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Speaker 1: Joel. These are the rare episodes when I start talking

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Speaker 1: first people like he's the best. I don't think I

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Speaker 1: don't think they do. Actually, But just this morning, man,

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Speaker 1: you and I were talking. We're not surprisingly talking about bikes. Uh,

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Speaker 1: We're talking about mountain biking. And you know, you and

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Speaker 1: I both have previously been really into mountain biking, and

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Speaker 1: we started thinking through, like why don't we do that

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Speaker 1: more often? Right? But then we kind of started thinking

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Speaker 1: through all of these additional expenses that come with a

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Speaker 1: mountain bike. You gotta get a car carrier, because you

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Speaker 1: can't just bike to a trailhead necessarily, at least we

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Speaker 1: can't where we live in the city. You can't exactly. Um,

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Speaker 1: a friend of ours, he's like three out of four

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Speaker 1: times that he's come back from mountain biking, he's come

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Speaker 1: back injured, like he's been even bleeding. The increased medical cost,

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Speaker 1: there's medical constisation with it, and just the time, right,

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Speaker 1: So I mean just driving to uh somewhere where you

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Speaker 1: can go mountain biking, driving back home, posing down your gear,

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Speaker 1: and then of course not to mention just all the

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Speaker 1: small additional paraphernalia, all the additional gear that comes along

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Speaker 1: with getting back into mountain biking. You and I talked

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Speaker 1: about it for a little bit. We decided that, you

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Speaker 1: know what, like it may not be worth it right

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Speaker 1: now to get back into mountain biking. And so we

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Speaker 1: feel that it's important for folks to consider all of

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Speaker 1: the different costs associated with a purchase. And that's what

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Speaker 1: made us think of this particular episode. Yeah, pretty much

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Speaker 1: everything that we buy has secondary costs, and most of

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Speaker 1: the time we don't consider those before we make the purchase.

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Speaker 1: We're like, oh, it's a five mountain bike boom, I'm

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Speaker 1: in and let's do it. Let's go right and yeah,

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Speaker 1: and then you're like, but I need this, this, this

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Speaker 1: and this, and it takes extra time, it's got all

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Speaker 1: these other costs associated with it that I didn't factor

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Speaker 1: in and I wasn't expecting. And so yeah, I think

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Speaker 1: this episode was really a call to add that next

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Speaker 1: level thinking into a purchase before you make the purchase,

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Speaker 1: so that you don't over spend, over extend yourself when

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Speaker 1: it comes to your budget. And and I think sometimes

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Speaker 1: we have those secondary costs that we haven't strongly considered.

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Speaker 1: Our are what do end up wrecking our budget. And additionally,

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Speaker 1: I feel like they can kind of sometimes suck the

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Speaker 1: fun out of, you know, the activity to begin with.

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Speaker 1: Like when it comes to hobbies, do you think, oh, yeah,

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Speaker 1: this is gonna be just this little thing I do.

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Speaker 1: But then before you know it, when it takes that

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Speaker 1: much money and that much time, you almost feel guilty.

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Speaker 1: I feel guilty sometimes when things end up costing more

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Speaker 1: money than I expect. And and so yeah, there's just

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Speaker 1: lots of different ways to think about these additional expenses

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Speaker 1: that a company purchases, and they creep in so much

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Speaker 1: of the time, and and it's and it can't be frustrating,

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Speaker 1: I agree if it's something that you want to be

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Speaker 1: an inexpensive hobby and then you find yourself norre not

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Speaker 1: on the gear that accompanies it, and you spend too much,

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Speaker 1: and it makes the hobby sometimes a little bit less fun,

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Speaker 1: a little bit less desirable. So, without further ado, let's

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Speaker 1: get to our Bestie episode. This is a replay of

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Speaker 1: an episode we created a couple of years ago specifically

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Speaker 1: about secondary cost And here we go, Welcome to how

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Speaker 1: to Money. I'm Joel and I'm Matt, and today we're

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Speaker 1: discussing why everything costs more than you think, Joel, you

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Speaker 1: and I are best friends. A lot of our new

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Speaker 1: listeners may have heard that, but they don't know how

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Speaker 1: we got to be friends. How deep this friendship runs.

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Speaker 1: Do you do you remember when we first met? Honestly, dude,

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Speaker 1: I don't. It was it made that much of an

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Speaker 1: impression on you. If you remember our origin story, please

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Speaker 1: honestly share. Yeah, honestly, I don't remember when we actually met.

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Speaker 1: The first memory, though, that I do have is some

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Speaker 1: friends of ours, mutual friends, had invited Kate and I

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Speaker 1: over to play some board games and you and Emily

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Speaker 1: were also there, and I think we may have been

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Speaker 1: playing some original uh Settlers of Kitan. Oh yeah, that's

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Speaker 1: like that sound about right. It's like the gateway drug

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Speaker 1: for nerdy board games. Yeah, so I think this is

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Speaker 1: about eight years ago, and yeah, that's when we that's

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Speaker 1: when we first started hanging out. I don't have anything

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Speaker 1: specific about that night. I'm sure I whipped your tail

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Speaker 1: some Settlers, but unlikely. That is funny that it started

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Speaker 1: out with us playing board games, because we're both super

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Speaker 1: into nerdy board games. We did a whole episode on

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Speaker 1: it back in the day, and we made recommendations kind

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Speaker 1: of for some of our favorites. But yeah, dude, I

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Speaker 1: think it's not a knock on you because obviously we're

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Speaker 1: best friends. But I barely remember like the birth of

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Speaker 1: my first daughter. Now, I just feel like so many

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Speaker 1: five years have passed and that part of my memory

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Speaker 1: is just almost gone. I feel like the most cemented

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Speaker 1: memories I have of our friendship going back were two

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Speaker 1: times that we traveled together as couples, and the first

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Speaker 1: one was we left on Halloween like six years ago

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Speaker 1: and we went to Ireland together as a family, and

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Speaker 1: I think we mentioned that on the podcast at one

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Speaker 1: at one point. And then a trip that we had

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Speaker 1: to the Keys, which we kind of piggybacked on you

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Speaker 1: having a photo shoot a wedding that you had to

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Speaker 1: shoot down there, and we kind of stayed together. And

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Speaker 1: that trip to the Keys, when we had our our

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Speaker 1: oldest daughters were only just a few months old. I

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Speaker 1: just distinctly remember that trip to Those are kind of

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Speaker 1: the memories that really are cemented from our early friendship days.

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Speaker 1: So basically you'll remember things where there's pictures associated with

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Speaker 1: it that you can go back and see pretty much. Yeah,

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Speaker 1: So it's interesting you mentioned that that sort of Keys

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Speaker 1: Florida Keys work photography trip because I remember, actually before

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Speaker 1: even Ireland, was one time when Kate and I did

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Speaker 1: some photography work for a restaurant and one of the

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Speaker 1: things that we negotiated with them was that we got

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Speaker 1: a Sweet Fats get certificate. That's right, Yeah, they paid

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Speaker 1: us in food and this place is really good. This

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Speaker 1: is a really great restaurant here in Atlanta. And that

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Speaker 1: was super early on in our friendship, very very early on. Yeah,

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Speaker 1: you invited us to this fancy dinner. I was like, oh,

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Speaker 1: I don't know him like that, but well, the reason

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Speaker 1: being because so yeah, we got this huge gift certificate

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Speaker 1: and Kate and I looked at each other and we thought,

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Speaker 1: we can't. This is a lot of money, and it'd

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Speaker 1: be more fun if we went with some friends. So

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Speaker 1: we thought of you guys. And what I really remember, though,

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Speaker 1: is that we hadn't gone to a lot of nice

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Speaker 1: restaurants at that point in our lives. We totally novices

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Speaker 1: nice restaurants. And I'm pretty sure you had on a

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Speaker 1: T shirt, but we walked in and probably like a

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Speaker 1: band T shirt or something. We were I think we

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Speaker 1: were all a little under underdressed backwards hat, yes, but

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Speaker 1: we enjoyed a really nice dinner. I do remember that.

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Speaker 1: I remember getting some awesome steak, and maybe that was

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Speaker 1: really what cemented it for us, right, yeah, bonding over meat?

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Speaker 1: Yeah why not? I sorry all you vegetarians out there,

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Speaker 1: but yeah, so traveling together as friends and and a

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Speaker 1: great meal sometimes and and then nerdy board games. Man,

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Speaker 1: I feel like that kind of encompasses some of the

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Speaker 1: things that we enjoy the most and uh and still

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Speaker 1: enjoy kind of doing together when whenever we can, let's

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Speaker 1: do it some more. So that's uh for all you

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Speaker 1: new listeners, that's kind of how Matt and I became

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Speaker 1: best friends. And then, like you'll find out as you

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Speaker 1: continue listening to the show, we talk about the things

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Speaker 1: on this show that we care about that we already

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Speaker 1: enjoy discussing and and we started this podcast because we

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Speaker 1: love craft beer and we love talking about money things

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Speaker 1: that matter to us. And so yeah, this podcast is

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Speaker 1: really just kind of an excuse for Matt and I

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Speaker 1: to do what we would be doing anyway, like drinking

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Speaker 1: beer and talking about it too, right, Yeah, And today

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Speaker 1: we are drinking a beer called Pretty Willie's Imperial stout

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Speaker 1: by Against the Grain Brewery. This is a beer that

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Speaker 1: my real estate agent gave to me over a year

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Speaker 1: ago when I closed on a house. And this, in

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Speaker 1: particular is a beer that you're supposed to let rest

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Speaker 1: and evolve, and so we're gonna kind of see how

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Speaker 1: it's drinking. We'll do. Thanks so much for sharing this

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Speaker 1: one with me. Cheers, Bunny, cheers. All right, Matt, give

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Speaker 1: me one word that describes how you feel about this

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Speaker 1: beer after just one sip, only one word. I feel

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Speaker 1: like this is gonna be harder for you than me,

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Speaker 1: because I'm ver both. Yeah, Joel tends to be the

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Speaker 1: one that talks a little bit more on the show,

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Speaker 1: which is totally fine. If I had my own podcast

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Speaker 1: by myself, it might only be five minutes. But if

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Speaker 1: it was just you talking, who knows how long you'd go.

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Speaker 1: That's true. Okay, But back to you, so one word. Okay,

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Speaker 1: this is gonna be weird, but I'm gonna say jacket.

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Speaker 1: All right, that's weird. But I think we've already mentioned jacket.

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Speaker 1: I think we mentioned on the show before that you

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Speaker 1: have some odd taste buds and some odd sensory abilities.

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Speaker 1: You're like the beer Somalia or this podcast, you bring

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Speaker 1: that to the table. I have a much less developed palette.

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Speaker 1: So my word, my one word for this beer for

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Speaker 1: right now is going to be roasty. Nice. See roasty.

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Speaker 1: That's I think everyone's gonna understand that. Jacket. I think

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Speaker 1: what happens is I overthink stuff and now I'm just

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Speaker 1: gonna have to actually explain myself. But we'll say that

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Speaker 1: for the end of the show, so we will get

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Speaker 1: to why Matt's on one word for this beer was jacket.

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Speaker 1: Uh La get later on, but first let's get to

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Speaker 1: the topic of hand. Everything costs more than you think,

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Speaker 1: and what Matt and I wanted to talk about on

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Speaker 1: the show today is considering secondary costs. Anytime you make

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Speaker 1: a purchase, the price tag that you're paying upfront on

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Speaker 1: whatever it is, is not the only cost involved in

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Speaker 1: making a purchase, and we wanted to talk about the

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Speaker 1: other costs involved. H we're calling secondary costs, and those

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Speaker 1: are additional costs that you will or might end up

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Speaker 1: paying on a purchase that fall outside of that original

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Speaker 1: purchase amount. And we think it's really really important to

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Speaker 1: consider those things because it can be easy when you're

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Speaker 1: budgeting or when you're considering making a purchase or adding

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Speaker 1: something into your life, to only consider that upfront price

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Speaker 1: tag and not think about all those other dominoes at

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Speaker 1: fall when it comes to the price you're paying. And so, Matt,

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Speaker 1: this podcast is going to be dedicated to those other

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Speaker 1: dominoes at fall how that impacts, like your wallet in

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Speaker 1: your life. That's right. Yeah, Folks tend to not consider

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Speaker 1: the sort of nickel and diming effect that happens after

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Speaker 1: you make a purchase. Whether it's a quality purchase or

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Speaker 1: a cheap purchase, it doesn't really matter. What we're talking about,

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Speaker 1: like those expenses that, like you said, you may or

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Speaker 1: may not pay, and let's start with the ones that

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Speaker 1: you will pay. Yeah, So we kind of divided this

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Speaker 1: up into two different kinds of secondary costs. One is

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Speaker 1: a hard secondary cost and the other is a soft

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Speaker 1: or lifestyle secondary cost. And so we'll kind of just

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Speaker 1: quickly run through the definition and describe what's different about each.

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Speaker 1: That's right, man. So hard secondary costs are what we're

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Speaker 1: considering to be costs that you have to pay because

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Speaker 1: it's either the law, right, so sales tax, like you

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Speaker 1: have to pay sales tax, or these might be costs

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Speaker 1: that you have to pay because you signed an in

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Speaker 1: gree where you promise that you will And these can

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Speaker 1: be monthly fees or an h O a say in

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Speaker 1: a condo that you live in, or these are costs

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Speaker 1: because the item that you've purchased just requires it. You know,

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Speaker 1: it's sort of basic maintenance. And I'm not talking about fancy,

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Speaker 1: high end maintenance or anything that kind of goes above

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Speaker 1: and beyond maintaining that item and allowing it to, you know,

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Speaker 1: work and function like you wanted to. In these cases, though,

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Speaker 1: you don't have a choice, and these are things that

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Speaker 1: you will have to pay. Yeah. So those hard costs, right,

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Speaker 1: they are there for a lot of purchases, and we'll

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Speaker 1: kind of go into some examples later on in the

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Speaker 1: show too, but there there no matter what, and there's

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Speaker 1: no getting around them. And they're also kind of easily

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Speaker 1: identifiable upfront. Right, you can do the research, you can

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Speaker 1: know the figures, and you can kind of know what

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Speaker 1: you're getting into when it comes to some of those

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Speaker 1: hard costs. But on the other hand, these soft secondary

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Speaker 1: costs that we're gonna talk about Matt their costs where

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Speaker 1: you're likely going to feel pressured to pay because they

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Speaker 1: fit and complement that primary purchase. So these are ones

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Speaker 1: that you might not see. You can't necessarily quantify up

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Speaker 1: front unless you're really really thoughtful. And an example of

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Speaker 1: that would be if you get a new laptop, Oh, well,

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Speaker 1: guess what, I need a new backpack to carry that

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Speaker 1: laptop around in. And then you are like, well, you

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Speaker 1: know what, I'm one of this cool backpack, Well, I

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Speaker 1: need a jacket to match or whatever it is, right,

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Speaker 1: And it's like that if you give the mouse a

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Speaker 1: cookie syndrome, where those are kind of what these soft

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Speaker 1: secondary costs are. Those what we're calling them. And so

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Speaker 1: if it's a purchase that you make that then forces

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Speaker 1: you to feel like you need to upgrade something else

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Speaker 1: in your life, and that's one of those soft secondary costs.

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Speaker 1: It's a little harder to quantify up front, but we're

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Speaker 1: gonna kind of go through some ways to help you

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Speaker 1: figure out what those could be and how to decrease

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Speaker 1: or maybe eliminate them even in your life. That's right, man,

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Speaker 1: it's crazy, right. It's a little bit like lifestyle creep.

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Speaker 1: It's kind of funny hearing you talk about an example

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Speaker 1: with like the laptop with the bag and then the jacket.

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Speaker 1: But it's almost like anytime something touches something else, it's

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Speaker 1: like it getting gets infected with looking old, right, because

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Speaker 1: you have something like new and shiny, and then in

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Speaker 1: relation to the old stuff, you think it really would

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Speaker 1: be nice if that was kind of upgraded as well,

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Speaker 1: And then before you know it, where do you stop?

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Speaker 1: Like when do you stop? Where do you draw the line?

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Speaker 1: And I think what's important to keep in mind, though,

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Speaker 1: is that you can draw that line. You can decide

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Speaker 1: that these are expenses that I'm not going to participate in.

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Speaker 1: Then that you have control over. And that's the biggest

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Speaker 1: difference between a hard secondary cost versus the soft or

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Speaker 1: lifestyle secondary cost is that the soft secondary lifestyle costs

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Speaker 1: you just have control over, You have options. But either

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Speaker 1: way it's yeah, like you said, it's good to be

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Speaker 1: aware of those and to know what steps you can

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Speaker 1: take to keep the expenses down. Yeah, And I think

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Speaker 1: all of us have experienced both ends of these, right,

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Speaker 1: We've experienced buying something and we didn't realize or we

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Speaker 1: didn't factor in those hard secondary costs. We made the

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Speaker 1: purchase or we made the leap into something and we

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Speaker 1: didn't even take into consideration those costs that were inevitable,

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Speaker 1: and we bore the brunt of them after we made

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Speaker 1: the decision, and maybe for some of us we had

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Speaker 1: to put that on a credit card or yeah, like

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Speaker 1: you with gasoline, you're like, oh, man, this car takes gas.

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Speaker 1: Totally forgot except that I drive an electric car, So

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Speaker 1: jokes on you. But yeah, there's all we've all been

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Speaker 1: in that situation. And also in regards to the soft

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Speaker 1: or lifestyle secondary costs, someone who is considering, let's say

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Speaker 1: a bathroom renovation, well, I want to reach out the

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Speaker 1: floors and put in a new toilet. Well, then you

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Speaker 1: want a new tub, because a tub looks old and

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Speaker 1: nasty exactly, and then maybe a new vanity. And you

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Speaker 1: know what, if the bathroom is gonna look this good,

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Speaker 1: I think I needed to redo the kitchen at the

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Speaker 1: same time. And so we've all experienced this in our

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Speaker 1: lives to one extent or another, and it's just good

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Speaker 1: to be aware of as we go into making purchases.

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Speaker 1: It can help us to know when to say no

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Speaker 1: to things and when things are out of our budget,

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Speaker 1: out of our range. It gives us a better perspective

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Speaker 1: and allows us to go into purchases with a little

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Speaker 1: more like wisdom and knowledge behind us. And so we've

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Speaker 1: been talking a lot lately about spending and consumption. And

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Speaker 1: you know, a huge reason that Americans today are having

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Speaker 1: issues with saving enough a retirement comes down to their spending.

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Speaker 1: It's not that they're not making enough. More of it

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Speaker 1: has to do with the fact that folks aren't investing

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Speaker 1: and using that money that they've earned wisely, and that

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Speaker 1: has led to a lot of people feeling insecure about

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Speaker 1: their futures. And so right after the break, we're gonna

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Speaker 1: talk about why these secondary costs are so important, and

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Speaker 1: then we'll also give some examples, some specific real life

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Speaker 1: examples that will help you to see the difference between

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Speaker 1: these two types of secondary spendings and just how being

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Speaker 1: aware of these things can help you rain in your spending.

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Speaker 1: All right, Matt, back from the break, and let's talk

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Speaker 1: about why these secondary costs are so important. And it's

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Speaker 1: because there's this major problem in America. Four out of

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Speaker 1: five Americans are worried that they don't have enough in retirement.

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Speaker 1: Right they are spending too much. And I gotta tell you,

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Speaker 1: as we've been combing through this topic doing research for

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Speaker 1: the show. Matt, I gotta believe that much of this

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Speaker 1: is because of poorly thought out purchases, right, And those

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Speaker 1: poorly thought out purchases lead to these outrageous secondary costs

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Speaker 1: hard ones or lifestyle ones, either way, but they lead

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Speaker 1: to those secondary costs for people that weren't factored in,

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Speaker 1: and it leads to living a lifestyle where you're living

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Speaker 1: month to month, paycheck to paycheck, and you can't get ahead.

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Speaker 1: So I feel like that's the problem that we're trying

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Speaker 1: to address in this episode. That's a very good sort

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Speaker 1: of big picture as to why this is a problem,

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Speaker 1: and then diving down to more the specifics. Right, deciding

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Speaker 1: whether something is a solid purchase, right, can really only

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Speaker 1: be made when you consider these costs before taking that plunge.

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Speaker 1: And so if you jump into a purchase before crunching

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Speaker 1: the numbers and realistically considering the complete financial picture, you

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Speaker 1: could easily sink your budget. You need to do your

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Speaker 1: homework like this is just part of the due diligence

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Speaker 1: period of making a purchase. You don't want to necessarily

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Speaker 1: have what's it called an analysis paralysis where you don't

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Speaker 1: make a decision because you're so stuck on the numbers

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Speaker 1: and you're so stuck on optimizing it and making it

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Speaker 1: perfect that it keeps you from any action at all.

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Speaker 1: But you have to do your homework. You have to

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Speaker 1: take the steps necessary in order to make sure that

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Speaker 1: you're setting yourself up for the future. Yeah, Matt, I

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Speaker 1: love what you just said. They're due diligence. I feel

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Speaker 1: like that is a great kind of way to think

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Speaker 1: about the secondary costs of a major purchase, or even

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Speaker 1: a minor purchase that you're just about to make. Due

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Speaker 1: diligence when it comes to buying a house, is that

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Speaker 1: seven or ten day or whatever you negotiate. Really, it's

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Speaker 1: that period that you have after you're under contract on

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Speaker 1: a house but you're not obligated to buy it. You

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Speaker 1: know you want to, but you don't have to do exactly,

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Speaker 1: And so that period of time gives you the ability

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Speaker 1: to walk through their decide whether you're into it, get

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Speaker 1: an inspection, all that stuff. That due diligence period is crucial,

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Speaker 1: and so many people back out of that purchase during

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Speaker 1: due diligence, right, And so I think due diligence is

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Speaker 1: is probably the right phrase to use when we're talking

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Speaker 1: about secondary costs of purchases we make doing that due diligence,

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Speaker 1: taking that time period to factor in and to look

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Speaker 1: at those secondary costs, and then whether your purchase is

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Speaker 1: a wise one or not, whether you can afford it

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Speaker 1: or you can't, or whether it's worth it to you

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Speaker 1: or it isn't. Like that due diligence period is going

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Speaker 1: to tell you, you you know, whether that purchase with its

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Speaker 1: associated secondary costs, is right for you. Let's give examples

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Speaker 1: of some of the hard secondary costs when it comes

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Speaker 1: to buying a house that will kind of help put

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Speaker 1: it into perspective. It's not just the hundred fifty or

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Speaker 1: two price tag that's associated with the home for most people.

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Speaker 1: When you buy a home, there are many other hard

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Speaker 1: costs associated with owning that right. So in particular, you

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Speaker 1: need to figure in closing costs, getting that home inspection,

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Speaker 1: which can be four or more potential repairs on the

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Speaker 1: home that you'll need to make immediately and over time, insurance.

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Speaker 1: The list just goes on and on and on of

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Speaker 1: the hard costs that you're gonna pay when you buy

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Speaker 1: a home. You're gonna have taxes annually, on that home.

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Speaker 1: The hard costs that are associated with the home purchase

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Speaker 1: are real, they are lengthy, and they are necessary when

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Speaker 1: you're considering whether you can afford that own purchase or not.

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Speaker 1: And then in addition to this hard costs, man, there's

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Speaker 1: the lifestyle or soft secondary costs. And these are things

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Speaker 1: like furniture. Right. You get that big empty house and

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Speaker 1: you've got all these extra rooms that you're so happy

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Speaker 1: to have, and the first thing that most people do

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Speaker 1: is they start buying furniture exactly. And then that's honestly

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Speaker 1: been one of the biggest problems Matt is as home

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Speaker 1: tizes have grown in America, they've pretty much doubled in

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Speaker 1: the last thirty years. Certainly, the primary costs of more

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Speaker 1: building material, of higher mortgage costs, right, that those factor in.

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Speaker 1: But it's those secondary costs that really sink people so

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Speaker 1: much of the time that they just didn't factor in.

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Speaker 1: And a lot of it is these lifestyle secondary costs.

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Speaker 1: It's the furniture to feel the ten rooms in your

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Speaker 1: house versus the four rooms you would have had in

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Speaker 1: something smaller. Yeah, man, And what's so crazy about something

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Speaker 1: like furniture, right, is that this isn't a hard cost

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Speaker 1: where it's it's one and done, like this is something

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Speaker 1: that can change over time, and that can change with

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Speaker 1: your taste. Who knows how much you could actually spend

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Speaker 1: on furniture over the lifetime of a specific house because

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Speaker 1: you could change your mind every I mean, you could

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Speaker 1: change your mind every month. Right. That might be crazy,

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Speaker 1: but you could. And so that's what's so difficult about

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Speaker 1: these soft secondary cost or these lifestyle costs, is that

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Speaker 1: it's kind of up to you as a consumer. And

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Speaker 1: as we know, advertising in the way that's fashion and

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Speaker 1: just different needs air quote needs are marketed to us. Uh,

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Speaker 1: we feel convinced that we do need something different, We

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Speaker 1: do need something that's fresher or a little slicker, or

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Speaker 1: something that's a little more shiny. And that's what's so tricky, right, Like,

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Speaker 1: that's the slippery slope of these lifestyle choices is that

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Speaker 1: you have to keep yourself in check. And for most folks,

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Speaker 1: it's not something that once you buy, once you're done.

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Speaker 1: Like when you buy a couch, most folks aren't thinking, cool,

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Speaker 1: I'm done with buying couches for the rest of my life.

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Speaker 1: They know that they'll probably be a new one or

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Speaker 1: a different one maybe in ten years or five or

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Speaker 1: even like two or three years, which is crazy in

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Speaker 1: my book. Yeah, Matt, when you put into perspective the

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Speaker 1: overall costs that you're going to bear when you buy

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Speaker 1: a house, it completely changes the equation, right, And we've

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Speaker 1: talked about in multiple so as we've talked about, you know,

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Speaker 1: renting a house versus buying, we've talked about why your house,

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Speaker 1: a primary house, is a bad investment, and some of

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Speaker 1: these secondary costs are the exact reason why a primary

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Speaker 1: home is not always a good investment, and it's because

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Speaker 1: you overspend, and it's a secondary cost that really turned

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Speaker 1: that home purchase from something that might be okay into

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Speaker 1: something that's terrible for your wallet. And honestly, like we

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Speaker 1: touched on our home renovation earlier in the show, and

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00:20:24,720 --> 00:20:27,280
Speaker 1: that's something that Kate and I that we've struggled with.

430
00:20:27,520 --> 00:20:29,560
Speaker 1: You start making improvements on your house, and you start,

431
00:20:29,600 --> 00:20:31,520
Speaker 1: like you said, like the examples you gave those are

432
00:20:31,520 --> 00:20:34,920
Speaker 1: pretty close to home because they're happening in our home

433
00:20:35,320 --> 00:20:38,879
Speaker 1: right now. But yeah, you start making improvements and you

434
00:20:39,200 --> 00:20:40,800
Speaker 1: have to make the decision where are we going to

435
00:20:40,920 --> 00:20:43,000
Speaker 1: draw the line, Because you think Okay, we've got this

436
00:20:43,040 --> 00:20:45,240
Speaker 1: wall open, why not why not go ahead and make

437
00:20:45,240 --> 00:20:48,520
Speaker 1: this improvement, or let's go ahead and insulate this because

438
00:20:48,600 --> 00:20:50,280
Speaker 1: you can justify it. You can say, oh, well, this

439
00:20:50,359 --> 00:20:52,560
Speaker 1: is for energy savings. Oh, this is something that is

440
00:20:52,600 --> 00:20:55,880
Speaker 1: gonna in the long term, it's gonna save us money.

441
00:20:55,920 --> 00:20:58,040
Speaker 1: But eventually you're gonna run out of money and you're

442
00:20:58,040 --> 00:20:59,879
Speaker 1: gonna have to say no, or you're not gonna run

443
00:20:59,880 --> 00:21:01,920
Speaker 1: out of money, and you just need to say no. Right,

444
00:21:02,160 --> 00:21:05,720
Speaker 1: you have to decide this is enough, We're happy with this.

445
00:21:06,040 --> 00:21:08,640
Speaker 1: It doesn't matter that this isn't quite as nice. It's

446
00:21:08,640 --> 00:21:11,040
Speaker 1: gonna be fine. And the same thing I think applies

447
00:21:11,080 --> 00:21:13,199
Speaker 1: to our rental properties. Man, you and I both have

448
00:21:13,240 --> 00:21:16,720
Speaker 1: rental properties, we have investment properties, and time to time

449
00:21:16,880 --> 00:21:20,520
Speaker 1: things need to be replaced or upgraded because it's just old, nasty,

450
00:21:21,040 --> 00:21:23,600
Speaker 1: and you have to make those decisions of where are

451
00:21:23,640 --> 00:21:25,400
Speaker 1: you gonna draw the line because you, like you said,

452
00:21:25,440 --> 00:21:28,040
Speaker 1: you you replace one item, say in the bathroom, and

453
00:21:28,080 --> 00:21:31,120
Speaker 1: you think, Okay, that's gonna look terrible if we leave

454
00:21:31,119 --> 00:21:32,919
Speaker 1: it like that, let's just go ahead and revamp the

455
00:21:32,920 --> 00:21:36,119
Speaker 1: whole bathroom. Well, then you've got like a really nice bathroom,

456
00:21:36,160 --> 00:21:37,760
Speaker 1: but the kitchen looks kind of rough, like you said,

457
00:21:38,119 --> 00:21:41,080
Speaker 1: And so it's not necessarily only with consumption, but it

458
00:21:41,119 --> 00:21:44,520
Speaker 1: can also be with what most folks would consider an investment.

459
00:21:44,720 --> 00:21:46,879
Speaker 1: Where is a smart line to draw? And honestly, like

460
00:21:46,960 --> 00:21:48,840
Speaker 1: that's the toughest question, and that's why it comes down

461
00:21:48,880 --> 00:21:51,640
Speaker 1: to you as an individual. So yeah, Matt, let's give

462
00:21:51,640 --> 00:21:53,600
Speaker 1: a few more example. It's just kind of flesh this out,

463
00:21:53,640 --> 00:21:56,040
Speaker 1: because I feel like these examples really hammer home the

464
00:21:56,119 --> 00:21:59,960
Speaker 1: reality of these hard secondary costs and the soft second

465
00:22:00,000 --> 00:22:02,920
Speaker 1: area costs, which can make a purchase that looks good

466
00:22:03,000 --> 00:22:05,960
Speaker 1: on the front end actually a bad one. And so

467
00:22:06,119 --> 00:22:09,680
Speaker 1: let's take, for instance, going to college. The hard secondary

468
00:22:09,720 --> 00:22:12,440
Speaker 1: costs of that are taking out loans, and those loans

469
00:22:12,520 --> 00:22:16,439
Speaker 1: have interest unless you're this super uper smart person and

470
00:22:16,480 --> 00:22:19,720
Speaker 1: you've got mad mega scholarships or whatever it is, which

471
00:22:19,760 --> 00:22:23,080
Speaker 1: is awesome. Most people in America, I mean, obviously we

472
00:22:23,080 --> 00:22:25,840
Speaker 1: all know the student loan debt crisis in America. One

473
00:22:25,840 --> 00:22:29,280
Speaker 1: point five trillion dollars in student loan debt. It's just

474
00:22:29,359 --> 00:22:31,800
Speaker 1: out of this world, right, It's crazy, and it's ruined

475
00:22:31,840 --> 00:22:35,000
Speaker 1: the lives of many many people. You have to factor

476
00:22:35,040 --> 00:22:37,199
Speaker 1: in as you are going off to college, as your

477
00:22:37,280 --> 00:22:40,159
Speaker 1: kids are going off to college, those hard costs, the

478
00:22:40,280 --> 00:22:42,199
Speaker 1: loans and interest, and what that's gonna do to you

479
00:22:42,200 --> 00:22:44,479
Speaker 1: over the long haul, and you have to compare it

480
00:22:44,520 --> 00:22:47,800
Speaker 1: to the usefulness of that college degree for you over

481
00:22:47,840 --> 00:22:52,760
Speaker 1: the long haul, especially in a changing economy where requirements

482
00:22:52,840 --> 00:22:57,239
Speaker 1: of individuals in the workforce are changing almost daily, not

483
00:22:57,359 --> 00:23:00,359
Speaker 1: just every decade, right, but but almost daily that the

484
00:23:00,480 --> 00:23:03,879
Speaker 1: requirements for young people coming to the workforce is changing.

485
00:23:04,040 --> 00:23:05,840
Speaker 1: So if you have a college degree that you think

486
00:23:05,920 --> 00:23:08,520
Speaker 1: today is going to be useful for the next thirty years,

487
00:23:08,960 --> 00:23:10,639
Speaker 1: I mean, there's a small chance that you're right, but

488
00:23:10,680 --> 00:23:12,920
Speaker 1: there's a big chance that you're wrong, and that those

489
00:23:12,960 --> 00:23:15,600
Speaker 1: costs that you incurred actually aren't going to pay off

490
00:23:15,600 --> 00:23:17,680
Speaker 1: in the way that you thought they were. Yeah, man,

491
00:23:17,680 --> 00:23:19,639
Speaker 1: and even room and board, Like, if you're going off

492
00:23:19,680 --> 00:23:22,120
Speaker 1: to college, it costs some money to survive. It costs

493
00:23:22,119 --> 00:23:24,120
Speaker 1: some money to have a place to sleep and to live,

494
00:23:24,600 --> 00:23:28,560
Speaker 1: and you gotta feed yourself even in college. But yeah,

495
00:23:28,560 --> 00:23:32,480
Speaker 1: those are some of the hard secondary costs associated with college.

496
00:23:32,640 --> 00:23:36,359
Speaker 1: And so some of the lifestyle secondary cost man associated

497
00:23:36,400 --> 00:23:40,000
Speaker 1: with college are what sort of revolve around the experience

498
00:23:40,320 --> 00:23:42,200
Speaker 1: what people think of when they go off to college

499
00:23:42,240 --> 00:23:44,480
Speaker 1: and they want to have this sort of best four

500
00:23:44,560 --> 00:23:48,080
Speaker 1: years of their life. You're talking about keggers, right, Yeah, kiggers,

501
00:23:48,119 --> 00:23:51,480
Speaker 1: I mean like literally partying, but folks oftentimes will say

502
00:23:51,520 --> 00:23:55,360
Speaker 1: instead traveling abroad or spring break. But all that sort

503
00:23:55,359 --> 00:23:59,920
Speaker 1: of plays into the American mentality of like the college experience. Yeah,

504
00:24:00,080 --> 00:24:01,639
Speaker 1: even going out to you with friends, Like it doesn't

505
00:24:01,640 --> 00:24:03,320
Speaker 1: have to be something that where it's this huge, big

506
00:24:03,320 --> 00:24:06,320
Speaker 1: ticket item, but just the sort of daily lifestyle thing,

507
00:24:06,640 --> 00:24:10,120
Speaker 1: this aspect that people associate with college. Yeah, or going

508
00:24:10,160 --> 00:24:12,440
Speaker 1: on a spring break trip with your friends, right, those

509
00:24:12,440 --> 00:24:13,879
Speaker 1: are the kind of things that come up when you're

510
00:24:13,920 --> 00:24:17,199
Speaker 1: in college. That are these lifestyle secondary costs, right, that

511
00:24:17,240 --> 00:24:20,439
Speaker 1: you're going to incur if you can't keep it under control. Right,

512
00:24:20,480 --> 00:24:22,159
Speaker 1: and and like we said at the beginning of the

513
00:24:22,240 --> 00:24:24,359
Speaker 1: of the show, some of these are controllable. Some of

514
00:24:24,359 --> 00:24:27,120
Speaker 1: these are under your control. You can decide to back up,

515
00:24:27,400 --> 00:24:30,439
Speaker 1: hit the brakes on that spring break trip, and with

516
00:24:30,440 --> 00:24:32,639
Speaker 1: that control, you're able to save yourself some money. Right.

517
00:24:32,920 --> 00:24:35,000
Speaker 1: You could say no to eating out even though all

518
00:24:35,040 --> 00:24:36,920
Speaker 1: your friends are doing it. We're just saying think about

519
00:24:36,960 --> 00:24:40,040
Speaker 1: these things. Think about these costs that are likely to occur,

520
00:24:40,680 --> 00:24:42,840
Speaker 1: because saying no in the moment can be really hard,

521
00:24:43,080 --> 00:24:45,919
Speaker 1: because there are ways, especially with these lifestyle secondary costs,

522
00:24:45,920 --> 00:24:49,480
Speaker 1: to actually cut down on those expenses. But just be

523
00:24:49,640 --> 00:24:53,560
Speaker 1: aware that they are likely to at minimum tempt you

524
00:24:53,920 --> 00:24:56,320
Speaker 1: to spend money on those things that other people around

525
00:24:56,320 --> 00:24:58,440
Speaker 1: you are spending money on. Just know that some of

526
00:24:58,480 --> 00:25:01,280
Speaker 1: those hard secondary costs are movable when you make that choice,

527
00:25:01,280 --> 00:25:03,880
Speaker 1: and then some of those lifestyle secondary costs, they're either

528
00:25:03,960 --> 00:25:05,920
Speaker 1: likely that you're going to make that choice or it's

529
00:25:05,920 --> 00:25:08,240
Speaker 1: gonna take some resolve in order to make sure that

530
00:25:08,240 --> 00:25:10,320
Speaker 1: you don't incur those costs. Yeah, that's right. At the

531
00:25:10,400 --> 00:25:12,920
Speaker 1: very least, it's gonna be very tempting to also want

532
00:25:12,960 --> 00:25:16,119
Speaker 1: to go on that trip. Yeah. And so another example,

533
00:25:16,200 --> 00:25:19,200
Speaker 1: let's talk about cars or transportation, and so it's not

534
00:25:19,359 --> 00:25:21,679
Speaker 1: just the cost of the car, right, there are a

535
00:25:21,680 --> 00:25:25,760
Speaker 1: lot of hard secondary costs associated with vehicles, things like

536
00:25:25,880 --> 00:25:29,080
Speaker 1: gas or insurance and repairs. Right. These are all things

537
00:25:29,080 --> 00:25:31,520
Speaker 1: that you know in your head mentally that these are

538
00:25:31,560 --> 00:25:34,119
Speaker 1: things I'm gonna have to pay, but it's not until

539
00:25:34,160 --> 00:25:35,960
Speaker 1: you actually go to the mechanic and you get that

540
00:25:36,000 --> 00:25:38,800
Speaker 1: bill or you start receiving that insurance bill, the rubber

541
00:25:38,880 --> 00:25:42,120
Speaker 1: hits the road, exactly, you're gonna have to get new tires.

542
00:25:42,400 --> 00:25:45,520
Speaker 1: This is when you're gonna realize how much owning a vehicle,

543
00:25:45,560 --> 00:25:48,760
Speaker 1: owning a car is actually going to cost you. Yeah,

544
00:25:48,800 --> 00:25:51,919
Speaker 1: the full amount of that original expense. Right. And so

545
00:25:52,080 --> 00:25:54,879
Speaker 1: if you buy a new car for thirty dollars or

546
00:25:54,960 --> 00:25:58,359
Speaker 1: a used car for five thousand dollars, there are secondary

547
00:25:58,359 --> 00:26:02,160
Speaker 1: costs that are immovable to a large extent, right, Uh,

548
00:26:02,200 --> 00:26:05,880
Speaker 1: And knowing that before you make the plunge is huge. So,

549
00:26:05,960 --> 00:26:08,080
Speaker 1: for instance, in our state, matt when you buy a

550
00:26:08,200 --> 00:26:10,720
Speaker 1: used car or a new car, you pay this. You

551
00:26:10,760 --> 00:26:15,120
Speaker 1: pay the sales tax upfront day one, right. Well, and dude,

552
00:26:15,119 --> 00:26:17,439
Speaker 1: in specific to Georgia, you don't even have to have

553
00:26:17,480 --> 00:26:19,880
Speaker 1: purchased the vehicle. Even if you bring that vehicle from

554
00:26:19,920 --> 00:26:23,000
Speaker 1: out of state into our state, you have to pay

555
00:26:23,040 --> 00:26:26,560
Speaker 1: that tax. I know. I feel so insane. I feel

556
00:26:26,560 --> 00:26:29,119
Speaker 1: so bad for anyone moving from another state, having bought

557
00:26:29,520 --> 00:26:32,520
Speaker 1: a new car recently and having potentially paid sales tax

558
00:26:32,560 --> 00:26:36,800
Speaker 1: in their home state, moving here and then paying it again. Honestly,

559
00:26:36,880 --> 00:26:39,520
Speaker 1: it's highway robbery. It's it's not right. That's about my

560
00:26:39,520 --> 00:26:42,359
Speaker 1: buddy cal that moved from New York. He's got a

561
00:26:42,359 --> 00:26:44,359
Speaker 1: great job, makes makes a good amount of money. But

562
00:26:44,400 --> 00:26:49,640
Speaker 1: he had recently purchased a Beamer fancy you know, fancy BMW. Yeah,

563
00:26:49,760 --> 00:26:51,720
Speaker 1: and it was only a couple of years old, and

564
00:26:51,720 --> 00:26:54,840
Speaker 1: he moved back to Atlanta, and dude, he got hit

565
00:26:54,920 --> 00:26:58,199
Speaker 1: with like a five over five thousand dollar bill, not

566
00:26:58,280 --> 00:27:01,159
Speaker 1: because he purchased it, but because he is registering and

567
00:27:01,160 --> 00:27:04,320
Speaker 1: transferring that vehicle to the state of Georgia. That he

568
00:27:04,400 --> 00:27:08,760
Speaker 1: got nailed with that like, welcome to Georgia, Dude, pay up. Yeah,

569
00:27:09,040 --> 00:27:10,960
Speaker 1: it's not right, it's rough. But those are the kind

570
00:27:10,960 --> 00:27:13,320
Speaker 1: of cost right, So if I know that ahead of time,

571
00:27:13,560 --> 00:27:15,399
Speaker 1: I can factor in, well, you know what, if I

572
00:27:15,400 --> 00:27:17,040
Speaker 1: buy a thirty thousand dollar car, I'm going to be

573
00:27:17,119 --> 00:27:19,919
Speaker 1: hit with a multi thousand dollar tax bill. If I

574
00:27:19,960 --> 00:27:22,399
Speaker 1: buy a four thousand dollar car, I'll be hit with

575
00:27:22,480 --> 00:27:25,240
Speaker 1: a multi hundred dollar tax bill. And that's a big difference.

576
00:27:25,400 --> 00:27:28,680
Speaker 1: Right When we're factoring in those secondary costs, it massively

577
00:27:28,760 --> 00:27:32,840
Speaker 1: influences the decision that we make on that primary purchase, right,

578
00:27:33,119 --> 00:27:36,280
Speaker 1: and so directly in a car or a home, those

579
00:27:36,280 --> 00:27:41,080
Speaker 1: secondary costs should have a major overriding influence, I would say,

580
00:27:41,480 --> 00:27:43,679
Speaker 1: on whether we make the primary purchase to begin with,

581
00:27:43,960 --> 00:27:46,199
Speaker 1: or whether we choose to make do with what we

582
00:27:46,240 --> 00:27:49,280
Speaker 1: have or off for something maybe a little less fancy.

583
00:27:49,680 --> 00:27:51,400
Speaker 1: You know, this actually makes me think of when you're

584
00:27:51,400 --> 00:27:53,280
Speaker 1: purchasing a home and if you're actually well, if you're

585
00:27:53,280 --> 00:27:55,280
Speaker 1: not paying cash, if you're getting alan which is I

586
00:27:55,280 --> 00:27:58,359
Speaker 1: guess people out there and you get that. Actually, actually

587
00:27:58,359 --> 00:28:00,560
Speaker 1: I think it's only seventy in that crazy Wait what

588
00:28:00,640 --> 00:28:05,280
Speaker 1: for real? People pay cash for houses, let's ball, or

589
00:28:05,320 --> 00:28:07,040
Speaker 1: not pay cash for houses but own their homes at

590
00:28:07,119 --> 00:28:09,439
Speaker 1: least in full. Okay, so, but that would be interesting

591
00:28:09,480 --> 00:28:12,359
Speaker 1: to know how whatds people pay cash for houses. It's fascinating.

592
00:28:12,520 --> 00:28:15,679
Speaker 1: I'm curious. But either way, the Truth and Lending Statement,

593
00:28:15,760 --> 00:28:19,200
Speaker 1: you know, I'm talking about the Truth and Lending Closure Statement, Yeah, exactly. Yeah.

594
00:28:19,200 --> 00:28:21,520
Speaker 1: And it's got the chart and it's broken down by

595
00:28:21,880 --> 00:28:24,040
Speaker 1: say you're getting a thirty year mortgage. It's got you know,

596
00:28:24,080 --> 00:28:26,040
Speaker 1: the year that you're currently living in all the way

597
00:28:26,040 --> 00:28:28,920
Speaker 1: out thirty years, and it has the tally of the

598
00:28:28,960 --> 00:28:31,440
Speaker 1: full amount that you're actually paying an interest. That way,

599
00:28:31,440 --> 00:28:34,240
Speaker 1: you actually know how much it's costing you to finance

600
00:28:34,320 --> 00:28:35,840
Speaker 1: that house and to to go ahead and get a

601
00:28:35,840 --> 00:28:39,320
Speaker 1: mortgage on it. It's like we need that but on

602
00:28:39,400 --> 00:28:42,760
Speaker 1: everything in our life. Dishwasher, truth and lending statement, well

603
00:28:42,960 --> 00:28:45,560
Speaker 1: except that you're not getting alone on your dishwasher hopefully,

604
00:28:45,600 --> 00:28:47,280
Speaker 1: And to be honest, we actually have like some of

605
00:28:47,280 --> 00:28:49,000
Speaker 1: those things in some reguards, right, We've got like the

606
00:28:49,080 --> 00:28:51,800
Speaker 1: energy Yeah, that's what I was thinking, the energy smart

607
00:28:52,000 --> 00:28:55,040
Speaker 1: stickers on like a TV or a washing machine, or

608
00:28:55,160 --> 00:28:57,280
Speaker 1: let's say, on a credit card statement. There's a law

609
00:28:57,320 --> 00:29:00,760
Speaker 1: that required credit card companies to put on and there

610
00:29:00,920 --> 00:29:02,920
Speaker 1: your statement. You know how long it would take you

611
00:29:02,960 --> 00:29:04,920
Speaker 1: to pay off your credit card bill if you're only

612
00:29:04,960 --> 00:29:08,320
Speaker 1: to pay the minimum And that's just so helpful for

613
00:29:08,400 --> 00:29:10,880
Speaker 1: a consumer to see because it's freaky enough to see

614
00:29:10,880 --> 00:29:12,760
Speaker 1: the balance and the interest rate. But when you know

615
00:29:12,800 --> 00:29:14,320
Speaker 1: that if you only pay the minimums, you're gonna be

616
00:29:14,360 --> 00:29:18,000
Speaker 1: paying for thirty seven more years, I mean insane. Yeah,

617
00:29:18,160 --> 00:29:20,520
Speaker 1: that a lot of fire under you, right, But back

618
00:29:20,560 --> 00:29:22,840
Speaker 1: to a car mat Yeah, Like the biggest costs actually

619
00:29:22,880 --> 00:29:26,480
Speaker 1: that people don't factor in at all is depreciation, especially

620
00:29:26,520 --> 00:29:28,360
Speaker 1: if you're buying new right. That tax bill can be

621
00:29:28,400 --> 00:29:31,080
Speaker 1: hard to handle. It can be many thousands of dollars

622
00:29:31,080 --> 00:29:33,400
Speaker 1: in lots of states in one lump sum. But on

623
00:29:33,480 --> 00:29:36,200
Speaker 1: top of that, and your depreciation costs are out of

624
00:29:36,200 --> 00:29:39,360
Speaker 1: this world, and your car driving it off the lot

625
00:29:39,560 --> 00:29:43,000
Speaker 1: is worth less than the day you bought it, and

626
00:29:43,040 --> 00:29:46,080
Speaker 1: a few years in is worth less. So make sure

627
00:29:46,120 --> 00:29:49,000
Speaker 1: you factor that in. Being someone the factors in secondary

628
00:29:49,040 --> 00:29:51,800
Speaker 1: costs into the equation is being the opposite of a

629
00:29:51,840 --> 00:29:54,040
Speaker 1: payment buyer. A payment buyer is what you don't want

630
00:29:54,040 --> 00:29:55,680
Speaker 1: to be, right, You want to be the buyer that

631
00:29:55,760 --> 00:29:58,360
Speaker 1: is being a smart purchase and that includes factoring in

632
00:29:58,440 --> 00:30:01,200
Speaker 1: all those secondary costs. Yeah. Man. But then even on

633
00:30:01,280 --> 00:30:04,160
Speaker 1: top of that, there are the lifestyle secondary costs. And

634
00:30:04,280 --> 00:30:05,680
Speaker 1: I mean it kind of sounds silly to say, but

635
00:30:05,760 --> 00:30:09,600
Speaker 1: just like car accessories, anything from tinting your windows to

636
00:30:10,200 --> 00:30:12,200
Speaker 1: getting a trailer hitch for those spinny rims like you

637
00:30:12,280 --> 00:30:14,880
Speaker 1: got on your van. They look amazing, though some of

638
00:30:14,920 --> 00:30:18,440
Speaker 1: my friends. Steve totally had like the fake hub cap spinners.

639
00:30:19,600 --> 00:30:22,120
Speaker 1: He watched he'd watched too much by Ride on MTV.

640
00:30:22,480 --> 00:30:25,200
Speaker 1: Oh gosh, what was his name? Exhibit exhibit that's right,

641
00:30:25,520 --> 00:30:27,840
Speaker 1: exhibit No, he really did watch that show and he

642
00:30:27,880 --> 00:30:31,520
Speaker 1: went to auto zone and bought the plastic Rims slapped

643
00:30:31,560 --> 00:30:35,480
Speaker 1: him on his red ninety seven caravan, and it was

644
00:30:35,480 --> 00:30:37,520
Speaker 1: pretty awesome. That's a good look. I will say that

645
00:30:37,600 --> 00:30:39,800
Speaker 1: the an even better look, though, was the fact that

646
00:30:39,880 --> 00:30:43,240
Speaker 1: he had to tie his spinners down because when he

647
00:30:43,280 --> 00:30:45,800
Speaker 1: got above like sixty miles per hour, they would like

648
00:30:45,880 --> 00:30:48,080
Speaker 1: vibrate and make a loud racket, and he was afraid

649
00:30:48,120 --> 00:30:51,760
Speaker 1: they're gonna fall off, so they take some string and

650
00:30:51,760 --> 00:30:53,760
Speaker 1: he would he I mean, no joke, He tied his

651
00:30:53,800 --> 00:30:56,840
Speaker 1: spinners to themselves so that they wouldn't spin. It sounds

652
00:30:56,840 --> 00:30:59,400
Speaker 1: like there were some secondary cost to steve the reputation

653
00:31:00,000 --> 00:31:02,320
Speaker 1: of him while doing this as well. And so those

654
00:31:02,320 --> 00:31:04,680
Speaker 1: are silly sort of lifestyle choices. But even up to

655
00:31:05,400 --> 00:31:07,480
Speaker 1: feeling like you have to now have a garage because

656
00:31:07,520 --> 00:31:09,880
Speaker 1: you've got a new vehicle, dude, I'm gonna admit that

657
00:31:09,920 --> 00:31:13,000
Speaker 1: this is something that I personally felt somewhat of a

658
00:31:13,000 --> 00:31:15,840
Speaker 1: temptation to to do, not to necessarily get a garage,

659
00:31:15,920 --> 00:31:18,120
Speaker 1: but to want to keep my new vehicle clean. So

660
00:31:18,240 --> 00:31:22,280
Speaker 1: Katon I bought a somewhat late model Honda recently, and

661
00:31:22,560 --> 00:31:24,120
Speaker 1: we just wanted that thing to look good, you know.

662
00:31:24,320 --> 00:31:26,200
Speaker 1: We dropped all this money on it, and I felt that,

663
00:31:26,280 --> 00:31:28,440
Speaker 1: you know what, we're gonna have the nice, newer vehicle.

664
00:31:28,680 --> 00:31:30,800
Speaker 1: I want to make sure it looks good. And because

665
00:31:30,800 --> 00:31:32,280
Speaker 1: of that, I was taking it to the car wash,

666
00:31:32,400 --> 00:31:34,720
Speaker 1: like the five dollar car wash where you just zip

667
00:31:34,760 --> 00:31:36,480
Speaker 1: through it real quick and it's so fast and easy

668
00:31:36,520 --> 00:31:39,360
Speaker 1: and I don't have to do anything. But I was

669
00:31:39,360 --> 00:31:41,800
Speaker 1: spending more money because I thought, Okay, I've got a

670
00:31:41,800 --> 00:31:43,800
Speaker 1: new vehicle, I've got to keep it clean. I didn't

671
00:31:43,800 --> 00:31:45,560
Speaker 1: have to keep it clean. That was just for me.

672
00:31:45,600 --> 00:31:47,360
Speaker 1: That was my ego. I don't wanted to have a

673
00:31:47,400 --> 00:31:49,800
Speaker 1: shiny ride. And so as silly as it is to

674
00:31:49,840 --> 00:31:52,000
Speaker 1: say that, that's just something I did, I was falling

675
00:31:52,000 --> 00:31:55,280
Speaker 1: into that trap. And part of me did think, man,

676
00:31:55,320 --> 00:31:57,640
Speaker 1: this is this is why people do have garages, because

677
00:31:57,640 --> 00:31:59,400
Speaker 1: they don't want the tree sap falling on their on

678
00:31:59,400 --> 00:32:01,040
Speaker 1: their nice vehic all that they just spent money on.

679
00:32:01,120 --> 00:32:03,440
Speaker 1: And fact is, though it doesn't matter, because like you said,

680
00:32:03,480 --> 00:32:06,040
Speaker 1: it drops in the first five years of owning a

681
00:32:06,040 --> 00:32:08,440
Speaker 1: new vehicle, and so it's not in an investment. This

682
00:32:08,520 --> 00:32:12,840
Speaker 1: is pure consumption and these lifestyle secondary costs are are

683
00:32:12,920 --> 00:32:16,160
Speaker 1: nothing but consumption. Man. I feel like the perfect example

684
00:32:16,320 --> 00:32:18,160
Speaker 1: of kind of like what we were just talking about

685
00:32:18,160 --> 00:32:20,760
Speaker 1: how you have actually a lot of control over these costs.

686
00:32:21,440 --> 00:32:25,880
Speaker 1: Is the example of expensive hobbies. So, for example, golf

687
00:32:26,440 --> 00:32:31,360
Speaker 1: golf can become either a ridiculously expensive hobby or it

688
00:32:31,360 --> 00:32:34,160
Speaker 1: can be a relatively cheap one. You can travel all

689
00:32:34,160 --> 00:32:36,280
Speaker 1: over the world to play the finest golf courses, pay

690
00:32:36,440 --> 00:32:39,680
Speaker 1: enormous greens fees, pay for a caddy, pay for lodging

691
00:32:39,680 --> 00:32:44,320
Speaker 1: while you're there, all those things, fancy clubs, nucleats, pants,

692
00:32:44,360 --> 00:32:47,240
Speaker 1: all the works, right, or you can be the guy

693
00:32:47,320 --> 00:32:49,680
Speaker 1: that goes to the Part three course three miles down

694
00:32:49,680 --> 00:32:52,040
Speaker 1: the road, plays once a week. The greens fees are

695
00:32:52,080 --> 00:32:54,760
Speaker 1: eleven dollars. There's such a range of options in there

696
00:32:54,800 --> 00:32:57,560
Speaker 1: when you're talking about a hobby. We've talked about before

697
00:32:57,560 --> 00:32:59,240
Speaker 1: in the show that I love to play disc golf.

698
00:32:59,280 --> 00:33:01,280
Speaker 1: You love to play disc off. We play together, you know,

699
00:33:01,720 --> 00:33:03,400
Speaker 1: rarely because we don't have them at a time, but

700
00:33:03,480 --> 00:33:06,920
Speaker 1: when we do, it's amazing and there's almost no cost. Right,

701
00:33:07,000 --> 00:33:10,280
Speaker 1: courses are free. You need one, maybe two discs to

702
00:33:10,360 --> 00:33:13,320
Speaker 1: get started, and those are pretty cheap. Yeah, I've got three,

703
00:33:13,320 --> 00:33:15,800
Speaker 1: but I only used to. I've got like eight and

704
00:33:15,800 --> 00:33:18,840
Speaker 1: I only used to. So but so many of these

705
00:33:18,880 --> 00:33:21,160
Speaker 1: hobbies that you could potentially devote a lot of time

706
00:33:21,200 --> 00:33:25,280
Speaker 1: and energy to. Well, the actual cost that you will

707
00:33:25,280 --> 00:33:28,360
Speaker 1: incur depends on you and not the hobby itself. That

708
00:33:28,400 --> 00:33:32,200
Speaker 1: makes me think of like college football specifically, and you

709
00:33:32,200 --> 00:33:34,560
Speaker 1: can be a college football fan and it can cost

710
00:33:34,600 --> 00:33:37,000
Speaker 1: you pretty much nothing. Right. You can just read the

711
00:33:37,040 --> 00:33:39,840
Speaker 1: articles online, keep up with what's going on, and then

712
00:33:39,920 --> 00:33:42,440
Speaker 1: you could pick up a six pack and then take

713
00:33:42,440 --> 00:33:44,480
Speaker 1: it over to your friend's house who has cable. He

714
00:33:45,040 --> 00:33:47,160
Speaker 1: or she is stoked that you brought over some beer.

715
00:33:47,200 --> 00:33:51,160
Speaker 1: This time, they'll be the cheap guy, and and then boom,

716
00:33:51,160 --> 00:33:52,880
Speaker 1: you're enjoying the game. You're hanging out with your friends.

717
00:33:52,920 --> 00:33:55,320
Speaker 1: It's cost you virtually nothing, right, Like, that's one end

718
00:33:55,320 --> 00:33:57,640
Speaker 1: of the spectrum. Or you can be on the other

719
00:33:57,760 --> 00:34:00,080
Speaker 1: end of the spectrum, right where you are forced to

720
00:34:00,120 --> 00:34:03,440
Speaker 1: make these mandatory contributions to your school because they happen

721
00:34:03,480 --> 00:34:06,120
Speaker 1: to have an awesome football program, and that gives you

722
00:34:06,160 --> 00:34:08,840
Speaker 1: the option to then buy football tickets, right like the

723
00:34:08,880 --> 00:34:12,759
Speaker 1: season tickets, which costs thousands of dollars. Sounds like a

724
00:34:12,840 --> 00:34:14,520
Speaker 1: rackett to me, dude, it is a rackett. And then

725
00:34:14,520 --> 00:34:16,720
Speaker 1: on top of that, parking and then the parking passes

726
00:34:16,840 --> 00:34:19,480
Speaker 1: cost thousands of dollars. And and then on top of that,

727
00:34:19,480 --> 00:34:21,040
Speaker 1: we were just talking about cars, like a lot of

728
00:34:21,080 --> 00:34:24,279
Speaker 1: people buy vehicles specifically for tailgating. Like how many car

729
00:34:24,320 --> 00:34:26,759
Speaker 1: commercials do you hear where they talk about tailgating? Or

730
00:34:26,800 --> 00:34:28,600
Speaker 1: that's the scene. Right, there's some guys and they've got

731
00:34:28,680 --> 00:34:30,360
Speaker 1: a pickup truck or the STUV and they're in the

732
00:34:30,400 --> 00:34:33,400
Speaker 1: parking lot at a major stadium. Yeah, major stadium or

733
00:34:33,480 --> 00:34:35,920
Speaker 1: or or a college football stadium. Either way. There are

734
00:34:35,960 --> 00:34:39,160
Speaker 1: just so many expenses that can go towards an interest

735
00:34:39,280 --> 00:34:41,480
Speaker 1: or a hobby like that, but it doesn't have to.

736
00:34:41,640 --> 00:34:44,080
Speaker 1: It comes down to you. There's a reason why personal

737
00:34:44,120 --> 00:34:47,560
Speaker 1: finance is personal. It depends on what you see as

738
00:34:47,640 --> 00:34:50,680
Speaker 1: being a priority in your life. And we are here

739
00:34:50,760 --> 00:34:54,040
Speaker 1: just to say be aware of these expenses. Be aware

740
00:34:54,480 --> 00:34:57,759
Speaker 1: of yourself because you know what, if you're not gonna

741
00:34:57,760 --> 00:34:59,719
Speaker 1: be able to resist not getting the parking pass because

742
00:34:59,719 --> 00:35:00,840
Speaker 1: you want to be able to hang out with your

743
00:35:00,880 --> 00:35:03,759
Speaker 1: friends and throw that awesome tailgate, just know that it's

744
00:35:03,760 --> 00:35:05,920
Speaker 1: going to cost you another three grand for that parking

745
00:35:05,920 --> 00:35:08,600
Speaker 1: past in addition to the tickets. Right, yeah, man, it

746
00:35:08,640 --> 00:35:10,640
Speaker 1: kind of makes me think I think. Recently, on an episode,

747
00:35:10,640 --> 00:35:12,799
Speaker 1: I mentioned how if I kind of came into some money,

748
00:35:12,840 --> 00:35:15,560
Speaker 1: I might consider buying another bike. And yeah, right now

749
00:35:15,640 --> 00:35:17,919
Speaker 1: where I'm at, I totally would not buy another bike.

750
00:35:18,280 --> 00:35:21,799
Speaker 1: But I'm viewing my bike in a super utilitarian way

751
00:35:21,880 --> 00:35:25,080
Speaker 1: right now, and I actually calculate how much my bike

752
00:35:25,239 --> 00:35:28,240
Speaker 1: is saving me over using the car. So I'm thinking

753
00:35:28,239 --> 00:35:31,359
Speaker 1: about it actually as not just a purchase that is

754
00:35:31,400 --> 00:35:35,040
Speaker 1: for fun, but as something that can save me money

755
00:35:35,120 --> 00:35:37,560
Speaker 1: over the long haul. But if I was thinking about

756
00:35:37,600 --> 00:35:40,680
Speaker 1: it in a different mindset, in this kind of like

757
00:35:40,719 --> 00:35:44,279
Speaker 1: the I want this mindset, Yeah, the I'm a huge

758
00:35:44,280 --> 00:35:46,800
Speaker 1: football fan. How much money can I spend on this mindset?

759
00:35:46,920 --> 00:35:49,840
Speaker 1: Right then I would have four or five different bikes

760
00:35:49,920 --> 00:35:52,600
Speaker 1: and I would be getting them maintained regularly by a

761
00:35:52,640 --> 00:35:55,680
Speaker 1: local bike shop where it costs money, right and instead

762
00:35:55,680 --> 00:35:58,400
Speaker 1: of like do it yourself a little tweaks and fixes there.

763
00:35:58,480 --> 00:36:00,520
Speaker 1: It's just a different mindset that goes into play when

764
00:36:00,560 --> 00:36:02,560
Speaker 1: you're making a purchase like that. And so whether you're

765
00:36:02,600 --> 00:36:05,839
Speaker 1: a college football fan or a fan of golf or

766
00:36:05,960 --> 00:36:08,520
Speaker 1: disc golf, whatever it is that you're into, there are

767
00:36:08,600 --> 00:36:12,680
Speaker 1: ways to pursue that passion. You're keeping those secondary costs

768
00:36:12,840 --> 00:36:15,520
Speaker 1: in mind at the forefront of the decisions you make

769
00:36:15,560 --> 00:36:17,840
Speaker 1: and how you pursue that passion. Yeah, that's right. You

770
00:36:17,840 --> 00:36:20,400
Speaker 1: don't have to get the whole kitten caboodle to enjoy

771
00:36:20,480 --> 00:36:22,920
Speaker 1: something that you have a passion for. Honestly, this makes

772
00:36:22,960 --> 00:36:25,719
Speaker 1: me think of photography because for a lot of people,

773
00:36:25,719 --> 00:36:28,280
Speaker 1: a lot of folks enjoy photography and they get a camera,

774
00:36:28,800 --> 00:36:31,560
Speaker 1: and so a hard cost for photography might be the camera,

775
00:36:31,640 --> 00:36:33,640
Speaker 1: because you've gotta have a camera if you are into

776
00:36:34,000 --> 00:36:38,520
Speaker 1: taking pictures, right, But then there's all these lifestyle secondary

777
00:36:38,640 --> 00:36:41,080
Speaker 1: costs associated with it that people kind of get roped into,

778
00:36:41,360 --> 00:36:43,600
Speaker 1: especially with photography because a lot of times, if you're

779
00:36:43,600 --> 00:36:45,600
Speaker 1: in the photography, you're into the gear, and so you

780
00:36:45,640 --> 00:36:47,640
Speaker 1: get the bag to protect the camera and you get

781
00:36:47,640 --> 00:36:51,919
Speaker 1: the lens flashes. I know all this from experience. But

782
00:36:52,080 --> 00:36:53,960
Speaker 1: if you're doing it as a hobby, right, if you're

783
00:36:53,960 --> 00:36:56,360
Speaker 1: doing it just as something that you're interested in, you

784
00:36:56,440 --> 00:36:59,480
Speaker 1: can enjoy photography on the cheap by just sticking with

785
00:36:59,520 --> 00:37:01,600
Speaker 1: some of the bay sick stuff, or you can go

786
00:37:01,920 --> 00:37:04,480
Speaker 1: freaking crazy and get all the stuff and before you

787
00:37:04,480 --> 00:37:09,000
Speaker 1: know it, you've got like ten in glass alone. And

788
00:37:09,040 --> 00:37:13,160
Speaker 1: that's photography speak for lenses, right, because but it's called

789
00:37:13,160 --> 00:37:14,960
Speaker 1: glass because that's what you're paying for it, Like, it's

790
00:37:15,000 --> 00:37:18,399
Speaker 1: just expensive, expensive glass, and a lot of times it's

791
00:37:18,560 --> 00:37:21,880
Speaker 1: so silly. And even photographers that do professionally, man, they

792
00:37:21,920 --> 00:37:25,360
Speaker 1: get caught up in this sort of gear mentality and

793
00:37:25,360 --> 00:37:27,400
Speaker 1: and just collecting and they just want to have everything

794
00:37:27,400 --> 00:37:30,160
Speaker 1: match and for everything to all be the same. And

795
00:37:30,239 --> 00:37:33,400
Speaker 1: it's not about function, it's not about the utility that

796
00:37:33,440 --> 00:37:36,359
Speaker 1: it provides. It's it's more about emotions and what they

797
00:37:36,400 --> 00:37:39,520
Speaker 1: feel they need. And so being aware of that again

798
00:37:39,760 --> 00:37:43,240
Speaker 1: is something that is important because it does not cost

799
00:37:43,280 --> 00:37:45,799
Speaker 1: a lot of money to be in a photography It

800
00:37:45,880 --> 00:37:49,640
Speaker 1: costs a lot of money to collect photography gear. Yeah,

801
00:37:49,760 --> 00:37:52,080
Speaker 1: that's a big difference. So after the break, there's just

802
00:37:52,160 --> 00:37:54,520
Speaker 1: a few steps, a few simple steps that people can

803
00:37:54,560 --> 00:37:58,280
Speaker 1: take in order to make a wise choice when they're

804
00:37:58,320 --> 00:38:01,719
Speaker 1: making a purchase so that secondary costs don't sink that

805
00:38:01,800 --> 00:38:04,080
Speaker 1: purchase and make it a dumb one. We'll talk about

806
00:38:04,080 --> 00:38:15,640
Speaker 1: that in just a second. Let's get to the helpful

807
00:38:15,680 --> 00:38:18,040
Speaker 1: and specific tips. Is it gonna be the things to

808
00:38:18,120 --> 00:38:21,000
Speaker 1: remember when you're making these different purchases or some of

809
00:38:21,000 --> 00:38:24,520
Speaker 1: these financial decisions Joel, why don't you kick it off? Yeah, so, Matt,

810
00:38:24,600 --> 00:38:26,640
Speaker 1: I think the first thing to do is to have

811
00:38:26,680 --> 00:38:28,960
Speaker 1: a little brainstorm session, right. You want to try to

812
00:38:29,000 --> 00:38:31,400
Speaker 1: come up with as extensive of a list as you

813
00:38:31,440 --> 00:38:33,920
Speaker 1: can of what cost you might incur based on that

814
00:38:34,000 --> 00:38:37,799
Speaker 1: new purchase or decision, so home car, right, Like, some

815
00:38:37,880 --> 00:38:40,160
Speaker 1: of those things are straightforward, some of those things aren't straightforward.

816
00:38:40,440 --> 00:38:43,600
Speaker 1: The hard secondary costs are pretty straightforward when it comes

817
00:38:43,600 --> 00:38:46,360
Speaker 1: to taxes on a two ll house first a hundred

818
00:38:46,360 --> 00:38:49,359
Speaker 1: and fifty dollar house, But for the purchase, you have

819
00:38:49,640 --> 00:38:53,360
Speaker 1: control over both the hard and the soft secondary costs

820
00:38:53,719 --> 00:38:56,200
Speaker 1: once you make the purchase, right, those hard costs are

821
00:38:56,640 --> 00:39:00,319
Speaker 1: baked in. You can't really change them. So brainstorming and

822
00:39:00,360 --> 00:39:02,040
Speaker 1: knowing what they are ahead of time will help you

823
00:39:02,040 --> 00:39:04,680
Speaker 1: make an informed decision so that you don't take on

824
00:39:04,760 --> 00:39:06,719
Speaker 1: more than you can handle. That's right, man. That's like

825
00:39:06,760 --> 00:39:10,799
Speaker 1: the research and information gathering step right, Yeah, exactly, that's

826
00:39:10,880 --> 00:39:13,440
Speaker 1: right man. And so after you've gathered that information, the

827
00:39:13,480 --> 00:39:16,840
Speaker 1: next step that you want to take is to evaluate yourself.

828
00:39:17,040 --> 00:39:18,880
Speaker 1: You need to ask yourself, will I be able to

829
00:39:18,920 --> 00:39:23,600
Speaker 1: say no to these secondary lifestyle costs that are associated

830
00:39:23,640 --> 00:39:26,800
Speaker 1: with the initial purchase with the primary purchase. And what's

831
00:39:26,840 --> 00:39:29,280
Speaker 1: helpful I think too, man, is we've recently talked about

832
00:39:29,400 --> 00:39:31,479
Speaker 1: talking with your friends about money, and we talked about

833
00:39:31,520 --> 00:39:33,840
Speaker 1: the impact that your friends have on you when it

834
00:39:33,880 --> 00:39:37,160
Speaker 1: comes to expenses and spending, because it's natural that you

835
00:39:37,200 --> 00:39:39,000
Speaker 1: want to hang out with your friends, right, you want

836
00:39:39,000 --> 00:39:41,520
Speaker 1: to be in community, you want to feel like you're known,

837
00:39:42,040 --> 00:39:44,160
Speaker 1: and so you're naturally going to spend the same amount

838
00:39:44,160 --> 00:39:46,200
Speaker 1: that they spend. And so if you know all of

839
00:39:46,200 --> 00:39:50,640
Speaker 1: your friends, when they become uh SEC football fans, you

840
00:39:50,680 --> 00:39:53,359
Speaker 1: know what that means to them, right, You know whether

841
00:39:53,400 --> 00:39:56,280
Speaker 1: they go over boarder, whether they're super chill about Yeah, exactly.

842
00:39:56,320 --> 00:39:59,520
Speaker 1: And so are you willing to say no, sorry, I'm

843
00:39:59,520 --> 00:40:01,800
Speaker 1: gonna us show up for a couple of games. I

844
00:40:01,880 --> 00:40:04,600
Speaker 1: keep saying football, right, I keep saying college football being football,

845
00:40:04,719 --> 00:40:07,000
Speaker 1: That's what I mean, Right, I mean, e'rero being in

846
00:40:07,000 --> 00:40:10,959
Speaker 1: football because we're Atlanta United fans and so and even

847
00:40:11,000 --> 00:40:13,080
Speaker 1: with us, man, it's a temptation. That's the question I

848
00:40:13,120 --> 00:40:15,040
Speaker 1: asked myself, and so for Kate and I that was

849
00:40:15,080 --> 00:40:17,160
Speaker 1: a tough discussion and we talked about this on the

850
00:40:17,200 --> 00:40:19,520
Speaker 1: Couples and Money episode where we had our wives on.

851
00:40:19,880 --> 00:40:23,640
Speaker 1: But again just no, no, yourself, know your friends, and

852
00:40:23,680 --> 00:40:27,000
Speaker 1: just to be aware of the temptations and just be prepared. Yes,

853
00:40:27,080 --> 00:40:28,560
Speaker 1: so you really do have to kind of know yourself

854
00:40:28,560 --> 00:40:31,480
Speaker 1: and your tendencies and whether if you make the primary

855
00:40:31,480 --> 00:40:34,600
Speaker 1: purchase you will be able to restrain yourself on those

856
00:40:34,640 --> 00:40:37,360
Speaker 1: secondary costs, and then you need to do a cost

857
00:40:37,440 --> 00:40:40,239
Speaker 1: benefit analysis. I think it's really important, right, Well, this

858
00:40:40,320 --> 00:40:43,160
Speaker 1: purchase with all the primary costs and then all these

859
00:40:43,160 --> 00:40:47,239
Speaker 1: secondary associated costs return what I'm looking for, what I want.

860
00:40:47,480 --> 00:40:50,920
Speaker 1: Something as simple as additional sales tax on a purchase

861
00:40:50,920 --> 00:40:54,319
Speaker 1: of a television, or as large as an interest rate

862
00:40:54,360 --> 00:40:56,440
Speaker 1: on a home or student loan can help you make

863
00:40:56,440 --> 00:40:59,879
Speaker 1: the decision to buy it, to go to school, right,

864
00:41:00,280 --> 00:41:02,799
Speaker 1: or to not do that. College is great, But if

865
00:41:02,800 --> 00:41:04,920
Speaker 1: you have to pay interest on a student loan, like

866
00:41:05,000 --> 00:41:08,319
Speaker 1: purely hypothetical, right, there's a much smaller chance that you're

867
00:41:08,320 --> 00:41:10,959
Speaker 1: going to go to school. And in the same way.

868
00:41:11,040 --> 00:41:13,799
Speaker 1: For instance, recently on a TV mat it was Black

869
00:41:13,840 --> 00:41:16,400
Speaker 1: Friday and there was this great deal. I've had the

870
00:41:16,440 --> 00:41:18,560
Speaker 1: same TV for twelve years. I thought, you know what,

871
00:41:18,640 --> 00:41:20,520
Speaker 1: maybe it's time for me to get a new TV.

872
00:41:21,120 --> 00:41:23,239
Speaker 1: I saw the price it was great, I factored in

873
00:41:23,280 --> 00:41:25,880
Speaker 1: sales tax and just maybe it means I'm cheap. I

874
00:41:25,880 --> 00:41:28,120
Speaker 1: don't know. We talked about frugal versus cheap, but in

875
00:41:28,160 --> 00:41:30,359
Speaker 1: my mind it just didn't move the needle enough for

876
00:41:30,400 --> 00:41:33,120
Speaker 1: me after sales tax to make the purchase. So I

877
00:41:33,160 --> 00:41:34,959
Speaker 1: declined and I said, I'm gonna stick with my TV

878
00:41:35,000 --> 00:41:37,960
Speaker 1: for another year. And so a cost benefit analysis can

879
00:41:38,000 --> 00:41:41,319
Speaker 1: just really help hammer home whether a purchase or a

880
00:41:41,440 --> 00:41:44,320
Speaker 1: decision is worth it or not, and whether the benefit

881
00:41:44,360 --> 00:41:47,560
Speaker 1: you're going to receive is equivalent to the outgoing costs

882
00:41:47,920 --> 00:41:51,680
Speaker 1: associated with that move. And then finally, once you have

883
00:41:51,880 --> 00:41:54,920
Speaker 1: all that information, once you've gathered that information, and then

884
00:41:54,960 --> 00:41:57,000
Speaker 1: once you sort of analyze what kind of benefit is

885
00:41:57,000 --> 00:41:59,000
Speaker 1: this going to bring to me? Is it going to

886
00:41:59,080 --> 00:42:02,320
Speaker 1: be worth the cost? Once you have all the information together,

887
00:42:02,360 --> 00:42:05,160
Speaker 1: you need to act on that information. You do not

888
00:42:05,239 --> 00:42:07,880
Speaker 1: need to sweep that sort of under the rug just

889
00:42:07,920 --> 00:42:10,680
Speaker 1: because you want to emotionally make a purchase that you

890
00:42:10,760 --> 00:42:13,479
Speaker 1: know you shouldn't. Yeah, and that's the great thing about

891
00:42:13,520 --> 00:42:16,600
Speaker 1: this matter, I think, is having numbers, having this process

892
00:42:16,800 --> 00:42:20,160
Speaker 1: right so that you can't just emotionally sweep that something

893
00:42:20,239 --> 00:42:22,120
Speaker 1: under the rug in order to make the decision that

894
00:42:22,320 --> 00:42:24,880
Speaker 1: you want to in your heart. These steps kind of

895
00:42:24,920 --> 00:42:27,520
Speaker 1: help quantify it so that you're not doing that. Let's right,

896
00:42:27,600 --> 00:42:30,279
Speaker 1: Knowledge is power, right, and having that information will help

897
00:42:30,320 --> 00:42:32,200
Speaker 1: you to make a better decision. You don't need to

898
00:42:32,239 --> 00:42:34,720
Speaker 1: be sticking your head in the sand and just ignoring

899
00:42:34,760 --> 00:42:36,440
Speaker 1: all that's around you just because you want to do

900
00:42:36,480 --> 00:42:39,000
Speaker 1: what you want to do. Having that information helps you

901
00:42:39,040 --> 00:42:41,400
Speaker 1: to make an informed decision. All right, Joel, Let's go

902
00:42:41,400 --> 00:42:43,760
Speaker 1: ahead and get back to the beer. This is pretty

903
00:42:43,840 --> 00:42:48,239
Speaker 1: Willie's Imperial Stouts and this is by Against the Grain. Yeah,

904
00:42:48,280 --> 00:42:51,080
Speaker 1: so this is part of their Staved for later series,

905
00:42:51,400 --> 00:42:54,240
Speaker 1: you would explain what staves are. So staves are the

906
00:42:54,320 --> 00:42:57,480
Speaker 1: wooden pieces in a barrel that's made so like the

907
00:42:57,480 --> 00:43:00,720
Speaker 1: individual wooden slats that come together to form an entire barrel.

908
00:43:01,040 --> 00:43:03,640
Speaker 1: And so this is a barrel aged Imperial Stout that

909
00:43:03,719 --> 00:43:06,120
Speaker 1: the brewery wants people to age for a certain period

910
00:43:06,120 --> 00:43:08,120
Speaker 1: of time. And so I got this beer over a

911
00:43:08,200 --> 00:43:11,239
Speaker 1: year ago from my awesome real estate agent and our

912
00:43:11,320 --> 00:43:14,000
Speaker 1: mutual friend Matt Helen, both of our real estate agent. Yeah.

913
00:43:14,040 --> 00:43:16,480
Speaker 1: Actually I was gonna say so in my story earlier

914
00:43:16,680 --> 00:43:19,399
Speaker 1: where we met. It's coming full circle. Man, this wasn't

915
00:43:19,440 --> 00:43:23,200
Speaker 1: at her house? Yes, yeah's Helen and Lee invited both

916
00:43:23,600 --> 00:43:25,600
Speaker 1: you and Emily and me and Kate over to their

917
00:43:25,600 --> 00:43:27,560
Speaker 1: house and we played. We played nerdy board games, and

918
00:43:27,880 --> 00:43:29,480
Speaker 1: little did you know that that was gonna be the

919
00:43:29,480 --> 00:43:35,600
Speaker 1: beginning of how to money of a beautiful friendship, fun

920
00:43:35,680 --> 00:43:39,719
Speaker 1: podcast and an amazing real estate agent Helen, And so

921
00:43:39,800 --> 00:43:42,279
Speaker 1: she's supersweet. She knows you know our love for craft beer,

922
00:43:42,360 --> 00:43:44,200
Speaker 1: my love for craft beer. And she gave me this

923
00:43:44,280 --> 00:43:47,880
Speaker 1: fantastic bottle of beer as a closing present, and I

924
00:43:48,000 --> 00:43:50,480
Speaker 1: have let it age for over a year because that's

925
00:43:50,480 --> 00:43:52,600
Speaker 1: the intent behind this beer. And so we're drinking it now,

926
00:43:52,840 --> 00:43:56,080
Speaker 1: excited to finally have pretty Willie's Imperial Stout. And Matt

927
00:43:56,120 --> 00:43:57,439
Speaker 1: both of us right at the beginning of the show,

928
00:43:57,440 --> 00:44:00,480
Speaker 1: we each gave kind of one word to describe the beer,

929
00:44:00,960 --> 00:44:05,080
Speaker 1: and this is a big beer. It's a huge stout. Yeah,

930
00:44:05,080 --> 00:44:06,960
Speaker 1: I'm feeling it for sure, and I'm not even done

931
00:44:07,000 --> 00:44:10,040
Speaker 1: with mine. So the word I used to describe it

932
00:44:10,160 --> 00:44:13,400
Speaker 1: was roasty. Yeah, you said roasty, And honestly, now that

933
00:44:13,440 --> 00:44:15,279
Speaker 1: I've had a little more, I don't think it's like

934
00:44:15,360 --> 00:44:16,960
Speaker 1: the best word. I don't think it's the best word

935
00:44:17,000 --> 00:44:18,880
Speaker 1: to begin with. I felt like an idiot setting it,

936
00:44:18,920 --> 00:44:21,560
Speaker 1: but I said it. That's a good word. So it's

937
00:44:21,560 --> 00:44:23,440
Speaker 1: But I bet you're wishing you would have said jacket.

938
00:44:25,040 --> 00:44:28,040
Speaker 1: Definitely not wishing that, definitely not feeling that even at

939
00:44:28,040 --> 00:44:29,880
Speaker 1: this point in time. But please tell us why you

940
00:44:29,880 --> 00:44:31,960
Speaker 1: said jacket. Well, I mean I said jacket because as

941
00:44:32,000 --> 00:44:33,960
Speaker 1: soon as I drank it, I felt like the texture

942
00:44:34,080 --> 00:44:36,359
Speaker 1: of the beer before I tasted it, and it just

943
00:44:36,400 --> 00:44:38,560
Speaker 1: felt like it was wrapping my tongue and like this

944
00:44:38,760 --> 00:44:42,320
Speaker 1: nice winter coat full of like boozy warmth, you know

945
00:44:42,320 --> 00:44:43,799
Speaker 1: what I'm saying. Like when you have a bigger beer

946
00:44:43,840 --> 00:44:45,360
Speaker 1: like this, you can kind of feel the booze on

947
00:44:45,400 --> 00:44:47,440
Speaker 1: your tongue before you actually even taste it with your

948
00:44:47,520 --> 00:44:49,560
Speaker 1: I don't know your taste beds. And so for me,

949
00:44:49,600 --> 00:44:51,239
Speaker 1: it was more of a texture thing because it's an

950
00:44:51,520 --> 00:44:53,920
Speaker 1: Imperial stout, so it's a little bit thicker, and it's

951
00:44:53,960 --> 00:44:57,799
Speaker 1: got all the roasted and multi chocolate flavors in it,

952
00:44:57,960 --> 00:45:00,359
Speaker 1: which is funny because I think right after I said

953
00:45:00,440 --> 00:45:02,759
Speaker 1: roasty like an idiot, and the next word that came

954
00:45:02,800 --> 00:45:07,120
Speaker 1: to my mind was warming. Yeah, because it truly does.

955
00:45:07,280 --> 00:45:10,760
Speaker 1: It's bourbon barrel aged. It has a nice bourbon flavor

956
00:45:10,800 --> 00:45:13,680
Speaker 1: going on, and it almost warms you, like on a

957
00:45:13,719 --> 00:45:16,200
Speaker 1: cold day when you have a sip of Scotch or bourbon.

958
00:45:16,360 --> 00:45:18,640
Speaker 1: It almost kind of warms your insides just a little bit,

959
00:45:18,760 --> 00:45:21,080
Speaker 1: sort of like you're wearing a jacket, sort of like

960
00:45:21,120 --> 00:45:25,399
Speaker 1: a jacket touche. You win this one, sir, you win

961
00:45:25,440 --> 00:45:28,120
Speaker 1: this battle, but you will not win the war. I

962
00:45:28,120 --> 00:45:31,839
Speaker 1: guess jacket makes a little more sense now, um, awkwardly so,

963
00:45:32,360 --> 00:45:34,800
Speaker 1: but yeah, this was a delicious beer. And we always

964
00:45:34,800 --> 00:45:37,480
Speaker 1: mentioned untapped on there though. You can kind of rank

965
00:45:37,560 --> 00:45:40,400
Speaker 1: and rate the beers that you get to enjoy, and

966
00:45:40,440 --> 00:45:42,120
Speaker 1: for us, it's a great way to keep up with

967
00:45:42,160 --> 00:45:44,279
Speaker 1: the different beers that we've had. Yeah, and so out

968
00:45:44,320 --> 00:45:46,319
Speaker 1: of five stars, role, what would you give this beer?

969
00:45:46,640 --> 00:45:48,480
Speaker 1: The great thing about on Tap two is that I

970
00:45:48,480 --> 00:45:51,239
Speaker 1: feel like I can research beers to see what other

971
00:45:51,239 --> 00:45:54,080
Speaker 1: people rank them before I make a purchase. And so

972
00:45:54,160 --> 00:45:55,719
Speaker 1: you got pulled up. Don't tell me, don't tell well,

973
00:45:55,800 --> 00:45:57,960
Speaker 1: let me rank mine. Let me rank it first. Okay

974
00:45:58,000 --> 00:45:59,839
Speaker 1: for me, this is a great imperial style, I think

975
00:45:59,840 --> 00:46:01,920
Speaker 1: I might dude, I would even give this a solid

976
00:46:02,000 --> 00:46:04,239
Speaker 1: four and a half stars. Yeah, for me. It's a

977
00:46:04,280 --> 00:46:07,239
Speaker 1: foreign a quarter, solid foreign a quarter. It's a really

978
00:46:07,239 --> 00:46:09,319
Speaker 1: good beer. It's solid, dude, I really like it, but

979
00:46:09,360 --> 00:46:11,680
Speaker 1: there's nothing that stands out to make it epic, but

980
00:46:11,760 --> 00:46:15,600
Speaker 1: truly refined. Very nice. Glad, I laid it down, Glad.

981
00:46:15,640 --> 00:46:18,239
Speaker 1: We got to drink this together. Nice foreign quarter and

982
00:46:18,360 --> 00:46:22,160
Speaker 1: the average untapped rating four point to eight. Oh perfect,

983
00:46:22,320 --> 00:46:25,000
Speaker 1: We're right on the money. Al right, Enough about the beer, Joel,

984
00:46:25,040 --> 00:46:27,160
Speaker 1: It's time now for some final thoughts. Kick it off,

985
00:46:27,320 --> 00:46:29,760
Speaker 1: all right, Matt, So just a reminder to everyone, there

986
00:46:29,800 --> 00:46:33,440
Speaker 1: are secondary costs involved with almost any purchase or decision

987
00:46:33,480 --> 00:46:36,160
Speaker 1: that you make in life, and it is important to

988
00:46:36,200 --> 00:46:40,520
Speaker 1: consider both the hard secondary costs that are immovable that

989
00:46:40,600 --> 00:46:43,200
Speaker 1: are there no matter what once you make that purchase

990
00:46:43,320 --> 00:46:47,560
Speaker 1: or decision, and also the soft or lifestyle secondary costs

991
00:46:47,600 --> 00:46:50,600
Speaker 1: that follow a purchase or decision that you make. These

992
00:46:50,640 --> 00:46:54,279
Speaker 1: costs to fall outside of the original purchase amount, right,

993
00:46:54,360 --> 00:46:56,320
Speaker 1: and they can turn what seems like a good purchase

994
00:46:56,400 --> 00:46:58,839
Speaker 1: on the front end into one that does not work

995
00:46:58,880 --> 00:47:01,879
Speaker 1: well for you or your budget. That's right, man. And

996
00:47:02,120 --> 00:47:04,840
Speaker 1: the process of the things that you want to remember

997
00:47:04,960 --> 00:47:08,120
Speaker 1: when you're making these purchases or financial decisions. First, of

998
00:47:08,120 --> 00:47:10,240
Speaker 1: all brainstorm. You want to come up with a list

999
00:47:10,360 --> 00:47:12,880
Speaker 1: of all the different costs, all the different secondary costs

1000
00:47:12,880 --> 00:47:16,319
Speaker 1: associated with that purchase. Next, you need to know yourself,

1001
00:47:16,640 --> 00:47:19,840
Speaker 1: how are you going to respond to the soft or

1002
00:47:20,000 --> 00:47:23,319
Speaker 1: lifestyle secondary costs associated with that? Will you be able

1003
00:47:23,320 --> 00:47:25,640
Speaker 1: to say no when you feel those cultural pressures to

1004
00:47:26,200 --> 00:47:28,880
Speaker 1: get the next piece that matches whatever it is that

1005
00:47:28,920 --> 00:47:32,120
Speaker 1: you just got. Next, you want to do an analysis.

1006
00:47:32,200 --> 00:47:35,640
Speaker 1: You know, will the purchased item bring the joy, bring

1007
00:47:35,680 --> 00:47:38,319
Speaker 1: the benefit and the utility that you're expecting it to

1008
00:47:38,360 --> 00:47:40,560
Speaker 1: bring in your life. And then lastly, you need to

1009
00:47:40,560 --> 00:47:42,560
Speaker 1: take all that information and you need to take action

1010
00:47:42,719 --> 00:47:44,839
Speaker 1: on what you've learned and what you've gathered. You don't

1011
00:47:44,880 --> 00:47:46,719
Speaker 1: want to sweep it under the rug. You don't want

1012
00:47:46,719 --> 00:47:48,440
Speaker 1: to stick your head in the sand. You want to

1013
00:47:48,440 --> 00:47:50,960
Speaker 1: take the next steps to either make that purchase or

1014
00:47:50,960 --> 00:47:54,760
Speaker 1: to not make that purchase based on what you've decided. So, everyone,

1015
00:47:54,840 --> 00:47:58,000
Speaker 1: we appreciate you listening to this episode of the podcast.

1016
00:47:58,080 --> 00:48:01,080
Speaker 1: Be sure to check out our website how to money

1017
00:48:01,160 --> 00:48:03,640
Speaker 1: dot com up there. As always, we will have some

1018
00:48:03,640 --> 00:48:07,239
Speaker 1: show notes with some additional links and some more information

1019
00:48:07,320 --> 00:48:09,920
Speaker 1: that we discussed in this episode. Yeah, if you like

1020
00:48:09,960 --> 00:48:12,680
Speaker 1: what you here. Let us know in particular, please leave

1021
00:48:12,719 --> 00:48:15,480
Speaker 1: a review on Apple podcast or wherever you're listening to

1022
00:48:15,520 --> 00:48:17,719
Speaker 1: the show. We really appreciate it, and don't forget to

1023
00:48:17,800 --> 00:48:20,040
Speaker 1: hit the subscribe button while you're there. All right, buddy,

1024
00:48:20,080 --> 00:48:22,839
Speaker 1: Until next time, Best friends Out, Best Friends Out, Man