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Speaker 1: Welcome to had to Money. I'm Joel, I'm not and

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Speaker 1: this is your smart money guide for twenty twenty six.

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Speaker 2: You know what, buddy, is twenty twenty six. Let's go

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Speaker 2: New Year, New you. Baby. It's the first real day

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Speaker 2: of twenty twenty six. Well, it's not really the first

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Speaker 2: real day. It's the fifth, but it is. Though it's

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Speaker 2: your first real day. I think it's most people's first

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Speaker 2: real day of twenty twenty sixth you can't have the

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Speaker 2: you can't have New Year's Day be Thursday and expect

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Speaker 2: everyone to be like, Yeah, it's the new year, let's

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Speaker 2: be productive tomorrow in the office. That makes almost as

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Speaker 2: much sense as your kid's going back to school the

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Speaker 2: last last last fall on a Thursday, right, and then

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Speaker 2: we starting on a Friday, on a Friday, on an

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Speaker 2: actual Friday, which made even less sense. So we skipt

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Speaker 2: the first day of school. You're like, we're still going

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Speaker 2: to be at the beach. No judge, that was ridiculous,

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Speaker 2: I will say. Normally, so if folks haven't listened to

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Speaker 2: the podcast normally on Monday episodes, we hear directly from you,

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Speaker 2: our listeners. You would normally take a voice memo that

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Speaker 2: you can easily record on your phone and you email

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Speaker 2: it over to us. You say your name, you say

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Speaker 2: where you're from, because that's always fun. And I like

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Speaker 2: to google where it is that people live. People know

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Speaker 2: that at this point, which is actually bizarre. Yeah, the

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Speaker 2: last one she literally put her actual address so we

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Speaker 2: could I don't know, I don't want to go there,

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Speaker 2: but like the general town, if I haven't heard of

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Speaker 2: a town, I like to click around and get a

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Speaker 2: feel for it, see what they have to offer, see

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Speaker 2: if I want to go visit there at some point,

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Speaker 2: like if you know, if you're on a road trip

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Speaker 2: and you've heard of a small town. Matt's paying house

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Speaker 2: visits to listeners now, so get in there. But normally, yeah,

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Speaker 2: Monday episodes ask how to money episodes, we have the

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Speaker 2: voice memos and we you know, we were able to

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Speaker 2: directly answer listeners personal finance questions. But with this being

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Speaker 2: the first real episode of twenty twenty six, we wanted

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Speaker 2: to do something special.

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Speaker 1: You set the table a little bit for the coming year,

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Speaker 1: and so yeah, we'll have kind of some general thoughts

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Speaker 1: on getting your money together in twenty twenty six. Will

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Speaker 1: cover a little bit of the money gears. We'll talk

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Speaker 1: about maybe what to expect in twenty twenty six and

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Speaker 1: kind of maybe a little bit of the current state

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Speaker 1: of the economy will kind of yeah, hit a bunch

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Speaker 1: of things. Matt run through a bunch of things that

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Speaker 1: we think are important for people to consider as they're

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Speaker 1: thinking about their personal finances going into this year.

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Speaker 2: One. Does it Does it feel like there's too much

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Speaker 2: pressure on this episode because it's like the first it's

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Speaker 2: going to be the first perfect episode of the year.

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Speaker 2: I don't think so. I'm okay, you know, I don't know.

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Speaker 2: You were talking to me earlier like this is gonna

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Speaker 2: be a good one. I'm like, I know what's going

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Speaker 2: to be a good one. But also, you know, you

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Speaker 2: can't pack it all otherwise we'd be sitting here for

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Speaker 2: like five hours, right if it's like and then we're

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Speaker 2: gonna have on a guest who's gonna deliver some brilliant nugget,

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Speaker 2: and then we're gonna answer some listener questions. You and

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Speaker 2: I are going to crush two Kraft beers.

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Speaker 1: Because that's why I said. This is setting the table.

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Speaker 1: It's like a nice tablecloth on top of the table.

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Speaker 1: There's no food or anything. It's like, it's kind of

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Speaker 1: going back to the basics in some ways.

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Speaker 2: We're bringing the food. There's going to be some actual

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Speaker 2: sustenance here. This isn't just fluff, all right, No, that's

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Speaker 2: not what you meant, not what I just that's not

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Speaker 2: what I meant.

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Speaker 1: I think one of the things maybe I wanted to

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Speaker 1: suggest starting off as we're entering into a new year,

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Speaker 1: and one way to maybe at least start thinking effectively

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Speaker 1: about your finances for twenty twenty six is to reflect

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Speaker 1: on how things went last year.

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Speaker 2: Matt. I don't know.

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Speaker 1: About you, but like, yeah, what were your goals for

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Speaker 1: last year? How did you do in comparison to what

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Speaker 1: you'd set up to do? And then think about maybe

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Speaker 1: like what were the hurdles that got maybe thrust into

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Speaker 1: your path that frustrated you in your attempts to meet

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Speaker 1: those goals?

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Speaker 2: What sticks did you shove into your own spokes?

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Speaker 1: There's that too, right, How are you your own worst

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Speaker 1: enemy at times preventing you from being able to reach

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Speaker 1: that goal? And I'm sure all of us if we

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Speaker 1: do a little bit of thoughtful reflection, I think that

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Speaker 1: is one of the first good places to begin, because

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Speaker 1: it can help us then say, well, all right, now

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Speaker 1: that I know myself a little bit better, I know

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Speaker 1: how I did in comparison to what I want to

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Speaker 1: do last year. Maybe you're one of those incredibly disciplined

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Speaker 1: pace or you just got kind of lucky this year too.

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Speaker 1: Maybe your goal was like to grow your net worth

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Speaker 1: and like the say, the stock market doing well in

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Speaker 1: twenty twenty five really helps you to be able to

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Speaker 1: do that.

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Speaker 2: And it's but like, what were your goals?

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Speaker 1: How did you do in comparison to what those goals were?

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Speaker 1: I think is a really good, really good thing to

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Speaker 1: think through.

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Speaker 2: Yeah, I don't think we do enough reflecting as a culture.

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Speaker 2: Although with you know, with there being more attention being

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Speaker 2: paid towards mental health, I think folks are or at

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Speaker 2: least at least there's a whole lot of language around

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Speaker 2: it though. Right, how often are people actually sitting down

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Speaker 2: and reflecting and journaling and thinking about what happened? Not

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Speaker 2: only what happened, but then how do you feel about that? Right?

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Speaker 2: Because I think that that can have a larger impact

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Speaker 2: on your the steps that you take moving forward. It's

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Speaker 2: not just literally what happened and what goals you were

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Speaker 2: able to achieve and not achieve, but how are you

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Speaker 2: actually interpreting those results good or bad? And I think

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Speaker 2: that could have an impact on whether or not you

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Speaker 2: see yourself as, Oh, actually I'm a good investor, Oh

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Speaker 2: I'm a good saver, or I am a diligent worker.

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Speaker 2: This is what we're able to accomplish. And if you're

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Speaker 2: able to like internalize essentially some of those behaviors as

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Speaker 2: opposed to only fix, the results are good. Trust me,

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Speaker 2: Like I'm a data's guy, like I've got the Excel

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Speaker 2: spreadsheets going back. That is really important. But also to

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Speaker 2: sort of internalize some of the behavior that you set

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Speaker 2: out to achieve last year. I think that's really important,

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Speaker 2: and you might even find that you're able to hit

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Speaker 2: some of those goals and metrics that you wanted to hit.

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Speaker 2: And as you reflect back, you're like, man, I was

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Speaker 2: exhausted at the end of the year, and I needed

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Speaker 2: that break right like the fifth of January. I'm back

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Speaker 2: to work, like I'm a little worried because I don't

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Speaker 2: think I can keep up the pace and so maybe

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Speaker 2: you overdid it. Like that's even worth considering too. I

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Speaker 2: think for some people, especially people who listen to out

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Speaker 2: of money, Matt. They are like go getters, and so, yeah,

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Speaker 2: did you overdo it to the extent that maybe you

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Speaker 2: actually need to dial back some of those goals so

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Speaker 2: that you could live a little bit more of your life.

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Speaker 1: In the here and now. Totally, that's worth considering as well.

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Speaker 1: So and really, like the truth is, twenty twenty six

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Speaker 1: is going to be different than twenty twenty five. We're

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Speaker 1: going to face different challenges, different opportunities, and there were

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Speaker 1: a lot of both, Matt in twenty twenty five for

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Speaker 1: investors and for people trying to get smart with their money.

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Speaker 1: And I think that the more you have your eyes

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Speaker 1: on your money in a healthy way, the more you're

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Speaker 1: going to be ready for whatever challenges come your way,

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Speaker 1: and you're going to be able to take advantage of

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Speaker 1: opportunity when it strikes. Think about even just the beginning

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Speaker 1: of last year, and like it was tariffs, Man, they're

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Speaker 1: going to destroy the economy, And there was a lot of.

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Speaker 2: You shouldn't have sold I was telling you you shouldn't

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Speaker 2: sell out the bottom.

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Speaker 1: Joy See I didn't, And I was one of those

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Speaker 1: people who were like, man, tariffs are going to have

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Speaker 1: a massive impact. They had a more muted impact than

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Speaker 1: even I thought they would. It felt like a COVID blip.

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Speaker 2: Yeah, it did. Like honestly, it's like a mini little

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Speaker 2: COVID blip. When we look back, it's like similar actually

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Speaker 2: a lot of similarities, like kind of towards the beginning

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Speaker 2: of the year, just this false oh no, the world's ending.

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Speaker 2: But then in reality, oh, we are actually more resilient

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Speaker 2: than we think. And I think for economy, a lot

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Speaker 2: of investors, what the truth is, there are blips that

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Speaker 2: you can take advantage of, or there are ways that

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Speaker 2: maybe you might say, I don't know, man, that news

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Speaker 2: is freaking me out, or that agnostication prediction is freaking

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Speaker 2: me out, and so I'm going to invest less or

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Speaker 2: something like that. And then if you had done that,

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Speaker 2: if you had listened to those predictions, even then you

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Speaker 2: you would have missed out on ind abundance of returns totally. Yeah.

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Speaker 2: By the way, I want to mention too, you might

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Speaker 2: hear some leaf flowers in the background and Joel, Joel

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Speaker 2: almost called you something different what you want to call me?

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Speaker 2: I think that only speaks to kind of our like,

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Speaker 2: uh down homeness. We're just two dudes, best friends. We

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Speaker 2: record in this carriage house that we rent, and you

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Speaker 2: know what, We're surrounded by honestly beautiful like one hundred

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Speaker 2: year old oaks, but they drop a lot of leaves

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Speaker 2: and dude, I gotta hate the leaf blowers. They get

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Speaker 2: under my skin. They like find their way into like

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Speaker 2: my sinuses, like where the sound resonates rattles it around. Yeah.

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Speaker 1: No, And it's truly the bang of a podcast or existent.

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Speaker 2: Unless you live in the middle of some giant building

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Speaker 2: where there's no windows. But that's that's the other thing.

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Speaker 2: I mean. You can literally go to our website and

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Speaker 2: see a picture of us here recording. But like, I

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Speaker 2: love this space because we have windows to the outside

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Speaker 2: and the true real environment, the sunlight. Man, I don't know,

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Speaker 2: would you trade off having a view to the outside

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Speaker 2: world in order to have like perfect silence And no,

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Speaker 2: I don't think when I don't care that much about

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Speaker 2: it not sounding perfectly polished like a studio.

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Speaker 1: When I worked at a radio station, we had all

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Speaker 1: of these pristine recording studios that had no windows to

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Speaker 1: the outside world, and.

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Speaker 2: You come out of their pale and yeah, a lot

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Speaker 2: more terrible attached from the outside world. You feel like

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Speaker 2: a vampire. You feel like a vampire. How we roll

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Speaker 2: here well?

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Speaker 1: And Matt like, when we're talking about what this show is.

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Speaker 1: By the way, if you are new here, like, this

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Speaker 1: show is all about removing jargon, keeping things simple. We

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Speaker 1: want you to achieve financial independence. We talk about all

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Speaker 1: facets of money, from saving and investing to debt payoff

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Speaker 1: and intentional spending. We also touch a lot on the

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Speaker 1: behavior and the mindset stuff too, because that really does matter.

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Speaker 1: Your emotions factor into your money, maybe more than you

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Speaker 1: think they do, and we just we attempt to run

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Speaker 1: the gamut so that you can make meaningful changes.

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Speaker 2: In your life.

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Speaker 1: Deal for you is that money would become a less

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Speaker 1: painful endeavor, that you get more joy out of your

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Speaker 1: life because you handle money so effectively. We want everyone

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Speaker 1: listening to know that frugality does not equal deprivation.

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Speaker 2: Matt.

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Speaker 1: I think too often those two terms have become synonymous.

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Speaker 1: So you're telling me to become frual. You're telling me

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Speaker 1: that I need to hate my life. Not true. Frugality

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Speaker 1: can be fun. And want to give you thoughtful ways

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Speaker 1: to think about frugality and the truth is it can

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Speaker 1: lead to meaningful results, but it's also not frugality all

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Speaker 1: the way down.

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Speaker 2: That's not how we roll. It's not frugality on top

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Speaker 2: of frugality all the way down. No, by the way,

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Speaker 2: we didn't mention our beer, and I feel like we're

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Speaker 2: kind of all over because this is because I'm used

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Speaker 2: to like list our questions and just the structure that

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Speaker 2: comes with us. So because of that, I feel like

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Speaker 2: this is a little more free wheeling. But we do

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Speaker 2: enjoy a beer during every episode, and we're enjoying if

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Speaker 2: only to be thoughtless once more, which is an ipa

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Speaker 2: by burial. We're enjoying that and we're gonna share our

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Speaker 2: thoughts at the end of the episode. Why do we

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Speaker 2: drink beer on this podcast? Because we talk about our

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Speaker 2: craft beer equivalent. This is something that we are splurge

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Speaker 2: on in the here and here now, in the moment.

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Speaker 2: Is it the best use of our money? There's an

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Speaker 2: argument to be made that it is, because sure, we

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Speaker 2: can forego all the pleasures of life today in order

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Speaker 2: to invest in safe for larger amounts down the road.

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Speaker 2: But you got to find that balance for you as

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Speaker 2: an individual, how are you going to enjoy and embrace

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Speaker 2: and seize the day today while also preparing for the future,

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Speaker 2: and for us, craft beer is one of the ways

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Speaker 2: that we literally demonstrate that and enjoy it here on

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Speaker 2: the podcast.

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Speaker 1: It's the balance that we're trying to strike right It

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Speaker 1: is that like, let's be thoughtful and intentional about what

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Speaker 1: we want to achieve five, ten, twenty years down the road,

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Speaker 1: but not forget that we have a life to live

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Speaker 1: in the here and now. There's a lot of that,

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Speaker 1: I think in parts of the personal finance space, where

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Speaker 1: it's like nose to the grindstone, head down so that

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Speaker 1: you can achieve this massive savings rate in this goal

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Speaker 1: that you know it's at the end of the rainbow,

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Speaker 1: and really what happens for a lot of those years

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Speaker 1: it's a slog And I've met too many people who

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Speaker 1: went so dang hard for a slew of years that

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Speaker 1: it feels like they didn't even lift their head up

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Speaker 1: to enjoy their life. For like, for a lot of people,

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Speaker 1: it's it's in those like twenties and thirties that are

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Speaker 1: like years that you'll never get back when it comes

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Speaker 1: to forming relationships or making memories. So, just in case

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Speaker 1: you're wondering, we're not all about that lifestyle totally.

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Speaker 2: And you mentioned goals, Joe. So, Joel, why do I

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Speaker 2: almost keep saying, Joe, I think that's what I'm saying.

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Speaker 2: Am I speaking too quickly? Joel? My best buddy? I

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Speaker 2: need to actually appreciate a new best buddy that's okay

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Speaker 2: over the holidays. His name is Joseph. I was gonna

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Speaker 2: say you mentioned goals, and I'm guessing that a lot

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Speaker 2: of folks are already tired of hearing about people setting goals,

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Speaker 2: sitting smart goals, setting you know whatever goal acronym, strategy,

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Speaker 2: approach to setting your goals. But still, and we're only

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Speaker 2: going to spend a second on this, but I do

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Speaker 2: think asking what it is that you want to achieve

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Speaker 2: this year is just so important to hitting the mark. Joel.

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Speaker 2: You mentioned like review and kind of looking at how

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Speaker 2: you did last year, But it's equally important to maybe

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Speaker 2: have a conversation with your spouse or your significant other,

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Speaker 2: your part, or do this by yourself if that's where

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Speaker 2: you're at. But I just think writing those goals down

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Speaker 2: to make them concrete, enacting some sort of plan is

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Speaker 2: going to be so vital to you seeing progress and

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Speaker 2: then just keeping those goals just front of mind, like

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Speaker 2: like literally in front of your face. I think actually

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Speaker 2: you can literally write it on a post a note

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Speaker 2: stick on your mirror in order to help remind you

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Speaker 2: of that. But I think knowing what it is that

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Speaker 2: you want to achieve and then just knowing that that

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Speaker 2: is what is fueling you to get up every day,

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Speaker 2: get up earlier in order to work a little bit

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Speaker 2: harder to self deprivation a little bit. Right, Like you

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Speaker 2: talked about frugality, not spending in a way that's going

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Speaker 2: to allow you to sock away a little bit more.

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Speaker 2: Maybe you're trying to eliminate some debt and you know

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Speaker 2: that every dollar that you're not spending on yourself is

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Speaker 2: something that's buying you some of that financial peace of mind.

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Speaker 2: And I said paying down debt, But it could be anything, right,

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Speaker 2: Like the name of this episode is your smart money

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Speaker 2: guide for twenty twenty six, but this could also be

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Speaker 2: like your guide to being a first time home buyer.

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Speaker 2: This episode could be your guide to paying down debt.

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Speaker 2: It could be your guide to juicing your four O

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Speaker 2: and K. Guess what money is fungible and everything that

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Speaker 2: we're gonna talk about here on the show. Certainly in

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Speaker 2: this episode, but like for the rest of the year,

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Speaker 2: you can apply to whatever specific goals that you might

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Speaker 2: have in your life. And so keep that in mind.

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Speaker 2: We're not talking about money generically, but it is up

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Speaker 2: to you to figure out what it is that you

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Speaker 2: are that you're striving after, and hopefully, man, you really

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Speaker 2: do need to think about this, because it's not just

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Speaker 2: about increasing your net worth, right, Like, if you're somebody

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Speaker 2: and you're just fueled by seeing bigger number, good, Like

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Speaker 2: that's boring, you know, Like I hate to say it,

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Speaker 2: but like I don't want to hang out with that

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Speaker 2: kind of person, someone who is only interested in the stats.

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Speaker 2: Like I don't know. I'm sure you might know as

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Speaker 2: statistician who's very interesting and fun to be around, but

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Speaker 2: like getting invited to Matt's Super Bowl party, it's just well, actually,

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Speaker 2: I don't know. If you're playing the odds and you're

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Speaker 2: doing more betting, we won't get into that right now,

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Speaker 2: but I'm just saying that the people who are striving

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Speaker 2: after like audacious, really cool, fun things. That is interesting,

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Speaker 2: and I think that's what It just makes you a

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Speaker 2: more well rounded person. And if you haven't done the

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Speaker 2: work to identify what it is that you're making these

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Speaker 2: sacrifices for man.

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Speaker 1: That is your first step, and I think it's so easy.

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Speaker 1: The further along you get into the personal finance sphere

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Speaker 1: to you kind of start to understand how some of

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Speaker 1: these accounts work. You start to actually realize the impact

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Speaker 1: of compounding returns, and you're like, WHOA, that's really cool.

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Speaker 1: My money is starting to work really hard for me.

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Speaker 1: And at some point you even hit that place where

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Speaker 1: maybe your money is working harder for you than you

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Speaker 1: can work for it, and it's kind of enthralling. But

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Speaker 1: that is also we strive to recognize that's not the

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Speaker 1: end goal, because if that were the end goal, You're right, Matt,

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Speaker 1: that is a really boring end goal. The goal the

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Speaker 1: goal is to use that money to create a life

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Speaker 1: that you can enjoy, and part of that does take

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Speaker 1: some sacrifice now so you can set yourself up for

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Speaker 1: more options down the road. But it doesn't mean full

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Speaker 1: on deprivation now, that's for sure.

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Speaker 2: Totally agree, And I don't know, Matt.

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Speaker 1: I like the idea of coming a person who enjoys

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Speaker 1: saving or who sees the value in fugality instead of

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Speaker 1: like that kind of forced mechanism of like, I guess

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Speaker 1: I got a handcuff myself so I can make progress

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Speaker 1: with my money. Maybe instead of could your goal be

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Speaker 1: to become the kind of person who enjoys some of

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Speaker 1: those things. Maybe like, man, I gotta go to thrift

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Speaker 1: store to save money instead of buying it on my

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Speaker 1: favorite clothing retailer.

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Speaker 2: Well, maybe you can turn turn it into.

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Speaker 1: The fun of the hunt, right to find something that's

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Speaker 1: completely undervalue to the thrift store, like your favorite name

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Speaker 1: brand sweater or something like that that's five dollars instead of fifty. Like,

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Speaker 1: that's a cool perspective to take on going to the

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Speaker 1: thrift store.

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Speaker 2: That's my identity is shifting this place. There's still a.

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Speaker 1: Feeling like you have to or can you make cooking

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Speaker 1: at home more delightful because I think for a lot

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Speaker 1: of people it can feel really painful. How can you

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Speaker 1: set yourself up for success on that front? Because the

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Speaker 1: truth is, and we all know this, that eating out

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Speaker 1: has got become incredibly expensive. The more you do it,

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Speaker 1: the more money you are tossing down the drain. And

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Speaker 1: it's okay to carve some money out for that in

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Speaker 1: your budget, but maybe think of it as not just

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Speaker 1: something you have to do to save money, but something

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Speaker 1: that you can enjoy. Maybe whether it's like making the

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Speaker 1: meal together with your spouse or something like that. I mean,

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Speaker 1: whatever it is, I like the idea of becoming that

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Speaker 1: kind of person. Like, one of my goals this past

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Speaker 1: year was to run twelve hundred miles. And it wasn't

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Speaker 1: literally just to hit that number crazy. It was not

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Speaker 1: I have a friends who ran a lot more than that.

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Speaker 1: They're even crazier than I am.

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Speaker 2: But say, I feel like that's when there's like at

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Speaker 2: a certain point it's too much, but I feel like

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Speaker 2: you're not there yet.

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Speaker 1: Yeah, we'll see if I get there, I'll try to refrain.

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Speaker 1: I'll try to refrain. But like part of that goal

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Speaker 1: was yet to hit a numerical number at the end

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Speaker 1: of the rainbow. That was pretty arbitrary. But the other

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Speaker 1: goal for me, the main goal for me, was to

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Speaker 1: become the person. It wasn't like, oh, I'm training for

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Speaker 1: this one race that I want to do well in.

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Speaker 1: It was like, I want to be the kind of

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Speaker 1: person who in twelve hundred miles. Literally I said one

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Speaker 1: hundred miles a month because I wanted to be the

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Speaker 1: kind of person who was consistent doing it regularly and

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Speaker 1: and feeling you better because of it. You are a

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Speaker 1: runner because this is who you are as opposed This

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Speaker 1: is the kind of life that you're leading, as opposed

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Speaker 1: to some arbitrary goal, is what you're saying. So guess what,

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Speaker 1: the likelihood of me running like two hundred miles this

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Speaker 1: year is not high because I have become the kind

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Speaker 1: of person even though I don't actually I don't really

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Speaker 1: know what my running goal is yet for this year,

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Speaker 1: but I know it's not gonna be two hundred miles

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Speaker 1: because I'm just the kind of person who enjoys running now.

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Speaker 2: And I couldn't have said that four years ago. You've

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Speaker 2: moved past that. Yeah, Like I think what I hear

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Speaker 2: you saying is like it might be even worth considering

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Speaker 2: like a theme for your year. So for some people,

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Speaker 2: I think this could be the year of like, let's

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Speaker 2: say you just are looking for some more financial clarity, right,

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Speaker 2: like like you are someone who understands you've gained more

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Speaker 2: insight about your financial mechanic, like where things are going,

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Speaker 2: like the nuts and the bolts. Right. For others, I

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Speaker 2: think the thing could be like a year of more

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Speaker 2: intentional spending, especially if you found that you spent way

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Speaker 2: too much over Christmas and you need a bit of

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Speaker 2: a financial detox. But I really like this idea because

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Speaker 2: it's less focusing on a specific numerical goal. It's less

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Speaker 2: it's even less like, oh, I want to completely eliminate

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Speaker 2: my student loans this year, or some folks are just

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Speaker 2: like dudes, I'm so far away from being able to

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Speaker 2: purchase my first home right like, So these are all

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Speaker 2: the whole. These are all like the pot of gold

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Speaker 2: at the end of the rainbow kind of goals. And

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Speaker 2: what we're talking about instead are habits, and these are

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Speaker 2: behaviors that you can put into action now before you

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Speaker 2: even know what it is that you're looking to move towards.

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Speaker 2: We talk about big savings goals for folks and having

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Speaker 2: cash on hand in liquidity, and we always talk about

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Speaker 2: how our tastes change and something new comes on the

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Speaker 2: horizon and all of a sudden, I want a new

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Speaker 2: car or whatever it is, right, And if you have

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Speaker 2: worked towards building up just a savings bucket for something

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Speaker 2: that you don't even know what it is that you

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Speaker 2: want to spend on, yet, it's going to lead to

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Speaker 2: you being able to achieve that obviously much quicker. And

435
00:18:44,040 --> 00:18:46,800
Speaker 2: so in a similar way, this is I think by

436
00:18:47,000 --> 00:18:50,119
Speaker 2: lashing onto a theme of different behaviors or actions that

437
00:18:50,160 --> 00:18:52,440
Speaker 2: you might take, even without an end goal, I think

438
00:18:52,480 --> 00:18:54,840
Speaker 2: that that's going to get you closer to whatever end

439
00:18:54,880 --> 00:18:56,720
Speaker 2: goal it is that you might end up identifying. Yeah,

440
00:18:56,800 --> 00:18:58,800
Speaker 2: later this year or a couple of years from now,

441
00:18:58,840 --> 00:19:01,200
Speaker 2: but you are going to be in such a better

442
00:19:01,240 --> 00:19:04,919
Speaker 2: financial position because of, hopefully some of the things that

443
00:19:04,920 --> 00:19:05,520
Speaker 2: you've done here.

444
00:19:05,520 --> 00:19:07,199
Speaker 1: From listening to the podcast, it makes me think of

445
00:19:07,200 --> 00:19:09,440
Speaker 1: like families who come up with a motto, and I

446
00:19:09,480 --> 00:19:10,760
Speaker 1: think we did that in a while back. I don't

447
00:19:10,760 --> 00:19:12,040
Speaker 1: remember what it is now, Like I need to go

448
00:19:12,080 --> 00:19:14,920
Speaker 1: back and revisit that, because I've seen other families who

449
00:19:15,000 --> 00:19:16,760
Speaker 1: create one and they live by it right, And it's

450
00:19:16,800 --> 00:19:19,680
Speaker 1: like in this family, we prioritize this, and then when

451
00:19:19,760 --> 00:19:22,360
Speaker 1: you're trying to decide what you do with your time,

452
00:19:22,400 --> 00:19:24,879
Speaker 1: your efforts, and your money, it's really easy to revisit

453
00:19:24,880 --> 00:19:26,080
Speaker 1: that moto and be like, are we the kind of

454
00:19:26,119 --> 00:19:28,240
Speaker 1: family who does this thing? Yeah, because it's in our motto,

455
00:19:28,280 --> 00:19:30,840
Speaker 1: Like our motto says that we care about fun and

456
00:19:30,920 --> 00:19:33,400
Speaker 1: so of course we're going to get the season pass

457
00:19:33,440 --> 00:19:34,639
Speaker 1: to six Flags or whatever it is.

458
00:19:34,960 --> 00:19:35,840
Speaker 2: But we're also the.

459
00:19:35,760 --> 00:19:37,840
Speaker 1: Family who cares about generosity, but we're not the family

460
00:19:37,840 --> 00:19:40,560
Speaker 1: who cares about this. And so like, maybe a theme,

461
00:19:40,800 --> 00:19:43,920
Speaker 1: Maybe it's not this overarching, lifelong theme, but just a theme.

462
00:19:43,760 --> 00:19:44,640
Speaker 2: For the year.

463
00:19:44,680 --> 00:19:46,520
Speaker 1: And the truth is we go through seasons things ebb

464
00:19:46,520 --> 00:19:49,200
Speaker 1: and flow, So maybe this season is maybe this year

465
00:19:49,280 --> 00:19:51,680
Speaker 1: is like the year of less, a year of minimalism,

466
00:19:51,760 --> 00:19:54,320
Speaker 1: a year of decluttering. Maybe you know, maybe it is

467
00:19:54,400 --> 00:19:57,600
Speaker 1: the year where you're like, debt payoff, I'm going so hard,

468
00:19:57,680 --> 00:19:59,520
Speaker 1: like this is going to be the year where I

469
00:19:59,520 --> 00:20:01,960
Speaker 1: get rid of credit card debt finally and I'm done

470
00:20:02,000 --> 00:20:04,120
Speaker 1: with it for good. Like but I love that idea

471
00:20:04,160 --> 00:20:06,080
Speaker 1: of having a theme so that you could always revert

472
00:20:06,119 --> 00:20:09,000
Speaker 1: back and be like, does this jive this move that

473
00:20:09,040 --> 00:20:10,560
Speaker 1: I want to make with my money? Does this go

474
00:20:10,640 --> 00:20:12,439
Speaker 1: along with what I'm trying to accomplish this year? And

475
00:20:12,480 --> 00:20:15,919
Speaker 1: sometimes just a theme, a few words spoken over what

476
00:20:15,960 --> 00:20:17,800
Speaker 1: you want to happen this year can make all the

477
00:20:17,800 --> 00:20:19,240
Speaker 1: difference from a mindset perspective.

478
00:20:19,359 --> 00:20:22,119
Speaker 2: Totally agree. Let's keep this party going, though we're going

479
00:20:22,200 --> 00:20:23,479
Speaker 2: to take a quick break. But when we come back

480
00:20:23,480 --> 00:20:25,520
Speaker 2: from the break, we're going to talk about the money gears,

481
00:20:25,560 --> 00:20:28,200
Speaker 2: which is what you should be doing with your money

482
00:20:28,400 --> 00:20:30,600
Speaker 2: and when you should be taking those actions. We'll get

483
00:20:30,600 --> 00:20:40,800
Speaker 2: to that and more right after this. All right, we're

484
00:20:40,800 --> 00:20:42,080
Speaker 2: back and that in just a bit.

485
00:20:42,119 --> 00:20:43,720
Speaker 1: I want to talk let's talk about like the K

486
00:20:43,840 --> 00:20:46,800
Speaker 1: shaped economy and specifically kind of where things are happening

487
00:20:46,880 --> 00:20:49,119
Speaker 1: in what's happening in the economy right now, how people

488
00:20:49,160 --> 00:20:53,560
Speaker 1: can identify where they are on that spectrum, and how

489
00:20:53,600 --> 00:20:55,879
Speaker 1: we think that's like an informative way of thinking about things.

490
00:20:56,080 --> 00:20:58,240
Speaker 1: But let's get to the money gears.

491
00:20:58,280 --> 00:21:01,080
Speaker 2: Matt. I feel like the money gears is. It's basically,

492
00:21:01,080 --> 00:21:01,480
Speaker 2: if you go to.

493
00:21:01,480 --> 00:21:03,360
Speaker 1: The Ada money dot com you click start here, you'll

494
00:21:03,359 --> 00:21:05,720
Speaker 1: see the money gears, and it's been our way of

495
00:21:05,800 --> 00:21:08,760
Speaker 1: telling people an order of operations for your money so

496
00:21:08,800 --> 00:21:10,679
Speaker 1: you can figure out, well, where am I along this

497
00:21:10,800 --> 00:21:13,919
Speaker 1: spectrum in order to know what to do next. And

498
00:21:13,960 --> 00:21:15,720
Speaker 1: we call it the money gears because you and I

499
00:21:15,800 --> 00:21:16,800
Speaker 1: were fond of biking.

500
00:21:16,840 --> 00:21:19,399
Speaker 2: We love biking. We still bike all the time, but

501
00:21:19,720 --> 00:21:22,520
Speaker 2: biked here today, Will Okay, Yeah, I'm gonna explain it.

502
00:21:22,560 --> 00:21:24,840
Speaker 2: And the reason we call it the money gears is

503
00:21:24,880 --> 00:21:28,560
Speaker 2: because everyone knows. When you are at a standstill and

504
00:21:28,640 --> 00:21:31,000
Speaker 2: you need to get biking, do you start on the tallest,

505
00:21:31,200 --> 00:21:35,640
Speaker 2: most hardest, fastest gear. No, absolutely not in my fastest gear.

506
00:21:35,680 --> 00:21:37,560
Speaker 2: I mean also, I can't turn the pedals if you

507
00:21:37,560 --> 00:21:39,680
Speaker 2: would hurt yourself or you might even like break your bike.

508
00:21:39,760 --> 00:21:42,960
Speaker 2: I mean eventually, yes, you will get rolling, but it's

509
00:21:42,960 --> 00:21:46,200
Speaker 2: going to be like literally it could be painful. And

510
00:21:46,400 --> 00:21:51,000
Speaker 2: in a similar way, you could start with more sophisticated investing.

511
00:21:51,040 --> 00:21:52,760
Speaker 2: But you know what, if you don't have a basic

512
00:21:52,800 --> 00:21:55,600
Speaker 2: emergency fund set aside, there are gonna be setbacks. You

513
00:21:55,680 --> 00:21:57,440
Speaker 2: can essentially, when you're on a bike and you're on

514
00:21:57,480 --> 00:22:01,240
Speaker 2: the proper gear, you can achieve your goal destination a

515
00:22:01,280 --> 00:22:04,080
Speaker 2: lot more efficiently. You can, you can, I think, achieve

516
00:22:04,119 --> 00:22:06,760
Speaker 2: it much quicker and in a similar way, that's what

517
00:22:06,760 --> 00:22:09,680
Speaker 2: we think about the money gears. By going in order,

518
00:22:09,720 --> 00:22:11,560
Speaker 2: we think that you're going to be in a stronger

519
00:22:11,640 --> 00:22:12,359
Speaker 2: financial position.

520
00:22:12,400 --> 00:22:15,399
Speaker 1: So you mentioned emergency fund. That is always, always has been,

521
00:22:15,400 --> 00:22:18,399
Speaker 1: always will be money gear number one. We updated it

522
00:22:18,400 --> 00:22:20,679
Speaker 1: this past year though, because of inflation. We updated the

523
00:22:20,720 --> 00:22:24,880
Speaker 1: amount of money that you should be setting aside in

524
00:22:24,960 --> 00:22:27,959
Speaker 1: your high yield save music account and I'll tell you why.

525
00:22:28,000 --> 00:22:29,600
Speaker 1: I said hoig yield save us account just a second,

526
00:22:29,680 --> 00:22:32,360
Speaker 1: But it used to be two four hundred and six

527
00:22:32,520 --> 00:22:35,000
Speaker 1: and fifty seven. That's Arler, and that was because of

528
00:22:35,040 --> 00:22:37,359
Speaker 1: a survey by economists, and they said that most people

529
00:22:37,359 --> 00:22:40,160
Speaker 1: would be able to be able to get through an

530
00:22:40,200 --> 00:22:43,000
Speaker 1: everyday emergency with that kind of cash on hand for

531
00:22:43,080 --> 00:22:46,359
Speaker 1: without having to resort to using credit cards. Well adjusted

532
00:22:46,400 --> 00:22:48,639
Speaker 1: for inflation, that number is now three thousand and forty

533
00:22:48,680 --> 00:22:51,000
Speaker 1: five dollars. So that is the number we're rolling with

534
00:22:51,160 --> 00:22:53,760
Speaker 1: right now, thirty forty five. Yeah, So if you can,

535
00:22:54,280 --> 00:22:56,240
Speaker 1: if you haven't met this goal yet, that is going

536
00:22:56,280 --> 00:22:57,880
Speaker 1: to be the first thing on your to do list

537
00:22:57,920 --> 00:23:00,760
Speaker 1: is to find a way to slowly, surely get that

538
00:23:00,800 --> 00:23:02,680
Speaker 1: money in a high old saves account. I say high

539
00:23:02,680 --> 00:23:05,159
Speaker 1: old Saves account Matt too, because you and I were

540
00:23:05,200 --> 00:23:07,880
Speaker 1: not fans of the big banks. They don't pay much

541
00:23:07,880 --> 00:23:11,119
Speaker 1: on your money. They often have fees that are associated

542
00:23:11,119 --> 00:23:13,679
Speaker 1: with your account that some of our favorite online banks

543
00:23:13,760 --> 00:23:17,320
Speaker 1: do not. You could find those references to those our

544
00:23:17,320 --> 00:23:19,959
Speaker 1: favorite online banks up on our website. But this is

545
00:23:20,359 --> 00:23:22,600
Speaker 1: this is the first money gear and it is literally

546
00:23:22,640 --> 00:23:25,200
Speaker 1: like the easiest way to get going it's gonna save

547
00:23:25,240 --> 00:23:28,639
Speaker 1: you a lot of potential headaches down the road, if

548
00:23:28,680 --> 00:23:31,480
Speaker 1: you like, If you don't have liquid cash on hand,

549
00:23:31,760 --> 00:23:35,679
Speaker 1: it just puts you in a plethora of uncomfortable situations.

550
00:23:35,800 --> 00:23:38,560
Speaker 2: That's right. So that's money gear number one. Money Gear two.

551
00:23:38,960 --> 00:23:41,320
Speaker 2: The next most important thing to do is to get

552
00:23:41,359 --> 00:23:44,560
Speaker 2: your company match if you have one available to you.

553
00:23:45,040 --> 00:23:47,200
Speaker 2: If you are getting let's say, like a fifty percent

554
00:23:47,280 --> 00:23:49,080
Speaker 2: or one hundred percent match in your four O one K,

555
00:23:49,600 --> 00:23:52,240
Speaker 2: there is no greater return on your money. And jel

556
00:23:52,280 --> 00:23:54,159
Speaker 2: do you know why I love money Gear number two

557
00:23:54,280 --> 00:23:56,480
Speaker 2: in the fact that it's the second thing that most

558
00:23:56,520 --> 00:23:59,280
Speaker 2: folks will pretty quickly be able to achieve. A side,

559
00:23:59,560 --> 00:24:02,359
Speaker 2: Why do you love this? Is it because plenty of reasons?

560
00:24:02,400 --> 00:24:04,160
Speaker 2: I love it? But why do you think I'm choosing

561
00:24:04,200 --> 00:24:07,800
Speaker 2: it right now asking I'm asking you to step into

562
00:24:07,800 --> 00:24:08,240
Speaker 2: my brain.

563
00:24:08,400 --> 00:24:10,680
Speaker 1: That's the next one in line. But also, I think

564
00:24:10,680 --> 00:24:12,200
Speaker 1: part of the reason you love this is because you've

565
00:24:12,200 --> 00:24:14,560
Speaker 1: ever had access to one. You always wanted a match.

566
00:24:14,760 --> 00:24:17,119
Speaker 2: That is true. Although you know we once we started

567
00:24:17,119 --> 00:24:20,520
Speaker 2: this company, we we technically have a solo four one

568
00:24:20,560 --> 00:24:23,520
Speaker 2: K and we matched, but you never had like that's

569
00:24:23,520 --> 00:24:25,560
Speaker 2: still us A third party. Yeah. Yeah, it's just me

570
00:24:25,720 --> 00:24:27,800
Speaker 2: taking off my employer hat and put taking off my

571
00:24:27,800 --> 00:24:30,959
Speaker 2: employee hat podcaster hat and sticking on the What am

572
00:24:31,000 --> 00:24:34,560
Speaker 2: I the CFO slash co founder employeer hat? I'll call

573
00:24:34,600 --> 00:24:36,800
Speaker 2: you the CEO. I don't know if that's one, so

574
00:24:36,880 --> 00:24:39,080
Speaker 2: also co founder. No. The reason I love it so

575
00:24:39,160 --> 00:24:41,680
Speaker 2: much is because it is I'll be the c CEO,

576
00:24:41,800 --> 00:24:44,240
Speaker 2: the chief creative officer. How does that sound? Oh, what's

577
00:24:44,320 --> 00:24:48,520
Speaker 2: the CBA chief beer Officer. No. I really like it

578
00:24:48,560 --> 00:24:52,600
Speaker 2: because it gives folks a taste early on of what

579
00:24:52,600 --> 00:24:55,520
Speaker 2: it means to be an investor. Right. It gives you

580
00:24:55,560 --> 00:24:57,439
Speaker 2: a taste early on of what it might feel like

581
00:24:57,560 --> 00:25:01,040
Speaker 2: to have compounding returns work in your favor as opposed

582
00:25:01,040 --> 00:25:02,920
Speaker 2: to against you, which a lot of folks that's that's

583
00:25:02,920 --> 00:25:06,320
Speaker 2: how they experienced interest, Right. They experience having to pay

584
00:25:06,359 --> 00:25:09,919
Speaker 2: more for less as opposed to as opposed to the opposite. Right.

585
00:25:09,960 --> 00:25:12,760
Speaker 2: And so let's say you sock away like five thousand

586
00:25:12,760 --> 00:25:14,920
Speaker 2: bucks into your four to one K and you got

587
00:25:14,960 --> 00:25:17,000
Speaker 2: a match on you know, like five percent of your

588
00:25:17,040 --> 00:25:19,359
Speaker 2: salary or something like that, and you basically at the

589
00:25:19,400 --> 00:25:20,640
Speaker 2: end of the year you get to see that grow

590
00:25:20,680 --> 00:25:23,680
Speaker 2: from five thousand to ten thousand at least, that's assuming

591
00:25:24,160 --> 00:25:25,399
Speaker 2: zero percent return in the market.

592
00:25:25,400 --> 00:25:27,399
Speaker 1: That's just the employer match. And then let's say there

593
00:25:27,400 --> 00:25:28,200
Speaker 1: were returns.

594
00:25:27,880 --> 00:25:29,720
Speaker 2: On top of that. Let's say it might be even

595
00:25:29,760 --> 00:25:32,959
Speaker 2: more than that. Yeah, but like that's incredible, because early on,

596
00:25:33,040 --> 00:25:35,239
Speaker 2: I think it can be disheartening. I think it can

597
00:25:35,280 --> 00:25:38,080
Speaker 2: be demoralizing because you're working and you're like, oh, I

598
00:25:38,080 --> 00:25:39,639
Speaker 2: feel like I thought I was investing, and then you

599
00:25:39,680 --> 00:25:42,240
Speaker 2: look down. There's not a ton of money there. Man's

600
00:25:42,600 --> 00:25:46,160
Speaker 2: it's fully purely one hundred percent dependent again, nine hundred

601
00:25:46,160 --> 00:25:48,320
Speaker 2: percent dependent, Like there are some returns from the market,

602
00:25:48,680 --> 00:25:50,919
Speaker 2: but your ability to grow your net worth by you

603
00:25:51,280 --> 00:25:55,119
Speaker 2: sacrificing and you depositing that money into your account, Like,

604
00:25:55,160 --> 00:25:58,960
Speaker 2: that's what it's predominantly dependent on. And you don't really

605
00:25:58,960 --> 00:26:01,920
Speaker 2: get to experience those ways of compounding until much further

606
00:26:01,960 --> 00:26:04,000
Speaker 2: down the road, right where your money starts working harder

607
00:26:04,040 --> 00:26:06,640
Speaker 2: for you than you are. This is like a nice

608
00:26:06,640 --> 00:26:11,560
Speaker 2: little foretaste of things to come where you can say, oh, man,

609
00:26:11,640 --> 00:26:13,960
Speaker 2: not like there is and just an aspect of this

610
00:26:14,119 --> 00:26:17,000
Speaker 2: that I am able to appreciate now, knowing that it'll

611
00:26:17,040 --> 00:26:18,440
Speaker 2: be amplified even more down the road.

612
00:26:18,480 --> 00:26:21,000
Speaker 1: I remember those first years being an investor. I had

613
00:26:21,000 --> 00:26:23,200
Speaker 1: to trust what other people were saying to me that

614
00:26:23,320 --> 00:26:25,919
Speaker 1: compounding returns were coming down the pike, because hard to

615
00:26:25,920 --> 00:26:28,880
Speaker 1: believe it. It feels like, especially with like the low

616
00:26:28,960 --> 00:26:32,640
Speaker 1: salary I was making shoving six or eight percent, then

617
00:26:32,720 --> 00:26:35,360
Speaker 1: trying to grow it eventually into more. Putting that money

618
00:26:35,400 --> 00:26:37,399
Speaker 1: into the four one k. Getting a little bit of

619
00:26:37,440 --> 00:26:40,160
Speaker 1: a match, I was like, gosh, it still still feels paltry,

620
00:26:40,200 --> 00:26:42,680
Speaker 1: Like how I'm never going to get like become wealthy

621
00:26:43,000 --> 00:26:43,360
Speaker 1: this way?

622
00:26:43,440 --> 00:26:44,800
Speaker 2: Yeah, did you have much of a match?

623
00:26:45,000 --> 00:26:48,680
Speaker 1: I had a fifty percent match up to three percent?

624
00:26:48,680 --> 00:26:50,520
Speaker 1: So if I put in six, they put in three, Okay,

625
00:26:50,640 --> 00:26:52,840
Speaker 1: So I mean that's I would say that nothing. Actually,

626
00:26:52,880 --> 00:26:57,000
Speaker 1: probably the average people are exactly expecting. And I've heard

627
00:26:57,000 --> 00:26:59,920
Speaker 1: from more people actually this past year where their matt

628
00:27:00,200 --> 00:27:02,159
Speaker 1: got cut. And that's a tough position to be in.

629
00:27:02,200 --> 00:27:04,119
Speaker 1: But I think, give you know where things are with

630
00:27:04,160 --> 00:27:06,520
Speaker 1: the economy, you might see more employers doing that. Then

631
00:27:06,560 --> 00:27:08,080
Speaker 1: you have to like reassess how much I'm going to

632
00:27:08,119 --> 00:27:09,760
Speaker 1: put in and how much is it worth it? But

633
00:27:09,800 --> 00:27:12,359
Speaker 1: I think money year number two taking advantage of the match.

634
00:27:12,400 --> 00:27:14,240
Speaker 2: You're right, it's you can't be the You can't be

635
00:27:14,280 --> 00:27:16,639
Speaker 2: that return on that money, man.

636
00:27:16,520 --> 00:27:19,440
Speaker 1: It's the free money. It's the investor mentality after that money.

637
00:27:19,480 --> 00:27:21,960
Speaker 1: Year number three is to work towards paying down high

638
00:27:22,000 --> 00:27:25,040
Speaker 1: interest credit card debt. And that was I think one

639
00:27:25,040 --> 00:27:27,119
Speaker 1: of the top stories of this past year, Matt, was

640
00:27:27,119 --> 00:27:30,200
Speaker 1: that credit card interest rates got worse, which means if

641
00:27:30,240 --> 00:27:32,680
Speaker 1: you have revolving credit card debt, it is doing more

642
00:27:32,760 --> 00:27:37,240
Speaker 1: damage to your finances than ever before. Instead of seventeen percent,

643
00:27:37,280 --> 00:27:40,080
Speaker 1: it's like twenty two percent right on your credit card.

644
00:27:40,200 --> 00:27:43,000
Speaker 1: It makes it harder to pay it off because you're

645
00:27:43,119 --> 00:27:46,040
Speaker 1: accruing more interest. Our thing here is to make a

646
00:27:46,080 --> 00:27:47,879
Speaker 1: plan to get it paid off quickly. And if you

647
00:27:47,920 --> 00:27:49,840
Speaker 1: feel like you're in over your head, you might want

648
00:27:49,840 --> 00:27:52,480
Speaker 1: to even turn to a nonprofit like Money Management International

649
00:27:52,600 --> 00:27:55,480
Speaker 1: or something like that. Think about the website undebt dot.

650
00:27:55,520 --> 00:27:57,320
Speaker 1: It is a good place to kind of create a

651
00:27:57,359 --> 00:27:59,680
Speaker 1: plan plot up. That's a few and like DII Wyatt.

652
00:28:00,240 --> 00:28:02,000
Speaker 2: Yeah, if you want a DIY and you still have

653
00:28:02,160 --> 00:28:04,040
Speaker 2: if you feel like it's not completely out of control,

654
00:28:04,080 --> 00:28:05,480
Speaker 2: that's a great great resource for me.

655
00:28:05,640 --> 00:28:08,119
Speaker 1: Yeah, and you can kind of have them list the

656
00:28:08,160 --> 00:28:10,600
Speaker 1: debts in order how much free cash do you have?

657
00:28:10,800 --> 00:28:13,399
Speaker 1: List out those debts and how long is it going

658
00:28:13,440 --> 00:28:14,720
Speaker 1: to take me to pay this debt off? I would

659
00:28:14,720 --> 00:28:17,440
Speaker 1: think that actually AI would probably be a good tool

660
00:28:17,640 --> 00:28:19,960
Speaker 1: for like in putting your debts and then saying, here's

661
00:28:19,960 --> 00:28:21,919
Speaker 1: how much free cash I have? HUW should I attack this?

662
00:28:22,280 --> 00:28:24,399
Speaker 2: Fascinating? I haven't done that yet. I've actually used it

663
00:28:24,440 --> 00:28:26,080
Speaker 2: for some other things where I'm like trying to figure

664
00:28:26,080 --> 00:28:28,360
Speaker 2: out Yeah some time. Doesn't that seem like that would

665
00:28:28,359 --> 00:28:30,760
Speaker 2: be a perfect agains awesome? Yeah, I would like to

666
00:28:30,760 --> 00:28:33,480
Speaker 2: think that, it would say, but depends on how you

667
00:28:33,520 --> 00:28:36,520
Speaker 2: see the world. Yeah, what's the kind of nuance that

668
00:28:36,560 --> 00:28:38,760
Speaker 2: you would expect to find here on how to money? Eachol? Right?

669
00:28:38,880 --> 00:28:41,040
Speaker 2: Guaranteed human? Well, you know that's.

670
00:28:40,920 --> 00:28:43,720
Speaker 1: Us I we I did episode six twenty back in

671
00:28:43,760 --> 00:28:45,960
Speaker 1: the day, the full Proof Plan to ditch that. You

672
00:28:46,000 --> 00:28:48,200
Speaker 1: can go back and listen to that, especially especially if

673
00:28:48,240 --> 00:28:50,040
Speaker 1: you're new here. But that credit card debt, in particularly

674
00:28:50,040 --> 00:28:52,440
Speaker 1: the high interest rate debt, is the kind of stuff

675
00:28:52,760 --> 00:28:55,280
Speaker 1: that if you don't make a plan to stop the bleeding,

676
00:28:55,880 --> 00:28:58,880
Speaker 1: it's triage, it's going to continue to be a massive

677
00:28:58,880 --> 00:29:01,080
Speaker 1: problem for you. You have to have, Like I think

678
00:29:01,080 --> 00:29:02,960
Speaker 1: that needs to be a square focus after the first

679
00:29:02,960 --> 00:29:05,360
Speaker 1: two money gears, getting rid of that high intratrate debt.

680
00:29:05,400 --> 00:29:08,600
Speaker 2: Yeah, it doesn't matter how much broccoli you're eating and

681
00:29:08,640 --> 00:29:11,160
Speaker 2: if you're getting enough sleep and taking your vitamins and

682
00:29:11,240 --> 00:29:13,760
Speaker 2: drinking enough water. If you're like bleeding out, you need

683
00:29:13,800 --> 00:29:15,880
Speaker 2: to fix that first. And that's like, that's the same

684
00:29:15,920 --> 00:29:18,680
Speaker 2: thing when it comes to cutting out some of these

685
00:29:19,240 --> 00:29:21,320
Speaker 2: just the worst debts, and we'll get to some of

686
00:29:21,400 --> 00:29:24,880
Speaker 2: the less worst debts, some of the lesser damaging debts.

687
00:29:24,960 --> 00:29:26,800
Speaker 2: But it makes me think of like folks will talk

688
00:29:26,800 --> 00:29:29,720
Speaker 2: about toxic relationships like that's something that's really bad, right,

689
00:29:29,720 --> 00:29:32,000
Speaker 2: They're like, oh, yeah, I toxic relationships. And I don't

690
00:29:32,000 --> 00:29:35,160
Speaker 2: know if this is this feels like counseling relational advice,

691
00:29:35,200 --> 00:29:37,360
Speaker 2: but like imagine you got somebody in your life and

692
00:29:37,360 --> 00:29:38,880
Speaker 2: you're like, man, every time I hang out with them,

693
00:29:38,920 --> 00:29:41,000
Speaker 2: they just want to tear me down or they're discouraging

694
00:29:41,000 --> 00:29:42,520
Speaker 2: blah blah blah, and you're like, I want to go

695
00:29:42,600 --> 00:29:45,760
Speaker 2: find some new friends. I would venture to say that

696
00:29:45,840 --> 00:29:48,320
Speaker 2: maybe you have to like be proactive about not hanging

697
00:29:48,320 --> 00:29:50,720
Speaker 2: out with that some of those toxic relationships before you

698
00:29:50,760 --> 00:29:53,080
Speaker 2: even have room in your mind, like before you have

699
00:29:53,160 --> 00:29:55,479
Speaker 2: like the mental bandwidth to get out there and to

700
00:29:55,480 --> 00:29:57,120
Speaker 2: meet some new folks. Or maybe it's you know, like

701
00:29:57,160 --> 00:29:59,360
Speaker 2: a partner who wasn't that great for you, If that's

702
00:29:59,400 --> 00:30:01,880
Speaker 2: somebody that needs to be completely cut out as opposed

703
00:30:01,920 --> 00:30:04,160
Speaker 2: to like keeping it around and being like no, no, I

704
00:30:04,160 --> 00:30:06,880
Speaker 2: can incorporate that relationship with these other relationships. I don't

705
00:30:06,880 --> 00:30:09,000
Speaker 2: think that's how it works. I think that really bad

706
00:30:09,040 --> 00:30:12,720
Speaker 2: relationship might end up like poisoning some of these other relationships.

707
00:30:12,960 --> 00:30:14,840
Speaker 2: There are certain things that we have to completely remove

708
00:30:15,200 --> 00:30:17,959
Speaker 2: in order to make some of the four progress. And

709
00:30:18,000 --> 00:30:20,280
Speaker 2: I think this is an instance where like you're kind

710
00:30:20,280 --> 00:30:22,239
Speaker 2: of streamlining too. It's like less is more, so like

711
00:30:22,320 --> 00:30:24,440
Speaker 2: in this way, you know, because like again you're freeing

712
00:30:24,520 --> 00:30:26,240
Speaker 2: up some of this mental bandwidth that you have in

713
00:30:26,280 --> 00:30:28,920
Speaker 2: your mind is not just like running circles around itself

714
00:30:28,920 --> 00:30:31,400
Speaker 2: trying to figure out how to just you know, make

715
00:30:31,720 --> 00:30:34,000
Speaker 2: minimum payments on some of this credit card debt?

716
00:30:34,120 --> 00:30:37,040
Speaker 1: Yees, so did your toxic relationships and your toxic debt

717
00:30:37,080 --> 00:30:40,160
Speaker 1: in twenty twenty six debt? Yeah, Matt, I think you

718
00:30:40,200 --> 00:30:43,560
Speaker 1: just inspired people in multiple fronts. Congratulations the relational event.

719
00:30:43,640 --> 00:30:46,480
Speaker 2: Yeah, don't come to me for your relations advice.

720
00:30:46,720 --> 00:30:49,760
Speaker 1: Money gear number four, so we'll move on. Then GOAT

721
00:30:49,920 --> 00:30:53,000
Speaker 1: is really going back to the emergency fund. So money

722
00:30:53,000 --> 00:30:56,360
Speaker 1: gear one, the basic emergency fund. Next, get the company match.

723
00:30:56,480 --> 00:30:58,480
Speaker 1: Next is to pay down high interest debt and then

724
00:30:58,560 --> 00:31:01,000
Speaker 1: go back and fully fund your emergence fund. And so

725
00:31:01,080 --> 00:31:03,800
Speaker 1: much of how much money you need to save, there

726
00:31:03,880 --> 00:31:06,400
Speaker 1: is no number, there's no patented stock number for this,

727
00:31:06,520 --> 00:31:08,960
Speaker 1: like we did having money g you're number one because

728
00:31:09,000 --> 00:31:11,800
Speaker 1: it depends on the specifics of your household income. Right

729
00:31:12,560 --> 00:31:15,600
Speaker 1: three to six months should worth of expenses should suffice

730
00:31:15,640 --> 00:31:18,600
Speaker 1: for most people. And the truth is three thousand and

731
00:31:18,680 --> 00:31:21,280
Speaker 1: forty five dollars just isn't enough to get you through

732
00:31:21,320 --> 00:31:24,360
Speaker 1: bigger emergencies that can come along. It does not allow

733
00:31:24,400 --> 00:31:27,640
Speaker 1: for enough flexibility if you decide you want to make

734
00:31:27,680 --> 00:31:31,240
Speaker 1: a big pivot in your life, or if some like yeah,

735
00:31:31,280 --> 00:31:34,440
Speaker 1: let's say job loss or something like that, or you know,

736
00:31:34,520 --> 00:31:39,320
Speaker 1: hits you, or some sort of terrible medical diagnosis comes along,

737
00:31:39,720 --> 00:31:43,160
Speaker 1: the forty five dollars isn't going to be enough for

738
00:31:43,320 --> 00:31:46,760
Speaker 1: you to have the flexibility you need if you're compatied

739
00:31:46,800 --> 00:31:49,480
Speaker 1: with a larger emergency that three thousand dollars, that's like

740
00:31:49,480 --> 00:31:52,320
Speaker 1: for basic stuff right, like, hey, my transmission just went out,

741
00:31:52,480 --> 00:31:54,400
Speaker 1: and even that, I don't know, three thousand dollars quite competent.

742
00:31:54,400 --> 00:31:58,000
Speaker 2: Oh yeah, transmission is the number one. I'm pretty sure, Agil.

743
00:31:58,040 --> 00:32:01,160
Speaker 2: As I look at my twenty twelve into odyssey, that

744
00:32:01,320 --> 00:32:04,280
Speaker 2: is the repair that might total the van for a

745
00:32:04,280 --> 00:32:06,720
Speaker 2: big risk for you, It's like, yeah, it's just I've

746
00:32:06,760 --> 00:32:09,160
Speaker 2: just as it shifts, I'm like, oh, is it starting

747
00:32:09,200 --> 00:32:10,960
Speaker 2: to is it starting to slip a little bit. It's

748
00:32:10,960 --> 00:32:12,400
Speaker 2: something that I'm trying to stay on top of it.

749
00:32:12,640 --> 00:32:14,480
Speaker 2: If we get to that stage, I'm like, oh my gosh,

750
00:32:14,520 --> 00:32:15,960
Speaker 2: we have to get a new ride.

751
00:32:16,000 --> 00:32:18,600
Speaker 1: I recently changed the transmission fluid and helped make it

752
00:32:18,600 --> 00:32:19,280
Speaker 1: shift a lot better.

753
00:32:20,000 --> 00:32:22,320
Speaker 2: We talked about that. Yeah, privately, have you done it?

754
00:32:22,920 --> 00:32:25,360
Speaker 2: My next goal change? I'm one percent okay because I don't.

755
00:32:25,400 --> 00:32:27,400
Speaker 2: I was like, oh, dang, when's the last time I

756
00:32:27,440 --> 00:32:29,680
Speaker 2: had a fluid flesh And I don't know if I've

757
00:32:29,720 --> 00:32:31,960
Speaker 2: ever done that. Okay, it's time. There's some maintenance that

758
00:32:31,960 --> 00:32:34,240
Speaker 2: we've stayed on top of, like clockwork, but then there's

759
00:32:34,280 --> 00:32:38,960
Speaker 2: other things. When you bounce between different mechanics, it almost

760
00:32:38,960 --> 00:32:41,080
Speaker 2: like resets the clock on some of these other also

761
00:32:41,160 --> 00:32:42,760
Speaker 2: very important things that you need to do that are

762
00:32:42,800 --> 00:32:45,560
Speaker 2: going to maintain the longevity of your car. But yeah,

763
00:32:45,800 --> 00:32:48,600
Speaker 2: I think I've been a bit negligent. But let's keep

764
00:32:48,600 --> 00:32:51,520
Speaker 2: moving money gear number five. You just mentioned your number

765
00:32:51,520 --> 00:32:54,280
Speaker 2: four the fully funded emergency fund, oh, by the way,

766
00:32:54,320 --> 00:32:57,000
Speaker 2: which you're totally going to keep where in your high

767
00:32:57,000 --> 00:32:59,440
Speaker 2: deal savings account. This is not money that you invest

768
00:32:59,520 --> 00:33:02,160
Speaker 2: because you need it to be there, liquid, ready to

769
00:33:02,200 --> 00:33:04,800
Speaker 2: go in case case stuff hits the fan about money

770
00:33:04,840 --> 00:33:08,320
Speaker 2: year five tax sheltered retirement accounts, that is what's next.

771
00:33:08,800 --> 00:33:10,960
Speaker 2: You might be tempted to continue to hoard that cash

772
00:33:11,040 --> 00:33:13,560
Speaker 2: because for the first time you're like, oh my gosh,

773
00:33:13,560 --> 00:33:15,680
Speaker 2: this is what margin feels like. I can breathe. I

774
00:33:15,720 --> 00:33:19,040
Speaker 2: am not living paycheck to paycheck. And you might think, oh,

775
00:33:19,080 --> 00:33:21,280
Speaker 2: more of a good thing is just a good thing, right,

776
00:33:21,360 --> 00:33:25,840
Speaker 2: And no, because investing is going to be key to

777
00:33:25,960 --> 00:33:29,080
Speaker 2: outpacing inflation, it's going to be key to growing money

778
00:33:29,080 --> 00:33:33,040
Speaker 2: for your future for retirement. And there are a whole

779
00:33:33,040 --> 00:33:36,600
Speaker 2: slew of different accounts available and depending on where you work,

780
00:33:36,720 --> 00:33:38,360
Speaker 2: you know, you might have access to a four to

781
00:33:38,400 --> 00:33:42,160
Speaker 2: one K, you might have access to a TSP thrift

782
00:33:42,440 --> 00:33:45,800
Speaker 2: Savings Plan four fifty seven B. If you're a teacher

783
00:33:45,880 --> 00:33:49,360
Speaker 2: working for a nonprofit, you can also invest in an IR.

784
00:33:50,160 --> 00:33:52,880
Speaker 2: We're big fans of the roth IRA never having to

785
00:33:52,920 --> 00:33:56,760
Speaker 2: be taxed on those dollars ever. Again, but more than that,

786
00:33:56,920 --> 00:34:02,120
Speaker 2: I think prioritizing low costs and versification. What you're not

787
00:34:02,120 --> 00:34:06,440
Speaker 2: gonna hear us talk about are buying individual stocks. Occasionally

788
00:34:06,480 --> 00:34:10,600
Speaker 2: we'll say because less than five percent, we're okay with that.

789
00:34:10,640 --> 00:34:12,520
Speaker 2: For you to invest that much of your overall net

790
00:34:12,520 --> 00:34:16,640
Speaker 2: worth in individual stocks just for fun, But like that

791
00:34:16,719 --> 00:34:18,919
Speaker 2: should be I can't even believe I said that, because

792
00:34:18,960 --> 00:34:20,719
Speaker 2: like that should just not even be an issue. If

793
00:34:20,760 --> 00:34:24,160
Speaker 2: you are investing in tax deferred retirement accounts for the

794
00:34:24,160 --> 00:34:26,080
Speaker 2: first time, you need to be looking at total stock

795
00:34:26,120 --> 00:34:28,800
Speaker 2: index funds or the S and P five hundred and

796
00:34:28,840 --> 00:34:33,040
Speaker 2: specifically paying attention to the expense ratios on that. Anything

797
00:34:33,120 --> 00:34:37,400
Speaker 2: that's less than zero point two percent is okay. I

798
00:34:37,400 --> 00:34:39,880
Speaker 2: would prefer to see folks, though, closer to like point

799
00:34:40,040 --> 00:34:44,319
Speaker 2: zero three percent, because that's all it takes. Yeah, or

800
00:34:44,360 --> 00:34:47,800
Speaker 2: if not free with Fidelity, you got the FC rocks.

801
00:34:48,000 --> 00:34:50,080
Speaker 1: And there are a lot of personal finance folks out

802
00:34:50,080 --> 00:34:53,799
Speaker 1: there who will talk a lot about a bunch of

803
00:34:53,840 --> 00:34:57,279
Speaker 1: different investing tactics you can take. And the truth is, man,

804
00:34:57,320 --> 00:34:59,480
Speaker 1: there's some really good content creators who are really smart

805
00:34:59,480 --> 00:35:01,480
Speaker 1: out there in space. We've even had some of them

806
00:35:01,760 --> 00:35:04,719
Speaker 1: on the podcast, even like Ben Felix, who we had

807
00:35:04,719 --> 00:35:06,200
Speaker 1: on at the end of last year, talks a ton

808
00:35:06,239 --> 00:35:09,279
Speaker 1: about investing. He's so smart. Loved talking to him. But

809
00:35:09,320 --> 00:35:11,640
Speaker 1: it's also possible, especially for a show like this, to

810
00:35:11,719 --> 00:35:16,120
Speaker 1: really over complicate things to actually the detriment I think

811
00:35:16,239 --> 00:35:18,759
Speaker 1: of listeners, and so if you feel like you're at

812
00:35:18,760 --> 00:35:20,719
Speaker 1: that place and you're like, man, I'm ready to create

813
00:35:20,760 --> 00:35:23,479
Speaker 1: my own like twelve fun portfolio, there are awesome folks

814
00:35:23,480 --> 00:35:25,239
Speaker 1: out there who you can listen to to figure that out.

815
00:35:25,239 --> 00:35:27,000
Speaker 1: But I think for the vast majority of folks, Matt,

816
00:35:27,160 --> 00:35:30,400
Speaker 1: they want just like simple and effective, low cost and diversified.

817
00:35:30,600 --> 00:35:32,920
Speaker 1: And so that's really what we talk about here on

818
00:35:33,080 --> 00:35:33,759
Speaker 1: the show.

819
00:35:33,520 --> 00:35:36,600
Speaker 2: And that is literally how we invest as well. Yeah, exactly,

820
00:35:37,000 --> 00:35:40,120
Speaker 2: ninety seven, ninety eight percent of my net worth is

821
00:35:40,160 --> 00:35:43,839
Speaker 2: invested in either the total stock market index funds offered

822
00:35:43,840 --> 00:35:47,800
Speaker 2: by Vanguard or Fidelity YEP, or S ANDP with Fidelity.

823
00:35:47,880 --> 00:35:50,479
Speaker 1: And so until you're investing fifteen percent of your income,

824
00:35:50,520 --> 00:35:52,920
Speaker 1: you're in money gear five. Don't beat yourself up if

825
00:35:52,920 --> 00:35:55,319
Speaker 1: it's taking while I think we're talking about these money gears, Matt,

826
00:35:55,320 --> 00:35:56,960
Speaker 1: like you just kind of moved through them like clockwork.

827
00:35:57,200 --> 00:35:59,640
Speaker 1: The truth is, especially think about money gear number one

828
00:35:59,719 --> 00:36:03,279
Speaker 1: might take somebody hopefully no longer than six months, but

829
00:36:03,320 --> 00:36:05,359
Speaker 1: it just depends on a whole lot of what's going

830
00:36:05,400 --> 00:36:07,879
Speaker 1: on in your financial scenario. Money gear number two that

831
00:36:08,480 --> 00:36:10,640
Speaker 1: hopefully doesn't take too too long to get the full match.

832
00:36:10,800 --> 00:36:12,880
Speaker 1: But like, the further you get along these money gears,

833
00:36:13,040 --> 00:36:15,080
Speaker 1: the longer it's gonna take to build up like let's say,

834
00:36:15,120 --> 00:36:17,320
Speaker 1: six months worth of expenses in a save these account.

835
00:36:17,480 --> 00:36:20,080
Speaker 1: That can take a really, really long time. So yeah,

836
00:36:20,160 --> 00:36:23,440
Speaker 1: be generous with yourself, be gracious. The same thing is

837
00:36:23,440 --> 00:36:25,520
Speaker 1: true with money year number five. Until you're really investing

838
00:36:25,600 --> 00:36:28,719
Speaker 1: fifteen percent, you're gonna be in money gear five. So

839
00:36:28,880 --> 00:36:32,080
Speaker 1: money gear number five all about getting more money than

840
00:36:32,320 --> 00:36:37,239
Speaker 1: into your investment accounts and just growing the amount of

841
00:36:37,400 --> 00:36:39,640
Speaker 1: overall amount of your income that you're able to stash

842
00:36:39,640 --> 00:36:40,400
Speaker 1: away for your future.

843
00:36:40,480 --> 00:36:42,880
Speaker 2: That's right. Next, money gear number six, that's when you

844
00:36:42,920 --> 00:36:46,640
Speaker 2: can start paying off low interest debt with vigor. And

845
00:36:46,960 --> 00:36:49,200
Speaker 2: that could be if you've got one, that could be

846
00:36:49,200 --> 00:36:51,719
Speaker 2: a car loan. It could mean paying more on your

847
00:36:51,719 --> 00:36:54,879
Speaker 2: student loans than just the minimum. It could mean paying

848
00:36:54,880 --> 00:36:57,520
Speaker 2: off a heelock home equity line of credit more quickly

849
00:36:57,520 --> 00:37:00,040
Speaker 2: if you've if that's something that you've utilized. But in

850
00:37:00,080 --> 00:37:03,480
Speaker 2: money Gear number six, we've got savings, we've become good investors,

851
00:37:03,480 --> 00:37:06,680
Speaker 2: and now we are just eliminating some of the less offensive,

852
00:37:06,800 --> 00:37:09,920
Speaker 2: some of the less nefarious kinds of debt. That being said,

853
00:37:10,320 --> 00:37:13,759
Speaker 2: your mortgage. If you have a low rate interest rate

854
00:37:14,000 --> 00:37:17,960
Speaker 2: home loan, mortgage, hold off, don't do that just yet. Yeah,

855
00:37:18,000 --> 00:37:20,799
Speaker 2: that feels that's more like a money gear number seven.

856
00:37:21,400 --> 00:37:23,520
Speaker 1: Action item, right, Although I will say in money Gear

857
00:37:23,600 --> 00:37:25,600
Speaker 1: number six, if you were the kind of person if

858
00:37:25,640 --> 00:37:27,520
Speaker 1: you bought a house that's say, in the last two years,

859
00:37:27,640 --> 00:37:30,880
Speaker 1: and your interest rate is in that seven percent range, boom,

860
00:37:30,960 --> 00:37:33,160
Speaker 1: that fits in money Gear number six, you might want

861
00:37:33,200 --> 00:37:35,840
Speaker 1: to then be paying more towards your mortgage. Yeah, because

862
00:37:36,239 --> 00:37:38,920
Speaker 1: it's you're not able to earn more legit just in

863
00:37:38,960 --> 00:37:42,040
Speaker 1: a savings account than you are paying an interest right

864
00:37:42,080 --> 00:37:44,040
Speaker 1: towards towards your home lender.

865
00:37:44,160 --> 00:37:46,520
Speaker 2: Yeah, and you said seven percent because that's what's that's

866
00:37:46,520 --> 00:37:49,399
Speaker 2: where it's If it's any more than that, absolutely slam dunk.

867
00:37:49,440 --> 00:37:53,399
Speaker 2: Any less than that, that's when it's like it's tough,

868
00:37:53,440 --> 00:37:56,880
Speaker 2: like that seven percent mark, it does not make it easy. Yep.

869
00:37:57,200 --> 00:37:59,319
Speaker 1: So money gear number six is really about paying off

870
00:37:59,360 --> 00:38:01,440
Speaker 1: a lot of those other kinds of debt, with the

871
00:38:01,440 --> 00:38:04,080
Speaker 1: exception of the mortgage, or if you have some other

872
00:38:04,200 --> 00:38:05,640
Speaker 1: kind of debt like I don't know, Matt from people

873
00:38:05,680 --> 00:38:08,040
Speaker 1: who have student loans from twenty years ago, it might

874
00:38:08,040 --> 00:38:10,600
Speaker 1: still be at a really low interest rate, Like maybe

875
00:38:10,640 --> 00:38:12,680
Speaker 1: you can pump those off a little bit further, maybe

876
00:38:12,680 --> 00:38:15,399
Speaker 1: I can make those a top priority. And it's been

877
00:38:15,400 --> 00:38:16,799
Speaker 1: fun this year. Matter of fact, I feel like we've

878
00:38:16,800 --> 00:38:19,040
Speaker 1: seen a lot more money. How the money listeners reach

879
00:38:19,120 --> 00:38:22,160
Speaker 1: money gear number seven. Once you get here, yeah, you

880
00:38:22,160 --> 00:38:24,040
Speaker 1: can go in a million different directions, Like you can

881
00:38:24,040 --> 00:38:26,120
Speaker 1: go back to school to pursue another career. You can

882
00:38:26,160 --> 00:38:27,880
Speaker 1: pay for it with savings that you've been able to

883
00:38:28,560 --> 00:38:31,600
Speaker 1: ramp up, or you can increase your investment percentage so

884
00:38:31,640 --> 00:38:34,160
Speaker 1: you can reach financial independence sooner. So instead of stopping

885
00:38:34,320 --> 00:38:36,760
Speaker 1: at that fifteen percent of your income, now you're like, boom,

886
00:38:36,840 --> 00:38:38,520
Speaker 1: let me see if I can hit twenty or thirty

887
00:38:38,560 --> 00:38:41,120
Speaker 1: percent of my income just in money that I'm putting

888
00:38:41,120 --> 00:38:43,839
Speaker 1: into my investment accounts every month. That's a cool goal,

889
00:38:44,320 --> 00:38:46,640
Speaker 1: and it just allows you a lot more flexibility, sooner

890
00:38:46,760 --> 00:38:48,680
Speaker 1: you can take a sabbatical. We've got episodes on that

891
00:38:48,719 --> 00:38:50,360
Speaker 1: we took a sabbatical this summer. That was one of

892
00:38:50,400 --> 00:38:53,439
Speaker 1: those things where like we're buying more of our time back.

893
00:38:53,880 --> 00:38:56,319
Speaker 1: The truth is, once you're hitting those later money gears,

894
00:38:56,360 --> 00:38:59,520
Speaker 1: you're kind of cruising downhill. And a lot of folks

895
00:38:59,640 --> 00:39:02,120
Speaker 1: never achieve this. But I think a whole lot of

896
00:39:02,120 --> 00:39:03,959
Speaker 1: people in the how to Money community mat are going

897
00:39:04,000 --> 00:39:06,720
Speaker 1: to And it's not even because they make six salaries.

898
00:39:06,760 --> 00:39:10,240
Speaker 1: It's not like we've got everyone who lives in Silicon

899
00:39:10,320 --> 00:39:14,319
Speaker 1: Valley listening to this podcast. But it's because the people

900
00:39:14,360 --> 00:39:17,000
Speaker 1: who listen to this podcast are living intentionally. They're watching,

901
00:39:17,200 --> 00:39:20,840
Speaker 1: they're spending their prioritizing investing over consumption they could be

902
00:39:20,880 --> 00:39:23,399
Speaker 1: doing in the here and now, and they value the

903
00:39:23,440 --> 00:39:27,680
Speaker 1: lifestyle that you can't buy on Amazon right as the

904
00:39:27,880 --> 00:39:30,160
Speaker 1: Grinch would have said a few weeks ago, like it

905
00:39:30,200 --> 00:39:34,200
Speaker 1: came without packages, boxes or bags like that. We realize,

906
00:39:34,280 --> 00:39:37,920
Speaker 1: as how to money people that the truth is, the

907
00:39:37,960 --> 00:39:42,319
Speaker 1: best things in life are not consumables, and consumables can

908
00:39:42,640 --> 00:39:44,799
Speaker 1: be good, but they're not the end all be all.

909
00:39:44,880 --> 00:39:46,480
Speaker 2: That's right, But we've got more to get to. Man.

910
00:39:46,719 --> 00:39:49,040
Speaker 2: We are going to cover some additional steps that you

911
00:39:49,040 --> 00:39:51,200
Speaker 2: can take to help your money to go further for

912
00:39:51,239 --> 00:39:53,040
Speaker 2: you to reach your financial goals. We'll get to all

913
00:39:53,080 --> 00:39:53,920
Speaker 2: that right after this.

914
00:40:01,840 --> 00:40:04,560
Speaker 1: All right, Matt, We're back talked about the money gears,

915
00:40:04,600 --> 00:40:06,319
Speaker 1: which I think is just such a helpful framework for

916
00:40:06,360 --> 00:40:09,200
Speaker 1: most people just who are new to personal finance to

917
00:40:09,200 --> 00:40:11,080
Speaker 1: figure out. And even if you've been listening for a while,

918
00:40:11,120 --> 00:40:12,719
Speaker 1: you're like, oh, man, that's a good refresher. I forgot

919
00:40:12,760 --> 00:40:14,560
Speaker 1: where am I at? Oh I'm on money gear number four. Okay,

920
00:40:14,560 --> 00:40:16,680
Speaker 1: that's what I need to do next. It's a good idea,

921
00:40:16,719 --> 00:40:18,120
Speaker 1: and we'll link to it in the show notes, but

922
00:40:18,160 --> 00:40:20,320
Speaker 1: it's also on the start here button of our homepage

923
00:40:20,320 --> 00:40:23,600
Speaker 1: if you're like, I need to do more digging into

924
00:40:23,640 --> 00:40:25,600
Speaker 1: those and how they function. We just kind of gave

925
00:40:25,600 --> 00:40:28,160
Speaker 1: a brief overview. We actually have individual articles for every

926
00:40:28,480 --> 00:40:30,680
Speaker 1: money gear so that you can dig in and see

927
00:40:30,719 --> 00:40:34,040
Speaker 1: exactly how to attack it. But let's get a little

928
00:40:34,080 --> 00:40:37,160
Speaker 1: more current here. For the last section, Matt, and maybe

929
00:40:37,160 --> 00:40:40,200
Speaker 1: we'll even share our own priorities for twenty twenty six,

930
00:40:40,200 --> 00:40:42,640
Speaker 1: our financial priorities here at the end of this episode.

931
00:40:42,719 --> 00:40:44,840
Speaker 1: But I want to talk about the K shaped economy

932
00:40:44,880 --> 00:40:48,239
Speaker 1: for just a second. We've talked about like where you

933
00:40:48,280 --> 00:40:50,520
Speaker 1: are in the money gears, but it's also important to

934
00:40:50,520 --> 00:40:53,680
Speaker 1: think about what trajectory you're on. And we just hear

935
00:40:53,760 --> 00:40:55,960
Speaker 1: so much in the media about the extremes, like the

936
00:40:56,120 --> 00:40:59,800
Speaker 1: richest folks in the world, the people with multiple yachts,

937
00:41:00,040 --> 00:41:04,160
Speaker 1: and then folks living in impoverished situations. But I was

938
00:41:04,160 --> 00:41:06,480
Speaker 1: talking to my friend Pam recently Matt about this, and

939
00:41:07,520 --> 00:41:10,560
Speaker 1: we agreed that the K shaped visual is more accurate

940
00:41:10,600 --> 00:41:13,680
Speaker 1: and more representative, more helpful. I think that we exist

941
00:41:13,680 --> 00:41:17,000
Speaker 1: along a spectrum typically, and sometimes we're moving up that spectrum,

942
00:41:17,040 --> 00:41:19,319
Speaker 1: sometimes we're moving down it, or maybe we feel like

943
00:41:19,320 --> 00:41:21,520
Speaker 1: we're staying static. We're just kind of in the middle

944
00:41:21,560 --> 00:41:23,759
Speaker 1: of the K. And that K is like really just like, hey,

945
00:41:23,760 --> 00:41:27,120
Speaker 1: who's making improvements, doing better whether it comes to income

946
00:41:27,160 --> 00:41:29,399
Speaker 1: and lifestyle and the downward part of the K where

947
00:41:29,400 --> 00:41:32,600
Speaker 1: people feel like they're not doing as well as they

948
00:41:32,680 --> 00:41:34,919
Speaker 1: used to do. And I think people are increasingly worried

949
00:41:34,920 --> 00:41:37,880
Speaker 1: about the possibility of moving down rather than up. I

950
00:41:37,880 --> 00:41:40,160
Speaker 1: do think that's something that's on the top of people's minds,

951
00:41:40,239 --> 00:41:43,560
Speaker 1: especially higher prices and stuff like that. But instead of

952
00:41:43,600 --> 00:41:46,040
Speaker 1: thinking about the average or the extremes, I think the

953
00:41:46,120 --> 00:41:48,960
Speaker 1: visual can help you think more about your specific situation,

954
00:41:49,520 --> 00:41:52,080
Speaker 1: how you're doing right now, and where you feel like

955
00:41:52,080 --> 00:41:53,759
Speaker 1: you're headed, because I think that has so much to

956
00:41:53,840 --> 00:41:56,560
Speaker 1: do with how we feel about our money in our lives.

957
00:41:56,760 --> 00:41:59,600
Speaker 2: Yeah, yeah, I agree, but yeah, hopefully folks are when

958
00:41:59,640 --> 00:42:02,160
Speaker 2: they see, like you say, K shaped economy and everyone

959
00:42:02,160 --> 00:42:04,680
Speaker 2: pictures the K and you're like, well, hopefully, like I

960
00:42:04,680 --> 00:42:06,439
Speaker 2: want to be on the K part that's going up.

961
00:42:07,719 --> 00:42:10,319
Speaker 2: And I mean, I do think that there are a

962
00:42:10,320 --> 00:42:13,080
Speaker 2: lot of listeners that is where they are. I do

963
00:42:13,120 --> 00:42:14,439
Speaker 2: think that there are a lot of folks and they're

964
00:42:14,520 --> 00:42:19,520
Speaker 2: they're encouraged by what's ahead. Like I always get frustrated

965
00:42:19,520 --> 00:42:22,799
Speaker 2: when folks talk about how gen Z, how they're just

966
00:42:22,840 --> 00:42:25,560
Speaker 2: so poor, But I'm like, these are this is the

967
00:42:25,600 --> 00:42:28,880
Speaker 2: generation that just finished college, Like, this is the generation

968
00:42:28,960 --> 00:42:30,920
Speaker 2: that's in their first job where they are making How

969
00:42:30,960 --> 00:42:32,399
Speaker 2: much did you make, Joel in your first job?

970
00:42:33,160 --> 00:42:35,479
Speaker 1: I mean, I was part time in my literal first

971
00:42:35,560 --> 00:42:37,960
Speaker 1: job out and then my first time job. I want

972
00:42:37,960 --> 00:42:39,920
Speaker 1: to say I made like twenty four thousand dollars adjusted

973
00:42:39,920 --> 00:42:40,400
Speaker 1: for inflation.

974
00:42:40,400 --> 00:42:43,359
Speaker 2: I don't know what that would be same. So in

975
00:42:43,480 --> 00:42:46,600
Speaker 2: preparation for the New year thirties, Kate and I, well,

976
00:42:46,600 --> 00:42:50,000
Speaker 2: then I made less than you because my take home

977
00:42:50,440 --> 00:42:53,040
Speaker 2: was less than twenty one thousand dollars. Wow. In two

978
00:42:53,080 --> 00:42:55,600
Speaker 2: thousand and seven, and Kate, we were looking over our

979
00:42:55,600 --> 00:42:58,160
Speaker 2: budget for the year as we're just kind of seeing

980
00:42:58,160 --> 00:43:01,320
Speaker 2: how we did in twenty twenty five things together, Like literally,

981
00:43:01,360 --> 00:43:02,960
Speaker 2: at the beginning of two thousand and seven, I had

982
00:43:03,000 --> 00:43:05,440
Speaker 2: eight hundred and sixty eight dollars to my name, Like

983
00:43:05,480 --> 00:43:07,240
Speaker 2: that's how much money I had in my savings account.

984
00:43:07,239 --> 00:43:09,080
Speaker 2: And guess what if you would have were to have

985
00:43:09,080 --> 00:43:11,040
Speaker 2: taken a snapshot right then they'd be like, guess what

986
00:43:11,400 --> 00:43:14,360
Speaker 2: millennials are so broke? Well, and they wrote those headlines

987
00:43:14,800 --> 00:43:17,279
Speaker 2: and they did, but like I'm just saying that those

988
00:43:17,320 --> 00:43:20,160
Speaker 2: headlines do not define you who are listening to this

989
00:43:20,480 --> 00:43:23,000
Speaker 2: and you are feeling like, oh my gosh, these guys

990
00:43:23,000 --> 00:43:26,040
Speaker 2: are talking about setting aside six months of living expenses,

991
00:43:26,120 --> 00:43:28,080
Speaker 2: Like I don't even have it enough to hardly pay

992
00:43:28,080 --> 00:43:30,759
Speaker 2: rent this this month to a certain extent, like we've

993
00:43:30,760 --> 00:43:33,200
Speaker 2: all been there, but I think that you've got what

994
00:43:33,280 --> 00:43:35,120
Speaker 2: it takes to be able to climb out of that.

995
00:43:35,160 --> 00:43:38,160
Speaker 2: And I want to see folks just identifying with that

996
00:43:38,280 --> 00:43:41,680
Speaker 2: k part that's going up as opposed to being like, yeah,

997
00:43:41,719 --> 00:43:44,719
Speaker 2: like the slow, lazy part of the downward kave that's

998
00:43:44,760 --> 00:43:46,480
Speaker 2: just like, yeah, it's going to peter out here for

999
00:43:46,480 --> 00:43:48,360
Speaker 2: a little bit and then things aren't going to be

1000
00:43:48,360 --> 00:43:50,560
Speaker 2: looking up for me anymore. Well, I think that we've

1001
00:43:50,560 --> 00:43:52,160
Speaker 2: got a lot of listeners who are going to be

1002
00:43:52,200 --> 00:43:53,759
Speaker 2: optimistic about what liza ahead.

1003
00:43:53,760 --> 00:43:55,279
Speaker 1: And I also I get frustrated with the people who

1004
00:43:55,320 --> 00:43:58,879
Speaker 1: crap on the small ways that you can claw back

1005
00:43:58,920 --> 00:44:00,960
Speaker 1: money and you're life. Like we talked about frugality earlier

1006
00:44:00,960 --> 00:44:03,040
Speaker 1: and how much of an impact that can have, because

1007
00:44:03,080 --> 00:44:06,400
Speaker 1: I do think every dollar, especially in those early years

1008
00:44:06,760 --> 00:44:10,680
Speaker 1: as you're trying to get that like Garner your first

1009
00:44:10,719 --> 00:44:13,480
Speaker 1: ten thousand dollars in investments and then moving on up

1010
00:44:13,560 --> 00:44:17,600
Speaker 1: that curve, like it's if every dollar matters, feels like

1011
00:44:17,640 --> 00:44:20,360
Speaker 1: it matters more in those early years. And the reason

1012
00:44:20,480 --> 00:44:22,200
Speaker 1: is that's true. Like when we talked with Brian Preston

1013
00:44:22,280 --> 00:44:24,400
Speaker 1: the money guy, like he talks about how his koozy.

1014
00:44:24,440 --> 00:44:26,400
Speaker 1: It's like this one dollar beer cost me eighty eight dollars.

1015
00:44:26,480 --> 00:44:29,480
Speaker 1: And it's because a dollar invested really early on in

1016
00:44:29,480 --> 00:44:31,480
Speaker 1: your life, let's say, when you're like twenty, can really

1017
00:44:31,560 --> 00:44:33,840
Speaker 1: turn into eighty eight dollars later. A dollar invested at

1018
00:44:33,840 --> 00:44:36,319
Speaker 1: the age fifty guess what it's it's it's not gonna

1019
00:44:36,320 --> 00:44:38,680
Speaker 1: be worth eighty eight dollars unless you live to like

1020
00:44:39,080 --> 00:44:40,680
Speaker 1: one forty or something like that, right, which is not

1021
00:44:40,719 --> 00:44:44,120
Speaker 1: going to happen unless our AI overlords say that it will.

1022
00:44:44,560 --> 00:44:47,200
Speaker 2: But like if they allow it, if if they hook

1023
00:44:47,200 --> 00:44:49,040
Speaker 2: you up to some sort of power generating machine and

1024
00:44:49,040 --> 00:44:53,480
Speaker 2: you've got a plug into your Spinengel rather the matrix,

1025
00:44:53,560 --> 00:44:55,839
Speaker 2: which nobody even knows that reference anymore.

1026
00:44:55,560 --> 00:44:58,360
Speaker 1: But probably right, So, my gosh, that's still worth watching.

1027
00:44:58,360 --> 00:44:59,640
Speaker 1: I went back to watch it like a year ago,

1028
00:44:59,719 --> 00:45:00,439
Speaker 1: did you great?

1029
00:45:00,480 --> 00:45:01,280
Speaker 2: Classic? Yeah?

1030
00:45:01,520 --> 00:45:04,200
Speaker 1: Well, and I think like this also just say hey

1031
00:45:04,200 --> 00:45:07,520
Speaker 1: where are you? We'll also have some say over like

1032
00:45:07,560 --> 00:45:09,200
Speaker 1: what you do next with your money and how much

1033
00:45:09,239 --> 00:45:12,440
Speaker 1: Let's say, go back to money gear number four fully

1034
00:45:12,440 --> 00:45:15,680
Speaker 1: funding your emergency fund. Well, let's say you are a

1035
00:45:15,760 --> 00:45:19,040
Speaker 1: two parent household but you've got one income and that

1036
00:45:19,080 --> 00:45:21,360
Speaker 1: income feels really precarious right now, you might want to

1037
00:45:21,440 --> 00:45:23,200
Speaker 1: ramp up your savings beyond six months, like you might

1038
00:45:23,280 --> 00:45:25,680
Speaker 1: even say, actually I need nine to twelve because.

1039
00:45:25,520 --> 00:45:26,719
Speaker 2: Depends on your level of risk.

1040
00:45:26,800 --> 00:45:29,400
Speaker 1: Yeah, I work in an industry and my job, by

1041
00:45:29,480 --> 00:45:32,759
Speaker 1: career is a little more at risk. These are all

1042
00:45:32,800 --> 00:45:37,560
Speaker 1: things to take in mind, and like with economic fluctuations,

1043
00:45:37,360 --> 00:45:40,439
Speaker 1: it's just crucial to build more resilience into your financial plan.

1044
00:45:40,760 --> 00:45:42,520
Speaker 2: That's right. You know this makes me think too, how

1045
00:45:42,600 --> 00:45:45,239
Speaker 2: it's just so important to not do this alone. I

1046
00:45:45,280 --> 00:45:48,160
Speaker 2: think it's so important to find friends who are down

1047
00:45:48,200 --> 00:45:50,840
Speaker 2: to talk about money, and I would point folks to

1048
00:45:51,080 --> 00:45:53,160
Speaker 2: join the how to Money Facebook group. If you spend

1049
00:45:53,200 --> 00:45:56,279
Speaker 2: any time at all on Facebook, the only time I

1050
00:45:56,360 --> 00:45:58,600
Speaker 2: do spend on time, The only time I do spend

1051
00:45:58,680 --> 00:46:01,640
Speaker 2: on Facebook deal is if I'm like, you'll reference something

1052
00:46:01,680 --> 00:46:03,120
Speaker 2: that's going on in the Facebook group and I'm like, oh,

1053
00:46:03,200 --> 00:46:05,440
Speaker 2: let me let me go check it out. Or Facebook

1054
00:46:05,440 --> 00:46:08,960
Speaker 2: Marketplace actually those area, it's the groups in Marketplace. The

1055
00:46:08,960 --> 00:46:10,240
Speaker 2: only two good things about Facebook.

1056
00:46:10,239 --> 00:46:14,760
Speaker 1: And I actually plug for the Facebook feed eradicator plug

1057
00:46:14,800 --> 00:46:17,439
Speaker 1: in so that even when I go to Facebook on

1058
00:46:17,480 --> 00:46:20,880
Speaker 1: my desktop. I'm not confronted with any posts, and so

1059
00:46:21,040 --> 00:46:23,160
Speaker 1: it's just like you literally get sucked into that hole. No,

1060
00:46:23,200 --> 00:46:25,440
Speaker 1: it's like a Buddhist quote or something like that. Usually

1061
00:46:25,440 --> 00:46:27,520
Speaker 1: that sits there where the feed would be, and so

1062
00:46:27,560 --> 00:46:29,600
Speaker 1: I just go directly to the groups or directly to marketplace.

1063
00:46:29,640 --> 00:46:30,840
Speaker 1: I don't have to see any of that nonsense.

1064
00:46:30,920 --> 00:46:32,560
Speaker 2: Yeah, but I mean one of the goals of the

1065
00:46:32,600 --> 00:46:34,759
Speaker 2: show is for us to talk about personal finance, to

1066
00:46:34,760 --> 00:46:36,680
Speaker 2: talk about money, to talk about what you're spending, how

1067
00:46:36,760 --> 00:46:39,240
Speaker 2: much you're investing, and that's not typically something that happens

1068
00:46:39,239 --> 00:46:41,799
Speaker 2: in real life. It's why we have the show. It's

1069
00:46:41,800 --> 00:46:43,799
Speaker 2: why we encourage folks to head over to the Facebook group,

1070
00:46:43,840 --> 00:46:46,520
Speaker 2: because they do do that, but we also want you

1071
00:46:46,520 --> 00:46:48,719
Speaker 2: to get out there and touch grass and work to

1072
00:46:48,800 --> 00:46:52,799
Speaker 2: talk about these types of topics in real life. And Joel,

1073
00:46:52,840 --> 00:46:54,640
Speaker 2: this is something that you and I that we literally

1074
00:46:54,680 --> 00:46:58,160
Speaker 2: were doing before we started the podcast. Like literally, the

1075
00:46:58,239 --> 00:47:00,840
Speaker 2: original show is called Poor not Poor mm hmm, and

1076
00:47:00,920 --> 00:47:03,120
Speaker 2: maybe you can imagine why we called it that. Originally,

1077
00:47:03,120 --> 00:47:04,879
Speaker 2: it's still the name of our LLC, which I love,

1078
00:47:04,960 --> 00:47:06,319
Speaker 2: but we changed the name of the show to how

1079
00:47:06,360 --> 00:47:09,600
Speaker 2: to Money because it's more searchable But we were talking

1080
00:47:09,600 --> 00:47:12,040
Speaker 2: about these things before we started the stupid podcast because

1081
00:47:12,040 --> 00:47:15,200
Speaker 2: we enjoyed it and we saw that, oh my gosh,

1082
00:47:15,239 --> 00:47:17,760
Speaker 2: by challenging each other, we are ending up in better places.

1083
00:47:17,880 --> 00:47:19,920
Speaker 2: I know I am in a better position because of

1084
00:47:19,920 --> 00:47:23,399
Speaker 2: our friendship, my friend same money winds in another way. Yes,

1085
00:47:23,400 --> 00:47:25,520
Speaker 2: it's not just about the money, but it is how

1086
00:47:25,560 --> 00:47:28,680
Speaker 2: to money, after all. But to have these conversations with

1087
00:47:28,719 --> 00:47:32,959
Speaker 2: your spouse, with your partner, with your friends and man

1088
00:47:33,000 --> 00:47:35,960
Speaker 2: the I know that this is life changing. I know

1089
00:47:36,080 --> 00:47:39,080
Speaker 2: that the trajectory like where my family is right now, Jill,

1090
00:47:39,239 --> 00:47:41,600
Speaker 2: it would not be it probably it would probably be

1091
00:47:41,680 --> 00:47:44,239
Speaker 2: pretty close had we never met. But I know I

1092
00:47:44,280 --> 00:47:46,239
Speaker 2: am in a better position because of our friendship. It's

1093
00:47:46,280 --> 00:47:49,000
Speaker 2: a bunch of little things over time, yeah, stretched out

1094
00:47:49,040 --> 00:47:51,640
Speaker 2: over the years. Those returns they compound. And we hear

1095
00:47:51,680 --> 00:47:53,480
Speaker 2: from listeners too, like a little I was getting back

1096
00:47:53,480 --> 00:47:56,719
Speaker 2: to an emailer, a listener this morning on email, and

1097
00:47:56,760 --> 00:47:58,440
Speaker 2: she was talking about how I think she said it

1098
00:47:58,440 --> 00:48:01,080
Speaker 2: was like life changing information is what she called it.

1099
00:48:01,080 --> 00:48:03,359
Speaker 2: It's just a short little sentence. But what that told

1100
00:48:03,400 --> 00:48:05,520
Speaker 2: me was that she is not only listening, but she

1101
00:48:05,640 --> 00:48:08,000
Speaker 2: is putting into action some of the stuff that we

1102
00:48:08,040 --> 00:48:10,920
Speaker 2: talk about and year after year, decade after dec I mean,

1103
00:48:11,000 --> 00:48:13,160
Speaker 2: I've been the stuff that we talk about like this,

1104
00:48:13,280 --> 00:48:15,799
Speaker 2: the quote unquote plan, Like I've effectively been doing that

1105
00:48:15,800 --> 00:48:18,440
Speaker 2: for over twenty years now, and it's no surprise that

1106
00:48:18,520 --> 00:48:22,440
Speaker 2: you see your net worth grow and you see how

1107
00:48:22,680 --> 00:48:24,920
Speaker 2: it is that you view consumption and how it is

1108
00:48:24,960 --> 00:48:28,239
Speaker 2: that you perceive enjoyment in the here versus enjoyment and

1109
00:48:28,239 --> 00:48:30,040
Speaker 2: then now like, these are things that you think about

1110
00:48:30,080 --> 00:48:32,640
Speaker 2: and it takes time, but I want to encourage folks

1111
00:48:32,640 --> 00:48:35,560
Speaker 2: to have these conversations not only with your friends, your partners,

1112
00:48:35,880 --> 00:48:36,880
Speaker 2: but also online.

1113
00:48:37,000 --> 00:48:38,560
Speaker 1: Yeah, I mean, you're making me think too about One

1114
00:48:38,560 --> 00:48:40,319
Speaker 1: of the one of the trends that we covered maybe

1115
00:48:40,360 --> 00:48:43,040
Speaker 1: early in twenty twenty five was loud budgeting, where people

1116
00:48:43,160 --> 00:48:46,440
Speaker 1: were just like on social media, like yelling out the

1117
00:48:46,480 --> 00:48:49,640
Speaker 1: ways that they were trying to save money and people

1118
00:48:49,719 --> 00:48:52,879
Speaker 1: and just kind of making frugality normalizing it a little bit.

1119
00:48:53,120 --> 00:48:56,720
Speaker 1: And I think there is this really important thing about

1120
00:48:57,239 --> 00:48:59,560
Speaker 1: putting your hopes, your dreams, your goals out there in

1121
00:48:59,600 --> 00:49:01,440
Speaker 1: front of the people who love and care about you

1122
00:49:01,480 --> 00:49:02,640
Speaker 1: so they can ask about it. Like one of my

1123
00:49:02,680 --> 00:49:04,560
Speaker 1: friends at the end of last year, he wants to

1124
00:49:04,560 --> 00:49:07,240
Speaker 1: start a podcast. He wants to launch his first episode

1125
00:49:07,400 --> 00:49:09,520
Speaker 1: in the next week or so he was, and so

1126
00:49:09,560 --> 00:49:11,120
Speaker 1: he reached out to me in early December and he

1127
00:49:11,200 --> 00:49:13,200
Speaker 1: was like, hey, man, can you stay on me? Can

1128
00:49:13,239 --> 00:49:15,440
Speaker 1: you text me about this? And there's something about when

1129
00:49:15,480 --> 00:49:17,399
Speaker 1: you say he told me this is what I want

1130
00:49:17,440 --> 00:49:19,000
Speaker 1: to do, and then he was like, can you help me?

1131
00:49:19,320 --> 00:49:22,359
Speaker 1: And man, bringing a friend into that alongside with you

1132
00:49:23,080 --> 00:49:25,400
Speaker 1: is such a beautiful thing. So yeah, you better believe

1133
00:49:25,560 --> 00:49:27,759
Speaker 1: I pestered him and I texted him, hasn't going, man, like,

1134
00:49:27,760 --> 00:49:28,560
Speaker 1: how you making progress?

1135
00:49:28,600 --> 00:49:29,200
Speaker 2: So that's the topic.

1136
00:49:30,080 --> 00:49:33,440
Speaker 1: So it's actually he's worked for like a radio music station,

1137
00:49:33,520 --> 00:49:36,520
Speaker 1: and so it's about like celebrity encounters.

1138
00:49:36,960 --> 00:49:38,319
Speaker 2: Oh yeah, super cool.

1139
00:49:38,400 --> 00:49:40,240
Speaker 1: Yeah, like a down to or a celebrity account of podcast.

1140
00:49:40,640 --> 00:49:43,200
Speaker 1: So I'm curious to hear the first episode, which should

1141
00:49:43,200 --> 00:49:45,360
Speaker 1: be coming out shortly. I'll text him again after we

1142
00:49:45,400 --> 00:49:47,920
Speaker 1: finished recording here. Yeah, but that's the kind of thing

1143
00:49:47,920 --> 00:49:49,279
Speaker 1: where when you say it out loud and when you

1144
00:49:49,280 --> 00:49:52,960
Speaker 1: involve others in your plan, the plan is just so

1145
00:49:53,040 --> 00:49:55,040
Speaker 1: much more likely to succeed than just keeping it locked

1146
00:49:55,040 --> 00:49:55,439
Speaker 1: in your head.

1147
00:49:55,560 --> 00:49:56,960
Speaker 2: I love it. Do you wanna do you want to do?

1148
00:49:56,960 --> 00:49:59,520
Speaker 2: You have any financial goals, Like we talked about goals

1149
00:49:59,520 --> 00:50:01,160
Speaker 2: in the first you want to share any that you've

1150
00:50:01,160 --> 00:50:02,000
Speaker 2: got for twenty twenty six.

1151
00:50:02,040 --> 00:50:05,560
Speaker 1: Okay, So I don't have any audacious money goals for

1152
00:50:05,680 --> 00:50:06,520
Speaker 1: twenty twenty six.

1153
00:50:06,960 --> 00:50:09,040
Speaker 2: I think like I want to keep on, keep it on.

1154
00:50:09,400 --> 00:50:12,160
Speaker 1: It's sort of like and I think that's okay, right.

1155
00:50:12,160 --> 00:50:14,480
Speaker 1: There were a lot of years I had really really

1156
00:50:14,600 --> 00:50:17,480
Speaker 1: big goals, and I think my goal right now is

1157
00:50:17,520 --> 00:50:19,720
Speaker 1: actually to use more of the freedom that I've gained

1158
00:50:20,160 --> 00:50:23,600
Speaker 1: using it well yeah, boy, right, Like speaking my language,

1159
00:50:24,480 --> 00:50:26,440
Speaker 1: part of that is like, hey, supporting my wife and

1160
00:50:26,520 --> 00:50:29,080
Speaker 1: her new and budding career, like that's a big part

1161
00:50:29,120 --> 00:50:31,760
Speaker 1: of it, while still like building how the money and

1162
00:50:31,800 --> 00:50:34,919
Speaker 1: having fun doing the work that we enjoy doing doing

1163
00:50:34,920 --> 00:50:36,799
Speaker 1: it together. I think maybe if I was to call

1164
00:50:36,840 --> 00:50:39,239
Speaker 1: out one big account that I care about this year

1165
00:50:39,480 --> 00:50:40,960
Speaker 1: that like three years ago, if you'd ask me if

1166
00:50:41,000 --> 00:50:42,600
Speaker 1: it mattered to me, I would have been like, not really,

1167
00:50:42,719 --> 00:50:45,719
Speaker 1: the five twenty nine account. I'm putting more money into

1168
00:50:45,760 --> 00:50:47,760
Speaker 1: the five twenty nines for my kids.

1169
00:50:48,440 --> 00:50:50,600
Speaker 2: But also you've been doing this for twenty years, right,

1170
00:50:50,640 --> 00:50:53,200
Speaker 2: and so like that's a priority that it's a money

1171
00:50:53,200 --> 00:50:55,520
Speaker 2: Gear seven priority that's a money gear seven kind of priority,

1172
00:50:55,520 --> 00:50:57,120
Speaker 2: and a lot of folks will start putting the cart

1173
00:50:57,120 --> 00:50:59,040
Speaker 2: before the horse, and like, ma, man, like, there's a

1174
00:50:59,080 --> 00:51:01,760
Speaker 2: lot of different ways that you can pay for college,

1175
00:51:01,840 --> 00:51:04,120
Speaker 2: assuming your kid even goes to college. And I know

1176
00:51:04,160 --> 00:51:05,600
Speaker 2: everyone's like, well, of course my kid is going to

1177
00:51:05,640 --> 00:51:07,319
Speaker 2: go to college. You don't know, like there's a good

1178
00:51:07,400 --> 00:51:10,120
Speaker 2: chance they will, but at least some room for their

1179
00:51:10,360 --> 00:51:13,120
Speaker 2: own decision making in autonomy. Well, which is why you

1180
00:51:13,480 --> 00:51:16,840
Speaker 2: it's less of a priority, but not it's still super important.

1181
00:51:16,880 --> 00:51:17,839
Speaker 2: And I'm glad you're doing that well.

1182
00:51:17,840 --> 00:51:20,160
Speaker 1: And like we've talked about, the changes to make five

1183
00:51:20,239 --> 00:51:23,400
Speaker 1: twenty nine plans more flexible has made them at least

1184
00:51:23,600 --> 00:51:27,279
Speaker 1: more interesting, Like from a parental perspective. Part of that

1185
00:51:27,440 --> 00:51:29,200
Speaker 1: is too, because you can now pay for K through

1186
00:51:29,239 --> 00:51:31,799
Speaker 1: twelve education with five twenty nine dollars. And so I

1187
00:51:31,840 --> 00:51:34,000
Speaker 1: did not think our family would be a private school

1188
00:51:34,000 --> 00:51:36,960
Speaker 1: family until this last year in our oldest of three.

1189
00:51:37,000 --> 00:51:39,000
Speaker 1: It was the right move for her, for us to

1190
00:51:39,040 --> 00:51:41,840
Speaker 1: do for her. And so the five twenty nine dollars,

1191
00:51:41,840 --> 00:51:43,520
Speaker 1: it's like, hey, boom, if I stick more money in there,

1192
00:51:43,520 --> 00:51:45,640
Speaker 1: I get a tax break at least on the money

1193
00:51:45,640 --> 00:51:48,279
Speaker 1: I'm working over and yeah, I will say it kills me,

1194
00:51:48,320 --> 00:51:50,120
Speaker 1: but it doesn't like it actually makes me really happy

1195
00:51:50,320 --> 00:51:51,640
Speaker 1: to spend that money, even though I was like, we're

1196
00:51:51,640 --> 00:51:52,399
Speaker 1: public school people.

1197
00:51:52,440 --> 00:51:54,719
Speaker 2: I was a public school shild it should and like

1198
00:51:54,760 --> 00:51:58,719
Speaker 2: you're you're personal financing it by calling it. You know,

1199
00:51:59,280 --> 00:52:01,120
Speaker 2: we're going to talk more money into the five twenty nine,

1200
00:52:01,120 --> 00:52:03,799
Speaker 2: But what you're paying for is your values and your

1201
00:52:03,840 --> 00:52:06,320
Speaker 2: and your priorities today, right, Like if you're using a

1202
00:52:06,360 --> 00:52:08,240
Speaker 2: lot of those dollars to go towards that, and that's okay,

1203
00:52:08,400 --> 00:52:10,319
Speaker 2: that's my craft beer equivalent that costs a lot more

1204
00:52:10,360 --> 00:52:12,040
Speaker 2: than this IRPA. There you go, and that's I think

1205
00:52:12,040 --> 00:52:14,280
Speaker 2: that's totally fine. In a similar way, like I don't

1206
00:52:14,280 --> 00:52:17,480
Speaker 2: have again, like we've been at this for so long

1207
00:52:17,840 --> 00:52:19,439
Speaker 2: that you look up and you're like, wait a minute,

1208
00:52:19,520 --> 00:52:21,640
Speaker 2: how much money do we have set aside? Like not

1209
00:52:21,800 --> 00:52:25,360
Speaker 2: only in retirement accounts but other investment accounts. And it's

1210
00:52:25,440 --> 00:52:28,760
Speaker 2: just impressive what you can do by doing the hard,

1211
00:52:29,320 --> 00:52:33,279
Speaker 2: fiscally responsible thing year after year. And I have very

1212
00:52:33,320 --> 00:52:37,080
Speaker 2: few like serious financial goals like my I mean, we

1213
00:52:37,080 --> 00:52:39,000
Speaker 2: talked about this years ago, how we're like Coast five,

1214
00:52:39,080 --> 00:52:41,600
Speaker 2: but like I mean Kate and I were financially independent

1215
00:52:42,040 --> 00:52:44,799
Speaker 2: to what extent it varies on what we choose to

1216
00:52:44,800 --> 00:52:46,960
Speaker 2: spend our money on, right, Like, you can't you know,

1217
00:52:47,160 --> 00:52:50,080
Speaker 2: we can't. I can't pick up some expensive hobby if

1218
00:52:50,120 --> 00:52:52,600
Speaker 2: you develop those caveard tastes. Maybe no, maybe I'll work

1219
00:52:52,600 --> 00:52:54,799
Speaker 2: for another year. But like, but that speaks to just

1220
00:52:54,840 --> 00:52:57,400
Speaker 2: a different approach towards retirement as well, Like we're not

1221
00:52:57,480 --> 00:52:59,799
Speaker 2: I'm not interested in kicking back and doing nothing and

1222
00:52:59,840 --> 00:53:02,160
Speaker 2: just relaxing and going and playing golf. If I pick

1223
00:53:02,200 --> 00:53:03,480
Speaker 2: up golf, I do have to work for another two

1224
00:53:03,520 --> 00:53:05,800
Speaker 2: years because that's a really expensive sport, no shade, It

1225
00:53:05,800 --> 00:53:06,680
Speaker 2: takes a lot of time too.

1226
00:53:06,719 --> 00:53:09,440
Speaker 1: If you like to play golf, everybody plays every Friday,

1227
00:53:09,440 --> 00:53:11,200
Speaker 1: and I'm like, go for you.

1228
00:53:11,280 --> 00:53:15,480
Speaker 2: Yeahhh, no hate there. But similarly to you, like I

1229
00:53:15,520 --> 00:53:17,640
Speaker 2: think about lifestyle and some of the different things I

1230
00:53:17,680 --> 00:53:20,480
Speaker 2: want to achieve in my life, being able to pour

1231
00:53:20,480 --> 00:53:22,359
Speaker 2: into relationships, and I feel like I've done that really

1232
00:53:22,400 --> 00:53:25,120
Speaker 2: well with my wife. I mean, we've done a whole

1233
00:53:25,160 --> 00:53:28,680
Speaker 2: lot this past year where we've instituted regular things that

1234
00:53:28,760 --> 00:53:31,239
Speaker 2: grow and where we feel more connected than ever And

1235
00:53:31,280 --> 00:53:34,359
Speaker 2: it's honestly, it's amazing. Same with the kids, but even

1236
00:53:34,480 --> 00:53:37,719
Speaker 2: beyond that other friends, and I think that's not something

1237
00:53:37,760 --> 00:53:40,600
Speaker 2: I've done as good of a job on over time.

1238
00:53:40,600 --> 00:53:42,880
Speaker 2: And you look at the Harvard Happiness Study, all right,

1239
00:53:42,880 --> 00:53:47,440
Speaker 2: it's like it's the longest standing longitudinal study on happiness,

1240
00:53:47,480 --> 00:53:50,800
Speaker 2: and the number one thing the quality of close relationships.

1241
00:53:50,920 --> 00:53:54,080
Speaker 2: And oftentimes we don't have time for relationships, because why

1242
00:53:54,760 --> 00:53:56,839
Speaker 2: what do we spend two thirds of our life doing

1243
00:53:57,200 --> 00:54:00,960
Speaker 2: half of our waking hours doing Joel, working oftentimes to

1244
00:54:01,000 --> 00:54:03,560
Speaker 2: pay for the things that we've chosen to purchase or

1245
00:54:03,560 --> 00:54:07,800
Speaker 2: that we have financed, and we're not putting our efforts

1246
00:54:07,800 --> 00:54:09,719
Speaker 2: in our time towards the things that are going to

1247
00:54:09,800 --> 00:54:13,840
Speaker 2: actually bring us true happiness. And so for me, that's something, honestly,

1248
00:54:13,920 --> 00:54:15,480
Speaker 2: like that's more of a priority for me. It's less

1249
00:54:15,480 --> 00:54:18,640
Speaker 2: the financial We're pretty comfortable. I'm still going to continue

1250
00:54:18,680 --> 00:54:20,680
Speaker 2: to work because I love doing this podcast with you.

1251
00:54:21,120 --> 00:54:23,919
Speaker 2: Don't you folks worry about the feed going cold? Even

1252
00:54:23,920 --> 00:54:25,239
Speaker 2: if I let it go cold. I don't think you

1253
00:54:25,239 --> 00:54:28,640
Speaker 2: would let it go cold, Joel. I think to say, Matt,

1254
00:54:29,560 --> 00:54:32,560
Speaker 2: me too, me too, as as evidenced by this rant.

1255
00:54:32,680 --> 00:54:34,839
Speaker 2: But more than anything, we have a community that like

1256
00:54:35,080 --> 00:54:37,200
Speaker 2: we care about Yes, we care. We want folks to

1257
00:54:37,239 --> 00:54:38,640
Speaker 2: make some like some of the things that we've been

1258
00:54:38,680 --> 00:54:40,680
Speaker 2: able to experience over the years. I want so I

1259
00:54:40,719 --> 00:54:43,200
Speaker 2: want everybody listening to also be able to experience that

1260
00:54:43,239 --> 00:54:46,120
Speaker 2: and share the joy of the optionality that you've purchased

1261
00:54:46,120 --> 00:54:46,879
Speaker 2: for yourself. Yeah.

1262
00:54:46,920 --> 00:54:49,480
Speaker 1: I feel like this is the perfect way to end

1263
00:54:49,520 --> 00:54:51,879
Speaker 1: an episode for the new year. I feel like there's

1264
00:54:51,920 --> 00:54:54,080
Speaker 1: so many other things we could toss in here, but

1265
00:54:54,239 --> 00:54:55,799
Speaker 1: we're not. We're gonna stop it there, and we'll say

1266
00:54:55,840 --> 00:54:56,640
Speaker 1: that for Wednesday.

1267
00:54:56,920 --> 00:54:59,680
Speaker 2: Yes, that's right. For next Monday's episode, we will you.

1268
00:54:59,560 --> 00:55:02,960
Speaker 1: Stick with of money? Hit subscribe and just yeah, please

1269
00:55:03,040 --> 00:55:06,520
Speaker 1: do ride with us. And if you have money questions,

1270
00:55:06,800 --> 00:55:08,400
Speaker 1: especially after listening to this episode, you're like, I think

1271
00:55:08,400 --> 00:55:09,000
Speaker 1: I'm in this gear?

1272
00:55:09,000 --> 00:55:09,719
Speaker 2: What do I do now?

1273
00:55:10,000 --> 00:55:12,200
Speaker 1: Like, please toss them our way. We'd love to take them.

1274
00:55:12,280 --> 00:55:14,640
Speaker 1: Next week we'll be back to regular programming and answering

1275
00:55:14,680 --> 00:55:17,640
Speaker 1: your listener questions. But that's that's one of my favorite

1276
00:55:17,680 --> 00:55:20,520
Speaker 1: parts of this show. And look forward to riding.

1277
00:55:20,320 --> 00:55:22,120
Speaker 2: With you this year. Let's do it. Man. Should we

1278
00:55:22,120 --> 00:55:23,480
Speaker 2: get back to the beer real quick? We should make

1279
00:55:23,520 --> 00:55:25,600
Speaker 2: it quick. I just noticed that we are over or

1280
00:55:25,640 --> 00:55:27,399
Speaker 2: we're like right out an hour, which I can't believe

1281
00:55:27,440 --> 00:55:29,319
Speaker 2: we went that long, I know, but when you've.

1282
00:55:29,239 --> 00:55:31,399
Speaker 1: Got stuff to say and when you're having fun, yeah,

1283
00:55:31,440 --> 00:55:34,240
Speaker 1: i'd say this ipa from Burial it was like classic.

1284
00:55:34,360 --> 00:55:36,120
Speaker 1: It was like a low key ipa from one of

1285
00:55:36,120 --> 00:55:39,680
Speaker 1: the goats. It was. It was not like overly ridiculous.

1286
00:55:40,080 --> 00:55:42,400
Speaker 1: Some of the Burial IPAs are just like so happy

1287
00:55:42,440 --> 00:55:44,920
Speaker 1: that makes your brain melt. I would say this one

1288
00:55:44,920 --> 00:55:46,759
Speaker 1: did not quite hit that level. But yeah, this one

1289
00:55:46,840 --> 00:55:48,840
Speaker 1: kind of had like the juicy hotness going on. Like

1290
00:55:48,880 --> 00:55:53,640
Speaker 1: this reminded me of a classic New England hazy ipa,

1291
00:55:53,880 --> 00:55:55,680
Speaker 1: Like it had the happiness going on, but it was

1292
00:55:55,719 --> 00:55:57,719
Speaker 1: more like a like an earthy happiness mixed with some

1293
00:55:57,800 --> 00:56:00,799
Speaker 1: of that some of that juice. And I part of

1294
00:56:00,800 --> 00:56:02,480
Speaker 1: me wonders if we let this one sit too long

1295
00:56:02,520 --> 00:56:05,240
Speaker 1: in the fridge from last year, like it it almost

1296
00:56:05,239 --> 00:56:07,000
Speaker 1: tastes does it taste a little bit old to you?

1297
00:56:08,200 --> 00:56:11,239
Speaker 1: I pas, you want to drink as fresh as possible,

1298
00:56:11,600 --> 00:56:15,080
Speaker 1: And this is one that almost had some almost like

1299
00:56:15,080 --> 00:56:17,880
Speaker 1: metallocky kind of flavor, you know, like canned fruit juices,

1300
00:56:18,320 --> 00:56:22,000
Speaker 1: like the giant can of dull pineapple juice, like it's

1301
00:56:22,040 --> 00:56:23,600
Speaker 1: kind of metallocky, it's kind of tinny.

1302
00:56:23,800 --> 00:56:27,520
Speaker 2: I love that flavor. For some reason, you should be

1303
00:56:27,560 --> 00:56:29,840
Speaker 2: sitting on all your classes. I should burial I. I

1304
00:56:29,840 --> 00:56:31,359
Speaker 2: feel like it had a little bit of that, but

1305
00:56:31,400 --> 00:56:33,680
Speaker 2: honestly it didn't detract too much at all from the

1306
00:56:34,080 --> 00:56:37,160
Speaker 2: overall enjoyment. Yeah, we'll keep drinking good beer kee. I

1307
00:56:37,160 --> 00:56:39,360
Speaker 2: got to enjoy it. Yeah, all right, that's gonna do it.

1308
00:56:39,360 --> 00:56:41,120
Speaker 1: For this episode, we'll have links to some of the

1309
00:56:41,160 --> 00:56:43,080
Speaker 1: resources we mentioned up on the site. I had the

1310
00:56:43,120 --> 00:56:44,040
Speaker 1: money dot com.

1311
00:56:44,120 --> 00:56:46,920
Speaker 2: You know it. And until next time, best Friends Out,

1312
00:56:47,080 --> 00:57:02,319
Speaker 2: Best Friends Out.