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Speaker 1: Welcome to Had of Money. I'm Joel and I am Matt.

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Speaker 1: Today we're talking about paltry predictions, working for wealth and

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Speaker 1: Black Friday unfurled. That's right.

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Speaker 2: This is our Friday flight where we're going to get

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Speaker 2: to the most pressing stories that we've come across this

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Speaker 2: week and how they pertain to your finances. And you're

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Speaker 2: mentioning Black Friday Angel visions of like the nineties and

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Speaker 2: the two thousands, whe folks whould line up at the

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Speaker 2: store like you did back in the day to get

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Speaker 2: the flat screen. People don't do that anymore.

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Speaker 1: No, they don't.

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Speaker 2: I don't do that, at least I'm glad they don't.

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Speaker 2: Like I just don't go into stores hardly that often.

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Speaker 2: But where I do go is Costco. Did you see

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Speaker 2: that Costco's unveiling the little door scanner thing?

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Speaker 1: Or actually I went last week and they had them

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Speaker 1: set up. You have like scan your Costco ID on

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Speaker 1: your way in.

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Speaker 2: It's so dumb, because I'm sorry, I take it back Costco.

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Speaker 2: The lady in front of me her car because they

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Speaker 2: still have somebody there that's like attending to the machine

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Speaker 2: or whatever. And the lady in front of me her card,

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Speaker 2: it said that her membership was invalid or something like that,

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Speaker 2: and the lady was like, no, it's not. And then

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Speaker 2: the other lady was like, oh you can. You've been

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Speaker 2: coming and you've paid and had no problem registering or

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Speaker 2: uh checking out. She's like no, say okay, come on in.

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Speaker 1: They're still figuring out the kings, right, I guess, so

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Speaker 1: that should be generous there. So I think what Costco's

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Speaker 1: trying to do here, tell me if you think I'm wrong.

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Speaker 1: I think what they're trying to get that Netflix bump,

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Speaker 1: the cracking down on passwords, and Costco's trying to crack

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Speaker 1: down on membership sharing. And so they're thinking that they're

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Speaker 1: going to see a meaningful bump in in people signing.

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Speaker 2: Up for memberships here because just give somebody else your card.

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Speaker 1: No, because now it shows up on the screen what

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Speaker 1: your picture looks like when you That's the whole point.

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Speaker 2: So they can say I didn't know why they were

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Speaker 2: doing it.

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Speaker 1: I'm sorry, sir, this doesn't like you. This is somebody

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Speaker 1: else's membership. Well that's that's why your Costco card has

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Speaker 1: your picture on it, right, because you're supposed to show

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Speaker 1: him anyway. So it's just a bigger picture the door

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Speaker 1: when you walk to They're not always checking that that closely,

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Speaker 1: but they will be now with the scanner. So this

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Speaker 1: is like their technological ability to now say, oh, Matt's

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Speaker 1: coming in, that's actually Matt versus Matt's neighbor who he

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Speaker 1: lent to his membership card. Two.

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Speaker 2: Oh, I see, yeah, I'm curious to see if that works.

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Speaker 2: I will say, based on our conversation with Chris Hutchins recently,

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Speaker 2: can you hold up your your Apple pay your your

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Speaker 2: phone to be let in as well? Because he was

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Speaker 2: talking about how he puts his Costco card on his

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Speaker 2: phone on his Apple Pay, which makes sense that you

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Speaker 2: can do the Apple.

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Speaker 1: Pay, right. I thought he put it on his the

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Speaker 1: Costco app. There's a Costco app? Oh is that? What

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Speaker 1: are you saying?

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Speaker 2: Nothing, You're saying Apple pay.

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Speaker 1: No, you can put your Costco credit card on Apple pay,

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Speaker 1: but you can't put your membership on Apple pany. I

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Speaker 1: don't think. Oh.

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Speaker 2: I was thinking, okay, double click to pay slash double

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Speaker 2: click to also get in the store.

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Speaker 1: Yeah, that's what I want to be able to do.

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Speaker 1: I mean, I don't have to open up a separate app. Well, sorry,

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Speaker 1: Bud doesn't revolve around me, and my wish is no. Okay.

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Speaker 1: Well but oh by the way, Calamen was yesterday and

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Speaker 1: your your thing with your kiddo's is you pay them

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Speaker 1: to not eat candy, right, uh huh okay.

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Speaker 2: So that last year was the first year that we've

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Speaker 2: ever implemented that and it was crazy successful.

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Speaker 1: And who ends up eating this candy? Well? I do

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Speaker 1: like over the we still had you know what I

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Speaker 1: pay you to? You know what we did earlier this

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Speaker 1: week we literally threw out all of our.

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Speaker 2: Old candy because it's just I mean, it's stuff that's

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Speaker 2: old and you know, like you've had a Snickers bar

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Speaker 2: or something that's kind of been old and it sits there,

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Speaker 2: it gets all mixed in with the fruit flavors and

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Speaker 2: then it tastes all messed up.

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Speaker 1: Man.

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Speaker 2: I hate that. And so in some of that stuff,

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Speaker 2: I don't know how old that is. And so the

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Speaker 2: ability just to completely hit reset. Before the Halloween, the

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Speaker 2: new Halloween stash came rolling in, but the kids have

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Speaker 2: not yet fully sorted out all of the candy and

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Speaker 2: and how much they want to cash in essentially, But.

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Speaker 1: Yeah, no, I think it's a good plan and I

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Speaker 1: think for everyone else, though, who's says, Oh man, my

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Speaker 1: kids got so much candy. I wish they wouldn't need

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Speaker 1: all of it. Well, maybe you can incentivize them with money.

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Speaker 2: From a house standpoint part with someone. I don't want

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Speaker 2: them eating all that.

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Speaker 1: Oh yeah, no, it's it can be overload, man. I

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Speaker 1: mean I remember the first couple of days after trigger

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Speaker 1: treating when I was a kid, and it was just

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Speaker 1: like gorge Fest.

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Speaker 2: And I swear too, like in years past, this is

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Speaker 2: always when the sickness gets kicked off. Oh yeah, it's

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Speaker 2: right after Halloween, and it's it's it's not necessarily that

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Speaker 2: sugar is so bad for you, it's the fact that

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Speaker 2: that keeps you from the other healthier things that you

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Speaker 2: need to be.

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Speaker 1: You're filling up all your calories on crap. Yeah exactly.

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Speaker 2: Well, are y'all going to implement something similar.

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Speaker 1: The reason for the holiday? I don't know. I like

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Speaker 1: what you're doing, and I might. I think I'll at

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Speaker 1: least give them the option because that they see your

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Speaker 1: kids giving up a lot of their candy for money,

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Speaker 1: and I think they're like, I don't know if I

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Speaker 1: do the same thing, but I might give them a

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Speaker 1: least the option.

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Speaker 2: It's hard initially because their eyes are wide and it's

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Speaker 2: you know, it's a ton of fun. But after a

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Speaker 2: while they start realizing that, actually, maybe I will take.

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Speaker 1: The buy out. Yeah, ten cents apiece.

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Speaker 2: Ten cents apiece, and then for the for the bigger ones,

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Speaker 2: a quarter. Okay, So I'm willing to pay out even

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Speaker 2: more for the big ones here because some of the neighbors.

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Speaker 2: You know, you always hear about the nigh Oh, you

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Speaker 2: got to go to the neighborhood, because they hand out

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Speaker 2: the king size. But anything that's like, you know, like

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Speaker 2: the full size, anything bigger than the fun size, I'm

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Speaker 2: willing to pay a quarter for.

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Speaker 1: Makes sense? Yeah, all right it let's get to the

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Speaker 1: Friday flight, Matt, all the stories we found interesting this week.

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Speaker 1: Let's kick it off by talking about an investing prediction.

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Speaker 1: They're the good folks over Colden Sacks. I don't really

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Speaker 1: know anyone there, never talked to anyone at Golden Sex. Folks.

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Speaker 1: I can't imagine all of them are good. Some of them.

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Speaker 1: Maybe you're so generous, I know. Well, they just announced

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Speaker 1: that future market returns are likely to be muted over

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Speaker 1: the coming decade, basically saying Hey, we foresee the S

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Speaker 1: and P five hundred returning like three percent annualized over

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Speaker 1: the coming ten years, So every single year three percent returns.

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Speaker 1: That's basically one percent after inflation, which is pretty crummy.

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Speaker 1: So yeah, not if you hear that and you take

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Speaker 1: it to heart, you're like, that's not good. I would

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Speaker 1: hope my stock portfolio would do better than that. And

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Speaker 1: it's worse than any other prediction that you or I

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Speaker 1: have seen out there on the internets, which is interesting.

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Speaker 1: We talked about kind of predictions regularly on the show

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Speaker 1: because a lot of other market soothsayers or want to

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Speaker 1: be sooth sayers, they've been editing their market predictions for

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Speaker 1: this year upward, which is always amazing. It's like, well,

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Speaker 1: I predicted something at the beginning of the year, but

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Speaker 1: it's October and the market's been crushing. Can I revise

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Speaker 1: that thing now? Right? Right?

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Speaker 2: So isn't that called cheating? You're not allowed to do that, right.

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Speaker 1: So, at the beginning of the year, the average market

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Speaker 1: predictor was saying, I foresee a two percent return, something

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Speaker 1: very tepid over the coming year, and it's been much

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Speaker 1: much higher than that. So basically this prediction is saying

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Speaker 1: to keep your expectations low for longer term market returns,

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Speaker 1: And I guess it begs the question what should we

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Speaker 1: do with these sorts of prognostications, And I think you

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Speaker 1: and I we always come down on the side of

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Speaker 1: not much. You know, we have seen actually abnormally great

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Speaker 1: returns recently. This year has been amazing. Last year was

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Speaker 1: great in the stock market. But we got to take

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Speaker 1: the good years with the bad ones. It is. I

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Speaker 1: think there is certainly a possibility that Golden Sacks could

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Speaker 1: be spot on with this, where we could see a

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Speaker 1: decade that returns weren't so great after a decade of

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Speaker 1: fantastic returns. The truth is, we just don't know. And

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Speaker 1: it's just also important to note that the stock market,

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Speaker 1: it's not like it's completely detached from reality. I think

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Speaker 1: valuations are high, but our economy is doing far better

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Speaker 1: than other wealthy nations right now, so it's not like

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Speaker 1: stock market. Why is it so high? Like we can

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Speaker 1: there's at least a method to the madness. There's a

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Speaker 1: reason for it happening totally.

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Speaker 2: Yeah, And I will say, historically a return of three

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Speaker 2: percent or less for the decade that happens less than

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Speaker 2: ten percent of the time, so that's not very normal.

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Speaker 2: Could it happen again, yes, But these predictions they should

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Speaker 2: not influence the actions that you take today if you're

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Speaker 2: in the wealth building phase of your life. Again, every

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Speaker 2: single prediction about what the SMP would do this year

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Speaker 2: was way off. Predictions were that we'd see something like

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Speaker 2: a two percent increase in the SMP. But we're somewhere

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Speaker 2: around twenty percent right now. If you zoom out just

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Speaker 2: a little bit more and look at the past twelve months,

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Speaker 2: we're at thirty seven percent. Wow, thirty seven Like that's insane.

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Speaker 2: It's close to like four years worth of growth right there,

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Speaker 2: which I think just in the past twelve months.

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Speaker 1: He sat reversion of the mean With that Goldmen Sacks

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Speaker 1: is counting on or at least betting on.

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Speaker 2: I don't know though. I mean, like we are like

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Speaker 2: you and I were not permables, right like, we don't

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Speaker 2: think that we're are that we are on this endless

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Speaker 2: upward rise.

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Speaker 1: There are some.

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Speaker 2: Signs that US stocks, in particular, that they might be overvalued.

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Speaker 2: But trying to shift to savings because you think that

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Speaker 2: you're going to make more over there over the next

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Speaker 2: ten years. That sounds like a really bad choice. Yeah,

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Speaker 2: if you ask me, especially if you have decades to invest,

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Speaker 2: keep bellar cost averaging into the market. But I mean

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Speaker 2: if I was saving for as short to medium term

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Speaker 2: goal of let's say four to five years, guess what,

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Speaker 2: I'm still going to stick that market, that money into

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Speaker 2: the market if it was me personally, But especially if

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Speaker 2: we're talking about retirement savings, You're gonna be just fine,

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Speaker 2: stay diversified and continue to invest in the market.

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Speaker 1: Yeah, that's what we say here. Now, while we're talking

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Speaker 1: about investing, there was some interesting data recently that came

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Speaker 1: out about how different generations have different investing styles, and

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Speaker 1: we talked about what with Gene Twangy about intergenerational differences

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Speaker 1: in how we view money. That was kind of a

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Speaker 1: fun conversation. But those differences have largely been defined by

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Speaker 1: cultural markers and by macroeconomic events, specifically the most dramatic ones.

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Speaker 1: Gen Z for instance, Right, they've seen incredible stock gains

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Speaker 1: since they started investing, which means they're kind of keen

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Speaker 1: on investing. Hey, this is a good game to play

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Speaker 1: because it's helping me build my wealth. That's the good part.

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Speaker 1: I don't know, maybe It makes me think about millennials too,

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Speaker 1: in the Great Recession, graduating into a poor economic climate.

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Speaker 1: Maybe they're a little more conservative, and so gen Z,

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Speaker 1: as it turns out, is taking more of a gambling

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Speaker 1: mentality into how they invest. Josh Brown actually recently said

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Speaker 1: that very similar thing when he came on the show.

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Speaker 1: And essentially they're the robin Hood generation, right, and they

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Speaker 1: don't mind taking risky bets on s angle stocks and

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Speaker 1: crypto coins, NFTs anywhere, remember those things. Nobody talks about

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Speaker 1: NFTs anymore, Matt. I think they've largely gone by the wayside,

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Speaker 1: and a lot of do people care good written crypto

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Speaker 1: punk or whatever that all that stuff people.

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Speaker 2: Board apes man like it wasn't that long ago, but

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Speaker 2: it seems like forever.

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Speaker 1: It feel like.

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Speaker 2: On one hand, it's like, oh, we were talking about that,

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Speaker 2: not all that long ago. I can I still remember

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Speaker 2: the stories, Yeah, as we talked about it, But it

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Speaker 2: also seems like a lifetime ago because of how much

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Speaker 2: has changed when it comes to what folks are allocating

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Speaker 2: their funds towards.

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Speaker 1: Literally haven't heard those three letters put together in a

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Speaker 1: long time. Nobody seems to care, and I'm sure that

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Speaker 1: those things are worth a whole lot less, if not

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Speaker 1: completely worthless. But all of us have a bias because

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Speaker 1: of how we grew up, what we were taught about money,

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Speaker 1: what we've experienced, and then kind of what we've experienced

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Speaker 1: overall culturally and economically. But I think this is just

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Speaker 1: for us. Matt reading this, it makes me think that

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Speaker 1: people just need to look at a longer historical timeline

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Speaker 1: to be your guide when it comes to how you

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Speaker 1: invest one hundred percent, not just hey, what's happened over

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Speaker 1: the past year, two years, five years. If you're one

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Speaker 1: of those people who is risk averse, the truth is

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Speaker 1: taking no risk comes with its own risks as well,

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Speaker 1: namely inflation. Taking too much risk, on the other hand,

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Speaker 1: comes with the potential for big losses. So I guess slow,

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Speaker 1: steady risk appropriate. That would be our advice. That's psych

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Speaker 1: typically our advice on the show. But I see these

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Speaker 1: different generations kind of taking different tacks, and it's like,

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Speaker 1: I don't know, maybe more balanced view, balanced response from millennials,

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Speaker 1: agen Z and Uchen extras and boomers two is what's

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Speaker 1: called for.

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Speaker 2: Makes a ton of sense that we need to look

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Speaker 2: outside of our own personal experiences, even let's go back

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Speaker 2: even to another generation. Makes me think of the Silent

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Speaker 2: generation or the Greatest Generation. I don't know which one,

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Speaker 2: whatever it is that folks call it, but like the

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Speaker 2: hesitancy to invest in the market because of the Great Depression,

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Speaker 2: sticking money under your mattress as opposed to trusting in

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Speaker 2: actual financial institutions. But while we're on this note of investing,

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Speaker 2: morning Star they recently wrote a piece about trading platforms

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Speaker 2: that are increasingly incentivizing risk. And we're talking about gamification

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Speaker 2: here because these game like elements, they can be great

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Speaker 2: for incentivizing saving, but I think they can lead to

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Speaker 2: really poor behavior on the investing side, leading to more

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Speaker 2: frequent trading, leading to speculative bets. And again, let's revisit

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Speaker 2: a brokerage that's in the spotlight, Robin Hood. They're now

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Speaker 2: allowing folks to bet on the election on their platform.

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Speaker 1: I hate this.

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Speaker 2: We did an episode many years ago at this point

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Speaker 2: about how to level up your money game by using gamification,

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Speaker 2: but I just hate that it's such a slippery slope.

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Speaker 2: We're seeing more platforms, is it. Caulshy and Predicta is one,

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Speaker 2: But there are these new gambling market platforms that are

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Speaker 2: It's I don't like it for multiple reasons, obviously the

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Speaker 2: fact that folks are losing money, but I think a

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Speaker 2: lot of individuals see this as their sort of foray

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Speaker 2: into in this case politics, Right, it's like, well, I

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Speaker 2: don't know money where my mouth is. Well, yeah, But

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Speaker 2: the thing is it's less of a focus on policy,

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Speaker 2: and it's more of a focus on sort of the

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Speaker 2: pop cultural elements of it by just like, oh, let

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Speaker 2: me throw some money on that where the wind's blowing

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Speaker 2: right now. Yeah, I guess that's the part of it

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Speaker 2: that I hate. You're if you are sort of betting

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Speaker 2: in this way. I think people have a belief that

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Speaker 2: they are sort of being involved with politics, but in essence,

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Speaker 2: it's they're not at all. You see what I'm saying.

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Speaker 1: Yeah, our attention is being has been hacked by the

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Speaker 1: social media apps, and now our investing habits have been

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Speaker 1: hacked in some ways by at least certain companies trying

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Speaker 1: to get us to participate more in risk of your behavior.

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Speaker 1: So you're right, I think gamification can work in a

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Speaker 1: positive ways. There's some apps out there, thinking of like

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Speaker 1: Cube Money, Matt, that's one of those kind of budgeting,

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Speaker 1: banking apps that can help you use the envelope system

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Speaker 1: in a digital way. That's a great way to gamify

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Speaker 1: your finances. And then there are negative ways in which

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Speaker 1: we're being preyed on in the gamification sphere, such as

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Speaker 1: gambling on election or trading becoming a more frequent trader.

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Speaker 1: That is what's scary. So use the good ways, avoid

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Speaker 1: the bad ones to the best of your ability. Now,

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Speaker 1: let's talk about work for a second. At the risk

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Speaker 1: of sounding reductive, people make more money when they work

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Speaker 1: longer hours. No way. Yeah, it doesn't sound like rocket science,

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Speaker 1: does it. But Tyler Collen, who is like one of

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Speaker 1: my favorite economists, his.

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Speaker 2: Podcast is a very smart individual.

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Speaker 1: Yeah, great podcast. He wrote about this in Marginal Revolution. Yes,

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Speaker 1: his blog what's his name of his actual podcast Conversations

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Speaker 1: with Tyler Oh, that's right. Yeah, so both are good.

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Speaker 1: But he wrote about this in Bloomberg and it feels

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Speaker 1: like one of those things like does this need to

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Speaker 1: be said that if you work more you make more money? Well,

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Speaker 1: I don't know. The way he explains that I think

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Speaker 1: is helpful. He highlighted this recent study that economists did,

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Speaker 1: and the study found that a twenty percent variance in

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Speaker 1: lifetime earnings can be explained by a difference in the

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Speaker 1: number of hours that you work. Essentially, if you work

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Speaker 1: thirty five hours a week, your friend works forty five

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Speaker 1: hours a week over time, on average, they are going

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Speaker 1: to make more and compound their wealth more quickly than

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Speaker 1: you will. And as Tyler wrote in the piece, matt

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Speaker 1: He wrote, the decision to work harder operates on at

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Speaker 1: least two levels. First, you put in more total time,

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Speaker 1: which leads to higher lifetime earnings. Second, you invest more

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Speaker 1: in your human capital, which makes you more productive. Again,

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Speaker 1: this isn't something that's shocking, or wasn't I think understood

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Speaker 1: by many kind of intuitively. But it's interesting to see

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Speaker 1: some data attached to this common sense economic reality. And

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Speaker 1: that doesn't mean that I think everyone should go out

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Speaker 1: there and works seventy hours a week. Part of the

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Speaker 1: reason investing makes so much sense is because it can

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Speaker 1: allow you to work less. Right, so letting your money

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Speaker 1: work harder for you than you're working for yourself.

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Speaker 2: I feel like, so everyone's or not everyone, but a

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Speaker 2: lot of folks have heard of like the horseshoe theory.

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Speaker 2: I feel like this is a perfect illustration because there

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Speaker 2: are a lot of folks that are like, yeah, no, duh.

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Speaker 2: But then you get folks who are educated and they

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Speaker 2: start doing research and they start picking it apart and

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Speaker 2: they're like, well, actually, there's all these other factors that

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Speaker 2: play into it. There's don't forget about policy, don't think

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Speaker 2: about the systemic issues that we have when it comes

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Speaker 2: to working and earning more. But yeah, in this case, Tyler,

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Speaker 2: he's like digging into the data even more, and with

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Speaker 2: his research and the numbers and the data is able

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Speaker 2: to point out the fact that like, oh no, in

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Speaker 2: this case, our intuition is actually is actually correct.

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Speaker 1: Yeah, it makes me I think of Kobe Bryant back

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Speaker 1: in the day. He would talk about how I think

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Speaker 1: he used to work out three times a day, and

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Speaker 1: he's essentially saying, I'm so far ahead of everybody else

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Speaker 1: because of all the hard work I've put in there.

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Speaker 1: There's some truth to that. Yeah, even if you start

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Speaker 1: working out four times a day, you will never catch

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Speaker 1: up to me, is what he was saying to like

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Speaker 1: the younger basketball players. And yeah, hard work isn't everything,

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Speaker 1: but it's amazing how how impactful can be on your

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Speaker 1: wealth building journey.

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Speaker 2: Yeah, to a certain extent, it's hard to be just

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Speaker 2: putting the reps in, but there is a limit to

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Speaker 2: trading your time for money, especially for lower income earners.

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Speaker 2: And it's also important to note that hustle culture, like

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Speaker 2: essentially that's what we're talking about here, it can just

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Speaker 2: lead to burnout. It's going to be to live that

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Speaker 2: that knows to the grindstone lifestyle for too long. And

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Speaker 2: despite the fairly clear line that's that you can draw

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Speaker 2: between the hours that you're going to work and the

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Speaker 2: income that you're gonna earn, it's also important to work smart,

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Speaker 2: not just hard, right, So it's not just about putting

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Speaker 2: more hours in, but to actually think about like work

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Speaker 2: on the job, like not working solely within the job,

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Speaker 2: Like by working on the job, you're saying, how can

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Speaker 2: I actually make this thing better? But then also to

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Speaker 2: prioritize your life, not just your bank account, not just

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Speaker 2: your net worth. Because I think there might be seasons

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Speaker 2: where you do work more to earn more, but there

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Speaker 2: are also going to be other seasons will work takes

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Speaker 2: more of a back seat. But more than anything, I

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Speaker 2: think the takeaway from me is just to think about

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Speaker 2: this from a consistency standpoint, because I think about the

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Speaker 2: kind of life that I want to lead, and I

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Speaker 2: think about someone who might be going one hundred and

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Speaker 2: ten percent right, and by going one hundred ten percent,

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Speaker 2: you're earning like ten percent more and that's nice, but

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Speaker 2: you also have like zero margin in your life. Other

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Speaker 2: aspects of your life are falling apart, and maybe you

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Speaker 2: end up I can work like twenty five years in

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Speaker 2: thirty years in right, as opposed to imagine if around

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Speaker 2: year twenty year, like I don't this is I've been

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Speaker 2: going pretty hard. What if I dialed it back a

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Speaker 2: little bit? This is such a great argument for coast

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Speaker 2: fire right, So for all the financial independence folks out there,

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Speaker 2: and to say instead of going like I was plugging

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Speaker 2: away at one hundred percent, I'm going to step it

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Speaker 2: back to ninety In a couple of years. Oh, I'm

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Speaker 2: want to step it back to eighty percent. Imagine kind

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Speaker 2: of like gradual stepping off the pedal. Yes, And imagine

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Speaker 2: if like thirty thirty five years in you say, you

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Speaker 2: know what I want to work like at fifty percent.

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Speaker 2: But because of that, because of all that additional time,

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Speaker 2: maybe you're able to work for another decade. Maybe you're

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Speaker 2: able to work for another twenty years, and think about

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Speaker 2: the added benefit not only to you, like cognitively from

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Speaker 2: a community standpoint, but also from a financial standpoint, Like

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Speaker 2: earning fifty percent for another twenty years put you much

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Speaker 2: further ahead than working an extra ten percent beyond that

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Speaker 2: one hundred percent for a shorter period of a.

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Speaker 1: Lot of percentage just throw around. It's you never do.

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Speaker 2: Math and percentages on a podcast, But I'm just saying

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Speaker 2: that the ability to work for a longer period of

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Speaker 2: time at a diminished intensity, I think it's going to

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Speaker 2: lead to a much happier life for a lot of

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Speaker 2: folks in a better financial position.

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Speaker 1: Yeah. I think you're right as well. I think a

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Speaker 1: lot of people might read that and then be like,

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Speaker 1: oh cool, Tyler, so I should be working a lot more.

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Speaker 1: And I don't think that's what he's getting at. I

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Speaker 1: think he's just getting at an ultimate reality that work

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Speaker 1: is typically tied to income.

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Speaker 2: And I like the individual empowerment part of the message

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Speaker 2: that he's relaying here.

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Speaker 1: Yeah, and the truth is, if you want to earn more,

433
00:19:25,880 --> 00:19:29,080
Speaker 1: oftentimes it will involve working more. But you and I

434
00:19:29,119 --> 00:19:31,440
Speaker 1: were also in favor of balance, and so it's nice

435
00:19:31,480 --> 00:19:32,960
Speaker 1: to know that, and it's nice to know that during

436
00:19:32,960 --> 00:19:35,679
Speaker 1: certain segments of your life you might prioritize that and

437
00:19:35,720 --> 00:19:37,680
Speaker 1: at other times you might back off of work a

438
00:19:37,680 --> 00:19:40,240
Speaker 1: little bit because, guess what, you have been frugal, You've

439
00:19:40,240 --> 00:19:44,040
Speaker 1: paid attention to your investing, to your finances, and you

440
00:19:44,040 --> 00:19:46,399
Speaker 1: don't need to work as hard as everybody else around

441
00:19:46,440 --> 00:19:48,199
Speaker 1: you is likely doing. But Matt, we're going to get

442
00:19:48,240 --> 00:19:52,640
Speaker 1: to more on this episode, including what newlyweds want for

443
00:19:53,280 --> 00:19:56,560
Speaker 1: as a wedding gift. It certainly seems like the concept

444
00:19:56,600 --> 00:19:59,520
Speaker 1: of a wedding registry is dying. We'll talk about that

445
00:20:00,080 --> 00:20:01,000
Speaker 1: more right after this.

446
00:20:08,800 --> 00:20:11,040
Speaker 2: All right, Joe, we are back from the break. We've

447
00:20:11,080 --> 00:20:13,119
Speaker 2: got more to get to. It is now time for

448
00:20:13,160 --> 00:20:14,520
Speaker 2: the ludicrous headline.

449
00:20:14,160 --> 00:20:16,880
Speaker 1: Of the week. My favorite time, Yeah, is it literally

450
00:20:16,920 --> 00:20:17,840
Speaker 1: your favorite time? Like?

451
00:20:19,600 --> 00:20:21,800
Speaker 2: Our pick this week is from the New York Times

452
00:20:21,800 --> 00:20:26,480
Speaker 2: and the headline reads, homeowners tap into their rising home equity.

453
00:20:26,680 --> 00:20:29,159
Speaker 2: This sounds familiar, anel. It sounds like this is a

454
00:20:29,160 --> 00:20:31,359
Speaker 2: movie we've seen before and it doesn't end well.

455
00:20:31,400 --> 00:20:33,960
Speaker 1: Yeah, it's like the Second Joker, I Guess It, which

456
00:20:33,920 --> 00:20:36,399
Speaker 1: was apparently panned by all the by everyone, it was

457
00:20:36,400 --> 00:20:36,960
Speaker 1: a muscle.

458
00:20:37,119 --> 00:20:38,960
Speaker 2: Yeah, I didn't. I think I could have told you,

459
00:20:39,480 --> 00:20:42,040
Speaker 2: Like even just like in the initial the first production

460
00:20:42,080 --> 00:20:43,600
Speaker 2: meeting where they sat down and we're like, hey, this

461
00:20:43,640 --> 00:20:45,200
Speaker 2: is what we're thinking, right, I feel like I could

462
00:20:45,240 --> 00:20:46,240
Speaker 2: have saved them a whole lot of hearder.

463
00:20:46,320 --> 00:20:47,680
Speaker 1: This headline is the equivalent of that.

464
00:20:48,440 --> 00:20:50,720
Speaker 2: For everyone out there who owns a home, it's incredibly

465
00:20:50,720 --> 00:20:55,680
Speaker 2: exciting to see the value skyrocket, which directly impacts your

466
00:20:55,680 --> 00:20:58,680
Speaker 2: net worth. Maybe for you, it's like your favorite pastime

467
00:20:58,760 --> 00:21:01,879
Speaker 2: is hopping over to Zillo and checking out your estimate.

468
00:21:02,600 --> 00:21:04,640
Speaker 2: If you bought a home like four or five years

469
00:21:04,680 --> 00:21:07,560
Speaker 2: ago or the decade even before that, you've done incredibly

470
00:21:07,600 --> 00:21:10,119
Speaker 2: well for yourself. But what should you do with that

471
00:21:10,320 --> 00:21:13,879
Speaker 2: mountain of increased equity? Well, that's another matter. Balances on

472
00:21:13,920 --> 00:21:17,359
Speaker 2: helocks are rising quickly twenty percent over the past few years.

473
00:21:17,720 --> 00:21:21,040
Speaker 2: Home equity loans that have fixed rates are becoming more

474
00:21:21,119 --> 00:21:24,320
Speaker 2: popular this year as well. But once you take that

475
00:21:24,400 --> 00:21:27,320
Speaker 2: equity out and you spend it, well, you've now got

476
00:21:27,359 --> 00:21:30,120
Speaker 2: another recurring monthly bill in your life. It puts your

477
00:21:30,160 --> 00:21:34,800
Speaker 2: financial security at risk. And it is not that considering

478
00:21:34,840 --> 00:21:37,399
Speaker 2: a helock is never a good idea. It's just that

479
00:21:37,440 --> 00:21:39,879
Speaker 2: it rarely is for most folks. For the kind of

480
00:21:39,920 --> 00:21:42,040
Speaker 2: spending that most folks out there are being tempted into.

481
00:21:42,320 --> 00:21:45,919
Speaker 1: And I'm getting literally like solicited to take out money

482
00:21:46,160 --> 00:21:49,000
Speaker 1: from my banker credit union because they're saying, look at

483
00:21:49,040 --> 00:21:51,239
Speaker 1: all this home you have that is put it to use?

484
00:21:51,280 --> 00:21:51,639
Speaker 1: Is what they want.

485
00:21:51,800 --> 00:21:53,119
Speaker 2: I think that's one hundred percent of the reason. The

486
00:21:53,119 --> 00:21:55,840
Speaker 2: fact that there are so many mortgage servicers out there

487
00:21:55,880 --> 00:21:59,720
Speaker 2: and they're texting us, they're sending us the email blasts saying, hey,

488
00:21:59,720 --> 00:22:02,200
Speaker 2: it's so easy, right board they want the business, yes,

489
00:22:02,280 --> 00:22:04,280
Speaker 2: because I mean that's the business that they're in, is

490
00:22:04,359 --> 00:22:07,280
Speaker 2: to try to get more customers taking money out of

491
00:22:07,320 --> 00:22:10,040
Speaker 2: their homes, out of this piggy bank. And it's the

492
00:22:10,080 --> 00:22:12,960
Speaker 2: fact too that like nobody's b I shouldn't say nobody,

493
00:22:12,960 --> 00:22:14,960
Speaker 2: but like if you have a retirement account, you probably

494
00:22:14,960 --> 00:22:17,159
Speaker 2: feel worse for like tip making a four to win

495
00:22:17,240 --> 00:22:19,720
Speaker 2: k loan or cashing out a retirement account. It feels

496
00:22:19,720 --> 00:22:22,119
Speaker 2: like a more egregious move because it's literally labeled like

497
00:22:22,160 --> 00:22:24,920
Speaker 2: this is your retirement account, but your house, Oh it's

498
00:22:24,960 --> 00:22:27,000
Speaker 2: a it's a gray area. Who knows what you could

499
00:22:27,080 --> 00:22:28,600
Speaker 2: use this for? All sorts of things. Yeah, I think

500
00:22:28,720 --> 00:22:30,240
Speaker 2: I think you're right. And the thing is, we don't

501
00:22:30,240 --> 00:22:32,560
Speaker 2: actually have stats. We don't really know why people are

502
00:22:32,600 --> 00:22:34,880
Speaker 2: tapping into their home equity. I would be super curious

503
00:22:34,880 --> 00:22:37,800
Speaker 2: to see some sort of study about the main reasons

504
00:22:37,800 --> 00:22:39,640
Speaker 2: why people choose to take money out of their home.

505
00:22:40,000 --> 00:22:42,200
Speaker 2: If you're taking out like a small amount in order

506
00:22:42,240 --> 00:22:44,919
Speaker 2: to perform a minor bathroom renovation or something like that,

507
00:22:45,000 --> 00:22:46,880
Speaker 2: and then you've got this plan to pay it off

508
00:22:46,880 --> 00:22:49,199
Speaker 2: in twelve months or less, then I think you and

509
00:22:49,200 --> 00:22:51,080
Speaker 2: I could sign off on that, Matt. We might say

510
00:22:51,200 --> 00:22:53,840
Speaker 2: more power to you. You're using the helock for what

511
00:22:53,920 --> 00:22:57,359
Speaker 2: it was made for. And guess what, You've got a

512
00:22:57,359 --> 00:23:00,640
Speaker 2: bunch of equity in your home. Cool, using a little

513
00:23:00,680 --> 00:23:02,960
Speaker 2: bit of it to improve your home. It's not the

514
00:23:02,960 --> 00:23:04,960
Speaker 2: worst thing in the world. But I think other folks

515
00:23:05,000 --> 00:23:06,800
Speaker 2: are seeing dollar signs when they look at their house

516
00:23:07,040 --> 00:23:09,880
Speaker 2: and they're taking money out because they can, and because

517
00:23:09,880 --> 00:23:13,080
Speaker 2: someone told them they could. Mortgage rates, well, they're not

518
00:23:13,119 --> 00:23:15,080
Speaker 2: following like a whole lot of people expected them to.

519
00:23:15,400 --> 00:23:17,840
Speaker 2: And the rate on the helock it's not guaranteed to drop.

520
00:23:17,920 --> 00:23:19,200
Speaker 2: I think a lot of people are saying, oh, cool,

521
00:23:19,200 --> 00:23:20,840
Speaker 2: we're in this era now where interest rates are going

522
00:23:20,880 --> 00:23:22,440
Speaker 2: to go down, But are they going to go down

523
00:23:22,480 --> 00:23:24,000
Speaker 2: as much as a lot of people have predicted.

524
00:23:24,400 --> 00:23:27,000
Speaker 1: Maybe, maybe not. And so we're still talking about paying

525
00:23:27,119 --> 00:23:29,760
Speaker 1: like nine percent on money you borrow against your home.

526
00:23:30,280 --> 00:23:33,080
Speaker 1: So in our estimation almost all the time, it's better

527
00:23:33,119 --> 00:23:35,840
Speaker 1: to hold off and save up, save up the cash.

528
00:23:35,920 --> 00:23:38,040
Speaker 2: Yeah, and you mentioned like doing a small bathroom renovation,

529
00:23:38,119 --> 00:23:40,000
Speaker 2: and I think a lot of folks might be thinking, oh,

530
00:23:40,040 --> 00:23:43,639
Speaker 2: but I can deduct the interest that I'm paying towards that.

531
00:23:44,160 --> 00:23:47,040
Speaker 2: But was it the last week that the IRS they

532
00:23:47,080 --> 00:23:50,840
Speaker 2: just released the new numbers for next year standard deduction's

533
00:23:50,840 --> 00:23:54,080
Speaker 2: gone up. Yeah, thirty thousand for married couples, fifteen thousand

534
00:23:54,119 --> 00:23:55,360
Speaker 2: for single filers.

535
00:23:55,680 --> 00:23:56,680
Speaker 1: That's a really high bar.

536
00:23:57,040 --> 00:23:59,040
Speaker 2: And so I think the fact that, like that's in

537
00:23:59,080 --> 00:24:00,639
Speaker 2: the back of a lot of people minds. But the

538
00:24:00,640 --> 00:24:02,600
Speaker 2: fact is, I think fewer and fewer folks are going

539
00:24:02,640 --> 00:24:05,959
Speaker 2: to be itemizing their taxes, itemizing their deductions as opposed

540
00:24:05,960 --> 00:24:06,840
Speaker 2: to taking the standard.

541
00:24:07,000 --> 00:24:09,120
Speaker 1: But while I think a lot of people see that

542
00:24:09,200 --> 00:24:11,480
Speaker 1: and they say, oh, that's one more reason to take

543
00:24:11,520 --> 00:24:13,479
Speaker 1: money out of my home, and it's not because for

544
00:24:13,480 --> 00:24:15,719
Speaker 1: most people they don't qualify for that interestroduction.

545
00:24:15,800 --> 00:24:18,400
Speaker 2: It's a neot point. Well, while we're talking about houses,

546
00:24:18,560 --> 00:24:21,280
Speaker 2: guess what more folks want these days when they get married.

547
00:24:21,520 --> 00:24:24,400
Speaker 2: That's right, a house instead of a big wish list

548
00:24:24,440 --> 00:24:27,400
Speaker 2: of items that might go in their home. They would

549
00:24:27,480 --> 00:24:31,399
Speaker 2: rather have a down payment donation for the actual home

550
00:24:31,600 --> 00:24:36,960
Speaker 2: instead than not. Everyone's heard of the marriage website Slash magazine.

551
00:24:37,040 --> 00:24:39,760
Speaker 2: The Not found that the sheriff couples including a home

552
00:24:39,800 --> 00:24:43,359
Speaker 2: fund on their registries has increased sixty two percent since

553
00:24:43,560 --> 00:24:47,040
Speaker 2: twenty eighteen, which, personally, man, I think this is awesome

554
00:24:47,200 --> 00:24:51,400
Speaker 2: because cash it's easier to give the recipient. They can

555
00:24:51,600 --> 00:24:54,240
Speaker 2: do whatever they want with that money, whether it's to

556
00:24:54,240 --> 00:24:56,040
Speaker 2: put towards a down payment for a home or to

557
00:24:56,080 --> 00:24:56,760
Speaker 2: get something else.

558
00:24:57,200 --> 00:24:59,720
Speaker 1: That the old school actually one way of doing things right.

559
00:25:00,119 --> 00:25:02,800
Speaker 2: The Asian way as well, Like you got the red envelopes. Yeah,

560
00:25:02,920 --> 00:25:05,720
Speaker 2: there's something about here. Why is it our culture that's

561
00:25:05,720 --> 00:25:08,440
Speaker 2: so weird about that? Well, it's our culture. I don't know, man, Yeah,

562
00:25:08,440 --> 00:25:11,040
Speaker 2: there's there's I'm all for it because it's incredibly practical.

563
00:25:11,080 --> 00:25:11,520
Speaker 1: I love it.

564
00:25:11,560 --> 00:25:13,080
Speaker 2: But I think there are still going to be a

565
00:25:13,119 --> 00:25:14,680
Speaker 2: lot of other folks out there who are going to

566
00:25:14,720 --> 00:25:18,920
Speaker 2: feel that it's slightly uncouth to ask for cash donations

567
00:25:18,920 --> 00:25:22,879
Speaker 2: as or cash gifts versus an item something which is

568
00:25:22,880 --> 00:25:24,200
Speaker 2: not like there's a whole lot of thought that went

569
00:25:24,200 --> 00:25:26,280
Speaker 2: into it, right, Because if you make a registry, it's

570
00:25:26,320 --> 00:25:29,360
Speaker 2: like you weren't being thoughtful. You just bought this thing

571
00:25:29,359 --> 00:25:32,640
Speaker 2: for me instead. Is anhird roundabout thing that we do here.

572
00:25:32,680 --> 00:25:34,160
Speaker 1: The only reason I'm buying something I know you want

573
00:25:34,200 --> 00:25:36,359
Speaker 1: is because you told me you wanted it. So if

574
00:25:36,400 --> 00:25:38,200
Speaker 1: you tell me that you want cash for the down

575
00:25:38,200 --> 00:25:40,720
Speaker 1: payment for the house, cool, I mean, yeah, it saves

576
00:25:40,760 --> 00:25:43,040
Speaker 1: me some time, some hassle, and it also allows me

577
00:25:43,080 --> 00:25:45,120
Speaker 1: to give you the thing you actually really truly want.

578
00:25:45,160 --> 00:25:46,600
Speaker 2: Did you normally get a whole lot of gifts when

579
00:25:46,640 --> 00:25:47,200
Speaker 2: y'all got married?

580
00:25:47,240 --> 00:25:49,200
Speaker 1: Oh? Yeah, because we did the old school way with the.

581
00:25:49,160 --> 00:25:51,800
Speaker 2: Registry, remember spending all that time going back to bed

582
00:25:51,800 --> 00:25:54,399
Speaker 2: bath and beyond making the returns and actually getting the things.

583
00:25:54,280 --> 00:25:56,720
Speaker 1: That you needed or wanted, because we didn't want to

584
00:25:56,720 --> 00:25:59,320
Speaker 1: be like ungrateful weirdos who asked their cash. And so

585
00:25:59,320 --> 00:26:01,800
Speaker 1: I'm so glad that cultural element is changing because you

586
00:26:01,800 --> 00:26:03,960
Speaker 1: should be able to ask her that, and I would

587
00:26:03,960 --> 00:26:05,880
Speaker 1: like to give you that. Do you have any items

588
00:26:05,880 --> 00:26:08,480
Speaker 1: from that you received as wedding gifts that you still

589
00:26:08,560 --> 00:26:10,600
Speaker 1: use today or still have. Oh, for sure, like what

590
00:26:10,800 --> 00:26:13,440
Speaker 1: like my I can't think of lake crusette pot. For sure,

591
00:26:13,480 --> 00:26:15,520
Speaker 1: that's one of the best things. I'm sure there are

592
00:26:15,560 --> 00:26:17,200
Speaker 1: other things. I'm sure we have other pots and pans

593
00:26:17,200 --> 00:26:19,080
Speaker 1: and stuff like that, but maybe we have a cast

594
00:26:19,320 --> 00:26:22,800
Speaker 1: these great steak knives that are like French steak knives

595
00:26:22,840 --> 00:26:25,520
Speaker 1: that came from I want to say, Creighton Barrel and

596
00:26:25,800 --> 00:26:26,960
Speaker 1: they're great, very cool.

597
00:26:27,119 --> 00:26:29,680
Speaker 2: The one thing I can think of that we registered

598
00:26:29,720 --> 00:26:31,199
Speaker 2: for it. I was like, I can't believe we're registering

599
00:26:31,240 --> 00:26:34,159
Speaker 2: for like one hundred and fifty dollars trash can, but

600
00:26:34,280 --> 00:26:35,399
Speaker 2: we did, and so one got.

601
00:26:35,280 --> 00:26:35,719
Speaker 1: It for us.

602
00:26:36,119 --> 00:26:38,520
Speaker 2: We literally use it every day. Nice simple human you know,

603
00:26:38,560 --> 00:26:39,520
Speaker 2: like the stainless.

604
00:26:39,119 --> 00:26:40,160
Speaker 1: Stale foot operated.

605
00:26:40,320 --> 00:26:42,119
Speaker 2: I'm like, is this thing ever going to break? I

606
00:26:42,160 --> 00:26:44,400
Speaker 2: love it, But I don't think there is many things.

607
00:26:44,400 --> 00:26:46,639
Speaker 2: There are many things out there that they make us

608
00:26:46,400 --> 00:26:48,920
Speaker 2: solidly as they made that trash can. I can't wait

609
00:26:48,960 --> 00:26:51,440
Speaker 2: to have my kids come home, like whenever they're married

610
00:26:51,520 --> 00:26:52,480
Speaker 2: or something. We can to be like, is this the

611
00:26:52,480 --> 00:26:56,560
Speaker 2: same trash can when we were kids? Indeed children, it

612
00:26:56,600 --> 00:26:57,520
Speaker 2: is I.

613
00:26:57,440 --> 00:27:00,480
Speaker 1: Love that that remind you of your wedding day trash

614
00:27:00,480 --> 00:27:01,240
Speaker 1: can in your kitchen.

615
00:27:01,280 --> 00:27:02,760
Speaker 2: I just remember registering for it and being like, I

616
00:27:02,800 --> 00:27:05,880
Speaker 2: can't believe, like because you can buy yourself practical Matt,

617
00:27:05,960 --> 00:27:08,600
Speaker 2: a ten dollars rubber made trash can. But we're like,

618
00:27:08,600 --> 00:27:10,320
Speaker 2: you know what, I don't want to see that garbage anymore.

619
00:27:10,560 --> 00:27:12,640
Speaker 2: I'm a I'm about to be a married man. I'm

620
00:27:12,640 --> 00:27:13,720
Speaker 2: not living that bachelor.

621
00:27:13,680 --> 00:27:15,720
Speaker 1: Your own adult. Don't make me look at the trash.

622
00:27:15,760 --> 00:27:18,600
Speaker 1: I get what I want. Yeah, exactly, all right, let's

623
00:27:18,640 --> 00:27:21,520
Speaker 1: keep talking about real estate. Real estate data firm core

624
00:27:21,600 --> 00:27:25,400
Speaker 1: Logic says that most homeowners don't have enough homeowners insurance,

625
00:27:25,840 --> 00:27:28,919
Speaker 1: and if there's anything we've learned Matt from the devastating

626
00:27:28,920 --> 00:27:32,040
Speaker 1: storms in the Southeast recently in some of our favorite

627
00:27:32,080 --> 00:27:35,280
Speaker 1: towns close by, is to check your insurance policy to

628
00:27:35,359 --> 00:27:37,360
Speaker 1: make sure you have enough coverage, and to make sure

629
00:27:37,359 --> 00:27:39,840
Speaker 1: that you have the right kind of coverage too. The

630
00:27:39,880 --> 00:27:44,160
Speaker 1: cost of building materials and labor have risen significantly, which

631
00:27:44,200 --> 00:27:46,680
Speaker 1: means now is a great time to double check your coverage.

632
00:27:47,040 --> 00:27:49,840
Speaker 1: Make sure you have what's known as replacement cost coverage,

633
00:27:49,960 --> 00:27:52,800
Speaker 1: which could be actually more than the actual value of

634
00:27:52,840 --> 00:27:56,320
Speaker 1: your home, because the cost to rebuild your home could

635
00:27:56,400 --> 00:27:58,959
Speaker 1: be more than what Zillo you mentioned. This es meam,

636
00:27:59,040 --> 00:28:00,840
Speaker 1: that could be more than what the z estimate is right.

637
00:28:01,320 --> 00:28:04,800
Speaker 1: Increasing your coverage could raise your premiums. Yes, it could

638
00:28:04,880 --> 00:28:07,720
Speaker 1: cost more to have that insurance now, but it's crucial

639
00:28:07,720 --> 00:28:10,120
Speaker 1: to budget for that because the whole point of insurance

640
00:28:10,160 --> 00:28:12,800
Speaker 1: is to be covered in case something catastrophic happens, and

641
00:28:12,840 --> 00:28:15,920
Speaker 1: so you want to make sure you actually have enough coverage.

642
00:28:16,040 --> 00:28:19,280
Speaker 1: Trying to get the absolute lowest price could be cheap,

643
00:28:19,320 --> 00:28:20,760
Speaker 1: not frugal, that's right.

644
00:28:20,880 --> 00:28:24,360
Speaker 2: So on the flip side of the insurance discussion, Joe,

645
00:28:24,400 --> 00:28:28,360
Speaker 2: let's talk about car insurance teens. They are more reticent

646
00:28:28,440 --> 00:28:32,399
Speaker 2: to get their driver's license these days than in decades past. Personally,

647
00:28:32,440 --> 00:28:34,760
Speaker 2: that kind of bums me out that you know, less

648
00:28:34,840 --> 00:28:36,879
Speaker 2: risk taking that whole thing. But it actually might be

649
00:28:36,920 --> 00:28:38,920
Speaker 2: a good thing for the parents, at least from a

650
00:28:38,920 --> 00:28:41,960
Speaker 2: financial perspective. Friend of the show, Ron Lieber, he's been

651
00:28:42,000 --> 00:28:45,240
Speaker 2: writing in the Times regularly about how much it's costing

652
00:28:45,280 --> 00:28:49,080
Speaker 2: families to ensure their fleet of vehicles. Which there's your

653
00:28:49,080 --> 00:28:52,360
Speaker 2: first problem, right, if you have more more more vehicles

654
00:28:52,880 --> 00:28:55,000
Speaker 2: cost vehicles. Yeah, he taught with some families that have

655
00:28:55,040 --> 00:28:57,560
Speaker 2: like three or four kids who are paying twenty thousand

656
00:28:57,640 --> 00:28:59,960
Speaker 2: dollars a year for car insurance a loan.

657
00:29:00,240 --> 00:29:01,040
Speaker 1: Make any sense to me?

658
00:29:01,080 --> 00:29:03,760
Speaker 2: Which is mine? Does that happen my buddy when he's

659
00:29:03,800 --> 00:29:05,480
Speaker 2: playing twelve thousand a year? And I thought that that

660
00:29:05,600 --> 00:29:06,120
Speaker 2: was nuts?

661
00:29:06,240 --> 00:29:06,760
Speaker 1: That is nuts.

662
00:29:06,760 --> 00:29:08,560
Speaker 2: And they are in a similar situation where they've got

663
00:29:08,600 --> 00:29:12,480
Speaker 2: a bunch of vehicles and a bunch of drivers. Ron himself,

664
00:29:12,520 --> 00:29:14,640
Speaker 2: he's been trying to shop his plan to save money,

665
00:29:14,840 --> 00:29:17,920
Speaker 2: but even still to no avail. But so what is

666
00:29:17,960 --> 00:29:20,560
Speaker 2: it that you can do out there? Well, ask about

667
00:29:20,640 --> 00:29:21,959
Speaker 2: good grade discounts.

668
00:29:22,680 --> 00:29:24,400
Speaker 1: Your child is a good student, uh huh.

669
00:29:24,400 --> 00:29:26,840
Speaker 2: And so specifically these are some pointers you have kids,

670
00:29:27,080 --> 00:29:29,840
Speaker 2: but any other discounts that might be available, We want

671
00:29:29,880 --> 00:29:32,680
Speaker 2: you to leave no stone unturned, but then have your

672
00:29:32,760 --> 00:29:33,920
Speaker 2: kid participate in the.

673
00:29:33,920 --> 00:29:36,520
Speaker 1: Costs, especially if they get a ticket.

674
00:29:36,600 --> 00:29:38,840
Speaker 2: Point out the like, these are things that they don't

675
00:29:38,840 --> 00:29:41,120
Speaker 2: necessarily know, and they're just, you know, they're just kind

676
00:29:41,160 --> 00:29:42,760
Speaker 2: of thinking about the things that matter to them that.

677
00:29:42,800 --> 00:29:44,880
Speaker 1: Might they take it for granted that they yeah, exactly

678
00:29:44,880 --> 00:29:45,880
Speaker 1: that they care about.

679
00:29:46,120 --> 00:29:48,600
Speaker 2: But if you're like, hey, by the way, if you

680
00:29:48,640 --> 00:29:51,680
Speaker 2: ever get a ticket that's coming out of your bank account.

681
00:29:52,040 --> 00:29:54,560
Speaker 2: I think that right there, like that alone can help

682
00:29:54,600 --> 00:29:57,360
Speaker 2: them to drive a little bit more cautiously. I've even

683
00:29:57,440 --> 00:29:59,280
Speaker 2: noticed even like when I'm driving, like when I'm taking

684
00:29:59,320 --> 00:30:02,320
Speaker 2: the kids to school, they'll look up ahead and see

685
00:30:02,400 --> 00:30:04,680
Speaker 2: like the light they know it's getting ready to turn yellow,

686
00:30:04,720 --> 00:30:06,560
Speaker 2: and so those say like, go go, go go, because

687
00:30:06,560 --> 00:30:08,840
Speaker 2: they like get into school early to see their friends

688
00:30:08,880 --> 00:30:11,280
Speaker 2: and whatnot. And I'm like, no, I'm realizing, like we

689
00:30:11,320 --> 00:30:13,320
Speaker 2: have to start setting a better example, or I do

690
00:30:13,400 --> 00:30:17,120
Speaker 2: at least like now. And to mention that decay, She's like, actually,

691
00:30:17,160 --> 00:30:20,600
Speaker 2: it's good for them to see us like not constantly

692
00:30:20,640 --> 00:30:22,719
Speaker 2: toe of the line. But it's a reminder that they

693
00:30:22,760 --> 00:30:25,800
Speaker 2: learn from seeing how we drive as well. But again

694
00:30:25,880 --> 00:30:28,200
Speaker 2: for it to also be a topic of conversation as well,

695
00:30:28,200 --> 00:30:30,800
Speaker 2: and for if you've got teenage drivers, for them to

696
00:30:30,840 --> 00:30:32,800
Speaker 2: know that, like, hey, you're gonna be on the hook

697
00:30:32,840 --> 00:30:35,880
Speaker 2: if if you get a speeding ticket, yeah, my moving violation.

698
00:30:36,080 --> 00:30:39,680
Speaker 1: Sure. My nephew just turned sixteen and he is in

699
00:30:39,680 --> 00:30:42,400
Speaker 1: that crowd who's less interested in driving, so he's been

700
00:30:42,400 --> 00:30:45,560
Speaker 1: holding off. And I know my sister and brother in

701
00:30:45,680 --> 00:30:48,320
Speaker 1: law have Actually I think that they'd be fine with

702
00:30:48,400 --> 00:30:50,520
Speaker 1: him going ahead and getting the license and moving on

703
00:30:50,600 --> 00:30:54,360
Speaker 1: with driving and taking himself places. But at the same time,

704
00:30:54,760 --> 00:30:58,120
Speaker 1: the cost is real and significant, and so they have

705
00:30:58,520 --> 00:30:59,880
Speaker 1: I think got in the quote. They kind of know

706
00:31:00,080 --> 00:31:01,800
Speaker 1: how much more it's gonna cost, and they're.

707
00:31:02,160 --> 00:31:03,200
Speaker 2: Racing themselves a little bit.

708
00:31:03,240 --> 00:31:05,800
Speaker 1: They're like, take your time, sweetie. However, you don't have

709
00:31:05,840 --> 00:31:08,080
Speaker 1: to get your license anytime soon because it is so

710
00:31:08,320 --> 00:31:11,880
Speaker 1: much more expensive data team to your policy. So this

711
00:31:11,960 --> 00:31:14,120
Speaker 1: is brand new territory for us. But pretty much like

712
00:31:14,160 --> 00:31:17,520
Speaker 1: once you have a licensed teenager, you have to add

713
00:31:17,560 --> 00:31:19,920
Speaker 1: them to the plan, I'm pretty sure in most states,

714
00:31:20,000 --> 00:31:22,600
Speaker 1: which means by default, like you are automatically going to

715
00:31:22,640 --> 00:31:26,400
Speaker 1: see your premium skyrocket. I think I'm gonna certainly encourage

716
00:31:26,440 --> 00:31:29,400
Speaker 1: them to get their permit, but maybe we don't ever

717
00:31:29,440 --> 00:31:32,280
Speaker 1: get their light, not ever, and I'm gonna make them

718
00:31:32,360 --> 00:31:34,400
Speaker 1: drive all the time when we're going. Is this frugal

719
00:31:34,440 --> 00:31:37,280
Speaker 1: or cheap? It depends on how much it's gonna cost,

720
00:31:37,280 --> 00:31:38,800
Speaker 1: and if they want to partake in the cost, and.

721
00:31:38,920 --> 00:31:40,680
Speaker 2: How long can you hang on to just the driver's

722
00:31:40,720 --> 00:31:42,800
Speaker 2: permit where they're just learning how to drive, as opposed

723
00:31:42,800 --> 00:31:45,480
Speaker 2: to them being a fully fledged independent driver where we

724
00:31:45,520 --> 00:31:48,000
Speaker 2: have to add them onto the on the plan. Right,

725
00:31:48,120 --> 00:31:49,120
Speaker 2: it's just crazy.

726
00:31:48,880 --> 00:31:51,160
Speaker 1: Looking ahead when you look at kind of what's happened

727
00:31:51,200 --> 00:31:54,360
Speaker 1: with inflation over the past few years. Car insurance is

728
00:31:54,400 --> 00:31:57,080
Speaker 1: one of the scariest parts of what's happened on that front.

729
00:31:57,320 --> 00:31:59,080
Speaker 1: I know it's freaking out a lot of people and

730
00:31:59,080 --> 00:32:02,000
Speaker 1: it's testing a lot of budget. Let's talk about Black Friday, Matt.

731
00:32:02,000 --> 00:32:06,200
Speaker 1: Black Friday continues to evolve. It's no longer a day.

732
00:32:06,320 --> 00:32:09,600
Speaker 1: It's no longer the day after Thanksgiving. Now it's this season.

733
00:32:09,920 --> 00:32:13,400
Speaker 1: It's an extended period of time where different retailers are

734
00:32:13,440 --> 00:32:18,040
Speaker 1: offering sales and discounts. So, yeah, you don't have to

735
00:32:18,280 --> 00:32:20,480
Speaker 1: wake up at five am any longer to get the

736
00:32:20,640 --> 00:32:22,680
Speaker 1: terrific deal on a flat screen TV or a computer

737
00:32:22,760 --> 00:32:25,400
Speaker 1: or something like that, which I think is good in

738
00:32:25,440 --> 00:32:28,080
Speaker 1: some ways, in bad and others. Walmart just announced that

739
00:32:28,120 --> 00:32:31,280
Speaker 1: it's going to have three distinct phases of Black Friday.

740
00:32:31,720 --> 00:32:34,800
Speaker 1: We won't go over the specifics because it varies depending

741
00:32:34,800 --> 00:32:36,760
Speaker 1: on whether or not you're shopping online or in store,

742
00:32:37,000 --> 00:32:39,000
Speaker 1: whether or not you're all Walmart Plus member, they will

743
00:32:39,040 --> 00:32:42,920
Speaker 1: have access to extra deals that others will not. The

744
00:32:42,960 --> 00:32:45,440
Speaker 1: best deals are going to start though around November eleventh,

745
00:32:45,480 --> 00:32:47,880
Speaker 1: so multiple weeks in front of Thanksgiving. We're talking about

746
00:32:47,880 --> 00:32:51,320
Speaker 1: a few weeks in front of Thanksgiving. This is I

747
00:32:51,320 --> 00:32:53,760
Speaker 1: think a call to pay attention to sales, to keep

748
00:32:53,760 --> 00:32:56,960
Speaker 1: an eye on prices so that you're not overspending. You

749
00:32:57,040 --> 00:32:58,880
Speaker 1: might find that you can get a refund if the

750
00:32:58,920 --> 00:33:01,000
Speaker 1: price goes down after the by the way, if you're

751
00:33:01,000 --> 00:33:03,800
Speaker 1: still paying attention to prices and what's happening with them,

752
00:33:04,200 --> 00:33:07,320
Speaker 1: but also be careful because you can easily overspend.

753
00:33:07,520 --> 00:33:09,240
Speaker 2: Yeah, it kind of feels like a slippery slope because

754
00:33:09,280 --> 00:33:10,960
Speaker 2: once you start looking at the deals, you start thinking,

755
00:33:10,960 --> 00:33:13,400
Speaker 2: well I need that, yeah, you know, and more than

756
00:33:13,440 --> 00:33:15,320
Speaker 2: anything else, I think what we would encourage folks is

757
00:33:15,360 --> 00:33:18,680
Speaker 2: that try to consume less, challenge yourself to find other

758
00:33:18,720 --> 00:33:20,520
Speaker 2: ways of spending your money.

759
00:33:20,280 --> 00:33:22,200
Speaker 1: And if there's a couple things you actually want, Matt,

760
00:33:22,240 --> 00:33:24,560
Speaker 1: you can do like a deal alert in a website

761
00:33:24,560 --> 00:33:27,160
Speaker 1: like slick Deals, so if you know the exact item,

762
00:33:27,280 --> 00:33:29,360
Speaker 1: put it in there and then they'll notify you when

763
00:33:29,400 --> 00:33:31,680
Speaker 1: of the price drops, so you're not like constantly looking

764
00:33:31,720 --> 00:33:32,960
Speaker 1: and prousing attempted.

765
00:33:32,560 --> 00:33:35,280
Speaker 2: To buy Stuff've never set up these parameters these filters

766
00:33:35,320 --> 00:33:37,320
Speaker 2: before and slick deals that might have to get that

767
00:33:37,320 --> 00:33:39,680
Speaker 2: a shot. So if you are going to get out

768
00:33:39,680 --> 00:33:41,920
Speaker 2: there and you know you're looking for something specific, let's

769
00:33:41,960 --> 00:33:45,880
Speaker 2: talk about comparing the best prices between different retailers. One

770
00:33:45,880 --> 00:33:50,240
Speaker 2: of Walmart's biggest competitors is Amazon and Kiplinger. They just

771
00:33:50,280 --> 00:33:52,760
Speaker 2: wrote an article about which of the two, which of

772
00:33:52,800 --> 00:33:56,560
Speaker 2: the mammoth retailers is more affordable, and it turns out

773
00:33:56,560 --> 00:34:00,360
Speaker 2: that Amazon they win most of the time, although so

774
00:34:00,360 --> 00:34:01,880
Speaker 2: so keep that in mind. Ams on the wind most

775
00:34:01,920 --> 00:34:04,720
Speaker 2: of the time. But prices are the exact same the

776
00:34:04,840 --> 00:34:07,480
Speaker 2: vast majority of time. Seventy percent of the time the

777
00:34:07,480 --> 00:34:10,520
Speaker 2: prices are basically the same. But this is just another

778
00:34:10,640 --> 00:34:12,960
Speaker 2: reminder to price check if you if you do know

779
00:34:13,040 --> 00:34:16,520
Speaker 2: that you're gonna buy something at the very least, check

780
00:34:16,560 --> 00:34:18,560
Speaker 2: with one of the other major retailers, and.

781
00:34:18,440 --> 00:34:20,440
Speaker 1: They're often like price matching each other. So it's like

782
00:34:20,719 --> 00:34:23,520
Speaker 1: killer sale over here. Well, all these other stores are

783
00:34:23,520 --> 00:34:25,080
Speaker 1: going to jump in and try to offer the same price.

784
00:34:25,120 --> 00:34:27,280
Speaker 2: Yeah, and you mentioned slick deals. Don't forget using different

785
00:34:27,280 --> 00:34:30,919
Speaker 2: extensions and sites like honey or Camel Camel Camel if

786
00:34:31,400 --> 00:34:33,560
Speaker 2: as other ways to put some of those price alerts

787
00:34:33,640 --> 00:34:35,440
Speaker 2: or just to look back at the price history of

788
00:34:35,480 --> 00:34:38,400
Speaker 2: certain items, the ability to look at not just the MSRP,

789
00:34:39,040 --> 00:34:41,839
Speaker 2: but what the actual price of that item was, because yeah,

790
00:34:41,880 --> 00:34:43,640
Speaker 2: maybe it's a deal now, but actually last week it

791
00:34:43,719 --> 00:34:46,160
Speaker 2: was an even better deal and you just missed out.

792
00:34:46,200 --> 00:34:47,840
Speaker 2: You just need to wait a few more weeks for

793
00:34:47,920 --> 00:34:48,799
Speaker 2: it to drop back down.

794
00:34:48,880 --> 00:34:50,680
Speaker 1: A lot of marketing, a lot of cloudiness, and the

795
00:34:50,680 --> 00:34:54,040
Speaker 1: prices these days, especially online, So that'll help kind of

796
00:34:54,040 --> 00:34:56,680
Speaker 1: cut through the bs I guess, so that you can

797
00:34:56,719 --> 00:34:58,440
Speaker 1: actually know, well, is this a deal or is it not?

798
00:34:58,920 --> 00:35:00,880
Speaker 1: Checking the previous price history helps.

799
00:35:00,719 --> 00:35:03,160
Speaker 2: A lot, but chances are you probably need less stuff

800
00:35:03,520 --> 00:35:04,600
Speaker 2: just overall, don't we all?

801
00:35:05,080 --> 00:35:05,319
Speaker 1: We do?

802
00:35:05,520 --> 00:35:07,359
Speaker 2: I do, I'm trying to. I mean, we are trying

803
00:35:07,360 --> 00:35:09,319
Speaker 2: to spend so much more, not trying to spend more

804
00:35:09,400 --> 00:35:10,960
Speaker 2: when we are looking to spend, like as we're looking

805
00:35:10,960 --> 00:35:13,240
Speaker 2: ahead to the holidays, like we are, we've already purchased

806
00:35:13,239 --> 00:35:16,360
Speaker 2: tickets because we're gonna focus on trying to do more

807
00:35:16,440 --> 00:35:20,239
Speaker 2: experiences with the kids as opposed to just filling the

808
00:35:20,280 --> 00:35:22,160
Speaker 2: house with stuff that we're just like, oh.

809
00:35:22,160 --> 00:35:24,520
Speaker 1: Why did we why did we sign ourselves up for this?

810
00:35:24,640 --> 00:35:27,239
Speaker 1: And then the rooms are an awful mess. And yeah,

811
00:35:27,520 --> 00:35:30,319
Speaker 1: and kids are like where's my stuff failure as well,

812
00:35:30,320 --> 00:35:31,520
Speaker 1: because they're just like oh, because.

813
00:35:31,320 --> 00:35:33,439
Speaker 2: Then they can't keep up with stuff and can't clean

814
00:35:33,440 --> 00:35:33,880
Speaker 2: their rooms.

815
00:35:33,960 --> 00:35:35,759
Speaker 1: All right, that's gonna do it for this one, Matt. Yeah,

816
00:35:35,840 --> 00:35:37,800
Speaker 1: we'll put links to some of the stuff we mentioned

817
00:35:37,880 --> 00:35:40,279
Speaker 1: up in the show notes on our website at howtomoney

818
00:35:40,320 --> 00:35:43,600
Speaker 1: dot com. But until next time, best friends Out, Best

819
00:35:43,640 --> 00:35:44,600
Speaker 1: Friends Out,