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Speaker 1: Welcome to How the Money.

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Speaker 2: I'm Joel, I am Matt.

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Speaker 1: And today we're answering your listener questions.

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Speaker 2: All right, buddy, let's get to it. Your is your

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Speaker 2: throat all warmed up?

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Speaker 1: I was born ready, Matt.

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Speaker 2: We did just chat for about fifteen minutes about local

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Speaker 2: politics before before we actually I had already hit record

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Speaker 2: and then we got off topic, so went back over there, stopped, deleted,

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Speaker 2: started fresh from the beginning.

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Speaker 1: Sometimes that happens, like we're friends who we just like

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Speaker 1: to catch up about random other stuff. Were yeah, that

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Speaker 1: that's happening in our lives or around town, and then

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Speaker 1: we're like, oh, wait, we're supposed to be recording a

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Speaker 1: podcast now, aren't we.

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Speaker 2: Got to talk about a personal finance not local politic?

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Speaker 2: Yard signs is that we're.

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Speaker 1: Just deliberating right now. Who's running for local school board?

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Speaker 1: Is the thing?

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Speaker 2: Just stop? Stop?

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Speaker 3: All right?

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Speaker 1: We are endorse candidate right now. Hey, if you.

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Speaker 2: Want to, you to go out on a limb and

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Speaker 2: no thanks, go for it. We're gonna talk about investing

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Speaker 2: when you are younger, when you're twenty five. We're gonna

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Speaker 2: specifically talk about some different accounts that this listener is

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Speaker 2: asking about we're going to discuss insurance coverage limits. Specifically,

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Speaker 2: we got some feedback from a listener. We will address

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Speaker 2: that and plus another point that she raised. Another listener

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Speaker 2: is asking what he should do about a four oh

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Speaker 2: one k loan that he has. We've got all of

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Speaker 2: that to get to plus more today. But buddy, I

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Speaker 2: want to share something really quick. Folks might remember. I

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Speaker 2: guess it was maybe two years ago that there is

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Speaker 2: a small part of me that was thinking we might

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Speaker 2: get a second vehicle, and I was considering a Tesla,

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Speaker 2: and I was just like, I want to I want

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Speaker 2: to drive it. I want to get to get to

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Speaker 2: see what it feels like and what's great.

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Speaker 1: About if you're going to do it, do it quick

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Speaker 1: or that well?

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Speaker 2: I know tax well that that time is it's no

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Speaker 2: longer something I want to do. Okay, But one of

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Speaker 2: the I don't know if you recall, but one of

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Speaker 2: the things I shared was that it was a ton

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Speaker 2: of fun to drive a Tesla, so much fun. I

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Speaker 2: really enjoyed it, but it was a pain in the butt.

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Speaker 2: So this was during a trip when we rented it,

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Speaker 2: which is all, isn't that a great way to try

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Speaker 2: out a car? By the way, while you are traveling

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Speaker 2: somewhere to try to get that particular vehicle before you

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Speaker 2: purchase the dang thing.

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Speaker 1: Because like a twelve minute test drive, he giesn't tell

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Speaker 1: you nothing.

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Speaker 2: Second multi day extended test drive, which is so much fun,

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Speaker 2: especially when it's a Tesla and you're not used to

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Speaker 2: an evy. It was a ton of fun, but it

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Speaker 2: was a pain in the butt to find the Tesla superchargers,

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Speaker 2: the charge points or whatever O.

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Speaker 1: My friends in California say the opposite that were crazy.

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Speaker 1: Where I was, we had to go out of our

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Speaker 1: way to get to a charger.

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Speaker 2: That was the downside as opposed to a gas station

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Speaker 2: on every single corner right, and not to mention because

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Speaker 2: you're tapping into the supercharger as opposed to trickle you know,

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Speaker 2: slow charging at home. If you weren't traveling, it ended

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Speaker 2: up being just as expensive as having filled up traditional

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Speaker 2: gas power vehicle right going to the gas station.

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Speaker 1: Yeah, loading up on that battery at home.

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Speaker 2: That's the way to do it. An of money.

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Speaker 1: Yeah, if you're yeah, if you're filling up on the road, yeah,

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Speaker 1: you're gonna pay a lot.

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Speaker 2: So basically, what I learned was that Okay, I don't

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Speaker 2: want a Tesla, and also I'm not gonna rent another

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Speaker 2: Tesla again because it just didn't really work out for

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Speaker 2: the type of trip that we were taking. Uh So

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Speaker 2: you might be surprised to hear that I just rented

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Speaker 2: another Tesla for a trip that Kate and I were taking.

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Speaker 1: How you changed your tune?

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Speaker 2: Here's the thing.

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Speaker 1: In the span of three seconds.

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Speaker 2: Would you rent a Tesla if it was substantially cheaper

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Speaker 2: than even the most affordable economy traditionally gas powered vehicle, Yes,

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Speaker 2: it would.

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Speaker 1: And that's why I've been running evs lately. Rent a car,

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Speaker 1: it's so great, dude.

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Speaker 2: So the I went to one of the site aggregators,

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Speaker 2: you know where it's got all the different different places

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Speaker 2: that you can rent from. And then I hopped to

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Speaker 2: one that I had rented from quite somewhat recently, just

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Speaker 2: to see directly on the site, and they had they

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Speaker 2: were running specials on electric vehicles specifically. It wasn't just Tesla,

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Speaker 2: it was also like the the Ford mack e.

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Speaker 1: I rented a subru electric car recently.

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Speaker 2: Money it was great, enjoyed it.

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Speaker 1: Yeah, yeah, So here's the deal.

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Speaker 2: It was ninety six dollars total for this rental, as

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Speaker 2: opposed to a little over three hundred oh my god,

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Speaker 2: for even the most economy whatever, gas powered vehicle.

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Speaker 1: That's where it's a hassle man.

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Speaker 2: Yes, well here, and here's the other thing. I of

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Speaker 2: course looked to where we were traveling, and there were

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Speaker 2: superchargers very close by to where we're planning to travel.

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Speaker 2: But I specifically paid like ten bucks more and got

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Speaker 2: the long range because I think there's a chance we

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Speaker 2: may not even need to charge at all, uh during

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Speaker 2: that trip, because because you know, they charge you if

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Speaker 2: you bring it back without over ninety percent battery life.

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Speaker 2: But it's only thirty five bucks, and so like I

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Speaker 2: might be able to save ten bucks or something. I

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Speaker 2: don't know, maybe it's only fifteen or twenty five bucks

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Speaker 2: to charge it myself. But the worst case scenario is

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Speaker 2: let's say we're tight on time, we gotta make it

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Speaker 2: back to the airport. What do you do? You just

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Speaker 2: take it back and they just charge you thirty five

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Speaker 2: bucks yah, which is still there is a still a

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Speaker 2: massive savings to be had there. Going with the EV

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Speaker 2: as opposed to a more traditional traditional vehicle. Last wanted

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Speaker 2: to share that I like that because I think there's

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Speaker 2: a there's good savings opportunity out there.

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Speaker 1: I like that. I've been shocked at the discounts on

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Speaker 1: EV's too when you're running a car. And last I

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Speaker 1: was stayed at an Airbnb last time, and so I

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Speaker 1: just messaged with the folks ahead of time, and I said, Hey,

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Speaker 1: do you have a place I can plug in over there?

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Speaker 1: Just trickle chargings fine? And they were like, yeah, we'll

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Speaker 1: leave an extension cord out through the garage there you go.

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Speaker 1: So I was like fueling up for free, yes, and

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Speaker 1: so yeah, just ask the question of your host, if

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Speaker 1: for a hotel or wherever you're staying, just just check

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Speaker 1: and see. Maybe you don't even have to pay for

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Speaker 1: a supercharger. Maybe there's some place close by you can

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Speaker 1: charge up for free.

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Speaker 2: In our case, we don't have it. It's not an Airbnb,

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Speaker 2: so there's not going to be the ability to run

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Speaker 2: that extension cord out otherwise.

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Speaker 1: I don't know. Man, Did I tell you that go

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Speaker 1: to Low's get a tow hundred foot extension cord just

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Speaker 1: like tapp into this house near behind?

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Speaker 2: Did I tell you that I literally threw an extension

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Speaker 2: cord in the minivan because we rented a plug in

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Speaker 2: hybrid for the road trip. Oh okay, and because I

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Speaker 2: wanted to have the option wherever we stayed, because we

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Speaker 2: stayed at Airbnb's the entire time to be able to

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Speaker 2: use the extension. Dude, we absolutely use that extension cord.

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Speaker 2: It was a smart thing that Chrysler Pacific, but yeah,

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Speaker 2: it was. This is just a piece of advice out

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Speaker 2: there for folks to make sure to shop around instead

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Speaker 2: of going with the default, even when the default tends

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Speaker 2: to be a money saver, like Kayak or Priceline or

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Speaker 2: skyscanner one of those sites that I did check. Sometimes

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Speaker 2: it pays to go directly to the business's website itself

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Speaker 2: and to find the best deal.

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Speaker 1: Don't forget Costco's auto rental program as well. It's a

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Speaker 1: good place to look. All right, Let's mention the beer

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Speaker 1: we're having on this episode, Matt. This is called Marbits

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Speaker 1: by Southern Grist. It's a marshmallow IPA. We'll give our

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Speaker 1: thoughts later. Should be interesting, Yes we will, all right.

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Speaker 1: If you have a money question, we'd love to hear

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Speaker 1: from you, just go to how to money dot com

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Speaker 1: slash ask read the instructions or record your question on

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Speaker 1: the voicemail app of your phone. Email it over to

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Speaker 1: us at how to Moneypod at gmail dot com. We

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Speaker 1: want to hear from you. Hopefully we can take your

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Speaker 1: question next week on the show. Matt, let's get to

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Speaker 1: a question specifically about a four oh one K loan

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Speaker 1: UH and a nervousness about not being able to pay

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Speaker 1: it back in time.

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Speaker 3: Hello, Matt and Joel. My name is Nathan Parkinson from Pocatello, Idaho.

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Speaker 3: I have a four to oh one k through my

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Speaker 3: work right now that I have a four to oh

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Speaker 3: one K loan through, and I was thinking about moving

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Speaker 3: jobs and one of the places I was planning on

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Speaker 3: going to doesn't have a four to oh one K.

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Speaker 3: The difference in pay might be at least thirty thousand dollars,

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Speaker 3: so I wasn't sure if I can't pay off that loan.

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Speaker 3: I've read that sixty to ninety days that you have

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Speaker 3: to pay it off or you might get charged on

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Speaker 3: your tax taxes. I just wanted to be able to

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Speaker 3: find out if I should be looking for a different

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Speaker 3: job that actually offers a four o one K loan

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Speaker 3: and how I might be able to find something that

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Speaker 3: can either get a match or if it doesn't have

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Speaker 3: a four to one k loan, how I go about

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Speaker 3: getting more into my IRA four oh one k.

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Speaker 2: Thanks Matt and Joel. Oh, Nathan's in a tight spot here, Joel,

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Speaker 2: I certainly hate to see him not take this job

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Speaker 2: that pays a whole lot more because of this decision

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Speaker 2: that he's made here in the pasture. Honestly, these are

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Speaker 2: the sorts of situations. These are the things we want

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Speaker 2: folks to avoid completely, and it's why we tend to

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Speaker 2: be against four one k loans because the common refrain

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Speaker 2: that you hear when you talk about a four one

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Speaker 2: k loan is like, hey, you're just gonna pay yourself back,

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Speaker 2: no harm, no foul.

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Speaker 1: Even that interest to your paying. Yeah, it's going back

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Speaker 1: to you.

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Speaker 2: But the assumption is that because of that, I guess

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Speaker 2: it's just not that bad. But when you take the

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Speaker 2: money out, it's also not in the market, it's not

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Speaker 2: growing on your behalf, and then you might end up

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Speaker 2: in a situation like Nathan, where you are looking for

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Speaker 2: a new job, or maybe even worse, maybe you are

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Speaker 2: in a situation where you get laid off and oh

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Speaker 2: you know what, that four one k loan, it can

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Speaker 2: present a real issue. Yes, you don't have the ability

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Speaker 2: to pay it back pretty quickly.

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Speaker 1: That's right. Yeah, So the four on k loan, it

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Speaker 1: sounds like the easiest way to get money. Hey, it's

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Speaker 1: better than a lot of other options. And it might

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Speaker 1: be depending on your you know, ability to pay back

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Speaker 1: how long it's going to take. But there are a

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Speaker 1: lot of potential downsides too. And think about the run

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Speaker 1: up we've seen in the market, Matt, what Nathan took

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Speaker 1: out not to you know, point into this source spot Nathan, Sorry,

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Speaker 1: but like it. The ruin is the market's been up

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Speaker 1: like what thirty five percent essentially over the past five

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Speaker 1: or six months. So Nathan's right, if he doesn't pay

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Speaker 1: this loan back in a timely fashion, he's gonna owe money,

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Speaker 1: right because it's going to be treated as a disbursement.

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Speaker 1: So I think he said in his email he owes

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Speaker 1: about fifty three hundred dollars toward this four O one

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Speaker 1: k loan. And so what does that look like, Well,

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Speaker 1: it means he's going to pay ordinary income tax on

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Speaker 1: that money, as well as a ten percent early would

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Speaker 1: draw penalty on top. So I don't think Nathan's fifty

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Speaker 1: nine and a half. Because of that, he is gonna

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Speaker 1: owe that extra ten percent. And that's I don't know.

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Speaker 1: To somebody like me, that feels like Harry Houdini got

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Speaker 1: punch Matt. You remember, That's that's how we ended up dying, right,

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Speaker 1: was like somebody punched him when he wasn't ready, and

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Speaker 1: was it.

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Speaker 2: I thought it was like a canniball.

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Speaker 1: I thought it was somebody. I think I think it

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Speaker 1: was like some young fella, because he would let people

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Speaker 1: come punch him as hard as as hard as he

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Speaker 1: could during his acts, and they were like, oh, I'm

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Speaker 1: going to punch her, and he wasn't. He wasn't ready,

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Speaker 1: he wasn't doing his act. It was like the kind

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Speaker 1: of sucker punched him exactly exactly.

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Speaker 2: I don't like that.

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Speaker 1: Of course, he wasn't ready, internal bleeding, all that kind

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Speaker 1: of stuff. That's what this feels like to me.

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Speaker 2: You probably gotta feel pretty bad about yourself if you're

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Speaker 2: the guy that like Initially you're like, yeah, I gotcha,

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Speaker 2: but then you're like, oh, I'm.

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Speaker 1: Sorry, dude, I killed the greatest musician magician of all time,

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Speaker 1: you know, killed the guy. Yeah, Well, in this specifics

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Speaker 1: matter here, by the way, because the IRS says that

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Speaker 1: you need to pay back this four one K loan

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Speaker 1: before you file taxes, and you could even wait until

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Speaker 1: October with an extension next year. That'd be fine with

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Speaker 1: the IRS. They're okay with that. But your employer likely

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Speaker 1: has more stringent requirements in their play in documents, and

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Speaker 1: that's what you're really going to want to pay attention to.

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Speaker 1: Most plans that you pay back that loan in full

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Speaker 1: right when you leave your job with no grace period

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Speaker 1: your employer, I don't know, Nathan mentioned like sixty or

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Speaker 1: ninety days. Yeah, there's a chance that your employer has

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Speaker 1: has that written into those planned documents. But don't count

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Speaker 1: your chickens before they hatch. Don't assume this. Make sure

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Speaker 1: that that's the case, that that's exactly how your employer

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Speaker 1: treats this dispartment disbursement. You want to just make sure

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Speaker 1: you're following the letter of the law here, because, like

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Speaker 1: we just said, the adverse consequences could be significant, and.

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Speaker 2: This is one of those really important things where man

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Speaker 2: I would be willing to make a lot of sacrifices

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Speaker 2: in order to pay this four K loan back in

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Speaker 2: the required time period, Like, for instance, I might even

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Speaker 2: be willing to delay taking that new job, if that's

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Speaker 2: something you have any control over, in order to pay

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Speaker 2: this the sucker off, maybe even take out like I would.

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Speaker 2: I think I would certainly be willing to drain my

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Speaker 2: emergency fund, maybe even borrow from a helock in order

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Speaker 2: to avoid that negative outcome, and then of course make

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Speaker 2: a plan to replenish that e fund, make a plan

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Speaker 2: to pay back that he loock eight like as soon

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Speaker 2: as possible. I certain I don't think I would go

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Speaker 2: as far as like taking on a payday loan. Joel.

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Speaker 1: Yeah, that feels a little a little too far, But like,

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Speaker 1: the only way I'm doing that, Matt, is if there's

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Speaker 1: some mob boss who's starting to break my knee caps

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Speaker 1: And in that case, I'd probably take out a payday loan,

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Speaker 1: But that's it.

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Speaker 2: You might want to consider it, and.

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Speaker 1: I'm not in that kind of trouble right now.

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Speaker 2: I don't think I would do this, But depending on

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Speaker 2: your situation, you might even want to, like maybe borrow

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Speaker 2: from a relative with the assurances. And this is obviously

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Speaker 2: assuming that you are taking this very seriously and you

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Speaker 2: plan to not borrow from yourself like this every again,

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Speaker 2: but just make assurances to them that they that you

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Speaker 2: will be paying them back regularly over the coming year

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Speaker 2: or so. But man, just that the difference in your

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Speaker 2: salary right there, that thirty thousand dollars is significant, and

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Speaker 2: I wouldn't let the four o one k loan keep

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Speaker 2: you tethered to that significantly lower paying job.

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Speaker 4: You know.

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Speaker 2: I think where there's a will, there's a way. But

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Speaker 2: certainly make it a high priority to completely eliminate this.

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Speaker 1: Yeah, I mean, it'd be it'd be kind of like

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Speaker 1: a self inflicted wound to say, I'm gonna stay at

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Speaker 1: this job if I really want to move on, and

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Speaker 1: I'm going to get paid a lot more just because

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Speaker 1: of this four one k loan. There's there's got to

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Speaker 1: be a way. And you mentioned some good methods, Matt,

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Speaker 1: of finding the money to get rid of this four

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Speaker 1: one k loan so that you're not, you know, taking

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Speaker 1: keeping that money out of your four one k forever. Yeah,

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Speaker 1: and that you're also not paying the tax and penalty,

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Speaker 1: which is a big deal. You also mentioned, Nathan, that

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Speaker 1: you're holding out for another job or for an employer

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Speaker 1: that offers a four to one K, and.

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Speaker 2: Which I will say, by the way, to reiterate, we're

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Speaker 2: talking about a four one K loan, not because at

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Speaker 2: one point he said, what if the new one doesn't

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Speaker 2: have a four one K loan? I think maybe he misspoke,

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Speaker 2: and I think he's specifically talking about a four one

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Speaker 2: K plan. Yeah, specifically, especially one with a match.

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Speaker 1: And you do have to consider that, you know, you

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Speaker 1: and I talked regularly, Matt about the secondary benefits that

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Speaker 1: employers offer, and those benefits had up incredibly some you know,

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Speaker 1: some employers offering health insurance with a significant discount where

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Speaker 1: they'll pay like eighty or ninety percent of the premiums

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Speaker 1: for you and straight up free. Yeah.

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Speaker 2: I got friends that are having babies and everything is

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Speaker 2: just like completely covered at super fancy employers. Has me

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Speaker 2: just weeping those Catillac health care plans. Knowing how much

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Speaker 2: money IVE spent on labor and delivery over my lifetime.

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Speaker 1: I know, as self employed individuals the healthcare stuff.

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Speaker 2: Had the privilege of being able to do that.

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Speaker 1: Yes, yes, so those things really matter and a four

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Speaker 1: one K plan is incredibly helpful. I think not having

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Speaker 1: access to a workplace retirement account would be a bummer,

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Speaker 1: no match, no ability to shovel chunks of money into

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Speaker 1: a tax advantaged account. That's that's a downer. It's a

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Speaker 1: downer for anyone who wants to be smart with their money,

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Speaker 1: Like you're looking for that in an employer and you're

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Speaker 1: hoping that they're competitive in the right.

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Speaker 2: But it's not a deal breaker though, No, especially especially

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Speaker 2: given the difference in income. So and here's the other

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Speaker 2: thing too that I want to address, Like, you can

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Speaker 2: still get really wealthy, Nathan with just an IRA. Yeah, yeah, so.

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Speaker 1: I could be a roth Ira millionaire in what thirty

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Speaker 1: six years? Thirty five?

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Speaker 2: Well, at seven and a half percent, it's thirty five years.

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Speaker 2: I was way off. It's a here right there. That's

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Speaker 2: pretty incredible in my opinion. And that's just the I mean,

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Speaker 2: I know for a lot of folks it might be

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Speaker 2: it it's difficult for them to max out an IRA

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Speaker 2: every single year as opposed to a four to one K.

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Speaker 2: You can become a four to one K millionaire in

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Speaker 2: as little as twenty years. But at the same time,

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Speaker 2: who's maxing out there four one k? I know some

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Speaker 2: folks are, but there's a lot of folks for saying

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Speaker 2: twenty three thousand, five hundred dollars. Dudes, I'm sorry, but

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Speaker 2: I ain't got that kind of money setting around, right.

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Speaker 1: That'd be a third of my income, or that'd be

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Speaker 1: half of my income, and that seems impossible.

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Speaker 2: But it's still possible, even just with the boring old

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Speaker 2: IRA at your disposal.

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Speaker 1: And well, there's that, but let's just say this. Let's

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Speaker 1: say Nathan plans to invest at least half of just

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Speaker 1: the raise that he's getting, a thirty thousand dollars raise.

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Speaker 1: That's hey maxing out right there, a roth IRA every

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Speaker 1: year just became super easy. If he's got a high

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Speaker 1: deductible health care plan through the employer and HSA, he

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Speaker 1: can max that out too, And then he's got more

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Speaker 1: money left over toss into a taxable brokerage account as well.

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Speaker 1: So he's just got a whole bunch of accounts at

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Speaker 1: his disposal. It does not have to be the workplace

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Speaker 1: retirement account, the four to one K, or the TSP

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Speaker 1: at other employers, or a four to fifty seven B

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Speaker 1: like it can be some of these other accounts that

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Speaker 1: are widely accessible to almost everyone. It doesn't have to

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Speaker 1: be a tax advantage account through your employer. I think

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Speaker 1: that makes it easy because it's deducted from your paycheck.

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Speaker 1: It's automatic, right, and you don't really have to think

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Speaker 1: about it. That's one of the perks.

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Speaker 2: You don't really feel it.

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Speaker 1: That's right. So you're going to have to make a

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Speaker 1: proactive plan to save for yourself in some of these accounts,

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Speaker 1: including probably in all likelihood, automatic contributions monthly from your

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Speaker 1: bank account towards some of these accounts. I think you

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Speaker 1: can just you can still do an incredible job saving

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Speaker 1: for your future without an employer plan. It just takes

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Speaker 1: more intentionality and it falls more directly on your shoulders.

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Speaker 1: But I wouldn't let that, especially especially with a massive

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Speaker 1: pay increase like this. I would not let that be

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Speaker 1: a deal breaker by any stretch of the imagination.

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Speaker 2: Sure, and again we're talking about investing in your ability

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Speaker 2: to grow wealth here, but let's make sure that that, Nathan,

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Speaker 2: that your first order of business is one hundred percent

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Speaker 2: to be able to pay off that for win k

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Speaker 2: loan and honestly just to be able to man, let's

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Speaker 2: just stay away from that altogether in the future as well.

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Speaker 1: We've got more money questions to get to, Matt, including

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Speaker 1: a listener who wants to limit their grocery and restaurants spending.

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Speaker 1: We'll get to that and more. We'll get to that

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Speaker 1: in a whole lot more right after this. All right,

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Speaker 1: we are back from the break. We've got more listener

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Speaker 1: questions to get to Joel. This doesn't happen very often,

403
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Speaker 1: but we're going to hear from a listener who has

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Speaker 1: been listening to the podcast for quite a while, longer

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Speaker 1: than my mom's been listening to the podcast.

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Speaker 2: Let's hear from Bryant.

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Speaker 5: What's up, fellas. Briant here from Montana. Longtime listening to

408
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Speaker 5: the show about six years, and I really appreciate what

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Speaker 5: you guys do. I've just got another boring investment question

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Speaker 5: that nobody probably wants to hear about, but I've been

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Speaker 5: pretty curious and I'm going to shoot anyway. A little context.

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Speaker 5: My wife and I are both twenty five years old,

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Speaker 5: and we've been together since we were sophomores in high school,

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Speaker 5: and she actually just finished up her doctoral degree and

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Speaker 5: started her career. We are very fortunate and we were

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Speaker 5: able to get through school debt free, so we currently

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Speaker 5: do not have any debt as far as investing goes.

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Speaker 5: I currently max out my roth IRA and my HSA.

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Speaker 5: On top of that, I have a pretty solid pension

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Speaker 5: and I've been investing for about five years. My wife

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Speaker 5: is kind of in the opposite boat. She hasn't been

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Speaker 5: able to invest at all while she was in school,

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Speaker 5: but is looking to start now. Her employer offers her

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Speaker 5: a four oh one K with up to a five

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Speaker 5: percent match in an HSA. Of course, we plan to

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Speaker 5: put enough money into her traditional four oh one K

427
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Speaker 5: to get the mast and max out her HSA. That

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Speaker 5: would put us at about twenty percent of our income.

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Speaker 5: We're looking to up that to about twenty four percent,

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Speaker 5: and we were just curious whether we should put that

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Speaker 5: extra money into her four oh one K or whether

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Speaker 5: we should open a roth IRA for her. I'd really

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Speaker 5: appreciate some feedback, Pretty curious on what I should do.

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Speaker 5: I'm currently leaning towards the IRA, but would love to

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Speaker 5: get your guys' thoughts. Thanks.

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Speaker 2: All right, Joel, is this just a yes or no

437
00:19:28,560 --> 00:19:31,320
Speaker 2: answer to to Bryant as to whether or not you

438
00:19:31,320 --> 00:19:34,600
Speaker 2: should go ahead with the IRA. Let's have some color?

439
00:19:34,680 --> 00:19:34,880
Speaker 4: Yeah?

440
00:19:34,880 --> 00:19:37,399
Speaker 1: Okay? Well, first off, high school sweethearts. I love I

441
00:19:37,440 --> 00:19:39,840
Speaker 1: love that. That's awesome. You guys been together for a

442
00:19:39,880 --> 00:19:42,840
Speaker 1: long time and their sophomores. Yes, and he's been listening

443
00:19:42,880 --> 00:19:45,679
Speaker 1: for a while too, Yes, sincebody's been listening since he

444
00:19:45,720 --> 00:19:46,159
Speaker 1: was a teenager.

445
00:19:46,240 --> 00:19:48,760
Speaker 2: Yes, that's crazy. Yeah, he's like, finally I can enjoy

446
00:19:48,760 --> 00:19:49,720
Speaker 2: a craft beer, just.

447
00:19:49,680 --> 00:19:52,080
Speaker 1: Like just like the buddy, the boys came right exactly,

448
00:19:52,480 --> 00:19:55,080
Speaker 1: And I mean it's no wonder that he's crushing it already, right,

449
00:19:55,119 --> 00:19:58,320
Speaker 1: and his wife has her doctorate at this young age

450
00:19:58,359 --> 00:20:01,760
Speaker 1: as well, graduating debt free. That's just an incredible way

451
00:20:01,960 --> 00:20:04,800
Speaker 1: to get started, like Tyra getting off on the right foot.

452
00:20:04,800 --> 00:20:07,879
Speaker 1: I mean, that's an understatement for where Brian and his

453
00:20:08,640 --> 00:20:11,760
Speaker 1: wifer are you going in life. I mean they're just

454
00:20:11,800 --> 00:20:14,720
Speaker 1: starting off with everything kind of going in their direction

455
00:20:14,760 --> 00:20:15,480
Speaker 1: to win at their backs.

456
00:20:15,560 --> 00:20:17,760
Speaker 2: Yeah, they are doing all the right stuff already. The

457
00:20:17,800 --> 00:20:20,760
Speaker 2: guy the roth Ira, the HSA A pension as well,

458
00:20:20,800 --> 00:20:23,000
Speaker 2: So I guess he's got some sort of old school

459
00:20:23,119 --> 00:20:26,040
Speaker 2: government job perhaps I don't know, but he's doing basically

460
00:20:26,440 --> 00:20:28,280
Speaker 2: d all of the above, and it's helping him to

461
00:20:28,280 --> 00:20:31,560
Speaker 2: sock away quite a bit of money and in let's say,

462
00:20:31,800 --> 00:20:35,359
Speaker 2: very tax friendly vehicles as well. I'll say, Brian, a

463
00:20:35,440 --> 00:20:37,639
Speaker 2: guy wasn't necessarily picking up any of this in your voice.

464
00:20:37,640 --> 00:20:41,000
Speaker 2: But the fact that your wife hasn't started investing yet

465
00:20:41,080 --> 00:20:44,240
Speaker 2: is nothing to be too worried about. Man, Like, she's

466
00:20:44,240 --> 00:20:46,160
Speaker 2: been working her butt off, she's been getting that debt

467
00:20:46,160 --> 00:20:50,679
Speaker 2: free degree, which is incredible, and the higher likely income

468
00:20:50,720 --> 00:20:53,240
Speaker 2: that she is going to be able to earn that

469
00:20:53,280 --> 00:20:56,200
Speaker 2: she's gonna be able to garner will be well worth

470
00:20:56,200 --> 00:20:58,280
Speaker 2: it as far as a standard of living, how much

471
00:20:58,320 --> 00:21:01,760
Speaker 2: you're going to be able to invest, ultimately leading to

472
00:21:02,000 --> 00:21:06,119
Speaker 2: greater levels of financial freedom financial independence. So kudos to

473
00:21:06,520 --> 00:21:08,880
Speaker 2: you both for rushing it like that. I love too

474
00:21:09,200 --> 00:21:11,600
Speaker 2: that he said that twenty percent of his income. It

475
00:21:11,640 --> 00:21:13,560
Speaker 2: doesn't kind of feel like quite enough if he wants

476
00:21:13,600 --> 00:21:15,919
Speaker 2: to ramp it up to twenty four percent. And a

477
00:21:15,920 --> 00:21:18,080
Speaker 2: lot of folks, Matt, they continue to increase their standard

478
00:21:18,119 --> 00:21:20,680
Speaker 2: of living as that income goes up. And yeah, maybe

479
00:21:20,680 --> 00:21:23,639
Speaker 2: they kind of bump up their their four one K

480
00:21:23,720 --> 00:21:25,960
Speaker 2: contribution by one percent each year or something like that.

481
00:21:26,200 --> 00:21:29,040
Speaker 2: But even then, you're what's your the amount of money

482
00:21:29,040 --> 00:21:31,720
Speaker 2: you're investing, it might not be keeping pace with the

483
00:21:31,800 --> 00:21:33,879
Speaker 2: rate of pay increases that you're getting. So actually, as

484
00:21:33,920 --> 00:21:36,480
Speaker 2: a percentage of your income, you're not doing as well

485
00:21:36,520 --> 00:21:39,240
Speaker 2: as you were in those early years. And the truth

486
00:21:39,320 --> 00:21:42,120
Speaker 2: is not having any student loans, which is I think

487
00:21:42,359 --> 00:21:44,960
Speaker 2: rare for people, especially with the amount of degrees they've

488
00:21:44,960 --> 00:21:47,560
Speaker 2: gotten in their household. That's hard to come by. But

489
00:21:47,600 --> 00:21:50,040
Speaker 2: not having those student loans makes it even more feasible

490
00:21:50,240 --> 00:21:53,560
Speaker 2: to dedicate more of your resources towards investing for your future.

491
00:21:53,880 --> 00:21:57,320
Speaker 2: And there's just something incredibly powerful but delaying some of

492
00:21:57,359 --> 00:22:01,320
Speaker 2: those lifestyle upgrades intention right when you're doing it on

493
00:22:01,400 --> 00:22:06,119
Speaker 2: purpose for a missional purpose of having greater levels of

494
00:22:06,160 --> 00:22:08,920
Speaker 2: financial freedom earlier in your life. And speaking from the

495
00:22:08,960 --> 00:22:12,280
Speaker 2: other side of forty Bryant, like, especially if you plan

496
00:22:12,320 --> 00:22:15,200
Speaker 2: to have kids, funneling more money away now is going

497
00:22:15,200 --> 00:22:17,679
Speaker 2: to allow for those greater levels of work and life

498
00:22:17,920 --> 00:22:20,520
Speaker 2: flexibility when it has the most impact. Matt, You and

499
00:22:20,600 --> 00:22:22,800
Speaker 2: I talk about this regularly just as friends, but like

500
00:22:22,880 --> 00:22:25,840
Speaker 2: where the happiness curve, where it hits the bottom is

501
00:22:25,880 --> 00:22:28,040
Speaker 2: typically right where you and I are in life, and

502
00:22:28,080 --> 00:22:30,439
Speaker 2: we feel like we're living our best lives now because

503
00:22:30,840 --> 00:22:33,240
Speaker 2: we're not worried about we're not trying to build this

504
00:22:33,440 --> 00:22:35,960
Speaker 2: like nose of the grindstone career, and we're also not

505
00:22:36,520 --> 00:22:39,000
Speaker 2: worried about finances because we front loaded a lot of

506
00:22:39,000 --> 00:22:41,080
Speaker 2: that sacrifice. I think that's where a lot of people

507
00:22:41,080 --> 00:22:42,480
Speaker 2: find themselves is they're like, I guess I need to

508
00:22:42,480 --> 00:22:44,879
Speaker 2: start saving for retirement. I haven't done anything yet, and

509
00:22:44,960 --> 00:22:45,439
Speaker 2: so they just.

510
00:22:45,440 --> 00:22:47,159
Speaker 1: Feel like they have to work all the time and

511
00:22:47,160 --> 00:22:50,359
Speaker 1: they're missing out on a lot of the relational and

512
00:22:50,400 --> 00:22:53,080
Speaker 1: familial things that really make life worth living in this

513
00:22:53,160 --> 00:22:54,320
Speaker 1: spot in life in particular.

514
00:22:54,359 --> 00:22:56,439
Speaker 2: So yeah, yeah, there are just more responsibilities that are

515
00:22:56,480 --> 00:22:58,800
Speaker 2: thrust upon us as we're trying to achieve, oftentimes at

516
00:22:58,800 --> 00:23:02,639
Speaker 2: this age career. But then there's demands being asked of

517
00:23:02,720 --> 00:23:05,520
Speaker 2: us from as a kid or I'm sorry, like as

518
00:23:05,520 --> 00:23:07,359
Speaker 2: a son or a daughter, from our parents as they

519
00:23:07,400 --> 00:23:10,199
Speaker 2: are aging from the standpoint of what it is that

520
00:23:10,200 --> 00:23:12,200
Speaker 2: we're trying to be able to provide for our kids

521
00:23:12,560 --> 00:23:15,160
Speaker 2: for them as well. But I think keeping that lifestyle

522
00:23:15,200 --> 00:23:16,960
Speaker 2: creep in check is basically what you're alluding to. And

523
00:23:17,000 --> 00:23:19,359
Speaker 2: I think just like I picture the horse, you know,

524
00:23:19,440 --> 00:23:21,560
Speaker 2: like the horses pulling the carriages and the cities, and

525
00:23:21,600 --> 00:23:23,520
Speaker 2: they got the blinders on because it doesn't really matter.

526
00:23:23,520 --> 00:23:25,080
Speaker 2: All the craziness is going around them out there in

527
00:23:25,119 --> 00:23:26,360
Speaker 2: the city. All they need to be able to do

528
00:23:26,680 --> 00:23:30,080
Speaker 2: is just to walk exactly straight ahead. And I think

529
00:23:30,080 --> 00:23:31,800
Speaker 2: if you can kind of keep the blinders on from

530
00:23:31,800 --> 00:23:35,000
Speaker 2: a lifestyle standpoint, it's like, it doesn't really matter that

531
00:23:35,000 --> 00:23:38,680
Speaker 2: that guy over there or your old friends from high

532
00:23:38,680 --> 00:23:40,760
Speaker 2: school or college are going on this trip or they're

533
00:23:40,800 --> 00:23:42,479
Speaker 2: doing that. Man, such a great reason to get off

534
00:23:42,520 --> 00:23:45,640
Speaker 2: of social media so that you're not keeping up with

535
00:23:45,240 --> 00:23:49,639
Speaker 2: the lifestyle upgrades that lots of other folks are opting

536
00:23:49,680 --> 00:23:51,800
Speaker 2: to do, whether intentionally or not intentionally. But what we're

537
00:23:51,800 --> 00:23:54,879
Speaker 2: saying here is to continue to intentionally limit some of

538
00:23:54,880 --> 00:23:57,280
Speaker 2: your spending and it's going to make socking away more

539
00:23:57,320 --> 00:24:01,080
Speaker 2: money for future you just even more feasible. Easy.

540
00:24:01,240 --> 00:24:03,200
Speaker 1: My buddy Jim just bought a boat. Maybe maybe that's

541
00:24:03,200 --> 00:24:04,760
Speaker 1: why I should do with my extra income.

542
00:24:04,760 --> 00:24:06,199
Speaker 2: And it's like, oh, I guess it's time that we

543
00:24:06,240 --> 00:24:07,480
Speaker 2: all get both, right, Huh.

544
00:24:07,480 --> 00:24:10,680
Speaker 1: It's like, no, enjoy your buddy Jim's boat, Like, don't

545
00:24:10,680 --> 00:24:13,199
Speaker 1: get one yourself and keep investing. It doesn't mean that

546
00:24:13,240 --> 00:24:17,000
Speaker 1: you can't, over time like increase your spending, right. I

547
00:24:17,040 --> 00:24:19,560
Speaker 1: think you and I have also found ways to loosen

548
00:24:19,560 --> 00:24:21,400
Speaker 1: the reins in regards to that. But yeah, you want

549
00:24:21,400 --> 00:24:22,919
Speaker 1: to do the right things first, and he's at a

550
00:24:22,920 --> 00:24:25,480
Speaker 1: particular age and place to be able to kind of

551
00:24:25,480 --> 00:24:26,000
Speaker 1: double down.

552
00:24:25,840 --> 00:24:27,439
Speaker 2: On these efforts such yeah, I can have such a

553
00:24:27,440 --> 00:24:29,800
Speaker 2: massive impact. And for him, he's thinking about bumping it

554
00:24:29,880 --> 00:24:32,560
Speaker 2: up like five percent, right, Well, if you run the number,

555
00:24:32,600 --> 00:24:35,760
Speaker 2: is that simple increase five percent? It can cut five

556
00:24:35,880 --> 00:24:39,280
Speaker 2: years of your working timeline off. We'll link to a

557
00:24:39,400 --> 00:24:44,080
Speaker 2: classic Mister money Mustache post that really very clearly and

558
00:24:44,160 --> 00:24:46,720
Speaker 2: easily lays this out. But it might even incentivize you

559
00:24:46,800 --> 00:24:49,760
Speaker 2: to try to even increase your contribution amounts over time.

560
00:24:50,280 --> 00:24:52,439
Speaker 2: But the heart of your question here four one K

561
00:24:52,600 --> 00:24:56,399
Speaker 2: versus roth Ira. Yes, we are leaning the same direction

562
00:24:56,480 --> 00:24:59,199
Speaker 2: you are, and I'm going to say wroth Ira certainly

563
00:24:59,240 --> 00:25:01,960
Speaker 2: get the full match with your four one k, of course,

564
00:25:02,880 --> 00:25:04,960
Speaker 2: but then or I guess with your wife, but then

565
00:25:04,960 --> 00:25:07,120
Speaker 2: make sure that you are maxing out her wroth Ira,

566
00:25:07,720 --> 00:25:10,960
Speaker 2: and if you want to contribute more than that, increasing

567
00:25:11,040 --> 00:25:14,520
Speaker 2: four one K contributions after that can make sense. So

568
00:25:14,600 --> 00:25:18,159
Speaker 2: could opening a taxable brokerage account if early retirement is

569
00:25:18,200 --> 00:25:21,480
Speaker 2: a goal of years. But the taking the wroth route

570
00:25:21,520 --> 00:25:24,320
Speaker 2: is great because it's such a flexible account. It's giving

571
00:25:24,359 --> 00:25:28,480
Speaker 2: you greater levels of tax flexibility. In the future as well.

572
00:25:28,600 --> 00:25:30,760
Speaker 2: And actually, on the note of tax, like, you are

573
00:25:30,880 --> 00:25:33,080
Speaker 2: likely going to continue to earn more and more money,

574
00:25:33,119 --> 00:25:35,120
Speaker 2: so you are in a you're currently in a lower

575
00:25:35,160 --> 00:25:37,199
Speaker 2: tax bracket. Let's go ahead and buy the bullet, Now

576
00:25:37,280 --> 00:25:39,720
Speaker 2: pay the tax man, and never have to worry about

577
00:25:39,760 --> 00:25:41,840
Speaker 2: taxes in that account for the rest of your life.

578
00:25:41,920 --> 00:25:43,720
Speaker 1: Well, at some point you might get to the point

579
00:25:43,720 --> 00:25:50,439
Speaker 1: where regular contributions to roth Ira aren't allowed. Yeah, And

580
00:25:50,480 --> 00:25:52,840
Speaker 1: so actually being able to fill that bucket up while

581
00:25:52,880 --> 00:25:56,119
Speaker 1: the bucket's accessible makes sense because at some point you

582
00:25:56,200 --> 00:25:59,760
Speaker 1: might lose access to that bucket. And I do too

583
00:26:00,160 --> 00:26:02,480
Speaker 1: the kind of having some pre tax some post tax

584
00:26:02,520 --> 00:26:04,800
Speaker 1: money it allows you that tax flexibility in the future.

585
00:26:04,800 --> 00:26:07,719
Speaker 1: I think that's underrated because later in life you can

586
00:26:07,840 --> 00:26:10,679
Speaker 1: kind of sort of it's like a choose your own

587
00:26:10,680 --> 00:26:12,080
Speaker 1: adventure when it comes to how much you pay in

588
00:26:12,080 --> 00:26:14,879
Speaker 1: tax depending on which buckets you're withdrawing from. And I

589
00:26:14,880 --> 00:26:18,080
Speaker 1: do think that's that can be a really smart way

590
00:26:18,240 --> 00:26:21,520
Speaker 1: to apportion your funds. And it just makes sense too

591
00:26:22,119 --> 00:26:23,880
Speaker 1: in regards to a four one K, get the match

592
00:26:23,960 --> 00:26:25,560
Speaker 1: or sticking some money in there, then go into the

593
00:26:25,640 --> 00:26:27,280
Speaker 1: roth are and then go back into the four one K,

594
00:26:27,600 --> 00:26:29,879
Speaker 1: and you know you might be kind of neck and

595
00:26:29,960 --> 00:26:32,800
Speaker 1: neck those accounts with how much money you're setting aside

596
00:26:32,920 --> 00:26:35,040
Speaker 1: in both of them over time, and then when it

597
00:26:35,040 --> 00:26:37,880
Speaker 1: comes time to tap them, you've got a lot of options, right,

598
00:26:39,119 --> 00:26:41,760
Speaker 1: And so yeah, that flexibility comes in quite handy. We've

599
00:26:41,800 --> 00:26:44,040
Speaker 1: had different guests on the show, Matt who have different

600
00:26:44,080 --> 00:26:46,560
Speaker 1: post tax and pre tax preferences. I think there's a

601
00:26:46,600 --> 00:26:49,199
Speaker 1: compelling case for both. But I do think that combo

602
00:26:49,280 --> 00:26:51,960
Speaker 1: of the four one K get the match the rothncks.

603
00:26:51,960 --> 00:26:55,639
Speaker 1: It's like this lethal in a good way option for people,

604
00:26:55,760 --> 00:26:58,280
Speaker 1: and I think it's the route that most people should consider.

605
00:26:58,359 --> 00:27:02,240
Speaker 1: There's certainly outliers right where if you're super low income

606
00:27:02,240 --> 00:27:04,280
Speaker 1: earner you might want to go roth Ira and Roth

607
00:27:04,320 --> 00:27:07,800
Speaker 1: for one K. If you are an incredibly high income

608
00:27:07,840 --> 00:27:09,120
Speaker 1: earner like you.

609
00:27:09,359 --> 00:27:11,320
Speaker 2: Might be time to get the tax break on both. Yeah.

610
00:27:11,400 --> 00:27:14,520
Speaker 1: Yeah, so so those are It's there is no one

611
00:27:14,520 --> 00:27:16,760
Speaker 1: size fits all, but I do think for the average

612
00:27:16,760 --> 00:27:19,640
Speaker 1: person that that's the comba that makes the most.

613
00:27:19,440 --> 00:27:22,520
Speaker 2: Sense, and specifically for Bryant's situation, sounds it sounds like,

614
00:27:22,520 --> 00:27:24,000
Speaker 2: based on what he told us, that's what I would do.

615
00:27:24,560 --> 00:27:27,240
Speaker 2: One caveat though, like we've been I was just praising

616
00:27:27,280 --> 00:27:30,480
Speaker 2: his desire to want to increase his percentage of saving

617
00:27:30,520 --> 00:27:34,280
Speaker 2: and investing. I will say this is just assuming like

618
00:27:34,359 --> 00:27:36,040
Speaker 2: you are the one that has listened to us for

619
00:27:36,040 --> 00:27:38,880
Speaker 2: so long, and so I'm just assuming that your wife

620
00:27:38,920 --> 00:27:41,359
Speaker 2: is also on the same page. That being said, just

621
00:27:41,400 --> 00:27:43,280
Speaker 2: for the sake of argument here, let's say that she's

622
00:27:43,800 --> 00:27:45,439
Speaker 2: starting to kind of change your tune a little bit.

623
00:27:45,440 --> 00:27:48,080
Speaker 2: It's just like, man, we've been working so hard and

624
00:27:48,160 --> 00:27:51,239
Speaker 2: I want to be able to go with two ply

625
00:27:51,320 --> 00:27:54,080
Speaker 2: toilet paper, or like, maybe it's time for a second car.

626
00:27:54,440 --> 00:27:56,880
Speaker 2: What's something else that comes into's and comes into Joel.

627
00:27:57,480 --> 00:28:00,680
Speaker 2: I don't know, but I want twins. That'd be a

628
00:28:00,720 --> 00:28:02,600
Speaker 2: much bigger expect that would be for many.

629
00:28:02,520 --> 00:28:03,000
Speaker 1: Years to come.

630
00:28:03,480 --> 00:28:06,119
Speaker 2: I just want to say that it's not just about

631
00:28:06,160 --> 00:28:08,960
Speaker 2: what your goals are. Obviously, Like y'all are a team, right,

632
00:28:09,000 --> 00:28:10,919
Speaker 2: I mean, y'all are married, y'all are y'all are partners

633
00:28:10,920 --> 00:28:15,800
Speaker 2: for a life, and so don't be overly frugal, uh

634
00:28:15,840 --> 00:28:18,679
Speaker 2: And maybe what she would potentially call cheap in an

635
00:28:18,680 --> 00:28:20,359
Speaker 2: effort to sort of win this little battle, and you

636
00:28:20,440 --> 00:28:23,560
Speaker 2: end up losing the war decades down the road. Like,

637
00:28:23,600 --> 00:28:26,600
Speaker 2: the goal is for y'all to a mass an incredible

638
00:28:26,600 --> 00:28:28,600
Speaker 2: amount of wealth, so that decades on the road, you've

639
00:28:28,600 --> 00:28:31,720
Speaker 2: won the war. You're both living the life. You're proud,

640
00:28:31,880 --> 00:28:33,879
Speaker 2: and you can look back fondly on the sacrifices that

641
00:28:33,920 --> 00:28:36,320
Speaker 2: you've made as a couple. I just wanted to throw

642
00:28:36,320 --> 00:28:37,680
Speaker 2: that out there. Yeah, I just want to make sure

643
00:28:37,680 --> 00:28:40,520
Speaker 2: that you are reaching some of those goals that you'll

644
00:28:40,520 --> 00:28:43,080
Speaker 2: have together, that they are in fact both of Y'all's what.

645
00:28:42,960 --> 00:28:44,760
Speaker 1: You're saying is he should be telling his wife, Matt

646
00:28:44,760 --> 00:28:46,680
Speaker 1: and Joel told me to save sixty percent of my income.

647
00:28:47,200 --> 00:28:50,040
Speaker 1: She hates us because we just ruined her life and

648
00:28:50,160 --> 00:28:53,040
Speaker 1: like that. But that's I think where some people get

649
00:28:53,080 --> 00:28:56,560
Speaker 1: sometimes when they start learning about the compounding returns and

650
00:28:56,560 --> 00:28:58,640
Speaker 1: what that can do, and they're like, I'm just gonna

651
00:28:59,120 --> 00:29:00,920
Speaker 1: like put all my a in that one basket. You've

652
00:29:00,920 --> 00:29:03,160
Speaker 1: seen the truth and you can't unsee it. And compounding

653
00:29:03,160 --> 00:29:06,360
Speaker 1: returns are awesome. But you know, we would also say

654
00:29:06,800 --> 00:29:09,560
Speaker 1: life has to be lived. It's you want to take

655
00:29:09,560 --> 00:29:12,000
Speaker 1: advantage of both those things, living an awesome life and

656
00:29:12,040 --> 00:29:14,000
Speaker 1: saving and investing for the future. But Bryant, best of

657
00:29:14,080 --> 00:29:16,320
Speaker 1: luck to you to your wife. You guys are doing

658
00:29:16,320 --> 00:29:18,400
Speaker 1: awesome and I'm sure you'll continue to do so. Matt,

659
00:29:18,440 --> 00:29:20,680
Speaker 1: let's get to another question. This one comes from someone

660
00:29:20,720 --> 00:29:23,200
Speaker 1: who's in the money advice space.

661
00:29:24,040 --> 00:29:26,720
Speaker 4: Hi, Matt, angel this is Angela and Richmond Hill, Georgia.

662
00:29:26,880 --> 00:29:28,880
Speaker 4: I've been listening to your show for several years now

663
00:29:28,880 --> 00:29:31,680
Speaker 4: and want to thank you for your thoughtful content. I'm

664
00:29:31,680 --> 00:29:33,840
Speaker 4: in a credit financial counselor and I really like your

665
00:29:33,880 --> 00:29:36,040
Speaker 4: ask how to Money episodes as it makes me think

666
00:29:36,080 --> 00:29:39,320
Speaker 4: about how I would respond if they were my clients.

667
00:29:39,600 --> 00:29:42,360
Speaker 4: I did want to comment on two listener questions. The

668
00:29:42,400 --> 00:29:44,560
Speaker 4: first was from around January of this year, and I

669
00:29:44,680 --> 00:29:47,760
Speaker 4: just haven't gotten around to doing a voice memo. The

670
00:29:47,840 --> 00:29:51,760
Speaker 4: listener was asking about maxing out their TSP. Well, maxing

671
00:29:51,800 --> 00:29:54,120
Speaker 4: out early might seem like a good idea. Once the

672
00:29:54,160 --> 00:29:57,920
Speaker 4: TSP is max the employee can't contribute anymore, which means

673
00:29:57,960 --> 00:30:00,000
Speaker 4: they can't be matched for the rest of the year,

674
00:30:00,520 --> 00:30:04,160
Speaker 4: so they're basically essentially leaving money on the table. The

675
00:30:04,200 --> 00:30:06,840
Speaker 4: second question had to do with lowering insurance costs for

676
00:30:06,880 --> 00:30:10,880
Speaker 4: a vehicle the listener called a few weeks ago. One

677
00:30:10,880 --> 00:30:13,800
Speaker 4: of the things a listener mentioned was lowering his liability

678
00:30:13,800 --> 00:30:16,040
Speaker 4: to the state minimum, and I don't know that that

679
00:30:16,240 --> 00:30:20,640
Speaker 4: was clearly addressed. While lowering are even canceling property assurance

680
00:30:21,400 --> 00:30:24,680
Speaker 4: comprehensive and collision, especially on the Honda makes sense. Lowering

681
00:30:24,720 --> 00:30:28,160
Speaker 4: the liability is exposing him to much greater risk. I

682
00:30:28,160 --> 00:30:30,920
Speaker 4: find that most people don't understand the difference between property

683
00:30:30,960 --> 00:30:33,959
Speaker 4: and liability on their policies and was curious about your thoughts.

684
00:30:34,840 --> 00:30:36,040
Speaker 4: Thanks so much, Have a.

685
00:30:35,960 --> 00:30:38,160
Speaker 2: Great day, all right, Joel, what do you think about

686
00:30:38,160 --> 00:30:42,080
Speaker 2: Angela's feedback? Should we start a new segment called Joel

687
00:30:42,120 --> 00:30:42,720
Speaker 2: Matt stinks?

688
00:30:44,160 --> 00:30:46,920
Speaker 1: I don't think so, Okay, Yeah, that might be ripping

689
00:30:46,920 --> 00:30:50,560
Speaker 1: off somebody else's okay, we Joel Matt suck. I don't

690
00:30:50,600 --> 00:30:53,520
Speaker 1: know that. Yeah, that's a different or are totally awful

691
00:30:53,600 --> 00:30:55,960
Speaker 1: Joe matter totally offul Maybe that no, But if you

692
00:30:56,040 --> 00:30:58,360
Speaker 1: do have like I love stuff like this, we're like, oh, yeah,

693
00:30:58,520 --> 00:31:00,000
Speaker 1: it's a good forum, I think right now.

694
00:31:00,280 --> 00:31:02,200
Speaker 2: And it helps me to realize too that if we

695
00:31:02,280 --> 00:31:05,520
Speaker 2: haven't parsed out, I don't know, there's nuance and a

696
00:31:05,520 --> 00:31:08,200
Speaker 2: lot of these questions, and sometimes we sometimes will gloss

697
00:31:08,240 --> 00:31:09,080
Speaker 2: over certain aspects of.

698
00:31:09,840 --> 00:31:12,840
Speaker 1: We'll miss something in a question. Sure, and it's kind

699
00:31:12,840 --> 00:31:15,680
Speaker 1: of important, and so maybe we like answered it three

700
00:31:15,760 --> 00:31:17,640
Speaker 1: quarters of the way and we certainly left out a

701
00:31:17,680 --> 00:31:19,880
Speaker 1: quarter or some people just disagree with our advice sometimes

702
00:31:19,920 --> 00:31:22,880
Speaker 1: and they think that, maybe, yeah, we really could stand

703
00:31:22,880 --> 00:31:25,600
Speaker 1: to be informed. So we appreciate appreciate this sort of

704
00:31:25,600 --> 00:31:26,400
Speaker 1: feedback of it all.

705
00:31:26,600 --> 00:31:26,800
Speaker 2: Yeah.

706
00:31:26,840 --> 00:31:30,000
Speaker 1: I think we try to say regularly too that that

707
00:31:30,040 --> 00:31:32,239
Speaker 1: there's a lot of subjective nature, just like in our

708
00:31:32,240 --> 00:31:36,240
Speaker 1: answer to the last question to our advice, and even

709
00:31:36,560 --> 00:31:38,200
Speaker 1: the way we view some of these things has changed

710
00:31:38,240 --> 00:31:41,880
Speaker 1: since we started the podcast in terms of like balance

711
00:31:41,960 --> 00:31:45,240
Speaker 1: and in terms of how we think about retirement and work,

712
00:31:45,240 --> 00:31:47,480
Speaker 1: and that's informing how we answer questions do you.

713
00:31:47,400 --> 00:31:48,120
Speaker 2: Think about life?

714
00:31:48,160 --> 00:31:48,360
Speaker 1: Yeah?

715
00:31:48,400 --> 00:31:51,320
Speaker 2: Yeah, it just depends on what aspect of life that

716
00:31:51,400 --> 00:31:53,640
Speaker 2: you are taken into account. Like there's you got the

717
00:31:53,640 --> 00:31:55,160
Speaker 2: financial side of things, but then you've kind of got

718
00:31:55,200 --> 00:31:56,920
Speaker 2: the life fulfillment side of things, and you've got the

719
00:31:57,360 --> 00:32:00,440
Speaker 2: work satisfaction side of things, and are a ton of

720
00:32:00,440 --> 00:32:01,640
Speaker 2: different factors for sure.

721
00:32:01,800 --> 00:32:03,920
Speaker 1: By the way, one thing Angela mentioned she said that

722
00:32:04,000 --> 00:32:07,160
Speaker 1: she was a what she says, she was a budget

723
00:32:07,160 --> 00:32:09,880
Speaker 1: coach or a money counselor money counselor right, And I

724
00:32:09,920 --> 00:32:11,480
Speaker 1: think that's I think that's super cool. You and I.

725
00:32:11,480 --> 00:32:14,479
Speaker 1: We've had people in her position on the show in

726
00:32:14,520 --> 00:32:17,360
Speaker 1: the past for interview segments, and I think a lot

727
00:32:17,400 --> 00:32:20,040
Speaker 1: of times knee jerk people go to financial advisors. They

728
00:32:20,040 --> 00:32:22,800
Speaker 1: think that's the pro they need, and financial advisors can

729
00:32:22,840 --> 00:32:25,040
Speaker 1: be expensive and it might not make the most sense

730
00:32:25,360 --> 00:32:27,200
Speaker 1: for them where they're out on their wealth building journey,

731
00:32:27,240 --> 00:32:30,760
Speaker 1: but a money counselor or a budget coach can often

732
00:32:30,800 --> 00:32:34,160
Speaker 1: be a great use of your money for a specific

733
00:32:34,200 --> 00:32:35,920
Speaker 1: period of time as you're trying to learn the ropes

734
00:32:35,920 --> 00:32:38,680
Speaker 1: and you want some personal, one on one feedback. So Angela,

735
00:32:38,680 --> 00:32:40,600
Speaker 1: we're glad you're out there doing your thing, and really

736
00:32:40,640 --> 00:32:41,680
Speaker 1: do appreciate your feedback.

737
00:32:41,760 --> 00:32:45,120
Speaker 2: That's right. Yeah, And Angela is right about maxing out

738
00:32:45,160 --> 00:32:48,480
Speaker 2: your workplace retirement accounts too early, like for instance, a

739
00:32:48,480 --> 00:32:51,440
Speaker 2: four to one K or a TSP that she mentioned.

740
00:32:51,600 --> 00:32:54,760
Speaker 2: And so again, for many folks, it sounds impossible, right,

741
00:32:54,800 --> 00:32:56,920
Speaker 2: Like we're again we're talking about over twenty three thousand

742
00:32:56,960 --> 00:33:00,640
Speaker 2: dollars over the course of a year. I think a

743
00:33:00,680 --> 00:33:02,120
Speaker 2: lot of folks are thinking, how am I supposed to

744
00:33:02,120 --> 00:33:04,400
Speaker 2: make that happen, let alone doing.

745
00:33:04,120 --> 00:33:06,800
Speaker 1: It faster than over the course of a year, right,

746
00:33:06,840 --> 00:33:09,280
Speaker 1: My problem is not that I contributed too quickly. Yeah,

747
00:33:09,400 --> 00:33:10,320
Speaker 1: retirement accounts like.

748
00:33:10,320 --> 00:33:12,960
Speaker 2: The worst tumble brag of all time. But there are

749
00:33:13,320 --> 00:33:16,280
Speaker 2: some go get our financial independence minded folks out there

750
00:33:16,320 --> 00:33:19,560
Speaker 2: who really do attempt this, and so in an effort

751
00:33:19,640 --> 00:33:22,200
Speaker 2: to just get that out of the way, they just

752
00:33:22,320 --> 00:33:25,280
Speaker 2: ratchet up their contribution amounts to the sky, getting much

753
00:33:25,400 --> 00:33:27,920
Speaker 2: smaller paychecks for a while until they hit that max

754
00:33:27,960 --> 00:33:32,320
Speaker 2: early on, which maybe emotionally feels really good. But it

755
00:33:32,400 --> 00:33:34,600
Speaker 2: certainly seems like you're doing the right thing here, but

756
00:33:35,080 --> 00:33:37,560
Speaker 2: you might be leaving money on the table. Like Angela mentioned,

757
00:33:37,800 --> 00:33:41,320
Speaker 2: if you max out your contributions let's say by June, well,

758
00:33:41,360 --> 00:33:44,360
Speaker 2: you run the risk of missing out on any mash

759
00:33:44,480 --> 00:33:47,840
Speaker 2: dollars that would have been yours had you taken just

760
00:33:47,880 --> 00:33:51,200
Speaker 2: the steadier taurus approach.

761
00:33:51,000 --> 00:33:52,520
Speaker 1: Over the course of the year. And similar to an

762
00:33:52,560 --> 00:33:55,200
Speaker 1: earlier question, I mean, so much depends on your employer's

763
00:33:55,320 --> 00:33:58,880
Speaker 1: plan documents, because in some cases you won't be missing

764
00:33:58,920 --> 00:34:01,400
Speaker 1: out on the match, and others who will, right, And

765
00:34:01,440 --> 00:34:04,120
Speaker 1: so the best approach is typically to figure out what

766
00:34:04,160 --> 00:34:07,640
Speaker 1: your biweekly contribution should be in order to make twenty

767
00:34:07,680 --> 00:34:11,640
Speaker 1: six equal investments with each paycheck that leaves nothing to chance, right,

768
00:34:11,719 --> 00:34:14,880
Speaker 1: you are doing equal investment amounts. And yes, Matt, you

769
00:34:14,920 --> 00:34:18,319
Speaker 1: talk about funding the WROTH in full on day one

770
00:34:18,960 --> 00:34:20,960
Speaker 1: of the year, right as soon as as soon as

771
00:34:20,960 --> 00:34:23,320
Speaker 1: you possibly can, because that way, your money is invested

772
00:34:23,360 --> 00:34:25,399
Speaker 1: for a longer time. And I think like people want

773
00:34:25,440 --> 00:34:27,239
Speaker 1: to optimize all the way. That's kind of what they're

774
00:34:27,280 --> 00:34:30,600
Speaker 1: going for here, to fund their account early. But if

775
00:34:30,600 --> 00:34:33,239
Speaker 1: it means yeah, your money's invested longer, but you have

776
00:34:33,280 --> 00:34:35,600
Speaker 1: fewer dollars to invest because you're not getting the full match,

777
00:34:35,840 --> 00:34:38,040
Speaker 1: that's a problem and you want to avoid that. But

778
00:34:38,120 --> 00:34:41,320
Speaker 1: then some companies will have language in their play around

779
00:34:41,360 --> 00:34:43,960
Speaker 1: something known as true ups where they'll ensure that you

780
00:34:44,000 --> 00:34:46,360
Speaker 1: get the full match, even if you stuffed all that

781
00:34:46,400 --> 00:34:48,400
Speaker 1: money into your four to one K early on, and

782
00:34:48,480 --> 00:34:50,960
Speaker 1: they'll basically cut a check at the end of the

783
00:34:51,040 --> 00:34:53,239
Speaker 1: year for whatever match you might have missed out on

784
00:34:53,760 --> 00:34:55,799
Speaker 1: during that year. As long as you max it out,

785
00:34:55,840 --> 00:34:57,839
Speaker 1: you're going to get the full amount of the match

786
00:34:57,880 --> 00:35:00,680
Speaker 1: that the employer offers you. I know what your plan

787
00:35:00,800 --> 00:35:03,760
Speaker 1: documents say, because some are generous in that way, others

788
00:35:03,800 --> 00:35:05,640
Speaker 1: are not. And you don't want to make a mistake

789
00:35:05,680 --> 00:35:08,560
Speaker 1: and miss out on matching dollars because you funded too early.

790
00:35:08,440 --> 00:35:10,080
Speaker 2: Exactly, And this might be something you have to dig

791
00:35:10,120 --> 00:35:13,000
Speaker 2: into a little bit because there probably aren't going to

792
00:35:13,040 --> 00:35:14,520
Speaker 2: be a ton of folks at your company who are

793
00:35:15,200 --> 00:35:16,320
Speaker 2: investing in this way.

794
00:35:16,200 --> 00:35:18,160
Speaker 1: So the question the HR person does not often get

795
00:35:18,160 --> 00:35:19,600
Speaker 1: to see exactly.

796
00:35:19,160 --> 00:35:21,120
Speaker 2: So you certainly reached out to them, but it might

797
00:35:21,160 --> 00:35:24,440
Speaker 2: take you doing a little command f assertion some of

798
00:35:24,480 --> 00:35:26,880
Speaker 2: these terms like true ups and having to dig in

799
00:35:26,920 --> 00:35:29,239
Speaker 2: deep to become a little to become an expert there

800
00:35:29,280 --> 00:35:34,160
Speaker 2: on your specific plan. Angel also referenced insurance, and this

801
00:35:34,200 --> 00:35:36,120
Speaker 2: is a case where you don't want to be cheap, right,

802
00:35:36,280 --> 00:35:38,839
Speaker 2: I think, especially if your vehicle is older, you might

803
00:35:38,880 --> 00:35:41,680
Speaker 2: want to eliminate comprehensive coverage in order to save on

804
00:35:41,760 --> 00:35:44,800
Speaker 2: insurance costs in order to keep that money there in savings.

805
00:35:44,920 --> 00:35:47,680
Speaker 2: But it's one thing to shop around and compare rates

806
00:35:47,760 --> 00:35:51,040
Speaker 2: with other insurance companies. But if you are cheap, you

807
00:35:51,160 --> 00:35:54,200
Speaker 2: might opt for inferior coverage amounts, putting you at a

808
00:35:54,280 --> 00:35:59,440
Speaker 2: significant financial risk. And we're specifically talking about liability insurance

809
00:35:59,440 --> 00:36:03,040
Speaker 2: here because as state minimums, they are not indicative of

810
00:36:03,080 --> 00:36:06,560
Speaker 2: what your coverage should be. There is no there's no

811
00:36:06,600 --> 00:36:08,880
Speaker 2: one size fits all answer to how much you should

812
00:36:08,880 --> 00:36:12,040
Speaker 2: be insured for, because my answer would be very different.

813
00:36:12,040 --> 00:36:15,200
Speaker 2: If I was, like a previous caller, twenty or twenty

814
00:36:15,200 --> 00:36:18,080
Speaker 2: five years old, my net worth is like zero or

815
00:36:18,120 --> 00:36:21,040
Speaker 2: even negative. Right, If I've got ten twenty thirty thousand

816
00:36:21,160 --> 00:36:24,799
Speaker 2: student loans, there's a big difference between that and where

817
00:36:24,840 --> 00:36:28,000
Speaker 2: I've been. After let's say, decades and decades of investing

818
00:36:28,200 --> 00:36:29,279
Speaker 2: regularly in the.

819
00:36:29,200 --> 00:36:31,240
Speaker 1: Market, insurance becomes more important.

820
00:36:31,360 --> 00:36:33,800
Speaker 2: Yeah, it's more. Initially it just kind of seems like

821
00:36:33,840 --> 00:36:35,759
Speaker 2: a nuisance. It's like, oh, this is thing that you

822
00:36:35,840 --> 00:36:38,160
Speaker 2: have to do. But the older you get and the

823
00:36:38,480 --> 00:36:42,840
Speaker 2: more wealthy build, it's like I see it with rosier

824
00:36:42,880 --> 00:36:43,520
Speaker 2: color glasses.

825
00:36:43,520 --> 00:36:44,520
Speaker 1: As I get older, it's.

826
00:36:44,360 --> 00:36:45,880
Speaker 2: Like, oh, man, what a great thing to have to

827
00:36:45,920 --> 00:36:48,359
Speaker 2: be able to make sure that I've mitigated that risk.

828
00:36:49,000 --> 00:36:51,040
Speaker 2: We won't get into specifics here, but when it comes

829
00:36:51,120 --> 00:36:54,040
Speaker 2: to the liability insurance that we have on our old

830
00:36:55,040 --> 00:36:58,279
Speaker 2: one hundred and ninety thousand mile minivan, Joel, I've got

831
00:36:58,320 --> 00:37:01,240
Speaker 2: twenty times what our state limit is. Wow, which sounds

832
00:37:01,320 --> 00:37:04,160
Speaker 2: kind of crazy, but not when you consider the fact,

833
00:37:04,160 --> 00:37:06,359
Speaker 2: I don't know, some folks are just more litigious than others. Right,

834
00:37:06,400 --> 00:37:08,600
Speaker 2: it doesn't really matter if you've got an old, ratty

835
00:37:09,280 --> 00:37:11,200
Speaker 2: look in minivan, they're gonna try to come after you.

836
00:37:11,760 --> 00:37:15,480
Speaker 2: But specifically, I mean, we live close to a fairly

837
00:37:15,960 --> 00:37:17,680
Speaker 2: you know, we live in a big city or near

838
00:37:17,760 --> 00:37:21,239
Speaker 2: a big city where there are like Lamborghinis driving down

839
00:37:21,239 --> 00:37:23,560
Speaker 2: the Interstate. And when I see that, when I'm sharing

840
00:37:23,560 --> 00:37:26,680
Speaker 2: a lane, yeah, sharing the Interstate highway lane with like

841
00:37:26,719 --> 00:37:28,000
Speaker 2: a Lambeau.

842
00:37:28,520 --> 00:37:30,319
Speaker 1: Hey you try to raise them.

843
00:37:30,400 --> 00:37:32,239
Speaker 2: Hey, I'm getting into a different lane because I don't

844
00:37:32,239 --> 00:37:35,120
Speaker 2: want to be behind them. But be like, that's a

845
00:37:35,160 --> 00:37:38,719
Speaker 2: really expensive vehicle, and you could easily blow through not

846
00:37:38,800 --> 00:37:41,239
Speaker 2: just your statement of THEMS, but like I mean, like

847
00:37:41,520 --> 00:37:44,920
Speaker 2: something that's even substantially, even something that's ten or twenty x,

848
00:37:45,160 --> 00:37:47,480
Speaker 2: it would not be difficult to blow through some of

849
00:37:47,480 --> 00:37:50,000
Speaker 2: those liability minimums. And so you need to keep all

850
00:37:50,040 --> 00:37:53,200
Speaker 2: this into account. Where you live that matters, right, And

851
00:37:53,239 --> 00:37:54,920
Speaker 2: so I guess that's what I'm getting here. Like, for instance,

852
00:37:55,360 --> 00:37:57,279
Speaker 2: if you lived in a small little town where you

853
00:37:57,320 --> 00:38:00,440
Speaker 2: know everybody and nobody's really soon ay each other, and

854
00:38:00,440 --> 00:38:03,840
Speaker 2: everyone drives ten year old tell you how to pickup trucks, Okay,

855
00:38:03,880 --> 00:38:06,040
Speaker 2: you probably don't need to go with like some super

856
00:38:06,280 --> 00:38:09,560
Speaker 2: off the charts coverage amount. Yeah, but it's just another

857
00:38:09,560 --> 00:38:12,120
Speaker 2: instance where your context and specifically where you live and

858
00:38:12,120 --> 00:38:13,360
Speaker 2: where you're driving it matters.

859
00:38:13,520 --> 00:38:16,239
Speaker 1: I think a lot of times frugal people are they're

860
00:38:16,239 --> 00:38:18,200
Speaker 1: getting the quotes, and they aren't getting quotes for state

861
00:38:18,239 --> 00:38:20,839
Speaker 1: minimum coverage, and they're not thinking about, well, how much

862
00:38:21,239 --> 00:38:24,520
Speaker 1: do what are my insurance needs? And so it's they're

863
00:38:24,560 --> 00:38:28,320
Speaker 1: just comparing prices between the lowest common denominator insurance policy

864
00:38:28,360 --> 00:38:31,799
Speaker 1: and they probably need to get quotes for insurance that's

865
00:38:31,840 --> 00:38:33,960
Speaker 1: going to cover them in case of a more substantial

866
00:38:34,520 --> 00:38:39,439
Speaker 1: claim or encounter with a Lamborghini or something like that. Right, So, yeah,

867
00:38:39,480 --> 00:38:41,960
Speaker 1: you do need to be careful. And it's kind of

868
00:38:41,960 --> 00:38:44,160
Speaker 1: like you must be over forty eight inches to ride

869
00:38:44,160 --> 00:38:45,919
Speaker 1: this ride or something like that. They still let people

870
00:38:45,920 --> 00:38:47,719
Speaker 1: as tall as me ride those rides, right, And so

871
00:38:47,880 --> 00:38:51,239
Speaker 1: I think you don't want the bare minimum. That's not

872
00:38:51,280 --> 00:38:53,080
Speaker 1: going to be enough for a whole lot of people.

873
00:38:53,080 --> 00:38:57,080
Speaker 1: So I do appreciate Angela mentioning that I'm not sure

874
00:38:57,080 --> 00:38:58,839
Speaker 1: why we didn't address and answer that question. I don't

875
00:38:58,880 --> 00:39:01,560
Speaker 1: even remember that question right now on that, but I

876
00:39:01,600 --> 00:39:03,719
Speaker 1: think it also it might make sense if you're kind

877
00:39:03,719 --> 00:39:06,279
Speaker 1: of confused, you're not sure how do I decide what

878
00:39:06,360 --> 00:39:08,279
Speaker 1: sort of coverage I need? This is going to very

879
00:39:08,280 --> 00:39:10,400
Speaker 1: person a person kind of like you're you're mentioning you

880
00:39:10,440 --> 00:39:12,640
Speaker 1: might want to hire an independent insurance agent, not just

881
00:39:12,680 --> 00:39:14,680
Speaker 1: to help you shop rates with a bunch of companies,

882
00:39:14,760 --> 00:39:17,560
Speaker 1: but to offer some advice right about what kind of

883
00:39:17,560 --> 00:39:20,480
Speaker 1: coverage limits you might need given your financial situation. And

884
00:39:20,520 --> 00:39:23,160
Speaker 1: my guess is an independent insurance agent should be able

885
00:39:23,200 --> 00:39:23,959
Speaker 1: to help you on that front.

886
00:39:24,040 --> 00:39:27,319
Speaker 2: Yep, independent broker. Yeah, like even with like homeowners, the

887
00:39:27,360 --> 00:39:29,920
Speaker 2: ability to talk through replacement costs, right price per square foot,

888
00:39:29,920 --> 00:39:31,879
Speaker 2: what just kind of what the trends are. I think

889
00:39:31,880 --> 00:39:33,080
Speaker 2: that can be really helpful.

890
00:39:32,719 --> 00:39:34,880
Speaker 1: For what are the trade offs between me going with

891
00:39:34,920 --> 00:39:37,800
Speaker 1: a two thousand dollars deductible versus a five thousand dollars deductible?

892
00:39:37,960 --> 00:39:40,239
Speaker 1: What are the premium changes can I self ensure for that?

893
00:39:40,280 --> 00:39:42,960
Speaker 1: Those are good questions to ask. And then there's Yeah,

894
00:39:43,000 --> 00:39:44,920
Speaker 1: there's a site called Trusted choice dot com where you

895
00:39:44,920 --> 00:39:48,440
Speaker 1: can find an independent insurance agent near you, So be

896
00:39:48,520 --> 00:39:51,319
Speaker 1: sure to check that out. That that could be an

897
00:39:51,360 --> 00:39:54,000
Speaker 1: important task for you to look into this week or

898
00:39:54,040 --> 00:39:54,760
Speaker 1: in the coming weeks.

899
00:39:55,000 --> 00:39:56,719
Speaker 2: Absolutely, Joe, we got more to get. See, we're going

900
00:39:56,760 --> 00:39:59,560
Speaker 2: to hear from a listener who's interested in cutting back

901
00:40:00,080 --> 00:40:02,799
Speaker 2: on their grocery spending as well as how much they're

902
00:40:02,840 --> 00:40:05,040
Speaker 2: spending going out to eat. We'll get to that and

903
00:40:05,160 --> 00:40:14,440
Speaker 2: more right after this Harbor.

904
00:40:14,480 --> 00:40:16,520
Speaker 1: Back from the break, Matt, it's time for the Facebook

905
00:40:16,600 --> 00:40:19,080
Speaker 1: question of the week. This one comes from Stephen. He says,

906
00:40:19,280 --> 00:40:22,800
Speaker 1: homeowner's insurance question. Do premiums go up on homeowner's insurance

907
00:40:22,840 --> 00:40:26,120
Speaker 1: for using it the same way they do on car insurance?

908
00:40:26,640 --> 00:40:30,440
Speaker 1: Our house was struck by lightning. Oh, some appliances are fried.

909
00:40:30,840 --> 00:40:32,719
Speaker 1: That sounds terrible. It's one of those active god things

910
00:40:32,800 --> 00:40:34,759
Speaker 1: you can't do much about, right, Yeah, he says, in

911
00:40:34,840 --> 00:40:36,960
Speaker 1: the siding where it got hit is going to need

912
00:40:37,000 --> 00:40:39,880
Speaker 1: to be repaired to our deductible as five thousand dollars.

913
00:40:39,880 --> 00:40:43,239
Speaker 1: Any guidance or advice is appreciated.

914
00:40:42,480 --> 00:40:44,960
Speaker 2: Five thousand bucks. All right. That's does is bring back

915
00:40:45,040 --> 00:40:48,200
Speaker 2: are you having PTSD? Does is bringing back bad memories? Jo? Now,

916
00:40:48,400 --> 00:40:51,080
Speaker 2: as so, your house didn't get struck by lightning, but

917
00:40:51,120 --> 00:40:51,840
Speaker 2: the tree.

918
00:40:52,239 --> 00:40:53,880
Speaker 1: Got struck by lightning, got struck.

919
00:40:53,640 --> 00:40:55,520
Speaker 2: Which is why came through the roof.

920
00:40:55,520 --> 00:40:58,600
Speaker 1: That's right, no awful, honestly, Like, it was not a

921
00:40:58,600 --> 00:41:00,960
Speaker 1: fun experience, but it it could have been a lot worse.

922
00:41:01,040 --> 00:41:01,440
Speaker 2: I did not.

923
00:41:03,520 --> 00:41:05,720
Speaker 1: I don't have terrible memories about it that situation.

924
00:41:05,880 --> 00:41:06,080
Speaker 2: Yeah.

925
00:41:06,160 --> 00:41:07,960
Speaker 1: Fortunately unfortunately weren't in the house when it happened, or

926
00:41:07,960 --> 00:41:09,280
Speaker 1: else I probably would have worse memories.

927
00:41:09,280 --> 00:41:12,160
Speaker 2: Sure, yeah, so, But to answer Stephen, I mean, it

928
00:41:12,239 --> 00:41:15,160
Speaker 2: varies from state to state because every state is going

929
00:41:15,200 --> 00:41:17,880
Speaker 2: to have an insurance commissioner and it's their job to

930
00:41:17,920 --> 00:41:21,680
Speaker 2: regulate the insurance companies and enforce the rules. In most states. Finally,

931
00:41:21,680 --> 00:41:25,440
Speaker 2: a claim will cause your insurance premiums to increase, but

932
00:41:25,560 --> 00:41:28,680
Speaker 2: how much it partly depends on the insurance companies. Some

933
00:41:28,960 --> 00:41:30,759
Speaker 2: may not bump up the rates all that much, while

934
00:41:30,760 --> 00:41:33,880
Speaker 2: others might consider dropping you all together. Like you use it,

935
00:41:33,920 --> 00:41:35,799
Speaker 2: and you use it, you lose it, right Like, That's

936
00:41:35,840 --> 00:41:37,920
Speaker 2: one of the one of the refrains that you sometimes hear.

937
00:41:38,400 --> 00:41:41,560
Speaker 2: It's not common after a single claim, but it can happen,

938
00:41:41,800 --> 00:41:43,719
Speaker 2: which means that in your case, you do need to

939
00:41:43,719 --> 00:41:47,759
Speaker 2: be careful before you file a claim. I would be

940
00:41:47,800 --> 00:41:51,120
Speaker 2: considering the long term consequences. And in your case, j

941
00:41:51,280 --> 00:41:55,080
Speaker 2: it wasn't just like a couple of appliances that got fried, right,

942
00:41:55,239 --> 00:41:58,160
Speaker 2: having to repaint the siding where it got charred. It

943
00:41:58,200 --> 00:41:59,919
Speaker 2: was much more substantial than.

944
00:41:59,800 --> 00:42:01,920
Speaker 1: That flooring framing.

945
00:42:02,160 --> 00:42:04,480
Speaker 2: Yeah, it was water damage touched a.

946
00:42:04,080 --> 00:42:06,759
Speaker 1: Whole lot of areas, which made meant the price tag

947
00:42:06,800 --> 00:42:10,799
Speaker 1: went up, which meant the reality of claiming and filing

948
00:42:10,840 --> 00:42:12,919
Speaker 1: claim made a whole lot more sense. And so yeah,

949
00:42:12,920 --> 00:42:15,080
Speaker 1: how much your premiums can increase depends on a lot

950
00:42:15,080 --> 00:42:18,680
Speaker 1: of factors, right, including the ad fault nature, which this

951
00:42:18,719 --> 00:42:21,399
Speaker 1: is not the case. Even this wasn't so in your fault, right,

952
00:42:21,440 --> 00:42:23,200
Speaker 1: this was, like I said, an act of God. The

953
00:42:23,280 --> 00:42:27,120
Speaker 1: overall claim amount that can impact to the how much

954
00:42:27,160 --> 00:42:29,920
Speaker 1: premiums go up for you. And rates have already been

955
00:42:29,960 --> 00:42:32,280
Speaker 1: subject to higher increases over the past couple of years.

956
00:42:32,560 --> 00:42:34,960
Speaker 1: Insurance companies are feeling the pain of higher payouts. You

957
00:42:35,000 --> 00:42:38,760
Speaker 1: we read about the wildfires in Los Angeles, read about

958
00:42:39,200 --> 00:42:42,640
Speaker 1: the hurricane damage right in the Southeast. I mean, it

959
00:42:42,680 --> 00:42:47,400
Speaker 1: just feels like we're experiencing greater levels of more natural

960
00:42:47,400 --> 00:42:50,279
Speaker 1: disasters and then so which means higher claim amounts. And

961
00:42:50,280 --> 00:42:53,480
Speaker 1: we're also talking about just everything costing more right after

962
00:42:53,920 --> 00:42:58,160
Speaker 1: a significant bout of inflation, So a premium increase of

963
00:42:58,200 --> 00:43:00,520
Speaker 1: twenty to forty percent. I don't think that would be

964
00:43:00,560 --> 00:43:03,239
Speaker 1: out of the question. And if you're paying let's take

965
00:43:03,440 --> 00:43:05,320
Speaker 1: let's say three thousand dollars a year for your homemotos

966
00:43:05,360 --> 00:43:08,200
Speaker 1: insurance right now, well they might say, hey, you actually

967
00:43:08,239 --> 00:43:11,200
Speaker 1: need to pay four grand or forty two hundred forty

968
00:43:11,200 --> 00:43:13,719
Speaker 1: five hundred starting next year. I don't like it, and

969
00:43:14,160 --> 00:43:15,880
Speaker 1: it's important to mention that this claim is going to

970
00:43:15,920 --> 00:43:18,440
Speaker 1: stick on your clue report, which would likely up your

971
00:43:18,480 --> 00:43:21,120
Speaker 1: rates when getting quotes from other insurance companies in the future.

972
00:43:21,160 --> 00:43:22,960
Speaker 1: SEA might say, Hey, definitely don't like that. I'm going

973
00:43:23,040 --> 00:43:24,919
Speaker 1: to file a claim. I'm going to get paid out,

974
00:43:25,280 --> 00:43:28,080
Speaker 1: and then at some point, maybe six months down the road,

975
00:43:28,120 --> 00:43:30,960
Speaker 1: after I've like gotten far enough away from this incident

976
00:43:31,000 --> 00:43:33,719
Speaker 1: and fixing everything back up, I'm going to go to

977
00:43:33,760 --> 00:43:35,799
Speaker 1: another insurance company. And that's how I'm gonna be able

978
00:43:35,800 --> 00:43:39,280
Speaker 1: to lower my rates. Maybe maybe, but maybe not, because

979
00:43:39,480 --> 00:43:41,040
Speaker 1: they're all going to know about the claim you filed

980
00:43:41,080 --> 00:43:42,799
Speaker 1: and that's going to impact the quotes they give you too.

981
00:43:42,880 --> 00:43:45,160
Speaker 2: That's right. Yeah, so let's go back to the deductible

982
00:43:45,200 --> 00:43:48,319
Speaker 2: five thousand dollars. This is a good thing because it's

983
00:43:48,360 --> 00:43:51,839
Speaker 2: actually helping to keep your premiums lower. And on top

984
00:43:51,880 --> 00:43:54,400
Speaker 2: of that, it makes it less likely that you are

985
00:43:54,440 --> 00:43:57,960
Speaker 2: going to file the claim steven which keeps your premiums reasonable.

986
00:43:57,960 --> 00:44:00,680
Speaker 2: Like we just discussed, and so I would run some numbers.

987
00:44:00,719 --> 00:44:02,200
Speaker 2: How much is it going to cost for you to

988
00:44:02,200 --> 00:44:04,960
Speaker 2: get these repairs done? Because if we're talking let's say

989
00:44:05,400 --> 00:44:10,279
Speaker 2: seven thousand dollars in total or six certainly five? Right, like,

990
00:44:10,320 --> 00:44:13,000
Speaker 2: you don't file a claim that would not make much

991
00:44:13,040 --> 00:44:16,200
Speaker 2: financial sense in this case. Self insurance would be the

992
00:44:16,280 --> 00:44:19,680
Speaker 2: right call. But let's say if oh, actually it's not

993
00:44:19,760 --> 00:44:23,839
Speaker 2: just the sighting, some of the framing got charred or something. Oh,

994
00:44:23,880 --> 00:44:25,920
Speaker 2: it's all the appliances, they're all on the fritz. Oh

995
00:44:25,920 --> 00:44:28,200
Speaker 2: the electricals damage now too, Oh my gosh. Yeah, now

996
00:44:28,200 --> 00:44:30,200
Speaker 2: we got to upgrade all We got upgrade our panel.

997
00:44:30,239 --> 00:44:32,279
Speaker 2: And the service is actually I don't know, I'm just

998
00:44:32,320 --> 00:44:35,320
Speaker 2: making these are terms i've heard as I've renovated at homes.

999
00:44:35,719 --> 00:44:38,960
Speaker 2: The service coming from the street, there's something wrong with that. Well,

1000
00:44:39,000 --> 00:44:41,400
Speaker 2: if that were to be the case, and the replacement

1001
00:44:42,000 --> 00:44:44,760
Speaker 2: expenses and cost is coming in a good bit higher,

1002
00:44:45,000 --> 00:44:47,600
Speaker 2: then I think filing a claim could be this minus move.

1003
00:44:47,680 --> 00:44:49,640
Speaker 1: And there's always a great area here, Like it's never

1004
00:44:49,760 --> 00:44:53,960
Speaker 1: like the exact formula, I don't think, but I do think.

1005
00:44:54,320 --> 00:44:58,640
Speaker 1: I think of insurance homeowners insurance as mostly there for

1006
00:44:58,719 --> 00:45:03,680
Speaker 1: catastrophic reasons. If something significant happens that's incredibly beyond your

1007
00:45:03,680 --> 00:45:07,680
Speaker 1: ability to pay for or doesn't make any financial sense

1008
00:45:07,719 --> 00:45:09,120
Speaker 1: to file acclaim. So I think you're right, mat If

1009
00:45:09,160 --> 00:45:10,960
Speaker 1: it's like kind of close to that deductible amount, yeah,

1010
00:45:11,000 --> 00:45:13,040
Speaker 1: that's something you cover. You don't involve insurance at all

1011
00:45:13,160 --> 00:45:14,719
Speaker 1: because you don't want it on your clue report and

1012
00:45:14,760 --> 00:45:17,200
Speaker 1: you don't want to raise your premiums. And then but

1013
00:45:17,760 --> 00:45:20,000
Speaker 1: if that's not the case, and you've got a good

1014
00:45:20,000 --> 00:45:23,440
Speaker 1: bit of cash sitting on which hopefully you do have

1015
00:45:23,480 --> 00:45:25,600
Speaker 1: a good bit of cash, having a deductible that high,

1016
00:45:25,600 --> 00:45:27,600
Speaker 1: that means you're willing to take on the responsibility of

1017
00:45:27,640 --> 00:45:30,320
Speaker 1: self insurance. I think hopefully you can handle this on

1018
00:45:30,360 --> 00:45:32,440
Speaker 1: your own. But again, there's always a gray area, and

1019
00:45:32,480 --> 00:45:35,040
Speaker 1: there a sliding scale. It can be difficult to know

1020
00:45:35,160 --> 00:45:36,200
Speaker 1: the exact way to proceed.

1021
00:45:36,280 --> 00:45:37,960
Speaker 2: All right, Let's get to one more quick one. This

1022
00:45:38,080 --> 00:45:40,600
Speaker 2: is from Grace, and she writes, we are trying to

1023
00:45:40,640 --> 00:45:43,360
Speaker 2: find a way to limit our grocery and restaurant spending.

1024
00:45:43,560 --> 00:45:45,479
Speaker 2: And we thought we had a winning idea of getting

1025
00:45:45,560 --> 00:45:48,400
Speaker 2: Visa gift cards. Because the card won't let you pay

1026
00:45:48,480 --> 00:45:50,600
Speaker 2: when you run out of money, we could get one

1027
00:45:50,680 --> 00:45:54,160
Speaker 2: for each family member and not important but a bonus.

1028
00:45:54,360 --> 00:45:56,480
Speaker 2: Then in our real budget there is just the buying

1029
00:45:56,520 --> 00:45:58,400
Speaker 2: of the gift card for this purpose instead of a

1030
00:45:58,400 --> 00:46:01,120
Speaker 2: million little transactions. Grace, I hear you as the one

1031
00:46:01,160 --> 00:46:04,280
Speaker 2: who keeps up with the budget. All those small expenses

1032
00:46:04,320 --> 00:46:07,680
Speaker 2: get on my nerves, but she writes, then it turned

1033
00:46:07,680 --> 00:46:10,040
Speaker 2: out that there are fees to get the cards. They

1034
00:46:10,040 --> 00:46:13,920
Speaker 2: were quite prohibitive. Any other ideas, Cash isn't great because

1035
00:46:13,960 --> 00:46:16,000
Speaker 2: you can't use it to order door dash or anything

1036
00:46:16,040 --> 00:46:18,160
Speaker 2: like that, but maybe we will have to try it

1037
00:46:18,440 --> 00:46:21,920
Speaker 2: any other ideas well. I see the benefit of not

1038
00:46:21,960 --> 00:46:23,879
Speaker 2: being able to I see not being able to get

1039
00:46:23,920 --> 00:46:26,480
Speaker 2: door dash as a positive. Yes of going with cash.

1040
00:46:26,560 --> 00:46:28,080
Speaker 2: Let's go ahead and address that one right out of

1041
00:46:28,080 --> 00:46:29,759
Speaker 2: the gate. Don't do door dash.

1042
00:46:30,160 --> 00:46:34,480
Speaker 1: Yeah, if you're really trying to limit your hate door dash, man,

1043
00:46:34,520 --> 00:46:36,719
Speaker 1: how much you spend eating out or just on food in.

1044
00:46:36,680 --> 00:46:38,080
Speaker 2: General, don't make it so easy.

1045
00:46:38,120 --> 00:46:40,240
Speaker 1: This is the number one thing you want to eliminate.

1046
00:46:40,280 --> 00:46:42,520
Speaker 1: And there are other other things you can do, of course,

1047
00:46:42,520 --> 00:46:45,279
Speaker 1: which we'll talk about to reduce your grocery spend, but

1048
00:46:45,840 --> 00:46:49,239
Speaker 1: you know, doing the app based takeout orders is one

1049
00:46:49,280 --> 00:46:50,640
Speaker 1: of the worst things you do. So I do think

1050
00:46:50,640 --> 00:46:54,040
Speaker 1: actually moving the cash is a reasonable choice here, dude,

1051
00:46:54,080 --> 00:46:55,840
Speaker 1: because it's going to to prevent the worst thing in

1052
00:46:55,840 --> 00:46:57,480
Speaker 1: the world that you can do, and it's also going

1053
00:46:57,520 --> 00:46:59,520
Speaker 1: to put those limits on you. Yeah, that don't come

1054
00:46:59,560 --> 00:47:00,160
Speaker 1: with fees.

1055
00:47:00,080 --> 00:47:02,000
Speaker 2: I will say, if you're looking for more convenience, because

1056
00:47:02,000 --> 00:47:04,240
Speaker 2: folks are thinking, well, I don't want to like roll

1057
00:47:04,280 --> 00:47:06,440
Speaker 2: with hundreds of dollars in my wallet or in my

1058
00:47:06,480 --> 00:47:10,680
Speaker 2: purse kick at old school, and only put the amount

1059
00:47:10,760 --> 00:47:13,440
Speaker 2: of money that you want to spend on discretionary spending

1060
00:47:13,600 --> 00:47:16,840
Speaker 2: in your checking and or whatever, like spending account. Like

1061
00:47:16,880 --> 00:47:20,440
Speaker 2: sometimes newer banks these days are calling them spending accounts,

1062
00:47:20,760 --> 00:47:23,160
Speaker 2: but like that's that's kind of how these accounts were

1063
00:47:23,160 --> 00:47:25,680
Speaker 2: created back in the day, and I think most people,

1064
00:47:25,760 --> 00:47:29,520
Speaker 2: including myself, I only kind of it's random the amounts

1065
00:47:29,520 --> 00:47:31,600
Speaker 2: of money I have in my checking account and my

1066
00:47:31,600 --> 00:47:33,960
Speaker 2: spending account versus my savings. Like basically I try to

1067
00:47:34,040 --> 00:47:35,880
Speaker 2: keep as little in my checking account as possible so

1068
00:47:35,920 --> 00:47:38,400
Speaker 2: I can earn the interest in the savings account, right Like,

1069
00:47:38,440 --> 00:47:41,560
Speaker 2: that's what us optimizers are out here doing. But I

1070
00:47:41,600 --> 00:47:44,440
Speaker 2: think you can take a more methodical approach. And if

1071
00:47:44,480 --> 00:47:47,400
Speaker 2: you so, it sounds like she is tracking her spending anyway,

1072
00:47:47,400 --> 00:47:50,080
Speaker 2: because she's talking about all the purchases that she's inundated

1073
00:47:50,120 --> 00:47:51,319
Speaker 2: with at the end of the month, and maybe she

1074
00:47:51,360 --> 00:47:53,400
Speaker 2: hates them just as much as I do. But that

1075
00:47:53,480 --> 00:47:55,760
Speaker 2: being said, you probably know how much you're spending every

1076
00:47:55,920 --> 00:47:58,400
Speaker 2: single month on eating out and groceries and things like that,

1077
00:47:58,440 --> 00:48:00,640
Speaker 2: and so simply just move that amount of money to

1078
00:48:00,840 --> 00:48:03,439
Speaker 2: your checking account and then you are going to roll

1079
00:48:03,480 --> 00:48:05,560
Speaker 2: with your debit card. And I think that can be

1080
00:48:05,600 --> 00:48:08,359
Speaker 2: a nice Granted, there are always going to be workarounds,

1081
00:48:08,560 --> 00:48:10,560
Speaker 2: right Like you could just say, oh, well, then I

1082
00:48:10,560 --> 00:48:12,839
Speaker 2: could just go in there and transfer that money over. Well,

1083
00:48:13,040 --> 00:48:14,920
Speaker 2: in a similar way, you could also go to the ATM,

1084
00:48:15,000 --> 00:48:16,120
Speaker 2: that's right and pull more cash.

1085
00:48:16,120 --> 00:48:18,879
Speaker 1: There's always a way to circumvent your desire to save money.

1086
00:48:18,960 --> 00:48:21,800
Speaker 2: You are still potentially your own worst enemy here. Nothing

1087
00:48:21,920 --> 00:48:23,040
Speaker 2: is you proof.

1088
00:48:23,840 --> 00:48:27,319
Speaker 1: There's no complete cure for humanity that Matt has found

1089
00:48:27,360 --> 00:48:30,040
Speaker 1: yet or that I found it. But I think making

1090
00:48:30,080 --> 00:48:33,120
Speaker 1: it harder on yourself to do the things that are

1091
00:48:33,160 --> 00:48:35,080
Speaker 1: in your worst interest in terms of saving on your

1092
00:48:35,080 --> 00:48:37,160
Speaker 1: grocery bill makes a lot of sense. And then where

1093
00:48:37,160 --> 00:48:38,719
Speaker 1: you shot matters to talk about that all the time.

1094
00:48:39,200 --> 00:48:41,880
Speaker 1: No cost grocery stores Aldy in Legal in particular Trader

1095
00:48:41,960 --> 00:48:45,640
Speaker 1: Joe's solid for savings. Just find a grocery store where

1096
00:48:45,640 --> 00:48:48,279
Speaker 1: you can buy stuff for less and buy the off

1097
00:48:48,280 --> 00:48:51,200
Speaker 1: brand stuff the store brand stuff, I guess you might say,

1098
00:48:51,560 --> 00:48:54,080
Speaker 1: and I think also, Matt, at least what we've found

1099
00:48:54,360 --> 00:48:58,879
Speaker 1: is planning ahead just saves our butts. Like the more

1100
00:48:58,880 --> 00:49:00,799
Speaker 1: we're flying by the seat of ours, the more likely

1101
00:49:00,800 --> 00:49:03,200
Speaker 1: we are to make a bad decision on a whim.

1102
00:49:03,520 --> 00:49:06,240
Speaker 1: And so we've been taken to like on the smoker

1103
00:49:06,520 --> 00:49:10,120
Speaker 1: smoking like two chickens or something like that on the weekend.

1104
00:49:10,200 --> 00:49:12,440
Speaker 1: It's like ten dollars for two chickens right at Costco,

1105
00:49:12,480 --> 00:49:14,480
Speaker 1: and then I smoke both of them, and we have

1106
00:49:14,600 --> 00:49:17,120
Speaker 1: like three or four meals we plan to make out

1107
00:49:17,160 --> 00:49:20,040
Speaker 1: of those chickens throughout the week, and so it's not

1108
00:49:20,120 --> 00:49:22,240
Speaker 1: very expensive, but it does take a little bit of foresight.

1109
00:49:22,600 --> 00:49:24,600
Speaker 1: And so yeah, I did, I think just the more

1110
00:49:24,640 --> 00:49:28,520
Speaker 1: you can plan and figure out multiple meals with the

1111
00:49:28,520 --> 00:49:32,560
Speaker 1: limited range of ingredients the weekend ahead of time, that

1112
00:49:32,560 --> 00:49:35,080
Speaker 1: that'll save your bacon too, And because eating out really,

1113
00:49:35,080 --> 00:49:36,359
Speaker 1: when it comes down to it, I think for most

1114
00:49:36,400 --> 00:49:39,400
Speaker 1: it is the worst man the grocery store savings. You

1115
00:49:39,440 --> 00:49:41,680
Speaker 1: can save money there, but the biggest savings is just

1116
00:49:41,719 --> 00:49:43,680
Speaker 1: eating out less and eating at home more.

1117
00:49:43,520 --> 00:49:44,919
Speaker 2: At the end of the day. I will also say

1118
00:49:44,960 --> 00:49:47,960
Speaker 2: that I am not totally completely against these prepay cards

1119
00:49:48,600 --> 00:49:51,919
Speaker 2: if it allows you to save even more money by

1120
00:49:51,960 --> 00:49:54,480
Speaker 2: the fact that you're not eating out as much, or

1121
00:49:54,640 --> 00:49:59,360
Speaker 2: maybe splurge purchases like buying stuff like on a whim

1122
00:49:59,440 --> 00:50:02,080
Speaker 2: in the grocery store. I think that, hey, you got

1123
00:50:02,120 --> 00:50:03,960
Speaker 2: to spend three bucks. Oh, you got to spend five

1124
00:50:03,960 --> 00:50:06,600
Speaker 2: bucks a month in order to have this card. Okay, Well,

1125
00:50:06,600 --> 00:50:09,399
Speaker 2: if it allows you to save fifty dollars two hundred

1126
00:50:09,440 --> 00:50:12,919
Speaker 2: bucks by not eating out, then I think that might

1127
00:50:13,120 --> 00:50:15,279
Speaker 2: just for you be the price of admission here in

1128
00:50:15,440 --> 00:50:17,799
Speaker 2: order to kind of implement some behavior change.

1129
00:50:17,480 --> 00:50:20,879
Speaker 1: And some of those grocery stores will. If you buy

1130
00:50:21,000 --> 00:50:23,520
Speaker 1: the groceries online and you opt to go pick them up,

1131
00:50:23,560 --> 00:50:26,520
Speaker 1: someone else actually does the shopping for you. It's much

1132
00:50:26,520 --> 00:50:28,200
Speaker 1: easier to stick to your list if you're not going

1133
00:50:28,239 --> 00:50:31,320
Speaker 1: into the grocery store itself, you're much less likely to succumb.

1134
00:50:31,480 --> 00:50:34,359
Speaker 1: You're actually it's pretty impossible to come to like the

1135
00:50:34,400 --> 00:50:35,200
Speaker 1: shelf on the side.

1136
00:50:35,239 --> 00:50:36,359
Speaker 2: Right, we're buying on a whim.

1137
00:50:36,520 --> 00:50:39,040
Speaker 1: Well, hey, the chips are two for five dollars to

1138
00:50:39,160 --> 00:50:42,040
Speaker 1: this week, I should stock up. You're gonna do that

1139
00:50:42,080 --> 00:50:43,520
Speaker 1: if you go in the store. But if you just

1140
00:50:43,600 --> 00:50:45,640
Speaker 1: buy online the stuff that's on your list, and then

1141
00:50:45,680 --> 00:50:47,600
Speaker 1: you opt to go pick up at some grocery stores,

1142
00:50:47,640 --> 00:50:50,400
Speaker 1: you're not paying a dollar more, you're not paying anything.

1143
00:50:50,400 --> 00:50:52,640
Speaker 1: They'll just add that on as a service for you

1144
00:50:52,680 --> 00:50:54,640
Speaker 1: bring the groceries out to your car. That can be

1145
00:50:54,640 --> 00:50:56,040
Speaker 1: the best of both worlds for a lot of folks,

1146
00:50:56,080 --> 00:50:58,040
Speaker 1: I think, when it comes to to making it easier

1147
00:50:58,040 --> 00:50:59,840
Speaker 1: to eat at home and to save me money the

1148
00:50:59,840 --> 00:51:00,359
Speaker 1: same time.

1149
00:51:00,480 --> 00:51:02,360
Speaker 2: Yeah, that's right, so Grace, we hope that helps let

1150
00:51:02,440 --> 00:51:03,799
Speaker 2: us know what you end up doing toocause I'm kind

1151
00:51:03,840 --> 00:51:06,279
Speaker 2: of curious to see if like go going with the

1152
00:51:06,320 --> 00:51:09,239
Speaker 2: old school cash envelopes, if that, if that's the what's

1153
00:51:09,280 --> 00:51:11,960
Speaker 2: required in order for you to just stick to the budget. Joel,

1154
00:51:12,080 --> 00:51:13,960
Speaker 2: let's get back to the beer that you and I enjoyed,

1155
00:51:14,000 --> 00:51:17,680
Speaker 2: which was a mar bits By Southern Grist, which I'll say,

1156
00:51:17,680 --> 00:51:19,759
Speaker 2: this isn't the first Southern. We've had a lot of

1157
00:51:19,760 --> 00:51:20,640
Speaker 2: Southern Grists.

1158
00:51:20,360 --> 00:51:20,600
Speaker 3: Are you.

1159
00:51:20,719 --> 00:51:24,840
Speaker 2: I think you're drawn to the Southern Grist brewery labels.

1160
00:51:24,960 --> 00:51:26,120
Speaker 2: Is that is that at the labels?

1161
00:51:26,120 --> 00:51:27,640
Speaker 1: That must be the name of the But I also

1162
00:51:27,680 --> 00:51:31,000
Speaker 1: saw I'm also we've had so many beers. I want

1163
00:51:31,000 --> 00:51:33,600
Speaker 1: to try something that's unique, something I've never had before,

1164
00:51:33,640 --> 00:51:35,960
Speaker 1: and so this was a marshmallow infused IPA.

1165
00:51:36,200 --> 00:51:36,840
Speaker 2: Indeed, it was.

1166
00:51:36,880 --> 00:51:41,000
Speaker 1: I think this is takeoff on Lucky Charms. It looks

1167
00:51:41,040 --> 00:51:43,040
Speaker 1: like it with the rainbow on the front and stuff.

1168
00:51:43,080 --> 00:51:44,839
Speaker 2: It's literally, yeah, it's got like a little four leaf

1169
00:51:44,840 --> 00:51:47,240
Speaker 2: clover all over the place. It's got like the little

1170
00:51:47,760 --> 00:51:51,439
Speaker 2: like graveyard headstone looking at marshmallow, you know, the kind

1171
00:51:51,440 --> 00:51:53,880
Speaker 2: of fake marshmallow that we're talking about, the crunchy kind

1172
00:51:53,920 --> 00:51:54,520
Speaker 2: of marshmallows.

1173
00:51:54,520 --> 00:51:55,240
Speaker 1: So, what are your thoughts?

1174
00:51:55,880 --> 00:51:56,600
Speaker 2: One of my favorite?

1175
00:51:56,840 --> 00:51:59,480
Speaker 1: Yeah, I mean neither. I was gonna say one of

1176
00:51:59,480 --> 00:52:02,200
Speaker 1: my least favorit it's actually it's got I think I

1177
00:52:02,239 --> 00:52:03,359
Speaker 1: just don't like marshmallows either.

1178
00:52:03,400 --> 00:52:06,080
Speaker 2: I think that's it. Like, it's very It's not often

1179
00:52:06,080 --> 00:52:08,160
Speaker 2: that I'm like, oh, yeah, what's the marshmallows, like even

1180
00:52:08,160 --> 00:52:09,879
Speaker 2: when you kind of toast it just right when you're

1181
00:52:09,880 --> 00:52:13,400
Speaker 2: doing uh smores or whatever, that's not really that's not

1182
00:52:13,480 --> 00:52:17,520
Speaker 2: my jam. But I will say the creaminess lends itself

1183
00:52:17,560 --> 00:52:20,000
Speaker 2: to to the ipa as far as the because sometimes

1184
00:52:20,000 --> 00:52:22,680
Speaker 2: you will have IPAs that have lactos in there. But

1185
00:52:22,760 --> 00:52:24,759
Speaker 2: there's something about this one with a bitterness from the

1186
00:52:24,760 --> 00:52:27,719
Speaker 2: hops that seemed to kind of kind of ruffle. Yeah,

1187
00:52:27,719 --> 00:52:29,840
Speaker 2: that kind of clashed with the marshmallow the sweetness that

1188
00:52:29,840 --> 00:52:32,520
Speaker 2: they're trying to pull out there. So it's you know,

1189
00:52:32,560 --> 00:52:35,080
Speaker 2: there's like almost two competing flavor profiles that we're going

1190
00:52:35,120 --> 00:52:37,640
Speaker 2: head to head. Yeah, a little bit, but yeah, it's

1191
00:52:37,640 --> 00:52:39,319
Speaker 2: still fun to fun to enjoy and drink.

1192
00:52:39,480 --> 00:52:42,279
Speaker 1: It's good to experiment. This experiment felt flat on its face.

1193
00:52:42,320 --> 00:52:44,759
Speaker 2: We shared it. So it's the sixteen ounce? Can I

1194
00:52:44,840 --> 00:52:47,279
Speaker 2: drink my eight ounces? Looks like you left one ounce?

1195
00:52:47,360 --> 00:52:49,879
Speaker 1: Might not finish? Yeah, all right, that's going to do it, Matt.

1196
00:52:49,920 --> 00:52:52,520
Speaker 1: For this episode, we'll put links to the show notes,

1197
00:52:52,560 --> 00:52:54,480
Speaker 1: some of the some of the stuff we mentioned up

1198
00:52:54,480 --> 00:52:56,200
Speaker 1: on our website at howtmoney dot com.

1199
00:52:56,239 --> 00:52:59,560
Speaker 2: That's right, buddy, that's it. So until next time, Best

1200
00:52:59,560 --> 00:53:01,439
Speaker 2: Friends Out best friends out