1 00:00:00,080 --> 00:00:02,759 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt, 2 00:00:02,960 --> 00:00:25,840 Speaker 1: and today we are answering your listener questions. M Y Joel. 3 00:00:26,120 --> 00:00:29,200 Speaker 1: We have a listener Questions episode up that means we 4 00:00:29,240 --> 00:00:31,680 Speaker 1: are going to get to cover a variety of topics. 5 00:00:31,960 --> 00:00:35,080 Speaker 1: We're gonna answer a question about what to do when 6 00:00:35,080 --> 00:00:38,320 Speaker 1: you are upside down and alan specifically a car loan. 7 00:00:38,680 --> 00:00:41,800 Speaker 1: We're gonna cover how to attack some student loan debt, 8 00:00:41,840 --> 00:00:44,080 Speaker 1: how to go about paying that off. And we're also 9 00:00:44,120 --> 00:00:46,280 Speaker 1: going to cover a question about someone who is caught 10 00:00:46,640 --> 00:00:49,240 Speaker 1: uh in a tough situation where they are loaning money 11 00:00:49,360 --> 00:00:51,880 Speaker 1: to a family member, and then what to do about 12 00:00:51,880 --> 00:00:54,040 Speaker 1: that situation. So we're gonna get to those three plus 13 00:00:54,120 --> 00:00:56,959 Speaker 1: two others during this episode. Sounds good, man, I'm looking 14 00:00:57,000 --> 00:00:59,120 Speaker 1: forward to it. I love the unique questions that we 15 00:00:59,120 --> 00:01:01,120 Speaker 1: get from our listeners. We've got some really good ones 16 00:01:01,160 --> 00:01:03,400 Speaker 1: to cover today on the show. Yeah, we always have 17 00:01:03,440 --> 00:01:05,760 Speaker 1: a nice little variety. But Man, before we get to those, 18 00:01:05,800 --> 00:01:07,480 Speaker 1: I wanted to share something with you. Kate and I 19 00:01:07,560 --> 00:01:09,720 Speaker 1: we recently got back in town. We were visiting her 20 00:01:09,720 --> 00:01:12,880 Speaker 1: parents and she made fun of me because I pulled 21 00:01:12,920 --> 00:01:14,440 Speaker 1: on my phone. We're sitting at a stoplight, and I 22 00:01:14,440 --> 00:01:16,119 Speaker 1: pulled on my phone and not pulled up gas Buddy. 23 00:01:16,400 --> 00:01:18,319 Speaker 1: You've heard of gas buddy, right, of course, use them. 24 00:01:18,840 --> 00:01:20,640 Speaker 1: You're able to look on a little map or it's 25 00:01:20,680 --> 00:01:23,480 Speaker 1: listed out sometimes and you can find where gas prices 26 00:01:23,480 --> 00:01:25,880 Speaker 1: are the cheapest. And Kay Slambi doing that, and she 27 00:01:25,959 --> 00:01:28,080 Speaker 1: was suddenly making fun of me because she's like, what 28 00:01:28,120 --> 00:01:30,320 Speaker 1: are you really gonna save? You know, I ended up 29 00:01:30,319 --> 00:01:33,360 Speaker 1: saving about ten cents per gallon and granted, like you're 30 00:01:33,480 --> 00:01:35,160 Speaker 1: that's only a couple of bucks, you know, like I'm 31 00:01:35,160 --> 00:01:37,160 Speaker 1: filling up a twenty gallant taint, but she in her 32 00:01:37,200 --> 00:01:39,280 Speaker 1: mind that that was an example of me being I 33 00:01:39,280 --> 00:01:43,160 Speaker 1: guess mine's really maybe being cheap over frugal. But yeah, 34 00:01:43,200 --> 00:01:45,720 Speaker 1: what are your thoughts there? Well, I don't typically use 35 00:01:45,760 --> 00:01:48,480 Speaker 1: gas Buddy unless I'm on the road because usually I 36 00:01:48,560 --> 00:01:50,680 Speaker 1: know kind of what the gas prices are in my area. Right, 37 00:01:50,800 --> 00:01:52,800 Speaker 1: very true. I haven't thought about that. I never actually 38 00:01:52,880 --> 00:01:55,200 Speaker 1: used gas Buddy in Atlanta because I just go where 39 00:01:55,240 --> 00:01:57,400 Speaker 1: I go. I don't necessarily look for, you know, wherever 40 00:01:57,400 --> 00:01:59,360 Speaker 1: it's cheapest. I just go to the same gas station 41 00:01:59,400 --> 00:02:02,520 Speaker 1: because it's reading cheap and it's convenient. Yeah, but no, 42 00:02:02,640 --> 00:02:05,440 Speaker 1: I think using gas Buddy or there are other similar 43 00:02:05,440 --> 00:02:07,240 Speaker 1: apps and websites that kind of track the price of 44 00:02:07,280 --> 00:02:10,000 Speaker 1: gas wherever you are. I think, you know me, I'm 45 00:02:10,000 --> 00:02:12,760 Speaker 1: not ashamed of doing whatever it takes to save a 46 00:02:12,800 --> 00:02:15,840 Speaker 1: couple of dollars in most circumstances. Um, I'm the guy 47 00:02:15,880 --> 00:02:19,080 Speaker 1: who wrapped his car to make so much money every month. 48 00:02:19,160 --> 00:02:21,440 Speaker 1: You got about that. Yeah, so I'm always willing to 49 00:02:21,480 --> 00:02:24,440 Speaker 1: experiment or do something different, and I'm you know, I 50 00:02:24,440 --> 00:02:26,560 Speaker 1: feel like gas buddy and looking up gas prices is 51 00:02:26,600 --> 00:02:29,520 Speaker 1: the same. I don't mind doing that one extra step 52 00:02:29,560 --> 00:02:31,560 Speaker 1: to save a couple of bucks. But I will say 53 00:02:31,560 --> 00:02:33,480 Speaker 1: I forget a lot of times too, So I just 54 00:02:33,600 --> 00:02:35,800 Speaker 1: kind of stop wherever's most convenient. Yeah. Well, for me, 55 00:02:35,840 --> 00:02:37,320 Speaker 1: I think a big part of its kind of like 56 00:02:37,360 --> 00:02:41,079 Speaker 1: fostering a money saving mindset, right where you're sort of 57 00:02:41,120 --> 00:02:43,560 Speaker 1: flexing this muscle to to ask yourself the question like 58 00:02:43,680 --> 00:02:45,600 Speaker 1: can I get this but maybe for a little bit cheaper. 59 00:02:45,919 --> 00:02:47,480 Speaker 1: I think there's nothing wrong with that, and I think 60 00:02:47,560 --> 00:02:49,440 Speaker 1: that it's good for us to challenge ourselves to to 61 00:02:49,480 --> 00:02:51,560 Speaker 1: spend less money to try to find that deal. But 62 00:02:51,600 --> 00:02:54,200 Speaker 1: obviously it's it's when we're spending too much of our time, 63 00:02:54,320 --> 00:02:56,160 Speaker 1: or we're driving across town just to save a buck 64 00:02:56,240 --> 00:02:59,520 Speaker 1: or two. You know, when you're beholden to scoring a deal, 65 00:02:59,680 --> 00:03:02,760 Speaker 1: you know, I think that's when it can really screw 66 00:03:02,760 --> 00:03:04,560 Speaker 1: things up, you know, like when your life is dictated 67 00:03:04,840 --> 00:03:07,280 Speaker 1: by what the gas buddy app says. Well, then that's 68 00:03:07,440 --> 00:03:09,600 Speaker 1: a bad situation, and that's maybe when you could be 69 00:03:09,600 --> 00:03:11,880 Speaker 1: considered cheap. But generally speaking, I think it's good to 70 00:03:12,360 --> 00:03:14,720 Speaker 1: think creatively on different ways to save money. And that's 71 00:03:14,720 --> 00:03:16,440 Speaker 1: one of the things that you and I'd like to do. Yeah, 72 00:03:16,520 --> 00:03:18,679 Speaker 1: I think back in the day too, I probably would 73 00:03:18,720 --> 00:03:20,480 Speaker 1: have looked something up on gas Buddy and then I 74 00:03:20,480 --> 00:03:23,240 Speaker 1: would have driven like Google did and the cross referenced 75 00:03:23,280 --> 00:03:25,280 Speaker 1: at the library, and then I probably would have driven 76 00:03:25,360 --> 00:03:27,440 Speaker 1: like seven or eight or ten minutes out of my 77 00:03:27,480 --> 00:03:29,480 Speaker 1: way in order to get the lowest price, because I 78 00:03:29,520 --> 00:03:33,480 Speaker 1: was that intent on paying the lowest amount, not thinking 79 00:03:33,480 --> 00:03:36,160 Speaker 1: about the value of my time, not thinking about, you know, 80 00:03:36,200 --> 00:03:39,520 Speaker 1: all the inconveniencing other people maybe in the car with me, whatever. 81 00:03:39,600 --> 00:03:41,760 Speaker 1: And and so I feel like my mindset has changed 82 00:03:41,840 --> 00:03:44,360 Speaker 1: drastically on that, and I'm not willing to do that anymore. 83 00:03:44,400 --> 00:03:46,440 Speaker 1: But if it is on my way to the interstate. 84 00:03:46,520 --> 00:03:49,160 Speaker 1: Let's say, then, then I'm happy to look it up 85 00:03:49,160 --> 00:03:50,960 Speaker 1: on gas Buddy and make sure I hit the gas 86 00:03:51,000 --> 00:03:52,840 Speaker 1: station that's on my route that has the lowest price 87 00:03:53,160 --> 00:03:56,520 Speaker 1: instead of paying ten cents a gallon more than I should. So, yeah, 88 00:03:56,520 --> 00:03:59,000 Speaker 1: I think it's all in that sort of balanced mindframe 89 00:03:59,120 --> 00:04:01,400 Speaker 1: of how we deal with money, and I think gas 90 00:04:01,440 --> 00:04:03,480 Speaker 1: Buddy can be a helpful tool. I know my dad 91 00:04:03,720 --> 00:04:07,360 Speaker 1: who drives all around Atlanta for his job. I'm not 92 00:04:07,400 --> 00:04:09,320 Speaker 1: sure if he uses it. I think he does, but 93 00:04:09,560 --> 00:04:11,800 Speaker 1: if he doesn't, he should because he's all over the place. 94 00:04:11,840 --> 00:04:14,520 Speaker 1: And how do you remember who's got the cheapest price? Exactly. Yeah, 95 00:04:14,560 --> 00:04:16,240 Speaker 1: but what you said about kind of approaching it with 96 00:04:16,279 --> 00:04:18,839 Speaker 1: a balance in mind, like, that's what we're all about. 97 00:04:18,839 --> 00:04:21,040 Speaker 1: And that's also why we have a beer, a very 98 00:04:21,120 --> 00:04:24,040 Speaker 1: nice craft beer. Typically every episode in our beer for 99 00:04:24,080 --> 00:04:26,000 Speaker 1: this episode is called I Want to Dance with Somebody. 100 00:04:26,080 --> 00:04:28,200 Speaker 1: This is a double New England style I p a 101 00:04:28,800 --> 00:04:31,760 Speaker 1: from Monday Night Brewing, one of our favorite local breweries here. 102 00:04:32,080 --> 00:04:33,640 Speaker 1: We each have one of these men, and I'm looking 103 00:04:33,640 --> 00:04:36,080 Speaker 1: forward to sharing our thoughts at the end of the episode. Yeah, 104 00:04:36,200 --> 00:04:38,040 Speaker 1: pretty sure this beer is gonna make my taste buds 105 00:04:38,040 --> 00:04:40,680 Speaker 1: want to dance. So yeah, let's let book in your mouth. 106 00:04:41,560 --> 00:04:44,039 Speaker 1: Let's dig in while we're answering some listener questions. But 107 00:04:44,200 --> 00:04:47,000 Speaker 1: all right, so onto those listener questions. For anybody out 108 00:04:47,040 --> 00:04:49,120 Speaker 1: there listening who has a question they want to submit 109 00:04:49,160 --> 00:04:50,880 Speaker 1: for Matt and I have take on the show. We 110 00:04:50,920 --> 00:04:52,920 Speaker 1: would love to hear it. We love getting emails from 111 00:04:52,920 --> 00:04:55,640 Speaker 1: you with your audio attachment of a listener question. And 112 00:04:55,640 --> 00:04:57,200 Speaker 1: it's so easy to submit your question to be on 113 00:04:57,200 --> 00:04:59,120 Speaker 1: a future episode. Just go to how to money dot 114 00:04:59,200 --> 00:05:02,240 Speaker 1: com slash ask and it'll take you a minute or 115 00:05:02,279 --> 00:05:04,760 Speaker 1: two to create that question and send it on over 116 00:05:04,800 --> 00:05:07,359 Speaker 1: our way and hopefully we can take yours at a 117 00:05:07,360 --> 00:05:09,200 Speaker 1: future date. All right, Matt, but let's get to the 118 00:05:09,279 --> 00:05:11,720 Speaker 1: first question for this episode. This one is about being 119 00:05:11,800 --> 00:05:15,880 Speaker 1: upside down on a vehicle loan. Hey, guys, this is 120 00:05:15,960 --> 00:05:20,440 Speaker 1: Corey calling from Wilmington, North Carolina. I'm reaching out to 121 00:05:20,480 --> 00:05:23,160 Speaker 1: see if you have any advice on how to navigate 122 00:05:23,200 --> 00:05:27,839 Speaker 1: a severely upside down vehicle loan. Long story short, I 123 00:05:28,000 --> 00:05:33,359 Speaker 1: purchased my Jeep new in Since purchasing the vehicle, I 124 00:05:33,480 --> 00:05:37,680 Speaker 1: have moved state and now making about twelve thousand less 125 00:05:37,720 --> 00:05:40,880 Speaker 1: a year. On top of that, the jeepest started to 126 00:05:40,920 --> 00:05:44,800 Speaker 1: experience major mechanical issues, such as the four wheel drive 127 00:05:44,880 --> 00:05:50,080 Speaker 1: dropping out in the transmission regularly overheating. I've checked into 128 00:05:50,160 --> 00:05:53,760 Speaker 1: these issues and found that neither are covered by my warranty, 129 00:05:53,839 --> 00:05:56,880 Speaker 1: and I do not meet lemonlock criteria in my state 130 00:05:57,480 --> 00:06:00,560 Speaker 1: or the state that I purchased the vehicle in. I 131 00:06:00,640 --> 00:06:03,600 Speaker 1: really can't continue to keep up with my payments, which 132 00:06:03,600 --> 00:06:07,080 Speaker 1: are four a month n s P. For all the 133 00:06:07,120 --> 00:06:08,960 Speaker 1: maintenance that it needs in order for it to be 134 00:06:09,000 --> 00:06:13,760 Speaker 1: a reliable source of transportation. I have been successful in 135 00:06:13,920 --> 00:06:17,719 Speaker 1: lowering my insurance payments, so that's helped a little bit. 136 00:06:18,279 --> 00:06:22,080 Speaker 1: And I did try refinancing but was unable to do so. 137 00:06:22,080 --> 00:06:25,039 Speaker 1: So any suggestions or advice you could give would be 138 00:06:25,080 --> 00:06:29,400 Speaker 1: greatly appreciated. Thank you so much. Hey Corey, thanks so 139 00:06:29,480 --> 00:06:31,880 Speaker 1: much for that question. And yeah, no, lenders are probably 140 00:06:31,920 --> 00:06:33,760 Speaker 1: gonna want to, you know, let you do a refinance 141 00:06:33,800 --> 00:06:36,359 Speaker 1: when you're upside down on that car Loan. And just 142 00:06:36,360 --> 00:06:39,640 Speaker 1: generally speaking here, I'm sorry. I've owned two Jeeps in 143 00:06:39,640 --> 00:06:43,280 Speaker 1: my lifetime, and in both cases I was really excited 144 00:06:43,360 --> 00:06:45,479 Speaker 1: to be done with those vehicles. They're they're kind of 145 00:06:45,520 --> 00:06:48,200 Speaker 1: the worst man. They cost so much money to maintain. 146 00:06:48,360 --> 00:06:50,880 Speaker 1: There's all sorts of problems. I think to own a 147 00:06:50,920 --> 00:06:54,640 Speaker 1: Jeep is to no sorrow. Oh gosh, well I've never 148 00:06:54,680 --> 00:06:57,000 Speaker 1: owned one, so I'm glad I did. I did get 149 00:06:57,040 --> 00:06:59,560 Speaker 1: to like drive my buddies one time. They're fun to 150 00:06:59,640 --> 00:07:01,680 Speaker 1: dry swear the people. The way people look at you though, 151 00:07:01,680 --> 00:07:03,800 Speaker 1: it's almost worth it. I think that's in a Jeep. 152 00:07:03,839 --> 00:07:05,680 Speaker 1: He's real cool. I never got those looks in any 153 00:07:05,720 --> 00:07:10,000 Speaker 1: other car that I drove. That's because he drove like 154 00:07:07,839 --> 00:07:13,480 Speaker 1: a That's right. But all right, Corey, sorry about the 155 00:07:13,720 --> 00:07:16,360 Speaker 1: car troubles you're experiencing. And by the way, Matt, when 156 00:07:16,400 --> 00:07:18,840 Speaker 1: you're talking about the reliability of a car, it is 157 00:07:18,880 --> 00:07:21,720 Speaker 1: important before people buy any car to look at the 158 00:07:21,880 --> 00:07:25,000 Speaker 1: reliability numbers from places like Consumer Reports and Shady Power, 159 00:07:25,040 --> 00:07:26,480 Speaker 1: because that can help you kind of know what you're 160 00:07:26,480 --> 00:07:29,480 Speaker 1: getting into. Oftentimes the issues with these cars are are 161 00:07:29,520 --> 00:07:32,720 Speaker 1: pretty well documented. But yeah, let's first talk about Lemon 162 00:07:32,800 --> 00:07:35,520 Speaker 1: laws because Corey mentioned that, and it's important Corey to 163 00:07:35,520 --> 00:07:38,120 Speaker 1: to make sure to continue to document the issues that 164 00:07:38,160 --> 00:07:40,840 Speaker 1: your car is having. Right if they happen frequently enough, 165 00:07:41,360 --> 00:07:43,080 Speaker 1: and typically that means that you need to be able 166 00:07:43,080 --> 00:07:47,000 Speaker 1: to document three unsuccessful repair attempts, then you will qualify 167 00:07:47,080 --> 00:07:50,440 Speaker 1: under your state's lemon laws. So if these issues persist 168 00:07:50,520 --> 00:07:53,840 Speaker 1: and you have the documentation, then you will qualify. But 169 00:07:53,880 --> 00:07:56,360 Speaker 1: if you don't have it thoroughly documented and you haven't 170 00:07:56,440 --> 00:07:58,440 Speaker 1: had those three repair attempts, then you're not gonna be 171 00:07:58,480 --> 00:08:00,960 Speaker 1: able to qualify under that. But definitely make sure to 172 00:08:01,000 --> 00:08:03,960 Speaker 1: look at your state's lemon law and what it takes 173 00:08:04,160 --> 00:08:07,800 Speaker 1: to UH to have your vehicle considered a lemon under 174 00:08:07,840 --> 00:08:09,920 Speaker 1: that law. But there is a chance if these issues 175 00:08:09,960 --> 00:08:12,120 Speaker 1: persessed that you might be able to qualify even though 176 00:08:12,360 --> 00:08:15,160 Speaker 1: you don't currently. And then Corey, let's talk about your income. 177 00:08:15,200 --> 00:08:18,000 Speaker 1: You know, you just mentioned how your income has decreased some. 178 00:08:18,520 --> 00:08:20,880 Speaker 1: You know, if your car is repossessed because you can't 179 00:08:20,920 --> 00:08:24,440 Speaker 1: make payments, remember that that will affect your credit for 180 00:08:24,480 --> 00:08:26,880 Speaker 1: seven years and that's a really long time. And then 181 00:08:26,920 --> 00:08:29,720 Speaker 1: on top of that, you'll also be without transportation H 182 00:08:29,800 --> 00:08:32,360 Speaker 1: and also as well, you'll likely be since a bill 183 00:08:32,400 --> 00:08:35,040 Speaker 1: for deficiency because the negative equity that the lender is 184 00:08:35,040 --> 00:08:37,480 Speaker 1: now on the hook for UH and the repot costs 185 00:08:37,520 --> 00:08:40,160 Speaker 1: that they will incur. So all that to say, this 186 00:08:40,240 --> 00:08:43,120 Speaker 1: is not an ideal scenario either, and it's just a 187 00:08:43,160 --> 00:08:45,640 Speaker 1: mess that you will want to completely avoid again. And 188 00:08:45,679 --> 00:08:48,800 Speaker 1: the lender doesn't even want the car back. There are 189 00:08:48,720 --> 00:08:51,040 Speaker 1: a lot of costs that they'll incur that they'll pass 190 00:08:51,080 --> 00:08:52,560 Speaker 1: on to you if they do end up having to 191 00:08:52,559 --> 00:08:55,240 Speaker 1: repossess it. So repossession is something that if you can 192 00:08:55,320 --> 00:08:57,760 Speaker 1: avoid it, it's something that you do want to avoid. 193 00:08:58,040 --> 00:09:00,400 Speaker 1: But right now though, in particular because of COVID, you 194 00:09:00,440 --> 00:09:02,760 Speaker 1: mentioned that your income has decreased, Well, you should actually 195 00:09:02,800 --> 00:09:06,319 Speaker 1: be able to get your payment deferred because of the coronavirus, 196 00:09:06,480 --> 00:09:09,640 Speaker 1: right And almost eight percent of auto loans actually thus 197 00:09:09,679 --> 00:09:12,839 Speaker 1: far have had their loan terms changed, So we're talking 198 00:09:12,880 --> 00:09:15,520 Speaker 1: about almost one in ten people with a car loan 199 00:09:15,600 --> 00:09:17,520 Speaker 1: have been able to call up and have some of 200 00:09:17,520 --> 00:09:19,960 Speaker 1: the terms changed because they're going through a tough time 201 00:09:20,040 --> 00:09:22,840 Speaker 1: right now. And that's something that you should be pursuing, Corey, 202 00:09:22,880 --> 00:09:25,280 Speaker 1: if you can, in order to give you that breathing room. 203 00:09:25,520 --> 00:09:27,840 Speaker 1: The length and the specifics of what the payment deferment 204 00:09:28,080 --> 00:09:30,400 Speaker 1: will look like are going to vary based on which 205 00:09:30,480 --> 00:09:33,000 Speaker 1: lender you have your loan through, right Like, for example, 206 00:09:33,040 --> 00:09:35,840 Speaker 1: I think Matt we mentioned months ago when Ally Financial 207 00:09:35,920 --> 00:09:38,560 Speaker 1: first announced that they were doing a hundred and twenty 208 00:09:38,600 --> 00:09:42,439 Speaker 1: days of deferment for any of the auto Yeah, for impacted, right, 209 00:09:42,480 --> 00:09:45,720 Speaker 1: So other lenders offering more like ninety days and some 210 00:09:45,800 --> 00:09:48,680 Speaker 1: of those blanket deferrals just aren't aren't happening in the 211 00:09:48,760 --> 00:09:52,000 Speaker 1: same way, but they are working with people individually, and 212 00:09:52,000 --> 00:09:54,400 Speaker 1: so I would suggest calling your lender up a SAP 213 00:09:54,679 --> 00:09:58,679 Speaker 1: and specifically asking for a similar three or four month deferral, 214 00:09:59,040 --> 00:10:01,800 Speaker 1: and specifically it you want no late feast charged, and 215 00:10:01,880 --> 00:10:03,480 Speaker 1: you can ask for an interest rate reduction as well, 216 00:10:03,480 --> 00:10:05,560 Speaker 1: you might be able to get better overall terms for 217 00:10:05,600 --> 00:10:07,679 Speaker 1: your loan. And like Matt said at the beginning of 218 00:10:07,760 --> 00:10:11,480 Speaker 1: answering your question, a refinance isn't isn't gonna happen when 219 00:10:11,480 --> 00:10:13,800 Speaker 1: you're upside down, But your current lender might be able 220 00:10:13,800 --> 00:10:18,000 Speaker 1: to offer you special help right now because of COVID circumstances, 221 00:10:18,120 --> 00:10:20,160 Speaker 1: and it sounds like you'll qualify, And I would imagine 222 00:10:20,280 --> 00:10:22,720 Speaker 1: just that conversation with your lender could help in a 223 00:10:22,760 --> 00:10:25,080 Speaker 1: major way. Yeah, you know, I wish we just had 224 00:10:25,120 --> 00:10:27,280 Speaker 1: better news for you, Corey, but there there isn't a 225 00:10:27,320 --> 00:10:29,360 Speaker 1: magic pill, you know, or an easy button that you 226 00:10:29,400 --> 00:10:31,440 Speaker 1: can just hit, you know, just a long road of 227 00:10:31,640 --> 00:10:34,360 Speaker 1: some hard work where you're making phone calls. Um. But 228 00:10:34,440 --> 00:10:35,920 Speaker 1: keep in mind too, once you've been able to pay 229 00:10:36,000 --> 00:10:38,080 Speaker 1: down some of that loan in the future and you 230 00:10:38,080 --> 00:10:41,200 Speaker 1: are less underwater on that car, it might make sense 231 00:10:41,200 --> 00:10:42,959 Speaker 1: to go ahead and sell that Jeep and buy something 232 00:10:43,000 --> 00:10:46,480 Speaker 1: a whole lot cheaper, something more affordable and more reliable. Uh. 233 00:10:46,520 --> 00:10:48,280 Speaker 1: And then with the money that you're saving, you can 234 00:10:48,280 --> 00:10:51,280 Speaker 1: maybe head to New Anthem. She mentioned that she's in 235 00:10:51,320 --> 00:10:53,680 Speaker 1: Wilmington's New Anthems, a really good brewery there that's one 236 00:10:53,720 --> 00:10:56,240 Speaker 1: of our favorites. Maybe you can go there and celebrate 237 00:10:56,240 --> 00:10:59,400 Speaker 1: with a really good beer. Yeah yeah, So Corey again, 238 00:10:59,480 --> 00:11:02,679 Speaker 1: sorry you're going through this difficult time. And this is 239 00:11:02,760 --> 00:11:04,400 Speaker 1: one of the reasons that Matt and I are not 240 00:11:04,760 --> 00:11:07,040 Speaker 1: typically in favor of people buying new cars. It can 241 00:11:07,080 --> 00:11:10,360 Speaker 1: get out of hand, especially if your income goes down. 242 00:11:10,559 --> 00:11:13,000 Speaker 1: There are so many ways in which a new car 243 00:11:13,040 --> 00:11:15,680 Speaker 1: loan can be detrimental. But best of luck as you 244 00:11:15,720 --> 00:11:18,480 Speaker 1: move forward and hopefully your lender is able to work 245 00:11:18,520 --> 00:11:21,160 Speaker 1: something out with you that is to your mutual benefit, 246 00:11:21,360 --> 00:11:23,079 Speaker 1: that gives you that breathing room and allows you to 247 00:11:23,080 --> 00:11:24,520 Speaker 1: stay in the car. And and also if that car 248 00:11:24,520 --> 00:11:27,040 Speaker 1: continues to have issues, remember to document those because that 249 00:11:27,080 --> 00:11:29,360 Speaker 1: will help you in the long run as well. All Right, Matt, 250 00:11:29,400 --> 00:11:31,280 Speaker 1: let's get to some more questions, including the next one 251 00:11:31,320 --> 00:11:34,040 Speaker 1: about a four or three B conversion. We'll get to 252 00:11:34,080 --> 00:11:45,679 Speaker 1: that right after the break. All right, Joe, we are 253 00:11:45,720 --> 00:11:47,160 Speaker 1: back from the break, and let's go ahead now and 254 00:11:47,200 --> 00:11:50,000 Speaker 1: hear that question about a retirement account that four oh 255 00:11:50,080 --> 00:11:53,599 Speaker 1: three B. Hey, guys, names jam and Washington d C. 256 00:11:54,360 --> 00:11:57,040 Speaker 1: I have a question for you that maybe a bit complicated, 257 00:11:57,559 --> 00:12:00,640 Speaker 1: but I think I may have the rare exception for 258 00:12:00,760 --> 00:12:03,439 Speaker 1: turning down free money. Basically, I just got have a 259 00:12:03,520 --> 00:12:06,360 Speaker 1: ton of credit card debt from really spending habits when 260 00:12:06,360 --> 00:12:10,200 Speaker 1: I was in my early twenties. Seven. Now leaving my 261 00:12:10,240 --> 00:12:13,160 Speaker 1: current job for a new offer. I'm starting in July, 262 00:12:13,320 --> 00:12:15,040 Speaker 1: and I have about twenty K and a four or 263 00:12:15,120 --> 00:12:17,319 Speaker 1: three B. I'm curious about what I should do for 264 00:12:17,360 --> 00:12:19,679 Speaker 1: the next year or two. I'm planning to enroll in 265 00:12:19,760 --> 00:12:24,079 Speaker 1: law school either fall or twenty two, and my new 266 00:12:24,120 --> 00:12:27,559 Speaker 1: company has a great match. But I wouldn't be vested 267 00:12:28,320 --> 00:12:31,800 Speaker 1: until reaching three years at the company. Given they'll pull 268 00:12:31,840 --> 00:12:35,240 Speaker 1: back the contributions. The free money we typically love, does 269 00:12:35,280 --> 00:12:37,480 Speaker 1: it make more sense to roll over my twenty from 270 00:12:37,480 --> 00:12:39,720 Speaker 1: the four or three B into an I R A 271 00:12:40,200 --> 00:12:42,280 Speaker 1: and contribute to that for the next year or two 272 00:12:42,320 --> 00:12:47,120 Speaker 1: while building a non existing emergency fund before law school. Anyway, 273 00:12:47,160 --> 00:12:49,880 Speaker 1: I know it's a little complicated, but thanks for everything 274 00:12:49,960 --> 00:12:52,920 Speaker 1: you guys do. Jim, thanks for your question man and it. 275 00:12:52,960 --> 00:12:56,559 Speaker 1: Congrats on paying down your credit card debt. Also bummer 276 00:12:56,640 --> 00:12:59,160 Speaker 1: that it's a three year vesting period with your new company, 277 00:12:59,280 --> 00:13:01,400 Speaker 1: all right? For listening or who don't know like what 278 00:13:01,480 --> 00:13:04,240 Speaker 1: a vesting period is or vesting schedule, It's simply a 279 00:13:04,280 --> 00:13:06,600 Speaker 1: period of time that an employer requires you to stay 280 00:13:06,600 --> 00:13:09,120 Speaker 1: with the company in order for you to fully own 281 00:13:09,160 --> 00:13:12,520 Speaker 1: any benefits like an employer match that they might be providing. 282 00:13:12,760 --> 00:13:14,400 Speaker 1: If you don't know what the vesting period is, it 283 00:13:14,440 --> 00:13:16,680 Speaker 1: can be a little misleading because you might see a 284 00:13:16,760 --> 00:13:19,400 Speaker 1: retirement account balance that's actually higher than it really is 285 00:13:19,400 --> 00:13:21,400 Speaker 1: if you were to leave that job early, so be 286 00:13:21,520 --> 00:13:26,120 Speaker 1: aware of that. Typically, vesting periods range between uh, no, 287 00:13:26,120 --> 00:13:28,439 Speaker 1: no time at all, or one year in five years. 288 00:13:28,720 --> 00:13:31,040 Speaker 1: I think when I started at my job it was 289 00:13:31,080 --> 00:13:34,160 Speaker 1: a one year vesting period. Button too shabby, not too shabby, 290 00:13:34,200 --> 00:13:37,559 Speaker 1: But three years is like proved your loyalty jam before 291 00:13:37,840 --> 00:13:40,920 Speaker 1: we actually give you this money in your retirement account. Yeah. Basically, 292 00:13:40,920 --> 00:13:43,000 Speaker 1: that's why these vesting periods do exist, is because they 293 00:13:43,000 --> 00:13:45,440 Speaker 1: are trying to encourage that loyalty. They want to dangle 294 00:13:45,440 --> 00:13:47,120 Speaker 1: that carrot a little bit, you know, before they offer 295 00:13:47,160 --> 00:13:49,679 Speaker 1: that benefit. And so, Jim, you mentioned starting your own 296 00:13:49,720 --> 00:13:52,120 Speaker 1: retirement account. Unless you're your four or three B IS 297 00:13:52,160 --> 00:13:55,120 Speaker 1: with one of the low cost providers like Fidelity, then 298 00:13:55,160 --> 00:13:57,840 Speaker 1: you should strongly consider rolling it over into an i 299 00:13:57,920 --> 00:14:00,840 Speaker 1: ra A with a low cost investment company, and make 300 00:14:00,880 --> 00:14:03,839 Speaker 1: sure you do a direct rollover from your current four 301 00:14:03,920 --> 00:14:06,400 Speaker 1: or three B provider to the company you want your 302 00:14:06,559 --> 00:14:08,720 Speaker 1: IRA to be with. You want to make sure that 303 00:14:08,760 --> 00:14:11,600 Speaker 1: you avoid having the check sent to you so that 304 00:14:11,640 --> 00:14:14,760 Speaker 1: you can reduce the likelihood of creating a taxable event. 305 00:14:15,160 --> 00:14:16,880 Speaker 1: You know, taxes, they're a part of life, but you 306 00:14:16,880 --> 00:14:20,360 Speaker 1: don't want to have to pay taxes unnecessarily. Matt, I 307 00:14:20,520 --> 00:14:23,760 Speaker 1: read something recently. I want to say, the amount lost 308 00:14:24,000 --> 00:14:26,960 Speaker 1: typically by people who leave a job and get a 309 00:14:27,080 --> 00:14:29,920 Speaker 1: check from their employer instead of having it transferred to 310 00:14:30,120 --> 00:14:32,600 Speaker 1: another investment company and they where they sit on it 311 00:14:32,720 --> 00:14:34,920 Speaker 1: for too long. Yeah, they which is sixty days is 312 00:14:34,960 --> 00:14:36,840 Speaker 1: the period that you're allowed to have it in your 313 00:14:36,840 --> 00:14:39,040 Speaker 1: possession is going to be a sad statistic. It's like 314 00:14:39,080 --> 00:14:41,960 Speaker 1: one point five trillion dollars. I think it's one point 315 00:14:41,960 --> 00:14:43,760 Speaker 1: five trillion. I could be wrong. I need to go 316 00:14:43,760 --> 00:14:46,200 Speaker 1: back and look. But that I was like, that seems insane. 317 00:14:46,240 --> 00:14:49,120 Speaker 1: I was slabbergast. It's crazy because, yeah, the the tax 318 00:14:49,120 --> 00:14:51,960 Speaker 1: and penalties on that is massive, and so you want 319 00:14:51,960 --> 00:14:53,680 Speaker 1: to make sure that that check does not get sent 320 00:14:53,720 --> 00:14:57,320 Speaker 1: to you, that it gets sent directly to the investment 321 00:14:57,320 --> 00:14:59,480 Speaker 1: company that you want to do business with, preferably one 322 00:14:59,520 --> 00:15:02,400 Speaker 1: of the local ones. And Jim, let's talk about emergency 323 00:15:02,400 --> 00:15:06,240 Speaker 1: funds too. That emergency fund is crucial, right, focused on 324 00:15:06,280 --> 00:15:09,200 Speaker 1: that before you attempt to tackle investing even more of 325 00:15:09,240 --> 00:15:11,440 Speaker 1: your money, right, especially if you're planning out going back 326 00:15:11,480 --> 00:15:14,080 Speaker 1: to school and you'll likely be making less money for 327 00:15:14,120 --> 00:15:16,240 Speaker 1: a period of time. While you do have this job 328 00:15:16,240 --> 00:15:19,160 Speaker 1: and you do have an income, it's more important to 329 00:15:19,240 --> 00:15:22,360 Speaker 1: put more of that income into that fund, right, so 330 00:15:22,400 --> 00:15:24,520 Speaker 1: that you can have three to six months of expenses 331 00:15:24,520 --> 00:15:27,240 Speaker 1: set aside, or considering, you know, we're in a crazy 332 00:15:27,280 --> 00:15:29,560 Speaker 1: time right now, maybe even something more like six and 333 00:15:29,640 --> 00:15:31,560 Speaker 1: nine months, you know, the quicker you can set up 334 00:15:31,800 --> 00:15:34,800 Speaker 1: a meaningful emergency fund, the better position you're going to 335 00:15:34,920 --> 00:15:37,640 Speaker 1: be in. Yeah, I couldn't agree more. Man and so Jim, 336 00:15:37,680 --> 00:15:40,800 Speaker 1: good luck with law school. Hopefully that means increased earnings 337 00:15:40,840 --> 00:15:43,560 Speaker 1: for you upon graduation and the ability for you to 338 00:15:43,600 --> 00:15:45,920 Speaker 1: invest even more of your income there in the future. 339 00:15:46,160 --> 00:15:47,600 Speaker 1: All right, Joe, let's go ahead and get to our 340 00:15:47,640 --> 00:15:50,480 Speaker 1: next question. This one is about how to approach paying 341 00:15:50,480 --> 00:15:54,080 Speaker 1: down some student loan debt. Hey, Matt and Jel, this 342 00:15:54,160 --> 00:15:57,640 Speaker 1: is Rusty coming at you from West Texas. My wife 343 00:15:57,640 --> 00:16:00,760 Speaker 1: has about thirty dollars in student debt. With the way 344 00:16:00,760 --> 00:16:03,240 Speaker 1: that her loans are set up, they are in four 345 00:16:03,400 --> 00:16:06,920 Speaker 1: separate loan accounts, and usually when you pay towards, the 346 00:16:07,000 --> 00:16:10,920 Speaker 1: loan amount is divided into each account. Right now, because 347 00:16:10,920 --> 00:16:14,720 Speaker 1: of everything going on, we have no interest and everything 348 00:16:14,760 --> 00:16:18,120 Speaker 1: goes to principle. We also have the ability to choose 349 00:16:18,360 --> 00:16:21,920 Speaker 1: what account our payments go to. We're currently hitting the 350 00:16:21,960 --> 00:16:25,240 Speaker 1: accounts to have the highest interest rates, but not necessarily 351 00:16:25,280 --> 00:16:28,800 Speaker 1: the most principal Would it be advantageous of us to 352 00:16:28,880 --> 00:16:31,480 Speaker 1: stay on that course, or do you think it might 353 00:16:31,520 --> 00:16:33,760 Speaker 1: be a little bit better to go a different route, 354 00:16:34,480 --> 00:16:37,840 Speaker 1: Maybe go for like the highest principle accounts first with 355 00:16:38,000 --> 00:16:40,320 Speaker 1: one to two percent less interest rates than the lower 356 00:16:40,360 --> 00:16:43,840 Speaker 1: principle accounts. Anyways, let me know what you guys think. 357 00:16:44,400 --> 00:16:47,560 Speaker 1: Keep it up and thanks for the great podcast. Hey Russy, 358 00:16:47,640 --> 00:16:49,600 Speaker 1: thanks for your question. And since at the beginning of 359 00:16:49,640 --> 00:16:51,960 Speaker 1: your question you brought up the student loan interest holiday, 360 00:16:52,120 --> 00:16:55,800 Speaker 1: which essentially lasts until October, well let's just mention that 361 00:16:55,880 --> 00:16:58,000 Speaker 1: really quickly, Matt. I mean, I'm sure everybody out there 362 00:16:58,080 --> 00:17:00,840 Speaker 1: who has a student loan now knows that there is 363 00:17:00,880 --> 00:17:03,560 Speaker 1: not just an interest holiday, but a holiday on payments 364 00:17:03,840 --> 00:17:06,359 Speaker 1: until October, which is great, And so you and I 365 00:17:06,680 --> 00:17:09,520 Speaker 1: for most people were saying that the best thing for 366 00:17:09,560 --> 00:17:12,040 Speaker 1: them to do is to take that break and to 367 00:17:12,880 --> 00:17:15,760 Speaker 1: basically beef up their emergency fund, right just like we're 368 00:17:15,800 --> 00:17:18,359 Speaker 1: mentioning to Jim's question this, right, that is kind of 369 00:17:18,400 --> 00:17:20,560 Speaker 1: the answer for a lot of people right now is 370 00:17:20,600 --> 00:17:22,960 Speaker 1: to have more cash on hand, save more money. And 371 00:17:23,000 --> 00:17:25,639 Speaker 1: of course, if that deadline gets extended or if you know, 372 00:17:25,760 --> 00:17:28,600 Speaker 1: student loan payments get deferred for an even longer period 373 00:17:28,600 --> 00:17:30,639 Speaker 1: of time, we'll be sure to bring that up. But 374 00:17:30,720 --> 00:17:32,680 Speaker 1: we hope that everyone out there with student loans is 375 00:17:32,720 --> 00:17:34,879 Speaker 1: kind of using this time to save the money that 376 00:17:34,920 --> 00:17:38,040 Speaker 1: they would have otherwise been paying towards their monthly student 377 00:17:38,040 --> 00:17:41,000 Speaker 1: loan payment. Yeah, especially with so many people in a 378 00:17:41,040 --> 00:17:43,560 Speaker 1: more precarious position. But rusty, you know, it sounds like 379 00:17:43,680 --> 00:17:46,760 Speaker 1: y'all are in a solid spot financially, uh, and you've 380 00:17:46,760 --> 00:17:49,240 Speaker 1: continued making payments. You know, this is a really great 381 00:17:49,280 --> 00:17:51,879 Speaker 1: move because, like you mentioned, the entire payment is applied 382 00:17:51,880 --> 00:17:54,520 Speaker 1: to the principal balance. So when it comes to which 383 00:17:54,560 --> 00:17:56,960 Speaker 1: balance to focus on, I love the idea of either 384 00:17:57,359 --> 00:17:59,679 Speaker 1: paying off the loans with the lowest balance, which is 385 00:17:59,720 --> 00:18:03,000 Speaker 1: the snowball approach, or paying off the loans with the 386 00:18:03,080 --> 00:18:06,520 Speaker 1: highest interest rate first, which is the debt avalanche approach. 387 00:18:06,800 --> 00:18:08,800 Speaker 1: Based on what you're saying, it sounds like those loans 388 00:18:08,880 --> 00:18:11,920 Speaker 1: are one and the same for you, which is awesome. Yeah, 389 00:18:11,960 --> 00:18:14,240 Speaker 1: that's super awesome. Right, Essentially, you've got the best of 390 00:18:14,280 --> 00:18:16,160 Speaker 1: both the world's here. So we would say, like, keep 391 00:18:16,160 --> 00:18:20,000 Speaker 1: going with that strategy. Right, it's got these two benefits essentially. Right, First, 392 00:18:20,160 --> 00:18:22,280 Speaker 1: it means that you're gonna be eliminating the debt with 393 00:18:22,320 --> 00:18:25,119 Speaker 1: the highest rate most quickly, which is best from a 394 00:18:25,160 --> 00:18:28,640 Speaker 1: number standpoint. So you're doing the mathematically correct move right, 395 00:18:28,640 --> 00:18:30,520 Speaker 1: But then you'll also be able to fully pay off 396 00:18:30,560 --> 00:18:33,520 Speaker 1: some of those debts more quickly because you're also prioritizing 397 00:18:33,800 --> 00:18:37,720 Speaker 1: the loans with the smallest balance. So from a psychological standpoint, 398 00:18:37,720 --> 00:18:40,080 Speaker 1: that gives you this huge mental boost as well and 399 00:18:40,119 --> 00:18:43,119 Speaker 1: some encouragement to kind of keep knocking that debt down. 400 00:18:43,440 --> 00:18:46,240 Speaker 1: Matt Unite. We did an episode on the debt avalanche 401 00:18:46,280 --> 00:18:48,679 Speaker 1: versus the debt snowball quite a while back, and it 402 00:18:48,720 --> 00:18:51,159 Speaker 1: was an interesting discussion. I think some people will be 403 00:18:51,160 --> 00:18:53,800 Speaker 1: better served by taking the avalanche approach. Some people are 404 00:18:53,800 --> 00:18:57,200 Speaker 1: better served by getting that psychological benefit and going with 405 00:18:57,240 --> 00:19:00,400 Speaker 1: the snowball approach. But Rusty is basically like in Two 406 00:19:00,400 --> 00:19:02,719 Speaker 1: Birds with One Stone, kind of with his approach here, 407 00:19:02,760 --> 00:19:05,639 Speaker 1: which I love. Yeah, Man, Like you mentioned, we dedicated 408 00:19:05,720 --> 00:19:08,320 Speaker 1: an entire episode to that. That was episode eighty five, 409 00:19:08,440 --> 00:19:10,240 Speaker 1: So we'd recommend for you to go back and listen 410 00:19:10,280 --> 00:19:12,520 Speaker 1: to that one if you haven't heard that one before. 411 00:19:13,160 --> 00:19:14,760 Speaker 1: But I was gonna mention too, man, I've I've got 412 00:19:14,760 --> 00:19:17,520 Speaker 1: a situation coming up where I've got multiple loans and 413 00:19:17,960 --> 00:19:20,200 Speaker 1: basically I've got to decide whether I'm going to take 414 00:19:20,240 --> 00:19:22,560 Speaker 1: the avalanche approach where I focus on the interest rate 415 00:19:22,800 --> 00:19:25,560 Speaker 1: or whether I focus on the balances that are the 416 00:19:25,600 --> 00:19:28,840 Speaker 1: smallest to where I'll take the snowball approach, right, And 417 00:19:28,960 --> 00:19:31,520 Speaker 1: you know, typically, like historically I would I would have 418 00:19:31,560 --> 00:19:34,800 Speaker 1: favored the math nerdy approach and said, like, Nope, I 419 00:19:34,840 --> 00:19:37,080 Speaker 1: want to minimize the amount that I'm paying, no matter 420 00:19:37,160 --> 00:19:38,960 Speaker 1: what that does to my psyche. But I think a 421 00:19:38,960 --> 00:19:42,920 Speaker 1: lot of times, uh, it's easy to discount the psychological 422 00:19:42,960 --> 00:19:46,160 Speaker 1: effects of the snowball approach. Uh. And so I haven't 423 00:19:46,160 --> 00:19:48,800 Speaker 1: completely decided yet, but I think I'm going to focus 424 00:19:48,840 --> 00:19:51,239 Speaker 1: on the snowball approach, even though that interest rate is 425 00:19:51,440 --> 00:19:55,800 Speaker 1: unfortunately the lowest, but I think having that that psychological 426 00:19:55,840 --> 00:19:58,680 Speaker 1: boost is going to be just worth the additional money 427 00:19:58,800 --> 00:20:00,760 Speaker 1: that I would pay towards those owns. Yeah, it makes 428 00:20:00,760 --> 00:20:03,480 Speaker 1: me think of the Tommy Boy scene where he gets 429 00:20:03,480 --> 00:20:05,879 Speaker 1: a refrigerator in his office and he's talking to his 430 00:20:05,960 --> 00:20:09,199 Speaker 1: dad and he's like, you keep six packs of soda 431 00:20:09,280 --> 00:20:11,320 Speaker 1: in here? And his dad's like, whatever you want to 432 00:20:11,359 --> 00:20:12,919 Speaker 1: keep cold, Tommy Boy. And I feel the same way 433 00:20:13,000 --> 00:20:15,480 Speaker 1: kind of about the debt payoff approach, Like whatever it 434 00:20:15,520 --> 00:20:17,879 Speaker 1: takes to keep you motivated, Tommy Boy, Like, make it 435 00:20:17,920 --> 00:20:19,800 Speaker 1: happen if it's the debt snowball, go for it. If 436 00:20:19,800 --> 00:20:22,000 Speaker 1: it's debt avalanche, make that happen. Like but whatever it is, 437 00:20:22,000 --> 00:20:25,120 Speaker 1: it takes your you know, debt attacking prowess into hyper drive. 438 00:20:25,320 --> 00:20:27,240 Speaker 1: Go for that. Make it happen. Yeah, you know the 439 00:20:27,320 --> 00:20:29,760 Speaker 1: ultimate goal is to to get focused and to pay 440 00:20:29,800 --> 00:20:32,080 Speaker 1: off that debt quickly. So, you know, Rusty, it sounds 441 00:20:32,080 --> 00:20:35,280 Speaker 1: like you're in a fantastic spot having both of those 442 00:20:35,320 --> 00:20:37,560 Speaker 1: things lined up, and so we wish you the best 443 00:20:37,560 --> 00:20:39,720 Speaker 1: of luck. All right, Je, We've got a couple more questions, 444 00:20:39,800 --> 00:20:42,600 Speaker 1: including one about loaning money to friends and family, as 445 00:20:42,600 --> 00:20:46,600 Speaker 1: well as one about lowering your adjusted gross income in 446 00:20:46,720 --> 00:20:48,879 Speaker 1: order to pay fewer taxes. We'll get to both of 447 00:20:48,920 --> 00:21:01,560 Speaker 1: those right after the break. Parna, Matt, we're back from 448 00:21:01,560 --> 00:21:03,960 Speaker 1: the break, and before I look up let streaming service, 449 00:21:04,040 --> 00:21:06,080 Speaker 1: I can find Tommy boy On. Let's get to these 450 00:21:06,200 --> 00:21:09,080 Speaker 1: last to listener questions. First, one about loaning money to 451 00:21:09,119 --> 00:21:12,640 Speaker 1: family and friends. Hi, this is Zsi from Annapolis, Maryland. 452 00:21:12,680 --> 00:21:15,320 Speaker 1: I recently discovered your podcast and I absolutely love it. 453 00:21:15,359 --> 00:21:18,200 Speaker 1: My questions about loaning money to friends and family. I've 454 00:21:18,240 --> 00:21:20,879 Speaker 1: always been a fiscally responsible person and have maintained a 455 00:21:20,880 --> 00:21:24,439 Speaker 1: healthy emergency found of about six months living expenses. My 456 00:21:24,520 --> 00:21:27,320 Speaker 1: sister is the complete opposite. She's been living paycheck to 457 00:21:27,359 --> 00:21:29,960 Speaker 1: paycheck for years. It is, at least in part a 458 00:21:30,000 --> 00:21:32,960 Speaker 1: result of poor decision making. Every couple of weeks or so, 459 00:21:33,000 --> 00:21:35,119 Speaker 1: she'll ask borrow money for me to cover bills or 460 00:21:35,119 --> 00:21:38,320 Speaker 1: an unexpected car repair. I've pretty much become her interest 461 00:21:38,400 --> 00:21:41,199 Speaker 1: free payday loan service. I'm starting to get annoyed, but 462 00:21:41,240 --> 00:21:44,000 Speaker 1: I feel obligated to keep loaning her money since she 463 00:21:44,160 --> 00:21:46,159 Speaker 1: has for the most part paid me back in a 464 00:21:46,160 --> 00:21:49,920 Speaker 1: timely manner. Am I further enabling her to keep making 465 00:21:49,960 --> 00:21:52,680 Speaker 1: bad financial decisions? How do you guys feel about leaning 466 00:21:52,680 --> 00:21:55,120 Speaker 1: money to friends and family? Joel, now that you brought 467 00:21:55,160 --> 00:21:58,800 Speaker 1: up Tommy Boy, actually can't stop thinking about it. Before 468 00:21:58,800 --> 00:22:01,040 Speaker 1: we answer Asie's question, do you think you're a bigger 469 00:22:01,160 --> 00:22:04,520 Speaker 1: David Spade fan or a Chris Farley fan? Oh that's tough, man. 470 00:22:04,800 --> 00:22:08,000 Speaker 1: I mean I feel like they're almost inseparable. You know, 471 00:22:08,000 --> 00:22:10,679 Speaker 1: they were in so many good movies together. Yeah, and 472 00:22:10,680 --> 00:22:13,040 Speaker 1: Black Sheep, Tommy Boy that there was another one too, right, 473 00:22:13,280 --> 00:22:14,639 Speaker 1: I don't know. They just felt like they were a 474 00:22:14,680 --> 00:22:16,520 Speaker 1: pair and they went together. So I don't think I 475 00:22:16,520 --> 00:22:18,680 Speaker 1: should have to choose. No, I would choose David Spade. 476 00:22:19,520 --> 00:22:22,119 Speaker 1: I'm gonna choose because I came prepared, uh in that 477 00:22:22,160 --> 00:22:24,120 Speaker 1: ten seconds that I waited for you to answer. Yeah, 478 00:22:24,119 --> 00:22:26,680 Speaker 1: I like his dry, subtle, understated humor. Yeah, I mean 479 00:22:26,760 --> 00:22:30,159 Speaker 1: Joe Dirt. That was classic. And really he's just had 480 00:22:30,160 --> 00:22:32,600 Speaker 1: a longer career too, So I mean so many good 481 00:22:32,640 --> 00:22:35,200 Speaker 1: movies that David Spade's put out. True rest in peace, 482 00:22:35,240 --> 00:22:37,200 Speaker 1: Chris Farley, no doubt. All right, let's get on to 483 00:22:37,280 --> 00:22:40,240 Speaker 1: Essie's question. Essie, by the way, that's what we call 484 00:22:40,280 --> 00:22:42,679 Speaker 1: our ten month old Matt. His name is Ezra, call 485 00:22:42,800 --> 00:22:45,160 Speaker 1: m Zie. So I kind of feel like I'm um 486 00:22:45,359 --> 00:22:47,960 Speaker 1: have a special bond here with Essie exactly exactly. We're 487 00:22:48,040 --> 00:22:52,480 Speaker 1: good friends already. So congratulations on handley your money well Asie. 488 00:22:52,520 --> 00:22:55,320 Speaker 1: It's fascinating to me too, how siblings with the same 489 00:22:55,400 --> 00:22:58,040 Speaker 1: upbringing can handle money so differently. It makes me wonder 490 00:22:58,200 --> 00:23:01,560 Speaker 1: how differently my kids are going to hand their personal finances, 491 00:23:01,640 --> 00:23:05,600 Speaker 1: because personalities have like so much of uh an influence 492 00:23:05,760 --> 00:23:08,199 Speaker 1: on how we save and how we spend. I know 493 00:23:08,280 --> 00:23:10,680 Speaker 1: that my take on money is really different than my 494 00:23:10,720 --> 00:23:12,720 Speaker 1: sister's and so much of that has to do with 495 00:23:12,800 --> 00:23:16,199 Speaker 1: kind of innate personality stuff. I just find that fascinating. 496 00:23:16,240 --> 00:23:18,200 Speaker 1: So yeah, but I know that this is a tough 497 00:23:18,600 --> 00:23:20,480 Speaker 1: thing that as he's waiting through Matt, so, yeah, what 498 00:23:20,640 --> 00:23:22,760 Speaker 1: what do you think how should she be handling the 499 00:23:22,880 --> 00:23:25,600 Speaker 1: relationship dynamics with her sister when it comes to kind 500 00:23:25,600 --> 00:23:28,119 Speaker 1: of asking for money thing. Yeah, well, it's important to 501 00:23:28,200 --> 00:23:30,080 Speaker 1: keep in mind here, as he is that you know, 502 00:23:30,119 --> 00:23:33,119 Speaker 1: these relationship dynamics, they're the most important thing here, right. 503 00:23:33,200 --> 00:23:35,920 Speaker 1: You know, if if you are getting annoyed, then continuing 504 00:23:35,960 --> 00:23:38,480 Speaker 1: to loan her money isn't sustainable. You might have enough 505 00:23:38,480 --> 00:23:40,800 Speaker 1: money on hand to be able to easily loan or something, 506 00:23:40,800 --> 00:23:42,920 Speaker 1: but like, it's not about the money, you know, it's 507 00:23:42,920 --> 00:23:45,520 Speaker 1: about the damage that might occur to your relationship. I 508 00:23:45,560 --> 00:23:47,879 Speaker 1: think that annoyance can build up over time and that 509 00:23:47,920 --> 00:23:50,960 Speaker 1: could lead to resentment, and those aren't the kind of 510 00:23:50,960 --> 00:23:53,760 Speaker 1: feelings that you're likely going to want to have for her. Yeah, 511 00:23:53,800 --> 00:23:56,720 Speaker 1: and as he also mentioned enabling her sister, And I 512 00:23:56,760 --> 00:23:59,560 Speaker 1: think that is a good question to be asking, but 513 00:23:59,640 --> 00:24:03,359 Speaker 1: it's not necessarily the most important question, right, It's more 514 00:24:03,440 --> 00:24:05,840 Speaker 1: about I think what you are just getting at mad 515 00:24:05,880 --> 00:24:08,520 Speaker 1: it's more about their relationship and less about her doing 516 00:24:08,560 --> 00:24:11,880 Speaker 1: permanent damage to her sister and how her sister handles money. Right, 517 00:24:11,880 --> 00:24:14,119 Speaker 1: So the healthy and fair thing to do is to 518 00:24:14,160 --> 00:24:16,359 Speaker 1: have a conversation with her, to be honest, and it 519 00:24:16,440 --> 00:24:19,320 Speaker 1: doesn't have to be awkward, I don't think. But letting 520 00:24:19,320 --> 00:24:21,640 Speaker 1: her know how you feel about the matter, that you're 521 00:24:21,640 --> 00:24:26,359 Speaker 1: concerned about the effects of her continued borrowing on your relationship, 522 00:24:26,600 --> 00:24:28,560 Speaker 1: that's an important step to take. And Matt, you and 523 00:24:28,600 --> 00:24:31,840 Speaker 1: I we always encourage people being honest about money, bringing 524 00:24:31,880 --> 00:24:35,600 Speaker 1: up the conversation, having more conversations surrounding money with family 525 00:24:35,600 --> 00:24:38,280 Speaker 1: and friends. In our culture, it's very awkward to bring 526 00:24:38,400 --> 00:24:40,840 Speaker 1: up the topic at all, right, But at this point, 527 00:24:40,920 --> 00:24:43,840 Speaker 1: you have a perfect window to be kind to your 528 00:24:43,840 --> 00:24:46,440 Speaker 1: sister while you're talking about money, and while you're approaching 529 00:24:46,440 --> 00:24:48,560 Speaker 1: the subject, and I think you can talk about kind 530 00:24:48,560 --> 00:24:51,639 Speaker 1: of the effects that her continued asks for money is 531 00:24:51,680 --> 00:24:55,440 Speaker 1: having on your relationship without hurting the relationship overall. And 532 00:24:55,720 --> 00:24:59,280 Speaker 1: I think actually sometimes those conversations actually strengthen the relationship 533 00:24:59,680 --> 00:25:01,719 Speaker 1: because you can talk about the hard things. And if 534 00:25:01,760 --> 00:25:03,560 Speaker 1: you don't talk about those hard things, you know, what 535 00:25:03,640 --> 00:25:05,720 Speaker 1: kind of a relationship do you really really have. And 536 00:25:06,000 --> 00:25:08,760 Speaker 1: so yeah, I think sometimes those harder discussions actually are 537 00:25:08,800 --> 00:25:12,400 Speaker 1: the building blocks of a stronger relationship down the road. Yeah, 538 00:25:12,400 --> 00:25:14,640 Speaker 1: and as if you do this well, then not only 539 00:25:14,680 --> 00:25:16,840 Speaker 1: is relationship likely to improve, like Joel mentioned, but you know, 540 00:25:16,920 --> 00:25:19,639 Speaker 1: she might even be open to hear some practical advice 541 00:25:19,680 --> 00:25:21,720 Speaker 1: on on how she can get out of that cycle 542 00:25:22,200 --> 00:25:24,840 Speaker 1: of living from paycheck to paycheck like you mentioned. But 543 00:25:24,920 --> 00:25:27,760 Speaker 1: even if that doesn't happen, she doesn't have to think 544 00:25:27,800 --> 00:25:30,080 Speaker 1: about or or handle money the way you do in 545 00:25:30,160 --> 00:25:32,159 Speaker 1: order for you all to move forward, you know, but 546 00:25:32,280 --> 00:25:35,040 Speaker 1: she does need to respect your boundaries, and so in 547 00:25:35,119 --> 00:25:38,480 Speaker 1: that conversation, it's important to to create and to state 548 00:25:38,520 --> 00:25:40,399 Speaker 1: these boundaries that are going to work for you to 549 00:25:40,480 --> 00:25:43,720 Speaker 1: help you to maintain that healthy relationship. Yeah. So, in 550 00:25:43,760 --> 00:25:47,320 Speaker 1: our opinion, really the only way to actually lend money 551 00:25:47,560 --> 00:25:50,960 Speaker 1: to friends and family is to avoid it all together. 552 00:25:51,040 --> 00:25:53,480 Speaker 1: We just, Matt and I think it just so rarely 553 00:25:53,480 --> 00:25:56,520 Speaker 1: works out that it just doesn't make sense to lend 554 00:25:56,600 --> 00:25:59,720 Speaker 1: people money and then expect payment in return. And actually, 555 00:25:59,800 --> 00:26:02,159 Speaker 1: a survey by Bankreat last year show that of all 556 00:26:02,200 --> 00:26:06,000 Speaker 1: Americans who loaned money to family or friends, nearly of 557 00:26:06,040 --> 00:26:08,919 Speaker 1: those folks ended up losing some money, and again that 558 00:26:08,920 --> 00:26:12,480 Speaker 1: can harm the relationship. So instead give them the money 559 00:26:12,520 --> 00:26:13,960 Speaker 1: if you can afford it. When it's done as a 560 00:26:14,000 --> 00:26:16,320 Speaker 1: gift and not as alone, it changes the dynamic and 561 00:26:16,320 --> 00:26:19,680 Speaker 1: there's a better chance of preserving that relationship. In this 562 00:26:19,720 --> 00:26:21,840 Speaker 1: case though, where there's like a continued ask going on, 563 00:26:21,880 --> 00:26:24,600 Speaker 1: where it happens frequently, then it is time just to 564 00:26:24,640 --> 00:26:27,520 Speaker 1: kind of redefine the boundaries, redefine the relationship, and then 565 00:26:27,560 --> 00:26:30,280 Speaker 1: have just a deeper discussion about what's going on in 566 00:26:30,320 --> 00:26:32,400 Speaker 1: your sister's life with money. And you know what, Essie, 567 00:26:32,400 --> 00:26:34,439 Speaker 1: I mean, I'm not sure where you learned to be 568 00:26:34,480 --> 00:26:36,840 Speaker 1: so good with money to have a good relationship with 569 00:26:36,880 --> 00:26:39,560 Speaker 1: your personal finances. But if it wasn't from your parents, 570 00:26:39,560 --> 00:26:41,240 Speaker 1: maybe you read a great book and then you started 571 00:26:41,240 --> 00:26:42,840 Speaker 1: to get into podcast and you just started to kind 572 00:26:42,840 --> 00:26:45,800 Speaker 1: of educate yourself personally on this. Well, maybe your sister 573 00:26:45,880 --> 00:26:47,919 Speaker 1: just hasn't stumbled upon some of those same things, and 574 00:26:47,920 --> 00:26:50,560 Speaker 1: maybe she needs a little bit of direction, wants a 575 00:26:50,560 --> 00:26:52,159 Speaker 1: little bit of help, but just doesn't know where to 576 00:26:52,200 --> 00:26:54,120 Speaker 1: get it. And I think you can be a great 577 00:26:54,160 --> 00:26:56,880 Speaker 1: influence on her by having that discussion and by not 578 00:26:57,320 --> 00:26:59,760 Speaker 1: starting it it might mean that your sister doesn't get 579 00:27:00,040 --> 00:27:01,920 Speaker 1: him of the knowledge that she actually really really needs. 580 00:27:02,240 --> 00:27:04,639 Speaker 1: And maybe you could even turn her onto a specific 581 00:27:04,680 --> 00:27:06,720 Speaker 1: money podcast that you're a fan of. Which one are 582 00:27:06,760 --> 00:27:09,160 Speaker 1: you thinking about, Matt? Well, actually, I don't know. Maybe 583 00:27:09,160 --> 00:27:11,199 Speaker 1: it would actually be worse too for her to like 584 00:27:11,200 --> 00:27:13,600 Speaker 1: subtly hint to check out this podcast and then she 585 00:27:13,680 --> 00:27:16,840 Speaker 1: here's a question about herself on the show. Why are 586 00:27:16,840 --> 00:27:18,880 Speaker 1: you talking to smack about your sister in front of 587 00:27:19,080 --> 00:27:21,440 Speaker 1: everybody out there? Huh, it's like turning on the news 588 00:27:21,440 --> 00:27:25,240 Speaker 1: and like seeing yourself. He was like, either way, as 589 00:27:25,240 --> 00:27:27,800 Speaker 1: we we appreciate the concern that you have, you know, 590 00:27:27,840 --> 00:27:30,160 Speaker 1: not only for your sister, but it's good to keep 591 00:27:30,160 --> 00:27:32,679 Speaker 1: your relationship in mind too. It's all good stuff, all right, Joe. 592 00:27:32,760 --> 00:27:34,879 Speaker 1: Let's hear our last question, and this one is about 593 00:27:34,920 --> 00:27:37,359 Speaker 1: getting your a g I down your adjusted gross income 594 00:27:37,400 --> 00:27:40,680 Speaker 1: as well as paying off some debt. Hey, Matt, hay Jel, 595 00:27:40,880 --> 00:27:44,160 Speaker 1: this is Zack from Seattle, Washington, graduating college next week 596 00:27:44,160 --> 00:27:46,880 Speaker 1: with a degree in construction management. And I very thankfully 597 00:27:46,880 --> 00:27:50,080 Speaker 1: been hired already by a large, well established construction company. 598 00:27:50,440 --> 00:27:52,679 Speaker 1: It's a pretty decent paying, full time job, and I 599 00:27:52,680 --> 00:27:54,399 Speaker 1: want to make sure I'm being as responsible as I 600 00:27:54,520 --> 00:27:56,760 Speaker 1: can with my paycheck. I did the math, and I 601 00:27:56,760 --> 00:27:59,600 Speaker 1: should make about fifty two thousand this year. That's totally 602 00:27:59,600 --> 00:28:01,960 Speaker 1: all of my earned income, plus the amount in grants 603 00:28:01,960 --> 00:28:04,320 Speaker 1: and scholarships that I received that was more than my 604 00:28:04,359 --> 00:28:07,159 Speaker 1: tuition fees and books. I'm calling because I want to 605 00:28:07,160 --> 00:28:09,600 Speaker 1: reduce my tax liability and keep my a g I 606 00:28:09,720 --> 00:28:13,880 Speaker 1: down as low near the forty threshold as I can 607 00:28:14,320 --> 00:28:17,600 Speaker 1: to reduce paying much into that income bracket. Above that, 608 00:28:18,320 --> 00:28:20,960 Speaker 1: I also have about fifteen thousand in consumer debt, though 609 00:28:21,320 --> 00:28:23,560 Speaker 1: some of which is as high as nine a p R, 610 00:28:23,920 --> 00:28:27,120 Speaker 1: plus my student loans. I think the math works out 611 00:28:27,119 --> 00:28:29,400 Speaker 1: that I should reduce my a g I as much 612 00:28:29,400 --> 00:28:33,440 Speaker 1: as I can by putting towards student loan interest. Then, 613 00:28:33,720 --> 00:28:36,360 Speaker 1: and here's where I get confused, maxing out my four 614 00:28:36,359 --> 00:28:38,680 Speaker 1: oh one K if I can, then, with what I 615 00:28:38,720 --> 00:28:41,320 Speaker 1: have left, paid down my consumer debt as much as possible. 616 00:28:41,800 --> 00:28:43,680 Speaker 1: I think I'll be earning more later in life, So 617 00:28:43,800 --> 00:28:46,920 Speaker 1: maybe a roth four oh one K over a traditional 618 00:28:46,960 --> 00:28:49,160 Speaker 1: four one K makes sense. But I don't want to 619 00:28:49,160 --> 00:28:51,920 Speaker 1: just keep carrying around this consumer debt. I wonder if 620 00:28:51,920 --> 00:28:55,040 Speaker 1: you guys have any advice about options I've overlooked or 621 00:28:55,080 --> 00:28:57,520 Speaker 1: if I've made any mistakes in any of that math. Thanks, 622 00:28:57,520 --> 00:29:00,640 Speaker 1: Matt and Joel love the show. Hey, Zach regrats on 623 00:29:00,760 --> 00:29:04,960 Speaker 1: not just graduating man, but but scoring those grants and scholarships. Matt, 624 00:29:05,160 --> 00:29:07,360 Speaker 1: I think the best way to pay for school is 625 00:29:07,400 --> 00:29:09,560 Speaker 1: with somebody else's money, and money that's already out there, 626 00:29:10,360 --> 00:29:13,320 Speaker 1: right and Uh, it's just, honestly, is typically just waiting 627 00:29:13,320 --> 00:29:16,240 Speaker 1: on people to apply. And on a quick technical note, 628 00:29:16,680 --> 00:29:19,600 Speaker 1: don't forget about tax deductions when you're doing your math. 629 00:29:19,960 --> 00:29:22,800 Speaker 1: Like with the standard deduction, Zack, you're already at the 630 00:29:22,840 --> 00:29:25,320 Speaker 1: a g I that you want because the standard deduction 631 00:29:25,360 --> 00:29:28,480 Speaker 1: for individuals is twelve thousand, four hundred dollars this year. 632 00:29:28,760 --> 00:29:31,200 Speaker 1: So if you have an income of fifty two minus 633 00:29:31,240 --> 00:29:34,120 Speaker 1: twelve thousand, four hundred for the standard deduction, you are 634 00:29:34,200 --> 00:29:36,160 Speaker 1: below the a g I of for d K that 635 00:29:36,200 --> 00:29:38,400 Speaker 1: you're shooting for. So that's just something to keep on 636 00:29:38,400 --> 00:29:41,400 Speaker 1: your radar. Looks like you're already where you want to be. Yeah, 637 00:29:41,440 --> 00:29:43,400 Speaker 1: that's a key point, Joel, Uh and Zach, you know, 638 00:29:43,440 --> 00:29:45,560 Speaker 1: it's understandable that you want to keep your a g 639 00:29:45,720 --> 00:29:48,080 Speaker 1: I down, but don't make that your soul focused. You know, 640 00:29:48,120 --> 00:29:50,800 Speaker 1: you mentioned maxing out your four own K. You didn't specify, 641 00:29:50,920 --> 00:29:53,000 Speaker 1: but if your employer has a match, you know, the 642 00:29:53,120 --> 00:29:54,600 Speaker 1: very first thing that you want to do is to 643 00:29:54,640 --> 00:29:57,720 Speaker 1: contribute up to your company match. Otherwise, paying off that 644 00:29:57,800 --> 00:30:00,600 Speaker 1: high interest rate consumer debt. That should be your priority 645 00:30:00,760 --> 00:30:04,240 Speaker 1: before maxing out any other retirement accounts. But then after that, 646 00:30:04,320 --> 00:30:06,680 Speaker 1: once you've paid off that high interest rate debts, UH, 647 00:30:06,720 --> 00:30:09,560 Speaker 1: that's when we would certainly recommend and hs A if 648 00:30:09,600 --> 00:30:11,880 Speaker 1: you qualify for one UH, and then a roth IRA 649 00:30:12,160 --> 00:30:14,440 Speaker 1: as well. Yeah. And if some of that fifteen dollars 650 00:30:14,480 --> 00:30:17,400 Speaker 1: in consumer debt is at lower interest rates, like in 651 00:30:17,440 --> 00:30:19,960 Speaker 1: the five percent range or less, I think it can 652 00:30:20,040 --> 00:30:23,800 Speaker 1: make sense to prioritize funding those accounts before paying off 653 00:30:23,920 --> 00:30:26,960 Speaker 1: the specific debts that you mentioned. When we're talking about 654 00:30:27,040 --> 00:30:29,680 Speaker 1: hyper low interest rate debt, I think saving and investing 655 00:30:29,720 --> 00:30:31,880 Speaker 1: for the future can make more sense than paying those 656 00:30:31,880 --> 00:30:35,440 Speaker 1: off right and on prioritizing student loan debt payoff. Depending 657 00:30:35,440 --> 00:30:37,160 Speaker 1: on the payoff time frame, it might make sense to 658 00:30:37,200 --> 00:30:40,640 Speaker 1: look into refinancing right now. If you currently have federal loans, 659 00:30:40,920 --> 00:30:43,480 Speaker 1: you lose some of the advantages that those offer, but 660 00:30:43,560 --> 00:30:45,840 Speaker 1: you could slash the interest rate in a big way, 661 00:30:46,080 --> 00:30:48,600 Speaker 1: helping you pay them off more quickly. This is not 662 00:30:48,800 --> 00:30:51,680 Speaker 1: for everybody. We mentioned earlier when we took Rusty's question 663 00:30:51,680 --> 00:30:55,040 Speaker 1: about student loan payoff, that people are in this forbearance 664 00:30:55,040 --> 00:30:57,680 Speaker 1: period right now. Anybody who has a federal student loan 665 00:30:57,800 --> 00:31:01,120 Speaker 1: is not having to pay on those loans until October. 666 00:31:01,440 --> 00:31:04,360 Speaker 1: But for some people who are hyper focused on getting 667 00:31:04,440 --> 00:31:06,400 Speaker 1: rid of debt and know that they can take care 668 00:31:06,440 --> 00:31:09,920 Speaker 1: of it in a short time frame, refinancing into a 669 00:31:10,000 --> 00:31:13,320 Speaker 1: much lower interest rate is possible and is something you 670 00:31:13,320 --> 00:31:16,120 Speaker 1: should strongly consider, even though it means giving up some 671 00:31:16,160 --> 00:31:18,880 Speaker 1: of the protections that you have keeping your loans under 672 00:31:19,080 --> 00:31:21,480 Speaker 1: the federal program in AGULE. That's right, and we actually 673 00:31:21,520 --> 00:31:23,200 Speaker 1: have an article up on the site that kind of 674 00:31:23,240 --> 00:31:26,520 Speaker 1: documents some of the advantages of maintaining your federal loan 675 00:31:26,520 --> 00:31:28,400 Speaker 1: and will link to that in the show notes. And 676 00:31:28,480 --> 00:31:30,520 Speaker 1: Zack in the end, you know, lawering your a g I, 677 00:31:30,840 --> 00:31:32,960 Speaker 1: your adjutic gross income that can be the results of 678 00:31:33,040 --> 00:31:35,480 Speaker 1: having student loan payments. You know, you mentioned being able 679 00:31:35,520 --> 00:31:38,720 Speaker 1: to deduct that amount of interest that's going towards those payments, 680 00:31:39,080 --> 00:31:40,840 Speaker 1: but don't get it turned around to you know, to 681 00:31:40,880 --> 00:31:42,880 Speaker 1: where the tail is wagging the dog. Right, You're your 682 00:31:42,920 --> 00:31:45,080 Speaker 1: larger goal should be to be done with your debt 683 00:31:45,400 --> 00:31:47,800 Speaker 1: and to earn more, which would effectively raise your a 684 00:31:47,880 --> 00:31:50,360 Speaker 1: g I. But of course you wouldn't want to skip 685 00:31:50,360 --> 00:31:53,239 Speaker 1: out on those things just avoid paying more income tax. Right, 686 00:31:53,400 --> 00:31:55,120 Speaker 1: You're not going to say no to a raise, and 687 00:31:55,360 --> 00:31:57,760 Speaker 1: you're not gonna, you know, not pay off your debt 688 00:31:58,000 --> 00:31:59,560 Speaker 1: just to be able to pay less in taxes. You 689 00:31:59,600 --> 00:32:01,000 Speaker 1: want to make sure that you're not cutting off your 690 00:32:01,000 --> 00:32:03,200 Speaker 1: nose despite your face, and that you've got things in 691 00:32:03,240 --> 00:32:05,840 Speaker 1: the proper perspective. Yeah, man, I like what you just 692 00:32:05,880 --> 00:32:07,920 Speaker 1: said about not letting the tail wag the dog when 693 00:32:07,920 --> 00:32:09,600 Speaker 1: it comes to a g I. I feel like a 694 00:32:09,720 --> 00:32:11,480 Speaker 1: g I is a good thing for people to keep 695 00:32:11,480 --> 00:32:14,560 Speaker 1: in mind lowering your adjusted gross income, and there are 696 00:32:14,560 --> 00:32:15,800 Speaker 1: a couple of ways you can do that. Right, the 697 00:32:15,840 --> 00:32:18,720 Speaker 1: more that you give, the more that you invest for 698 00:32:18,800 --> 00:32:21,280 Speaker 1: the future in tax advantage accounts like four O one 699 00:32:21,280 --> 00:32:24,440 Speaker 1: case in traditional iras, that is going to help lower 700 00:32:24,480 --> 00:32:27,120 Speaker 1: your AGI, which lowers the amount of taxes you're gonna pay. 701 00:32:27,320 --> 00:32:29,560 Speaker 1: And I understand the desire for that. But at the 702 00:32:29,560 --> 00:32:31,680 Speaker 1: same time, right, Zach wants to invest in a roth 703 00:32:31,760 --> 00:32:34,320 Speaker 1: Ira which doesn't lower his a g I. And you 704 00:32:34,360 --> 00:32:36,520 Speaker 1: and I we would say that's a great move because 705 00:32:36,640 --> 00:32:39,680 Speaker 1: we ultimately think that over the years, tax rates are 706 00:32:39,680 --> 00:32:41,800 Speaker 1: going to have to go up to pay for some 707 00:32:41,880 --> 00:32:44,520 Speaker 1: of the things that our country needs and is actually 708 00:32:44,560 --> 00:32:46,760 Speaker 1: currently spending a lot of money to spending money on 709 00:32:47,320 --> 00:32:49,440 Speaker 1: spending the money now in hopes to collect it later. 710 00:32:49,720 --> 00:32:51,680 Speaker 1: But yeah, it's always a balance to try to lower 711 00:32:51,760 --> 00:32:53,880 Speaker 1: your a g I and be thoughtful about the overall 712 00:32:53,880 --> 00:32:56,520 Speaker 1: amount that you're paying in taxes, while at the same 713 00:32:56,560 --> 00:32:59,040 Speaker 1: time you're making the right money moves for yourself, and 714 00:32:59,080 --> 00:33:02,720 Speaker 1: sometimes that means paying off debt prioritizing that as opposed 715 00:33:02,760 --> 00:33:05,240 Speaker 1: to making it a priority to keep that adjusted gross 716 00:33:05,240 --> 00:33:08,480 Speaker 1: income even lower for years to come. Yeah, that's right, buddy, 717 00:33:08,560 --> 00:33:10,520 Speaker 1: and so Zach. Best of luck to you on your 718 00:33:10,520 --> 00:33:13,200 Speaker 1: financial journey. Joel. That's uh. That's the last question for 719 00:33:13,240 --> 00:33:15,040 Speaker 1: this episode, which means it's time to shift gears and 720 00:33:15,080 --> 00:33:17,720 Speaker 1: get back to our beer, which was I want to 721 00:33:17,800 --> 00:33:20,920 Speaker 1: dance with somebody by Monday night brewing. What were your 722 00:33:20,960 --> 00:33:23,000 Speaker 1: thoughts on the spear, Buddy man, I love the beer, 723 00:33:23,080 --> 00:33:24,920 Speaker 1: I love the name. It does make me want to 724 00:33:25,000 --> 00:33:27,400 Speaker 1: dance but then if I dance, everyone gets freaked out 725 00:33:27,400 --> 00:33:29,840 Speaker 1: because I dance really awkwardly. But yeah, this is a 726 00:33:29,880 --> 00:33:33,200 Speaker 1: great I p a another smash hit in the line 727 00:33:33,200 --> 00:33:35,680 Speaker 1: of hoppy beers that Monday Nights putting out. And the 728 00:33:35,760 --> 00:33:38,240 Speaker 1: can art is like the emojis, uh what you would 729 00:33:38,400 --> 00:33:41,680 Speaker 1: dancing emoi emojis so good. So yeah, branding on point 730 00:33:41,680 --> 00:33:44,000 Speaker 1: beer on point two. Yeah, it's got the disco guys 731 00:33:44,040 --> 00:33:46,840 Speaker 1: as well as the lady in the red dress. Salsa? 732 00:33:46,960 --> 00:33:49,760 Speaker 1: Is that salsa? I think? So something like that. Yeah, tango, 733 00:33:49,840 --> 00:33:51,760 Speaker 1: I don't know one of the two. Well, well there no, 734 00:33:51,840 --> 00:33:54,080 Speaker 1: there's no rows in the mouth, so that's that's the tango. 735 00:33:54,160 --> 00:33:56,160 Speaker 1: That's the giveaway on tango. I This makes me think 736 00:33:56,240 --> 00:33:58,360 Speaker 1: of recently you and I were had a conversation about 737 00:33:58,400 --> 00:34:01,320 Speaker 1: how like you and I were both drinking less beer, 738 00:34:01,720 --> 00:34:04,680 Speaker 1: specifically while we're eating meals, and the reason for that 739 00:34:04,760 --> 00:34:07,320 Speaker 1: is because there's so much delicious flavor within the beers 740 00:34:07,360 --> 00:34:11,200 Speaker 1: that it almost feels like blasphemous to enjoy such a 741 00:34:11,200 --> 00:34:13,480 Speaker 1: great beer like this while you know, eating a slice 742 00:34:13,480 --> 00:34:16,799 Speaker 1: of pizza or having some tacos or something. This is 743 00:34:16,880 --> 00:34:19,160 Speaker 1: a perfect example of that kind of beer where I went, 744 00:34:19,200 --> 00:34:21,680 Speaker 1: When I drink this beer, I want to just only 745 00:34:21,719 --> 00:34:23,279 Speaker 1: drink this beer. And I guess we can talk about 746 00:34:23,320 --> 00:34:25,680 Speaker 1: money while we're doing it, but I don't want any 747 00:34:25,719 --> 00:34:27,480 Speaker 1: other flavors in my mouth because there's so much going 748 00:34:27,480 --> 00:34:29,520 Speaker 1: on with this specific beer, uh, and I want to 749 00:34:29,640 --> 00:34:31,799 Speaker 1: enjoy every aspect of it. Like you said, this is 750 00:34:31,800 --> 00:34:34,640 Speaker 1: another fantastic beer by Monday Night. This is a hot 751 00:34:34,680 --> 00:34:36,759 Speaker 1: Hut release and so these are the beers that they're 752 00:34:36,800 --> 00:34:39,840 Speaker 1: making with a little extra love since so many people 753 00:34:40,160 --> 00:34:42,440 Speaker 1: love I p A s. You and I are totally 754 00:34:42,440 --> 00:34:44,360 Speaker 1: on that train. I feel like this New England i 755 00:34:44,400 --> 00:34:46,520 Speaker 1: PA could hold its own against some of the best 756 00:34:46,760 --> 00:34:49,359 Speaker 1: true New England New England i pas, you know, like well, 757 00:34:49,400 --> 00:34:51,280 Speaker 1: like we've had a lot of great beers from the Northeast, 758 00:34:51,520 --> 00:34:53,480 Speaker 1: and I feel like this one is just a perfect 759 00:34:53,520 --> 00:34:55,839 Speaker 1: example of that style. I'm glad that you and I 760 00:34:55,840 --> 00:34:58,080 Speaker 1: got to share this one man, And again, we would 761 00:34:58,080 --> 00:35:00,000 Speaker 1: recommend for folks to check out Monday Night if they're 762 00:35:00,120 --> 00:35:02,759 Speaker 1: ever in the Atlanta area for sure, and if you do, 763 00:35:03,000 --> 00:35:05,960 Speaker 1: you'll probably find us there because we like to less 764 00:35:06,040 --> 00:35:08,840 Speaker 1: lately because we're not really spending much time in breweries, 765 00:35:08,880 --> 00:35:10,319 Speaker 1: but we still go there to to pick up their 766 00:35:10,360 --> 00:35:12,640 Speaker 1: special releases. You might see us wandering and wandering out, 767 00:35:12,719 --> 00:35:15,280 Speaker 1: but all right, Matt, that's gonna do it for this episode. Again, 768 00:35:15,320 --> 00:35:17,520 Speaker 1: for anybody who wants to submit a question, we would 769 00:35:17,520 --> 00:35:19,560 Speaker 1: love to hear from you. We love these episodes and 770 00:35:19,560 --> 00:35:22,239 Speaker 1: we would love to have your question on an upcoming one. 771 00:35:22,440 --> 00:35:24,880 Speaker 1: Just go to how to Money dot com slash ask 772 00:35:25,080 --> 00:35:27,839 Speaker 1: in order to submit yours, and also go to how 773 00:35:27,880 --> 00:35:29,440 Speaker 1: to Money dot com for the show notes for this 774 00:35:29,520 --> 00:35:32,000 Speaker 1: episode and Jel, we also talked about the can art 775 00:35:32,080 --> 00:35:34,759 Speaker 1: for this beer, right and every beer that we enjoy 776 00:35:34,840 --> 00:35:36,680 Speaker 1: on this podcast, we send up a quick little picture 777 00:35:36,800 --> 00:35:39,319 Speaker 1: and we post it on Instagram. And so if you 778 00:35:39,440 --> 00:35:41,200 Speaker 1: do not follow us on Instagram and want to see 779 00:35:41,200 --> 00:35:43,319 Speaker 1: what some of these beers look like, as well as 780 00:35:43,480 --> 00:35:45,120 Speaker 1: some other behind the scenes kind of pictures that we 781 00:35:45,160 --> 00:35:47,440 Speaker 1: post from time to time, give us a follow on Instagram. 782 00:35:47,480 --> 00:35:50,480 Speaker 1: Our handle is how to Money Pod. Joel. That's gonna 783 00:35:50,480 --> 00:35:53,120 Speaker 1: be it for this episode, Buddy. Until next time, Best 784 00:35:53,120 --> 00:36:00,160 Speaker 1: friends out, Best Friends Out. M