1 00:00:00,160 --> 00:00:03,080 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,240 --> 00:00:07,160 Speaker 1: and today we're discussing free fancy phones, inflation surging, and 3 00:00:07,320 --> 00:00:28,960 Speaker 1: crypto in your four oh one k Joel. Before long, 4 00:00:29,040 --> 00:00:31,240 Speaker 1: crypto is going to be everywhere, not just in your 5 00:00:31,280 --> 00:00:32,960 Speaker 1: full weekend. It's gonna be like sleeping in my bed 6 00:00:33,000 --> 00:00:38,480 Speaker 1: at night, like in your cupboards, seeming good in your closet. Uh. No, Yeah, 7 00:00:38,520 --> 00:00:41,800 Speaker 1: we are going to talk about cryptocurrencies in your retirement accounts. Uh. 8 00:00:41,840 --> 00:00:43,519 Speaker 1: We're gonna talk about a lot of stories that you 9 00:00:43,560 --> 00:00:45,760 Speaker 1: came across this week man, and how they are going 10 00:00:45,800 --> 00:00:48,279 Speaker 1: to impact our money, how they're going to impact your 11 00:00:48,320 --> 00:00:50,479 Speaker 1: personal finances. But first, I think you wanted to talk 12 00:00:50,520 --> 00:00:53,400 Speaker 1: about some different ways to stave off this Atlanta heat 13 00:00:53,520 --> 00:00:55,960 Speaker 1: now that it's summertime. Yeah, it's getting brutal, skinting, bertle 14 00:00:56,120 --> 00:00:58,360 Speaker 1: eighties every day and pretty soon it's gonna be nineties 15 00:00:58,400 --> 00:01:02,720 Speaker 1: every day. But yeah, nineties, that's nothing. I mean, I 16 00:01:02,760 --> 00:01:05,119 Speaker 1: grew up in Augusta, Georgia, where the heat I mean, 17 00:01:05,880 --> 00:01:07,280 Speaker 1: that's a hot day, but with the heat and decks 18 00:01:07,319 --> 00:01:09,320 Speaker 1: at like one oh seven or something. But that's that 19 00:01:09,400 --> 00:01:12,399 Speaker 1: oppressive wet heat. My uncle lives in Tucson, Arizona, gets 20 00:01:12,520 --> 00:01:15,480 Speaker 1: really sticking hot down there. But yeah, he's got a 21 00:01:15,480 --> 00:01:17,080 Speaker 1: pool in his backyard, of course, And I wanted to 22 00:01:17,120 --> 00:01:19,399 Speaker 1: mention quickly. I don't know if this is the case 23 00:01:19,440 --> 00:01:22,360 Speaker 1: in other municipalities, but the city of Atlanta at least 24 00:01:22,360 --> 00:01:25,840 Speaker 1: has made all public pools free this summer, which is 25 00:01:25,840 --> 00:01:28,240 Speaker 1: super cool. But even for a lot of places where 26 00:01:28,280 --> 00:01:30,720 Speaker 1: the pools aren't completely free all hours of the day, 27 00:01:31,200 --> 00:01:35,040 Speaker 1: there are certain hours for certain pools where people are 28 00:01:35,080 --> 00:01:37,320 Speaker 1: allowed to get in for free. And so, for instance, 29 00:01:37,360 --> 00:01:39,840 Speaker 1: I took my kids just just this week to the 30 00:01:39,840 --> 00:01:43,120 Speaker 1: Piedmont Park pool in midtown Atlanta, and that one is 31 00:01:43,160 --> 00:01:46,520 Speaker 1: not a public pool that's completely free, but between the 32 00:01:46,520 --> 00:01:49,120 Speaker 1: hours and three and five, it's free swim hours. And 33 00:01:49,160 --> 00:01:52,120 Speaker 1: so yeah, we can even bike there, hop off, go 34 00:01:52,200 --> 00:01:53,880 Speaker 1: for a couple of hours, swim, and then bike home. 35 00:01:54,120 --> 00:01:56,600 Speaker 1: That sounds perfect, It's pretty ideal. Yeah, So I just 36 00:01:56,640 --> 00:01:58,440 Speaker 1: want to let folks know, like, you know, you don't 37 00:01:58,480 --> 00:02:00,800 Speaker 1: necessarily have to become a member of a pool and 38 00:02:00,800 --> 00:02:04,240 Speaker 1: pay big bucks um in order to you know, stave 39 00:02:04,320 --> 00:02:06,920 Speaker 1: off the summer heat. You can you can use some 40 00:02:06,960 --> 00:02:08,800 Speaker 1: of those free swim hours in order to do it. Okay, 41 00:02:08,800 --> 00:02:10,760 Speaker 1: So question for you. You said from three to five 42 00:02:10,840 --> 00:02:13,920 Speaker 1: that's when they're their free swim hours are do they 43 00:02:13,919 --> 00:02:16,840 Speaker 1: start charging you at five, like by like in fifteen 44 00:02:16,840 --> 00:02:19,520 Speaker 1: minute increments or are you able to I'm assuming you're 45 00:02:19,520 --> 00:02:21,400 Speaker 1: able to get in between three and five, get the 46 00:02:21,440 --> 00:02:23,040 Speaker 1: free entry, and then you can stay as long as 47 00:02:23,040 --> 00:02:25,839 Speaker 1: you want. No, I think at five you're supposed to lave. Yeah, 48 00:02:25,840 --> 00:02:27,760 Speaker 1: I think so. I don't know. We left our own volition, 49 00:02:27,840 --> 00:02:29,440 Speaker 1: so I didn't. You didn't stick around to find out 50 00:02:29,440 --> 00:02:32,120 Speaker 1: if I got the boot officially or not. But um, yeah, 51 00:02:32,400 --> 00:02:34,880 Speaker 1: I'm guessing you have like a colored wristband, and so 52 00:02:35,040 --> 00:02:38,519 Speaker 1: I'm sure they're like, hey, white wristband people, which color? 53 00:02:38,960 --> 00:02:40,440 Speaker 1: All of you have not out here? Get out of 54 00:02:40,480 --> 00:02:43,400 Speaker 1: here or then you gotta pay like five bucks a person. 55 00:02:43,440 --> 00:02:46,400 Speaker 1: And I feel like that's kind of lame, but I 56 00:02:46,400 --> 00:02:48,760 Speaker 1: guess that's just a way to, yeah, manage who's there, 57 00:02:48,800 --> 00:02:50,720 Speaker 1: who's not there? Yeah, I mean, And and a lot 58 00:02:50,720 --> 00:02:52,960 Speaker 1: of the public pools kind of had that beforehand where 59 00:02:53,240 --> 00:02:56,160 Speaker 1: they shut down for a minute, kick all the free free, 60 00:02:56,639 --> 00:02:58,920 Speaker 1: like Grant Park pool where we live. That that's that's 61 00:02:58,960 --> 00:03:01,920 Speaker 1: where we went this past week. And it's other we're 62 00:03:02,000 --> 00:03:03,520 Speaker 1: hitting up all the bulls. Man. We're not paying for 63 00:03:03,560 --> 00:03:05,560 Speaker 1: pools this summer. That's our goal. We're just all free, 64 00:03:05,560 --> 00:03:07,359 Speaker 1: all free pools. You know, another way you can not 65 00:03:07,520 --> 00:03:10,320 Speaker 1: get charged to gain entry to a pool is if 66 00:03:10,360 --> 00:03:12,079 Speaker 1: you build your own pool on your back yard. I 67 00:03:12,120 --> 00:03:14,639 Speaker 1: though you say half the fence. I think that would 68 00:03:14,680 --> 00:03:17,200 Speaker 1: be illegal, but I know, yeah, building a pool is 69 00:03:17,240 --> 00:03:19,480 Speaker 1: probably the most expensive way to cool down. But if 70 00:03:19,480 --> 00:03:21,320 Speaker 1: there's any family out there who I think would would 71 00:03:21,360 --> 00:03:23,720 Speaker 1: get their money's worth, I think it would be your family, 72 00:03:23,720 --> 00:03:25,880 Speaker 1: for sure, that's true. We would, Okay, so near est 73 00:03:25,880 --> 00:03:28,000 Speaker 1: there's also this like what I would call a more 74 00:03:28,080 --> 00:03:30,799 Speaker 1: bougie pool that costs a lot of money. I mean, 75 00:03:31,000 --> 00:03:32,919 Speaker 1: I don't even know if you can like join because 76 00:03:32,960 --> 00:03:34,960 Speaker 1: there's like so many people who want to be a 77 00:03:35,000 --> 00:03:36,680 Speaker 1: member of this pool. But what are your thoughts on 78 00:03:37,120 --> 00:03:39,800 Speaker 1: fancy pools that are really convenient, really nice, but that 79 00:03:39,880 --> 00:03:41,600 Speaker 1: costs a lot of money. It all comes down to 80 00:03:41,600 --> 00:03:44,200 Speaker 1: your priorities, right, And uh, you know, for us, we 81 00:03:44,280 --> 00:03:46,280 Speaker 1: love swim pools. My girls love to be in the water, 82 00:03:46,600 --> 00:03:48,880 Speaker 1: and so for the longest time we were why members. 83 00:03:49,200 --> 00:03:51,000 Speaker 1: But since the pools are free this summer and we 84 00:03:51,040 --> 00:03:52,960 Speaker 1: haven't been why members for a little while. We're gonna 85 00:03:53,000 --> 00:03:54,120 Speaker 1: be just trying to hit up the free ones as 86 00:03:54,200 --> 00:03:56,640 Speaker 1: much as possible. Um, that's kind of the ethos that 87 00:03:56,680 --> 00:04:00,200 Speaker 1: we live by doing stuff cheaply, get it for free. Yeah. Well, 88 00:04:00,600 --> 00:04:02,520 Speaker 1: and by the way, yeah, I wasn't for anybody out 89 00:04:02,520 --> 00:04:05,000 Speaker 1: there who's thinking that I'm referring to the y pool 90 00:04:05,000 --> 00:04:07,520 Speaker 1: as bougie. No, like, there's another pool. The cost like 91 00:04:07,640 --> 00:04:11,400 Speaker 1: thousands of dollars to like join, plus like annual fees 92 00:04:11,440 --> 00:04:13,840 Speaker 1: as well. It's basically like joining a golf course or 93 00:04:13,880 --> 00:04:16,080 Speaker 1: something like that. But yeah, like you said, for some 94 00:04:16,120 --> 00:04:18,840 Speaker 1: folks it's worth it. But yeah, for us, we tend 95 00:04:18,839 --> 00:04:20,640 Speaker 1: to be more on the frugal side. But man, let's 96 00:04:20,640 --> 00:04:23,160 Speaker 1: go ahead and move on. Let's get to our Friday flight. 97 00:04:23,240 --> 00:04:25,359 Speaker 1: This is our quick sampling of different stories that we 98 00:04:25,400 --> 00:04:27,920 Speaker 1: found interesting this week. And by the way, man, we're 99 00:04:27,920 --> 00:04:31,279 Speaker 1: gonna talk a lot about rising prices, so it makes 100 00:04:31,279 --> 00:04:32,640 Speaker 1: me think on Sesame Street. You know how at the 101 00:04:32,640 --> 00:04:34,560 Speaker 1: beginning they would say that, like, this episode has brought 102 00:04:34,560 --> 00:04:38,000 Speaker 1: to you by the letter p pool or something like that. Well, 103 00:04:38,080 --> 00:04:40,640 Speaker 1: this episode is brought to you by the term inflation. 104 00:04:40,839 --> 00:04:42,640 Speaker 1: Because so much of what we're gonna talk about during 105 00:04:42,640 --> 00:04:44,920 Speaker 1: this episode has to do with inflation. Let's talk about 106 00:04:44,920 --> 00:04:47,760 Speaker 1: the rising prices when it comes to housing. The Salo 107 00:04:47,880 --> 00:04:50,840 Speaker 1: was Fed recently released their house price to rent ratio 108 00:04:51,320 --> 00:04:54,200 Speaker 1: UH and the national indexes at an all time high, 109 00:04:54,240 --> 00:04:56,880 Speaker 1: even surpassing the last peak from from back in two 110 00:04:56,880 --> 00:04:59,360 Speaker 1: thousand and six. And this is an important ratio that 111 00:04:59,400 --> 00:05:01,760 Speaker 1: compares home prices to what it would cost to rent, 112 00:05:02,279 --> 00:05:04,760 Speaker 1: and it's valuable information because it can help you to 113 00:05:05,120 --> 00:05:07,840 Speaker 1: estimate whether it's cheaper for you to own or to rent, 114 00:05:07,960 --> 00:05:10,440 Speaker 1: or wherever it is that you live. UH. Different sites 115 00:05:10,480 --> 00:05:12,599 Speaker 1: like Zilla they make this really easy for folks. They've 116 00:05:12,600 --> 00:05:15,080 Speaker 1: got their rent versus buying calculator that will link to 117 00:05:15,120 --> 00:05:17,719 Speaker 1: in our show notes. But we wanted to highlight this 118 00:05:17,800 --> 00:05:21,320 Speaker 1: because when it looks like everyone you know owns a 119 00:05:21,360 --> 00:05:23,359 Speaker 1: home or is currently looking to buy a home, it 120 00:05:23,360 --> 00:05:25,480 Speaker 1: can be really easy to fall into the trap of 121 00:05:25,520 --> 00:05:28,479 Speaker 1: thinking that you're throwing away money by renting. But we 122 00:05:28,480 --> 00:05:30,359 Speaker 1: want you to know that this is often not the case, 123 00:05:30,640 --> 00:05:32,960 Speaker 1: because not only do you have to consider your own 124 00:05:33,040 --> 00:05:36,480 Speaker 1: goals and you know whether they include home ownership or not, 125 00:05:36,839 --> 00:05:38,960 Speaker 1: but you also need to keep in mind skyrocketing home 126 00:05:39,000 --> 00:05:41,960 Speaker 1: prices because that may be another reason to put your 127 00:05:41,960 --> 00:05:44,160 Speaker 1: house hunt on hold, at least for the time being. Yeah, 128 00:05:44,200 --> 00:05:46,520 Speaker 1: and we're seeing all these headlines about home prices going 129 00:05:46,600 --> 00:05:48,640 Speaker 1: up and up and up, and I think it's getting 130 00:05:48,920 --> 00:05:50,720 Speaker 1: It's either it's doing one or two things. Some people 131 00:05:50,720 --> 00:05:52,640 Speaker 1: are saying, I just need to like jump off until 132 00:05:52,680 --> 00:05:54,640 Speaker 1: this cools down, and other people are saying I need 133 00:05:54,680 --> 00:05:57,400 Speaker 1: to get on now, causing them yeah, rush in, yeah, 134 00:05:57,440 --> 00:05:59,600 Speaker 1: and maybe do something that's ill advised that they're not 135 00:06:00,040 --> 00:06:03,039 Speaker 1: d financially to handle. And Matt, this too isn't to 136 00:06:03,080 --> 00:06:05,400 Speaker 1: say that we're currently in a housing bubble like we 137 00:06:05,400 --> 00:06:08,960 Speaker 1: were in before the Great Recession, right, Housing affordability actually 138 00:06:09,040 --> 00:06:11,839 Speaker 1: isn't as bad as it seems because of low interest 139 00:06:11,920 --> 00:06:13,839 Speaker 1: rates and rising incomes. I think a lot of the 140 00:06:13,960 --> 00:06:17,440 Speaker 1: people are are seeing home prices just continually increase, but 141 00:06:17,520 --> 00:06:21,479 Speaker 1: other factors have actually kept affordability within reach to a 142 00:06:21,520 --> 00:06:25,120 Speaker 1: greater extent than it would seem just according to the headlines. 143 00:06:25,560 --> 00:06:28,719 Speaker 1: But the surge in home values does mean that you 144 00:06:28,760 --> 00:06:30,560 Speaker 1: and I we feel like we need to warn would 145 00:06:30,600 --> 00:06:33,560 Speaker 1: be homebuyers that they might be better off renting instead. 146 00:06:33,640 --> 00:06:36,120 Speaker 1: And you know, you and I have said consistently that 147 00:06:36,160 --> 00:06:38,320 Speaker 1: renting is not throwing away money. Um, it could just 148 00:06:38,360 --> 00:06:41,560 Speaker 1: simply be a better move for our listeners and for 149 00:06:41,640 --> 00:06:44,159 Speaker 1: their money, uh to to rent them to buy a home. 150 00:06:44,160 --> 00:06:46,679 Speaker 1: In today's market. It's important to remember that the actual 151 00:06:46,880 --> 00:06:49,880 Speaker 1: costs of homeownership are often much higher than we think. 152 00:06:49,880 --> 00:06:52,599 Speaker 1: We covered that in episode three twenty three, So go 153 00:06:52,640 --> 00:06:55,240 Speaker 1: back and listen to that to get like a sobering 154 00:06:55,320 --> 00:06:58,640 Speaker 1: take on what is actually gonna cost to buy a home, 155 00:06:58,680 --> 00:07:00,719 Speaker 1: because it's not just the just price in the monthly 156 00:07:00,760 --> 00:07:03,000 Speaker 1: mortgage payment. There's a whole lot more that goes into it. Yeah. Yeah, 157 00:07:03,000 --> 00:07:06,000 Speaker 1: If Zillo is like the most used app according to 158 00:07:06,000 --> 00:07:08,520 Speaker 1: screen time on your phone, and you're pretty hot on 159 00:07:08,760 --> 00:07:10,960 Speaker 1: purchasing at home, listen back to that episode and you'll 160 00:07:11,000 --> 00:07:12,680 Speaker 1: kind of be like, oh, yeah, maybe maybe we're not 161 00:07:12,760 --> 00:07:16,920 Speaker 1: quite yet ready, I'm going back to candy Crush. Yeah, 162 00:07:17,120 --> 00:07:18,840 Speaker 1: And well, yeah, when you think about it, less expensive 163 00:07:18,880 --> 00:07:20,720 Speaker 1: than the low run right, right, Well, when we're talking 164 00:07:20,720 --> 00:07:22,840 Speaker 1: about rents to a lot of cities are seeing year 165 00:07:22,880 --> 00:07:25,840 Speaker 1: over year decreases in rents, right just as like home 166 00:07:25,880 --> 00:07:28,800 Speaker 1: prices are going up, um, rents are going down in 167 00:07:28,840 --> 00:07:31,160 Speaker 1: many places. So We'll link to a helpful resources in 168 00:07:31,200 --> 00:07:34,200 Speaker 1: our show notes from apartments guide dot com. It really 169 00:07:34,200 --> 00:07:36,360 Speaker 1: just all depends on where you live. So some cities 170 00:07:36,360 --> 00:07:40,520 Speaker 1: like San Antonio or Jersey City have seen rental drops 171 00:07:40,960 --> 00:07:44,360 Speaker 1: in monthly rent amount by something like fifteen percent. Other 172 00:07:44,400 --> 00:07:48,200 Speaker 1: cities even more, like Long Beach, California, Manhattan, Chess Peak, Virginia, 173 00:07:48,480 --> 00:07:51,560 Speaker 1: have seen you know, decreases in monthly rent amounts, uh, 174 00:07:51,720 --> 00:07:54,600 Speaker 1: closer to thirty Rents in San Francisco down even more, 175 00:07:54,640 --> 00:07:56,320 Speaker 1: even more than that. Yeah, So when you're you know, 176 00:07:56,440 --> 00:07:59,000 Speaker 1: so much of it too is location dependent, there are 177 00:07:59,000 --> 00:08:02,600 Speaker 1: certain places or you know, rents have dropped enough that 178 00:08:02,720 --> 00:08:05,680 Speaker 1: it makes even more sense to continue renting as opposed 179 00:08:05,680 --> 00:08:07,240 Speaker 1: to trying to buy a home there. Yeah, and those 180 00:08:07,240 --> 00:08:10,160 Speaker 1: are average rents for for one bedroom apartments. But that's 181 00:08:10,200 --> 00:08:13,080 Speaker 1: another reason why that index is so off kilter right now, 182 00:08:13,120 --> 00:08:15,600 Speaker 1: because not only are we seeing housing prices skyrocket, but 183 00:08:15,680 --> 00:08:18,760 Speaker 1: we're seeing some decreases when it comes to specific markets 184 00:08:19,040 --> 00:08:22,480 Speaker 1: and rents as well. So Joel, speaking of rising prices, 185 00:08:22,760 --> 00:08:26,320 Speaker 1: the inflation rate just hit a nearly thirteen year high. 186 00:08:26,600 --> 00:08:29,280 Speaker 1: Consumer index prices rose more than five or cent from 187 00:08:29,320 --> 00:08:31,160 Speaker 1: a year ago. But we feel that it's not all 188 00:08:31,560 --> 00:08:34,439 Speaker 1: doom and gloom. This doesn't necessarily mean that inflation is 189 00:08:34,480 --> 00:08:37,000 Speaker 1: spiraling out of control, and so yeah, not to get 190 00:08:37,040 --> 00:08:39,720 Speaker 1: too nerdy with inflation, but a large reason we're seeing 191 00:08:39,800 --> 00:08:42,920 Speaker 1: higher numbers now is because inflation is based on numbers 192 00:08:42,960 --> 00:08:45,640 Speaker 1: from twelve months ago, and so with prices having plummeted 193 00:08:45,720 --> 00:08:47,800 Speaker 1: during May of last year, that's a big reason why 194 00:08:47,800 --> 00:08:49,959 Speaker 1: we're seeing these increases now, and so we're not too 195 00:08:49,960 --> 00:08:52,960 Speaker 1: concerned just yet, but this will likely impact your money now, 196 00:08:53,200 --> 00:08:55,800 Speaker 1: at least in the short term. Prices have used cars 197 00:08:55,800 --> 00:08:58,840 Speaker 1: and trucks leaped seven point three percent in just one month, 198 00:08:58,840 --> 00:09:02,240 Speaker 1: which is pretty huge. Uh and half of small businesses 199 00:09:02,280 --> 00:09:06,160 Speaker 1: recently surveyed said that they raise prices last month in 200 00:09:06,160 --> 00:09:08,720 Speaker 1: the month of May. So we feel that inflation is 201 00:09:08,800 --> 00:09:11,040 Speaker 1: here in a real way, even if we don't know 202 00:09:11,080 --> 00:09:13,240 Speaker 1: if it's going to be sustained inflation, we are still 203 00:09:13,280 --> 00:09:15,719 Speaker 1: seeing the impacts on you know, what we're able to 204 00:09:15,760 --> 00:09:17,880 Speaker 1: purchase now with the money that we have. And here's 205 00:09:17,880 --> 00:09:20,280 Speaker 1: how you know inflation is real. Matt I heard the 206 00:09:20,320 --> 00:09:24,360 Speaker 1: CEO of Costco say that the rotistory chicken price might 207 00:09:24,440 --> 00:09:26,079 Speaker 1: be going up and that has stayed the same for 208 00:09:26,200 --> 00:09:29,000 Speaker 1: quite some time, so you might no longer be able 209 00:09:29,040 --> 00:09:31,480 Speaker 1: to get that four dollar ninety nine rotistory chicken rotistory 210 00:09:31,559 --> 00:09:35,200 Speaker 1: chicken index. That's the one I pay attention to at least. Okay, 211 00:09:35,240 --> 00:09:36,960 Speaker 1: we have to create our own index, like a craft 212 00:09:37,000 --> 00:09:39,000 Speaker 1: beer maybe index or something like that, Like when we 213 00:09:39,080 --> 00:09:41,680 Speaker 1: tracked the price of three different you know, breweries or 214 00:09:41,720 --> 00:09:43,319 Speaker 1: something like that. We'll say, man, some of those four 215 00:09:43,360 --> 00:09:45,920 Speaker 1: packs of Delicious hip as they're they've gotten off in 216 00:09:45,960 --> 00:09:49,520 Speaker 1: price too. Yeah, so it's not anymore, you know, it's not. 217 00:09:50,040 --> 00:09:52,240 Speaker 1: And to Matt, you know, a lot of retailers have 218 00:09:52,320 --> 00:09:55,760 Speaker 1: actually been reluctant to raise prices, but they've still had 219 00:09:55,800 --> 00:09:58,839 Speaker 1: to find a way to remain profitable. So there's some 220 00:09:59,120 --> 00:10:02,400 Speaker 1: maybe sneaky alternative methods that some of these companies are 221 00:10:02,480 --> 00:10:06,319 Speaker 1: finding to deal with inflation without raising their prices. And 222 00:10:06,880 --> 00:10:10,160 Speaker 1: the biggest way is to put things in smaller packages. Um, 223 00:10:10,280 --> 00:10:13,000 Speaker 1: so instead of a four pack of sixteen noun scans, 224 00:10:13,040 --> 00:10:14,719 Speaker 1: you get that four pack of twelve ounce scans, but 225 00:10:14,800 --> 00:10:16,839 Speaker 1: the price remains the same, and uh, that would be 226 00:10:16,920 --> 00:10:20,400 Speaker 1: called shrink flation. So basically, for instance, your your next 227 00:10:20,480 --> 00:10:22,920 Speaker 1: roll of toilet paper or paper towels might cost the 228 00:10:23,040 --> 00:10:25,120 Speaker 1: same amount that it did the last time you were 229 00:10:25,120 --> 00:10:27,679 Speaker 1: in the store, but that role is now likely to 230 00:10:27,760 --> 00:10:30,480 Speaker 1: have fewer sheets on it. You can actually be getting 231 00:10:30,480 --> 00:10:33,400 Speaker 1: as much as thirty percent less product then you're used 232 00:10:33,440 --> 00:10:37,079 Speaker 1: to getting UM. And so for you, maybe as the 233 00:10:37,280 --> 00:10:40,599 Speaker 1: non discerning consumer, just picking up the package like you 234 00:10:40,679 --> 00:10:43,959 Speaker 1: normally would, you don't realize you're getting less t P 235 00:10:44,360 --> 00:10:46,520 Speaker 1: than you were the last time you bought it, right, Yeah, So, 236 00:10:46,640 --> 00:10:48,520 Speaker 1: so I think it's important for folks to pay attention 237 00:10:48,960 --> 00:10:52,199 Speaker 1: when you're shopping for like pet food, ice cream, um, 238 00:10:52,760 --> 00:10:55,520 Speaker 1: paper goods, really anything right now because this is happening 239 00:10:55,559 --> 00:10:57,640 Speaker 1: across the board, and I feel like we're going to 240 00:10:57,720 --> 00:11:00,240 Speaker 1: see a whole lot more of the shrink flation actic 241 00:11:00,400 --> 00:11:02,679 Speaker 1: in the coming months, matt As, a lot of these 242 00:11:02,720 --> 00:11:04,920 Speaker 1: companies have to figure out how they pass on some 243 00:11:05,040 --> 00:11:08,760 Speaker 1: of their increased costs to to their customers without trying 244 00:11:08,840 --> 00:11:12,200 Speaker 1: to telegraph it and shocking us UM in the process. Yeah, 245 00:11:12,200 --> 00:11:13,679 Speaker 1: that's the thing they're not letting us know. They're not 246 00:11:13,760 --> 00:11:16,120 Speaker 1: advertising right where it's like a bag of chips, where 247 00:11:16,120 --> 00:11:18,679 Speaker 1: it's like now with ten percent more air, which I 248 00:11:18,760 --> 00:11:20,560 Speaker 1: swear is what they always do, right, it's like only 249 00:11:20,600 --> 00:11:22,600 Speaker 1: half the bag is full of right. But the reason 250 00:11:22,720 --> 00:11:24,040 Speaker 1: I mean that part of the reason that they do 251 00:11:24,120 --> 00:11:26,160 Speaker 1: this as well, that marketers do this is because like 252 00:11:26,240 --> 00:11:29,240 Speaker 1: we often don't pay attention to weights, were price sensitive. 253 00:11:29,280 --> 00:11:31,880 Speaker 1: We're not content sensitive, and so we know what a 254 00:11:32,080 --> 00:11:33,920 Speaker 1: pack of toilet papers should cost, or what a bag 255 00:11:34,000 --> 00:11:36,480 Speaker 1: of chips should cost, but we're not maybe totally aware 256 00:11:36,480 --> 00:11:38,160 Speaker 1: of like how many sheets or or you know, how 257 00:11:38,240 --> 00:11:41,200 Speaker 1: much weight of chips is actually contained within that package. 258 00:11:41,200 --> 00:11:43,839 Speaker 1: We're more price sensitive than anything else. Uh, and do 259 00:11:44,080 --> 00:11:47,080 Speaker 1: another attempt to soften the blow of inflation, companies are 260 00:11:47,120 --> 00:11:50,240 Speaker 1: using some really weird jargon to cover up the fact 261 00:11:50,440 --> 00:11:53,480 Speaker 1: that they are raising prices. The l A Times had 262 00:11:53,480 --> 00:11:56,640 Speaker 1: a piece about some of the language that companies are using, uh, 263 00:11:56,720 --> 00:11:59,800 Speaker 1: including phrases like they are instead of raising prices, they're 264 00:11:59,800 --> 00:12:02,880 Speaker 1: being active with their pricing, or they're calling it strategic 265 00:12:02,920 --> 00:12:06,679 Speaker 1: revenue management as well as elevating our pricing ecosystem. That's 266 00:12:06,720 --> 00:12:09,400 Speaker 1: my favorite. That's why. And that one's from from Lows, 267 00:12:10,280 --> 00:12:12,840 Speaker 1: the home improvement store. You're gonna be seeing probably more 268 00:12:12,960 --> 00:12:15,959 Speaker 1: weird phrases like this from businesses that don't want you 269 00:12:16,160 --> 00:12:18,520 Speaker 1: to be aware to the fact, you know that the 270 00:12:18,600 --> 00:12:20,719 Speaker 1: price likes that they're having to institute that that is 271 00:12:20,720 --> 00:12:23,720 Speaker 1: actually affecting your ability to purchase goods, so you can 272 00:12:23,760 --> 00:12:26,360 Speaker 1: expect to pay more in the coming months. Or maybe 273 00:12:26,400 --> 00:12:29,880 Speaker 1: a better path to take is to proactively reevaluate what 274 00:12:29,960 --> 00:12:31,880 Speaker 1: you're spending your money on. Maybe there's some items that 275 00:12:31,920 --> 00:12:33,760 Speaker 1: you can completely cut from your life as you see 276 00:12:33,800 --> 00:12:37,280 Speaker 1: these prices go up. Yeah, they're definitely ways to combat 277 00:12:37,400 --> 00:12:39,719 Speaker 1: inflation in your life. But at the same time, you 278 00:12:39,760 --> 00:12:42,800 Speaker 1: have to be a savvy consumer realizing and at least 279 00:12:42,840 --> 00:12:45,240 Speaker 1: have the knowledge that some of these package sizes are shrinking, 280 00:12:45,480 --> 00:12:47,560 Speaker 1: And that's at least part of the battle is knowing 281 00:12:47,600 --> 00:12:49,400 Speaker 1: that it's happening, so that you can be aware when 282 00:12:49,480 --> 00:12:51,600 Speaker 1: you're shopping. Um and and that part of the reason 283 00:12:51,679 --> 00:12:53,559 Speaker 1: too that inflation is becoming more and more of a 284 00:12:53,640 --> 00:12:56,040 Speaker 1: problem is that spending is back in a real way. 285 00:12:56,120 --> 00:12:58,679 Speaker 1: You know, just all of us are spending more of 286 00:12:58,720 --> 00:13:01,520 Speaker 1: our dollars right now. As the economy continues to reopen, 287 00:13:01,600 --> 00:13:03,840 Speaker 1: and it's doing so quickly, there's just like a lot 288 00:13:03,920 --> 00:13:07,320 Speaker 1: of pent up demand that's being unfurled from everyday folks 289 00:13:07,440 --> 00:13:10,480 Speaker 1: like you and me and our listeners and uh, A 290 00:13:10,559 --> 00:13:13,160 Speaker 1: recent survey actually from credit cards dot Com found that 291 00:13:13,320 --> 00:13:16,360 Speaker 1: almost half of Americans are willing to take on debt 292 00:13:16,679 --> 00:13:19,599 Speaker 1: during this post pandemic spending folks are chomping at the 293 00:13:19,760 --> 00:13:21,920 Speaker 1: bit to like get back out there and spend money. 294 00:13:21,960 --> 00:13:24,040 Speaker 1: And they're like, I honestly don't care. I'm going to 295 00:13:24,080 --> 00:13:26,640 Speaker 1: put it on plast and so for you and I, 296 00:13:26,920 --> 00:13:29,880 Speaker 1: for our perspective, that's not good. Um, we're all about 297 00:13:30,000 --> 00:13:31,839 Speaker 1: spending some of your money on things that matter to 298 00:13:31,960 --> 00:13:34,120 Speaker 1: you in the here and now, and spending you know, 299 00:13:34,400 --> 00:13:37,960 Speaker 1: post pandemic spending sprees are tending people to spend more 300 00:13:38,120 --> 00:13:40,920 Speaker 1: than they should, more than they actually can. And you know, 301 00:13:41,520 --> 00:13:43,679 Speaker 1: our obviously our take on this show is that being 302 00:13:43,720 --> 00:13:46,640 Speaker 1: good with your personal finances it's not all about deprivation. 303 00:13:46,760 --> 00:13:49,000 Speaker 1: I feel like a lot of the personal finance movement 304 00:13:49,040 --> 00:13:50,920 Speaker 1: over the last few decades has kind of had that 305 00:13:50,960 --> 00:13:52,719 Speaker 1: ring to it. It's like, you know what, if you 306 00:13:53,120 --> 00:13:55,320 Speaker 1: don't spend money on anything you care about, you can 307 00:13:55,360 --> 00:13:57,599 Speaker 1: be financially healthy. And that's not good either, right, But 308 00:13:58,080 --> 00:14:01,160 Speaker 1: going into debt in order to spend more than you 309 00:14:01,200 --> 00:14:04,000 Speaker 1: should is just a bad move and it's gonna affect 310 00:14:04,040 --> 00:14:07,320 Speaker 1: you negatively. For months, potentially years to come. Credit card 311 00:14:07,440 --> 00:14:10,319 Speaker 1: debt tends to stick with people like glue. It's easier 312 00:14:10,360 --> 00:14:11,839 Speaker 1: to get into it than it is to get out 313 00:14:11,840 --> 00:14:13,480 Speaker 1: of it, and that's true. Yeah, and you know this 314 00:14:13,640 --> 00:14:16,160 Speaker 1: is just a reminder too that it's okay and often 315 00:14:16,240 --> 00:14:18,640 Speaker 1: it's even better to put your purchases on a credit card, 316 00:14:18,920 --> 00:14:21,520 Speaker 1: but not if you can't pay the balance on time 317 00:14:21,720 --> 00:14:24,800 Speaker 1: and in full. At the end of every building cycle, 318 00:14:25,080 --> 00:14:27,760 Speaker 1: credit card debt has continued to fall in a pretty 319 00:14:27,800 --> 00:14:31,560 Speaker 1: major way as folks curb their spending and dedicated their 320 00:14:31,600 --> 00:14:34,800 Speaker 1: stimulus money to towards debt pay down. And you know, 321 00:14:34,840 --> 00:14:36,840 Speaker 1: we want to see that trend continue. But if you 322 00:14:37,000 --> 00:14:39,600 Speaker 1: have the itch to spend, consider finding a way to, 323 00:14:39,960 --> 00:14:41,920 Speaker 1: you know, maybe make some extra money on the side 324 00:14:41,960 --> 00:14:43,920 Speaker 1: in order to to buy that new item, that new 325 00:14:43,960 --> 00:14:46,720 Speaker 1: toy that you want, or to to help you to 326 00:14:46,800 --> 00:14:48,880 Speaker 1: afford maybe the trip that you're hoping to take, or 327 00:14:48,960 --> 00:14:52,160 Speaker 1: maybe you want to purchase that boogie pool membership. That's fine, 328 00:14:52,480 --> 00:14:54,320 Speaker 1: but just make sure that you're planning towards it. You 329 00:14:54,520 --> 00:14:56,360 Speaker 1: just don't stick it on the credit card not knowing 330 00:14:56,400 --> 00:14:58,480 Speaker 1: how you're gonna pay it off exactly. Yeah, and so yeah, 331 00:14:58,520 --> 00:15:00,680 Speaker 1: we talked about this a little more in depth in 332 00:15:00,760 --> 00:15:04,320 Speaker 1: episode three fifty because the temptation to spend it's getting 333 00:15:04,480 --> 00:15:07,600 Speaker 1: legit real right now for a lot of folks, no doubt. 334 00:15:07,680 --> 00:15:09,280 Speaker 1: And just let let Matt and I act like the 335 00:15:09,520 --> 00:15:12,240 Speaker 1: angel on your shoulder, probably the devil on the other 336 00:15:12,240 --> 00:15:13,720 Speaker 1: shoulders trying to get you to spend, I don't know, 337 00:15:13,840 --> 00:15:16,360 Speaker 1: put that plastic back in your wallet. Alright, Well, we've 338 00:15:16,400 --> 00:15:19,240 Speaker 1: got more to get to on this episode, including we're 339 00:15:19,280 --> 00:15:21,560 Speaker 1: gonna talk about free cell phones, really nice cellphones. We're 340 00:15:21,560 --> 00:15:24,000 Speaker 1: gonna get to that and more right after this break. 341 00:15:33,160 --> 00:15:34,800 Speaker 1: All right, we are back and this is our Friday 342 00:15:34,840 --> 00:15:37,040 Speaker 1: flight where we talked about different financial stories that we 343 00:15:37,120 --> 00:15:39,920 Speaker 1: came across and how they affect your money. And Joel, 344 00:15:40,240 --> 00:15:42,040 Speaker 1: it's uh, it's right after the breaks. That means that 345 00:15:42,120 --> 00:15:45,440 Speaker 1: it's time for the ludicrous headline of the week week. 346 00:15:46,400 --> 00:15:49,520 Speaker 1: Very nice. This one comes from market Watch and the 347 00:15:49,560 --> 00:15:53,320 Speaker 1: headline goes, your four win k balances aren't all yours 348 00:15:53,880 --> 00:15:56,160 Speaker 1: and be shaking them on boots. Yeah, definitely had a 349 00:15:56,240 --> 00:15:59,280 Speaker 1: kind of a clickbait element where you're like, really, let 350 00:15:59,360 --> 00:16:00,920 Speaker 1: me figure out why, And I'm sure a lot of 351 00:16:00,960 --> 00:16:03,200 Speaker 1: folks actually did click it because of that scary headline. 352 00:16:03,440 --> 00:16:04,880 Speaker 1: H yeah, what do you mean that my four one 353 00:16:04,920 --> 00:16:07,920 Speaker 1: K money isn't all mine? But the gist of the article, though, 354 00:16:07,960 --> 00:16:10,240 Speaker 1: is that the money that you've invested in a traditional 355 00:16:10,360 --> 00:16:13,480 Speaker 1: four one K, it'll be subject to taxation when you 356 00:16:13,520 --> 00:16:15,920 Speaker 1: start taking the money out in retirement. So, for instance, 357 00:16:16,000 --> 00:16:17,720 Speaker 1: let's say you're aiming to have a million dollars by 358 00:16:17,760 --> 00:16:20,960 Speaker 1: the time you retire. No, that's depending on your annual 359 00:16:21,080 --> 00:16:23,200 Speaker 1: income and retirement A chunk of the money that you 360 00:16:23,280 --> 00:16:25,640 Speaker 1: take out each year will be taxed. It's helpful for 361 00:16:25,720 --> 00:16:28,520 Speaker 1: planning purposes to realize that not all of that retirement 362 00:16:28,560 --> 00:16:31,040 Speaker 1: money is is created equal. So I guess I mean, 363 00:16:31,120 --> 00:16:33,960 Speaker 1: technically this is an incorrect headline, right, because all the 364 00:16:34,000 --> 00:16:36,200 Speaker 1: money in your four one K is yours, but the 365 00:16:36,440 --> 00:16:38,200 Speaker 1: the I R S just wants you to pay taxes 366 00:16:38,320 --> 00:16:40,240 Speaker 1: on that money. Yeah, but if you have a million 367 00:16:40,280 --> 00:16:42,920 Speaker 1: dollars in let's say RATH four one K money or 368 00:16:43,000 --> 00:16:46,560 Speaker 1: roth ira a money, it's a very different sum of money. 369 00:16:46,800 --> 00:16:48,720 Speaker 1: Then let's say having a million dollars in your traditional 370 00:16:48,760 --> 00:16:51,480 Speaker 1: four one Technically it is also still all yours, but 371 00:16:51,560 --> 00:16:53,320 Speaker 1: the government doesn't want you to pay taxes. Have no 372 00:16:53,400 --> 00:16:55,560 Speaker 1: claim on that money because you have already paid the taxes. 373 00:16:55,760 --> 00:16:58,320 Speaker 1: So yeah, it is helpful from a behavioral standpoint to 374 00:16:58,600 --> 00:17:01,760 Speaker 1: realize that there is a big difference between pre tax 375 00:17:01,840 --> 00:17:04,520 Speaker 1: and post tax funds in in your retirement buckets. And 376 00:17:04,600 --> 00:17:06,560 Speaker 1: so this is why if you do have access to 377 00:17:06,720 --> 00:17:09,120 Speaker 1: a RATH four O one K through your employer, it's 378 00:17:09,119 --> 00:17:11,760 Speaker 1: a great idea to be putting your money there for 379 00:17:12,200 --> 00:17:15,520 Speaker 1: those tax diversification purposes. And if you don't have access, 380 00:17:15,560 --> 00:17:17,560 Speaker 1: if maybe you only have a traditional four one K 381 00:17:17,880 --> 00:17:20,200 Speaker 1: or you're working for yourself, well a RATH I RA 382 00:17:20,440 --> 00:17:24,320 Speaker 1: can can help provide some helpful tax diversification to We 383 00:17:24,480 --> 00:17:26,600 Speaker 1: really don't know where tax rates are going to be 384 00:17:26,680 --> 00:17:29,479 Speaker 1: in twenty years, but it's highly likely that they're going 385 00:17:29,520 --> 00:17:31,359 Speaker 1: to be higher than they are now. I mean, the 386 00:17:31,400 --> 00:17:34,800 Speaker 1: current tax law is set to a sunset in, meaning 387 00:17:35,119 --> 00:17:37,680 Speaker 1: tax rates are going up um at that point in time. 388 00:17:37,760 --> 00:17:40,480 Speaker 1: So yeah, that's just another reason that we are fans 389 00:17:40,600 --> 00:17:43,080 Speaker 1: of paying the tax now when you can, and RATH 390 00:17:43,160 --> 00:17:44,879 Speaker 1: accounts allow you to do that. They allow you to 391 00:17:44,960 --> 00:17:49,200 Speaker 1: have you know more certainty about your tax situation going forward. 392 00:17:49,359 --> 00:17:51,960 Speaker 1: That's right, And speaking of retirement accounts, the Wall Street 393 00:17:52,000 --> 00:17:55,520 Speaker 1: Journal reports that crypto it's coming to some four win 394 00:17:55,600 --> 00:17:58,680 Speaker 1: K plans soon. A four one K provider called for 395 00:17:58,960 --> 00:18:02,879 Speaker 1: us all provide retirement plans to around four companies, and 396 00:18:02,920 --> 00:18:05,959 Speaker 1: they just partnered with coin base to allow workers at 397 00:18:06,000 --> 00:18:08,840 Speaker 1: those companies to invest in cryptocurrency and slade of their 398 00:18:08,880 --> 00:18:12,680 Speaker 1: workplace retirement accounts. Fortunately, employees won't be allowed to invest 399 00:18:12,720 --> 00:18:15,960 Speaker 1: more than five percent of the retirement money within crypto. 400 00:18:16,359 --> 00:18:18,520 Speaker 1: That's a good thing. But now that this trend is 401 00:18:18,600 --> 00:18:20,560 Speaker 1: likely to continue, so you might even see this apply 402 00:18:20,680 --> 00:18:23,080 Speaker 1: to your four olne k where you work, and you 403 00:18:23,160 --> 00:18:25,240 Speaker 1: know it's up to you who has to be savvy. 404 00:18:25,320 --> 00:18:29,000 Speaker 1: We're not rigidly against all forms of crypto investing, but 405 00:18:29,160 --> 00:18:31,439 Speaker 1: we do think for a lot of people, the idea 406 00:18:31,520 --> 00:18:34,720 Speaker 1: of putting money within your retirement account in crypto may 407 00:18:34,800 --> 00:18:36,720 Speaker 1: not be the best move probably for a lot of folks. 408 00:18:36,840 --> 00:18:38,760 Speaker 1: Just the volatility that you're gonna see there might be 409 00:18:38,920 --> 00:18:41,160 Speaker 1: too much for a lot of folks to stomach. Yeah, Matt, 410 00:18:41,160 --> 00:18:44,520 Speaker 1: And like you said, um, we're not completely against people 411 00:18:44,680 --> 00:18:48,360 Speaker 1: putting a small amount of their overall investments in crypto. 412 00:18:48,440 --> 00:18:50,320 Speaker 1: I just can't get past the idea of having it 413 00:18:50,400 --> 00:18:52,359 Speaker 1: in your four OL one k though UM. I would 414 00:18:52,440 --> 00:18:56,800 Speaker 1: rather see people dedicate their entire um retirement account holdings 415 00:18:57,080 --> 00:19:01,400 Speaker 1: towards more traditional, proven investment methods like total stock market 416 00:19:01,440 --> 00:19:04,960 Speaker 1: funds or target date retirement funds. That's a better place 417 00:19:05,040 --> 00:19:07,720 Speaker 1: to put your money that you're saving for the future. 418 00:19:07,920 --> 00:19:09,600 Speaker 1: And I think you know, you can take a flyer 419 00:19:09,920 --> 00:19:13,440 Speaker 1: with a small amount of money on hand to invest 420 00:19:13,480 --> 00:19:15,720 Speaker 1: in crypto on your own outside of that retirement plan. 421 00:19:15,840 --> 00:19:19,000 Speaker 1: But I see this as potentially a negative step where 422 00:19:19,080 --> 00:19:21,280 Speaker 1: more and more companies might start allowing folks to invest 423 00:19:21,320 --> 00:19:23,520 Speaker 1: in crypto, and I could see it getting out of 424 00:19:23,560 --> 00:19:26,119 Speaker 1: hand pretty quickly for a lot of people, especially for 425 00:19:26,200 --> 00:19:28,480 Speaker 1: other companies. Don't put a cap on the amount that 426 00:19:28,520 --> 00:19:30,960 Speaker 1: people can invest in crypto. It has the potential to 427 00:19:31,000 --> 00:19:33,720 Speaker 1: wipe out a lot of people's funds that they're investing 428 00:19:33,760 --> 00:19:37,560 Speaker 1: in saving for retirements UM, and that could be disastrous. Yeah. Yeah, 429 00:19:37,560 --> 00:19:39,159 Speaker 1: I do like seeing that five percent because I mean, 430 00:19:39,160 --> 00:19:40,560 Speaker 1: that's what we talked about when when it comes to 431 00:19:40,680 --> 00:19:43,760 Speaker 1: just your overall portfolio value of investing five percent, but 432 00:19:43,840 --> 00:19:47,280 Speaker 1: what you're saying is basically above and beyond that amounts, uh, 433 00:19:47,480 --> 00:19:49,159 Speaker 1: then it's okay to put some of that extra in 434 00:19:49,200 --> 00:19:51,520 Speaker 1: crypto and do some speculation. Yeah, I want to see 435 00:19:51,560 --> 00:19:56,480 Speaker 1: you dominating your traditional retirement savings in proven methods first 436 00:19:56,560 --> 00:19:59,360 Speaker 1: before you take on any sort of crypto investing. Matt. 437 00:19:59,400 --> 00:20:01,840 Speaker 1: Let's let's move on. Let's talk about cell phones for 438 00:20:01,880 --> 00:20:04,480 Speaker 1: a second. That the giant cell phone companies are actually 439 00:20:04,560 --> 00:20:08,600 Speaker 1: offering free or massively discounted phones these days. And you've 440 00:20:08,680 --> 00:20:13,800 Speaker 1: likely already seen advertisements touting free iPhones or massively subsidized 441 00:20:13,880 --> 00:20:17,160 Speaker 1: Samsung phones or other Android phones. Um, but the question 442 00:20:17,359 --> 00:20:20,240 Speaker 1: is is this a deal and uh should you bite? 443 00:20:20,359 --> 00:20:23,439 Speaker 1: Should you change cell phone providers in order to score 444 00:20:23,920 --> 00:20:27,560 Speaker 1: just a ridiculously good deal on a new phone? Well, 445 00:20:27,920 --> 00:20:30,920 Speaker 1: often to get that deal it requires trading in another phone. 446 00:20:31,200 --> 00:20:33,760 Speaker 1: But the phone that you're trading in likely still functions 447 00:20:33,840 --> 00:20:36,080 Speaker 1: just fine, and you could and probably should still be 448 00:20:36,200 --> 00:20:39,640 Speaker 1: using it. So if that strike one second, you're making 449 00:20:39,680 --> 00:20:42,439 Speaker 1: a long term commitment to a big company that charges 450 00:20:42,600 --> 00:20:45,199 Speaker 1: higher prices than a whole lot of the companies at 451 00:20:45,240 --> 00:20:48,119 Speaker 1: war fans of that strike to, you're paying a bigger 452 00:20:48,160 --> 00:20:50,840 Speaker 1: monthly fee. And then some of the agreements actually to 453 00:20:51,400 --> 00:20:53,720 Speaker 1: uh to in order to get that massively discount of phone, 454 00:20:54,040 --> 00:20:56,040 Speaker 1: they don't allow you to choose whichever plane need. Like 455 00:20:56,320 --> 00:20:59,080 Speaker 1: they force you to be on the most expensive unlimited plan. 456 00:20:59,320 --> 00:21:02,399 Speaker 1: We've talked about how most people can get by not 457 00:21:02,560 --> 00:21:04,800 Speaker 1: being on an unlimited plan, but just having a plan 458 00:21:04,920 --> 00:21:07,000 Speaker 1: with a couple of gigs of data every month, you'll 459 00:21:07,040 --> 00:21:10,119 Speaker 1: be fine. Um. So yeah, that's strike three. Um, we 460 00:21:10,119 --> 00:21:13,000 Speaker 1: would say, don't buy the hype of these commercials, those 461 00:21:13,280 --> 00:21:16,639 Speaker 1: free phones that they're touting, or massively subsidized phones. Getting 462 00:21:16,680 --> 00:21:19,359 Speaker 1: that new iPhone for a couple hundred dollars as opposed 463 00:21:19,400 --> 00:21:21,399 Speaker 1: to the full list price, which is what like a 464 00:21:21,480 --> 00:21:23,920 Speaker 1: thousand dollars, it's just not real. They're finding a way 465 00:21:23,960 --> 00:21:26,120 Speaker 1: to recoup that free phone they're giving you, and it's 466 00:21:26,119 --> 00:21:29,200 Speaker 1: coming to you at the expense of much higher monthly 467 00:21:29,760 --> 00:21:32,320 Speaker 1: rates for cell phone service. Yeah. Well, and and maybe 468 00:21:32,359 --> 00:21:34,240 Speaker 1: like strike one and a half, you talked about having 469 00:21:34,280 --> 00:21:38,440 Speaker 1: to trade in those those phones that are perfectly you know, operable. Still, well, 470 00:21:38,640 --> 00:21:40,760 Speaker 1: you're also going to be getting less money for those 471 00:21:40,800 --> 00:21:42,959 Speaker 1: things as you're trading them as opposed to selling them 472 00:21:43,000 --> 00:21:46,760 Speaker 1: on the open market. So maybe strike four than the 473 00:21:47,000 --> 00:21:50,280 Speaker 1: baseball analogy doesn't really right. I'll let you're talking about bowling. 474 00:21:50,760 --> 00:21:53,200 Speaker 1: You can get how many tin strikes. I don't have 475 00:21:53,280 --> 00:21:55,320 Speaker 1: many frames there are in bowling, I forget there are, 476 00:21:55,359 --> 00:21:57,280 Speaker 1: but then I think in the tenth frame you get three, right, 477 00:21:57,480 --> 00:22:00,240 Speaker 1: what is there would be? I don't. Yeah, spent a 478 00:22:00,240 --> 00:22:03,440 Speaker 1: long time since since i've bold, but uh, but yeah, 479 00:22:03,440 --> 00:22:05,879 Speaker 1: you're you're talking about those higher monthly payments. I mean 480 00:22:05,920 --> 00:22:08,480 Speaker 1: companies like Verizon and A T and T they love 481 00:22:08,680 --> 00:22:11,840 Speaker 1: keeping you, you know, locked in, uh to those long 482 00:22:12,080 --> 00:22:14,399 Speaker 1: term commitments where you're paying every single month. They are 483 00:22:14,520 --> 00:22:17,520 Speaker 1: essentially trying to bring back that outdated contract model that 484 00:22:17,640 --> 00:22:20,320 Speaker 1: was pretty much awful for for consumers that was real popular, 485 00:22:20,400 --> 00:22:22,879 Speaker 1: you know, like ten years ago. It feels great, uh, 486 00:22:23,080 --> 00:22:24,840 Speaker 1: you know on day one that you get your free phone, 487 00:22:25,160 --> 00:22:27,600 Speaker 1: but yeah, not so great for the months after that 488 00:22:27,840 --> 00:22:30,119 Speaker 1: that follow when you get your monthly bill for service 489 00:22:30,200 --> 00:22:32,560 Speaker 1: in your inbox. Uh. It's it's a way better move 490 00:22:32,640 --> 00:22:34,760 Speaker 1: to buy your own phone and buy something you can 491 00:22:34,840 --> 00:22:37,359 Speaker 1: afford and then get your service with one of the 492 00:22:37,440 --> 00:22:40,720 Speaker 1: discount cell service providers that we love. We've actually got 493 00:22:40,760 --> 00:22:43,160 Speaker 1: a good guide up on the site that will help 494 00:22:43,200 --> 00:22:46,159 Speaker 1: you to choose some of those different carriers to go with. 495 00:22:46,280 --> 00:22:48,280 Speaker 1: Maybe these carriers that you've you've heard the name you've 496 00:22:48,280 --> 00:22:50,280 Speaker 1: you've even heard us talk about them before. You and 497 00:22:50,320 --> 00:22:52,679 Speaker 1: Aigel were both on Mint Mobile. But we've got an 498 00:22:52,760 --> 00:22:54,400 Speaker 1: article up there that can kind of guide you through 499 00:22:54,480 --> 00:22:57,239 Speaker 1: some of those mobile virtual network operators where you can 500 00:22:57,240 --> 00:22:59,280 Speaker 1: get your cell service at a discount. Yeah, and depending 501 00:22:59,320 --> 00:23:01,879 Speaker 1: on how you use your phone, how much you travel, um, 502 00:23:02,119 --> 00:23:04,399 Speaker 1: you know, whether you're at home or at an office 503 00:23:04,480 --> 00:23:06,720 Speaker 1: most of the day, that's going to impact maybe which 504 00:23:06,760 --> 00:23:08,440 Speaker 1: plan is best for you and which provider is best 505 00:23:08,480 --> 00:23:10,440 Speaker 1: for you. And so yeah, I tried to kind of 506 00:23:10,520 --> 00:23:12,280 Speaker 1: take all that into consideration and help point people in 507 00:23:12,320 --> 00:23:14,280 Speaker 1: the right direction based on how they use their phone. 508 00:23:14,520 --> 00:23:16,080 Speaker 1: So yeah, well we'll have that article up in the 509 00:23:16,119 --> 00:23:18,280 Speaker 1: show notes. Um, Matt, let's get to one last story. 510 00:23:18,359 --> 00:23:20,359 Speaker 1: Let's talk about bank fees for a second. And actually, 511 00:23:20,680 --> 00:23:23,120 Speaker 1: you know what, when when banks institute a fee, it's 512 00:23:23,760 --> 00:23:25,960 Speaker 1: it's not very often that they take that fee away, 513 00:23:26,440 --> 00:23:28,760 Speaker 1: and so we wanted to sell right style creep a 514 00:23:28,800 --> 00:23:30,680 Speaker 1: little bit. It's like it's really tough to walk that 515 00:23:30,760 --> 00:23:33,440 Speaker 1: back exactly. Yeah, same thing with banks, and so we 516 00:23:33,520 --> 00:23:37,000 Speaker 1: wanted to celebrate a little bit that one bank actually 517 00:23:37,440 --> 00:23:40,600 Speaker 1: has eliminated a dump fee. And so yeah, we we 518 00:23:40,720 --> 00:23:44,879 Speaker 1: hate these dump fees. Ally Bank has dropped overdraft charges 519 00:23:45,359 --> 00:23:48,360 Speaker 1: and this is really cool because overdraft charges are really 520 00:23:48,400 --> 00:23:51,880 Speaker 1: expensive if they add up. Um. And they actually had 521 00:23:51,920 --> 00:23:55,600 Speaker 1: waived these fees in March to help folks out, you 522 00:23:55,640 --> 00:23:57,440 Speaker 1: know what. COVID was running them up and we weren't 523 00:23:57,520 --> 00:23:59,280 Speaker 1: kind of sure where things were headed to help their 524 00:23:59,320 --> 00:24:01,680 Speaker 1: customers out. But it's really cool to see that Ally 525 00:24:01,800 --> 00:24:06,360 Speaker 1: has nixed overdraft fees for good altogether, never to bring 526 00:24:06,440 --> 00:24:08,719 Speaker 1: them back. Um. And over draft fees have a massive 527 00:24:08,800 --> 00:24:11,840 Speaker 1: impact on the bottom line for a lot of banks. Actually, 528 00:24:11,960 --> 00:24:15,360 Speaker 1: banks collected more than twelve billion dollars in overdraft fees 529 00:24:15,440 --> 00:24:17,320 Speaker 1: last year. That's yeah, So I doubt we're gonna see 530 00:24:17,560 --> 00:24:20,800 Speaker 1: you know, the other biggest banks, Wells, Fargo, Chase, Bank 531 00:24:20,840 --> 00:24:24,760 Speaker 1: of America eliminating the overdraft fees. Like when one major 532 00:24:24,880 --> 00:24:26,919 Speaker 1: player like that, like takes a step in the right direction, 533 00:24:27,000 --> 00:24:29,640 Speaker 1: it's hard. I mean. And when you see a more 534 00:24:29,800 --> 00:24:32,400 Speaker 1: a less brick and mortar bank, right one that's online 535 00:24:32,480 --> 00:24:35,080 Speaker 1: that's gaining more customers, I feel like banks like that 536 00:24:35,119 --> 00:24:37,600 Speaker 1: can't ignore some of these steps that the online online 537 00:24:37,600 --> 00:24:39,520 Speaker 1: banks are are taking. I would be willing to bet 538 00:24:39,560 --> 00:24:42,800 Speaker 1: you money that they do ignore it. Yeah, we'll see. 539 00:24:42,800 --> 00:24:45,600 Speaker 1: Oh yeah, we'll see. But I hope those big banks respond. 540 00:24:45,960 --> 00:24:48,920 Speaker 1: And also, you know, eliminate these overdraft fees because when 541 00:24:48,960 --> 00:24:51,280 Speaker 1: you look at kind of the way they've been implemented, um, 542 00:24:51,440 --> 00:24:55,080 Speaker 1: it's it's cost consumers needlessly just an insane amount of money. 543 00:24:55,440 --> 00:24:58,320 Speaker 1: Um by you know, let's say you bought, uh, you 544 00:24:58,400 --> 00:25:01,080 Speaker 1: put gas in your tank and and you overdrafted you're 545 00:25:01,119 --> 00:25:03,159 Speaker 1: checking account and then you bought something else. I mean, 546 00:25:03,200 --> 00:25:06,119 Speaker 1: you could rack up multiple overdraft charges in one day, um, 547 00:25:06,240 --> 00:25:08,640 Speaker 1: and it was just it was just a financial crusher 548 00:25:08,960 --> 00:25:11,880 Speaker 1: for for people. So I love seeing this eliminated. Yeah, 549 00:25:12,000 --> 00:25:14,600 Speaker 1: and especially to those who are a living paycheck to 550 00:25:14,640 --> 00:25:17,520 Speaker 1: pycheck right because like the like, the vast majority of 551 00:25:17,640 --> 00:25:20,679 Speaker 1: folks who are getting hit with his overdraft fees are 552 00:25:20,760 --> 00:25:23,440 Speaker 1: folks who have lower lower balances month and month within 553 00:25:23,480 --> 00:25:25,239 Speaker 1: this checking accounts. So this really is a big win 554 00:25:25,359 --> 00:25:26,800 Speaker 1: for those who are trying to kind of write their 555 00:25:26,800 --> 00:25:29,000 Speaker 1: financial ships. And so I just want to let her 556 00:25:29,040 --> 00:25:30,920 Speaker 1: bring up you can if you're with one of the 557 00:25:30,960 --> 00:25:33,720 Speaker 1: big banks that we just mentioned that still has over 558 00:25:33,800 --> 00:25:36,400 Speaker 1: draft fees in place, you can be optimistic, like Matt, 559 00:25:36,480 --> 00:25:39,280 Speaker 1: stay with them and helpe that eventually, I'm not saying 560 00:25:39,280 --> 00:25:41,879 Speaker 1: to stay with him. I am thinking that that that 561 00:25:42,000 --> 00:25:44,760 Speaker 1: the tides turning right, and essentially they can't continue to 562 00:25:45,320 --> 00:25:47,800 Speaker 1: charge people in arm in a leg just to have 563 00:25:47,920 --> 00:25:50,000 Speaker 1: a checking or savings account. I hope you're right, but 564 00:25:50,160 --> 00:25:52,119 Speaker 1: the best thing to do would be to ditch your 565 00:25:52,160 --> 00:25:56,160 Speaker 1: bank and go with a new bank that prioritizes customer service, 566 00:25:56,240 --> 00:26:01,119 Speaker 1: prioritizes eliminating fees that harm consumers, and Ally would be 567 00:26:01,200 --> 00:26:03,560 Speaker 1: a great one to go with, especially after this move. Also, 568 00:26:03,720 --> 00:26:07,000 Speaker 1: this is not an ad for ALLY. No, I've used 569 00:26:07,040 --> 00:26:09,440 Speaker 1: ALLY for years. I love them. But yeah, I'm glad 570 00:26:09,440 --> 00:26:10,960 Speaker 1: to see that they're doing the right thing here. So 571 00:26:11,359 --> 00:26:13,840 Speaker 1: um Joel, that's gonna be it for this episode. Listeners 572 00:26:13,880 --> 00:26:16,200 Speaker 1: can find our show notes up on the website. We 573 00:26:16,240 --> 00:26:18,280 Speaker 1: hope everyone has a good weekend. Maybe look up those 574 00:26:18,359 --> 00:26:20,879 Speaker 1: free pool hours and we'll see back here on Monday 575 00:26:20,960 --> 00:26:23,000 Speaker 1: with an ask how to Money episode where we are 576 00:26:23,040 --> 00:26:25,639 Speaker 1: going to tackle your listener questions and if you're out 577 00:26:25,800 --> 00:26:29,199 Speaker 1: at an Atlanta pool you might see me. All right, Well, 578 00:26:29,240 --> 00:26:30,840 Speaker 1: that's gonna do it for this one. Until next time. 579 00:26:31,000 --> 00:26:32,800 Speaker 1: Best Friends Out, Best Friends Out,