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

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Speaker 1: and today we're discussing how having an arbitrage mindset changes everything.

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Speaker 1: So I cannot help but to think of sabotage. Every

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Speaker 1: time we hear the word arbitrage, it makes me think

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Speaker 1: of the old Beastie Boys song sabotage. I'm sure listening

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Speaker 1: to Boys I did. I had the Airplane CD with

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Speaker 1: airplane on the front. Okay, so it made me think

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Speaker 1: of So we were just talking about before we hit record.

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Speaker 1: You're talking about visiting Dollywood. He went to Dollywood with

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Speaker 1: some family up in Tennessee, and uh, we're talking about

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Speaker 1: roller coasters, and this makes me think of specifically I

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Speaker 1: think it was called the rock and Roller or something

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Speaker 1: like that. There's a roller coaster or whatever, Orlando, you

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Speaker 1: know what I'm talking about. Yeah, I've been on the

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Speaker 1: Aerosmith roller Coast. It's like you get to choose your

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Speaker 1: music when you're on there, at least at least when

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Speaker 1: when we went, you could you have the option. I

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Speaker 1: don't remember that. Me and my buddy Steve, Uh, him

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Speaker 1: and I were sitting next to each other. We're like, Hey,

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Speaker 1: what do you want to rock? And roll to and

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Speaker 1: we chose sabotage. But that's not what we're talking about

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Speaker 1: this episode. We're talking about arbitrage, what it is and

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Speaker 1: how you can use this concept to get ahead with

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Speaker 1: your money. We're gonna talk all about arbitrage today. Man,

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Speaker 1: I'm really excited for this episode. Uh. First, actually, I

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Speaker 1: was talking to my neighbor the other day and it

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Speaker 1: turns out man that he has had some really great

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Speaker 1: success forging for mushrooms. So first of all, I want

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Speaker 1: to get your thoughts on forging for mushrooms. Do you

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Speaker 1: feel Uh you're looking at me with like a very

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Speaker 1: skeptical eye, and I think I know what your answer is.

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Speaker 1: I was gonna ask you, like, would you forge for mushrooms?

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Speaker 1: Is that something that you would do? No, I don't

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Speaker 1: like mushrooms all that much. I'm not not a big

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Speaker 1: mushroom guy. Mushrooms are so good rated well, you know,

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Speaker 1: to each stone. But I think if it was something

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Speaker 1: out was into and there was like a place nearby

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Speaker 1: and it was like a craft beer outdoor excursion, think

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Speaker 1: if I could forage for yes, I would. I would

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Speaker 1: do that. Uh, well, he would eventually like some waterfall

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Speaker 1: a distance off and could flowed with craft beer. Oh yeah,

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Speaker 1: three miles through the woods to get there. I would,

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Speaker 1: I would make that track. If they like jumped out

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Speaker 1: of the water, you had to catch them with your

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Speaker 1: hand like wild salmon. Oh I got a big one.

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Speaker 1: I got a seven fifty exactly. That would be quite

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Speaker 1: the magical world to live in. But yeah, I was

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Speaker 1: talking to my neighbor and he's he's a part of

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Speaker 1: this forging group as well. But dude, he has found

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Speaker 1: a good number of morales plus all these other mushrooms

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Speaker 1: that I've never heard of. But of course you need

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Speaker 1: to make sure that you're you're being informed when it

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Speaker 1: comes to forging, I would accidentally pick the wrong ones.

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Speaker 1: And yeah, exactly, and so yeah, so when it comes

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Speaker 1: to the frugal ord cheap debate, it's frugal if you

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Speaker 1: know what you're doing, uh, and you know, it can

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Speaker 1: be a lot of fun because I love getting outdoors,

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Speaker 1: hiking through the woods, and man, if you happen to

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Speaker 1: also be looking for some delicious morals, you know, some

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Speaker 1: great mushrooms while you're at it, I think that could

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Speaker 1: be a ton of fun. But yeah, you could go

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Speaker 1: from being frugal to cheap if you pay the ultimate

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Speaker 1: cost with your life. Today, we're like, I don't even

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Speaker 1: want to get sick from eating something I shouldn't have eaten,

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Speaker 1: especially when it comes to something like mushrooms. And so

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Speaker 1: it makes me think too. You've heard of the restaurant Noma, right,

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Speaker 1: and yeah, I think it's a Danish restaurant and it

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Speaker 1: wasn't It hasn't been like named the best restaurant in

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Speaker 1: the world for a bunch of years. And the guy

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Speaker 1: who started that restaurant essentially, uh, foraging is the major

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Speaker 1: concept behind the food. There. They go and they get

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Speaker 1: local stuff. It's not just local farmers, it's not just

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Speaker 1: farm to table, but they're like harvesting the stuff themselves

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Speaker 1: and they're like walking Yeah, was it the chef's table

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Speaker 1: that they featured him as well? I remember they were

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Speaker 1: walking like along the bay and you start he's just

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Speaker 1: like finding stuff, like he's like this making for dinner

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Speaker 1: to night, and it's like, oh, that's cool. I mean

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Speaker 1: that if if you're able to then turn that into

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Speaker 1: a profit, I mean that's actually kind of arbitrage taking

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Speaker 1: the free stuff and making killer dinners. That calls a

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Speaker 1: lot of money out of it, absolutely, man. Yeah, but

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Speaker 1: we actually can link to this this great guide by

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Speaker 1: wire Cutter. They've got The author of this article talked

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Speaker 1: about how he started forging for mushrooms, and he had

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Speaker 1: a lot of great tips in there, and and and

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Speaker 1: the ultimate kind of cardinal rule when it comes to

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Speaker 1: forging for mushrooms is if in doubt, throw it out,

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Speaker 1: because obviously you don't want to not worth us. Yeah,

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Speaker 1: you don't wanna put your life in harm's way by potentially,

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Speaker 1: you know, getting something that may or may not be

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Speaker 1: good for you. This is not foraging advice. Yeah, just

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Speaker 1: you know, Well, here's the quick thing. If anybody out

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Speaker 1: there listens to the show and they do forge for mushrooms,

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Speaker 1: I would love to hear from you what it is

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Speaker 1: that you're looking for. Maybe you live and I don't

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Speaker 1: know where you have to live to find like the

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Speaker 1: really good stuff. I actually see some picks of your

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Speaker 1: shrooms too, Like, yeah, you know, that'd be awesome. I

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Speaker 1: bet there's like some beautiful mushrooms out there that taste delicious,

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Speaker 1: and I bet I could even be converted intellecting them.

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Speaker 1: All right, Well, Matt, let's keep moving on. Let's mention

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Speaker 1: the beer that we're having on the show. This one's

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Speaker 1: called Pineapple Upside Down Shake by New Grass Brewing Company.

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Speaker 1: You were just up in North Carolina, you picked up

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Speaker 1: this beer for us, So thank thank you, my friend,

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Speaker 1: and looking forward to having this one on the show today. Absolutely.

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Speaker 1: All right, Well, Matt, let's get into the subject at hand. Today.

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Speaker 1: We're discussing having an arbitrage mindset and how that changes everything.

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Speaker 1: And it made me think about this Olympic high jumper

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Speaker 1: from back in the nineteen sixties. His name was Dick Fosbury,

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Speaker 1: and he basically changed the sport of high jumping forever

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Speaker 1: the first time he jumped backwards over the bar. Until then,

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Speaker 1: every competitor ever before had launched themselves into the air

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Speaker 1: going forward belly over the bar. And uh, yeah, I'm

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Speaker 1: not the last time anybody watched a high jumping event,

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Speaker 1: maybe recently right with the Olympics called but but yeah,

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Speaker 1: now every high jumper uses Dick's technique. So yeah, Dick

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Speaker 1: Fosbury essentially exploited a flaw in the high jumping world

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Speaker 1: that no one else was paying attention to. And yeah,

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Speaker 1: to me, that's that's the basics of what arbitrage is.

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Speaker 1: It's exploiting an opportunity. And once you start seeing arbitrage opportunities,

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Speaker 1: you'll actually start to notice that they exist essentially everywhere, right,

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Speaker 1: you can't unsee them. So like Dick and then every

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Speaker 1: high jumper after him, you can't really go back to,

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Speaker 1: you know, living like you used to. You can't go

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Speaker 1: back to doing the high jump Billy first. It's like

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Speaker 1: the game has changed now and I am now an

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Speaker 1: arbitrage enthusiast. Yeah, that's right. It takes looking at different

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Speaker 1: things that were presented within life with a different lens. Right.

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Speaker 1: And when it comes to our money, obviously, life isn't cheap.

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Speaker 1: You know, it doesn't have to cost a ton of money,

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Speaker 1: but it costs some money, right, and none of us

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Speaker 1: have a limitless supply of that money exactly. Well, that's

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Speaker 1: kind of like the ultimate problem with life is that

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Speaker 1: we can't just like summon money like the fed. The

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Speaker 1: ultimate problem is what's the meaning of it all? And

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Speaker 1: we're not gonna get into that, that is true, but

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Speaker 1: we're just talking about money here. Uh. And you know,

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Speaker 1: oftentimes we go through life just making the same default,

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Speaker 1: standard issue decisions just because we've taken the path of

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Speaker 1: least resistance, right, we haven't thought creatively about the different

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Speaker 1: problems that we're faced with. And this is often the

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Speaker 1: case when it comes to making money. You know, the

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Speaker 1: questions that typically come up are like, Okay, where are

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Speaker 1: you going to go to college? And what are you

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Speaker 1: gonna study? But in reality, how much time is actually

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Speaker 1: given to whether or not college is even the best

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Speaker 1: path for that person And can often apply to the

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Speaker 1: different expenses in our lives as well, not just how

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Speaker 1: we make money, but how we spend our money. Someone

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Speaker 1: might be moving to Atlanta, Oh, what what neighborhood are

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Speaker 1: you going to buy a house in? Or maybe it's oh,

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Speaker 1: you're wanting to get healthy, Like what, Jim, are you

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Speaker 1: going to join? Uh? And so I want to question

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Speaker 1: the question. We don't want to just assume the default answer.

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Speaker 1: And in many areas of our lives, it's almost as

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Speaker 1: if there's this invisible template that we're following. But we're

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Speaker 1: trying to challenge these assumptions, particularly because they impact your wealth.

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Speaker 1: And so that's a huge reason we're focusing on building

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Speaker 1: an arbitrage mindset. We want you to think creatively about

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Speaker 1: the different money problems that you're going to encounter. Yeah,

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Speaker 1: so let's give a little bit of a definition around arbitrage.

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Speaker 1: Maybe we have like a basic concept based on what

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Speaker 1: we discussed already, but Matt, when it comes down to it,

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Speaker 1: arbitrage is basically the difference between the price that you

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Speaker 1: can pay for something and then what you can get

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Speaker 1: for that thing from somebody else, right, And so when

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Speaker 1: we're talking about arbitrage, it's basically the idea of taking

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Speaker 1: advantage of an inefficiency. The main way arbitrage has been

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Speaker 1: used in the past is in currency trading, but currency

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Speaker 1: trading is a risky thing that we're not really into,

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Speaker 1: you know, it's not something that we would recommend. That's

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Speaker 1: not what we're talking about today. Now, we're not gonna

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Speaker 1: talk about that. There's other ways though, that you can

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Speaker 1: use that concept, that idea to your advantage. We're gonna

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Speaker 1: get practical today, but we'll also discuss your mindset the

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Speaker 1: same time. We'll give concrete ideas for specific areas in

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Speaker 1: your life that you can start pursuing arbitrage. And then

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Speaker 1: also you know ways in which to kind of see

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Speaker 1: arbitrage around you everywhere you look. So, yeah, we would

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Speaker 1: say that developing that arbitrage mindset is something that anybody

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Speaker 1: listening can begin doing immediately and they can start to

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Speaker 1: see results. Right. Becoming more arbitrage minded essentially means that

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Speaker 1: you're thinking more like a business with inputs and outputs

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Speaker 1: and less like a purchasing consumer. That's also completely separate

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Speaker 1: from the side of you that is an income generating employee,

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Speaker 1: because they are one and the same, right exactly, And

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Speaker 1: uh just makes me think of a recent purchase I

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Speaker 1: was making. I'm heading to the beach with the kiddos

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Speaker 1: and there's the spot it's perfect for kayaking, and I

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Speaker 1: want to take them out, And so I'm looking for

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Speaker 1: this inflatable two seater kayak and I'm scaring Craigslist and

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Speaker 1: Facebook yard sale for a used one. And in my mind,

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Speaker 1: all I'm thinking is can I get it cheap enough

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Speaker 1: that when I'm done with it after this trip, I

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Speaker 1: can actually flip it and make more money. So, like,

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Speaker 1: if I can buy this inflatable kayak for eighty bucks,

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Speaker 1: can I then sell it for a hundred when I

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Speaker 1: get when I get back to town by taking better

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Speaker 1: pictures or you know, just by making a better listing.

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Speaker 1: That to me is like just a small example of

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Speaker 1: like how I think about arbitrage in my life, even

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Speaker 1: if something as mundane as the purchase of a used

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Speaker 1: good online, that's excellent, dude, I love how you are

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Speaker 1: thinking about that um on a personal level, right. But

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Speaker 1: you know, at a very high level, arbitrage is just

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Speaker 1: one of the basic building blocks of markets. And so

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Speaker 1: by really zooming out, you can see how arbitrage is

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Speaker 1: really just at the core of most businesses. You know,

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Speaker 1: that is taking on raw goods, creating something either better

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Speaker 1: or something simpler. It's something a little more unique in

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Speaker 1: order to sell it at a markup in order for

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Speaker 1: that bi us to make a profit. And so by

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Speaker 1: this definition, you know, something as simple as the smoothie

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Speaker 1: that you may have purchased while running some errands, like

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Speaker 1: smoothie like I P A or um what is it? Yeah,

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Speaker 1: pineapple upside down to Jake, I P A. Even something

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Speaker 1: as simple as that is a form of arbitrage. So

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Speaker 1: maybe you can't make a beer at home, but like

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Speaker 1: with a smoothie, you know, maybe at home, could you

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Speaker 1: have taken some strawberries of some spinach, some milk ice.

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Speaker 1: Could you have mixed that in your own blender and

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Speaker 1: made something delicious and healthy, like, yeah, you definitely could.

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Speaker 1: But the company selling you a smoothie, you know, they're

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Speaker 1: betting on the fact that they can make either a

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Speaker 1: better one or they can make a smoothie that's more convenient.

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Speaker 1: It's like, don't get all your kitchen stuff dirty. Come

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Speaker 1: by a smoothie her exactly while you're out running errands.

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Speaker 1: It's super easy, and they're betting on the fact that

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Speaker 1: it's going to be worth the trade off for you

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Speaker 1: to pay them for that SMOOTHI instead of you making

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Speaker 1: one yourself. All right. So that's a good example, Matt.

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Speaker 1: Let's talk about other maybe businesses that in particular specialized

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Speaker 1: in arbitrage, like Ali's Bargain Outlet. Big Lots is another story.

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Speaker 1: T J max And is another story that they're just

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Speaker 1: like Council, countless examples of different stores that specialize in arbitrage.

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Speaker 1: So Ali's, for instance, Ali's Bargaining Outlet. I'm not sure

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Speaker 1: if people have them where they live. I I've been

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Speaker 1: into a one a couple of times with my father

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Speaker 1: in law. I never have. He likes Ali's Bargaining Outlet. Um,

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Speaker 1: it's a mixture, Matt, I would say, I don't think

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Speaker 1: it would be your style. Uh, and it's not even

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Speaker 1: necessarily my style. But what they do, you know, it's

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Speaker 1: it's arbitrage at its finest, and it appeals to some folks.

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Speaker 1: So Ali's, for instance, sells all sorts of goods that

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Speaker 1: were unwanted other retailers. And and I looked up what

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Speaker 1: Alie says on its website. I wanted to figure out,

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Speaker 1: you know, how they build themselves. What's your mission statement? Right? Exactly?

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Speaker 1: They say if a manufacturer makes too much of an

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Speaker 1: item or changes their packaging, Ali's will buy overstocked or

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Speaker 1: old packaged items. So basically, at its core, Ali's is

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Speaker 1: exploiting arbitrage opportunities. And um, yeah, I don't even mean

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Speaker 1: to use the term exploit in a negative way because

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Speaker 1: I think it's actually a good thing. It's a healthy

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Speaker 1: thing for the market, making use of right exactly exactly

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Speaker 1: like your mushrooms that are going bad giving them to

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Speaker 1: your neighbor. Um, that's he's exploiting you not liking mushrooms

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Speaker 1: or may not like mushrooms. You've got your head and

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Speaker 1: the whole forging for mutionoms things. Yeah, I know. So yeah,

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Speaker 1: it really much of what alise cells might have otherwise

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Speaker 1: been thrown away or basically been completely useless, but they're

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Speaker 1: reusing it in a way um. And all these customers

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Speaker 1: they know what to expect. They love the cheap prices.

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Speaker 1: And really it's the same with stores like TJ Max

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Speaker 1: and big Lots too, right those stores are scooping up

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Speaker 1: last season's items for pennies on the dollar um, And

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Speaker 1: they've established a successful business model doing it. So when

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Speaker 1: you think about it like that, there are thriving businesses

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Speaker 1: that have made arbitrage the very center of their business. Absolutely. Yeah,

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Speaker 1: But you know, arbitrage it's not just about big companies

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Speaker 1: and massive store phone operations. We think that by thinking

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Speaker 1: of your own personal finances through the lens of an

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Speaker 1: entrepreneur or as a business owner, we think that you'll

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Speaker 1: be able to take advantage of the benefits of arbitrage

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Speaker 1: to boost your net worth, to make you more profitable

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Speaker 1: as a person, sort of like a business would. And

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Speaker 1: so we'll get into some of the specifics how you

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Speaker 1: can implement arbitrage, how you can adopt more of an

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Speaker 1: arbitrage mindset, and we'll get to all of that right

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Speaker 1: after this break, all right before the break, you said,

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Speaker 1: we want to make people more profitable, like human beings,

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Speaker 1: more profitable people. I thought that was kind of a

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Speaker 1: cool way to each individual to be more successful. We

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Speaker 1: want your your your stock valuation go up. I want

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Speaker 1: I want Joel LLC to be worth more tomorrow than

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Speaker 1: it is today. Okay, I like that. I like that goal.

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Speaker 1: So yeah, let's talk about like a specific ways people

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Speaker 1: can first, before we get into some of the specifics

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Speaker 1: on mindset, let's talk about some real, physical, tangible ways

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Speaker 1: that people could use arbitrage without being a big business

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Speaker 1: in order to make money. Right. That's right. So before

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Speaker 1: before the break, we talked about how arbitrage is this

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Speaker 1: core principle of a lot of businesses, but on a

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Speaker 1: smaller level, you know, it's it's something that basically anybody

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Speaker 1: can participate in as an individual. You know. There was

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Speaker 1: this interesting post on this website dollar Sprout Mat a

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Speaker 1: couple of months ago, and this guy named Ben he

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Speaker 1: bought a hundred thousand dollars worth of Pokemon cards during

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Speaker 1: the pandemic. I'm not sure if he was just bored

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Speaker 1: or this is like, uh, it sounds like he's his

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Speaker 1: new favorite thing now because he is making money doing it.

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Speaker 1: He started flipping them on eBay um and as he

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Speaker 1: learned about the pricing dynamics of specific Pokemon cards, he

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Speaker 1: was able to make a really good profit. He even

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Speaker 1: began to buy single cards on eBay that were listed

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Speaker 1: poorly and then he sold them himself, making real money

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Speaker 1: in the process. So he not only was he like

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Speaker 1: doing the most basic form of arbitrage by like dividing

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Speaker 1: something up and then reselling it, he said, you know what,

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Speaker 1: I see another way in which I can make money.

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Speaker 1: These people don't know what they're doing, and I'm going

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Speaker 1: to capitalize on their poor listing. I'm gonna buy it.

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Speaker 1: I'm gonna create a good listing, and then I'm going

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Speaker 1: to make money. Right. So, yeah, he was able to

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Speaker 1: exploit a few different inefficiencies, uh and make money from

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Speaker 1: this imperfect market of the online sale of Pokemon cards.

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Speaker 1: So I feel like, yeah, reading that it made you

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Speaker 1: realize that arbitrage possibilities are kind of endless. They can

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Speaker 1: be found in a whole host of places. Yeah, there's

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Speaker 1: a lot of different advantages and angles that we can

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Speaker 1: take when it comes to arbitrage. And you know, one

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Speaker 1: of Ben's tips was to look for cards at non

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Speaker 1: peak hours when there's less competition. But he's also mentioned

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Speaker 1: some pitfalls like avoiding payment scams and the folks selling

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Speaker 1: fake Pokemon cards. You don't want that. Yeah, and so

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Speaker 1: over time, obviously you need to have some knowledge, uh

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Speaker 1: that that's required in order to actually profit. But still,

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Speaker 1: retail arbitrage is a common way to make extra money, Joel.

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Speaker 1: You know, I we had a friend who used to

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Speaker 1: go to thrift stores. He bought the best stuff there

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Speaker 1: at the thrift stores and resold it on eBay, and

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Speaker 1: he actually made a living by doing this and supported

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Speaker 1: his family for years. Uh. And now he basically does

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Speaker 1: the exact same thing, but with mid century furniture, and

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Speaker 1: through that process he really knows his stuff. He's got

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Speaker 1: really nice, high end stuff, stuff that you know, I

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Speaker 1: follow on Instagram and I see stuff up there and

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Speaker 1: I'm like, oh, I want that in my house, some

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Speaker 1: mid century pianos. Recently, I'm like, oh, And it's stuff

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Speaker 1: that he has found sometimes on the side of the road.

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Speaker 1: Literally one time, there's just one show that you found

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Speaker 1: on the side of the road. It's amazing. This is

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Speaker 1: also what our friend Katie Woke Stanley does she buys

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Speaker 1: stuff at goodwill or even she snacks stuff also on

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Speaker 1: the side of the road for free and resells it

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Speaker 1: on eBay as well, And so the possibility is to

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Speaker 1: profit from arbitrage are virtually endless here. Granted, this is

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Speaker 1: a form of arbitrage that starts to look more like

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Speaker 1: a side hustle or even a part time or full

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Speaker 1: time job. But I don't want to make it sound

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Speaker 1: like that that's a bad thing. Being a collector and

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Speaker 1: understanding the mid century furniture market is one that every

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Speaker 1: Boddy's found incredibly fulfilling. He has gained a lot of

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Speaker 1: knowledge through this process. He's now an expert on mid

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Speaker 1: century furniture and it now allows him to work for himself. Yeah. Man,

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Speaker 1: it can be so basic to arbitrage, right. Like I've

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Speaker 1: mentioned on the show that we're doing some renovations to

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Speaker 1: the house. When we were getting rid of some of

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Speaker 1: our scrap metal, he was put it on the side

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Speaker 1: of the road. Guess what, there are people that drive

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Speaker 1: around town looking for this scrap metal because they can

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Speaker 1: turn a off it from it. There's it's It's truly

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Speaker 1: the principle of one person's trash the other person's treasure,

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Speaker 1: And yeah, I feel like too talking about retail arbitrage,

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Speaker 1: It's becomes so much easier for the average person to

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Speaker 1: participate in that process of like buying something at a

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Speaker 1: discount and then selling it for a profit. And it's

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Speaker 1: a legitimate way for people to even purchase brand new

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Speaker 1: items immediately to resell if they're discounted enough. Right, you

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Speaker 1: don't even need a storefront in order to make it happen,

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Speaker 1: because the Internet can make it easy to find the

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Speaker 1: deals and then to read list those items quickly, and

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Speaker 1: even before you buy it, you can check on the

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Speaker 1: internet to see, oh, what is this item typically selling

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Speaker 1: for their even specific apps you can download to make

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Speaker 1: sure that the item that you're buying sells quickly and

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Speaker 1: will sell for a profit based on the price that

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Speaker 1: you're paying. But there are also a few important things

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Speaker 1: that you're gonna want to pay attention to if you're

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Speaker 1: opting to try retail arbitrage. Income potential, Like I just

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Speaker 1: mentioned obviously one of those what about quantity, like how

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Speaker 1: many of them can you buy? And then the size

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Speaker 1: and the weight, because if you're selling one off items,

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Speaker 1: you know it's gonna be a little more difficult. You

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Speaker 1: have to create that listing for every single item that

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Speaker 1: you buy. But if you can buy a hundred of something,

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Speaker 1: then you can magnify your your profits. Right. Size and

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Speaker 1: weight are also important so that your profit isn't consumed

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Speaker 1: by the shipping costs. That is something that could bite

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Speaker 1: you in the butt as you're attempting to pursue retail arbitrage.

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Speaker 1: But yeah, if you keep all vintage bowling balls or

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Speaker 1: something like that, man I chose the wrong market exactly exactly.

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Speaker 1: And if it is yeah, if it is highly profitable

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Speaker 1: but it also is a substantial size, well it might

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Speaker 1: work out right because then you can hire someone to

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Speaker 1: take it across the country for you. But you're right,

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Speaker 1: vintage bowling balls would probably be the quintisential worst way

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Speaker 1: you can go about retail arbitrage. Yeah, so we're talking

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Speaker 1: yeah specifically, and we're talking about retail arbitrage, right, and

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Speaker 1: so becoming arbitrage minded it does extend far beyond just

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Speaker 1: the retail landscape. Here. The cost of housing is easily

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Speaker 1: the most expensive line item on our budgets, and developing

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Speaker 1: an arbitrage mindset can not only save you a ton

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Speaker 1: of money, but it can also make you healthy sum

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Speaker 1: every single month as well. So we're talking about house

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Speaker 1: hacking here. Uh So, the default consumer mindset, they you know,

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Speaker 1: they consider how much they can afford every month on

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Speaker 1: rent or mortgage. Maybe they add like ten to that

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Speaker 1: after they talked to like a realtor so, you know,

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Speaker 1: and then they see what's out there, they're like, oh,

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Speaker 1: maybe I can afford just a little bit more, and

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Speaker 1: you know, then they're just stretched every single month to

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Speaker 1: cover that cost to the point that they can't achieve

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Speaker 1: any significant financial goals otherwise house poor exactly. And then

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Speaker 1: they might try to find other ways to pay less,

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Speaker 1: maybe by negotiating rent, or maybe they choose not to

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Speaker 1: live in the neighborhood and you know that has the

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Speaker 1: really nice pool and they're really expensive h o A fees.

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Speaker 1: But here is the problem. Their focus is still on consumption.

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Speaker 1: They're not thinking of how they can instantly transform this,

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Speaker 1: uh this expense into something that would potentially generate some income,

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Speaker 1: turning that liability into an asset. Right that is slipping

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Speaker 1: on his head. Yeah, that is one of the key

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Speaker 1: elements when we're talking about arbitrage. So when you're thinking

426
00:19:55,080 --> 00:19:57,919
Speaker 1: like an arbitrage r which I think is what they're called, right,

427
00:19:58,040 --> 00:19:59,760
Speaker 1: that's at least the French term. I don't know, yeah,

428
00:20:00,119 --> 00:20:04,760
Speaker 1: sort of arbitragery perfect I like it. Uh yeah. You

429
00:20:04,840 --> 00:20:07,280
Speaker 1: basically you set out apartment hunting or house hunting with

430
00:20:07,320 --> 00:20:11,359
Speaker 1: a completely different mindset. You're you're thinking less about the

431
00:20:11,440 --> 00:20:13,879
Speaker 1: level of comfort and luxury that you can live in.

432
00:20:14,119 --> 00:20:16,560
Speaker 1: You're thinking more about the long term. And so you've

433
00:20:16,600 --> 00:20:18,840
Speaker 1: maybe already talked with three other friends who are totally

434
00:20:18,880 --> 00:20:21,400
Speaker 1: interested in renting rooms of a house that you're going

435
00:20:21,440 --> 00:20:24,240
Speaker 1: to put it down payment on, right, or maybe you

436
00:20:24,280 --> 00:20:26,600
Speaker 1: don't have the those friends in mind just yet, and

437
00:20:26,640 --> 00:20:28,560
Speaker 1: maybe you're not super social. We will have like three

438
00:20:28,560 --> 00:20:31,280
Speaker 1: friends who are just dying to live with you, but

439
00:20:31,520 --> 00:20:34,320
Speaker 1: still that's your plan. So you know, you're only looking

440
00:20:34,320 --> 00:20:36,960
Speaker 1: at houses that have rooms with attached bathrooms or something

441
00:20:37,000 --> 00:20:38,960
Speaker 1: like that that you could you know, and and then now,

442
00:20:39,000 --> 00:20:41,760
Speaker 1: of course there's obviously just so many ways to rent

443
00:20:41,800 --> 00:20:43,639
Speaker 1: that room out that are easy. Doesn't have to be

444
00:20:43,680 --> 00:20:47,240
Speaker 1: a friend, but that is fairly easy criteria to stick with, right,

445
00:20:47,480 --> 00:20:49,360
Speaker 1: and since you've already been smart with your money, you're

446
00:20:49,520 --> 00:20:52,479
Speaker 1: easily able to put down so that the monthly payment

447
00:20:52,560 --> 00:20:55,520
Speaker 1: is affordable and then lo and behold, you're actually making

448
00:20:55,560 --> 00:20:59,040
Speaker 1: money somehow every single month because you've house hacked. So yeah,

449
00:20:59,040 --> 00:21:01,520
Speaker 1: finding ways to house is a great way to flex

450
00:21:01,560 --> 00:21:05,720
Speaker 1: those arbitrage muscles of it, turning that liability into an

451
00:21:05,760 --> 00:21:09,480
Speaker 1: asset that is producing income that isn't just sucking you

452
00:21:09,560 --> 00:21:11,760
Speaker 1: dry every single month. Exactly. I kind of wish we

453
00:21:11,760 --> 00:21:14,679
Speaker 1: would have just started with this housing arbitrage, because we

454
00:21:14,720 --> 00:21:16,440
Speaker 1: all have to live somewhere. But not everybody wants to

455
00:21:16,440 --> 00:21:19,919
Speaker 1: flip Pokemon cards on you, right, but everybody has to

456
00:21:20,040 --> 00:21:21,680
Speaker 1: have some place to live. And if you can get

457
00:21:21,680 --> 00:21:23,880
Speaker 1: this one thing right, this can easily be a way

458
00:21:24,400 --> 00:21:27,400
Speaker 1: that you see your finances go in an incredible direction.

459
00:21:27,720 --> 00:21:29,440
Speaker 1: And you know, since we're talking about housing, us talk

460
00:21:29,480 --> 00:21:31,960
Speaker 1: about other ways to determine where you choose to live.

461
00:21:32,440 --> 00:21:35,160
Speaker 1: This is an arbitrage opportunity in and of itself. That's

462
00:21:35,200 --> 00:21:39,359
Speaker 1: called geographic arbitrage. You can take this to an extreme, right,

463
00:21:39,400 --> 00:21:42,000
Speaker 1: if you want to move to like, uh, Thailand, if

464
00:21:42,000 --> 00:21:44,920
Speaker 1: you want to move to Southeast Asia, it's incredibly cheap

465
00:21:44,960 --> 00:21:47,639
Speaker 1: to live there. Uh And like even now, there are

466
00:21:47,640 --> 00:21:50,240
Speaker 1: a lot of early retirees moving to Portugal because it's

467
00:21:50,240 --> 00:21:52,199
Speaker 1: a nice place to live, and it's a good bit

468
00:21:52,320 --> 00:21:55,240
Speaker 1: cheaper than the cost of living in much of the

469
00:21:55,280 --> 00:21:59,560
Speaker 1: United States. But combining a great, steady salary job that

470
00:21:59,600 --> 00:22:02,400
Speaker 1: allows you to work from anywhere, that is the key

471
00:22:02,520 --> 00:22:05,719
Speaker 1: to geographic arbitrage. You've got that steady income coming in,

472
00:22:05,760 --> 00:22:08,440
Speaker 1: but you're finding ways to reduce in a major way

473
00:22:08,640 --> 00:22:10,400
Speaker 1: the money that's going out, the money you're spending every

474
00:22:10,400 --> 00:22:13,280
Speaker 1: single month. And obviously not everybody can do this right.

475
00:22:13,359 --> 00:22:16,600
Speaker 1: Some people have jobs that are tied to a specific location.

476
00:22:16,960 --> 00:22:18,600
Speaker 1: A lot of people have jobs that are tied to

477
00:22:18,640 --> 00:22:21,399
Speaker 1: a specific location, but that is probably less the case

478
00:22:21,480 --> 00:22:24,240
Speaker 1: today than ever before. More and more people have this

479
00:22:24,280 --> 00:22:27,440
Speaker 1: sort of flexibility and could use something like geographic arbitrage

480
00:22:27,520 --> 00:22:29,719
Speaker 1: their advantage. And let's say you don't want to leave

481
00:22:29,800 --> 00:22:33,080
Speaker 1: your home country. You love the United States, Hey, me too,

482
00:22:33,320 --> 00:22:36,440
Speaker 1: So maybe you don't want to be an next pat Yeah, exactly,

483
00:22:36,480 --> 00:22:40,160
Speaker 1: and that's understandable. Maybe your Portuguese isn't so hot, and

484
00:22:40,480 --> 00:22:42,359
Speaker 1: you you, you know, you're not ready to dedicate that

485
00:22:42,440 --> 00:22:45,000
Speaker 1: much time to do a lingo and learning that language,

486
00:22:45,440 --> 00:22:47,480
Speaker 1: So I understand you just want to pick up and

487
00:22:47,520 --> 00:22:50,000
Speaker 1: move to a cheaper cost of living state. That's a

488
00:22:50,040 --> 00:22:52,600
Speaker 1: worthwhile way to go to or even it could be

489
00:22:52,640 --> 00:22:56,040
Speaker 1: as simple as moving to a less expensive county nearby

490
00:22:56,119 --> 00:22:58,840
Speaker 1: where you live, same state, just a cheaper spot in

491
00:22:58,880 --> 00:23:01,280
Speaker 1: that state, right, and you're in one of the really

492
00:23:01,359 --> 00:23:03,720
Speaker 1: high cost of living areas, right like if you're in

493
00:23:03,800 --> 00:23:07,440
Speaker 1: California or New York City. Um, checking out less expensive

494
00:23:07,440 --> 00:23:09,080
Speaker 1: parts of the country can make a whole lot of sense.

495
00:23:09,520 --> 00:23:12,120
Speaker 1: And this is of course more realistic as work from

496
00:23:12,119 --> 00:23:15,040
Speaker 1: home opportunities are going to be even more prevalent now

497
00:23:15,119 --> 00:23:17,320
Speaker 1: than they've ever been before. And the cool thing about

498
00:23:17,320 --> 00:23:21,439
Speaker 1: geographic arbitrage too is maybe it doesn't even mean that

499
00:23:21,560 --> 00:23:24,760
Speaker 1: you have to work. You can actually use cheap travel

500
00:23:25,000 --> 00:23:27,960
Speaker 1: as a form of geographic arbitrage. We talked about this

501
00:23:27,960 --> 00:23:30,520
Speaker 1: a little bit with Nomadic Matt back in episode three

502
00:23:30,560 --> 00:23:34,520
Speaker 1: sixty one. But Matt I stumbles upon this site called

503
00:23:34,560 --> 00:23:36,960
Speaker 1: the Earth a weights dot com and it is this

504
00:23:37,119 --> 00:23:39,879
Speaker 1: awesome site where you can kind of find specifics on

505
00:23:39,920 --> 00:23:43,040
Speaker 1: the cost of living for different cities that you're interested

506
00:23:43,119 --> 00:23:45,840
Speaker 1: in living and so at the consumer reports, but on

507
00:23:45,920 --> 00:23:48,440
Speaker 1: cost of living, yeah exactly, and so it's crrel like

508
00:23:48,480 --> 00:23:50,800
Speaker 1: if you're if you're like, you can specifically pick the

509
00:23:50,800 --> 00:23:53,120
Speaker 1: continent or the part of the world that you're you're

510
00:23:53,200 --> 00:23:55,480
Speaker 1: interested in living in, and it gives you kind of

511
00:23:55,480 --> 00:23:57,840
Speaker 1: a good estimate for you know, what it's gonna look

512
00:23:57,880 --> 00:23:59,760
Speaker 1: like and how much money it's gonna take every single

513
00:23:59,760 --> 00:24:02,000
Speaker 1: month to live there. I will say, if you're looking

514
00:24:02,040 --> 00:24:05,400
Speaker 1: to move south of the US media and Columbia looks

515
00:24:05,400 --> 00:24:07,840
Speaker 1: like one of the top spots. Nice, sounds like our

516
00:24:07,880 --> 00:24:10,080
Speaker 1: dollar could go a lot further there. Maybe we can

517
00:24:10,080 --> 00:24:12,680
Speaker 1: talk our wives into moving the entire How do money

518
00:24:12,680 --> 00:24:16,080
Speaker 1: family down to Columbia. I got a feeling they're not

519
00:24:16,080 --> 00:24:17,480
Speaker 1: going to be on board with that. Let's put our

520
00:24:17,560 --> 00:24:21,240
Speaker 1: arbitrage money where I'm mouth is. Okay. Here's the thing, too,

521
00:24:21,320 --> 00:24:24,040
Speaker 1: is that you can apply these same principles that allow

522
00:24:24,119 --> 00:24:27,080
Speaker 1: arbitrage to work with housing or retail arbitrage, but you

523
00:24:27,119 --> 00:24:29,960
Speaker 1: can apply them directly to your money as well. And

524
00:24:29,960 --> 00:24:33,080
Speaker 1: so we're specifically talking about using leverage so that you

525
00:24:33,160 --> 00:24:36,919
Speaker 1: have debt and you're investing at a rate of higher return. Right.

526
00:24:36,960 --> 00:24:39,360
Speaker 1: This might sound a little sketchy, but that's actually exactly

527
00:24:39,440 --> 00:24:42,040
Speaker 1: what you're doing. When you have a mortgage, say at

528
00:24:42,040 --> 00:24:44,760
Speaker 1: three percent, and then instead of rushing to pay off

529
00:24:44,760 --> 00:24:47,680
Speaker 1: that mortgage, you're putting that money into your retirement accounts.

530
00:24:47,800 --> 00:24:49,760
Speaker 1: You're often saving money on taxes by doing this and

531
00:24:49,800 --> 00:24:51,720
Speaker 1: earning a higher rate of return on the money that

532
00:24:51,760 --> 00:24:55,959
Speaker 1: you're investing by prioritizing that over paying off your mortgage

533
00:24:56,000 --> 00:24:57,919
Speaker 1: as quickly as you can. And so this is you know,

534
00:24:57,920 --> 00:24:59,840
Speaker 1: this is why we feel that not all debt is

535
00:25:00,040 --> 00:25:02,600
Speaker 1: ad And I mean, like, we don't go as far

536
00:25:02,640 --> 00:25:04,600
Speaker 1: as to say that some debt is quote unquote good.

537
00:25:04,680 --> 00:25:07,240
Speaker 1: Now we're not debt cheerleaders, no, yeah, yeah, but given

538
00:25:07,280 --> 00:25:10,080
Speaker 1: the right situation, like uh, like a situation where you're

539
00:25:10,119 --> 00:25:12,760
Speaker 1: investing boatloads instead of paying off your mortgage. Well, if

540
00:25:12,760 --> 00:25:14,719
Speaker 1: that's your situation, then we feel that debt could make

541
00:25:14,760 --> 00:25:18,119
Speaker 1: sense for you. Essentially you're taking advantage of a form

542
00:25:18,160 --> 00:25:22,040
Speaker 1: of money or investing arbitrage by doing that. Yeah, And

543
00:25:22,080 --> 00:25:24,399
Speaker 1: I think Matt, you know what we've talked about at

544
00:25:24,520 --> 00:25:27,560
Speaker 1: the beginning of this episode, Having this arbitrage mindset is

545
00:25:27,600 --> 00:25:30,600
Speaker 1: crucial to that, right, because you can't just take on

546
00:25:30,920 --> 00:25:34,439
Speaker 1: more debt without an arbitrage mindset, because then you're in

547
00:25:34,440 --> 00:25:38,399
Speaker 1: this consumeristic space and you're spending the dollars that you're borrowing.

548
00:25:38,760 --> 00:25:41,359
Speaker 1: You're not using them wisely, and that is definitely not

549
00:25:41,440 --> 00:25:43,160
Speaker 1: the place we want you to be. But if you're

550
00:25:43,200 --> 00:25:45,199
Speaker 1: keeping that mortgage around on your home so that you

551
00:25:45,240 --> 00:25:48,119
Speaker 1: can contribute more to your workplace for a one K, right,

552
00:25:48,160 --> 00:25:50,360
Speaker 1: you're able to take full advantage of that match. Now, yeah,

553
00:25:50,400 --> 00:25:53,080
Speaker 1: the percent return on your money exactly, that is a

554
00:25:53,119 --> 00:25:57,720
Speaker 1: good use like arbitrage. Let's see versus three point you know,

555
00:25:58,960 --> 00:26:01,560
Speaker 1: it's like, okay, one is clearly greater than the other,

556
00:26:01,600 --> 00:26:04,040
Speaker 1: exactly that that's a big arbitrage win right there. But

557
00:26:04,520 --> 00:26:08,119
Speaker 1: arbitrage also has some downsides. So yeah, we'll cover what

558
00:26:08,320 --> 00:26:12,080
Speaker 1: some of the problems with arbitrage are after this break

559
00:26:12,119 --> 00:26:13,679
Speaker 1: and then and then we're also going to discuss how

560
00:26:13,680 --> 00:26:17,280
Speaker 1: to locate the arbitrage opportunities that are likely worth pouncing on.

561
00:26:17,480 --> 00:26:19,280
Speaker 1: Where do you find the best ones? Will get to

562
00:26:19,320 --> 00:26:30,760
Speaker 1: that right after this. All right, we are back in Joel.

563
00:26:30,880 --> 00:26:34,680
Speaker 1: So far arbitrage sounds pretty great. Right. At the very least,

564
00:26:34,760 --> 00:26:37,880
Speaker 1: you can save money by making choices that will use

565
00:26:38,080 --> 00:26:40,439
Speaker 1: arbitrage to your advantage. But the ultimate goal is for

566
00:26:40,480 --> 00:26:43,920
Speaker 1: you to be able to make money by exploiting this inefficiency.

567
00:26:44,080 --> 00:26:46,800
Speaker 1: And again, which when when we say exploit, like exploit

568
00:26:46,920 --> 00:26:50,399
Speaker 1: is a word that has such a negative connotation, but

569
00:26:50,480 --> 00:26:53,640
Speaker 1: we want you to see it as benefit from Yes, yeah,

570
00:26:53,720 --> 00:26:56,600
Speaker 1: as it's like the core of business, because that's what

571
00:26:56,640 --> 00:26:59,560
Speaker 1: a successful business person does, right, They look for those

572
00:26:59,560 --> 00:27:02,119
Speaker 1: opportunit needs. But all that being said, there are some

573
00:27:02,200 --> 00:27:05,200
Speaker 1: downsides to arbitrage as well, and so let's get to those.

574
00:27:05,600 --> 00:27:09,520
Speaker 1: One of the potential issues with discovering and inefficiency is

575
00:27:09,560 --> 00:27:12,000
Speaker 1: that it's not likely going to remain an efficiency for

576
00:27:12,119 --> 00:27:15,200
Speaker 1: much longer. It typically has a pretty limited shelf life.

577
00:27:15,560 --> 00:27:18,440
Speaker 1: You might be able to take advantage and practice arbitrage

578
00:27:18,520 --> 00:27:20,280
Speaker 1: and this maybe in this one area that you've discovered

579
00:27:20,400 --> 00:27:22,760
Speaker 1: for a while, but then once others catch on and

580
00:27:22,800 --> 00:27:25,600
Speaker 1: realize what you're doing, they're also likely to join in

581
00:27:25,760 --> 00:27:28,400
Speaker 1: if there's a big enough benefit for them to to realize.

582
00:27:28,720 --> 00:27:31,360
Speaker 1: So this means that the value that you're extracting may

583
00:27:31,400 --> 00:27:34,280
Speaker 1: not be there for long. And so yeah, like going

584
00:27:34,320 --> 00:27:36,680
Speaker 1: back to to the story that you mentioned of Dick

585
00:27:36,960 --> 00:27:40,919
Speaker 1: the high jumper back earlier in the episode. After he

586
00:27:40,960 --> 00:27:44,560
Speaker 1: started doing that, everybody changed how they jump. They adopted

587
00:27:44,560 --> 00:27:47,560
Speaker 1: his more efficient method. Uh, you know, for a hot minute,

588
00:27:47,560 --> 00:27:50,240
Speaker 1: Dick had an advantage, but it did not last. And

589
00:27:50,240 --> 00:27:52,520
Speaker 1: so it's worth mentioning that just because you stumble on

590
00:27:52,560 --> 00:27:55,840
Speaker 1: something that's really amazing right now, it may not necessarily

591
00:27:55,840 --> 00:27:58,280
Speaker 1: mean that it's going to be amazing for much longer. Yeah,

592
00:27:58,280 --> 00:28:02,159
Speaker 1: you don't necessarily have the arbitrage opportunity forever, right, Like

593
00:28:02,200 --> 00:28:05,240
Speaker 1: there's a window that's closing, for instance. Yeah, going back

594
00:28:05,240 --> 00:28:08,320
Speaker 1: to the example of Ben selling Pokemon cards, there's a

595
00:28:08,320 --> 00:28:11,439
Speaker 1: good chance that more and more people are catching onto this.

596
00:28:11,520 --> 00:28:13,639
Speaker 1: They're seeing some of the money that people are making,

597
00:28:13,880 --> 00:28:16,399
Speaker 1: especially after you write a popular article on the internet

598
00:28:16,400 --> 00:28:19,160
Speaker 1: about how you're doing it, and there's copycats coming out

599
00:28:19,200 --> 00:28:22,560
Speaker 1: there to take advantage. Right, But that's okay, because we're

600
00:28:22,560 --> 00:28:24,760
Speaker 1: not all unique snowflakes for very long. You know, it's

601
00:28:24,760 --> 00:28:28,200
Speaker 1: not long before people start to copy you know, successful people, Right.

602
00:28:28,760 --> 00:28:31,520
Speaker 1: But a helpful way to think about this is how

603
00:28:31,560 --> 00:28:34,920
Speaker 1: can you help others maybe take advantage of the inefficiency

604
00:28:34,960 --> 00:28:37,800
Speaker 1: that's happening. For example, lots of folks discovered there was

605
00:28:37,840 --> 00:28:40,200
Speaker 1: an arbitrage opportunity to run out a room in their

606
00:28:40,240 --> 00:28:42,680
Speaker 1: house on a daily or nightly basis, But it really

607
00:28:42,760 --> 00:28:45,320
Speaker 1: took the founder of Airbnb to bring that to the

608
00:28:45,360 --> 00:28:48,000
Speaker 1: masses and to make it easier Matt something else that

609
00:28:48,000 --> 00:28:50,520
Speaker 1: we've discussed. We love some of those discount gift card

610
00:28:50,560 --> 00:28:53,280
Speaker 1: websites right where you can say, guess what, I'm gonna

611
00:28:53,280 --> 00:28:55,920
Speaker 1: make a five dollar purchase at Lows, but instead of

612
00:28:55,960 --> 00:28:58,600
Speaker 1: just going in and paying with cash, I'm gonna go

613
00:28:58,680 --> 00:29:00,760
Speaker 1: and buy a discount of gift card so that I

614
00:29:00,840 --> 00:29:02,600
Speaker 1: can get an even lower price on that item that

615
00:29:02,600 --> 00:29:05,160
Speaker 1: I'm buying. Well, think about the people that created those websites.

616
00:29:05,400 --> 00:29:07,560
Speaker 1: They were arbitrage minded people. They realized that there were

617
00:29:07,560 --> 00:29:10,440
Speaker 1: folks out there who had gift cards that they didn't want.

618
00:29:10,480 --> 00:29:12,240
Speaker 1: Two stores like you know there, ain't give him a

619
00:29:12,240 --> 00:29:13,720
Speaker 1: gift card to the Gap and they're like, I don't

620
00:29:13,760 --> 00:29:16,280
Speaker 1: shop at the Gap. I only shop at Made Well,

621
00:29:16,360 --> 00:29:18,480
Speaker 1: And so yeah, what am I going to do with

622
00:29:18,560 --> 00:29:21,160
Speaker 1: this piece of crap gift card? Thanks Aunts for nothing?

623
00:29:21,680 --> 00:29:24,920
Speaker 1: And so yeah, somebody had the idea that I know

624
00:29:24,960 --> 00:29:26,600
Speaker 1: there are people like this out there who will sell

625
00:29:26,680 --> 00:29:28,200
Speaker 1: me their gift card and lose a lot of money

626
00:29:28,240 --> 00:29:31,040
Speaker 1: in the process because they would rather have sixty, yeah,

627
00:29:31,240 --> 00:29:32,960
Speaker 1: a hundred dollar gift card to the Gap. And so

628
00:29:33,040 --> 00:29:34,800
Speaker 1: someone started one of those, and then a bunch of

629
00:29:34,880 --> 00:29:38,280
Speaker 1: other sites sprung up doing similar things. And then there

630
00:29:38,320 --> 00:29:41,560
Speaker 1: was an aggregator site that sprung up, giving you a

631
00:29:41,560 --> 00:29:43,840
Speaker 1: list of all the different sites where you could get

632
00:29:43,840 --> 00:29:46,040
Speaker 1: a discount on one of those gift cards. So yeah,

633
00:29:46,040 --> 00:29:48,000
Speaker 1: I guess it is important to note that just because

634
00:29:48,160 --> 00:29:50,480
Speaker 1: there might be an opportunity for a little while in

635
00:29:50,480 --> 00:29:53,080
Speaker 1: a specific area, it doesn't mean that it's always going

636
00:29:53,080 --> 00:29:55,960
Speaker 1: to exist exactly. Yeah. One of the other problems with

637
00:29:56,040 --> 00:29:59,600
Speaker 1: arbitraged too is the inherent risk of counting on something

638
00:29:59,680 --> 00:30:02,800
Speaker 1: happening right before it's actually a done deal. The landscape

639
00:30:02,800 --> 00:30:06,000
Speaker 1: and markets is always changing, and so are consumers tastes,

640
00:30:06,320 --> 00:30:08,280
Speaker 1: and this can actually play out pretty badly when it

641
00:30:08,320 --> 00:30:12,200
Speaker 1: comes to retail arbitrage specifically. And so in arbitrage, you

642
00:30:12,320 --> 00:30:15,960
Speaker 1: were might come along, they might get in over their

643
00:30:16,000 --> 00:30:18,160
Speaker 1: head and buy too much of an item that they

644
00:30:18,200 --> 00:30:20,240
Speaker 1: see as an opportunity. I'm gonna buy all the tickle

645
00:30:20,280 --> 00:30:23,240
Speaker 1: me almost over Christmas, and it's like, oh, not the height,

646
00:30:23,560 --> 00:30:25,880
Speaker 1: not the hot toy atom anymore. I spent a hundred

647
00:30:25,960 --> 00:30:29,160
Speaker 1: k on Pokemon cards one and drop like one million dollars.

648
00:30:29,600 --> 00:30:31,200
Speaker 1: But then what if that's you and you're not able

649
00:30:31,240 --> 00:30:34,719
Speaker 1: to unload what you've purchased, And so yeah, again, going

650
00:30:34,760 --> 00:30:37,400
Speaker 1: back to that Pokemon guy, he talked about the downside

651
00:30:37,480 --> 00:30:40,280
Speaker 1: to getting those nice cards that he was buying graded

652
00:30:40,320 --> 00:30:42,120
Speaker 1: by a professional company. It seemed like that was a

653
00:30:42,120 --> 00:30:44,200
Speaker 1: good idea, right, Yeah, what's you know, what he was

654
00:30:44,240 --> 00:30:46,840
Speaker 1: saying was if I get it graded, then it's technically

655
00:30:46,840 --> 00:30:49,640
Speaker 1: worth more. There's a third party that said, it's this legitimate,

656
00:30:49,680 --> 00:30:52,240
Speaker 1: high end card exactly, And so you know, one hand,

657
00:30:52,240 --> 00:30:53,760
Speaker 1: you can you see that as a great thing, but

658
00:30:53,840 --> 00:30:55,680
Speaker 1: then on the other hand, it's actually took weeks for

659
00:30:55,760 --> 00:30:57,680
Speaker 1: him to get that card back in his hand, and

660
00:30:57,680 --> 00:31:00,000
Speaker 1: then by that time, the value could have completely changed

661
00:31:00,280 --> 00:31:03,920
Speaker 1: depending on the popularity in the you know, opinion of

662
00:31:03,960 --> 00:31:07,080
Speaker 1: the Pokemon market, like Pikachu no longer cool. Uh, it's

663
00:31:07,080 --> 00:31:08,680
Speaker 1: a It's just important to keep in mind that the

664
00:31:08,680 --> 00:31:11,480
Speaker 1: market reacts and shifts. You have to be aware of

665
00:31:11,520 --> 00:31:14,240
Speaker 1: the risks that you are carrying. Essentially, it's like this

666
00:31:14,320 --> 00:31:17,040
Speaker 1: carrying risk, especially when it comes to goods or services

667
00:31:17,080 --> 00:31:20,120
Speaker 1: that might be influenced by popular culture. Yeah, for sure, Matt.

668
00:31:20,200 --> 00:31:24,120
Speaker 1: And sometimes when we're talking about arbitrage opportunities, it happens

669
00:31:24,120 --> 00:31:26,440
Speaker 1: where the rules change on us all of a sudden,

670
00:31:26,440 --> 00:31:29,600
Speaker 1: and that arbitrage opportunity maybe doesn't look as good as

671
00:31:29,600 --> 00:31:32,400
Speaker 1: it used to. For instance, you know people who maybe

672
00:31:32,480 --> 00:31:35,480
Speaker 1: would rent out a room on Airbnb and then there's

673
00:31:35,480 --> 00:31:40,840
Speaker 1: a citywide cracktown on Airbnb. Rules just changed exactly for you.

674
00:31:41,000 --> 00:31:43,200
Speaker 1: Dang it. The bet I just made is no longer

675
00:31:43,360 --> 00:31:45,280
Speaker 1: paying off for me, and in the way that I

676
00:31:45,280 --> 00:31:47,800
Speaker 1: thought it was going to. Also, earlier in the pandemic,

677
00:31:47,840 --> 00:31:50,440
Speaker 1: we saw folks who worked in tech moving out of

678
00:31:50,480 --> 00:31:52,880
Speaker 1: the Bay Area or other high cost of living spots

679
00:31:52,920 --> 00:31:55,280
Speaker 1: to take advantage of being able to live anywhere they

680
00:31:55,280 --> 00:31:58,680
Speaker 1: wanted while still earning that super high tech salary. And

681
00:31:58,800 --> 00:32:00,640
Speaker 1: for a minute, it looked like the savvaest thing in

682
00:32:00,680 --> 00:32:02,960
Speaker 1: the world. You're earning the Bay Area salary but you're

683
00:32:03,000 --> 00:32:07,560
Speaker 1: living in Indiana and realizing just incredibly low housing costs.

684
00:32:07,920 --> 00:32:11,320
Speaker 1: But yeah, that window closed pretty quickly as many employers

685
00:32:11,360 --> 00:32:14,440
Speaker 1: responded with different payrades based on where you live now. So, yeah,

686
00:32:14,600 --> 00:32:18,280
Speaker 1: this was a geographic arbitrage opportunity, but the rules change.

687
00:32:18,320 --> 00:32:20,520
Speaker 1: Employers are like no, no, no no, no, We're not paying

688
00:32:20,520 --> 00:32:23,120
Speaker 1: you that much money if you're gonna live in Indiana. Uh,

689
00:32:23,160 --> 00:32:24,760
Speaker 1: And so yeah, it's just important to note that when

690
00:32:24,760 --> 00:32:27,719
Speaker 1: you're trying to take advantage of arbitrage. That is one

691
00:32:27,720 --> 00:32:30,920
Speaker 1: of those potential pitfalls. Exactly. Yeah. So not only do

692
00:32:31,360 --> 00:32:33,560
Speaker 1: tastes change out there in the market, but sometimes the

693
00:32:33,680 --> 00:32:37,240
Speaker 1: rules change as how you can implement the arbitrage as well.

694
00:32:37,560 --> 00:32:40,479
Speaker 1: Don't count on it necessarily being locked into stone forever.

695
00:32:40,720 --> 00:32:44,360
Speaker 1: Maybe eBay could start charging sellers more, uh in a heartbeat,

696
00:32:44,360 --> 00:32:46,000
Speaker 1: and you're like, all of a sudden, that's a cost

697
00:32:46,120 --> 00:32:49,080
Speaker 1: that you weren't realizing before. That changes the game exactly Yeah.

698
00:32:49,080 --> 00:32:51,880
Speaker 1: And so you may not be down though with flipping um,

699
00:32:51,920 --> 00:32:55,160
Speaker 1: you know, underpriced items on the internet or maybe adding

700
00:32:55,200 --> 00:32:57,880
Speaker 1: a bunch of roommates do you're you're living situation, But

701
00:32:58,080 --> 00:32:59,960
Speaker 1: we want you to keep an eye out for arbort

702
00:33:00,000 --> 00:33:03,800
Speaker 1: trash opportunities. When you start actively looking for them, uh,

703
00:33:03,920 --> 00:33:05,920
Speaker 1: you are, You're you're gonna be bound to see some

704
00:33:05,960 --> 00:33:08,680
Speaker 1: good ones on a regular basis. They're not going to

705
00:33:08,760 --> 00:33:10,719
Speaker 1: be as far and few between as you think they

706
00:33:10,800 --> 00:33:13,840
Speaker 1: might be, and it takes having the right information, right.

707
00:33:13,880 --> 00:33:17,080
Speaker 1: So this is one of the keys to implementing arbitrage

708
00:33:17,200 --> 00:33:20,400
Speaker 1: into your life. And on one hand that might seem like, uh,

709
00:33:20,720 --> 00:33:23,760
Speaker 1: just a pretty I don't know, steep mountain to climb right,

710
00:33:23,800 --> 00:33:26,800
Speaker 1: like a hurdle just to overcome. But the good news

711
00:33:26,840 --> 00:33:28,920
Speaker 1: is that most of the knowledge that you might require

712
00:33:28,960 --> 00:33:30,600
Speaker 1: is just sitting there in your pocket. We're talking about

713
00:33:30,720 --> 00:33:33,200
Speaker 1: just the Internet and your ability to look things up.

714
00:33:33,800 --> 00:33:37,040
Speaker 1: But part of using arbitrage to your advantage is actually

715
00:33:37,080 --> 00:33:39,400
Speaker 1: the practice of putting that knowledge to work. And so

716
00:33:39,720 --> 00:33:42,440
Speaker 1: just because it's there doesn't necessarily mean that you're going

717
00:33:42,480 --> 00:33:46,160
Speaker 1: to succeed at implementing that knowledge. So, for instance, though,

718
00:33:46,200 --> 00:33:47,720
Speaker 1: if you know, say you are shopping and you see

719
00:33:47,720 --> 00:33:49,320
Speaker 1: an item that looks like a like a good deal,

720
00:33:49,640 --> 00:33:51,840
Speaker 1: you can just open the eBay apps you what similar

721
00:33:51,840 --> 00:33:54,000
Speaker 1: items have sold for in recent months, and that will

722
00:33:54,040 --> 00:33:56,360
Speaker 1: give you that crucial knowledge to know whether or not

723
00:33:56,440 --> 00:34:00,760
Speaker 1: that item actually is an arbitrage opportunity or not. Uh So, yeah,

724
00:34:00,800 --> 00:34:03,280
Speaker 1: maybe it is the margins are wide enough and you pounce,

725
00:34:03,760 --> 00:34:06,280
Speaker 1: But maybe it's not. But it's still a good deal.

726
00:34:06,320 --> 00:34:08,320
Speaker 1: So maybe you buy it for yourself if that's something

727
00:34:08,360 --> 00:34:11,520
Speaker 1: that you are already interested in. But either way, we

728
00:34:11,560 --> 00:34:14,000
Speaker 1: want you to make sure that you're making informed decisions. Yeah,

729
00:34:14,120 --> 00:34:16,640
Speaker 1: and Matt, it does take a lot of knowledge to

730
00:34:16,719 --> 00:34:19,480
Speaker 1: be able to use arbitrage to your advantage, right, you

731
00:34:19,520 --> 00:34:21,600
Speaker 1: have to have some sort of knowledge of the marketplace

732
00:34:21,960 --> 00:34:24,840
Speaker 1: and the goods that you're considering buying your selling. Sometimes

733
00:34:24,920 --> 00:34:27,240
Speaker 1: the best way to get started is to look towards

734
00:34:27,320 --> 00:34:29,560
Speaker 1: a passion or a specific interest, right that you can

735
00:34:29,680 --> 00:34:32,880
Speaker 1: turn into an arbitrage opportunity. You've got to eventually go

736
00:34:32,960 --> 00:34:34,359
Speaker 1: beyond that, I think, and to be able to turn

737
00:34:34,400 --> 00:34:37,080
Speaker 1: it into a working system. It can't just be a

738
00:34:37,080 --> 00:34:38,920
Speaker 1: lover of hashion. Has to you have to be able

739
00:34:38,920 --> 00:34:41,480
Speaker 1: to scale it to a certain degree. But taking something

740
00:34:41,520 --> 00:34:44,520
Speaker 1: that you have some knowledge and interest in already and

741
00:34:44,560 --> 00:34:46,759
Speaker 1: then noodling on how you can maybe make some money

742
00:34:46,800 --> 00:34:49,400
Speaker 1: on the side is a good way to begin. It

743
00:34:49,440 --> 00:34:51,680
Speaker 1: makes me think, Matt, how back in the day you

744
00:34:51,719 --> 00:34:54,920
Speaker 1: and I used to go to this urban outfitters auction

745
00:34:55,040 --> 00:34:57,880
Speaker 1: that was that that that took place back It was

746
00:34:58,000 --> 00:34:59,440
Speaker 1: it was in augusta, right, we drove a couple of

747
00:35:00,040 --> 00:35:01,600
Speaker 1: has on the outskirts of a gust that's like in

748
00:35:01,640 --> 00:35:03,759
Speaker 1: South Carolina, but it was an urban outfitter is an

749
00:35:03,760 --> 00:35:07,400
Speaker 1: anthropology auction like that was the That was the clutch

750
00:35:07,440 --> 00:35:11,440
Speaker 1: part because that an throw stuff sold for top dollars.

751
00:35:11,480 --> 00:35:13,319
Speaker 1: And this is this is early on in our both

752
00:35:13,320 --> 00:35:15,520
Speaker 1: of our marriages, and so you and Emily were both

753
00:35:15,520 --> 00:35:18,160
Speaker 1: looking for like some more furniture for your for your place.

754
00:35:18,360 --> 00:35:21,000
Speaker 1: We had done something similar as well, and yeah, we

755
00:35:21,040 --> 00:35:23,560
Speaker 1: saw this as a way for us to buy things

756
00:35:23,600 --> 00:35:25,279
Speaker 1: at a massive discount. At the same time we were

757
00:35:25,280 --> 00:35:27,600
Speaker 1: able to use it to actually make some money, make

758
00:35:27,600 --> 00:35:29,719
Speaker 1: it worth our time. Yeah. Man, I started off going

759
00:35:29,760 --> 00:35:32,239
Speaker 1: there wanting just to buy a couple of pieces for

760
00:35:32,320 --> 00:35:34,800
Speaker 1: the house, and then it turned out I was like, Okay,

761
00:35:34,840 --> 00:35:37,200
Speaker 1: some of these things are just priced way too cheaply.

762
00:35:37,239 --> 00:35:39,000
Speaker 1: You can get you know, some of these rugs or

763
00:35:39,040 --> 00:35:41,719
Speaker 1: some of these couches for just so much less than

764
00:35:41,760 --> 00:35:44,240
Speaker 1: what they should be worth. And so I would start

765
00:35:44,239 --> 00:35:46,960
Speaker 1: to stockpile some of them and and then start to

766
00:35:46,960 --> 00:35:49,560
Speaker 1: list them on Craigslist, And on a couple of those pieces,

767
00:35:49,600 --> 00:35:51,759
Speaker 1: I made hundreds of dollars. And so it's just one

768
00:35:51,800 --> 00:35:53,200
Speaker 1: of those things like they want to get rid of

769
00:35:53,400 --> 00:35:55,960
Speaker 1: all of this stuff at one time. But for me,

770
00:35:56,000 --> 00:35:57,440
Speaker 1: I'm like, all right, cool, if I get four or

771
00:35:57,440 --> 00:35:59,120
Speaker 1: five or six of these pieces that are gonna be

772
00:35:59,160 --> 00:36:00,960
Speaker 1: able to make me two or three hundred dollars each,

773
00:36:01,280 --> 00:36:04,359
Speaker 1: then this is a worthwhile arbitrash opportunity. And it really

774
00:36:04,400 --> 00:36:06,920
Speaker 1: just started from something I was like needing and or

775
00:36:07,000 --> 00:36:10,520
Speaker 1: interested in already. Man, it makes me think of the

776
00:36:10,600 --> 00:36:13,680
Speaker 1: item that we scored the biggest return on, which was

777
00:36:13,840 --> 00:36:17,360
Speaker 1: this anthropology tufted sofa. It was during kind of I

778
00:36:17,400 --> 00:36:19,480
Speaker 1: don't know, it's like a lull during the auction, and

779
00:36:19,520 --> 00:36:21,640
Speaker 1: a lot of folks just weren't paying attention, and so

780
00:36:22,000 --> 00:36:24,600
Speaker 1: you know, this tufted couch came out and we bid

781
00:36:24,640 --> 00:36:26,720
Speaker 1: seventy five bucks on it, but it was paying attention

782
00:36:26,719 --> 00:36:28,280
Speaker 1: and the dude was just tired of it, so he

783
00:36:28,280 --> 00:36:30,120
Speaker 1: he just sold and he sold it to us for

784
00:36:30,160 --> 00:36:33,640
Speaker 1: seventy five bucks. This was a over two thousand dollar

785
00:36:33,680 --> 00:36:36,880
Speaker 1: brand new sofa that we got for seventy five. It

786
00:36:37,040 --> 00:36:39,359
Speaker 1: has some small defects. It had been returned, but we

787
00:36:39,400 --> 00:36:42,000
Speaker 1: put that thing on top of the station wagon we

788
00:36:42,040 --> 00:36:44,879
Speaker 1: had the Vida passalt wagon back in the day, drove

789
00:36:44,920 --> 00:36:47,240
Speaker 1: it back to Atlanta covered in a tarp, and sold

790
00:36:47,239 --> 00:36:48,840
Speaker 1: it here in Atlanta for like, I don't know, like

791
00:36:48,880 --> 00:36:52,080
Speaker 1: twelve or six or something like that. A solid profit,

792
00:36:52,360 --> 00:36:54,800
Speaker 1: but even still, it was at least a thousand dollars

793
00:36:54,920 --> 00:36:57,279
Speaker 1: less expensive than what that person would have been able

794
00:36:57,320 --> 00:37:00,239
Speaker 1: to get that couch for like new or brain new

795
00:37:00,239 --> 00:37:02,800
Speaker 1: in the store. They were more than happy to purchase

796
00:37:02,840 --> 00:37:05,000
Speaker 1: that sofa at a discount, and obviously we were more

797
00:37:05,000 --> 00:37:07,719
Speaker 1: than happy to go through the hassle of figuring out

798
00:37:07,760 --> 00:37:09,719
Speaker 1: how to get that thing back to Atlanta. But that

799
00:37:09,960 --> 00:37:13,000
Speaker 1: just a very small example of arbitrage. Yeah, and you

800
00:37:13,120 --> 00:37:15,760
Speaker 1: just start to see it, like, as you develop this mindset,

801
00:37:16,160 --> 00:37:18,000
Speaker 1: you begin to see it more and more, and there's

802
00:37:18,000 --> 00:37:21,560
Speaker 1: just opportunities. The opportunities abound in small ways and in

803
00:37:21,600 --> 00:37:23,920
Speaker 1: big ways. Right, it doesn't have to be huge. And

804
00:37:23,960 --> 00:37:25,759
Speaker 1: then I think, Yeah, one of the other things that

805
00:37:25,800 --> 00:37:29,239
Speaker 1: it takes to kind of develop that arbitrage mindset that

806
00:37:29,320 --> 00:37:31,160
Speaker 1: really does change a whole lot in the way that

807
00:37:31,200 --> 00:37:34,440
Speaker 1: we live is maintaining a flexible mind. You've got to

808
00:37:34,440 --> 00:37:37,360
Speaker 1: be open and willing to consider an opportunity before just

809
00:37:37,400 --> 00:37:40,839
Speaker 1: saying no. I think sometimes people shut down an opportunity

810
00:37:40,880 --> 00:37:43,279
Speaker 1: before they even begin to let it ruminate and give

811
00:37:43,320 --> 00:37:45,680
Speaker 1: it some like time to consider. Yeah, it's not just

812
00:37:45,719 --> 00:37:47,680
Speaker 1: about the knowledge, right, And so we talked about how

813
00:37:47,840 --> 00:37:49,960
Speaker 1: that's something that you need to have on hand, but

814
00:37:49,960 --> 00:37:52,560
Speaker 1: that's available to anyone. So that's really not, you know,

815
00:37:52,800 --> 00:37:55,560
Speaker 1: a stumbling block anymore. It's more about what are you

816
00:37:55,600 --> 00:37:57,879
Speaker 1: willing to actually take on? Yeah. Yeah, and I feel

817
00:37:57,920 --> 00:38:00,960
Speaker 1: like the older I get, at least in people in general,

818
00:38:01,040 --> 00:38:03,120
Speaker 1: we become more stuck in our ways and we're not

819
00:38:03,200 --> 00:38:05,560
Speaker 1: as willing the step outside of our comfort zones. We

820
00:38:05,680 --> 00:38:08,560
Speaker 1: go really deep into our professions and it keeps us

821
00:38:08,640 --> 00:38:12,719
Speaker 1: maybe from exploring other areas, um that are alternatives to

822
00:38:12,760 --> 00:38:14,840
Speaker 1: what we do for a living right like um, for instance,

823
00:38:14,880 --> 00:38:17,880
Speaker 1: a doctor may not think about how to unclog a drain,

824
00:38:18,320 --> 00:38:21,040
Speaker 1: even though it might be a simple plumbing fix. It's

825
00:38:21,040 --> 00:38:23,440
Speaker 1: not because they're not really smart, it's just because they

826
00:38:23,440 --> 00:38:25,239
Speaker 1: have maybe more of Uh, I'm just gonna leave that

827
00:38:25,280 --> 00:38:27,680
Speaker 1: to the prose sort of mentality, that's right. Yeah, Exploring

828
00:38:27,760 --> 00:38:31,080
Speaker 1: arbitrage opportunities will require a mindset shift, being a little

829
00:38:31,080 --> 00:38:35,080
Speaker 1: more open to different opportunities that come along. Also, it's

830
00:38:35,080 --> 00:38:38,640
Speaker 1: important to have cash on hand in order to be

831
00:38:38,680 --> 00:38:42,600
Speaker 1: able to take advantage of a deal or an opportunity. Uh.

832
00:38:42,680 --> 00:38:44,480
Speaker 1: If it's something small, right, so, like like maybe a

833
00:38:44,480 --> 00:38:46,640
Speaker 1: purchase under a hundred bucks, it's probably not gonna be

834
00:38:46,760 --> 00:38:49,240
Speaker 1: much of a problem for for most folks. Uh, most

835
00:38:49,360 --> 00:38:51,560
Speaker 1: individuals out there are going to be able to handle that.

836
00:38:51,920 --> 00:38:53,560
Speaker 1: But if you want to be able to pounce on

837
00:38:53,600 --> 00:38:55,480
Speaker 1: a great real estate deal that will allow you to

838
00:38:55,760 --> 00:38:59,799
Speaker 1: have two roommates, right going back to housing arbitrage, or

839
00:38:59,840 --> 00:39:02,000
Speaker 1: if you want to invest more in the market because

840
00:39:02,040 --> 00:39:05,680
Speaker 1: you're not planning to pay off your mortgage aggressively, or

841
00:39:05,719 --> 00:39:08,279
Speaker 1: even you know, if there are some upfront costs associated,

842
00:39:08,480 --> 00:39:13,040
Speaker 1: say with taking advantage of geographic arbitrage, before you're able

843
00:39:13,080 --> 00:39:15,600
Speaker 1: to start realizing the benefits. Well, in all those cases,

844
00:39:15,640 --> 00:39:18,400
Speaker 1: you're going to need to have that cash ready to go,

845
00:39:18,560 --> 00:39:21,279
Speaker 1: whether it's saved up as a down payment or whether

846
00:39:21,280 --> 00:39:23,320
Speaker 1: it's just having some cash in the bank that's fluid

847
00:39:23,480 --> 00:39:26,720
Speaker 1: that gives you some flexibility. This is just another reason

848
00:39:26,840 --> 00:39:30,319
Speaker 1: why we do not think that it is underrated. Do

849
00:39:30,480 --> 00:39:33,839
Speaker 1: have a solid emergency fund uh sitting there in your

850
00:39:33,840 --> 00:39:35,799
Speaker 1: savings account. You want to have that cushion not only

851
00:39:35,840 --> 00:39:37,960
Speaker 1: to be able to weather any storms, but to be

852
00:39:38,000 --> 00:39:40,839
Speaker 1: able to take advantage of any opportunities that might come along. Yeah,

853
00:39:40,840 --> 00:39:42,520
Speaker 1: having some of that cash in the bank, having some

854
00:39:42,560 --> 00:39:45,960
Speaker 1: liquid reserves gives you some flexible money in addition to

855
00:39:46,200 --> 00:39:47,960
Speaker 1: the flexible mindset that you're gonna need to bring to

856
00:39:48,000 --> 00:39:51,000
Speaker 1: the table if you're hoping to take advantage of arbitrage

857
00:39:51,040 --> 00:39:55,239
Speaker 1: opportunities that abound around you and Matt when it comes

858
00:39:55,280 --> 00:39:57,560
Speaker 1: down to it, wrapping this up, like, arbitrage can make

859
00:39:57,600 --> 00:39:59,839
Speaker 1: you money with something as simple as buying a pack

860
00:40:00,040 --> 00:40:02,880
Speaker 1: cards and reselling them individually not just Pokemon cards but

861
00:40:02,920 --> 00:40:06,040
Speaker 1: sports cards to right. Or it can save you money

862
00:40:06,080 --> 00:40:08,880
Speaker 1: by moving halfway across the globe to reduce living costs

863
00:40:09,080 --> 00:40:11,799
Speaker 1: while you know, maintaining your solid job wherever you currently live.

864
00:40:12,120 --> 00:40:15,600
Speaker 1: But arbitrage isn't without risks, Like we definitely covered that too,

865
00:40:15,680 --> 00:40:20,040
Speaker 1: because trying to exploit arbitrage opportunities can leave you in

866
00:40:20,040 --> 00:40:21,840
Speaker 1: the lurch if you don't know what you're doing and

867
00:40:21,880 --> 00:40:24,879
Speaker 1: if you're not smart about it. So it's probably best

868
00:40:24,920 --> 00:40:27,880
Speaker 1: to dip your toes in before going hog wild and

869
00:40:27,920 --> 00:40:31,160
Speaker 1: purchasing a thousand tickling Elmo's uh and in order to

870
00:40:31,200 --> 00:40:33,920
Speaker 1: try to you know, make money this Christmas. There's some

871
00:40:34,000 --> 00:40:36,960
Speaker 1: definite downsides if you go too hard, too fast. Yeah,

872
00:40:37,080 --> 00:40:38,799
Speaker 1: and you also want to make it, Like, aside from

873
00:40:38,840 --> 00:40:40,960
Speaker 1: the financial risks, you also want to look at your

874
00:40:40,960 --> 00:40:43,279
Speaker 1: lifestyle like is this something that I want to spend

875
00:40:43,320 --> 00:40:45,839
Speaker 1: my time doing? Right, Because even though you can make

876
00:40:45,880 --> 00:40:48,480
Speaker 1: a bug doing something doesn't mean you necessarily should or

877
00:40:48,520 --> 00:40:51,160
Speaker 1: want to, right, Yeah, but I think once you start

878
00:40:51,239 --> 00:40:54,839
Speaker 1: seeing arbitrage opportunities, you're likely not going to be able

879
00:40:54,880 --> 00:40:56,680
Speaker 1: to stop seeing them. You'll kind of realize that they

880
00:40:56,719 --> 00:40:59,319
Speaker 1: are all around you as you move through life. So yeah,

881
00:40:59,480 --> 00:41:01,759
Speaker 1: hopefully our listeners are can be able to find some

882
00:41:01,800 --> 00:41:03,759
Speaker 1: ways to make extra money and save more of it

883
00:41:03,800 --> 00:41:07,640
Speaker 1: too by kind of developing more of that arbitrage mindset.

884
00:41:07,960 --> 00:41:11,360
Speaker 1: It's amazing to me to see how big that arbitraged

885
00:41:11,400 --> 00:41:15,160
Speaker 1: mindset can get you into building like a massive fortune,

886
00:41:15,239 --> 00:41:17,560
Speaker 1: but it can also be used and exploited on just

887
00:41:17,600 --> 00:41:20,080
Speaker 1: a personal level, either in really small ways or can

888
00:41:20,160 --> 00:41:22,480
Speaker 1: you know, scale up to being something that makes you

889
00:41:22,520 --> 00:41:24,600
Speaker 1: a full time income. It's just kind of a cool

890
00:41:24,640 --> 00:41:27,040
Speaker 1: concept that we felt like was worth talking about on

891
00:41:27,080 --> 00:41:28,920
Speaker 1: the show. Yeah, man, this is a fun episode. I

892
00:41:28,920 --> 00:41:31,640
Speaker 1: feel like what you said earlier to about treating your

893
00:41:31,680 --> 00:41:34,799
Speaker 1: life's sort of like a business owner would treat their

894
00:41:34,840 --> 00:41:37,279
Speaker 1: business right, because it sort of like we're joking, how

895
00:41:37,320 --> 00:41:39,360
Speaker 1: like like we are the CEO of our own lives

896
00:41:39,440 --> 00:41:42,160
Speaker 1: and so and only we know what we're spending our

897
00:41:42,160 --> 00:41:44,200
Speaker 1: money on and what we're purchasing, and when you know

898
00:41:44,440 --> 00:41:46,640
Speaker 1: the ins and outs. Well, then you can find ways

899
00:41:46,680 --> 00:41:48,880
Speaker 1: to kind of hot wire it. You know, it's like,

900
00:41:48,880 --> 00:41:51,760
Speaker 1: oh wait a minute. Instead of uh, separating this expense

901
00:41:51,760 --> 00:41:54,239
Speaker 1: from this from this source of income, you can link

902
00:41:54,280 --> 00:41:58,120
Speaker 1: all these things together and find opportunities that might exist

903
00:41:58,120 --> 00:42:00,319
Speaker 1: in your life that don't exist and someone else's life.

904
00:42:00,360 --> 00:42:03,120
Speaker 1: This is why it's important to understand this as a

905
00:42:03,160 --> 00:42:05,279
Speaker 1: principle so that you can apply it to your own life,

906
00:42:05,280 --> 00:42:06,799
Speaker 1: because there's no one out there who's gonna do this

907
00:42:06,920 --> 00:42:09,120
Speaker 1: for you. Just like we talked on Monday with Clark

908
00:42:09,160 --> 00:42:12,319
Speaker 1: Howard about being your own advocate, this totally fits within

909
00:42:12,360 --> 00:42:15,359
Speaker 1: that wheelhouse, that similar way of thinking. If you don't

910
00:42:15,360 --> 00:42:17,120
Speaker 1: step up, nobody else is gonna do this for you,

911
00:42:17,400 --> 00:42:19,040
Speaker 1: no doubt. Man. All Right, Well, let's get back to

912
00:42:19,040 --> 00:42:20,920
Speaker 1: the beer that we had on this episode, Matt. This

913
00:42:20,960 --> 00:42:24,640
Speaker 1: one was called Pineapple Upside Down Shake. This is a

914
00:42:24,680 --> 00:42:27,680
Speaker 1: fruited sour i p A by New Grass Brewing Company. Um,

915
00:42:27,680 --> 00:42:29,319
Speaker 1: thanks for picking this one up on while you were

916
00:42:29,320 --> 00:42:32,160
Speaker 1: in North Carolina. But what were your thoughts on this beer? Man? Yeah,

917
00:42:32,200 --> 00:42:36,160
Speaker 1: I'll go ahead and say that it's also brewed with pineapple, lactose, vanilla,

918
00:42:36,280 --> 00:42:39,480
Speaker 1: and Graham cracker Uh, and so, dude, this was such

919
00:42:39,560 --> 00:42:41,600
Speaker 1: a good beer. I'm really curious, honestly to hear your

920
00:42:41,640 --> 00:42:43,799
Speaker 1: thoughts because I really liked it. I feel like this

921
00:42:43,880 --> 00:42:46,279
Speaker 1: is it's slightly on the sweeter side of things, but

922
00:42:46,760 --> 00:42:48,719
Speaker 1: it's dry hot, and so it's an I p A.

923
00:42:48,840 --> 00:42:50,760
Speaker 1: And it kind of has some of those bitter notes

924
00:42:50,800 --> 00:42:52,839
Speaker 1: going on. So it kind of has that sharpness that

925
00:42:52,880 --> 00:42:55,560
Speaker 1: you would get with uh, like a sharp cheese. Right,

926
00:42:55,920 --> 00:42:58,319
Speaker 1: It's not just like the super creamy sweet I don't know,

927
00:42:58,320 --> 00:43:00,759
Speaker 1: what's the sweet cheese like have already. Yeah, that's I

928
00:43:00,760 --> 00:43:02,520
Speaker 1: guess I'm not a big cheese. This is like a

929
00:43:02,560 --> 00:43:05,239
Speaker 1: sharp Wisconsin cheddars or you know. It kind of has

930
00:43:05,239 --> 00:43:08,200
Speaker 1: those flavors going on with the addition of the fruit.

931
00:43:08,480 --> 00:43:11,080
Speaker 1: But for me, man, this this beer hit on all

932
00:43:11,160 --> 00:43:14,920
Speaker 1: the cylinders. I'm not always looking for fruit in my

933
00:43:15,000 --> 00:43:16,400
Speaker 1: I P A and so I don't. It's it's like

934
00:43:16,440 --> 00:43:18,960
Speaker 1: it's a cylinder that I didn't even know existed. But

935
00:43:19,000 --> 00:43:20,200
Speaker 1: all I know is that when I drink this beer,

936
00:43:20,239 --> 00:43:22,560
Speaker 1: it tastes good, and that's all that matters. I drink

937
00:43:22,600 --> 00:43:24,719
Speaker 1: the beer. It tastes good. Uh. Yeah, No, I like

938
00:43:24,800 --> 00:43:28,160
Speaker 1: your very blue collar assessment of his beer matt Um.

939
00:43:28,640 --> 00:43:31,719
Speaker 1: I would say this beer has has some awesome smoothie qualities,

940
00:43:32,080 --> 00:43:35,120
Speaker 1: and yeah, the pineapple really really does shine through. It

941
00:43:35,520 --> 00:43:38,640
Speaker 1: was pretty sweet. I wasn't tasting as much of any

942
00:43:38,680 --> 00:43:40,760
Speaker 1: of the I p A tones. I was mostly tasting

943
00:43:41,040 --> 00:43:43,400
Speaker 1: the fruit and the vanilla and the lactose. But still

944
00:43:43,440 --> 00:43:46,200
Speaker 1: I thought this was really really delicious and it's just

945
00:43:46,280 --> 00:43:48,200
Speaker 1: kind of a fun, unique beer to have. At the

946
00:43:48,200 --> 00:43:51,919
Speaker 1: same time, I don't eat pineapple a whole lot, but

947
00:43:51,960 --> 00:43:53,600
Speaker 1: I don't like pineapple. I like it. I just don't

948
00:43:53,600 --> 00:43:56,440
Speaker 1: need a whole lot, but pineapple and beer I think

949
00:43:56,480 --> 00:43:58,640
Speaker 1: pineapple exactly. I think it's why I don't even Yeah,

950
00:43:58,760 --> 00:44:02,000
Speaker 1: but I think pineapple and beer is is really delicious

951
00:44:02,160 --> 00:44:05,359
Speaker 1: and I like, um, most beers that put pineapple at them,

952
00:44:05,360 --> 00:44:07,319
Speaker 1: I'm into it. So maybe I need to like go

953
00:44:07,400 --> 00:44:09,000
Speaker 1: to all the inn get a pineapple soon. I just

954
00:44:09,000 --> 00:44:11,279
Speaker 1: want to drink more pineapple drinks in general, because I

955
00:44:11,280 --> 00:44:14,840
Speaker 1: feel like that typically means I'm at the beach stepping

956
00:44:14,920 --> 00:44:17,960
Speaker 1: on a tropical cocktail or something like that, right, And

957
00:44:18,080 --> 00:44:19,759
Speaker 1: this is this beer is also fun too, because the

958
00:44:19,840 --> 00:44:22,719
Speaker 1: artwork on it could definitely had like a I don't know,

959
00:44:22,760 --> 00:44:25,440
Speaker 1: like an under the Sea kind of SpongeBob SquarePants kind

960
00:44:25,440 --> 00:44:28,040
Speaker 1: of looking on it's kind of illustrated and all over

961
00:44:28,080 --> 00:44:30,719
Speaker 1: the place. But but yeah, this was brewed and can

962
00:44:30,800 --> 00:44:33,279
Speaker 1: buy New Grass Brewing, and so if you're able to

963
00:44:33,280 --> 00:44:36,120
Speaker 1: get your hands on any of their adventurous beers, I

964
00:44:36,120 --> 00:44:38,239
Speaker 1: would highly recommend it. All right, man, Well, that's gonna

965
00:44:38,239 --> 00:44:40,520
Speaker 1: do it for this episode. For folks that want show

966
00:44:40,520 --> 00:44:42,800
Speaker 1: notes links to some of the websites that we mentioned,

967
00:44:43,040 --> 00:44:44,920
Speaker 1: we'll have those up on our website at how to

968
00:44:45,000 --> 00:44:46,920
Speaker 1: money dot com. That's right. If you've been listening for

969
00:44:46,960 --> 00:44:49,080
Speaker 1: a while and you have not yet left us a review,

970
00:44:49,360 --> 00:44:51,680
Speaker 1: would be eternally grateful if you were to do that

971
00:44:51,760 --> 00:44:55,000
Speaker 1: over at Apple Podcasts or wherever you listen to podcasts.

972
00:44:55,040 --> 00:44:57,399
Speaker 1: And a big thank you in advance for that, Joel.

973
00:44:57,440 --> 00:45:00,919
Speaker 1: That's gonna be a buddy. Until next time. Best Friends Out,

974
00:45:00,920 --> 00:45:02,040
Speaker 1: Best Friends Out.