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

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Speaker 1: Today we are answering your listener questions. That's right, Joel,

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Speaker 1: this is a listener question Monday episode. We've got four

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Speaker 1: questions plus one bonus one for for listeners. Today. We

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Speaker 1: have a listener who wants to make the most of

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Speaker 1: a mean stock investing mistake that you made. Listener wants

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Speaker 1: to know if if an advanced degree is actually going

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Speaker 1: to be worth it for them, and should a listener

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Speaker 1: rent or sell his home? Plus one other question and

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Speaker 1: then plus that one bonus one, like I says, so

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Speaker 1: we've got five total questions like we always do. Actually, okay,

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Speaker 1: So I'm wondering if that graduate degrees like advanced underwater

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Speaker 1: basket weaving, Because if that's the case, I'm gonna say, yes,

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Speaker 1: it's worth it. Underwater basket weaving probably doably not, but

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Speaker 1: underwater welding they pay big bucks. If that's what you do,

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Speaker 1: that's good business to get it. But man, I wanted

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Speaker 1: to share a story about an issue I had with

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Speaker 1: our van. First of all, let me point out that

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Speaker 1: I am not a car guy, right obviously, like neither

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Speaker 1: one of us are really car guys were more into

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Speaker 1: walking places and biking anyway to do it for for

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Speaker 1: cheaper than trying to be on occasion, whatever it takes man,

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Speaker 1: and so like, because I'm not a car guy, I'm

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Speaker 1: not like a detail like I don't when I washed

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Speaker 1: my car, which is obviously incredibly rare. I'm not like

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Speaker 1: they're with the toothbrush. I'm not like detailing it, making it,

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Speaker 1: you know, making it shine. Mine is not great looking

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Speaker 1: so recently, so I kind of put that out there

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Speaker 1: because then recently I was driving around in the van

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Speaker 1: and I noticed that it was like smelling really bad.

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Speaker 1: You you've ridden the van and you're like, oh, yeah,

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Speaker 1: what's that smelling? Like? You must you smell it? Like

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Speaker 1: what's going on? Um? And I thought maybe one of

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Speaker 1: the kids had left some food in the car. Did

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Speaker 1: a full like top to bottom search, couldn't find anything.

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Speaker 1: But during the search process, I realized that the floors

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Speaker 1: were kind of wet, and I was like, what is

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Speaker 1: going on? Uh? And then underneath the floormat, you know,

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Speaker 1: like you've got floor mats over like your entire vehicle.

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Speaker 1: It was acting as a vapor barrier essentially, and it

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Speaker 1: was there's water trapped between our mats uh, and it

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Speaker 1: was basically in the carpet, right, And so I did

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Speaker 1: some searching on lines, some searched on some YouTube videos,

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Speaker 1: and turns out it is because of my sunroof. Sunroosts

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Speaker 1: often will leak, and specifically if the drains uh in

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Speaker 1: the little tray that the sunroof sits in basically when

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Speaker 1: it's closed. If that tray, there are normally at least

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Speaker 1: two drains in there, and if they get clogged, uh,

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Speaker 1: it'll flood your car and it'll lead to water getting

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Speaker 1: your floorboards. This is a problem because obviously I don't

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Speaker 1: want to drive around in a stinky vehicle. But if

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Speaker 1: it were to affect any of my electrical systems, this

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Speaker 1: is gonna end up costing me even more money down

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Speaker 1: the road. Right, Like, I could ignore it, but that's

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Speaker 1: not the smart thing to do, right, Like, Hey, I

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Speaker 1: got a little heart pain. I'm just gonna ignore it

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Speaker 1: for right now because it'll probably clear off. Right, It's

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Speaker 1: like the shooting sensation up and down my arm, Like

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Speaker 1: just kind of shake it off. Not the best move. No,

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Speaker 1: don't do that. Go see a doctor, or in my case,

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Speaker 1: look on YouTube and figure out how to clean out

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Speaker 1: these drains. I've figured out how to take a little

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Speaker 1: a little bottle brush that we used to clean out

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Speaker 1: the West Seas, you know, his little baby bottle, his

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Speaker 1: old baby bottles or whatever. But I use that I

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Speaker 1: was able to clean it out. But here's the thing, man,

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Speaker 1: I did not know that the first of all, that

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Speaker 1: those drains can get clogged. And if you're like me,

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Speaker 1: in your in your park, your vehicle underneath a tree,

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Speaker 1: all the pollen junk that falls from the tree, it

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Speaker 1: turns into this like tree sludge, and it'll get in there,

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Speaker 1: it'll harden. And that's what specifically was causing the drains

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Speaker 1: and our sunroof to clock. And so I used to

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Speaker 1: be this guy who never paid much attention to any

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Speaker 1: detailing when it came to washing my car. But now

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Speaker 1: every time I washed the car, man, I'm gonna make

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Speaker 1: sure I pop up in the sunroof and wipe down

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Speaker 1: the sort of inside of the sunroofs surround to make

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Speaker 1: sure that no debris is getting down there in those drains,

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Speaker 1: because you don't want those to overflow. So, yeah, if

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Speaker 1: you have a sunroof, this may not be something you've

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Speaker 1: ever done before. But yeah, open that sunroof. Take a

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Speaker 1: look on the inside of that little area there between

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Speaker 1: like the headliner and the metal part of your car.

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Speaker 1: You'll see, you know, we're where all that dust and

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Speaker 1: all that debris can can get in there. Wipe that down.

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Speaker 1: Don't wipe the grease. You want to leave the grease

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Speaker 1: there that that's that's good for the sunroof to like

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Speaker 1: move on, you know, leave that there. But if you

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Speaker 1: see all like pollen or or dirt and debris, make

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Speaker 1: sure you clean that out there you go. This is

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Speaker 1: an argument for maintenance. It's not sexy, but it's something

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Speaker 1: that everyone needs to do. It's also an argument for

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Speaker 1: just researching when there's a problem, because that's what's again

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Speaker 1: what's so great about the internet, what's so great about

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Speaker 1: YouTube is that other people have had problems like yours, right,

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Speaker 1: Like my Honda Odyssey is, which his name Homer is.

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Speaker 1: Like when I started, did I say the name of mine?

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Speaker 1: Just Hall and Homer? Yeah, these are names that are

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Speaker 1: given to our vans by our listeners, right, and so

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Speaker 1: when I start mind it takes like three or four

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Speaker 1: seconds sometimes to to get going. And you've got an

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Speaker 1: older van, yeah, so yeah, I I by doing some research,

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Speaker 1: it looks like it's a faulty ignition relay, and it

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Speaker 1: looks like it's not a terribly difficult fix, and I've

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Speaker 1: got to do that in you know, the coming weeks.

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Speaker 1: But yeah, it's one of those things where I can

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Speaker 1: take that into a mechanic and just the diagnosis itself

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Speaker 1: could potentially cost me, you know, over a hundred dollars.

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Speaker 1: And I'm not saying there's not a place for mechanics.

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Speaker 1: I drive an older vehicle and I'm more than willing

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Speaker 1: to take it to a mechanic for lots of things.

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Speaker 1: But some of those things, like what you experience, like

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Speaker 1: when I'm experiencing, you know, they are easy enough, uh

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Speaker 1: to at least pinpoint the problem and then figure out

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Speaker 1: whether or not you're gonna be able to tackle it

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Speaker 1: on your own. And uh and in your case, yeah,

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Speaker 1: a little bottlebrush, Yeah, that was some like And once

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Speaker 1: I cleared it out, I got some hot water in

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Speaker 1: there and kind of poured it through and you can

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Speaker 1: literally see like or from my problem here, you can

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Speaker 1: see where it it drains out into the wheel wells.

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Speaker 1: And so at first it was totally like impacted, like

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Speaker 1: water wasn't flowing, but after I got to go him

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Speaker 1: and it felt so good just to see the water

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Speaker 1: like trickle through because it's design to kind of like

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Speaker 1: flow through the vehicle basically. But but yeah, hearing you

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Speaker 1: talk about your starter problem, it just made me think too,

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Speaker 1: like what if you could get a mechanic on the

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Speaker 1: phone and just be like, all right, listen, I'm gonna

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Speaker 1: do it now, like teledoct style. Yeah, but like a telemechanic,

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Speaker 1: like a telemech I don't know that because when you

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Speaker 1: actually physically take it in, the problem is never never

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Speaker 1: reveals itself the way you've been experienced. It's like, I

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Speaker 1: don't know, looks fine to me, No, I swear this

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Speaker 1: happens in my driveway, Like sure, sure it does. Yeah,

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Speaker 1: but yeah, if there's any mechanics out there who haven't

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Speaker 1: done that, that that might be a good way, because like

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Speaker 1: if they were able to diagnose it and they're like, yeah,

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Speaker 1: we can order that part, It's like, man, that just

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Speaker 1: saved me an entire trip. That inconvenience is oftentimes what

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Speaker 1: I'm trying to avoid at least, no doubt. All right,

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Speaker 1: let's move on, Matt. Let's get to the questions are

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Speaker 1: listening questions for this episode, but before that, we'll just

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Speaker 1: mention the beer. We're having a beer by World Work Sprewing.

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Speaker 1: It's a double dry Hopps I p a called Juicy Bits,

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Speaker 1: and so yeah, we'll give our thoughts on this beer

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Speaker 1: at the end of the episode, but for now, on

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Speaker 1: too listening questions. And if you are listening and you've

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Speaker 1: got a money question for Matt and I, we'd love

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Speaker 1: to take it on an upcoming episode. You can submit

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Speaker 1: that at how to money dot com slash ask their

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Speaker 1: simple instructions, You record a voice memo, then email it

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Speaker 1: over to us, and then we hopefully feature it here

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Speaker 1: like we're gonna do with this first question about how

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Speaker 1: we can make money less stressful in our lives. Hi, Mangel,

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Speaker 1: my name is Victoria and I'm currently living in Columbus, Ohio.

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Speaker 1: I've been through almost all of your episodes and I

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Speaker 1: would like to thank you so much for empowering me

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Speaker 1: on my financial journey. So my question to you is

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Speaker 1: how to make allocating my money less stressful. I'm good

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Speaker 1: at living within my budget and paying off all my bills, loans,

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Speaker 1: and debts on time, but it takes a lot of

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Speaker 1: planning each paycheck to make sure I don't accidentally overdrop

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Speaker 1: my checking account. I keep a low balance in there

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Speaker 1: after taking care of all my expenses, including sometimes paying

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Speaker 1: off my credit cards more than once a month. I

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Speaker 1: get paid by weekly every other Friday, and I think

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Speaker 1: one of the main problems is that my expenses lean

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Speaker 1: heavier in the beginning of the month with my rent payment.

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Speaker 1: It is also hard to decide when to transfer chunks

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Speaker 1: of money into my emergency funds, rough IRA or other

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Speaker 1: savings accounts. I do all of my payments manually right now,

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Speaker 1: I'm nervous that if I switch over to automatic payments

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Speaker 1: on everything, I'll accidentally overdrop my checking because I don't

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Speaker 1: have enough money at the time of the month depending

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Speaker 1: on what each payment is. In addition, I'm nervous that

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Speaker 1: if I have everything automated and not checking on my finances,

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Speaker 1: my spending may go arry and I'll slowly lose money

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Speaker 1: by not having to physically pay everything each month. I'd

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Speaker 1: really appreciate your feedback in tips on how to manage

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Speaker 1: my stress about my money allocations, keep up with providing

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Speaker 1: quality content, and stay safe. Alright, Victoria, this is a

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Speaker 1: great question Uh. And we actually we we talked about

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Speaker 1: money stress recently on back on episode three seventy one.

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Speaker 1: We kind of a positive spin on stress. We try

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Speaker 1: to at least yeah, because some stress can be useful, right.

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Speaker 1: It can lead to you getting organized with your money. Uh.

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Speaker 1: And folks are likely going to see higher levels of

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Speaker 1: performance because the goals that they may have set. But

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Speaker 1: of course, being stressed out over money consistently isn't good.

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Speaker 1: Of course, Um, it can potentially lead to pour money

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Speaker 1: habits in addition to just health and relational hardships that

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Speaker 1: you might experience because of a lack of money or

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Speaker 1: or poor money management. But the good news in your case,

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Speaker 1: Victoria is that it sounds like that you are being

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Speaker 1: very organized, right. It seems like you know exactly where

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Speaker 1: your money is going. You've got to handle on your expenses.

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Speaker 1: It's just that it is stressing you out. Uh. And

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Speaker 1: I think we might have a solution for you. Let's

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Speaker 1: talk about how we can help Victoria be less stressed

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Speaker 1: about our money. And it seems like the biggest source

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Speaker 1: of Victoria's anxiety here is that at least from where

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Speaker 1: we're sitting based on your question, based on listening to

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Speaker 1: a minute of you talking Victoria, you might be living

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Speaker 1: paycheck to paycheck right like, and if that's the case,

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Speaker 1: if your company didn't make payroll for some reason on Friday,

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Speaker 1: it sounds like you'd be in a really, really tough spot.

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Speaker 1: And so we would say it's really crucial to increase

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Speaker 1: the gap between what's incoming and what's outgoing. Right. So, yeah,

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Speaker 1: if you're worried about overdrafting your account, that means you

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Speaker 1: don't have quite enough money in there. So there are

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Speaker 1: really two ways that you can create more financial margin

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Speaker 1: in your life, right. You either make more money or

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Speaker 1: you spend less money. Yeh, those are the two levels

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Speaker 1: that you can pull. Yeah, it's not really all that

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Speaker 1: complex when it comes down to it. But one of

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Speaker 1: the things we wanted to mention is, and this doesn't

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Speaker 1: necessarily actually technically fall into either, but it's the first

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Speaker 1: obvious thing that stood out is that you mentioned that

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Speaker 1: you're contributing to your roth Ira. Normally, this is a

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Speaker 1: good thing, and Matt and I encourage people contributing to

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Speaker 1: roth iras it's very rare that you'll hear us say

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Speaker 1: don't do that or it's a bad idea. But we

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Speaker 1: would actually rather see you put less money right now

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Speaker 1: towards your investing for the time being, and more towards

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Speaker 1: savings until you can comfortably start contributing to that wrath again.

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Speaker 1: For you, increasing margin is the most important thing, and

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Speaker 1: investing can come just a little bit further down the road. Yeah,

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Speaker 1: over over a longer time horizon. We'd encourage you to

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Speaker 1: try and pull both of those levers right, either making

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Speaker 1: more or spending less in order to increase your financial margin.

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Speaker 1: But for now, simply putting your investments on hold like

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Speaker 1: that should allow you to immediately gain some traction, and

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Speaker 1: that's what we're looking for, uh in your case, and

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Speaker 1: we think that that should help reduce your stress levels

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Speaker 1: by being able to put some of those payments on

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Speaker 1: auto payment, because you'll know that you'll have enough to

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Speaker 1: cover them right um. And you know, even if you're

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Speaker 1: not set up on auto payments, just having enough money

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Speaker 1: in the bank will allow you to implement your own

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Speaker 1: personal systems for what bills you pay on what dates.

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Speaker 1: We don't want you to have to actively decide when

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Speaker 1: you're going to pay bills or when it is that

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Speaker 1: you're going to invest junk your money, And we want

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Speaker 1: that to be a little more passive, a little more automatic. Uh,

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Speaker 1: And even just a repeating monthly calendar reminders, say on

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Speaker 1: the third Friday of that month, can be a good

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Speaker 1: prompt for you to invest. That's a good way to

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Speaker 1: automate and just get it off your mind. But of course,

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Speaker 1: make sure that you don't do that until you have

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Speaker 1: that financial margins set up. But essentially, when you have

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Speaker 1: more margin in your life, that's gonna lead you to

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Speaker 1: be able to take advantage of more automation, which should

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Speaker 1: decrease the levels of stress that you're experiencing. And also,

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Speaker 1: you know, one other side thing, switch to a bank

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Speaker 1: that doesn't charge overdraft fees. Ally Bank is a bank

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Speaker 1: that recently did away with those completely. That way, if

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Speaker 1: it happens to be a crazy month and you maybe

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Speaker 1: have a few more expenses than normal and that bi

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Speaker 1: weekly check just hasn't been deposited yet, you're not gonna

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Speaker 1: incur those overdraft charges every single time. That's something that

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Speaker 1: we're glad to see Ally leading the way on. Yeah,

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Speaker 1: you know, those overdraft fees can be like the sort

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Speaker 1: of damocles hanging over your head and you're like, oh no,

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Speaker 1: like that if it. You know, if I make this

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Speaker 1: one spend, it could potentially result in a thirty charge,

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Speaker 1: and that's that's a lot of money, especially Yeah, if

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Speaker 1: you're living paycheck to paycheck. But yeah, Matt, I agree.

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Speaker 1: The more margin you have, the more you can automate.

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Speaker 1: Because you know that the money is in there, you

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Speaker 1: don't have to be worried about that. And so, yeah, Victoria,

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Speaker 1: it's not that we don't want you investing towards your retirement,

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Speaker 1: but we want to make sure that you're doing things

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Speaker 1: in the right order. And this is exactly actually what

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Speaker 1: we talked about when we introduced our money Gears episode

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Speaker 1: that was three or two beginning of this year. You

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Speaker 1: can either go listen to that one or you can

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Speaker 1: quickly read the high points on the start here page

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Speaker 1: of our website at how the Money dot com. But

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Speaker 1: the very first thing you should do is to make

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Speaker 1: sure that you have an emergency fund of at least

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Speaker 1: two thousand, four hundred and sixty seven dollars. It's a

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Speaker 1: very specific number. If you want to know more about that,

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Speaker 1: you know, if back and check that episode out. But

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Speaker 1: you did mention that you're putting money towards an emergency fund.

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Speaker 1: So that's awesome that you're prioritizing it at least in

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Speaker 1: some to some degree. But yeah, maybe a simple way

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Speaker 1: that you can use that to lessen stress is simply

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Speaker 1: by moving it over to your checking account instead of

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Speaker 1: having it in a separate savings account. Right that way

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Speaker 1: your emergency fund can act. Is this like cushion between

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Speaker 1: getting paid and some big expenses like a rent or

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Speaker 1: mortgage payment, you know, at least until you have enough

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Speaker 1: saved that you can transfer that over to savings and

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Speaker 1: you've got enough in both accounts. But really the big

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Speaker 1: goal right here is more financial margin, more liquid cash

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Speaker 1: sitting in your accounts so that you don't have to

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Speaker 1: be worried about any individual bill coming in. You want

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Speaker 1: to get to the point where you're using last month's

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Speaker 1: money to pay this month's bills. And once you get

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Speaker 1: to that point, that's when you have margin, and that's

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Speaker 1: when you can say, all right, you know what, I

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Speaker 1: think maybe I'm ready to get my toes back into

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Speaker 1: investing a little more regularly because I'm not stressed about

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Speaker 1: money every day or every week. And yeah, I mean,

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Speaker 1: I feel like Victoria can get there, and we'll get there.

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Speaker 1: It's just gonna take some intentionality right now and kind

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Speaker 1: of yeah, shifting some things around. Yeah, that's right, Victoria,

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Speaker 1: essentially willing to get you off of that knife's edge

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Speaker 1: where one misstep would would wreck your finances, and kind

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Speaker 1: of going back to what Joel was saying to about

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Speaker 1: making sure that you're doing these uh, these money moves

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Speaker 1: in the right order. This is something we've talked on

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Speaker 1: the show about before, but maybe it's worth mentioning again.

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Speaker 1: I have made this exact same mistake back when I

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Speaker 1: was first learning about personal finances. I had heard the

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Speaker 1: power of investing, and a friend of mine was like,

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Speaker 1: you've you've got to get that compounding interest working in

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Speaker 1: your favor, and I said, yeah, you're right. So I

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Speaker 1: dumped a ton of money into my roth Ira a

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Speaker 1: before my personal finances were in good order, and it

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Speaker 1: turns out that I needed that money a few months later. Uh.

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Speaker 1: In taking money out of a volatile market just after

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Speaker 1: a few months is not ideal, and so that's not

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Speaker 1: the situation that we want you in, Victoria, were you

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Speaker 1: to need that money, obviously we don't want you to

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Speaker 1: go in debt, but we also don't want you to

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Speaker 1: take money out of your wrath. I A, yeah, a

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Speaker 1: good money move isn't necessarily a good move. It's done

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Speaker 1: in the wrong order, and it's a bad money man,

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Speaker 1: and it's a bad money move even though it's a

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Speaker 1: lotable things that you're attempting to You'll get there soon.

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Speaker 1: You'll get there soon. So all right, we got more

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Speaker 1: questions to get to, including one about selling or renting

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Speaker 1: a home. Which one should this listener choose. We'll get

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Speaker 1: to that and more right up for this break. All right,

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Speaker 1: we are back and we're gonna take a question here

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Speaker 1: about some money relational advice. But before we get to

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Speaker 1: that one, let's take this question about whether this listener

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Speaker 1: should sell or rent his home. Let's speed from San Diego.

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Speaker 1: I'm currently in the Navy, and my wife and I

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Speaker 1: have owned a home here since two twelve. We're scheduled

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Speaker 1: transfer to Washington State in a few months and are

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Speaker 1: trying to decide whether to rent or sell before moving.

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Speaker 1: There's a chance we could come back to San Diego.

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Speaker 1: It would be nice to have a house, but also

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Speaker 1: a chance we would never come back. So we're concerned

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Speaker 1: about renting a place that we live so far away

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Speaker 1: from for possibly many years. Furthermore, the market in San

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Speaker 1: Diego is really hot right now, and if we listed,

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Speaker 1: we could get top dollar for our place, roughly two

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Speaker 1: hundred and fifty thousand dollars profit after selling or with

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Speaker 1: renting about a one thousand dollar profit per month. We

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Speaker 1: have considered a property manager if we rent, because we

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Speaker 1: were unexperienced, but have a lot of family in the

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Speaker 1: area that would be willing to look after the place

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Speaker 1: at no costs. If we did rented ourselves. We would

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Speaker 1: love some advice from you find folks about if we

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Speaker 1: should rent or sell to help make our decision a

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Speaker 1: little bit easier. Thanks for all you do, and I

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Speaker 1: can't wait to hear from you. PS. What is your

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Speaker 1: favorite double I p A? All right, Matt Pete stuff

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Speaker 1: is question there? What's your favorite double I PA. That's

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Speaker 1: a difficult one. That, yeah, that is tough. I mean

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Speaker 1: anything that's double dry hopped. And so I'm actually quite

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Speaker 1: fond of the beer that we're currently drinking, but I'm

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Speaker 1: thinking of Burial. They've got a lot of double dry

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Speaker 1: hop double I p A s Topath they make some

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Speaker 1: really solid ones as well, But I mean, I know

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Speaker 1: it's it's tough to narrow it down to a particular

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Speaker 1: beer because a lot of them are similar. There's different

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Speaker 1: breweries that make just really high caliber uh double I

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Speaker 1: PA s. But I will narrow that down to double

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Speaker 1: dry hops I P A s specifically, those are my

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Speaker 1: jam Here we go, all right, I'm with you on that. Yeah,

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Speaker 1: they've said the most like visceral flavor profile. Uh, let's

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Speaker 1: get to pezze actual question. All right, let's talk about housing.

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Speaker 1: And normally, Pete, we would tell you to sell when

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Speaker 1: you're in the military and you're moving, because becoming a

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Speaker 1: default long distance landlord is not really ideal. That there's

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Speaker 1: a lot of potential pitfalls, there's a lot of downsides

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Speaker 1: to that. But the fact that you might move back,

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Speaker 1: I would say it's one check mark at least in

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Speaker 1: favor of potentially holding onto that home. You know, having

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Speaker 1: family in the area is another positive in favor of

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Speaker 1: keeping at home. One it means you're more likely to

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Speaker 1: move back there, and too, it means you might have

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Speaker 1: some help looking after it. But ultimately, Matt and I

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Speaker 1: would say there's just too many X factors to make

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Speaker 1: keeping this house a really great decision for you. Yeah,

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Speaker 1: too many unknown variables and So Pete, since it sounds

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Speaker 1: like this would be your first rental property and you're

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Speaker 1: gonna be living hundreds of miles away, it sounds like

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Speaker 1: getting a property manager would actually make the most sense

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Speaker 1: for you in order for this to be successful. Yeah,

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Speaker 1: you did mention having family in town, and while that's

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Speaker 1: you know, that's good that they'd be able to keep

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Speaker 1: an eye on the place. Like I wouldn't actually want

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Speaker 1: any family members managing a property unless that was their job,

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Speaker 1: or unless they had experience maybe with their own rentals.

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Speaker 1: I think having a family member that has zero experience

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Speaker 1: with tenants like that kind of sounds like a recipe

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Speaker 1: for disaster. Yeah, they get the call or the email

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Speaker 1: and they're like, I don't know, like we'll do it,

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Speaker 1: we'll fix it. And it's just like, oh, actually, no,

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Speaker 1: you know, we're not supposed to fix that, like that's

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Speaker 1: their fault or whatever the situation might be. You want

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Speaker 1: to have somebody who knows what they're doing on the

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Speaker 1: other end of those calls from your tenants. That's when

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Speaker 1: having a property manager makes sense. But hiring a property manager,

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Speaker 1: of course, is going to eat into that monthly cash

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Speaker 1: flow from the property. Typically that is all or half

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Speaker 1: of the first month's rent and then ten of the

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Speaker 1: monthly rent moving forward. And so if you really want

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Speaker 1: to maintain that property, if you want to keep it

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Speaker 1: because there's a good chance you'll be moving back, that

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Speaker 1: would be the route to go. But otherwise that's a

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Speaker 1: really steep cost to maintain something that maybe you don't

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Speaker 1: even really care about all that much. Yeah, I agree.

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Speaker 1: I think that Pete needs to be actually pretty certain

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Speaker 1: that he's going to move back, and then he loves

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Speaker 1: his house enough that he wants to move back into

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Speaker 1: that particular home. In order to rent this property out,

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Speaker 1: the desire has to be not necessarily to make money

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Speaker 1: as a landlord, but to keep the house that you

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Speaker 1: want to live in again a few years down the road. Yeah,

428
00:19:09,160 --> 00:19:11,840
Speaker 1: if you know the neighborhood, you have neighbors who are

429
00:19:11,840 --> 00:19:14,400
Speaker 1: good friends there, and you're like, okay, I would want

430
00:19:14,440 --> 00:19:16,399
Speaker 1: to move right back to this exact spot, you know,

431
00:19:16,440 --> 00:19:18,560
Speaker 1: in a couple of years, and it's likely right Yeah, yeah,

432
00:19:18,600 --> 00:19:20,280
Speaker 1: and so so yeah, what you just mentioned though, Matt,

433
00:19:20,280 --> 00:19:22,080
Speaker 1: that's one strike. He can running it out right, having

434
00:19:22,680 --> 00:19:25,600
Speaker 1: to hire a property manager and money, it's gonna cost money.

435
00:19:25,680 --> 00:19:28,480
Speaker 1: Another reason is that Pete's home has increased in value

436
00:19:28,520 --> 00:19:31,840
Speaker 1: a lot, right, and so the fact that this home

437
00:19:32,119 --> 00:19:35,480
Speaker 1: is probably an expensive home makes it unlikely that it's

438
00:19:35,480 --> 00:19:37,399
Speaker 1: gonna be an awesome rental property. To write that, the

439
00:19:37,680 --> 00:19:40,880
Speaker 1: numbers often work better for landlords who own and lease

440
00:19:40,920 --> 00:19:43,879
Speaker 1: hound homes that are on the less expensive side. Right, Like,

441
00:19:44,400 --> 00:19:47,000
Speaker 1: typically numbers work out better on a rental home they

442
00:19:47,040 --> 00:19:49,439
Speaker 1: cost two hundred thousand dollars, then a rental home they

443
00:19:49,480 --> 00:19:52,560
Speaker 1: cost five thousand dollars, right, and even better if it

444
00:19:52,640 --> 00:19:55,919
Speaker 1: costs even less than two. Yeah, if if somehow you

445
00:19:55,920 --> 00:19:58,479
Speaker 1: can buy a house that costs twenty and you can

446
00:19:58,560 --> 00:20:00,440
Speaker 1: run it out, you know, for twelve hundred buck, that's

447
00:20:00,440 --> 00:20:02,520
Speaker 1: when the numbers are great. That's the rule of thumb.

448
00:20:02,520 --> 00:20:04,200
Speaker 1: We're trying to hit the one percent rule of them,

449
00:20:04,280 --> 00:20:06,760
Speaker 1: although much harder to come by these days. So, yeah,

450
00:20:06,800 --> 00:20:08,879
Speaker 1: if you're if your home has gained that much value,

451
00:20:09,320 --> 00:20:11,080
Speaker 1: it could be worth like over half a million dollars,

452
00:20:11,160 --> 00:20:13,200
Speaker 1: or maybe even close to three quarters of a million dollars,

453
00:20:13,400 --> 00:20:15,280
Speaker 1: And in that case, it's probably not going to make

454
00:20:15,280 --> 00:20:19,040
Speaker 1: for a great rental property. Expensive homes just aren't usually

455
00:20:19,080 --> 00:20:22,640
Speaker 1: ideal for renting because of that weaker profit margin. That's right,

456
00:20:22,680 --> 00:20:24,879
Speaker 1: And Pete, you know, let's talk about the other probably

457
00:20:24,920 --> 00:20:27,320
Speaker 1: biggest downside to keeping this home as a rental. You

458
00:20:27,320 --> 00:20:30,480
Speaker 1: mentioned that your home has already skyrocketed in value, right like,

459
00:20:30,480 --> 00:20:33,000
Speaker 1: you're looking at two hundred fifty thousand dollars in profit.

460
00:20:33,040 --> 00:20:35,760
Speaker 1: That's pretty incredible. Congrats. And if you rent it out

461
00:20:35,840 --> 00:20:38,040
Speaker 1: for several years after that and then you decide to

462
00:20:38,040 --> 00:20:40,920
Speaker 1: sell it, you're gonna be subject to paying capital gains

463
00:20:40,960 --> 00:20:44,760
Speaker 1: tax on the entire value increase of the home. And

464
00:20:44,800 --> 00:20:47,080
Speaker 1: so were you to sell now, that will allow you

465
00:20:47,119 --> 00:20:50,399
Speaker 1: to pocket the gains tax free, since you've occupied it

466
00:20:50,440 --> 00:20:52,920
Speaker 1: as your primary residents at least two of the past

467
00:20:53,000 --> 00:20:55,800
Speaker 1: five years, and so you don't want to let taxes

468
00:20:55,960 --> 00:20:58,480
Speaker 1: completely drive your decision. But in this case, you know,

469
00:20:58,480 --> 00:21:00,639
Speaker 1: that's a pretty good reason to sell if you're not

470
00:21:00,960 --> 00:21:04,880
Speaker 1: gung ho on becoming a landlord as well. I guess alternatively,

471
00:21:05,520 --> 00:21:08,080
Speaker 1: if you are pretty interested in kind of running the

472
00:21:08,080 --> 00:21:09,920
Speaker 1: property out, give it a shot, maybe give it a

473
00:21:09,960 --> 00:21:11,760
Speaker 1: couple of years. But you need to make that decision

474
00:21:12,000 --> 00:21:14,360
Speaker 1: before you get to that third year, because if you're

475
00:21:14,400 --> 00:21:16,560
Speaker 1: kind of on defense about being a landlord, you want

476
00:21:16,560 --> 00:21:18,720
Speaker 1: to make sure that you sell it within that third year.

477
00:21:18,880 --> 00:21:21,240
Speaker 1: That way, you're still able to not pay any capital

478
00:21:21,280 --> 00:21:23,640
Speaker 1: gains tax. Uh And in the meantime too, I guess

479
00:21:23,640 --> 00:21:25,480
Speaker 1: in those two or three years, hopefully you will have

480
00:21:25,480 --> 00:21:27,639
Speaker 1: seen the value of the home continue to rise, although

481
00:21:27,680 --> 00:21:30,400
Speaker 1: that's not necessarily guaranteed. Yeah, man, I agree. I think

482
00:21:30,440 --> 00:21:33,320
Speaker 1: maybe giving it a two year trial is kind of

483
00:21:33,320 --> 00:21:35,840
Speaker 1: the perfect route to go if Pete thinks he's going

484
00:21:35,880 --> 00:21:38,080
Speaker 1: to move back into the home, uh and and really

485
00:21:38,119 --> 00:21:41,320
Speaker 1: desires to move back there too, because yeah, you can

486
00:21:41,359 --> 00:21:44,640
Speaker 1: see how's it going, like, is this long distance landlording

487
00:21:44,640 --> 00:21:47,320
Speaker 1: thing working out well for me? Is it profitable? And

488
00:21:47,359 --> 00:21:49,520
Speaker 1: do we actually think that we're gonna move back into

489
00:21:49,520 --> 00:21:51,480
Speaker 1: the area at some point in two years? Is that

490
00:21:51,520 --> 00:21:53,560
Speaker 1: perfect timeline? Because if you're like, you know, it looks

491
00:21:53,560 --> 00:21:55,920
Speaker 1: like we're not moving back and it's not really ideal,

492
00:21:56,160 --> 00:21:58,000
Speaker 1: then you can pull the trigger and sell and you

493
00:21:58,000 --> 00:22:00,840
Speaker 1: can still avoid the massive tax us. You know. That's

494
00:22:00,960 --> 00:22:02,800
Speaker 1: that's the big thing you want to make sure you avoid. Yeah,

495
00:22:02,840 --> 00:22:05,000
Speaker 1: that that timeline, that that clock's ticken once you move

496
00:22:05,000 --> 00:22:06,399
Speaker 1: out of the house. So I just got to be

497
00:22:06,440 --> 00:22:09,280
Speaker 1: cognizant of that. But Pete, best of luck to you,

498
00:22:09,280 --> 00:22:10,439
Speaker 1: I guess I don't know if we have gave you

499
00:22:10,480 --> 00:22:12,440
Speaker 1: like a firm decision one way or the other, but yeah,

500
00:22:12,480 --> 00:22:14,680
Speaker 1: the trial period might make the most sense. But I

501
00:22:14,720 --> 00:22:17,520
Speaker 1: guess one other little con to that would be when

502
00:22:17,560 --> 00:22:19,720
Speaker 1: you're living in it, you can present it in the

503
00:22:19,720 --> 00:22:21,720
Speaker 1: perfect way to buyers. And then there's a lot of

504
00:22:21,720 --> 00:22:24,400
Speaker 1: work that to staging, getting the home ready after you've

505
00:22:24,400 --> 00:22:27,159
Speaker 1: had other tenants in there. So there's a lot of

506
00:22:27,200 --> 00:22:29,720
Speaker 1: variables here. But Pete, we trust you to make the

507
00:22:29,720 --> 00:22:32,160
Speaker 1: best decision with kind of all the information we've laid out,

508
00:22:32,200 --> 00:22:33,600
Speaker 1: and and best of luck to you and your fam.

509
00:22:33,920 --> 00:22:35,840
Speaker 1: All right, Matt, let's get to the next question. This

510
00:22:35,880 --> 00:22:41,359
Speaker 1: one is about having difficult money conversations with your partner. Hi, guys,

511
00:22:41,440 --> 00:22:45,480
Speaker 1: this is Leslie calling from Leavenworth, Kansas with a relational

512
00:22:45,560 --> 00:22:49,040
Speaker 1: money question. I appreciate how you guys understand that that's

513
00:22:49,040 --> 00:22:51,879
Speaker 1: an important part of personal finance, so I'd love to

514
00:22:51,920 --> 00:22:55,159
Speaker 1: hear what you have to say. Recently, I told my

515
00:22:55,240 --> 00:22:57,119
Speaker 1: husband that I thought it was time for us to

516
00:22:57,160 --> 00:23:01,159
Speaker 1: open a taxable brokerage account. Were in money gear seven.

517
00:23:01,680 --> 00:23:04,680
Speaker 1: He really wasn't very enthusiastic about the idea, and when

518
00:23:04,720 --> 00:23:08,160
Speaker 1: I asked him why, he made some vague comments about

519
00:23:09,200 --> 00:23:12,200
Speaker 1: disliking the economic system. We're not wanting to be part

520
00:23:12,240 --> 00:23:16,240
Speaker 1: of this system. We agreed to sit down at a

521
00:23:16,359 --> 00:23:18,760
Speaker 1: later point when neither one of us is stressed or

522
00:23:18,760 --> 00:23:22,080
Speaker 1: holding a baby and talk about things more. But I'm

523
00:23:22,119 --> 00:23:24,680
Speaker 1: really not sure what to ask him during that conversation.

524
00:23:25,119 --> 00:23:29,040
Speaker 1: I know this is a big picture conversation, UM, more

525
00:23:29,160 --> 00:23:32,439
Speaker 1: about the why behind your money? Um. But if I

526
00:23:32,520 --> 00:23:35,080
Speaker 1: just sit down and say what's the why behind your money,

527
00:23:35,119 --> 00:23:37,560
Speaker 1: I'm not going to get anywhere. My husband is really

528
00:23:37,600 --> 00:23:40,399
Speaker 1: responsible with his money, but he hates talking about it

529
00:23:40,520 --> 00:23:43,040
Speaker 1: or even really thinking about it, and I just want

530
00:23:43,080 --> 00:23:44,879
Speaker 1: to see if we can get on the same page

531
00:23:44,920 --> 00:23:48,760
Speaker 1: better or at least understand where he's coming from. So

532
00:23:48,800 --> 00:23:52,359
Speaker 1: I'd love to get your tips on what questions to

533
00:23:52,480 --> 00:23:56,280
Speaker 1: ask so that we can really get to understanding each

534
00:23:56,320 --> 00:23:59,920
Speaker 1: other better. Thanks guys. All right, Leslie, congrats on being

535
00:24:00,000 --> 00:24:02,760
Speaker 1: in money Gear number seven. That is a huge accomplishment,

536
00:24:02,800 --> 00:24:06,320
Speaker 1: So congrats there, and and yes, uh definitely how this

537
00:24:06,400 --> 00:24:09,320
Speaker 1: convo when you're not in a stressful situation, you know

538
00:24:09,400 --> 00:24:11,919
Speaker 1: the gosh that the setting matters a whole lot, and

539
00:24:11,920 --> 00:24:15,199
Speaker 1: being able to have just a reasonable conversation with all

540
00:24:15,240 --> 00:24:17,840
Speaker 1: your emotions flaring. I'll be honest. You know, I love

541
00:24:17,960 --> 00:24:20,439
Speaker 1: my kids, but it's pretty much impossible for Kate and

542
00:24:20,440 --> 00:24:23,639
Speaker 1: I to have a conversation, a healthy conversation about anything

543
00:24:23,680 --> 00:24:27,720
Speaker 1: important when all the kiddos are awake, running around, pulling

544
00:24:27,760 --> 00:24:30,200
Speaker 1: on us, interrupting. That's something that we're working on. It's

545
00:24:30,200 --> 00:24:32,160
Speaker 1: like a mommy and daddy talking and then you cannot

546
00:24:32,240 --> 00:24:34,880
Speaker 1: interrupt unless like something's on fire, Dada, where's my water?

547
00:24:36,040 --> 00:24:39,240
Speaker 1: And so yeah, post bedtime or date night is definitely

548
00:24:39,400 --> 00:24:42,480
Speaker 1: when we prioritize having those conversations, you know, look to

549
00:24:42,520 --> 00:24:44,720
Speaker 1: find ways to make those conversations fun. It sounds like

550
00:24:44,800 --> 00:24:47,440
Speaker 1: he does not like talking about money, and so if

551
00:24:47,440 --> 00:24:50,639
Speaker 1: he likes craft beer, maybe crack open a bottle of

552
00:24:50,680 --> 00:24:52,879
Speaker 1: something that really taste you. Or if he likes being outdoors,

553
00:24:53,160 --> 00:24:56,400
Speaker 1: try to incorporate that with his money conversations. But two

554
00:24:56,400 --> 00:24:58,560
Speaker 1: different ways, you can make it as enjoyable as possible.

555
00:24:58,560 --> 00:25:00,560
Speaker 1: You give him in his comfort zone, and that that's

556
00:25:00,720 --> 00:25:03,119
Speaker 1: definitely a good way to approach it. I'd also Leslie,

557
00:25:03,160 --> 00:25:06,560
Speaker 1: come at this conversation with some curiosity because, honestly, like,

558
00:25:06,560 --> 00:25:08,520
Speaker 1: based on what you said, I'm pretty curious now like,

559
00:25:08,920 --> 00:25:10,399
Speaker 1: I kind of want to talk to him and you know,

560
00:25:10,720 --> 00:25:13,680
Speaker 1: get his ideas, Like what is it about the system

561
00:25:13,720 --> 00:25:16,240
Speaker 1: that he dislikes, or is it like the idea of

562
00:25:16,280 --> 00:25:18,879
Speaker 1: capitalism in general, or is it just like more like

563
00:25:18,880 --> 00:25:22,040
Speaker 1: the consumerism that's running up in our country. Because yeah,

564
00:25:22,119 --> 00:25:23,720
Speaker 1: and Matt and I were fans of the free market

565
00:25:23,760 --> 00:25:25,359
Speaker 1: economy that we live in, But that doesn't mean that

566
00:25:25,400 --> 00:25:28,240
Speaker 1: there aren't issues and concerns. And so yeah, those pop

567
00:25:28,320 --> 00:25:30,960
Speaker 1: up and they can maybe change how we feel about

568
00:25:31,000 --> 00:25:32,640
Speaker 1: the moves that we're making with our money. But yeah,

569
00:25:32,960 --> 00:25:35,480
Speaker 1: there there are healthy ways to invest without feeling like

570
00:25:35,520 --> 00:25:37,680
Speaker 1: you're forced to support companies that you have a real

571
00:25:37,800 --> 00:25:40,040
Speaker 1: issue with as well. So that's kind of where maybe

572
00:25:40,200 --> 00:25:43,320
Speaker 1: those curious questions can kind of bring forth maybe some

573
00:25:43,359 --> 00:25:46,400
Speaker 1: of those bigger things that he's feeling. Um, and yeah,

574
00:25:46,800 --> 00:25:48,160
Speaker 1: when when it comes down to it, that's a big

575
00:25:48,200 --> 00:25:51,200
Speaker 1: reason why something like E s G investing has become

576
00:25:51,320 --> 00:25:53,359
Speaker 1: so big over the last five years. Those are the

577
00:25:53,359 --> 00:25:57,679
Speaker 1: funds that prioritize investing in a socially responsible way environmental, social,

578
00:25:57,680 --> 00:26:01,040
Speaker 1: and governance concerns. And yeah, now there are reasonably inexpensive

579
00:26:01,080 --> 00:26:02,639
Speaker 1: funds that allow you to invest in that way. So

580
00:26:02,680 --> 00:26:04,760
Speaker 1: it's like if that is the reason, And again, it's

581
00:26:04,760 --> 00:26:06,400
Speaker 1: hard to know, right until you dig in a little

582
00:26:06,400 --> 00:26:08,840
Speaker 1: bit more and ask him some of those curious questions.

583
00:26:09,080 --> 00:26:11,119
Speaker 1: But yeah, it could be something as simple as that,

584
00:26:11,160 --> 00:26:13,640
Speaker 1: what like, well, some of my money that I'm investing

585
00:26:13,720 --> 00:26:15,159
Speaker 1: is going to these companies that are doing things that

586
00:26:15,200 --> 00:26:17,000
Speaker 1: I don't like. And it's like, well, actually there's ways

587
00:26:17,000 --> 00:26:19,720
Speaker 1: around that, now, So yeah, there there might be easy

588
00:26:19,760 --> 00:26:21,639
Speaker 1: solutions to some of the things that he's feeling. It

589
00:26:21,640 --> 00:26:24,120
Speaker 1: could just be a nuts and bolts kind of conversation, right.

590
00:26:24,440 --> 00:26:26,119
Speaker 1: But then Leslie, you know, since both of you have

591
00:26:26,240 --> 00:26:28,240
Speaker 1: done so well with your money, you know, maybe he's

592
00:26:28,240 --> 00:26:31,080
Speaker 1: hoping to invest a little less because he wants to

593
00:26:31,160 --> 00:26:34,720
Speaker 1: enjoy some of the fruits of your mutual labor now, right,

594
00:26:34,760 --> 00:26:37,199
Speaker 1: And so focusing that conversation on the future that the

595
00:26:37,240 --> 00:26:39,560
Speaker 1: money that you invest today, that that will be funding,

596
00:26:40,000 --> 00:26:42,280
Speaker 1: is going to be a really important aspect of that conversation.

597
00:26:42,640 --> 00:26:45,399
Speaker 1: I don't think most folks naturally gravitate towards investing huge

598
00:26:45,440 --> 00:26:48,280
Speaker 1: loads of money for the future. Uh, And it often

599
00:26:48,480 --> 00:26:51,040
Speaker 1: doesn't help even when we're told to do so, because

600
00:26:51,040 --> 00:26:52,800
Speaker 1: it's just like the quote unquote smart thing to do.

601
00:26:52,880 --> 00:26:54,600
Speaker 1: It's like that that busy work when you were in

602
00:26:54,600 --> 00:26:56,520
Speaker 1: school and you're like, you should just do this because

603
00:26:56,720 --> 00:26:58,680
Speaker 1: you should do this because there's just twenty is left

604
00:26:58,680 --> 00:27:02,120
Speaker 1: in the period, okay, and we're not going to play. Yeah, yeah,

605
00:27:02,160 --> 00:27:04,800
Speaker 1: we need more than that. We need a larger goal.

606
00:27:05,160 --> 00:27:07,520
Speaker 1: And so making sure that it's included in this conversation.

607
00:27:07,560 --> 00:27:10,240
Speaker 1: These larger goals could really help you, guys to dream

608
00:27:10,280 --> 00:27:12,800
Speaker 1: together about the future in a positive way. It can

609
00:27:12,960 --> 00:27:14,960
Speaker 1: make that decision to invest feel like something that you're

610
00:27:15,000 --> 00:27:18,199
Speaker 1: doing on purpose instead of that you're just doing the

611
00:27:18,240 --> 00:27:20,840
Speaker 1: responsible thing because you're supposed to. You want to find

612
00:27:20,840 --> 00:27:24,119
Speaker 1: ways to link that money that you're sacking away to

613
00:27:24,240 --> 00:27:26,680
Speaker 1: whatever future goals that you both are striving after. Yeah,

614
00:27:26,720 --> 00:27:29,440
Speaker 1: I feel like on purpose is just the biggest two

615
00:27:29,520 --> 00:27:33,640
Speaker 1: words there for every investor, for everybody handling their personal finances, right,

616
00:27:34,000 --> 00:27:37,000
Speaker 1: having that why behind you really helps fuel you in

617
00:27:37,000 --> 00:27:39,440
Speaker 1: the right direction. And so what that looks like is

618
00:27:39,440 --> 00:27:41,679
Speaker 1: is to make those goals as tangible as possible. Right,

619
00:27:41,720 --> 00:27:44,919
Speaker 1: Like you mentioned asking him what this big why behind

620
00:27:45,000 --> 00:27:47,119
Speaker 1: his money? Uh, it might be too grand of a

621
00:27:47,200 --> 00:27:50,240
Speaker 1: question to ask initially, pretty like it's pretty nebulous. Why

622
00:27:50,280 --> 00:27:52,879
Speaker 1: behind your money, it's like, what do you mean? And

623
00:27:52,960 --> 00:27:55,239
Speaker 1: unless you've listened to that episode, unless you've heard us

624
00:27:55,240 --> 00:27:57,119
Speaker 1: talk about it, I think a lot of folks are

625
00:27:57,160 --> 00:27:59,160
Speaker 1: probably like, huh like that. They just kinda like stare

626
00:27:59,160 --> 00:28:00,639
Speaker 1: at you with blank eis. So you gotta ask like

627
00:28:00,640 --> 00:28:02,879
Speaker 1: smaller questions to kind of pinpoint that why right you

628
00:28:02,920 --> 00:28:05,520
Speaker 1: kind of kind of drive the conversation towards that. And

629
00:28:05,560 --> 00:28:08,359
Speaker 1: so instead of asking him that, maybe ask him what

630
00:28:08,440 --> 00:28:11,600
Speaker 1: he like his ideal calendar to look like, get practical

631
00:28:11,640 --> 00:28:13,240
Speaker 1: about it. What do you want? What do you want

632
00:28:13,240 --> 00:28:14,600
Speaker 1: your weeks look like? What do you want your weekends

633
00:28:14,600 --> 00:28:17,400
Speaker 1: to look like? Or like even just your mornings. Do

634
00:28:17,280 --> 00:28:19,080
Speaker 1: you do you want do you want less work in

635
00:28:19,080 --> 00:28:21,840
Speaker 1: your life? Do you want more uh time to go

636
00:28:21,960 --> 00:28:24,199
Speaker 1: for hikes or bike rides or what like? What is

637
00:28:24,240 --> 00:28:27,359
Speaker 1: it that's kind of motivating you? And then find the

638
00:28:27,400 --> 00:28:30,600
Speaker 1: way that the money intersects that, right, because like investing

639
00:28:30,600 --> 00:28:33,080
Speaker 1: so that we can have financial freedom, it sounds kind

640
00:28:33,119 --> 00:28:35,800
Speaker 1: of boring and it sounds kind of lifeless. And so

641
00:28:35,880 --> 00:28:37,720
Speaker 1: you have to bring life up to that in your

642
00:28:37,720 --> 00:28:41,280
Speaker 1: own marriage, in your own personal life, because investing so

643
00:28:41,320 --> 00:28:43,760
Speaker 1: that in the future you can achieve those goals. You

644
00:28:43,760 --> 00:28:45,800
Speaker 1: can travel abroad with your greate kids for you know,

645
00:28:45,840 --> 00:28:48,000
Speaker 1: weeks at a time, take a sabbatical or so that

646
00:28:48,000 --> 00:28:50,480
Speaker 1: you can even do something like transitioning to a lower

647
00:28:50,480 --> 00:28:53,720
Speaker 1: paying but more fulfilling career that is less demanding. Like

648
00:28:53,760 --> 00:28:55,320
Speaker 1: those are the kinds of discussions that are going to

649
00:28:55,440 --> 00:28:58,720
Speaker 1: add some color to that conversation. It's less about like, well,

650
00:28:58,720 --> 00:29:00,920
Speaker 1: when do we want to achieve financially dependence, because that's

651
00:29:00,960 --> 00:29:03,320
Speaker 1: a boring conversation that I don't ever want to have

652
00:29:03,480 --> 00:29:06,560
Speaker 1: with my wife. Um, but yeah, talking about those goals

653
00:29:06,600 --> 00:29:09,000
Speaker 1: that we have the more exciting things to where we're

654
00:29:09,040 --> 00:29:11,880
Speaker 1: investing for something specific that's going to make our lives

655
00:29:12,080 --> 00:29:14,120
Speaker 1: better and achieve some of those bigger goals that we

656
00:29:14,160 --> 00:29:15,840
Speaker 1: have for ourselves, Like those are the exciting things to

657
00:29:15,840 --> 00:29:18,440
Speaker 1: talk about. Absolutely, and maybe Leslie too, Like for him,

658
00:29:18,600 --> 00:29:21,400
Speaker 1: maybe it's about like maybe he feels slightly guilty for

659
00:29:21,480 --> 00:29:23,200
Speaker 1: the success that you have had, and so maybe what

660
00:29:23,240 --> 00:29:25,480
Speaker 1: that means is giving more of your money away, Like

661
00:29:25,520 --> 00:29:27,920
Speaker 1: maybe there's a place for that charitable giving, And so

662
00:29:28,160 --> 00:29:30,120
Speaker 1: through your conversations that you're gonna have with them, hopefully

663
00:29:30,120 --> 00:29:31,760
Speaker 1: you can kind of get to the root of what

664
00:29:31,800 --> 00:29:33,920
Speaker 1: it is that he wants his life and he wants

665
00:29:33,960 --> 00:29:35,800
Speaker 1: y'all's life to look like as a couple, as a

666
00:29:35,840 --> 00:29:37,960
Speaker 1: family in the future. And so best of luck with

667
00:29:37,960 --> 00:29:40,160
Speaker 1: this conversation, and we hope you enjoy it, you know,

668
00:29:40,240 --> 00:29:43,280
Speaker 1: like have fun as you talk about your future together.

669
00:29:43,440 --> 00:29:46,240
Speaker 1: Like this is that should be inspirational. It shouldn't feel

670
00:29:46,240 --> 00:29:48,000
Speaker 1: like homework. It should more feel like like you want

671
00:29:48,000 --> 00:29:50,120
Speaker 1: a prize. And now you're going to decide which prize

672
00:29:50,120 --> 00:29:51,760
Speaker 1: you're gonna pick, because that's what it is that you're

673
00:29:51,760 --> 00:29:55,000
Speaker 1: gonna be seeking after. But but also obviously you've got

674
00:29:55,000 --> 00:29:57,040
Speaker 1: your own views and your own goals, but you know,

675
00:29:57,160 --> 00:29:59,160
Speaker 1: be curious about his point of view as well. And

676
00:29:59,360 --> 00:30:01,880
Speaker 1: you know, either route you take your family is gonna

677
00:30:01,880 --> 00:30:03,800
Speaker 1: be fine because it sounds like you've been making really

678
00:30:03,800 --> 00:30:06,400
Speaker 1: smart money decisions with your money for a long time.

679
00:30:06,480 --> 00:30:08,920
Speaker 1: Now you're on Money Geared number seven. We're really proud

680
00:30:08,920 --> 00:30:10,920
Speaker 1: of y'all, And uh, yeah, I hope this is something

681
00:30:10,960 --> 00:30:13,040
Speaker 1: that you and your husband are able to figure out soon.

682
00:30:13,120 --> 00:30:16,960
Speaker 1: And yeah, sometimes just acknowledging that realizing that your options

683
00:30:17,080 --> 00:30:19,960
Speaker 1: are pretty wide open because you've handled money well for

684
00:30:20,000 --> 00:30:22,680
Speaker 1: so long can really help like ease the stress of

685
00:30:22,720 --> 00:30:25,440
Speaker 1: that conversation too. It's like, hey, we actually have a

686
00:30:25,480 --> 00:30:28,280
Speaker 1: lot of options here. Just acknowledging those options even at

687
00:30:28,320 --> 00:30:30,400
Speaker 1: the beginning of the conversation and the success you've had

688
00:30:30,560 --> 00:30:33,360
Speaker 1: I think can really help kick start that conversation in

689
00:30:33,520 --> 00:30:36,240
Speaker 1: a good way to Absolutely so, we are going to

690
00:30:36,280 --> 00:30:37,800
Speaker 1: take a quick break. But after that we've got our

691
00:30:37,880 --> 00:30:40,200
Speaker 1: last two questions. We're gonna get to that question about

692
00:30:40,440 --> 00:30:43,680
Speaker 1: making the most of that big investing mistake, specifically when

693
00:30:43,680 --> 00:30:46,720
Speaker 1: it comes to cryptocurrencies and meme stocks. We're gonna get

694
00:30:46,720 --> 00:30:48,840
Speaker 1: to that one plus one other right after this break.

695
00:30:58,000 --> 00:31:00,480
Speaker 1: All right, we're back in Matt. It's now im time

696
00:31:00,520 --> 00:31:03,280
Speaker 1: to talk about what do you do after you've made

697
00:31:03,320 --> 00:31:05,920
Speaker 1: an investing screw up. We've got a listener who did

698
00:31:05,960 --> 00:31:07,880
Speaker 1: that very thing, and he's got some questions about how

699
00:31:07,920 --> 00:31:10,720
Speaker 1: to rebound. Well, let's get to that now. Hey, Joelan Matt,

700
00:31:10,880 --> 00:31:13,600
Speaker 1: I take it from Nebraska here, but you can help

701
00:31:13,600 --> 00:31:16,440
Speaker 1: me make the best of a terrible financial mistake. For

702
00:31:16,520 --> 00:31:19,000
Speaker 1: some background, I decided to quit my job and sell

703
00:31:19,080 --> 00:31:22,360
Speaker 1: my house in early to start my own project. In

704
00:31:22,440 --> 00:31:26,000
Speaker 1: March of invested about seven came bitcoin when it was

705
00:31:26,040 --> 00:31:28,080
Speaker 1: in a slump, and I didn't really think about it much.

706
00:31:28,320 --> 00:31:30,480
Speaker 1: By the end of January one, though, I had a

707
00:31:30,480 --> 00:31:33,440
Speaker 1: ground about thirty K. This is when I done goofed

708
00:31:34,040 --> 00:31:37,120
Speaker 1: I moved all my big on fun money into game

709
00:31:37,160 --> 00:31:40,800
Speaker 1: Stop and well you know how that ended. Ask about

710
00:31:40,800 --> 00:31:44,840
Speaker 1: twenty K of my investment. Well, I'm not destitute. I

711
00:31:44,880 --> 00:31:47,840
Speaker 1: still have a nice savings account, twenty kan stock options

712
00:31:47,840 --> 00:31:50,760
Speaker 1: and up for one K in touch, and I decided

713
00:31:50,760 --> 00:31:52,880
Speaker 1: to work with my parents to make some exture money

714
00:31:53,080 --> 00:31:55,640
Speaker 1: to can be going for a while longer. Is there

715
00:31:55,640 --> 00:31:58,240
Speaker 1: anything I can do to make the best out of

716
00:31:58,280 --> 00:32:01,680
Speaker 1: my loss, whether through actors or something else. I wish

717
00:32:01,720 --> 00:32:03,479
Speaker 1: I could have been listening to you guys earlier this

718
00:32:03,560 --> 00:32:06,200
Speaker 1: year and maybe avoid at all of this. Thank you,

719
00:32:06,840 --> 00:32:08,280
Speaker 1: all right, Matt. First things first, when it comes to

720
00:32:08,320 --> 00:32:10,960
Speaker 1: editor's question, I have to I have to say to

721
00:32:11,120 --> 00:32:14,240
Speaker 1: Edgar stop beating yourself up, man, because I feel like

722
00:32:14,280 --> 00:32:16,360
Speaker 1: that's probably the worst thing you can do after you've

723
00:32:16,400 --> 00:32:18,320
Speaker 1: made a mistake, is just to replay it over and

724
00:32:18,360 --> 00:32:21,200
Speaker 1: over in your head, right, like just giving yourself crap

725
00:32:21,680 --> 00:32:24,480
Speaker 1: for for having made a mistake. Because we have all

726
00:32:24,520 --> 00:32:27,840
Speaker 1: made mistakes, and the key is learning from that mistake

727
00:32:28,200 --> 00:32:30,240
Speaker 1: and not letting it defind you. It actually makes me

728
00:32:30,240 --> 00:32:32,560
Speaker 1: think of a recent low Key episode where he had

729
00:32:32,600 --> 00:32:35,080
Speaker 1: to relive this bad decision that he made over and over.

730
00:32:35,320 --> 00:32:38,280
Speaker 1: Not unlike what you were just saying, Uh, Edgar, don't

731
00:32:38,280 --> 00:32:42,000
Speaker 1: be like low Key in this case. But the other

732
00:32:42,040 --> 00:32:43,800
Speaker 1: thing here to make sure that you're doing is to

733
00:32:44,000 --> 00:32:45,920
Speaker 1: just make sure that you learn from this experience, right,

734
00:32:46,080 --> 00:32:49,200
Speaker 1: like it sounds like you have. But investing in the

735
00:32:49,400 --> 00:32:52,400
Speaker 1: hyped up cryptocurrencies that are the latest and greatest out

736
00:32:52,400 --> 00:32:54,360
Speaker 1: there are the different meme stocks of the moment can

737
00:32:54,440 --> 00:32:57,840
Speaker 1: have real consequences. The different headlines that you read will

738
00:32:57,880 --> 00:33:00,240
Speaker 1: make it seem like a bunch of folks are getting

739
00:33:00,360 --> 00:33:02,240
Speaker 1: rich and that you're the only one sitting out on

740
00:33:02,280 --> 00:33:04,959
Speaker 1: the sidelines. But that's just not true. Uh. And so

741
00:33:05,040 --> 00:33:06,560
Speaker 1: we want you to do whatever it takes to turn

742
00:33:06,600 --> 00:33:09,320
Speaker 1: off the different noisy inputs, you know, like the different

743
00:33:09,320 --> 00:33:13,120
Speaker 1: subredits that might be encouraging you to invest in something

744
00:33:13,240 --> 00:33:15,680
Speaker 1: just because a small group of folks have deemed it

745
00:33:15,760 --> 00:33:17,440
Speaker 1: to be the stock of the moment. This is all

746
00:33:17,440 --> 00:33:20,000
Speaker 1: what we're gonna throw our collective weight behind, diamond hands

747
00:33:20,000 --> 00:33:22,720
Speaker 1: to the moon, whatever terminology they use, I don't know,

748
00:33:22,760 --> 00:33:24,440
Speaker 1: because we don't Joel and I. We're not into that,

749
00:33:25,080 --> 00:33:27,440
Speaker 1: but that's what folks are doing, and that type of

750
00:33:27,480 --> 00:33:30,320
Speaker 1: investing is pure speculation. Yeah, and all the headlines we

751
00:33:30,360 --> 00:33:33,280
Speaker 1: see often there's a profile of somebody that has made

752
00:33:33,280 --> 00:33:35,760
Speaker 1: out like a bandit, But there's just so many more

753
00:33:35,760 --> 00:33:38,400
Speaker 1: people like you, Egger in your position who end up

754
00:33:38,440 --> 00:33:41,040
Speaker 1: being hurt in the aftermath of something like investing in

755
00:33:41,080 --> 00:33:43,360
Speaker 1: a meme stock. So yeah, but but how can you

756
00:33:43,440 --> 00:33:46,960
Speaker 1: potentially turn this mistake into your advantage besides you just

757
00:33:47,160 --> 00:33:49,920
Speaker 1: learning from it? Well, yeah, I think one it's it's

758
00:33:49,960 --> 00:33:53,360
Speaker 1: important to transition from the idea the way you're kind

759
00:33:53,360 --> 00:33:57,360
Speaker 1: of training stocks now, which we would say is more speculative,

760
00:33:57,520 --> 00:34:00,360
Speaker 1: and get more comfortable with the idea of getting rich slow. Right,

761
00:34:00,400 --> 00:34:03,600
Speaker 1: that's the ulcer free way to invent, which you know

762
00:34:03,680 --> 00:34:06,960
Speaker 1: that I don't personally want to have like health problems

763
00:34:07,440 --> 00:34:08,759
Speaker 1: due to the way I'm investing. I don't want to

764
00:34:08,760 --> 00:34:10,480
Speaker 1: be super stressed out about I don't have to pay

765
00:34:10,520 --> 00:34:12,719
Speaker 1: for it with your body. I was I was moving

766
00:34:12,760 --> 00:34:14,200
Speaker 1: on stumps around the other day and I kind of

767
00:34:14,200 --> 00:34:16,520
Speaker 1: stumbled and I jammed my finger. It's still like, look

768
00:34:16,520 --> 00:34:18,600
Speaker 1: how fat and swollen it is. It's been like weeks,

769
00:34:18,960 --> 00:34:20,120
Speaker 1: that's not the kind of thing I want to deal

770
00:34:20,160 --> 00:34:23,200
Speaker 1: with anymore. In your twenties, that would have been the case. Yeah,

771
00:34:23,600 --> 00:34:24,960
Speaker 1: ways that would have bounced back. But now that I'm

772
00:34:25,000 --> 00:34:28,879
Speaker 1: in the thirties, I'm like, ouchy fothered me. Well. But yeah,

773
00:34:28,920 --> 00:34:31,880
Speaker 1: one other way for for for Edgar to make lemonade

774
00:34:31,880 --> 00:34:36,640
Speaker 1: that lemons here is to do some tax loss harvesting, Right, Edgar,

775
00:34:36,680 --> 00:34:39,400
Speaker 1: if you have other investments that have made a solid return, right,

776
00:34:39,400 --> 00:34:41,840
Speaker 1: you can sell both your winners and your losers in

777
00:34:41,880 --> 00:34:43,920
Speaker 1: the same calendar year, and that allows you to at

778
00:34:43,960 --> 00:34:45,560
Speaker 1: least offset some of the tax that you would have

779
00:34:45,560 --> 00:34:47,799
Speaker 1: paid from the winners if you were to sell them

780
00:34:48,040 --> 00:34:51,839
Speaker 1: in let's say, separate calendar years. So that's one thing

781
00:34:51,840 --> 00:34:53,680
Speaker 1: that you can do, one you know, tax move that

782
00:34:53,719 --> 00:34:55,799
Speaker 1: you can do that maybe at least lessons to blow

783
00:34:55,800 --> 00:34:57,839
Speaker 1: a little bit, that's right. Yeah, So Edgar, in your case,

784
00:34:58,040 --> 00:34:59,879
Speaker 1: it sounds like you head onto your bitcoin for less

785
00:34:59,880 --> 00:35:02,600
Speaker 1: than the year. If you purchased in March of sold

786
00:35:02,640 --> 00:35:06,040
Speaker 1: in January one, that's not twelve months, and so you're

787
00:35:06,040 --> 00:35:08,680
Speaker 1: realizing a short term capital gain. But then you bought

788
00:35:08,719 --> 00:35:10,560
Speaker 1: a m C and since you said that, you lost

789
00:35:10,560 --> 00:35:13,160
Speaker 1: twenty K. I'm guessing that you sold, which means that

790
00:35:13,200 --> 00:35:16,120
Speaker 1: you've realized a short term loss. And so though it

791
00:35:16,120 --> 00:35:19,399
Speaker 1: never feels good to lose money ever, right, you can

792
00:35:19,440 --> 00:35:21,880
Speaker 1: take maybe some solace in knowing that your gains and

793
00:35:21,880 --> 00:35:25,239
Speaker 1: your losses might effectively cancel each other out and you'll

794
00:35:25,239 --> 00:35:27,520
Speaker 1: likely have to pay the I R S very little

795
00:35:27,560 --> 00:35:30,120
Speaker 1: in taxes. But that being said, since we don't know

796
00:35:30,160 --> 00:35:32,080
Speaker 1: what your income is, do make sure that you can

797
00:35:32,080 --> 00:35:35,960
Speaker 1: sold short and long term capital gains rate charts, so

798
00:35:36,000 --> 00:35:37,920
Speaker 1: that way you know you're reporting the right numbers to

799
00:35:38,040 --> 00:35:40,239
Speaker 1: the I R S. Yeah, and moving forward to right,

800
00:35:40,600 --> 00:35:43,840
Speaker 1: we would suggest to everyone and to you also to

801
00:35:43,920 --> 00:35:47,440
Speaker 1: invest no more than five percent of your total investment

802
00:35:47,840 --> 00:35:51,879
Speaker 1: dollars in speculative assets like meme stocks and crypto. And actually, Matt,

803
00:35:51,960 --> 00:35:54,160
Speaker 1: I mean, I know you own a little crypto, but

804
00:35:54,520 --> 00:35:57,400
Speaker 1: for most folks zero percent is often better because that

805
00:35:57,440 --> 00:35:59,880
Speaker 1: means you're not obsessing over the movements of one or

806
00:35:59,880 --> 00:36:03,160
Speaker 1: two companies or one or two cryptocurrencies that you're invested in.

807
00:36:03,440 --> 00:36:05,600
Speaker 1: I personally don't want that stuff taking up any space

808
00:36:05,600 --> 00:36:07,920
Speaker 1: in my brain, and I know myself, I know if

809
00:36:07,920 --> 00:36:10,520
Speaker 1: I go down that rabbit hole of speculating even with

810
00:36:10,600 --> 00:36:13,640
Speaker 1: just this tiny portion of my money, even if really comparatively,

811
00:36:13,640 --> 00:36:15,239
Speaker 1: if I lost at all, it doesn't have much of

812
00:36:15,280 --> 00:36:17,320
Speaker 1: an impact on my life. I'll still be checking in

813
00:36:17,400 --> 00:36:19,520
Speaker 1: every day. And I think that's true for most people

814
00:36:20,040 --> 00:36:22,440
Speaker 1: who dabble in these things. They're really in it for

815
00:36:22,480 --> 00:36:24,360
Speaker 1: the day to day moments. They're less in it for

816
00:36:24,400 --> 00:36:27,160
Speaker 1: the decades, and so it does take up an inordinate

817
00:36:27,200 --> 00:36:29,279
Speaker 1: amount of brain space. Yeah, that's just that's just not

818
00:36:29,320 --> 00:36:31,719
Speaker 1: really for me, because I'd rather have mental bandwidth to

819
00:36:31,800 --> 00:36:35,279
Speaker 1: go towards the other most important things in life. And so, yeah,

820
00:36:35,320 --> 00:36:37,719
Speaker 1: investing in that way is just something that we would

821
00:36:37,760 --> 00:36:40,919
Speaker 1: suggest not doing much of, if any of it at all,

822
00:36:41,200 --> 00:36:44,080
Speaker 1: in the future. Stick more to Yeah, index funds, total

823
00:36:44,080 --> 00:36:47,439
Speaker 1: stock market index funds, or the SMP five index fund,

824
00:36:47,640 --> 00:36:51,080
Speaker 1: or a target date retirement fund. They're super boring, but

825
00:36:51,080 --> 00:36:53,120
Speaker 1: you're also not going to see the crazy ups and

826
00:36:53,160 --> 00:36:57,759
Speaker 1: downs and severe losses of money that that you've seen either. Yeah,

827
00:36:57,960 --> 00:36:59,759
Speaker 1: I will say, in defense of Edgar a little bit,

828
00:37:00,200 --> 00:37:02,120
Speaker 1: he did actually call or he called it his play

829
00:37:02,120 --> 00:37:05,120
Speaker 1: money basically, and so that like I find some encouragement

830
00:37:05,120 --> 00:37:07,239
Speaker 1: there knowing that. And he also did mention too he's

831
00:37:07,280 --> 00:37:08,600
Speaker 1: got that four O one K that he's not planning

832
00:37:08,640 --> 00:37:10,960
Speaker 1: on touching. So it makes it sound like he does

833
00:37:11,200 --> 00:37:13,920
Speaker 1: have a solid, massive portfolio and that this wasn't too

834
00:37:13,960 --> 00:37:16,600
Speaker 1: much money for him. But yeah, it was money maybe

835
00:37:16,600 --> 00:37:19,040
Speaker 1: that he was willing to risk. But even still, it's like,

836
00:37:19,280 --> 00:37:21,759
Speaker 1: I can't believe I lost it all right. You need

837
00:37:21,800 --> 00:37:24,520
Speaker 1: to be willing to invest money or to play around

838
00:37:24,520 --> 00:37:27,120
Speaker 1: with money that if you lost it all that it

839
00:37:27,160 --> 00:37:29,000
Speaker 1: wouldn't really bother you that much. It can't be money

840
00:37:29,000 --> 00:37:31,040
Speaker 1: that you're counting on. And it also helps too if

841
00:37:31,080 --> 00:37:32,600
Speaker 1: you're kind of like a robot like me, where you

842
00:37:32,600 --> 00:37:35,960
Speaker 1: can just like turn off your emotions and refused to

843
00:37:36,080 --> 00:37:39,600
Speaker 1: check where bitcoin and where ethereum is because I'm I mean,

844
00:37:39,640 --> 00:37:42,200
Speaker 1: I've got money in both of those and I literally

845
00:37:42,200 --> 00:37:44,719
Speaker 1: don't know where they are until sometimes you'll mention it. Joel,

846
00:37:44,760 --> 00:37:47,400
Speaker 1: You're like, oh, man, have you seen it dropped like

847
00:37:47,400 --> 00:37:49,960
Speaker 1: ten percent today? I'm like, oh, well, I didn't know that,

848
00:37:50,000 --> 00:37:52,399
Speaker 1: but thanks for telling me. I personally, I think I'm

849
00:37:52,400 --> 00:37:54,560
Speaker 1: more interested in your playing money portfolio than you are.

850
00:37:54,640 --> 00:37:57,160
Speaker 1: You care more about than I do. Whereas my approach,

851
00:37:57,360 --> 00:37:59,960
Speaker 1: I mean, I've got five percent of my overall portfolio

852
00:38:00,160 --> 00:38:03,000
Speaker 1: in UH in cryptocurrencies. But I'm not going to even

853
00:38:03,120 --> 00:38:05,319
Speaker 1: really sit down and look at the numbers UH for

854
00:38:05,360 --> 00:38:07,160
Speaker 1: a full year. And so if that sounds like something

855
00:38:07,200 --> 00:38:10,080
Speaker 1: that you're capable of doing, maybe that's an option for you.

856
00:38:10,280 --> 00:38:13,240
Speaker 1: But for everyone else, it definitely pays to know yourself

857
00:38:13,520 --> 00:38:14,959
Speaker 1: and it may not be something you want to dable

858
00:38:15,000 --> 00:38:17,000
Speaker 1: in at all if you know it's going to stress

859
00:38:17,000 --> 00:38:18,880
Speaker 1: you out. All right, let's get to our last question,

860
00:38:19,239 --> 00:38:21,200
Speaker 1: and this one is coming from a listener and they're

861
00:38:21,200 --> 00:38:25,000
Speaker 1: they're trying to decide if this extra degree, if it's

862
00:38:25,040 --> 00:38:26,919
Speaker 1: gonna be worth it. So let's hear that one. Now

863
00:38:27,760 --> 00:38:30,319
Speaker 1: they have the money. This is Matt and Rochester, New York.

864
00:38:30,520 --> 00:38:32,960
Speaker 1: I'm a big fan of the show. My wife is

865
00:38:33,000 --> 00:38:35,600
Speaker 1: looking to go back to school get her masters in

866
00:38:35,680 --> 00:38:39,399
Speaker 1: child development. It's going to be about fifty dollars, which

867
00:38:39,400 --> 00:38:42,000
Speaker 1: we're able to fund with the sale price of our house,

868
00:38:42,280 --> 00:38:46,400
Speaker 1: so no loans. That's good. My question is, how do

869
00:38:46,480 --> 00:38:50,600
Speaker 1: we know how long it's going to take to recoup

870
00:38:50,680 --> 00:38:54,680
Speaker 1: this fifty dollars with an increase in her salary. I

871
00:38:54,760 --> 00:38:56,880
Speaker 1: feel like maybe about two years ago, you had a

872
00:38:56,920 --> 00:38:59,839
Speaker 1: guest on a show and there's a score that was calculated.

873
00:39:00,000 --> 00:39:03,520
Speaker 1: I looked at the cost of education compared to the

874
00:39:03,560 --> 00:39:07,799
Speaker 1: increased cost and salary after that education is completed, and

875
00:39:07,880 --> 00:39:10,640
Speaker 1: it came up with a nice little score. Maybe you

876
00:39:10,640 --> 00:39:12,960
Speaker 1: can point me back in that direction, or do you

877
00:39:12,960 --> 00:39:16,600
Speaker 1: have any other resources I can take a look at. Thanks, Oh, Matt,

878
00:39:16,600 --> 00:39:19,480
Speaker 1: that's a good question. Hey, getting an advanced degree, when

879
00:39:19,480 --> 00:39:21,799
Speaker 1: does it payoff? Or when is it just too much

880
00:39:21,840 --> 00:39:24,600
Speaker 1: money you shouldn't be paying. That's a good question and

881
00:39:24,840 --> 00:39:28,480
Speaker 1: question that's not cheap. But also at the same time,

882
00:39:29,040 --> 00:39:31,600
Speaker 1: we're so glad, Matt that you're able to pay for

883
00:39:31,680 --> 00:39:35,080
Speaker 1: that education without taking on any additional debt. Right, this

884
00:39:35,160 --> 00:39:38,000
Speaker 1: is just such such a big accomplishment, So kudos to

885
00:39:38,040 --> 00:39:41,000
Speaker 1: both of you. Were big fans of got debt free education.

886
00:39:41,200 --> 00:39:44,439
Speaker 1: It's certainly not doable for everyone, but yeah, the fact

887
00:39:44,440 --> 00:39:46,400
Speaker 1: that you guys are going to be able to fully

888
00:39:46,400 --> 00:39:49,439
Speaker 1: funded with cash on hand is just a huge step

889
00:39:49,440 --> 00:39:51,400
Speaker 1: in the right direction because you're not paying additional interest

890
00:39:51,400 --> 00:39:54,200
Speaker 1: on that fifty and that's big exactly. Yeah, And before

891
00:39:54,200 --> 00:39:55,960
Speaker 1: we get even more serious with it, did it sound

892
00:39:56,040 --> 00:39:58,320
Speaker 1: like Matt like he he totally sounded like David Harbor

893
00:39:58,440 --> 00:40:01,680
Speaker 1: to me. Uh, from Trade of Things. Yeah, Jim Hopper's

894
00:40:01,719 --> 00:40:03,359
Speaker 1: his character and stener things. Didn't you kind of sound

895
00:40:03,400 --> 00:40:06,560
Speaker 1: like that he's got that uh that vibe going on? There?

896
00:40:06,560 --> 00:40:09,799
Speaker 1: Another Stranger Things season coming out this season four. It's

897
00:40:09,800 --> 00:40:11,719
Speaker 1: been on hold. I have no idea where it is,

898
00:40:11,800 --> 00:40:15,360
Speaker 1: but I need it in my life. But Matt, you know,

899
00:40:15,440 --> 00:40:17,080
Speaker 1: you're right. You know, we did talk about how to

900
00:40:17,080 --> 00:40:19,479
Speaker 1: assess the value of a college degree quite a while

901
00:40:19,520 --> 00:40:22,000
Speaker 1: back with Christie Sen. That was back in the episode

902
00:40:22,040 --> 00:40:25,560
Speaker 1: one eighteen. She totally rocks, and she's got this really

903
00:40:25,560 --> 00:40:29,320
Speaker 1: incredible story about growing up in poverty and China before

904
00:40:29,440 --> 00:40:32,720
Speaker 1: she immigrated to Canada. But she calls this her POT

905
00:40:32,880 --> 00:40:36,160
Speaker 1: score or her POT score, which stands for pay over tuition,

906
00:40:36,480 --> 00:40:38,920
Speaker 1: And Christie says that you take the median starting salary

907
00:40:38,960 --> 00:40:41,480
Speaker 1: that you can expect to earn above minimum wage, and

908
00:40:41,520 --> 00:40:44,600
Speaker 1: then divide it by the total tuition cost of the degree.

909
00:40:44,760 --> 00:40:47,120
Speaker 1: This gives you a single number that you can use

910
00:40:47,200 --> 00:40:49,560
Speaker 1: to rank whether a degree is worth the amount of

911
00:40:49,600 --> 00:40:52,640
Speaker 1: money that you'd be paying to get it. And so yeah,

912
00:40:52,680 --> 00:40:54,959
Speaker 1: if it takes you more than ten years to pay

913
00:40:55,000 --> 00:40:57,720
Speaker 1: back that advanced degree, we feel that it's it's likely

914
00:40:57,880 --> 00:40:59,719
Speaker 1: not worth it. Yeah, if you're gonna be able to

915
00:40:59,760 --> 00:41:01,319
Speaker 1: pay it back in two to three years, and that's

916
00:41:01,320 --> 00:41:03,880
Speaker 1: a that's a pretty good pot score. But yeah, if

917
00:41:03,880 --> 00:41:06,840
Speaker 1: the earnings, Yeah, if the earnings aren't going to justify

918
00:41:06,880 --> 00:41:09,000
Speaker 1: themselves and it's gonna take a decade or longer than

919
00:41:09,040 --> 00:41:12,919
Speaker 1: you're like, maybe I should rethink this, uh, this future course.

920
00:41:13,239 --> 00:41:15,719
Speaker 1: And you're also having to estimate what your future earnings

921
00:41:15,760 --> 00:41:17,440
Speaker 1: are going to be, Like what do most people in

922
00:41:17,440 --> 00:41:19,839
Speaker 1: this profession after they get this this degree, what are

923
00:41:19,840 --> 00:41:21,840
Speaker 1: they earning? And so, yeah, I think it is a

924
00:41:21,840 --> 00:41:25,359
Speaker 1: great formula. It's it's really crucial to know what your

925
00:41:25,400 --> 00:41:27,479
Speaker 1: wife's likely salary is going to be in the years

926
00:41:27,520 --> 00:41:30,080
Speaker 1: following getting that degree, because it gives you that information

927
00:41:30,080 --> 00:41:31,920
Speaker 1: that you need. Right, So if you're going into a

928
00:41:31,920 --> 00:41:34,319
Speaker 1: blind you're like, you have no idea, So you have

929
00:41:34,360 --> 00:41:36,560
Speaker 1: to do some research on on that front. But yeah,

930
00:41:36,560 --> 00:41:39,240
Speaker 1: advanced degrees can make a big difference in the income

931
00:41:39,280 --> 00:41:40,880
Speaker 1: that you're gonna be able to make, and it can

932
00:41:40,920 --> 00:41:44,160
Speaker 1: mean more income for decades and so especially Yeah, the

933
00:41:44,200 --> 00:41:46,560
Speaker 1: younger you are, the more use and all like that

934
00:41:46,640 --> 00:41:49,120
Speaker 1: you're going to get out of that advanced degree. So, uh,

935
00:41:49,200 --> 00:41:51,359
Speaker 1: we're actually having to do something similar because my wife

936
00:41:51,440 --> 00:41:53,680
Speaker 1: is planning to go back to school to get a

937
00:41:53,719 --> 00:41:56,080
Speaker 1: counseling degree. Yeah, and this is something that we've been

938
00:41:56,120 --> 00:41:59,480
Speaker 1: talking about like since before we even got married, and

939
00:41:59,600 --> 00:42:01,680
Speaker 1: now it's kind of like, all right, why why have

940
00:42:01,719 --> 00:42:03,560
Speaker 1: we been waiting this long? Let's do it. And so

941
00:42:03,960 --> 00:42:06,280
Speaker 1: it's actually going to happen. And it's a bit harder

942
00:42:06,280 --> 00:42:08,800
Speaker 1: for us to figure out because she doesn't have a

943
00:42:08,880 --> 00:42:11,440
Speaker 1: job currently where she's earning an income. Um, so we're

944
00:42:11,480 --> 00:42:13,160
Speaker 1: kind of saying, like, well, what would you be making

945
00:42:13,239 --> 00:42:14,959
Speaker 1: right now, and what you know, will you be making

946
00:42:15,000 --> 00:42:17,640
Speaker 1: after this, you know, after you've learned this degree. But yeah,

947
00:42:17,680 --> 00:42:19,520
Speaker 1: we're kind of comparing it to like the job that

948
00:42:19,600 --> 00:42:22,920
Speaker 1: she had before we had kids. And yeah, it looks

949
00:42:23,000 --> 00:42:26,120
Speaker 1: like comparatively that this degree will pay off in four

950
00:42:26,239 --> 00:42:28,400
Speaker 1: or so years. But it's also crucial to note that

951
00:42:28,400 --> 00:42:31,400
Speaker 1: the different careers provide different fulfillment for all of us

952
00:42:31,440 --> 00:42:33,759
Speaker 1: to write, like for our family, even if it took

953
00:42:33,800 --> 00:42:35,879
Speaker 1: longer to make money back on that degree, it would

954
00:42:35,880 --> 00:42:38,440
Speaker 1: be worth it because my wife, she's basically born to

955
00:42:38,480 --> 00:42:40,440
Speaker 1: be a counselor, Like, she's really good at it, she

956
00:42:40,520 --> 00:42:42,279
Speaker 1: loves it. And this line of work is going to

957
00:42:42,360 --> 00:42:45,600
Speaker 1: be just incredibly fulfilling, And so sometimes it goes beyond

958
00:42:45,640 --> 00:42:47,719
Speaker 1: the dollars in the sense like, yeah, you want the

959
00:42:47,760 --> 00:42:49,520
Speaker 1: dollars and the sense to work out, but if you

960
00:42:49,600 --> 00:42:50,920
Speaker 1: have the money and you don't have to take on

961
00:42:50,960 --> 00:42:52,960
Speaker 1: debt to fund this, you do have at least a

962
00:42:53,000 --> 00:42:55,600
Speaker 1: little more freedom to say, well, how fulfilling is this

963
00:42:55,680 --> 00:42:57,600
Speaker 1: career path going to be? And even if the pot

964
00:42:57,640 --> 00:42:59,880
Speaker 1: score isn't the best, right, you can still just a

965
00:43:00,400 --> 00:43:02,640
Speaker 1: based on some of that other rationale. Yeah, yeah, so

966
00:43:02,680 --> 00:43:05,479
Speaker 1: that that pot score, the pot score, like it's really

967
00:43:05,480 --> 00:43:07,760
Speaker 1: great too when you're starting from scratch and you're considering

968
00:43:07,840 --> 00:43:11,120
Speaker 1: like multiple different degrees that have wildly different costs and

969
00:43:11,320 --> 00:43:13,680
Speaker 1: starting salaries as well. But you know, when you already

970
00:43:13,719 --> 00:43:15,360
Speaker 1: have a path forward that you really want to pursue,

971
00:43:15,760 --> 00:43:17,800
Speaker 1: we feel it's crucial to know how long that payback

972
00:43:17,840 --> 00:43:20,120
Speaker 1: of the degree is likely to take. And then as

973
00:43:20,160 --> 00:43:22,520
Speaker 1: a family, like you're just gonna have to decide yourselves,

974
00:43:22,800 --> 00:43:24,799
Speaker 1: you know, whether or not this makes sense as you

975
00:43:24,880 --> 00:43:26,839
Speaker 1: take into account all the different goals and the things

976
00:43:26,840 --> 00:43:28,960
Speaker 1: that you'll have in mind, you know, because yeah, like

977
00:43:28,960 --> 00:43:31,480
Speaker 1: like in Joel's example here with his wife that counseling

978
00:43:31,520 --> 00:43:33,880
Speaker 1: degree is going to mean a lot to Emily. But

979
00:43:34,080 --> 00:43:36,520
Speaker 1: if there's someone out there considering that same degree and

980
00:43:36,560 --> 00:43:39,319
Speaker 1: they don't really care what it is they're pursuing, well,

981
00:43:39,360 --> 00:43:41,120
Speaker 1: then in that case, it would come down more to

982
00:43:41,160 --> 00:43:43,319
Speaker 1: the numbers than anything else, because it's not something that

983
00:43:43,440 --> 00:43:46,080
Speaker 1: they're going to be gaining personal fulfillment from if they're

984
00:43:46,080 --> 00:43:48,840
Speaker 1: not really interested in the self development that they're going

985
00:43:48,880 --> 00:43:51,000
Speaker 1: to be gaining with that as well. So there are

986
00:43:51,040 --> 00:43:53,520
Speaker 1: a lot of different factors at play here. You've got

987
00:43:53,520 --> 00:43:55,560
Speaker 1: to keep all of those things in mind. We wish

988
00:43:55,560 --> 00:43:57,760
Speaker 1: you the best of luck in making this decision. Matts.

989
00:43:57,880 --> 00:44:01,560
Speaker 1: The numbers are important, but it's not always about the numbers,

990
00:44:01,560 --> 00:44:03,480
Speaker 1: no doubt, and having the cash on hand to pay

991
00:44:03,480 --> 00:44:06,520
Speaker 1: for it definitely de stresses the choice a little bit.

992
00:44:06,560 --> 00:44:09,080
Speaker 1: Right the decision. It makes it a little easier to

993
00:44:09,160 --> 00:44:11,040
Speaker 1: kind of pursue what you want when you can do

994
00:44:11,120 --> 00:44:12,920
Speaker 1: it without taking on debt. Right it gives you the

995
00:44:12,960 --> 00:44:16,319
Speaker 1: freedom to say, I'm making a choice for myself, and

996
00:44:16,360 --> 00:44:19,640
Speaker 1: hopefully it also that that choice that's fulfilling also ends

997
00:44:19,719 --> 00:44:22,200
Speaker 1: up becoming more lucrative at the same time. Absolutely, yeah,

998
00:44:22,239 --> 00:44:24,120
Speaker 1: what if Emily was like Hey, let's I really want

999
00:44:24,120 --> 00:44:28,680
Speaker 1: to take out a parent plus loan for that counseling theory, Well,

1000
00:44:28,840 --> 00:44:30,840
Speaker 1: that would be for a child, And like, yeah, I

1001
00:44:30,880 --> 00:44:32,799
Speaker 1: guess you know. Maybe, Well no, because even when our

1002
00:44:32,880 --> 00:44:34,680
Speaker 1: kids are older, if they want that, we'll find another

1003
00:44:34,680 --> 00:44:36,799
Speaker 1: way to pay for a parent plus are the worst?

1004
00:44:36,840 --> 00:44:38,399
Speaker 1: You don't want to do that? No, all right, let's

1005
00:44:38,400 --> 00:44:40,399
Speaker 1: get back to the beer that we had on this episode, Matt.

1006
00:44:40,480 --> 00:44:43,960
Speaker 1: This was El Dorado Double Dry Hawks Juicy Bits from

1007
00:44:44,120 --> 00:44:46,800
Speaker 1: World Works Brewing Company. This is a brewery out of

1008
00:44:46,800 --> 00:44:51,040
Speaker 1: Colorado that just started distributing here in Atlanta. So I

1009
00:44:51,080 --> 00:44:53,160
Speaker 1: picked these up at our favorite local bottle shop. What

1010
00:44:53,239 --> 00:44:54,680
Speaker 1: was your take on this? I p A man, so

1011
00:44:54,800 --> 00:44:56,800
Speaker 1: stinking good. We've actually had sort of had one of

1012
00:44:56,840 --> 00:44:59,319
Speaker 1: their beers before because they've done a collaboration with one

1013
00:44:59,360 --> 00:45:02,920
Speaker 1: of our favorite local brewers here, Money Night Brewing. But

1014
00:45:03,200 --> 00:45:05,399
Speaker 1: is there a way to describe a beer both as

1015
00:45:05,560 --> 00:45:08,399
Speaker 1: juicy but also dry, because I feel like that's what's

1016
00:45:08,400 --> 00:45:10,240
Speaker 1: going on here because they've got the double dry hopped

1017
00:45:10,239 --> 00:45:12,960
Speaker 1: action going on, and so like, I don't people are

1018
00:45:12,960 --> 00:45:15,800
Speaker 1: gonna just be bored of us talking about double dry hops.

1019
00:45:15,920 --> 00:45:19,160
Speaker 1: I p a s. But they're so stinking good. They've

1020
00:45:19,160 --> 00:45:22,840
Speaker 1: got that bitter, kind of blue cheesy note from the hops,

1021
00:45:22,880 --> 00:45:26,440
Speaker 1: but at the same time, just the kind of citrus, juicy,

1022
00:45:26,800 --> 00:45:28,920
Speaker 1: lushness that you get from this beer at the same

1023
00:45:28,920 --> 00:45:30,719
Speaker 1: time is just so good. I'm a huge fan of

1024
00:45:30,719 --> 00:45:32,359
Speaker 1: this beer and if you can get your hands on it,

1025
00:45:32,360 --> 00:45:34,279
Speaker 1: I would totally recommend it. Yeah, I feel like the

1026
00:45:34,320 --> 00:45:37,720
Speaker 1: aftertaste is incredible. This this beer is like a little pungent,

1027
00:45:38,080 --> 00:45:40,960
Speaker 1: but in a good way, and I feel like like

1028
00:45:41,000 --> 00:45:43,400
Speaker 1: a wash cloth that's soaking up some water. That's why

1029
00:45:43,480 --> 00:45:45,279
Speaker 1: my tongue feels this beer. It feels like it's like

1030
00:45:45,440 --> 00:45:50,520
Speaker 1: infusing my tongue and coming with the beer. Yeah, I

1031
00:45:50,520 --> 00:45:53,000
Speaker 1: guess one with the juicy bits turning into that beer.

1032
00:45:53,080 --> 00:45:56,720
Speaker 1: Tongue is just a juicy bit, But that's it begins

1033
00:45:56,719 --> 00:45:58,960
Speaker 1: to feel like after a while drinking this beer. Absolutely,

1034
00:45:59,000 --> 00:46:01,920
Speaker 1: it's just kind of like that concentrated So yeah, I

1035
00:46:02,239 --> 00:46:04,400
Speaker 1: liked it a lot and look forward to hopefully getting

1036
00:46:04,440 --> 00:46:07,239
Speaker 1: more World Works beers on the shelves here in Atlanta,

1037
00:46:07,320 --> 00:46:09,600
Speaker 1: And I'm sure our listeners are ready to hear us

1038
00:46:10,040 --> 00:46:13,600
Speaker 1: get different types of beers in our beer cooler down

1039
00:46:13,600 --> 00:46:16,080
Speaker 1: here in the podcast studio. Maybe we'll try to include

1040
00:46:16,080 --> 00:46:18,840
Speaker 1: some of the different varieties of beers that are out there. Um,

1041
00:46:18,880 --> 00:46:20,359
Speaker 1: I feel like we tried to mix it up, but

1042
00:46:20,440 --> 00:46:22,360
Speaker 1: it's also hard not to pick up a good looking

1043
00:46:22,400 --> 00:46:24,719
Speaker 1: double dry hop I p a right, Yeah, it's like

1044
00:46:24,960 --> 00:46:28,080
Speaker 1: my hand automatically reaches for it's the default. Yeah, alright,

1045
00:46:28,080 --> 00:46:30,160
Speaker 1: Well that's gonna do it for this episode, Matt. For

1046
00:46:30,320 --> 00:46:32,520
Speaker 1: listeners who want show notes to some of the resources

1047
00:46:32,600 --> 00:46:34,759
Speaker 1: that we mentioned in this episode, you can find those

1048
00:46:34,800 --> 00:46:37,160
Speaker 1: up on our website at how to money dot com.

1049
00:46:37,200 --> 00:46:39,959
Speaker 1: And maybe, like Leslie, you want to talk more about

1050
00:46:40,000 --> 00:46:43,400
Speaker 1: money with your spouse, Well, here is an easy, surefire,

1051
00:46:43,600 --> 00:46:46,400
Speaker 1: fun way to get them talking about money. Just grab

1052
00:46:46,440 --> 00:46:48,560
Speaker 1: their phone of course, you know their you know their code,

1053
00:46:48,840 --> 00:46:50,920
Speaker 1: Hop on there and go to their podcast wherever they

1054
00:46:50,920 --> 00:46:53,600
Speaker 1: listen to podcast search how to Money and subscribe them

1055
00:46:53,640 --> 00:46:57,160
Speaker 1: to the show. That's just a nice way to introduce

1056
00:46:57,200 --> 00:47:00,200
Speaker 1: the conversation of personal finance and a fun, relatable way.

1057
00:47:00,239 --> 00:47:02,160
Speaker 1: How did this podcast get into my rotation? Like, oh,

1058
00:47:02,239 --> 00:47:03,719
Speaker 1: I don't know, must have been just some sort of

1059
00:47:03,800 --> 00:47:08,319
Speaker 1: software Updade that that happened serendipity, Yeah, exactly now, But

1060
00:47:08,400 --> 00:47:10,319
Speaker 1: if if you are listening to this podcast for the

1061
00:47:10,360 --> 00:47:12,840
Speaker 1: first time. We would love it if you didn't subscribe

1062
00:47:12,880 --> 00:47:15,280
Speaker 1: to that you didn't miss any future episodes, and yeah,

1063
00:47:15,400 --> 00:47:18,120
Speaker 1: maybe it is worth considering getting someone you love to

1064
00:47:18,120 --> 00:47:20,480
Speaker 1: subscribe to our show as well. We want everyone out

1065
00:47:20,520 --> 00:47:22,960
Speaker 1: there to do smarter things with their money, and that's

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00:47:22,960 --> 00:47:24,759
Speaker 1: what we strive for here on the show. That's why

1067
00:47:24,760 --> 00:47:27,520
Speaker 1: we talk about personal finance every single episode. So thanks

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00:47:27,560 --> 00:47:29,840
Speaker 1: in advance for that. The Joel. That's going to be

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Speaker 1: it for this episode. Until next time, Best Friends Out,

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00:47:32,600 --> 00:47:33,719
Speaker 1: Best Friends Out,