1 00:00:00,080 --> 00:00:02,720 Speaker 1: Welcome to How the Money. I'm Joel, I'm Matt, and 2 00:00:02,800 --> 00:00:26,200 Speaker 1: today we're discussing popular money advice that just ain't right, Joel. 3 00:00:26,280 --> 00:00:29,360 Speaker 1: Even the crappiest financial advice that's out there, it still 4 00:00:29,360 --> 00:00:32,839 Speaker 1: has a little negative truth, right, Like oftentimes, the reason 5 00:00:33,040 --> 00:00:35,440 Speaker 1: I think it resonates with folks is because they're like, oh, 6 00:00:35,479 --> 00:00:37,440 Speaker 1: no, no no, no, that's true. I've heard that before. I've 7 00:00:37,440 --> 00:00:39,599 Speaker 1: heard my parents talk about that, I've heard friends talk 8 00:00:39,640 --> 00:00:42,120 Speaker 1: about that. But that doesn't necessarily mean that it's like 9 00:00:42,159 --> 00:00:45,960 Speaker 1: this super bulletproof piece of financial advice that you should 10 00:00:46,000 --> 00:00:48,680 Speaker 1: be following to the letter with every dollar that you make. Yes, 11 00:00:48,760 --> 00:00:50,560 Speaker 1: some some of the pieces of advice we're going to 12 00:00:50,640 --> 00:00:53,000 Speaker 1: cover in this episode are things that you've heard people 13 00:00:53,000 --> 00:00:55,920 Speaker 1: say and they are smart people, and so you automatically 14 00:00:55,920 --> 00:00:58,920 Speaker 1: assume that based on their other advice or based on 15 00:00:58,960 --> 00:01:01,640 Speaker 1: the back that you've heard this from all sources of information, 16 00:01:01,640 --> 00:01:03,800 Speaker 1: that is good. And then it's probabble advice that your 17 00:01:03,800 --> 00:01:05,920 Speaker 1: grandparents gave you, and you're like, that would never steer 18 00:01:05,959 --> 00:01:08,479 Speaker 1: me wrong. It's like, well it's not quite right. Yeah, 19 00:01:08,560 --> 00:01:10,600 Speaker 1: we we want you to question everything that your grandparents 20 00:01:10,640 --> 00:01:13,000 Speaker 1: taught you. In this episode, now that's okay, that's too far. 21 00:01:13,120 --> 00:01:16,000 Speaker 1: Not not really. But but there are a lot of things, yeah, 22 00:01:16,000 --> 00:01:18,440 Speaker 1: that we're going to cover today, and and some of 23 00:01:18,480 --> 00:01:20,400 Speaker 1: it has, like you said, Matt, a ring of truth, 24 00:01:20,440 --> 00:01:22,640 Speaker 1: but we're gonna say, okay, here's here's the nugget that 25 00:01:22,800 --> 00:01:24,360 Speaker 1: is actually true, but here's where you should throw out 26 00:01:24,400 --> 00:01:26,160 Speaker 1: the rest of it. Uh. And so yeah, we've got 27 00:01:26,200 --> 00:01:27,800 Speaker 1: a lot to get to on this episode. But before 28 00:01:27,800 --> 00:01:30,080 Speaker 1: we get to that, Matt, I wanted to mention that 29 00:01:30,440 --> 00:01:32,000 Speaker 1: you and I we've talked about on the show, how 30 00:01:32,040 --> 00:01:35,640 Speaker 1: we have meta share covering our families when it comes 31 00:01:35,680 --> 00:01:41,200 Speaker 1: to our our health insurance actual insurance, not technically health insurance. 32 00:01:41,240 --> 00:01:44,560 Speaker 1: It's a health sharing plan exactly, but it is a 33 00:01:44,600 --> 00:01:47,800 Speaker 1: lot cheaper than than insurance. And How's even talking to 34 00:01:47,840 --> 00:01:49,360 Speaker 1: a neighbor the other day and he was saying what 35 00:01:49,440 --> 00:01:52,640 Speaker 1: he gets through his work, that his premiums every month 36 00:01:52,680 --> 00:01:56,160 Speaker 1: are really expensive, like even though his employer subsidizes a 37 00:01:56,200 --> 00:01:59,320 Speaker 1: decent chunk of those premiums, like it's there's still a 38 00:01:59,400 --> 00:02:02,120 Speaker 1: lot on the plate for him to have to pay 39 00:02:02,160 --> 00:02:05,240 Speaker 1: every single month. And so for us, it seems it's 40 00:02:05,320 --> 00:02:07,400 Speaker 1: the cheapest, most effective way for us to cover our 41 00:02:07,400 --> 00:02:09,840 Speaker 1: families and we we've got a review on it. If 42 00:02:09,840 --> 00:02:11,000 Speaker 1: you want to read it, will link to it in 43 00:02:11,000 --> 00:02:13,240 Speaker 1: the show notes that Matt wrote about how it's worked 44 00:02:13,280 --> 00:02:15,520 Speaker 1: for his family. But I found one of one of 45 00:02:15,560 --> 00:02:19,120 Speaker 1: my new favorite features of Menashare is that they have 46 00:02:19,320 --> 00:02:21,880 Speaker 1: partnered with basically this tele doot company called m d 47 00:02:22,040 --> 00:02:26,040 Speaker 1: Live and you can virtually visit a doctor on the 48 00:02:26,040 --> 00:02:30,800 Speaker 1: computer or via phone for free, which is just another 49 00:02:30,960 --> 00:02:33,959 Speaker 1: massive win for for us. Is included in the price. 50 00:02:34,000 --> 00:02:37,960 Speaker 1: There's no baseline fee, there's no copay that comes with that. 51 00:02:38,040 --> 00:02:39,919 Speaker 1: It is included, so like a week and a half, 52 00:02:39,919 --> 00:02:42,440 Speaker 1: which I've seen before, but like I've I've never never 53 00:02:42,720 --> 00:02:44,440 Speaker 1: taken advantage of. So we used it for the first 54 00:02:44,440 --> 00:02:46,840 Speaker 1: time a couple of weeks ago. Like all of our 55 00:02:46,919 --> 00:02:49,919 Speaker 1: kids were sick. I think everybody that we knew had 56 00:02:49,960 --> 00:02:52,680 Speaker 1: sick kids. Like it was going around. It's like flu, 57 00:02:53,000 --> 00:02:58,560 Speaker 1: it's COVID, it's colds, everything everything hating simultaneously. Everyone I 58 00:02:58,600 --> 00:03:00,359 Speaker 1: know who had a kid like had to pulled out 59 00:03:00,360 --> 00:03:02,200 Speaker 1: of school for a couple of days, and so we 60 00:03:02,200 --> 00:03:04,240 Speaker 1: were like, Okay, We're gonna try to go see the pediatrician. 61 00:03:04,520 --> 00:03:06,720 Speaker 1: They were full up. Man, think they didn't have room 62 00:03:06,760 --> 00:03:09,440 Speaker 1: to take us because everybody was sick, and so we're like, okay, 63 00:03:09,520 --> 00:03:12,320 Speaker 1: we're gonna give this tele doc MDIE Live. We're gonna 64 00:03:12,360 --> 00:03:14,880 Speaker 1: give it a shot. And it was great, Like it 65 00:03:14,960 --> 00:03:17,359 Speaker 1: was so simple. We waited forty five minutes and you 66 00:03:17,400 --> 00:03:19,160 Speaker 1: don't even like you're not like sitting in a waiting 67 00:03:19,240 --> 00:03:21,600 Speaker 1: room though, you're literally at home kicking it. And then 68 00:03:21,600 --> 00:03:23,000 Speaker 1: you get a text and it's like the doctor will 69 00:03:23,000 --> 00:03:25,120 Speaker 1: see you now, so you hop into the to the chat, 70 00:03:25,160 --> 00:03:27,320 Speaker 1: to the to the you click click the link. Waiting 71 00:03:27,360 --> 00:03:29,519 Speaker 1: forty five minutes at home while you're cooking dinner or 72 00:03:29,840 --> 00:03:31,919 Speaker 1: cleaning the dishes or something like that. It's much much 73 00:03:31,919 --> 00:03:34,440 Speaker 1: better than sitting in a waiting room full of other 74 00:03:34,720 --> 00:03:39,720 Speaker 1: sick kids sneezing on you and being all nasty. And 75 00:03:39,760 --> 00:03:42,320 Speaker 1: then there's no sick visit that we had to pay. 76 00:03:42,400 --> 00:03:45,080 Speaker 1: There's it's literally free to get the dice in. Yeah, 77 00:03:45,160 --> 00:03:47,560 Speaker 1: so I will say I'm super happy with it. Sunslineles 78 00:03:47,560 --> 00:03:51,960 Speaker 1: pretty bullish on teleduct teledoc stocks. I know, well, you know, 79 00:03:52,000 --> 00:03:53,920 Speaker 1: the Telenox stock in particular has not been doing well 80 00:03:53,920 --> 00:03:55,800 Speaker 1: as a plate, but um, yeah, it's it's just one 81 00:03:55,840 --> 00:03:57,680 Speaker 1: of those things that adds a lot of value to 82 00:03:58,040 --> 00:04:00,520 Speaker 1: our meta share membership. Nice looking for or to checking 83 00:04:00,560 --> 00:04:02,480 Speaker 1: that out. That's not something that we've taken advantage of yet, 84 00:04:02,480 --> 00:04:04,520 Speaker 1: but I could totally see where that would come in handy. 85 00:04:04,560 --> 00:04:07,480 Speaker 1: In particular, if you know that you just need we 86 00:04:07,560 --> 00:04:10,080 Speaker 1: probably need this prescript. You know this prescribed, We just 87 00:04:10,120 --> 00:04:13,560 Speaker 1: need some meds. My kids are particularly susceptible to SHREP 88 00:04:13,640 --> 00:04:15,840 Speaker 1: for some reason. It's a favorite. And so yeah, we 89 00:04:15,840 --> 00:04:17,599 Speaker 1: had to answer a couple questions of the dock and 90 00:04:17,600 --> 00:04:19,800 Speaker 1: and typically they like to do a swab. But he 91 00:04:19,839 --> 00:04:22,720 Speaker 1: even prescribed an antibiotic you know in that in that chat, 92 00:04:22,760 --> 00:04:25,280 Speaker 1: which is cool. Did did they make make your daughter 93 00:04:25,320 --> 00:04:27,400 Speaker 1: and make her open up her mouth? We took a picture? 94 00:04:27,440 --> 00:04:29,240 Speaker 1: Oh yeah, yeah, we took a picture. We sent it 95 00:04:29,279 --> 00:04:31,320 Speaker 1: in even before the appointment, because if you're on a 96 00:04:31,400 --> 00:04:33,000 Speaker 1: video call, he could just be all right, make sure 97 00:04:33,000 --> 00:04:35,240 Speaker 1: the video lights on and just just jam it in 98 00:04:35,279 --> 00:04:39,000 Speaker 1: there real close. You hear him talking. It's like echoing 99 00:04:39,080 --> 00:04:44,200 Speaker 1: in her mouth. Water. That's cool, that's cool that. I'm 100 00:04:44,240 --> 00:04:46,560 Speaker 1: glad you were able to take advantage of that. Um. 101 00:04:46,640 --> 00:04:48,719 Speaker 1: Hopefully we won't need to take advantage of that soon. 102 00:04:48,760 --> 00:04:51,960 Speaker 1: But I'm glad to know that it exists. Let's introduce 103 00:04:52,040 --> 00:04:55,760 Speaker 1: the beer. You and I. We are enjoying another Talisman beer. Uh, 104 00:04:55,760 --> 00:04:58,480 Speaker 1: and this one is called Uplifted. It is a Scottish 105 00:04:58,600 --> 00:05:01,320 Speaker 1: style ale Andy. Thank you so much for donating this. 106 00:05:01,320 --> 00:05:04,200 Speaker 1: This is our last of the Talisman beers. They're out 107 00:05:04,240 --> 00:05:06,839 Speaker 1: of Utah, but looking forward to enjoying this one, and 108 00:05:06,880 --> 00:05:09,400 Speaker 1: we will share our thoughts at the end of the episode, 109 00:05:09,520 --> 00:05:11,120 Speaker 1: no doubt, all right, but let's get onto it, Matt. 110 00:05:11,360 --> 00:05:13,720 Speaker 1: The subject at hand is do it popular money advice 111 00:05:13,800 --> 00:05:16,279 Speaker 1: that just ain't right, and uh, it made me think 112 00:05:16,279 --> 00:05:18,640 Speaker 1: of maybe some other pieces of advice that we just 113 00:05:18,720 --> 00:05:20,680 Speaker 1: assume are correct because you've heard it so much, so 114 00:05:20,720 --> 00:05:24,120 Speaker 1: many times. And I personally like to get out there 115 00:05:24,480 --> 00:05:28,240 Speaker 1: and grill on occasion. And you've you've heard everybody say 116 00:05:28,279 --> 00:05:31,200 Speaker 1: it that searing your meat. Is this the best way 117 00:05:31,200 --> 00:05:32,640 Speaker 1: to lock in the flavor? Right? You want to get 118 00:05:32,640 --> 00:05:35,280 Speaker 1: that grill, piping hot, lock in the moisture, slap that 119 00:05:35,960 --> 00:05:38,280 Speaker 1: steak down or whatever it is, and that is going 120 00:05:38,320 --> 00:05:40,600 Speaker 1: to yeah, lock in the moisture. It's something I've heard 121 00:05:40,640 --> 00:05:43,200 Speaker 1: folks say for years. You and then you get to 122 00:05:43,320 --> 00:05:46,479 Speaker 1: right right after they click their tongues and they're like, 123 00:05:46,480 --> 00:05:48,040 Speaker 1: all right, that's ready, that's right, And then it's like 124 00:05:48,120 --> 00:05:50,760 Speaker 1: you're gonna get to get to eat that juicy, medium 125 00:05:50,800 --> 00:05:53,400 Speaker 1: rare steak that you have always dreamed of, but you've 126 00:05:53,400 --> 00:05:55,840 Speaker 1: got to get the sear right. But as it turns out, 127 00:05:56,520 --> 00:05:59,640 Speaker 1: that's actually the farthest thing from the truth. Culinary scientists 128 00:05:59,720 --> 00:06:02,320 Speaker 1: tell us that although this sounds like good advice, it's 129 00:06:02,360 --> 00:06:04,640 Speaker 1: not actually the best method if you want to get 130 00:06:04,680 --> 00:06:08,479 Speaker 1: the proper outcome. And it's true that searing your steak 131 00:06:08,560 --> 00:06:11,840 Speaker 1: is going to brown it, which does increase some caramelization, flavor, 132 00:06:11,839 --> 00:06:14,240 Speaker 1: and texture here at some point. Yeah, it's good for 133 00:06:14,279 --> 00:06:16,479 Speaker 1: other reasons, but not necessarily what you're saying from a 134 00:06:16,480 --> 00:06:19,719 Speaker 1: moisture stand for, Yeah, like that's the my yard reaction whatever, 135 00:06:19,880 --> 00:06:22,719 Speaker 1: where basically you're reducing some of those sugars and that's 136 00:06:22,720 --> 00:06:25,839 Speaker 1: what creates that delicious smell. Like when you smell delicious food, 137 00:06:26,040 --> 00:06:28,680 Speaker 1: it's because of the browning. It's because of the searing 138 00:06:28,760 --> 00:06:31,200 Speaker 1: that often is taking place, But that doesn't necessarily have 139 00:06:31,279 --> 00:06:33,240 Speaker 1: anything to do with like you're saying, the moisture of 140 00:06:33,279 --> 00:06:36,080 Speaker 1: the meat that you're ceiling in like a I pictured 141 00:06:36,120 --> 00:06:38,200 Speaker 1: like a raincoat or you know, or like somebody who's 142 00:06:38,200 --> 00:06:40,160 Speaker 1: like trying to make weight for like wrestling or something 143 00:06:40,200 --> 00:06:42,680 Speaker 1: like that, and they're like wearing trash bags. They're just 144 00:06:42,720 --> 00:06:45,680 Speaker 1: like locking in all that mark, all that nasty moisture, 145 00:06:45,680 --> 00:06:47,640 Speaker 1: and they're just sweating like crazy. That s here does 146 00:06:47,680 --> 00:06:49,960 Speaker 1: not act like a rain jacket for your steak. No, no, 147 00:06:50,080 --> 00:06:52,640 Speaker 1: it doesn't. And the truth is starting to cook your 148 00:06:52,640 --> 00:06:56,279 Speaker 1: steak slower and then doing a reverse here to add 149 00:06:56,279 --> 00:06:58,119 Speaker 1: the flavor of the end is the best method getting 150 00:06:58,120 --> 00:07:01,680 Speaker 1: really fancy these days. So even let's say you you 151 00:07:01,680 --> 00:07:03,880 Speaker 1: put that steak in a suvie, you low cook it 152 00:07:03,960 --> 00:07:06,120 Speaker 1: until it reaches a certain temperature, and then you slap 153 00:07:06,160 --> 00:07:07,360 Speaker 1: it on the grill for like a minute a half 154 00:07:07,360 --> 00:07:08,960 Speaker 1: on each side or something like that. Typically a lot 155 00:07:09,000 --> 00:07:10,440 Speaker 1: of folks say that's the way you're gonna get the 156 00:07:10,440 --> 00:07:13,360 Speaker 1: best tasting steak in the end. But it's just not 157 00:07:13,440 --> 00:07:16,680 Speaker 1: what you normally hear as typical grilling advice from most folks. 158 00:07:16,680 --> 00:07:19,760 Speaker 1: And just like that BS grilling advice, right, that just 159 00:07:19,920 --> 00:07:22,800 Speaker 1: isn't right. We're gonna spend some time talking smack about 160 00:07:22,800 --> 00:07:25,120 Speaker 1: personal finance advice today on the show that we just 161 00:07:25,160 --> 00:07:29,120 Speaker 1: dislike or maybe that that has taken on this element 162 00:07:29,120 --> 00:07:31,280 Speaker 1: of gospel truth. But we would say, in reality, there's 163 00:07:31,320 --> 00:07:34,040 Speaker 1: a lot of mistruth in that statement, and so we're 164 00:07:34,040 --> 00:07:35,600 Speaker 1: going to kind of like break them down and talk 165 00:07:35,640 --> 00:07:37,440 Speaker 1: about them today show. Yeah, Like there's just a lot 166 00:07:37,440 --> 00:07:40,280 Speaker 1: of crappy things out there being said. Uh And oftentimes 167 00:07:40,280 --> 00:07:42,200 Speaker 1: I think the problem is that we like we hear 168 00:07:42,280 --> 00:07:44,680 Speaker 1: something and because it intuitively it makes you know, some 169 00:07:44,720 --> 00:07:46,800 Speaker 1: sort of sense, like we just stick with it, just 170 00:07:46,840 --> 00:07:49,480 Speaker 1: like you were talking about with the searing meat, or 171 00:07:49,520 --> 00:07:51,640 Speaker 1: maybe it's just packaged in such a way that it 172 00:07:51,720 --> 00:07:54,160 Speaker 1: makes it easy to remember, right, Because like we're all living, 173 00:07:54,160 --> 00:07:56,920 Speaker 1: busy live, So anytime we're able to hear something that 174 00:07:56,960 --> 00:07:59,720 Speaker 1: allows us to simplify and make life a little bit easier, 175 00:08:00,040 --> 00:08:02,200 Speaker 1: we're gonna cling to that basic rule of thumb. I 176 00:08:02,240 --> 00:08:03,840 Speaker 1: think it's one of the ways that we're that we're 177 00:08:03,840 --> 00:08:06,160 Speaker 1: able to be super productive, right, Like, most folks are 178 00:08:06,160 --> 00:08:09,080 Speaker 1: looking for shortcuts, but it doesn't always mean that those 179 00:08:09,080 --> 00:08:11,640 Speaker 1: shortcuts are accurate and that they that they're the best 180 00:08:11,920 --> 00:08:14,200 Speaker 1: method of of action for you and your money. And 181 00:08:14,240 --> 00:08:17,320 Speaker 1: the fact is there have always been uh folks out 182 00:08:17,320 --> 00:08:19,680 Speaker 1: there who are just spouting bad information, right, Like, I 183 00:08:19,680 --> 00:08:22,840 Speaker 1: think most folks are well intentioned, but you're likely going 184 00:08:22,880 --> 00:08:25,920 Speaker 1: to encounter some bad advice as you are working to 185 00:08:25,960 --> 00:08:28,400 Speaker 1: get your personal finances in order, as you're trying to 186 00:08:28,400 --> 00:08:30,400 Speaker 1: make that progress. And so we're gonna call out some 187 00:08:30,440 --> 00:08:32,760 Speaker 1: of the biggest culprits today on the show, and we're 188 00:08:32,800 --> 00:08:35,560 Speaker 1: gonna share how it is that you should be thinking 189 00:08:35,559 --> 00:08:37,520 Speaker 1: about your money. Yeah, and I like how you said 190 00:08:37,520 --> 00:08:40,320 Speaker 1: most people are well intentioned. I think there's there's a 191 00:08:40,360 --> 00:08:42,640 Speaker 1: couple of things that you're One, people are out there 192 00:08:42,640 --> 00:08:46,000 Speaker 1: are trying to simplify advice for the masses, trying to 193 00:08:46,000 --> 00:08:48,360 Speaker 1: give them good information in a bite sized way, but 194 00:08:48,440 --> 00:08:50,760 Speaker 1: oftentimes then you're missing a lot of kind of the 195 00:08:50,800 --> 00:08:53,360 Speaker 1: important truth that surrounds it. But also, there are a 196 00:08:53,400 --> 00:08:56,280 Speaker 1: lot of people who just don't know enough about personal finance. 197 00:08:56,280 --> 00:09:00,000 Speaker 1: And so they might be new nubie influencers on social media, 198 00:09:00,040 --> 00:09:02,360 Speaker 1: you hoping to talk about their experience and how they've 199 00:09:02,360 --> 00:09:04,760 Speaker 1: been able to change their lives, but oftentimes they're missing 200 00:09:04,800 --> 00:09:07,120 Speaker 1: some of the most important ingredients to be able to 201 00:09:07,120 --> 00:09:09,880 Speaker 1: help people do it in their own lives, right, Yeah, Yeah, 202 00:09:09,880 --> 00:09:13,600 Speaker 1: they might have a good story, just good heart yeah, exactly, 203 00:09:13,600 --> 00:09:15,560 Speaker 1: and kind of where they are personally. Maybe there's some 204 00:09:16,000 --> 00:09:18,480 Speaker 1: wisdom that you can clean from their experiences, but they 205 00:09:18,520 --> 00:09:20,600 Speaker 1: may not be fully informed and you may not be 206 00:09:20,640 --> 00:09:23,680 Speaker 1: able to directly apply it to your own situation because 207 00:09:23,720 --> 00:09:26,960 Speaker 1: their situation could be quite a bit different. And so, yeah, 208 00:09:27,000 --> 00:09:29,120 Speaker 1: we would say some of the basic advice still holds. 209 00:09:29,120 --> 00:09:31,000 Speaker 1: Like we're not trying to throw out the baby with 210 00:09:31,040 --> 00:09:33,880 Speaker 1: the bathwater in this episode. Some of the most basic 211 00:09:34,160 --> 00:09:37,160 Speaker 1: advice out there, for instance, like the number one rule 212 00:09:37,160 --> 00:09:39,320 Speaker 1: of personal finance, which is spending less than you make. 213 00:09:39,520 --> 00:09:42,200 Speaker 1: That holds water, right, that makes sense to us. But 214 00:09:42,360 --> 00:09:45,440 Speaker 1: even even in something like that, even in such a 215 00:09:45,520 --> 00:09:47,679 Speaker 1: basic piece of advice that's like the number one rule 216 00:09:47,679 --> 00:09:50,839 Speaker 1: of personal finance, that can even get warps into folks, 217 00:09:51,000 --> 00:09:53,599 Speaker 1: leading you to think that you shouldn't spend money, a 218 00:09:53,679 --> 00:09:58,000 Speaker 1: push towards maximum frugality, which we would say can become unhealthy. 219 00:09:58,000 --> 00:10:01,000 Speaker 1: Plus even that little basic piece advice, which is helpful, 220 00:10:01,280 --> 00:10:03,800 Speaker 1: it just doesn't tell you how much less you should 221 00:10:03,800 --> 00:10:07,280 Speaker 1: be spending, like how you should be changing your habits 222 00:10:07,360 --> 00:10:09,800 Speaker 1: and you know, should that be a constant amount over 223 00:10:09,840 --> 00:10:12,480 Speaker 1: the decades. Well, that pithy a little bit of advice 224 00:10:12,720 --> 00:10:15,240 Speaker 1: doesn't really tell you. So we would say even the 225 00:10:15,280 --> 00:10:17,680 Speaker 1: most basic advice that has truth to it needs some 226 00:10:17,760 --> 00:10:20,960 Speaker 1: context and needs some flushing out, in particular depending on 227 00:10:21,040 --> 00:10:24,520 Speaker 1: your personal situation. And naturally that context that flushing out 228 00:10:24,559 --> 00:10:29,200 Speaker 1: requires time and attention, which is unfortunately in short supply. Right, So, 229 00:10:29,440 --> 00:10:31,840 Speaker 1: most folks in our modern ages are content with these 230 00:10:32,040 --> 00:10:34,360 Speaker 1: five seconds sound bites and they're just not willing to 231 00:10:34,360 --> 00:10:37,920 Speaker 1: read pass the headlines. But that additional time is what 232 00:10:38,000 --> 00:10:40,800 Speaker 1: it often takes in order to understand the nuance of 233 00:10:40,840 --> 00:10:44,120 Speaker 1: any conversation or debate. And it's it's it's true everywhere, 234 00:10:44,120 --> 00:10:47,760 Speaker 1: but it's definitely true of these personal finance conversations as well. 235 00:10:48,360 --> 00:10:49,960 Speaker 1: All right, Yeah, so let's talk about some of the 236 00:10:50,040 --> 00:10:53,280 Speaker 1: some of the crappy advice in the realm of spending first, 237 00:10:53,679 --> 00:10:56,520 Speaker 1: and one of the popular lines of advice is skip 238 00:10:56,520 --> 00:11:01,440 Speaker 1: the latte, skip the avocado toast. This is I mean, honestly, 239 00:11:01,440 --> 00:11:03,200 Speaker 1: it's barren on one of the pieces of advice I 240 00:11:03,240 --> 00:11:06,560 Speaker 1: hate the most. Uh. And it's not that spending too 241 00:11:06,600 --> 00:11:08,640 Speaker 1: much money at your local coffee shop like that, it's 242 00:11:08,679 --> 00:11:11,600 Speaker 1: not possible, it definitely is um And it's not that 243 00:11:11,640 --> 00:11:14,160 Speaker 1: the small expenses that you make that they don't add 244 00:11:14,240 --> 00:11:16,959 Speaker 1: up to a meaningful amount of money because they do, 245 00:11:17,040 --> 00:11:19,360 Speaker 1: and you know you might be wasting money without even 246 00:11:19,400 --> 00:11:21,760 Speaker 1: thinking enough about it. Now, this happens to a lot 247 00:11:21,760 --> 00:11:24,160 Speaker 1: of folks. It's just I don't understand why coffee shops 248 00:11:24,160 --> 00:11:27,320 Speaker 1: specifically bear the brunt of this. Right. Coffee shop honors 249 00:11:27,840 --> 00:11:30,560 Speaker 1: so many other places you could attack exactly some many 250 00:11:30,600 --> 00:11:33,079 Speaker 1: other places where where folks are we're wasting money, like 251 00:11:33,120 --> 00:11:35,719 Speaker 1: a ridiculous car payment for a fancy car that you 252 00:11:35,760 --> 00:11:37,680 Speaker 1: don't really need when you could have just paid cash 253 00:11:37,760 --> 00:11:41,640 Speaker 1: for something more affordable, or like having your meals delivered. 254 00:11:42,200 --> 00:11:45,120 Speaker 1: Or speaking of food, think about the countless containers of 255 00:11:45,200 --> 00:11:48,280 Speaker 1: leftovers that you've tossed or Joel the countless your favorite 256 00:11:48,280 --> 00:11:50,560 Speaker 1: thing to attack by the people they don't eat their leftovers? 257 00:11:50,760 --> 00:11:52,240 Speaker 1: What is wrong with you? You You don't like those people. 258 00:11:52,760 --> 00:11:55,079 Speaker 1: It's a terrible happen It's just an inefficient way of 259 00:11:55,120 --> 00:11:58,679 Speaker 1: going about making your meals at home. And yet we're 260 00:11:58,760 --> 00:12:01,120 Speaker 1: kind of digressing here. We're talking about the Latta factor. 261 00:12:01,360 --> 00:12:03,560 Speaker 1: But folks, and in particular media, I think it's just 262 00:12:03,600 --> 00:12:06,640 Speaker 1: picked one of the loveliest spots that's often the like 263 00:12:06,679 --> 00:12:09,160 Speaker 1: a cornerstone of community hangs. It just seems like the 264 00:12:09,160 --> 00:12:10,839 Speaker 1: coffee shop has it's kind of gotten a bad rap. 265 00:12:10,920 --> 00:12:13,800 Speaker 1: Maybe this is on on online joke because like this morning, 266 00:12:13,840 --> 00:12:15,480 Speaker 1: you and I we when got a coffee before our 267 00:12:15,520 --> 00:12:17,800 Speaker 1: our morning meeting, we had a new neighbor who was awesome, 268 00:12:17,880 --> 00:12:20,640 Speaker 1: We saw old neighbors who we love, and it's it's 269 00:12:20,640 --> 00:12:22,920 Speaker 1: something that I don't know, maybe we're buy us a 270 00:12:22,960 --> 00:12:25,640 Speaker 1: little bit because it's something that we are realizing. It's 271 00:12:25,679 --> 00:12:28,200 Speaker 1: it's important in our sort of It's not like something 272 00:12:28,240 --> 00:12:30,559 Speaker 1: we do every day, but when we do partake in 273 00:12:30,600 --> 00:12:32,880 Speaker 1: it typically, Yeah, it's it provides a lot of meeting 274 00:12:32,880 --> 00:12:35,200 Speaker 1: and value to us. Four dollar flat white provides a 275 00:12:35,240 --> 00:12:38,240 Speaker 1: lot more than just like a delicious cup of coffee exactly. 276 00:12:38,360 --> 00:12:40,959 Speaker 1: And that's, by the way, my beverage of choice typically 277 00:12:40,960 --> 00:12:42,560 Speaker 1: if I'm going out to a coffee shop, flat white 278 00:12:42,640 --> 00:12:46,360 Speaker 1: tortato all the way. Tortatoes are great too, slightly less milk. 279 00:12:46,520 --> 00:12:49,080 Speaker 1: Yeah that's true. Uh well so yeah, so we would 280 00:12:49,120 --> 00:12:50,960 Speaker 1: say that that is one of those things where that 281 00:12:51,040 --> 00:12:52,760 Speaker 1: is up to the individual. And I think you're right, 282 00:12:52,760 --> 00:12:56,000 Speaker 1: Math there are other places, in particular larger line items 283 00:12:56,040 --> 00:12:57,960 Speaker 1: in our budget that are much easier to cut back, 284 00:12:58,280 --> 00:13:00,320 Speaker 1: especially if the coffee shop is a place where you 285 00:13:00,360 --> 00:13:02,960 Speaker 1: do derive a lot of joy and community from, or 286 00:13:02,960 --> 00:13:05,199 Speaker 1: you enjoy even you know, when you're working from home 287 00:13:05,200 --> 00:13:07,120 Speaker 1: going to work there, and really when you think about it, 288 00:13:07,200 --> 00:13:09,480 Speaker 1: in the grand scheme of things, it's a minimal cost. 289 00:13:09,760 --> 00:13:12,080 Speaker 1: For some reason, we've singled out coffee shops. It's wrong, 290 00:13:12,160 --> 00:13:15,600 Speaker 1: it needs to stop. But speaking of those just eight right, 291 00:13:15,840 --> 00:13:18,360 Speaker 1: that's right, those bigger ticket items, though, you have bigger 292 00:13:18,360 --> 00:13:20,880 Speaker 1: fish to fry. So when you spend an inordinate amount 293 00:13:21,120 --> 00:13:23,360 Speaker 1: of your time thinking about these tiny little ways that 294 00:13:23,520 --> 00:13:26,199 Speaker 1: you could potentially eke out a few more bucks, I'm 295 00:13:26,240 --> 00:13:28,240 Speaker 1: not saying I don't think either of us would say 296 00:13:28,240 --> 00:13:31,480 Speaker 1: that that that's time poorly spent. But we would say 297 00:13:31,520 --> 00:13:34,800 Speaker 1: you might be hogging valuable mental bandwidth that could be 298 00:13:34,880 --> 00:13:37,400 Speaker 1: spent all on those bigger ticket items where you could 299 00:13:37,400 --> 00:13:40,000 Speaker 1: be getting a bigger r o I by looking elsewhere. 300 00:13:40,000 --> 00:13:43,760 Speaker 1: And so instead of constantly worrying about spending money on coffee, 301 00:13:44,120 --> 00:13:46,880 Speaker 1: get a more affordable car insurance provider boom that just 302 00:13:46,920 --> 00:13:49,360 Speaker 1: paid for your coffee for the entire year. I love 303 00:13:49,559 --> 00:13:52,720 Speaker 1: doing those bigger things, a one time task that allows 304 00:13:52,720 --> 00:13:54,640 Speaker 1: you then to use your money in a way that's 305 00:13:54,880 --> 00:13:57,560 Speaker 1: more effectively going to move the needle value wise in 306 00:13:57,600 --> 00:13:59,920 Speaker 1: your life. And this is of course a fine balance 307 00:14:00,000 --> 00:14:02,560 Speaker 1: to strike because you and I were all about frugal living, Like, 308 00:14:02,559 --> 00:14:04,320 Speaker 1: we don't want people necessarily going out there and get 309 00:14:04,320 --> 00:14:06,280 Speaker 1: that flat wine every day. That's not what we're that's 310 00:14:06,280 --> 00:14:09,040 Speaker 1: not what we're saying. But if you're counting pennies of 311 00:14:09,080 --> 00:14:11,760 Speaker 1: every single purchase, not only are you like sucking the 312 00:14:11,840 --> 00:14:14,080 Speaker 1: fund the joy out of some of those simple pleasures 313 00:14:14,120 --> 00:14:16,640 Speaker 1: of life, but it's it could also just be a 314 00:14:16,679 --> 00:14:19,280 Speaker 1: highly inefficient use of your time. You're you're majoring on 315 00:14:19,360 --> 00:14:22,120 Speaker 1: the miners, and we would say that there's a whole 316 00:14:22,160 --> 00:14:24,680 Speaker 1: lot more financial ground you can cover focusing more on 317 00:14:24,720 --> 00:14:26,560 Speaker 1: those big ticket items. That's right. I gotta keep you 318 00:14:26,640 --> 00:14:28,520 Speaker 1: in check in case I'll start hearing Joel's saying, all right, 319 00:14:28,960 --> 00:14:31,880 Speaker 1: kind of feels like a two flat white kind of day. 320 00:14:32,040 --> 00:14:34,200 Speaker 1: Oh man, I don't think I've ever done two coffees 321 00:14:34,200 --> 00:14:36,920 Speaker 1: in one day a week. Maybe we can justify that 322 00:14:36,960 --> 00:14:40,040 Speaker 1: on occasion. Um, all right, Well, not only should you 323 00:14:40,080 --> 00:14:42,200 Speaker 1: be thinking about like some of these big ways to 324 00:14:42,280 --> 00:14:44,720 Speaker 1: save money, but also the bigger ways that you can 325 00:14:44,920 --> 00:14:47,520 Speaker 1: make more money as well, right, because I think you 326 00:14:47,520 --> 00:14:51,040 Speaker 1: can easily adopt that same like Latte factor mindset and 327 00:14:51,080 --> 00:14:53,360 Speaker 1: then just apply it to how it is that you 328 00:14:53,400 --> 00:14:55,960 Speaker 1: make money. And so, like specifically, what I'm thinking of 329 00:14:56,000 --> 00:14:57,280 Speaker 1: here is, like, we see a lot of folks who 330 00:14:57,280 --> 00:15:01,280 Speaker 1: are spending a tremendous amount of time their side hustle use, 331 00:15:01,560 --> 00:15:04,960 Speaker 1: in particularly using different apps like swag Bucks, Uber, Instant 332 00:15:05,000 --> 00:15:06,840 Speaker 1: Card or a few that come to mind. And again 333 00:15:06,840 --> 00:15:09,080 Speaker 1: we're you know, we're all about folks using the spare 334 00:15:09,080 --> 00:15:11,960 Speaker 1: time that they've got to to get after whatever financial 335 00:15:11,960 --> 00:15:14,520 Speaker 1: goal that they've set for themselves. But this is an instance, 336 00:15:14,680 --> 00:15:16,800 Speaker 1: man like where it would be really helpful to pause 337 00:15:16,840 --> 00:15:19,520 Speaker 1: for a moment and imagine where this side hustle is 338 00:15:19,560 --> 00:15:21,960 Speaker 1: going to take you. But the allure to immediately make 339 00:15:22,040 --> 00:15:25,960 Speaker 1: some some instant cash is attractive, not to mention, you know, 340 00:15:26,000 --> 00:15:29,000 Speaker 1: like all the apps, they are designed to keep folks 341 00:15:29,080 --> 00:15:31,240 Speaker 1: coming back, to keep you coming back from more due 342 00:15:31,320 --> 00:15:33,840 Speaker 1: to how does that their design, how how they're they've 343 00:15:34,000 --> 00:15:37,480 Speaker 1: essentially gamified the tasks or the jobs that literally pop 344 00:15:37,560 --> 00:15:39,960 Speaker 1: up from within the app. They don't want you to 345 00:15:39,960 --> 00:15:42,040 Speaker 1: slow down and think about the big picture. They just 346 00:15:42,080 --> 00:15:44,400 Speaker 1: want you to keep working, so don't lose sight of 347 00:15:44,440 --> 00:15:47,280 Speaker 1: the force for the trees. Simultaneously, don't let the desire 348 00:15:47,320 --> 00:15:49,920 Speaker 1: to hustle and to make a small amount of money 349 00:15:49,960 --> 00:15:54,080 Speaker 1: today keep you from making a large amount of money tomorrow. 350 00:15:54,560 --> 00:15:57,120 Speaker 1: This is when, like I I even hate using this phrase, 351 00:15:57,200 --> 00:15:59,960 Speaker 1: but oftentimes folks who kind of fall into this pattern 352 00:16:00,160 --> 00:16:02,640 Speaker 1: fall into like the scarcity mindset. And I don't like 353 00:16:02,640 --> 00:16:04,080 Speaker 1: say that because it makes it seem like that you 354 00:16:04,080 --> 00:16:06,400 Speaker 1: can just manifest stuff and think it and bring it 355 00:16:06,440 --> 00:16:08,520 Speaker 1: into existence. That you can't just do that. It takes 356 00:16:08,520 --> 00:16:10,440 Speaker 1: a lot of hard work. But sometimes we do get 357 00:16:10,440 --> 00:16:13,640 Speaker 1: locked into that scarcity mindset as opposed to thinking about 358 00:16:13,640 --> 00:16:16,240 Speaker 1: like an abundance mindset. Right, Like if you are so focused, 359 00:16:16,520 --> 00:16:19,480 Speaker 1: in particular going back to the spending on just watching 360 00:16:19,560 --> 00:16:22,200 Speaker 1: every single little penny and instead what if you took 361 00:16:22,240 --> 00:16:24,480 Speaker 1: that same amount of energy and poured it into ways 362 00:16:24,520 --> 00:16:26,960 Speaker 1: that you can not only make money via some of 363 00:16:26,960 --> 00:16:29,080 Speaker 1: these different apps that feel immediate, but like, let's talk 364 00:16:29,120 --> 00:16:31,040 Speaker 1: about some of the bigger pictures, some of the larger, 365 00:16:31,760 --> 00:16:33,920 Speaker 1: big thinking kind of ways that will allow you to 366 00:16:34,080 --> 00:16:37,320 Speaker 1: advance your career and make some serious positive impacts on 367 00:16:37,360 --> 00:16:39,320 Speaker 1: your income Yeah. It almost makes me think of when 368 00:16:39,320 --> 00:16:41,320 Speaker 1: you go to a casino and how you have no 369 00:16:41,680 --> 00:16:43,160 Speaker 1: idea what time of day it is, and they're probably 370 00:16:43,200 --> 00:16:44,920 Speaker 1: in oxygen, and so you're blinders are on. You don't 371 00:16:44,920 --> 00:16:46,360 Speaker 1: know how long you've been there. You don't know how 372 00:16:46,440 --> 00:16:48,680 Speaker 1: much money you've lost, like because you're getting free drinks 373 00:16:48,720 --> 00:16:50,680 Speaker 1: and so it's but you've got a free buffet and 374 00:16:50,720 --> 00:16:52,720 Speaker 1: so maybe that makes up for all the time. And 375 00:16:52,720 --> 00:16:54,880 Speaker 1: that's how this tells me that I should not go 376 00:16:54,920 --> 00:16:58,080 Speaker 1: to Vegas because I hear that and I have fallen 377 00:16:58,080 --> 00:17:01,680 Speaker 1: into similar traps at other points in my life. Yes, 378 00:17:01,720 --> 00:17:04,679 Speaker 1: in particular, I'm thinking about playing video games in college 379 00:17:05,160 --> 00:17:07,040 Speaker 1: and I'm just like, wait, what day is it? Itst 380 00:17:07,040 --> 00:17:08,879 Speaker 1: like everything is conspiring against you to get you to 381 00:17:08,920 --> 00:17:10,399 Speaker 1: lose your money. And I think with some of these 382 00:17:10,400 --> 00:17:13,199 Speaker 1: side hustles, it's not that they can't be effective in 383 00:17:13,240 --> 00:17:15,439 Speaker 1: the short term, but we've talked about kind of the 384 00:17:15,480 --> 00:17:18,760 Speaker 1: nefarious elements that side hustles come with, and so people 385 00:17:18,800 --> 00:17:21,560 Speaker 1: have to be really careful before they dedicate too much 386 00:17:21,600 --> 00:17:23,960 Speaker 1: time to make money on the side. There are often 387 00:17:24,040 --> 00:17:26,440 Speaker 1: more effective ways to grow your to grow your income 388 00:17:26,480 --> 00:17:28,359 Speaker 1: over the long term that doesn't mean to you know, 389 00:17:28,359 --> 00:17:29,960 Speaker 1: the great thing about side houses is you can like 390 00:17:30,040 --> 00:17:32,359 Speaker 1: literally hit a button and start making money today. And 391 00:17:32,400 --> 00:17:34,480 Speaker 1: that's a great short term tactic, but it's not going 392 00:17:34,520 --> 00:17:36,560 Speaker 1: to be best when it comes to long term earnings, 393 00:17:36,560 --> 00:17:38,800 Speaker 1: which is which we how where we want your eyes 394 00:17:39,320 --> 00:17:41,960 Speaker 1: a little more focused on. That's Rachel. And we've got 395 00:17:42,000 --> 00:17:44,680 Speaker 1: several other pieces of popular financial advice that we're gonna 396 00:17:44,680 --> 00:17:47,680 Speaker 1: get to that's just not right, including we're gonna talk 397 00:17:47,720 --> 00:17:50,359 Speaker 1: a little bit more about earning money as well as 398 00:17:50,720 --> 00:17:53,359 Speaker 1: popular advice to avoid when it comes to how it 399 00:17:53,440 --> 00:17:55,520 Speaker 1: is that we save and invest our money. Will get 400 00:17:55,520 --> 00:18:07,639 Speaker 1: to all of that right after this, Matt. Let's keep going. 401 00:18:07,720 --> 00:18:09,639 Speaker 1: Let's talk about personal finance advice and you and I 402 00:18:10,000 --> 00:18:12,399 Speaker 1: we're just not fans of and these are kind of 403 00:18:12,400 --> 00:18:14,760 Speaker 1: things that people start to get accustomed to. I think 404 00:18:14,840 --> 00:18:17,359 Speaker 1: we've gotten a lot more accustomed to side hustles, like 405 00:18:17,400 --> 00:18:19,879 Speaker 1: we just talked about before the break in recent years, 406 00:18:20,040 --> 00:18:22,800 Speaker 1: and as in that being a way to maybe make 407 00:18:22,880 --> 00:18:25,320 Speaker 1: ends meet or to grow your income when there are 408 00:18:25,359 --> 00:18:28,000 Speaker 1: better ways over the long term to grow your income. 409 00:18:28,280 --> 00:18:29,720 Speaker 1: But there's the flip side of that coin, so let's 410 00:18:29,720 --> 00:18:31,960 Speaker 1: talk about that too. There's the there's the reality that 411 00:18:32,040 --> 00:18:34,640 Speaker 1: some people they have a relationship to their job where 412 00:18:34,680 --> 00:18:37,960 Speaker 1: it's more like golden handcuffs, And so that's something we 413 00:18:38,000 --> 00:18:40,760 Speaker 1: want people to change their thinking about as well, because 414 00:18:41,280 --> 00:18:42,760 Speaker 1: on the other end of the spectrum, right, there are 415 00:18:42,760 --> 00:18:45,960 Speaker 1: some people who have a great job that pays incredibly well, 416 00:18:46,320 --> 00:18:48,400 Speaker 1: and in fact, it might pay a little a little 417 00:18:48,400 --> 00:18:51,919 Speaker 1: too handsomely, and you feel stuck, right, even if you 418 00:18:51,960 --> 00:18:53,919 Speaker 1: don't really like your job, even if you actually kind 419 00:18:53,920 --> 00:18:54,879 Speaker 1: of hate it and you don't want to go to 420 00:18:54,920 --> 00:18:56,960 Speaker 1: work anymore, you don't like your coworkers, you don't like 421 00:18:57,000 --> 00:18:59,040 Speaker 1: what you're doing, you're working too much. We know folks 422 00:18:59,119 --> 00:19:01,879 Speaker 1: who have made these confessions to us, and they're like, 423 00:19:01,960 --> 00:19:04,399 Speaker 1: my job sucks, but I'm making so much money they 424 00:19:04,440 --> 00:19:07,359 Speaker 1: can bank. How can I leave? I can't. And so 425 00:19:07,400 --> 00:19:09,399 Speaker 1: it's this case of golden handcuffs, where the salary, the 426 00:19:09,400 --> 00:19:12,479 Speaker 1: benefits I've gotten so robust that you don't even let 427 00:19:12,520 --> 00:19:15,520 Speaker 1: yourself consider an alternative. And of course, Matt, neither you 428 00:19:15,600 --> 00:19:17,600 Speaker 1: or I when people are making this admission, have told us, 429 00:19:18,080 --> 00:19:20,640 Speaker 1: you know what, my life doesn't really matter. But kind 430 00:19:20,640 --> 00:19:22,600 Speaker 1: of in some ways, what they're saying, right, that's what 431 00:19:22,640 --> 00:19:25,440 Speaker 1: they're saying through their actions, not necessarily because it's something 432 00:19:25,520 --> 00:19:28,120 Speaker 1: that they've flat outstated that, like I no longer care 433 00:19:28,200 --> 00:19:31,600 Speaker 1: about how I spend my hours. Yes, but they are 434 00:19:31,680 --> 00:19:33,320 Speaker 1: in essence saying that they're saying, it's all about the 435 00:19:33,359 --> 00:19:36,200 Speaker 1: Benjamin's The dollars matter more than how my time has spent, 436 00:19:36,240 --> 00:19:39,320 Speaker 1: than me actually finding joy taking pride in what I 437 00:19:39,359 --> 00:19:41,399 Speaker 1: do every day. I'm just gonna grind it out another 438 00:19:41,400 --> 00:19:42,879 Speaker 1: five or ten years, Like that's the kind of the 439 00:19:42,880 --> 00:19:45,160 Speaker 1: mentality that a lot of people have to keep reaping 440 00:19:45,200 --> 00:19:47,920 Speaker 1: the rewards of this awesome paycheck. But this, of course, 441 00:19:47,960 --> 00:19:51,680 Speaker 1: it's it's terrible financial advice that ultimately its terrible life advice. 442 00:19:51,720 --> 00:19:54,359 Speaker 1: It you know, we don't know how long we are guaranteed. 443 00:19:54,640 --> 00:19:58,119 Speaker 1: And the every single year that you spend at a 444 00:19:58,240 --> 00:20:00,680 Speaker 1: job that you just can't stop like that you hate, 445 00:20:00,880 --> 00:20:02,679 Speaker 1: those are years you're not going to be able to 446 00:20:02,680 --> 00:20:05,560 Speaker 1: get back right. Yes, I mean so much of life 447 00:20:05,600 --> 00:20:09,000 Speaker 1: statisfaction specifically, it comes from the work you do and 448 00:20:09,080 --> 00:20:11,480 Speaker 1: the ability that you have to to help other people. 449 00:20:11,840 --> 00:20:14,359 Speaker 1: Victor Frankel, We've mentioned him plenty of times here on 450 00:20:14,359 --> 00:20:17,520 Speaker 1: the show. He's an Austrian psychiatrist. He wrote one of 451 00:20:17,560 --> 00:20:20,639 Speaker 1: the most profound books uh Man's Search for Meeting after 452 00:20:20,760 --> 00:20:24,840 Speaker 1: surviving the Holocaust. But he found that personal relationships, specifically, 453 00:20:25,119 --> 00:20:28,320 Speaker 1: they are the most important component of funding happiness. And 454 00:20:28,320 --> 00:20:31,240 Speaker 1: then right after that, it was engaging in productive work 455 00:20:31,320 --> 00:20:33,480 Speaker 1: that is the next thing that brings us meaning. So 456 00:20:33,520 --> 00:20:35,439 Speaker 1: you want to know what he doesn't discuss making a 457 00:20:35,440 --> 00:20:37,960 Speaker 1: ton of money. And so with that in mind, like, 458 00:20:38,000 --> 00:20:40,600 Speaker 1: what better way to spend half of our of our 459 00:20:40,640 --> 00:20:44,480 Speaker 1: waking hours than by engaging in rewarding and productive work 460 00:20:44,560 --> 00:20:47,040 Speaker 1: that connects us to our fellow man, to our fellow 461 00:20:47,119 --> 00:20:49,840 Speaker 1: human beings. And this is one of those bits of 462 00:20:49,880 --> 00:20:52,040 Speaker 1: advice that I say that I know right like, we 463 00:20:52,119 --> 00:20:55,320 Speaker 1: all have a head knowledge of it, but do we 464 00:20:55,520 --> 00:20:58,119 Speaker 1: grasp it as as heart knowledge? You know? This is 465 00:20:58,400 --> 00:21:00,439 Speaker 1: this is a good one to revisit because we're tempted to, 466 00:21:00,680 --> 00:21:04,280 Speaker 1: you know, simply understand this concept without actually living it out. 467 00:21:04,320 --> 00:21:07,359 Speaker 1: I think we're constantly tempted to live in a way 468 00:21:07,440 --> 00:21:10,160 Speaker 1: that is at odds with this, because that's what success 469 00:21:10,200 --> 00:21:12,000 Speaker 1: looks like, that's what the world tells us to do. 470 00:21:12,040 --> 00:21:14,000 Speaker 1: That's even you know, what our parents tell us to do. 471 00:21:14,000 --> 00:21:15,600 Speaker 1: They're like, oh, but that's gonna put you on this 472 00:21:15,640 --> 00:21:19,840 Speaker 1: trajectory by all sort of outward measures of success, you're 473 00:21:19,880 --> 00:21:22,320 Speaker 1: likely going to decide that what you should do is, 474 00:21:22,720 --> 00:21:24,679 Speaker 1: like you said, like continuing to grind it out and 475 00:21:24,680 --> 00:21:27,280 Speaker 1: not just for like ten years, but like twenty thirty years. 476 00:21:27,280 --> 00:21:29,679 Speaker 1: Sometimes doing work that you don't love as opposed to 477 00:21:29,800 --> 00:21:32,919 Speaker 1: thinking about how it is you're actually spending that time. 478 00:21:33,240 --> 00:21:35,480 Speaker 1: That's really important. Man. I feel like we are the 479 00:21:35,480 --> 00:21:38,120 Speaker 1: money show that is constantly telling people to think less 480 00:21:38,119 --> 00:21:40,640 Speaker 1: about money and not focus on the money. That's totally true, 481 00:21:40,760 --> 00:21:42,680 Speaker 1: and and so we try to cover the nuts and bolts, 482 00:21:42,720 --> 00:21:45,960 Speaker 1: and we want to help people get better with your money, 483 00:21:46,240 --> 00:21:49,919 Speaker 1: invest more wisely, and save a bigger chunk of what 484 00:21:49,920 --> 00:21:51,640 Speaker 1: they bring home. But we also want people to think 485 00:21:51,640 --> 00:21:53,680 Speaker 1: about money as a tool and to not think about 486 00:21:53,680 --> 00:21:56,800 Speaker 1: money as the ends. It is a means two better 487 00:21:56,880 --> 00:21:58,520 Speaker 1: ends for your life. It's the tool that we focus 488 00:21:58,560 --> 00:22:00,159 Speaker 1: on the most here on the show. But ultimately, like 489 00:22:00,200 --> 00:22:02,600 Speaker 1: what we're all about is just folks living a life 490 00:22:02,640 --> 00:22:05,720 Speaker 1: that they feel it leads to happiness essentially, just a 491 00:22:05,720 --> 00:22:07,760 Speaker 1: fulfilling life for sure. And the reality is if if 492 00:22:07,800 --> 00:22:09,920 Speaker 1: money is the end goal, you're going to miss out 493 00:22:09,960 --> 00:22:11,399 Speaker 1: on some of the things that matter the most, like 494 00:22:11,440 --> 00:22:14,359 Speaker 1: that is a byproduct of too much focus on money 495 00:22:14,400 --> 00:22:16,200 Speaker 1: is missing out on a lot of things that matter. 496 00:22:16,760 --> 00:22:19,000 Speaker 1: Let's talk about some more something else in the in 497 00:22:19,040 --> 00:22:22,600 Speaker 1: the vein of career and earnings oriented advice that people 498 00:22:22,600 --> 00:22:24,159 Speaker 1: here on the rag matt and that is just that 499 00:22:24,280 --> 00:22:27,440 Speaker 1: college is a no brainer, right and and so not 500 00:22:27,600 --> 00:22:30,920 Speaker 1: many of our listeners are college age, you know, a 501 00:22:31,000 --> 00:22:33,840 Speaker 1: small handful, but some of our listeners are getting to 502 00:22:33,880 --> 00:22:36,679 Speaker 1: the point where they've got kids who are considering going 503 00:22:36,720 --> 00:22:39,600 Speaker 1: to college. They've got those those teenagers now at home. 504 00:22:39,640 --> 00:22:41,960 Speaker 1: And so every time we talk about this, I feel 505 00:22:41,960 --> 00:22:45,840 Speaker 1: like we get unhappy listener emails because they say, listen, 506 00:22:46,040 --> 00:22:48,480 Speaker 1: why are you talking crap about college? Uh? And we 507 00:22:48,560 --> 00:22:50,720 Speaker 1: especially got him after episode five forty eight where we 508 00:22:50,800 --> 00:22:53,359 Speaker 1: kind of debunked the fact that college makes sense for 509 00:22:53,400 --> 00:22:58,399 Speaker 1: that was it's college for dummies. And we definitely, like, 510 00:22:58,800 --> 00:23:00,960 Speaker 1: not everyone is happy that we don't think that college 511 00:23:01,000 --> 00:23:03,920 Speaker 1: is a slambug decision, but we just we just don't 512 00:23:03,960 --> 00:23:06,600 Speaker 1: think that the vast majority of high school seniors should 513 00:23:06,640 --> 00:23:10,040 Speaker 1: be mortgaging their futures by taking on astronomical amounts of debt, 514 00:23:10,119 --> 00:23:13,880 Speaker 1: which which is in many cases leading to I don't 515 00:23:13,880 --> 00:23:15,960 Speaker 1: know the most expensive piece of wal art to ll ever, 516 00:23:16,000 --> 00:23:18,480 Speaker 1: hang right that college degree that goes behind their desk. 517 00:23:18,840 --> 00:23:21,680 Speaker 1: That do some couple, do you even know where your 518 00:23:21,680 --> 00:23:23,840 Speaker 1: college degree, like your actual diploma is. No, I would 519 00:23:23,960 --> 00:23:26,520 Speaker 1: like it. And I remember I would have had to 520 00:23:26,680 --> 00:23:28,520 Speaker 1: walk to get my diploma, but my mom was out 521 00:23:28,520 --> 00:23:30,000 Speaker 1: of town, so I didn't even have to walk. No, 522 00:23:30,040 --> 00:23:31,679 Speaker 1: I didn't even walk. I didn't do it. So I 523 00:23:31,760 --> 00:23:33,240 Speaker 1: just didn't. I didn't care, just showed up in a 524 00:23:33,280 --> 00:23:36,400 Speaker 1: tube a few weeks later. That's exactly right. Well, so 525 00:23:36,640 --> 00:23:38,320 Speaker 1: I guess you know. You can ask the question, just 526 00:23:38,440 --> 00:23:40,960 Speaker 1: college pay off for lots of folks still? And we 527 00:23:40,960 --> 00:23:43,199 Speaker 1: would say yes, of course, like it does for a 528 00:23:43,200 --> 00:23:46,080 Speaker 1: lot of people. And the more you can curb the 529 00:23:46,119 --> 00:23:47,959 Speaker 1: costs that you incur and the time it takes to 530 00:23:47,960 --> 00:23:49,880 Speaker 1: get that degree. What I mean is not taking six 531 00:23:49,960 --> 00:23:53,000 Speaker 1: or seven years to get it, plus making sure that 532 00:23:53,040 --> 00:23:55,480 Speaker 1: the one you get is more highly valued in the marketplace, 533 00:23:55,920 --> 00:23:58,240 Speaker 1: then the more likely it is to be a smart choice. 534 00:23:58,240 --> 00:24:01,040 Speaker 1: Like for instance, that advanced history degree. It's gonna pay 535 00:24:01,040 --> 00:24:03,359 Speaker 1: off for a much smaller section of people, and a 536 00:24:03,400 --> 00:24:05,040 Speaker 1: lot of folks who get that degree are going to 537 00:24:05,160 --> 00:24:08,080 Speaker 1: find that the money was poorly spent, even if it 538 00:24:08,119 --> 00:24:11,800 Speaker 1: was edifying. But the thing is, college truly was a 539 00:24:11,880 --> 00:24:14,840 Speaker 1: no brainer thirty four years ago, but it's it's much 540 00:24:14,840 --> 00:24:17,720 Speaker 1: more of a specific value proposition that young adults have 541 00:24:17,840 --> 00:24:22,240 Speaker 1: to consider beforehand these days, before they start applying to schools, 542 00:24:22,520 --> 00:24:25,520 Speaker 1: the reality of debt that can linger for for decades, 543 00:24:25,680 --> 00:24:29,600 Speaker 1: especially if that degree isn't landing you the lucrative career 544 00:24:29,680 --> 00:24:31,719 Speaker 1: that you hoped. It's just too much of a downside 545 00:24:31,760 --> 00:24:33,800 Speaker 1: to give some sort of blanket advice that college makes 546 00:24:33,800 --> 00:24:36,120 Speaker 1: sense for most people. Yeah, and on a related note 547 00:24:36,160 --> 00:24:38,679 Speaker 1: to just how you pay for that college makes me 548 00:24:38,720 --> 00:24:43,560 Speaker 1: think of accounts, and oftentimes that's also accepted as kind 549 00:24:43,560 --> 00:24:46,240 Speaker 1: of like a slam dunk, you know, no brainer sort 550 00:24:46,240 --> 00:24:48,520 Speaker 1: of decision. It's like, well, if you care about your kids, 551 00:24:48,520 --> 00:24:50,480 Speaker 1: of course you're gonna save and invest money within the 552 00:24:50,520 --> 00:24:53,080 Speaker 1: five account. But so much of it depends on your 553 00:24:53,440 --> 00:24:57,320 Speaker 1: personal situation. Because yes, that can be a great tool 554 00:24:57,400 --> 00:24:59,200 Speaker 1: to allow you to save if your kids college, but 555 00:24:59,240 --> 00:25:01,960 Speaker 1: if you're doing it to the detriment of your ability 556 00:25:02,000 --> 00:25:03,960 Speaker 1: to say, for retirement, well then we would say that 557 00:25:04,000 --> 00:25:05,960 Speaker 1: your priorities are a little out of whack. If you're 558 00:25:05,960 --> 00:25:08,720 Speaker 1: not in money gear six or seven, like plans probably 559 00:25:08,760 --> 00:25:10,600 Speaker 1: shouldn't be on your radar exactly. That's what we say, 560 00:25:10,720 --> 00:25:12,679 Speaker 1: Like you need to have your finances button up, your 561 00:25:12,720 --> 00:25:14,960 Speaker 1: personal finances buttoned up, You need to be saving for 562 00:25:15,000 --> 00:25:18,400 Speaker 1: retirement in a big, a major way before you start 563 00:25:18,480 --> 00:25:20,640 Speaker 1: investing for your kids us. And again it comes down 564 00:25:20,640 --> 00:25:23,000 Speaker 1: to your personal situation, like maybe you're not quite there, 565 00:25:23,000 --> 00:25:25,720 Speaker 1: but this is of vital importance to you, and you've 566 00:25:25,760 --> 00:25:28,239 Speaker 1: got all the reasons why then, you know what, Like 567 00:25:28,320 --> 00:25:30,360 Speaker 1: there are pieces of device and things that we're gonna 568 00:25:30,400 --> 00:25:32,240 Speaker 1: say here in the show that may not apply to 569 00:25:33,160 --> 00:25:35,439 Speaker 1: the folks out there, but this is something that we 570 00:25:35,480 --> 00:25:37,919 Speaker 1: think folks need to be thinking about more often than not. 571 00:25:38,520 --> 00:25:42,520 Speaker 1: And similarly, let let's talk about debt, Joel, because oftentimes 572 00:25:42,680 --> 00:25:45,920 Speaker 1: folks will hear that they should be living life debt free. 573 00:25:46,320 --> 00:25:48,760 Speaker 1: And again, this is one of those uber simple pieces 574 00:25:48,840 --> 00:25:51,479 Speaker 1: of advice that sounds good on its face, but if 575 00:25:51,520 --> 00:25:56,440 Speaker 1: you take this dogmatic pronouncement to its logical conclusion, you're 576 00:25:56,440 --> 00:25:59,840 Speaker 1: going to have a much harder time reaching your educational 577 00:25:59,840 --> 00:26:02,880 Speaker 1: and your financial goals. And we know that it's hard 578 00:26:03,080 --> 00:26:06,720 Speaker 1: to convey a reasonable debt philosophy just in a two 579 00:26:06,840 --> 00:26:09,119 Speaker 1: to five seconds sound bite here, which is why we 580 00:26:09,119 --> 00:26:11,879 Speaker 1: don't try to write like we create entire episodes on 581 00:26:12,000 --> 00:26:16,040 Speaker 1: important topics like debt accumulation and and debt payoff to 582 00:26:16,119 --> 00:26:19,159 Speaker 1: try and convey just a nuanced approach towards debt that 583 00:26:19,200 --> 00:26:23,000 Speaker 1: we think is healthy in our modern society. Um, you know, 584 00:26:23,040 --> 00:26:25,199 Speaker 1: the truth is, is actually possible to use debt in 585 00:26:25,240 --> 00:26:28,359 Speaker 1: a strategic way to catapult your finances for that's a 586 00:26:28,400 --> 00:26:30,280 Speaker 1: recent episode that will link to in our show notes. 587 00:26:30,520 --> 00:26:33,240 Speaker 1: But not all forms of debt were created to screw 588 00:26:33,240 --> 00:26:34,920 Speaker 1: you over, and it's important to keep that in mind. 589 00:26:35,359 --> 00:26:37,680 Speaker 1: But on the other hand, it's also possible to rely 590 00:26:37,800 --> 00:26:42,400 Speaker 1: on debt too much, right, particularly consumer debt, in order 591 00:26:42,440 --> 00:26:45,080 Speaker 1: to fund a lifestyle that you can actually afford buying 592 00:26:45,080 --> 00:26:47,840 Speaker 1: the things that you don't need and which should be 593 00:26:48,080 --> 00:26:51,240 Speaker 1: completely avoided. Yeah, there's a massive difference between a paiday 594 00:26:51,280 --> 00:26:53,439 Speaker 1: loan and a fifteen year mortgage, right, I mean, and 595 00:26:53,480 --> 00:26:56,400 Speaker 1: I think that's where the live life debt free sort 596 00:26:56,440 --> 00:26:59,640 Speaker 1: of philosophy, the mantra gets lost, and so people automatically 597 00:26:59,640 --> 00:27:02,560 Speaker 1: assume that every single potential form of debt is now 598 00:27:02,880 --> 00:27:05,560 Speaker 1: just something that they shouldn't even considered, they shouldn't bring 599 00:27:05,600 --> 00:27:09,160 Speaker 1: into their lives when the truth is, what we're revolting 600 00:27:09,200 --> 00:27:11,920 Speaker 1: here against your matt is a lack of nuance, right 601 00:27:11,920 --> 00:27:14,600 Speaker 1: It's it's that it's that pithy phrase that starts to 602 00:27:14,680 --> 00:27:17,800 Speaker 1: lead people down the road of thinking that's only one 603 00:27:17,840 --> 00:27:20,159 Speaker 1: way of handling debt makes sense, and that is to 604 00:27:20,280 --> 00:27:23,240 Speaker 1: never ever use it. And it's a convenient way to 605 00:27:23,400 --> 00:27:25,800 Speaker 1: convey a message, but it's not always the most helpful 606 00:27:25,840 --> 00:27:27,479 Speaker 1: to folks who are trying to make progress with their 607 00:27:27,520 --> 00:27:29,919 Speaker 1: personal finances. For instance, like let's say you do have 608 00:27:29,920 --> 00:27:31,800 Speaker 1: that fifteen your mortgage at two and a half percent. 609 00:27:32,520 --> 00:27:34,800 Speaker 1: At a two and a half percent rate, well, it 610 00:27:34,840 --> 00:27:37,359 Speaker 1: almost feels like a safe haven right now. They were 611 00:27:37,359 --> 00:27:40,080 Speaker 1: experiencing a period of intense inflation. Let's say you used 612 00:27:40,119 --> 00:27:42,840 Speaker 1: all your savings to pay off that mortgage, which in 613 00:27:42,920 --> 00:27:44,440 Speaker 1: and of itself would be like, I mean, you probably 614 00:27:44,480 --> 00:27:46,639 Speaker 1: had a lot, a lot of too much money in savings. Well, 615 00:27:46,680 --> 00:27:49,560 Speaker 1: you might find yourself in an uncomfortable position if let's 616 00:27:49,560 --> 00:27:51,800 Speaker 1: say you lost your job next week. Yeah, sure you 617 00:27:51,840 --> 00:27:53,440 Speaker 1: don't have the mortgage payment, but you also don't have 618 00:27:53,520 --> 00:27:55,479 Speaker 1: many cash in the bank to back you up to 619 00:27:55,560 --> 00:27:58,840 Speaker 1: allow you to afford your other monthly bills if the 620 00:27:58,840 --> 00:28:02,080 Speaker 1: worst case scenario happened. So, how dumb is that to 621 00:28:02,160 --> 00:28:05,000 Speaker 1: an appercent mortgage? Right, debt in actuality, we would say 622 00:28:05,000 --> 00:28:06,919 Speaker 1: it's not, it's not very dumb. It's it's really not 623 00:28:06,960 --> 00:28:09,960 Speaker 1: that bad, and and you probably shouldn't pay it off, 624 00:28:10,080 --> 00:28:12,800 Speaker 1: even at the expense of prioritizing something like tax advantage 625 00:28:12,800 --> 00:28:16,200 Speaker 1: retirement savings. So while the answer it's not always easy, 626 00:28:16,240 --> 00:28:19,600 Speaker 1: it often requires context. The question is always an important 627 00:28:19,640 --> 00:28:21,919 Speaker 1: one to ask. And then so much of the answer 628 00:28:22,000 --> 00:28:24,719 Speaker 1: comes down to the terms of that debt and what 629 00:28:24,760 --> 00:28:26,640 Speaker 1: you plan to do with the money you borrow, if 630 00:28:26,680 --> 00:28:29,800 Speaker 1: you're if you're sinking that money that you're borrowing into 631 00:28:30,000 --> 00:28:33,520 Speaker 1: speculative assets. Let's say cryptocurrency are all sorts of new 632 00:28:33,560 --> 00:28:36,440 Speaker 1: fangled digital coins that you could particularly lose it all 633 00:28:36,440 --> 00:28:39,640 Speaker 1: overnight still owing debt on top of it. That's really risky. 634 00:28:39,680 --> 00:28:41,240 Speaker 1: That's a terrible way to use debt. But we would 635 00:28:41,240 --> 00:28:43,720 Speaker 1: say there are smart ways to use debt to be 636 00:28:43,720 --> 00:28:46,400 Speaker 1: able to actually accelerate your progress. Just like you said, Matt, 637 00:28:46,400 --> 00:28:50,400 Speaker 1: and I think thinking that avoiding debt completely for the 638 00:28:50,440 --> 00:28:52,719 Speaker 1: rest of your life is the best way forward. Not 639 00:28:52,800 --> 00:28:55,280 Speaker 1: thinking about the ways that you can use it intelligently 640 00:28:55,320 --> 00:28:57,239 Speaker 1: as like a stepping stone to kind of continue down 641 00:28:57,320 --> 00:29:00,160 Speaker 1: the path is shortsighted and is in all like you 642 00:29:00,200 --> 00:29:03,320 Speaker 1: gonna mean you're making less progress potentially in your career 643 00:29:03,560 --> 00:29:06,959 Speaker 1: or in your personal finances and your wealth building journey 644 00:29:07,120 --> 00:29:10,720 Speaker 1: then you'd otherwise like to see totally don't use credit cards, Joel. 645 00:29:10,760 --> 00:29:13,680 Speaker 1: That's another piece of advice that you'll often hear. I 646 00:29:13,680 --> 00:29:15,440 Speaker 1: think the same guy who likes to say that dead 647 00:29:15,560 --> 00:29:18,680 Speaker 1: is dumb and to live that debt free lifestyle also 648 00:29:18,720 --> 00:29:21,120 Speaker 1: likes to talk smack about the credit cards. But the 649 00:29:21,160 --> 00:29:25,040 Speaker 1: truth is, when used effectively, we love credit cards. When 650 00:29:25,080 --> 00:29:27,080 Speaker 1: you use them effectively, you know they're they're not just 651 00:29:27,280 --> 00:29:30,680 Speaker 1: all right, they're the best form of payment where they 652 00:29:30,720 --> 00:29:34,920 Speaker 1: offer you greater consumer protections, plus superior rewards and benefits 653 00:29:34,920 --> 00:29:37,720 Speaker 1: and other meaningful perks. And it's worth pointing out here 654 00:29:37,720 --> 00:29:40,360 Speaker 1: debit cards and credit cards they definitely look the same, 655 00:29:40,360 --> 00:29:43,200 Speaker 1: but they are not created equal. Maybe we should do 656 00:29:43,440 --> 00:29:46,600 Speaker 1: entire an entire episode talking about the differences between debit 657 00:29:46,720 --> 00:29:50,640 Speaker 1: and credit cards. Um, But we are fans of using 658 00:29:50,640 --> 00:29:54,240 Speaker 1: them responsibly and if you have a reasonable level of discipline, 659 00:29:54,400 --> 00:29:56,880 Speaker 1: then you're gonna be able to use your cards effectively 660 00:29:56,920 --> 00:29:59,360 Speaker 1: and they're gonna be a great tool for you. That's 661 00:29:59,360 --> 00:30:01,720 Speaker 1: why we're much fans of using them. But again, we 662 00:30:01,760 --> 00:30:03,280 Speaker 1: just have to make sure that we couch it within 663 00:30:03,360 --> 00:30:06,000 Speaker 1: the proper language. We don't want anybody and everybody out 664 00:30:06,040 --> 00:30:09,040 Speaker 1: there to go looking for the best cash back sign 665 00:30:09,120 --> 00:30:11,360 Speaker 1: up bonuses that you can find. But if that is you, 666 00:30:11,480 --> 00:30:13,880 Speaker 1: if if you are in a healthy position, if you 667 00:30:13,920 --> 00:30:16,800 Speaker 1: do have that reasonable amount of discipline, then head over 668 00:30:16,800 --> 00:30:18,240 Speaker 1: to our site, go to how do money dot com 669 00:30:18,320 --> 00:30:22,000 Speaker 1: Forward slash credit cards because that tool will help you 670 00:30:22,080 --> 00:30:24,920 Speaker 1: to find the best credit card for you and based 671 00:30:24,920 --> 00:30:27,960 Speaker 1: on the different benefits and the perks that you are 672 00:30:28,000 --> 00:30:30,360 Speaker 1: looking for. And it doesn't get talked about much. Most 673 00:30:30,360 --> 00:30:32,959 Speaker 1: people don't know that there are different consumer protections when 674 00:30:33,000 --> 00:30:35,080 Speaker 1: you use a credit card at purchase then when you 675 00:30:35,160 --> 00:30:37,720 Speaker 1: use a debit card. So it's not just the two 676 00:30:37,720 --> 00:30:40,360 Speaker 1: percent cash back or the m X Blue cash Preferred 677 00:30:40,360 --> 00:30:42,200 Speaker 1: six percent back at the grocery store, like those are 678 00:30:42,240 --> 00:30:44,480 Speaker 1: awesome perks, but we're also talking about just more robust 679 00:30:44,520 --> 00:30:46,520 Speaker 1: fraud protection when you're using a credit card. We're talking 680 00:30:46,520 --> 00:30:49,920 Speaker 1: about sometimes an extended warranty that a credit card offers. 681 00:30:50,240 --> 00:30:51,960 Speaker 1: In addition, that means you don't have to buy the 682 00:30:51,960 --> 00:30:56,000 Speaker 1: crappy extended warranty that the electronics company or the big 683 00:30:56,040 --> 00:30:57,720 Speaker 1: box warehouse is trying to get you to buy. The 684 00:30:58,160 --> 00:31:00,160 Speaker 1: credit card offers that for you. Yeah, the ability to 685 00:31:00,640 --> 00:31:04,040 Speaker 1: drop the CDW, the collision damage waiver when you're renting 686 00:31:04,040 --> 00:31:07,480 Speaker 1: a car because you've got a car that offers primary 687 00:31:07,800 --> 00:31:10,400 Speaker 1: car insurance by declining that CDDNU or as we talked 688 00:31:10,400 --> 00:31:12,120 Speaker 1: about in a recent ascount of money up, so many 689 00:31:12,120 --> 00:31:14,760 Speaker 1: different benefits. Yeah, The the ability to not have to 690 00:31:14,800 --> 00:31:16,720 Speaker 1: carry a bunch of cash on your person when you're 691 00:31:16,720 --> 00:31:19,120 Speaker 1: traveling overseas and to get the best exchange rate and 692 00:31:19,120 --> 00:31:20,280 Speaker 1: to not pay a fee to do it because you 693 00:31:20,280 --> 00:31:22,800 Speaker 1: get that zero cent transaction fee. Yeah, so really foreign 694 00:31:22,800 --> 00:31:25,000 Speaker 1: transaction fee. When you dig dig into the details, I 695 00:31:25,000 --> 00:31:27,760 Speaker 1: mean credit cards a lot. There are people out there 696 00:31:27,960 --> 00:31:30,520 Speaker 1: who think that they can't be used effectively. Those people 697 00:31:30,520 --> 00:31:32,400 Speaker 1: would be wrong. It is possible to use a credit 698 00:31:32,400 --> 00:31:35,080 Speaker 1: card effectively. And that's not just about two percent cash 699 00:31:35,080 --> 00:31:37,920 Speaker 1: back right to slightly juice your returns. There's a lot 700 00:31:37,920 --> 00:31:39,800 Speaker 1: more to it than that. But we've got Matt some 701 00:31:39,880 --> 00:31:42,800 Speaker 1: more pieces of financial advice that we think are pretty crummy. 702 00:31:43,000 --> 00:31:45,760 Speaker 1: They just ain't right. We'll get to those, including some 703 00:31:45,880 --> 00:31:48,880 Speaker 1: about investing. I think that are really important, especially right 704 00:31:48,880 --> 00:31:51,880 Speaker 1: now with what's happening in the market. How they're there's 705 00:31:51,920 --> 00:31:54,720 Speaker 1: more bad investing advice going around now than even there 706 00:31:54,720 --> 00:31:56,680 Speaker 1: typically is. So we'll get to that and more right 707 00:31:56,680 --> 00:32:08,280 Speaker 1: after this. All right, so we just spent some time 708 00:32:08,400 --> 00:32:12,520 Speaker 1: talking about spending money. Now let's get serious and let's 709 00:32:12,560 --> 00:32:15,360 Speaker 1: discuss saving and investing your money. Uh. And a piece 710 00:32:15,360 --> 00:32:18,480 Speaker 1: of advice that you often hear Joel is save ten 711 00:32:18,560 --> 00:32:21,880 Speaker 1: percent of your income. This is advice I even heard 712 00:32:21,920 --> 00:32:24,480 Speaker 1: as a as a little wee one growing up. Um, 713 00:32:24,520 --> 00:32:26,480 Speaker 1: and you might be asking, like, why is this crappy 714 00:32:26,480 --> 00:32:29,680 Speaker 1: advice that sounds smart? And it kind of is. It's Uh, 715 00:32:29,760 --> 00:32:32,480 Speaker 1: it's certainly better than what the average American is saving, 716 00:32:32,520 --> 00:32:35,680 Speaker 1: which is it's somewhere in the three percent range. And 717 00:32:35,960 --> 00:32:38,720 Speaker 1: so if you're in that position, if you aren't currently 718 00:32:38,760 --> 00:32:41,040 Speaker 1: even saving a tenth of your income, then yes, this 719 00:32:41,080 --> 00:32:43,480 Speaker 1: is a good goal to strive for. But we don't 720 00:32:43,520 --> 00:32:45,440 Speaker 1: want how the money listeners out there to be the 721 00:32:45,480 --> 00:32:47,760 Speaker 1: average American. We don't want you to to stay there. 722 00:32:47,800 --> 00:32:49,800 Speaker 1: We don't want that ten percent basically to be a 723 00:32:49,840 --> 00:32:53,840 Speaker 1: ceiling for you, because sometimes mainstream financial advice that actually 724 00:32:53,880 --> 00:32:56,280 Speaker 1: I think they set the bar too low. And if 725 00:32:56,320 --> 00:33:01,000 Speaker 1: you stick with this incredibly basic framework of saving, even 726 00:33:01,040 --> 00:33:03,320 Speaker 1: as your your income increases over the years, you're gonna 727 00:33:03,320 --> 00:33:06,400 Speaker 1: find it hard to make progress towards those bigger financial goals. 728 00:33:06,560 --> 00:33:08,920 Speaker 1: If you get complacent just you know, saving ten percent 729 00:33:09,000 --> 00:33:10,719 Speaker 1: of your income, it's gonna be tough to save up 730 00:33:10,720 --> 00:33:13,960 Speaker 1: to pay cash for a car or amassing a big 731 00:33:13,960 --> 00:33:17,479 Speaker 1: old down payment for a home purchase while simultaneously socking 732 00:33:17,480 --> 00:33:20,200 Speaker 1: away enough for retirement. And not only is it about 733 00:33:21,000 --> 00:33:23,440 Speaker 1: the ability to achieve some of these financial goals that 734 00:33:23,480 --> 00:33:27,280 Speaker 1: you've identified today, but we're also talking about being able 735 00:33:27,360 --> 00:33:30,040 Speaker 1: to achieve financial goals tomorrow, right, Like, these are all 736 00:33:30,080 --> 00:33:32,360 Speaker 1: things that today that today Matt wants to do, but 737 00:33:32,360 --> 00:33:34,280 Speaker 1: what about tomorrow, Matt. I don't know what tomorrow Matt. 738 00:33:34,320 --> 00:33:36,880 Speaker 1: Once And so the ability to save a little bit 739 00:33:36,880 --> 00:33:40,040 Speaker 1: more than that standard ten percent gives me that additional flexibility, 740 00:33:40,280 --> 00:33:43,040 Speaker 1: gives me options to pursue some of those goals in 741 00:33:43,040 --> 00:33:45,400 Speaker 1: a way that feels like I'm making progress as opposed 742 00:33:45,440 --> 00:33:47,800 Speaker 1: to just completely resetting the clock. I'm pretty sure tomorrow 743 00:33:47,800 --> 00:33:49,800 Speaker 1: Matt is gonna want a quartado with a local coffee shop, 744 00:33:49,800 --> 00:33:51,320 Speaker 1: but he's gonna have to wait till next week. Okay, 745 00:33:51,360 --> 00:33:53,440 Speaker 1: next week, Matt is gonna get that. Just one a week, 746 00:33:54,560 --> 00:33:56,520 Speaker 1: all right, And yeah, I think that. I think you're right, man. 747 00:33:56,560 --> 00:33:58,600 Speaker 1: I think that is kind of this basic tenant of 748 00:33:58,600 --> 00:34:01,000 Speaker 1: personal finance advice. And many people drive for and then 749 00:34:01,040 --> 00:34:03,720 Speaker 1: you get to ten percent and you rest on your laurels. 750 00:34:03,760 --> 00:34:06,080 Speaker 1: And because of that, it takes a really long time 751 00:34:06,120 --> 00:34:08,279 Speaker 1: to make meaningful progress. And we think people should be 752 00:34:08,600 --> 00:34:10,560 Speaker 1: uh seeking to save a lot more of their money, 753 00:34:10,640 --> 00:34:12,560 Speaker 1: and other cultures do this, well, what is it In Japan? 754 00:34:12,960 --> 00:34:15,399 Speaker 1: The average person says something something like in the thirty 755 00:34:15,400 --> 00:34:17,800 Speaker 1: percent range of their salary. I think it's so much higher. 756 00:34:17,800 --> 00:34:21,520 Speaker 1: We are abysmal at saving and how the money listeners 757 00:34:21,680 --> 00:34:24,080 Speaker 1: can do better than that. We know that well, and 758 00:34:24,160 --> 00:34:27,359 Speaker 1: we're too soft. That's right. We're trying to harden you up. 759 00:34:27,680 --> 00:34:30,080 Speaker 1: And let's talk about some some crappy investing advice for 760 00:34:30,120 --> 00:34:32,760 Speaker 1: a second, because really we could do a whole episode 761 00:34:32,800 --> 00:34:35,959 Speaker 1: about crappy investing advice. There's a lot of that out there. 762 00:34:36,360 --> 00:34:39,120 Speaker 1: But one of them we would say is buy low 763 00:34:39,200 --> 00:34:41,320 Speaker 1: and sell high. And I feel like you hear in 764 00:34:41,360 --> 00:34:43,359 Speaker 1: a down market, you hear more people talking about that, 765 00:34:43,640 --> 00:34:47,040 Speaker 1: buying the dip, that kind of stuff. And again, Matt, 766 00:34:47,120 --> 00:34:49,080 Speaker 1: kind of like what you said with the ten percent thing, 767 00:34:49,080 --> 00:34:51,480 Speaker 1: It's like, this is kind of sort of good advice, 768 00:34:51,560 --> 00:34:54,160 Speaker 1: like there's there's a nugget of wisdom here, but there's 769 00:34:54,200 --> 00:34:56,960 Speaker 1: also the fact that this piece of advice could completely 770 00:34:57,000 --> 00:35:00,279 Speaker 1: mess you up. And it's just not possible really to 771 00:35:00,280 --> 00:35:01,959 Speaker 1: buy low and sell high, is what we would say. 772 00:35:02,200 --> 00:35:05,759 Speaker 1: UH stats show year after year that even professional fund 773 00:35:05,800 --> 00:35:10,120 Speaker 1: managers consistently underperform the simple strategy of buying straight up 774 00:35:10,120 --> 00:35:13,200 Speaker 1: index funds. And these are people that are highly compensated, 775 00:35:13,320 --> 00:35:15,640 Speaker 1: right that this is their job to attempt to outperform 776 00:35:15,680 --> 00:35:20,280 Speaker 1: the market, to to get outside returns. But the reality 777 00:35:20,360 --> 00:35:23,120 Speaker 1: is that trying to buy the dip means you're waiting 778 00:35:23,160 --> 00:35:26,480 Speaker 1: on stock prices to go down, and the truth is 779 00:35:26,880 --> 00:35:30,440 Speaker 1: stocks are mostly on and up into the right trajectory, right, 780 00:35:30,440 --> 00:35:33,960 Speaker 1: that is the overwhelming direction that they're heading. And that 781 00:35:34,000 --> 00:35:36,319 Speaker 1: means if you're holding onto money that you want to 782 00:35:36,360 --> 00:35:39,080 Speaker 1: invest in hopes of a market downturn, to score a 783 00:35:39,080 --> 00:35:42,000 Speaker 1: better deal. You're you're more likely to miss out on 784 00:35:42,080 --> 00:35:43,960 Speaker 1: gains than you are to get that deal that you're 785 00:35:44,000 --> 00:35:47,000 Speaker 1: hoping for, and so that's why we prefer we advocate 786 00:35:47,040 --> 00:35:51,240 Speaker 1: the dollar cost averaging approach, mostly ignoring current market conditions, 787 00:35:51,280 --> 00:35:55,120 Speaker 1: because your cash sitting on the sidelines while you're trying 788 00:35:55,120 --> 00:35:57,879 Speaker 1: to buy the dip is experiencing opportunity costs and it's 789 00:35:57,920 --> 00:36:00,719 Speaker 1: just being smacked around by inflation and cular today. So 790 00:36:00,760 --> 00:36:03,279 Speaker 1: we would say just keep buying, don't worry about timing 791 00:36:03,320 --> 00:36:05,480 Speaker 1: the market. The key is to get your money in 792 00:36:05,520 --> 00:36:08,520 Speaker 1: the market with regularity. So if you hear buy low 793 00:36:08,560 --> 00:36:11,880 Speaker 1: and sell high, it's advice. It sounds good, but pulling 794 00:36:11,880 --> 00:36:13,440 Speaker 1: it off, it's like, hey, yeah, I just go out 795 00:36:13,440 --> 00:36:14,840 Speaker 1: there and hit four home runs in a game and 796 00:36:15,200 --> 00:36:16,840 Speaker 1: it'll be I'll be all good. I've never tried to 797 00:36:16,880 --> 00:36:18,160 Speaker 1: hit a home run map, but I know it's really 798 00:36:18,160 --> 00:36:20,480 Speaker 1: difficult and that even the best guys like hit you 799 00:36:20,480 --> 00:36:23,000 Speaker 1: know sixty a year, right, like, and that's really hard 800 00:36:23,040 --> 00:36:25,439 Speaker 1: to come by. So hitting four home runs in a game, 801 00:36:25,480 --> 00:36:27,040 Speaker 1: that's it's great advice. If you can actually do it 802 00:36:27,040 --> 00:36:29,640 Speaker 1: sounds impossible, Yes, technically that is correct. You do that 803 00:36:29,680 --> 00:36:31,200 Speaker 1: and you'll be the m v P. You're gonna make 804 00:36:31,520 --> 00:36:34,560 Speaker 1: millions or billions. The same thing with buy low, sell 805 00:36:34,680 --> 00:36:38,160 Speaker 1: high in theory. On paper, it's great advice, but actually 806 00:36:38,160 --> 00:36:42,120 Speaker 1: executing it virtually impossible. Joel something else, like, I feel 807 00:36:42,160 --> 00:36:44,719 Speaker 1: like this isn't necessarily like advice that you hear, but 808 00:36:44,800 --> 00:36:48,040 Speaker 1: just kind of maybe more sentiment when it comes to investors, 809 00:36:48,040 --> 00:36:50,760 Speaker 1: which is the fact that they're afraid that the market 810 00:36:50,840 --> 00:36:53,680 Speaker 1: is going to collapse. There's a number of fairly bright 811 00:36:53,680 --> 00:36:57,880 Speaker 1: individuals out there who continue to predict that the stock 812 00:36:57,920 --> 00:37:00,720 Speaker 1: market like that is just this house of cards and 813 00:37:00,800 --> 00:37:03,520 Speaker 1: that we're all bound to get wiped out in this historic, 814 00:37:03,719 --> 00:37:06,319 Speaker 1: you know, catastrophe. Like it kind of makes me think 815 00:37:06,320 --> 00:37:09,480 Speaker 1: of like the fundamental Christians who predicted the end of 816 00:37:09,520 --> 00:37:12,120 Speaker 1: the world, like back in the eighties Kyle Lindsay and 817 00:37:12,120 --> 00:37:13,600 Speaker 1: he wrote like three books about it, and he was 818 00:37:13,640 --> 00:37:16,000 Speaker 1: just wrong every time he predicted that. And when their 819 00:37:16,040 --> 00:37:18,400 Speaker 1: conviction ends up being dead wrong, like they instead they 820 00:37:18,400 --> 00:37:20,040 Speaker 1: often just double down. Wait, I was just wrong on 821 00:37:20,040 --> 00:37:23,040 Speaker 1: that date, and how I've gotten push that out seven 822 00:37:23,080 --> 00:37:25,680 Speaker 1: new insights? Uh, And so they predict an even more 823 00:37:25,760 --> 00:37:28,439 Speaker 1: catastrophic event on the horizon and so when it comes 824 00:37:28,440 --> 00:37:30,920 Speaker 1: to the different financial advice out there, like best selling 825 00:37:31,000 --> 00:37:34,359 Speaker 1: author of Rich Dad, Poor Dad, Robert Kiwasaki, he's one 826 00:37:34,360 --> 00:37:36,959 Speaker 1: of those folks, but there are definitely others as well. 827 00:37:37,200 --> 00:37:39,080 Speaker 1: But the truth is the market it's got its ups 828 00:37:39,080 --> 00:37:42,839 Speaker 1: and downs as we've experienced this year, but there's still 829 00:37:42,960 --> 00:37:46,960 Speaker 1: no easier way to build wealth despite the significant amounts 830 00:37:46,960 --> 00:37:52,960 Speaker 1: of volatility. Uh Van regularly investing in the American economy. Humans, 831 00:37:53,040 --> 00:37:56,840 Speaker 1: we are incredibly creative, We're adaptable creatures. It's best to 832 00:37:57,040 --> 00:38:00,399 Speaker 1: just ignore these predictions of of doom and gloom. There 833 00:38:00,440 --> 00:38:03,480 Speaker 1: is enough other normal, sad normal stuff out there for 834 00:38:03,560 --> 00:38:05,680 Speaker 1: us to worry about. And by the way, I was 835 00:38:05,680 --> 00:38:08,120 Speaker 1: talking about the volatility, like that bumpy ride that you 836 00:38:08,200 --> 00:38:10,800 Speaker 1: experienced in the market, that is a feature, not a bug. 837 00:38:10,840 --> 00:38:12,839 Speaker 1: That is what allows us to be able to see 838 00:38:12,840 --> 00:38:16,520 Speaker 1: growth over the long haul. And again, if there is 839 00:38:16,560 --> 00:38:19,880 Speaker 1: some sort of catastrophe, something like like a nuclear attack 840 00:38:19,960 --> 00:38:21,880 Speaker 1: or something like that, I think we've got bigger problems. 841 00:38:21,960 --> 00:38:26,320 Speaker 1: And it doesn't matter if you're invested in whatever alternative investment. 842 00:38:26,680 --> 00:38:29,120 Speaker 1: It's also not going to save you. If we're you know, 843 00:38:29,160 --> 00:38:31,120 Speaker 1: approaching the end of the world and a lot of 844 00:38:31,120 --> 00:38:34,120 Speaker 1: the folks that are the loudest voices, Matt saying that 845 00:38:34,160 --> 00:38:35,719 Speaker 1: the stock market is the house of cards, or that 846 00:38:35,760 --> 00:38:39,480 Speaker 1: we're going to see massive declines this year or depression three, 847 00:38:39,520 --> 00:38:42,800 Speaker 1: it's inevitable. Those people often have a financial incentive to 848 00:38:42,840 --> 00:38:45,839 Speaker 1: scare people in order to buy what they're selling. By 849 00:38:45,880 --> 00:38:48,399 Speaker 1: the way, have you checked out this company and they 850 00:38:48,480 --> 00:38:50,520 Speaker 1: happen to sell goal? That's right, And here's how you 851 00:38:50,600 --> 00:38:54,319 Speaker 1: save yourself from this, from from being impacted to the 852 00:38:54,320 --> 00:38:57,239 Speaker 1: extent that other people are impacted when everything goes to 853 00:38:57,320 --> 00:39:00,960 Speaker 1: hell and another Matt. Another investing thing that you probably 854 00:39:01,000 --> 00:39:03,560 Speaker 1: hear that people here investing advice is to invest in 855 00:39:03,560 --> 00:39:05,480 Speaker 1: what you know. You might hear folks say that it 856 00:39:05,520 --> 00:39:08,640 Speaker 1: makes sense to invest in companies that you use regularly. 857 00:39:09,360 --> 00:39:12,640 Speaker 1: So like, if you absolutely love Netflix, if you're a 858 00:39:12,640 --> 00:39:15,319 Speaker 1: fan of the content they create, you should invested in 859 00:39:15,320 --> 00:39:18,080 Speaker 1: the stock. And if you can't wait till like spend 860 00:39:18,080 --> 00:39:19,799 Speaker 1: time in the metaverse, let's say, which I've not heard 861 00:39:19,840 --> 00:39:24,239 Speaker 1: anyone say that before that Netflix tone nicely done, And yeah, 862 00:39:24,280 --> 00:39:25,719 Speaker 1: I mean, like, have you heard anyone say they want 863 00:39:25,760 --> 00:39:27,120 Speaker 1: to spend time in the metaverse? I feel like they 864 00:39:27,239 --> 00:39:30,000 Speaker 1: know I definitely the Zuck. He's getting criticism for that 865 00:39:30,040 --> 00:39:32,760 Speaker 1: these days because he's sticking a lot of Facebooks dollars 866 00:39:32,840 --> 00:39:37,759 Speaker 1: or Metas dollars towards this future potential universe. But yeah, 867 00:39:37,800 --> 00:39:39,319 Speaker 1: if you if you are excited about that, if you're 868 00:39:39,320 --> 00:39:41,000 Speaker 1: one of the rare people like toss some of your 869 00:39:41,000 --> 00:39:44,000 Speaker 1: retirement dollars in a company that you think has some 870 00:39:44,080 --> 00:39:45,759 Speaker 1: insight into what we're gonna all gonna be doing in 871 00:39:45,760 --> 00:39:48,439 Speaker 1: the future. Or let's say you are a big fan 872 00:39:48,640 --> 00:39:52,040 Speaker 1: of the Yeasy Shoes, which probably nobody is anymore, kind 873 00:39:52,040 --> 00:39:55,560 Speaker 1: of got canceled, but after you went on as incredible 874 00:39:55,640 --> 00:39:58,320 Speaker 1: anti Semitic tirades, and so we we saw what happened 875 00:39:58,320 --> 00:40:00,239 Speaker 1: with the DITA stock. Like you never know, even just 876 00:40:00,320 --> 00:40:03,719 Speaker 1: like the crazy bumblings of a celebrity can lead to 877 00:40:03,760 --> 00:40:07,799 Speaker 1: a precipitous fallout in a company's stock. So I get 878 00:40:07,960 --> 00:40:11,760 Speaker 1: kind of why this advice gets gets spread. But hopefully 879 00:40:11,800 --> 00:40:13,879 Speaker 1: with each one of these examples you can see how 880 00:40:13,880 --> 00:40:16,440 Speaker 1: it might play play out. Like, first, we're not fans 881 00:40:16,560 --> 00:40:19,080 Speaker 1: of investing in single stocks. The two of us, we 882 00:40:19,120 --> 00:40:21,640 Speaker 1: talk about money and investing all the time and we 883 00:40:21,640 --> 00:40:24,279 Speaker 1: don't do it. But the reality is you just never 884 00:40:24,400 --> 00:40:27,480 Speaker 1: know what competition or other headwinds might be coming for 885 00:40:27,520 --> 00:40:30,120 Speaker 1: that company you love. For when it comes to Netflix, 886 00:40:30,160 --> 00:40:34,719 Speaker 1: there's more streaming competition out there than ever before. And 887 00:40:34,760 --> 00:40:37,719 Speaker 1: it's not to say that Netflix won't ultimately succeed, but 888 00:40:37,800 --> 00:40:39,560 Speaker 1: for a while they had it easier. They didn't have 889 00:40:39,640 --> 00:40:41,920 Speaker 1: much competition, and they had the edge. And it's not 890 00:40:41,960 --> 00:40:43,480 Speaker 1: to say that people won't want to spend time in 891 00:40:43,520 --> 00:40:46,839 Speaker 1: the metaverse. If Zuckerberg can make it something fascinating, if 892 00:40:46,840 --> 00:40:49,000 Speaker 1: he can make it like Ready Player one style, maybe 893 00:40:49,000 --> 00:40:51,239 Speaker 1: we'll all be in there like doing cool stuff. Or 894 00:40:51,280 --> 00:40:53,320 Speaker 1: we won't because people because we just don't know the future. 895 00:40:53,480 --> 00:40:55,840 Speaker 1: But like, that's what's the that's the predicament here is 896 00:40:55,840 --> 00:40:57,360 Speaker 1: that we have no clue. And when you're putting all 897 00:40:57,400 --> 00:41:00,600 Speaker 1: of your eggs in literally one basket with in stock, 898 00:41:00,680 --> 00:41:03,920 Speaker 1: like this is difficult to know because yeah, metaverse folks 899 00:41:04,000 --> 00:41:07,280 Speaker 1: might realize that, you know what those in real life relationships, 900 00:41:07,800 --> 00:41:10,960 Speaker 1: going back to Victor Frankel. Frankel, those are the relationships 901 00:41:10,960 --> 00:41:13,680 Speaker 1: that matter, not any not this imitation stuff. Basically that 902 00:41:13,680 --> 00:41:15,440 Speaker 1: that we're finding on the metaverse. Just because you like 903 00:41:15,560 --> 00:41:18,600 Speaker 1: company's shoes doesn't mean that they've partnered with the right 904 00:41:18,600 --> 00:41:21,239 Speaker 1: people to help, you know, improve that business and to 905 00:41:21,960 --> 00:41:25,120 Speaker 1: uh reach more customers. Over the long haul, those relationships 906 00:41:25,120 --> 00:41:27,920 Speaker 1: can sour costing companies hundreds of millions of dollars. Yeah, 907 00:41:27,960 --> 00:41:30,200 Speaker 1: and we're like you said, like we're talking about individual stocks, 908 00:41:30,200 --> 00:41:32,359 Speaker 1: but night, but even beyond that, I think the same 909 00:41:32,440 --> 00:41:35,680 Speaker 1: lessons can be applied to entire sectors. Right because during 910 00:41:35,719 --> 00:41:37,720 Speaker 1: the pandemic, what what did we see in the tech sector. 911 00:41:37,800 --> 00:41:41,799 Speaker 1: We saw tech stocks taking off, they crushed, uh. And 912 00:41:41,880 --> 00:41:44,520 Speaker 1: now what we've seen so far this year is them 913 00:41:44,640 --> 00:41:47,480 Speaker 1: man blood bath with all the big, big tech names. 914 00:41:47,520 --> 00:41:49,560 Speaker 1: And instead of what we've seen is energy stocks. The 915 00:41:49,640 --> 00:41:52,080 Speaker 1: energy entire energy sector is like at all time highs. 916 00:41:52,080 --> 00:41:53,520 Speaker 1: And so now you might be saying, oh, now the 917 00:41:53,560 --> 00:41:55,200 Speaker 1: time to invest in x ON, but you don't know. 918 00:41:55,360 --> 00:41:58,480 Speaker 1: You don't know, So instead invest in widely diversified index 919 00:41:58,520 --> 00:42:02,359 Speaker 1: funds like VOO or vt sacks, both of vanguards either 920 00:42:02,480 --> 00:42:05,200 Speaker 1: total stock or smp F I f under index funds. 921 00:42:05,520 --> 00:42:07,880 Speaker 1: And so don't invest in what you know, because that 922 00:42:08,600 --> 00:42:11,960 Speaker 1: essentially it's a shallow understanding. It's a shallow measure of 923 00:42:12,000 --> 00:42:14,239 Speaker 1: what you think might be successful in the future, but 924 00:42:14,440 --> 00:42:17,399 Speaker 1: is a far cry from an actual analysis, let alone 925 00:42:17,400 --> 00:42:19,680 Speaker 1: a prediction of what actually might happen in the future. 926 00:42:19,719 --> 00:42:21,440 Speaker 1: And and so often times when we do this, Matt too, 927 00:42:21,480 --> 00:42:23,279 Speaker 1: we just get the timing wrong. So you might kind 928 00:42:23,280 --> 00:42:25,680 Speaker 1: of be right, and maybe the metaverse will exactly. Going 929 00:42:25,719 --> 00:42:28,120 Speaker 1: back to timing of the market, yes, sure by low 930 00:42:28,160 --> 00:42:30,640 Speaker 1: so high, But how the heck do you figure that out? 931 00:42:30,719 --> 00:42:32,960 Speaker 1: It might be fifteen years from now in retrospect hindsight, 932 00:42:33,040 --> 00:42:35,960 Speaker 1: it always looks so easy because you're framing the past 933 00:42:36,040 --> 00:42:38,839 Speaker 1: by what you are experiencing today. And so yeah, looking 934 00:42:38,880 --> 00:42:41,360 Speaker 1: back to the pandemic you're thinking, of course, tell you know, 935 00:42:41,360 --> 00:42:43,200 Speaker 1: we're talking about tele doc earlier. Of course they were 936 00:42:43,200 --> 00:42:45,799 Speaker 1: going to crush everybody's gonna be at home, everyone's gonna 937 00:42:45,760 --> 00:42:49,000 Speaker 1: be prize these technology companies. But at the time we 938 00:42:49,040 --> 00:42:51,560 Speaker 1: didn't know that. Uh, And so the same thing, you 939 00:42:51,600 --> 00:42:54,560 Speaker 1: know applies to the present. Moving forward, we have no 940 00:42:54,640 --> 00:42:56,959 Speaker 1: clue what the future is gonna hold. Are you're gonna 941 00:42:56,960 --> 00:42:59,160 Speaker 1: have this ramin introspect, you might be able to figure 942 00:42:59,160 --> 00:43:01,480 Speaker 1: it out. Afforded to to hold on to those to 943 00:43:01,600 --> 00:43:04,319 Speaker 1: those stocks when they're plumbering, when they're not doing well, 944 00:43:04,640 --> 00:43:07,399 Speaker 1: just because you have that ultimate faith and belief probably not. 945 00:43:07,480 --> 00:43:10,359 Speaker 1: Like most people at some point they cry uncle, they sell, 946 00:43:10,640 --> 00:43:13,279 Speaker 1: and so like, right now you doubt yourself. Yeah, it's 947 00:43:13,280 --> 00:43:15,000 Speaker 1: telling at the wrong time. I think there's just a 948 00:43:15,000 --> 00:43:17,680 Speaker 1: lot to be said for not not taking that approach, 949 00:43:17,880 --> 00:43:19,359 Speaker 1: even though there's a lot of people that are going 950 00:43:19,400 --> 00:43:21,520 Speaker 1: to say that that's what you should do and that 951 00:43:21,520 --> 00:43:24,480 Speaker 1: that that's how stock market investing makes sense to the 952 00:43:24,480 --> 00:43:26,719 Speaker 1: average average individual. But I don't think that's the case. 953 00:43:26,719 --> 00:43:28,840 Speaker 1: And I think investing in the market as a whole 954 00:43:29,239 --> 00:43:32,040 Speaker 1: is something that's easy for the average American to understand. 955 00:43:32,239 --> 00:43:35,200 Speaker 1: You don't have to start packing individual stocks of companies 956 00:43:35,239 --> 00:43:36,960 Speaker 1: that you already kind of kind of like in order 957 00:43:36,960 --> 00:43:38,440 Speaker 1: to be a good investor, and in fact, it's probably 958 00:43:38,440 --> 00:43:40,919 Speaker 1: gonna take you down the wrong path, that's right. Yeah, Again, 959 00:43:41,000 --> 00:43:44,920 Speaker 1: we could do an entire episode on the crappy investing 960 00:43:44,960 --> 00:43:46,799 Speaker 1: advice that we often hear, but I mean, as we 961 00:43:46,840 --> 00:43:48,800 Speaker 1: kind of round this episode out, bottom line, we just 962 00:43:48,840 --> 00:43:50,160 Speaker 1: want you to be careful who it is that you 963 00:43:50,200 --> 00:43:53,400 Speaker 1: listen to. There's probably a lot more crappy personal finance 964 00:43:53,440 --> 00:43:56,280 Speaker 1: advice out there than you think, and we can't tackle 965 00:43:56,320 --> 00:43:58,920 Speaker 1: all of the poor advice that you might come across 966 00:43:58,960 --> 00:44:01,279 Speaker 1: just in one episode. So bottom line, we want you 967 00:44:01,320 --> 00:44:03,520 Speaker 1: to be careful who it is that you're listening to. 968 00:44:04,200 --> 00:44:07,480 Speaker 1: We think that there's probably a lot more crappy personal 969 00:44:07,480 --> 00:44:09,640 Speaker 1: finance advice out there than you think, and you know, 970 00:44:09,680 --> 00:44:12,799 Speaker 1: we can't tackle it all just in one episode. Oftentimes 971 00:44:13,040 --> 00:44:15,360 Speaker 1: it's the folks who are screaming the loudest. It's the 972 00:44:15,400 --> 00:44:17,600 Speaker 1: folks who who have the most rigid rules out there. 973 00:44:17,640 --> 00:44:20,120 Speaker 1: They can be the easiest to understand, for sure, but 974 00:44:20,200 --> 00:44:23,000 Speaker 1: it doesn't mean that their advice is going to be 975 00:44:23,000 --> 00:44:25,680 Speaker 1: best for you. You know that's gonna be best for 976 00:44:25,680 --> 00:44:27,800 Speaker 1: you to listen to them, or that it will actually 977 00:44:27,840 --> 00:44:29,759 Speaker 1: be the most helpful for you in the long run. 978 00:44:29,800 --> 00:44:33,600 Speaker 1: At least personal finance advice it can and should be nuanced. 979 00:44:33,800 --> 00:44:36,440 Speaker 1: It takes time, like we talked about earlier too, uh 980 00:44:36,440 --> 00:44:39,840 Speaker 1: and and not all advices created equal. And some of 981 00:44:39,880 --> 00:44:42,000 Speaker 1: the different blanket rules of thumb that you come across 982 00:44:42,400 --> 00:44:45,160 Speaker 1: for everyone, no matter what they're their individual financial situation, 983 00:44:45,200 --> 00:44:47,920 Speaker 1: looks like that is not a great tactic. Where it 984 00:44:47,960 --> 00:44:50,760 Speaker 1: is that you are in your financial journey, It's crucial 985 00:44:50,760 --> 00:44:53,080 Speaker 1: to the advice that you should be heating and with that, 986 00:44:53,200 --> 00:44:55,680 Speaker 1: make sure that you spend enough time thinking about this. 987 00:44:55,800 --> 00:44:59,120 Speaker 1: I think oftentimes folks they go with the slogan advice, 988 00:44:59,200 --> 00:45:00,920 Speaker 1: the thing that's easy, need to repeat, the go with 989 00:45:00,960 --> 00:45:03,560 Speaker 1: the headlines, and instead we want you to to think 990 00:45:03,600 --> 00:45:05,680 Speaker 1: about it. We don't want you to spend too much time, 991 00:45:05,719 --> 00:45:08,279 Speaker 1: but spend enough time that you are informed and that 992 00:45:08,280 --> 00:45:10,920 Speaker 1: you're able to make the best decisions for yourself. Yeah, 993 00:45:11,000 --> 00:45:13,160 Speaker 1: And it just makes me think math that. Like you 994 00:45:13,200 --> 00:45:15,279 Speaker 1: mentioned Victor Frankel's book, and I think it's a great one, 995 00:45:15,320 --> 00:45:17,719 Speaker 1: and it's actually it's pretty skinny. It's it's not really 996 00:45:17,719 --> 00:45:19,279 Speaker 1: that hard for for most folks to read. But if 997 00:45:19,320 --> 00:45:21,440 Speaker 1: I hand it to my seven year old who's in 998 00:45:21,480 --> 00:45:23,799 Speaker 1: the second grade, when she's reading Pete the Cat kind 999 00:45:23,800 --> 00:45:25,400 Speaker 1: of books, right, Like, that's kind of the vein she's in. 1000 00:45:25,760 --> 00:45:28,400 Speaker 1: She might be able to understand a good chunk of 1001 00:45:28,440 --> 00:45:30,640 Speaker 1: the words. She's not gonna understand what she's reading though, 1002 00:45:30,880 --> 00:45:33,799 Speaker 1: And so yeah, that when you do blanket advice or 1003 00:45:33,800 --> 00:45:36,160 Speaker 1: you say this is the best thing for everyone, oftentimes 1004 00:45:36,160 --> 00:45:38,919 Speaker 1: we're missing the reality that people are at different points 1005 00:45:38,920 --> 00:45:41,359 Speaker 1: in their financial journey, and so we try to bring 1006 00:45:41,400 --> 00:45:43,640 Speaker 1: that nuance to the forefront so that people can see 1007 00:45:43,760 --> 00:45:45,560 Speaker 1: like how we're coming to our conclusions so they can 1008 00:45:45,600 --> 00:45:47,799 Speaker 1: come to their own, not just tossing a phrase out 1009 00:45:47,800 --> 00:45:50,399 Speaker 1: there and hoping that everyone adapts accordingly. Like, that's that's 1010 00:45:50,400 --> 00:45:52,160 Speaker 1: not our a plan, that's not our path, that's not 1011 00:45:52,160 --> 00:45:53,719 Speaker 1: how we roll. All right, man? Is that it for 1012 00:45:53,760 --> 00:45:56,880 Speaker 1: this episode. Let's get to the beer this episode, you 1013 00:45:56,880 --> 00:45:59,520 Speaker 1: and I enjoy it Uplifted, which is a Scottish style 1014 00:45:59,600 --> 00:46:03,200 Speaker 1: ale from Talisman Brewing Company. Thank you Andy for donating 1015 00:46:03,200 --> 00:46:04,760 Speaker 1: this one to the show. What were your thoughts, buddy, 1016 00:46:04,800 --> 00:46:07,240 Speaker 1: So I've never had this was like a light version 1017 00:46:07,239 --> 00:46:08,680 Speaker 1: of a Scott Shaniel. Yeah, so I was reading on 1018 00:46:08,680 --> 00:46:10,600 Speaker 1: the side it said it's a it's like a session 1019 00:46:11,080 --> 00:46:13,879 Speaker 1: sessionable scott to shale, So so it was. I would 1020 00:46:13,880 --> 00:46:15,520 Speaker 1: say it was kind of like a light brown nail 1021 00:46:15,520 --> 00:46:17,920 Speaker 1: in a lot of ways, and I like a good 1022 00:46:17,920 --> 00:46:19,879 Speaker 1: Scotch shail. We actually got to have a good one 1023 00:46:19,960 --> 00:46:21,520 Speaker 1: on the show not too long ago, and that was 1024 00:46:21,560 --> 00:46:23,360 Speaker 1: fun because scott jails are actually kind of hard to 1025 00:46:23,360 --> 00:46:25,440 Speaker 1: come by, not many people make them. But this one 1026 00:46:25,520 --> 00:46:27,120 Speaker 1: left a little more to be desired than that one. 1027 00:46:27,120 --> 00:46:29,640 Speaker 1: It was just it was kind of lacking in some 1028 00:46:29,719 --> 00:46:31,480 Speaker 1: of the flavor profile and some of the punch I 1029 00:46:31,520 --> 00:46:34,239 Speaker 1: typically like to get. It wasn't quite as toast. I 1030 00:46:34,239 --> 00:46:37,400 Speaker 1: mean a lot of times it's characterized by like a toastiness. 1031 00:46:37,520 --> 00:46:40,440 Speaker 1: Um that like some bigger, darker flavor caramel vibes. This 1032 00:46:40,480 --> 00:46:42,799 Speaker 1: one was was like almost a little bit tart um. 1033 00:46:43,000 --> 00:46:46,239 Speaker 1: So maybe that that lightness and body went itself. So 1034 00:46:46,280 --> 00:46:48,480 Speaker 1: maybe it's just a yeah, like a slight tartness. But 1035 00:46:48,680 --> 00:46:51,200 Speaker 1: as always, I would rather be drinking a craft beer 1036 00:46:51,280 --> 00:46:53,360 Speaker 1: with you while we record an episode the Knots, So 1037 00:46:53,400 --> 00:46:55,239 Speaker 1: I'm glad that you and I were able to enjoy 1038 00:46:55,239 --> 00:46:56,640 Speaker 1: one of these today, buddy. And by the way, I 1039 00:46:56,680 --> 00:46:59,319 Speaker 1: mean we talked about smart rules for spending earlier, just 1040 00:46:59,360 --> 00:47:01,600 Speaker 1: for a second, as we were talking about the latte factor, 1041 00:47:02,080 --> 00:47:04,880 Speaker 1: and that you and I kind of go what we 1042 00:47:04,960 --> 00:47:06,839 Speaker 1: do flies directly in the face of that we drink 1043 00:47:06,840 --> 00:47:10,480 Speaker 1: a craft beer, often an expensive craft beer every episode. Um. 1044 00:47:10,840 --> 00:47:13,560 Speaker 1: This one unfortunately was free, thanks Andy. But but we 1045 00:47:13,600 --> 00:47:17,399 Speaker 1: are spending our own money for these beers because and 1046 00:47:17,400 --> 00:47:19,120 Speaker 1: and and not just because we love beer, that's a 1047 00:47:19,160 --> 00:47:21,200 Speaker 1: big part of it, but because there's another lesson to 1048 00:47:21,239 --> 00:47:23,000 Speaker 1: be had in there, that's spending money on the things 1049 00:47:23,000 --> 00:47:25,040 Speaker 1: that you love. In the here and now while you're 1050 00:47:25,040 --> 00:47:27,080 Speaker 1: getting good with your money is an important part of 1051 00:47:27,080 --> 00:47:30,640 Speaker 1: the equation, and going too hard, becoming hyper frugal over 1052 00:47:30,680 --> 00:47:32,960 Speaker 1: the top, is a recipe for disaster in the long run. 1053 00:47:33,440 --> 00:47:36,600 Speaker 1: All frugal and no splurge mix Juel and I doll boys. 1054 00:47:36,640 --> 00:47:39,480 Speaker 1: That's right. We don't want to be that, So all right, Matt, 1055 00:47:39,480 --> 00:47:41,360 Speaker 1: that's gonna do it for for this episode. If you 1056 00:47:41,360 --> 00:47:44,480 Speaker 1: have another piece of financial advice that really sucks, that's 1057 00:47:44,480 --> 00:47:46,440 Speaker 1: really great to you, that you find around the interwebs 1058 00:47:46,440 --> 00:47:47,759 Speaker 1: at some point, send it our way. We love to 1059 00:47:47,800 --> 00:47:49,799 Speaker 1: hear from you. Reach out to us. You can email 1060 00:47:49,880 --> 00:47:52,520 Speaker 1: us at how the Money Pod at gmail dot com. 1061 00:47:52,560 --> 00:47:54,680 Speaker 1: That's right, buddy. So that's gonna be it for this episode. 1062 00:47:54,719 --> 00:48:06,239 Speaker 1: Until next time, Best Friends Out, Best Friends Out. M