1 00:00:00,080 --> 00:00:02,599 Speaker 1: Welcome to had the money. I'm Joel on Matt. 2 00:00:02,720 --> 00:00:07,560 Speaker 2: Today we're talking discount, burnout, bubble trouble, and rejoicing renters. 3 00:00:26,440 --> 00:00:29,040 Speaker 3: That's right, And before we go anywhere, Happy Halloween to 4 00:00:29,560 --> 00:00:33,800 Speaker 3: everyone who celebrates the festival, to all who celebrate candies. 5 00:00:35,080 --> 00:00:36,280 Speaker 2: I feel like you should have said it in a 6 00:00:36,280 --> 00:00:37,639 Speaker 2: spooky voice or something like that. 7 00:00:38,159 --> 00:00:39,960 Speaker 3: How come they don't call it spooky season anymore? 8 00:00:40,400 --> 00:00:41,040 Speaker 1: Did they used to? 9 00:00:41,360 --> 00:00:44,600 Speaker 3: Yes? Really, we talked about spooky season here on the show. 10 00:00:44,800 --> 00:00:46,280 Speaker 3: You forget the culture key season. 11 00:00:46,320 --> 00:00:48,080 Speaker 1: I just don't. I never hear people. 12 00:00:49,320 --> 00:00:51,120 Speaker 3: Instead of happy Halloween. 13 00:00:51,159 --> 00:00:51,479 Speaker 1: I don't know. 14 00:00:51,520 --> 00:00:53,159 Speaker 3: It's just like the time around Halloween. 15 00:00:53,159 --> 00:00:55,360 Speaker 2: It's kind of like happy Holidays instead of I guess 16 00:00:55,360 --> 00:00:55,880 Speaker 2: more generic. 17 00:00:55,960 --> 00:00:58,800 Speaker 3: I guess okay, but yeah, it's fun. It's fun for Halloween. 18 00:00:58,840 --> 00:01:02,240 Speaker 3: Follow up, are you dressing Friday? I know how Friday 19 00:01:02,400 --> 00:01:04,960 Speaker 3: is the best? It is the best. I'm so pumped. Yeah, 20 00:01:05,040 --> 00:01:06,360 Speaker 3: my kids, it's gonna be a good one. 21 00:01:06,400 --> 00:01:07,559 Speaker 1: Oh gosh. Yeah, because you can. 22 00:01:07,440 --> 00:01:08,880 Speaker 3: Stay up later. You don't have to worry about the 23 00:01:09,000 --> 00:01:11,000 Speaker 3: hang over the next day, coming over later. Right, Yeah, 24 00:01:11,000 --> 00:01:13,600 Speaker 3: all right, we're gonna let's go. We don't hit those houses. 25 00:01:13,880 --> 00:01:15,800 Speaker 3: And then I'm a stela as much. Literally, you're not 26 00:01:15,920 --> 00:01:18,199 Speaker 3: gonna smash pumpkins and roll, but we're. 27 00:01:18,120 --> 00:01:20,800 Speaker 2: Gonna get as much candy as we can. And then, oh, 28 00:01:20,840 --> 00:01:21,880 Speaker 2: are you gonna steal from my kids? 29 00:01:21,920 --> 00:01:23,679 Speaker 3: Are you gonna do a candy buy back? 30 00:01:23,840 --> 00:01:23,920 Speaker 1: Oh? 31 00:01:24,000 --> 00:01:25,840 Speaker 3: No, I know you always do, right, Oh yes they did. 32 00:01:25,880 --> 00:01:28,039 Speaker 3: And my kids were even asking, like weeks ago, they're like, 33 00:01:28,319 --> 00:01:29,000 Speaker 3: are you needing all? 34 00:01:29,040 --> 00:01:30,480 Speaker 1: Then some of it we toss? 35 00:01:30,600 --> 00:01:33,760 Speaker 3: Okay, somebody like you said, give it to me the 36 00:01:33,800 --> 00:01:36,440 Speaker 3: cheaper stuff. You don't want the candy though it's not good. 37 00:01:36,240 --> 00:01:37,520 Speaker 1: For you, like, don't mind. 38 00:01:37,560 --> 00:01:39,880 Speaker 3: We will keep some around. We'll keep a token amount 39 00:01:40,200 --> 00:01:43,080 Speaker 3: around for Okay, everyone, grab a piece. We're gonna go 40 00:01:43,120 --> 00:01:45,039 Speaker 3: on a hike. We call it like a hike hiking 41 00:01:45,040 --> 00:01:47,320 Speaker 3: treat because then you've kind of like earned it. You 42 00:01:47,360 --> 00:01:50,720 Speaker 3: can you're literally just immediately burning burning those calories and 43 00:01:50,760 --> 00:01:53,560 Speaker 3: like using that fuel as opposed to like sitting there 44 00:01:53,640 --> 00:01:56,520 Speaker 3: watching TV just like shoving your face with chocolate bars. 45 00:01:56,800 --> 00:01:58,440 Speaker 2: I'll just like raid there can I get one or 46 00:01:58,440 --> 00:02:00,520 Speaker 2: two at night and uh before. 47 00:02:00,360 --> 00:02:00,840 Speaker 1: I go to bed? 48 00:02:01,680 --> 00:02:01,800 Speaker 3: Right? 49 00:02:02,080 --> 00:02:04,720 Speaker 2: They're small, all right, there's like they're so tiny. 50 00:02:04,760 --> 00:02:07,280 Speaker 3: It just depends on where you are, trick or treating 51 00:02:07,360 --> 00:02:10,800 Speaker 3: barely exists, so melts in your mouth. Well, I didn't 52 00:02:10,800 --> 00:02:12,920 Speaker 3: say what this was. This is our Friday flight And 53 00:02:13,000 --> 00:02:15,080 Speaker 3: if you care about your money, if you care about 54 00:02:15,160 --> 00:02:17,360 Speaker 3: financial independence at some point in your life, and you 55 00:02:17,360 --> 00:02:20,080 Speaker 3: want to be smarter with your money, this is the 56 00:02:20,120 --> 00:02:21,840 Speaker 3: episode where we talk about what's going on in the 57 00:02:21,840 --> 00:02:24,320 Speaker 3: world and how that's going to impact your ability to 58 00:02:24,320 --> 00:02:25,040 Speaker 3: be smart with your money. 59 00:02:25,120 --> 00:02:26,280 Speaker 2: Also do that, by the way, in the How To 60 00:02:26,320 --> 00:02:28,360 Speaker 2: Money newsletter, which is coming back. We've had a lot 61 00:02:28,360 --> 00:02:30,359 Speaker 2: of people reach out. It's going to drop in your 62 00:02:30,520 --> 00:02:33,120 Speaker 2: email in box on Tuesday. Thank you for being patient 63 00:02:33,400 --> 00:02:35,200 Speaker 2: all your out there who've been asking them about it. 64 00:02:35,240 --> 00:02:38,320 Speaker 2: How Too Money dot com, slash newsletter, Real Quick, Froogaler Cheap. 65 00:02:38,360 --> 00:02:40,560 Speaker 2: Before we get to all the stories, Matt I was 66 00:02:40,600 --> 00:02:44,000 Speaker 2: on USA Today's website this week and their money section 67 00:02:44,760 --> 00:02:47,320 Speaker 2: and the headline I was shocked to see was it 68 00:02:47,320 --> 00:02:51,639 Speaker 2: about whether or not eating roadkill was legal in most states. 69 00:02:51,919 --> 00:02:56,200 Speaker 2: And apparently apparently there are different rules depending on what 70 00:02:56,240 --> 00:02:59,000 Speaker 2: state you're in and what animal it is. 71 00:02:59,040 --> 00:03:02,240 Speaker 3: It's been be rules smacked by the car around that. 72 00:03:02,440 --> 00:03:05,720 Speaker 3: I'm curious that I literally saw biking into work today. 73 00:03:05,760 --> 00:03:09,000 Speaker 3: There was a hit deer, a buck like it of 74 00:03:09,040 --> 00:03:11,919 Speaker 3: all the animals. Well, that's the kind you probably if 75 00:03:11,919 --> 00:03:14,359 Speaker 3: you were a connoisseur of venison. 76 00:03:14,960 --> 00:03:16,280 Speaker 2: So your take frugal or cheap? 77 00:03:17,040 --> 00:03:20,320 Speaker 3: No, that's awful. Oh this makes me think of well 78 00:03:20,360 --> 00:03:22,480 Speaker 3: you remember, Okay, Michael Easters, we had him Friend of 79 00:03:22,520 --> 00:03:24,840 Speaker 3: the Show. In his book, I think he talked about 80 00:03:25,000 --> 00:03:29,400 Speaker 3: this lady who he was. He basically profiled her and 81 00:03:29,480 --> 00:03:34,359 Speaker 3: she would do that for her pet. She was super crunchy, 82 00:03:34,600 --> 00:03:37,560 Speaker 3: maybe lived in a vehicle, was like kind of a nomad, 83 00:03:37,720 --> 00:03:41,280 Speaker 3: was super active, and she would do that for her dog. 84 00:03:41,760 --> 00:03:43,840 Speaker 3: But she would also know that she could tell if 85 00:03:43,840 --> 00:03:46,400 Speaker 3: it was fresh or not. She would get roadkill and 86 00:03:46,600 --> 00:03:49,920 Speaker 3: mint it up process for her for her dog, which 87 00:03:49,960 --> 00:03:52,080 Speaker 3: is man. There's a part of me that really loves that. 88 00:03:52,120 --> 00:03:55,560 Speaker 3: The efficiency there, nothing's going to waste. That's like the 89 00:03:55,720 --> 00:03:57,880 Speaker 3: Native American way, right, Like you use every part of 90 00:03:57,880 --> 00:04:00,280 Speaker 3: the animal. It's like whole hog barbecue. I wish I 91 00:04:00,320 --> 00:04:01,160 Speaker 3: had that fortitude. 92 00:04:01,280 --> 00:04:03,600 Speaker 1: Yeah, I don't when it comes to When it comes. 93 00:04:03,480 --> 00:04:05,400 Speaker 2: To there's just a funny story to see in the 94 00:04:05,400 --> 00:04:08,480 Speaker 2: money section of a newspaper, and I just I thought 95 00:04:08,480 --> 00:04:09,920 Speaker 2: it'd be fun to talk about. But I think both 96 00:04:09,920 --> 00:04:11,520 Speaker 2: of you and I would ask a bit too fun 97 00:04:11,560 --> 00:04:13,440 Speaker 2: land on cheap. But if there is someone in the 98 00:04:13,480 --> 00:04:17,880 Speaker 2: Honda money community who does pick up roadkill and eats 99 00:04:17,880 --> 00:04:20,160 Speaker 2: it or does something productive with it, please let us know. 100 00:04:20,200 --> 00:04:20,720 Speaker 1: I'd love to hear. 101 00:04:20,839 --> 00:04:23,640 Speaker 3: I was thinking through, Okay, I see because that buck 102 00:04:23,680 --> 00:04:25,560 Speaker 3: that I saw it had antlers. Yeah, and I'm like, 103 00:04:25,640 --> 00:04:27,960 Speaker 3: I've always wanted some antlers to put like we've kind 104 00:04:27,960 --> 00:04:30,240 Speaker 3: of got like this nature part we were inspired by 105 00:04:30,279 --> 00:04:33,640 Speaker 3: when we went to the Monticello Jefferson's home and he 106 00:04:33,839 --> 00:04:37,560 Speaker 3: had just amazing things. Obviously, as president, people send you 107 00:04:37,600 --> 00:04:39,480 Speaker 3: stuff and you kind of collect things over the years, 108 00:04:39,520 --> 00:04:42,400 Speaker 3: but it's just a cool way to see different aspects 109 00:04:42,520 --> 00:04:45,839 Speaker 3: of nature, but then also things from other countries as well. 110 00:04:45,880 --> 00:04:47,760 Speaker 3: And so I think, okay, that could be something that 111 00:04:47,800 --> 00:04:49,960 Speaker 3: we'd add to the nature board. But as I was 112 00:04:49,960 --> 00:04:51,919 Speaker 3: thinking through, Okay, what would actually do? Would I go 113 00:04:51,960 --> 00:04:54,400 Speaker 3: here and like try to pop these off like it, 114 00:04:55,240 --> 00:04:57,559 Speaker 3: I'm just I'm not for it, man, Yeah I can't. 115 00:04:57,720 --> 00:04:58,080 Speaker 1: I don't know. 116 00:04:58,200 --> 00:05:01,720 Speaker 3: Maybe my inexperience with deer leads me to be a 117 00:05:01,720 --> 00:05:04,359 Speaker 3: bit squeamish around even considering doing something like that, But 118 00:05:04,400 --> 00:05:06,880 Speaker 3: I'm not I'm not willing to am. I'm willing to 119 00:05:06,880 --> 00:05:08,560 Speaker 3: pick up some ailers if I came across them on 120 00:05:08,600 --> 00:05:10,599 Speaker 3: a trail or something that sounds super cool, I'd be 121 00:05:10,600 --> 00:05:13,839 Speaker 3: super stoked what a find, but not on a recently 122 00:05:13,920 --> 00:05:14,480 Speaker 3: killed deer. 123 00:05:14,560 --> 00:05:18,440 Speaker 2: Reminds me of my first Thanksgiving in Mississippi with my wife, 124 00:05:18,640 --> 00:05:21,160 Speaker 2: my wife's family, and uh, one of the one of 125 00:05:21,200 --> 00:05:23,720 Speaker 2: the dudes, had he had killed a deer and he 126 00:05:23,760 --> 00:05:25,640 Speaker 2: had it strung up and he was skinning it. And 127 00:05:25,640 --> 00:05:28,120 Speaker 2: I was like, all right, that's awesome, man, Like this 128 00:05:28,160 --> 00:05:28,440 Speaker 2: is cool. 129 00:05:28,480 --> 00:05:30,880 Speaker 3: I'd be all about learning from different than I grew up, 130 00:05:30,880 --> 00:05:32,880 Speaker 3: though completely agreed I did not. 131 00:05:33,040 --> 00:05:34,719 Speaker 1: Yeah, I did not grow up in a hunting family. 132 00:05:34,800 --> 00:05:37,640 Speaker 3: Although man, isn't that like the most I don't know 133 00:05:37,680 --> 00:05:42,400 Speaker 3: if it's cost effective, but again, you know, animals resources 134 00:05:42,480 --> 00:05:44,520 Speaker 3: not going to waste. There is something about that that 135 00:05:44,560 --> 00:05:47,360 Speaker 3: appeals to me. But enough of this conversation that might 136 00:05:47,400 --> 00:05:51,000 Speaker 3: be leaving some listeners feeling a little peasy, a little nauseous. 137 00:05:51,480 --> 00:05:56,120 Speaker 3: Talk about inflation, because sticky inflation. That's not a term 138 00:05:56,120 --> 00:05:59,080 Speaker 3: we've used recently, but it is actually pretty sticky. 139 00:05:58,800 --> 00:06:01,280 Speaker 2: Still hanging out of three percent per the fence target 140 00:06:01,279 --> 00:06:03,679 Speaker 2: is two percent, So we're still you know, solid fifty 141 00:06:03,680 --> 00:06:07,200 Speaker 2: percent over that, although much less than where we were 142 00:06:07,360 --> 00:06:10,960 Speaker 2: years ago, when we're closer to closer to eight percent. 143 00:06:11,000 --> 00:06:14,120 Speaker 2: We've seen, right, prices rise still with certain items, Drill. 144 00:06:14,160 --> 00:06:16,479 Speaker 2: Have you actually I was wondering if you've found yourself 145 00:06:16,560 --> 00:06:19,599 Speaker 2: shining away from certain items compared to others because. 146 00:06:19,279 --> 00:06:20,680 Speaker 1: Of where prices have gone. 147 00:06:20,760 --> 00:06:24,760 Speaker 2: Specifically, what if you cut back on specifically beef chicken. 148 00:06:24,839 --> 00:06:27,680 Speaker 3: Yeah, that it made me think about recently. Oh hey, 149 00:06:27,880 --> 00:06:31,720 Speaker 3: you'll get to experience the results of this tonight at 150 00:06:31,720 --> 00:06:32,000 Speaker 3: our house. 151 00:06:32,080 --> 00:06:32,320 Speaker 1: Whatever. 152 00:06:32,360 --> 00:06:35,680 Speaker 3: But a cocktail total wine Spirits Direct. It's like their 153 00:06:35,680 --> 00:06:39,200 Speaker 3: in house brand, and you can get it's significantly cheaper 154 00:06:39,200 --> 00:06:40,919 Speaker 3: than getting some of the name brands, and there are 155 00:06:40,920 --> 00:06:42,640 Speaker 3: some pretty decent products out there when it comes to 156 00:06:43,200 --> 00:06:46,600 Speaker 3: so there's a good amouretto that Spirits Direct has. I've 157 00:06:46,640 --> 00:06:49,000 Speaker 3: actually gotten a smoky Scotch that's real solid as well, 158 00:06:49,160 --> 00:06:51,440 Speaker 3: and so I thought, why not with Mezcal give it 159 00:06:51,440 --> 00:06:54,320 Speaker 3: a shot? Not so great? Oh really, yeah, I do 160 00:06:54,400 --> 00:06:57,080 Speaker 3: not reconnize. I don't even know the name of it. 161 00:06:57,120 --> 00:06:59,160 Speaker 3: But that was that was an instance to where I'm like, man, 162 00:06:59,200 --> 00:07:00,600 Speaker 3: I wonder if there's a way for me to rain 163 00:07:00,640 --> 00:07:02,640 Speaker 3: in some of these high prices going for the spirits 164 00:07:02,680 --> 00:07:05,280 Speaker 3: to direct realizing that in this case it wasn't going 165 00:07:05,320 --> 00:07:06,840 Speaker 3: to cut it had a ended up. 166 00:07:06,800 --> 00:07:07,279 Speaker 1: Going back. 167 00:07:08,920 --> 00:07:11,000 Speaker 3: The green bottle. Yeah, I know, you know the green 168 00:07:11,000 --> 00:07:13,000 Speaker 3: bottle that's got the cool graphics. Oh yeah, the good 169 00:07:13,000 --> 00:07:15,760 Speaker 3: stuff man. Yeah, it's really really tough to pass that up. 170 00:07:15,800 --> 00:07:18,760 Speaker 3: But on a related note, there is some relief when 171 00:07:18,760 --> 00:07:21,880 Speaker 3: it comes to the price of Thanksgiving. The price is 172 00:07:21,920 --> 00:07:24,520 Speaker 3: going down, man, at least at Aldi and Walmart too. 173 00:07:24,680 --> 00:07:27,280 Speaker 3: But I like talking about Aldie. Someone to focus on 174 00:07:27,320 --> 00:07:29,960 Speaker 3: that forty bucks is going to get you all you 175 00:07:30,040 --> 00:07:33,440 Speaker 3: need to feed ten folks, which isn't bad four dollars 176 00:07:33,440 --> 00:07:36,040 Speaker 3: a person. That includes turkey and most of the side 177 00:07:36,080 --> 00:07:39,040 Speaker 3: that folks come to expect they're at Thanksgiving. 178 00:07:38,880 --> 00:07:41,480 Speaker 2: Taters, the cranberry mac and cheese. 179 00:07:41,680 --> 00:07:46,320 Speaker 3: Although yeah, it's tough to go back to the prepackaged style. 180 00:07:46,080 --> 00:07:48,640 Speaker 1: Mac and cheese once you've had My wife's with the shells, 181 00:07:48,880 --> 00:07:50,760 Speaker 1: which is based on one of our real stuff at 182 00:07:50,760 --> 00:07:51,640 Speaker 1: our Yeah, it's. 183 00:07:51,480 --> 00:07:54,400 Speaker 3: Based on one of our favorite barbecue barbecue spots that 184 00:07:54,480 --> 00:07:57,840 Speaker 3: had the best giant shells mac and cheese. But just 185 00:07:57,920 --> 00:07:59,720 Speaker 3: a reminder here where you shot for food can have 186 00:07:59,760 --> 00:08:01,960 Speaker 3: a man impact on your budget, and if you have 187 00:08:01,960 --> 00:08:04,120 Speaker 3: an all D closed by, at least consider it if 188 00:08:04,120 --> 00:08:06,400 Speaker 3: you've never been in before. And that's all I want 189 00:08:06,440 --> 00:08:06,760 Speaker 3: to say. 190 00:08:06,920 --> 00:08:09,640 Speaker 2: So, we got Thanksgiving coming up, and Thanksgiving always makes 191 00:08:09,640 --> 00:08:12,000 Speaker 2: me think and it probably shouldn't but be hosted Money podcast. 192 00:08:12,040 --> 00:08:15,360 Speaker 2: So it always triggers my mind to think about Black Friday, 193 00:08:15,720 --> 00:08:19,040 Speaker 2: Black shopping season all of course almost here. And as 194 00:08:19,200 --> 00:08:21,640 Speaker 2: you and I've noted before on the show Black Friday, 195 00:08:21,680 --> 00:08:23,560 Speaker 2: it's not really a day anymore. It used to be 196 00:08:24,000 --> 00:08:26,320 Speaker 2: right the Friday after Thanksgiving, but now it's become like 197 00:08:26,640 --> 00:08:30,920 Speaker 2: a season. And with I think when Prime Day first 198 00:08:30,960 --> 00:08:32,480 Speaker 2: came about, Matt, there was like one Prime Day. Now 199 00:08:32,520 --> 00:08:36,440 Speaker 2: there's multiple Prime Days every year in summer Prime Day too. Yeah, 200 00:08:36,480 --> 00:08:40,960 Speaker 2: and then there's there's a proliferation of discount sites where, yeah, 201 00:08:41,040 --> 00:08:43,560 Speaker 2: you can buy stuff that didn't get sold maybe or 202 00:08:43,960 --> 00:08:46,840 Speaker 2: stuff at a significantly discounted price. It feels like retailers 203 00:08:46,840 --> 00:08:49,720 Speaker 2: are just like pushing bargains in our direction constantly. We 204 00:08:49,760 --> 00:08:52,200 Speaker 2: have a every time there's a holiday, it's a President's 205 00:08:52,240 --> 00:08:55,880 Speaker 2: Day sale whoo. But this what's interesting to note is 206 00:08:55,920 --> 00:08:59,480 Speaker 2: like shoppers are experiencing discount fatigue. It's according to a 207 00:08:59,520 --> 00:09:02,079 Speaker 2: new report that came out this week. And I think 208 00:09:02,120 --> 00:09:05,760 Speaker 2: this discount fatigue reflects a couple of things. Like One, 209 00:09:06,200 --> 00:09:09,120 Speaker 2: as prices have risen quickly, price tracking has kind of 210 00:09:09,120 --> 00:09:12,320 Speaker 2: become harder. People are just like, I'm assuming I'm paying more. 211 00:09:12,360 --> 00:09:15,240 Speaker 2: I guess this is what it costs now. Two, sales 212 00:09:15,280 --> 00:09:19,840 Speaker 2: don't always reflect a great price. If every weekend there's 213 00:09:19,960 --> 00:09:22,720 Speaker 2: a sale, well how good is the actual sale? And 214 00:09:22,760 --> 00:09:25,480 Speaker 2: if a sales more infrequent, you might assume that you're 215 00:09:25,480 --> 00:09:27,720 Speaker 2: getting a better value. And so I think there's a 216 00:09:27,840 --> 00:09:30,840 Speaker 2: couple ways to think about this. One use cites the 217 00:09:30,920 --> 00:09:34,280 Speaker 2: track previous prices. That's a really helpful thing. There are 218 00:09:34,320 --> 00:09:35,960 Speaker 2: sites out there that'll allow you to track like the 219 00:09:36,000 --> 00:09:38,880 Speaker 2: last thirty to ninety days of pricing on an item. 220 00:09:38,960 --> 00:09:41,240 Speaker 2: So when something looks like it's discounted by seventy percent, 221 00:09:41,280 --> 00:09:44,000 Speaker 2: well is it actually seventy percent off? Or is actually 222 00:09:44,000 --> 00:09:47,280 Speaker 2: really just ten percent off? And they're often charging sixty 223 00:09:47,280 --> 00:09:49,040 Speaker 2: percent less than the actual price. 224 00:09:49,160 --> 00:09:50,959 Speaker 3: Yeah, that's the new Doing the work when it comes 225 00:09:51,000 --> 00:09:53,520 Speaker 3: to shopping is like clicking through a like two more 226 00:09:53,559 --> 00:09:56,000 Speaker 3: clicks and actually looking at the price history. As opposed 227 00:09:56,000 --> 00:10:00,480 Speaker 3: to fully relying on the tiny black price versus the 228 00:10:00,520 --> 00:10:03,440 Speaker 3: new big red price, right, I know, and being triggered 229 00:10:03,440 --> 00:10:05,480 Speaker 3: by by that that, oh, this must be a good deal. 230 00:10:05,520 --> 00:10:07,679 Speaker 2: But I think that is what happens so often. We 231 00:10:07,840 --> 00:10:12,200 Speaker 2: just assumed, right as individuals, that when the Internet came about, 232 00:10:12,200 --> 00:10:13,720 Speaker 2: it be easier to price shop, and it's actually, in 233 00:10:13,720 --> 00:10:16,439 Speaker 2: some ways become harder. I think there's something else that's 234 00:10:16,440 --> 00:10:18,959 Speaker 2: happening to you here too. There are signs that we 235 00:10:19,040 --> 00:10:21,800 Speaker 2: are prioritizing value over the lowest possible price, and I 236 00:10:21,800 --> 00:10:24,880 Speaker 2: think of that as like a pretty good thing. I 237 00:10:24,920 --> 00:10:27,440 Speaker 2: think it's a good idea when you can pay less 238 00:10:27,480 --> 00:10:30,240 Speaker 2: or something, to pay less for it and not to 239 00:10:30,360 --> 00:10:32,760 Speaker 2: just be a sales shop er buying the cheapest thing possible. 240 00:10:32,800 --> 00:10:35,840 Speaker 2: But it's also you know, you and I talk about 241 00:10:35,880 --> 00:10:38,160 Speaker 2: this regularly, Matt. The buy wants cry once movement, like 242 00:10:38,559 --> 00:10:41,040 Speaker 2: buying fewer things, buying nicer things that are going to 243 00:10:41,120 --> 00:10:43,800 Speaker 2: last you longer, is probably better than just being one 244 00:10:43,800 --> 00:10:46,760 Speaker 2: of those people who's like habitually in tune with sales, 245 00:10:46,800 --> 00:10:49,560 Speaker 2: because I think that can lead you astray more in 246 00:10:49,600 --> 00:10:51,440 Speaker 2: today's environment than ever before. 247 00:10:51,559 --> 00:10:52,079 Speaker 1: That's true. 248 00:10:52,160 --> 00:10:54,480 Speaker 3: How we mentioned pop gott one of the a listener 249 00:10:54,480 --> 00:10:56,760 Speaker 3: who reached out who's putting together the site where they're 250 00:10:56,840 --> 00:10:58,679 Speaker 3: using the AI. It's a do price comparison. 251 00:10:59,040 --> 00:11:00,080 Speaker 1: I don't think we've talked about it. 252 00:11:00,160 --> 00:11:02,599 Speaker 3: We should, we should. I mean they're still working on it, 253 00:11:02,640 --> 00:11:04,280 Speaker 3: but it is a great way to if you are 254 00:11:04,360 --> 00:11:06,600 Speaker 3: looking at price per unit. That's one of the things 255 00:11:06,600 --> 00:11:09,480 Speaker 3: that they're breaking down, so less the singular item that 256 00:11:09,520 --> 00:11:12,320 Speaker 3: you're looking at the previous history. But again another site 257 00:11:12,360 --> 00:11:15,120 Speaker 3: that is using utilizing the technology available to us to 258 00:11:15,160 --> 00:11:16,840 Speaker 3: hopefully get folks the best deals. 259 00:11:16,880 --> 00:11:17,439 Speaker 1: So check that out. 260 00:11:17,720 --> 00:11:19,520 Speaker 2: And if you want price history, by the way, Camel 261 00:11:19,520 --> 00:11:21,920 Speaker 2: Cambell Cammel's a good one and slick deals. When you're 262 00:11:21,920 --> 00:11:24,760 Speaker 2: looking at the deals that they put out there, oftentimes 263 00:11:24,800 --> 00:11:26,680 Speaker 2: they list that last ninety days. 264 00:11:26,720 --> 00:11:28,840 Speaker 3: What about on Amazon when you click it the price 265 00:11:28,960 --> 00:11:30,439 Speaker 3: history because they've got it built in. 266 00:11:30,679 --> 00:11:31,640 Speaker 1: Do you trust it. 267 00:11:32,440 --> 00:11:36,280 Speaker 3: On Camel Camel Camel or even within Amazon because it'll 268 00:11:36,280 --> 00:11:38,199 Speaker 3: tell you that, like, oh this is this is cheaper 269 00:11:38,200 --> 00:11:38,680 Speaker 3: than normal. 270 00:11:38,800 --> 00:11:41,960 Speaker 1: Yeah, I prefer trust it. I prefer third party. Yeah. 271 00:11:42,000 --> 00:11:44,240 Speaker 1: I think the third party is most likely to be a. 272 00:11:44,160 --> 00:11:47,679 Speaker 3: Bit more bulletproof. Joel, you said Bubble trouble. Let's talk 273 00:11:47,720 --> 00:11:50,480 Speaker 3: about the stock market. We're going to weigh in on 274 00:11:50,520 --> 00:11:53,960 Speaker 3: whether we think AI stocks are overvalued or undervalue. 275 00:11:54,000 --> 00:11:54,760 Speaker 1: Sell, Sell, Sell. 276 00:11:55,080 --> 00:11:57,760 Speaker 3: I'm all in on video, are you? I'm going to 277 00:11:57,800 --> 00:12:00,680 Speaker 3: short Intel, first five trillion dollar company. I did see 278 00:12:00,679 --> 00:12:02,920 Speaker 3: a headline and it kind of shocked me temporarily. For 279 00:12:02,920 --> 00:12:07,320 Speaker 3: a trillion in videos, the value of that company is 280 00:12:07,360 --> 00:12:09,720 Speaker 3: more than I think the whole GDP of Germany. 281 00:12:10,320 --> 00:12:11,560 Speaker 1: Gosh, it's hard to fod them. 282 00:12:11,679 --> 00:12:15,520 Speaker 3: Yeah, I guess Apple hit the four trillion mark. 283 00:12:15,600 --> 00:12:16,640 Speaker 1: Yeah, earlier this week. 284 00:12:16,800 --> 00:12:21,000 Speaker 3: But our stock prices are they valued highly given historical standards? Yes, 285 00:12:21,160 --> 00:12:24,320 Speaker 3: that is the case. And let's say, have some specific 286 00:12:24,320 --> 00:12:27,640 Speaker 3: companies seen ridiculous stock price surges that may not actually 287 00:12:27,679 --> 00:12:28,199 Speaker 3: be warranted? 288 00:12:28,559 --> 00:12:28,839 Speaker 1: Also? 289 00:12:28,920 --> 00:12:32,800 Speaker 3: Yes, but there are many why factors, part of which 290 00:12:32,880 --> 00:12:35,040 Speaker 3: is fear of missing out. I'll say, right, investors, they 291 00:12:35,559 --> 00:12:38,800 Speaker 3: see these massive gains, they want in making the prices 292 00:12:39,000 --> 00:12:43,360 Speaker 3: even frothier valuations. They can't be divorced from reality forever. 293 00:12:43,720 --> 00:12:46,520 Speaker 3: But it's also super important to note that many of 294 00:12:46,559 --> 00:12:49,960 Speaker 3: the quote unquote bubble predicting folks out there, they've been 295 00:12:49,960 --> 00:12:53,840 Speaker 3: wrong for like years now. These are folks who this 296 00:12:54,000 --> 00:12:57,280 Speaker 3: is just the drum that they continually beat. I saw 297 00:12:57,320 --> 00:13:00,000 Speaker 3: a chart about the number of times bubbles were mentioned 298 00:13:00,200 --> 00:13:03,680 Speaker 3: in media, and it was actually pretty low up until 299 00:13:03,760 --> 00:13:05,800 Speaker 3: the I guess it was the dot com but then 300 00:13:05,880 --> 00:13:08,920 Speaker 3: after the dot com bubble, it was just constantly referred 301 00:13:08,960 --> 00:13:10,680 Speaker 3: back to right. And so I think it's sort of 302 00:13:10,679 --> 00:13:15,400 Speaker 3: this attraction to potentially scary things, negative news. But the 303 00:13:15,480 --> 00:13:18,280 Speaker 3: question is will stock's plateau for a while or are 304 00:13:18,280 --> 00:13:22,880 Speaker 3: we going to see meaningful declines? It is hard to say, obviously, 305 00:13:23,600 --> 00:13:25,480 Speaker 3: and you know, let's talk about this in a couple 306 00:13:25,480 --> 00:13:25,880 Speaker 3: of years. 307 00:13:26,440 --> 00:13:27,800 Speaker 1: Rearview mirror is easier. 308 00:13:28,000 --> 00:13:30,320 Speaker 3: Like twenty twenty, right, But the crucial thing to do 309 00:13:30,400 --> 00:13:33,439 Speaker 3: now is just to know your risk tolerance, know your timeline, 310 00:13:33,520 --> 00:13:35,600 Speaker 3: know how long you're willing to have that money tied up, 311 00:13:35,600 --> 00:13:38,760 Speaker 3: because even if there are declines, historically speaking, the stock 312 00:13:38,760 --> 00:13:39,480 Speaker 3: market goes up. 313 00:13:39,360 --> 00:13:39,840 Speaker 1: Into the right. 314 00:13:39,880 --> 00:13:42,959 Speaker 2: And there's just so many times where even think back 315 00:13:43,000 --> 00:13:46,160 Speaker 2: to the terraff reality. And I'm not saying that tariffs 316 00:13:46,160 --> 00:13:48,640 Speaker 2: aren't having an impact and haven't had an impact, but 317 00:13:49,200 --> 00:13:51,280 Speaker 2: when you look at what's happened with stock prices, the 318 00:13:51,440 --> 00:13:54,479 Speaker 2: new terror regime has not necessarily led to an assault 319 00:13:54,720 --> 00:13:58,600 Speaker 2: on the stock market right and to company valuations, even 320 00:13:58,640 --> 00:14:01,760 Speaker 2: the opposite it has been true. And so, yeah, are 321 00:14:01,760 --> 00:14:04,000 Speaker 2: we in a bubble? That's such a hard question to answer, 322 00:14:04,040 --> 00:14:06,880 Speaker 2: and you really do only know in hindsight. But what 323 00:14:06,920 --> 00:14:08,480 Speaker 2: are you prepared to do about it if we are? 324 00:14:08,920 --> 00:14:13,560 Speaker 2: Because oftentimes bubbles can last for a long time. Makes 325 00:14:13,559 --> 00:14:15,480 Speaker 2: you think of an article I saw on Y'aho Finance 326 00:14:15,600 --> 00:14:17,960 Speaker 2: about the term bearish being in the eye of the 327 00:14:17,960 --> 00:14:20,840 Speaker 2: beholder and financial writer Sam Row he did a great 328 00:14:20,920 --> 00:14:24,400 Speaker 2: job tackling this topic. He doesn't think that predictions of 329 00:14:24,400 --> 00:14:27,840 Speaker 2: a pullback are bearish. His argument was essentially that double 330 00:14:27,880 --> 00:14:31,280 Speaker 2: digit stock market declines they should be expected, and they 331 00:14:31,320 --> 00:14:34,240 Speaker 2: are a regular part of an investor's journey. And so 332 00:14:34,280 --> 00:14:38,120 Speaker 2: if you're an investor who doesn't expect volatility, you should 333 00:14:38,120 --> 00:14:42,680 Speaker 2: be concerned about your potential emotional reaction when that volatility 334 00:14:42,680 --> 00:14:46,040 Speaker 2: eventually comes to pass. And I think I've put Sam 335 00:14:46,160 --> 00:14:49,280 Speaker 2: in our camp as a self abscribed long term optimist 336 00:14:49,440 --> 00:14:52,520 Speaker 2: and short term cautious optimist is what he calls himself. 337 00:14:52,720 --> 00:14:54,560 Speaker 2: I think that's a good way for how money listeners 338 00:14:54,600 --> 00:14:57,240 Speaker 2: to think realize that a bearish outlook up decline of 339 00:14:57,360 --> 00:15:01,280 Speaker 2: ten twenty percent in the stock market. It is kind 340 00:15:01,320 --> 00:15:06,080 Speaker 2: of table stakes every you know, so many years on average. 341 00:15:05,760 --> 00:15:08,080 Speaker 3: That's what the data shows. Yeah, right, like not just 342 00:15:08,160 --> 00:15:11,440 Speaker 3: double digit decline, like literally twenty percent declines right and 343 00:15:12,040 --> 00:15:15,640 Speaker 3: charting there, and they're highlighting how fifteen year periods of 344 00:15:15,640 --> 00:15:18,240 Speaker 3: time you are one hundred percent guaranteed to experience a 345 00:15:18,280 --> 00:15:20,600 Speaker 3: twenty percent decline. And we've actually seen three of them 346 00:15:20,600 --> 00:15:24,400 Speaker 3: since twenty eighteen, which is pretty significant, crazy crazy eighteen, 347 00:15:24,440 --> 00:15:27,520 Speaker 3: twenty twenty obviously during the pandemic, and twenty twenty two 348 00:15:27,720 --> 00:15:30,840 Speaker 3: as well. But like that's the norm. And so if 349 00:15:30,880 --> 00:15:33,640 Speaker 3: you are thinking that we aren't going to experience one 350 00:15:33,640 --> 00:15:36,840 Speaker 3: of those, actually, as he wrote, he said, buckle up. 351 00:15:37,400 --> 00:15:40,040 Speaker 3: Make sure you're a stock market seat belt is buckled. 352 00:15:40,800 --> 00:15:44,080 Speaker 3: But let's talk about gold, because the price of gold 353 00:15:44,240 --> 00:15:47,880 Speaker 3: has been at sky high prices. We've seen it decline 354 00:15:47,960 --> 00:15:50,680 Speaker 3: since I guess last week or a couple of weeks ago. 355 00:15:51,160 --> 00:15:54,400 Speaker 3: But it is so important to look not just at 356 00:15:54,440 --> 00:15:57,320 Speaker 3: the recent history, at the recent high prices of gold, 357 00:15:57,360 --> 00:16:00,920 Speaker 3: because if you would have owned gold from nineteen seventy 358 00:16:01,000 --> 00:16:03,440 Speaker 3: nine to let's say two thousand and six, you would 359 00:16:03,440 --> 00:16:06,680 Speaker 3: have actually lost money. It wasn't just a lost decade. 360 00:16:06,720 --> 00:16:09,280 Speaker 3: It was like literally like almost three lost decades. 361 00:16:09,680 --> 00:16:11,640 Speaker 2: Gold's getting all the headlines down and everybody's like, why 362 00:16:11,840 --> 00:16:14,040 Speaker 2: why am I not investing gold? And it's like, well, yeah, 363 00:16:14,080 --> 00:16:15,720 Speaker 2: maybe don't look at just the past year or two, 364 00:16:15,720 --> 00:16:17,000 Speaker 2: look at the long time arise. 365 00:16:17,080 --> 00:16:18,840 Speaker 3: You can't look at the fact that it's up nearly 366 00:16:18,880 --> 00:16:22,240 Speaker 3: sixty percent this year, right, and you know everyone's to 367 00:16:22,280 --> 00:16:25,320 Speaker 3: own some of it. We don't own any largely because 368 00:16:25,360 --> 00:16:27,120 Speaker 3: it's not well, I take that back. I own a 369 00:16:27,200 --> 00:16:30,280 Speaker 3: very small amount. And actually I have one little gold 370 00:16:30,360 --> 00:16:32,240 Speaker 3: coin d that's like a tenth of an ounce. 371 00:16:32,240 --> 00:16:33,200 Speaker 1: I keep it under your bed. 372 00:16:33,520 --> 00:16:37,360 Speaker 3: I pull it out during Saint Patrick's Day, okay, as 373 00:16:37,440 --> 00:16:40,280 Speaker 3: like a little bit of house decoration, and we showed 374 00:16:40,280 --> 00:16:42,200 Speaker 3: the kids. They're like, that's real gold. We're like, yeah, 375 00:16:42,240 --> 00:16:44,720 Speaker 3: but that's literally as useful as it gets at this point, 376 00:16:45,240 --> 00:16:47,480 Speaker 3: which is why that is all the gold I own 377 00:16:47,760 --> 00:16:52,560 Speaker 3: versus actual companies, actual stocks or companies that are producing 378 00:16:52,560 --> 00:16:55,640 Speaker 3: goods and services that benefit our are our not only 379 00:16:55,640 --> 00:16:57,040 Speaker 3: our economy, but the entire world. 380 00:16:57,080 --> 00:16:59,120 Speaker 2: Part of me wanted to buy a gold bar at 381 00:16:59,160 --> 00:17:02,560 Speaker 2: Costco because just to have a gold, but just to 382 00:17:02,560 --> 00:17:04,200 Speaker 2: be able to tell people that I owned a gold bar. 383 00:17:04,880 --> 00:17:07,520 Speaker 2: I realized why investors flocked to gold for some reasons. 384 00:17:07,520 --> 00:17:10,919 Speaker 2: But I think most how to money listeners, especially younger 385 00:17:11,000 --> 00:17:13,080 Speaker 2: how to money listeners, who are in the wealth building 386 00:17:13,080 --> 00:17:15,800 Speaker 2: phase of their life, owning much gold at all makes 387 00:17:15,880 --> 00:17:19,240 Speaker 2: very little sense. Although it's it becomes super attractive right 388 00:17:19,280 --> 00:17:22,320 Speaker 2: as the price has risen significantly. It's really easy to 389 00:17:22,400 --> 00:17:25,320 Speaker 2: question yourself and be like, why don't I have significant 390 00:17:25,320 --> 00:17:28,119 Speaker 2: gold exposure? And then if you just yeah, zoom out 391 00:17:28,160 --> 00:17:30,360 Speaker 2: on that timeline a little bit, it'll be a little 392 00:17:30,359 --> 00:17:32,600 Speaker 2: bit easier to understand maybe why you don't include it 393 00:17:32,640 --> 00:17:33,400 Speaker 2: in your portfolio? 394 00:17:33,440 --> 00:17:33,960 Speaker 1: Yeah, how much? 395 00:17:33,960 --> 00:17:35,360 Speaker 3: How much did that bar of gold cost? 396 00:17:35,440 --> 00:17:37,719 Speaker 1: How much of it away? Do you know the costco? One? 397 00:17:37,720 --> 00:17:39,520 Speaker 2: I think it was one ounce, And I want to say, 398 00:17:39,840 --> 00:17:42,000 Speaker 2: I don't remember the price of go think sold it? 399 00:17:42,040 --> 00:17:43,600 Speaker 1: Yeah exactly. They were like with a. 400 00:17:43,680 --> 00:17:46,000 Speaker 2: Very small markup and they would sell out almost instantly. 401 00:17:46,040 --> 00:17:48,200 Speaker 3: But then you could have done the goldflex. I could 402 00:17:48,359 --> 00:17:49,720 Speaker 3: be like, yeah, I got a gold bar, I got 403 00:17:49,760 --> 00:17:52,399 Speaker 3: gold bars in my house, But then that attracts you know, 404 00:17:52,480 --> 00:17:55,040 Speaker 3: thieves and nefarious types. Yeah, you don't want to talk 405 00:17:55,080 --> 00:17:57,560 Speaker 3: about And that's so nice that most of our wealth 406 00:17:57,640 --> 00:18:00,639 Speaker 3: is tied up in ways that are not accessible in 407 00:18:00,680 --> 00:18:01,320 Speaker 3: real life. 408 00:18:01,560 --> 00:18:02,840 Speaker 1: I think that's great. I agree. 409 00:18:03,200 --> 00:18:05,840 Speaker 2: Okay, let's talk about one more risky financial asset that 410 00:18:05,880 --> 00:18:08,920 Speaker 2: people are jumping in on, and this is talking about 411 00:18:08,920 --> 00:18:10,240 Speaker 2: a bubble, but I think this is one of the 412 00:18:10,280 --> 00:18:15,280 Speaker 2: signs of maybe irrational exuberance in the investing space. Leverage 413 00:18:15,320 --> 00:18:19,639 Speaker 2: ETFs are becoming more popular, and as investors, leverage can 414 00:18:19,680 --> 00:18:21,879 Speaker 2: cut both ways, right. It can increase your earnings when 415 00:18:21,920 --> 00:18:24,120 Speaker 2: things are going well, and it can leave you more 416 00:18:24,119 --> 00:18:27,280 Speaker 2: exposed when they're not. So these levers ETFs that come 417 00:18:27,320 --> 00:18:29,760 Speaker 2: with a lot higher costs, that's. 418 00:18:29,520 --> 00:18:30,919 Speaker 3: The first downside. 419 00:18:31,119 --> 00:18:33,239 Speaker 2: Yeah, that's the thing that's always present right in some 420 00:18:33,240 --> 00:18:35,240 Speaker 2: of these fancier financial products, is that it's going to 421 00:18:35,280 --> 00:18:38,680 Speaker 2: cost you a lot more. But then on top of that, 422 00:18:38,920 --> 00:18:41,639 Speaker 2: it's leaving a lot of people broken and bloodied by 423 00:18:41,680 --> 00:18:45,320 Speaker 2: the side of the road as their leverage GTF comes 424 00:18:45,359 --> 00:18:47,920 Speaker 2: crashing back down to earth. And some of these ETFs 425 00:18:47,960 --> 00:18:51,080 Speaker 2: are like two x leverage, some are five x leverage, 426 00:18:51,280 --> 00:18:55,199 Speaker 2: which can yeah, massively amplify gains over the course of 427 00:18:55,200 --> 00:18:57,040 Speaker 2: a day or a week or something like that, but 428 00:18:57,080 --> 00:18:59,080 Speaker 2: it can also do the same on the lost side. 429 00:18:59,240 --> 00:19:01,400 Speaker 3: Yeah, I think that's one of the downsides to it too, 430 00:19:01,440 --> 00:19:03,639 Speaker 3: is that it's not just it's not simply it's not 431 00:19:03,680 --> 00:19:06,360 Speaker 3: like a straightforward amplification, because I think some folks would 432 00:19:06,400 --> 00:19:08,040 Speaker 3: hear that and be like, well, I can handle the volatility. 433 00:19:08,240 --> 00:19:11,119 Speaker 3: I can handle the extreme ups and the extreme downs. 434 00:19:11,160 --> 00:19:13,720 Speaker 3: But what they don't realize, and this is where I 435 00:19:13,720 --> 00:19:16,080 Speaker 3: think these products prey on folks that don't understand them, 436 00:19:16,119 --> 00:19:19,280 Speaker 3: is that when you are when you essentially imagine the 437 00:19:19,320 --> 00:19:22,960 Speaker 3: stock drops, right, and then you are invested in leveraged 438 00:19:22,960 --> 00:19:26,359 Speaker 3: ETF so you drop, it drops five x or maybe 439 00:19:26,400 --> 00:19:28,639 Speaker 3: just two x, which might be a little, then you're 440 00:19:28,680 --> 00:19:30,720 Speaker 3: down ten percent, right, yeah, and so but then when 441 00:19:30,720 --> 00:19:33,399 Speaker 3: it rebounds, you are starting out in a hole. And 442 00:19:33,440 --> 00:19:36,520 Speaker 3: so that's the that's the hole that's really tough to 443 00:19:36,600 --> 00:19:39,400 Speaker 3: claw your way out of. And then because someone might say, okay, 444 00:19:39,400 --> 00:19:41,199 Speaker 3: well I'll just wait for it to rebound and then 445 00:19:41,240 --> 00:19:43,760 Speaker 3: I'll be back on top again. Even more so, that's 446 00:19:43,800 --> 00:19:46,200 Speaker 3: not how it works at all, and there's folks who 447 00:19:46,200 --> 00:19:47,680 Speaker 3: are learning that the hard way. 448 00:19:48,240 --> 00:19:48,440 Speaker 1: Yeah. 449 00:19:48,480 --> 00:19:51,320 Speaker 3: I almost think of it like a sequence of returns risk. 450 00:19:51,480 --> 00:19:55,399 Speaker 3: It's that initial decline, that under performance, and then all 451 00:19:55,400 --> 00:19:58,560 Speaker 3: of a sudden, you are literally, quite literally as you're 452 00:19:58,560 --> 00:20:00,880 Speaker 3: looking at a chart, fighting an uphill. 453 00:20:00,440 --> 00:20:01,960 Speaker 2: And you can go all the way to zero, as 454 00:20:02,000 --> 00:20:06,360 Speaker 2: one fund did. It was a leveraged inverse a MD ETF. 455 00:20:06,400 --> 00:20:09,320 Speaker 2: So like that the ship maker so stupid. The stock 456 00:20:09,680 --> 00:20:12,679 Speaker 2: was crushing, and so anybody who invested in that fund, 457 00:20:12,760 --> 00:20:15,719 Speaker 2: like their money went to zero. And so yeah, there 458 00:20:15,760 --> 00:20:20,880 Speaker 2: was another example of a Tesla leveraged ETF and yeah, 459 00:20:20,960 --> 00:20:23,760 Speaker 2: the stock's up on the year, but the leverage ETF 460 00:20:24,080 --> 00:20:27,040 Speaker 2: is down significantly. And so because of that sequence of 461 00:20:27,040 --> 00:20:29,679 Speaker 2: return source that you're talking about, Matt, that's yeah, so 462 00:20:30,000 --> 00:20:32,439 Speaker 2: it's a problem. And so how to money listeners, we 463 00:20:32,480 --> 00:20:34,680 Speaker 2: want you all to stay away from leverage ETFs. 464 00:20:34,760 --> 00:20:36,600 Speaker 1: Yea, they are too hot to handle. Yeah. 465 00:20:36,600 --> 00:20:38,520 Speaker 3: Well, and specifically a term that they use is called 466 00:20:38,600 --> 00:20:41,080 Speaker 3: price decay, which is a great way of thinking about 467 00:20:41,119 --> 00:20:43,679 Speaker 3: it as well, which is that like, just because of volatility, 468 00:20:43,720 --> 00:20:46,080 Speaker 3: you're just always going to see this thing, the price 469 00:20:46,119 --> 00:20:49,119 Speaker 3: of this thing slowly decay because you are going to 470 00:20:49,160 --> 00:20:51,440 Speaker 3: experience losses, which is just going to set you back, 471 00:20:51,520 --> 00:20:53,320 Speaker 3: put you in the hole. But Joel, we got more 472 00:20:53,359 --> 00:20:55,679 Speaker 3: to get to. We will touch on student loans and 473 00:20:55,720 --> 00:20:59,560 Speaker 3: how they are impacting folks personal finances, that and more 474 00:20:59,680 --> 00:21:00,560 Speaker 3: right after for this. 475 00:21:08,240 --> 00:21:10,439 Speaker 2: All right, Matt, we back. Let's get to the Ludacro's 476 00:21:10,480 --> 00:21:12,960 Speaker 2: headline of the back of the week. This one comes 477 00:21:12,960 --> 00:21:16,680 Speaker 2: from a website called The Conversation. I love conversations. Sound 478 00:21:16,680 --> 00:21:19,280 Speaker 2: was reasonable one of my favorite things. As opposed to 479 00:21:19,320 --> 00:21:23,800 Speaker 2: the argument the yeah fight, yeah yeah, the conversation sounds 480 00:21:23,840 --> 00:21:24,280 Speaker 2: more civil. 481 00:21:24,359 --> 00:21:24,800 Speaker 3: Yeah. 482 00:21:24,880 --> 00:21:27,679 Speaker 2: So the headline reads, winning a bidding war isn't always 483 00:21:27,680 --> 00:21:32,159 Speaker 2: a win. Research on fourteen million home sales shows this, 484 00:21:32,320 --> 00:21:35,040 Speaker 2: I think is a good It's a good thing for 485 00:21:35,119 --> 00:21:37,520 Speaker 2: us to cover here because in the real estate market 486 00:21:37,600 --> 00:21:41,040 Speaker 2: they're far fewer bidding wars right now, but there still 487 00:21:41,080 --> 00:21:44,520 Speaker 2: exists right especially in some of the markets that remain 488 00:21:45,240 --> 00:21:48,320 Speaker 2: a little tighter, And I think for a lot of people, 489 00:21:48,400 --> 00:21:51,080 Speaker 2: winning a bidding war on a home can feel great 490 00:21:51,119 --> 00:21:55,119 Speaker 2: because you got the house, you won, right, but you 491 00:21:55,200 --> 00:21:56,879 Speaker 2: might have won the battle and lost the war. It 492 00:21:57,000 --> 00:21:59,359 Speaker 2: typically means when you win a bidding war that you 493 00:21:59,440 --> 00:22:03,480 Speaker 2: got emotionally attached to a property and you overpaid, And 494 00:22:03,600 --> 00:22:05,719 Speaker 2: that's kind of what this article was getting at. There 495 00:22:05,760 --> 00:22:08,800 Speaker 2: was a real estate economist who analyzed millions of deals 496 00:22:09,080 --> 00:22:11,879 Speaker 2: and they found that not only did people who won 497 00:22:12,000 --> 00:22:15,600 Speaker 2: a bidding war see a lot less returns in terms 498 00:22:15,600 --> 00:22:17,520 Speaker 2: of equity growth, which makes sense. You paid a higher 499 00:22:17,520 --> 00:22:19,639 Speaker 2: premium and so equity growth is going to be slower 500 00:22:19,680 --> 00:22:21,240 Speaker 2: because you might have paid more than the house is worth. 501 00:22:21,520 --> 00:22:25,400 Speaker 2: But they were also more likely to default on their mortgage, 502 00:22:25,520 --> 00:22:27,960 Speaker 2: which also kind of makes it bit off more than 503 00:22:28,000 --> 00:22:28,520 Speaker 2: they could chew. 504 00:22:28,600 --> 00:22:32,680 Speaker 3: Right, it's when you are sticking future you with the decisions. 505 00:22:32,200 --> 00:22:32,720 Speaker 1: Of your past. 506 00:22:32,720 --> 00:22:35,000 Speaker 3: That's right, Yeah, it's gonna be more difficult to stick 507 00:22:35,000 --> 00:22:35,280 Speaker 3: with us. 508 00:22:35,280 --> 00:22:37,680 Speaker 2: And the thing I didn't see coming. Those people also 509 00:22:37,800 --> 00:22:40,040 Speaker 2: tend to sell their home more quickly in the future, 510 00:22:40,520 --> 00:22:43,600 Speaker 2: which I don't know if they're just like, oh man, 511 00:22:43,720 --> 00:22:45,600 Speaker 2: I guess I did. It was an emotional decision and 512 00:22:45,640 --> 00:22:46,920 Speaker 2: I don't love this house like I thought. 513 00:22:46,960 --> 00:22:47,879 Speaker 1: Actually this house sucks. 514 00:22:47,920 --> 00:22:50,040 Speaker 2: I thought I had to win and now I ultimately lost. 515 00:22:50,119 --> 00:22:53,679 Speaker 2: And that's like a lethal cocktail for people. So as 516 00:22:53,720 --> 00:22:56,280 Speaker 2: the housing market is cooled again, seeing fewer bidding wars, 517 00:22:56,600 --> 00:22:59,480 Speaker 2: but not entering into a bidding war is probably really 518 00:22:59,720 --> 00:23:02,359 Speaker 2: why is if you are kind of a home buyer 519 00:23:02,440 --> 00:23:06,960 Speaker 2: and you're getting attached to a home, well rethink whether 520 00:23:07,040 --> 00:23:09,359 Speaker 2: or not it's actually worth going head to head with 521 00:23:09,400 --> 00:23:12,680 Speaker 2: somebody else and trying to outbid to bid someone to 522 00:23:12,720 --> 00:23:14,840 Speaker 2: get that specific property, or whether it's worth going back 523 00:23:14,880 --> 00:23:16,479 Speaker 2: to the drawing board and looking at more homes. 524 00:23:16,640 --> 00:23:18,879 Speaker 3: Yeah, and I'll push back a little bit, unlike the 525 00:23:18,880 --> 00:23:21,040 Speaker 3: emotional attachment, because I think it's okay to get emotionally 526 00:23:21,080 --> 00:23:24,080 Speaker 3: attached to things. You just can't let that make the 527 00:23:24,119 --> 00:23:27,480 Speaker 3: best You can't let that outwit your better judgment, especially 528 00:23:27,480 --> 00:23:29,480 Speaker 3: when it comes to finances. Right Like I think about 529 00:23:29,480 --> 00:23:31,680 Speaker 3: my kids, I'm emotionally attached to them, and it might 530 00:23:31,720 --> 00:23:34,359 Speaker 3: be like that's done. Can you buy me a phone? 531 00:23:34,720 --> 00:23:36,760 Speaker 3: And it's up to me to say, oh, I love 532 00:23:36,760 --> 00:23:40,000 Speaker 3: you so much. I'm very emotionally attached to you. I'm 533 00:23:40,000 --> 00:23:42,639 Speaker 3: not gonna let that they say, what like some poor 534 00:23:42,640 --> 00:23:43,479 Speaker 3: financial decision. 535 00:23:43,520 --> 00:23:46,160 Speaker 2: I think you need to undo the emotional attachmentent that's 536 00:23:46,200 --> 00:23:46,840 Speaker 2: the way forward here. 537 00:23:46,920 --> 00:23:48,159 Speaker 3: Yeah, So I don't know. 538 00:23:48,200 --> 00:23:50,240 Speaker 2: I think it's different getting it attached emationally attached to 539 00:23:50,240 --> 00:23:52,240 Speaker 2: a human versus emotionally attached to a home you've never spent. 540 00:23:52,320 --> 00:23:54,400 Speaker 3: Still kind to have emotions and to be excited about 541 00:23:54,400 --> 00:23:56,200 Speaker 3: a home, but you just you still have to enter 542 00:23:56,280 --> 00:23:59,399 Speaker 3: into that transaction very level headed and of course, what 543 00:23:59,440 --> 00:24:01,199 Speaker 3: you're pointing out here is that when you get in 544 00:24:01,320 --> 00:24:03,040 Speaker 3: a bidding war, you tend to push that side of 545 00:24:03,080 --> 00:24:05,399 Speaker 3: your brain like no, no, no, you shut up. I'm 546 00:24:05,440 --> 00:24:08,120 Speaker 3: gonna let the emotions like went out today, as opposed 547 00:24:08,119 --> 00:24:10,560 Speaker 3: to thinking about, oh, can I actually service this mortgage 548 00:24:10,640 --> 00:24:12,960 Speaker 3: or will I be forced into a position where I 549 00:24:12,960 --> 00:24:14,720 Speaker 3: have to end up selling this thing sooner than I 550 00:24:14,720 --> 00:24:17,320 Speaker 3: would like. On a housing note, renters continue to have 551 00:24:17,359 --> 00:24:20,120 Speaker 3: the upper hand in the housing market jol. After years 552 00:24:20,119 --> 00:24:24,200 Speaker 3: of backbreaking rent increases, we're actually seeing decreases in mini 553 00:24:24,240 --> 00:24:27,120 Speaker 3: markets and new units. New buildings are having to offer 554 00:24:27,200 --> 00:24:31,240 Speaker 3: months of free rent to try and avoid these high 555 00:24:31,320 --> 00:24:35,240 Speaker 3: vacancy rates. And the reason, well, it's the increased supply. 556 00:24:35,880 --> 00:24:38,720 Speaker 3: For instance, Atlanta has added more than one hundred thousand 557 00:24:38,760 --> 00:24:41,600 Speaker 3: department units in the past five years. Austin, I don't 558 00:24:41,600 --> 00:24:43,040 Speaker 3: even know their number off the top of my head. 559 00:24:43,040 --> 00:24:44,080 Speaker 1: They've they've built a ton. 560 00:24:44,200 --> 00:24:47,439 Speaker 2: As well, at least fifty thousands, and rents. If you 561 00:24:47,480 --> 00:24:51,440 Speaker 2: look at the chart, rent declines in Austin have been significant. 562 00:24:51,560 --> 00:24:54,919 Speaker 3: Yeah, and I will say too, this is when you 563 00:24:54,960 --> 00:24:57,760 Speaker 3: look at some of the data, it's hard to distinguish 564 00:24:57,760 --> 00:24:59,680 Speaker 3: between multi family and single family. I was trying to 565 00:24:59,720 --> 00:25:02,760 Speaker 3: digger around some in the BLS as to what data 566 00:25:02,800 --> 00:25:05,280 Speaker 3: they have on hand and what data the FED is 567 00:25:05,280 --> 00:25:08,879 Speaker 3: putting out. I couldn't find anything that specific to multi 568 00:25:08,880 --> 00:25:11,600 Speaker 3: family versus single family. But what they did have was 569 00:25:11,960 --> 00:25:16,000 Speaker 3: primary rents in urban environments for all consumers, and so 570 00:25:16,040 --> 00:25:18,760 Speaker 3: it includes single family and multi family. And you are 571 00:25:18,800 --> 00:25:22,159 Speaker 3: still seeing an increase. It has definitely slowed down. It 572 00:25:22,200 --> 00:25:24,320 Speaker 3: almost looks like it might be a plateau. But the 573 00:25:24,320 --> 00:25:26,719 Speaker 3: fact that there are increases tells me that there are 574 00:25:26,800 --> 00:25:30,119 Speaker 3: still maybe slight increases when it comes to single family. 575 00:25:30,160 --> 00:25:33,480 Speaker 3: That's essentially bullying some of the multi family. Yeah, because 576 00:25:33,520 --> 00:25:36,560 Speaker 3: more of an apartment glut than so single family homes 577 00:25:36,560 --> 00:25:38,720 Speaker 3: are more isolated. But how long is that going to last? 578 00:25:38,760 --> 00:25:39,000 Speaker 1: I don't know. 579 00:25:39,200 --> 00:25:41,000 Speaker 3: That's the thing that's yet to be determined. 580 00:25:41,000 --> 00:25:41,160 Speaker 1: Man. 581 00:25:41,280 --> 00:25:43,840 Speaker 2: Yeah, and that's it is interesting to know. I mean, 582 00:25:43,880 --> 00:25:47,520 Speaker 2: I remember getting a lot of those emails and listener questions, 583 00:25:47,680 --> 00:25:49,680 Speaker 2: especially during the heart of the pandemic, as people were 584 00:25:49,680 --> 00:25:54,080 Speaker 2: experiencing insane rent increases, which was super frustrating, and it 585 00:25:54,160 --> 00:25:57,560 Speaker 2: was really hard to kind of tell people, hey, well, 586 00:25:57,560 --> 00:25:59,680 Speaker 2: this is like, this is an economic cycle that's happening. 587 00:25:59,680 --> 00:26:02,239 Speaker 2: Is happen for a reason. But with that incentive, did 588 00:26:02,400 --> 00:26:05,760 Speaker 2: those higher prices incentivize more building, And now that we 589 00:26:05,800 --> 00:26:08,919 Speaker 2: have a glut of apartments and less demand, we're starting 590 00:26:08,960 --> 00:26:11,679 Speaker 2: to see the come down, especially in certain cities that 591 00:26:11,720 --> 00:26:15,399 Speaker 2: were dramatically overbuilt. Yeah, so I think this is in 592 00:26:15,520 --> 00:26:20,560 Speaker 2: large ways what the housing market needed was, Yeah, we 593 00:26:20,600 --> 00:26:23,440 Speaker 2: needed more supply, we got more supply, and now we're 594 00:26:23,440 --> 00:26:24,560 Speaker 2: seeing those prices come down. 595 00:26:24,640 --> 00:26:25,120 Speaker 1: That's right. 596 00:26:25,400 --> 00:26:28,760 Speaker 2: Something else, Matt, that's not great for landlords though, fraudulent 597 00:26:28,960 --> 00:26:33,760 Speaker 2: rental applications. Have you ever experienced this where someone try to. 598 00:26:33,720 --> 00:26:34,960 Speaker 1: Like lie to you know? 599 00:26:35,240 --> 00:26:39,080 Speaker 3: Okay, well, I don't know, actually maybe, but not actually 600 00:26:39,080 --> 00:26:41,600 Speaker 3: any tenants I've actually gone with. Okay, I saw this article. Yeah, 601 00:26:41,640 --> 00:26:44,560 Speaker 3: basically like this is the the packages that are being 602 00:26:44,600 --> 00:26:48,280 Speaker 3: sold to people are TikTok literally saying, hey, listen, buy 603 00:26:48,280 --> 00:26:50,560 Speaker 3: my package. I'll make sure you get the apartment that 604 00:26:51,080 --> 00:26:52,600 Speaker 3: luxury apartments even though. 605 00:26:52,440 --> 00:26:54,399 Speaker 2: You don't have the income or credits are related to qualify. 606 00:26:54,480 --> 00:26:54,680 Speaker 1: Yeah. 607 00:26:54,680 --> 00:26:59,159 Speaker 3: So they're falsifying employment records, tenant history, all sorts of documents. 608 00:26:59,640 --> 00:27:02,600 Speaker 3: And the worst part, dude, that I remember reading was 609 00:27:02,640 --> 00:27:05,120 Speaker 3: the fact that some of these units because they are 610 00:27:05,160 --> 00:27:08,520 Speaker 3: trying to keep vacancy at you know, in reasonable levels, 611 00:27:08,560 --> 00:27:11,560 Speaker 3: if not eliminate them all together. They are enticing folks 612 00:27:11,800 --> 00:27:14,679 Speaker 3: with like, hey, you know what, We're not gonna budge 613 00:27:14,680 --> 00:27:16,040 Speaker 3: on the rent, but we'll give you the first two 614 00:27:16,040 --> 00:27:19,600 Speaker 3: months free. So you got folks who are living, they're 615 00:27:19,600 --> 00:27:22,720 Speaker 3: occupying those units, and then they don't pay that third 616 00:27:22,760 --> 00:27:25,040 Speaker 3: rent or that third months worth of rent, and then 617 00:27:25,080 --> 00:27:27,280 Speaker 3: the fourth month, and then they realize, oh, wait a minute, 618 00:27:27,320 --> 00:27:29,120 Speaker 3: this is somebody who doesn't actually have the funds on hand. 619 00:27:29,119 --> 00:27:31,159 Speaker 3: And they're like five months in before they start the 620 00:27:31,200 --> 00:27:32,399 Speaker 3: eviction process. 621 00:27:32,000 --> 00:27:34,800 Speaker 2: And sometimes they last even longer. They easily yeah, which 622 00:27:34,840 --> 00:27:37,600 Speaker 2: is because the eviction process can take a while as well, 623 00:27:37,640 --> 00:27:39,000 Speaker 2: and it can be onerous. And I think this just 624 00:27:39,040 --> 00:27:41,760 Speaker 2: reflects too the landlords need to be cautious, and that's 625 00:27:41,800 --> 00:27:45,000 Speaker 2: why landlording is not for the faint of heart, because 626 00:27:45,080 --> 00:27:47,920 Speaker 2: there are it's fairly easy to get taken advantage of. 627 00:27:48,119 --> 00:27:49,760 Speaker 2: I feel like the basic thing back in the day 628 00:27:50,440 --> 00:27:53,280 Speaker 2: was listing your friend as your previous landlord, and so 629 00:27:54,000 --> 00:27:56,800 Speaker 2: you as the landlord who's calling the previous landlord. You 630 00:27:57,359 --> 00:28:00,240 Speaker 2: don't really have any meaningful way to verify whether that 631 00:28:00,280 --> 00:28:03,160 Speaker 2: person is actually the landlorder if it's like just their roommate, 632 00:28:03,880 --> 00:28:05,879 Speaker 2: and so you had to be even if they were 633 00:28:06,000 --> 00:28:08,720 Speaker 2: at a place that was more official, where there is 634 00:28:08,760 --> 00:28:11,600 Speaker 2: a good record of them paying or not paying. 635 00:28:11,560 --> 00:28:13,840 Speaker 3: They could instead just write down, well, no, I'll stand here, right. 636 00:28:14,040 --> 00:28:17,240 Speaker 2: And that's where we talk about the importance of ending tenants. 637 00:28:17,280 --> 00:28:20,359 Speaker 2: How it's literally the most important thing as a rental 638 00:28:20,400 --> 00:28:23,679 Speaker 2: property owner. Or you can easily you can mess up 639 00:28:23,760 --> 00:28:28,639 Speaker 2: right and get someone in your house to reduce vacancy 640 00:28:28,960 --> 00:28:31,720 Speaker 2: that ends up harming your house more or doesn't. Yeah, 641 00:28:31,800 --> 00:28:33,919 Speaker 2: it isn't paying rent, and then you've got the hassle 642 00:28:33,920 --> 00:28:35,600 Speaker 2: of getting that person out of your house. 643 00:28:36,000 --> 00:28:37,000 Speaker 1: And so I. 644 00:28:36,920 --> 00:28:40,160 Speaker 2: Think vacancy reduction is a good goal to have, but 645 00:28:40,200 --> 00:28:42,600 Speaker 2: not at the expense of getting someone in there who's 646 00:28:42,760 --> 00:28:44,400 Speaker 2: not going to pay rent, because then you're in a 647 00:28:44,440 --> 00:28:45,520 Speaker 2: worst pickle than you were before. 648 00:28:45,600 --> 00:28:46,280 Speaker 1: Totally agree. 649 00:28:46,360 --> 00:28:50,280 Speaker 3: Actually, a recent property I had come up. He did 650 00:28:50,320 --> 00:28:52,960 Speaker 3: have his previous like he lived with a friend, right, 651 00:28:53,040 --> 00:28:54,800 Speaker 3: and so it's like, Okay, this could have been sort 652 00:28:54,800 --> 00:28:57,800 Speaker 3: of a fishy so a scenario. I didn't suspect that 653 00:28:57,800 --> 00:28:59,640 Speaker 3: he was falsifying anything, but you know what was really 654 00:28:59,640 --> 00:29:02,640 Speaker 3: helpful is the company that he worked for a buddy 655 00:29:02,680 --> 00:29:04,640 Speaker 3: of mine actually works at as well, And so the 656 00:29:04,680 --> 00:29:07,640 Speaker 3: ability to kind of like, oh sweet, it's felt. 657 00:29:07,360 --> 00:29:10,000 Speaker 2: So much more robust if you know this human. Yeah, yeah, 658 00:29:10,000 --> 00:29:10,960 Speaker 2: he's just like yeah. 659 00:29:10,800 --> 00:29:13,120 Speaker 3: Actually and kind of talked about that a little bit. 660 00:29:14,000 --> 00:29:16,480 Speaker 3: A great employer. Yeah, And you can't always verify in 661 00:29:16,520 --> 00:29:19,040 Speaker 3: that way, but man, I guess I got lucky in 662 00:29:19,040 --> 00:29:21,120 Speaker 3: that way to be like, okay, sweet, okay, zero concerns, 663 00:29:21,160 --> 00:29:22,840 Speaker 3: yeah about you lying about anything? 664 00:29:23,000 --> 00:29:25,200 Speaker 2: Well, really, there's so much information you can dig into, 665 00:29:25,240 --> 00:29:28,640 Speaker 2: whether it's credit score, getting actual paste, ubs that. But 666 00:29:28,880 --> 00:29:31,480 Speaker 2: as landlords you have to be even more cautious. Now, yes, 667 00:29:31,520 --> 00:29:33,600 Speaker 2: there's exact people on TikTok trying to gain in the system. 668 00:29:33,680 --> 00:29:35,280 Speaker 3: If they're just like, hey, I've got all that for you. 669 00:29:35,280 --> 00:29:38,040 Speaker 3: You don't need to run the background check that's going 670 00:29:38,080 --> 00:29:40,240 Speaker 3: to cost you thirty five forty five bucks. Let me 671 00:29:40,280 --> 00:29:42,520 Speaker 3: just provide all that for you because they've already paid 672 00:29:42,560 --> 00:29:43,000 Speaker 3: for it as well. 673 00:29:43,080 --> 00:29:43,840 Speaker 1: Yeah, just happens to. 674 00:29:43,880 --> 00:29:46,239 Speaker 3: Be not true, right in some cases. I don't want 675 00:29:46,280 --> 00:29:47,680 Speaker 3: to make it sound like that everyone out there is 676 00:29:47,760 --> 00:29:51,840 Speaker 3: up is a falsifying information and has zero intent to pay. 677 00:29:51,760 --> 00:29:54,760 Speaker 2: Sure, but it is a growing problem. Yes, let's talk 678 00:29:54,800 --> 00:29:58,680 Speaker 2: about credit scores, Matt. They've been dropping across the board, 679 00:29:58,840 --> 00:30:03,040 Speaker 2: I think, especially when we're talking about younger Americans, credit 680 00:30:03,040 --> 00:30:07,040 Speaker 2: scores being dropping meaningfully. A large part of the reason 681 00:30:07,120 --> 00:30:10,680 Speaker 2: why is because student loan payments have resumed, and there's 682 00:30:10,880 --> 00:30:13,320 Speaker 2: a decent segment of the populations who's like, I can't 683 00:30:13,360 --> 00:30:15,880 Speaker 2: afford to pay my student loan right now. The New 684 00:30:15,960 --> 00:30:18,280 Speaker 2: York Times had an article essentially about how it's harder 685 00:30:18,320 --> 00:30:21,120 Speaker 2: for gen Z to build credit than it has in 686 00:30:21,160 --> 00:30:25,040 Speaker 2: the past, and because it's harder to build credit, their 687 00:30:25,080 --> 00:30:28,040 Speaker 2: credit scores aren't as good as they would have been 688 00:30:28,080 --> 00:30:31,840 Speaker 2: maybe in decades past. We know by now that lower 689 00:30:31,840 --> 00:30:35,920 Speaker 2: credit scores have all sorts of negative downstream impacts. Whether 690 00:30:35,960 --> 00:30:38,360 Speaker 2: it's somebody looking to rent a place and their credit 691 00:30:38,440 --> 00:30:40,640 Speaker 2: score is not great and they don't get the apartment 692 00:30:40,680 --> 00:30:43,280 Speaker 2: they want or the house they want. There's just all 693 00:30:43,320 --> 00:30:46,560 Speaker 2: sorts of downsides of not having a great credit score. 694 00:30:46,600 --> 00:30:48,920 Speaker 2: And the truth is, it actually is harder for young 695 00:30:48,920 --> 00:30:51,200 Speaker 2: people to get a credit card to get to start 696 00:30:51,200 --> 00:30:53,320 Speaker 2: building that credit score than it was twenty years ago 697 00:30:53,360 --> 00:30:56,239 Speaker 2: because of the Card Act in particular, and in some 698 00:30:56,280 --> 00:30:58,480 Speaker 2: ways the card act was great right college students, they 699 00:30:58,560 --> 00:31:00,680 Speaker 2: used to be the target of credit card companies on 700 00:31:00,720 --> 00:31:02,959 Speaker 2: campus that get a free football or a free pizza 701 00:31:03,080 --> 00:31:04,760 Speaker 2: or something like that, and they sign up for a 702 00:31:04,800 --> 00:31:06,959 Speaker 2: credit card, and then way too many of those young 703 00:31:07,000 --> 00:31:09,720 Speaker 2: folks would go hogwild. They learn about credit card debt 704 00:31:09,920 --> 00:31:11,640 Speaker 2: the hard way by racking up a ton of it. 705 00:31:12,400 --> 00:31:15,000 Speaker 2: But now it's almost impossible. It's really hard to get 706 00:31:15,000 --> 00:31:18,240 Speaker 2: your first credit card, and young people are relying more 707 00:31:18,320 --> 00:31:20,680 Speaker 2: on debit cards and buy now, pay later, neither of 708 00:31:20,720 --> 00:31:23,600 Speaker 2: which are helping them build their credit score. So I 709 00:31:23,680 --> 00:31:26,680 Speaker 2: think you know the thing worth mentioning is there are 710 00:31:26,880 --> 00:31:30,040 Speaker 2: specific credit cards for young people. College credit cards that 711 00:31:30,080 --> 00:31:32,720 Speaker 2: start with a small limit that are easier to get 712 00:31:32,760 --> 00:31:36,240 Speaker 2: when you're in your early twenties, secured credit cards and 713 00:31:36,600 --> 00:31:39,960 Speaker 2: credit builder loans from companies like self. They might be 714 00:31:40,080 --> 00:31:42,160 Speaker 2: the best option for young folks who don't have any 715 00:31:42,200 --> 00:31:47,200 Speaker 2: other choices. But yeah, people be careful out there in 716 00:31:47,280 --> 00:31:50,320 Speaker 2: the credit space, handle your credit wisely. But I realize 717 00:31:50,320 --> 00:31:52,960 Speaker 2: that it's harder as a young person out there right 718 00:31:52,960 --> 00:31:55,760 Speaker 2: now when it comes to getting that credit started getting credit. 719 00:31:56,240 --> 00:31:59,760 Speaker 2: Good credit built so that you have a good, good 720 00:31:59,800 --> 00:32:02,640 Speaker 2: card profile to bring into your everyday life and those 721 00:32:02,640 --> 00:32:05,040 Speaker 2: bigger financial decisions that you have to make sure. 722 00:32:05,120 --> 00:32:06,960 Speaker 3: Yeah, this is another great reason to add your kids 723 00:32:07,000 --> 00:32:10,040 Speaker 3: to your credit card as an authorized user. If you 724 00:32:10,080 --> 00:32:12,880 Speaker 3: handle your credit well, you can help your youngins build 725 00:32:12,960 --> 00:32:18,640 Speaker 3: a pretty robust credit score years nay decades before they'll 726 00:32:18,680 --> 00:32:20,680 Speaker 3: actually need it in their twenties jrool. Yeah, sure we're 727 00:32:21,320 --> 00:32:24,320 Speaker 3: I'd say we are less keen on saving and investing 728 00:32:24,560 --> 00:32:27,000 Speaker 3: massive chunks of money for your kids. But to each 729 00:32:27,040 --> 00:32:31,000 Speaker 3: their own. But regardless, passing on important personal finance knowledge 730 00:32:31,040 --> 00:32:33,440 Speaker 3: is a necessity. Like that is our job as parents, 731 00:32:33,520 --> 00:32:36,360 Speaker 3: right Like we need to inoculate them and not shelter 732 00:32:36,480 --> 00:32:38,840 Speaker 3: them from all things in life, right like we would need. 733 00:32:39,000 --> 00:32:42,080 Speaker 3: You gotta find ways to reasonably introduce them to different 734 00:32:42,080 --> 00:32:46,880 Speaker 3: ideas into things that at higher levels might like significantly 735 00:32:46,880 --> 00:32:47,240 Speaker 3: harm them. 736 00:32:47,360 --> 00:32:49,200 Speaker 2: Why I'm taking my kids bungee jumping this weekend. 737 00:32:49,840 --> 00:32:53,080 Speaker 3: You'd start by just jumping off the roof, put a 738 00:32:53,080 --> 00:32:55,600 Speaker 3: mattress down to the trampoline or something like that. That 739 00:32:55,720 --> 00:32:58,520 Speaker 3: bad That is preparing them for the road, as opposed 740 00:32:58,560 --> 00:33:01,600 Speaker 3: to preparing the road for them. And I see, you know, 741 00:33:01,680 --> 00:33:04,440 Speaker 3: helping them with their credit and avoiding some of the 742 00:33:04,480 --> 00:33:06,880 Speaker 3: woes that come with trying to initially get credit in 743 00:33:06,920 --> 00:33:09,479 Speaker 3: their twenties, Like this is more kin to giving them 744 00:33:09,520 --> 00:33:12,640 Speaker 3: the tools to succeed as opposed to giving them like 745 00:33:12,680 --> 00:33:15,920 Speaker 3: straight up cash. But over time, the effective use of 746 00:33:16,400 --> 00:33:19,280 Speaker 3: the small amount of credit that you are given like 747 00:33:19,280 --> 00:33:20,480 Speaker 3: that is what's going to help you to build that 748 00:33:20,520 --> 00:33:22,280 Speaker 3: robust score. It's going to help you to have access 749 00:33:22,320 --> 00:33:26,000 Speaker 3: to larger lines of credit. And I'm not talking about 750 00:33:26,040 --> 00:33:29,000 Speaker 3: the ability to take out personal loans or anything, but 751 00:33:29,040 --> 00:33:32,200 Speaker 3: primarily a mortgage the ability to get the best rates there. 752 00:33:32,640 --> 00:33:34,440 Speaker 3: I would rather not have a car loan if you 753 00:33:34,440 --> 00:33:35,960 Speaker 3: don't already have one, you know, just quead. 754 00:33:35,720 --> 00:33:36,560 Speaker 1: And save up that cash. 755 00:33:36,640 --> 00:33:39,400 Speaker 3: But either way, the ability to maintain a healthy credit 756 00:33:39,480 --> 00:33:40,800 Speaker 3: score is a good thing. 757 00:33:41,200 --> 00:33:43,440 Speaker 2: Yeah, And we've got articles up on our site, Matt 758 00:33:43,520 --> 00:33:46,560 Speaker 2: specifically about how to help your kids build a great 759 00:33:46,560 --> 00:33:50,240 Speaker 2: credit score. So if you're like keen, you're interested, you 760 00:33:50,280 --> 00:33:52,200 Speaker 2: could just go the authorized Usuerroute or you can kind 761 00:33:52,200 --> 00:33:54,760 Speaker 2: of head over to our site and learn more about 762 00:33:54,840 --> 00:33:57,480 Speaker 2: how you can help your kids start early, because that 763 00:33:57,640 --> 00:34:00,000 Speaker 2: is as it's you see that in with those young 764 00:34:00,040 --> 00:34:02,560 Speaker 2: twenty something it's really difficult now if nobody helped them out, 765 00:34:02,640 --> 00:34:04,760 Speaker 2: got them started on the right foot. From a credit perspective, 766 00:34:04,960 --> 00:34:07,040 Speaker 2: they feel like they're like flailing as they try to 767 00:34:07,040 --> 00:34:09,680 Speaker 2: move forward, and if the thing is as a parent, 768 00:34:09,719 --> 00:34:12,359 Speaker 2: you can help them so that when they are at 769 00:34:12,360 --> 00:34:15,080 Speaker 2: that age, they're like rare to go. They're ready. 770 00:34:15,280 --> 00:34:17,319 Speaker 3: Yep, but that's gonna be it for this Friday flight. 771 00:34:17,360 --> 00:34:19,719 Speaker 3: We hope everyone has a fantastic weekend. We'll see you 772 00:34:19,760 --> 00:34:24,520 Speaker 3: back here on you guessed it Monday. Happy Halloween, buddy. 773 00:34:24,560 --> 00:34:27,879 Speaker 3: Until next time, best friends Out, Best Friends Out,