1 00:00:00,160 --> 00:00:03,320 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt, 2 00:00:03,480 --> 00:00:25,640 Speaker 1: and today we're answering your listener questions. That's right, Joel, 3 00:00:25,760 --> 00:00:30,200 Speaker 1: my scooter riding co host. Don't tell everyone, don't out me. 4 00:00:30,280 --> 00:00:33,800 Speaker 1: We've we're gonna answer some questions today, including one about 5 00:00:33,920 --> 00:00:37,000 Speaker 1: variable versus a fixed rate mortgage. We've got a question 6 00:00:37,000 --> 00:00:39,680 Speaker 1: regarding freezing your credits, and we're gonna kick things off 7 00:00:39,680 --> 00:00:43,080 Speaker 1: to this episode talking about emergency funds. I guess I 8 00:00:43,120 --> 00:00:45,000 Speaker 1: do have to let everyone know that I did ride 9 00:00:45,000 --> 00:00:47,800 Speaker 1: a scooter for the first time, like the Bird scooters, 10 00:00:47,840 --> 00:00:50,959 Speaker 1: but Lift has their own and it was really, honestly 11 00:00:51,040 --> 00:00:53,440 Speaker 1: not for a joy ride. It was the easiest means 12 00:00:53,479 --> 00:00:55,960 Speaker 1: of transportation. It's for utility, yeah, for me to get 13 00:00:56,000 --> 00:00:58,480 Speaker 1: from one place to the other. And I gotta admit 14 00:00:58,560 --> 00:01:01,200 Speaker 1: I didn't mind the fort the feel of the wind 15 00:01:01,200 --> 00:01:03,360 Speaker 1: in my hair, so yeah, it was. It was actually 16 00:01:03,440 --> 00:01:05,440 Speaker 1: kind of nice. But I don't you won't catch me 17 00:01:05,480 --> 00:01:08,840 Speaker 1: on them often. I promised that what like last episode 18 00:01:08,920 --> 00:01:10,880 Speaker 1: or last week that we were knocking to you're making 19 00:01:10,880 --> 00:01:12,840 Speaker 1: fun of guys riding around on those things with their 20 00:01:12,880 --> 00:01:16,280 Speaker 1: suits on right in midtown. I'm such a hippocride, I am, 21 00:01:16,560 --> 00:01:18,840 Speaker 1: I'll admit it. In that moment, you're like, dang it, 22 00:01:19,080 --> 00:01:22,120 Speaker 1: now I'm gonna have to ride one exactly. Yeah, I succumbed. 23 00:01:22,440 --> 00:01:25,800 Speaker 1: The universe made it happen that it did well. Jill, 24 00:01:25,840 --> 00:01:27,720 Speaker 1: real quick, I wanted to share a quick story with 25 00:01:27,760 --> 00:01:31,080 Speaker 1: you regarding taostar Pro, which is the bug spray that 26 00:01:31,120 --> 00:01:33,400 Speaker 1: that you use. We both use it. Yeah, my favorite 27 00:01:33,440 --> 00:01:36,959 Speaker 1: pest control on the planet. It works, wonders and saves 28 00:01:37,000 --> 00:01:39,280 Speaker 1: bundles of money, save tons of money. So Kate and 29 00:01:39,360 --> 00:01:41,640 Speaker 1: I we're sitting here at this very table a few 30 00:01:41,640 --> 00:01:44,200 Speaker 1: weeks ago and we noticed like a little beetle, you know, 31 00:01:44,240 --> 00:01:46,040 Speaker 1: bugs get inside the house. You don't think much of it. 32 00:01:46,360 --> 00:01:48,360 Speaker 1: A couple of days later, we noticed another one in 33 00:01:48,360 --> 00:01:50,760 Speaker 1: the exact same kind because I had killed the other one, 34 00:01:50,800 --> 00:01:52,960 Speaker 1: so I knew it was a different one, and I thought, 35 00:01:53,040 --> 00:01:55,160 Speaker 1: that's weird, Like, where are these guys coming from? We 36 00:01:55,360 --> 00:01:59,400 Speaker 1: found out and discovered that there were wood boring beetles 37 00:01:59,800 --> 00:02:01,920 Speaker 1: in our arm war right here that we keep our liquoring. 38 00:02:02,240 --> 00:02:04,880 Speaker 1: So they're like termites that fly well, no, I guess 39 00:02:04,960 --> 00:02:07,080 Speaker 1: termites fly as well, but their beatles where they gun 40 00:02:07,120 --> 00:02:08,480 Speaker 1: them for the Scotch. Is that what they were going 41 00:02:08,520 --> 00:02:12,080 Speaker 1: after if they were smart and it's best for him. Well, 42 00:02:12,120 --> 00:02:15,959 Speaker 1: it turns out I researched it isn't searching online. And yeah, 43 00:02:16,040 --> 00:02:18,000 Speaker 1: these beatles are a problem. And I noticed that there's 44 00:02:18,000 --> 00:02:19,959 Speaker 1: holes in the thing. I thought they were kind of 45 00:02:20,000 --> 00:02:21,520 Speaker 1: there from way back when we purchased this thing. We 46 00:02:21,520 --> 00:02:23,440 Speaker 1: brought us from somebody. But yeah, if you if you 47 00:02:23,440 --> 00:02:24,720 Speaker 1: look at the back of this thing, it looks like 48 00:02:24,800 --> 00:02:26,400 Speaker 1: the back of the uh, I don't know what you 49 00:02:26,400 --> 00:02:27,919 Speaker 1: call it. Arm I called it an armoire, but it's 50 00:02:27,919 --> 00:02:30,000 Speaker 1: like this, you know, glass kind of cabinet thing, just 51 00:02:30,040 --> 00:02:32,840 Speaker 1: play cabinet. Yeah, kind of fancy looking. It's an antique. 52 00:02:32,840 --> 00:02:34,440 Speaker 1: It's old, but the back of it looks like it 53 00:02:34,520 --> 00:02:38,720 Speaker 1: got shot up with like a little miniature shotgun. That's everywhere. Dude. Evidently, 54 00:02:38,840 --> 00:02:40,960 Speaker 1: if you let them be, they'll eat other stuff that 55 00:02:40,960 --> 00:02:42,560 Speaker 1: you don't want them to eat. It's a big problem. 56 00:02:42,639 --> 00:02:44,760 Speaker 1: And they were in there when we purchased the thing, 57 00:02:44,880 --> 00:02:47,040 Speaker 1: so they they're kind of like in this sort of 58 00:02:47,400 --> 00:02:49,280 Speaker 1: state where they stay inside of the wood for two 59 00:02:49,400 --> 00:02:52,320 Speaker 1: or three years and then they pupates that's the official 60 00:02:52,440 --> 00:02:54,680 Speaker 1: term for when they kind of turned into adults. You 61 00:02:54,840 --> 00:02:58,120 Speaker 1: probably understand why. I remember that from some class, the 62 00:02:58,160 --> 00:03:01,520 Speaker 1: big p the big conversation. Well that's what was happening. 63 00:03:01,960 --> 00:03:03,840 Speaker 1: And I did some quick searching in terms that you 64 00:03:03,880 --> 00:03:06,440 Speaker 1: could use taw star to kill them. So let me 65 00:03:06,480 --> 00:03:09,000 Speaker 1: tell you what we did, which was removed all the bottles, 66 00:03:09,320 --> 00:03:11,519 Speaker 1: laid the piece of furniture on its side, I got 67 00:03:11,520 --> 00:03:14,080 Speaker 1: the tall star Pro made the mixture, and instead of 68 00:03:14,120 --> 00:03:16,639 Speaker 1: spraying it, I got a paintbrush and then just went 69 00:03:16,680 --> 00:03:19,000 Speaker 1: over the entire thing real lightly so it would absorb 70 00:03:19,080 --> 00:03:21,679 Speaker 1: into the wood and stood that thing back up once 71 00:03:21,680 --> 00:03:23,600 Speaker 1: the work and I checked on it a couple of 72 00:03:23,639 --> 00:03:27,079 Speaker 1: hours later. Dude, those beetles were dropping like flies, like 73 00:03:27,120 --> 00:03:29,280 Speaker 1: they're they're crawling out of the wood, like out of 74 00:03:29,280 --> 00:03:32,639 Speaker 1: the cabinet. And yeah, literally just falling to the floor, 75 00:03:32,639 --> 00:03:35,080 Speaker 1: just kind of like moving a little bit, but completely 76 00:03:35,160 --> 00:03:37,480 Speaker 1: knocked them out. And I have never been so happy 77 00:03:37,680 --> 00:03:40,320 Speaker 1: about doing my own pest control. So yeah, right, so 78 00:03:40,360 --> 00:03:42,840 Speaker 1: they were doing like the death twitch, And yes, exactly, 79 00:03:42,880 --> 00:03:46,280 Speaker 1: that's awesome. It is amazing that how much you can 80 00:03:46,320 --> 00:03:49,440 Speaker 1: actually get done with that pest control. You can it 81 00:03:49,560 --> 00:03:53,040 Speaker 1: keeps termites away. It's just great for your you know, 82 00:03:53,280 --> 00:03:55,960 Speaker 1: every three month pest control spraying around the house. Now, 83 00:03:55,960 --> 00:03:58,160 Speaker 1: you're big on it for aunt control, right, and control 84 00:03:58,240 --> 00:03:59,920 Speaker 1: for I mean really all sorts of parable in this. 85 00:04:00,320 --> 00:04:03,080 Speaker 1: It's great for cockroaches. I feel like I'm a salesperson 86 00:04:03,120 --> 00:04:05,840 Speaker 1: for pest control right now. But seriously, I've been doing 87 00:04:05,960 --> 00:04:08,640 Speaker 1: this pest control for years and years and years, and 88 00:04:08,720 --> 00:04:12,360 Speaker 1: it saved me tons of money, just because it is 89 00:04:12,440 --> 00:04:14,960 Speaker 1: kind of expensive to have someone come out every three 90 00:04:15,040 --> 00:04:16,680 Speaker 1: months to spread your house. And if you can save 91 00:04:17,000 --> 00:04:19,599 Speaker 1: two or fifty three hundred bucks a year just by 92 00:04:19,720 --> 00:04:21,680 Speaker 1: doing your own pest control, well well why not. And 93 00:04:21,680 --> 00:04:24,240 Speaker 1: the fact that it was counted that stuff last forever too. Yeah, 94 00:04:24,279 --> 00:04:26,960 Speaker 1: And the fact that it works on some beatles are 95 00:04:27,000 --> 00:04:29,080 Speaker 1: born into your wood too. Well. Here's the thing, this 96 00:04:29,120 --> 00:04:30,919 Speaker 1: is why we realized that we had to do that, 97 00:04:31,000 --> 00:04:33,000 Speaker 1: was because some of the suggestions where, oh, well, if 98 00:04:33,000 --> 00:04:34,560 Speaker 1: you have some furniture, you can take it into a 99 00:04:34,600 --> 00:04:37,120 Speaker 1: walk and freezer. It's like, oh, yeah, cool, I've got 100 00:04:37,200 --> 00:04:38,680 Speaker 1: one of those that I can play a piece of 101 00:04:38,680 --> 00:04:40,600 Speaker 1: furniture in for a week. You know, it's where it's 102 00:04:40,600 --> 00:04:42,760 Speaker 1: cold enough that it kills them. But yeah, man, so 103 00:04:42,760 --> 00:04:44,960 Speaker 1: glad that you turned me onto that years ago, you know, 104 00:04:45,000 --> 00:04:47,039 Speaker 1: when you first shared that with me. But but yeah, 105 00:04:47,080 --> 00:04:49,159 Speaker 1: I just wanted to share that little sort of victory story. 106 00:04:49,520 --> 00:04:51,280 Speaker 1: And if folks want to read that article that you wrote, 107 00:04:51,320 --> 00:04:53,560 Speaker 1: they can just go to the website and search d 108 00:04:53,600 --> 00:04:56,320 Speaker 1: I Y pest control or ants anything like that, or 109 00:04:56,360 --> 00:04:58,320 Speaker 1: just click the click the articles link actually and that 110 00:04:58,360 --> 00:05:01,520 Speaker 1: will just pop right up. Yeah. Well that's awesome, man, Okay. 111 00:05:01,560 --> 00:05:03,880 Speaker 1: And another thing it's awesome is the beer were drinking 112 00:05:03,920 --> 00:05:05,960 Speaker 1: on the show today. The beer we're having is Killer 113 00:05:06,000 --> 00:05:09,640 Speaker 1: Grove Blood Orange Wheat Ale by Talisman Brewing Company. Yeah. 114 00:05:09,680 --> 00:05:11,599 Speaker 1: This is a beer that was donated to the show 115 00:05:11,640 --> 00:05:14,400 Speaker 1: by Andy in Utah. He uh yeah, looked us up 116 00:05:14,400 --> 00:05:17,560 Speaker 1: with some of his local Utah beers. And like a 117 00:05:17,560 --> 00:05:20,080 Speaker 1: lot of Utah beers, this one is pretty low in 118 00:05:20,200 --> 00:05:23,040 Speaker 1: a b v FO. Yeah, they have some stringent caps 119 00:05:23,080 --> 00:05:26,640 Speaker 1: on alcohol percentage, right, But I'm looking forward to drinking 120 00:05:26,680 --> 00:05:28,240 Speaker 1: this and then talking more about it at the end 121 00:05:28,279 --> 00:05:30,560 Speaker 1: of the show and with it heating up. This is 122 00:05:30,600 --> 00:05:32,640 Speaker 1: the kind of beer that I look forward to these days. Man, 123 00:05:32,680 --> 00:05:35,760 Speaker 1: I'm thirsty heating up. We're in like midsummer form already 124 00:05:35,760 --> 00:05:39,120 Speaker 1: here to and yeah, it's awful cool. Well, let's get 125 00:05:39,120 --> 00:05:41,880 Speaker 1: to the subject at hand, Matt. Today we're answering a 126 00:05:41,960 --> 00:05:44,360 Speaker 1: listener questions on the show, and for anyone out there 127 00:05:44,360 --> 00:05:47,039 Speaker 1: who wants to pose their question to Matt and I, 128 00:05:47,160 --> 00:05:49,200 Speaker 1: you can go to our website how to money dot 129 00:05:49,200 --> 00:05:53,159 Speaker 1: com slash ask and there's easy directions there that lets 130 00:05:53,160 --> 00:05:56,360 Speaker 1: you know exactly how to leave your recorded question for 131 00:05:56,480 --> 00:05:59,479 Speaker 1: us to hopefully play on an upcoming show. And Matt, 132 00:05:59,520 --> 00:06:01,680 Speaker 1: these are my ever chose to do. I'm really excited 133 00:06:01,720 --> 00:06:04,680 Speaker 1: to tackle a slew of listener questions with you today. Yeah, 134 00:06:04,680 --> 00:06:06,640 Speaker 1: I mean too, man. Although I thought you said that 135 00:06:06,680 --> 00:06:08,320 Speaker 1: the interviews are your favorite new show that we do, 136 00:06:08,640 --> 00:06:10,360 Speaker 1: You're right, I like them all. Those are a lot 137 00:06:10,360 --> 00:06:12,640 Speaker 1: of fun, and I like scooters like who who am 138 00:06:12,680 --> 00:06:17,520 Speaker 1: I am? I God? Learning so much about myself right now. 139 00:06:17,760 --> 00:06:20,200 Speaker 1: By the way, I wasn't saying that you're at all God, 140 00:06:20,560 --> 00:06:23,400 Speaker 1: but litle Zoolander reference there for you. Everybody should know that. 141 00:06:23,440 --> 00:06:25,360 Speaker 1: Let's they should they should? All right, So all right, 142 00:06:25,400 --> 00:06:28,480 Speaker 1: let's get to the first question. Hey guys, Aaron here 143 00:06:28,480 --> 00:06:30,720 Speaker 1: with the question that's more tailored to younger fans of 144 00:06:30,760 --> 00:06:33,799 Speaker 1: the show. In my early twenties and recently started working 145 00:06:33,839 --> 00:06:36,680 Speaker 1: a full time job out of undergrad, lucky enough to 146 00:06:36,680 --> 00:06:39,440 Speaker 1: be financially stable and working on my long term investment plan, 147 00:06:39,839 --> 00:06:42,320 Speaker 1: so I'm curious to hear your thoughts on what inappropriate 148 00:06:42,360 --> 00:06:45,800 Speaker 1: emergency fund is. My initial plan is to keep about 149 00:06:45,839 --> 00:06:48,160 Speaker 1: ten tho dollars and a high interest savings account that 150 00:06:48,200 --> 00:06:51,039 Speaker 1: would serve as my emergency fund. Now that I'm learning 151 00:06:51,040 --> 00:06:54,120 Speaker 1: more about gaining passive income building wealth through investments and 152 00:06:54,160 --> 00:06:56,400 Speaker 1: index funds, I want to make sure that I'm keeping 153 00:06:56,400 --> 00:06:59,040 Speaker 1: a safe reserve in the event that i need money quickly. 154 00:06:59,680 --> 00:07:02,120 Speaker 1: The bad saying act of building a financial safety net 155 00:07:02,200 --> 00:07:04,200 Speaker 1: while still making my money work for me is one 156 00:07:04,240 --> 00:07:06,880 Speaker 1: that I'm struggling to figure out. Any thoughts on the 157 00:07:06,920 --> 00:07:09,840 Speaker 1: subject would help. Thanks for opening my eyes to the 158 00:07:09,880 --> 00:07:14,240 Speaker 1: power of simple decisions that make significant impacts. Aaron, that 159 00:07:14,400 --> 00:07:17,120 Speaker 1: is a great question. And at first we just want 160 00:07:17,120 --> 00:07:20,520 Speaker 1: to say congrats man on your job and that you're 161 00:07:20,800 --> 00:07:23,840 Speaker 1: you're rocking it in the workforce. Now that's awesome, and 162 00:07:23,920 --> 00:07:27,080 Speaker 1: just man, big props to you for considering how much 163 00:07:27,120 --> 00:07:30,160 Speaker 1: you should be having in an emergency fund. And I 164 00:07:30,200 --> 00:07:32,720 Speaker 1: want to say, too, so glad that he said a 165 00:07:32,840 --> 00:07:35,280 Speaker 1: high interest saving his account, Matt, because there are a 166 00:07:35,320 --> 00:07:37,880 Speaker 1: lot of people out there who don't prioritize that, and 167 00:07:37,880 --> 00:07:40,240 Speaker 1: they've got their money, like we've mentioned before, sitting with 168 00:07:40,360 --> 00:07:43,040 Speaker 1: one of the big banks paying almost nothing and so 169 00:07:43,200 --> 00:07:46,200 Speaker 1: at least and in his emergency fund, Aaron is prioritizing 170 00:07:46,520 --> 00:07:49,480 Speaker 1: making some money on his money, which is huge. Yeah, Joel, 171 00:07:49,480 --> 00:07:51,640 Speaker 1: what did he say? He said, like simple decisions and 172 00:07:51,760 --> 00:07:53,800 Speaker 1: massive impacts or something like that. That should be like 173 00:07:53,840 --> 00:07:55,880 Speaker 1: the new slogan to our show, what do you think 174 00:07:56,040 --> 00:07:58,160 Speaker 1: I'm in? I like you, let's switch it up. So Aaron, 175 00:07:58,320 --> 00:07:59,800 Speaker 1: let's go ahead and answer your question. Though, you know, 176 00:08:00,000 --> 00:08:01,720 Speaker 1: you're trying to figure out if it makes sense to 177 00:08:01,760 --> 00:08:03,920 Speaker 1: have more or less money in your emergency fund where 178 00:08:03,920 --> 00:08:05,920 Speaker 1: it's not quite working for you as much as if 179 00:08:05,960 --> 00:08:08,360 Speaker 1: it was invested right, And it just depends on your 180 00:08:08,400 --> 00:08:12,280 Speaker 1: situation what you are comfortable with personally. There's a lot 181 00:08:12,280 --> 00:08:14,160 Speaker 1: of advice out there that says to have six months 182 00:08:14,240 --> 00:08:16,920 Speaker 1: or even you know, a year, even twelve months of 183 00:08:17,120 --> 00:08:21,800 Speaker 1: expenses set aside, and oftentimes that's just overblown and for 184 00:08:21,840 --> 00:08:24,160 Speaker 1: most people that's under lostic. Yeah, for a lot of folks. 185 00:08:24,600 --> 00:08:26,360 Speaker 1: So here's some things we want you to consider as 186 00:08:26,400 --> 00:08:28,239 Speaker 1: you're you know, trying to figure out how much money 187 00:08:28,240 --> 00:08:31,360 Speaker 1: to keep in your emergency fund. First of all, consider 188 00:08:31,560 --> 00:08:34,640 Speaker 1: your job. No job is guaranteed, but some positions are 189 00:08:35,080 --> 00:08:39,280 Speaker 1: maybe historically more stable, Like think of a fortunate company 190 00:08:39,400 --> 00:08:41,959 Speaker 1: versus you know, your own business, if you're an entrepreneur 191 00:08:42,040 --> 00:08:44,960 Speaker 1: or something like that. Being self employed myself, there are 192 00:08:45,040 --> 00:08:48,079 Speaker 1: some months where I don't get paid and having an 193 00:08:48,080 --> 00:08:51,520 Speaker 1: emergency fund, a larger one to kind of buffer between 194 00:08:51,559 --> 00:08:54,439 Speaker 1: the high months and the low months is necessary. It's 195 00:08:54,480 --> 00:08:56,920 Speaker 1: just part of survival. It's just part of my daily life. 196 00:08:56,920 --> 00:08:59,400 Speaker 1: It's not an emergency, but it's sort of this fund 197 00:08:59,400 --> 00:09:01,760 Speaker 1: that we kind of that's a slush fund. So yeah, 198 00:09:01,800 --> 00:09:05,000 Speaker 1: the first thing is to consider the stability of your job. Yeah, 199 00:09:05,000 --> 00:09:07,840 Speaker 1: I think it's also important to think about what emergencies 200 00:09:08,000 --> 00:09:11,160 Speaker 1: are likely or even have the potential of happening in 201 00:09:11,160 --> 00:09:14,080 Speaker 1: your life. And so if you own a home, for instance, 202 00:09:14,280 --> 00:09:18,800 Speaker 1: the likelihood of having a bigger emergency that occurs that 203 00:09:18,920 --> 00:09:22,200 Speaker 1: needs your money, well you probably need a bigger emergency 204 00:09:22,240 --> 00:09:24,920 Speaker 1: fund because you might have an h VAC unit go out, 205 00:09:25,240 --> 00:09:27,720 Speaker 1: you might need a new roof, and if either one 206 00:09:27,720 --> 00:09:29,960 Speaker 1: of those parts of your house is older, well then 207 00:09:30,000 --> 00:09:32,079 Speaker 1: you're gonna want to make sure you have more of 208 00:09:32,120 --> 00:09:35,120 Speaker 1: an emergency fund because those are really expensive things for 209 00:09:35,160 --> 00:09:38,199 Speaker 1: a place, and when it comes to other major potential 210 00:09:38,200 --> 00:09:41,880 Speaker 1: emergencies in your life, well, chances are you have insurance 211 00:09:41,880 --> 00:09:43,760 Speaker 1: for a lot of those things. The biggest thing you're 212 00:09:43,760 --> 00:09:45,880 Speaker 1: gonna want to consider when it comes to to that 213 00:09:46,080 --> 00:09:48,160 Speaker 1: is what deductibles you have. And Matt and I we 214 00:09:48,200 --> 00:09:51,920 Speaker 1: would recommend having higher deductibles and then saving that money 215 00:09:51,920 --> 00:09:54,640 Speaker 1: every month on your insurance costs, and then actually, you know, 216 00:09:54,720 --> 00:09:58,199 Speaker 1: having that higher emergency fund to be able to self 217 00:09:58,280 --> 00:10:00,800 Speaker 1: ensure if something does go wrong, let's say, hail damage 218 00:10:00,840 --> 00:10:03,440 Speaker 1: to a roof, or you do get into a car accident. 219 00:10:03,760 --> 00:10:06,840 Speaker 1: Uh well, having insurance that really helps and and insures 220 00:10:06,840 --> 00:10:08,840 Speaker 1: that you don't have to have some sort of massive 221 00:10:08,920 --> 00:10:11,160 Speaker 1: emergency fund. But those are just some of the things 222 00:10:11,200 --> 00:10:13,560 Speaker 1: that you're going to want to take into consideration when 223 00:10:13,559 --> 00:10:16,160 Speaker 1: you're deciding, you know, how much of an emergency fund 224 00:10:16,320 --> 00:10:19,080 Speaker 1: you need to have set aside. Something else uh aeron 225 00:10:19,160 --> 00:10:21,720 Speaker 1: that you can consider is you might actually want to 226 00:10:21,720 --> 00:10:25,640 Speaker 1: shrink your emergency fund down, consider lessening that by maybe 227 00:10:25,640 --> 00:10:28,040 Speaker 1: a thousand or two thousand a year. If you're able 228 00:10:28,080 --> 00:10:30,600 Speaker 1: to max out a roth ira A. We did an 229 00:10:30,640 --> 00:10:34,200 Speaker 1: episode recently on roth ira As episode eighty three where 230 00:10:34,200 --> 00:10:37,080 Speaker 1: we talked about how you're roth ira A can function 231 00:10:37,200 --> 00:10:41,119 Speaker 1: as a glorified emergency fund in particular as you accumulate 232 00:10:41,160 --> 00:10:43,319 Speaker 1: money in it over time. You know, you contribute to 233 00:10:43,360 --> 00:10:45,920 Speaker 1: that every year hit that max. This year it's six 234 00:10:45,920 --> 00:10:48,439 Speaker 1: thousand dollars. That's a lot of money that's sitting there 235 00:10:48,480 --> 00:10:51,480 Speaker 1: growing in the market that you can potentially divert towards 236 00:10:51,480 --> 00:10:54,000 Speaker 1: an emergency if you need it. Yeah. I love that 237 00:10:54,080 --> 00:10:57,280 Speaker 1: idea of every year that you're able to max out 238 00:10:57,280 --> 00:10:59,520 Speaker 1: of WRATH or let's say, let's say every five thousand 239 00:10:59,520 --> 00:11:01,640 Speaker 1: dollars you're able to put into a WRATH, you can 240 00:11:01,679 --> 00:11:04,720 Speaker 1: count on a thousand dollars of that as an emergency fund. 241 00:11:04,760 --> 00:11:07,320 Speaker 1: I feel like that puts you in a flexible enough 242 00:11:07,360 --> 00:11:10,000 Speaker 1: spot where you can begin to allocate a little bit 243 00:11:10,000 --> 00:11:13,120 Speaker 1: more of your funds towards investing, but still at the 244 00:11:13,160 --> 00:11:16,600 Speaker 1: same time have an emergency fund that you don't mind 245 00:11:16,640 --> 00:11:19,880 Speaker 1: tapping if need be. And that just essentially allows you 246 00:11:19,920 --> 00:11:22,680 Speaker 1: to have less of your money in a bank account 247 00:11:22,760 --> 00:11:25,080 Speaker 1: that's earning somewhere in the neighborhood of two percent and 248 00:11:25,120 --> 00:11:27,680 Speaker 1: put a little bit more of your money into into 249 00:11:27,760 --> 00:11:30,840 Speaker 1: investments for the long term, while still maintaining a little 250 00:11:30,840 --> 00:11:33,240 Speaker 1: bit of that flexibility. That's right. And Aaron, you know 251 00:11:33,240 --> 00:11:35,080 Speaker 1: the lastly, you want to make sure that you are 252 00:11:35,200 --> 00:11:37,760 Speaker 1: tracking your expenses because the fact is, if you do 253 00:11:37,800 --> 00:11:39,800 Speaker 1: not know what you're spending every single month, well how 254 00:11:39,800 --> 00:11:41,480 Speaker 1: do you know how to set aside two to three 255 00:11:41,480 --> 00:11:44,400 Speaker 1: months worth of expenses? Right? So make sure that you 256 00:11:44,400 --> 00:11:47,040 Speaker 1: are tracking your expenses. That way you can accurately predict 257 00:11:47,320 --> 00:11:49,200 Speaker 1: how much money you have set aside and how long 258 00:11:49,280 --> 00:11:51,680 Speaker 1: that would get you were you to say, you know, 259 00:11:51,720 --> 00:11:53,720 Speaker 1: have an emergency where you to get laid off, whatever 260 00:11:53,760 --> 00:11:55,960 Speaker 1: that emergency might be. And Aaron, you know it for 261 00:11:56,000 --> 00:11:58,160 Speaker 1: you it sounds like again being kind of fresh out 262 00:11:58,160 --> 00:12:01,120 Speaker 1: of school getting your first job. You may not have 263 00:12:01,200 --> 00:12:04,160 Speaker 1: a lot of responsibilities. Chances are you don't have six 264 00:12:04,240 --> 00:12:08,000 Speaker 1: kids yet. Not quite give him six years right, uh, 265 00:12:08,040 --> 00:12:09,760 Speaker 1: And so in his case, it might make sense to 266 00:12:09,840 --> 00:12:11,680 Speaker 1: kind of back that down to two to three months 267 00:12:11,720 --> 00:12:14,040 Speaker 1: worth of living expenses because, yeah, he may not have 268 00:12:14,080 --> 00:12:16,040 Speaker 1: that roof, he may not have that h fact, Joel, 269 00:12:16,120 --> 00:12:18,800 Speaker 1: like you mentioned, for him, it might just be some 270 00:12:18,840 --> 00:12:22,520 Speaker 1: car maintenance rents, the cost to get groceries every month. 271 00:12:22,760 --> 00:12:25,280 Speaker 1: There aren't a ton of expenses. Man. I think back 272 00:12:25,280 --> 00:12:27,559 Speaker 1: to those kind of post college days, the first job, 273 00:12:28,040 --> 00:12:31,959 Speaker 1: and uh yeah, living really really cheap. Back then, it 274 00:12:32,240 --> 00:12:34,839 Speaker 1: didn't take much. Yeah, things were a little bit simpler, right. 275 00:12:35,240 --> 00:12:37,680 Speaker 1: So yeah, but as you do kind of accrue more 276 00:12:37,720 --> 00:12:40,680 Speaker 1: and more and your life changes, in your life stage changes, 277 00:12:40,720 --> 00:12:43,240 Speaker 1: and your obligations change, that's when you need to kind 278 00:12:43,240 --> 00:12:46,080 Speaker 1: of consider ramping up your emergency fund. But hopefully this 279 00:12:46,160 --> 00:12:48,000 Speaker 1: gives you kind of a start something gonna think through. 280 00:12:48,440 --> 00:12:51,280 Speaker 1: I think in all likelihood you can probably start to 281 00:12:51,320 --> 00:12:53,559 Speaker 1: invest a little bit more and and ten grand it 282 00:12:53,679 --> 00:12:56,160 Speaker 1: might be a touch too much, depending on your specific 283 00:12:56,200 --> 00:12:59,160 Speaker 1: situation to have on hand in an emergency fund. All right, 284 00:12:59,200 --> 00:13:00,880 Speaker 1: So after the break, we're going to answer a question 285 00:13:00,880 --> 00:13:05,319 Speaker 1: regarding credit freeze as well as convertible term life insurance. 286 00:13:05,600 --> 00:13:17,040 Speaker 1: Stick around. It's hard, Matt, well back, I wish this 287 00:13:17,080 --> 00:13:19,920 Speaker 1: word question about Mr Freeze, you know, the Arnold Schwarzenegger 288 00:13:20,200 --> 00:13:22,480 Speaker 1: bad Guy and Batman. But for now, let's just stick 289 00:13:22,520 --> 00:13:24,840 Speaker 1: to a question on credit Freeze. Hey, Matt and Jewel. 290 00:13:25,080 --> 00:13:27,280 Speaker 1: My name's Anna and I recently went through the process 291 00:13:27,320 --> 00:13:30,000 Speaker 1: of reading my credit score. I completed steps for two 292 00:13:30,000 --> 00:13:31,520 Speaker 1: of the credit bureaus, but when I went to the 293 00:13:31,520 --> 00:13:34,160 Speaker 1: third one and answered a series of questions about phone numbers, 294 00:13:34,160 --> 00:13:37,240 Speaker 1: I've had, names of people I've lived with, etcetera, it 295 00:13:37,280 --> 00:13:39,600 Speaker 1: seemed like they didn't have the right information. I had 296 00:13:39,600 --> 00:13:41,880 Speaker 1: to answer other to pretty much every question and they asked. 297 00:13:42,400 --> 00:13:44,199 Speaker 1: The end result was that they couldn't find me in 298 00:13:44,200 --> 00:13:46,880 Speaker 1: their system. They gave me a next step, which was 299 00:13:46,920 --> 00:13:48,840 Speaker 1: to send them a copy of my driver's license and 300 00:13:48,920 --> 00:13:52,120 Speaker 1: birth certificate, plus a sheet containing my full name, address, 301 00:13:52,200 --> 00:13:55,079 Speaker 1: phone number, proof of address, and social Security number through 302 00:13:55,160 --> 00:13:58,080 Speaker 1: the physical mail to an address in Texas. I haven't 303 00:13:58,120 --> 00:14:00,439 Speaker 1: done that yet, and my question is if they can't 304 00:14:00,440 --> 00:14:02,640 Speaker 1: figure out who I am now, do they even have 305 00:14:02,720 --> 00:14:05,559 Speaker 1: information about me that needs freezing? Or has my not 306 00:14:05,760 --> 00:14:08,079 Speaker 1: even stolen by someone who lived with a roommate named 307 00:14:08,120 --> 00:14:11,520 Speaker 1: Sergey McHale or Pablo? Or is this just another hoop 308 00:14:11,559 --> 00:14:13,840 Speaker 1: to jump through created by the credit bureaus to determine 309 00:14:13,920 --> 00:14:17,719 Speaker 1: from freezing my information? Thanks, and I'm loving the show. Well, 310 00:14:17,720 --> 00:14:20,120 Speaker 1: first of all, Anna, are you sure you haven't been 311 00:14:20,120 --> 00:14:22,440 Speaker 1: living with Sergey or Pablo, Like maybe you've got this 312 00:14:22,720 --> 00:14:25,840 Speaker 1: kind of alternate life going on you just totally forget 313 00:14:25,880 --> 00:14:28,040 Speaker 1: about those years there were such a good friends to you, 314 00:14:28,080 --> 00:14:30,440 Speaker 1: like fight club No, and it's awesome. I think it's 315 00:14:30,480 --> 00:14:32,720 Speaker 1: great that you are taking the steps necessary to get 316 00:14:32,720 --> 00:14:35,360 Speaker 1: your credit file frozen. And we have to admit the 317 00:14:35,400 --> 00:14:37,760 Speaker 1: dealing with the credit bureaus is a big pain. And 318 00:14:37,800 --> 00:14:39,960 Speaker 1: I'm sorry you're dealing with this because there's just a 319 00:14:40,040 --> 00:14:42,720 Speaker 1: laundry list of issues that seem to crop up when 320 00:14:42,760 --> 00:14:45,320 Speaker 1: we start talking about credit bureaus. Think about the you know, 321 00:14:45,360 --> 00:14:48,920 Speaker 1: Equifax breach of a year and a half ago and 322 00:14:48,960 --> 00:14:51,200 Speaker 1: the problems that that has caused for people that could 323 00:14:51,200 --> 00:14:54,360 Speaker 1: be part of the problem actually that you're experiencing here. Uh, 324 00:14:54,400 --> 00:14:56,840 Speaker 1: And it turns out that one in four folks actually 325 00:14:56,840 --> 00:15:01,000 Speaker 1: have incorrect information on their credit report. So it sounds 326 00:15:01,040 --> 00:15:04,360 Speaker 1: like and that's probably what's going on with you. And 327 00:15:04,760 --> 00:15:07,760 Speaker 1: it's kind of frustrating that we as individuals have to 328 00:15:07,800 --> 00:15:10,480 Speaker 1: deal with this based on these like nameless, faceless companies 329 00:15:10,600 --> 00:15:12,560 Speaker 1: that we didn't even choose to do business with. And 330 00:15:12,600 --> 00:15:14,600 Speaker 1: I think we have to say that from the outstart 331 00:15:14,800 --> 00:15:17,480 Speaker 1: that this is not the way it should be. And 332 00:15:17,560 --> 00:15:19,560 Speaker 1: it's a bummer that we have to bear the brunt 333 00:15:19,800 --> 00:15:23,120 Speaker 1: of mistakes by credit bureaus like this. So, yeah, I 334 00:15:23,160 --> 00:15:25,880 Speaker 1: think that's important to mention at the at the outset schedule, 335 00:15:26,040 --> 00:15:28,320 Speaker 1: that's good to mention. The fact is it could be 336 00:15:28,400 --> 00:15:33,080 Speaker 1: a sort of simple mistake by a big, unorganized company 337 00:15:33,440 --> 00:15:35,800 Speaker 1: that's doing a poor job. Also, there could be a 338 00:15:35,880 --> 00:15:38,680 Speaker 1: chance that your identity may have actually been compromised. You know, 339 00:15:38,800 --> 00:15:41,520 Speaker 1: you could have actual I D theft. So on that note, 340 00:15:41,560 --> 00:15:43,240 Speaker 1: now is a good time to go ahead and check 341 00:15:43,280 --> 00:15:46,600 Speaker 1: your credit report at Annual credit report dot com. That 342 00:15:46,680 --> 00:15:48,000 Speaker 1: is the only website that you want to go to 343 00:15:48,040 --> 00:15:50,440 Speaker 1: where you can get your credit report for free. They're 344 00:15:50,480 --> 00:15:52,280 Speaker 1: not going to ask you to pay for it or 345 00:15:52,280 --> 00:15:54,600 Speaker 1: anything like that. You can get a free credit report 346 00:15:54,600 --> 00:15:57,640 Speaker 1: from each of the three once a year, so basically 347 00:15:57,640 --> 00:16:00,000 Speaker 1: every four months you can check in on your credit 348 00:16:00,000 --> 00:16:03,440 Speaker 1: report and get a full report as to what's going on. 349 00:16:03,960 --> 00:16:05,680 Speaker 1: And so Joel, you know, have talked to her about 350 00:16:05,720 --> 00:16:08,120 Speaker 1: if she does actually find a mistake. Yeah, So if 351 00:16:08,120 --> 00:16:10,480 Speaker 1: there is a mistake on your one of your credit 352 00:16:10,520 --> 00:16:13,120 Speaker 1: reports based on what you see at Annual Credit report 353 00:16:13,200 --> 00:16:15,920 Speaker 1: dot com, well the next step is to dispute any 354 00:16:15,960 --> 00:16:19,040 Speaker 1: of that incorrect information with the credit bureaus. And Matt 355 00:16:19,080 --> 00:16:20,720 Speaker 1: didn't Kate at some point have to do that because 356 00:16:20,720 --> 00:16:23,200 Speaker 1: there was some incorrect information on hers Yeah, well, you know, 357 00:16:23,200 --> 00:16:26,080 Speaker 1: when Kate and I were applying for mortgages for our 358 00:16:26,120 --> 00:16:28,960 Speaker 1: first house, there was some incorrect information on there, and 359 00:16:29,000 --> 00:16:32,200 Speaker 1: as did she live with Sergey and Pablo too. In 360 00:16:32,240 --> 00:16:35,480 Speaker 1: her case, she has the same or a very similar 361 00:16:35,560 --> 00:16:39,160 Speaker 1: name to her mom, and so that's specifically called emerged report, 362 00:16:39,480 --> 00:16:42,600 Speaker 1: where you know, some information from her parents, essentially her 363 00:16:42,600 --> 00:16:46,360 Speaker 1: parents financial information was showing up on her file. And 364 00:16:46,560 --> 00:16:49,640 Speaker 1: I can't remember if it actually may have helped us, 365 00:16:48,920 --> 00:16:51,600 Speaker 1: because it may it look like maybe Kate was had 366 00:16:51,640 --> 00:16:54,080 Speaker 1: more going on than she actually did. But regardless, it 367 00:16:54,160 --> 00:16:56,240 Speaker 1: was not something that we wanted on the file as 368 00:16:56,240 --> 00:16:58,880 Speaker 1: they were considering giving us a loan, So that was 369 00:16:58,920 --> 00:17:01,080 Speaker 1: something that we had to reach out to that specific 370 00:17:01,080 --> 00:17:03,760 Speaker 1: credit agency, and it was the exact same thing Anna. 371 00:17:04,160 --> 00:17:06,840 Speaker 1: It was only with one of the credit reporting agencies. 372 00:17:06,880 --> 00:17:08,760 Speaker 1: And it's been years so I can't remember, but we 373 00:17:08,760 --> 00:17:11,000 Speaker 1: had to reach out to them directly to take care 374 00:17:11,000 --> 00:17:13,280 Speaker 1: of that ourselves. Like all the work fell to us. 375 00:17:13,359 --> 00:17:15,840 Speaker 1: It wasn't some sort of easy button. I think honestly, dude, 376 00:17:15,880 --> 00:17:18,040 Speaker 1: it was even harder back then to kind of correct 377 00:17:18,080 --> 00:17:20,639 Speaker 1: a mistake like that. They do have some online ways 378 00:17:20,680 --> 00:17:22,520 Speaker 1: that you can file the disputes and it's a little 379 00:17:22,520 --> 00:17:25,320 Speaker 1: bit easier these days, but still not a lot of fun. Yeah, man, 380 00:17:25,320 --> 00:17:27,359 Speaker 1: I think that's actually one of the most common occurrences 381 00:17:27,520 --> 00:17:30,840 Speaker 1: is that it's typically a family member who your file 382 00:17:31,000 --> 00:17:34,119 Speaker 1: ends up reflecting based on similar names and stuff like that. 383 00:17:34,200 --> 00:17:36,280 Speaker 1: And so that could be what happened with Anna. It 384 00:17:36,280 --> 00:17:38,359 Speaker 1: could be more nefarious than that. It could be someone 385 00:17:38,400 --> 00:17:41,119 Speaker 1: that has tried to to steal her identity. And and 386 00:17:41,160 --> 00:17:43,280 Speaker 1: if that's the case, you want to go through this 387 00:17:43,359 --> 00:17:45,920 Speaker 1: dispute process as well, and you want to make sure 388 00:17:46,040 --> 00:17:48,159 Speaker 1: that those things are cleared up on your credit report, 389 00:17:48,400 --> 00:17:50,639 Speaker 1: and then you're gonna want to proceed with the credit 390 00:17:50,680 --> 00:17:53,119 Speaker 1: freeze after that. Yeah, and so let's talk about the 391 00:17:53,119 --> 00:17:55,760 Speaker 1: purpose of why you actually want to do the freeze. 392 00:17:55,800 --> 00:17:57,960 Speaker 1: Is the reason for that is you are trying to 393 00:17:58,000 --> 00:18:00,879 Speaker 1: prevent the potential for future for odd so and you know, 394 00:18:00,960 --> 00:18:02,560 Speaker 1: you asked if you should even go through with it 395 00:18:02,600 --> 00:18:04,760 Speaker 1: at all, Like the answer is yes, you still want 396 00:18:04,800 --> 00:18:07,160 Speaker 1: to go ahead and freeze, in particular now that it's 397 00:18:07,240 --> 00:18:09,960 Speaker 1: free uh, and it's pretty easy to do. I did 398 00:18:10,040 --> 00:18:12,000 Speaker 1: want to point out that you're not actually freezing your 399 00:18:12,040 --> 00:18:15,840 Speaker 1: credit score, but you're freezing the access to your credit file. 400 00:18:16,240 --> 00:18:18,600 Speaker 1: And that's worth These can open new accounts in your name, 401 00:18:19,040 --> 00:18:22,840 Speaker 1: use your potentially great credit to open, you know, lines 402 00:18:22,840 --> 00:18:25,120 Speaker 1: of credit for them as if they were you, exactly, 403 00:18:25,160 --> 00:18:28,600 Speaker 1: personal loans, different things like that. That's what they're after. 404 00:18:28,640 --> 00:18:30,960 Speaker 1: They're they're after you're a good name to you know, 405 00:18:31,000 --> 00:18:34,719 Speaker 1: open up financial products as if they were you. All right, 406 00:18:34,760 --> 00:18:37,560 Speaker 1: And for any listeners that are hearing this question and 407 00:18:37,600 --> 00:18:39,840 Speaker 1: answer right now and they're like, what's a credit freeze? Well, 408 00:18:39,880 --> 00:18:42,840 Speaker 1: we talked about credit freeze is extensively in episode thirty eight, 409 00:18:42,920 --> 00:18:45,000 Speaker 1: and it's something you need to know about because, like 410 00:18:45,080 --> 00:18:47,359 Speaker 1: we just talked about, having a credit freeze in place 411 00:18:47,480 --> 00:18:50,000 Speaker 1: protects you and it's free now thanks to a law 412 00:18:50,040 --> 00:18:52,159 Speaker 1: that want into effect about a year ago. And so 413 00:18:52,200 --> 00:18:53,960 Speaker 1: it's just really something that we should all take advantage 414 00:18:54,000 --> 00:18:56,680 Speaker 1: of because it's free and it can put your mind 415 00:18:56,680 --> 00:18:59,400 Speaker 1: at ease when it comes to securing your credit. All right, Jil. 416 00:18:59,480 --> 00:19:02,239 Speaker 1: Next we are to hear from a listener he's got 417 00:19:02,240 --> 00:19:05,520 Speaker 1: a question regarding life insurance. Hey follow us. My name 418 00:19:05,560 --> 00:19:07,360 Speaker 1: is Mike. I live in Iowa. I was a late 419 00:19:07,400 --> 00:19:09,679 Speaker 1: finder of your podcast, UM, but in the last few 420 00:19:09,720 --> 00:19:12,200 Speaker 1: weeks I've blowed through several episodes and it has made 421 00:19:12,320 --> 00:19:14,919 Speaker 1: a big difference in my life, So thank you very 422 00:19:15,040 --> 00:19:17,400 Speaker 1: much for that. UM. I have two questions for you. 423 00:19:17,880 --> 00:19:21,000 Speaker 1: Number one, as part one of your earlier podcasts about 424 00:19:21,080 --> 00:19:24,080 Speaker 1: life insurance, I've been working to increase my term coverage 425 00:19:24,440 --> 00:19:26,480 Speaker 1: UM and working with my agent. He has been talking 426 00:19:26,520 --> 00:19:29,280 Speaker 1: me up quite a bit about the convertible policies where 427 00:19:29,320 --> 00:19:32,200 Speaker 1: you can convert a term policy to have some sort 428 00:19:32,200 --> 00:19:34,520 Speaker 1: of a cash value UM, and I was wondering if 429 00:19:34,520 --> 00:19:37,439 Speaker 1: you can give your thoughts into that. It really sounds 430 00:19:37,440 --> 00:19:39,640 Speaker 1: too good to be true and it's making me very suspicious, 431 00:19:40,080 --> 00:19:42,920 Speaker 1: so I'd appreciate your thoughts. And secondly, I was wondering 432 00:19:42,920 --> 00:19:44,920 Speaker 1: if you could tell us the easiest way to send 433 00:19:44,960 --> 00:19:46,960 Speaker 1: you guys some beers. So thank you for all of 434 00:19:47,000 --> 00:19:49,639 Speaker 1: the life advice you've given us. Thank you, Joel. You 435 00:19:49,680 --> 00:19:51,679 Speaker 1: know what sounds too good to be true is the 436 00:19:51,720 --> 00:19:54,800 Speaker 1: fact that our listeners actually dousing this beer, So Mike, 437 00:19:55,359 --> 00:19:57,399 Speaker 1: we really appreciate that offer. You can hit us up 438 00:19:57,440 --> 00:20:00,520 Speaker 1: at how the Money Pod at gmail dot com, and 439 00:20:00,600 --> 00:20:02,760 Speaker 1: that's the best way to get in touch. Thanks Mike, 440 00:20:02,800 --> 00:20:05,040 Speaker 1: super generous man. It's awesome. All right, So let's get 441 00:20:05,040 --> 00:20:08,240 Speaker 1: onto Mike's question, and we have talked about life insurance 442 00:20:08,240 --> 00:20:10,639 Speaker 1: and how term life is by far the cheapest and 443 00:20:10,680 --> 00:20:13,080 Speaker 1: in almost every case it's the best life insurance for 444 00:20:13,080 --> 00:20:15,080 Speaker 1: for folks to get to You said you were working 445 00:20:15,119 --> 00:20:18,800 Speaker 1: with an agent. Well, let's just address that first and foremost, 446 00:20:19,000 --> 00:20:22,439 Speaker 1: there's a decent chance, Mike, that your agent has a 447 00:20:22,480 --> 00:20:25,040 Speaker 1: conflict of interest and he or she wants to sell 448 00:20:25,080 --> 00:20:29,440 Speaker 1: you a policy that gives them more money, more commissioned, 449 00:20:29,720 --> 00:20:31,720 Speaker 1: and so that might be why they're trying to sell 450 00:20:31,760 --> 00:20:35,120 Speaker 1: you a more expensive policy than you might actually need. 451 00:20:35,600 --> 00:20:38,280 Speaker 1: And so maybe instead of working with an individual agent, 452 00:20:38,960 --> 00:20:40,960 Speaker 1: you should shop the open market. So that's our The 453 00:20:41,000 --> 00:20:44,680 Speaker 1: first recommendation is to, you know, go with a website 454 00:20:44,680 --> 00:20:48,040 Speaker 1: like policy Genius have in Life. There's another one called 455 00:20:48,160 --> 00:20:50,800 Speaker 1: quote A c Q U O T A c Y. 456 00:20:50,960 --> 00:20:53,160 Speaker 1: Those are just great sites to shop around for their 457 00:20:53,160 --> 00:20:56,840 Speaker 1: easy to use and and finding term life insurance through 458 00:20:56,840 --> 00:20:58,680 Speaker 1: a site like that. Also, if you're a Costco member, 459 00:20:58,720 --> 00:21:00,919 Speaker 1: that's actually where I bought my life insurance. More on 460 00:21:00,960 --> 00:21:03,240 Speaker 1: that next episode, right, So, yeah, more more on that 461 00:21:03,359 --> 00:21:05,560 Speaker 1: later this week. But yeah, so there's so many different 462 00:21:05,560 --> 00:21:08,360 Speaker 1: places where you can get in expensive term life insurance, 463 00:21:08,600 --> 00:21:10,320 Speaker 1: but in all likelihood, you're not going to get the 464 00:21:10,320 --> 00:21:13,840 Speaker 1: best rate going directly through that singular agent that you're 465 00:21:13,840 --> 00:21:16,720 Speaker 1: currently working with. Yeah, Juel, you know. And and something 466 00:21:16,720 --> 00:21:19,960 Speaker 1: else Mike mentioned He mentioned a cash value. Well, the 467 00:21:20,000 --> 00:21:23,440 Speaker 1: fact is term insurance doesn't have a cash value associated 468 00:21:23,520 --> 00:21:26,040 Speaker 1: with it. And so, you know, Mike, it sounds like 469 00:21:26,119 --> 00:21:27,800 Speaker 1: that your agent might be trying to sell you something 470 00:21:28,000 --> 00:21:31,200 Speaker 1: more expensive, something that you may not need. Maybe this 471 00:21:31,280 --> 00:21:34,400 Speaker 1: is a return of premium policy or a regular term 472 00:21:34,480 --> 00:21:37,040 Speaker 1: that he's looking to convert to a whole life. Either way, 473 00:21:37,080 --> 00:21:39,840 Speaker 1: this is not something that you would probably want to consider. 474 00:21:40,040 --> 00:21:43,600 Speaker 1: And so, Mike, basically, anything that isn't term life forces 475 00:21:43,640 --> 00:21:46,680 Speaker 1: you to set money aside. It's as a forced method 476 00:21:46,760 --> 00:21:49,480 Speaker 1: of savings, and it's a way to save money and 477 00:21:49,520 --> 00:21:51,719 Speaker 1: where your money is going to be underinvested, right, it's 478 00:21:51,760 --> 00:21:54,399 Speaker 1: it's not going to perform as well. The premiums on 479 00:21:54,400 --> 00:21:56,560 Speaker 1: those policies are typically going to be at least thirty 480 00:21:56,560 --> 00:21:58,960 Speaker 1: percent more expensive, and again, that's just not the route 481 00:21:58,960 --> 00:22:01,040 Speaker 1: you want to take when it comes to life insurance. Yeah, 482 00:22:01,080 --> 00:22:03,360 Speaker 1: if we're talking about a completely different kind of insurance 483 00:22:03,400 --> 00:22:05,600 Speaker 1: like whole life. We're talking about premiums that are way 484 00:22:05,640 --> 00:22:10,240 Speaker 1: more than more. We're talking about a much bigger monthly expense. Then, 485 00:22:10,280 --> 00:22:13,600 Speaker 1: so quickly, let's talk about why we get life insurance 486 00:22:13,640 --> 00:22:14,960 Speaker 1: in the first place. I think that can kind of 487 00:22:14,960 --> 00:22:18,280 Speaker 1: help clarify things too. Basically, the reason that we get 488 00:22:18,359 --> 00:22:21,840 Speaker 1: life insurance is for income replacement for the people that 489 00:22:21,880 --> 00:22:24,800 Speaker 1: we leave behind, for our loved ones. In term life insurance, 490 00:22:24,840 --> 00:22:27,880 Speaker 1: it's just the simplest, easiest, cheapest way to get that done. 491 00:22:28,240 --> 00:22:30,840 Speaker 1: And so whether you need a term policy for ten years, 492 00:22:30,880 --> 00:22:33,399 Speaker 1: twenty years, thirty years, whatever it may be, that's just 493 00:22:33,440 --> 00:22:36,040 Speaker 1: going to be the simplest way to ensure that your 494 00:22:36,080 --> 00:22:39,000 Speaker 1: loved ones are taken care of with very very low 495 00:22:39,040 --> 00:22:42,040 Speaker 1: monthly costs associated with it. The goal is by the 496 00:22:42,119 --> 00:22:44,800 Speaker 1: end of that term to to be self insured, to 497 00:22:44,800 --> 00:22:48,200 Speaker 1: have enough saved up for retirement where you don't need 498 00:22:48,359 --> 00:22:52,000 Speaker 1: life insurance after that fact. Yeah, Jo. Also, essentially, if 499 00:22:52,000 --> 00:22:53,960 Speaker 1: you are thirty right now and you snag at thirty 500 00:22:54,040 --> 00:22:57,240 Speaker 1: year level term policy, you do want to make sure 501 00:22:57,280 --> 00:23:00,160 Speaker 1: that your investments and your savings could cover you at 502 00:23:00,200 --> 00:23:02,720 Speaker 1: age sixty. Again, you want to be self insured. That way, 503 00:23:02,800 --> 00:23:05,000 Speaker 1: if we're you to pass away, your loved ones are 504 00:23:05,000 --> 00:23:07,159 Speaker 1: taken care of. That's all there is to it. That 505 00:23:07,400 --> 00:23:10,479 Speaker 1: essentially is what level term life insurance does. Before you 506 00:23:10,520 --> 00:23:13,120 Speaker 1: get to that point. It doesn't marry that your insurance 507 00:23:13,119 --> 00:23:15,320 Speaker 1: with your investments. You know, there's not money that you're 508 00:23:15,320 --> 00:23:18,159 Speaker 1: going to get back necessarily. All those other forms of 509 00:23:18,200 --> 00:23:21,840 Speaker 1: complicated insurance for the vast majority of folks is not 510 00:23:21,880 --> 00:23:23,200 Speaker 1: going to be the route that you want to take. 511 00:23:23,240 --> 00:23:26,040 Speaker 1: And that's why your monthly bill for you know, a 512 00:23:26,119 --> 00:23:28,879 Speaker 1: term life insurance policy of let's say half a million 513 00:23:28,920 --> 00:23:31,480 Speaker 1: dollars is probably gonna be like twenty two bucks or 514 00:23:31,480 --> 00:23:34,280 Speaker 1: twenty six bucks or thirty bucks, depending on your age 515 00:23:34,600 --> 00:23:37,560 Speaker 1: and your your potential health risks, stuff like that. But 516 00:23:37,800 --> 00:23:40,480 Speaker 1: term life insurance is so cheap, and if you're considering 517 00:23:40,520 --> 00:23:42,880 Speaker 1: any other kind of insurance policy, you're just talking about 518 00:23:43,000 --> 00:23:45,840 Speaker 1: much bigger figures, and we just don't think there's any 519 00:23:45,880 --> 00:23:48,200 Speaker 1: need to even wait into those waters. So that was 520 00:23:48,280 --> 00:23:50,239 Speaker 1: question number three. We've got a couple more coming up. 521 00:23:50,240 --> 00:23:52,440 Speaker 1: What do we have? Yeah, man, So after the break, 522 00:23:52,480 --> 00:23:54,880 Speaker 1: we're going to talk about saving money on car insurance, 523 00:23:55,080 --> 00:23:57,359 Speaker 1: and we're also going to take into consideration, what's a 524 00:23:57,359 --> 00:24:08,880 Speaker 1: better idea variable or fixed rate mortgage? All right, Matt, 525 00:24:08,880 --> 00:24:11,600 Speaker 1: we'll back. Let's get to that mortgage question right now. 526 00:24:12,200 --> 00:24:15,160 Speaker 1: Hi there, my name is Christina and I'm calling from Toronto, Canada, 527 00:24:15,320 --> 00:24:18,640 Speaker 1: So hello from the North. My husband and I are 528 00:24:18,680 --> 00:24:21,760 Speaker 1: just in the midst of buying our first house, and 529 00:24:21,840 --> 00:24:25,280 Speaker 1: that leads me to my question regarding variable versus fixed 530 00:24:25,400 --> 00:24:29,360 Speaker 1: rate mortgages. Given the amount of interest you pay over 531 00:24:29,400 --> 00:24:33,400 Speaker 1: the lifespan of a mortgage, we're both looking to navigate 532 00:24:33,440 --> 00:24:35,440 Speaker 1: this in a way that has us paying the least 533 00:24:35,440 --> 00:24:38,320 Speaker 1: amount as possible so that we have more money left 534 00:24:38,320 --> 00:24:42,120 Speaker 1: over to enjoy a nice beer or, in my case, 535 00:24:42,160 --> 00:24:44,760 Speaker 1: a nice glass of wine on our new back patio. 536 00:24:45,080 --> 00:24:49,040 Speaker 1: Thanks so much, Christina, Congrats on buying your first home. 537 00:24:49,080 --> 00:24:52,119 Speaker 1: That's always a very exciting thing to do, you know, 538 00:24:52,160 --> 00:24:54,840 Speaker 1: and I also really appreciate that you're sort of taking 539 00:24:54,880 --> 00:24:57,800 Speaker 1: a balanced look towards your money. You know, you're considering 540 00:24:58,200 --> 00:25:00,240 Speaker 1: the things that you want to do now it out 541 00:25:00,240 --> 00:25:01,920 Speaker 1: in your patio with your husband, but at the same 542 00:25:01,960 --> 00:25:04,720 Speaker 1: time you're you're thinking about the long term implications that 543 00:25:04,800 --> 00:25:07,200 Speaker 1: these loans will have on you and your finances. So 544 00:25:07,320 --> 00:25:09,239 Speaker 1: kudos to you, Joel. Do you want to give her 545 00:25:09,320 --> 00:25:13,040 Speaker 1: the slam dunk answer? Yeah, I mean, honestly, a fixed 546 00:25:13,119 --> 00:25:15,680 Speaker 1: rate mortgage, I think at this point in time makes 547 00:25:16,000 --> 00:25:18,919 Speaker 1: so much sense to pretty much everybody, especially if you 548 00:25:18,920 --> 00:25:21,640 Speaker 1: plan on being in the house for the next ten 549 00:25:21,720 --> 00:25:24,560 Speaker 1: years or more. I think a fixed rate mortgage is 550 00:25:24,600 --> 00:25:27,560 Speaker 1: just a slam dunk. Rates are at historic lows, and 551 00:25:27,640 --> 00:25:30,040 Speaker 1: although it seemed like rates we're gonna go up, it 552 00:25:30,040 --> 00:25:31,800 Speaker 1: looks like right now we're in kind of this kind 553 00:25:31,840 --> 00:25:34,480 Speaker 1: of weird limbo rate environment where where we might actually 554 00:25:34,520 --> 00:25:37,919 Speaker 1: see rates drop a little bit over the coming months. Well, 555 00:25:38,119 --> 00:25:40,520 Speaker 1: it's hard to predict where rates are going to go, 556 00:25:41,000 --> 00:25:43,359 Speaker 1: but the easiest thing to see is that we're at 557 00:25:43,520 --> 00:25:46,920 Speaker 1: almost historical levels now, and so to not lock in 558 00:25:47,359 --> 00:25:51,160 Speaker 1: is just putting yourself really in a position where you're 559 00:25:51,200 --> 00:25:55,320 Speaker 1: susceptible to rate changes over time, and when you're near 560 00:25:55,359 --> 00:25:57,840 Speaker 1: historic lows, there's just no reason to do that. So 561 00:25:57,960 --> 00:26:01,320 Speaker 1: I would be prone to locking in a fixed rate 562 00:26:01,640 --> 00:26:04,240 Speaker 1: for sure. If I were you and Christina, you asked, 563 00:26:04,400 --> 00:26:07,280 Speaker 1: you know, how can you pay less overall over the 564 00:26:07,320 --> 00:26:09,480 Speaker 1: long term? You know, the best way to actually lower 565 00:26:09,520 --> 00:26:11,720 Speaker 1: the amount of interest that you'll be paying is to 566 00:26:11,880 --> 00:26:16,119 Speaker 1: choose an actual shorter term. So most popular is the 567 00:26:16,119 --> 00:26:19,000 Speaker 1: thirty year mortgage, a fifteen year mortgage that truly will 568 00:26:19,080 --> 00:26:22,159 Speaker 1: allow you to pay less in interest over time. The 569 00:26:22,240 --> 00:26:25,800 Speaker 1: spread or the difference in interest rates between a fifteen 570 00:26:25,840 --> 00:26:28,960 Speaker 1: year and a thirty year it was wider. It's condensed 571 00:26:29,000 --> 00:26:31,280 Speaker 1: a good bit in the past several months, and so 572 00:26:31,359 --> 00:26:33,719 Speaker 1: what that means is the thirty year isn't a bad option. 573 00:26:34,160 --> 00:26:36,800 Speaker 1: You can always make a concerted effort to pay it 574 00:26:36,880 --> 00:26:39,080 Speaker 1: off faster if you want to kind of pay down 575 00:26:39,080 --> 00:26:41,639 Speaker 1: your mortgage, But there isn't a huge advantage, you know 576 00:26:41,720 --> 00:26:43,440 Speaker 1: right now, it's to go on with that fifteen year 577 00:26:43,560 --> 00:26:45,840 Speaker 1: over a thirty year. Used to be what Jill is 578 00:26:45,880 --> 00:26:48,200 Speaker 1: more of like a one percent kind of gap between 579 00:26:48,200 --> 00:26:50,399 Speaker 1: that fifteen and thirty year. Now it's close to a 580 00:26:50,480 --> 00:26:52,520 Speaker 1: half percent. So you can get a thirty year mortgage 581 00:26:52,520 --> 00:26:55,719 Speaker 1: for around four per cents and a fifteen year you're 582 00:26:55,760 --> 00:26:57,479 Speaker 1: looking at three and a half percent, So that's not 583 00:26:57,680 --> 00:27:00,360 Speaker 1: a huge difference. Yeah, just make sure to check with 584 00:27:00,560 --> 00:27:03,280 Speaker 1: a credit union in your area because sometimes the rates 585 00:27:03,280 --> 00:27:05,919 Speaker 1: at credit that credit unions can offer are just so 586 00:27:06,000 --> 00:27:08,560 Speaker 1: much better than the advertiser rates. You're going to see 587 00:27:08,560 --> 00:27:10,800 Speaker 1: at a bank. For instance, I was looking at rates 588 00:27:10,800 --> 00:27:13,440 Speaker 1: from a credit union in our area just the other day, 589 00:27:13,560 --> 00:27:14,960 Speaker 1: just just I don't know, I'm a nerd. I'd like 590 00:27:14,960 --> 00:27:16,800 Speaker 1: to check in all those things. And here were the 591 00:27:16,880 --> 00:27:19,359 Speaker 1: rates for a thirty and a fifteen, And the rates 592 00:27:19,400 --> 00:27:22,000 Speaker 1: were three point eight seven five for a thirty and 593 00:27:22,240 --> 00:27:25,080 Speaker 1: two point eight seven five for a fifteen. Well, yeah, 594 00:27:25,119 --> 00:27:27,119 Speaker 1: so the spread was huge, and the fifteen was just 595 00:27:27,320 --> 00:27:29,800 Speaker 1: such a better deal. And so if you have access 596 00:27:29,840 --> 00:27:31,720 Speaker 1: to a rate like that, well then it might make 597 00:27:31,720 --> 00:27:33,840 Speaker 1: a whole lot of sense to really strongly consider the 598 00:27:33,880 --> 00:27:35,960 Speaker 1: fifteen if you can afford it. But if you're not 599 00:27:36,040 --> 00:27:38,200 Speaker 1: quite seeing a spread like that, well, a thirty year 600 00:27:38,359 --> 00:27:41,360 Speaker 1: at historic low in the four percent range or possibly 601 00:27:41,359 --> 00:27:43,960 Speaker 1: even lower, that's a great thing to lock in. And 602 00:27:44,000 --> 00:27:48,440 Speaker 1: also it gives you the ability to prioritize retirement savings. Matt, 603 00:27:48,480 --> 00:27:51,119 Speaker 1: We've talked before about good debt versus bad debt, and 604 00:27:51,200 --> 00:27:54,000 Speaker 1: mortgage debt in the sub four percent range just isn't 605 00:27:54,040 --> 00:27:56,040 Speaker 1: debt you want to pay off as quickly as possible. 606 00:27:56,240 --> 00:27:59,960 Speaker 1: You don't actually mind that debt lingering around. If you're 607 00:28:00,080 --> 00:28:04,119 Speaker 1: going to prioritize saving for retirement with the excess money 608 00:28:04,160 --> 00:28:06,880 Speaker 1: that you would have put towards that debt. And so Christina, 609 00:28:06,880 --> 00:28:09,200 Speaker 1: I just want to mention that, enjoy your wine, enjoy 610 00:28:09,200 --> 00:28:12,399 Speaker 1: your cheap mortgage, but just don't forget to prioritize saving 611 00:28:12,440 --> 00:28:14,920 Speaker 1: for retirement at the same time. Yeah, Uel, that's such 612 00:28:14,960 --> 00:28:17,600 Speaker 1: a great point. Checking with your credit unions sort of 613 00:28:17,640 --> 00:28:19,480 Speaker 1: like local produce. You just want to see where the 614 00:28:19,520 --> 00:28:21,840 Speaker 1: deals are and pounce when you see one. So our 615 00:28:21,920 --> 00:28:24,200 Speaker 1: last question on this episode has to do with car insurance. 616 00:28:24,760 --> 00:28:28,359 Speaker 1: Let's get to it. Hey, guys, this is Donnie from Milwaukee, Wisconsin. 617 00:28:28,520 --> 00:28:32,159 Speaker 1: I just listened to your episode on insurance and I 618 00:28:32,200 --> 00:28:35,360 Speaker 1: have a question about it. I have an embarrassing amount 619 00:28:35,400 --> 00:28:39,400 Speaker 1: of experience using my car insurance, and whenever I used 620 00:28:39,440 --> 00:28:43,040 Speaker 1: my car insurance, and because I got an accident, someone 621 00:28:43,240 --> 00:28:46,960 Speaker 1: inevitably says to me, this is what insurance is for. Well, 622 00:28:48,160 --> 00:28:51,920 Speaker 1: I end up paying for it. Anyways, my rates get increased, 623 00:28:52,000 --> 00:28:55,680 Speaker 1: and I've actually been dropped from my insurance because of 624 00:28:56,440 --> 00:28:58,840 Speaker 1: the amount that they've had to pay for work for me. 625 00:28:59,280 --> 00:29:02,320 Speaker 1: My question is what happens if I decline the work 626 00:29:02,480 --> 00:29:06,120 Speaker 1: that's needed from an accident that I get in If 627 00:29:06,160 --> 00:29:09,520 Speaker 1: I declined that work. In my mind, I should not 628 00:29:09,720 --> 00:29:13,200 Speaker 1: have my rates increased as much, But I don't know 629 00:29:13,320 --> 00:29:17,760 Speaker 1: if that's necessarily accurate. I'm interested in what you guys 630 00:29:17,840 --> 00:29:20,960 Speaker 1: have to say. Cheers, Donny Man, thanks for your question. 631 00:29:21,000 --> 00:29:23,480 Speaker 1: I'm so sorry to hear that insurance, knowing when to 632 00:29:23,600 --> 00:29:26,479 Speaker 1: use it and then the cascading effects of using it 633 00:29:26,520 --> 00:29:28,560 Speaker 1: can be a painful learning experience, and it sounds like 634 00:29:28,800 --> 00:29:30,680 Speaker 1: you're kind of going through that right now. And Matt, 635 00:29:30,760 --> 00:29:33,280 Speaker 1: on an earlier episode, you kind of documented to how 636 00:29:33,280 --> 00:29:35,760 Speaker 1: in college you used your insurance too much and it 637 00:29:35,800 --> 00:29:38,040 Speaker 1: can have catastrophic effects on on kind of the premium 638 00:29:38,040 --> 00:29:40,720 Speaker 1: that you have to pay for that insurance. Right. Yeah, 639 00:29:40,760 --> 00:29:42,640 Speaker 1: that's so true, you know, Donnie, I'm with you, man. 640 00:29:42,680 --> 00:29:44,840 Speaker 1: This is a lesson that I learned the hard way 641 00:29:44,880 --> 00:29:47,160 Speaker 1: as well when I was in high school and college, 642 00:29:47,160 --> 00:29:50,080 Speaker 1: where I overused my insurance, not knowing that that was 643 00:29:50,120 --> 00:29:52,400 Speaker 1: gonna turn around and bite me in the butt and 644 00:29:52,440 --> 00:29:55,000 Speaker 1: have my rates skyrocket. But Donnie, let's go ahead and 645 00:29:55,040 --> 00:29:58,400 Speaker 1: get your question. And regardless if you accept the check 646 00:29:58,520 --> 00:29:59,960 Speaker 1: or the work that needs to be done to your 647 00:30:00,000 --> 00:30:03,120 Speaker 1: are or if you try to decline it's an accident. 648 00:30:03,200 --> 00:30:06,440 Speaker 1: Report was filed and that will hit your clue report. 649 00:30:06,760 --> 00:30:09,760 Speaker 1: This is what insurers based your rates on. Again, we 650 00:30:09,800 --> 00:30:12,120 Speaker 1: mentioned this in a previous episode about you know, ways 651 00:30:12,160 --> 00:30:14,560 Speaker 1: to keep your insurance down. I'm sure you heard that. 652 00:30:14,920 --> 00:30:17,800 Speaker 1: But once that accident report basically hit your clue report, 653 00:30:17,840 --> 00:30:19,880 Speaker 1: the damage is done. And that's what insurers are going 654 00:30:19,920 --> 00:30:21,720 Speaker 1: to be looking at when it comes time to renew 655 00:30:21,720 --> 00:30:24,520 Speaker 1: your insurance. But for those out there who have not 656 00:30:24,640 --> 00:30:26,360 Speaker 1: seen the clue report, will put that link in our 657 00:30:26,360 --> 00:30:28,480 Speaker 1: show notes to where you can go on for free 658 00:30:28,520 --> 00:30:31,560 Speaker 1: once a year and take a look at your clue report. Yeah, 659 00:30:31,600 --> 00:30:34,200 Speaker 1: and that is instrumental in how rates are set. And 660 00:30:34,280 --> 00:30:36,400 Speaker 1: so let's talk about the ways to get your rates 661 00:30:36,400 --> 00:30:38,800 Speaker 1: back down in the future. So the only way really 662 00:30:38,840 --> 00:30:41,840 Speaker 1: to keep your insurance rates from going up is if 663 00:30:41,840 --> 00:30:44,840 Speaker 1: you're insure never finds out about an accident that you're 664 00:30:44,840 --> 00:30:47,120 Speaker 1: involved in. And that's we're not talking about hit and 665 00:30:47,200 --> 00:30:50,840 Speaker 1: run right right right, well, yeah, yeah, exactly right. We 666 00:30:50,880 --> 00:30:53,240 Speaker 1: don't want that to be the case, but you're insure 667 00:30:53,360 --> 00:30:55,960 Speaker 1: is pretty much going to find out about almost any 668 00:30:56,000 --> 00:30:59,479 Speaker 1: accident that you're in where the police are involved. So 669 00:30:59,520 --> 00:31:02,280 Speaker 1: if there is a police report filed, even if no 670 00:31:02,400 --> 00:31:06,160 Speaker 1: insurance claim is made based on that accident, Well, that 671 00:31:06,240 --> 00:31:08,800 Speaker 1: still goes on your clue report and influences the rates 672 00:31:08,800 --> 00:31:10,760 Speaker 1: that you're gonna pay in the same way that getting 673 00:31:10,760 --> 00:31:13,040 Speaker 1: a speeding ticket would go on your clue report as 674 00:31:13,040 --> 00:31:15,560 Speaker 1: well and influence your rates. The only way in which 675 00:31:15,560 --> 00:31:17,640 Speaker 1: getting in an accident isn't going to make your rates 676 00:31:17,640 --> 00:31:20,680 Speaker 1: go up is if you're in an accident completely by yourself. 677 00:31:20,720 --> 00:31:23,920 Speaker 1: Like let's say you hit a deer. Done that twice, 678 00:31:24,240 --> 00:31:26,200 Speaker 1: that's been there, done that. Uh, and let's say it 679 00:31:26,280 --> 00:31:28,840 Speaker 1: was a thousand dollars worth of damage to your car. Well, 680 00:31:29,000 --> 00:31:30,880 Speaker 1: it stinks to hit a deer, it's no fun. But 681 00:31:30,920 --> 00:31:32,680 Speaker 1: if you've got a thousand dollars, you can pay that 682 00:31:32,720 --> 00:31:35,760 Speaker 1: out of pocket. The insurance company can be completely left 683 00:31:35,760 --> 00:31:38,880 Speaker 1: out of that, and by handling it completely on your own, 684 00:31:39,400 --> 00:31:43,120 Speaker 1: you avoid having that accident made known to your insurance company, 685 00:31:43,280 --> 00:31:45,760 Speaker 1: which means your rates won't change because of it. That's right. 686 00:31:45,760 --> 00:31:47,920 Speaker 1: There's no police report to be filed and there's no 687 00:31:48,000 --> 00:31:51,360 Speaker 1: work that you have to decline from the insurance. So 688 00:31:51,400 --> 00:31:53,240 Speaker 1: let's talk about ways that you can get your rates 689 00:31:53,320 --> 00:31:55,840 Speaker 1: back down. We talk about this all the time, but 690 00:31:56,000 --> 00:31:58,560 Speaker 1: make sure that you are shopping around. If you've been 691 00:31:58,600 --> 00:32:00,560 Speaker 1: with a carrier for more than a couple of years, 692 00:32:00,640 --> 00:32:03,720 Speaker 1: chances are you are over paying, So make sure you 693 00:32:03,760 --> 00:32:06,440 Speaker 1: do that. That's gonna be the first step. Next, consider 694 00:32:06,520 --> 00:32:08,600 Speaker 1: raising your deductible, but make sure that you have enough 695 00:32:08,640 --> 00:32:11,360 Speaker 1: money in your emergency fund, like we talked about at 696 00:32:11,400 --> 00:32:13,640 Speaker 1: the beginning of this episode, you want to make sure 697 00:32:13,640 --> 00:32:16,680 Speaker 1: you have that money set aside to cover that higher deductible. 698 00:32:16,920 --> 00:32:18,960 Speaker 1: And this will also help prevent you from making a 699 00:32:19,000 --> 00:32:22,560 Speaker 1: claim unless you are in a more major accident, truly 700 00:32:22,680 --> 00:32:24,840 Speaker 1: using your insurance for something that you need it for 701 00:32:24,880 --> 00:32:28,840 Speaker 1: something a little more catastrophic. Yeah, and some insurers specialize 702 00:32:28,960 --> 00:32:32,160 Speaker 1: in insuring different kinds of people, and honestly, there are 703 00:32:32,200 --> 00:32:35,360 Speaker 1: insurers that do a better job at keeping costs down 704 00:32:35,800 --> 00:32:38,760 Speaker 1: for individuals that have filed more claims. And so make 705 00:32:38,800 --> 00:32:41,000 Speaker 1: sure you're shopping around now, but also make sure that 706 00:32:41,080 --> 00:32:43,880 Speaker 1: as you distance yourself from some of these insurance claims, 707 00:32:44,120 --> 00:32:47,240 Speaker 1: you shop around again, because you could find that you're 708 00:32:47,280 --> 00:32:49,480 Speaker 1: able to get much slower rates with a different insure 709 00:32:49,520 --> 00:32:51,400 Speaker 1: two or three years from now as some of those 710 00:32:51,400 --> 00:32:53,479 Speaker 1: claims drop off of your clue report. Yeah, and you'll 711 00:32:53,520 --> 00:32:55,880 Speaker 1: see those drop off every seven years, so that you 712 00:32:55,920 --> 00:32:57,720 Speaker 1: know they last on your clue report for that long 713 00:32:57,840 --> 00:33:00,120 Speaker 1: before they start falling off that back end. But I'm 714 00:33:00,120 --> 00:33:01,920 Speaker 1: mature has really only look at the past two years 715 00:33:02,000 --> 00:33:05,200 Speaker 1: or three years of moving violations and traffic accidents. It 716 00:33:05,320 --> 00:33:08,520 Speaker 1: just depends on the specific company, and so that's why 717 00:33:08,600 --> 00:33:11,240 Speaker 1: shopping around makes such a big difference. So Donnie, we 718 00:33:11,240 --> 00:33:13,880 Speaker 1: hope that helps to answer your question. And again, yeah, 719 00:33:13,920 --> 00:33:15,920 Speaker 1: it's like to be in car rex and hopefully you'll 720 00:33:15,960 --> 00:33:18,080 Speaker 1: have less of those in the future. I don't know why, 721 00:33:18,200 --> 00:33:21,720 Speaker 1: but I really want to say, you're out of your element, Donnie. Uh. 722 00:33:21,840 --> 00:33:25,320 Speaker 1: I love the big Lebowskilabowski. So good, Donnie. If we were, 723 00:33:25,440 --> 00:33:27,000 Speaker 1: if we were hanging out right now, I would say 724 00:33:27,000 --> 00:33:29,160 Speaker 1: that to you. But you know what, I'm gonna refrain. 725 00:33:29,200 --> 00:33:31,840 Speaker 1: I'm gonna refrain. But on that note, Joel, we can 726 00:33:31,840 --> 00:33:33,560 Speaker 1: go ahead and take it back to the beer. On 727 00:33:33,600 --> 00:33:37,719 Speaker 1: this episode we had Killer Grove by talas Man Brewing Company, 728 00:33:37,760 --> 00:33:40,040 Speaker 1: and this one was donated to the show by Andy 729 00:33:40,160 --> 00:33:43,480 Speaker 1: out in Utah. Joeld, what were your thoughts, man? It 730 00:33:43,520 --> 00:33:46,200 Speaker 1: was light, it was weedy, it was juicy, had some 731 00:33:46,320 --> 00:33:49,320 Speaker 1: nice like blood orange zest coming through. I thought it 732 00:33:49,400 --> 00:33:51,280 Speaker 1: was kind of a perfect summer beer because it has 733 00:33:51,320 --> 00:33:53,880 Speaker 1: been hot as all get out around these parts, Matt, 734 00:33:54,160 --> 00:33:58,640 Speaker 1: and anything that's light and refreshing is yeah, is like 735 00:33:59,200 --> 00:34:01,480 Speaker 1: much appreciated right now. So yeah, big thanks to Andy 736 00:34:01,560 --> 00:34:03,960 Speaker 1: for sending that one our way. Yeah, Joe, this reminds 737 00:34:04,000 --> 00:34:05,400 Speaker 1: me of how much I love wheat beer. Is Like, 738 00:34:05,440 --> 00:34:08,080 Speaker 1: the more I drink them, the more I have especially 739 00:34:08,080 --> 00:34:10,400 Speaker 1: when they have different, you know, interesting flavors like this 740 00:34:10,480 --> 00:34:13,799 Speaker 1: going on. I really like them. Obviously, I love our 741 00:34:13,880 --> 00:34:16,400 Speaker 1: I p A s are are big stounts, but wheats 742 00:34:16,480 --> 00:34:18,239 Speaker 1: might be kind of pulling in third there and it 743 00:34:18,320 --> 00:34:20,480 Speaker 1: might be a new favorite style of mine. This one, 744 00:34:20,520 --> 00:34:22,759 Speaker 1: in particular, I was surprised at how much tartness there 745 00:34:22,800 --> 00:34:24,320 Speaker 1: was going on. I was. I was kind of expecting 746 00:34:24,320 --> 00:34:27,160 Speaker 1: a more sort of standard wheat beer. Like you said, 747 00:34:27,200 --> 00:34:29,879 Speaker 1: those sort of zesty notes that that orange brought really 748 00:34:29,880 --> 00:34:32,040 Speaker 1: brought some brightness to the beer, and the sort of 749 00:34:32,080 --> 00:34:34,680 Speaker 1: tartness that it had made it really fun to drink. 750 00:34:34,880 --> 00:34:37,120 Speaker 1: So I really enjoyed this one. Yeah, man, that one 751 00:34:37,239 --> 00:34:39,800 Speaker 1: was really good. Alright. So if you want show notes 752 00:34:39,840 --> 00:34:42,520 Speaker 1: for this episode, some links to some of the things 753 00:34:42,560 --> 00:34:45,480 Speaker 1: we mentioned, like getting your clue Report for free, which 754 00:34:45,480 --> 00:34:48,200 Speaker 1: will help you see what insures actually know about you, 755 00:34:48,640 --> 00:34:51,080 Speaker 1: which influences the kind of rates that you're seeing. Well, 756 00:34:51,120 --> 00:34:53,440 Speaker 1: you can check that out on our website, how to 757 00:34:53,520 --> 00:34:55,840 Speaker 1: money dot Com. And as always, we hope that you 758 00:34:55,960 --> 00:34:58,640 Speaker 1: enjoyed this episode and that you found it helpful. If 759 00:34:58,680 --> 00:35:00,440 Speaker 1: you did, we would love for you to leave a 760 00:35:00,520 --> 00:35:03,360 Speaker 1: review over at Apple Podcasts. Head over there, and we 761 00:35:03,400 --> 00:35:06,000 Speaker 1: would like to hear your kind words. I've always got 762 00:35:06,080 --> 00:35:09,360 Speaker 1: kind of high there, Joel. I think that's gonna be 763 00:35:09,400 --> 00:35:11,160 Speaker 1: it for this upisode. Man. Yeah. By the way, and 764 00:35:11,160 --> 00:35:13,319 Speaker 1: if people feel like there's something we could do better, 765 00:35:13,560 --> 00:35:15,160 Speaker 1: they can go to how to money dot com slash 766 00:35:15,280 --> 00:35:17,319 Speaker 1: do Better and they can drop us a line there. Right, 767 00:35:17,640 --> 00:35:20,640 Speaker 1: that's right. We always love hearing constructive criticism because, you 768 00:35:20,680 --> 00:35:22,959 Speaker 1: know what, we're not perfect. We're trying to do better 769 00:35:23,320 --> 00:35:27,400 Speaker 1: exactly always. Yeah, So Matt, until next time. Until next time, 770 00:35:27,840 --> 00:35:29,160 Speaker 1: Best friends Out, Friends Out,