seven sign 540 00:24:53,680 --> 00:24:56,639 Speaker 1: up bonus, right, They're gonna give you eight hundred dollars 541 00:24:56,640 --> 00:24:58,520 Speaker 1: the park sound nice when the Clark's telling you, but 542 00:24:58,600 --> 00:25:00,800 Speaker 1: the reality is they're way better perk for signing up 543 00:25:00,840 --> 00:25:02,320 Speaker 1: for when you take a step back and look at 544 00:25:02,320 --> 00:25:04,360 Speaker 1: the big picture. And that's right. Uh So that's kind 545 00:25:04,359 --> 00:25:06,680 Speaker 1: of some some bad news effect that we're seeing credit 546 00:25:06,680 --> 00:25:09,280 Speaker 1: card bounces on the rise. Some good news is that 547 00:25:09,400 --> 00:25:13,399 Speaker 1: fewer folks are unbanked these days than ever before. That's 548 00:25:13,640 --> 00:25:16,840 Speaker 1: largely thanks to the reality of stimulus checks. A couple 549 00:25:16,840 --> 00:25:19,439 Speaker 1: of years ago, many folks out there they opened up 550 00:25:19,480 --> 00:25:22,080 Speaker 1: a bank account in order to not have to wait 551 00:25:22,119 --> 00:25:24,840 Speaker 1: to get those funds in their hands. Uh, to have 552 00:25:24,920 --> 00:25:27,800 Speaker 1: those checks physically mailed to them. And so now we're 553 00:25:27,840 --> 00:25:29,760 Speaker 1: talking about less than five percent of homes in the 554 00:25:29,840 --> 00:25:32,959 Speaker 1: US not having a relationship with a bank. In a 555 00:25:32,960 --> 00:25:35,520 Speaker 1: decade ago when we were talking something that was closer 556 00:25:35,560 --> 00:25:38,480 Speaker 1: to the eight percent range of folks who are being unbanked. 557 00:25:38,840 --> 00:25:40,919 Speaker 1: And so this is great, right, Like not having a 558 00:25:40,960 --> 00:25:43,880 Speaker 1: relationship with a solid bank, that's going to cost you 559 00:25:44,480 --> 00:25:46,679 Speaker 1: in a variety of ways. Like I mean, first, folks, 560 00:25:46,720 --> 00:25:49,879 Speaker 1: they end up using even worse prepaid cards that come 561 00:25:49,920 --> 00:25:52,560 Speaker 1: with a variety of crappy fees. Uh. And then these 562 00:25:52,560 --> 00:25:56,199 Speaker 1: hooks are are often visiting like check cashing places that 563 00:25:56,200 --> 00:25:59,760 Speaker 1: that charge fees for access to their money as well. Uh. 564 00:25:59,840 --> 00:26:01,879 Speaker 1: We it. We actually included a map in this past 565 00:26:01,920 --> 00:26:05,200 Speaker 1: Tuesday's newsletter, but there are multiple states out there without 566 00:26:05,240 --> 00:26:08,600 Speaker 1: protections for victims who are paying an effective interest rate 567 00:26:08,600 --> 00:26:12,720 Speaker 1: in the six percent range. Unfathomable, like like we're complaining 568 00:26:12,720 --> 00:26:17,080 Speaker 1: about six hundred plus percent. It's mind blowing. Uh. And 569 00:26:17,119 --> 00:26:19,800 Speaker 1: so we wanted to share this story because being unbanked 570 00:26:20,160 --> 00:26:22,959 Speaker 1: it's a major issue, But now it's just actually becoming 571 00:26:23,200 --> 00:26:25,000 Speaker 1: less of a major issue. By the way, if you're 572 00:26:25,000 --> 00:26:27,960 Speaker 1: not signed up for the how to Money newsletter. Make 573 00:26:28,000 --> 00:26:29,800 Speaker 1: sure you sign up at how the Money dot com 574 00:26:29,840 --> 00:26:33,119 Speaker 1: forward slash newsletter before this next Tuesday. That way you 575 00:26:33,160 --> 00:26:36,320 Speaker 1: get those helpful financial nuggets of wisdom in your inbox. 576 00:26:36,400 --> 00:26:38,399 Speaker 1: Not only is it fun and free, but it's helpful 577 00:26:38,440 --> 00:26:40,600 Speaker 1: to all right. And basically when you're when you're with 578 00:26:40,600 --> 00:26:43,200 Speaker 1: a good bank, you've got better options available to you, right, Matt. 579 00:26:43,520 --> 00:26:46,120 Speaker 1: So folks who are unbanked, they are they're missing out 580 00:26:46,160 --> 00:26:48,320 Speaker 1: on the best options and they basically have to settle 581 00:26:48,400 --> 00:26:50,440 Speaker 1: for subpar options that cost them more of their money. 582 00:26:50,800 --> 00:26:53,679 Speaker 1: And we reachent a downward spiral when you are not 583 00:26:53,760 --> 00:26:56,280 Speaker 1: banking with a good bank, Fees, there's all these things, 584 00:26:56,280 --> 00:26:59,040 Speaker 1: and it's the poorest Americans typically who don't have a 585 00:26:59,040 --> 00:27:01,800 Speaker 1: relationship with the bank, and it's costing them money because 586 00:27:01,800 --> 00:27:03,720 Speaker 1: of that. And we recently saw we saw the average 587 00:27:03,720 --> 00:27:05,640 Speaker 1: interest rates on a one year c d are at 588 00:27:05,640 --> 00:27:08,120 Speaker 1: one point nine five percent. That status came out this week, 589 00:27:08,320 --> 00:27:10,000 Speaker 1: which is quite a bump in a really short period 590 00:27:10,040 --> 00:27:12,920 Speaker 1: of time because the average rate was less than half 591 00:27:12,920 --> 00:27:15,200 Speaker 1: a percent at the start of the year. So we've 592 00:27:15,240 --> 00:27:18,120 Speaker 1: seen just a massive uptick in rates paid for savers 593 00:27:18,160 --> 00:27:20,560 Speaker 1: on sami's accounts and c ds. But even though that's 594 00:27:20,560 --> 00:27:23,840 Speaker 1: the average at one you can easily find a rate 595 00:27:23,880 --> 00:27:26,040 Speaker 1: that's more than double that, north of four percent. C 596 00:27:26,240 --> 00:27:28,680 Speaker 1: I T is offering like four point one five percent 597 00:27:28,840 --> 00:27:31,160 Speaker 1: on a thirteen month CD. And the cool thing is 598 00:27:31,480 --> 00:27:34,240 Speaker 1: many of our favorite banks offer better CD products that 599 00:27:34,280 --> 00:27:36,800 Speaker 1: allow you to opt out without a penalty, or to 600 00:27:36,920 --> 00:27:39,359 Speaker 1: raise your rate if rates do go up. But the 601 00:27:39,400 --> 00:27:41,600 Speaker 1: starting rate on some of those products, by the way, 602 00:27:41,680 --> 00:27:44,359 Speaker 1: can can be lower. But but even though rates for 603 00:27:44,400 --> 00:27:47,480 Speaker 1: savers going up is a great thing, this doesn't necessarily 604 00:27:47,520 --> 00:27:49,680 Speaker 1: mean you should view c d s as a safe 605 00:27:49,680 --> 00:27:52,800 Speaker 1: alternative to investing in the market. Like so much comes 606 00:27:52,840 --> 00:27:55,520 Speaker 1: down to your time frame, right. If you've only got 607 00:27:55,560 --> 00:27:58,160 Speaker 1: a year of runway before you're going to need that money, 608 00:27:58,160 --> 00:28:01,479 Speaker 1: then sure sock it away in a CD. The just 609 00:28:01,520 --> 00:28:03,800 Speaker 1: give thanks that rates are so much better than they 610 00:28:03,840 --> 00:28:05,919 Speaker 1: have been. But if you can leave it alone for 611 00:28:05,960 --> 00:28:08,960 Speaker 1: more than a few years, then actually investing those dollars 612 00:28:09,000 --> 00:28:12,320 Speaker 1: in the stock market makes more sense. So for how 613 00:28:12,320 --> 00:28:14,639 Speaker 1: the money listeners who are in the wealth building phase 614 00:28:14,720 --> 00:28:17,399 Speaker 1: of their life, like c ds should be more of 615 00:28:17,440 --> 00:28:20,200 Speaker 1: a last ditch consideration even as rates go up and 616 00:28:20,240 --> 00:28:23,040 Speaker 1: they start to look more attractive. The truth is you're 617 00:28:23,240 --> 00:28:26,359 Speaker 1: almost inevitably going to come out ahead by investing in 618 00:28:26,480 --> 00:28:28,679 Speaker 1: the market in something like a seven to ten year 619 00:28:28,720 --> 00:28:32,280 Speaker 1: times fans, right, that's what history shows us. And although uh, 620 00:28:32,480 --> 00:28:35,280 Speaker 1: that's no guarantee for future results, as they often say, 621 00:28:35,520 --> 00:28:38,080 Speaker 1: it makes me yeah, it's basically CDs aren't one for 622 00:28:38,120 --> 00:28:41,040 Speaker 1: one substitute for investing. It makes me think of instant 623 00:28:41,120 --> 00:28:43,120 Speaker 1: cart and how like you see the different memes where 624 00:28:43,160 --> 00:28:45,760 Speaker 1: somebody's like hoping to get some flowers for their wife 625 00:28:45,800 --> 00:28:47,720 Speaker 1: or something like that, and instead they're like, how about 626 00:28:47,760 --> 00:28:50,400 Speaker 1: these bell peppers? That was like, no, no, no, no, 627 00:28:50,760 --> 00:28:53,640 Speaker 1: that is not a clear substitute. There is obviously something 628 00:28:53,720 --> 00:28:55,960 Speaker 1: that would have been a much better choice than getting 629 00:28:56,000 --> 00:28:58,840 Speaker 1: maybe the actual flight, like maybe not the the arrangement. 630 00:28:58,840 --> 00:29:00,719 Speaker 1: Maybe you could have gone for the one or two roses. 631 00:29:00,920 --> 00:29:02,720 Speaker 1: That's sort of what we're looking at here. A CD 632 00:29:02,880 --> 00:29:04,960 Speaker 1: is not a one for one replacement for an investment. 633 00:29:05,080 --> 00:29:07,360 Speaker 1: It's useful, just like a bell pepper is useful if 634 00:29:07,360 --> 00:29:10,480 Speaker 1: you're gonna make an omelet Saturday morning, but you just 635 00:29:10,520 --> 00:29:11,840 Speaker 1: need to make sure that you're looking at it with 636 00:29:11,880 --> 00:29:14,720 Speaker 1: those eyes. And like Joel said, your time horizon, your timeline. 637 00:29:14,760 --> 00:29:17,880 Speaker 1: That is an important factor to keep in mind. Let's 638 00:29:17,920 --> 00:29:20,200 Speaker 1: talk about housing for a second, and one more thing 639 00:29:20,200 --> 00:29:22,200 Speaker 1: on that. By the way, game, ibon rates are still 640 00:29:22,360 --> 00:29:24,880 Speaker 1: better than than CD rates. So it's good to see 641 00:29:24,920 --> 00:29:26,800 Speaker 1: CD rates sticking up. But you gotta lock that away 642 00:29:26,840 --> 00:29:29,120 Speaker 1: for twelve thirteen months anyway, and you can't touch it. 643 00:29:29,800 --> 00:29:31,520 Speaker 1: You give up that one month's worth of interest, which 644 00:29:31,560 --> 00:29:35,640 Speaker 1: is basically the same with with ibons and so. But 645 00:29:35,640 --> 00:29:38,440 Speaker 1: but rates are better on ibons right almost almost seven percent. 646 00:29:38,800 --> 00:29:40,840 Speaker 1: So that's still a great place for people to turn. 647 00:29:41,040 --> 00:29:43,600 Speaker 1: Even as ibon rates have gone down a little bit, 648 00:29:43,720 --> 00:29:47,120 Speaker 1: that's still a worthwhile place if you're looking to suck 649 00:29:47,240 --> 00:29:50,280 Speaker 1: cash away for something like twelve to eighteen months. All right, 650 00:29:50,320 --> 00:29:53,280 Speaker 1: let's get to the roofs that are over folks heads 651 00:29:53,360 --> 00:29:56,000 Speaker 1: or not over folks heads. Actually, because of the housing market, 652 00:29:56,040 --> 00:29:59,480 Speaker 1: it's in a weird spot right now, like still because 653 00:29:59,520 --> 00:30:02,479 Speaker 1: interest rates, although they have tacked down recently, like we said, like, 654 00:30:02,520 --> 00:30:05,680 Speaker 1: they are still sky high compared to what we have 655 00:30:05,720 --> 00:30:07,720 Speaker 1: seen in recent years. And so because of that, a 656 00:30:07,760 --> 00:30:10,800 Speaker 1: lot of buyers have found themselves sitting on the sidelines 657 00:30:11,160 --> 00:30:14,360 Speaker 1: because for them, affordability it's become a massive problem, and 658 00:30:14,360 --> 00:30:17,360 Speaker 1: they're waiting hoping that the price drops will help to 659 00:30:17,360 --> 00:30:20,000 Speaker 1: remedy that problem. And even if you did find a 660 00:30:20,040 --> 00:30:22,360 Speaker 1: place that you'd love that's listed for sale, there's no 661 00:30:22,440 --> 00:30:25,560 Speaker 1: guarantee that you could even purchase it because we're actually 662 00:30:25,600 --> 00:30:28,800 Speaker 1: seeing some tighter lending standards. Uh. That's this kind of 663 00:30:28,960 --> 00:30:31,960 Speaker 1: coming back into vogue, which means that it's even more 664 00:30:32,000 --> 00:30:35,200 Speaker 1: important to pay attention to things like your debt to 665 00:30:35,240 --> 00:30:38,680 Speaker 1: income ratio, to your credit score, making sure that your 666 00:30:38,720 --> 00:30:42,280 Speaker 1: capital one account isn't that the bank's not reducing you 667 00:30:43,320 --> 00:30:45,840 Speaker 1: at the worst possible time that's available to you. That's why, 668 00:30:45,920 --> 00:30:48,680 Speaker 1: like all of these small things matter. By the way, 669 00:30:48,720 --> 00:30:52,360 Speaker 1: supply remains incredibly low as well. There's just not enough 670 00:30:52,400 --> 00:30:54,960 Speaker 1: inventory out there. A lot of folks who are currently 671 00:30:54,960 --> 00:30:57,120 Speaker 1: own a home who have a three percent mortgage, they 672 00:30:57,120 --> 00:30:59,040 Speaker 1: don't want to move, or maybe they do, but they're 673 00:30:59,040 --> 00:31:01,280 Speaker 1: not going to because they because the rates are so sticking. 674 00:31:01,440 --> 00:31:03,480 Speaker 1: Get this bird in the hand is three percent mortgage, 675 00:31:03,520 --> 00:31:05,560 Speaker 1: And if I do go moving that place I really 676 00:31:05,560 --> 00:31:07,280 Speaker 1: want to be, I'm going to get a six and 677 00:31:07,280 --> 00:31:09,600 Speaker 1: a half to seven percent mortgage and it's just not 678 00:31:09,640 --> 00:31:12,480 Speaker 1: worth it, effectively paying way more for that house through 679 00:31:12,480 --> 00:31:14,560 Speaker 1: that payment. Yeah, it feels like that we're kind of 680 00:31:14,560 --> 00:31:17,760 Speaker 1: in this weird limbo stage of time. It feels like 681 00:31:17,760 --> 00:31:21,200 Speaker 1: like right a standoff. And you know like maybe if 682 00:31:21,240 --> 00:31:23,600 Speaker 1: the FED has started the hard work of raising interest 683 00:31:23,680 --> 00:31:26,480 Speaker 1: rates earlier, maybe we would not be in this uncomfortable 684 00:31:26,520 --> 00:31:28,280 Speaker 1: of a position. But I do think that we're going 685 00:31:28,320 --> 00:31:31,840 Speaker 1: to find a new equilibrium soon. Uh. And this is 686 00:31:32,040 --> 00:31:33,920 Speaker 1: I guess I want to be encouraging to to folks 687 00:31:33,960 --> 00:31:36,440 Speaker 1: out there who feel that they're in such a tight 688 00:31:36,480 --> 00:31:38,520 Speaker 1: spot right Like, so many of us like to make 689 00:31:38,520 --> 00:31:40,960 Speaker 1: sure that we're optimizing our finances in a way that 690 00:31:41,360 --> 00:31:44,000 Speaker 1: where we're always making the best financial decision. But I 691 00:31:44,040 --> 00:31:46,120 Speaker 1: guess what I want to point out is that life happen. 692 00:31:46,320 --> 00:31:49,480 Speaker 1: Happens like there are circumstances that dictate that we make 693 00:31:49,560 --> 00:31:52,840 Speaker 1: decisions even though they're not necessarily gonna be the most 694 00:31:52,920 --> 00:31:56,520 Speaker 1: optimized decision of all time. Ideally, yes, interest rates would 695 00:31:56,520 --> 00:31:59,680 Speaker 1: be crazy low, and for some reason, housing prices would 696 00:31:59,680 --> 00:32:02,440 Speaker 1: also low, and you're looking to move, but that's not 697 00:32:02,480 --> 00:32:04,720 Speaker 1: where we are right now. But you can't always make 698 00:32:04,920 --> 00:32:08,160 Speaker 1: life decisions purely based on the financials. It's not all 699 00:32:08,200 --> 00:32:10,160 Speaker 1: about money, and so for those out there who might 700 00:32:10,160 --> 00:32:12,800 Speaker 1: be wringing their hands and they're stressed about like what 701 00:32:12,840 --> 00:32:14,360 Speaker 1: are we gonna do, Like we have to move to 702 00:32:14,360 --> 00:32:17,320 Speaker 1: this new city because of family or this new job opportunity, 703 00:32:17,400 --> 00:32:19,440 Speaker 1: whatever it is that's drawing you to that city. I 704 00:32:19,480 --> 00:32:21,920 Speaker 1: guess I want to give you permission, assuming that you 705 00:32:21,920 --> 00:32:24,720 Speaker 1: can afford the house. Of course, Um, this isn't just 706 00:32:24,760 --> 00:32:28,120 Speaker 1: like a blanket statement where where essentially you're allowed to 707 00:32:28,160 --> 00:32:32,440 Speaker 1: buy whatever house you want because your emotions, financial fundamentals. 708 00:32:32,760 --> 00:32:34,520 Speaker 1: L said, it's okay, But I do want to give 709 00:32:34,520 --> 00:32:36,880 Speaker 1: some folks out their permission and do not feel bad 710 00:32:37,040 --> 00:32:40,000 Speaker 1: if they're making a purchase during a period of time 711 00:32:40,000 --> 00:32:42,360 Speaker 1: when it does not seem like it's the most wise 712 00:32:42,400 --> 00:32:44,160 Speaker 1: thing to do, because they have seen the past, they 713 00:32:44,200 --> 00:32:46,160 Speaker 1: have seen more markets have been but the fact is 714 00:32:46,200 --> 00:32:47,880 Speaker 1: that's just not where we are now. And so you 715 00:32:47,960 --> 00:32:49,480 Speaker 1: make need you need to make sure that you're looking 716 00:32:49,480 --> 00:32:51,880 Speaker 1: at some of those other some of those additional life 717 00:32:51,880 --> 00:32:54,640 Speaker 1: factors as well. Yeah, and there is the reality that 718 00:32:54,680 --> 00:32:58,120 Speaker 1: we could see home prices decline further, that this stalemate 719 00:32:58,200 --> 00:33:00,440 Speaker 1: sort of ends. That we have seen them told, yeah, 720 00:33:00,520 --> 00:33:02,440 Speaker 1: not a lot, just a little bit. They certainly have 721 00:33:02,480 --> 00:33:05,200 Speaker 1: come down since the peak back in June for existing homes. 722 00:33:05,240 --> 00:33:07,520 Speaker 1: Don't ask me for a prediction on where home prices 723 00:33:07,520 --> 00:33:08,960 Speaker 1: are going to be six months or now or a 724 00:33:09,000 --> 00:33:12,240 Speaker 1: year from now. But there could be a substantial drop 725 00:33:12,400 --> 00:33:15,000 Speaker 1: drop off when it comes to pricing. But we also 726 00:33:15,080 --> 00:33:17,320 Speaker 1: might not see that because we are seeing more of 727 00:33:17,320 --> 00:33:19,760 Speaker 1: those homeowners stay put with those three percent mortgage rads, 728 00:33:20,000 --> 00:33:21,560 Speaker 1: and so it could be a standoff for a while. 729 00:33:21,760 --> 00:33:23,480 Speaker 1: I don't know. So much has to do with where 730 00:33:23,480 --> 00:33:26,760 Speaker 1: mortgage rates end up in the next year as well, 731 00:33:27,120 --> 00:33:31,640 Speaker 1: So there is no predicting what happens, or effectively predicting 732 00:33:31,640 --> 00:33:33,800 Speaker 1: what happens. I guess a lot of people throwing predictions around, 733 00:33:33,960 --> 00:33:37,360 Speaker 1: but you need to do what's best for your your 734 00:33:37,440 --> 00:33:41,320 Speaker 1: specific situation, in your personal financial situation. Even though the 735 00:33:41,400 --> 00:33:44,160 Speaker 1: market looks like it's a really difficult market to buy 736 00:33:44,160 --> 00:33:46,080 Speaker 1: it and you're not sure whether you're making a smart move, 737 00:33:46,360 --> 00:33:49,800 Speaker 1: But the longer horizon you have for that home purchase, 738 00:33:50,120 --> 00:33:51,880 Speaker 1: the more it might make sense for you to buy, 739 00:33:51,960 --> 00:33:54,240 Speaker 1: even if you're unsure what's going to happen with prices 740 00:33:54,440 --> 00:33:56,120 Speaker 1: in the next year or two. If it's a place 741 00:33:56,160 --> 00:33:57,920 Speaker 1: you're gonna be for seven to ten years, then you 742 00:33:57,920 --> 00:34:00,600 Speaker 1: could feel confident I think making that per justice. Right, 743 00:34:01,120 --> 00:34:03,920 Speaker 1: as long as your income and fundamental support to purchase, 744 00:34:04,040 --> 00:34:06,440 Speaker 1: you're gonna be all right just hanging there. Yeah. But 745 00:34:06,600 --> 00:34:08,319 Speaker 1: what this really speaks to man is the need for 746 00:34:08,360 --> 00:34:11,160 Speaker 1: how the money listeners to be financially flexible, right, and 747 00:34:11,800 --> 00:34:15,960 Speaker 1: as economic conditions change, we have to make different decisions. 748 00:34:15,960 --> 00:34:17,799 Speaker 1: Like there's a lot of personal finance advice that we 749 00:34:17,800 --> 00:34:20,600 Speaker 1: discussed there really doesn't change no matter what's happening in 750 00:34:20,640 --> 00:34:23,759 Speaker 1: the broader economy, right, Like you always need to spend 751 00:34:23,800 --> 00:34:26,359 Speaker 1: less than you earn um. But there are other things 752 00:34:26,440 --> 00:34:29,440 Speaker 1: that you probably need to zig while other people are zagging, 753 00:34:29,520 --> 00:34:33,760 Speaker 1: or you need to change your approach when the economy 754 00:34:33,800 --> 00:34:35,880 Speaker 1: shifts when we're in a different economic cycle. And so 755 00:34:35,920 --> 00:34:38,960 Speaker 1: we're actually gonna talk about that on Wednesday's episode, How 756 00:34:38,960 --> 00:34:41,720 Speaker 1: to further your own wealth building efforts when the economy 757 00:34:41,800 --> 00:34:44,319 Speaker 1: isn't firing on all cylinders. Will kind of give more 758 00:34:44,320 --> 00:34:46,600 Speaker 1: of our thoughts on that. But the housing market is 759 00:34:46,640 --> 00:34:48,440 Speaker 1: one of those things right where people have to think 760 00:34:48,480 --> 00:34:50,600 Speaker 1: about it a little differently based on kind of the 761 00:34:50,640 --> 00:34:52,719 Speaker 1: cycle we're in and based on where prices and interest 762 00:34:52,800 --> 00:34:55,560 Speaker 1: rates are. That's right, Yeah, so we hope that everyone 763 00:34:55,560 --> 00:34:58,799 Speaker 1: out there has had a great holiday week. We've got 764 00:34:59,120 --> 00:35:01,640 Speaker 1: an exciting day ahead of us when it comes to 765 00:35:01,760 --> 00:35:06,000 Speaker 1: some US men's soccer. Go America, Go USA. So hopefully 766 00:35:06,000 --> 00:35:08,960 Speaker 1: you're cheering alongside Joel and I that it's something that 767 00:35:09,120 --> 00:35:11,759 Speaker 1: we definitely will do. You like the fact that the 768 00:35:11,760 --> 00:35:13,600 Speaker 1: World Cup is around the holidays, I kind of think 769 00:35:13,640 --> 00:35:15,840 Speaker 1: it's awesome. YEA. Like a lot of folks are like, 770 00:35:15,880 --> 00:35:18,520 Speaker 1: I can't believe it. This this holy sucks because soccer 771 00:35:18,719 --> 00:35:21,800 Speaker 1: the summer one very much means the other, I guess, 772 00:35:22,160 --> 00:35:25,520 Speaker 1: and it's kind of weird to have soccer playing around 773 00:35:25,520 --> 00:35:28,640 Speaker 1: Thanksgiving like this, But I actually really like it. It's 774 00:35:28,640 --> 00:35:30,720 Speaker 1: been all I don't really watch sports very much anymore 775 00:35:30,960 --> 00:35:34,640 Speaker 1: except for soccer, and so I know Thanksgiving, Thanksgiving is 776 00:35:34,640 --> 00:35:36,879 Speaker 1: a big time for football, Christmas is a big time 777 00:35:36,920 --> 00:35:39,200 Speaker 1: for basketball. But I'm like, I'm glad that soccer is 778 00:35:39,239 --> 00:35:41,920 Speaker 1: going to dominate some of these holiday watching spreeese. So 779 00:35:42,040 --> 00:35:44,399 Speaker 1: because yeah, I don't really care about the football game 780 00:35:44,520 --> 00:35:46,560 Speaker 1: that's one most of the time, but I do care 781 00:35:46,600 --> 00:35:48,680 Speaker 1: about this. Joel and I are or heretics. We're down 782 00:35:48,719 --> 00:35:50,719 Speaker 1: here in the state of Georgia and we're not the 783 00:35:50,760 --> 00:35:54,840 Speaker 1: biggest college football fans, even though yeah, you g a 784 00:35:55,000 --> 00:35:58,680 Speaker 1: my alma mater. From what I hear, they're crushing it. 785 00:35:59,320 --> 00:36:02,279 Speaker 1: Whip my on the floor with with other teams. But 786 00:36:02,560 --> 00:36:06,439 Speaker 1: hopefully George always plays Georgia Tech uh the Saturday after 787 00:36:06,560 --> 00:36:08,919 Speaker 1: Thanksgiving as well, so I'm sure it's not that won't 788 00:36:08,960 --> 00:36:12,520 Speaker 1: be my game, but I'll definitely be watching some World 789 00:36:12,640 --> 00:36:15,320 Speaker 1: Cup soccer. But we hope everyone has a fantastic weekend. 790 00:36:15,760 --> 00:36:19,200 Speaker 1: And Joel mentioned that episode next Wednesday, but we've also 791 00:36:19,239 --> 00:36:21,319 Speaker 1: got a great asked how the Money. The episode lined 792 00:36:21,400 --> 00:36:23,440 Speaker 1: up for you here on Monday, so we'll see you 793 00:36:23,480 --> 00:36:25,080 Speaker 1: back here then. We'll make sure to link to any 794 00:36:25,080 --> 00:36:28,040 Speaker 1: of the resources we may have mentioned during this episode 795 00:36:28,120 --> 00:36:29,680 Speaker 1: up in our show notes at how to money dot 796 00:36:29,719 --> 00:36:32,520 Speaker 1: com and Joel. Until next time, Best Friends Out, Best 797 00:36:32,560 --> 00:36:33,479 Speaker 1: Friends Out,