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

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Speaker 1: and today we are answering your listener questions. All right, man,

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Speaker 1: I'm sorry I said my name a little kind of

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Speaker 1: combative there. I don't know what. No, I'm not managing.

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Speaker 1: I think I'm meant to say my name is Matt.

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Speaker 1: There you go. But when I said it out loud,

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Speaker 1: it kind of came out as like I was mad.

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Speaker 1: I'm not mad. I'm excited to be here with you. Man.

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Speaker 1: We Uh, We've got a great listener question episode. Every

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Speaker 1: other Monday we take listener questions and we've got five

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Speaker 1: good ones. Man. On this episode, we're gonna answer one

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Speaker 1: about a pool. There's a guy he's he's kind of

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Speaker 1: wondering whether or not he should have a pool in

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Speaker 1: the backyard, or maybe if they shouldn't move to accommodate that.

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Speaker 1: In particular, I'm excited because I know this is something

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Speaker 1: that y'all have considered a little bit. You guys love

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Speaker 1: the pool, and so I'm excited to talk about this

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Speaker 1: for you guys. But you've mostly been trying to convince

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Speaker 1: me to get one and spend my money. Which the

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Speaker 1: best pool is the one that you don't have to

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Speaker 1: clean yourself and pay for or pay for. But we've

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Speaker 1: got that question. We've got one about paying off a

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Speaker 1: car loan, as well as multiple streams of income and

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Speaker 1: our thoughts on that. I'm excited to tackle all of

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Speaker 1: those questions today. Many should be good, a lot of

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Speaker 1: good questions from our listeners, which I always appreciate. Yeah,

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Speaker 1: but first, man, I wanted to ask you on the

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Speaker 1: show here. I know we've talked about the tooth fairy before,

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Speaker 1: but we can and we've had to revisit that because

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Speaker 1: our kids have finally started losing their teeth. Our oldest,

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Speaker 1: her teeth do not want to come out of her mouth.

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Speaker 1: They have not gotten loose at all. And finally one

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Speaker 1: started wiggling a few years ago and she finally lost

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Speaker 1: her first two. And she's eighteen, so she's like a

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Speaker 1: grown adult, but all of her teeth are tiny. Uh.

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Speaker 1: It's one thing I am kind of like gonna miss

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Speaker 1: because I feel like little kids when they have the tiny,

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Speaker 1: little teeth, it's kind of like the last holdover of

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Speaker 1: them being little kids. You know, once they start getting

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Speaker 1: those big kid teeth in, it's all downhill from there.

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Speaker 1: But I wanted to ask you. I couldn't remember how

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Speaker 1: much y'all paid per tooth because that's something that was

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Speaker 1: a bridge that we had a cross recently. And I'll

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Speaker 1: go ahead and say that we decided on one dollar,

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Speaker 1: which sounds kind of cheap. Yeah, I'm not sure what

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Speaker 1: the going great is for the tooth ray right now,

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Speaker 1: we're doing a buck fifty, mostly because my kids like

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Speaker 1: the bills and the coins, and so we're like, all right,

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Speaker 1: buck fifty kind of works, works nicely, nice get a

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Speaker 1: little combination of both. Well, okay, yeah, so we we

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Speaker 1: went we decided to go with the dollar. But we

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Speaker 1: were a little worried that we were being cheap, because

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Speaker 1: like a dollar doesn't that doesn't get you far these days,

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Speaker 1: you know. But what we decided, we we we thought

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Speaker 1: ahead and we realized that man, we've got four kids,

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Speaker 1: and that is a lot of teeth in our future

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Speaker 1: that we're gonna have to pay money for, which sounds

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Speaker 1: kind of silly, you know when you say it out loud.

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Speaker 1: And so we're like, you know what, we don't have

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Speaker 1: to spend a lot of money. What if instead we

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Speaker 1: just kind of make it extra special? And this is

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Speaker 1: mostly Kate saying this, And so what we did was

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Speaker 1: we created this little package, you know, like a little

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Speaker 1: tooth fairy package, four quarters, stacked them up on top

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Speaker 1: of each other, made a little package. But before we

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Speaker 1: packaged it, Kate sprinkled, uh, put a little bit of

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Speaker 1: glue on there, like real lightly and then sprinkled a

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Speaker 1: little bit of glitter so that the the glitter would

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Speaker 1: stick to the quarters to make it extra special. And

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Speaker 1: we determined that that was a way for us to

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Speaker 1: kind of go the frugal route, not be cheap. In

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Speaker 1: this case. We felt that finding a way to package

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Speaker 1: it and make it extra special was away like that

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Speaker 1: was gonna mean more to our girls because obviously they're

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Speaker 1: all like gathered around, you know, as she was unwrapping it,

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Speaker 1: and so it was a fun experience for all of them.

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Speaker 1: But what are your thoughts on that? Yeah, I think

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Speaker 1: it's a great move man for it man, Yeah, it's not.

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Speaker 1: It's not all about the amount of money they get,

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Speaker 1: And I think it's really important to to share with

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Speaker 1: our kids how we can make everyday things more fun

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Speaker 1: and how even something like the tooth Fairy it's not

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Speaker 1: necessarily about how much money she brings. But it's kind

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Speaker 1: of about the excitement and the whole experience. Yeah, exactly.

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Speaker 1: And I think, yeah, with a little bit of gold

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Speaker 1: glitter and a little packaging, you can make a one

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Speaker 1: dollar go a really long way. And I think, yeah,

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Speaker 1: especially with our kids, there's a whole lot of areas

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Speaker 1: where we can do that, where it's not necessarily the

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Speaker 1: dollar amount that becomes the most crucial play. It's how

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Speaker 1: we build things up, it's how we talk about them,

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Speaker 1: and then it's also how we package stuff. And yeah,

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Speaker 1: I think oftentimes the tiniest gifts can go the furtherest

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Speaker 1: way and can be the most meaningful and memorable gifts

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Speaker 1: that our kids received in our too Fairy. She doesn't

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Speaker 1: have deep pockets, but she's got a good brainings. Yeah,

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Speaker 1: good sense of style. All right, Matt, let's mention the

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

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Speaker 1: is called Subluminal and it's an Imperial stout. It's a

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Speaker 1: collaboration between Buckston Brewery and Stillwater Artisanal. I'm really excited

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Speaker 1: to have this one on the show with you today,

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Speaker 1: my friend. Yeah, maybe we'll share our thoughts on this

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Speaker 1: particular beer at the end of the episode and For

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Speaker 1: all of our listeners out there, we want you to

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Speaker 1: know that you can submit your own listener questions at

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Speaker 1: how to money dot com forward slash ask. That is

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Speaker 1: a simple way for you to just record a simple,

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Speaker 1: easy voice memo and send that our way, and we

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Speaker 1: would love to get that on the show. So Joel,

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Speaker 1: let's go ahead and set up our first question. This

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Speaker 1: one is about earning more money. Hi, Droel and Max.

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Speaker 1: This is Mike from Chicago. I had a question in

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Speaker 1: regards to side hustles or multiple streams of income. I

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Speaker 1: find that to be really important and while I have

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Speaker 1: two jobs, I have a full time and a part time,

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Speaker 1: I would like to also add some more streams of income.

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Speaker 1: I'm pretty busy and I'm hoping to find some ways

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Speaker 1: where i can add in a couple more income streams

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Speaker 1: and just curious on some ideas and how to do

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Speaker 1: it for the busy guy or a woman who is

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Speaker 1: finding it hard to squeeze something else in and doesn't

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Speaker 1: have that much time to dedicate to it. I would

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Speaker 1: appreciate your ideas, looking forward to hear from you, and

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Speaker 1: great job on the show. Well, first, Max, who's Max?

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Speaker 1: Joel's apparently it's it's actually funny that we just at

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Speaker 1: the beginning of this episode talked about my name a

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Speaker 1: little bit more. But Mike, Michael, maybe I'll call you Michael. No, Mike,

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Speaker 1: I totally forgive you Joel. It's actually funny. So because

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Speaker 1: my last name has an send it at the very

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Speaker 1: end of my last name, I often do get Max

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Speaker 1: uh and emails sometimes from folks who don't know me,

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Speaker 1: if they're just kind of like reaching out to the

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Speaker 1: show or someone that's just emailing me, Uh, they kind

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Speaker 1: of take the first name, last name, kind of smush

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Speaker 1: it together. They're just being efficient. Well, if that's the case,

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Speaker 1: I actually don't mind at all. But plus, Max is

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Speaker 1: a cool name, man, Thanks is pretty cool. Yeah, I'm

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Speaker 1: done with it all right. Let's let's get to Mike's question.

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Speaker 1: And Mike, it does sound like you're super busy man,

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Speaker 1: And so the solution for someone who's incredibly busy isn't

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Speaker 1: necessarily to pick up additional side hustles, because then you're

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Speaker 1: essentially training time for money, and time is something that

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Speaker 1: you don't have much of. So let's talk about ways

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Speaker 1: to automate some of your income. Ways to find passive

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Speaker 1: income and achieving that, because that's really what you need

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Speaker 1: to focus on here as someone who has a lot

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Speaker 1: going on already. Yeah, Mike, that's gonna be more a

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Speaker 1: little more ideal because you want your money earning money

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Speaker 1: for you, not necessarily yourself to be earning money for

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Speaker 1: you since you're short on time. And the first thing

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Speaker 1: we want to touch on here is that, you know,

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Speaker 1: passive income. It's such an interesting phrase, you know, it

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Speaker 1: sounds so good, but to actually achieve passive income, it

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Speaker 1: actually does take some real work. Um. The easiest way

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Speaker 1: to to truly get passive income is through investing in

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Speaker 1: the market. You know. The more that you can invest

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Speaker 1: money for the future and let it compound, the less

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Speaker 1: that you'll actually have to work in the future, you know.

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Speaker 1: And that doesn't involve the side hustle or or really

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Speaker 1: much effort at all. It just takes the fundamental practice

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Speaker 1: of spending less than you make and then just taking

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Speaker 1: some simple steps like setting up some automatic purchases within

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Speaker 1: your retirement or your brokerage account. Yeah, that's why investing

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Speaker 1: in the market is so great for so many people,

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Speaker 1: because we are busy, right, We've got family or relationships,

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Speaker 1: we've got work. There's so much going on in life,

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Speaker 1: and the the easiest way to make our money work

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Speaker 1: well for us is just to pull that trigger of

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Speaker 1: putting it in retirement accounts and and letting it compound

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Speaker 1: for us over the long haul. Every other attempt to

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Speaker 1: passive income is going to require that you spend some

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Speaker 1: time in order to build it up. Something you're kind

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Speaker 1: of short, Mike. So the best example of how passive

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Speaker 1: income can work well over time with some of your

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Speaker 1: time is a rental real estate. It's also capital intensive,

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Speaker 1: so you need to have extra cash that you are

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Speaker 1: ready to invest. You know, you you got to save

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Speaker 1: up that down payment in order to to buy that

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Speaker 1: first piece of real estate. You'll have passive income, but

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Speaker 1: not until after you've put in that time to save

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Speaker 1: up the down payment and then also at the same

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Speaker 1: time learning about real estate in your area. I like

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Speaker 1: to think of generating passive income similar to planting a tree. Right,

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Speaker 1: It takes time, it takes nurturing. You have to water

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Speaker 1: that baby tree as it's going up. You might need

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Speaker 1: to stake it up along the way while it's getting bigger.

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Speaker 1: But down the road, when that tree is self sustaining,

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Speaker 1: it's going to provide let's say, apples or peaches or

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Speaker 1: whatever tree you planted fruit tree. Yeah, exactly every single

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Speaker 1: year for years to come, with very little effort on

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Speaker 1: your part. But there is that massive role you play

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Speaker 1: in the beginning years before you get to that point. Basically,

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Speaker 1: there's a direct relationship between the upside of passive income

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Speaker 1: and the amount of time you need to spend up

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Speaker 1: front in order to make it a success. You know,

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Speaker 1: some people call baby trees saplings, but I kind of

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Speaker 1: like baby tree. Like if you go to a nursery

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Speaker 1: and you're like, oh, hey, there, baby tree, where the

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Speaker 1: baby trees at? Then you see like a bigger tree

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Speaker 1: and you're like, oh, hey, they're a teenage tree. No,

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Speaker 1: but I agree, man, there are ways for you to

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Speaker 1: to earn money more quickly and more immediately, but those

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Speaker 1: ways aren't necessarily sustainable when it comes to the long term.

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Speaker 1: But there are easier ways. You know, like, sure, you

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Speaker 1: could totally rent out you know, you're unused car, maybe

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Speaker 1: on a site like Taro. You can go smaller with

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Speaker 1: those real estate dreams and forgo that down payment instead,

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Speaker 1: you can rent out a room in your home. You know,

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Speaker 1: those are simpler to get off the ground, and they

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Speaker 1: could provide you with a meaningful return, and they allow

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Speaker 1: you to to make money from the things you already own,

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Speaker 1: so that's another bonus. But they also require time, which

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Speaker 1: it sounds like that you are short on, and so

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Speaker 1: we would much rather see you put your efforts towards

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Speaker 1: something that you're growing more for for passive income for

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Speaker 1: the long run, not necessarily u the cash grab here now. Yeah,

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Speaker 1: multiple streams of income is a great goal to have.

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Speaker 1: That's been important to me for a lot of years.

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Speaker 1: It can provide stability as fluctuations occur in the job market.

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Speaker 1: Having two jobs already gives you some of that stability,

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Speaker 1: right if you lost one, you've got this other one

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Speaker 1: that's providing you meaningful income right now. But passive income

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Speaker 1: is something that takes years to truly create, and you

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Speaker 1: need time or money or both to get started in

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Speaker 1: most cases. So take a minute, Mike and consider what

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Speaker 1: might work for you and slowly start working in that direction,

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Speaker 1: while at the same time using some of the income

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Speaker 1: that you're making right now and start putting that into

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Speaker 1: those retirement accounts as much as you possibly can. That's

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Speaker 1: the easy button. Essentially, when it comes to generating passive

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Speaker 1: income years down the road. But best of luck as

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Speaker 1: you attempt to generate other passive streams of income in

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Speaker 1: your life. It's a worthwhile goal, it's just not an

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Speaker 1: easy one to attain. That's right. Focused on growing that tree,

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Speaker 1: that little baby tree, the baby tree. Think of baby

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Speaker 1: grout from Guardians of the Galaxy exactly, not just the

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Speaker 1: the immediate at Apple. All right, Joel, that's one down.

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Speaker 1: We've got four more, including one later on. They we're

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Speaker 1: gonna get to about what to do with a large

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Speaker 1: chunk of cash. We'll get to all of those right

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Speaker 1: after this break. M alright, we're back from the break.

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Speaker 1: We're gonna get to a question about paying off a

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Speaker 1: car note in just a minute. But before we get

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Speaker 1: to that, we've got a listener who wants to help

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Speaker 1: her mom who's near retirement. Hey guys, this Michelle from Minneapolis.

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Speaker 1: I'm a fairly new listener, but I've venged most of

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Speaker 1: your old episodes and I really appreciate all of your

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Speaker 1: good advice. This is kind of a follow up to

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Speaker 1: the Planning for Aging Parents episodes. My mom is sixty

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Speaker 1: seven and still working because she has very little retirement.

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Speaker 1: She had some hardships earlier in her adult life and

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Speaker 1: basically just started saaving about eight years ago. Her job

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Speaker 1: is extremely stressful, so I would like her to retire

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Speaker 1: as soon as possible to reduce her stress and start

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Speaker 1: enjoying life. My brothers, my mom, and I discussed the

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Speaker 1: option of living with one of them in Maryland or

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Speaker 1: living with me in Minnesota, which isn't exactly a great

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Speaker 1: place for retirement. Her dream is to retire in a

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Speaker 1: fifty plus community in Florida, but that's just not possible

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Speaker 1: when living primarily off so security. I'm in a really

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Speaker 1: good place financially, and I would like to help my

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Speaker 1: mom live out her retirement in a way that she deserves.

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Speaker 1: So her and I are now talking about the idea

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Speaker 1: of me buying her a home in one of these

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Speaker 1: communities while she pays me a little bit of rent

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Speaker 1: to help off set the costs. My question is what

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Speaker 1: is the best way to go about this. I would

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Speaker 1: like to take advantage of the low interest rates right

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Speaker 1: now and avoid putting down more than which I think

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Speaker 1: is something you have to do when it's considered an

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Speaker 1: investment property or a second home. I've heard of a

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Speaker 1: loan from Fanning may called the Family Opportunity mortgage that

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Speaker 1: is designed for these situations, But I really don't know

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Speaker 1: much about it. Do most thanks offer this type of

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Speaker 1: loan or do I have to go through a special service?

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Speaker 1: And what else should I take into account when considering

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Speaker 1: such a big endeavor? And maybe what are some other

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Speaker 1: financial slash tax benefits to retiring in Florida versus other states?

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Speaker 1: Thanks guys, Joel, We're all getting older. It's que the

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Speaker 1: Fleetwood Mac you know Landslide. You know that's of course

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Speaker 1: it's a classic. It is totally And one other thing, Michelle.

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Speaker 1: She she mentioned binging, which obviously made me think of

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Speaker 1: watching a bunch of TV. Have you guys been watching anything?

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Speaker 1: Because since Baby Groot left the scene and we kind

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Speaker 1: of got all caught up on our Marvel movies, do

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Speaker 1: we haven't watched anything. So I actually took your advice

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Speaker 1: and I watched Dark. But did you watch Dark? Incredible? Okay, good,

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Speaker 1: I'm glad because I made that recommendation having not seen

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Speaker 1: it myself. I haven't found the time yet watch that,

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Speaker 1: you know, maybe when Kate's like out of town or

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Speaker 1: something like that. For the weekend I need to find,

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Speaker 1: you know, a couple of evenings where I can hit

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Speaker 1: a bunch of those episodes back to back, do some

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Speaker 1: binging of myself. But that one is dark. Of course,

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Speaker 1: it's athlete, as the name would suggest, but it is

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Speaker 1: incredibly worthwhile. There a very very good show. Not unlike

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Speaker 1: this Beard by the way, I'm looking forward to mentioning

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Speaker 1: this one. It's very dark tasting, yeah for sure. All right,

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Speaker 1: let's get to Michelle's question. Michelle, Parental retirement questions can

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Speaker 1: be so tricky to navigate, right, and so much that

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Speaker 1: comes down to how your family talks about money, or

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Speaker 1: in most cases doesn't talk about money. That can be Yeah,

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Speaker 1: that can make those discussions, maybe happening for the first time,

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Speaker 1: really hard to have, and to those sibling dynamics can

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Speaker 1: be really hard to work through at the same time,

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Speaker 1: depending on how close you guys are. So just know

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Speaker 1: that going into it. My parents, well they're in a

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Speaker 1: similar space. They're they're getting up there, but they're still working,

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Speaker 1: and they're working tough jobs that require long hours and

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Speaker 1: a lot of hard work. And so yeah, I'm kind

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Speaker 1: of hoping that they're gonna push the retirement button soon

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Speaker 1: as well, but I will say your mom is really lucky.

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Speaker 1: It sounds like she has multiple kids, including yourself, who

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Speaker 1: are really really looking out for and and doing their

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Speaker 1: best to help her out in her retirement years. So yeah,

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Speaker 1: kudos to you and your brothers for doing your best

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Speaker 1: to help your mom in the coming years. So, Michell,

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Speaker 1: let's address specifically what you mentioned. You talked about the

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Speaker 1: Family Opportunity mortgage, and it really does sound like it

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Speaker 1: could be a great fit for you, uh and it's

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Speaker 1: honestly probably the best route for you to take for

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Speaker 1: everyone else out there, will link to Fannie May's website

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Speaker 1: or it outlines the conditions that would allow for individuals

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Speaker 1: to purchase a second home as the primary residents. But

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Speaker 1: here's what it says on the On the website, it

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Speaker 1: says that if the parent is unable to work or

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Speaker 1: does not have sufficient income to qualify for a mortgage

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Speaker 1: on his or her own, the child is considered the

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Speaker 1: owner slash occupant, and so as a child of aging parents,

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Speaker 1: you can supply housing for them and obtain the same rates,

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Speaker 1: the fees UH, and the lending flexibility as if you

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Speaker 1: were buying your own home to live in. Michelle You'll

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Speaker 1: also be allowed to purchase the home with only five

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Speaker 1: percent down, so that's another benefit, even though we do

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Speaker 1: still recommend down to avoid any additional p m I

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Speaker 1: if possible, And when it comes to where to find

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Speaker 1: this type of loan, we would recommend for you to

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Speaker 1: reach out to a mortgage broker for more information. But

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Speaker 1: just realize the different lenders might call it by different names.

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Speaker 1: They may not necessarily call it the Family Opportunity to

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Speaker 1: Mortgage like you mentioned, but regardless, you will have to

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Speaker 1: prove that your mom can't qualify on her own income,

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Speaker 1: so definitely be prepared for that. Yeah, if you talk

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Speaker 1: to a mortgage broker and they're confused, make sure you

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Speaker 1: have that link that will put in the show notes

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Speaker 1: to the page on fannie may site that explains in

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Speaker 1: detail how this works and other possibilities for you to

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Speaker 1: help your mom include giving her down payment assistance or

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Speaker 1: just co signing on a mortgage that she would take out.

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Speaker 1: You can also buy a home and rent it out

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Speaker 1: to her, but since the fannie made guidelines give you

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Speaker 1: access to the best possible terms, I think that's better

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Speaker 1: than all the other routes that you could take. If

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Speaker 1: you can secure the best terms, like you were getting

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Speaker 1: your own personal residence, which you can. If you can

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Speaker 1: prove that your mom wouldn't qualify, then this is a

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Speaker 1: better route than than those alternatives. And then you also

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Speaker 1: we're asking about some other considerations. You know, you say

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Speaker 1: that you're in a great financial position yourself, but hopefully

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Speaker 1: your brothers are are also in a good position as well,

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Speaker 1: and you know, maybe they could ship been some in

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Speaker 1: addition to what your mom will be contributing. But but

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Speaker 1: either way, we want to make sure that you are

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Speaker 1: doing a really, really good job communicating with everyone as

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Speaker 1: to what you know the expectations are, because in the end,

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Speaker 1: you know you're gonna be on the hook for the

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Speaker 1: payment if this loan is in your name. I'm thinking

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Speaker 1: signing a contract that's probably gonna be a step too

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Speaker 1: far considering we're talking about family here. But even expectation

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Speaker 1: is written out in an email can be really helpful

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Speaker 1: for everyone to refer back to, UH if things get

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Speaker 1: a little bit hairy. Sometimes just the very act of

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Speaker 1: writing things down will help folks to kind of stick

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Speaker 1: to it a little bit more, and it kind of

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Speaker 1: provides a little more structure, a little more framework when

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Speaker 1: it comes to everyone you know, following through with what

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Speaker 1: they agreed to do. Yeah, And oftentimes in a situation

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Speaker 1: where there are multiple siblings taking care of elderly parents,

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Speaker 1: the burden can fall more on one sibling than the others.

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Speaker 1: And so Michelle, it's important to make sure you're having

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Speaker 1: regular conversations with your brothers in order to make sure

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Speaker 1: that no one feels taken advantage when it comes to

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Speaker 1: the money that you're putting up or the time that

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Speaker 1: you're investing to help your mom. And obviously it's a

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Speaker 1: labor of love for you, like you love your mom

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Speaker 1: and you want to help her out, but you want

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Speaker 1: to make sure that all the siblings are on the

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Speaker 1: same page. And I agree, Matt that anything you can

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Speaker 1: put in writing is going to help. And then having

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Speaker 1: those continued conversations is a massive benefit as well. On

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Speaker 1: the tax benefits of where to retire, Michelle, that's the

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Speaker 1: last thing you asked. Well, so much of it comes

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Speaker 1: down to state taxes on why people decide to to

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Speaker 1: live where they live when they're done working. And part

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Speaker 1: of the reason a place like Florida is such a

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Speaker 1: popular destination for retirees is that there's no state income tax.

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Speaker 1: And in addition, it's pretty sunny, there's beaches, there's pools,

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Speaker 1: it's warm. Temperatures are also good on the aching joints. Yeah,

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Speaker 1: I've heard exactly, So no wonder. I mean, maybe that's

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Speaker 1: where I'll end up when I'm older too, who knows. Yeah,

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Speaker 1: that might be where us old millennials go to retire.

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Speaker 1: I mean, I think Florida could be a trend for

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Speaker 1: a long time to come. But yeah, that means essentially

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Speaker 1: that Social Security income, money from retirement accounts, and pension income,

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Speaker 1: all of those do not get talk at the state

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Speaker 1: level in Florida, so her money ends up going a

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Speaker 1: lot further. That's really the biggest consideration that in the

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Speaker 1: weather that the people make when they're trying to decide

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Speaker 1: where they're going to settle down in their in their

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Speaker 1: golden years. And so, Michelle, it sounds like you as

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Speaker 1: well as your brothers are doing a great job talking

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Speaker 1: about this, working together. You're doing a great job stepping

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Speaker 1: up and taking care of your mom. The biggest thing

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Speaker 1: for you specifically is we want to make sure that

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Speaker 1: you continue to be in a solid place financially, and

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Speaker 1: so make sure that you have all of your personal

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Speaker 1: money ducks in a row, because we want you operating

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Speaker 1: from a position of strength where you're able to continue

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Speaker 1: to help your mom down the road, no doubt. All right, Matt,

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Speaker 1: Let's get onto the next question that's up today. This

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Speaker 1: one is about paying off a car. Hi Joel Hi, Matt,

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Speaker 1: this is Robin from Seattle. Late last year, my old

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Speaker 1: Beater car of fourteen years old was totaled in an accident. So,

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Speaker 1: because I drive a lot, I took out a car

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Speaker 1: loan with about eight thousand dollars remaining balanced on it

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Speaker 1: at about twelve percent interest. I drive a lot and

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Speaker 1: I didn't have any credit before, so this was an

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Speaker 1: opportunity to me to build my credit and it worked.

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Speaker 1: Now my bank has approved me for a credit line

430
00:20:08,320 --> 00:20:11,119
Speaker 1: of about six and a half thousand dollars at zero

431
00:20:11,160 --> 00:20:14,200
Speaker 1: percent a p R for the first fifteen months. I'm

432
00:20:14,240 --> 00:20:16,960
Speaker 1: thinking of putting a chunk of my auto loan onto

433
00:20:17,000 --> 00:20:20,240
Speaker 1: that card that I could probably easily pay off within

434
00:20:20,600 --> 00:20:24,240
Speaker 1: the fifteen months. I'm hoping I can reduce the interest

435
00:20:24,320 --> 00:20:26,600
Speaker 1: that I pay on the loan by doing so. But

436
00:20:26,640 --> 00:20:28,959
Speaker 1: I also worry that if I move too much of

437
00:20:29,000 --> 00:20:31,520
Speaker 1: my auto loan to the card. It'll mess up my

438
00:20:31,640 --> 00:20:35,240
Speaker 1: rate of usage, would it? How much would you guys

439
00:20:35,240 --> 00:20:38,480
Speaker 1: suggest that I move? Any advice would be super appreciated.

440
00:20:38,600 --> 00:20:40,479
Speaker 1: I'm hoping to build my credit so that i can

441
00:20:40,520 --> 00:20:43,200
Speaker 1: eventually buy a house even though the market is quite

442
00:20:43,320 --> 00:20:46,480
Speaker 1: high here. I just love it here so much. Thank

443
00:20:46,480 --> 00:20:48,639
Speaker 1: you for everything that you guys do. Love your show.

444
00:20:49,200 --> 00:20:54,280
Speaker 1: Much appreciated by Robin. I hope you're okay after after

445
00:20:54,320 --> 00:20:57,440
Speaker 1: that accident, and that you're not physically affected and don't

446
00:20:57,480 --> 00:21:00,000
Speaker 1: have any long term physical effects getting in an accident.

447
00:21:00,000 --> 00:21:02,560
Speaker 1: It's just it's the worst for so many reasons. Yeah,

448
00:21:02,560 --> 00:21:05,440
Speaker 1: it sucks, man, especially when it's your own faults. You

449
00:21:05,480 --> 00:21:08,600
Speaker 1: know it's bad financially, but it's even it's even worser

450
00:21:09,040 --> 00:21:10,800
Speaker 1: when it is your faults, and then you know you

451
00:21:10,800 --> 00:21:14,440
Speaker 1: see your your insurance rates skyrocket as well. That's the worstest,

452
00:21:14,800 --> 00:21:17,360
Speaker 1: the worst. Is there anything beyond worst test? I don't

453
00:21:17,359 --> 00:21:19,159
Speaker 1: think so, And I don't even think actually either one

454
00:21:19,200 --> 00:21:23,080
Speaker 1: of those words is is grammatically correct. They're totally legit. Okay,

455
00:21:23,119 --> 00:21:25,440
Speaker 1: all right, we just said them. All right, Well, Robin,

456
00:21:25,480 --> 00:21:28,040
Speaker 1: listening to the part of your question and having a

457
00:21:28,040 --> 00:21:30,720
Speaker 1: car note at a twelve percent interest rate. That's really

458
00:21:30,760 --> 00:21:33,920
Speaker 1: really high, especially in today's environment. But I'm so glad

459
00:21:33,960 --> 00:21:37,159
Speaker 1: that having that loan has benefited your credit score, and

460
00:21:37,200 --> 00:21:39,120
Speaker 1: it sounds like it's done it in a big way.

461
00:21:39,480 --> 00:21:41,879
Speaker 1: It's really important for you, in particular right now, to

462
00:21:42,000 --> 00:21:44,159
Speaker 1: know what your credit score is, so Matt and I

463
00:21:44,160 --> 00:21:46,439
Speaker 1: would suggest going to a site like credit Karma or

464
00:21:46,440 --> 00:21:49,120
Speaker 1: credit scorecard dot com so you can know with more

465
00:21:49,160 --> 00:21:51,320
Speaker 1: certainty if you're going to be able to qualify for

466
00:21:51,359 --> 00:21:53,080
Speaker 1: the best rates out there. Those sites will give you

467
00:21:53,119 --> 00:21:57,199
Speaker 1: a whole lot of credit score information for free. It

468
00:21:57,200 --> 00:21:59,359
Speaker 1: doesn't cost you any money. So if you're getting a

469
00:21:59,400 --> 00:22:01,840
Speaker 1: suite zero percent offers right now, chances are that your

470
00:22:01,840 --> 00:22:04,240
Speaker 1: score has improved a great deal and you might be

471
00:22:04,359 --> 00:22:07,600
Speaker 1: potentially even in top tier status able to qualify essentially

472
00:22:07,640 --> 00:22:09,760
Speaker 1: for the best rates that are out there. Yeah, when

473
00:22:09,760 --> 00:22:11,600
Speaker 1: it comes to the actual numbers, you know, some specific

474
00:22:11,600 --> 00:22:15,359
Speaker 1: scores were typically talking about seven forty or above here,

475
00:22:15,760 --> 00:22:17,880
Speaker 1: So Robin it it really might make the most sense

476
00:22:17,880 --> 00:22:21,480
Speaker 1: for you to to refi that car uh instead in

477
00:22:21,560 --> 00:22:23,960
Speaker 1: order to get the full balance paid off at a

478
00:22:24,080 --> 00:22:26,360
Speaker 1: much lower rate. We would recommend for you to check

479
00:22:26,359 --> 00:22:29,760
Speaker 1: with a local credit union if you are. Remember, if not,

480
00:22:30,240 --> 00:22:32,040
Speaker 1: we would recommend for you to go find one. You

481
00:22:32,080 --> 00:22:35,960
Speaker 1: know that relationship will be invaluable through the years, especially

482
00:22:36,040 --> 00:22:39,280
Speaker 1: since you're you're talking about potentially buying a home there

483
00:22:39,280 --> 00:22:41,600
Speaker 1: in the future. Regards to your carlone, you might be

484
00:22:41,600 --> 00:22:44,680
Speaker 1: able to get a rate closer to four percent, uh,

485
00:22:44,720 --> 00:22:46,879
Speaker 1: you know, and that's obviously not as good as zero

486
00:22:46,880 --> 00:22:49,600
Speaker 1: percent like you've been offered by your current bank. But

487
00:22:49,760 --> 00:22:51,479
Speaker 1: you know, if you were to rEFInd, you wouldn't get

488
00:22:51,520 --> 00:22:54,359
Speaker 1: caught in a in a circumstance where you couldn't pay

489
00:22:54,400 --> 00:22:57,720
Speaker 1: back that balance within that shorter amount of time, right,

490
00:22:57,800 --> 00:23:00,240
Speaker 1: Like we're talking about fifteen months here, which get that

491
00:23:00,280 --> 00:23:02,720
Speaker 1: car the clock starts sticking. Yeah. Another thing with having

492
00:23:02,720 --> 00:23:05,760
Speaker 1: that car loan as well is that it's considered an

493
00:23:05,760 --> 00:23:09,399
Speaker 1: installment loan versus a credit card, which is considered revolving credit.

494
00:23:09,440 --> 00:23:11,800
Speaker 1: And it's good to have both in your credit mix

495
00:23:12,080 --> 00:23:14,800
Speaker 1: if you're trying to build a great credit score and

496
00:23:14,800 --> 00:23:17,359
Speaker 1: and since you're talking about buying a home, Robin, having

497
00:23:17,359 --> 00:23:19,480
Speaker 1: that really low rate on the car loan can help

498
00:23:19,560 --> 00:23:22,639
Speaker 1: you get approved for the best mortgage rates possible to

499
00:23:23,200 --> 00:23:26,080
Speaker 1: transferring a huge chunk of that balance and maxing out

500
00:23:26,080 --> 00:23:28,480
Speaker 1: that card is going to hurt your credit score, and

501
00:23:28,480 --> 00:23:31,439
Speaker 1: if you're applying for a mortgage anytime in the near future,

502
00:23:31,480 --> 00:23:33,680
Speaker 1: it's just not worth it. It's not the best move

503
00:23:33,760 --> 00:23:36,440
Speaker 1: to make, especially when you can refi that car loan

504
00:23:36,640 --> 00:23:39,320
Speaker 1: at a pretty incredibly low rate right now. Yeah, Robin,

505
00:23:39,359 --> 00:23:42,760
Speaker 1: So if you qualify refinancing either way, it's a slam

506
00:23:42,840 --> 00:23:45,640
Speaker 1: dug decision because I mean, the costs are typically next

507
00:23:45,680 --> 00:23:48,240
Speaker 1: to nothing, if not completely free, And so then on

508
00:23:48,280 --> 00:23:50,600
Speaker 1: top of that, whether or not you transfer that remaining

509
00:23:50,640 --> 00:23:52,960
Speaker 1: balanced You know too, that zero present card, like a

510
00:23:52,960 --> 00:23:55,560
Speaker 1: lot of it really does depend on your personal motivation,

511
00:23:55,640 --> 00:23:57,600
Speaker 1: because you know, it really might make sense for you

512
00:23:57,640 --> 00:24:00,520
Speaker 1: to take advantage of this great credit score that you've

513
00:24:00,560 --> 00:24:03,639
Speaker 1: worked to achieve, uh and knock out a lot of

514
00:24:03,680 --> 00:24:05,760
Speaker 1: this interest You know, what's the point of having a

515
00:24:05,800 --> 00:24:08,320
Speaker 1: good credit score if you're not necessarily going to use it.

516
00:24:08,400 --> 00:24:10,159
Speaker 1: But we want to make sure more than anything, though,

517
00:24:10,200 --> 00:24:12,360
Speaker 1: that you set yourself up to be in a position

518
00:24:12,640 --> 00:24:15,760
Speaker 1: to where you don't have a balance after that fifteen months.

519
00:24:15,800 --> 00:24:17,240
Speaker 1: You don't want to be in a position to where

520
00:24:17,280 --> 00:24:22,000
Speaker 1: that interest rate skyrockets and shoots up to something way

521
00:24:22,040 --> 00:24:24,680
Speaker 1: beyond even the twelve percent that you are currently paying

522
00:24:25,000 --> 00:24:27,480
Speaker 1: on your car loan. You know, so moving dad around

523
00:24:27,560 --> 00:24:30,320
Speaker 1: to save money on interest, it's not a bad move,

524
00:24:30,760 --> 00:24:32,360
Speaker 1: but you also just want to make sure that you're

525
00:24:32,359 --> 00:24:34,560
Speaker 1: being careful here. It's helpful if you can map out

526
00:24:34,600 --> 00:24:37,040
Speaker 1: how you're gonna knock out that zero percent car that

527
00:24:37,080 --> 00:24:40,680
Speaker 1: balance within that fifteen months. Yeah, mapping it out is crucial,

528
00:24:40,720 --> 00:24:43,600
Speaker 1: having a game plan and then also getting motivated to

529
00:24:43,880 --> 00:24:47,199
Speaker 1: payoff debt. It sounds like Robin is motivated. But the

530
00:24:47,240 --> 00:24:50,040
Speaker 1: more motivation you can add into your life, I feel like,

531
00:24:50,080 --> 00:24:52,520
Speaker 1: the easier it is to take any additional money you

532
00:24:52,560 --> 00:24:54,880
Speaker 1: have and start throwing it in that direction. Yeah, rove

533
00:24:54,920 --> 00:24:58,040
Speaker 1: and get after it. Put a message up on going

534
00:24:58,160 --> 00:25:01,560
Speaker 1: on your bathroom mirror. Whatever takes, you know, anything that

535
00:25:01,560 --> 00:25:04,119
Speaker 1: they gets you pumped, gets you motivated to continue to

536
00:25:04,119 --> 00:25:06,320
Speaker 1: pay down that deck quickly. Most of the time. I

537
00:25:06,320 --> 00:25:08,320
Speaker 1: think that's a that's an even bigger lover and an

538
00:25:08,359 --> 00:25:12,440
Speaker 1: even more important thing than getting a lower interest rate. Yeah, Joel,

539
00:25:12,480 --> 00:25:14,440
Speaker 1: So you know, our kids have been doing virtual schooling.

540
00:25:14,560 --> 00:25:17,639
Speaker 1: In one of our second grader's assignments was that she

541
00:25:17,720 --> 00:25:19,159
Speaker 1: had to create this. I don't know if it was

542
00:25:19,160 --> 00:25:21,720
Speaker 1: a bookmark or this little page. But on one side

543
00:25:21,760 --> 00:25:24,119
Speaker 1: she had to draw and color something that she loved

544
00:25:24,200 --> 00:25:26,320
Speaker 1: or kind of maybe represented her. And so on that

545
00:25:26,359 --> 00:25:29,160
Speaker 1: side she you know, drew a rainbow. She loves rainbows.

546
00:25:29,520 --> 00:25:30,919
Speaker 1: And on the other side she was supposed to put

547
00:25:30,920 --> 00:25:32,879
Speaker 1: a quote. And I don't think she knew what a

548
00:25:32,920 --> 00:25:35,520
Speaker 1: quote was. I mean, like we know it. It's not

549
00:25:35,600 --> 00:25:38,000
Speaker 1: something we've necessarily talked about. I think maybe the teacher

550
00:25:38,080 --> 00:25:40,480
Speaker 1: was expecting that they would find, uh, with the help

551
00:25:40,520 --> 00:25:43,920
Speaker 1: of their parents, a quote by someone famous, like Shakespeare

552
00:25:44,000 --> 00:25:47,399
Speaker 1: or something Aristotle, something Ben Bernankey, you know, maybe like

553
00:25:47,400 --> 00:25:50,480
Speaker 1: a financial quote from from dad here. However, she didn't

554
00:25:50,480 --> 00:25:53,480
Speaker 1: know that, and so she wrote her own quote, uh,

555
00:25:53,480 --> 00:25:56,320
Speaker 1: and she quoted herself and it was you can do it,

556
00:25:56,480 --> 00:25:59,119
Speaker 1: keep it up, work hard, I know you can do it,

557
00:25:59,160 --> 00:26:01,440
Speaker 1: which was super you. She was able to kind of

558
00:26:01,480 --> 00:26:03,880
Speaker 1: like dig within herself and find you know, for her,

559
00:26:04,040 --> 00:26:06,719
Speaker 1: her quote was like as motivational then, because I think

560
00:26:06,760 --> 00:26:08,760
Speaker 1: that's what's important here, Robin, that you're able to to

561
00:26:08,800 --> 00:26:11,399
Speaker 1: find a way to really just go after and attack

562
00:26:11,480 --> 00:26:14,080
Speaker 1: this debt, because it's easy to overthink and kind of

563
00:26:14,119 --> 00:26:16,040
Speaker 1: get bogged down in the interest rate in the details.

564
00:26:16,240 --> 00:26:18,080
Speaker 1: And so, just like Joel mentioned here, the biggest lever

565
00:26:18,200 --> 00:26:22,000
Speaker 1: that you can pull is your ability yourself to attack

566
00:26:22,040 --> 00:26:24,879
Speaker 1: this debt, to focus, and to completely be done with it.

567
00:26:25,040 --> 00:26:28,040
Speaker 1: So Robin, best of luck as you're crushing this debt.

568
00:26:28,040 --> 00:26:29,880
Speaker 1: I'm sure you'll be done with it in no time

569
00:26:29,880 --> 00:26:31,919
Speaker 1: because it sounds like you're super focused and that's what

570
00:26:31,960 --> 00:26:33,560
Speaker 1: it takes to get rid of nasty debts that are

571
00:26:33,600 --> 00:26:35,720
Speaker 1: hanging around in your life. Alright, Matt, Let's get to

572
00:26:35,760 --> 00:26:38,719
Speaker 1: a couple more questions, including one about whether or not

573
00:26:38,760 --> 00:26:40,919
Speaker 1: to build a pool, and we'll get to that right

574
00:26:40,920 --> 00:26:52,760
Speaker 1: after this break. All right, Joe, we are back from

575
00:26:52,760 --> 00:26:55,440
Speaker 1: the break and we've knocked out three out of five questions.

576
00:26:55,480 --> 00:26:58,800
Speaker 1: We've got two more to go, including this one about pools.

577
00:26:58,960 --> 00:27:01,600
Speaker 1: And we're not talking about ways carpool. We're talking about

578
00:27:01,600 --> 00:27:03,960
Speaker 1: the kind that you swim in. Hey, guys, this is

579
00:27:03,960 --> 00:27:06,840
Speaker 1: Brandon out of Austin, Texas. I had a question for you.

580
00:27:07,000 --> 00:27:09,119
Speaker 1: My wife and I have been considering putting in a

581
00:27:09,160 --> 00:27:11,720
Speaker 1: pool for a few years. Our h o A doesn't

582
00:27:11,720 --> 00:27:13,960
Speaker 1: have access to a pool and it gets really hot

583
00:27:13,960 --> 00:27:16,840
Speaker 1: here in the summer. We have two boys, ages two

584
00:27:16,840 --> 00:27:20,880
Speaker 1: and four that will really enjoy the pool over their lifetime,

585
00:27:20,960 --> 00:27:24,400
Speaker 1: and we don't plan on moving here for a long time. Um,

586
00:27:24,440 --> 00:27:26,560
Speaker 1: if we were going to put in the pool, though

587
00:27:26,560 --> 00:27:29,000
Speaker 1: we priced out, well, what if we moved to another

588
00:27:29,040 --> 00:27:31,280
Speaker 1: house that either had a pool or had access to

589
00:27:31,320 --> 00:27:33,440
Speaker 1: a pool in there h o A and we found

590
00:27:33,440 --> 00:27:38,199
Speaker 1: a really awesome new community that has a pool. Um,

591
00:27:38,240 --> 00:27:41,080
Speaker 1: it would be the same payment for the mortgage at

592
00:27:41,080 --> 00:27:42,840
Speaker 1: the new house as it would be if we just

593
00:27:42,880 --> 00:27:46,840
Speaker 1: stayed here and continued paying our current mortgage plus our

594
00:27:47,040 --> 00:27:49,840
Speaker 1: loan payments on the home equity loan it would take

595
00:27:49,880 --> 00:27:51,800
Speaker 1: to build the pool. So it's kind of a wash

596
00:27:51,840 --> 00:27:54,840
Speaker 1: either way. But if we stay here we're all paid

597
00:27:54,880 --> 00:27:58,639
Speaker 1: off in seventeen years. At the new house, we'd be

598
00:27:58,680 --> 00:28:01,040
Speaker 1: starting over with a thirty year note. I wanted to

599
00:28:01,040 --> 00:28:03,679
Speaker 1: hear your thoughts, and the second idea I wanted to

600
00:28:03,720 --> 00:28:06,240
Speaker 1: throw out there was that we were thinking of selling

601
00:28:06,280 --> 00:28:09,800
Speaker 1: our house initially, but we actually qualify for the new

602
00:28:09,800 --> 00:28:12,480
Speaker 1: house without having to sell our house, So we thought

603
00:28:12,520 --> 00:28:15,760
Speaker 1: about maybe keeping our current home and just renting it

604
00:28:15,800 --> 00:28:18,880
Speaker 1: out as a long term rental. What do you think

605
00:28:18,920 --> 00:28:21,760
Speaker 1: about the idea of doing that. I'm just concerned that

606
00:28:21,800 --> 00:28:24,760
Speaker 1: we'd be on the hook for two mortgages, and that's

607
00:28:24,800 --> 00:28:26,639
Speaker 1: potentially a lot of money to have to come up

608
00:28:26,640 --> 00:28:30,399
Speaker 1: with every month if we don't have it. Occupied. Appreciate uh,

609
00:28:30,440 --> 00:28:32,240
Speaker 1: everything you guys do, and look forward to hearing back

610
00:28:32,240 --> 00:28:34,679
Speaker 1: from you. All right, Brandon, thanks for your question. A

611
00:28:34,800 --> 00:28:38,920
Speaker 1: pool in Texas. That sounds really nice. It sounds necessary.

612
00:28:38,960 --> 00:28:41,680
Speaker 1: It's so hot down there, especially you know when you've

613
00:28:41,720 --> 00:28:44,600
Speaker 1: got young kids. I think, yeah, a pool can provide

614
00:28:44,760 --> 00:28:47,240
Speaker 1: just a whole lot of fun on the evenings on

615
00:28:47,280 --> 00:28:50,480
Speaker 1: the weekends for your family. Our family, Matt, as you

616
00:28:50,560 --> 00:28:52,440
Speaker 1: alluded to earlier in the show, we hit up the

617
00:28:52,440 --> 00:28:55,720
Speaker 1: pool quite a bit. During the typical summer. We usually

618
00:28:55,720 --> 00:28:58,400
Speaker 1: go to the y m c A Pool, but it

619
00:28:58,440 --> 00:29:01,320
Speaker 1: was shut down for most of the summer due to COVID.

620
00:29:01,440 --> 00:29:03,560
Speaker 1: When they did open it up, it was there were

621
00:29:03,600 --> 00:29:05,600
Speaker 1: just a you know, twenty five people allowed in at

622
00:29:05,600 --> 00:29:08,680
Speaker 1: a time in this massive space. We still ended up

623
00:29:08,680 --> 00:29:11,240
Speaker 1: going quite a bit um but yeah, I'm not gonna lie.

624
00:29:11,280 --> 00:29:12,920
Speaker 1: Emily and I. While it was shut down, we kind

625
00:29:12,920 --> 00:29:15,800
Speaker 1: of started talking about it semi seriously, like do we

626
00:29:15,840 --> 00:29:18,480
Speaker 1: put a pool in or not? And you know, ultimately

627
00:29:18,680 --> 00:29:21,240
Speaker 1: that's a really big decision to make. And we weren't

628
00:29:21,280 --> 00:29:23,680
Speaker 1: ready to do something like that. We didn't even really

629
00:29:23,720 --> 00:29:27,640
Speaker 1: get to serious, serious conversations. But for Brandon, it sounds

630
00:29:27,680 --> 00:29:30,440
Speaker 1: like they're they're they're really starting to think about making

631
00:29:30,480 --> 00:29:32,680
Speaker 1: a big move and and installing a pool. Yeah, and

632
00:29:32,680 --> 00:29:34,840
Speaker 1: that's exciting. And here's the thing. I think maybe a

633
00:29:34,840 --> 00:29:37,560
Speaker 1: lot of folks would say, Okay, Matt, Joel, they're totally

634
00:29:37,600 --> 00:29:39,240
Speaker 1: gonna come on and shut this guy down and say

635
00:29:39,320 --> 00:29:42,440
Speaker 1: no pool. The thing is, though, we are all about

636
00:29:42,480 --> 00:29:44,840
Speaker 1: paying for things that move the needle in a massive way.

637
00:29:45,080 --> 00:29:47,320
Speaker 1: You know, if you have the money, uh, Like, this

638
00:29:47,360 --> 00:29:49,480
Speaker 1: is something that we're in favor of putting your money

639
00:29:49,520 --> 00:29:52,720
Speaker 1: and aligning your your personal finances and your goals, uh,

640
00:29:52,880 --> 00:29:55,240
Speaker 1: towards the things that are gonna bring you the most joy.

641
00:29:55,600 --> 00:29:57,800
Speaker 1: You know that it might mean cutting back in other

642
00:29:57,840 --> 00:30:01,040
Speaker 1: areas like eating out or upgrading, uh to that fancy

643
00:30:01,120 --> 00:30:03,560
Speaker 1: car or something like that. But if a pool is

644
00:30:03,600 --> 00:30:06,200
Speaker 1: worth it to your family, then in our opinion, it

645
00:30:06,240 --> 00:30:10,200
Speaker 1: makes perfect sense to try to work towards that dream. Yeah, Brandon,

646
00:30:10,240 --> 00:30:13,040
Speaker 1: if a pool is your craftier equivalent, if that's something

647
00:30:13,080 --> 00:30:16,400
Speaker 1: that your your family is gonna reap major rewards from,

648
00:30:16,480 --> 00:30:19,600
Speaker 1: then it's totally worth spending the money on it. But

649
00:30:19,840 --> 00:30:21,600
Speaker 1: let's talk about the other side of it too. It's

650
00:30:21,640 --> 00:30:24,320
Speaker 1: important to note that when you run the numbers, putting

651
00:30:24,320 --> 00:30:27,120
Speaker 1: in a pool doesn't typically provide a great return on

652
00:30:27,160 --> 00:30:30,400
Speaker 1: your investment. You know, some renovations home renovations pay off

653
00:30:30,400 --> 00:30:33,280
Speaker 1: pretty handsomely if you're doing a bathroom or a kitchen, right,

654
00:30:33,320 --> 00:30:35,480
Speaker 1: But if you put in a pool, typically you only

655
00:30:35,480 --> 00:30:38,200
Speaker 1: get back around of the money that you put into

656
00:30:38,240 --> 00:30:40,440
Speaker 1: it when you eventually sell the home. So it's important

657
00:30:40,440 --> 00:30:42,360
Speaker 1: to make sure that you're gonna want to be in

658
00:30:42,360 --> 00:30:45,720
Speaker 1: the home for the long term, because putting that money

659
00:30:45,760 --> 00:30:48,240
Speaker 1: in and then moving a couple of years later is

660
00:30:48,280 --> 00:30:50,600
Speaker 1: going to be a terrible use of that money. It's

661
00:30:50,600 --> 00:30:53,000
Speaker 1: not great for resale. Yeah, this is an instance where

662
00:30:53,080 --> 00:30:54,680
Speaker 1: you don't want to look at the numbers, right. You

663
00:30:54,680 --> 00:30:56,080
Speaker 1: want to make sure that you're you're doing this for

664
00:30:56,240 --> 00:30:59,280
Speaker 1: you and your family and Joel, like you mentioned, Uh,

665
00:30:59,280 --> 00:31:02,040
Speaker 1: this is something that y'all considered, but you decided to

666
00:31:02,040 --> 00:31:04,640
Speaker 1: go with an alternative. Going to the y is something

667
00:31:04,680 --> 00:31:06,920
Speaker 1: that's working for you. And sometimes that inflatable pool in

668
00:31:06,960 --> 00:31:10,560
Speaker 1: the front yard to exactly uh, and what we're trying

669
00:31:10,560 --> 00:31:12,240
Speaker 1: to stay here there is we want you to consider.

670
00:31:12,440 --> 00:31:14,760
Speaker 1: The alternatives. We want you to consider maybe even something

671
00:31:15,160 --> 00:31:17,880
Speaker 1: a little more affordable, something maybe some would call it cheap.

672
00:31:18,400 --> 00:31:21,320
Speaker 1: Underground pools are are really expensive, but you might be

673
00:31:21,320 --> 00:31:24,360
Speaker 1: able to create a more redneck version by putting in

674
00:31:24,600 --> 00:31:27,320
Speaker 1: an above ground pool and maybe even giving it an

675
00:31:27,320 --> 00:31:29,600
Speaker 1: in ground feel by like renting a Bobcat. You can

676
00:31:29,640 --> 00:31:31,840
Speaker 1: kind of push around some of the earth, making it

677
00:31:31,920 --> 00:31:33,320
Speaker 1: so that it kind of goes up to it on

678
00:31:33,320 --> 00:31:35,800
Speaker 1: one side, or even kind of building a deck that

679
00:31:35,840 --> 00:31:39,280
Speaker 1: gives it more of a premium feel. A contractor friend

680
00:31:39,280 --> 00:31:42,160
Speaker 1: of ours actually did this over at their house early

681
00:31:42,240 --> 00:31:44,080
Speaker 1: the spring, you know, at the beginning of the pandemic,

682
00:31:44,080 --> 00:31:46,160
Speaker 1: when they realized that they weren't going to be able

683
00:31:46,160 --> 00:31:49,120
Speaker 1: to go anywhere for the time being. And I will

684
00:31:49,160 --> 00:31:51,600
Speaker 1: say it looks really good. I was really impressed with

685
00:31:51,720 --> 00:31:54,000
Speaker 1: how great it looked, and I was surprised to see

686
00:31:54,000 --> 00:31:56,920
Speaker 1: what they were able to do with an above ground pool. Personally,

687
00:31:56,920 --> 00:31:59,920
Speaker 1: I wouldn't necessarily do this myself, but I also don't

688
00:32:00,080 --> 00:32:02,760
Speaker 1: love pools quite nearly as much. So this is something

689
00:32:02,800 --> 00:32:05,920
Speaker 1: to consider because this is definitely a more affordable option. Yeah,

690
00:32:05,920 --> 00:32:09,800
Speaker 1: I gotta imagine the cost savings are doing the above

691
00:32:09,840 --> 00:32:12,560
Speaker 1: ground versus the ground, It's gonna make a big difference,

692
00:32:12,560 --> 00:32:14,800
Speaker 1: and it might provide almost as much or just as

693
00:32:14,880 --> 00:32:17,239
Speaker 1: much joy as the in ground pool would have. As

694
00:32:17,240 --> 00:32:18,960
Speaker 1: long as you have a diving board, I feel like

695
00:32:19,000 --> 00:32:20,840
Speaker 1: that's what kids love, man, They love like flying through

696
00:32:20,840 --> 00:32:23,520
Speaker 1: the air landing the water. Diving board is pretty sweet, man,

697
00:32:23,560 --> 00:32:25,800
Speaker 1: I agree with you there. And and Brandon, one of

698
00:32:25,800 --> 00:32:28,360
Speaker 1: the last things you asked was about, you know, switching homes,

699
00:32:28,400 --> 00:32:30,880
Speaker 1: buying another home and running out the current one, And

700
00:32:31,040 --> 00:32:34,080
Speaker 1: you're getting into just a really nuanced discussion here, and

701
00:32:34,160 --> 00:32:36,880
Speaker 1: whether that's a good idea or not depends on so

702
00:32:36,920 --> 00:32:40,360
Speaker 1: many specifics, like your monthly mortgage amount, how much you

703
00:32:40,400 --> 00:32:43,640
Speaker 1: could possibly getting rent, whether you'll be self managing that

704
00:32:43,680 --> 00:32:46,640
Speaker 1: rental or not, and how much has the value increased

705
00:32:46,920 --> 00:32:49,160
Speaker 1: on your home since you first bought it. If it's

706
00:32:49,200 --> 00:32:51,720
Speaker 1: gone up a ton in value and then you rent

707
00:32:51,760 --> 00:32:53,560
Speaker 1: it out for a few years and end up selling it,

708
00:32:53,760 --> 00:32:55,720
Speaker 1: you're talking about a whole lot of tax that you

709
00:32:55,760 --> 00:32:58,880
Speaker 1: wouldn't have otherwise incurred. And at the same time, typically

710
00:32:59,160 --> 00:33:02,480
Speaker 1: homes that a family might purchase for themselves, they don't

711
00:33:02,480 --> 00:33:05,840
Speaker 1: always make great rentals. As as most owner occupant home

712
00:33:05,880 --> 00:33:09,040
Speaker 1: purchases are are either nicer or bigger than would be

713
00:33:09,080 --> 00:33:11,920
Speaker 1: suitable for an ideal rental. And one other thing that

714
00:33:11,960 --> 00:33:14,120
Speaker 1: I heard you say, I really don't love the idea

715
00:33:14,160 --> 00:33:16,680
Speaker 1: of you going from a mortgage with seventeen years left

716
00:33:16,720 --> 00:33:19,600
Speaker 1: on it to a new mortgage, a new thirty year

717
00:33:19,640 --> 00:33:22,720
Speaker 1: mortgage that in and of itself is maybe a reason

718
00:33:22,760 --> 00:33:24,600
Speaker 1: to stay put. Find a way to make it work

719
00:33:24,600 --> 00:33:27,040
Speaker 1: and enjoy the house you currently live in because thirteen

720
00:33:27,160 --> 00:33:29,120
Speaker 1: years of extra debt. Man, that's a that's a lot

721
00:33:29,120 --> 00:33:32,200
Speaker 1: of extra years of that hanging over your head. Yeah, man,

722
00:33:32,240 --> 00:33:35,160
Speaker 1: I agree, and Brandon, there's just so much here to consider, right,

723
00:33:35,440 --> 00:33:37,360
Speaker 1: I think either way, you can make a really good

724
00:33:37,440 --> 00:33:40,720
Speaker 1: argument for staying, maybe even doing a REFI, taking some

725
00:33:40,760 --> 00:33:42,960
Speaker 1: of that equity, putting it into your own pool. You

726
00:33:42,960 --> 00:33:45,240
Speaker 1: can easily make an argument for selling that home and

727
00:33:45,280 --> 00:33:48,720
Speaker 1: taking that equity from that home and investing it. There's

728
00:33:48,760 --> 00:33:50,880
Speaker 1: just so many great options here for you. A lot

729
00:33:50,920 --> 00:33:53,040
Speaker 1: of it really does come down to what you're looking

730
00:33:53,120 --> 00:33:55,680
Speaker 1: for in your own personal life, and so a lot

731
00:33:55,680 --> 00:33:58,360
Speaker 1: of it truly depends on what your personal goals are

732
00:33:58,400 --> 00:34:00,959
Speaker 1: as a family. It might be less about the numbers

733
00:34:00,960 --> 00:34:03,000
Speaker 1: here and more about what it is that you're looking for.

734
00:34:03,080 --> 00:34:05,880
Speaker 1: You know, if you don't necessarily have any personal ties

735
00:34:05,960 --> 00:34:08,279
Speaker 1: holding you to that current home that you're in, maybe

736
00:34:08,280 --> 00:34:10,400
Speaker 1: it's time to sell. However, if you really love your

737
00:34:10,440 --> 00:34:12,719
Speaker 1: community and you feel that you could see yourself here

738
00:34:12,760 --> 00:34:15,480
Speaker 1: for the next sixteen years and so your kids graduate,

739
00:34:15,560 --> 00:34:17,920
Speaker 1: maybe going ahead with that pool and being able to

740
00:34:18,000 --> 00:34:20,120
Speaker 1: use it for that length of time might be a

741
00:34:20,120 --> 00:34:22,080
Speaker 1: wise move for you. In this case, it seems like

742
00:34:22,160 --> 00:34:24,120
Speaker 1: it's more of a personal decision and less of a

743
00:34:24,200 --> 00:34:26,600
Speaker 1: nerdy money decision. Yeah, if you can afford it. So

744
00:34:26,680 --> 00:34:28,839
Speaker 1: much of the answer and what you decide to do

745
00:34:29,280 --> 00:34:32,279
Speaker 1: really comes down to what your family wants and what

746
00:34:32,440 --> 00:34:35,360
Speaker 1: y'all decide on together. So best of luck brain and

747
00:34:35,400 --> 00:34:38,359
Speaker 1: making this decision, all right, Matt, Let's get to the

748
00:34:38,400 --> 00:34:40,839
Speaker 1: next question, and this one is also home related. It's

749
00:34:40,880 --> 00:34:43,120
Speaker 1: about what to do once you've sold a home, what

750
00:34:43,160 --> 00:34:46,040
Speaker 1: do you do with the proceeds. Hi, Joel and Matt.

751
00:34:46,239 --> 00:34:49,640
Speaker 1: My name is Sarah. I'm calling from Wakefield, Rhode Island,

752
00:34:49,680 --> 00:34:51,680
Speaker 1: and I'm a huge fan of the show. You guys

753
00:34:51,719 --> 00:34:55,200
Speaker 1: have truly allowed me to take huge strides in my

754
00:34:55,280 --> 00:34:58,399
Speaker 1: life by giving me the tools I need to have

755
00:34:59,080 --> 00:35:04,000
Speaker 1: financial free um and independence and just confidence in that

756
00:35:04,920 --> 00:35:07,840
Speaker 1: I actually bought my own house a couple of years ago, um,

757
00:35:07,840 --> 00:35:10,520
Speaker 1: with your help, whether you knew it or not. I

758
00:35:10,560 --> 00:35:14,000
Speaker 1: am selling my house due to change an income I

759
00:35:14,080 --> 00:35:17,319
Speaker 1: used to bartend pre COVID. The mortgage is just gonna

760
00:35:17,320 --> 00:35:19,319
Speaker 1: be too much for me to try to keep up.

761
00:35:20,200 --> 00:35:23,640
Speaker 1: So that being said, I'm under contract. I bought at

762
00:35:24,000 --> 00:35:29,440
Speaker 1: twenty and I am selling at two. And I do

763
00:35:29,600 --> 00:35:33,480
Speaker 1: have to tho dollar energy loan to pay off at

764
00:35:33,480 --> 00:35:36,959
Speaker 1: closing and about two grand and credit card debt which

765
00:35:36,960 --> 00:35:39,960
Speaker 1: I will be paying off then as well. I do

766
00:35:40,440 --> 00:35:43,279
Speaker 1: plan on using some of the proceeds to max out

767
00:35:43,280 --> 00:35:47,040
Speaker 1: on my wrath IRA, and I have a high interest

768
00:35:47,200 --> 00:35:49,720
Speaker 1: savings account or what used speak be a high interest

769
00:35:49,719 --> 00:35:52,759
Speaker 1: savings account, and just wondering what to do with the

770
00:35:52,800 --> 00:35:58,080
Speaker 1: rest of that cash. I will uh contribute to my

771
00:35:58,200 --> 00:36:00,680
Speaker 1: savings account, so I have an emergency fun which I

772
00:36:00,719 --> 00:36:04,680
Speaker 1: haven't had before. So that's exciting, But I am looking

773
00:36:04,680 --> 00:36:07,719
Speaker 1: at a large chunk of money and I don't know

774
00:36:07,760 --> 00:36:09,680
Speaker 1: what to do with it. I will not need it

775
00:36:09,680 --> 00:36:13,640
Speaker 1: in the next year, and I probably won't need it

776
00:36:13,719 --> 00:36:15,920
Speaker 1: liquid until a couple of years from now where I

777
00:36:16,000 --> 00:36:20,560
Speaker 1: made by another house. Thank you for any and all

778
00:36:20,600 --> 00:36:24,320
Speaker 1: of your thoughts. Cheers, Sarah, Thanks so much for that question,

779
00:36:24,360 --> 00:36:27,040
Speaker 1: and thank you for being a longtime listener to the podcast.

780
00:36:27,080 --> 00:36:28,560
Speaker 1: You know, if you were listening two years ago and

781
00:36:28,560 --> 00:36:30,360
Speaker 1: we were able to kind of help you along in

782
00:36:30,400 --> 00:36:32,279
Speaker 1: your personal finance journey when it came to to buying

783
00:36:32,320 --> 00:36:34,840
Speaker 1: that first house, that means you're listening back during the

784
00:36:34,880 --> 00:36:37,680
Speaker 1: poor not poor days, not the how the money days

785
00:36:38,760 --> 00:36:41,319
Speaker 1: for new listeners we change names at one point, and

786
00:36:41,960 --> 00:36:44,080
Speaker 1: how the money just had a better ring to it. Yeah, yeah,

787
00:36:44,200 --> 00:36:46,040
Speaker 1: poor not poor. It worked well when you saw it

788
00:36:46,040 --> 00:36:49,840
Speaker 1: written out, because it's like poor a beer, not poor,

789
00:36:49,840 --> 00:36:53,040
Speaker 1: like being broke. But it was always just as awkward

790
00:36:53,040 --> 00:36:57,839
Speaker 1: to explain just on the podcast. We moved away from that,

791
00:36:58,320 --> 00:37:01,879
Speaker 1: no doubt. Well, let's get on to Sarah's question, And Sarah, now,

792
00:37:02,040 --> 00:37:04,040
Speaker 1: is is a great time to sell? I mean, it's

793
00:37:04,040 --> 00:37:07,919
Speaker 1: still an awesome seller's market considering the low interest rates

794
00:37:07,920 --> 00:37:09,799
Speaker 1: that are out there right now. And I love your

795
00:37:09,800 --> 00:37:13,359
Speaker 1: foresight making a smart money move and not continuing to

796
00:37:13,440 --> 00:37:16,600
Speaker 1: put money into a mortgage that's become unaffordable for you.

797
00:37:17,040 --> 00:37:19,680
Speaker 1: Renting for a little while is a great idea, and

798
00:37:19,680 --> 00:37:22,920
Speaker 1: it's a great idea for so many people. Homeownership is

799
00:37:22,960 --> 00:37:24,920
Speaker 1: a fine goal to have. Matt and I we own

800
00:37:24,960 --> 00:37:27,800
Speaker 1: our homes, we own other investment properties. But at the

801
00:37:27,800 --> 00:37:30,160
Speaker 1: same time, homeownership has reached kind of a cult like

802
00:37:30,280 --> 00:37:33,279
Speaker 1: status in our society and renting has real merit. Now.

803
00:37:33,320 --> 00:37:34,960
Speaker 1: We've talked about this before on the show that for

804
00:37:35,000 --> 00:37:37,160
Speaker 1: a lot of people, buying a home is actually not

805
00:37:37,200 --> 00:37:39,680
Speaker 1: the best way to building wealth, and renting for a

806
00:37:39,719 --> 00:37:42,040
Speaker 1: longer period of time while you're a saving up more

807
00:37:42,080 --> 00:37:44,759
Speaker 1: money and be investing more money, it can actually make

808
00:37:44,760 --> 00:37:46,920
Speaker 1: a whole lot more sense for a lot of people.

809
00:37:47,080 --> 00:37:50,439
Speaker 1: And it sounds like Sarah's making a smart decision for

810
00:37:50,480 --> 00:37:53,120
Speaker 1: her budget and for her future right now. Yeah, renting

811
00:37:53,239 --> 00:37:55,759
Speaker 1: just allows for so much flexibility, right you can kind

812
00:37:55,760 --> 00:37:58,080
Speaker 1: of re evaluate some life goals, try new things. It's

813
00:37:58,120 --> 00:38:00,840
Speaker 1: easier to kind of uproot your life when you're just

814
00:38:00,920 --> 00:38:02,560
Speaker 1: renting year to year then when you know if you

815
00:38:02,600 --> 00:38:05,040
Speaker 1: have a permanent home. So a quick mention too for

816
00:38:05,040 --> 00:38:07,560
Speaker 1: anyone else with a mortgage who is having a tough

817
00:38:07,600 --> 00:38:11,560
Speaker 1: time paying right now, but another option might be mortgage forbearance.

818
00:38:11,880 --> 00:38:15,400
Speaker 1: We've mentioned this before, especially on Friday episodes. But you

819
00:38:15,440 --> 00:38:18,360
Speaker 1: can head to the Fanning May Free Mac websites and

820
00:38:18,600 --> 00:38:20,960
Speaker 1: enter in your information to see if you have a

821
00:38:20,960 --> 00:38:24,240
Speaker 1: mortgage that is federally backed. If so, you can apply

822
00:38:24,360 --> 00:38:27,600
Speaker 1: for forbearance where you would pause your payments for up

823
00:38:27,640 --> 00:38:29,600
Speaker 1: to a hundred and eighty days, and then on top

824
00:38:29,640 --> 00:38:32,240
Speaker 1: of that for another hundred eighty days. There's an option

825
00:38:32,239 --> 00:38:34,440
Speaker 1: for a hundred eighty day extension for a total of

826
00:38:34,480 --> 00:38:37,120
Speaker 1: three and sixty days. So we wanted to mention that

827
00:38:37,160 --> 00:38:39,759
Speaker 1: not for Sarah specifically, but for everyone else out there

828
00:38:39,760 --> 00:38:42,360
Speaker 1: who might be in a tough situation. For assuming you know,

829
00:38:42,440 --> 00:38:44,640
Speaker 1: this wasn't an option for Sarah, or maybe it wasn't

830
00:38:44,760 --> 00:38:46,640
Speaker 1: enough help for her, or maybe she's just wanting to

831
00:38:46,680 --> 00:38:48,840
Speaker 1: take advantage of this great period within the market to

832
00:38:48,880 --> 00:38:51,120
Speaker 1: go ahead and sell her house. Yeah, for sure. And

833
00:38:51,200 --> 00:38:52,960
Speaker 1: when you are selling a house, Matt, one of the

834
00:38:53,000 --> 00:38:56,640
Speaker 1: biggest costs associated with that is the real turkeyes, right.

835
00:38:56,719 --> 00:38:59,520
Speaker 1: And and it's nice that Sarah's had a good run

836
00:38:59,600 --> 00:39:02,880
Speaker 1: up in the home's value in the past couple of years. Typically,

837
00:39:02,880 --> 00:39:04,799
Speaker 1: when you only own a home for two years, you're

838
00:39:04,800 --> 00:39:07,240
Speaker 1: gonna be slightly underwater when it comes to the fees

839
00:39:07,239 --> 00:39:09,439
Speaker 1: that you pay for selling at home. But Sarah's coming

840
00:39:09,440 --> 00:39:12,200
Speaker 1: out golden, which is awesome. So depending on how much

841
00:39:12,320 --> 00:39:15,120
Speaker 1: you put down, Sarah, you'll have a chunk of cash.

842
00:39:15,440 --> 00:39:17,640
Speaker 1: But those realtor fees are going to be about six

843
00:39:17,680 --> 00:39:21,760
Speaker 1: percent of the sales price, and so given the value

844
00:39:21,760 --> 00:39:24,640
Speaker 1: of your home, that's probably gonna be about seventeen thou dollars.

845
00:39:24,800 --> 00:39:27,400
Speaker 1: And it can feel like a bummer to pay those fees,

846
00:39:27,719 --> 00:39:29,239
Speaker 1: but of course that's what it takes to get home

847
00:39:29,320 --> 00:39:31,480
Speaker 1: sold in this day and age. After that, though, is

848
00:39:31,480 --> 00:39:32,920
Speaker 1: the fun part. What do you do with all that

849
00:39:33,040 --> 00:39:36,399
Speaker 1: extra money that you now have in your life? Yeah, so, Sarah,

850
00:39:36,440 --> 00:39:38,400
Speaker 1: everything you mentioned are are great things to do, but

851
00:39:38,440 --> 00:39:40,799
Speaker 1: it's also important to go in the right order since

852
00:39:40,800 --> 00:39:42,799
Speaker 1: we're not sure of how much cash that you're gonna

853
00:39:42,800 --> 00:39:44,799
Speaker 1: have on hand. So first you're gonna want to make

854
00:39:44,840 --> 00:39:47,960
Speaker 1: sure that you have an initial emergency fund set aside.

855
00:39:48,320 --> 00:39:51,080
Speaker 1: Economists they found that two thousand, four hundred and sixty

856
00:39:51,120 --> 00:39:54,600
Speaker 1: seven dollars is a great place to start because that

857
00:39:54,640 --> 00:39:58,520
Speaker 1: will get most folks through most small storms that life

858
00:39:58,560 --> 00:40:00,600
Speaker 1: will toss at you, and then you can keep that

859
00:40:00,600 --> 00:40:03,440
Speaker 1: in your high interest savings account, and you know, like

860
00:40:03,480 --> 00:40:05,560
Speaker 1: you said, you've seen that decrease, and so you know,

861
00:40:05,680 --> 00:40:07,640
Speaker 1: I think we're all kind of wondering if they should

862
00:40:07,640 --> 00:40:10,360
Speaker 1: even be allowed to call their accounts high interest anymore.

863
00:40:10,640 --> 00:40:12,640
Speaker 1: I know my high interest ally account used to be

864
00:40:12,880 --> 00:40:14,520
Speaker 1: you know, sky high with the rest of them for

865
00:40:14,920 --> 00:40:16,919
Speaker 1: years there. But you know, we're just sitting at around

866
00:40:16,920 --> 00:40:19,440
Speaker 1: a one percent these days. Man. But Sarah, that's definitely

867
00:40:19,520 --> 00:40:21,359
Speaker 1: the very first step that you want to make sure

868
00:40:21,360 --> 00:40:24,359
Speaker 1: that you take. Uh. It's really good and exciting to

869
00:40:24,360 --> 00:40:26,680
Speaker 1: to to have some peace of mind there. Yeah. Next,

870
00:40:26,760 --> 00:40:29,200
Speaker 1: you'll wanna go ahead and be done with any debts

871
00:40:29,239 --> 00:40:32,279
Speaker 1: that you currently have that are over six percent. Right,

872
00:40:32,280 --> 00:40:35,000
Speaker 1: that's a guaranteed return on your money. And in particular,

873
00:40:35,040 --> 00:40:37,799
Speaker 1: when you're talking about savings rates that are so incredibly low,

874
00:40:38,040 --> 00:40:41,160
Speaker 1: pay off that higher interest rate debt, any super low

875
00:40:41,160 --> 00:40:44,280
Speaker 1: interest rate debt, though you can consider keeping around since

876
00:40:44,320 --> 00:40:46,800
Speaker 1: you should be able to earn more on that investing

877
00:40:46,840 --> 00:40:50,640
Speaker 1: it in the market into tax advantage retirement accounts. But

878
00:40:50,680 --> 00:40:52,719
Speaker 1: we're not there yet. So after you're paying off those

879
00:40:52,760 --> 00:40:54,719
Speaker 1: debts that are at a higher rate, then it's time

880
00:40:54,760 --> 00:40:57,480
Speaker 1: to revisit that emergency fund. You're gonna want to put

881
00:40:57,520 --> 00:41:00,360
Speaker 1: more in it than just two thousand, four hundred sixty

882
00:41:00,440 --> 00:41:02,920
Speaker 1: seven dollars. That's a great place to start, But then

883
00:41:02,960 --> 00:41:06,240
Speaker 1: you want to boost it to three months of living expenses. Now,

884
00:41:06,360 --> 00:41:08,239
Speaker 1: once you have that in place, once you have three

885
00:41:08,280 --> 00:41:11,600
Speaker 1: months sitting there in your high slash, low interest rate,

886
00:41:11,600 --> 00:41:14,000
Speaker 1: same mus account, now you can start to invest high

887
00:41:14,160 --> 00:41:17,399
Speaker 1: ish account. Yeah, now it's time to get investing. Now

888
00:41:17,400 --> 00:41:19,520
Speaker 1: it's time to totally max out your wrath I ra

889
00:41:19,560 --> 00:41:23,080
Speaker 1: a sarah. Uh. So we're talking about six thousand dollars there,

890
00:41:23,360 --> 00:41:25,480
Speaker 1: and even though you might fund that account all at once,

891
00:41:25,520 --> 00:41:27,759
Speaker 1: you can still dollar cost average, by the way, by

892
00:41:27,800 --> 00:41:32,040
Speaker 1: purchasing worth of funds every month for the next twelve months. Right.

893
00:41:32,320 --> 00:41:34,719
Speaker 1: And then after that is when you might want to

894
00:41:34,800 --> 00:41:38,040
Speaker 1: yet again revisit your emergency fund and then look to

895
00:41:38,080 --> 00:41:40,920
Speaker 1: have not three months worth of living expenses, but maybe

896
00:41:40,920 --> 00:41:45,160
Speaker 1: even boost that up to six months worth. Especially these days,

897
00:41:45,200 --> 00:41:47,600
Speaker 1: it's good to maybe have a little bit more than

898
00:41:47,680 --> 00:41:51,399
Speaker 1: folks were more comfortable with, you know, even six months ago. Right.

899
00:41:52,040 --> 00:41:54,719
Speaker 1: But then beyond that, lots of individuals have seen the

900
00:41:54,719 --> 00:41:58,040
Speaker 1: comfort that having a thicker cushion in the emergency fund.

901
00:41:58,200 --> 00:42:00,279
Speaker 1: You know what, that's been able to do for them.

902
00:42:00,320 --> 00:42:03,120
Speaker 1: But then Sarah, beyond that, it sounds like you have

903
00:42:03,239 --> 00:42:05,400
Speaker 1: some shorter term goals, you know, maybe another house you

904
00:42:05,400 --> 00:42:08,920
Speaker 1: mentioned that, uh, and so for everything short term related

905
00:42:08,960 --> 00:42:10,880
Speaker 1: like that, we would recommend for you to keep that

906
00:42:10,920 --> 00:42:14,160
Speaker 1: money still there within your high interest savings account. Maybe

907
00:42:14,160 --> 00:42:16,640
Speaker 1: it's also but maybe it's something completely unrelated. Now is

908
00:42:16,680 --> 00:42:19,399
Speaker 1: like truly the really fun part. But anytime you're trying

909
00:42:19,400 --> 00:42:22,239
Speaker 1: to earmark some money for some shorter term goals like that,

910
00:42:22,719 --> 00:42:24,520
Speaker 1: you definitely want to make sure that you do keep

911
00:42:24,560 --> 00:42:27,080
Speaker 1: that cash available in liquid and keep that in the

912
00:42:27,120 --> 00:42:29,320
Speaker 1: savings account. Yeah, for people that want to be smart

913
00:42:29,360 --> 00:42:32,360
Speaker 1: with their money, Matt, I feel like the decreasing payout

914
00:42:32,680 --> 00:42:35,080
Speaker 1: in regards to savings account it's such a pain point

915
00:42:35,360 --> 00:42:38,480
Speaker 1: because you know that you can make more money investing

916
00:42:38,520 --> 00:42:42,160
Speaker 1: over the long haul. But if you're planning, like Sarah said,

917
00:42:42,200 --> 00:42:43,720
Speaker 1: to buy a house in the next couple of years,

918
00:42:44,080 --> 00:42:46,240
Speaker 1: you have to basically take that punch to the gut

919
00:42:46,760 --> 00:42:50,160
Speaker 1: of point seven five percent interest rate on your savings

920
00:42:50,239 --> 00:42:52,480
Speaker 1: and you have to deal with it because that's the

921
00:42:52,560 --> 00:42:54,560
Speaker 1: only way you can ensure that you're going to have

922
00:42:54,719 --> 00:42:57,799
Speaker 1: that capital still in your account when you are ready

923
00:42:57,800 --> 00:43:00,000
Speaker 1: to move forward and use that money in the near future.

924
00:43:00,239 --> 00:43:02,479
Speaker 1: If you put it in an investment account, who knows

925
00:43:02,760 --> 00:43:04,359
Speaker 1: where the market's going to be in a couple of years,

926
00:43:04,480 --> 00:43:06,240
Speaker 1: and you could really put yourself in a bad spot

927
00:43:06,239 --> 00:43:08,520
Speaker 1: where you can't afford to buy that house because you

928
00:43:08,600 --> 00:43:10,800
Speaker 1: made too risky of a move with short term money.

929
00:43:10,960 --> 00:43:12,719
Speaker 1: But Sarah, best of luck to you. Hopefully that gave

930
00:43:12,760 --> 00:43:14,920
Speaker 1: you kind of like a step by step picture of

931
00:43:14,960 --> 00:43:17,960
Speaker 1: how you should approach this money, and best of luck

932
00:43:18,000 --> 00:43:20,719
Speaker 1: as you keep moving forward in your financial life. Yeah, man,

933
00:43:21,000 --> 00:43:23,680
Speaker 1: that's it alright, five of five questions answered. It's time

934
00:43:23,719 --> 00:43:25,640
Speaker 1: to shift gears. Take it back to the beer man.

935
00:43:25,920 --> 00:43:30,080
Speaker 1: This episode, you and I were drinking a subluminal Imperial stout,

936
00:43:30,120 --> 00:43:32,440
Speaker 1: and you said it correctly there at the beginning. Listeners

937
00:43:32,440 --> 00:43:35,160
Speaker 1: may have been like, what's subluminal mean? Actually don't know,

938
00:43:35,360 --> 00:43:38,640
Speaker 1: but it's not subliminal. It's subluminal. It kind of has

939
00:43:38,680 --> 00:43:42,160
Speaker 1: like a prettier sound to it. Yeah, And honestly, man,

940
00:43:42,280 --> 00:43:45,720
Speaker 1: the beer was pretty beautiful too. It was a really

941
00:43:45,880 --> 00:43:49,319
Speaker 1: dark stout, had a lot of bitter, dark chocolate notes

942
00:43:49,360 --> 00:43:51,600
Speaker 1: to it, kind of like a Russian Imperial stout. Style,

943
00:43:51,800 --> 00:43:54,239
Speaker 1: which I am a big fan of. Actually prefer the

944
00:43:54,320 --> 00:43:57,920
Speaker 1: darker stouts and the sweeter, more milk stout sort of stuff.

945
00:43:58,160 --> 00:43:59,800
Speaker 1: I don't mind those, but I'll take a bitter stout

946
00:43:59,800 --> 00:44:01,920
Speaker 1: over sweet stout any day of the week. Yeah. I

947
00:44:01,920 --> 00:44:03,640
Speaker 1: wonder if this is because this is an older bottle.

948
00:44:03,680 --> 00:44:05,600
Speaker 1: I noticed on the label it says it was bottled

949
00:44:05,600 --> 00:44:09,480
Speaker 1: in March, and I think sometimes when you age stouts

950
00:44:09,560 --> 00:44:12,240
Speaker 1: like that, the yeast continues to actually eat the sugars,

951
00:44:12,239 --> 00:44:14,920
Speaker 1: which creates more alcohol, but it also means that the

952
00:44:14,920 --> 00:44:17,319
Speaker 1: beer is less sweet. I'm not a scientist, but I'm

953
00:44:17,320 --> 00:44:19,799
Speaker 1: pretty sure that's how it works. But I agree, man

954
00:44:19,840 --> 00:44:21,239
Speaker 1: knows a little more bitter. It kind of had like

955
00:44:21,239 --> 00:44:23,880
Speaker 1: a bitter cocoa nibs flavor going on. It almost had

956
00:44:23,920 --> 00:44:26,520
Speaker 1: this kind of early and slick, kind of earthy notes

957
00:44:26,560 --> 00:44:28,279
Speaker 1: going on it. It kind of reminded me of like

958
00:44:28,320 --> 00:44:30,680
Speaker 1: soy sauce a little bit. Maybe that's because I'm half

959
00:44:30,719 --> 00:44:33,880
Speaker 1: Korean that I think that dark Beers says like soy sauce,

960
00:44:33,920 --> 00:44:35,959
Speaker 1: But to me, it had it going on. But because

961
00:44:36,000 --> 00:44:38,359
Speaker 1: it was a more bitter style like that, it made

962
00:44:38,360 --> 00:44:40,919
Speaker 1: it honestly really easy to drink because sometimes when they're

963
00:44:40,920 --> 00:44:43,480
Speaker 1: really heavy and sweet and sugary like that, you kind

964
00:44:43,520 --> 00:44:45,320
Speaker 1: of you know, you leave the last couple of ounces

965
00:44:45,320 --> 00:44:46,879
Speaker 1: in your glass and you almost don't want to finish

966
00:44:46,920 --> 00:44:48,840
Speaker 1: it because you feel a little full. That wasn't the

967
00:44:48,880 --> 00:44:50,640
Speaker 1: case for this one. I'm glad you picked this one up.

968
00:44:50,760 --> 00:44:52,400
Speaker 1: And speaking of picking it up, actually just picked up

969
00:44:52,400 --> 00:44:54,799
Speaker 1: the bottle and the labels like rough. It's almost kind

970
00:44:54,840 --> 00:44:56,719
Speaker 1: of like a fine grit sand paper. I've never I

971
00:44:56,719 --> 00:44:58,640
Speaker 1: don't think I've ever felt a label like this before.

972
00:44:58,719 --> 00:45:00,880
Speaker 1: It is interesting, by the way, it's a really grippy.

973
00:45:00,880 --> 00:45:03,839
Speaker 1: It said it was bottled in March, but it's best

974
00:45:03,840 --> 00:45:08,440
Speaker 1: by March of so yes, stouts like this can age

975
00:45:08,480 --> 00:45:11,560
Speaker 1: well and can hold for a number of years, so

976
00:45:11,920 --> 00:45:14,160
Speaker 1: I kind of like aging stuff from time to time.

977
00:45:14,360 --> 00:45:16,960
Speaker 1: It's always interesting to see how a beer might develop

978
00:45:17,360 --> 00:45:19,640
Speaker 1: while it's sitting on the shelf doing not much of anything,

979
00:45:19,920 --> 00:45:23,040
Speaker 1: kind of like Mike's money back in question one, passive income. Right,

980
00:45:23,120 --> 00:45:25,719
Speaker 1: that's right, Yeah, these beers doing the work for us

981
00:45:25,960 --> 00:45:28,000
Speaker 1: while we're not drinking them. All right, Matt, Well, that's

982
00:45:28,000 --> 00:45:30,279
Speaker 1: gonna do it for this episode. For folks that want

983
00:45:30,280 --> 00:45:32,080
Speaker 1: show notes, just go to our website at how to

984
00:45:32,200 --> 00:45:34,760
Speaker 1: money dot com. And for anybody that wants to submit

985
00:45:34,800 --> 00:45:38,440
Speaker 1: a question to be featured on an upcoming ask htm episode,

986
00:45:38,640 --> 00:45:40,319
Speaker 1: we would love to hear it. Just go to how

987
00:45:40,320 --> 00:45:43,600
Speaker 1: to money dot com slash ask for the simple directions

988
00:45:43,600 --> 00:45:46,320
Speaker 1: for how you can submit your voice question via email

989
00:45:46,440 --> 00:45:48,080
Speaker 1: um and shoot it on over to us. And for

990
00:45:48,080 --> 00:45:50,080
Speaker 1: everyone out there who has left us a review, y'all

991
00:45:50,120 --> 00:45:53,279
Speaker 1: are the best. Reviews help others to find our show,

992
00:45:53,320 --> 00:45:56,320
Speaker 1: and that's what allows Joel and I to continue this podcast.

993
00:45:56,400 --> 00:45:59,600
Speaker 1: You continue to put out great content or average content

994
00:45:59,760 --> 00:46:02,440
Speaker 1: or I mean I would say average plus. Okay, all right, yeah,

995
00:46:02,440 --> 00:46:04,640
Speaker 1: people are gonna listen to something that's good. This is good.

996
00:46:05,000 --> 00:46:06,520
Speaker 1: But if you haven't left us a review, you still

997
00:46:06,520 --> 00:46:08,680
Speaker 1: have a chance of also being the best. Just head

998
00:46:08,680 --> 00:46:10,800
Speaker 1: over to an Apple podcast and leave us a solid

999
00:46:10,840 --> 00:46:13,080
Speaker 1: one over there. So Joel, that's going to be a

1000
00:46:13,120 --> 00:46:16,160
Speaker 1: buddy for this episode. Until next time, best Friends Out,

1001
00:46:16,200 --> 00:46:17,279
Speaker 1: Best Friends Out.