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Speaker 1: Welcome to Had of Money. I'm Joel, I'm Matt, and

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Speaker 1: today we're discussing popular money advice that just ain't right, Joel.

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Speaker 2: Even the crappiest financial advice that's out there, it still

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Speaker 2: has a little negative truth, right, Like, oftentimes, the reason

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Speaker 2: I think it resonates with folks is because they're like, oh, no, no, no,

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Speaker 2: that's true. I've heard that before. I've heard my parents

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Speaker 2: talk about that, I've heard friends talk about that. But

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Speaker 2: that doesn't necessarily mean that it's like this super bulletproof

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Speaker 2: piece of financial advice that you should be following to

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Speaker 2: the letter with every dollar that you made.

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Speaker 1: Yeah, some of the pieces of advice we're going to

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Speaker 1: cover in this episode are things that you've heard people

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Speaker 1: say and they are smart people, and so you automatically

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Speaker 1: assume that based on their other advice, or based on

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Speaker 1: the back that you've heard this from sources of information,

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Speaker 1: that it's good and it's.

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Speaker 2: Reliable advice that your grandparents gave you. And you're like,

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Speaker 2: they would never steer me wrong. It's like, well it's

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Speaker 2: not quite right.

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Speaker 1: Yeah, we want you to question everything your grandparents taught

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Speaker 1: you in this episode. Now that's okay, that's too far,

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Speaker 1: not really. But there are a lot of things, yeah,

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Speaker 1: that we're going to cover today, and some of it has,

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Speaker 1: like you said, Matt, a ring of truth, but we're

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Speaker 1: going to say, Okay, here's the nugget that is actually true,

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Speaker 1: but here's where you should throw out the rest of it.

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Speaker 1: And so yeah, we've got a lot to get to

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Speaker 1: on this episode. But before we get to that, Matt,

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Speaker 1: I wanted to mention that you and I we've talked

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Speaker 1: about on the show, how we have meta share covering

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Speaker 1: our families. When it comes to our health insurance, it's actual.

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Speaker 2: Insurance, not technically health insurance. It's a health sharing plan exactly,

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Speaker 2: but it is a lot cheaper than insurance. And I

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Speaker 2: was even talking to a neighbor the other day and

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Speaker 2: he was saying what he gets through his work, that

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Speaker 2: his premiums every month are really expensive, Like even though

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Speaker 2: his employer subsidizes a decent chunk of those premiums, like

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Speaker 2: it's there's still a lot on the plate for him

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Speaker 2: to have to pay every single month. And so for us,

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Speaker 2: it seems it's the cheapest, most effective way for us

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Speaker 2: to cover our families. And we've got a review on it.

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Speaker 2: If you want to read it, we'll link to it

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Speaker 2: in the show notes that Matt wrote about how it's

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Speaker 2: worked for his family. But I found on one of

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Speaker 2: my new favorite features of metashare is that they have

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Speaker 2: partnered with basically this tele dot company called md Live

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Speaker 2: and you can virtually visit a doctor on the computer

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Speaker 2: or via phone for free, which is just another massive

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Speaker 2: win for us. Is included in the price. There is

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Speaker 2: no yeah, baseline fee, there's no copay that comes with that.

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Speaker 2: It is included, so like a week and a half

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Speaker 2: what we've seen before, but like I've never we've never

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Speaker 2: taken advantage of it. So we used it for the

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Speaker 2: first time a couple of weeks ago, Like all of

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Speaker 2: our kids were sick. I think everybody that we knew

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Speaker 2: had sick kids. Like it was going around.

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Speaker 1: It's like flu, it's COVID, it's colds, everything hitting simultaneously.

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Speaker 1: Everyone I know who had a kid like had to

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Speaker 1: pulled out of school for a couple of days. And

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Speaker 1: so we were like, Okay, we're gonna try to go

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Speaker 1: see the pediatrician. They were full up, man, they didn't

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Speaker 1: have room to take us because everybody was sick, and

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Speaker 1: so We're like, Okay, we're gonna give this Teledoc MD live.

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Speaker 1: We're gonna give it a shot. And it was great,

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Speaker 1: Like it was so simple. We waited forty five minutes

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Speaker 1: and you don't even like you're not like sitting in

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Speaker 1: a waiting room though, you're literally at home kicking it.

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Speaker 1: And then you get a text and it's like the

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Speaker 1: doctor will see you now, so you hop into the

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Speaker 1: to the chat, to the to, you click the link.

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Speaker 2: Waiting forty five minutes at home while you're cooking dinner

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Speaker 2: or cleaning the dishes or something like that. It's much

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Speaker 2: much better than sitting in a waiting room full of

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Speaker 2: other sick kids, yeah, sneezing on you and being all nasty.

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Speaker 1: Right, and then there's no sick visit that we had

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Speaker 1: to pay. There's it's literally free to get the diagnostics in. Yeah,

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Speaker 1: so I will say I'm super happy with it.

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Speaker 2: Sounds like Joel's pretty bullish on teledoc teledox stocks.

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Speaker 1: I know, well, you know teledox stock in particular has

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Speaker 1: not been doing well as a plate. But yeah, it's

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Speaker 1: it's just one of those things that adds a lot

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Speaker 1: of value to our ministure membership.

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Speaker 2: Nice. Looking forward to checking that out. That's not something

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Speaker 2: that we've taken advantage of yet, but I could totally

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Speaker 2: see where that would come in handy. In particular, if

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Speaker 2: you know that you just need we probably need this prescription.

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Speaker 2: You know this prescribed. We just need some meds. My

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Speaker 2: kids are particularly susceptible to SHREP for some reason. It's

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Speaker 2: a favorite. So yeah, we had to answer a couple

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Speaker 2: questions at the doc, and typically they like to do

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Speaker 2: a swab.

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Speaker 1: But he even prescribed an antibiotic you know in that

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Speaker 1: in that chat, which is cool. Did he did they

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Speaker 1: make make your daughter? Make her open up her mouth?

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Speaker 1: We took a picture. Oh yeah, yeah, we took a picture.

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Speaker 1: We sent it in even before the appointment, So because.

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Speaker 2: If you're on a video call, he could just be like,

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Speaker 2: all right, make sure the video light's on and just

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Speaker 2: just jam it in there real close. You hear him talking,

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Speaker 2: it's like echoing in her her mouth. Water. Uh, that's cool,

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Speaker 2: that's cool though. I'm glad you were able to take

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Speaker 2: advantage of that. Hopefully we won't need to take advantae

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Speaker 2: of that soon, but I'm glad to know that it exists.

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Speaker 2: Let's introduce the beer you and I. We are enjoying

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Speaker 2: another Talisman beer and this one is called Uplifted. It

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Speaker 2: is a Scottish style. Ale Hady, thank you so much

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Speaker 2: for donating this. This is our last of the Talisman beers.

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Speaker 2: They're out of Utah, but looking forward to enjoying this one,

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Speaker 2: and we will share our thoughts at the end of

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Speaker 2: the episode.

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Speaker 1: No doubt, all right, but let's get onto it, Matt.

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Speaker 1: The subject of hands is do it popular money advice

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Speaker 1: that just ain't right. And it made me think of

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Speaker 1: maybe some other pieces of advice that we just assume

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Speaker 1: are correct because you've heard it so much, so many times.

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Speaker 1: And I personally like to get out there and grill

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Speaker 1: on occasion. And you've heard everybody say it that searing

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Speaker 1: your meat is the best way to lock in the flavor, right,

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Speaker 1: you want to get that grill, piping hot.

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Speaker 2: Lock in the moisture, slap that.

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Speaker 1: Steak down or whatever it is, and that is going

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Speaker 1: to yeah, lock in the moisture. It's something I've heard

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Speaker 1: folks say for years. And then you get to right

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Speaker 1: after they click their tongs and they're like, all right,

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Speaker 1: it's ready, that's right, and then it's like, oh, you're

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Speaker 1: going to get to get to eat that juicy, medium

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Speaker 1: rare steak that you have always dreamed of, But you

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Speaker 1: got to get the seer right. But as it turns out,

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Speaker 1: that's actually the farthest thing from the truth. Culinary scientists

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Speaker 1: tell us that although this sounds like good advice, it's

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Speaker 1: not actually the best method if you want to get

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Speaker 1: the proper outcome. And it's true that searing your steak

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Speaker 1: is going to brown it, which does increase some caramelization.

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Speaker 1: Oh yeah, flavor and texture. So that is seared at

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Speaker 1: some point.

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Speaker 2: Yeah, it's good for other reasons, but not necessarily what

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Speaker 2: you're saying from a moisture standpoint, Yeah, like that's the

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Speaker 2: Millard reaction whatever, where basically you're reducing some of those

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Speaker 2: sugars and that's what creates that delicious smell. Like when

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Speaker 2: you smell delicious food, it's because of the browning. It's

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Speaker 2: because of the searing that often is taking place. But

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Speaker 2: that doesn't necessarily have anything to do with like you're saying,

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Speaker 2: the moisture of the meat that you're ceiling in like

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Speaker 2: a I picture like a raincoat or you know, or

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Speaker 2: like somebody who's like trying to make weight for like

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Speaker 2: wrestling or something like that, and they're like wearing trash bags.

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Speaker 2: Huh huh uh. They're just like locking in all that

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Speaker 2: make all that nasty moisture and they're just wating like crazy.

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Speaker 2: That seer does not act like a rain jacket for

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Speaker 2: your steak.

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Speaker 1: No, no, it doesn't. And the truth is starting to

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Speaker 1: cook your steak slower and then doing a reverse sere

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Speaker 1: to add that flavor in the end is the best method.

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Speaker 2: And getting really fancy, aren't you.

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Speaker 1: So even let's say you put that steak in a suv,

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Speaker 1: you cook it until it reaches a certain temperature, and

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Speaker 1: then you slap it on the grill for like a

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Speaker 1: minute a half on each side or something like that.

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Speaker 1: Typically a lot of folks say that's the way you're

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Speaker 1: going to get the best tasting steak in the end.

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Speaker 1: But it's just not what you normally hear as typical

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Speaker 1: grilling advice from most folks. And just like that BS

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Speaker 1: grilling advice, right, that just isn't right. We're going to

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Speaker 1: spend some time talking smack about personal finance advice today

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Speaker 1: on the show that we just dislike or maybe that

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Speaker 1: has taken on this element of gospel truth, but we

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Speaker 1: would say, in reality, there's a lot of mistruth in

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Speaker 1: that statement, and so we're going to kind of like

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Speaker 1: break them down and talk about them today's show.

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Speaker 2: Yeah, Like, there's just a lot of crappy things out

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Speaker 2: there being said, and oftentimes I think the problem is

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Speaker 2: that we like we hear something and because it intuitively makes,

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Speaker 2: you know, some sort of sense, like we just stick

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Speaker 2: with it, just like you were talking about with the

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Speaker 2: searing meat, or maybe it's just packaged in such a

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Speaker 2: way that it makes it easy to remember, right Because

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Speaker 2: like we're all living, busy live, so anytime we're able

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Speaker 2: to hear something that allows us to simplify and make

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Speaker 2: life a little bit easier, we're going to cling to

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Speaker 2: that basic rule of thumb. I think it's one of

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Speaker 2: the ways that we're that we're able to be super productive, right, Like,

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Speaker 2: most folks are looking for shortcuts, but it doesn't always

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Speaker 2: mean that those shortcuts are accurate in that day and

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Speaker 2: that they're the best method of action for you and

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Speaker 2: your money. And the fact is there have always been

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Speaker 2: folks out there who are just spouting bad information, right Like,

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Speaker 2: I think most folks are well intentioned, but you're likely

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Speaker 2: going to encounter some bad advice as you are working

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Speaker 2: to get your personal finances in order. Yeah, as you're

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Speaker 2: trying to make that progress. And so we're going to

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Speaker 2: call out some of the biggest culprits today on the show,

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Speaker 2: and we're going to share how it is that you

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Speaker 2: should be thinking about your money.

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Speaker 1: Yeah, And I like how you said most people are

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Speaker 1: well intentioned. I think there's a couple of things. One,

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Speaker 1: people are out there are trying to simplify advice for

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Speaker 1: the masses, trying to give them good information in a

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Speaker 1: bite sized way, but oftentimes then you're missing a lot

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Speaker 1: of kind of the important truth that surrounds it. But also,

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Speaker 1: there are a lot of people who just don't know

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Speaker 1: enough about personal finance, and so they might be newbie

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Speaker 1: influencers on social media hoping to talk about their experience

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Speaker 1: and how they've been able to change their lives, but

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Speaker 1: oftentimes they're missing some of the most important ingredients to

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Speaker 1: be able to help people do it in their own lives.

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Speaker 2: Right, Yeah. Yeah, they might have a good story, just

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Speaker 2: good heart, yeah exactly, and kind of where they are personally,

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Speaker 2: maybe there's some wisdom that you can clean from their experiences,

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Speaker 2: but they may not be fully informed.

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Speaker 1: Yeah, and you may not be able to directly apply

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Speaker 1: it to your own situation because their situation could be

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Speaker 1: quite a bit different. Actly, And so yeah, we would

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Speaker 1: say some of the basic advice still holds. Like we're

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Speaker 1: not trying to throw out the baby with the bathwater

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Speaker 1: in this episode. Some of the most basic advice out there,

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Speaker 1: for instance, like the number one rule of personal finance,

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Speaker 1: which is spending lesson you make That holds water, right,

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Speaker 1: that makes sense to us. But even in something like that,

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Speaker 1: even in such a basic piece of advice that's like

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Speaker 1: the number one rule of personal finance, that can even

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Speaker 1: get warps into folks, leading you to think that you

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Speaker 1: shouldn't spend money, a push towards maximum frugality, which we

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Speaker 1: would say can become unhealthy. Plus, even that little basic

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Speaker 1: piece advice, which is helpful, it just doesn't tell you

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Speaker 1: how much less you should be spending, like how you

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Speaker 1: should be changing your habits and you know, should that

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Speaker 1: be a constant amount over the decades. Well, that pithy

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Speaker 1: a little bit of advice doesn't really tell you. So

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Speaker 1: we would say even the most basic advice that has

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Speaker 1: truth to it needs some context needs some fleshing out,

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Speaker 1: in particular depending on your personal situation, and naturally that

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Speaker 1: context that fleshing out requires time and attention, which is

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Speaker 1: unfortunately in short supply. Right, So, most folks in our

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Speaker 1: modern age, they're content with these five second sound bites

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Speaker 1: and they're just not willing to read past the headlines.

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Speaker 1: But that additional time is what it often takes in

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Speaker 1: order to understand the nuance of any conversation or debate.

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Speaker 1: And it's it's it's true everywhere, but it's definitely true

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Speaker 1: of these personal finance conversations as.

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Speaker 2: Right, yeah, all right, yeah, So let's talk about some

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Speaker 2: of the some of the crappy advice in the realm

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Speaker 2: of spending first, and one of the popular lines of

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Speaker 2: advice is skip the latte, skip the avocado toast. This is,

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Speaker 2: I mean, honestly, it's barn on one of the pieces

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Speaker 2: of advice I hate the most. And it's not that

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Speaker 2: spending too much money at your local coffee shop like that,

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Speaker 2: it's not possible. It definitely is. And it's not that

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Speaker 2: the small expenses that you make that they don't add

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Speaker 2: up to a meaningful amount of money, because they do.

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Speaker 2: And you know, you might be wasting money without even

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Speaker 2: thinking enough about it. Now, this happens to a lot

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Speaker 2: of folks. It's just I don't understand why coffee shops

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Speaker 2: specifically bear the brunt.

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Speaker 1: Of this right coffee shop owner. There's so many other

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Speaker 1: places you could.

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Speaker 2: Attack exactly, so many other places where where folks were

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Speaker 2: wasting money, like a ridiculous car payment for a fancy

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Speaker 2: car that you don't really need when you could have

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Speaker 2: just paid cash for something more affordable, or like having

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Speaker 2: your meals delivered. Or speaking of food, think about the

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Speaker 2: countless containers of leftovers that you've tossed or jol the

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Speaker 2: accountless that's your favorite thing to attacked by the people

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Speaker 2: that don't eat their leftovers. What is wrong with you? You

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Speaker 2: don't like those people. It's a terrible habit. It's just

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Speaker 2: an inefficient way of going about making your meals at home.

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Speaker 2: And yet we're kind of digressing herealking about the latte factor.

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Speaker 2: But folks, and in particular media, I think it's just

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Speaker 2: picked one of the loveliest spots that's often the like

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Speaker 2: a cornerstone of community hangs. It just seems like the

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Speaker 2: coffee shop has kind of gotten a bad rap maybe

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Speaker 2: this is on my mind, Joel, because this morning you

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Speaker 2: and I w went and got a coffee before our

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Speaker 2: morning meeting.

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Speaker 1: We had a new neighbor who was awesome, We saw

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Speaker 1: old neighbors who we love, and.

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Speaker 2: It's something that I don't know, maybe we're biased a

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Speaker 2: little bit because it's something that we are realizing it.

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Speaker 2: It's important in our sort of It's not like something

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Speaker 2: we do every day, but when we do partake in

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Speaker 2: it typically, Yeah, it provides a lot of meeting and

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Speaker 2: value to us.

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Speaker 1: That's four dollar flat white provides a lot more than

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Speaker 1: just like a delicious cup of coffee exactly. And that's,

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Speaker 1: by the way, my beverage of choice. Typically if I'm

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Speaker 1: going out to a coffee shop, flat.

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Speaker 2: Whites, Grotado all the way. So Tortata's are great too,

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Speaker 2: slightly less milk, Yeah, thats true.

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Speaker 1: Well so yeah, so we would say that that is

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Speaker 1: one of those things where that is up to the individual.

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Speaker 2: And I think you're right, Matt.

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Speaker 1: There are other places, in particular, larger line items in

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Speaker 1: our budget that are much easier to cut back, especially

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Speaker 1: if the coffee shop is a place where you do

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Speaker 1: derive a lot of joy in community from or you

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Speaker 1: enjoy even you know, when you're working from home, going

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Speaker 1: to work there, and it really, when you think about it,

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Speaker 1: in the grand scheme of things, it's a minimal cost.

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Speaker 1: For some reason, we've singled out coffee shops. It's wrong,

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Speaker 1: it needs to stop. But speaking of those just a right,

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Speaker 1: that's right, those bigger ticket items, though, you have bigger

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Speaker 1: fish to fry. So when you spend an inordinate amount

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Speaker 1: of your time thinking about these tiny little ways that

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Speaker 1: you could potentially eke out a few more bucks, I'm

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Speaker 1: not saying I don't think either of us would say, Matt,

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Speaker 1: that that's time poorly spent, but we would say you

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Speaker 1: might be hogging valuable mental bandwidth that could be spent

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Speaker 1: on those bigger ticket items where you could be getting

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Speaker 1: a bigger ROI by looking elsewhere. And so instead of

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Speaker 1: constantly worrying about spending money on coffee, get a more

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Speaker 1: affordable car insurance provider boom that just paid for your

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Speaker 1: coffee for the entire year. I love doing those bigger things,

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Speaker 1: a one time task that allows you then to use

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Speaker 1: your money in a way that's more effectively going to

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Speaker 1: move the needle value wise in your life. And this

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Speaker 1: is of course a fine balanced strike because you and

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Speaker 1: I we're all about frugal living. Like, we don't want

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Speaker 1: people necessarily going out there and get that flat white

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Speaker 1: every day. That's not what we're that's not what we're saying.

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Speaker 1: But if you're counting pennies of every single purchase, not

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Speaker 1: only are you like sucking the fund the joy out

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Speaker 1: of some of those simple pleasures of life, but it's

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Speaker 1: it could also just be a highly inefficient use of

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Speaker 1: your time. You're majoring on the miners, and we would

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Speaker 1: say that there's a whole lot more financial ground you

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Speaker 1: can cover focusing more on those big ticket items.

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Speaker 2: That's right. I gotta keep you in check in case

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Speaker 2: I start hearing Joel saying, all right, this kind of

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Speaker 2: feels like a two flat white kind of day.

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Speaker 1: Oh man, I don't think I've ever done two coffees

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Speaker 1: in one day a week. Maybe we could justify that

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Speaker 1: on occasion.

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Speaker 2: All right, Well, not only should you be thinking about

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Speaker 2: like some of these big ways to save money, but

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Speaker 2: also the big ways that you can make more money

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Speaker 2: as well, right, Because I think you can easily adopt

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Speaker 2: that same like latte factor mindset and then just apply

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Speaker 2: it to how it is that you make money, and

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Speaker 2: so it's like, specifically, what I'm thinking of here is like,

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Speaker 2: we see a lot of folks who are spending a

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Speaker 2: tremendous amount of time their side hustle use, in particular

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Speaker 2: using different apps like swag Bucks, Uber, Instacart, or feel.

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Speaker 2: They come to mind, and again we're you know, we're

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Speaker 2: all about folks using the spare time that they've got

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Speaker 2: to get after whatever financial goal that they've set for themselves.

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Speaker 2: But this is an instance, man like where it would

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Speaker 2: be really helpful to pause for a moment and imagine

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Speaker 2: where this side hustle is going to take you. But

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Speaker 2: the allure to immediately make some instant cash is attractive,

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Speaker 2: not to mention, you know, like all the apps, they

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Speaker 2: are designed to keep folks coming back, to keep you

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Speaker 2: coming back for more due to how it is that

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Speaker 2: they're designed, how they're they've essentially gamified the tasks or

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Speaker 2: the jobs that literally pop up from within the app.

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Speaker 2: They don't want you to slow down and think about

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Speaker 2: the big picture. They just want you to keep working.

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Speaker 2: So don't lose sight of the forest for the trees. Simultaneously,

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Speaker 2: don't let the desire to hustle and to make a

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Speaker 2: small amount of money today keep you from making a

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Speaker 2: large amount of money tomorrow. This is when, like I

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Speaker 2: even hate using this phrase, but oftentimes folks who kind

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Speaker 2: of fall into this pattern fall into like the scarcity mindset.

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Speaker 2: And I don't like saying that because it makes it

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Speaker 2: seem like that you can just manifest stuff and think

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Speaker 2: it and bring it into existence. You can't just do that.

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Speaker 2: It takes a lot of hard work. But sometimes we

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Speaker 2: do get locked into that scarcity mindset as opposed to

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Speaker 2: thinking about like an abundance mindset. Right, Like if you

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Speaker 2: are so focused in particular going back to the spending

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Speaker 2: on just watching every single little penny and instead what

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Speaker 2: if you took that same amount of energy and poured

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Speaker 2: it into ways that you can not only make money

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Speaker 2: via some of these different apps that feel immediate, but like,

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Speaker 2: let's talk about some of the bigger pictures, some of

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Speaker 2: the larger, big thinking kind of ways that will allow

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Speaker 2: you to advance your career and make some serious positive

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Speaker 2: impacts on your income.

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Speaker 1: Yeah, it almost makes me think of when you go

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Speaker 1: to a casino and how you have no idea what

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Speaker 1: time of day it is and they're probably in oxygen,

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Speaker 1: and so your blinders around. You don't know how long

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Speaker 1: you've been there, you don't know how much money you've lost,

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Speaker 1: like because you're getting free drinks and so it's but

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Speaker 1: you got a free buffet, and so maybe that makes

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Speaker 1: up for all the time.

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Speaker 2: And that's how this tells me that I should not

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Speaker 2: go to Vegas because I hear that and I have

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Speaker 2: fallen into similar traps at other points in my life. Yes,

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Speaker 2: in particular, I'm thinking about playing video games in college.

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Speaker 1: I was just like, wait, what day is It's like

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Speaker 1: everything is conspiring against you to get you to lose

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Speaker 1: your money. And I think with some of these side hustles,

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Speaker 1: it's not that they can't be effective in the short term.

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Speaker 1: We've talked about kind of the nefarious elements that side

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Speaker 1: hustles come with, and so people have to be really

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Speaker 1: careful before they dedicate too much time to making money

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Speaker 1: on the side. There are often more effective ways to

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Speaker 1: grow your to grow your income over the long term.

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Speaker 1: That doesn't mean to you know, the great thing about

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Speaker 1: side hustles is you can like literally hit a button

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Speaker 1: and start making money today, and that's a great short

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Speaker 1: term tactic. Yeah, but it's not going to be best

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Speaker 1: when it comes to long term earnings, which is which

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Speaker 1: we where we want your eyes a little more focused on.

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Speaker 2: That's right, Joel. And we've got several other pieces of

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Speaker 2: popular financial advice that we're going to get to that's

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Speaker 2: just not right, including we're going to talk a little

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Speaker 2: bit more about earning money as well as popular advice

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Speaker 2: to avoid when it comes to how it is that

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Speaker 2: we save and invest our money.

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Speaker 3: We'll get to all of that right after this a

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Speaker 3: hard Matt, let's keep going.

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Speaker 1: Let's talk about personal finance advice, and you and I

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Speaker 1: we're just not fans of and these are kind of

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Speaker 1: things that people start to get accustomed to. I think

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Speaker 1: we've gotten a lot more accustomed to side hustles like

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Speaker 1: we just talked about before the break in recent years,

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Speaker 1: and as in that being a way to maybe make

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Speaker 1: ends meet or to grow your income when there are

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Speaker 1: better ways over the long term to grow your income.

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Speaker 1: But there's the flip side of that coin, so let's

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Speaker 1: talk about that too. There's the reality that some people

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Speaker 1: they have a relationship to their job where it's more

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Speaker 1: like golden handcuffs, and so that's something we want people

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Speaker 1: to change their thinking about as well, because on the

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Speaker 1: other end of the spectrum, right, there are some people

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Speaker 1: who have a great job that pays incredibly well, and

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Speaker 1: in fact, it might pay a little a little too handsomely,

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Speaker 1: and you feel stuck, right, even if you don't really

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Speaker 1: like your job, even if you actually kind of hate

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Speaker 1: it and you don't want to go to work anymore,

431
00:18:55,720 --> 00:18:57,120
Speaker 1: you don't like your coworkers, you don't.

432
00:18:56,960 --> 00:18:58,359
Speaker 2: Like what you're doing, you're working too much.

433
00:18:58,440 --> 00:19:01,200
Speaker 1: We know folks who have made these confessions to us. Yes,

434
00:19:01,600 --> 00:19:04,360
Speaker 1: they're like, my job sucks, but I'm making so much money.

435
00:19:04,160 --> 00:19:06,960
Speaker 2: I can bank how I leave Exactly, I can't.

436
00:19:07,119 --> 00:19:08,960
Speaker 1: And so it's this case of golden handcuffs where the

437
00:19:08,960 --> 00:19:12,160
Speaker 1: salary the benefits have gotten so robust that you don't

438
00:19:12,160 --> 00:19:15,040
Speaker 1: even let yourself consider an alternative. And of course, Matt,

439
00:19:15,119 --> 00:19:17,000
Speaker 1: neither you or I when people are making this admission,

440
00:19:17,080 --> 00:19:19,720
Speaker 1: have told us, you know what, my life doesn't really matter.

441
00:19:20,080 --> 00:19:22,359
Speaker 1: But kind of in some ways what they're saying, right.

442
00:19:22,400 --> 00:19:25,119
Speaker 2: That's what they're saying through their actions, not necessarily because

443
00:19:25,119 --> 00:19:27,439
Speaker 2: it's something that they've flat out stated that, like, I

444
00:19:27,480 --> 00:19:29,879
Speaker 2: no longer care about how I spend my hours.

445
00:19:30,119 --> 00:19:32,800
Speaker 1: Yes, but they are in essence saying that they're saying

446
00:19:32,840 --> 00:19:35,320
Speaker 1: it's all about the benjamins. The dollars matter more than

447
00:19:35,320 --> 00:19:38,440
Speaker 1: how my time is spent, than me actually finding joy,

448
00:19:38,480 --> 00:19:40,359
Speaker 1: taking pride in what I do every day. I'm just

449
00:19:40,440 --> 00:19:42,240
Speaker 1: going to grind it out another five or ten years,

450
00:19:42,240 --> 00:19:43,639
Speaker 1: Like that's the kind of the mentality that a lot

451
00:19:43,680 --> 00:19:45,960
Speaker 1: of people have. I keep reaping the rewards of this

452
00:19:46,040 --> 00:19:49,720
Speaker 1: awesome paycheck. But this, of course is terrible financial advice

453
00:19:49,720 --> 00:19:52,480
Speaker 1: that ultimately leads to terrible life advice. It you know,

454
00:19:52,520 --> 00:19:55,840
Speaker 1: we don't know how long we are guaranteed, and every

455
00:19:55,880 --> 00:19:59,399
Speaker 1: single year that you spend at a job that you

456
00:19:59,480 --> 00:20:01,720
Speaker 1: just can't stop, that you hate, those are years you're

457
00:20:01,720 --> 00:20:03,120
Speaker 1: not going to be able to get back.

458
00:20:03,200 --> 00:20:06,840
Speaker 2: That's right, Yeah, I mean, so much of life satisfaction, specifically,

459
00:20:06,840 --> 00:20:09,760
Speaker 2: it comes from the work you do and the ability

460
00:20:09,760 --> 00:20:12,840
Speaker 2: that you have to help other people. Victor Frankel, We've

461
00:20:12,880 --> 00:20:14,840
Speaker 2: mentioned him plenty of times here on the show. He's

462
00:20:14,840 --> 00:20:18,719
Speaker 2: an Austrian psychiatrist. He wrote one of the most profound books,

463
00:20:19,240 --> 00:20:22,439
Speaker 2: Man's Search for Meeting after surviving the Holocaust. But he

464
00:20:22,480 --> 00:20:26,320
Speaker 2: found that personal relationships, specifically, they are the most important

465
00:20:26,320 --> 00:20:29,680
Speaker 2: component of finding happiness. And then right after that it

466
00:20:29,720 --> 00:20:32,400
Speaker 2: was engaging in productive work. That is the next thing

467
00:20:32,400 --> 00:20:34,040
Speaker 2: that brings us meaning. So you want to know what

468
00:20:34,040 --> 00:20:37,280
Speaker 2: he doesn't discuss making a ton of money. And so

469
00:20:37,359 --> 00:20:39,399
Speaker 2: with that in mind, like, what better way to spend

470
00:20:39,840 --> 00:20:42,960
Speaker 2: half our of our waking hours than by engaging in

471
00:20:43,240 --> 00:20:46,560
Speaker 2: rewarding and productive work that connects us to our fellow man,

472
00:20:46,600 --> 00:20:49,399
Speaker 2: to our fellow human beings. And this is one of

473
00:20:49,440 --> 00:20:51,159
Speaker 2: those bits of advice that I say that I know

474
00:20:51,440 --> 00:20:53,959
Speaker 2: right like, we all have a head knowledge of it,

475
00:20:54,480 --> 00:20:57,760
Speaker 2: but do we grasp it as heart knowledge? You know,

476
00:20:57,800 --> 00:21:00,520
Speaker 2: this is a good one to revisit because we're tempted to,

477
00:21:00,680 --> 00:21:04,320
Speaker 2: you know, simply understand this concept without actually living it out.

478
00:21:04,359 --> 00:21:07,400
Speaker 2: I think we're constantly tempted to live in a way

479
00:21:07,440 --> 00:21:10,160
Speaker 2: that is at odds with this because that's what success

480
00:21:10,200 --> 00:21:12,040
Speaker 2: looks like, that's what the world tells us to do.

481
00:21:12,080 --> 00:21:14,040
Speaker 2: That's even you know, what our parents tell us to do.

482
00:21:14,040 --> 00:21:15,520
Speaker 2: They're like, oh, but that's going to put you on

483
00:21:15,560 --> 00:21:19,280
Speaker 2: this trajectory. By all sort of outward measures of success,

484
00:21:19,680 --> 00:21:22,359
Speaker 2: You're likely going to decide that what you should do is,

485
00:21:22,760 --> 00:21:24,720
Speaker 2: like you said, like continuing to grind it out and

486
00:21:24,760 --> 00:21:27,240
Speaker 2: not just for like ten years, but like twenty thirty years.

487
00:21:27,320 --> 00:21:29,719
Speaker 2: Sometimes doing work that you don't love as opposed to

488
00:21:29,800 --> 00:21:32,960
Speaker 2: thinking about how it is you're actually spending that time.

489
00:21:33,240 --> 00:21:34,760
Speaker 2: That's really important. Man.

490
00:21:34,760 --> 00:21:36,399
Speaker 1: I feel like we are the money show that is

491
00:21:36,440 --> 00:21:38,360
Speaker 1: constantly telling people to think less.

492
00:21:38,160 --> 00:21:40,480
Speaker 2: About money, to not focus on the money. That's totally true.

493
00:21:40,560 --> 00:21:42,440
Speaker 1: Yeah, And so we try to cover the nuts and

494
00:21:42,480 --> 00:21:45,560
Speaker 1: bolts and we want to help people get better with

495
00:21:45,600 --> 00:21:49,520
Speaker 1: your money, invest more wisely, and save a bigger chunk

496
00:21:49,720 --> 00:21:51,440
Speaker 1: of what they bring home. But we also want people

497
00:21:51,440 --> 00:21:53,159
Speaker 1: to think about money as a tool and to not

498
00:21:53,240 --> 00:21:56,040
Speaker 1: think about money as the ends. It is a means,

499
00:21:56,119 --> 00:21:57,560
Speaker 1: you know, two better ends for your life.

500
00:21:57,560 --> 00:21:59,080
Speaker 2: It's the tool that we focus on the most here

501
00:21:59,080 --> 00:22:00,800
Speaker 2: on the show. But ultimately, like what we're all about

502
00:22:00,880 --> 00:22:04,000
Speaker 2: is just folks living a life that they feel it

503
00:22:04,080 --> 00:22:06,680
Speaker 2: leads to happiness essentially, just a fulfilling life for sure.

504
00:22:06,720 --> 00:22:08,680
Speaker 1: And the reality is if money is the end goal,

505
00:22:08,960 --> 00:22:10,640
Speaker 1: you're going to miss out on some of the things

506
00:22:10,640 --> 00:22:13,040
Speaker 1: that matter the most. Like that is a byproduct of

507
00:22:13,080 --> 00:22:15,399
Speaker 1: too much focus on money, is missing out on a

508
00:22:15,480 --> 00:22:18,199
Speaker 1: lot of things that matter. Let's talk about some more

509
00:22:18,320 --> 00:22:21,040
Speaker 1: something else in the vein of career and earnings oriented

510
00:22:21,080 --> 00:22:23,639
Speaker 1: advice that people here on the rag Matt and that

511
00:22:23,760 --> 00:22:26,600
Speaker 1: is just that college is a no brainer, right, And

512
00:22:26,960 --> 00:22:30,879
Speaker 1: so not many of our listeners are college age, you know,

513
00:22:30,880 --> 00:22:33,800
Speaker 1: a small handful, but some of our listeners are getting

514
00:22:33,800 --> 00:22:36,560
Speaker 1: to the point where they've got kids who are considering

515
00:22:36,560 --> 00:22:39,640
Speaker 1: going to college. They've got those those teenagers now at home.

516
00:22:39,680 --> 00:22:42,000
Speaker 1: And so every time we talk about this, I feel

517
00:22:42,000 --> 00:22:45,879
Speaker 1: like we get unhappy listener emails because they say, listen,

518
00:22:46,080 --> 00:22:49,000
Speaker 1: why are you talking crap about college? And we especially

519
00:22:49,000 --> 00:22:50,960
Speaker 1: got them after episode five forty eight where we kind

520
00:22:51,000 --> 00:22:53,399
Speaker 1: of debunked the fact that college makes sense for.

521
00:22:53,400 --> 00:22:55,439
Speaker 2: That was is college for dummies? Right?

522
00:22:57,240 --> 00:23:00,119
Speaker 1: Yeah, we definitely like, not everyone is happy that we

523
00:23:00,119 --> 00:23:02,159
Speaker 1: don't think that college is a slam dug decision, But

524
00:23:02,800 --> 00:23:05,240
Speaker 1: we just don't think that the vast majority of high

525
00:23:05,240 --> 00:23:08,639
Speaker 1: school seniors should be mortgaging their futures by taking on

526
00:23:08,800 --> 00:23:12,200
Speaker 1: astronomical amounts of debt, which which is in many cases

527
00:23:12,640 --> 00:23:15,199
Speaker 1: leading to I don't know the most expensive piece of

528
00:23:15,200 --> 00:23:17,560
Speaker 1: wal art till ever, hang right that a college degree

529
00:23:17,560 --> 00:23:20,400
Speaker 1: that goes behind their desk that some couple hundred.

530
00:23:20,200 --> 00:23:22,440
Speaker 2: K do you even know where your college degree, like

531
00:23:22,480 --> 00:23:24,400
Speaker 2: your actual diploma is no, I have no idea.

532
00:23:24,480 --> 00:23:27,080
Speaker 1: And I remember I would have had to walk to

533
00:23:27,119 --> 00:23:29,120
Speaker 1: get my diploma, but my mom was out of town.

534
00:23:28,920 --> 00:23:30,359
Speaker 2: So I didn't even have to walk. No, I didn't

535
00:23:30,359 --> 00:23:32,120
Speaker 2: even walk. I didn't do it. So I just didn't.

536
00:23:32,160 --> 00:23:34,119
Speaker 1: I didn't care, just showed up in a tube a

537
00:23:34,160 --> 00:23:37,040
Speaker 1: few weeks later. That's exactly right. Well, so I guess

538
00:23:37,040 --> 00:23:39,440
Speaker 1: you know. You could ask the question does college pay

539
00:23:39,440 --> 00:23:41,640
Speaker 1: off for lots of folks still? And we would say yes,

540
00:23:41,760 --> 00:23:43,840
Speaker 1: of course, like it does for a lot of people.

541
00:23:44,359 --> 00:23:46,639
Speaker 1: And the more you can curb the costs that you

542
00:23:46,680 --> 00:23:48,679
Speaker 1: incur and the time it takes to get that degree.

543
00:23:48,840 --> 00:23:50,480
Speaker 1: What I mean is not taking six or seven years

544
00:23:50,520 --> 00:23:53,439
Speaker 1: to get it, plus making sure that the one you

545
00:23:53,480 --> 00:23:56,679
Speaker 1: get is more highly valued in the marketplace, then the

546
00:23:56,760 --> 00:23:58,359
Speaker 1: more likely it is to be a smart choice. Like,

547
00:23:58,520 --> 00:24:01,080
Speaker 1: for instance, that advanced history degree. It's going to pay

548
00:24:01,080 --> 00:24:03,439
Speaker 1: off for a much smaller section of people, and a

549
00:24:03,440 --> 00:24:05,119
Speaker 1: lot of folks who get that degree are going to

550
00:24:05,200 --> 00:24:08,080
Speaker 1: find that the money was poorly spent, even if it

551
00:24:08,160 --> 00:24:11,879
Speaker 1: was edifying. But the thing is, college truly was a

552
00:24:11,920 --> 00:24:14,640
Speaker 1: no brainer thirty to forty years ago, but it's it's

553
00:24:14,720 --> 00:24:17,320
Speaker 1: much more of a specific value proposition that young adults

554
00:24:17,680 --> 00:24:21,760
Speaker 1: have to consider beforehand these days, before they start applying

555
00:24:21,760 --> 00:24:25,560
Speaker 1: to schools. The reality of debt that can linger for decades,

556
00:24:25,720 --> 00:24:29,639
Speaker 1: especially if that degree isn't landing you the lucrative career

557
00:24:29,680 --> 00:24:31,760
Speaker 1: that you hoped is just too much of a downside

558
00:24:31,760 --> 00:24:33,840
Speaker 1: to give some sort of blanket advice that college makes

559
00:24:33,840 --> 00:24:34,600
Speaker 1: sense for most people.

560
00:24:34,680 --> 00:24:37,320
Speaker 2: Yeah, and on a related note too, just how you

561
00:24:37,359 --> 00:24:39,720
Speaker 2: pay for that college makes me think of five twenty

562
00:24:39,800 --> 00:24:43,640
Speaker 2: nine accounts, and I oftentimes that's also accepted as kind

563
00:24:43,640 --> 00:24:46,280
Speaker 2: of like a slam dunk, you know, no brainer sort

564
00:24:46,280 --> 00:24:48,520
Speaker 2: of decision. It's like, well, if you care about your kids,

565
00:24:48,560 --> 00:24:50,439
Speaker 2: of course you're going to save and invest money within

566
00:24:50,480 --> 00:24:52,360
Speaker 2: a five twenty nine account, But so much of it

567
00:24:52,400 --> 00:24:56,680
Speaker 2: depends on your personal situation. Because yes, that can be

568
00:24:56,720 --> 00:24:58,480
Speaker 2: a great tool to allow you to save for you're

569
00:24:58,480 --> 00:25:00,480
Speaker 2: a kid's college, but if you're doing it to the

570
00:25:00,520 --> 00:25:03,480
Speaker 2: detriment of your ability to save for retirement, well then

571
00:25:03,480 --> 00:25:05,240
Speaker 2: we would say that your priorities are a little out

572
00:25:05,280 --> 00:25:05,639
Speaker 2: of whack.

573
00:25:05,720 --> 00:25:07,560
Speaker 1: If you're not in money year six or seven, like

574
00:25:08,240 --> 00:25:10,240
Speaker 1: plans probably shouldn't be on your radar exactly. That's what

575
00:25:10,280 --> 00:25:12,639
Speaker 1: we say, Like you need to have your finances button up,

576
00:25:12,640 --> 00:25:14,919
Speaker 1: your personal finances button up. You need to be saving

577
00:25:14,920 --> 00:25:18,159
Speaker 1: for retirement in a big, a major way before you

578
00:25:18,200 --> 00:25:19,600
Speaker 1: start investing for your kids usuer.

579
00:25:19,640 --> 00:25:21,800
Speaker 2: And again it comes down to your personal situation, like

580
00:25:21,840 --> 00:25:24,560
Speaker 2: maybe you're not quite there, but this is a vital

581
00:25:24,600 --> 00:25:26,920
Speaker 2: importance to you, and you've got all the reasons why

582
00:25:27,040 --> 00:25:29,680
Speaker 2: then you know what, Like there are pieces of device

583
00:25:29,720 --> 00:25:31,000
Speaker 2: and things that we're gonna say here in the show

584
00:25:31,040 --> 00:25:33,240
Speaker 2: that may not apply to one hundred percent of the

585
00:25:33,240 --> 00:25:35,640
Speaker 2: folks out there, but this is something that we think

586
00:25:35,680 --> 00:25:37,919
Speaker 2: folks need to be thinking about more often than not.

587
00:25:38,560 --> 00:25:43,120
Speaker 2: And similarly, let's talk about debt, Joel, because oftentimes folks

588
00:25:43,160 --> 00:25:46,080
Speaker 2: will hear that they should be living life debt free.

589
00:25:46,359 --> 00:25:48,800
Speaker 2: And again, this is one of those uber simple pieces

590
00:25:48,840 --> 00:25:51,520
Speaker 2: of advice that sounds good on its face, but if

591
00:25:51,560 --> 00:25:56,480
Speaker 2: you take this dogmatic pronouncement to its logical conclusion, you're

592
00:25:56,520 --> 00:25:59,840
Speaker 2: going to have a much harder time reaching your educational,

593
00:26:00,040 --> 00:26:03,239
Speaker 2: your financial goals. And we know that it's hard to

594
00:26:03,560 --> 00:26:07,000
Speaker 2: convey a reasonable debt philosophy just in a two to

595
00:26:07,080 --> 00:26:09,600
Speaker 2: five second SoundBite here, which is why we don't try

596
00:26:09,600 --> 00:26:12,880
Speaker 2: to right like we create entire episodes on important topics

597
00:26:13,119 --> 00:26:17,000
Speaker 2: like debt accumulation and debt payoff to try and convey

598
00:26:17,160 --> 00:26:19,679
Speaker 2: just a nuanced approach towards debt that we think is

599
00:26:19,720 --> 00:26:24,000
Speaker 2: healthy in our modern society. The truth is, is actually

600
00:26:24,000 --> 00:26:27,320
Speaker 2: possible to use debt in a strategic way to catapult

601
00:26:27,320 --> 00:26:29,520
Speaker 2: your finances forward. That's a recent episode that we'll link

602
00:26:29,560 --> 00:26:31,600
Speaker 2: to in our show notes. But not all forms of

603
00:26:31,640 --> 00:26:34,199
Speaker 2: debt we're created to screw you over, and it's important

604
00:26:34,200 --> 00:26:36,120
Speaker 2: to keep that in mind. But on the other hand,

605
00:26:36,200 --> 00:26:39,680
Speaker 2: it's also possible to rely on debt too much, right,

606
00:26:39,920 --> 00:26:43,800
Speaker 2: particularly consumer debt, in order to fund a lifestyle that

607
00:26:43,840 --> 00:26:45,920
Speaker 2: you can actually afford, buying the things that you don't

608
00:26:46,000 --> 00:26:49,040
Speaker 2: need and which should be completely avoided.

609
00:26:49,280 --> 00:26:51,560
Speaker 1: Yeah, there's a massive difference between a payday loan and

610
00:26:51,600 --> 00:26:53,719
Speaker 1: a fifteen year mortgage, right, I mean, and I think

611
00:26:53,760 --> 00:26:57,119
Speaker 1: that's where the live life debt free sort of philosophy,

612
00:26:57,240 --> 00:27:00,040
Speaker 1: the mantra gets lost, and so people automatally assume that

613
00:27:00,119 --> 00:27:03,560
Speaker 1: every single potential form of debt is now just something

614
00:27:03,720 --> 00:27:06,320
Speaker 1: they shouldn't even consider, they shouldn't bring into their lives,

615
00:27:06,640 --> 00:27:10,320
Speaker 1: When the truth is, what we're revolting here against your

616
00:27:10,359 --> 00:27:13,480
Speaker 1: matt is a lack of nuance, Right, it's that pithy

617
00:27:13,520 --> 00:27:15,760
Speaker 1: phrase that starts to lead people down the road of

618
00:27:15,800 --> 00:27:19,359
Speaker 1: thinking that only one way of handling debt makes sense,

619
00:27:19,400 --> 00:27:22,160
Speaker 1: and that is to never ever use it. And it's

620
00:27:22,200 --> 00:27:24,840
Speaker 1: a convenient way to convey a message, but it's not

621
00:27:24,880 --> 00:27:26,560
Speaker 1: always the most helpful to the folks who are trying

622
00:27:26,600 --> 00:27:29,199
Speaker 1: to make progress with their personal finances. For instance, like,

623
00:27:29,240 --> 00:27:31,040
Speaker 1: let's say you do have that fifteen year mortgage at

624
00:27:31,040 --> 00:27:33,119
Speaker 1: two and a half percent. At a two and a

625
00:27:33,160 --> 00:27:35,840
Speaker 1: half percent rate, Well, it almost feels like a safe

626
00:27:35,880 --> 00:27:39,160
Speaker 1: haven right now that we're experiencing a period of intense inflation.

627
00:27:39,359 --> 00:27:41,400
Speaker 1: Let's say you used all your savings to pay off

628
00:27:41,400 --> 00:27:43,840
Speaker 1: that mortgage, which in and of itself would be like

629
00:27:43,920 --> 00:27:46,679
Speaker 1: mean you probably had too much money in savings. Well,

630
00:27:46,720 --> 00:27:49,600
Speaker 1: you might find yourself in an uncomfortable position if let's

631
00:27:49,600 --> 00:27:51,840
Speaker 1: say you lost your job next week. Yeah, sure, you

632
00:27:51,840 --> 00:27:53,480
Speaker 1: don't have the mortgage payment, but you also don't have

633
00:27:53,560 --> 00:27:55,280
Speaker 1: any cash in the bank to back you up to

634
00:27:55,640 --> 00:27:58,879
Speaker 1: allow you to afford your other monthly bills if the

635
00:27:58,880 --> 00:28:02,119
Speaker 1: worst case scenario happened. So how dumb is that to

636
00:28:02,160 --> 00:28:04,600
Speaker 1: and a half percent mortgage rate? Debt in actuality, we

637
00:28:04,640 --> 00:28:07,400
Speaker 1: would say it's not very dumb, it's really not that bad,

638
00:28:07,680 --> 00:28:10,560
Speaker 1: and you probably shouldn't pay it off, even at the

639
00:28:10,560 --> 00:28:14,159
Speaker 1: expense of prioritizing something like tax advantage retirement savings. So

640
00:28:14,560 --> 00:28:18,080
Speaker 1: while the answer it's not always easy, it often requires context.

641
00:28:18,240 --> 00:28:20,880
Speaker 1: The question is always an important one to ask, and

642
00:28:20,920 --> 00:28:23,080
Speaker 1: then so much of the answer comes down to the

643
00:28:23,200 --> 00:28:25,359
Speaker 1: terms of that debt and what you plan to do

644
00:28:25,400 --> 00:28:28,320
Speaker 1: with the money you borrow. If you're exactly sinking that

645
00:28:28,400 --> 00:28:32,760
Speaker 1: money that you're borrowing into speculative assets, let's say cryptocurrency

646
00:28:32,840 --> 00:28:35,240
Speaker 1: or all sorts of new fangled digital coins that you

647
00:28:35,280 --> 00:28:38,000
Speaker 1: could potentially lose it all overnight, still owing debt on

648
00:28:38,040 --> 00:28:40,440
Speaker 1: top of it, that's really risky. That's a terrible way

649
00:28:40,480 --> 00:28:42,680
Speaker 1: to use debt. But we would say there are smart

650
00:28:42,680 --> 00:28:44,760
Speaker 1: ways to use debt to be able to actually accelerate

651
00:28:44,760 --> 00:28:46,800
Speaker 1: your progress. Just like you said, Matt, and I think

652
00:28:47,680 --> 00:28:50,920
Speaker 1: thinking that avoiding debt completely for the rest of your

653
00:28:50,960 --> 00:28:53,560
Speaker 1: life is the best way forward. Not thinking about the

654
00:28:53,560 --> 00:28:55,680
Speaker 1: ways that you can use it intelligently as like a

655
00:28:55,680 --> 00:28:58,080
Speaker 1: stepping stone to kind of continue down the path is

656
00:28:58,120 --> 00:29:01,080
Speaker 1: short sighted and is you all likely mean you're making

657
00:29:01,200 --> 00:29:05,080
Speaker 1: less progress potentially in your career or in your personal

658
00:29:05,160 --> 00:29:08,160
Speaker 1: finances and your wealth building journey than you'd otherwise like

659
00:29:08,200 --> 00:29:08,480
Speaker 1: to see.

660
00:29:08,600 --> 00:29:11,800
Speaker 2: Totally don't use credit cards, Joel. That's another piece of

661
00:29:11,840 --> 00:29:14,440
Speaker 2: advice that you'll often hear. I think the same guy

662
00:29:14,440 --> 00:29:16,800
Speaker 2: who likes to say that debt is dumb and to

663
00:29:16,920 --> 00:29:19,520
Speaker 2: live that debt free lifestyle also likes to talk smack

664
00:29:19,640 --> 00:29:23,240
Speaker 2: about the credit cards. But the truth is, when used effectively,

665
00:29:23,640 --> 00:29:26,240
Speaker 2: we love credit cards. When you use them effectively, you

666
00:29:26,280 --> 00:29:29,560
Speaker 2: know they're not just alright. They're the best form of

667
00:29:29,840 --> 00:29:33,680
Speaker 2: payment where they offer you greater consumer protections, plus superior

668
00:29:33,960 --> 00:29:37,160
Speaker 2: rewards and benefits and other meaningful perks. And it's worth

669
00:29:37,160 --> 00:29:39,760
Speaker 2: pointing out here debit cards and credit cards they definitely

670
00:29:39,760 --> 00:29:42,680
Speaker 2: look the same, but they are not created equal. Maybe

671
00:29:42,680 --> 00:29:46,000
Speaker 2: we should do an entire episode talking about the differences

672
00:29:46,000 --> 00:29:50,320
Speaker 2: between debit and credit cards. But we are fans of

673
00:29:50,400 --> 00:29:53,320
Speaker 2: using them responsibly, and if you have a reasonable level

674
00:29:53,360 --> 00:29:55,560
Speaker 2: of discipline, then you're gonna be able to use your

675
00:29:55,560 --> 00:29:58,360
Speaker 2: cards effectively and they're going to be a great tool

676
00:29:58,400 --> 00:30:01,600
Speaker 2: for you. That's why we're fans of using them. But again,

677
00:30:01,640 --> 00:30:03,080
Speaker 2: we just have to make sure that we couch it

678
00:30:03,120 --> 00:30:05,800
Speaker 2: within the proper language. We don't want anybody and everybody

679
00:30:05,840 --> 00:30:08,840
Speaker 2: out there to go looking for the best cash back

680
00:30:08,880 --> 00:30:11,040
Speaker 2: sign up bonuses that you can find. But if that

681
00:30:11,200 --> 00:30:13,840
Speaker 2: is you, if you are in a healthy position, if

682
00:30:13,840 --> 00:30:16,680
Speaker 2: you do have that reasonable amount of discipline, then head

683
00:30:16,680 --> 00:30:18,600
Speaker 2: over to our site, go to howdomoney dot com forward

684
00:30:18,600 --> 00:30:22,200
Speaker 2: slash credit cards because that tool will help you to

685
00:30:22,480 --> 00:30:25,040
Speaker 2: find the best credit card for you and based on

686
00:30:25,080 --> 00:30:28,480
Speaker 2: the different benefits and the perks that you are looking for.

687
00:30:28,560 --> 00:30:30,600
Speaker 1: Yeah, and it doesn't get talked about much. Most people

688
00:30:30,640 --> 00:30:33,080
Speaker 1: don't know that there are different consumer protections when you

689
00:30:33,160 --> 00:30:35,320
Speaker 1: use a credit card at purchase then when you use

690
00:30:35,360 --> 00:30:38,040
Speaker 1: a debit card. So it's not just the two percent

691
00:30:38,120 --> 00:30:40,840
Speaker 1: cash back or the Ma's Blue cash preferred six percent

692
00:30:40,880 --> 00:30:42,960
Speaker 1: back at the grocery store, like those are awesome perks,

693
00:30:42,960 --> 00:30:45,120
Speaker 1: but we're also talking about just more robust fraud protection

694
00:30:45,120 --> 00:30:47,320
Speaker 1: when you're using a credit card. We're talking about sometimes

695
00:30:47,520 --> 00:30:50,800
Speaker 1: an extended warranty that a credit card offers. In addition,

696
00:30:50,840 --> 00:30:52,760
Speaker 1: that means you don't have to buy the crappy extended

697
00:30:52,760 --> 00:30:56,680
Speaker 1: warranty that the electronics company or the big box warehouse

698
00:30:56,720 --> 00:30:58,680
Speaker 1: is trying to get you to buy. The abredit card

699
00:30:58,680 --> 00:30:59,240
Speaker 1: offers that for you.

700
00:30:59,320 --> 00:31:03,120
Speaker 2: Yeah, the ability to drop the CDW, the collision damage

701
00:31:03,160 --> 00:31:05,400
Speaker 2: waiver when you're renting a car because you've got a

702
00:31:05,440 --> 00:31:10,520
Speaker 2: car that offers primary car insurance by declining that CDW.

703
00:31:10,000 --> 00:31:11,440
Speaker 1: Or as we talked about in a recent as kont

704
00:31:11,440 --> 00:31:13,120
Speaker 1: of money up. But so many different benefits. Yeah, the

705
00:31:13,720 --> 00:31:15,720
Speaker 1: ability to not have to carry a bunch of cash

706
00:31:15,800 --> 00:31:18,200
Speaker 1: on your person when you're traveling overseas and to get

707
00:31:18,200 --> 00:31:19,800
Speaker 1: the best exchange rate and to not pay a fee

708
00:31:19,840 --> 00:31:19,960
Speaker 1: or do.

709
00:31:19,960 --> 00:31:22,040
Speaker 2: It as you get that zero percent transaction fee. Yeah,

710
00:31:22,080 --> 00:31:23,800
Speaker 2: so really foreign transaction fee.

711
00:31:23,560 --> 00:31:26,160
Speaker 1: When you dig into the details. I mean credit cards

712
00:31:26,320 --> 00:31:28,440
Speaker 1: a lot. There are people out there who think that

713
00:31:28,480 --> 00:31:31,120
Speaker 1: they can't be used effectively. Those people would be wrong.

714
00:31:31,240 --> 00:31:33,080
Speaker 1: It is possible to use a credit card effectively. And

715
00:31:33,080 --> 00:31:35,600
Speaker 1: it's not just about two percent cash back right to

716
00:31:35,640 --> 00:31:38,320
Speaker 1: slightly juice your returns. There's a lot more to it

717
00:31:38,360 --> 00:31:40,680
Speaker 1: than that. But we've got Matt some more pieces of

718
00:31:40,720 --> 00:31:43,320
Speaker 1: financial advice that we think are pretty crummy. They just

719
00:31:43,320 --> 00:31:46,880
Speaker 1: ain't right. We'll get to those, including some about investing.

720
00:31:46,920 --> 00:31:49,240
Speaker 1: I think that are really important, especially right now with

721
00:31:49,280 --> 00:31:52,880
Speaker 1: what's happening in the market. How there's more bad investing

722
00:31:52,920 --> 00:31:55,360
Speaker 1: advice going around now than even there typically is. So

723
00:31:55,400 --> 00:31:57,160
Speaker 1: we'll get to that and more right after this.

724
00:32:06,560 --> 00:32:09,320
Speaker 2: All right, so we just spent some time talking about

725
00:32:09,760 --> 00:32:13,240
Speaker 2: spending money. Now let's get serious and let's discuss saving

726
00:32:13,240 --> 00:32:15,880
Speaker 2: and investing your money. And a piece of advice that

727
00:32:15,920 --> 00:32:19,640
Speaker 2: you often hear Joel is save ten percent of your income.

728
00:32:20,280 --> 00:32:23,120
Speaker 2: This is advice I even heard as a little wei

729
00:32:23,160 --> 00:32:25,920
Speaker 2: one growing up, and you might be asking, like, why

730
00:32:26,040 --> 00:32:28,480
Speaker 2: is this crappy advice? This sounds smart, and it kind

731
00:32:28,520 --> 00:32:32,120
Speaker 2: of is. It's certainly better than what the average American

732
00:32:32,160 --> 00:32:35,560
Speaker 2: is saving, which is it's somewhere in the three percent range. Yeah,

733
00:32:35,600 --> 00:32:38,120
Speaker 2: And so if you're in that position, if you aren't

734
00:32:38,360 --> 00:32:40,880
Speaker 2: currently even saving a tenth of your income, then yes,

735
00:32:40,920 --> 00:32:43,160
Speaker 2: this is a good goal to strive for. But we

736
00:32:43,240 --> 00:32:45,320
Speaker 2: don't want how the money listeners out there to be

737
00:32:45,360 --> 00:32:47,800
Speaker 2: the average American. We don't want you to stay there.

738
00:32:47,800 --> 00:32:49,840
Speaker 2: We don't want that ten percent basically to be a

739
00:32:49,880 --> 00:32:53,840
Speaker 2: ceiling for you because sometimes mainstream financial advice that actually

740
00:32:53,880 --> 00:32:56,320
Speaker 2: I think they set the bar too low. And if

741
00:32:56,320 --> 00:33:01,040
Speaker 2: you stick with this incredibly basic framework of saving even

742
00:33:01,080 --> 00:33:03,360
Speaker 2: as your your income increases over the years, you're gonna

743
00:33:03,360 --> 00:33:06,480
Speaker 2: find it hard to make progress towards those bigger financial goals.

744
00:33:06,560 --> 00:33:09,000
Speaker 2: If you get complacent just you know, saving ten percent

745
00:33:09,000 --> 00:33:10,520
Speaker 2: of your income, it's going to be tough to save

746
00:33:10,600 --> 00:33:13,640
Speaker 2: up to pay cash for a car or amassing a

747
00:33:13,760 --> 00:33:17,120
Speaker 2: big old down payment for a home purchase while simultaneously

748
00:33:17,160 --> 00:33:19,920
Speaker 2: socking away enough for retirement. And not only is it

749
00:33:19,960 --> 00:33:23,320
Speaker 2: about the ability to achieve some of these financial goals

750
00:33:23,360 --> 00:33:27,120
Speaker 2: that you've identified today, but we're also talking about being

751
00:33:27,160 --> 00:33:29,880
Speaker 2: able to achieve financial goals tomorrow, right, Like, these are

752
00:33:29,920 --> 00:33:32,240
Speaker 2: all things that today, that today Matt wants to do,

753
00:33:32,280 --> 00:33:34,080
Speaker 2: but what about tomorrow, Matt. I don't know what tomorrow

754
00:33:34,080 --> 00:33:36,760
Speaker 2: Matt wants. And so the ability to save a little

755
00:33:36,760 --> 00:33:38,400
Speaker 2: bit more than that stand or ten percent gives me

756
00:33:38,440 --> 00:33:42,400
Speaker 2: that additional flexibility, gives me options to pursue some of

757
00:33:42,400 --> 00:33:44,480
Speaker 2: those goals in a way that feels like I'm making

758
00:33:44,560 --> 00:33:47,000
Speaker 2: progress as opposed to just completely resetting the clock.

759
00:33:47,000 --> 00:33:48,520
Speaker 1: I'm pretty sure tomorrow Matt is going to want a

760
00:33:48,560 --> 00:33:50,280
Speaker 1: quartato at the local cofee shop, but he's gonna have

761
00:33:50,280 --> 00:33:52,040
Speaker 1: to wait till next week. Okay, next week Matt is

762
00:33:52,040 --> 00:33:53,440
Speaker 1: going to get that. Just one a week, one a week,

763
00:33:53,480 --> 00:33:56,000
Speaker 1: that's always al right, And yeah, I think that. I

764
00:33:56,000 --> 00:33:57,400
Speaker 1: think you're right, Matt. I think that is kind of

765
00:33:57,640 --> 00:34:00,000
Speaker 1: this basic tenet of personal finance advice, and many people

766
00:34:00,040 --> 00:34:02,200
Speaker 1: strive for and then you get to ten percent and

767
00:34:02,520 --> 00:34:04,959
Speaker 1: you rest on your laurels, and because of that, it

768
00:34:05,000 --> 00:34:07,360
Speaker 1: takes a really long time to make meaningful progress. And

769
00:34:07,400 --> 00:34:09,839
Speaker 1: we think people should be seeking to save a lot

770
00:34:09,840 --> 00:34:11,600
Speaker 1: more of their money, and other cultures do this.

771
00:34:11,640 --> 00:34:12,600
Speaker 2: Well, what is it in Japan?

772
00:34:13,000 --> 00:34:15,680
Speaker 1: The average person saves something like in the thirty percent

773
00:34:15,800 --> 00:34:16,560
Speaker 1: range of their salary.

774
00:34:16,600 --> 00:34:17,799
Speaker 2: Think it's so much higher.

775
00:34:17,840 --> 00:34:21,799
Speaker 1: We are abysmal at saving and yeah, how to money listeners.

776
00:34:21,719 --> 00:34:22,560
Speaker 2: Can do better than that.

777
00:34:23,040 --> 00:34:26,400
Speaker 1: We know that well, and we're too soft, that's right.

778
00:34:26,480 --> 00:34:28,600
Speaker 1: We're trying to harden you up. And let's talk about

779
00:34:28,600 --> 00:34:31,840
Speaker 1: some crappy investing advice for a second, because really we

780
00:34:31,840 --> 00:34:34,000
Speaker 1: could do a whole episode about crappy investing advice.

781
00:34:34,120 --> 00:34:36,120
Speaker 2: There's a lot of that out there that's true.

782
00:34:36,400 --> 00:34:39,160
Speaker 1: But one of them we would say is buy low

783
00:34:39,239 --> 00:34:41,360
Speaker 1: and sell high. And I feel like you hear in

784
00:34:41,400 --> 00:34:43,359
Speaker 1: a down market, you hear more people talking about that,

785
00:34:43,640 --> 00:34:47,080
Speaker 1: buying the dip, that kind of stuff. And again, Matt,

786
00:34:47,160 --> 00:34:49,240
Speaker 1: kind of like what you said with the ten percent things,

787
00:34:49,280 --> 00:34:51,719
Speaker 1: like this is kind of sort of good advice, like

788
00:34:51,760 --> 00:34:54,520
Speaker 1: there's a nugget of wisdom here, but there's also the

789
00:34:54,560 --> 00:34:57,520
Speaker 1: fact that this piece of advice could completely mess you up,

790
00:34:57,560 --> 00:35:00,719
Speaker 1: and it's just not possible really to buy low and

791
00:35:00,760 --> 00:35:03,560
Speaker 1: sell high, is what we would say. Stats show year

792
00:35:03,600 --> 00:35:08,400
Speaker 1: after year that even professional fund managers consistently underperform the

793
00:35:08,440 --> 00:35:11,399
Speaker 1: simple strategy of buying straight up index funds. And these

794
00:35:11,440 --> 00:35:13,880
Speaker 1: are people that are highly compensated, right that this is

795
00:35:13,920 --> 00:35:17,440
Speaker 1: their job to attempt to outperform the market to get

796
00:35:17,760 --> 00:35:21,160
Speaker 1: outside returns. But the reality is that trying to buy

797
00:35:21,160 --> 00:35:24,799
Speaker 1: the dip means you're waiting on stock prices to go down,

798
00:35:25,160 --> 00:35:29,080
Speaker 1: and the truth is stocks are mostly on an up

799
00:35:29,080 --> 00:35:32,520
Speaker 1: into the right trajectory, right, that is the overwhelming direction

800
00:35:32,640 --> 00:35:35,480
Speaker 1: that they're heading. And that means if you're holding onto

801
00:35:35,480 --> 00:35:37,719
Speaker 1: money that you want to invest in hopes of a

802
00:35:37,760 --> 00:35:41,399
Speaker 1: market downturn to score a better deal, you're more likely

803
00:35:41,440 --> 00:35:43,319
Speaker 1: to miss out on gains than you are to get

804
00:35:43,320 --> 00:35:45,279
Speaker 1: that deal that you're hoping for. And so that's why

805
00:35:45,320 --> 00:35:49,560
Speaker 1: we prefer we advocate the dollar cost averaging approach, mostly

806
00:35:49,680 --> 00:35:53,200
Speaker 1: ignoring current market conditions because your cash sitting on the

807
00:35:53,239 --> 00:35:56,840
Speaker 1: sidelines while you're trying to buy, the dip is experiencing

808
00:35:56,840 --> 00:35:59,400
Speaker 1: opportunity costs and it's just being smacked around by inflation

809
00:35:59,640 --> 00:36:02,600
Speaker 1: and today. So we would say just keep buying. Don't

810
00:36:02,600 --> 00:36:04,960
Speaker 1: worry about timing the market. The key is to get

811
00:36:05,000 --> 00:36:07,880
Speaker 1: your money in the market with regularity. So if you

812
00:36:07,960 --> 00:36:11,120
Speaker 1: hear buy low and sell high, it's advice. It sounds good,

813
00:36:11,200 --> 00:36:13,239
Speaker 1: but pulling it off, it's like, hey, yeah, I just

814
00:36:13,239 --> 00:36:14,520
Speaker 1: go out there and hit four home runs in a

815
00:36:14,560 --> 00:36:16,560
Speaker 1: game and it'll be all be all good. I've never

816
00:36:16,640 --> 00:36:17,800
Speaker 1: tried to hit a home run map, but I know

817
00:36:17,840 --> 00:36:19,840
Speaker 1: it's really difficult and that even the best guys like

818
00:36:19,960 --> 00:36:22,839
Speaker 1: hit you know, sixty a year, right, and that's really

819
00:36:22,880 --> 00:36:25,120
Speaker 1: hard to come by. So hitting four home runs in

820
00:36:25,160 --> 00:36:26,879
Speaker 1: a game, that's it's great advice if you can actually

821
00:36:26,920 --> 00:36:27,080
Speaker 1: do it.

822
00:36:27,080 --> 00:36:29,640
Speaker 2: Sounds impossible. Yes, technically that is correct. You do that

823
00:36:29,719 --> 00:36:32,360
Speaker 2: and you'll be the MVP. You're gonna make millions or billions.

824
00:36:32,440 --> 00:36:36,040
Speaker 2: The same thing with buy low sell high. In theory.

825
00:36:36,120 --> 00:36:40,000
Speaker 2: On paper, it's great advice, but actually executing it virtually impossible.

826
00:36:40,400 --> 00:36:43,279
Speaker 2: Joel something else like, I feel like this isn't necessarily

827
00:36:43,480 --> 00:36:45,600
Speaker 2: like advice that you hear, but just kind of maybe

828
00:36:45,600 --> 00:36:48,960
Speaker 2: more sentiment when it comes to investors, which is the

829
00:36:49,040 --> 00:36:51,640
Speaker 2: fact that they're afraid that the market is going to collapse.

830
00:36:51,920 --> 00:36:55,520
Speaker 2: There's a number of fairly bright individuals out there who

831
00:36:55,560 --> 00:36:58,799
Speaker 2: continue to predict that this stock market like that is

832
00:36:58,880 --> 00:37:01,960
Speaker 2: just this house of cards and that were all bound

833
00:37:01,960 --> 00:37:05,600
Speaker 2: to get wiped out in this historic catastrophe. Like it

834
00:37:05,680 --> 00:37:08,520
Speaker 2: kind of makes me think of like the fundamental Christians

835
00:37:08,560 --> 00:37:10,239
Speaker 2: who predicted the end of the world, like back in

836
00:37:10,280 --> 00:37:10,919
Speaker 2: the eighties. Thure.

837
00:37:10,920 --> 00:37:12,759
Speaker 1: It's kind of how Lindsey and he wrote like three

838
00:37:12,800 --> 00:37:14,640
Speaker 1: books about it, and he was just wrong every time.

839
00:37:14,480 --> 00:37:16,880
Speaker 2: He predicted that. And when their conviction ends up being

840
00:37:16,920 --> 00:37:19,160
Speaker 2: dead wrong, like they instead they often just double down.

841
00:37:19,200 --> 00:37:20,560
Speaker 1: Oh wait, I was just wrong on that date, and

842
00:37:20,600 --> 00:37:24,440
Speaker 1: now I've gotten pushed that out seven new insights, and

843
00:37:24,520 --> 00:37:27,440
Speaker 1: so they predict an even more catastrophic event on the horizon.

844
00:37:27,800 --> 00:37:29,640
Speaker 2: And so when it comes to the different financial advice

845
00:37:29,680 --> 00:37:32,520
Speaker 2: out there, like best selling author of Rich Dad, Poor Dad,

846
00:37:32,840 --> 00:37:35,839
Speaker 2: Robert Kiwasaki, he's one of those folks, but there are

847
00:37:35,920 --> 00:37:38,440
Speaker 2: definitely others as well. But the truth is the market

848
00:37:38,440 --> 00:37:41,719
Speaker 2: it's got its ups and downs, as we've experienced this year,

849
00:37:42,200 --> 00:37:45,480
Speaker 2: but there's still no easier way to build wealth despite

850
00:37:45,800 --> 00:37:50,960
Speaker 2: the significant amounts of volatility than regularly investing in the

851
00:37:51,000 --> 00:37:55,800
Speaker 2: American economy. Humans, we are incredibly creative, We're adaptable creatures.

852
00:37:56,239 --> 00:37:59,840
Speaker 2: It's best to just ignore these predictions of doom and gloom.

853
00:38:00,239 --> 00:38:03,440
Speaker 2: There is enough other normal, sad, normal stuff out there

854
00:38:03,480 --> 00:38:05,600
Speaker 2: for us to worry about. And by the way, I

855
00:38:05,680 --> 00:38:08,040
Speaker 2: was talking about the volatility, like that bumpy ride that

856
00:38:08,080 --> 00:38:10,279
Speaker 2: you experienced in the market, that is a feature, not

857
00:38:10,360 --> 00:38:12,520
Speaker 2: a bug. That is what allows us to be able

858
00:38:12,560 --> 00:38:16,200
Speaker 2: to see growth over the long haul. And again, if

859
00:38:16,239 --> 00:38:19,040
Speaker 2: there is some sort of catastrophe something like I don't

860
00:38:19,080 --> 00:38:20,920
Speaker 2: like a nuclear attack or something like that. I think

861
00:38:20,920 --> 00:38:23,480
Speaker 2: we've got bigger problems. And it doesn't matter if you're

862
00:38:23,480 --> 00:38:27,719
Speaker 2: invested in whatever alternative investment. It's also not going to

863
00:38:27,760 --> 00:38:30,320
Speaker 2: save you if we're approaching the end of the world.

864
00:38:30,600 --> 00:38:32,160
Speaker 1: Yeah, And a lot of the folks that are the

865
00:38:32,239 --> 00:38:35,000
Speaker 1: loudest voices, Matt saying that the stock market is a

866
00:38:35,040 --> 00:38:37,000
Speaker 1: house of cards, or that we're going to see massive

867
00:38:37,000 --> 00:38:40,279
Speaker 1: declines this year or depression twenty twenty three, it's inevitable.

868
00:38:40,480 --> 00:38:43,480
Speaker 1: Those people often have a financial incentive to scare people

869
00:38:43,680 --> 00:38:45,080
Speaker 1: in order to buy what they're selling.

870
00:38:45,160 --> 00:38:47,239
Speaker 2: Yeah, but by the way, have you checked out this

871
00:38:47,520 --> 00:38:49,279
Speaker 2: company and they happen to sell goal?

872
00:38:49,360 --> 00:38:51,880
Speaker 1: That's right, And here's how you save yourself from this

873
00:38:52,360 --> 00:38:55,359
Speaker 1: from being impacted to the extent that other people are

874
00:38:55,360 --> 00:39:00,319
Speaker 1: impacted when everything goes to hell. And another investing thing

875
00:39:00,360 --> 00:39:02,839
Speaker 1: that you probably hear that people here investing advice is

876
00:39:02,880 --> 00:39:05,080
Speaker 1: to invest in what you know you might hear folks

877
00:39:05,120 --> 00:39:07,560
Speaker 1: say that it makes sense to invest in companies that

878
00:39:07,600 --> 00:39:11,760
Speaker 1: you use regularly. So like, if you absolutely love Netflix,

879
00:39:12,040 --> 00:39:14,640
Speaker 1: if you're a fan of the content they create, you

880
00:39:14,680 --> 00:39:17,040
Speaker 1: should invest in the stock. And if you can't wait

881
00:39:17,080 --> 00:39:19,279
Speaker 1: to like spend time in the metaverse, let's say, which

882
00:39:19,320 --> 00:39:20,839
Speaker 1: I've not heard anyone say that before.

883
00:39:20,920 --> 00:39:24,040
Speaker 2: That was my Netflix tone. Nicely done, thanks.

884
00:39:23,800 --> 00:39:25,480
Speaker 1: And yeah, I mean, like, have you heard anyone say

885
00:39:25,480 --> 00:39:26,879
Speaker 1: they want to spend time in the metaverse? I feel

886
00:39:26,920 --> 00:39:29,400
Speaker 1: like they know I definitely have the zuck. He's getting

887
00:39:29,400 --> 00:39:31,520
Speaker 1: criticism for that these days because he's sticking a lot

888
00:39:31,520 --> 00:39:36,800
Speaker 1: of Facebooks dollars or Metas dollars towards this future potential universe.

889
00:39:36,840 --> 00:39:39,080
Speaker 1: But yeah, if you if you are excited about that,

890
00:39:39,080 --> 00:39:40,799
Speaker 1: if you're one of the rare people couldt toss some

891
00:39:40,840 --> 00:39:43,400
Speaker 1: of your retirement dollars in a company that you think

892
00:39:43,760 --> 00:39:45,520
Speaker 1: has some insight into what we're all going to be

893
00:39:45,520 --> 00:39:48,040
Speaker 1: doing in the future. Or let's say you are a

894
00:39:48,040 --> 00:39:50,680
Speaker 1: big fan of the Yeezy shoes, which I don't probably

895
00:39:50,719 --> 00:39:53,080
Speaker 1: nobody is anymore. Kind of got canceled, but.

896
00:39:53,960 --> 00:39:56,840
Speaker 2: After you went on as incredible anti Semitic.

897
00:39:56,520 --> 00:39:58,959
Speaker 1: Tirades, and so we saw what happened with a DIDA stock.

898
00:39:59,080 --> 00:40:02,440
Speaker 1: You never know, even just like the crazy bumplings of

899
00:40:02,480 --> 00:40:05,880
Speaker 1: a celebrity, can lead to a precipitous fallout in a

900
00:40:05,920 --> 00:40:09,160
Speaker 1: company stock. So I get kind of why this advice

901
00:40:09,400 --> 00:40:13,160
Speaker 1: gets spread. But hopefully with each one of these examples

902
00:40:13,239 --> 00:40:15,640
Speaker 1: you can see how it might play play out. Like first,

903
00:40:15,719 --> 00:40:18,640
Speaker 1: we're not fans of investing in single stocks. The two

904
00:40:18,640 --> 00:40:21,280
Speaker 1: of us, we talk about money and investing all the time,

905
00:40:21,400 --> 00:40:23,680
Speaker 1: and we don't do it. But the reality is, you

906
00:40:23,840 --> 00:40:27,080
Speaker 1: just never know what competition or other headwinds might be

907
00:40:27,080 --> 00:40:30,120
Speaker 1: coming for that company you love. When it comes to Netflix,

908
00:40:30,160 --> 00:40:34,759
Speaker 1: there's more streaming competition out there than ever before. And

909
00:40:34,800 --> 00:40:37,759
Speaker 1: it's not to say that Netflix won't ultimately succeed, but

910
00:40:37,800 --> 00:40:39,600
Speaker 1: for a while they had it easy. They didn't have

911
00:40:39,680 --> 00:40:42,279
Speaker 1: much competition and the edge. And it's not to say

912
00:40:42,280 --> 00:40:44,040
Speaker 1: that people won't want to spend time in the metaverse.

913
00:40:44,080 --> 00:40:47,080
Speaker 1: If Zuckerberg can make it something fascinating, if he can

914
00:40:47,120 --> 00:40:49,359
Speaker 1: make it like Ready Player one style, maybe we'll all

915
00:40:49,400 --> 00:40:50,880
Speaker 1: be in there like doing cool stuff.

916
00:40:51,200 --> 00:40:52,920
Speaker 2: Or we won't because people because we just don't know

917
00:40:52,960 --> 00:40:55,880
Speaker 2: the future, right like that. That's the predicament here, is

918
00:40:55,880 --> 00:40:57,400
Speaker 2: that we have no clue. And when you're putting all

919
00:40:57,440 --> 00:41:00,600
Speaker 2: of your eggs in literally one basket with war stock

920
00:41:00,760 --> 00:41:03,919
Speaker 2: like this, it's difficult to know because, yeah, metaverse folks

921
00:41:04,000 --> 00:41:07,320
Speaker 2: might realize that, you know what those in real life relationships,

922
00:41:07,800 --> 00:41:10,960
Speaker 2: going back to Victor Frankel. Frankel, those are the relationships

923
00:41:11,000 --> 00:41:13,920
Speaker 2: that matter, not not this imitation stuff. Basically that we're

924
00:41:13,960 --> 00:41:14,760
Speaker 2: funding on the metaverse.

925
00:41:14,920 --> 00:41:17,839
Speaker 1: Just because you like company's shoes doesn't mean that they've

926
00:41:17,880 --> 00:41:20,520
Speaker 1: partnered with the right people to help, you know, improve

927
00:41:20,560 --> 00:41:24,279
Speaker 1: that business and to reach more customers. Over the long haul,

928
00:41:24,360 --> 00:41:27,640
Speaker 1: those relationships can sour, costing companies hundreds of millions of dollars.

929
00:41:27,760 --> 00:41:29,480
Speaker 2: Yeah, and we're, like you said, like we're talking about

930
00:41:29,520 --> 00:41:32,399
Speaker 2: individual stocks. But even beyond that, I think the same

931
00:41:32,480 --> 00:41:35,720
Speaker 2: lessons can be applied to entire sectors, right, because during

932
00:41:35,760 --> 00:41:37,760
Speaker 2: the pandemic, what did we see in the tech sector?

933
00:41:37,800 --> 00:41:42,080
Speaker 2: We saw tech stocks taking off, they crushed. And now

934
00:41:42,120 --> 00:41:44,960
Speaker 2: what we've seen so far this year is the man

935
00:41:45,400 --> 00:41:47,920
Speaker 2: bloodbath with all the big, big tech names. And instead

936
00:41:47,920 --> 00:41:50,560
Speaker 2: of what we've seen is energy stocks. The entire energy

937
00:41:50,600 --> 00:41:52,080
Speaker 2: sector is like at all time highs.

938
00:41:52,080 --> 00:41:53,480
Speaker 1: And so now you might be saying, oh, now is

939
00:41:53,480 --> 00:41:54,840
Speaker 1: the time to invest in exon.

940
00:41:54,719 --> 00:41:56,920
Speaker 2: But you don't know. You don't know, so instead invest

941
00:41:57,000 --> 00:42:00,840
Speaker 2: in widely diversified index funds like VU or VTS, both

942
00:42:00,920 --> 00:42:03,879
Speaker 2: of Vanguard's either total stock or s and P five

943
00:42:03,960 --> 00:42:07,120
Speaker 2: hundred index funds. And so don't invest in what you know,

944
00:42:07,200 --> 00:42:11,040
Speaker 2: because that essentially it's a shallow understanding. It's a shallow

945
00:42:11,080 --> 00:42:14,200
Speaker 2: measure of what you think might be successful in the future.

946
00:42:14,200 --> 00:42:16,719
Speaker 2: But it is a far cry from an actual analysis,

947
00:42:17,000 --> 00:42:19,319
Speaker 2: let alone a prediction of what actually might happen in

948
00:42:19,320 --> 00:42:19,720
Speaker 2: the future.

949
00:42:19,840 --> 00:42:21,560
Speaker 1: And so oftentimes when we do this, Matt too, we

950
00:42:21,680 --> 00:42:23,360
Speaker 1: just get the timing wrong. So you might kind of

951
00:42:23,360 --> 00:42:25,160
Speaker 1: be right, maybe the metaverse.

952
00:42:24,800 --> 00:42:27,640
Speaker 2: Will exactly going back to timing of the market. Yes, sure,

953
00:42:27,680 --> 00:42:30,080
Speaker 2: buy low, sell high, but how the heck do you

954
00:42:30,120 --> 00:42:31,880
Speaker 2: figure that out? It might be fifteen years from now.

955
00:42:31,920 --> 00:42:35,040
Speaker 2: In retrospect hindsight, it always looks so easy because you're

956
00:42:35,040 --> 00:42:38,000
Speaker 2: framing the past by what you are experiencing today. And

957
00:42:38,080 --> 00:42:40,879
Speaker 2: so yeah, looking back to the pandemic, you're thinking, of course,

958
00:42:40,880 --> 00:42:42,960
Speaker 2: tell you know, we're talking about teledoc earlier. Of course

959
00:42:43,000 --> 00:42:45,080
Speaker 2: they were going to crush. Everybody's going to be at home,

960
00:42:45,200 --> 00:42:48,480
Speaker 2: everyone's going to be prize these technology companies. But at

961
00:42:48,480 --> 00:42:50,640
Speaker 2: the time we didn't know that. Yeah, and so the

962
00:42:50,640 --> 00:42:54,160
Speaker 2: same thing you know applies to the present moving forward,

963
00:42:54,200 --> 00:42:56,480
Speaker 2: we have no clue what the future is gonna hold.

964
00:42:56,560 --> 00:42:58,640
Speaker 1: Are you gonna have this ramna? In retrospect you might

965
00:42:58,640 --> 00:42:59,920
Speaker 1: be able to figure it out the four to two

966
00:43:00,120 --> 00:43:03,320
Speaker 1: to hold on to those to those stocks when they're plummeting,

967
00:43:03,360 --> 00:43:05,440
Speaker 1: when they're not doing well, just because you have that

968
00:43:05,520 --> 00:43:08,520
Speaker 1: ultimate faith and belief. Probably not like most people. At

969
00:43:08,520 --> 00:43:11,400
Speaker 1: some point they cry uncle, they sell, and so like

970
00:43:11,520 --> 00:43:13,680
Speaker 1: right now you a doubt yourself. Yeah, it's don't at

971
00:43:13,680 --> 00:43:15,279
Speaker 1: the wrong time. I think there's just a lot to

972
00:43:15,320 --> 00:43:18,399
Speaker 1: be said for not taking that approach, even though there's

973
00:43:18,400 --> 00:43:20,279
Speaker 1: a lot of people that are going to say that

974
00:43:20,280 --> 00:43:22,359
Speaker 1: that's what you should do and that that that's how

975
00:43:22,440 --> 00:43:25,800
Speaker 1: stock market investing makes sense to the average individual, but

976
00:43:25,840 --> 00:43:27,840
Speaker 1: I don't think that's the case, and I think investing

977
00:43:27,880 --> 00:43:30,120
Speaker 1: in the market as a whole is something that's easy

978
00:43:30,160 --> 00:43:32,960
Speaker 1: for the average American to understand. You don't have to

979
00:43:33,120 --> 00:43:35,920
Speaker 1: start picking individual stocks of companies that you already kind

980
00:43:35,920 --> 00:43:37,680
Speaker 1: of kind of like in order to be a good investor,

981
00:43:37,719 --> 00:43:39,040
Speaker 1: and in fact, it's probably going to take you down

982
00:43:39,040 --> 00:43:39,560
Speaker 1: the wrong path.

983
00:43:39,880 --> 00:43:42,480
Speaker 2: That's right. Yeah, Again, we could do an entire episode

984
00:43:43,360 --> 00:43:46,200
Speaker 2: on the crappy investing advice that we often hear, but

985
00:43:46,400 --> 00:43:47,960
Speaker 2: I mean, as we kind of round this episode out,

986
00:43:48,000 --> 00:43:49,759
Speaker 2: bottom line, we just want you to be careful who

987
00:43:49,800 --> 00:43:51,880
Speaker 2: it is that you listen to. There's probably a lot

988
00:43:52,000 --> 00:43:54,479
Speaker 2: more crappy personal finance advice out there than you think,

989
00:43:54,840 --> 00:43:58,160
Speaker 2: and we can't tackle all of the poor advice that

990
00:43:58,160 --> 00:44:00,839
Speaker 2: you might come across just in one episode. So bottom line,

991
00:44:00,880 --> 00:44:02,880
Speaker 2: we want you to be careful who it is that

992
00:44:02,920 --> 00:44:05,560
Speaker 2: you're listening to. We think that there's probably a lot

993
00:44:05,560 --> 00:44:09,279
Speaker 2: more crappy personal finance advice out there than you think,

994
00:44:09,320 --> 00:44:10,960
Speaker 2: and you know, we can't tackle it all just in

995
00:44:11,000 --> 00:44:14,960
Speaker 2: one episode. Oftentimes it's the folks who are screaming the loudest.

996
00:44:15,160 --> 00:44:17,640
Speaker 2: It's the folks who have the most rigid rules out there,

997
00:44:17,640 --> 00:44:20,160
Speaker 2: they can be the easiest to understand, for sure, but

998
00:44:20,239 --> 00:44:23,040
Speaker 2: it doesn't mean that their advice is going to be

999
00:44:23,040 --> 00:44:25,600
Speaker 2: best for you. You know that's going to be best

1000
00:44:25,600 --> 00:44:27,840
Speaker 2: for you to listen to them, or that it'll actually

1001
00:44:27,880 --> 00:44:29,799
Speaker 2: be the most helpful for you in the long run.

1002
00:44:29,840 --> 00:44:33,640
Speaker 2: At least personal finance advice, it can and should be nuanced.

1003
00:44:33,840 --> 00:44:36,520
Speaker 2: It takes time, like we talked about earlier too, and

1004
00:44:36,880 --> 00:44:39,960
Speaker 2: not all advice is created equal, and some of the

1005
00:44:39,960 --> 00:44:42,920
Speaker 2: different blanket rules of thumb that you come across for everyone,

1006
00:44:42,960 --> 00:44:45,680
Speaker 2: no matter what their their individual financial situation looks like,

1007
00:44:45,880 --> 00:44:48,239
Speaker 2: that is not a great tactic. Where it is that

1008
00:44:48,320 --> 00:44:51,000
Speaker 2: you are in your financial journey. It's crucial to the

1009
00:44:51,040 --> 00:44:53,359
Speaker 2: advice that you should be heeding and with that, make

1010
00:44:53,400 --> 00:44:55,880
Speaker 2: sure that you spend enough time thinking about this. I

1011
00:44:55,880 --> 00:44:59,319
Speaker 2: think oftentimes folks they go with the slogan advice, the

1012
00:44:59,360 --> 00:45:01,640
Speaker 2: thing that's easy, need to repeat, They go with the headlines,

1013
00:45:01,840 --> 00:45:04,400
Speaker 2: and instead we want you to think about it. We

1014
00:45:04,400 --> 00:45:06,200
Speaker 2: don't want you to spend too much time, but spend

1015
00:45:06,320 --> 00:45:08,719
Speaker 2: enough time that you are informed and that you're able

1016
00:45:08,719 --> 00:45:10,560
Speaker 2: to make the best decisions for yourself.

1017
00:45:10,680 --> 00:45:12,600
Speaker 1: Yeah, and it just makes me think, Matt that, like

1018
00:45:13,120 --> 00:45:14,920
Speaker 1: you mentioned Victor Frankel's book, and I think it's a

1019
00:45:14,920 --> 00:45:17,480
Speaker 1: great one, and it's actually it's pretty skinny. It's not

1020
00:45:17,520 --> 00:45:19,319
Speaker 1: really that hard for most books to read. But if

1021
00:45:19,320 --> 00:45:21,480
Speaker 1: I hand it to my seven year old who's in

1022
00:45:21,480 --> 00:45:23,839
Speaker 1: the second grade, when she's reading Pete the Cat kind

1023
00:45:23,840 --> 00:45:25,440
Speaker 1: of books, right, Like, that's kind of the vein she's in.

1024
00:45:25,800 --> 00:45:28,440
Speaker 1: She might be able to understand a good chunk of

1025
00:45:28,440 --> 00:45:30,680
Speaker 1: the words. She's not going to understand what she's reading though,

1026
00:45:30,920 --> 00:45:33,880
Speaker 1: And so yeah, when you do blanket advice or you

1027
00:45:33,920 --> 00:45:36,359
Speaker 1: say this is the best thing for everyone, oftentimes we're

1028
00:45:36,360 --> 00:45:39,000
Speaker 1: missing the reality that people are at different points in

1029
00:45:39,040 --> 00:45:41,520
Speaker 1: their financial journey. And so we try to bring that

1030
00:45:41,640 --> 00:45:43,880
Speaker 1: nuance to the forefront so that people can see, like

1031
00:45:43,920 --> 00:45:45,759
Speaker 1: how we're coming through our conclusion, so they can come

1032
00:45:45,800 --> 00:45:47,960
Speaker 1: to their own not just tossing a phrase out there

1033
00:45:47,960 --> 00:45:50,560
Speaker 1: and hoping that everyone adapts accordingly like that. That's not

1034
00:45:50,960 --> 00:45:52,480
Speaker 1: a plan, that's not our path, that's not how we.

1035
00:45:52,480 --> 00:45:54,560
Speaker 2: Roll, all right, man? Is that it for this episode? Yeah,

1036
00:45:55,000 --> 00:45:57,120
Speaker 2: let's get to the beer. This episode, you and I

1037
00:45:57,200 --> 00:46:01,360
Speaker 2: enjoyed Uplifted, which is a Scottish style Ale from Talisman

1038
00:46:01,400 --> 00:46:03,640
Speaker 2: Brewing Company. Thank you Andy for donating this one to

1039
00:46:03,680 --> 00:46:03,919
Speaker 2: the show.

1040
00:46:03,920 --> 00:46:06,040
Speaker 1: What were your thoughts, buddy, So I've never had this

1041
00:46:06,239 --> 00:46:07,959
Speaker 1: was like a light version of a scott chaliel.

1042
00:46:08,000 --> 00:46:09,319
Speaker 2: Yeah, so I was reading on the side it said

1043
00:46:09,360 --> 00:46:12,680
Speaker 2: it's it's like a session sessionable Scottish aale. Yeah, so

1044
00:46:13,239 --> 00:46:13,560
Speaker 2: it was.

1045
00:46:13,600 --> 00:46:15,080
Speaker 1: I would say it was kind of like a light

1046
00:46:15,080 --> 00:46:17,640
Speaker 1: brown nail in a lot of ways, and I like

1047
00:46:17,719 --> 00:46:19,560
Speaker 1: a good Scotch jale. We actually got to have a

1048
00:46:19,560 --> 00:46:21,120
Speaker 1: good one on the show not too long ago, and

1049
00:46:21,400 --> 00:46:23,160
Speaker 1: that was fun because scott shales are actually kind of

1050
00:46:23,160 --> 00:46:24,799
Speaker 1: hard to come by, not many people may come. But

1051
00:46:25,120 --> 00:46:26,880
Speaker 1: this one left a little more to be desired than

1052
00:46:26,880 --> 00:46:29,320
Speaker 1: that one. It was just it was kind of lacking

1053
00:46:29,400 --> 00:46:31,040
Speaker 1: in some of the flavor profile and some of the

1054
00:46:31,080 --> 00:46:32,520
Speaker 1: punch I typically like to get it.

1055
00:46:32,719 --> 00:46:34,880
Speaker 2: Scott wasn't quite as toast. I mean a lot of

1056
00:46:34,880 --> 00:46:38,720
Speaker 2: times it's characterized by like a toastiness. Yeah, like some bigger,

1057
00:46:38,800 --> 00:46:41,600
Speaker 2: darker flavor caramel vibes. This one was like almost a

1058
00:46:41,600 --> 00:46:45,480
Speaker 2: little bit tart. So maybe that that lightness and body

1059
00:46:45,600 --> 00:46:47,360
Speaker 2: lent itself, So maybe it's just a yeah, like a

1060
00:46:47,360 --> 00:46:50,120
Speaker 2: slight tartness, but as always, I would rather be drinking

1061
00:46:50,239 --> 00:46:52,800
Speaker 2: a craft beer with you while we record an episode

1062
00:46:52,800 --> 00:46:54,640
Speaker 2: the Notts. So I'm glad that you and I were

1063
00:46:54,680 --> 00:46:56,239
Speaker 2: able to enjoy one of these today, budd. Yeah.

1064
00:46:56,239 --> 00:46:58,040
Speaker 1: And by the way, I mean we talked about smart

1065
00:46:58,080 --> 00:47:00,239
Speaker 1: rules for spending earlier, just for a second, as we

1066
00:47:00,239 --> 00:47:03,600
Speaker 1: were talking about the latte factor, and that you and

1067
00:47:03,719 --> 00:47:06,040
Speaker 1: I kind of go what we do flies directly in

1068
00:47:06,040 --> 00:47:07,680
Speaker 1: the face of that. We drink a craft beer, often

1069
00:47:07,680 --> 00:47:12,000
Speaker 1: an expensive craft beer, every episode. This one fortunately was free,

1070
00:47:12,000 --> 00:47:14,720
Speaker 1: thanks Andy. But but we are spending our own money

1071
00:47:14,760 --> 00:47:18,080
Speaker 1: for ninety five percent of these beers because and not

1072
00:47:18,160 --> 00:47:19,759
Speaker 1: just because we love beer, that's a big part of it,

1073
00:47:19,840 --> 00:47:21,759
Speaker 1: but because there's another lesson to be had in there.

1074
00:47:21,760 --> 00:47:23,640
Speaker 1: That's spending money all the things that you love in

1075
00:47:23,719 --> 00:47:25,719
Speaker 1: the here and now while you're getting good with your

1076
00:47:25,760 --> 00:47:27,520
Speaker 1: money is an important part of the equation.

1077
00:47:27,680 --> 00:47:27,919
Speaker 2: Yep.

1078
00:47:27,920 --> 00:47:31,080
Speaker 1: And going too hard, becoming hyper frugal over the top,

1079
00:47:31,440 --> 00:47:32,960
Speaker 1: is a recipe for disaster in the long run.

1080
00:47:33,040 --> 00:47:35,560
Speaker 2: Yeah, yeah, all frugal and no splurge mixed, jul and

1081
00:47:35,640 --> 00:47:36,880
Speaker 2: iied dull boys.

1082
00:47:36,640 --> 00:47:39,520
Speaker 1: That's right, we don't want to be that. So all right, Matt,

1083
00:47:39,520 --> 00:47:41,400
Speaker 1: that's going to do it for this episode. If you

1084
00:47:41,400 --> 00:47:44,480
Speaker 1: have another piece of financial advice that really sucks, that's

1085
00:47:44,520 --> 00:47:46,480
Speaker 1: really great to you, that you find around the interwebs

1086
00:47:46,480 --> 00:47:47,799
Speaker 1: at some point, send it our way. We love to

1087
00:47:47,800 --> 00:47:49,840
Speaker 1: hear from you. Reach out to us. You can email

1088
00:47:49,920 --> 00:47:52,440
Speaker 1: us at how to Moneypod at gmail dot com.

1089
00:47:52,560 --> 00:47:54,200
Speaker 2: That's right, buddy. So that's going to be it for

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00:47:54,239 --> 00:48:09,279
Speaker 2: this episode until next time. Best Friends Out, Best Friends Out,