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Speaker 1: Welcome to How the Money. I'm Joel Matt and today

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Speaker 1: we're discussing store brand surges, four oh one K changes

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Speaker 1: and inconvenient conveniences you know what money. This is our

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Speaker 1: Friday flight and we're gonna talk about the best headlines

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Speaker 1: that we think you should be paying attention to that

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Speaker 1: we came across this week. Uh, this is a small

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Speaker 1: sampling of our favorite headlines. But before we get to that,

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Speaker 1: we need to make sure we announce our Money and

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Speaker 1: Love book winners. So Money and Love that's a book

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Speaker 1: that we discussed this past Monday with Abby Davidson. She

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Speaker 1: talked about relationships, talked about the logic that we often

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Speaker 1: employ when it comes to making some of these bigger

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Speaker 1: decisions in life. Uh, and how we need a little

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Speaker 1: bit of both in order to make the absolute best decisions.

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Speaker 1: Helpful framework for basically thinking about the biggest decisions we

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Speaker 1: make in life, which often involve yeah, relational love interest

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Speaker 1: kind of stuff and also money. Right, Like both of

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Speaker 1: those things are simultaneously. It works, right, and we drew

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Speaker 1: five winners. We we announced the book giveaway during that episode.

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Speaker 1: All you needed to do was reach out to us

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Speaker 1: with your review that you left over at Apple Podcasts

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Speaker 1: or wherever you listen to your podcasts, and uh, here

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Speaker 1: are the five winners. Todd Are, Mona M, Julian P.

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Speaker 1: Matt D and Maggie Are. We will be reaching out

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Speaker 1: to you, getting your mailing addresses and getting copies of

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Speaker 1: those books on the way to you very soon. Yeah.

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Speaker 1: Hopefully you'll enjoy that book and will help you make

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Speaker 1: future money decisions with like a little more ease. It's

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Speaker 1: never easy at all, Always a lot of stuff to way,

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Speaker 1: especially when you're making big decisions with people that you love,

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Speaker 1: with people that you're close to. But hopefully, Yeah, I

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Speaker 1: think I love what she said, Matt when she said that, like,

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Speaker 1: well you can make it. Even if you look back,

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Speaker 1: you don't regret the choice in nearly the same way

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Speaker 1: that you might because you had a framework that you

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Speaker 1: went into with. You made an intentional choice, which is

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Speaker 1: a big part of the problem. Totally fly by the

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Speaker 1: seat of our pants, But exactly it was like about

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Speaker 1: it was about empowering your due diligence process within your decision.

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Speaker 1: Maybe like we just want to make sure that we're

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Speaker 1: making decisions on purpose and not looking back and being

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Speaker 1: like did I how did that happen? That that is

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Speaker 1: not the position that you want to be in. Yeah,

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Speaker 1: I just want to quickly mention that I'm working on

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Speaker 1: getting the Amazon Prime student rate for for our account,

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Speaker 1: because I totally forgot about this, but like a college

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Speaker 1: student rate. My wife is in grad school. Why in

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Speaker 1: the world, all snap, have I not taken advantage of this?

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Speaker 1: You can buy, you can get like new computers, yes,

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Speaker 1: student rates as well. Well, yeah we got what she

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Speaker 1: got stock up when she got her laptop at the

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Speaker 1: very beginning of school. We got the we got the

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Speaker 1: student discount rate on a mac because yeah, that's the

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Speaker 1: student discounts abound. I'm realized we were. My wife is

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Speaker 1: getting some clothes on sale and made Well the other day,

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Speaker 1: and made Well has like a student discount like their

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Speaker 1: student discounts all over the place. So if you're a student,

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Speaker 1: don't forget to ask or google it, check and see

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Speaker 1: if there is one. But yeah, Amazon Prime has it too,

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Speaker 1: So I'm hoping not only to get it for our

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Speaker 1: Prime account, but also for our Prime music, which apparently

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Speaker 1: gets discounted too if if we get the student rate,

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Speaker 1: So I want those unlimited tunes at that student rate.

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Speaker 1: I know right. I will report back, but just awesome

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Speaker 1: reminded all the students out there their student discounts abound,

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Speaker 1: and it's worth it's worth asking, it's worth looking into.

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Speaker 1: But let's move on, Matt. Let's get to the Friday Flight.

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Speaker 1: A quick sampling of stories we found interesting this week,

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Speaker 1: and let's talk smack at the beginning at the outside

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Speaker 1: of this Friday Fight about Wells Fargo and uh, that's

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Speaker 1: they just got taken a task by the Consumer Financial

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Speaker 1: Financial Protection Bureau. They have the four it's a fourk

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Speaker 1: overall whopping three point seven billion dollars because they're such

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Speaker 1: a terrible bank, and two billion of those dollars are

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Speaker 1: going to customers and a record fine of one point

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Speaker 1: seven billion is going to the CFPB. And this is

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Speaker 1: not by the way, for new allegations of fraud, but

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Speaker 1: for a slew of abusive practices that Wells Fargo has

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Speaker 1: been engaging in over the past decade, which we have

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Speaker 1: talked about here on the show. I mean, the worst

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Speaker 1: of what they did came out like six seven years ago,

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Speaker 1: but signing people up for accounts like that they didn't

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Speaker 1: ask for, and I mean just all sorts of abuse

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Speaker 1: for practice their current cuss but I was reading and

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Speaker 1: they have had some issues even up and as recent

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Speaker 1: as this year, like they've had some compliance failures I saw.

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Speaker 1: So it's like, yeah, they're the most egregious examples of

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Speaker 1: their misbehavior have been in the past, but even like

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Speaker 1: even this year, they are still not doing what they're

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Speaker 1: supposed to be better. But that doesn't mean they're not reformed.

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Speaker 1: And the director of the CFPV he actually said that

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Speaker 1: Wells Fargo has consistently been one of the most problematic

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Speaker 1: repeat offenders, which isn't you know something you want said

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Speaker 1: about yourself, And he basically said that this settlement doesn't

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Speaker 1: necessarily mean that the bank doesn't still have issues, like

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Speaker 1: you just said, Matt, and so while they've made progress,

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Speaker 1: there's still some rotten stuff going on in that bank.

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Speaker 1: And so we would say you bank with Wells Fargo

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Speaker 1: at your own peril, and really, really you bank with

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Speaker 1: the top the biggest three or four banks, at your

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Speaker 1: own peril, We would say you should switch banks, go

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Speaker 1: somewhere else. We have an article that will link to

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Speaker 1: in the show notes about how you can do that

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Speaker 1: and make it easy on yourself. But if you're banking

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Speaker 1: with Wells Fargo. There's no time like now, no no,

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Speaker 1: no time like the president to not do that anymore.

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Speaker 1: I think that could be an excellent, simple to do

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Speaker 1: task for folks over the holidays. Right like, for the

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Speaker 1: most part, you're laying low, you're taking it easy. You

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Speaker 1: don't want to be running around, Oh my gosh, like

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Speaker 1: in the crazy cold weather that most of the country

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Speaker 1: is experiencing right now. Like, this is totally something that

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Speaker 1: you can do from the ease of your laptop at home.

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Speaker 1: So you've got that like erin del fireplace on in

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Speaker 1: the background, you know exactly. But let's keep moving. Let's

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Speaker 1: talk about high prices, because if you saw the most

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Speaker 1: recent CPI numbers, it was nice to see inflation going

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Speaker 1: down overall. One place though, that that wasn't the case

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Speaker 1: is at the grocery store. Food prices they have remained

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Speaker 1: stubbornly high. And to that end, supermarkets are trying some

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Speaker 1: different techniques to ease the pain and to get customers

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Speaker 1: to maybe switch their allegiance to start shopping with them.

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Speaker 1: A popular method that some stores are doubling down on

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Speaker 1: is to offer more store brands. Were huge fans of

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Speaker 1: store brands and consumers are taking the bait. They're opting

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Speaker 1: for a similar but vastly cheaper alternative Kroger. They say

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Speaker 1: that they're selling more store brands compared to last year.

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Speaker 1: We wanted to point this out because just generally speaking,

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Speaker 1: store brands, they are getting better, they're getting more popular.

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Speaker 1: There are there are more options for you on the shells. Uh.

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Speaker 1: And if you're a name brand person, we think it's

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Speaker 1: time for you to consider and maybe give some of

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Speaker 1: the store brands a try. Yeah, you might have tried

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Speaker 1: something in the past, but maybe it's maybe it's gotten better,

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Speaker 1: so it's worth a shot again. And if you give

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Speaker 1: it a shot at the right store. By the way,

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Speaker 1: if you give store brands a chance at some of

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Speaker 1: the lower cost grocery stores, you've actually got nothing to lose.

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Speaker 1: And that's because stores like all the legal they've they've

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Speaker 1: got guarantees on their store brain items which allow you

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Speaker 1: to return them and get your money back all together.

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Speaker 1: And so yeah, they'll refund and replace the item at

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Speaker 1: the same time, which means no sweat off your back.

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Speaker 1: And so yeah, Kroger they've got a return policy that's

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Speaker 1: not quite as generous, but at least they've got one

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Speaker 1: on store brands. But it's important to mention that there's

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Speaker 1: nothing to lose and lots of your grocery dollars to

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Speaker 1: gain opting for fewer name brains in your grocery cart,

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Speaker 1: and that there was another story this week about how

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Speaker 1: expensive egg prices are getting. It's it's getting pretty absurd, right,

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Speaker 1: But so every every way in which we can save

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Speaker 1: money at the grocery store it matters right now. And

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Speaker 1: store brains are just one of the slammed on easiest

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Speaker 1: ways to do it without having to like clip cubans

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Speaker 1: and annoy yourself to death. When it comes to saving money,

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Speaker 1: it's just a simple way to to make progress on that. Well.

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Speaker 1: And it's not like they're so specifically with Legal and Aldi.

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Speaker 1: It's not like there's not store brands there. I mean,

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Speaker 1: so there are a lot more. There definitely are, but

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Speaker 1: they're like you last time we're over at Legal Rights Bacon,

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Speaker 1: that's like they're really good stuff. They're totally on sale.

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Speaker 1: Got a multiple pound and a half packages of that

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Speaker 1: for like six bucks six bucks each of that jump

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Speaker 1: in the in the in the freezer. But yeah, Legal

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Speaker 1: and all these specifically, I think they carry something like

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Speaker 1: four uh, four times more of their store brands versus

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Speaker 1: the name brands that they carry in the store. And

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Speaker 1: so it's just a way, I mean that is how

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Speaker 1: you're able to save so much money is because by

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Speaker 1: default you can't buy a whole lot of store brands

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Speaker 1: because they don't i'm sorry, name brands, because they don't

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Speaker 1: typically carry a ton of them. By default, you are

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Speaker 1: purchasing the store brands, and those all the legal store

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Speaker 1: brands are by default going to be cheaper than most

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Speaker 1: of the other major grocery store store brands just because

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Speaker 1: of the kind of business they run. And so store

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Speaker 1: brands are a good idea store brands at the cheapest

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Speaker 1: grocery stores out there isn't even better idea even more

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Speaker 1: affordable Joel, there are gonna be changes that are likely

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Speaker 1: coming to four one k's next year. We're gonna probably

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Speaker 1: know sometime next week, but it definitely looks like this bill. Uh.

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Speaker 1: This is part of the omnibus giant spending bill that's

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Speaker 1: set to be passed by Congress, likely signed by the President.

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Speaker 1: But it will also include secure two point oh bill,

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Speaker 1: which means that retirement savers are going to be helped

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Speaker 1: out on a few different fronts. First of all, r

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Speaker 1: m d s required minimum distributions on retirement accounts. They're

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Speaker 1: likely to be pushed back to age seventy five from

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Speaker 1: the current age of seventy two over the next ten years.

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Speaker 1: That's gonna be helpful for a lot of folks who

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Speaker 1: honestly are still working. They're talking money away and they

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Speaker 1: don't want to have to take that money out. And

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Speaker 1: I mean, we're seeing the age of the workforce continue

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Speaker 1: to increase as folks, they're living longer, they're living longer,

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Speaker 1: they continue to be healthy, and they wouldn't want to

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Speaker 1: be a productive part of society. Automatic enrollment in workplace

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Speaker 1: retirement accounts plus annual percentage boosts are set to become

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Speaker 1: law as well, and I think that's gonna be great.

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Speaker 1: That'll be a way to help a lot of folks

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Speaker 1: to invest who just otherwise wouldn't because they either forgot

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Speaker 1: about it or because of inertiare bias, which is a

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Speaker 1: fancy way of saying that they're just being lazy of

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Speaker 1: a catch up contributor destination. When I did in college,

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Speaker 1: that's what they're doing with their retirement accounts. Exactly, but

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Speaker 1: catch up contribution limits they're gonna go up as well.

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Speaker 1: They're gonna be raised by a meaningful amount for folks

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Speaker 1: over the age of sixties. So in particular for those

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Speaker 1: who are further along, there are going to be a

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Speaker 1: lot of provisions to help those those folks out. And

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Speaker 1: so we will definitely make sure to keep folks posted

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Speaker 1: as this becomes law, for sure. Yeah, So there's a

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Speaker 1: lot a lot of provisions in this bill that dramatically

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Speaker 1: are going to change what people are able to do

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Speaker 1: when it comes to saving for retirement, making it easier

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Speaker 1: and just more reflexive for a lot of folks. And

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Speaker 1: and one other provision would allow employers to incentivize their

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Speaker 1: employees to save up a small emergency fund within their

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Speaker 1: retirement account if they make under a certain threshold, which

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Speaker 1: which is an interesting new feature. I think math that

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Speaker 1: can help incentivize people to get that rainy day fund

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Speaker 1: that they might not otherwise do if there's a match

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Speaker 1: that kind of propels them in that direction. I think

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Speaker 1: that's kind of cool. And since four oh one K

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Speaker 1: hardship withdrawals are going up in a meaningful way according

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Speaker 1: to recent statistics from Vanguard, from fidelity from some other

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Speaker 1: four one K providers. This could be a really important

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Speaker 1: part of this bill because yeah, one of the worst

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Speaker 1: things you can do for your financial future, of course,

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Speaker 1: is to raid your retirement account before you get to

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Speaker 1: retirement age, like stealing from future you. Yes, uh, And

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Speaker 1: so if you go this route, you might be solving

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Speaker 1: a temporary money issue in your life, but you're creating

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Speaker 1: a bigger, long term mess with taxes and penalties and

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Speaker 1: the like, and and just yeah, like, like you said, Matt,

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Speaker 1: stealing for future you. You don't have that money growing

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Speaker 1: for your eventual retirement either, so you're setting yourself up

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Speaker 1: to be working a lot later into your life then

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Speaker 1: you might otherwise want to. And the truth is, like

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Speaker 1: a four o one K loan is different. It's less

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Speaker 1: egregious than a four oh one K hardship withdrawal. But

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Speaker 1: we'd prefer that you think of retirement dollars as untouchable,

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Speaker 1: even if there are ways in which you can access them.

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Speaker 1: Just because you can doesn't mean you should. And we'll discuss,

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Speaker 1: like we said, more about these changes at some point

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Speaker 1: in January if this bill passes, Because there's just a

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Speaker 1: lot of moving parts and We're not sure how it's

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Speaker 1: all going to shake out at this point, but yeah,

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Speaker 1: it sounds like there are some some good changes. But

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Speaker 1: as always, human behavior stymies progress, and we don't want

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Speaker 1: to see you styming your own, you know, financial progress

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Speaker 1: by rating those retirement accounts before it's time. That's right, man,

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Speaker 1: Let's talk about paying for college, because we've talked many

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Speaker 1: times about how five twenty nine plans, how they're not

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Speaker 1: our favorite spot for many folks to be stalking away

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Speaker 1: money if you aren't crushing it right when it like

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Speaker 1: when it comes to your your your own saving into

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Speaker 1: your own retirement accounts where you're maxing out that roth

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Speaker 1: IRA and hopefully coming close to maxing out of workplace plan.

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Speaker 1: If that's the case, the five nine plans should be

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Speaker 1: off the table for you. But if you are one

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Speaker 1: of those folks who is knocking it out of the

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Speaker 1: park on that front, and you've got kids who are

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Speaker 1: likely to go to private school or to college, a

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Speaker 1: five twenty nine plan actually might be a great account

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Speaker 1: to consider funding. But there there's an interesting twist. There

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Speaker 1: has been a rule that was changed recently that might

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Speaker 1: impact how it is that you opt to go about

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Speaker 1: saving four those goals and specifically who you might want

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Speaker 1: to have ownership of that account. It's a it's a

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Speaker 1: small it's a it's a it's a new outs here

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Speaker 1: that's worth talking about. Yeah, so this is definitely another

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Speaker 1: like headline that's worth discussing because it's going to impact

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Speaker 1: how and in what way people save for their kids college.

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Speaker 1: You're right, mad, It's something that we don't recommend for

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Speaker 1: a whole lot of people, but for some people that

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Speaker 1: doesn't make sense. And what some folks don't know is

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Speaker 1: that a portion of what you invest in a five

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Speaker 1: nine plan counts against your kid's ability to receive financial aid.

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Speaker 1: So they're applying for college and the college says, hey,

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Speaker 1: you got all this money in the plan. Uh, you know,

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Speaker 1: and so we're gonna offer you a little bit less

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Speaker 1: money than than we would have because you've saved so well,

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Speaker 1: there's a little bit of a penalty associated with it. Uh.

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Speaker 1: The more you save, the more difficult it becomes to

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Speaker 1: score free money from the college that they choose to

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Speaker 1: go to. But FAFSA has made some changes that might

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Speaker 1: impact how you choose to invest for your child's college future.

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Speaker 1: And it turns out that money that's allocated in grand

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Speaker 1: hairent accounts is now going to have zero impact on

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Speaker 1: financial aid eligibility for their grand kids. In the past,

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Speaker 1: that has not been the case. And we've said that

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Speaker 1: you might want to solicit donations from grandparents for plans

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Speaker 1: that you open for your your own kids, but now

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Speaker 1: now effective for the school year, they the grandparents might

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Speaker 1: want to open the five plan of their own volition

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Speaker 1: for the benefit of their grand and their own name, yes,

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Speaker 1: in their name being the owner, for the benefit of

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Speaker 1: the grand kid, because that's gonna allow for maximum financial

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Speaker 1: aid flexibility. And so it's a five twenty nine twist.

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Speaker 1: New quirks is gonna they're gonna have ramifications. By the way,

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Speaker 1: we might be one step ahead of you on this.

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Speaker 1: You cannot change the account holder of the plan that

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Speaker 1: you already have open. You can't transfer the assets that

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Speaker 1: you have in your name to the benefit of your

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Speaker 1: kids to your mom or dad or your mother in

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Speaker 1: law father in law. So that's important to note. And

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Speaker 1: also just one more minor note on the nine front,

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Speaker 1: there's a proposed legislation that would allow folks to roll

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Speaker 1: over unused five nine funds into a roth high array,

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Speaker 1: and if that happens, we'll like them a whole lot more.

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Speaker 1: They might become uh an account that we recommend a

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Speaker 1: lot more people consider more options if that's something that

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Speaker 1: you can do. There's certain stipulations around this, but again

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Speaker 1: that that's a part of that secure two point oh

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Speaker 1: bill and they're not that actually passes and if it

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Speaker 1: gets modified, we're not totally sure. It definitely did have

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Speaker 1: some stipulations right as to how long those funds needed,

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Speaker 1: how long that account needed to have already existed before

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Speaker 1: you could roll that over to a roth ira. Yeah.

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Speaker 1: One of the things we hate the most about five

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Speaker 1: nine plans is how inflexible they can become. And if

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Speaker 1: they have more flexibility, if you can roll it over

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Speaker 1: into a roth Ira, that's going to change the dynamics

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Speaker 1: of how we feel about that account in general. But yeah,

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Speaker 1: likely said, we'll update you, hopefully with more on this

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Speaker 1: front soon. Lots of proposed changes, nothing uh firmly set yet,

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Speaker 1: but now we've got more to get to, including we're

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Speaker 1: gonna talk about some new headwinds facing real estate investors.

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Speaker 1: We'll get to that and more right after this. All right,

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Speaker 1: we are back from the break which means it is

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Speaker 1: officially time now on our Friday flight to get to

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Speaker 1: our ludicrous headline of the week. And this headline came

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Speaker 1: from the Atlantic, the lie of consumer convenience. I don't

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Speaker 1: like to be in line to Matt, I don't. I

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Speaker 1: don't know either, man. This is gonna be a good

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Speaker 1: one actually. So I love this article because it kind

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Speaker 1: of calls into questions something most of society, most of

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Speaker 1: us today has seen, a sort of like this unquestionable good,

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Speaker 1: which is modern apps on our phones and services that

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Speaker 1: make our lives incredibly convenient. I'm sure this probably sounds

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Speaker 1: pretty familiar, right, Like, if anyone out there, if they've

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Speaker 1: tried some of these services and they purport to save

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Speaker 1: you time, and they say they save you hassle talking

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Speaker 1: about apps like instat cart if so, you've probably found

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Speaker 1: it to be you know, maybe like it works, you

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Speaker 1: actually got some groceries, you found it to be pretty novel,

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Speaker 1: maybe you found it to be meat. But also at

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Speaker 1: the same time, uh, there's a good chance you found

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Speaker 1: it to be lacking. There's probably a good chance he

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Speaker 1: didn't get all of the goods that you wanted to

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Speaker 1: get in the grocery, right, some of the substitutions were

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Speaker 1: just whacking that. That's the biggest complaint I've heard about

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Speaker 1: so many of those services is that somebody says, like

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Speaker 1: I ordered pickles and they gave me cucumbers, and it's like,

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Speaker 1: I know that the same thing, but they're not the

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Speaker 1: same thing originally the vegetable, yes, but completely different. Yeah.

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Speaker 1: At one point in the article, the writer asked the question,

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Speaker 1: have all of these on demand services that have come

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Speaker 1: to dominate our lives, have they actually made them better

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Speaker 1: or have they just created the illusion of efficiency. I

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Speaker 1: think that's a great question. I think it's one worth

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Speaker 1: wrestling with because oftentimes these these apps and these services

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Speaker 1: that we sign up for the free trials are oftentimes

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Speaker 1: more trouble than they're actually worth. Yeah. Yeah, I mean,

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Speaker 1: I think if these apps are working for individual listeners

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Speaker 1: out there, more power to you. But I think the

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Speaker 1: reality and and what this writer was getting through in

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Speaker 1: this article is that they do promise something and then

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Speaker 1: they rarely deliver what they're promising, and or it's just

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Speaker 1: like it's a subpar version of whatever it is at

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Speaker 1: the promise, and so you're like, I'm going to get

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Speaker 1: out of going to the grocery store, but no you're

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Speaker 1: not because there's a few things that the shopper buying

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Speaker 1: on the instant cart that they missed, and so you

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Speaker 1: still have to go to the grocery store to pickos

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Speaker 1: items up. And it's a big paint not to mention

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Speaker 1: that service has costing you a pretty penny at the

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Speaker 1: same time, but it's not delivering in the way that

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Speaker 1: you hoped it would. And so yeah, we would say

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Speaker 1: that we think that there can be value to paying

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Speaker 1: for convenience in some circumstances. So there's a reason most

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Speaker 1: of us have upgraded from using our two feet to

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Speaker 1: get everywhere two bikes and cars. It's worth the expands

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Speaker 1: because we're able to get places more quickly. You don't

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Speaker 1: have the d y everything in your life to be frugal.

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Speaker 1: But there's also this subtle line, right that this article

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Speaker 1: draws helpful attention to that that these services they overpromised,

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Speaker 1: they under deliver, and we're told that they're going to

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Speaker 1: make our lives easier, so we can kick up our feet,

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Speaker 1: we can take a break, take a sip, eliminade, read

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Speaker 1: a book, whatever it is, paying just a few extra

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Speaker 1: bucks to have our grocers delivered. Wow, how nice is

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Speaker 1: this going to be? And how much more free time

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Speaker 1: is it gonna add to our schedule? But now is

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Speaker 1: just a great time to reassess whether or not these

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Speaker 1: services that we're paying for that claim to make our

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Speaker 1: lives easier, whether they're actually paying dividends or not. I

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Speaker 1: think it's great to revisit from time to time instead

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Speaker 1: of blindly continuing to pay for a service that maybe

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Speaker 1: isn't providing as much value in your life as you

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Speaker 1: thought it was going to. And the writer of the author,

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Speaker 1: she she talks about how off times it seems like

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Speaker 1: what we're striving for is control. It seems like that

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Speaker 1: there's maybe a higher level level of accountability because maybe

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Speaker 1: we have the ability to rate somebody who delivers us

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Speaker 1: the groceries or chooses to skip the thing that they

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Speaker 1: can't find. Uh. It's also kind of funny that she

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Speaker 1: mentioned how she never leaves a bad review, and so

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Speaker 1: it's like the one thing that actually did give you control,

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Speaker 1: you're completely relinquishing, but you're too soft, you're too nice

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Speaker 1: to do it. Yeah, you're too nice. But I think

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Speaker 1: I know bad review for me is like three stars,

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Speaker 1: May and it's hard for me to even go there.

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Speaker 1: But another aspect of control that it makes me think

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Speaker 1: of is it seems like maybe the entire generation of

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Speaker 1: folks who are maybe the prime users of these different apps,

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Speaker 1: seem to be wanting like more control over the type

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Speaker 1: of communication that it takes two to interact with some

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Speaker 1: of these different services. Right, Because you could hail a

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Speaker 1: taxi where you wave your hand and you look at

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Speaker 1: somebody and you tell them more to go, as opposed

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Speaker 1: to just pushing a button on your screen, whether it's groceries,

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Speaker 1: you know, you could totally go in there and do

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Speaker 1: that yourself, as opposed to selecting boxes of the different

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Speaker 1: items you want, or at like a house cleaner, right,

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Speaker 1: like actually talking to somebody getting a quote, You talked

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Speaker 1: to them on the phone, they come out to your

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Speaker 1: house asking a friend for a reference. Yeah, And so

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Speaker 1: in all these instances, it's like there's a desire almost

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Speaker 1: to remove the humanity from some of these personal, uh,

431
00:20:12,760 --> 00:20:15,080
Speaker 1: face to face interactions, you know. And in that way,

432
00:20:15,119 --> 00:20:18,960
Speaker 1: I feel like maybe actual human connection, which is typically

433
00:20:18,960 --> 00:20:21,840
Speaker 1: a more robust form of communication, is just getting underrated.

434
00:20:22,160 --> 00:20:24,919
Speaker 1: And it seems like these platforms and the software that

435
00:20:25,000 --> 00:20:27,080
Speaker 1: is going to alleviate all these problems, but in reality

436
00:20:27,080 --> 00:20:29,680
Speaker 1: it's leading to more frustration. Yeah, I think that's true

437
00:20:29,800 --> 00:20:32,359
Speaker 1: on a lot of fronts. And again, paying for convenience

438
00:20:32,359 --> 00:20:34,960
Speaker 1: can make sense, right, like lives are busy, and things

439
00:20:35,000 --> 00:20:37,640
Speaker 1: that can allow us can actually free up some extra

440
00:20:37,640 --> 00:20:39,320
Speaker 1: time in our lives. Like sometimes it's worth paying for

441
00:20:39,320 --> 00:20:41,320
Speaker 1: those things, but you gotta know what the tradeoff is.

442
00:20:41,400 --> 00:20:45,200
Speaker 1: And you also have to think long and hard about

443
00:20:45,240 --> 00:20:47,600
Speaker 1: whether or not the comedians that's being promised is being delivered.

444
00:20:47,960 --> 00:20:49,680
Speaker 1: And and on a related note, by the way, Matt

445
00:20:49,720 --> 00:20:52,359
Speaker 1: Barry Weiss's new site, The Free Press had an article

446
00:20:52,520 --> 00:20:55,879
Speaker 1: on how frustrating and ubiquitous planned obts a lescence just

447
00:20:56,000 --> 00:20:57,919
Speaker 1: becoming And I loved the title of this piece. It

448
00:20:58,000 --> 00:21:00,680
Speaker 1: was called oh Holy crap, which this time of the

449
00:21:00,760 --> 00:21:03,399
Speaker 1: year is is fitting. But I can relate to the

450
00:21:03,440 --> 00:21:07,760
Speaker 1: author's frustrations with cheap goods that unravel or break in

451
00:21:07,800 --> 00:21:09,879
Speaker 1: what feels like no time flat. And you know, you

452
00:21:09,920 --> 00:21:11,960
Speaker 1: and I we talked about how to avoid the trap

453
00:21:12,000 --> 00:21:15,280
Speaker 1: of planned obsolescence backing episode to sixty six. But if

454
00:21:15,320 --> 00:21:16,719
Speaker 1: you want the t LDR right, if you don't want

455
00:21:16,720 --> 00:21:18,520
Speaker 1: to go back and listen necessarily, we would say it's

456
00:21:18,520 --> 00:21:20,399
Speaker 1: important to do more research on the front end before

457
00:21:20,520 --> 00:21:24,119
Speaker 1: making a purchase, to repair items that you own whenever

458
00:21:24,160 --> 00:21:26,719
Speaker 1: you can, to buy more good second hand to begin with,

459
00:21:26,760 --> 00:21:29,679
Speaker 1: and then to own less stuf in general. There we

460
00:21:29,720 --> 00:21:34,600
Speaker 1: can't do anything necessarily as a whole about the reality

461
00:21:34,960 --> 00:21:38,480
Speaker 1: that some of our appliances, washing machines, refrigerators, dryers or whatever,

462
00:21:38,560 --> 00:21:40,560
Speaker 1: they're not being made as well as they used to be.

463
00:21:40,640 --> 00:21:43,919
Speaker 1: But we can be better shoppers and shop less often, um,

464
00:21:44,040 --> 00:21:47,240
Speaker 1: but plan obsolescence. It's annoying, but it's something I think

465
00:21:47,240 --> 00:21:50,400
Speaker 1: that we can avoid at least to some degree. That's right.

466
00:21:50,440 --> 00:21:53,560
Speaker 1: But companies they still want you to buy their crap. Right,

467
00:21:53,840 --> 00:21:56,040
Speaker 1: And I'm sure you've noticed this trend. But email marketing

468
00:21:56,320 --> 00:22:00,399
Speaker 1: it's becoming even more intrusive. The Washington Post there about

469
00:22:00,400 --> 00:22:03,840
Speaker 1: how some companies out there are basically abusing you, or

470
00:22:03,840 --> 00:22:06,399
Speaker 1: at least your inbox, in an attempt to get you

471
00:22:06,400 --> 00:22:09,639
Speaker 1: to spend more money. Information from HubSpot found that thirty

472
00:22:09,680 --> 00:22:11,639
Speaker 1: three percent of marketers are sending you an email at

473
00:22:11,720 --> 00:22:14,440
Speaker 1: least once a week. Some retailers out there, like bed,

474
00:22:14,480 --> 00:22:17,240
Speaker 1: Bath and Beyond, they're sending multiple emails in a single day.

475
00:22:17,240 --> 00:22:20,840
Speaker 1: How many coupons do I need? Matt uh. And I'm

476
00:22:20,840 --> 00:22:24,760
Speaker 1: not against receiving emails, but like be strategic and how

477
00:22:24,760 --> 00:22:28,200
Speaker 1: it does that you're signing up for for different emails

478
00:22:28,200 --> 00:22:30,800
Speaker 1: and notifications about discounts, but especially like if you're if

479
00:22:30,800 --> 00:22:33,080
Speaker 1: you're shopping for something, like I want to receive the information,

480
00:22:33,119 --> 00:22:34,800
Speaker 1: like I want that to be something that's on my radar.

481
00:22:35,080 --> 00:22:38,600
Speaker 1: But sometimes like you'll just put something in your cart

482
00:22:38,760 --> 00:22:40,959
Speaker 1: at check out you haven't signed up for anything. Then

483
00:22:40,960 --> 00:22:42,959
Speaker 1: you'll get an email that sucks that annoys me when

484
00:22:42,960 --> 00:22:44,919
Speaker 1: you go, I think that's a bad marketing practice. And

485
00:22:44,920 --> 00:22:47,479
Speaker 1: then on top of that, if they're abusing your inbox,

486
00:22:47,560 --> 00:22:49,800
Speaker 1: it's time to unsubscribe as much as possible. I think

487
00:22:49,800 --> 00:22:51,400
Speaker 1: we've got to get these things out of our inbox,

488
00:22:51,560 --> 00:22:54,199
Speaker 1: one because they're annoying and two because they cause us

489
00:22:54,240 --> 00:22:57,000
Speaker 1: to spend money that we other that we otherwise wouldn't.

490
00:22:57,200 --> 00:22:59,760
Speaker 1: And so yeah, just you can do that manually hit

491
00:22:59,760 --> 00:23:03,639
Speaker 1: on subscribe um through Gmail or wherever you you know,

492
00:23:03,720 --> 00:23:05,840
Speaker 1: get your email, or you can use a tool like

493
00:23:05,960 --> 00:23:08,400
Speaker 1: unrolled out me, which can help you tackle that task

494
00:23:08,440 --> 00:23:10,199
Speaker 1: more quickly. You're not like one off hitting it, but

495
00:23:10,240 --> 00:23:12,520
Speaker 1: you're like unsubscribing to a bunch of things at once.

496
00:23:12,600 --> 00:23:14,240
Speaker 1: I think that that can help. That can go a

497
00:23:14,280 --> 00:23:17,399
Speaker 1: long way. And for a lot of people, man, fewer

498
00:23:17,440 --> 00:23:21,280
Speaker 1: emails is a good thing, and fewer temptations to buy

499
00:23:21,320 --> 00:23:23,520
Speaker 1: things just because they're discounted is a good thing too.

500
00:23:23,680 --> 00:23:26,600
Speaker 1: Most definitely. Uh, let's get to our last story for today.

501
00:23:26,640 --> 00:23:28,960
Speaker 1: The Journal they had an article this week about how

502
00:23:29,160 --> 00:23:32,000
Speaker 1: the rental property game is changing, and it's definitely true.

503
00:23:32,040 --> 00:23:34,719
Speaker 1: It's it's harder to make the numbers work now when

504
00:23:34,720 --> 00:23:37,320
Speaker 1: you're considering buying a home in order to start your

505
00:23:37,320 --> 00:23:43,439
Speaker 1: own personal mom and pop landlord operation. Back in fourteen,

506
00:23:43,560 --> 00:23:46,240
Speaker 1: like after the Great Recession, it was almost like shooting

507
00:23:46,240 --> 00:23:48,760
Speaker 1: fish in a barrel, right, And if you're looking to

508
00:23:48,760 --> 00:23:51,280
Speaker 1: to get a solid rental property even two or three

509
00:23:51,359 --> 00:23:53,919
Speaker 1: years ago, it was possible if you knew what you

510
00:23:53,960 --> 00:23:55,920
Speaker 1: were looking for, if you knew what you were doing.

511
00:23:56,520 --> 00:23:59,000
Speaker 1: Now it's it's harder to make the numbers work because

512
00:23:59,040 --> 00:24:03,000
Speaker 1: of higher price is higher interest rates. They've caused many

513
00:24:03,000 --> 00:24:05,639
Speaker 1: folks to to now sit on the sidelines. Um not

514
00:24:05,680 --> 00:24:09,000
Speaker 1: to mention like repair and maintenance costs are rising as well.

515
00:24:09,240 --> 00:24:12,399
Speaker 1: With the increased costs of goods. So we're not saying

516
00:24:12,440 --> 00:24:16,320
Speaker 1: that like that it's impossible to snag a solid investment

517
00:24:16,359 --> 00:24:19,080
Speaker 1: property to to snag a solid rental one that that

518
00:24:19,160 --> 00:24:21,720
Speaker 1: makes sense for you over the long haul. But due

519
00:24:21,760 --> 00:24:24,440
Speaker 1: diligence is going to be more important now than ever

520
00:24:24,640 --> 00:24:27,159
Speaker 1: to make sure you're crunching the numbers so that this

521
00:24:27,280 --> 00:24:29,879
Speaker 1: property is gonna work for you. When we talked about

522
00:24:30,000 --> 00:24:33,400
Speaker 1: financial flexibility recently, Matt, that's one of those things it's like, well, yeah,

523
00:24:33,720 --> 00:24:36,639
Speaker 1: buying rental properties makes more sense than some environments than others,

524
00:24:36,640 --> 00:24:39,040
Speaker 1: and you have to be willing to adjust according to

525
00:24:39,160 --> 00:24:41,480
Speaker 1: market conditions. And it's also just important to know what

526
00:24:41,480 --> 00:24:44,400
Speaker 1: you're getting into because rental properties, yeah, sure they can

527
00:24:44,440 --> 00:24:47,679
Speaker 1: be profitable, but you know they also have the elements

528
00:24:47,680 --> 00:24:50,000
Speaker 1: of a part time job many many times. And so

529
00:24:50,280 --> 00:24:52,679
Speaker 1: we still think that investing in renuntal properties can be

530
00:24:52,720 --> 00:24:55,199
Speaker 1: a great way to build wealth, but be warned right

531
00:24:55,240 --> 00:24:57,119
Speaker 1: that you might be looking for a long time before

532
00:24:57,160 --> 00:25:00,400
Speaker 1: you find one that makes financial sense, where the numbers account,

533
00:25:00,600 --> 00:25:02,480
Speaker 1: where you feel like it's actually going to make sense,

534
00:25:02,480 --> 00:25:05,120
Speaker 1: it's gonna be profitable over the long run, and it's

535
00:25:05,119 --> 00:25:07,159
Speaker 1: not going to take you for a ride in the

536
00:25:07,160 --> 00:25:09,480
Speaker 1: short run either. And so if you're looking to get

537
00:25:09,520 --> 00:25:12,080
Speaker 1: into the vacation rental market, by the way, that's not

538
00:25:12,160 --> 00:25:15,560
Speaker 1: as advertising as it's been either. Economic headwinds and inflation

539
00:25:15,600 --> 00:25:18,359
Speaker 1: appear to be impacting vacation rental owners too. So if

540
00:25:18,359 --> 00:25:19,879
Speaker 1: you were like, hey, I'm gonna buy this property and

541
00:25:19,920 --> 00:25:23,600
Speaker 1: turn it into an airbnb, while there are extra considerations

542
00:25:23,640 --> 00:25:27,200
Speaker 1: that you need to think through before you take the plunge,

543
00:25:27,400 --> 00:25:30,440
Speaker 1: and the number of listings on those sites are up,

544
00:25:30,680 --> 00:25:32,760
Speaker 1: which means that the average number of bookings a host

545
00:25:32,800 --> 00:25:35,920
Speaker 1: receives per month are down. There's just more competition there.

546
00:25:36,160 --> 00:25:38,560
Speaker 1: Basically basic supply and demand. I think I saw like

547
00:25:38,600 --> 00:25:42,200
Speaker 1: at the peak there's something like eighty thousand new additional

548
00:25:42,200 --> 00:25:44,600
Speaker 1: short term rental properties coming on the market. Yeah every

549
00:25:44,600 --> 00:25:46,879
Speaker 1: single month. Wow. Yeah, that's crazy, and that's going to

550
00:25:46,960 --> 00:25:48,760
Speaker 1: impact you if you have one, and so you have

551
00:25:48,800 --> 00:25:52,000
Speaker 1: to have extra margin built in knowing that supply demand

552
00:25:52,040 --> 00:25:54,000
Speaker 1: is going to shift over time. The same thing is

553
00:25:54,000 --> 00:25:56,280
Speaker 1: true if you're like record rents. This is great as

554
00:25:56,280 --> 00:25:58,960
Speaker 1: a landlord, but you also have to take into account

555
00:25:59,359 --> 00:26:02,280
Speaker 1: increasing cause us in other areas and the reality that

556
00:26:02,320 --> 00:26:04,479
Speaker 1: those rents might not stay where they are forever. So

557
00:26:04,600 --> 00:26:06,159
Speaker 1: just another reason, by the way, to make sure that

558
00:26:06,200 --> 00:26:09,560
Speaker 1: you've got plenty of margin, a strong financial backstop before

559
00:26:09,560 --> 00:26:11,920
Speaker 1: you opt to buy a property, whether it's short term

560
00:26:11,920 --> 00:26:14,360
Speaker 1: more for long term leasing. That's right, of course, if

561
00:26:14,400 --> 00:26:17,680
Speaker 1: you are a guest looking at different properties, this is

562
00:26:17,720 --> 00:26:21,120
Speaker 1: a good thing, right like this means more competition, more

563
00:26:21,200 --> 00:26:25,320
Speaker 1: options available for you at hopefully reasonable prices. But if

564
00:26:25,320 --> 00:26:28,240
Speaker 1: you switch over to host view, uh, this is gonna

565
00:26:28,280 --> 00:26:31,119
Speaker 1: be uh, it's gonna be more challenging. Again, not that

566
00:26:31,160 --> 00:26:33,720
Speaker 1: it's not possible to, you know, house hack or find

567
00:26:33,760 --> 00:26:36,920
Speaker 1: ways to make your short term rental make money for you,

568
00:26:37,160 --> 00:26:39,720
Speaker 1: but the numbers just they may not be quite as juicy,

569
00:26:39,760 --> 00:26:41,680
Speaker 1: They may not be quite as nice as they used

570
00:26:41,680 --> 00:26:43,680
Speaker 1: to be a few years ago before. There is a

571
00:26:43,720 --> 00:26:46,760
Speaker 1: massive marketing put push to get more folks to host property,

572
00:26:47,880 --> 00:26:49,320
Speaker 1: but generally is big, and we think it's a good thing.

573
00:26:49,359 --> 00:26:51,840
Speaker 1: We think it's great that an individual can choose to

574
00:26:52,040 --> 00:26:53,880
Speaker 1: rent out a room or rent out a house while

575
00:26:53,920 --> 00:26:55,679
Speaker 1: they're on vacation. We think that that can be a

576
00:26:55,720 --> 00:26:59,639
Speaker 1: really smart use of the resources that are under your ownership.

577
00:27:00,200 --> 00:27:02,640
Speaker 1: But if you are counting on some of these high rents,

578
00:27:02,640 --> 00:27:04,199
Speaker 1: some of these high numbers. We just want to make

579
00:27:04,240 --> 00:27:06,680
Speaker 1: sure that you're Yeah, maybe you're crunching the numbers twice

580
00:27:07,119 --> 00:27:09,480
Speaker 1: and allowing for a little more margin than what you

581
00:27:09,520 --> 00:27:12,040
Speaker 1: were initially expecting. I think this is smart. Yeah, be

582
00:27:12,119 --> 00:27:15,360
Speaker 1: slightly pessimistic. Don't plan for perfection, right, You don't want

583
00:27:15,359 --> 00:27:18,120
Speaker 1: to be a perpetual optimist. If you're taking on an

584
00:27:18,119 --> 00:27:21,600
Speaker 1: obligation like a short term or long term rental, you

585
00:27:21,640 --> 00:27:23,520
Speaker 1: want to have your eyes wide open and be a

586
00:27:23,560 --> 00:27:25,760
Speaker 1: little more realistic than often. You want to be a realists.

587
00:27:25,840 --> 00:27:28,480
Speaker 1: That's right, man. Um. Well, hey, this is our last

588
00:27:28,480 --> 00:27:31,040
Speaker 1: episode before Christmas, so if you celebrate Christmas, we want

589
00:27:31,040 --> 00:27:34,000
Speaker 1: to wish everybody out there a merry Christmas and we

590
00:27:34,080 --> 00:27:37,600
Speaker 1: hope you are staying warm. You can finding of the

591
00:27:37,640 --> 00:27:40,000
Speaker 1: resources we may have mentioned during this episode up on

592
00:27:40,000 --> 00:27:42,160
Speaker 1: our website at how to money dot com. Of course,

593
00:27:42,160 --> 00:27:44,399
Speaker 1: we'll see you back here on Monday for an ask

594
00:27:44,560 --> 00:27:47,120
Speaker 1: htm episode Know It and congrats again too. The book

595
00:27:47,119 --> 00:27:49,640
Speaker 1: winners of the Money and Love Book, we'll get those

596
00:27:49,760 --> 00:27:52,600
Speaker 1: shipped out to you shortly. And yeah, there's more giveaways

597
00:27:52,600 --> 00:27:55,199
Speaker 1: to come in Matt for Shack, We've got more more

598
00:27:55,200 --> 00:27:56,719
Speaker 1: of those socks hanging around that we gotta get out.

599
00:27:56,720 --> 00:28:00,280
Speaker 1: We've got to get those socks out. They're delicious, they're well,

600
00:28:00,600 --> 00:28:03,560
Speaker 1: they look amazing. Socks aren't delicious, not edible, not like, yeah,

601
00:28:03,600 --> 00:28:05,720
Speaker 1: well what we should get somehow of money edible underwear.

602
00:28:05,720 --> 00:28:10,400
Speaker 1: That's for all the all the freaks out there. We'll

603
00:28:10,440 --> 00:28:14,440
Speaker 1: consider it. And on that note, Mary Christmas. All right, well,

604
00:28:14,480 --> 00:28:17,480
Speaker 1: we'll see you later, Matt. Until next time, Best friends out,

605
00:28:17,520 --> 00:28:18,480
Speaker 1: Best friends Out,