WEBVTT - Friday Flight - Bad RAPs, Price Match Murder, & Premium Points Credit Cards #1020 0:00:00.080 --> 0:00:01.360 Welcome to had the Money. 0:00:01.400 --> 0:00:05.760 I'm Joel, I am Matt, and today we're talking bad raps, 0:00:06.200 --> 0:00:09.119 price match murder, and premium points credit cards. 0:00:27.680 --> 0:00:30.040 That's right, Joel. Everyone can tell that we're back in 0:00:30.080 --> 0:00:32.360 the studio, back in the clubhouse. We're back in the 0:00:32.360 --> 0:00:36.680 saddle here talking about personally very very western saying back 0:00:36.720 --> 0:00:38.600 in the saddle. Yeah, I guess I was thinking about 0:00:38.640 --> 0:00:40.640 was think about Rydan Horse. I talked about falling off 0:00:40.680 --> 0:00:43.200 the horse and getting back on it again. Zealander quote. Man, 0:00:43.240 --> 0:00:46.240 we it's just good to be able to kick folks off, right, 0:00:46.479 --> 0:00:47.640 you know, Like that's one of the things that's so 0:00:47.720 --> 0:00:49.720 great about Friday Flight episodes is I feel like I 0:00:49.760 --> 0:00:51.879 get that we get to join our listeners as they 0:00:51.960 --> 0:00:55.000 kick off their weekend. They're thinking about us as they're 0:00:55.040 --> 0:00:57.760 like hanging out Friday night doing fun things on Saturday, 0:00:58.480 --> 0:01:00.240 which Matt and Joel were here. Yeah exactly. It's like 0:01:00.240 --> 0:01:02.360 we're tagging along with you. We wish we were too. 0:01:02.640 --> 0:01:04.640 I'd love to be at your grandma's birthday party or 0:01:04.640 --> 0:01:08.360 speaking of actually grandma's birthday parties. My next door neighbor. 0:01:08.680 --> 0:01:10.720 Is any grandma birthday parties? Recently? 0:01:10.880 --> 0:01:12.959 I have so my next door neighbor is actually a 0:01:13.000 --> 0:01:16.400 great grandma. She just turned one hundred years old this 0:01:16.440 --> 0:01:18.520 past weekend, so we. 0:01:18.520 --> 0:01:20.479 Have your one hundred. You should be like a great 0:01:20.560 --> 0:01:23.440 great grandma, I know, right, I mean may as well. 0:01:23.480 --> 0:01:25.320 I don't think she's close to that status. Okay. 0:01:26.680 --> 0:01:31.080 So she's just awesome, lovely person. And actually she's got 0:01:31.120 --> 0:01:33.680 an older sister, which is which is cool. So her 0:01:33.760 --> 0:01:36.119 geens are incredible. But one of the things that they 0:01:36.120 --> 0:01:40.120 had displayed at her birthday party that her son put 0:01:40.160 --> 0:01:44.520 together was this like fake newspaper article and it was 0:01:45.040 --> 0:01:47.440 hearkening back to simpler times of one hundred years ago 0:01:47.440 --> 0:01:50.160 when she was born and what things cost back then. 0:01:50.560 --> 0:01:53.640 And I took a picture and my daughter and I 0:01:53.760 --> 0:01:55.960 were like looking over it, and she was like, how 0:01:55.960 --> 0:01:59.280 did stuff cost that little? Until we were it's really cool. 0:01:59.320 --> 0:02:01.240 So I figured I would share a couple of things. 0:02:01.440 --> 0:02:06.080 A new house in nineteen twenty five cost six thousand dollars. 0:02:06.520 --> 0:02:06.960 A new car. 0:02:07.000 --> 0:02:08.520 Can you guess how much a new car costs Matt 0:02:08.560 --> 0:02:11.400 in ninety twenty five six hundred dollars three hundred ninety 0:02:11.400 --> 0:02:12.440 dollars two. 0:02:12.360 --> 0:02:14.959 LUs six hundred for the for the premium model, right, yes, 0:02:15.120 --> 0:02:17.600 which you would have been if you wanted the leather 0:02:17.639 --> 0:02:20.880 appointed seats with a nice wood. They weren't doing that thing. 0:02:20.919 --> 0:02:23.040 They weren't doing that back then. That's another reason why 0:02:23.080 --> 0:02:25.760 things are so expensive now is because everything is so nice. Yeah, 0:02:25.800 --> 0:02:28.040 as opposed to just being kind of like the point 0:02:28.080 --> 0:02:30.320 A to point B. This is made of steel. Yeah, yeah, 0:02:30.639 --> 0:02:34.080 at onone break gotten fancy or bigger, lots more amenities. Okay, 0:02:34.200 --> 0:02:36.600 what do you think a loaf of bread cost? Oh 0:02:36.639 --> 0:02:40.000 a loaf of bread? Was that like ten cents? Spot on? 0:02:40.160 --> 0:02:41.880 Is it really? Yeah? Well I'm thinking about when it 0:02:42.040 --> 0:02:43.640 like five cents to go see like a movie? So 0:02:44.000 --> 0:02:46.600 was it? Was it? What a state cost a steak? Yeah? 0:02:46.639 --> 0:02:49.920 If a loaf of bread was ten cents the a steak, 0:02:50.200 --> 0:02:53.480 iman's say seventeen thirty six cents? Oh okay, okay, but 0:02:53.560 --> 0:02:56.119 here's the kicker. That's the thing. I bet beef. Back then, 0:02:56.639 --> 0:03:01.760 everything was free range, grass fed, no antibiotics because none 0:03:01.760 --> 0:03:03.799 of that stuff existed. That's true to one hundred years ago. 0:03:04.480 --> 0:03:06.880 What do you think the average income was one hundred 0:03:06.960 --> 0:03:09.760 years ago? Per year one hundred years ago, I don't 0:03:09.760 --> 0:03:12.640 know man average income. Okay, So you said a house 0:03:12.680 --> 0:03:14.720 costs six thousand dollars, So I'm going to say that 0:03:15.040 --> 0:03:16.799 it would make sense back in the day if you're 0:03:16.840 --> 0:03:19.040 like I saved up to buy this house for five years, 0:03:19.080 --> 0:03:19.880 so I'm going to say about a. 0:03:19.880 --> 0:03:22.560 Thousand bucks okay, close fourteen hundred Okay, Yeah, so you 0:03:22.560 --> 0:03:23.600 made pretty good guesses there. 0:03:24.919 --> 0:03:27.160 Put me in the hot seat. Well, I didn't like that. 0:03:27.400 --> 0:03:29.359 I wanted to know, like, because I think it can 0:03:29.440 --> 0:03:32.359 be dispiriting at times for people to see like, oh, yeah, 0:03:32.400 --> 0:03:35.119 my grandma paid like fifteen grand maybe for her house 0:03:35.120 --> 0:03:36.360 and that would have been an expensive house. Right. 0:03:36.360 --> 0:03:37.960 It's important to pay attention to the income side of 0:03:38.040 --> 0:03:40.200 things too. It's not just the outgoing what were yeah, 0:03:40.240 --> 0:03:41.200 what were they earning back then? 0:03:41.320 --> 0:03:44.000 It is and also much more than that, it's important 0:03:44.000 --> 0:03:47.360 to pay attention to investment returns. So I was curious, Okay, 0:03:47.360 --> 0:03:49.480 what if you invested one hundred dollars, which is obviously 0:03:49.480 --> 0:03:51.320 a lot more than one hundred dollars today, But what 0:03:51.360 --> 0:03:54.000 if you had invested one hundred dollars and you never 0:03:54.080 --> 0:03:56.920 invested again for the rest of your life. And it 0:03:56.920 --> 0:03:59.040 depends obviously on the rate of return, but. 0:03:59.120 --> 0:04:03.200 Just a one time I'm lump sum depositive one time deposit. Yeah, yeah, 0:04:03.360 --> 0:04:05.440 you would have an idea. You know, it depends on 0:04:05.720 --> 0:04:08.280 like returns and inflation and all that stuff, but you'd 0:04:08.280 --> 0:04:11.160 have what I do know that as ten percent average, 0:04:11.760 --> 0:04:14.200 a nearly compounded Yeah, because that's that I am familiar 0:04:14.240 --> 0:04:16.840 with that we have talked about over the course of 0:04:16.839 --> 0:04:17.680 the past hundred year. O. 0:04:17.720 --> 0:04:19.839 Well, I looked it up on a site called official 0:04:20.080 --> 0:04:22.840 data dot com. Give it to me hundred bucks. Put 0:04:22.880 --> 0:04:25.240 it in nineteen twenty four and year twenty twenty five 0:04:25.920 --> 0:04:27.600 in the s and P five hundred, you would have 0:04:27.880 --> 0:04:30.599 two million, seven hundred and sixty eight thousand dollars. 0:04:30.800 --> 0:04:33.880 Oh yeah, so one hundred right, one hundred bucks. So 0:04:33.920 --> 0:04:34.599 what do you think about that? 0:04:34.640 --> 0:04:36.480 I mean, most of us don't have one hundred year 0:04:36.520 --> 0:04:39.480 investing timeline, right, We've got maybe half that at most 0:04:40.080 --> 0:04:43.160 because we start spending down that money at some point too. 0:04:43.279 --> 0:04:47.599 But I just think investing is the way to counteract 0:04:48.480 --> 0:04:50.839 a higher rising prices. And yeah, I saw a quote 0:04:50.920 --> 0:04:52.680 or I saw Warren Buffett. Resounds like looking at old 0:04:52.680 --> 0:04:54.680 warm buffet videos on YouTube because that's what I do 0:04:54.800 --> 0:04:57.680 in my spare time because I'm weird, and you know, 0:04:57.720 --> 0:05:01.080 he was talking about, Yeah, how just saving. Think about 0:05:01.160 --> 0:05:02.679 how much it's going to cost to go to Disney 0:05:02.720 --> 0:05:04.480 World next year. That's what he used as an example, 0:05:04.920 --> 0:05:06.920 And well, the price on that's gonna go up. If 0:05:06.920 --> 0:05:09.560 you're saving, yeah, maybe your saving straight will keep up, 0:05:09.640 --> 0:05:12.480 maybe with the price higher price of Disney World tickets. 0:05:12.560 --> 0:05:15.839 But if you're investing, that's how you grow your money 0:05:15.839 --> 0:05:18.479 so that you can much more easily afford Disney World 0:05:18.480 --> 0:05:20.479 tickets in the years to come. And I think that's 0:05:20.480 --> 0:05:23.039 just a practical way to think about it. So I 0:05:23.160 --> 0:05:25.359 looking back at those prices, I think the first initial 0:05:25.440 --> 0:05:27.680 knee jerk for a lot of people at Miss Betty's 0:05:27.680 --> 0:05:30.400 party was like, gosh, wouldn't it be nice depression if 0:05:30.400 --> 0:05:32.599 my state, Yeah, if my state costs thirty six cents, 0:05:32.800 --> 0:05:36.039 and now it's like eighteen dollars a pound. But you 0:05:36.080 --> 0:05:38.000 look at the flip side of it, and it's like, oh, man, 0:05:38.080 --> 0:05:41.479 if you were savvy with your money, actually inflation didn't 0:05:41.520 --> 0:05:44.360 toast you like you. If you invested, you would more 0:05:44.400 --> 0:05:46.440 than keep up with inflation, you would far surpass it. 0:05:46.560 --> 0:05:48.800 Indeed, indeed, all right, this is our Friday flight, though 0:05:48.800 --> 0:05:50.760 we're going to cover a lot of the different stories 0:05:50.760 --> 0:05:52.839 that we've come across, not just this past week, but 0:05:52.839 --> 0:05:56.400 we have some lost ground to catch up on, Joel. 0:05:56.040 --> 0:05:59.960 The Big Beautiful Bill, which it's no longer called that 0:06:00.080 --> 0:06:02.520 now is now it's the One Big Beautiful Bill Act. 0:06:02.640 --> 0:06:07.320 So ohbbb OBBBA is what we have to call it. OBA. 0:06:07.600 --> 0:06:10.320 But that passed about a month ago, which, uh, you know, 0:06:10.440 --> 0:06:13.599 prioritize the current goals of the current administration over the 0:06:13.600 --> 0:06:17.040 long term fiscal responsibilities of our country. But it did 0:06:17.040 --> 0:06:20.640 cover a lot of ground, including extending the tax cuts 0:06:20.640 --> 0:06:21.880 and jobs at. 0:06:22.200 --> 0:06:25.320 I can say just from like how the sausage gets made. 0:06:25.320 --> 0:06:28.440 Wouldn't it be nice if we had more bills that 0:06:28.520 --> 0:06:30.840 were smaller in scope that we can more easily understand 0:06:30.960 --> 0:06:32.720 how it used to go down, But sadly everything gets 0:06:32.760 --> 0:06:35.120 shoved into one big the most. 0:06:34.920 --> 0:06:37.560 Bill is how it goes down now. Yeah. So, but 0:06:37.640 --> 0:06:39.599 what we're gonna do, we're gonna do old old school, 0:06:39.800 --> 0:06:41.920 old school like Congress used to do it. We're gonna 0:06:41.920 --> 0:06:44.200 break things down. So instead of doing one long, boring, 0:06:44.200 --> 0:06:46.800 walky episode, we'll cover some of the A lot of 0:06:46.839 --> 0:06:49.160 the different elements kind of sprinkled throughout the episodes. In 0:06:49.200 --> 0:06:51.279 the coming weeks the ones that we think are going 0:06:51.320 --> 0:06:54.520 to be most impactful to listeners. And so the raising 0:06:54.760 --> 0:06:58.200 of the salt deductions from ten thousand dollars to forty 0:06:58.240 --> 0:07:01.440 thousand dollars, that was a quite a contentious part of 0:07:01.480 --> 0:07:04.760 the bill, but it's going to particularly benefit folks in 0:07:04.800 --> 0:07:08.280 the most expensive states out there, like New York or California. 0:07:08.360 --> 0:07:10.880 That comes to mind, and some people were saying, well, 0:07:11.000 --> 0:07:14.800 the reason that population they're getting having population drain, especially 0:07:14.840 --> 0:07:16.840 at the higher end of the income ladder in those states, 0:07:16.920 --> 0:07:21.280 was because of that salt deduction cap, because it was 0:07:21.320 --> 0:07:25.320 really costing people in high tax states a lot of 0:07:25.320 --> 0:07:27.400 money on their taxes by having that in place. So 0:07:27.440 --> 0:07:28.160 that was kind of part of this. 0:07:28.480 --> 0:07:30.280 It felt like they're leaving money on the table basically 0:07:30.320 --> 0:07:31.760 when they're just like when they're capped at ten thousand 0:07:31.800 --> 0:07:33.920 dollars and they're saying, I've got plenty more I could 0:07:34.000 --> 0:07:37.280 itemize here to get deducted off my taxes. So, yeah, 0:07:37.360 --> 0:07:39.880 that's lifted up to forty thousand dollars. Now. Another group 0:07:39.920 --> 0:07:41.560 of folks who are going to see their taxes go down 0:07:41.640 --> 0:07:45.160 are folks who are sixty five and older, which certainly 0:07:45.200 --> 0:07:48.720 isn't a huge portion of our audience, but it's a 0:07:48.720 --> 0:07:53.120 straight up six thousand dollars deduction per person. And this 0:07:53.240 --> 0:07:55.560 is for couples who are earning less than one hundred 0:07:55.600 --> 0:07:59.160 and fifty thousand dollars. This is quite significant. So you're 0:07:59.200 --> 0:08:01.720 looking at a total of twelve thousand dollars straight up deduction. 0:08:01.880 --> 0:08:03.880 And again, we talked about we talked about this like 0:08:03.920 --> 0:08:07.840 maybe a couple of months ago, about the finitude of 0:08:07.880 --> 0:08:10.679 this bill, that oh, it's all this stuff that's happening, 0:08:11.080 --> 0:08:13.080 but really it's only locked in. A lot of the 0:08:13.520 --> 0:08:15.800 changes are baked in for a few years. So even 0:08:15.800 --> 0:08:18.400 those the tax cuts, right, the tax cuts and job 0:08:18.440 --> 0:08:21.000 backed that we're supposed to be made permanent in this well, 0:08:21.080 --> 0:08:23.160 even though they're extended for a few more years. So 0:08:23.200 --> 0:08:26.400 this is going to be another political battle, you know 0:08:26.480 --> 0:08:28.600 that we can see on the timeline and then not 0:08:28.600 --> 0:08:30.560 too distant future, we're gonna have a lot more discussions 0:08:30.600 --> 0:08:32.719 about this, and we're going to have another bill passed. 0:08:32.480 --> 0:08:35.360 Re visit it, which I've heard arguments for that for 0:08:35.480 --> 0:08:37.960 this sort of natural sunsetting of some of these provisions, 0:08:38.000 --> 0:08:41.040 and there's arguments for it, there's also arguments against it, 0:08:41.240 --> 0:08:43.120 of course, because it's like, oh, this is the short 0:08:43.200 --> 0:08:45.440 term kind of let's make the people happy. But I 0:08:45.440 --> 0:08:48.480 think it's also from a fiscal again responsibility standpoint, it 0:08:48.480 --> 0:08:50.200 can be helpful to be like, hey, this is going 0:08:50.240 --> 0:08:51.360 to come back on the table and we're going to 0:08:51.360 --> 0:08:53.000 talk about it again. Don't assume that this is going 0:08:53.040 --> 0:08:54.160 to stick around, yeah, forever. 0:08:54.320 --> 0:08:56.920 I think it's more of a political feet to the 0:08:56.960 --> 0:08:59.760 fire thing though, and it's like, well, you're not for 0:09:00.440 --> 0:09:02.400 so that's where that's this. We're going to how we're 0:09:02.400 --> 0:09:04.280 going to run against you, and that's what the ads 0:09:04.280 --> 0:09:07.200 are going to say. Another random part of this bill 0:09:07.480 --> 0:09:10.280 is the car loan interest deduction up to ten thousand 0:09:10.320 --> 0:09:12.160 dollars a year that people can take if they buy 0:09:12.280 --> 0:09:15.080 a US assembled car and they have a loan on 0:09:15.080 --> 0:09:18.440 that car. Right, Matt, what do we think of this? 0:09:18.880 --> 0:09:19.040 Are? 0:09:19.040 --> 0:09:21.760 We are we fans? This is like one of my 0:09:21.840 --> 0:09:25.680 least favorite parts random things thrown into this bill because 0:09:25.800 --> 0:09:28.560 I think it's going to help some people rationalize taking 0:09:28.600 --> 0:09:30.880 out a loan on a new car when car loans 0:09:30.920 --> 0:09:35.240 are pretty much always a bad idea. The average person, 0:09:35.520 --> 0:09:37.960 like think about, you know, cars are more expensive. Interest 0:09:38.040 --> 0:09:39.720 rates have gone up on cars, and this feels like 0:09:40.120 --> 0:09:42.320 throwing a bone into people. Hey, you bought that expensive 0:09:42.320 --> 0:09:44.120 new car and you got this nine percent interest rate. 0:09:44.320 --> 0:09:47.439 You're probably paying something like two twenty five hundred dollars 0:09:47.480 --> 0:09:51.600 a year in interest on that car. So we'll at 0:09:51.679 --> 0:09:53.680 least allow you to save taxes on that. The average 0:09:53.720 --> 0:09:56.040 person new car buyer is going to save something like 0:09:56.080 --> 0:10:00.880 four hundred dollars a year in taxes because of this 0:10:00.920 --> 0:10:03.880 thing included in the bill. And yeah, I'm just not 0:10:03.920 --> 0:10:05.280 a fan because I think people will be able to 0:10:05.320 --> 0:10:07.040 rationalize and say, now I get the tax incentive, I 0:10:07.080 --> 0:10:09.240 might as well keep that loan around. When car loans 0:10:09.320 --> 0:10:12.319 are a bad idea, dig into the details about your 0:10:12.360 --> 0:10:15.440 income because of income over a certain threshold, you won't qualify. 0:10:15.480 --> 0:10:18.960 And also what car make and model qualifies, because you 0:10:19.000 --> 0:10:21.360 need to know that before buying it. And even still, 0:10:21.559 --> 0:10:24.319 don't let that sway you into buying a new car 0:10:24.559 --> 0:10:27.040 and taking out a sick loan that's going to cost 0:10:27.080 --> 0:10:28.840 you a lot of money every month on the car. 0:10:28.880 --> 0:10:32.199 Note too, ev tax credits on both new and used vehicles. 0:10:32.240 --> 0:10:35.480 They are going away because of the One Big Beautiful 0:10:35.520 --> 0:10:38.959 Bill Act September thirtieth thirtieth is the last day you're 0:10:38.960 --> 0:10:42.000 going to be able to get that tax incentive for 0:10:42.080 --> 0:10:46.280 buying an electric vehicle. So the effective price of EV's 0:10:46.360 --> 0:10:48.679 is going to go up significantly. I think it's going 0:10:48.720 --> 0:10:50.920 to make it less enticing to switch. I mean, I 0:10:50.960 --> 0:10:52.880 told you that I canceled my. 0:10:53.840 --> 0:10:55.959 No, I'm just gonna be out here driving my Slate truck, 0:10:56.040 --> 0:10:59.240 my slate, my cool little Lego truck, all by myself. 0:10:59.280 --> 0:11:01.880 I thought we're gonna have I know, sorry, man, I 0:11:01.880 --> 0:11:02.880 guess it's just gonna be me. 0:11:02.920 --> 0:11:05.080 And they're they're adorable and we would have looked good 0:11:05.120 --> 0:11:08.080 riding next to each other in those trucks. But part 0:11:08.120 --> 0:11:11.720 of the appeal was not just its low price point, 0:11:11.760 --> 0:11:14.640 but low price price point with EV tax credit. And 0:11:14.720 --> 0:11:17.520 I actually just bought a new used car we should 0:11:17.520 --> 0:11:19.440 talk about on the show, a twenty year old car, 0:11:19.600 --> 0:11:22.720 not not anything close to new. But that's why I 0:11:22.720 --> 0:11:25.040 canceled my order. It is because oh I got this 0:11:25.480 --> 0:11:27.320 new used car that's gonna last me, I think a 0:11:27.360 --> 0:11:29.800 long time. Also, the Slate card. 0:11:29.679 --> 0:11:31.079 Is not it's not gonna be as cheap as I 0:11:31.080 --> 0:11:32.400 thought it was going to be. If they take away 0:11:32.440 --> 0:11:34.880 the tax credits, seventy five hundred dollars tax or a 0:11:35.080 --> 0:11:37.000 price bomp as we're straight up, I mean, that's a 0:11:37.000 --> 0:11:39.760 big deal. It's it's crazy that some folks that was 0:11:39.800 --> 0:11:41.960 like real money, right Like, I mean, that was an 0:11:42.000 --> 0:11:44.520 instance to where it's not this it's not a deduction 0:11:44.800 --> 0:11:47.000 of your income that's going to then reduce your tax bill. 0:11:47.000 --> 0:11:48.760 This is a tax that was a tax credit. Yeah, 0:11:49.040 --> 0:11:51.679 so dollar for dollar is how the price of those 0:11:51.679 --> 0:11:53.599 evs was reduced, which is quite significant. 0:11:53.600 --> 0:11:55.360 Well on that, on that front, we should just mention 0:11:55.760 --> 0:11:58.240 they didn't. This bill didn't only pull back ev tax credits. 0:11:58.240 --> 0:12:02.040 It's also pulling back energy efficient home repair tax credits 0:12:02.840 --> 0:12:04.719 because yeah, that was supposed to have a long way 0:12:04.760 --> 0:12:06.480 I think long runway. I think it was supposed to 0:12:07.000 --> 0:12:10.440 expire in like twenty thirty two something like that, but 0:12:10.480 --> 0:12:12.880 they're going away at the end of this year. So 0:12:12.920 --> 0:12:15.920 if you have upgrades you're planning on making to your home, 0:12:16.040 --> 0:12:18.920 well then get them done in a timely manner. If 0:12:18.920 --> 0:12:21.000 you're planning on doing it next year, you probably want 0:12:21.000 --> 0:12:23.160 to do it in just you know, November December something 0:12:23.160 --> 0:12:24.360 like that of this year. So you may all have 0:12:24.520 --> 0:12:27.880 to tax credit. But after this year they're going away. 0:12:28.000 --> 0:12:29.920 Something else I saw. So while we're talking about cars though, 0:12:29.920 --> 0:12:33.280 before we leave that, another reason to avoid buying new cars, 0:12:33.280 --> 0:12:37.280 whether we're talking about electric vehicles or traditional internal combustion 0:12:37.360 --> 0:12:40.800 engine cars, and that's because of a one thousand dollars 0:12:40.840 --> 0:12:44.800 monthly car payment that is no longer the anomaly. I 0:12:44.840 --> 0:12:46.839 saw that one in five buyers are signing up for 0:12:46.880 --> 0:12:49.360 one of these. This is according to Edmunds. And not 0:12:49.440 --> 0:12:52.720 even for thirty six months, not for three years. This 0:12:52.800 --> 0:12:55.880 is often for over six years, which is insane. Man. 0:12:55.960 --> 0:12:58.520 The risk of just blowing your budget and being underwater 0:12:58.760 --> 0:13:01.360 in that loan for a long time is serious. And 0:13:01.400 --> 0:13:03.480 I just crunch them numbers because I'm like, one thousand 0:13:03.480 --> 0:13:05.760 dollars is so much money, man, So I can't fathom 0:13:05.920 --> 0:13:07.720 were you to take that thousand dollars and invest it 0:13:07.760 --> 0:13:10.400 in the market. Two thousand dollars a month agay, which 0:13:10.440 --> 0:13:12.480 is a lot of money. I mean, if you're paying 0:13:12.480 --> 0:13:14.719 that to I don't know. Some folks are like, well, 0:13:14.720 --> 0:13:16.600 I gotta have a car, but you don't need to 0:13:16.640 --> 0:13:19.160 have a brand new car, as Joel just mentioned to 0:13:19.160 --> 0:13:20.880 you're twenty years old, you've got you got. 0:13:20.720 --> 0:13:22.920 A two thousand and six Toyota. I think it's gonna 0:13:22.960 --> 0:13:24.000 last me another decade. 0:13:23.720 --> 0:13:26.959 Four hundred baby, Yeah, yeah, awesome, But it would take 0:13:27.000 --> 0:13:29.959 you twenty seven years before that one thousand dollars a 0:13:30.000 --> 0:13:34.000 month turns into one million dollars. Yeah, one million, Like 0:13:34.400 --> 0:13:36.560 and I know you were just talking about inflation and 0:13:36.600 --> 0:13:38.440 one hundred years ago, one million isn't what it used 0:13:38.480 --> 0:13:41.120 to be, right, It's still still one million dollars is 0:13:41.160 --> 0:13:43.120 a lot of money. And the reason part of why 0:13:43.120 --> 0:13:44.319 we talk about these kind of things here on the 0:13:44.360 --> 0:13:46.559 show is we want people to make informed decisions. They 0:13:46.600 --> 0:13:48.880 just think they have to sign up for these things 0:13:48.920 --> 0:13:52.600 to make these payments. And some folks are gonna be like, yeah, 0:13:52.600 --> 0:13:54.920 it's a million dollars, but that's in twenty seven years, guys, 0:13:55.280 --> 0:13:57.160 and they're gonna choose to go with a nice new car. 0:13:57.360 --> 0:13:59.480 But there's gonna be other folks who say, wait, a 0:13:59.520 --> 0:14:02.160 million dollar dollars. I didn't realize that. That's okay, I'm 0:14:02.160 --> 0:14:04.160 gonna say no to the car, sign me up for 0:14:04.240 --> 0:14:06.960 a million bucks. We want folks to make informed decisions. 0:14:06.960 --> 0:14:08.680 Speaking of home energy things, it makes me think of 0:14:08.679 --> 0:14:10.960 like the yellow energy you stickers. It's like what is 0:14:11.040 --> 0:14:13.040 the cost of this to me over the long haul, 0:14:13.160 --> 0:14:14.480 and essentially that's what you're giving up. 0:14:14.520 --> 0:14:17.880 Yeah, you know, selling my other used car, the accurate 0:14:17.960 --> 0:14:21.360 that so well, the guy, the guy that came over 0:14:22.120 --> 0:14:25.240 and he ended up buying it. Yesterday we were talking 0:14:25.240 --> 0:14:26.920 about that. He was like, the whole point nice of 0:14:26.960 --> 0:14:28.720 me buying this car is so that I don't have 0:14:28.760 --> 0:14:30.800 to have a car payment. And I'm like, I'm with you, man, 0:14:30.800 --> 0:14:32.880 and so we can all for you. You'll have solidarity 0:14:32.920 --> 0:14:33.440 on that point. 0:14:33.480 --> 0:14:34.440 That's that's why you do it. Man. 0:14:34.480 --> 0:14:35.800 I was like proud of him, man as a young 0:14:35.880 --> 0:14:38.000 kid getting started, and I'm like, this thing's going to 0:14:38.040 --> 0:14:41.400 treat you well. And I hope, I mean, I think 0:14:41.440 --> 0:14:43.360 you can treat me well. So I hope that this 0:14:43.400 --> 0:14:45.200 allows you to avoid having a car payment for many. 0:14:45.240 --> 0:14:48.000 Don't make a promise like that where you've got zero 0:14:48.320 --> 0:14:49.440 there's nothing you can do about. 0:14:49.480 --> 0:14:51.680 Hey, this is treating you well. Yeah, it's a depress 0:14:51.680 --> 0:14:53.200 I think you know, I'm like couching it. I'm not 0:14:53.200 --> 0:14:55.080 telling him that this thing's like gold and going to 0:14:55.160 --> 0:14:55.560 run forever. 0:14:55.680 --> 0:14:57.800 Oh yeah, you're right. I can't promise that. 0:14:58.240 --> 0:15:00.000 Let's talk about student loans for a second, like, something 0:15:00.080 --> 0:15:02.840 thing else that changed? Can we say, Bigley, is that 0:15:02.880 --> 0:15:05.760 a is that a President trump ism? That's up to you. Okay, 0:15:05.960 --> 0:15:08.720 so I said, I try not to adopt trump isms. Yeah, personally. 0:15:08.880 --> 0:15:09.200 Okay. 0:15:09.560 --> 0:15:12.800 Well, something else that changed in a big way because 0:15:12.800 --> 0:15:15.000 of this new bill is student loans. Gone are the 0:15:15.080 --> 0:15:18.280 days of past payments and generous repayment plans. The safe 0:15:18.360 --> 0:15:21.200 plan is gone for good and there's something new in 0:15:21.200 --> 0:15:25.120 its place, the Repayment Assistance Plan or RAP. That's that's 0:15:25.160 --> 0:15:27.760 the new thing in town. So if you borrow money, 0:15:27.920 --> 0:15:30.640 does it sound more hip to you because it's rap? Yeah? 0:15:30.680 --> 0:15:36.480 I think so. Let's rap kids, right, Hello, fellow children. 0:15:37.240 --> 0:15:39.920 I forget what Steve Amy says. Oh yeah, what is 0:15:39.920 --> 0:15:41.880 that in? What's that? Happy to go more? I don't 0:15:41.880 --> 0:15:43.080 even know. It's been a while. Yeah. 0:15:43.160 --> 0:15:45.320 If you if you borrow money though from the federal 0:15:45.520 --> 0:15:48.360 student loan program after July first, and we are past 0:15:48.440 --> 0:15:51.480 that date, this is the repayment program you'll be under. 0:15:51.960 --> 0:15:54.960 Our friends at Student Loan Planner. We had Travis hornsbyond 0:15:55.000 --> 0:15:56.000 a few months ago. 0:15:56.200 --> 0:15:56.360 Uh. 0:15:56.400 --> 0:15:59.040 They they are advising extreme caution right now for people 0:15:59.080 --> 0:16:02.080 when they're considering my especially people who already have have 0:16:02.160 --> 0:16:05.000 student loans from the federal government under their belt. They're 0:16:05.040 --> 0:16:07.280 even telling folks, they are telling those folks to consider 0:16:07.360 --> 0:16:11.400 private student loans to avoid having all of your loans, 0:16:11.400 --> 0:16:13.600 because if you already have existing student loans and you 0:16:13.640 --> 0:16:16.080 take out more, they'll all be put onto the rap plan, 0:16:16.120 --> 0:16:18.640 which isn't as generous as the plans you might already 0:16:18.680 --> 0:16:21.400 be on, So be wary for that. We'll link to 0:16:21.760 --> 0:16:24.280 a blog post from them on that, detailing kind of 0:16:24.120 --> 0:16:28.600 some of the intricacies. Also, student loans are accruing interest. Again, 0:16:29.080 --> 0:16:31.240 the average borrower is going to pay more than like 0:16:31.480 --> 0:16:35.080 thirty five hundred dollars a year in interest alone. And 0:16:36.000 --> 0:16:38.600 at the headlines and the details of what's happening to 0:16:38.640 --> 0:16:41.120 student loan borrowers in this country, there's just there's a 0:16:41.120 --> 0:16:43.400 lot of people wringing their hands because they're nervous about 0:16:43.640 --> 0:16:45.000 what this is going to mean and how they're going 0:16:45.040 --> 0:16:47.560 to be able to handle these increased payments back in 0:16:47.600 --> 0:16:48.040 their lives. 0:16:48.160 --> 0:16:51.440 Yeah, I will say moving forward, I don't know. Maybe 0:16:51.520 --> 0:16:53.960 maybe it's because I never had student loans with the 0:16:54.040 --> 0:16:55.840 different income based for payment plans. I feel like I 0:16:55.880 --> 0:16:57.960 could never fully get my head around it. It's like 0:16:58.040 --> 0:17:00.880 just the complexity involved with all the different places. 0:17:00.480 --> 0:17:06.159 All the alphabet soup, and the tiny sliver detailed differences 0:17:06.160 --> 0:17:06.679 in between them. 0:17:06.760 --> 0:17:09.080 I will say the simplicity of Wrap it took me 0:17:09.200 --> 0:17:10.879 five minutes of kind of like reading some of the 0:17:10.880 --> 0:17:13.840 details to fully understand at least I think as to 0:17:13.880 --> 0:17:15.760 what it offers, which I appreciate the simplicity. Yeah, the 0:17:15.760 --> 0:17:18.000 simplicity is great, and it's because it's got this flat 0:17:18.040 --> 0:17:20.679 fee regardless of how much you make. So like basically, 0:17:20.680 --> 0:17:22.520 if you make ten thousand dollars or less, you're still 0:17:22.520 --> 0:17:24.439 going to pay ten bucks. But then beyond that, for 0:17:24.480 --> 0:17:27.520 every thousand dollars, every ten thousand dollars of income, you 0:17:27.600 --> 0:17:30.359 just pay one percent more of your income. So basically, 0:17:30.440 --> 0:17:34.600 if you make thirty seven thousand dollars, you're paying three percent, 0:17:34.680 --> 0:17:37.119 If you make seventy seven thousand dollars, you're paying seven percent. 0:17:37.640 --> 0:17:39.600