1 00:00:00,120 --> 00:00:03,160 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,320 --> 00:00:06,560 Speaker 1: and today we're discussing why ownership is the key to 3 00:00:06,640 --> 00:00:27,400 Speaker 1: wealth building. Joel, this actually kind of takes me back 4 00:00:27,440 --> 00:00:31,360 Speaker 1: to my skating rink days, where if you showed up 5 00:00:31,360 --> 00:00:34,040 Speaker 1: with your own skates, your own quads, or even better, 6 00:00:34,080 --> 00:00:37,120 Speaker 1: if you showed up with your own inline skates, you 7 00:00:37,159 --> 00:00:40,040 Speaker 1: were super cool. So we're not talking about ownership whether 8 00:00:40,240 --> 00:00:41,920 Speaker 1: you show up with your own skates or do you 9 00:00:42,000 --> 00:00:44,640 Speaker 1: rent the uh the skates that are already there, the 10 00:00:44,720 --> 00:00:47,600 Speaker 1: nasty brown ones. But we're talking about what we do 11 00:00:47,680 --> 00:00:51,159 Speaker 1: with our money when it comes to investing, primarily. But 12 00:00:51,200 --> 00:00:54,760 Speaker 1: we're dedicating an entire episode to changing the way you 13 00:00:54,840 --> 00:00:57,040 Speaker 1: think about how you spend your money, what we spend 14 00:00:57,040 --> 00:00:59,320 Speaker 1: our money on, and we're gonna gonna essentially, we're gonna 15 00:00:59,320 --> 00:01:01,560 Speaker 1: trying to introduce you to this paradigm shift that we 16 00:01:01,640 --> 00:01:04,080 Speaker 1: hope changes the way that you view all of your 17 00:01:04,080 --> 00:01:06,920 Speaker 1: expenses moving forward. Those roller skating days, man, those are 18 00:01:06,959 --> 00:01:09,880 Speaker 1: your salad days too. It's only been down hills, is them? 19 00:01:10,040 --> 00:01:13,080 Speaker 1: So wait, when you say salad days, I always hear saladays, 20 00:01:13,080 --> 00:01:15,400 Speaker 1: and like I always think like young and immature, not 21 00:01:16,080 --> 00:01:19,039 Speaker 1: they're not like the golden days, right, Like is that 22 00:01:19,080 --> 00:01:22,120 Speaker 1: how that's how you think your best years? Best years? 23 00:01:22,200 --> 00:01:24,080 Speaker 1: I always hear saladays, and I think like you're green 24 00:01:24,240 --> 00:01:25,959 Speaker 1: and your immature, like like you've got a lot of 25 00:01:26,040 --> 00:01:28,320 Speaker 1: years of growth ahead of you. Okay, all right, that 26 00:01:28,360 --> 00:01:30,240 Speaker 1: makes sense makes I don't know. I think you can 27 00:01:30,280 --> 00:01:31,960 Speaker 1: use it the way you're using it as well, kind 28 00:01:32,000 --> 00:01:35,080 Speaker 1: of like the pinnacle like, oh, the good old days. Well, 29 00:01:35,240 --> 00:01:36,880 Speaker 1: I'm pretty sure that was for you, right, just like 30 00:01:37,200 --> 00:01:39,240 Speaker 1: taking your inline skates out there on the on the roll. 31 00:01:39,280 --> 00:01:42,160 Speaker 1: So I didn't have I no, no, you cann I 32 00:01:42,240 --> 00:01:44,559 Speaker 1: was like I didn't even splurge on the speed skates. 33 00:01:44,600 --> 00:01:47,039 Speaker 1: You know, you could like upgrade and get the instead 34 00:01:47,040 --> 00:01:49,040 Speaker 1: of the brown crappy leather skates, you could upgrade and 35 00:01:49,040 --> 00:01:51,360 Speaker 1: get the black ones, and those had I don't know, 36 00:01:51,440 --> 00:01:54,920 Speaker 1: like wheels, extra fast ball bearings and so those jokers 37 00:01:55,040 --> 00:01:57,960 Speaker 1: would haul Like for real, I didn't need that, man, 38 00:01:58,000 --> 00:02:00,120 Speaker 1: I just throw those standard skates on my feet and 39 00:02:00,120 --> 00:02:02,120 Speaker 1: I'll just like keeps getting until I had, you know, 40 00:02:02,120 --> 00:02:06,480 Speaker 1: like twenty blisters on each foot, on each foot always. 41 00:02:06,560 --> 00:02:09,400 Speaker 1: I had so many blisters from skating on a on 42 00:02:09,440 --> 00:02:12,079 Speaker 1: a Friday after school. Yeah, well before we get into 43 00:02:12,200 --> 00:02:15,200 Speaker 1: talking about my ownership is such an important concept, and 44 00:02:15,440 --> 00:02:17,519 Speaker 1: I agree, man, it is paradigm shifting. I just wanted 45 00:02:17,520 --> 00:02:20,800 Speaker 1: to quickly mention my sister and brother in law they 46 00:02:20,840 --> 00:02:23,480 Speaker 1: just bought a scooter to zip around town. They actually did. 47 00:02:23,639 --> 00:02:25,800 Speaker 1: Yeah you're talking about they that they were considering it, 48 00:02:25,840 --> 00:02:27,640 Speaker 1: and I feel like, scooter, you have to actually define it. Now. 49 00:02:27,639 --> 00:02:30,040 Speaker 1: There's so many different variations of scooters, like a not 50 00:02:30,120 --> 00:02:32,160 Speaker 1: a bird scooter, No, not one of those, not one 51 00:02:32,160 --> 00:02:33,880 Speaker 1: of those, but one of the the ones you actually 52 00:02:33,919 --> 00:02:36,440 Speaker 1: sit on, Like they can get two people on their scooter. Uh, 53 00:02:37,160 --> 00:02:40,160 Speaker 1: and it's like dumb and dumbers say exactly exactly. So 54 00:02:40,160 --> 00:02:43,800 Speaker 1: it's gas powered and it's I think. And I just 55 00:02:43,840 --> 00:02:46,840 Speaker 1: wanted to mention that this was something that they've gone 56 00:02:46,840 --> 00:02:48,720 Speaker 1: down to becoming a one car family. But they were like, 57 00:02:49,000 --> 00:02:50,720 Speaker 1: you know what, we kind of feel the need for 58 00:02:50,760 --> 00:02:54,560 Speaker 1: some other mode of transportation that isn't a bike, because 59 00:02:55,240 --> 00:02:57,280 Speaker 1: I know they should. I mean, they've got bikecause I 60 00:02:57,280 --> 00:02:59,320 Speaker 1: see him rinning around the neighborhood. Actually they lived nest 61 00:02:59,360 --> 00:03:02,200 Speaker 1: to us, but they wanted something else. And I will 62 00:03:02,240 --> 00:03:05,920 Speaker 1: say that a scooter like that is a perfect in 63 00:03:05,919 --> 00:03:08,360 Speaker 1: between vehicle for a lot of people. And one of 64 00:03:08,360 --> 00:03:11,320 Speaker 1: the great things about these scooters one they're not very expensive. Yeah, 65 00:03:11,320 --> 00:03:14,359 Speaker 1: they're not very expensive to maintain either, if you get 66 00:03:14,360 --> 00:03:15,799 Speaker 1: the right one, by the way, because you can get 67 00:03:15,840 --> 00:03:18,480 Speaker 1: some really crummy ones. You can cheap out buying a scooter, 68 00:03:18,720 --> 00:03:21,720 Speaker 1: and oftentimes those don't last long at all. But yeah, 69 00:03:21,720 --> 00:03:24,520 Speaker 1: they opted for something decent, and so I just wanted 70 00:03:24,560 --> 00:03:28,600 Speaker 1: to mention that sometimes, you know, one of these nicer scooters, 71 00:03:28,760 --> 00:03:31,200 Speaker 1: it doesn't cost a whole lot of money. Uh, and 72 00:03:31,400 --> 00:03:33,480 Speaker 1: it's really not that expensive to ruy to maintain, and 73 00:03:33,520 --> 00:03:36,280 Speaker 1: it could be a better decision than having a second 74 00:03:36,280 --> 00:03:38,360 Speaker 1: car or you know, even a third car in the 75 00:03:38,360 --> 00:03:41,080 Speaker 1: case of some families. This might help you get some 76 00:03:41,120 --> 00:03:43,040 Speaker 1: of those trips in without needing to hop in the car. 77 00:03:43,200 --> 00:03:45,160 Speaker 1: I'm just gonna wait on the day that Evan pulls 78 00:03:45,240 --> 00:03:47,440 Speaker 1: up in front of our house and just calls over. 79 00:03:47,480 --> 00:03:49,680 Speaker 1: He's like, I get seventy miles per gallon on this hog. 80 00:03:50,880 --> 00:03:52,840 Speaker 1: There are actually two guys who have you have you 81 00:03:52,840 --> 00:03:55,000 Speaker 1: seen this story going around internet. There's these two guys 82 00:03:55,000 --> 00:03:58,120 Speaker 1: who did that trip, the dumb dumb, dum dumber trip 83 00:03:58,640 --> 00:04:03,520 Speaker 1: you know, up through Colorado, or what ever, like to aspens. Yeah, 84 00:04:03,560 --> 00:04:05,400 Speaker 1: that happened, uh, I guess a couple of months ago. 85 00:04:05,440 --> 00:04:06,760 Speaker 1: But maybe we'll link to it in the show notes. 86 00:04:06,760 --> 00:04:08,560 Speaker 1: Okas pretty funny. I want to read that they like 87 00:04:08,640 --> 00:04:11,960 Speaker 1: dressed up like him as well in the two tuxedoses, 88 00:04:11,960 --> 00:04:14,520 Speaker 1: don't orange in the like they had on like I 89 00:04:14,560 --> 00:04:16,440 Speaker 1: feel like a member's only style jacket. Can you think 90 00:04:16,480 --> 00:04:18,480 Speaker 1: you know what I'm talking about? Yeah? Um, yeah, it's 91 00:04:18,480 --> 00:04:20,279 Speaker 1: been a while since I seen it, but still a classic. 92 00:04:20,320 --> 00:04:23,720 Speaker 1: It's still burned into my memory of how fantastic it was. Yeah, 93 00:04:23,800 --> 00:04:26,479 Speaker 1: for classic. Alright, Matt, let's move on. Let's mention the 94 00:04:26,480 --> 00:04:28,360 Speaker 1: beer that we're having on the show today. This one 95 00:04:28,440 --> 00:04:31,920 Speaker 1: is called Money Blend by American soul Lara and this 96 00:04:32,000 --> 00:04:35,320 Speaker 1: is a perfect name money for beer, exactly said to 97 00:04:35,360 --> 00:04:37,360 Speaker 1: us by a listener, by the way, that's right, Yeah, 98 00:04:37,440 --> 00:04:40,479 Speaker 1: listener James sent this one away. So James, big thanks 99 00:04:40,760 --> 00:04:42,840 Speaker 1: to you. Looking forward to having this one, and we'll 100 00:04:42,920 --> 00:04:44,520 Speaker 1: give our thoughts on this beer at the end of 101 00:04:44,520 --> 00:04:46,680 Speaker 1: the episode. You know what a perfect beer for how 102 00:04:46,680 --> 00:04:49,880 Speaker 1: the money? All right, Well, let's move on, Matt. Let's 103 00:04:49,880 --> 00:04:52,719 Speaker 1: talk about why ownership is the key to wealth building 104 00:04:53,000 --> 00:04:55,320 Speaker 1: and We put the in all caps because we believe 105 00:04:55,480 --> 00:04:59,000 Speaker 1: ownership is this crucial, essential building block of being able 106 00:04:59,040 --> 00:05:02,159 Speaker 1: to grow your money the time. It's often overlooked as well, 107 00:05:02,240 --> 00:05:05,680 Speaker 1: because there are other practices that people tend to employ 108 00:05:05,760 --> 00:05:08,680 Speaker 1: when they're looking to, you know, save up some more money. Right, 109 00:05:09,120 --> 00:05:13,320 Speaker 1: investing doesn't come as natural to us as some other practices. Yeah, 110 00:05:13,400 --> 00:05:15,400 Speaker 1: and I still I still remember, you know, becoming a 111 00:05:15,480 --> 00:05:18,200 Speaker 1: dad for the first time, Matt. Uh, it was like 112 00:05:18,240 --> 00:05:21,360 Speaker 1: this immediate game changer for me somehow in one moment, 113 00:05:22,120 --> 00:05:24,080 Speaker 1: by just by holding my brand new baby girl, I 114 00:05:24,120 --> 00:05:26,120 Speaker 1: was able to quickly see so many of the ways 115 00:05:26,200 --> 00:05:28,640 Speaker 1: in which my life was kind of currently revolving all 116 00:05:28,640 --> 00:05:31,160 Speaker 1: around me. And like, even even though I've been married 117 00:05:31,200 --> 00:05:33,000 Speaker 1: for a few years and I've been able to see 118 00:05:33,040 --> 00:05:35,839 Speaker 1: some of those aspects, you know, during during those first 119 00:05:35,920 --> 00:05:39,640 Speaker 1: years of marriage, becoming a dad really cemented that for me. 120 00:05:39,680 --> 00:05:42,280 Speaker 1: And it was like a game changer in you know, 121 00:05:42,360 --> 00:05:44,760 Speaker 1: what it looks like to serve other people and actually 122 00:05:44,800 --> 00:05:47,080 Speaker 1: to shed some of that selfishness that I would really 123 00:05:47,120 --> 00:05:49,760 Speaker 1: come accustomed to. Uh. And Yeah, it also helped me 124 00:05:49,800 --> 00:05:52,280 Speaker 1: see my parents in a new light instantaneously too, Like 125 00:05:52,520 --> 00:05:55,040 Speaker 1: I was able to see maybe their parenting mistakes differently 126 00:05:55,200 --> 00:05:58,160 Speaker 1: as I started to make similar mistakes in parenting myself. 127 00:05:58,560 --> 00:06:01,520 Speaker 1: And yeah, we don't really get many paradigm shifting experiences 128 00:06:01,600 --> 00:06:03,960 Speaker 1: in our lives, right where just in an instant we 129 00:06:03,960 --> 00:06:07,320 Speaker 1: see everything with clarity, but you can look differently because 130 00:06:07,360 --> 00:06:08,880 Speaker 1: I was there, you know, Kate, and I shoot up 131 00:06:08,880 --> 00:06:10,800 Speaker 1: the next day glow about me or something of that 132 00:06:10,880 --> 00:06:12,920 Speaker 1: is that. I think it was just the adrenaline for 133 00:06:13,120 --> 00:06:17,679 Speaker 1: from having labored with Emi, labor for hours whatever, almost 134 00:06:17,720 --> 00:06:20,120 Speaker 1: a day, right, but those are the salad days. No, 135 00:06:20,240 --> 00:06:22,400 Speaker 1: those are the salad days. But yeah, I think you 136 00:06:22,440 --> 00:06:25,160 Speaker 1: and I we believe that understanding the necessity of ownership 137 00:06:25,200 --> 00:06:28,600 Speaker 1: and the long term benefits that ownership provides can provide 138 00:06:28,600 --> 00:06:31,880 Speaker 1: like a similar epiphany for people that are producing financial independence, 139 00:06:32,120 --> 00:06:35,200 Speaker 1: just thinking about the way we invest and realizing the 140 00:06:35,279 --> 00:06:38,920 Speaker 1: power of ownership is really powerful. Yeah. Absolutely, I mean 141 00:06:39,200 --> 00:06:40,880 Speaker 1: to put it bluntly, you know, if you want to 142 00:06:40,920 --> 00:06:43,919 Speaker 1: stay poor, well don't own anything, right, And I don't know, 143 00:06:43,960 --> 00:06:46,279 Speaker 1: maybe that's kind of harsh, but it's true because in 144 00:06:46,320 --> 00:06:49,640 Speaker 1: our consumer driven society, we actually are encouraged to buy things. 145 00:06:49,960 --> 00:06:54,000 Speaker 1: It's just that we're god on to purchase the wrong things. Uh, 146 00:06:54,040 --> 00:06:56,680 Speaker 1: And it's exactly that we're pushed to buy stuff that 147 00:06:56,760 --> 00:06:59,880 Speaker 1: quickly loses its value instead of directing our money and 148 00:07:00,040 --> 00:07:03,800 Speaker 1: ownership of different assets that will grow our wealth. And 149 00:07:03,880 --> 00:07:06,680 Speaker 1: there's what we see around us in media and advertisements 150 00:07:06,920 --> 00:07:10,040 Speaker 1: and the general keeping up with the joneses vibe that 151 00:07:10,080 --> 00:07:13,000 Speaker 1: we feel because of social media and peer pressure. This 152 00:07:13,080 --> 00:07:16,800 Speaker 1: all directs us to pursue the wrong things, buying more stuff. 153 00:07:17,200 --> 00:07:19,480 Speaker 1: But oftentimes, man that pursuit leaves us wanting more, and 154 00:07:19,480 --> 00:07:23,520 Speaker 1: it keeps us from the more important work of becoming owners. 155 00:07:23,760 --> 00:07:26,640 Speaker 1: And specifically we're talking here about owners of things that 156 00:07:26,840 --> 00:07:30,239 Speaker 1: gain value. That is what will provide the real financial 157 00:07:30,240 --> 00:07:32,440 Speaker 1: freedom in our lives. Yeah. Yeah, it's really important to 158 00:07:32,440 --> 00:07:35,360 Speaker 1: own the right things, right, Like some some places that 159 00:07:35,400 --> 00:07:37,200 Speaker 1: we put our money will cause our net worth to 160 00:07:37,240 --> 00:07:39,560 Speaker 1: go up over time, while other places that we put 161 00:07:39,600 --> 00:07:41,560 Speaker 1: our money, we'll cause it to go down. You know, 162 00:07:41,560 --> 00:07:44,160 Speaker 1: Obviously we need to consume some things, right, Like we 163 00:07:44,200 --> 00:07:47,640 Speaker 1: can't put of our resources towards ownership or we'd starve. 164 00:07:48,400 --> 00:07:52,800 Speaker 1: Compare that grocery budget down from to zero, yeah, exactly, 165 00:07:52,840 --> 00:07:55,760 Speaker 1: And let's just dumpster dive for dinner every night probably, Yeah, 166 00:07:55,760 --> 00:07:57,240 Speaker 1: it's probably not going to be a fund, you know, 167 00:07:57,240 --> 00:07:58,800 Speaker 1: I'm gonna be able to do that for long. But 168 00:07:58,960 --> 00:08:01,720 Speaker 1: knowing the difference between purchase in an investment is crucial, 169 00:08:01,720 --> 00:08:04,360 Speaker 1: and that that might sound stupid. You might say, I 170 00:08:04,440 --> 00:08:06,520 Speaker 1: know what that is, like that that's a simple distinction 171 00:08:06,680 --> 00:08:07,960 Speaker 1: and you don't have to spell it out for me. 172 00:08:08,160 --> 00:08:10,360 Speaker 1: But Matt, I've just heard so many folks refer to 173 00:08:10,480 --> 00:08:13,640 Speaker 1: consumer purchases as an investment. Um and maybe it's just 174 00:08:13,680 --> 00:08:16,640 Speaker 1: petty on my part, but owners, I think, think differently, 175 00:08:16,880 --> 00:08:20,680 Speaker 1: and just that mindset shift is powerful. Developing an owner 176 00:08:20,760 --> 00:08:24,680 Speaker 1: mindset means that you're prioritizing, uh, the long term, and 177 00:08:24,680 --> 00:08:27,200 Speaker 1: I think it's a really exciting concept for people to 178 00:08:27,440 --> 00:08:31,480 Speaker 1: grasp onto two as they're striving towards financial independence. Yeah, 179 00:08:31,480 --> 00:08:33,360 Speaker 1: and you know, as we're talking about buying the right stuff, 180 00:08:33,440 --> 00:08:36,000 Speaker 1: Like we were joking about how a bike could or 181 00:08:36,040 --> 00:08:39,160 Speaker 1: couldn't be an investment, but obviously really it's not, and 182 00:08:39,360 --> 00:08:41,440 Speaker 1: it's it's still one of the best consumer purchases you 183 00:08:41,440 --> 00:08:43,520 Speaker 1: can make, but it's not an investment exactly. Yeah. Yeah, 184 00:08:43,600 --> 00:08:45,360 Speaker 1: I mean, so for the sake of the show, you know, 185 00:08:45,400 --> 00:08:47,760 Speaker 1: we define an investment as money that you put towards 186 00:08:47,840 --> 00:08:52,199 Speaker 1: something that we expect to steadily increase in value over 187 00:08:52,280 --> 00:08:54,920 Speaker 1: a number of years. And yeah, you know, as much 188 00:08:54,960 --> 00:08:56,800 Speaker 1: as we love our bikes, were not expecting them to 189 00:08:56,920 --> 00:08:59,720 Speaker 1: inherently gain and value. You can't expect to sell your 190 00:08:59,720 --> 00:09:02,160 Speaker 1: bike three years from now out of profit. Now, you know, 191 00:09:02,200 --> 00:09:05,880 Speaker 1: there might be tremendous value, tremendous enjoyment that we receive 192 00:09:06,120 --> 00:09:09,720 Speaker 1: from our bikes, but the object itself, uh, isn't going 193 00:09:09,720 --> 00:09:12,400 Speaker 1: to increase in value. And similarly, you might hear someone 194 00:09:12,480 --> 00:09:15,319 Speaker 1: say that new clothes for work, like that's that's that's 195 00:09:15,360 --> 00:09:17,240 Speaker 1: also an investment. I need to do this in order 196 00:09:17,240 --> 00:09:20,400 Speaker 1: to get ahead, to get that promotion. Nope, you don't. 197 00:09:20,559 --> 00:09:22,640 Speaker 1: That is not how it works. Like you won't be 198 00:09:22,679 --> 00:09:25,760 Speaker 1: able to yourself. Yeah, Uh, those value that the value 199 00:09:25,760 --> 00:09:27,600 Speaker 1: of those clothes is not going to be higher in 200 00:09:27,600 --> 00:09:30,240 Speaker 1: a few years. Uh, you're not gonna gain more money 201 00:09:30,280 --> 00:09:32,679 Speaker 1: from selling those clothes and in three to five, ten 202 00:09:32,760 --> 00:09:35,040 Speaker 1: years whatever than the money that you pay for them 203 00:09:35,160 --> 00:09:38,040 Speaker 1: right now. Uh. You certainly will look nice and you 204 00:09:38,160 --> 00:09:41,040 Speaker 1: look professional, but it is not an investment. So that's 205 00:09:41,080 --> 00:09:43,800 Speaker 1: one of the big differences between purchases that bring you 206 00:09:43,920 --> 00:09:47,720 Speaker 1: value compared to actual investments, and we're talking about investments 207 00:09:47,720 --> 00:09:50,440 Speaker 1: and owning those today on the show. Yeah, so so 208 00:09:50,520 --> 00:09:53,000 Speaker 1: let's let's talk about the continuum of ownership, Matt, because 209 00:09:53,320 --> 00:09:56,680 Speaker 1: sometimes saving money can accidentally become the top goal in 210 00:09:56,720 --> 00:09:58,960 Speaker 1: somebody's life. And I think some of our listeners maybe 211 00:09:59,000 --> 00:10:02,400 Speaker 1: fall into that camp where right now they are in 212 00:10:02,440 --> 00:10:04,599 Speaker 1: the phase where they just have to start saving. And 213 00:10:04,600 --> 00:10:06,439 Speaker 1: you gotta start somewhere, right You've gotta be able to 214 00:10:06,440 --> 00:10:09,360 Speaker 1: cut down your expenses, uh increase the gap so that 215 00:10:09,440 --> 00:10:11,720 Speaker 1: you can and are able to save more of your 216 00:10:11,720 --> 00:10:13,840 Speaker 1: money over time. And that is the first thing that 217 00:10:13,880 --> 00:10:15,360 Speaker 1: you should be doing, by the way, is that is 218 00:10:15,400 --> 00:10:17,240 Speaker 1: making sure that you're saving money so that that money 219 00:10:17,320 --> 00:10:19,880 Speaker 1: is available as an emergency fund in a savings or 220 00:10:19,880 --> 00:10:21,920 Speaker 1: a checking account. But some people, some of our listeners 221 00:10:22,040 --> 00:10:25,160 Speaker 1: might be so risk averse that they stay in that 222 00:10:25,160 --> 00:10:28,000 Speaker 1: space and they don't make the leap to ownership. And 223 00:10:28,040 --> 00:10:30,800 Speaker 1: so you might be of the mindset that, well, I'm 224 00:10:30,800 --> 00:10:33,600 Speaker 1: not spending all my money anymore, I'm saving some and 225 00:10:33,800 --> 00:10:35,760 Speaker 1: you might be super proud of yourself, and like we said, 226 00:10:35,760 --> 00:10:38,040 Speaker 1: that's the first step. That's great, it's a start, but 227 00:10:38,160 --> 00:10:41,280 Speaker 1: saving money is really just the absence of spending. It's 228 00:10:41,360 --> 00:10:43,480 Speaker 1: it's obviously a crucial thing that needs to be mastered 229 00:10:43,480 --> 00:10:46,360 Speaker 1: in the area of personal finance. But just doing that 230 00:10:46,480 --> 00:10:49,400 Speaker 1: doesn't mean that you're on the all important path to ownership. 231 00:10:49,760 --> 00:10:51,839 Speaker 1: And yeah, sure, sure you've got more cash on hand now, 232 00:10:52,040 --> 00:10:54,120 Speaker 1: but what are you actually doing with that money? Becoming 233 00:10:54,160 --> 00:10:58,000 Speaker 1: an owner means thinking beyond just the realm of budgeting 234 00:10:58,040 --> 00:11:01,240 Speaker 1: and frugality. Matt, I think reality is a skill. It's 235 00:11:01,240 --> 00:11:03,520 Speaker 1: a good skill. It's an important scale. I think if 236 00:11:03,559 --> 00:11:07,280 Speaker 1: we leave our personal financial knowledge there in the camp 237 00:11:07,360 --> 00:11:10,760 Speaker 1: of frugality, though, we're missing out on a whole other section, 238 00:11:11,120 --> 00:11:16,000 Speaker 1: probably the most important section growing our wealth, becoming owners. Yeah. Absolutely, again, 239 00:11:16,040 --> 00:11:18,000 Speaker 1: it kind of makes me takes me back to the 240 00:11:18,000 --> 00:11:19,840 Speaker 1: seven money gears what we talked about here in the show. 241 00:11:20,200 --> 00:11:21,880 Speaker 1: But imagine, and I know this is hard because most 242 00:11:21,880 --> 00:11:24,319 Speaker 1: folks don't have stick shifts, but imagine you've got a 243 00:11:24,360 --> 00:11:27,400 Speaker 1: stick shift and you're in that first gear and that 244 00:11:27,440 --> 00:11:30,079 Speaker 1: gets you off the line and you're going But I mean, 245 00:11:30,120 --> 00:11:31,800 Speaker 1: what are you gonna talk about at like ten miles 246 00:11:31,800 --> 00:11:33,320 Speaker 1: per hour? I mean, you can't go fast in first 247 00:11:33,320 --> 00:11:35,720 Speaker 1: gear without completely blowing up your engine. Right, You're gonna 248 00:11:35,840 --> 00:11:38,800 Speaker 1: just destroy it. But that's in a way, that's what 249 00:11:38,800 --> 00:11:40,360 Speaker 1: we're talking about here. When it comes to your money, 250 00:11:40,480 --> 00:11:43,360 Speaker 1: You're going to limit yourself if all you're doing is 251 00:11:43,520 --> 00:11:46,240 Speaker 1: just saving your money. Like sure, you'll have maybe a 252 00:11:46,280 --> 00:11:48,600 Speaker 1: massive emergency fund that you have a lot of liquid 253 00:11:48,600 --> 00:11:50,640 Speaker 1: funds in the bank, but that is not the goal. 254 00:11:50,800 --> 00:11:53,080 Speaker 1: We want you to gain speed, and that's why you 255 00:11:53,120 --> 00:11:55,280 Speaker 1: have to shift to the other gears where you are 256 00:11:55,360 --> 00:11:57,480 Speaker 1: going to be investing your money. And man, there's another 257 00:11:57,480 --> 00:12:00,000 Speaker 1: problem too when you have all this money just sitting there, 258 00:12:00,120 --> 00:12:02,520 Speaker 1: maybe in your savings or your checking account, because you know, 259 00:12:02,559 --> 00:12:05,040 Speaker 1: in those moments or phases of life where maybe you 260 00:12:05,080 --> 00:12:06,839 Speaker 1: have your head in the right place, you know you're 261 00:12:06,840 --> 00:12:09,080 Speaker 1: not spending and instead you're funneling that money into your 262 00:12:09,080 --> 00:12:11,240 Speaker 1: savings account. Uh, there's gonna be times in your life 263 00:12:11,240 --> 00:12:13,720 Speaker 1: where that's going to be easier to do than other times. Right, Like, 264 00:12:13,760 --> 00:12:15,880 Speaker 1: maybe you just got a new job, you've got a 265 00:12:15,920 --> 00:12:17,800 Speaker 1: higher salary, you're busy with work, so maybe you're not 266 00:12:17,800 --> 00:12:20,760 Speaker 1: spending much money at all. That is a great first step, 267 00:12:21,120 --> 00:12:23,719 Speaker 1: but then they're gonna be times where you you might 268 00:12:23,720 --> 00:12:26,000 Speaker 1: feel a little bored, right, and you look and see 269 00:12:26,000 --> 00:12:28,480 Speaker 1: all this extra accessible cash just sitting there in your 270 00:12:28,480 --> 00:12:30,679 Speaker 1: bank account, and you're gonna be tempted to spend it. 271 00:12:30,920 --> 00:12:33,600 Speaker 1: You know, why not get a new car? You earned 272 00:12:33,720 --> 00:12:36,199 Speaker 1: all that money. Maybe it's time to splurage on a 273 00:12:36,320 --> 00:12:38,920 Speaker 1: on a peloton they seemed pretty cool, even though you 274 00:12:38,960 --> 00:12:43,520 Speaker 1: can't run on them without paying run although maybe they've 275 00:12:43,760 --> 00:12:47,960 Speaker 1: updated that that software problem by now. But essentially, like 276 00:12:48,000 --> 00:12:50,480 Speaker 1: this is almost like an argument against savings. We want 277 00:12:50,480 --> 00:12:52,680 Speaker 1: you to have enough savings in the bank that's liquid, 278 00:12:52,920 --> 00:12:55,280 Speaker 1: that acts as a cushion for you. But beyond that, 279 00:12:55,760 --> 00:12:57,760 Speaker 1: we do not want you to have that money just 280 00:12:57,760 --> 00:13:00,920 Speaker 1: sitting there that's accessible. We want you to invest that money. 281 00:13:01,120 --> 00:13:02,800 Speaker 1: Having too much savings it almost burns a hole in 282 00:13:02,880 --> 00:13:05,480 Speaker 1: your pocket, you know, and you and having some of 283 00:13:05,480 --> 00:13:08,720 Speaker 1: that money in investments owning things kind of ties that 284 00:13:08,760 --> 00:13:11,400 Speaker 1: money up in a positive way, like it's building your 285 00:13:11,440 --> 00:13:14,280 Speaker 1: net worth, but it's also not readily accessible for you 286 00:13:14,360 --> 00:13:16,439 Speaker 1: to spend, and that's a good thing. So yeah, going 287 00:13:16,480 --> 00:13:19,320 Speaker 1: going back to the idea of the continuum of ownership. 288 00:13:19,400 --> 00:13:21,800 Speaker 1: When you buy items, even purchases that bring you a 289 00:13:21,800 --> 00:13:24,800 Speaker 1: lot of joy and value, those objects drop in value 290 00:13:24,920 --> 00:13:28,000 Speaker 1: right over time. Uh. Some more quickly than others, like 291 00:13:28,160 --> 00:13:31,880 Speaker 1: buying a new car. Uh, the initial depreciation hit is rapid, right, 292 00:13:31,880 --> 00:13:34,280 Speaker 1: and over the first three or four years, your car 293 00:13:34,400 --> 00:13:37,439 Speaker 1: is going to go down in value by on average, 294 00:13:37,720 --> 00:13:39,680 Speaker 1: And so yeah, that means that your net worth is 295 00:13:39,679 --> 00:13:42,800 Speaker 1: decreasing at the same time, think about a chart that 296 00:13:42,840 --> 00:13:45,199 Speaker 1: maybe looks the opposite of the way the SP five 297 00:13:45,640 --> 00:13:47,600 Speaker 1: has looked over the over the last ten years. And 298 00:13:47,640 --> 00:13:50,800 Speaker 1: that's what you're doing when you're buying consumer goods that 299 00:13:50,960 --> 00:13:54,120 Speaker 1: rapidly depreciate. And then yeah, when you're sitting on your 300 00:13:54,120 --> 00:13:57,720 Speaker 1: money as cash, you flatlined. Right, your line isn't going down, 301 00:13:57,880 --> 00:14:00,560 Speaker 1: but it's also not going up. It's just not doing 302 00:14:00,640 --> 00:14:03,400 Speaker 1: much of anything. But when you invest your money and 303 00:14:03,440 --> 00:14:06,360 Speaker 1: you own the right assets, the line on that chart, 304 00:14:06,480 --> 00:14:08,240 Speaker 1: it's gonna grow, it's gonna go up into the right 305 00:14:08,559 --> 00:14:11,160 Speaker 1: and that is the key to wealth building. Ownership is 306 00:14:11,200 --> 00:14:13,400 Speaker 1: how you get their. Ownership is how you build wealth. 307 00:14:13,600 --> 00:14:15,720 Speaker 1: And so, Matt, there are three main ways to become 308 00:14:15,760 --> 00:14:18,760 Speaker 1: an owner in this country. We'll talk about them from 309 00:14:18,960 --> 00:14:22,360 Speaker 1: easiest to hardest, and let's kind of discuss maybe how 310 00:14:22,480 --> 00:14:25,880 Speaker 1: our listeners should go about the process of becoming an owner. 311 00:14:25,960 --> 00:14:36,880 Speaker 1: Let's get to that right after this break. All right, 312 00:14:36,920 --> 00:14:39,400 Speaker 1: we're back and we are talking about the key to 313 00:14:39,480 --> 00:14:41,800 Speaker 1: wealth building and Jil, let's talk about some of the 314 00:14:41,920 --> 00:14:45,720 Speaker 1: most effective ways to pursue ownership. Uh, and investing in 315 00:14:45,760 --> 00:14:48,640 Speaker 1: the market is by far the easiest path to ownership. 316 00:14:48,800 --> 00:14:51,320 Speaker 1: I love easy paths, Matt gonna li who doesn't. I 317 00:14:51,360 --> 00:14:54,080 Speaker 1: don't want to climb everest. If you've got me like 318 00:14:54,160 --> 00:14:56,560 Speaker 1: an easy little hike, I'm in the little nice hike 319 00:14:56,600 --> 00:14:59,560 Speaker 1: path around the lake like that sounds more attainable. But 320 00:14:59,640 --> 00:15:03,000 Speaker 1: even probably not too much elevation change as easy as 321 00:15:03,040 --> 00:15:06,200 Speaker 1: it is, here's the problem. Nearly fifty percent of Americans 322 00:15:06,320 --> 00:15:08,680 Speaker 1: have almost zero exposure to the stock market. This is 323 00:15:08,680 --> 00:15:11,200 Speaker 1: according to Gallop, and that's a real problem. Man. That 324 00:15:11,240 --> 00:15:13,760 Speaker 1: means that essentially half of Americans aren't building wealth. And 325 00:15:13,760 --> 00:15:16,400 Speaker 1: what is basically the simplest way to do it buying 326 00:15:16,560 --> 00:15:19,160 Speaker 1: index funds that allow you to share in the gains 327 00:15:19,240 --> 00:15:22,200 Speaker 1: of some of the biggest businesses and industries in our country. 328 00:15:22,480 --> 00:15:25,280 Speaker 1: Uh and even in the entire world. There are, of course, 329 00:15:26,040 --> 00:15:28,680 Speaker 1: many reasons that like so many folks aren't investing. I 330 00:15:28,760 --> 00:15:32,200 Speaker 1: think a lack of financial literacy is is one. And 331 00:15:32,280 --> 00:15:34,680 Speaker 1: you know, truly not having enough money to be investing 332 00:15:34,720 --> 00:15:38,680 Speaker 1: is another. Real wages adjusted for inflation, actually haven't kept 333 00:15:38,760 --> 00:15:41,680 Speaker 1: up with the rising costs, which has squeezed the budgets 334 00:15:41,680 --> 00:15:43,800 Speaker 1: of many Americans. But we also know that there is 335 00:15:43,840 --> 00:15:47,240 Speaker 1: a big swath of that fifty who could be investing 336 00:15:47,400 --> 00:15:49,920 Speaker 1: in pursuing ownership, but they've actually decided to put it 337 00:15:49,920 --> 00:15:51,920 Speaker 1: on the back Learner, they don't feel that it's important. 338 00:15:52,160 --> 00:15:53,720 Speaker 1: And if that's you, we wouldn't convince you to do 339 00:15:53,800 --> 00:15:56,920 Speaker 1: something different with your money today. Starting sooner as opposed 340 00:15:56,960 --> 00:15:58,600 Speaker 1: to later is important, and I think there are a 341 00:15:58,640 --> 00:16:00,360 Speaker 1: lot of people if you talk to him now, they 342 00:16:00,640 --> 00:16:03,800 Speaker 1: would say, I wish I'd started earlier because of the 343 00:16:03,840 --> 00:16:06,960 Speaker 1: compounding returns that you're going to experience the longer you 344 00:16:07,160 --> 00:16:09,680 Speaker 1: stay invested. So let's talk about that time frame. Maat Like, 345 00:16:09,680 --> 00:16:13,120 Speaker 1: when you invest with an ownership mentality, you are buying 346 00:16:13,160 --> 00:16:16,960 Speaker 1: for the long haul. There's a difference between owning and speculating, 347 00:16:17,200 --> 00:16:19,200 Speaker 1: and I think a lot of what we've seen recently 348 00:16:19,400 --> 00:16:23,080 Speaker 1: is more of the speculating Friday right, short term ownership 349 00:16:23,520 --> 00:16:26,200 Speaker 1: isn't really ownership at all, And that's just not what 350 00:16:26,400 --> 00:16:27,960 Speaker 1: we're talking about. That's not what you and I are 351 00:16:27,960 --> 00:16:30,840 Speaker 1: all about. So, yeah, could you make a quick buck 352 00:16:31,040 --> 00:16:35,000 Speaker 1: from buying Meme stocks or from some quick investments in crypto, Yeah, 353 00:16:35,040 --> 00:16:38,000 Speaker 1: it's possible, right, But but owners are less focused on 354 00:16:38,040 --> 00:16:40,440 Speaker 1: getting rich quick by trying to time the market because 355 00:16:40,560 --> 00:16:43,440 Speaker 1: that path is fraught with pitfalls, and uh, yeah, you 356 00:16:43,440 --> 00:16:46,280 Speaker 1: could potentially lose a lot in a short amount of time. 357 00:16:46,640 --> 00:16:49,160 Speaker 1: Real owners by meaningful assets that they planned to hold 358 00:16:49,360 --> 00:16:53,000 Speaker 1: for years and years and preferably for multiple decades. So yeah, 359 00:16:53,040 --> 00:16:56,000 Speaker 1: when it comes to being an owner, Matt and I say, 360 00:16:56,160 --> 00:16:58,360 Speaker 1: it's really really important to be in it for the 361 00:16:58,400 --> 00:17:01,760 Speaker 1: long haul, to be buying share in companies basically all 362 00:17:01,800 --> 00:17:04,920 Speaker 1: the companies ideally and holding them for the long haul. Yeah, 363 00:17:04,920 --> 00:17:06,840 Speaker 1: And like you said, we've seen a pretty dramatic uptick 364 00:17:07,280 --> 00:17:10,160 Speaker 1: in that speculative type of investing over the last few years, 365 00:17:10,240 --> 00:17:13,360 Speaker 1: especially over the last maybe eighteen months. I think that 366 00:17:13,359 --> 00:17:15,439 Speaker 1: that rise in investing has a lot to do with 367 00:17:15,760 --> 00:17:18,160 Speaker 1: the ability for folks to be able to trade, buy 368 00:17:18,200 --> 00:17:20,760 Speaker 1: and sell stocks on their phones, right with different apps 369 00:17:20,800 --> 00:17:25,520 Speaker 1: like robin Hood. There's pros and cons, but at the 370 00:17:25,560 --> 00:17:28,120 Speaker 1: same time, it makes it too accessible if you can 371 00:17:28,160 --> 00:17:30,560 Speaker 1: just sit there, pull out your phone, while you're waiting 372 00:17:30,600 --> 00:17:32,800 Speaker 1: on the light to turn green or something like that, 373 00:17:32,800 --> 00:17:34,760 Speaker 1: and all of a sudden, you've like, you know, sold 374 00:17:34,800 --> 00:17:37,080 Speaker 1: some stocks just because you had a feeling in your gut, 375 00:17:38,160 --> 00:17:40,439 Speaker 1: just because somebody texted you was just like hey, by this. 376 00:17:40,480 --> 00:17:43,000 Speaker 1: It's like, that's just what you ate this morning. That's 377 00:17:43,000 --> 00:17:45,000 Speaker 1: not a good reason to trade. Yeah, but again, this 378 00:17:45,080 --> 00:17:47,800 Speaker 1: is basically short term trading of assets, where you're hoping 379 00:17:47,840 --> 00:17:50,520 Speaker 1: to make a quick buck, and that is not our style. 380 00:17:50,920 --> 00:17:53,600 Speaker 1: A long time ago, back in the nineties. Uh, there's 381 00:17:53,600 --> 00:17:55,320 Speaker 1: this quote by Warren Buffett, and he said that if 382 00:17:55,320 --> 00:17:57,720 Speaker 1: you aren't willing to own a stock for ten years, 383 00:17:57,920 --> 00:18:00,919 Speaker 1: don't even think about owning it for ten minutes. I 384 00:18:01,000 --> 00:18:03,520 Speaker 1: love that the best investors have been able to view 385 00:18:03,560 --> 00:18:06,560 Speaker 1: their their their investments as buying a piece of a business, 386 00:18:06,760 --> 00:18:09,000 Speaker 1: not just buying a piece of paper, not just buying 387 00:18:09,040 --> 00:18:11,800 Speaker 1: a number on the screen, not just buying a feeling, 388 00:18:11,960 --> 00:18:14,600 Speaker 1: which oftentimes is what's happening with these day traders now. 389 00:18:15,000 --> 00:18:17,640 Speaker 1: And so that subtle shift in thinking is important. And uh, 390 00:18:17,680 --> 00:18:21,040 Speaker 1: it'll it'll feel your likelihood of you know, taking the 391 00:18:21,080 --> 00:18:23,520 Speaker 1: long term approach, and that's what we want folks to do. Yeah, 392 00:18:23,760 --> 00:18:25,960 Speaker 1: I agree, man. I think if all you see is 393 00:18:26,119 --> 00:18:29,200 Speaker 1: numbers on a screen and you don't see the underlying 394 00:18:29,920 --> 00:18:32,520 Speaker 1: thing that you own, the asset that you have just purchased, 395 00:18:32,760 --> 00:18:34,520 Speaker 1: then you're just not going to think about it properly. 396 00:18:34,640 --> 00:18:36,920 Speaker 1: So let's give a couple of examples maybe of how 397 00:18:36,920 --> 00:18:40,040 Speaker 1: this plays out, of how becoming an owner would make 398 00:18:40,080 --> 00:18:43,720 Speaker 1: you rich, whereas instead consuming that money would do the opposite. 399 00:18:43,840 --> 00:18:46,520 Speaker 1: For instance, if you were to have bought Tesla stock 400 00:18:46,720 --> 00:18:50,240 Speaker 1: instead of buying an actual Tesla when they put out 401 00:18:50,280 --> 00:18:52,439 Speaker 1: the first model, as when when that came on the market, 402 00:18:52,840 --> 00:18:56,439 Speaker 1: you would be a multimillionaire, right Uh. Buying that fancy 403 00:18:56,640 --> 00:18:59,600 Speaker 1: new electric vehicle nine years ago would have set you 404 00:18:59,640 --> 00:19:01,920 Speaker 1: back seventy seven thod dollars. It's a lot of money. 405 00:19:01,920 --> 00:19:04,360 Speaker 1: It's a lot of money. But if instead you had 406 00:19:04,480 --> 00:19:07,000 Speaker 1: invested that money, if you had seventy seven thousand dollars 407 00:19:07,080 --> 00:19:09,280 Speaker 1: randomly on hand, and you had decided to instead of 408 00:19:09,720 --> 00:19:13,240 Speaker 1: opting for the car, decided to purchase Tesla stock, you'd 409 00:19:13,280 --> 00:19:15,840 Speaker 1: be sitting on over eleven thousand shares of Tesla stock, 410 00:19:16,320 --> 00:19:19,480 Speaker 1: which is worth now well over ten million dollars. And 411 00:19:19,920 --> 00:19:22,639 Speaker 1: that's the power of ownership. I feel like that helps 412 00:19:22,840 --> 00:19:26,000 Speaker 1: drive the point home, right, that this money can go 413 00:19:26,080 --> 00:19:29,680 Speaker 1: towards buying things, or it can go towards building your wealth. 414 00:19:30,119 --> 00:19:33,720 Speaker 1: And by owning shares in an actual company like Tesla 415 00:19:33,800 --> 00:19:36,600 Speaker 1: that has done so incredibly well, that's obviously kind of 416 00:19:36,600 --> 00:19:39,160 Speaker 1: an outlier. But still even if you just put that money, 417 00:19:39,240 --> 00:19:41,960 Speaker 1: that's seventy seven thousand dollars in the SMB five hundred, 418 00:19:42,200 --> 00:19:43,840 Speaker 1: that would be worth a whole heck of a lot 419 00:19:43,840 --> 00:19:46,240 Speaker 1: more money today too. Yeah, and it's not that that 420 00:19:46,320 --> 00:19:49,760 Speaker 1: models is worth nothing today, but it's not worth ten 421 00:19:49,760 --> 00:19:52,159 Speaker 1: million dollars. I'll tell you that on a on a 422 00:19:52,240 --> 00:19:54,520 Speaker 1: slightly smaller scale, or at least a you know, smaller 423 00:19:54,600 --> 00:19:57,240 Speaker 1: numbers here, if you had purchased Apple stock back instead 424 00:19:57,240 --> 00:20:00,720 Speaker 1: of buying the first generation iPhone, that five dollars would 425 00:20:00,720 --> 00:20:03,400 Speaker 1: have actually turned into fifteen thousand dollars, which is that's 426 00:20:03,400 --> 00:20:05,400 Speaker 1: a pretty nice gain right over the years. Not nearly 427 00:20:05,440 --> 00:20:08,840 Speaker 1: as impressive as Tesla, but but yeah, what do you 428 00:20:08,880 --> 00:20:10,840 Speaker 1: think about it? Though a lot of people could invest 429 00:20:10,880 --> 00:20:13,399 Speaker 1: five hundred bucks, but what he's got seventy seven exactly, 430 00:20:13,400 --> 00:20:15,800 Speaker 1: And the yeah, Tesla example, that's more like can I 431 00:20:15,880 --> 00:20:18,520 Speaker 1: cherry pick a nups? But let's ratch it up a 432 00:20:18,520 --> 00:20:20,359 Speaker 1: little bit. If you put four hundred dollars into apple 433 00:20:20,400 --> 00:20:23,280 Speaker 1: Stock instead of buying the first generation of the iPod, 434 00:20:23,640 --> 00:20:26,200 Speaker 1: you'd have over a hundred and fifty thousand dollars right now. 435 00:20:26,240 --> 00:20:28,280 Speaker 1: But that click wheel was pretty cool, so you know, 436 00:20:28,359 --> 00:20:29,879 Speaker 1: the first ones didn't have to click, they didn't have 437 00:20:29,880 --> 00:20:32,199 Speaker 1: the most I got the click wheel that was like 438 00:20:32,200 --> 00:20:34,320 Speaker 1: a worse pop party had like the four touch screen 439 00:20:34,440 --> 00:20:36,359 Speaker 1: kind of buttons at the top before they moved to 440 00:20:36,400 --> 00:20:38,520 Speaker 1: the quick. Well, then you're definitely investing. That one sucks, 441 00:20:39,960 --> 00:20:41,919 Speaker 1: But you don't even want to know what the numbers are. 442 00:20:41,960 --> 00:20:45,120 Speaker 1: If you had invested in apple Stock instead of buying 443 00:20:45,160 --> 00:20:47,960 Speaker 1: the original Macintosh back in the mid eighties, back in 444 00:20:48,000 --> 00:20:50,360 Speaker 1: eighty four, but we're gonna tell you anyway, because it's 445 00:20:50,359 --> 00:20:53,439 Speaker 1: just incredible, you would have over twenty eight million dollars. 446 00:20:53,520 --> 00:20:55,160 Speaker 1: I feel like sending that one to my dad because 447 00:20:55,440 --> 00:20:58,240 Speaker 1: I know that they had purchased one of those first 448 00:20:58,480 --> 00:21:02,440 Speaker 1: McIntosh is back in the day, and uh, I don't 449 00:21:02,440 --> 00:21:04,720 Speaker 1: know if this would make him just depressed or if 450 00:21:04,760 --> 00:21:06,399 Speaker 1: you'd be like, no, that was a good decision, Like 451 00:21:06,440 --> 00:21:09,040 Speaker 1: we still needed to have learned how to you know, 452 00:21:09,080 --> 00:21:11,240 Speaker 1: do personal computing back in the day. You learned a 453 00:21:11,240 --> 00:21:13,280 Speaker 1: lot as a little tiny kid. See if you say 454 00:21:13,320 --> 00:21:15,520 Speaker 1: I did. But if you sent me that email and 455 00:21:15,600 --> 00:21:16,880 Speaker 1: I had done that, I would have been like, I've 456 00:21:16,880 --> 00:21:18,800 Speaker 1: made a huge mistake. I'd be able to admit it, right, Like, 457 00:21:19,119 --> 00:21:22,359 Speaker 1: because right, I mean, that just goes to show the 458 00:21:22,359 --> 00:21:24,720 Speaker 1: power of ownership. Right. So, Yeah, when you look at 459 00:21:24,720 --> 00:21:27,720 Speaker 1: the difference between consumption and investing, it can be really 460 00:21:27,720 --> 00:21:30,840 Speaker 1: really stark. And these are obviously examples from some of 461 00:21:30,840 --> 00:21:33,240 Speaker 1: the most highly valued companies in the world. Right. But 462 00:21:33,280 --> 00:21:35,000 Speaker 1: like I said, even if we opted instead to give 463 00:21:35,000 --> 00:21:36,560 Speaker 1: the numbers of what you would have earned in the 464 00:21:36,560 --> 00:21:38,840 Speaker 1: total stock market, right, you would still have seen just 465 00:21:38,880 --> 00:21:42,040 Speaker 1: a ridiculous amount of growth on that four hundred or 466 00:21:42,040 --> 00:21:44,480 Speaker 1: five hundred dollars that you would have used to buy 467 00:21:44,840 --> 00:21:48,040 Speaker 1: something that Apple created and instead invested in the stock 468 00:21:48,040 --> 00:21:50,160 Speaker 1: market as a whole. But I just love seeing those 469 00:21:50,200 --> 00:21:52,680 Speaker 1: numbers and the disparity map between the autem that you 470 00:21:52,760 --> 00:21:54,439 Speaker 1: get when you make a purchase and then what happens 471 00:21:54,440 --> 00:21:57,200 Speaker 1: with your money when you choose the path of ownership instead. 472 00:21:57,520 --> 00:21:59,880 Speaker 1: It's really astounding, and for me, it drives the point home, 473 00:22:00,040 --> 00:22:01,840 Speaker 1: just makes me want to be even more conscious of 474 00:22:01,880 --> 00:22:05,400 Speaker 1: my spending so that I can prioritize ownership even more. 475 00:22:05,520 --> 00:22:07,560 Speaker 1: And you're gonna put your money towards things that appreciate, 476 00:22:07,840 --> 00:22:10,880 Speaker 1: not things that depreciate. And so that's yeah, we're talking 477 00:22:10,880 --> 00:22:14,159 Speaker 1: about investing, you know, ownership and investing again, it's the 478 00:22:14,200 --> 00:22:17,280 Speaker 1: simplest path to doing that. Real estate that's another vehicle 479 00:22:17,440 --> 00:22:19,919 Speaker 1: where ownership makes a whole lot of sense. And uh, 480 00:22:19,960 --> 00:22:22,040 Speaker 1: you know, we'll talk about real estate investing in just 481 00:22:22,080 --> 00:22:24,840 Speaker 1: a second, but just even owning a home to live in, 482 00:22:25,200 --> 00:22:27,840 Speaker 1: if your ownership cycle is long enough, can also help 483 00:22:27,920 --> 00:22:31,040 Speaker 1: you to build wealth over the years. The largest asset 484 00:22:31,160 --> 00:22:33,560 Speaker 1: honestly held by the typical American family is in fact 485 00:22:33,600 --> 00:22:35,720 Speaker 1: their home. And of course we want how to Money 486 00:22:35,760 --> 00:22:40,280 Speaker 1: listeners to consider even going beyond just single family home ownership. Uh, 487 00:22:40,320 --> 00:22:44,000 Speaker 1: it's definitely a traditional path that works, although it's certainly 488 00:22:44,080 --> 00:22:47,080 Speaker 1: not the highest performing path, right, but even still, it's 489 00:22:47,080 --> 00:22:48,919 Speaker 1: worth mentioning that buying a home and owning it for 490 00:22:48,960 --> 00:22:52,399 Speaker 1: decades is still a solid ownership move and the one 491 00:22:52,440 --> 00:22:55,440 Speaker 1: that Americans seem to to feel the most comfortable pursuing. Yeah, 492 00:22:55,440 --> 00:22:57,280 Speaker 1: for sure, and a lot of people are just naturally 493 00:22:57,280 --> 00:23:01,479 Speaker 1: going to gravitate towards that type of ownership over time. Right, 494 00:23:01,640 --> 00:23:03,960 Speaker 1: Just that's a desire of a lot of people is 495 00:23:04,000 --> 00:23:06,639 Speaker 1: to buy a home be planted somewhere. We totally get that. 496 00:23:07,920 --> 00:23:10,360 Speaker 1: Even though it's not always the best investment, sometimes it's 497 00:23:10,359 --> 00:23:14,000 Speaker 1: a good purchase for other reasons, and oftentimes it does 498 00:23:14,200 --> 00:23:17,080 Speaker 1: over time work out to be a decent investment. But 499 00:23:17,480 --> 00:23:19,640 Speaker 1: there there is a big difference between purchasing a home 500 00:23:19,720 --> 00:23:21,919 Speaker 1: for you to just live in and then buying a 501 00:23:21,960 --> 00:23:24,919 Speaker 1: home as an investment property. Right. The former can be 502 00:23:25,119 --> 00:23:27,800 Speaker 1: this slow, methodical wealth builder, But it turns out that 503 00:23:27,840 --> 00:23:30,119 Speaker 1: the way people analyze a home that they want to 504 00:23:30,160 --> 00:23:33,040 Speaker 1: live in is often completely different than the way they 505 00:23:33,119 --> 00:23:35,199 Speaker 1: run the numbers on a home that they're buying to 506 00:23:35,320 --> 00:23:37,480 Speaker 1: generate a return. Right When when I bought my house, 507 00:23:37,760 --> 00:23:39,840 Speaker 1: When most people buy a home to live in, they're 508 00:23:39,880 --> 00:23:42,399 Speaker 1: not thinking about the potential return if they were to 509 00:23:42,480 --> 00:23:45,000 Speaker 1: rent that out instead. And so, yeah, we are fans 510 00:23:45,080 --> 00:23:47,840 Speaker 1: of people thinking about their primary home purchase a little 511 00:23:47,920 --> 00:23:50,960 Speaker 1: more like it were, you know, a traditional investment property. 512 00:23:51,040 --> 00:23:52,639 Speaker 1: But there's more that goes into it than that, Right, 513 00:23:52,960 --> 00:23:55,879 Speaker 1: And we're actually hoping to release an in depth episode 514 00:23:55,880 --> 00:23:58,800 Speaker 1: about real estate investing soon, but it really is one 515 00:23:58,840 --> 00:24:01,760 Speaker 1: of our favorite ways to build wealth through ownership. Right, 516 00:24:01,800 --> 00:24:03,680 Speaker 1: if you're savvy, you can buy a home that makes 517 00:24:03,680 --> 00:24:05,560 Speaker 1: you money when you buy it, that makes you money 518 00:24:05,600 --> 00:24:09,120 Speaker 1: every single month as you're getting paid rent by your tenants, 519 00:24:09,400 --> 00:24:11,800 Speaker 1: and it makes you money as it appreciates over time. 520 00:24:11,880 --> 00:24:15,479 Speaker 1: Hopefully it saves you on taxes too. Reallyses like the trifecta, right. 521 00:24:15,880 --> 00:24:19,840 Speaker 1: Owning a real estate investment property is I think one 522 00:24:19,880 --> 00:24:22,520 Speaker 1: of the best ways, in a decently accessible way for 523 00:24:22,640 --> 00:24:25,320 Speaker 1: people to become owners. And I think it can be 524 00:24:25,359 --> 00:24:28,080 Speaker 1: even more fulfilling to a degree, Matt. You know we 525 00:24:28,240 --> 00:24:30,639 Speaker 1: just you just talked about owning a sliver of a 526 00:24:30,640 --> 00:24:33,480 Speaker 1: company as opposed to owning a piece of paper or 527 00:24:33,680 --> 00:24:37,040 Speaker 1: owning a feeling, and when you own an actual property, 528 00:24:37,520 --> 00:24:39,640 Speaker 1: it's a lot more tangible to Yeah. That being said, 529 00:24:39,640 --> 00:24:41,880 Speaker 1: home ownership isn't for everyone, though, right Like so, first 530 00:24:41,880 --> 00:24:44,239 Speaker 1: of all, it typically takes a lot of money on 531 00:24:44,320 --> 00:24:48,119 Speaker 1: hand in order to buy a property. Saving up for 532 00:24:48,240 --> 00:24:52,200 Speaker 1: a solid down payment ideally is no joke. That takes 533 00:24:52,200 --> 00:24:54,679 Speaker 1: some time. Yeah, not to mention the additional costs that 534 00:24:54,720 --> 00:24:57,400 Speaker 1: typically come along for the ride when you own a home. 535 00:24:57,880 --> 00:25:00,080 Speaker 1: So Yeah, don't listen to us talking about saying the 536 00:25:00,160 --> 00:25:04,360 Speaker 1: family homes and immediately think that we hate renting. Sometimes 537 00:25:04,400 --> 00:25:06,560 Speaker 1: it makes a lot of sensor folks, because aside from 538 00:25:06,560 --> 00:25:10,000 Speaker 1: the additional costs of purchasing and owning a home, just 539 00:25:10,080 --> 00:25:13,399 Speaker 1: the lifestyle that renting provides you might be more of 540 00:25:13,440 --> 00:25:15,480 Speaker 1: what you're looking for in your life. When you own 541 00:25:15,480 --> 00:25:18,320 Speaker 1: your own place, there are a slew of additional responsibilities. 542 00:25:18,520 --> 00:25:20,040 Speaker 1: Like I wouldn't go as far to say that it's 543 00:25:20,040 --> 00:25:22,440 Speaker 1: a part time job, but it definitely takes more time 544 00:25:22,760 --> 00:25:25,159 Speaker 1: than investing in the stock market. Angel. This makes me 545 00:25:25,160 --> 00:25:27,879 Speaker 1: think back to like, so that'st out earlier about half 546 00:25:27,920 --> 00:25:31,040 Speaker 1: of Americans are invested in the stock market. So obviously 547 00:25:31,080 --> 00:25:34,080 Speaker 1: that means half of Americans have a zero exposure, right, Well, 548 00:25:34,080 --> 00:25:37,840 Speaker 1: sixty percent of Americans own their home, right And so 549 00:25:37,840 --> 00:25:40,080 Speaker 1: when you think through all the hurdles and all the 550 00:25:40,640 --> 00:25:43,680 Speaker 1: difficulties involved with purchasing home, it makes you wonder how 551 00:25:43,720 --> 00:25:45,960 Speaker 1: in the world are there more people who own a 552 00:25:46,000 --> 00:25:48,440 Speaker 1: property or who have a mortgage on a property then 553 00:25:48,440 --> 00:25:50,439 Speaker 1: there are who are invested in the stock market. It 554 00:25:50,480 --> 00:25:52,520 Speaker 1: is so easy to invest in the stock market to 555 00:25:52,720 --> 00:25:55,399 Speaker 1: get a retirement account, going that It just makes you 556 00:25:55,440 --> 00:25:59,320 Speaker 1: wonder why there are not more folks invested in the 557 00:25:59,320 --> 00:26:02,800 Speaker 1: stock market. It's it's just the easier way to achieve wealth, 558 00:26:02,880 --> 00:26:05,760 Speaker 1: right owning you know, little slivers of different companies at 559 00:26:05,840 --> 00:26:09,080 Speaker 1: and extremely low cost are virtually free with fidelities, you know, 560 00:26:09,240 --> 00:26:12,160 Speaker 1: zero expense funds. And you kind of touched on how 561 00:26:12,160 --> 00:26:14,359 Speaker 1: there's like something else that comes along with real estate. 562 00:26:14,359 --> 00:26:16,080 Speaker 1: How it's like, Okay, this is my home, this is 563 00:26:16,080 --> 00:26:18,760 Speaker 1: my property that I that I fully own. I've gotta 564 00:26:18,800 --> 00:26:21,119 Speaker 1: think that that's a huge part of it. Right, Like folks, 565 00:26:21,320 --> 00:26:25,320 Speaker 1: I think your own it's tangibly like it's something that 566 00:26:25,359 --> 00:26:27,840 Speaker 1: you can see, Uh, it's something you can touch. And 567 00:26:27,880 --> 00:26:29,880 Speaker 1: for a lot of folks it's something that they're living in, 568 00:26:30,160 --> 00:26:32,600 Speaker 1: and so it to them, I think it just feels 569 00:26:32,640 --> 00:26:35,720 Speaker 1: more real. But the stock market is a real thing, 570 00:26:35,880 --> 00:26:38,560 Speaker 1: even though it's just numbers. For most people on their 571 00:26:38,560 --> 00:26:40,840 Speaker 1: phone or you know, on a read out on their 572 00:26:40,880 --> 00:26:43,440 Speaker 1: on their computer screens are numbers you can eventually cash 573 00:26:43,440 --> 00:26:45,560 Speaker 1: out and spend. It's like that is real money, and 574 00:26:45,880 --> 00:26:47,399 Speaker 1: there's I don't know that We've got to find a 575 00:26:47,440 --> 00:26:50,600 Speaker 1: way to convince more Americans to start investing in the 576 00:26:50,640 --> 00:26:52,560 Speaker 1: stock market, especially to when you look at the return 577 00:26:52,640 --> 00:26:54,719 Speaker 1: on your investment over the past several decades, right from 578 00:26:54,720 --> 00:26:57,800 Speaker 1: the sixties and seventies, uh, the market, the stock market 579 00:26:57,840 --> 00:27:02,320 Speaker 1: has returned numbers much much higher than single family homes. 580 00:27:02,359 --> 00:27:05,560 Speaker 1: And so again we're not saying that you can't grow 581 00:27:05,760 --> 00:27:09,280 Speaker 1: your wealth via a single family home, via your house, 582 00:27:09,800 --> 00:27:11,399 Speaker 1: but the stock market is going to be so much 583 00:27:11,440 --> 00:27:13,520 Speaker 1: more effective and it's going to require so much less 584 00:27:13,720 --> 00:27:16,440 Speaker 1: hassle and time and energy. When you're looking at the numbers, 585 00:27:16,440 --> 00:27:18,280 Speaker 1: it just blows my mind that there are more folks 586 00:27:18,320 --> 00:27:21,080 Speaker 1: who own a home compared to the number of folks 587 00:27:21,080 --> 00:27:23,000 Speaker 1: who are invested in the stock market. Yeah, if we're 588 00:27:23,040 --> 00:27:26,119 Speaker 1: talking about the difficulty level of pursuing investing in the 589 00:27:26,119 --> 00:27:29,280 Speaker 1: stock market versus pursuing investing in real estate, it's so 590 00:27:29,359 --> 00:27:31,080 Speaker 1: much easier to start investing in the market. And really, 591 00:27:31,119 --> 00:27:33,160 Speaker 1: you can kind of put it on autopilot. Do dollar 592 00:27:33,200 --> 00:27:36,879 Speaker 1: cost averaging every single month, Toss twenty fifty bucks a 593 00:27:36,920 --> 00:27:39,360 Speaker 1: month into a roth Ira through you can have. It's 594 00:27:39,359 --> 00:27:41,720 Speaker 1: a it's a no brainer premi your account like it's 595 00:27:41,760 --> 00:27:44,600 Speaker 1: so simple, Yet a whole lot of people just aren't 596 00:27:44,600 --> 00:27:46,760 Speaker 1: taking advantage of it. And even when you can get 597 00:27:46,800 --> 00:27:49,199 Speaker 1: started with very little money, which is so much more 598 00:27:49,200 --> 00:27:51,080 Speaker 1: difficult in the housing market, right, yeah, Yeah. We've got 599 00:27:51,119 --> 00:27:54,159 Speaker 1: a friend of ours who has been teaching a piano lessons, 600 00:27:54,280 --> 00:27:57,720 Speaker 1: like she's accomplished pianist, and she teaches some other kids 601 00:27:57,760 --> 00:28:00,800 Speaker 1: as well. But it makes me think of like some 602 00:28:00,880 --> 00:28:02,520 Speaker 1: of some of the simple songs you could play on 603 00:28:02,560 --> 00:28:05,760 Speaker 1: the piano, and it's almost as if Americans are sitting 604 00:28:05,800 --> 00:28:07,400 Speaker 1: down to the piano for the first time and they're saying, 605 00:28:07,440 --> 00:28:10,199 Speaker 1: all right, I'm gonna learn how to play what is 606 00:28:10,200 --> 00:28:13,480 Speaker 1: it for? At lease? You know, like yeah, yeah, which 607 00:28:13,480 --> 00:28:15,040 Speaker 1: is kind of a classic, but it's also kind of 608 00:28:15,040 --> 00:28:18,280 Speaker 1: a complicated song, more difficult than chopsticks. Yeah, way more. 609 00:28:18,320 --> 00:28:22,320 Speaker 1: And I was thinking hot cross buns, but like investing 610 00:28:22,400 --> 00:28:24,320 Speaker 1: in the stock market is the hot cross buns, and 611 00:28:24,400 --> 00:28:26,360 Speaker 1: only half of Americans are doing it. There are more 612 00:28:26,400 --> 00:28:30,520 Speaker 1: folks jumping straight to the more complicated endeavor when it's 613 00:28:30,520 --> 00:28:32,560 Speaker 1: a lot easier, and you know, well, I guess the 614 00:28:32,800 --> 00:28:34,879 Speaker 1: metaphor breaks down, but it would be a lot easier, 615 00:28:34,880 --> 00:28:37,440 Speaker 1: and it would be much much more gratifying to play chopsticks. 616 00:28:37,840 --> 00:28:40,120 Speaker 1: And granted, like you said, people buy a house because 617 00:28:40,160 --> 00:28:42,520 Speaker 1: it provides other benefits like a place who live. And 618 00:28:42,560 --> 00:28:45,120 Speaker 1: that's understandable, right if you if you want to plant 619 00:28:45,120 --> 00:28:48,000 Speaker 1: your roots, there are additional benefits. But you know, we're 620 00:28:48,080 --> 00:28:50,120 Speaker 1: we're in favor of an all all the above approach 621 00:28:50,880 --> 00:28:53,440 Speaker 1: to ownership, but that there is another path ownership that 622 00:28:53,480 --> 00:28:56,680 Speaker 1: we haven't talked about yet that's more difficult than investing 623 00:28:56,800 --> 00:29:00,000 Speaker 1: in the stock market, but it can also provide higher returns. 624 00:29:00,040 --> 00:29:02,640 Speaker 1: Let's talk about starting your own business. Let's do it. 625 00:29:02,760 --> 00:29:05,560 Speaker 1: We talked about this recently with Rachel Richards. There is 626 00:29:05,560 --> 00:29:09,400 Speaker 1: a huge difference between working as an employee for someone 627 00:29:09,520 --> 00:29:12,960 Speaker 1: and owning your own business. And uh, there's a lot 628 00:29:13,000 --> 00:29:14,840 Speaker 1: of routes that you can take to starting your own thing. 629 00:29:14,960 --> 00:29:16,080 Speaker 1: You know, it doesn't have to kind of be this 630 00:29:16,440 --> 00:29:19,840 Speaker 1: all or nothing approach. You can and I think most 631 00:29:19,880 --> 00:29:22,560 Speaker 1: people do start a business when they've got steady income 632 00:29:22,840 --> 00:29:25,640 Speaker 1: coming from somewhere else. You can start it off as 633 00:29:25,680 --> 00:29:27,560 Speaker 1: the side hustle, and then over time you kind of 634 00:29:27,760 --> 00:29:29,640 Speaker 1: kind of rotate that dial and start cranking up the 635 00:29:29,680 --> 00:29:31,920 Speaker 1: income on that side hustle, and pretty soon it becomes 636 00:29:31,960 --> 00:29:34,800 Speaker 1: your main gig. But not only can you increase your 637 00:29:34,800 --> 00:29:38,320 Speaker 1: income by owning your own business, but that business over 638 00:29:38,400 --> 00:29:42,440 Speaker 1: time becomes worth something if you're able to sell it again. 639 00:29:42,480 --> 00:29:44,480 Speaker 1: You're able to sell it because you own that business. 640 00:29:44,520 --> 00:29:46,640 Speaker 1: And we're talking about ownership right now. Uh. And the 641 00:29:46,680 --> 00:29:48,440 Speaker 1: other thing too, You can even start a business for 642 00:29:48,560 --> 00:29:50,840 Speaker 1: little or no money. We talked about that in episode 643 00:29:50,880 --> 00:29:54,000 Speaker 1: to forty seven with Alan Donagan. Just some different ways 644 00:29:54,040 --> 00:29:58,160 Speaker 1: to start your own business without taking on boatloads of debt. Yeah, Matt, 645 00:29:58,320 --> 00:30:01,320 Speaker 1: my wife's best friend, her dad had a cleaning business, 646 00:30:01,640 --> 00:30:04,120 Speaker 1: and he would go over and clean the houses himself. 647 00:30:04,160 --> 00:30:06,480 Speaker 1: But what he had built up was this book of business, 648 00:30:06,520 --> 00:30:08,840 Speaker 1: was all these people that used him over the years, 649 00:30:08,840 --> 00:30:10,760 Speaker 1: and so what he was able to do when he 650 00:30:10,760 --> 00:30:13,320 Speaker 1: reached retirement was to sell this business. He didn't have 651 00:30:13,320 --> 00:30:15,520 Speaker 1: to clean houses anymore. But it wasn't just the fact 652 00:30:15,720 --> 00:30:18,920 Speaker 1: that he got paid money for the houses that he cleaned, 653 00:30:18,920 --> 00:30:20,800 Speaker 1: but it was that the business he had built up 654 00:30:20,960 --> 00:30:23,719 Speaker 1: was worth something to someone else. And that is ownership, right, 655 00:30:23,800 --> 00:30:26,160 Speaker 1: That is that is a wonderful thing. And yeah, Matt, 656 00:30:26,200 --> 00:30:28,239 Speaker 1: we also have friends in the personal finance space who 657 00:30:28,280 --> 00:30:30,880 Speaker 1: started their own sites years ago in an effort to 658 00:30:30,920 --> 00:30:33,440 Speaker 1: document maybe like a debt payoff journey, and some of 659 00:30:33,480 --> 00:30:36,520 Speaker 1: them ended up writing such great content consistently that their 660 00:30:36,560 --> 00:30:39,160 Speaker 1: site started to make legitimate money, and you know, for 661 00:30:39,240 --> 00:30:41,440 Speaker 1: many of them, it turned from a side hustle into 662 00:30:41,480 --> 00:30:43,800 Speaker 1: a full time gig. But yeah, so not only is 663 00:30:43,840 --> 00:30:47,120 Speaker 1: it awesome from that standpoint, but over time their sites 664 00:30:47,280 --> 00:30:51,120 Speaker 1: increased in value and a few have had bigger companies 665 00:30:51,160 --> 00:30:53,280 Speaker 1: approached them along the way, and some of them have 666 00:30:53,360 --> 00:30:56,040 Speaker 1: been paid a pretty large chunk of change in order 667 00:30:56,080 --> 00:30:59,160 Speaker 1: to purchase that business, like six figures or seven figures. 668 00:30:59,400 --> 00:31:02,040 Speaker 1: So yeah, owning that site and building it are the 669 00:31:02,120 --> 00:31:04,840 Speaker 1: keys to that happy ending. They could have written for 670 00:31:04,880 --> 00:31:08,160 Speaker 1: another publication, but they risked their time to create their 671 00:31:08,200 --> 00:31:11,000 Speaker 1: own thing to become an owner, and it paid off 672 00:31:11,040 --> 00:31:14,200 Speaker 1: in the end. Ownership when it comes to small businesses, 673 00:31:14,520 --> 00:31:17,680 Speaker 1: can provide the most potential r o I compared to 674 00:31:17,720 --> 00:31:20,480 Speaker 1: really any other form of ownership totally. And all that 675 00:31:20,560 --> 00:31:22,600 Speaker 1: to say that, right, if you're gonna start blogging or 676 00:31:22,640 --> 00:31:24,200 Speaker 1: you're gonna start a site, that there's there's not a 677 00:31:24,280 --> 00:31:27,080 Speaker 1: guarantee that you're going to be able to have this 678 00:31:27,080 --> 00:31:30,360 Speaker 1: this massive payday, right And none of those people made 679 00:31:30,560 --> 00:31:33,320 Speaker 1: huge chunks of money because they didn't do much work 680 00:31:33,360 --> 00:31:35,320 Speaker 1: and it was pretty chill. It's like they poured a 681 00:31:35,360 --> 00:31:37,320 Speaker 1: lot into it, and they poured a lot into it 682 00:31:37,400 --> 00:31:39,600 Speaker 1: over a number of years. Right, It's took a long time. 683 00:31:40,000 --> 00:31:41,880 Speaker 1: And you know, to be an owner means that you're 684 00:31:41,880 --> 00:31:44,720 Speaker 1: going to have to sacrifice, like you you sacrifice money, 685 00:31:45,040 --> 00:31:48,280 Speaker 1: your capital, your time, and you know some of the 686 00:31:48,320 --> 00:31:51,640 Speaker 1: things that your dollars could be buying you and the 687 00:31:51,800 --> 00:31:54,560 Speaker 1: here now, and so as we're making smart money moves, 688 00:31:54,600 --> 00:31:57,400 Speaker 1: it's almost as if we're in this purgatory waiting period 689 00:31:57,480 --> 00:32:01,000 Speaker 1: right before we're able to realize it of the benefits 690 00:32:01,160 --> 00:32:04,760 Speaker 1: from the steps that we've taken now towards ownership. This 691 00:32:04,840 --> 00:32:06,560 Speaker 1: is you know, one of the reasons that we are 692 00:32:06,640 --> 00:32:09,920 Speaker 1: such fans of investing in real estate because it's almost 693 00:32:09,960 --> 00:32:12,960 Speaker 1: like this hybrid model that it does cash flow today, 694 00:32:13,680 --> 00:32:16,560 Speaker 1: but it also appreciates for tomorrow. Do you have that 695 00:32:16,640 --> 00:32:18,600 Speaker 1: dual benefit, And that's one of the reasons why we're 696 00:32:18,640 --> 00:32:21,440 Speaker 1: big fans of real estate. But obviously when it comes 697 00:32:21,440 --> 00:32:23,680 Speaker 1: to investing in the stock market, though, like if you're 698 00:32:23,720 --> 00:32:26,520 Speaker 1: investing in pumping money into a retirement account, but yeah, 699 00:32:26,600 --> 00:32:29,440 Speaker 1: I mean you're looking at decades, like multiple decades potentially 700 00:32:29,520 --> 00:32:31,720 Speaker 1: before you're likely going to be able to see that 701 00:32:31,720 --> 00:32:33,520 Speaker 1: that payout before you're going to realize any of those 702 00:32:33,560 --> 00:32:36,400 Speaker 1: benefits from the sacrifices that you're making today. But you 703 00:32:36,440 --> 00:32:39,880 Speaker 1: are becoming an owner and shifting into that mindset and 704 00:32:39,920 --> 00:32:42,280 Speaker 1: knowing that that's what you're doing. Not just that you're 705 00:32:42,320 --> 00:32:43,960 Speaker 1: setting aside of money for your future, but you are 706 00:32:44,000 --> 00:32:48,200 Speaker 1: an owner of business, of many different businesses in all 707 00:32:48,280 --> 00:32:51,040 Speaker 1: likelihood and and I think that mindset shift is important, Matt. 708 00:32:51,040 --> 00:32:53,160 Speaker 1: And I think what you said about sacrifice is key, right. 709 00:32:53,160 --> 00:32:55,880 Speaker 1: It does take sacrifice, It takes uh, it takes long 710 00:32:56,000 --> 00:32:59,240 Speaker 1: term thinking in order to become an owner. And yeah, 711 00:32:59,360 --> 00:33:01,840 Speaker 1: let's talk about risk verse reward two when you decide 712 00:33:01,840 --> 00:33:04,040 Speaker 1: to become an owner, because the length of time that 713 00:33:04,080 --> 00:33:06,400 Speaker 1: you plan to own something has a massive impact on 714 00:33:06,640 --> 00:33:08,840 Speaker 1: whether or not you're gonna be able to make money right, 715 00:33:09,400 --> 00:33:11,680 Speaker 1: the shorter timeline that you attempt. We talked about this 716 00:33:11,680 --> 00:33:13,640 Speaker 1: when it comes to investing, the higher risk that you're 717 00:33:13,640 --> 00:33:17,200 Speaker 1: gonna face. We're all about owning and building quality assets 718 00:33:17,240 --> 00:33:20,240 Speaker 1: for decades because yeah, there's just this risk in all 719 00:33:20,280 --> 00:33:22,840 Speaker 1: of the ownership categories that we mentioned. As an investor, 720 00:33:22,880 --> 00:33:25,120 Speaker 1: you can see the market dip for a period of time. 721 00:33:25,320 --> 00:33:27,280 Speaker 1: You know, if you put money in today, five years 722 00:33:27,320 --> 00:33:29,480 Speaker 1: from now, it's unlikely, but you could have less money 723 00:33:29,480 --> 00:33:31,800 Speaker 1: than you started with. And as a real estate owner, 724 00:33:31,920 --> 00:33:34,080 Speaker 1: you can see the value of that property decline or 725 00:33:34,120 --> 00:33:36,320 Speaker 1: you could endure a time where you're not making any money. 726 00:33:36,400 --> 00:33:40,520 Speaker 1: Right because vacancy, tenant problems are potential risks as an owner, 727 00:33:40,560 --> 00:33:43,640 Speaker 1: and every owner, anybody who has been an owner, they 728 00:33:43,640 --> 00:33:46,000 Speaker 1: know that right that there can be some really hard 729 00:33:46,040 --> 00:33:50,160 Speaker 1: financial and emotional times. There are risks, but they're manageable risks, 730 00:33:50,200 --> 00:33:52,880 Speaker 1: and the reward at the other end of deciding to 731 00:33:53,040 --> 00:33:57,160 Speaker 1: opt for ownership, those rewards are potentially huge. And you know, 732 00:33:57,200 --> 00:34:01,800 Speaker 1: ownership it's not all rainbows and butter flies in unicorns always. 733 00:34:01,800 --> 00:34:04,560 Speaker 1: Although three of my favorite things. When you're the owner, 734 00:34:05,360 --> 00:34:07,840 Speaker 1: you're you're gonna have more responsibility, even kind of going 735 00:34:07,880 --> 00:34:10,440 Speaker 1: back to to owning your own home, right, you often 736 00:34:10,560 --> 00:34:14,000 Speaker 1: have some hard decisions to make. Not owning a home 737 00:34:14,280 --> 00:34:16,640 Speaker 1: means that you can call your landlord for any maintenance 738 00:34:16,680 --> 00:34:18,600 Speaker 1: request to pop up. You don't have to fix the 739 00:34:18,640 --> 00:34:20,799 Speaker 1: leaky fasce at yourself. You don't have to replace the 740 00:34:20,840 --> 00:34:23,480 Speaker 1: broken water heater, and you're like, godge that bullet, and 741 00:34:23,800 --> 00:34:26,760 Speaker 1: that's one of the benefits, right, but you also don't 742 00:34:26,880 --> 00:34:29,960 Speaker 1: get to realize the wealth building upside that your landlord 743 00:34:30,080 --> 00:34:32,680 Speaker 1: is experiencing. Even when it comes to owning stocks in 744 00:34:32,840 --> 00:34:35,320 Speaker 1: an index fund, there are going to be bear markets 745 00:34:35,400 --> 00:34:38,360 Speaker 1: and you're gonna see your portfolio decline some which could 746 00:34:38,440 --> 00:34:41,719 Speaker 1: lead to some tense shoulders. It doesn't have to uh 747 00:34:41,760 --> 00:34:43,719 Speaker 1: if you know that that's your your your tendency to 748 00:34:43,800 --> 00:34:46,560 Speaker 1: get stressed out, find ways to ignore the news, find 749 00:34:46,560 --> 00:34:49,799 Speaker 1: ways to uh turn off that flow of information that's 750 00:34:49,840 --> 00:34:51,560 Speaker 1: going to cause you to stress out. But at the 751 00:34:51,560 --> 00:34:53,560 Speaker 1: same time you're gonna need to remind yourself that this 752 00:34:53,640 --> 00:34:56,239 Speaker 1: is all a part of being an owner. We feel 753 00:34:56,239 --> 00:34:58,480 Speaker 1: that the financial benefit is going to be well worth 754 00:34:58,560 --> 00:35:02,040 Speaker 1: any small amount of stress that is most likely manageable. Yeah. 755 00:35:02,480 --> 00:35:04,160 Speaker 1: One of the things you said at the beginning of 756 00:35:04,440 --> 00:35:06,520 Speaker 1: the episode, you said, if you want to stay forward, 757 00:35:06,560 --> 00:35:09,799 Speaker 1: don't own anything. And I think that's true, and I 758 00:35:09,800 --> 00:35:12,720 Speaker 1: think it is Uh. You might be able to be secure, 759 00:35:12,840 --> 00:35:15,240 Speaker 1: but you're never going to be able to build wealth 760 00:35:15,560 --> 00:35:18,279 Speaker 1: if you don't ever choose to become an owner, if 761 00:35:18,320 --> 00:35:21,840 Speaker 1: you only choose to be a frugalites and a saver. 762 00:35:22,239 --> 00:35:25,680 Speaker 1: And we're all about frugality, and we're all about saving money, 763 00:35:25,680 --> 00:35:29,239 Speaker 1: but ownership is the next step because wealth flows to 764 00:35:29,239 --> 00:35:31,719 Speaker 1: owners and at how the money. You know, we're all 765 00:35:31,760 --> 00:35:35,280 Speaker 1: about building that wealth slowly but surely over time. Spending 766 00:35:35,360 --> 00:35:37,880 Speaker 1: less is really really important to growing the gap and 767 00:35:37,920 --> 00:35:39,799 Speaker 1: being able to save more of your money. That's an 768 00:35:39,800 --> 00:35:42,440 Speaker 1: important first step. Of course, you don't get rich by 769 00:35:42,440 --> 00:35:44,680 Speaker 1: paying interest to the credit card companies every single month, 770 00:35:44,920 --> 00:35:46,839 Speaker 1: but you also don't grow wealth by keeping your money 771 00:35:46,840 --> 00:35:50,000 Speaker 1: into savings account either. So becoming an owner is the 772 00:35:50,040 --> 00:35:53,319 Speaker 1: next logical step, and it's the most important step to take, 773 00:35:53,560 --> 00:35:55,400 Speaker 1: and it's a step that none of us can afford 774 00:35:55,719 --> 00:35:58,040 Speaker 1: not to take. Yeah, and so if you're listening and 775 00:35:58,080 --> 00:36:01,920 Speaker 1: you're already investing your money, congrats, because that means you 776 00:36:02,080 --> 00:36:04,320 Speaker 1: are an owner of something. We're not sure what you 777 00:36:04,360 --> 00:36:06,799 Speaker 1: should pack yourself on the back, because, like I think, Matt, 778 00:36:06,840 --> 00:36:08,440 Speaker 1: part of what we're talking about here is not just 779 00:36:08,520 --> 00:36:11,759 Speaker 1: encouraging people to become owners, because there are some of 780 00:36:11,760 --> 00:36:13,879 Speaker 1: our listeners who haven't taken that step yet and we're saying, yeah, 781 00:36:13,920 --> 00:36:16,520 Speaker 1: it's time, but also for the folks that have started 782 00:36:16,760 --> 00:36:19,640 Speaker 1: doing some of these positive steps, thinking of yourself as 783 00:36:19,640 --> 00:36:22,359 Speaker 1: an owner is important that you are doing the right thing, 784 00:36:22,760 --> 00:36:25,360 Speaker 1: but at the same time, it's worth considering how you 785 00:36:25,400 --> 00:36:28,560 Speaker 1: can pursue other paths of ownership in your life. And 786 00:36:28,640 --> 00:36:30,799 Speaker 1: as as someone who is already on the path to 787 00:36:30,800 --> 00:36:33,440 Speaker 1: to financial independence, if you own something well, having that 788 00:36:33,480 --> 00:36:36,960 Speaker 1: ownership mindset can propel you to to to reach even 789 00:36:37,000 --> 00:36:40,359 Speaker 1: bigger financial and bigger wealth building goals because when you 790 00:36:40,360 --> 00:36:42,360 Speaker 1: can you know, see yourself as an owner and you 791 00:36:42,400 --> 00:36:44,640 Speaker 1: realize the financial benefits that it creates, it's just one 792 00:36:44,680 --> 00:36:47,080 Speaker 1: of those things that you can't unsee. It's really is 793 00:36:47,120 --> 00:36:49,600 Speaker 1: paradigm shifting. It's a game changer for the way that 794 00:36:49,680 --> 00:36:52,640 Speaker 1: you view and handle money moving forward. And it's not 795 00:36:52,800 --> 00:36:55,279 Speaker 1: we're not trying to add undue stress in your life, 796 00:36:55,360 --> 00:36:58,400 Speaker 1: right Like, if it's time to go to the grocery 797 00:36:58,440 --> 00:37:00,600 Speaker 1: store and buy some groceries, all right, that's something that 798 00:37:00,640 --> 00:37:03,279 Speaker 1: you have to do. But at the same time, realize that, 799 00:37:03,440 --> 00:37:07,520 Speaker 1: I don't know, maybe some other purchases that are more optionalous, 800 00:37:08,360 --> 00:37:11,080 Speaker 1: a little more frivolous, or there there's something that could 801 00:37:11,160 --> 00:37:14,440 Speaker 1: provide you maybe some value now or maybe it's just fun. 802 00:37:14,880 --> 00:37:17,680 Speaker 1: Realize that you're doing that at an expense to your 803 00:37:17,719 --> 00:37:20,400 Speaker 1: future self. We don't want all of your spending now 804 00:37:20,680 --> 00:37:24,719 Speaker 1: to hamstring your future self. Even though it's so difficult 805 00:37:24,719 --> 00:37:28,359 Speaker 1: for us to picture ourselves in the future, realize that 806 00:37:28,400 --> 00:37:32,440 Speaker 1: what you're doing today is going to affect tomorrow's bottom line. Yeah, 807 00:37:32,520 --> 00:37:34,640 Speaker 1: so if you're not there yet, we encourage you to, 808 00:37:35,000 --> 00:37:38,040 Speaker 1: you know, look at your finances and see have I 809 00:37:38,040 --> 00:37:40,759 Speaker 1: saved enough in order to start pursuing ownership or do 810 00:37:40,800 --> 00:37:42,359 Speaker 1: I need to start saving more so I can get 811 00:37:42,400 --> 00:37:45,839 Speaker 1: there more quickly. And if you've already started investing, then 812 00:37:46,320 --> 00:37:48,279 Speaker 1: think of yourself as an owner and doing that I 813 00:37:48,280 --> 00:37:51,080 Speaker 1: think will help you take your pursuits more seriously. It's 814 00:37:51,120 --> 00:37:53,120 Speaker 1: a game changer for how you think about where your 815 00:37:53,120 --> 00:37:55,640 Speaker 1: money is going. But that's enough talk about ownership map. 816 00:37:55,680 --> 00:37:57,200 Speaker 1: Because you know, every once in a while, people do 817 00:37:57,280 --> 00:37:58,799 Speaker 1: need to buy their groceries. They do need to buy 818 00:37:58,920 --> 00:38:01,160 Speaker 1: their delicious craft beer. Let's talk about the beer that 819 00:38:01,160 --> 00:38:04,120 Speaker 1: that we had on today's episode. This one is called 820 00:38:04,239 --> 00:38:07,840 Speaker 1: money Blend. It's by American Solera. It's an oak aged 821 00:38:07,880 --> 00:38:10,200 Speaker 1: farmhouse sale. What's your take on this beer, man, Yeah, 822 00:38:10,200 --> 00:38:13,200 Speaker 1: this is money Blend Bash number two. And you know 823 00:38:13,239 --> 00:38:15,799 Speaker 1: it says it's aged in oak tanks. But we know 824 00:38:15,840 --> 00:38:18,239 Speaker 1: what they mean. They're talking about oak footers, and so 825 00:38:18,320 --> 00:38:21,160 Speaker 1: basically they look like like everyone is seeing pictures of 826 00:38:21,160 --> 00:38:23,439 Speaker 1: wine barrels kind of stacked on their sides, or even 827 00:38:23,480 --> 00:38:25,560 Speaker 1: barrels of whiskey. Uh. You know, I don't know if 828 00:38:25,560 --> 00:38:28,080 Speaker 1: you've ever been on like the Bourbon Trail, but not yet, 829 00:38:28,120 --> 00:38:30,200 Speaker 1: sadly I haven't. Dude, we need to do a how 830 00:38:30,280 --> 00:38:32,239 Speaker 1: to money trip. Maybe take the wives up there as well. 831 00:38:32,280 --> 00:38:34,000 Speaker 1: I'd be a lot of fun. But imagine one of 832 00:38:34,000 --> 00:38:36,280 Speaker 1: those barrels not turned on its side, but like standing 833 00:38:36,320 --> 00:38:38,680 Speaker 1: on its end. But then like, I don't know, ten 834 00:38:38,760 --> 00:38:42,160 Speaker 1: times bigger, that's what it is. And yeah, this is 835 00:38:42,200 --> 00:38:44,880 Speaker 1: a farmhouse style aged and one of those giant oak 836 00:38:45,120 --> 00:38:49,880 Speaker 1: footers or tanks. And man, this was a delicious farmhouse beers. 837 00:38:49,880 --> 00:38:51,719 Speaker 1: So it had a little bit of kind of like 838 00:38:51,760 --> 00:38:54,239 Speaker 1: that farmhouse funk going on. It also had a nice 839 00:38:54,280 --> 00:38:58,120 Speaker 1: touch of acidity. Uh. But before we even started recording, 840 00:38:58,120 --> 00:39:01,319 Speaker 1: you and I both we ad made a comment and 841 00:39:01,520 --> 00:39:05,600 Speaker 1: there is undoubtedly a flavor profile of honey going on 842 00:39:05,680 --> 00:39:07,600 Speaker 1: with this beer, right, A little bit of that honey sweetness, 843 00:39:08,239 --> 00:39:10,239 Speaker 1: I agree. And it was also like I would say, 844 00:39:10,239 --> 00:39:13,360 Speaker 1: deliciously mellow, like oh yeah, and then he does that. 845 00:39:13,440 --> 00:39:15,640 Speaker 1: It almost has like this mead light quality where it 846 00:39:15,680 --> 00:39:18,839 Speaker 1: just makes you want to just relax and the beer 847 00:39:18,880 --> 00:39:21,240 Speaker 1: interacts with you a little bit. It does something similar 848 00:39:21,280 --> 00:39:24,280 Speaker 1: in just giving it kind of like a chill rustic 849 00:39:24,520 --> 00:39:27,360 Speaker 1: but also like a buttoned up vibe, like I don't know, 850 00:39:27,440 --> 00:39:32,160 Speaker 1: it's just the beer. Chill rustic, buttoned up. It's like, uh, 851 00:39:32,320 --> 00:39:35,200 Speaker 1: country fancy exactly, that's what it's. I mean, that's a 852 00:39:35,200 --> 00:39:37,800 Speaker 1: perfect way to describe this here, country fancy. So instead 853 00:39:37,800 --> 00:39:39,759 Speaker 1: of calling the farmhouse sales, it's like, oh, that's a 854 00:39:39,880 --> 00:39:43,160 Speaker 1: nice country fancy farmhouse fancy exactly. That's what I say 855 00:39:43,160 --> 00:39:45,279 Speaker 1: about this beer. So yeah, big things to James for 856 00:39:45,360 --> 00:39:48,080 Speaker 1: sending this one in our way. Seriously, the naming convention 857 00:39:48,160 --> 00:39:51,640 Speaker 1: was perfect for this beer. Batch number two. Yeah it 858 00:39:51,760 --> 00:39:54,839 Speaker 1: was delicious, So yeah, we appreciate you sending us one 859 00:39:55,080 --> 00:39:57,760 Speaker 1: of the best local beers where you live. Yes, really taste, 860 00:39:58,000 --> 00:40:00,480 Speaker 1: Thank you, James, And honestly, this is just perfect up 861 00:40:00,480 --> 00:40:03,640 Speaker 1: our alley. So great job picking one specifically for Joel 862 00:40:03,640 --> 00:40:06,560 Speaker 1: and I no doubt. All right, well that's gonna do 863 00:40:06,600 --> 00:40:09,080 Speaker 1: it for today's episode for folks at want the show 864 00:40:09,120 --> 00:40:11,960 Speaker 1: Notes and links to anything that we mentioned on today's episode. 865 00:40:12,120 --> 00:40:13,960 Speaker 1: You could find those up on our website at how 866 00:40:14,000 --> 00:40:15,719 Speaker 1: to money dot com. That's right, And if you've been 867 00:40:15,719 --> 00:40:17,239 Speaker 1: listening to the show for a while but maybe you 868 00:40:17,280 --> 00:40:20,000 Speaker 1: have not left us a review, we would be incredibly 869 00:40:20,040 --> 00:40:22,480 Speaker 1: grateful if you were to head over to Apple Podcasts 870 00:40:22,719 --> 00:40:24,919 Speaker 1: or wherever it is that you listen to your shows 871 00:40:24,920 --> 00:40:27,160 Speaker 1: and leave us a nice five star review. And so 872 00:40:27,160 --> 00:40:29,239 Speaker 1: many folks have been doing this, and specifically they've been 873 00:40:29,280 --> 00:40:31,799 Speaker 1: writing in how the show has helped them to either 874 00:40:31,840 --> 00:40:33,879 Speaker 1: find more money or save more money, or earn more 875 00:40:33,920 --> 00:40:37,120 Speaker 1: money and hopefully, after this episode, invest more of their money. 876 00:40:37,239 --> 00:40:39,200 Speaker 1: And so we would love it if you did something similar, 877 00:40:39,360 --> 00:40:41,120 Speaker 1: and that just helps folks out there to know what 878 00:40:41,160 --> 00:40:43,799 Speaker 1: they're getting into. And that way, if they're like, oh, yeah, 879 00:40:43,840 --> 00:40:45,120 Speaker 1: I don't want to do any of those things with 880 00:40:45,160 --> 00:40:48,120 Speaker 1: my money, they can I guess they can skip the show. 881 00:40:48,440 --> 00:40:49,920 Speaker 1: But we all know that there are a lot of 882 00:40:49,920 --> 00:40:52,600 Speaker 1: folks out there who need this advice. So thanks in 883 00:40:52,640 --> 00:40:55,560 Speaker 1: advance for that. Joel is at it. That's it man, alright, man, 884 00:40:55,600 --> 00:40:58,439 Speaker 1: So until next time, Best Friends Out, Best Friends Out. 885 00:41:00,520 --> 00:41:00,560 Speaker 1: M