WEBVTT - Ask HTM - Side Hustle Apps, Multiple Roth IRAs, and Collecting Rent #088 0:00:00.080 --> 0:00:03.680 Welcome to how All right, here we go, ready, ready, ready, ready, 0:00:04.519 --> 0:00:07.360 Welcome to how to Money. I'm Joel and I'm Matt, 0:00:07.600 --> 0:00:29.920 and today we're answering your listener questions. Joel, are you 0:00:30.120 --> 0:00:31.880 you're feeling a little rough? I feel like your voice 0:00:31.920 --> 0:00:36.560 sounds a little textured, a little more, a little gravelly exactly. 0:00:36.720 --> 0:00:38.280 Maybe I don't know. My daughter has been sick, so 0:00:38.440 --> 0:00:40.559 maybe it's rubbing off. I was gonna say so, you 0:00:40.640 --> 0:00:43.320 and I we our lives are quite intertwined in our 0:00:43.360 --> 0:00:46.000 girls played together all the time, and yeah, you've got 0:00:46.000 --> 0:00:48.479 a sick daughter. Two of my girls have had fevers 0:00:48.520 --> 0:00:50.919 as well. And I woke up this morning with my 0:00:51.320 --> 0:00:53.320 throat feeling a little sore. I got my fingers a 0:00:53.320 --> 0:00:56.040 cross that we're gonna be okay. But uh yeah, Kate 0:00:56.080 --> 0:00:58.400 and I aren't excited for that other shoe to drop, 0:00:58.560 --> 0:01:00.279 if you know what I'm saying. I know, man, get 0:01:00.320 --> 0:01:02.560 the sickness. It just kind of runs around the school 0:01:02.560 --> 0:01:05.319 and then runs around our families and like the families 0:01:05.360 --> 0:01:07.039 of our neighbors and each other and stuff like that, 0:01:07.080 --> 0:01:09.039 and so yeah, it gets better to get it over with, 0:01:09.120 --> 0:01:11.200 give it a couple of weeks while get healthy we'll survive. 0:01:11.440 --> 0:01:14.080 But listener questions. Man, we've got some good ones. Today. 0:01:14.200 --> 0:01:16.959 We have a listener asking uh for the best way 0:01:17.000 --> 0:01:19.320 to accept rent. He's gonna be a new landlord. It 0:01:19.360 --> 0:01:22.440 sounds like we've got a follow up question for roth 0:01:22.480 --> 0:01:24.959 Iras and we're gonna start things off at the beginning 0:01:24.959 --> 0:01:27.319 of this episode talking about some different apps that you 0:01:27.360 --> 0:01:30.040 can use to sort of help create maybe kickstart a 0:01:30.120 --> 0:01:32.720 side hustle and uh, even if that makes sense to 0:01:32.760 --> 0:01:35.280 do at all. So excited to get to those and 0:01:35.280 --> 0:01:37.680 a couple others with you today. Man, Yeah, it should 0:01:37.680 --> 0:01:39.559 be fun. I'm looking forward to it. Speaking of apps, 0:01:39.600 --> 0:01:42.160 you told me that your buddy Ben downloaded Acorns and 0:01:42.200 --> 0:01:44.679 he's been like kicking butt with it right now, you know, Ben, Yeah, 0:01:44.680 --> 0:01:46.520 of course. Okay, So let me tell you the full story, 0:01:46.520 --> 0:01:49.200 which was I I invited him to Atlanta to hang 0:01:49.480 --> 0:01:51.560 for an Atlanta nine match actually a couple of weeks ago, 0:01:52.160 --> 0:01:54.800 and he said he couldn't because the next week he 0:01:54.880 --> 0:01:57.160 was gonna be flying out to Ireland with a bunch 0:01:57.160 --> 0:02:01.640 of his buddies to play golf, which caught me way 0:02:01.640 --> 0:02:03.960 off guard because that's like the fanciest thing I've ever 0:02:03.960 --> 0:02:08.000 heard him say, it's very uppercross, you know, guys only. 0:02:08.040 --> 0:02:10.480 And so my follow up question was, you know, when 0:02:10.520 --> 0:02:13.160 did you start taking trips like this man? And he 0:02:13.200 --> 0:02:15.000 said it was a funny story, and how a couple 0:02:15.040 --> 0:02:17.280 of years ago he proposed this idea of this trip 0:02:17.400 --> 0:02:19.760 to his wife and it was just so far in 0:02:19.760 --> 0:02:22.000 advance that I think she just sort of kneed jerked 0:02:22.000 --> 0:02:24.040 agree to it. Right, She's like, sure, that's never gonna happen, 0:02:24.080 --> 0:02:26.760 but let's let's do it. That's the Unicorn trip that, yeah, 0:02:26.880 --> 0:02:29.240 that's not gonna happen. Is it gonna materialize? But what 0:02:29.320 --> 0:02:32.440 they did was he set up an Acorns account and 0:02:32.600 --> 0:02:35.880 basically started saving for that trip without them even realizing it, right, 0:02:35.919 --> 0:02:38.680 without them even feeling that they're sending that money aside, 0:02:39.280 --> 0:02:41.800 and which which is the cool thing about acorns, because 0:02:41.840 --> 0:02:44.560 it just rounds up every purchase that you make and 0:02:44.760 --> 0:02:47.480 saves that money. And and so yeah, a lot of 0:02:47.480 --> 0:02:50.800 people like acorns because it's easy to use, and it's 0:02:50.840 --> 0:02:53.240 like this fourth method of savings that you might not 0:02:53.280 --> 0:02:55.359 otherwise save if it wasn't for Acorns. Right, Yeah, it's 0:02:55.360 --> 0:02:57.600 easy to use, but it's like almost pain free as well, 0:02:57.639 --> 0:02:59.880 because you just slowly absorb it. You know, you have 0:03:00.000 --> 0:03:01.440 of all the different purchases that you have through the 0:03:01.440 --> 0:03:03.640 month that rounds it up. You don't really realize that 0:03:03.639 --> 0:03:06.720 that money is getting set aside. And sure enough to 0:03:06.919 --> 0:03:09.120 two years later, all the guys had saved up their money, 0:03:09.240 --> 0:03:12.480 and uh Ben's wife was pretty piste because she couldn't 0:03:12.480 --> 0:03:15.079 believe I guess that they actually, you know, went through 0:03:15.120 --> 0:03:17.240 with it and got the tickets and everything, but they 0:03:17.280 --> 0:03:21.320 saved around thirty four dollars for this trip to cover airfare. 0:03:22.000 --> 0:03:23.840 I don't know if you've heard golf is not cheap. 0:03:24.280 --> 0:03:26.720 I think in Ireland in particular, it's it's also maybe 0:03:26.720 --> 0:03:28.920 a little more expensive that they've they've got a lot 0:03:28.960 --> 0:03:31.960 of nice courses. Yeah, isn't that where golf started or 0:03:32.000 --> 0:03:35.280 is that Scotland? Yeah, Scotland and Scotland. Yeah, but Ireland, 0:03:35.360 --> 0:03:37.840 I mean it's close enough, right. But anyway, this is 0:03:37.880 --> 0:03:41.120 a little success story for Acorns, because typically you think, 0:03:41.200 --> 0:03:43.720 at least I think, okay, acorns a little bit here 0:03:43.720 --> 0:03:45.400 and there, like how much are you actually gonna be 0:03:45.400 --> 0:03:48.280 able to set aside? But man, I'm totally impressed with 0:03:48.320 --> 0:03:50.200 the amount that he was able to set aside. He 0:03:50.240 --> 0:03:53.000 had set a clear goal and and he achieved it. 0:03:53.000 --> 0:03:55.800 He totally rocked it. So Ben, kudos to you. And 0:03:56.000 --> 0:03:58.360 uh yeah, I would recommend to folks out there if 0:03:58.360 --> 0:03:59.920 you're looking for an easy way to say like the 0:04:00.280 --> 0:04:04.800 specifically for a very clear, identifiable goal, and check out Acorns. Yeah, 0:04:04.800 --> 0:04:07.400 Acorns is cool, man, And congrats to Ben on on 0:04:07.560 --> 0:04:09.800 making that happen and on saving that much money in 0:04:09.880 --> 0:04:11.680 order to be able to take a really cool trip 0:04:11.720 --> 0:04:13.200 like this. All right, by the way, we have a 0:04:13.200 --> 0:04:15.680 really cool beer that we're trinking on the show today, Matt. 0:04:15.960 --> 0:04:20.760 This is called form to table by form fermentory and blendery, 0:04:21.160 --> 0:04:23.080 and so yeah, that's a fancy way of saying that 0:04:23.120 --> 0:04:26.160 these guys brew beer and then they let it ferment 0:04:26.279 --> 0:04:29.000 and they blend beers together, which honestly is kind of 0:04:29.000 --> 0:04:31.680 like an art to mix different barrels of beer together 0:04:31.720 --> 0:04:34.760 to create a really good finished product in the bottle. 0:04:35.000 --> 0:04:38.320 So I'm really excited to try this beer out today. Yeah, Joel, 0:04:38.400 --> 0:04:40.640 this beer was sent to us from Adam. He is 0:04:40.720 --> 0:04:43.200 there in Philly and that's where these guys are and 0:04:43.240 --> 0:04:44.880 he's a big craft beer fan and reached out to 0:04:44.920 --> 0:04:47.320 us via Instagram and uh so yeah, big things to Adam, 0:04:47.480 --> 0:04:49.560 thanks for sending this our way. I just want to 0:04:49.640 --> 0:04:51.920 quickly say we have the best listeners and how many 0:04:51.920 --> 0:04:54.520 good beers have we had because listeners have been so 0:04:54.640 --> 0:04:57.800 kind to send us beers and so we always give 0:04:57.839 --> 0:05:00.640 a shout out and we're just incredibly thankful try these 0:05:00.680 --> 0:05:02.960 beers that we wouldn't otherwise get to try. So thank 0:05:03.000 --> 0:05:05.159 you Adam for sending this beer over and real quick, 0:05:05.160 --> 0:05:07.479 I'll say I looked up on their website. This was 0:05:07.560 --> 0:05:11.440 the first beer that they released, this brewer, this specific bottle. Right, yeah, 0:05:11.440 --> 0:05:13.400 and that impressive. That's really cool. Yeah, these guys are 0:05:13.480 --> 0:05:16.480 super small and are relatively new, so yeah, looking forward 0:05:16.480 --> 0:05:18.880 to chat more later on. Alright, Matt, So let's get 0:05:18.920 --> 0:05:22.320 to some listener questions today. And for folks out there 0:05:22.320 --> 0:05:25.279 wondering how they can submit a question to be considered 0:05:25.320 --> 0:05:27.080 to go on the show, they can go to how 0:05:27.080 --> 0:05:30.039 to Money dot com slash ask and there are directions 0:05:30.040 --> 0:05:33.400 there for how to submit a voicemail question. And let's 0:05:33.440 --> 0:05:36.440 take our first one right now. Hey, guys, this is 0:05:36.480 --> 0:05:39.560 Andrew from Mount Pleasant, South Carolina. My wife and I 0:05:39.640 --> 0:05:42.159 love your show. We've learned a lot from you about 0:05:42.200 --> 0:05:45.159 not just how the money the why the money. My 0:05:45.279 --> 0:05:48.800 question today deals with side hustles. My time is pretty limited, 0:05:49.120 --> 0:05:51.520 and so I've been exploring opportunities to make money off 0:05:51.560 --> 0:05:53.800 of things I already do or could do with a 0:05:53.839 --> 0:05:58.000 small time commitment. For example, you both clearly love biking, 0:05:58.279 --> 0:06:00.880 and Matt sounds like you run a good bit I 0:06:00.960 --> 0:06:03.520 do too. Have y'all tried any of the apps that 0:06:03.520 --> 0:06:06.599 claim they'll pay you to exercise? It seems like a 0:06:06.640 --> 0:06:08.960 nice way to earn a little extra cash or saying fit, 0:06:09.480 --> 0:06:11.800 But I also wonder if they're small payouts worth at 0:06:11.800 --> 0:06:15.040 the time. I'd love to know your experiences with those apps, 0:06:15.520 --> 0:06:19.360 grocery reward apps or anything else like that. Thanks so much, 0:06:19.440 --> 0:06:22.560 and keep up the great work. Andrew, thanks so much 0:06:22.600 --> 0:06:25.400 man for sending that question in. I'm gonna go ahead 0:06:25.440 --> 0:06:27.680 and just jump to it and say that I think 0:06:27.680 --> 0:06:30.320 most folks are not going to be making serious money 0:06:30.480 --> 0:06:32.440 using some of those different apps. You know, if you 0:06:32.440 --> 0:06:35.719 consider your hourly rates, I think you might quickly realize 0:06:35.760 --> 0:06:38.960 that it's just not worth it, unless, like you said, 0:06:39.360 --> 0:06:41.880 you are already doing that activity. If there's something that 0:06:41.920 --> 0:06:44.599 you can pare with what you are already doing and 0:06:44.640 --> 0:06:47.600 it really doesn't take any time. Uh. Some of those apps, 0:06:48.080 --> 0:06:50.719 like those fitness apps you know you mentioned when you're running, 0:06:51.000 --> 0:06:53.279 you know, that can be a great way to maybe 0:06:53.279 --> 0:06:56.520 make some extra money. Um you mentioned, you know how 0:06:56.560 --> 0:06:58.640 we talk about the why, not just how the money, 0:06:58.640 --> 0:07:01.600 but why. And I think that's a great consideration here 0:07:01.680 --> 0:07:04.200 is because just because you can make some extra money 0:07:04.400 --> 0:07:06.880 with some of these apps doesn't necessarily mean that you 0:07:06.880 --> 0:07:09.680 should so, taking again, taking into account how much time 0:07:09.720 --> 0:07:12.520 you would actually spend doing these different activities, you know, 0:07:12.600 --> 0:07:15.440 to make a few bucks, that's a serious consideration before 0:07:15.480 --> 0:07:17.960 I would consider going in on any of these apps. Yeah. Man, 0:07:17.960 --> 0:07:20.160 I haven't really experimented with many of these apps, and 0:07:20.200 --> 0:07:23.160 it's purely for that reason. I don't feel like the 0:07:23.160 --> 0:07:26.680 payback I'm going to get is equal to the required 0:07:26.960 --> 0:07:29.160 bandwidth and time that I have to put forth in 0:07:29.280 --> 0:07:31.320 order to make money from these apps. But we should 0:07:31.360 --> 0:07:34.480 mention a couple that might be helpful, and in particular, 0:07:34.520 --> 0:07:36.960 the ones that can give you the greatest payback I 0:07:37.000 --> 0:07:39.520 think are the grocery apps. And so there are two 0:07:39.600 --> 0:07:41.960 in particular that I would say are worth trying. There's 0:07:42.000 --> 0:07:45.160 Ibota and there's Fetch. Well, I've never said I bought 0:07:45.200 --> 0:07:47.440 a out loud. In my mind. I've always read it 0:07:47.480 --> 0:07:50.400 as like Iboda or something like that. It's ib O 0:07:50.520 --> 0:07:52.160 T T A right, But it makes sense he said 0:07:52.200 --> 0:07:54.600 I boughta. I immediately got it because I've never said 0:07:54.640 --> 0:07:57.680 the stupid app out loud. Just read it. Yeah, it 0:07:57.720 --> 0:08:01.200 makes so much sense now. But my my friend Michael, 0:08:01.360 --> 0:08:03.720 he is a single dude and he makes over five 0:08:04.480 --> 0:08:07.680 a year using Ibota. And so it's this app where 0:08:07.720 --> 0:08:10.000 you take a picture of your receipts from the grocery 0:08:10.040 --> 0:08:13.920 store and you get money back just for taking those 0:08:13.920 --> 0:08:16.360 receipts and submitting them. And fetches very similar. And those 0:08:16.400 --> 0:08:19.760 are the two that, from everything I've heard and read 0:08:19.800 --> 0:08:23.400 and experienced, that give you the highest payback for the 0:08:23.480 --> 0:08:25.800 littlest effort. And I think that's kind of what you're 0:08:25.840 --> 0:08:27.600 looking for when it comes to some of these apps. 0:08:27.920 --> 0:08:30.040 So yeah, make sure to check those two out. And 0:08:30.080 --> 0:08:32.440 then Angel, you mentioned that you're a runner in regards 0:08:32.440 --> 0:08:34.680 to some of those different fitness apps. Achievement is the 0:08:34.720 --> 0:08:37.280 most popular and legitimate one out there that I could 0:08:37.280 --> 0:08:39.920 find doing my research, and I actually downloaded that myself, 0:08:40.240 --> 0:08:43.880 gave it a shots. You get points for tracking your activity. Uh, 0:08:43.920 --> 0:08:46.400 you get extra points if you take surveys and different 0:08:46.440 --> 0:08:48.760 things like that. I didn't participate in any of those 0:08:48.800 --> 0:08:51.360 surveys because I wanted to see how many points I 0:08:51.360 --> 0:08:54.319 would get just by having this app essentially running in 0:08:54.360 --> 0:08:56.960 the background. And once you earned those points, though, you 0:08:56.960 --> 0:08:59.400 can redeem those for cash. Once you get ten thousand points, 0:08:59.400 --> 0:09:01.280 you get ten buck. And I'll go ahead and say 0:09:01.320 --> 0:09:04.600 that it's hard to earn that many points. The cool 0:09:04.720 --> 0:09:07.600 thing about achievement is that it imported my activity from 0:09:07.679 --> 0:09:10.640 run keeper for the past month, and this past month 0:09:10.679 --> 0:09:13.040 has actually been pretty light when it comes to running. 0:09:13.080 --> 0:09:15.520 I've only run like once a week, so like four times, 0:09:15.559 --> 0:09:17.679 which is not much. But that being said, I got 0:09:17.720 --> 0:09:21.760 a thousand points, which is a dollar equivent to a dollar. 0:09:21.840 --> 0:09:23.600 So if I was running like I normally do, which is, 0:09:23.920 --> 0:09:26.440 you know, three times a week, that can easily translate 0:09:26.480 --> 0:09:29.440 to three thousand points, which is about three bucks. So yeah, 0:09:29.440 --> 0:09:31.480 I mean, it's real money. It's not going to make 0:09:31.520 --> 0:09:33.560 you rich, but again, you know, I was looking for 0:09:33.600 --> 0:09:35.800 a way to have an app running in the background 0:09:35.800 --> 0:09:38.200 that requires zero effort for me, because you'll, like you 0:09:38.240 --> 0:09:40.640 I'm not willing to take on an additional sort of 0:09:40.679 --> 0:09:42.640 side gig via an app like this to to make 0:09:42.679 --> 0:09:44.959 a few bucks, although I am totally cool with it though, 0:09:44.960 --> 0:09:46.760 if it's super easy like that and I don't have 0:09:46.800 --> 0:09:49.000 to give it any time at all. Yeah. So another 0:09:49.040 --> 0:09:51.559 one that that Andrew might want to consider is it's 0:09:51.559 --> 0:09:54.400 called sweat coin, and you're not earning cash. You're earning 0:09:54.400 --> 0:09:57.440 actually sweat coins like digital currency, but you can redeem 0:09:57.480 --> 0:10:00.600 those sweat coins inside the sweat coin app to buy 0:10:00.840 --> 0:10:04.240 physical products, and so that's kind of an interesting one. 0:10:04.559 --> 0:10:06.520 It's doing kind of Matt what you said. It is 0:10:06.640 --> 0:10:10.080 running in the background and it's documenting your exercise and 0:10:10.120 --> 0:10:13.200 giving you sweatcoins based on how much exercise you're performing. 0:10:13.400 --> 0:10:15.640 Although one caveat to the app is that it doesn't 0:10:15.640 --> 0:10:18.360 work indoors, So if you're running on a treadmill or 0:10:18.600 --> 0:10:21.040 doing push ups, you know, inside your house, it's not 0:10:21.040 --> 0:10:24.480 going to count. It's only going to count those miles 0:10:24.520 --> 0:10:28.560 that you walk or run outside of the house. Yeah, 0:10:28.600 --> 0:10:30.319 that one was a little more confusing as far as 0:10:30.360 --> 0:10:33.959 how you can redeem those for actual currency. It was 0:10:34.040 --> 0:10:35.800 kind of cool, like it was a slick app. It 0:10:35.840 --> 0:10:38.360 kind of felt like a game, like little virtual reality 0:10:38.720 --> 0:10:40.520 thing going on there. I don't know, it's hard to describe, 0:10:40.559 --> 0:10:42.599 but you'll see if you check it out. But I 0:10:42.600 --> 0:10:45.880 could not figure out, like what the exchange rate was, 0:10:46.200 --> 0:10:48.559 So that's one thing I didn't like about sweatcoins specifically. 0:10:48.640 --> 0:10:51.040 I feel like overall these things are just kind of 0:10:51.080 --> 0:10:54.199 a little bit gimmicky, and there are there are ways 0:10:54.240 --> 0:10:56.720 that you could maybe make some extra money. But Andrew 0:10:56.840 --> 0:10:59.600 used the phrase side hustle, and you know, we talked 0:10:59.640 --> 0:11:02.480 about that in the previous episode. I think this is 0:11:02.640 --> 0:11:04.839 not something you want to consider a side hustle. If 0:11:04.840 --> 0:11:06.760 you want to take the way you work out or 0:11:06.800 --> 0:11:09.080 the way you exercise and turn that into some sort 0:11:09.080 --> 0:11:12.079 of side hustle. In my mind, that means starting something, 0:11:12.360 --> 0:11:14.839 you know, at five am Monday through Friday, helping other 0:11:14.880 --> 0:11:17.679 people figure out how to exercise. Well, that is a 0:11:17.679 --> 0:11:20.800 way to get exercise yourself and then actually be able 0:11:20.840 --> 0:11:22.880 to make real money from it, to turn it into 0:11:23.080 --> 0:11:25.800 a legitimate side hustle, like some run coaching or something 0:11:25.840 --> 0:11:27.480 like that. He runs all the time, Like, how can 0:11:27.520 --> 0:11:30.240 I tie this into a business that is something that 0:11:30.240 --> 0:11:32.760 he can scale and bring on clients, And yeah, I'm 0:11:32.800 --> 0:11:35.000 I'm with you, Joel. Yeah, so that's something like meaningful, 0:11:35.160 --> 0:11:36.960 whereas a lot of the things we're mentioning here are 0:11:37.120 --> 0:11:39.559 are going to be just smaller rewards. So Andrew in 0:11:39.600 --> 0:11:41.600 the end, right, if you are okay trading some of 0:11:41.640 --> 0:11:44.680 your information, your privacy, you know, some of your battery 0:11:44.720 --> 0:11:46.319 life on your phone because it's going to use a 0:11:46.360 --> 0:11:48.320 little more battery juice in the you know, as it's 0:11:48.400 --> 0:11:50.800 running in the background. If you're okay trading some of 0:11:50.840 --> 0:11:53.679 that for a few bucks, then I think it's worth it, right, Like, 0:11:53.760 --> 0:11:55.360 you know, every few months, I might be able to 0:11:55.360 --> 0:11:57.959 make a few bucks here and there, Uh, nice little surprise, 0:11:58.040 --> 0:12:00.920 a little bit of extra beer money. Um. But you know, 0:12:01.000 --> 0:12:04.360 unless I'm making actual big money, um, I'm not willing 0:12:04.400 --> 0:12:07.600 to devote additional time towards it, right, Like I talk 0:12:07.679 --> 0:12:10.200 often about the credit card sign up bonuses, like you're 0:12:10.240 --> 0:12:13.480 making between three and eight hundred bucks, uh, just for 0:12:13.559 --> 0:12:16.280 using a credit card, Like that's is something I do anyways, 0:12:16.760 --> 0:12:18.560 I just put it on a different card. To me, 0:12:18.679 --> 0:12:20.680 that feels like a little more substantial And it's sort 0:12:20.679 --> 0:12:22.760 of this little side hobby thing I can do. I like, 0:12:22.960 --> 0:12:25.440 I get all nerdy with it, but really it's bonus money. 0:12:25.480 --> 0:12:27.280 It's you know, it's not what we would consider a 0:12:27.280 --> 0:12:29.800 side hustle. To make sure that you're considering how much 0:12:29.840 --> 0:12:32.520 time that you would be dedicating towards these side hustles 0:12:32.520 --> 0:12:34.880 and that you're not getting distracted from creating something even 0:12:34.920 --> 0:12:37.480 bigger and scalable. All right, Matt, We've got lots more 0:12:37.520 --> 0:12:40.160 good listener questions coming up. In just a second, we're 0:12:40.160 --> 0:12:42.760 going to take a question from a teacher who's trying 0:12:42.800 --> 0:12:45.120 to help his students learn how to handle their money 0:12:45.160 --> 0:12:57.360 well before they graduate. Those young UN's al Rjeel. Like 0:12:57.400 --> 0:12:59.280 you said, we're gonna have our question here from our 0:12:59.320 --> 0:13:01.560 teacher friend, But first we're going to hear from a 0:13:01.600 --> 0:13:05.280 listener who had a question about rath Iras. Hey, guys, 0:13:05.320 --> 0:13:07.440 this is Shannan from Texas. I just had a quick 0:13:07.520 --> 0:13:11.319 question for you all about rath Iras after finishing the podcast. 0:13:11.640 --> 0:13:14.640 So I've heard mixed reviews about getting multiple rath I 0:13:14.800 --> 0:13:17.720 raise I've heard from some people can maybe be a 0:13:17.720 --> 0:13:19.920 good idea to have two different rath ires just to 0:13:19.960 --> 0:13:23.920 kind of diversify your investments. But I didn't really know 0:13:24.000 --> 0:13:25.920 if that was the best decision or if it came 0:13:25.960 --> 0:13:28.520 with extra fees, or if it was just kind of 0:13:28.520 --> 0:13:30.720 too complex. So I just wanted to get y'all's opinion 0:13:30.800 --> 0:13:34.960 on that. Thanks Shannon, great question, and actually the last 0:13:34.960 --> 0:13:37.560 thing you said is the reason not to have multiple erase. 0:13:37.760 --> 0:13:41.480 It's too complex having multiple roth ira accounts. It's kind 0:13:41.480 --> 0:13:44.200 of like having multiple checking accounts. I actually do have 0:13:44.280 --> 0:13:47.280 multiple checking You can do that, but do you need 0:13:47.320 --> 0:13:50.320 to or multiple savings account I guess not multiple checking accounts, right, 0:13:50.400 --> 0:13:53.360 But yeah, it can complicate life a little more than 0:13:53.720 --> 0:13:56.040 than it needs to, and there is a chance that 0:13:56.040 --> 0:13:58.439 you're paying higher fees depending on where your rath i 0:13:58.679 --> 0:14:01.400 raise are located. You can technically have a roth ira 0:14:01.840 --> 0:14:06.560 with multiple different companies, but really consolidating your roth iraise 0:14:06.760 --> 0:14:09.880 and having them with only one institution is just gonna 0:14:09.880 --> 0:14:13.240 make life easier on you when it comes to putting 0:14:13.240 --> 0:14:16.320 more money into those roth iras every year with a 0:14:16.360 --> 0:14:18.880 cap of six thousand dollars, and it's also going to 0:14:18.960 --> 0:14:22.200 potentially make it easier for your beneficiaries. There's just all 0:14:22.200 --> 0:14:25.600 these other hassles that come along with having multiple roth 0:14:25.640 --> 0:14:28.680 areas at different institutions. Juel, you mentioned that six thousand 0:14:28.720 --> 0:14:31.680 dollar cap and that is the combined total of all 0:14:31.720 --> 0:14:34.480 your raths. So, right, you can have six different roth 0:14:34.560 --> 0:14:37.600 IRA accounts opened, and you could put one thousand dollars 0:14:37.600 --> 0:14:40.080 in each of them. But Shannon, you know you mentioned diversification. 0:14:40.120 --> 0:14:43.280 There's no diversification happening there just because you have them 0:14:43.280 --> 0:14:46.720 in separate accounts. Uh. That actual diversification is happening with 0:14:46.800 --> 0:14:49.720 the money that you placed within your WRATH I raise 0:14:50.120 --> 0:14:52.240 you want to use that money to buy those index funds, 0:14:52.240 --> 0:14:55.320 which are made up of hundreds and thousands of different companies. 0:14:55.720 --> 0:14:59.280 And so if you're referring to diversification from the standpoint of, Okay, 0:14:59.280 --> 0:15:02.480 I have my WRATH account with this company, like let's 0:15:02.480 --> 0:15:05.200 just say Vanguard, doesn't it make sense to diversify and 0:15:05.240 --> 0:15:09.000 also have a roth IRA with a different company, say Fidelity. 0:15:09.160 --> 0:15:11.240 Well there's really no risk in having all of your 0:15:11.240 --> 0:15:14.520 money with a single account there, right, Vanguard in this case, 0:15:14.520 --> 0:15:17.280 in this example, they're just a custodian of that account, 0:15:17.280 --> 0:15:20.640 and there's virtually zero risk of having all of your 0:15:20.920 --> 0:15:24.280 roth IRA money with that single company. All right, So, Matt, 0:15:24.320 --> 0:15:27.760 you mentioned Vanguard Infidelity. A couple other great options are 0:15:27.880 --> 0:15:31.520 Charles Schwab and in one finance. So Shannon, if you're 0:15:31.640 --> 0:15:34.240 roth Ira is open with one of those companies, we 0:15:34.280 --> 0:15:37.120 would suggest just staying put there and and not opening 0:15:37.200 --> 0:15:40.280 up an account at another institution. Really, that's just gonna 0:15:40.280 --> 0:15:43.240 overcomplicate things, and it's and it's unnecessary. All right, Joel, 0:15:43.320 --> 0:15:46.240 let's go ahead now and take that next question. Hi, 0:15:46.560 --> 0:15:48.400 my name is Greg and I'm a high school math 0:15:48.440 --> 0:15:52.600 teacher in Northwest Ohio. I teach a financial algebra class 0:15:52.640 --> 0:15:54.920 and since I created it, I've kind of turned it 0:15:54.960 --> 0:15:58.320 into a personal finance class with the goal of getting 0:15:58.360 --> 0:16:01.920 my students as prepared as Paul usible for post high 0:16:01.960 --> 0:16:06.360 school life. I've tried to cover a variety of topics 0:16:06.480 --> 0:16:10.960 um such as credit cards, mortgages, saving for retirement, and 0:16:11.000 --> 0:16:14.120 currently we're starting to read The Total Money Makeover by 0:16:14.200 --> 0:16:16.800 Dave Ramsey, which I feel like does a pretty good 0:16:16.880 --> 0:16:19.200 job of covering some of the issues that can come 0:16:19.280 --> 0:16:22.960 up throughout their lives. But my question is, if you 0:16:23.000 --> 0:16:25.640 had to put together a checklist of what a high 0:16:25.680 --> 0:16:28.240 school student should know by the time they graduate about 0:16:28.280 --> 0:16:31.760 personal finance, what would it be. And I just want 0:16:31.800 --> 0:16:33.880 to kind of have this so that I have a 0:16:33.920 --> 0:16:36.560 better tool to use just to make sure I'm covering 0:16:36.640 --> 0:16:39.520 everything that I can in order to prepare these students 0:16:39.600 --> 0:16:43.320 for life after high school. I appreciate all your help 0:16:43.400 --> 0:16:46.840 with this and I really enjoy the podcast. Thank you, Greg, 0:16:46.880 --> 0:16:49.120 thank you so much for your question, and and thank 0:16:49.120 --> 0:16:52.480 you for teaching your students about personal finances. And we've 0:16:52.480 --> 0:16:55.280 talked about this before. Only five states in our great 0:16:55.360 --> 0:16:59.120 United States actually require financial education for high school students, 0:16:59.440 --> 0:17:02.680 and that a shame because most kids walk away knowing 0:17:02.720 --> 0:17:05.280 a lot about a lot of important subjects, knowing a 0:17:05.320 --> 0:17:08.680 little about some really unimportant ones, but knowing nothing about 0:17:08.720 --> 0:17:11.200 personal finances. And that's something that affects them every single 0:17:11.280 --> 0:17:13.200 day of the rest of their lives. Yeah, Joe, and 0:17:13.280 --> 0:17:15.560 that reminds me of this article that you actually sent 0:17:15.720 --> 0:17:18.520 me about this teacher up in Philly, and he started 0:17:18.520 --> 0:17:21.000 this entire program, not just a class, but a program 0:17:21.040 --> 0:17:24.320 where his students were able to earn money, uh, learn 0:17:24.400 --> 0:17:26.960 how to handle their money, invest it right, all the 0:17:26.960 --> 0:17:29.240 different things that essentially we do in the real world 0:17:29.280 --> 0:17:31.560 within the sort of program that they have there at 0:17:31.560 --> 0:17:34.880 the school. It's a fantastic article documenting that, and will 0:17:34.920 --> 0:17:36.879 link to that in the show notes. So Greg to 0:17:36.920 --> 0:17:39.480 answer your question. You know, we could give you basically 0:17:39.480 --> 0:17:41.719 a laundry list of all the different topics that we 0:17:41.840 --> 0:17:44.800 feel are are crazy important. However, and you could just 0:17:44.960 --> 0:17:47.840 read all of our episode list what that would be. 0:17:47.920 --> 0:17:50.760 That's not very fun, And honestly, like, the more we 0:17:50.840 --> 0:17:53.040 think about it, the more that we feel that there 0:17:53.080 --> 0:17:55.639 are a few major concepts that I think if I 0:17:55.680 --> 0:17:58.280 was a teacher teaching students that there are a few 0:17:58.320 --> 0:18:01.360 things that would stand out we think are crazy important, 0:18:01.680 --> 0:18:04.000 those key principles, and so that's what we're gonna talk about, right, 0:18:04.040 --> 0:18:06.720 the first of those being to track your spending. Right, 0:18:06.760 --> 0:18:08.679 if you are trying to do something with your money, 0:18:08.960 --> 0:18:11.359 hopefully that's spend less of it, invest more of it, 0:18:11.720 --> 0:18:13.800 you have to know where your money is currently going. 0:18:13.840 --> 0:18:16.120 You need to have eyes on it. Uh, And so 0:18:16.320 --> 0:18:18.160 the first thing you have to do is track you're spending. 0:18:18.160 --> 0:18:21.000 And it sounds super boring, but it's not right because 0:18:21.119 --> 0:18:23.160 think of it's sort of like if you're training for something. 0:18:23.160 --> 0:18:25.119 We were talked about running earlier, but if you're training 0:18:25.119 --> 0:18:26.640 for a race, you need to know how to push 0:18:26.640 --> 0:18:28.920 yourself and you need to see where your weaknesses are 0:18:29.000 --> 0:18:31.200 so that you can make those changes. That's what a 0:18:31.240 --> 0:18:33.760 budget is. First, you track your your spending and then 0:18:33.800 --> 0:18:36.399 you start challenging yourself, right, you start setting those limits, 0:18:36.480 --> 0:18:38.840 and that's what a budget is. A lot of times 0:18:38.960 --> 0:18:41.480 budgets can seem pretty lame and boring, but there are 0:18:41.560 --> 0:18:43.800 a lot of apps out there that once these kids 0:18:43.800 --> 0:18:45.720 start making money, and some of them might be might 0:18:45.760 --> 0:18:47.959 have part time jobs now where they can start doing that. 0:18:48.400 --> 0:18:51.560