1 00:00:00,080 --> 00:00:02,800 Speaker 1: Welcome to How the Money. I'm Joel, I'm Matt, and 2 00:00:02,840 --> 00:00:06,800 Speaker 1: today we're talking deadly debt, housing, crash hopes, and the 3 00:00:06,840 --> 00:00:26,960 Speaker 1: expensive American dream. 4 00:00:27,080 --> 00:00:29,479 Speaker 2: Yeah, you know, give an inflation, everything costs more than 5 00:00:29,520 --> 00:00:31,840 Speaker 2: it used to, Joel, but the American dream and your dreams, 6 00:00:32,320 --> 00:00:35,239 Speaker 2: it kind of feels like something that shouldn't shouldn't cost more. 7 00:00:35,280 --> 00:00:36,239 Speaker 2: But we will talk about that. 8 00:00:36,280 --> 00:00:38,519 Speaker 1: This is if I start actually getting charged for dreaming, 9 00:00:38,720 --> 00:00:39,960 Speaker 1: I'm gonna have to talk to somebody about that. 10 00:00:40,080 --> 00:00:42,840 Speaker 2: That's silly. This is our Friday Light though. We're gonna 11 00:00:42,840 --> 00:00:46,080 Speaker 2: talk about the stories that A are either the most 12 00:00:46,080 --> 00:00:48,720 Speaker 2: interesting stories to us or be the ones that also 13 00:00:48,920 --> 00:00:51,640 Speaker 2: apply to your finances the most the ones that we 14 00:00:51,680 --> 00:00:55,080 Speaker 2: think you need to be paying attention to. A. Did 15 00:00:55,120 --> 00:00:58,360 Speaker 2: you want to talk about Shohi Watani? Yeah, and I'll 16 00:00:58,360 --> 00:00:59,200 Speaker 2: get a baseball note here. 17 00:00:59,280 --> 00:01:02,200 Speaker 1: We're not turning into the sports podcast, I promise, but 18 00:01:02,560 --> 00:01:05,000 Speaker 1: the the sho Hey Otani contract. Even if you don't 19 00:01:05,000 --> 00:01:06,680 Speaker 1: care about baseball. I think I said show hey. 20 00:01:06,959 --> 00:01:08,760 Speaker 2: I That's what I'm saying. I don't watch baseball, so 21 00:01:08,840 --> 00:01:10,760 Speaker 2: I just read it and I see show he Yeah, 22 00:01:10,959 --> 00:01:14,600 Speaker 2: I think show Hey, but show hey Otani Japanese player 23 00:01:14,680 --> 00:01:16,759 Speaker 2: plays two ways, pitches and hits. 24 00:01:17,680 --> 00:01:19,800 Speaker 1: I mean, he's a phenom. Nobody does that in baseball, 25 00:01:19,840 --> 00:01:22,200 Speaker 1: like a modern day bab Ruth pretty much. Yeah, yeah, 26 00:01:22,240 --> 00:01:25,360 Speaker 1: and so and people specialize in baseball. Now, so this guy, 27 00:01:25,520 --> 00:01:27,759 Speaker 1: because he does both, and he does them both incredibly well, 28 00:01:27,840 --> 00:01:30,280 Speaker 1: it's just massively impressive. And he just got met the 29 00:01:30,280 --> 00:01:34,040 Speaker 1: biggest contract in baseball history, seven hundred million million dollars. 30 00:01:34,560 --> 00:01:38,360 Speaker 1: But and here's why we're talking about it. The way 31 00:01:38,400 --> 00:01:42,280 Speaker 1: he constructed this contract is fascinating. He's only getting paid 32 00:01:42,440 --> 00:01:44,960 Speaker 1: two million dollars a year for the next ten years. 33 00:01:44,760 --> 00:01:48,560 Speaker 2: Much less than seven hundred million headline. 34 00:01:48,600 --> 00:01:51,400 Speaker 1: Now, yeah, he's deferring a huge chart of that sixty 35 00:01:51,440 --> 00:01:54,120 Speaker 1: eight million dollar payments for basically the decade after that. 36 00:01:54,200 --> 00:01:57,080 Speaker 1: So I thought this was just interesting from a couple 37 00:01:57,120 --> 00:02:00,160 Speaker 1: of perspectives. One, the Dodgers are kind of participating and 38 00:02:00,240 --> 00:02:03,160 Speaker 1: by now pay later. They're saying, like, we want the 39 00:02:03,160 --> 00:02:06,120 Speaker 1: Otani now, but we'll pay the price down the road. 40 00:02:06,320 --> 00:02:08,040 Speaker 1: And this is going to allow them to amass a 41 00:02:08,240 --> 00:02:10,240 Speaker 1: better team, I think, be able to pay other players 42 00:02:10,280 --> 00:02:12,120 Speaker 1: and bring in and have just they've already got an 43 00:02:12,120 --> 00:02:16,679 Speaker 1: incredible team. But what are your thoughts on shohes kind 44 00:02:16,720 --> 00:02:19,679 Speaker 1: of way of thinking about this that he's saying, Hey, listen, yeah, 45 00:02:19,680 --> 00:02:21,920 Speaker 1: I want the big contract, but I don't mind getting paid. 46 00:02:21,919 --> 00:02:23,800 Speaker 2: The baby till till later. Yeah. So, I mean there 47 00:02:23,880 --> 00:02:26,880 Speaker 2: is a lot of focus on the numbers, right, They're like, oh, well, 48 00:02:26,919 --> 00:02:29,280 Speaker 2: he grew up in Japan's zero percent inflation over there, 49 00:02:29,360 --> 00:02:32,520 Speaker 2: so for him, the money ten twenty years down the line, 50 00:02:32,560 --> 00:02:35,240 Speaker 2: it's gonna be worth to him the same amount. But 51 00:02:35,280 --> 00:02:37,760 Speaker 2: then you've got the future value of money coming into play, 52 00:02:37,760 --> 00:02:39,440 Speaker 2: and it's just like, well, what if you have that money, 53 00:02:39,480 --> 00:02:41,720 Speaker 2: you would be able to invest it. I don't at 54 00:02:41,720 --> 00:02:42,840 Speaker 2: the end of the day, I don't think he really 55 00:02:42,880 --> 00:02:45,880 Speaker 2: cares about the money, because I think I've read somewhere 56 00:02:46,040 --> 00:02:49,200 Speaker 2: he's making like forty million a year in endorsement deal, 57 00:02:49,639 --> 00:02:52,080 Speaker 2: and so for him, it's like it doesn't really matter. 58 00:02:52,160 --> 00:02:54,560 Speaker 2: And so what I truly think is that he's doing 59 00:02:54,639 --> 00:02:57,520 Speaker 2: it for speaking of baseball, for the love of the game, 60 00:02:57,960 --> 00:03:00,600 Speaker 2: Like he literally the ability for the Dog to free 61 00:03:00,680 --> 00:03:03,440 Speaker 2: up more of their payroll to bring in other players, 62 00:03:03,480 --> 00:03:05,040 Speaker 2: because like, when you're at the top of the game 63 00:03:05,080 --> 00:03:06,640 Speaker 2: like that, what you want to do is freaking win 64 00:03:07,120 --> 00:03:09,720 Speaker 2: and for him to be able to Like, he's the 65 00:03:09,720 --> 00:03:12,679 Speaker 2: one that suggested this contract to the Dodgers. This wasn't 66 00:03:12,720 --> 00:03:16,880 Speaker 2: the first time he shopped this idea around. The Dodgers 67 00:03:16,880 --> 00:03:18,799 Speaker 2: were the first one to take it. But this allows 68 00:03:18,880 --> 00:03:20,560 Speaker 2: him to have a better chance at winning. And I 69 00:03:20,560 --> 00:03:22,480 Speaker 2: think that's all that really matters to him. Money. 70 00:03:23,200 --> 00:03:24,799 Speaker 1: He's fine with the money. He doesn't really care about 71 00:03:24,800 --> 00:03:26,120 Speaker 1: the money. He just wants to stink and win. Once 72 00:03:26,120 --> 00:03:28,040 Speaker 1: you get to a certain point, do you really need more? 73 00:03:28,160 --> 00:03:30,800 Speaker 2: Right? Exactly? Yeah, yeah, exactly. And so I think for 74 00:03:30,919 --> 00:03:33,040 Speaker 2: him it's a massive win, I asked, dude. I also 75 00:03:33,040 --> 00:03:35,000 Speaker 2: think it's a win for the Dodgers as well, because, 76 00:03:35,360 --> 00:03:38,280 Speaker 2: like you mentioned, the buy now, pay later sort of standpoint, 77 00:03:38,320 --> 00:03:41,720 Speaker 2: and I view it less through a consumption lens and 78 00:03:41,880 --> 00:03:45,440 Speaker 2: more through a like an investment lens. And here, and 79 00:03:45,520 --> 00:03:46,920 Speaker 2: I know you might push back on that a little 80 00:03:46,920 --> 00:03:48,640 Speaker 2: bit because you're like, what is an investment or not? Well, 81 00:03:48,680 --> 00:03:50,440 Speaker 2: they've already sad a ton of jerseys, I'll tell you that, 82 00:03:50,440 --> 00:03:52,080 Speaker 2: So you've got that going on. But it makes me 83 00:03:52,160 --> 00:03:55,720 Speaker 2: think about what's something that we financed today a house, right, like, 84 00:03:55,760 --> 00:03:58,600 Speaker 2: and we use mortgages in order to do that. The 85 00:03:58,680 --> 00:04:01,640 Speaker 2: Dodgers are essentially like many There haven't been a ton 86 00:04:01,680 --> 00:04:04,320 Speaker 2: of deals to this magnitude that have taken place like this. Yeah, 87 00:04:04,320 --> 00:04:06,800 Speaker 2: and so by the Dodgers doing this, they've kind of 88 00:04:06,800 --> 00:04:09,800 Speaker 2: got that first mover's advantage. So it makes me think 89 00:04:09,800 --> 00:04:12,520 Speaker 2: of So let's go back to housing. Imagine we lived 90 00:04:12,560 --> 00:04:14,880 Speaker 2: in the world where everybody bought their homes with via 91 00:04:14,920 --> 00:04:17,880 Speaker 2: cash paying cash right, prices of homes would be a 92 00:04:17,920 --> 00:04:21,440 Speaker 2: lot less. Now, imagine you were the first person ever 93 00:04:21,800 --> 00:04:24,440 Speaker 2: to get approved for a thirty year mortgage. You would 94 00:04:24,440 --> 00:04:25,919 Speaker 2: have the pick of the litter. You would literally be 95 00:04:25,920 --> 00:04:28,919 Speaker 2: able to buy any house you wanted, power and a 96 00:04:29,000 --> 00:04:31,600 Speaker 2: much nicer house. And that's going to be true. And 97 00:04:31,680 --> 00:04:34,240 Speaker 2: so everybody else also has thirty of your mortgages as well, 98 00:04:34,279 --> 00:04:36,640 Speaker 2: and then you revert back to some sort of normalcy. Well, 99 00:04:36,600 --> 00:04:38,360 Speaker 2: I say so for the Dodgers, I think this is 100 00:04:38,400 --> 00:04:41,120 Speaker 2: a killer smart move in a way for them to 101 00:04:41,120 --> 00:04:41,800 Speaker 2: totally crush it. 102 00:04:41,920 --> 00:04:44,080 Speaker 1: Yeah, the next decade. I think somebody asked me, Hey, 103 00:04:44,120 --> 00:04:46,160 Speaker 1: do you think that these kinds of contracts are going 104 00:04:46,200 --> 00:04:48,440 Speaker 1: to become the norm moving forward? I think the answer 105 00:04:48,480 --> 00:04:50,560 Speaker 1: is actually probably not. And why Well, it depends on 106 00:04:50,560 --> 00:04:52,960 Speaker 1: the success well, it depends on that, but it also 107 00:04:53,080 --> 00:04:55,520 Speaker 1: depends on the player because the player has to have 108 00:04:55,760 --> 00:04:59,880 Speaker 1: enough financial acumen to realize and the ability to f 109 00:05:00,080 --> 00:05:03,600 Speaker 1: their lifestyle on a greatly diminished salary in the here 110 00:05:03,640 --> 00:05:06,880 Speaker 1: and now, and all players are going to be superstars exactly. Well, 111 00:05:06,920 --> 00:05:09,080 Speaker 1: and even that, like, it's a lot of people want 112 00:05:09,080 --> 00:05:10,520 Speaker 1: their money. They want their money now, right, It's like 113 00:05:10,520 --> 00:05:13,600 Speaker 1: that show me the money Jerry McGuire mentality. So are 114 00:05:13,640 --> 00:05:15,280 Speaker 1: there going to be enough players who have this kind 115 00:05:15,279 --> 00:05:17,359 Speaker 1: of long term perspective that show Hayes got. I don't know, 116 00:05:17,400 --> 00:05:19,720 Speaker 1: but the contract's fascinating. It's going to be interesting to 117 00:05:19,760 --> 00:05:22,720 Speaker 1: see how the Dodgers do. And yeah, they're going to be. 118 00:05:22,880 --> 00:05:24,680 Speaker 2: See how they're not going to do great because they 119 00:05:24,720 --> 00:05:26,640 Speaker 2: really are going to be able to put together an 120 00:05:26,640 --> 00:05:29,560 Speaker 2: incredible squad. They're going to be reckoned. More teams will 121 00:05:29,560 --> 00:05:31,760 Speaker 2: start to take sort of this this approach to it 122 00:05:31,800 --> 00:05:34,200 Speaker 2: where they're saying, hey, we got to do this in 123 00:05:34,279 --> 00:05:36,040 Speaker 2: order to compete, and all of a sudden becomes the 124 00:05:36,120 --> 00:05:36,520 Speaker 2: new norm. 125 00:05:36,560 --> 00:05:39,080 Speaker 1: I will say, ten, twelve, fifteen years from now, though, 126 00:05:39,360 --> 00:05:41,760 Speaker 1: when they're paying show hey sixty eight million a year 127 00:05:42,040 --> 00:05:43,560 Speaker 1: and they don't have them on the field and they 128 00:05:43,640 --> 00:05:45,279 Speaker 1: still got to field the team it could get. 129 00:05:45,360 --> 00:05:47,480 Speaker 2: It could get tough to do. Yeah, tough times to 130 00:05:47,560 --> 00:05:50,600 Speaker 2: do Dodgers. Then yeah, it's like what's his name, Bobby, 131 00:05:51,200 --> 00:05:54,360 Speaker 2: It's like this but on like to the stero eightieth degree. 132 00:05:54,440 --> 00:05:57,279 Speaker 1: Yes, wire levels. So all right, enough baseball talk. Just 133 00:05:57,440 --> 00:05:59,320 Speaker 1: thought you guys might find that interesting. Let's move on 134 00:05:59,320 --> 00:06:01,359 Speaker 1: to the Friday flight. Let's start off by talking about 135 00:06:01,360 --> 00:06:03,479 Speaker 1: credit card debt for a second. There was a new 136 00:06:03,520 --> 00:06:06,599 Speaker 1: poll It found that credit cards are the biggest obstacle 137 00:06:06,920 --> 00:06:09,599 Speaker 1: to building wealth. Thirty nine percent of adults said that 138 00:06:09,640 --> 00:06:13,359 Speaker 1: credit card debt is their biggest threat to building wealth, which, Matt, 139 00:06:13,560 --> 00:06:16,280 Speaker 1: I think they're probably spot on, And actually I'm surprised 140 00:06:16,320 --> 00:06:18,240 Speaker 1: that the numbers are that low. What else is your 141 00:06:18,240 --> 00:06:20,640 Speaker 1: biggest threat to building wealth besides your credit card debt? 142 00:06:20,640 --> 00:06:20,920 Speaker 2: I don't know. 143 00:06:21,000 --> 00:06:25,479 Speaker 1: Maybe yourself, a lack of education, Yeah, your own consumption, Yeah, 144 00:06:25,520 --> 00:06:27,240 Speaker 1: your own habits, Perhaps that could be part of it. 145 00:06:27,480 --> 00:06:29,599 Speaker 1: But recurring credit card debt is it really is one 146 00:06:29,600 --> 00:06:31,920 Speaker 1: of the biggest hurdles to making progress with your finances. 147 00:06:32,240 --> 00:06:35,520 Speaker 1: And something like fifty percent of Americans are not following 148 00:06:35,760 --> 00:06:38,560 Speaker 1: the number one rule of plastic which is paying the 149 00:06:38,560 --> 00:06:41,360 Speaker 1: bill on time and in full. And so as a nation, 150 00:06:41,720 --> 00:06:43,960 Speaker 1: we owe more than a trillion dollars overall in credit 151 00:06:43,960 --> 00:06:45,960 Speaker 1: card debt, which is a big scary number, and we 152 00:06:46,040 --> 00:06:47,880 Speaker 1: dug into the numbers recently mount and it's not quite 153 00:06:47,920 --> 00:06:50,680 Speaker 1: as bad as it steams, although it's still bad. The 154 00:06:50,720 --> 00:06:53,520 Speaker 1: average balance is something like six thousand dollars. And let's 155 00:06:53,520 --> 00:06:55,840 Speaker 1: say you only pay the minimum amount each month at 156 00:06:55,880 --> 00:06:59,000 Speaker 1: a twenty percent interest rate, which is I would say 157 00:06:59,000 --> 00:07:01,880 Speaker 1: generous given this current environment. Twenty two is about the average. Sure, 158 00:07:01,920 --> 00:07:04,120 Speaker 1: it would take you more than seventeen years to pay 159 00:07:04,120 --> 00:07:05,960 Speaker 1: off that debt, and it would cost you more than 160 00:07:06,040 --> 00:07:09,240 Speaker 1: nine thousand dollars in interest. It's just hard to make 161 00:07:09,279 --> 00:07:11,600 Speaker 1: progress if you've got that millsdown around your neck. I 162 00:07:11,640 --> 00:07:14,080 Speaker 1: get why people say that credit cards are such an 163 00:07:14,080 --> 00:07:15,040 Speaker 1: obstacle for them. 164 00:07:15,120 --> 00:07:17,080 Speaker 2: Totally agree. Yeah, if you find yourself in credit card 165 00:07:17,160 --> 00:07:19,680 Speaker 2: debt and you're listening to this, we're not trying to 166 00:07:19,760 --> 00:07:22,560 Speaker 2: shame you necessarily, but we do want you to know though, 167 00:07:22,600 --> 00:07:25,040 Speaker 2: that this is a big deal. It's worse than basically 168 00:07:25,080 --> 00:07:28,280 Speaker 2: every other kind of debt out there, because like student 169 00:07:28,280 --> 00:07:30,360 Speaker 2: loans have gotten a lot of attention recently, right, But 170 00:07:30,400 --> 00:07:32,680 Speaker 2: at least in that case, you're getting a degree that 171 00:07:32,760 --> 00:07:36,640 Speaker 2: will earn you more money, more income, more lifetime earnings. 172 00:07:37,040 --> 00:07:39,920 Speaker 2: Or with mortgage debt, we're buying an appreciating asset that 173 00:07:40,000 --> 00:07:42,560 Speaker 2: puts a roof over our head. It's you know, what's 174 00:07:42,600 --> 00:07:46,400 Speaker 2: the hierarchy of needs that are out there, Shelter it's important. 175 00:07:46,400 --> 00:07:49,320 Speaker 2: Maslow thinks that one's important. But credit cards can be 176 00:07:49,480 --> 00:07:52,760 Speaker 2: a great tool if you're using them right. But we 177 00:07:52,800 --> 00:07:55,840 Speaker 2: want you to experience compounding interest in the positive direction. 178 00:07:56,320 --> 00:07:58,040 Speaker 2: We want you to be investing your money. We don't 179 00:07:58,080 --> 00:08:00,720 Speaker 2: want you forking over thousands of dollars to the credit 180 00:08:00,720 --> 00:08:03,560 Speaker 2: card company. Is where that interest is working against you. 181 00:08:03,800 --> 00:08:05,840 Speaker 2: That's not the situation we want to want you to 182 00:08:05,880 --> 00:08:07,960 Speaker 2: find yourself. So if you are in credit card debt, 183 00:08:07,960 --> 00:08:11,800 Speaker 2: we recommend the tool ondebt dot it. You in debt 184 00:08:12,000 --> 00:08:13,920 Speaker 2: dot it, check out that website. We'll link to it 185 00:08:13,960 --> 00:08:15,520 Speaker 2: in the show notes as well. But come up with 186 00:08:15,520 --> 00:08:17,280 Speaker 2: a plan to get rid of that debt, because, yeah, 187 00:08:17,840 --> 00:08:20,160 Speaker 2: credit card debt hanging over your head is a problem. 188 00:08:20,160 --> 00:08:22,000 Speaker 2: It's going to prevent you from being able to achieve 189 00:08:22,440 --> 00:08:24,600 Speaker 2: the financial goals that you've set out for yourself. It's 190 00:08:24,640 --> 00:08:26,080 Speaker 2: time to get rid of it, and get rid of 191 00:08:26,080 --> 00:08:28,679 Speaker 2: it quickly. Yep, all right, mat While we're talking about poles, 192 00:08:28,760 --> 00:08:30,400 Speaker 2: another one came out at the end of last week, 193 00:08:30,480 --> 00:08:33,199 Speaker 2: and it found that young folks want the housing market 194 00:08:33,240 --> 00:08:36,680 Speaker 2: to crash real bad. Fifty three percent of Gen z 195 00:08:36,800 --> 00:08:39,600 Speaker 2: ers and forty six percent of millennials, So basically, fifty 196 00:08:39,640 --> 00:08:42,880 Speaker 2: percent of people forty two and younger or whatever want 197 00:08:42,880 --> 00:08:46,040 Speaker 2: the market to tank. That's according to a Lending Tree pole. 198 00:08:46,520 --> 00:08:49,680 Speaker 2: Even many current homeowners want to see declines in prices. 199 00:08:49,720 --> 00:08:51,240 Speaker 2: So it's not just people who are like, I don't 200 00:08:51,240 --> 00:08:53,400 Speaker 2: own a home yet, I really want one, and dang it, 201 00:08:53,440 --> 00:08:55,800 Speaker 2: if the housing market would just crash thirty percent, I 202 00:08:55,800 --> 00:08:58,079 Speaker 2: could afford to buy one. Even people who already own 203 00:08:58,120 --> 00:08:59,800 Speaker 2: own a home kind of want the housing market to 204 00:08:59,800 --> 00:09:02,719 Speaker 2: take a dip. And it's because they said they want 205 00:09:02,720 --> 00:09:05,240 Speaker 2: their property tax bill to go down, which I can understand. Like, 206 00:09:05,240 --> 00:09:07,520 Speaker 2: if prices go down, property taxes go down. And a 207 00:09:07,559 --> 00:09:09,800 Speaker 2: lot of people were shocked last year when property tax 208 00:09:09,880 --> 00:09:13,040 Speaker 2: notices were sent out. But are we going to see 209 00:09:13,040 --> 00:09:16,760 Speaker 2: price declines? Are these hopes likely to become a reality. 210 00:09:17,040 --> 00:09:19,720 Speaker 2: It's hard to forecast the housing market. You know, we 211 00:09:19,880 --> 00:09:23,120 Speaker 2: talked about that with Lance Lambert this this week, but 212 00:09:23,679 --> 00:09:26,160 Speaker 2: I would say increasingly the answer is looking like, no, 213 00:09:26,280 --> 00:09:28,600 Speaker 2: I don't. We've kind of said that the whole time, 214 00:09:28,880 --> 00:09:31,120 Speaker 2: that we don't think that there's some sort of massive 215 00:09:31,160 --> 00:09:34,960 Speaker 2: correction in store. Minor corrections maybe, but massive ones probably not. Yeah, 216 00:09:35,280 --> 00:09:37,120 Speaker 2: I think if you've got to be careful what you 217 00:09:37,120 --> 00:09:39,320 Speaker 2: wish for as well, like for all the aspiring homeowners 218 00:09:39,360 --> 00:09:41,000 Speaker 2: out there, and you're thinking, oh, if only the market 219 00:09:41,000 --> 00:09:43,560 Speaker 2: would the housing market would crash, then I could afford 220 00:09:43,559 --> 00:09:46,040 Speaker 2: a home. Okay, let's roll back the clock a little 221 00:09:46,040 --> 00:09:47,719 Speaker 2: bit fifteen years. Let's get back in the way back 222 00:09:47,760 --> 00:09:50,320 Speaker 2: machine and look back to the Great Recession story time 223 00:09:50,360 --> 00:09:53,400 Speaker 2: with Matt when we saw a housing bubble pop, when 224 00:09:53,400 --> 00:09:56,360 Speaker 2: we saw housing affordability drop. Well, what happened Like the world, 225 00:09:56,520 --> 00:09:59,640 Speaker 2: our country was in a massive amount of hurt, dire straits, 226 00:10:00,040 --> 00:10:03,160 Speaker 2: and what also happened to a lot of jobs during 227 00:10:03,160 --> 00:10:05,760 Speaker 2: that period of time, They were eliminated. Millions of people 228 00:10:05,800 --> 00:10:09,200 Speaker 2: lost their jobs, which that actually makes it less feasible 229 00:10:09,280 --> 00:10:11,280 Speaker 2: to purchase a home. So all of a sudden, not 230 00:10:11,360 --> 00:10:14,840 Speaker 2: only do you can you not buy that nice little bungalow, 231 00:10:14,880 --> 00:10:16,880 Speaker 2: or that ranch that you've den iying. You don't even 232 00:10:16,880 --> 00:10:19,360 Speaker 2: have a job anymore, and so to think the job 233 00:10:19,400 --> 00:10:20,960 Speaker 2: is a crucial part of being able to afford the home, 234 00:10:21,000 --> 00:10:23,120 Speaker 2: it's so important. And the housing market is such a 235 00:10:23,120 --> 00:10:27,720 Speaker 2: big industry that man to actually hope that the housing 236 00:10:27,760 --> 00:10:30,840 Speaker 2: market crashes it feels a bit myopic. Yeah, little little 237 00:10:30,840 --> 00:10:32,760 Speaker 2: short sided sided in my opinion. 238 00:10:32,600 --> 00:10:35,240 Speaker 1: Took ownership of home back in and eight two thousand 239 00:10:35,240 --> 00:10:37,800 Speaker 1: and nine, like they couldn't give them away, almost like 240 00:10:37,840 --> 00:10:40,959 Speaker 1: think about how that's how I mean housing prices cratered. 241 00:10:41,040 --> 00:10:43,520 Speaker 1: But it was also there weren't many buyers out there either, 242 00:10:43,600 --> 00:10:46,800 Speaker 1: So I you're right, the housing market crash often comes 243 00:10:46,800 --> 00:10:49,040 Speaker 1: with other side effects that you don't want. 244 00:10:49,200 --> 00:10:51,520 Speaker 2: Yeah, and for those who are current homeowners too, and 245 00:10:51,520 --> 00:10:54,520 Speaker 2: you're upset about the fact that you're seenior property bill 246 00:10:55,360 --> 00:10:57,520 Speaker 2: on the rise, well A, well, you're either the one 247 00:10:57,520 --> 00:10:59,560 Speaker 2: who purchased that home and caused that price to be 248 00:11:00,360 --> 00:11:02,439 Speaker 2: to be what it is. But let's just assume you've 249 00:11:02,440 --> 00:11:04,600 Speaker 2: been there for ten to twenty years. You can always 250 00:11:04,640 --> 00:11:06,559 Speaker 2: appeal your tax bill, and that's something that we've talked 251 00:11:06,559 --> 00:11:08,680 Speaker 2: about on the show before as well. That's a legitimate 252 00:11:08,720 --> 00:11:10,800 Speaker 2: way for you to try to for you to try 253 00:11:10,800 --> 00:11:11,839 Speaker 2: to get your tax bill down. 254 00:11:11,920 --> 00:11:13,679 Speaker 1: Yeah, and there's you can diy that thing, don't have 255 00:11:13,720 --> 00:11:16,160 Speaker 1: to pay anybody a dime, and you can potentially save thousands. 256 00:11:16,240 --> 00:11:18,199 Speaker 1: You can hire somebody. I've hired somebody in the past 257 00:11:18,240 --> 00:11:21,559 Speaker 1: couple hundred bucks and it's saved me thousands. So just 258 00:11:21,600 --> 00:11:26,080 Speaker 1: because battling city hall is not fun. Also, and the 259 00:11:26,120 --> 00:11:28,240 Speaker 1: truth is, I don't know that record levels of un 260 00:11:28,280 --> 00:11:30,920 Speaker 1: affordability can last forever. But the only thing that you 261 00:11:30,960 --> 00:11:33,560 Speaker 1: and I can control are our actions and our savings, right, 262 00:11:33,800 --> 00:11:37,319 Speaker 1: and so holding off and renting given the current market conditions, 263 00:11:37,440 --> 00:11:39,600 Speaker 1: that continues to make sense for a whole lot of folks. 264 00:11:39,640 --> 00:11:39,840 Speaker 2: Matt. 265 00:11:39,880 --> 00:11:43,480 Speaker 1: I mean, I get the desire to become homeowner, but 266 00:11:43,520 --> 00:11:46,040 Speaker 1: sometimes it's best just to kind of hold back and 267 00:11:46,120 --> 00:11:48,960 Speaker 1: wait and keep preparing so that you're even more prepared 268 00:11:49,000 --> 00:11:51,720 Speaker 1: once the opportunity comes along, instead of trying to force it. 269 00:11:51,720 --> 00:11:52,320 Speaker 1: It's right, Okay. 270 00:11:52,360 --> 00:11:55,040 Speaker 2: So at least one of the things that is possibly 271 00:11:55,080 --> 00:11:58,000 Speaker 2: contributing to higher home prices, albeit in a very small way, 272 00:11:58,040 --> 00:12:01,000 Speaker 2: across most of the country, is all street ownership of 273 00:12:01,240 --> 00:12:04,520 Speaker 2: single family homes. You often see that in headlines it's 274 00:12:04,559 --> 00:12:07,080 Speaker 2: never fun to start bidding against let's say, a hedge 275 00:12:07,120 --> 00:12:11,160 Speaker 2: fund who's got vastly deeper pockets. There are at least 276 00:12:11,200 --> 00:12:13,040 Speaker 2: a couple members of Congress who are trying to do 277 00:12:13,080 --> 00:12:16,040 Speaker 2: something about that. There's a bill that's been introduced to 278 00:12:16,400 --> 00:12:19,400 Speaker 2: force these hedge funds to liquidate all of their properties 279 00:12:19,440 --> 00:12:21,880 Speaker 2: over the next decade and then to never actually be 280 00:12:21,880 --> 00:12:24,560 Speaker 2: able to buy single family homes in the future. These 281 00:12:24,640 --> 00:12:28,120 Speaker 2: investors cumulatively own more than half a million homes across 282 00:12:28,160 --> 00:12:30,480 Speaker 2: the US, which I will say, on his face, it 283 00:12:30,520 --> 00:12:33,120 Speaker 2: sounds like a lot of homes until are single family hams, 284 00:12:33,160 --> 00:12:34,920 Speaker 2: until you take anto account the fact that there's eighty 285 00:12:34,960 --> 00:12:37,959 Speaker 2: two million single family homes out there, so that's actually 286 00:12:38,160 --> 00:12:41,080 Speaker 2: it's less than one percent. It's truly just a drop 287 00:12:41,120 --> 00:12:43,520 Speaker 2: on the bucket. And so when it's hard for me 288 00:12:43,559 --> 00:12:45,440 Speaker 2: to not be cynical when I see legislation like this 289 00:12:45,559 --> 00:12:47,959 Speaker 2: being floated around that it just seems like virtue signaling. 290 00:12:48,240 --> 00:12:50,320 Speaker 2: It looks like a way to get in front of 291 00:12:50,320 --> 00:12:52,960 Speaker 2: your electorate and say I'm fighting for the for the 292 00:12:53,000 --> 00:12:55,240 Speaker 2: little man, I'm trying to stick it to the big bang, 293 00:12:55,320 --> 00:12:58,280 Speaker 2: to the big hedge funds, when in reality, A, they 294 00:12:58,280 --> 00:13:00,319 Speaker 2: know it's not going to pass. But B even if 295 00:13:00,320 --> 00:13:02,200 Speaker 2: it were in a pass, I think it would have 296 00:13:02,440 --> 00:13:06,120 Speaker 2: a pretty small impact on the actual affordability of films. 297 00:13:06,200 --> 00:13:08,160 Speaker 1: Yeah, I hear what you're saying. I also don't think 298 00:13:08,160 --> 00:13:09,920 Speaker 1: it would have zero effect, right, So I kind of 299 00:13:09,920 --> 00:13:11,200 Speaker 1: I kind of feel two ways about this. 300 00:13:11,280 --> 00:13:14,559 Speaker 2: I tend to agree with you, at least to a. 301 00:13:14,480 --> 00:13:16,680 Speaker 1: Certain degree, but I also think that the Wall Street's 302 00:13:16,760 --> 00:13:19,760 Speaker 1: encroachment into single family homes has harmed first time home buyers, 303 00:13:19,880 --> 00:13:22,880 Speaker 1: especially because they're buying up some of the cheapest, cheapest 304 00:13:22,880 --> 00:13:26,040 Speaker 1: housing stock in the country in various cities around the country, 305 00:13:26,040 --> 00:13:28,559 Speaker 1: and in particular, like we talked about with Lance this 306 00:13:28,720 --> 00:13:30,640 Speaker 1: week Atlanta, it's. 307 00:13:30,520 --> 00:13:34,560 Speaker 2: Like sures though, I mean like across the country, it's 308 00:13:34,640 --> 00:13:37,240 Speaker 2: it really is such a small, small portion. And I 309 00:13:37,240 --> 00:13:40,440 Speaker 2: also can't get past the idea of, like, uh, we're 310 00:13:40,480 --> 00:13:43,880 Speaker 2: encouraging folks to do something similar as mom and pop investors, 311 00:13:44,280 --> 00:13:47,920 Speaker 2: like it's were materially not all that different than the 312 00:13:47,960 --> 00:13:49,880 Speaker 2: institutional I don't know that I agree with that. 313 00:13:50,160 --> 00:13:52,680 Speaker 1: We could talk about that and more in depth, I guess, 314 00:13:52,760 --> 00:13:56,240 Speaker 1: But the I think there's a difference between hedge funds 315 00:13:56,240 --> 00:13:59,040 Speaker 1: coming in and because there's a need for rental real estate, 316 00:13:59,360 --> 00:14:02,839 Speaker 1: but when and hedge funds coming buy up by the thousands, 317 00:14:02,960 --> 00:14:06,000 Speaker 1: that we're kind of creating a nation of renter sort 318 00:14:06,040 --> 00:14:08,760 Speaker 1: of scenario instead of just kind of providing rental housing 319 00:14:08,800 --> 00:14:11,120 Speaker 1: stock that's necessary for people who aren't ready to buy 320 00:14:11,160 --> 00:14:13,000 Speaker 1: a home yet or are in a city for a 321 00:14:13,000 --> 00:14:16,079 Speaker 1: limited period of time. But I guess we're also making 322 00:14:16,120 --> 00:14:18,800 Speaker 1: something out to be like one of the biggest problems 323 00:14:18,800 --> 00:14:20,800 Speaker 1: that's not actually the biggest problem. Right, So Wall Street 324 00:14:20,840 --> 00:14:23,800 Speaker 1: buying homes or you know, Airbnb short term rentals, like 325 00:14:23,880 --> 00:14:25,440 Speaker 1: in the case of New York City where they just 326 00:14:25,480 --> 00:14:28,680 Speaker 1: put the kibosh on that those have often been made 327 00:14:28,680 --> 00:14:31,040 Speaker 1: out to be the scapegoat, and this is Hey, this 328 00:14:31,080 --> 00:14:33,480 Speaker 1: is why housing prices are so high. It's Airbnb, and 329 00:14:33,520 --> 00:14:36,480 Speaker 1: it's Wall Street coming in. And in my opinion, it's 330 00:14:36,640 --> 00:14:40,960 Speaker 1: local housing laws, it's regulation, it's zoning ordinances that make 331 00:14:41,040 --> 00:14:43,720 Speaker 1: it onerous to build that are really creating the biggest problem. 332 00:14:44,280 --> 00:14:46,840 Speaker 1: That don't completely agree that's the real tragedy here, right, 333 00:14:46,840 --> 00:14:49,480 Speaker 1: And we're not addressing we're not addressing the biggest thing, 334 00:14:49,800 --> 00:14:51,760 Speaker 1: the elephant in the room. And so case in point, 335 00:14:51,800 --> 00:14:53,480 Speaker 1: there was this Wall Street Journal article this week Matt 336 00:14:53,520 --> 00:14:56,200 Speaker 1: about why it took seventeen years to build a forty 337 00:14:56,280 --> 00:14:59,640 Speaker 1: nine unit building in Los Angeles. So the hoops the 338 00:14:59,640 --> 00:15:02,400 Speaker 1: builders have to jump through in order to get something built, 339 00:15:02,640 --> 00:15:05,080 Speaker 1: a lot of the nimbiism where people don't want anything 340 00:15:05,080 --> 00:15:07,760 Speaker 1: built near them. There was like one whole county in 341 00:15:07,800 --> 00:15:09,680 Speaker 1: Los Angeles at one point that tried to make the 342 00:15:09,720 --> 00:15:12,640 Speaker 1: whole county a wildlife refuge or something like that to 343 00:15:13,400 --> 00:15:15,760 Speaker 1: prevent any sort of building. It's that kind of stuff 344 00:15:15,800 --> 00:15:19,000 Speaker 1: that has a massive impact on our ability to create 345 00:15:19,040 --> 00:15:23,440 Speaker 1: new supply. And guess what, no new supply means higher prices. Right, 346 00:15:23,520 --> 00:15:27,040 Speaker 1: limited supply, higher demand means prices are going to go up, 347 00:15:27,080 --> 00:15:30,200 Speaker 1: and so that is the biggest problem. Maybe this would 348 00:15:30,240 --> 00:15:32,480 Speaker 1: help a little bit, this law right now, but it's 349 00:15:32,520 --> 00:15:34,520 Speaker 1: not going to have nearly as big of an impact 350 00:15:34,800 --> 00:15:37,160 Speaker 1: as the things that can be done locally to kind 351 00:15:37,160 --> 00:15:40,160 Speaker 1: of reduce the red tape and add density to a 352 00:15:40,240 --> 00:15:41,840 Speaker 1: lot of the most popular urban areas. 353 00:15:41,920 --> 00:15:43,960 Speaker 2: I think Kate is actually in the process of getting 354 00:15:44,160 --> 00:15:48,360 Speaker 2: our yard registered as a pollinator national autobonnd pollinator site. 355 00:15:48,400 --> 00:15:50,600 Speaker 2: There you go as well. The way nobody can build 356 00:15:50,640 --> 00:15:52,560 Speaker 2: an apartment building in our front yard. It's right, well, 357 00:15:53,040 --> 00:15:55,360 Speaker 2: it's pretty small front yards. I don't think anyone's nice 358 00:15:55,960 --> 00:15:57,240 Speaker 2: that anyway, catch it loves gardening. 359 00:15:57,280 --> 00:15:59,160 Speaker 1: But this one will be an interesting one to follow. 360 00:15:59,160 --> 00:16:01,640 Speaker 1: This bill see if it goes anywhere. My guess is 361 00:16:01,640 --> 00:16:04,320 Speaker 1: it won't. But I'll be watching. I'll be watching. And 362 00:16:04,920 --> 00:16:07,480 Speaker 1: on the note of local laws, by the way, Matt, 363 00:16:07,960 --> 00:16:10,720 Speaker 1: new York might do something that the FTC, the Federal 364 00:16:10,720 --> 00:16:13,400 Speaker 1: Trade Commission, has been trying but unable to do, and 365 00:16:13,400 --> 00:16:15,600 Speaker 1: that is ban non competes. They would join I think, 366 00:16:15,640 --> 00:16:18,600 Speaker 1: like four other states in doing this. And this bill 367 00:16:18,680 --> 00:16:20,480 Speaker 1: in New York might come with like a salary cap, right, 368 00:16:20,560 --> 00:16:23,320 Speaker 1: so non competes would be allowed for jobs that pay 369 00:16:23,400 --> 00:16:25,480 Speaker 1: less than two hundred fifty thousand dollars, but not for 370 00:16:25,760 --> 00:16:28,520 Speaker 1: kind of the higher flutant folks. And I think you 371 00:16:28,520 --> 00:16:30,680 Speaker 1: and I probably still disagree on this one. Yeah, you're 372 00:16:30,720 --> 00:16:34,200 Speaker 1: not a fan of non competes. I'll take the libertarian approach. Yeah, 373 00:16:34,280 --> 00:16:37,000 Speaker 1: so I am a fan of non competes, at least 374 00:16:37,840 --> 00:16:40,800 Speaker 1: with a salary cap. I think actually makes sense to me, because, yeah, 375 00:16:41,080 --> 00:16:43,240 Speaker 1: those folks who get paid big bucks, they can often 376 00:16:43,280 --> 00:16:46,000 Speaker 1: look after themselves. They can refuse to sign it and 377 00:16:46,240 --> 00:16:47,920 Speaker 1: just be like, now, way, if you want to hire me, 378 00:16:48,200 --> 00:16:49,760 Speaker 1: I'm not signing the non compete, or they can deal 379 00:16:49,800 --> 00:16:51,960 Speaker 1: with the consequences of signing it because guess what, they're 380 00:16:51,960 --> 00:16:54,320 Speaker 1: making enough money they have enough wherewithal to figure it out. 381 00:16:54,560 --> 00:16:57,920 Speaker 1: But in my estimation, the biggest problem with non competes 382 00:16:58,280 --> 00:17:00,360 Speaker 1: is that, like in the fast food or service industry, 383 00:17:00,440 --> 00:17:04,160 Speaker 1: right like, non competes end up taking advantage of folks 384 00:17:04,359 --> 00:17:06,359 Speaker 1: at that end of the wage spectrum. They end up 385 00:17:06,400 --> 00:17:10,600 Speaker 1: depressing wages, increasing prices, and they kind of prohibit economic growth. 386 00:17:10,640 --> 00:17:12,240 Speaker 2: So I'm with New York on this. If I could, 387 00:17:12,240 --> 00:17:14,400 Speaker 2: if you could like wave a magic wand and say, hey, 388 00:17:14,600 --> 00:17:17,359 Speaker 2: let's have non competes not be a thing, and with 389 00:17:17,440 --> 00:17:20,600 Speaker 2: there being no other consequences of those actions, I'm all 390 00:17:20,640 --> 00:17:23,080 Speaker 2: for that. But how it is that we arrive to 391 00:17:23,160 --> 00:17:26,240 Speaker 2: that point it matters a ton And I again, I 392 00:17:26,240 --> 00:17:28,080 Speaker 2: would be all about folks having the freedom to be 393 00:17:28,119 --> 00:17:29,960 Speaker 2: able to go and work for a different employer, But 394 00:17:30,440 --> 00:17:33,760 Speaker 2: how we get there, and government action and legislation and bureaucracy, 395 00:17:33,760 --> 00:17:37,919 Speaker 2: in my opinion, isn't the answer. Like even the article 396 00:17:37,960 --> 00:17:40,280 Speaker 2: you mentioned the apartment building out in LA. I feel 397 00:17:40,280 --> 00:17:42,439 Speaker 2: like that's a perfect example of government involvement and the 398 00:17:42,520 --> 00:17:44,880 Speaker 2: hoopes that you have to actually jump through and how 399 00:17:44,920 --> 00:17:48,639 Speaker 2: that actually stemy's growth in creating a hoop though. No, 400 00:17:48,760 --> 00:17:50,800 Speaker 2: but even still, like it's a rule, it's something that 401 00:17:50,880 --> 00:17:53,320 Speaker 2: is put in place that in this case, employers have 402 00:17:53,400 --> 00:17:58,359 Speaker 2: to abide by, and people, especially profit seeking companies employers, 403 00:17:58,480 --> 00:18:01,119 Speaker 2: they respond to incentives and a big like that's why 404 00:18:01,160 --> 00:18:02,680 Speaker 2: we're seeing I mean, there are so many companies that 405 00:18:02,720 --> 00:18:06,919 Speaker 2: are moving to states that have less restraints when it 406 00:18:06,960 --> 00:18:08,560 Speaker 2: comes to how it is that they're able to run 407 00:18:08,560 --> 00:18:10,720 Speaker 2: their companies. So you see all these companies moving to Texas, 408 00:18:10,720 --> 00:18:15,159 Speaker 2: to Florida, to Tennessee and away from states unfortunately like California, 409 00:18:15,359 --> 00:18:18,800 Speaker 2: who have imposed a ton of laws, whether it's in 410 00:18:18,840 --> 00:18:21,520 Speaker 2: the form of housing or again even in the in 411 00:18:21,560 --> 00:18:24,000 Speaker 2: the case of non competes, California is one of the 412 00:18:24,040 --> 00:18:26,160 Speaker 2: one of the states that that has that in place. 413 00:18:26,160 --> 00:18:28,280 Speaker 2: And so again it's not that I disagree that non 414 00:18:28,280 --> 00:18:31,240 Speaker 2: competes kind of suck, It's just that how we arrive 415 00:18:31,359 --> 00:18:33,520 Speaker 2: there and how it, in my opinion, should be more 416 00:18:33,760 --> 00:18:35,120 Speaker 2: left more up to the individual. 417 00:18:35,200 --> 00:18:37,520 Speaker 1: Yeah, So I guess that being the case, depending on 418 00:18:37,520 --> 00:18:40,000 Speaker 1: where you live, non competes might be well and good 419 00:18:40,040 --> 00:18:43,879 Speaker 1: and completely lawful. So for you as an individual, you 420 00:18:43,920 --> 00:18:45,359 Speaker 1: have to think long enough, got to know what's up 421 00:18:45,400 --> 00:18:47,280 Speaker 1: about whether or not you want to sign that non compete. 422 00:18:47,280 --> 00:18:50,080 Speaker 1: And absolutely, but I think there it just I've read 423 00:18:50,119 --> 00:18:53,679 Speaker 1: too many stories about people making suband subway sandwiches or 424 00:18:53,720 --> 00:18:56,879 Speaker 1: working kind of like a minimum wage security job, and 425 00:18:56,920 --> 00:18:59,560 Speaker 1: then it turns out they've signed something that kind of 426 00:18:59,640 --> 00:19:02,560 Speaker 1: unwitn that doesn't allow them to do work in that 427 00:19:02,600 --> 00:19:05,280 Speaker 1: same similar work in that same vicinity. And yeah, that's 428 00:19:05,320 --> 00:19:06,040 Speaker 1: just tough to stomach. 429 00:19:06,040 --> 00:19:08,400 Speaker 2: It's a tough Yeah, it's a tough consequence. But I mean, 430 00:19:08,760 --> 00:19:11,320 Speaker 2: but the unintended consequences, I think are what we have 431 00:19:11,359 --> 00:19:13,639 Speaker 2: to watch out for. Anytime there's any sort of like 432 00:19:13,840 --> 00:19:18,120 Speaker 2: wide scale general policy that gets placed. There are consequences 433 00:19:18,160 --> 00:19:20,639 Speaker 2: of those actions that policymakers don't take into account, and 434 00:19:20,680 --> 00:19:24,800 Speaker 2: oftentimes they're hard to see. Yes, absolutely, and that's not 435 00:19:24,840 --> 00:19:28,240 Speaker 2: to say they're guaranteed, but man, they oftentimes happen more 436 00:19:28,280 --> 00:19:30,879 Speaker 2: than we think, and it does prevent, for instance, something 437 00:19:30,920 --> 00:19:33,159 Speaker 2: like housing for that market to open up and for 438 00:19:33,200 --> 00:19:36,200 Speaker 2: the ability for folks to have access to affordable housing. 439 00:19:36,280 --> 00:19:38,040 Speaker 1: Yeah, all right, We've got more to get to on 440 00:19:38,080 --> 00:19:41,000 Speaker 1: this one, Matt, besides just debating the merits of non heats. 441 00:19:41,760 --> 00:19:42,800 Speaker 2: So more stories. 442 00:19:42,880 --> 00:19:45,760 Speaker 1: Yeah, we'll get some more, including we'll talk about stock 443 00:19:45,800 --> 00:19:48,880 Speaker 1: market predictions. They're kind of scattershot going into next year. 444 00:19:49,040 --> 00:19:51,199 Speaker 2: What are our thoughts? We'll give them right after this. 445 00:20:00,119 --> 00:20:01,840 Speaker 2: We're back from the break, and is now time for 446 00:20:01,920 --> 00:20:04,320 Speaker 2: Joel to give his prediction as to what the stock 447 00:20:04,359 --> 00:20:06,760 Speaker 2: market is going to gonna do next year. I just 448 00:20:06,800 --> 00:20:11,000 Speaker 2: shrugged my shoulders. That's my prediction. That's my emoji, the 449 00:20:11,080 --> 00:20:13,200 Speaker 2: yellow guy with the blue shirt, both arms up. That's right. 450 00:20:13,680 --> 00:20:16,280 Speaker 2: But the actual year in wraps like those are fun. 451 00:20:16,359 --> 00:20:19,320 Speaker 2: But when it comes to the actual twenty twenty four predictions, 452 00:20:19,320 --> 00:20:21,800 Speaker 2: those are less fun and it makes me like a 453 00:20:21,880 --> 00:20:24,280 Speaker 2: Spotify rap. That's that's fine. Yeah, you're trying to predict one. 454 00:20:24,280 --> 00:20:26,080 Speaker 2: I'm going to listen to next year. Leave me alone. 455 00:20:26,080 --> 00:20:29,080 Speaker 2: But a Business Insider article titled Prepare for the S 456 00:20:29,119 --> 00:20:31,440 Speaker 2: and P five hundred to plunge twenty four percent by 457 00:20:31,520 --> 00:20:34,200 Speaker 2: mid twenty twenty four and the US economy to sink 458 00:20:34,240 --> 00:20:38,920 Speaker 2: into a recession, JP Morgan's top chart Guru says, which 459 00:20:38,960 --> 00:20:42,080 Speaker 2: of course he does. I wonder if he man. We're 460 00:20:42,119 --> 00:20:45,840 Speaker 2: basically in like the stupid stock market prediction season here 461 00:20:45,840 --> 00:20:47,440 Speaker 2: at the end of the year, especially too after we've 462 00:20:47,480 --> 00:20:49,800 Speaker 2: seen surprising gains this year. 463 00:20:49,840 --> 00:20:52,119 Speaker 1: This year, Yeah, I mean like literally as its episode airs, 464 00:20:52,119 --> 00:20:54,960 Speaker 1: we might be getting close to all time highs again 465 00:20:55,000 --> 00:20:55,720 Speaker 1: in the stock market. 466 00:20:55,880 --> 00:20:58,320 Speaker 2: Yeah, the Dow hit all time highs a couple of 467 00:20:58,359 --> 00:21:00,440 Speaker 2: days ago. Yeah, and yeah, possibly the S and P. 468 00:21:01,400 --> 00:21:03,480 Speaker 2: And some folks might be thinking, well, I'm on a guru, 469 00:21:03,560 --> 00:21:05,880 Speaker 2: like I don't keep up with what the market's doing. 470 00:21:05,920 --> 00:21:09,840 Speaker 2: Maybe maybe we should be deferring to the expert here. Well, 471 00:21:10,320 --> 00:21:12,359 Speaker 2: except if we actually looked back to the end of 472 00:21:12,440 --> 00:21:16,520 Speaker 2: last year, most of the predictions were completely wrong by 473 00:21:16,520 --> 00:21:20,080 Speaker 2: a significant amount. We were coming off of a down year, 474 00:21:20,400 --> 00:21:23,440 Speaker 2: and most of these quote unquote experts, they predicted more 475 00:21:23,520 --> 00:21:27,600 Speaker 2: doldrums for the market. They're expecting a recession, and that 476 00:21:27,720 --> 00:21:29,359 Speaker 2: did not turn out to be the case. 477 00:21:29,200 --> 00:21:30,919 Speaker 1: At all, or at least if they were like, oh, yeah, no, 478 00:21:30,960 --> 00:21:33,040 Speaker 1: the stock market's going to go up, they're like very 479 00:21:33,119 --> 00:21:36,520 Speaker 1: very ginger, tepid predictions. Right, nobody was Like, nobody was 480 00:21:36,520 --> 00:21:37,960 Speaker 1: out there saying I'm pretty sure the market is gonna 481 00:21:37,960 --> 00:21:38,760 Speaker 1: go up by twenty four percent. 482 00:21:39,000 --> 00:21:42,120 Speaker 2: They weren't being you know, they weren't bold about it. Yeah, sure, yeah, yeah, nobody. 483 00:21:42,240 --> 00:21:46,160 Speaker 2: Nobody was saying that it's the psychological loss of version, yeah, 484 00:21:46,200 --> 00:21:49,080 Speaker 2: which is like, that's the turn that describes the fact that, like, 485 00:21:49,160 --> 00:21:52,000 Speaker 2: for instance, if we experienced a twenty percent decline, that's 486 00:21:52,040 --> 00:21:54,840 Speaker 2: going to feel much much more painful for whatever reason 487 00:21:55,000 --> 00:21:57,639 Speaker 2: than a twenty percent increase. And so anytime folks are 488 00:21:57,720 --> 00:22:01,480 Speaker 2: making these these dour predictions, they all always seem wise 489 00:22:01,840 --> 00:22:05,440 Speaker 2: and prudent as opposed to somebody who's more of an optimist. Yea, 490 00:22:05,520 --> 00:22:08,640 Speaker 2: And by definition, I guess we are because we tend 491 00:22:08,680 --> 00:22:11,439 Speaker 2: to base our well, I'm hesitant to say predictions, but 492 00:22:11,520 --> 00:22:13,720 Speaker 2: what we think that the market's going to do just 493 00:22:13,760 --> 00:22:16,000 Speaker 2: based on history, right, yeah, exactly, it's not based on 494 00:22:16,080 --> 00:22:17,720 Speaker 2: like more likely to go up with something that we 495 00:22:17,840 --> 00:22:19,320 Speaker 2: pulled out of our butt or anything like that. Right. 496 00:22:19,359 --> 00:22:21,439 Speaker 1: So, from where we're staying, we say that predictions are 497 00:22:21,440 --> 00:22:23,680 Speaker 1: a lot like opinions. Right, everyone's got one, but most 498 00:22:23,720 --> 00:22:26,600 Speaker 1: of them have really no pertinence on your life whatsoever, 499 00:22:26,720 --> 00:22:29,280 Speaker 1: especially when they're just making headlines around the internet. And 500 00:22:29,320 --> 00:22:31,359 Speaker 1: it's not that we don't think that the market's going 501 00:22:31,400 --> 00:22:33,200 Speaker 1: to have a tough year next year. The market's crushed 502 00:22:33,240 --> 00:22:34,960 Speaker 1: it this year. It could it could take year, It 503 00:22:34,960 --> 00:22:38,879 Speaker 1: could certainly yet take a swound. We don't know, or 504 00:22:38,920 --> 00:22:41,560 Speaker 1: it's not that we're we're sensing a boom either, Like 505 00:22:42,240 --> 00:22:44,560 Speaker 1: it's really that we don't know, and honestly, we really 506 00:22:44,600 --> 00:22:47,120 Speaker 1: don't care. We're investing for the long term. So these 507 00:22:47,240 --> 00:22:50,680 Speaker 1: predictions that come out every December, they feel completely unnecessary. 508 00:22:50,720 --> 00:22:53,120 Speaker 2: They're a distraction from what we truly need to be 509 00:22:53,119 --> 00:22:54,879 Speaker 2: dealing with our money, which is spending less of it 510 00:22:54,920 --> 00:22:56,919 Speaker 2: and investing more right, And I feel like we don't 511 00:22:56,920 --> 00:22:59,760 Speaker 2: necessarily have to talk about this, but but we just 512 00:22:59,800 --> 00:23:01,280 Speaker 2: know that a lot of folks out there are swayed 513 00:23:01,320 --> 00:23:03,440 Speaker 2: by at least some of these predictions, like exactly the 514 00:23:03,480 --> 00:23:05,680 Speaker 2: headlines come out and they're like, oh, they see dollar 515 00:23:05,720 --> 00:23:08,640 Speaker 2: signs in their own eyeballs, and of course they want 516 00:23:08,680 --> 00:23:12,359 Speaker 2: to take advantage of or avoid a potential bust. But 517 00:23:12,760 --> 00:23:15,280 Speaker 2: I would say this one stat worth sharing. It comes 518 00:23:15,280 --> 00:23:17,800 Speaker 2: from our friend friend of the show, Ben Carlson. He 519 00:23:17,880 --> 00:23:19,160 Speaker 2: ran the numbers and he found. 520 00:23:18,920 --> 00:23:21,639 Speaker 1: That the stock market was up twenty two out of 521 00:23:21,680 --> 00:23:24,480 Speaker 1: the thirty four years following a twenty percent gain in 522 00:23:24,520 --> 00:23:27,040 Speaker 1: the market, and the average size of the gain the 523 00:23:27,119 --> 00:23:30,159 Speaker 1: year after we saw that massive stock market rally was 524 00:23:30,200 --> 00:23:34,600 Speaker 1: eight point nine percent. So that just yeah, so max 525 00:23:34,800 --> 00:23:36,760 Speaker 1: two out of three years data, the market's going to 526 00:23:36,760 --> 00:23:37,480 Speaker 1: go up again. 527 00:23:37,400 --> 00:23:40,520 Speaker 2: Sixty six percent chance of you being right. That's right, 528 00:23:40,560 --> 00:23:41,000 Speaker 2: that's right. 529 00:23:41,280 --> 00:23:43,720 Speaker 1: So I'm just going to, you know, go with history, 530 00:23:43,760 --> 00:23:45,639 Speaker 1: go with the numbers, not sort of go with the 531 00:23:45,920 --> 00:23:48,280 Speaker 1: predictions that people are making. Our suggestion is to look 532 00:23:48,320 --> 00:23:52,120 Speaker 1: at history, tune the plethora of predictions out, and keep 533 00:23:52,160 --> 00:23:54,119 Speaker 1: doing what you're doing, stashing away money for your future. 534 00:23:54,160 --> 00:23:56,040 Speaker 2: I guess another way to look at it is that 535 00:23:56,040 --> 00:23:59,240 Speaker 2: that jpm morgan chart guru has a thirty three percent 536 00:23:59,280 --> 00:24:00,760 Speaker 2: chance of actually being correct. True. 537 00:24:01,200 --> 00:24:02,960 Speaker 1: But even even then, maybe we get like a four 538 00:24:03,000 --> 00:24:04,920 Speaker 1: percent decline and he still looks like an idiot. Exactly. 539 00:24:05,200 --> 00:24:07,480 Speaker 2: All right, man, let's talk about the American dream because 540 00:24:07,560 --> 00:24:10,399 Speaker 2: a listener, Gary, he sent us something from Investipedia about 541 00:24:10,400 --> 00:24:14,280 Speaker 2: the cost of the American dream and apparently it's gonna 542 00:24:14,280 --> 00:24:17,679 Speaker 2: cost you three point four million dollars now over your 543 00:24:17,720 --> 00:24:19,920 Speaker 2: lifetime on that white pick offense has gotten expensive, hunt 544 00:24:20,000 --> 00:24:23,400 Speaker 2: has Yeah, So this term was actually Investipedia's number one 545 00:24:23,920 --> 00:24:26,680 Speaker 2: search for term of the year. We've got a couple 546 00:24:26,760 --> 00:24:29,400 Speaker 2: thoughts from the numbers that they pulled together. First of all, 547 00:24:29,880 --> 00:24:31,639 Speaker 2: it is a lot more expensive to live in America 548 00:24:31,680 --> 00:24:34,040 Speaker 2: these days. We're not gonna deny that. It's not sure 549 00:24:34,040 --> 00:24:37,080 Speaker 2: you're going, especially for the bigger ticket items like cars, 550 00:24:37,160 --> 00:24:39,679 Speaker 2: like homes. But on the other hand, some of the 551 00:24:39,720 --> 00:24:43,240 Speaker 2: items listed you don't necessarily need to spend nearly as 552 00:24:43,320 --> 00:24:45,800 Speaker 2: much on in order to live a happy life. They 553 00:24:45,800 --> 00:24:49,440 Speaker 2: had listed things like weddings and cars, pets. Well, they're 554 00:24:49,480 --> 00:24:52,399 Speaker 2: all based on averages, but you don't have to be average. 555 00:24:52,400 --> 00:24:55,240 Speaker 2: You don't. It makes me think of the standard American diet, 556 00:24:55,440 --> 00:24:57,879 Speaker 2: which I always laugh at because it's the acronym is sad. 557 00:24:58,760 --> 00:25:00,960 Speaker 2: You don't have to be an American. You don't have 558 00:25:01,040 --> 00:25:03,919 Speaker 2: to lead that kind of life. We're all about being 559 00:25:04,000 --> 00:25:06,600 Speaker 2: maybe a little better than average here, and especially when 560 00:25:06,640 --> 00:25:09,000 Speaker 2: it comes to our money. And the average needed to 561 00:25:09,400 --> 00:25:11,879 Speaker 2: retire that they calculated was seven hundred and fifty thousand 562 00:25:11,920 --> 00:25:14,280 Speaker 2: dollars three quarters of a million dollars. And the thing 563 00:25:14,320 --> 00:25:17,720 Speaker 2: about that number is that it can seem so stinking overwhelming, 564 00:25:17,840 --> 00:25:20,080 Speaker 2: right like you're thinking, how am I supposed to get 565 00:25:20,080 --> 00:25:22,680 Speaker 2: close to a million dollars, But if you save diligently 566 00:25:22,720 --> 00:25:24,879 Speaker 2: over the years, you can achieve a balance that's going 567 00:25:24,920 --> 00:25:27,720 Speaker 2: to be that high or even higher without actually having 568 00:25:27,760 --> 00:25:30,440 Speaker 2: to invest that much money. And that's because of compounding 569 00:25:30,480 --> 00:25:33,080 Speaker 2: returns on the way that it works when you invest 570 00:25:33,080 --> 00:25:34,639 Speaker 2: that money. You don't have to come to the table 571 00:25:34,840 --> 00:25:37,040 Speaker 2: with seven hundred and fifty thousand dollars. You just have 572 00:25:37,119 --> 00:25:39,800 Speaker 2: to start investing at an early age. Let that money 573 00:25:39,840 --> 00:25:42,320 Speaker 2: do the work for you set up to you necessarily 574 00:25:42,440 --> 00:25:43,240 Speaker 2: to do that work. 575 00:25:43,359 --> 00:25:46,040 Speaker 1: It's not that there's like no basis of truth in 576 00:25:46,119 --> 00:25:49,080 Speaker 1: kind of what Investipedia is spending here. They gathered the 577 00:25:49,119 --> 00:25:51,920 Speaker 1: data and they're not completely wrong, but I guess it 578 00:25:52,040 --> 00:25:53,600 Speaker 1: just leads to a lot of pestimism. When we were 579 00:25:53,600 --> 00:25:55,159 Speaker 1: like cool three point four mili, Yeah, how am iver 580 00:25:55,240 --> 00:25:56,960 Speaker 1: going to do that? Well, this is across the entire 581 00:25:57,000 --> 00:25:58,680 Speaker 1: course of your life, and we need to question the 582 00:25:58,680 --> 00:26:01,520 Speaker 1: assumptions of how much these things cost, including like you 583 00:26:01,560 --> 00:26:04,440 Speaker 1: were just talking about retirements, like, yeah, a nest egg 584 00:26:04,480 --> 00:26:06,879 Speaker 1: of seven hundred and fifty k in your tax advantaged 585 00:26:06,880 --> 00:26:08,879 Speaker 1: retirement accounts would be awesome. And I think for a 586 00:26:08,880 --> 00:26:11,040 Speaker 1: lot of how to money listeners. It's achievable. It's just 587 00:26:11,040 --> 00:26:12,680 Speaker 1: that you don't have to fork over seven hundred and 588 00:26:12,680 --> 00:26:15,400 Speaker 1: fifty k all in one fell swoop. It's a function 589 00:26:15,640 --> 00:26:19,160 Speaker 1: of time and growth in the market that your dollars 590 00:26:19,160 --> 00:26:19,879 Speaker 1: are going to experience. 591 00:26:19,960 --> 00:26:23,440 Speaker 2: Right. Going back to shohe Otani, right, future value money 592 00:26:23,520 --> 00:26:25,200 Speaker 2: right there, man, what it's all about. We learn a 593 00:26:25,200 --> 00:26:28,760 Speaker 2: lot from that guy. And a recent Wall Street Journal 594 00:26:28,800 --> 00:26:31,080 Speaker 2: poll found that the majority of young Americans think that 595 00:26:31,119 --> 00:26:34,800 Speaker 2: the American dream is dead. People are pessimistic about our 596 00:26:34,800 --> 00:26:37,480 Speaker 2: country in general and the economic opportunities that they have 597 00:26:37,560 --> 00:26:40,359 Speaker 2: available to them here. And I'm not going to deny 598 00:26:40,440 --> 00:26:43,920 Speaker 2: the challenges that we face. Our political climate, the polarization 599 00:26:44,440 --> 00:26:45,320 Speaker 2: is depressing. Right. 600 00:26:45,840 --> 00:26:48,960 Speaker 1: Inequality is also a real problem. But Matt, it kind 601 00:26:48,960 --> 00:26:50,879 Speaker 1: of makes me think about that recent combo we had 602 00:26:50,880 --> 00:26:54,880 Speaker 1: with doctor gen Twangy about narrative versus reality. Right, Millennials 603 00:26:55,400 --> 00:26:57,760 Speaker 1: as a cohort are doing far better than predicted, and 604 00:26:57,880 --> 00:27:00,800 Speaker 1: even better than they feel. It's like the headlines don't 605 00:27:00,840 --> 00:27:02,720 Speaker 1: quite match the facts on the ground. 606 00:27:02,800 --> 00:27:05,400 Speaker 2: Yes, and so it goes by. It's like this loss 607 00:27:05,400 --> 00:27:08,119 Speaker 2: of version again. It's the fact that any small negative 608 00:27:08,160 --> 00:27:10,560 Speaker 2: thing we experienced is just magnified not only by media 609 00:27:10,600 --> 00:27:12,720 Speaker 2: but also for whatever reason just the way we think 610 00:27:12,720 --> 00:27:13,000 Speaker 2: about it. 611 00:27:13,000 --> 00:27:15,600 Speaker 1: Well, I think it's also comparison, right, I think the 612 00:27:15,720 --> 00:27:17,800 Speaker 1: more that we're a lot more of that today than 613 00:27:17,840 --> 00:27:20,080 Speaker 1: there was in the past as well. And it's you 614 00:27:20,160 --> 00:27:21,480 Speaker 1: used to be able to just look at your neighbor. 615 00:27:21,560 --> 00:27:23,479 Speaker 1: Now you can look at all sorts of people. I mean, 616 00:27:23,480 --> 00:27:25,400 Speaker 1: I think we feel that maybe at times, as podcasters 617 00:27:25,400 --> 00:27:28,280 Speaker 1: are like, we're doing good, but man or to Joe Rogan, 618 00:27:28,640 --> 00:27:30,600 Speaker 1: you know, and like there's times where I'm like. 619 00:27:30,560 --> 00:27:33,400 Speaker 2: Well, what what Huberman's really blowing it up? Right? Why 620 00:27:33,400 --> 00:27:35,960 Speaker 2: can't we have growth? Like count We're not nearly as 621 00:27:35,960 --> 00:27:38,600 Speaker 2: interesting or as long winded as he is. I guess, 622 00:27:38,920 --> 00:27:41,680 Speaker 2: but you don't like listening to three hour long podcast 623 00:27:41,680 --> 00:27:43,199 Speaker 2: episodes about how alcohol is bad for it. 624 00:27:43,280 --> 00:27:45,000 Speaker 1: It gets a little tedous. It gives a little teddos 625 00:27:45,000 --> 00:27:46,960 Speaker 1: after a while. But I get why he's popular, to 626 00:27:46,960 --> 00:27:48,760 Speaker 1: get why people like him. But I guess there's just 627 00:27:48,840 --> 00:27:51,160 Speaker 1: there's more opportunity for us to compare than ever before. 628 00:27:51,320 --> 00:27:53,200 Speaker 1: But when you look at the data over the past 629 00:27:53,200 --> 00:27:56,359 Speaker 1: few years, Americans are doing better financially and inequality has 630 00:27:56,359 --> 00:28:01,200 Speaker 1: actually decreased along some metrics, so we definitely face headwinds, 631 00:28:01,640 --> 00:28:03,040 Speaker 1: but we still live in a country I would say 632 00:28:03,040 --> 00:28:05,960 Speaker 1: that offers more opportunity for advancement and wealth building than 633 00:28:06,160 --> 00:28:09,040 Speaker 1: basically any other in existence. And I know, I know 634 00:28:09,200 --> 00:28:11,440 Speaker 1: I'm basically like one hundred percent optimist, but I hope 635 00:28:11,440 --> 00:28:13,640 Speaker 1: I'm not being like unrealistic in my optimism here. 636 00:28:13,720 --> 00:28:16,880 Speaker 2: No. Yeah, I think how we interpret data and view 637 00:28:16,880 --> 00:28:18,640 Speaker 2: things it matters a ton. And what you said too 638 00:28:18,720 --> 00:28:22,320 Speaker 2: about over the course of your entire lifetime is what 639 00:28:22,359 --> 00:28:25,520 Speaker 2: these numbers are are are taken into account and when 640 00:28:25,520 --> 00:28:28,040 Speaker 2: you look at a massive number, that big of like 641 00:28:28,119 --> 00:28:29,919 Speaker 2: what life is gonna cost, Like, we don't look at 642 00:28:29,960 --> 00:28:33,800 Speaker 2: anything on that type of scale. The context matters so much, 643 00:28:34,000 --> 00:28:37,200 Speaker 2: like it makes me think of when like there it's 644 00:28:37,240 --> 00:28:40,920 Speaker 2: fun with numbers, Joel's fun with statistics. It's something like 645 00:28:40,960 --> 00:28:43,400 Speaker 2: the average human is going to sleep something like twenty 646 00:28:43,400 --> 00:28:47,200 Speaker 2: five years of their entire life. It's ridiculous, And you think, 647 00:28:47,720 --> 00:28:49,960 Speaker 2: oh my gosh, what in my evampire, I don't have 648 00:28:50,040 --> 00:28:52,880 Speaker 2: that much time on hand to sleep. Yeah, that's because 649 00:28:52,880 --> 00:28:55,000 Speaker 2: you're looking at it like all in one fell swoop, 650 00:28:55,040 --> 00:28:58,160 Speaker 2: like in a single snapshot. But guess what when it 651 00:28:58,200 --> 00:29:00,520 Speaker 2: comes to the day to day, like, ay, do need 652 00:29:00,560 --> 00:29:02,560 Speaker 2: that much sleep? And b it's actually a lot more 653 00:29:02,600 --> 00:29:07,400 Speaker 2: doable than you think. And so the difference between sleep 654 00:29:07,440 --> 00:29:10,400 Speaker 2: and money, however, though, is that sleep is something for 655 00:29:10,440 --> 00:29:13,040 Speaker 2: the most part, you can't really change, Like humans need 656 00:29:13,120 --> 00:29:15,120 Speaker 2: just about the same amount of sleep everybody does. But 657 00:29:15,120 --> 00:29:17,000 Speaker 2: when it comes to how much money we actually need 658 00:29:17,040 --> 00:29:17,720 Speaker 2: to have in I. 659 00:29:17,720 --> 00:29:21,040 Speaker 1: Found a new hack, Matt I'm gonna share with Andrew Hubman. 660 00:29:21,120 --> 00:29:23,520 Speaker 1: You listen to Uma show. But when it comes to 661 00:29:23,560 --> 00:29:25,640 Speaker 1: what it is that we consume, we do have control 662 00:29:25,720 --> 00:29:28,320 Speaker 1: over those things. And just because, like you said, the 663 00:29:28,360 --> 00:29:31,360 Speaker 1: whole world or your neighbors, your quote unquote neighbors on 664 00:29:31,400 --> 00:29:34,040 Speaker 1: social media are living in a certain way, that doesn't 665 00:29:34,080 --> 00:29:35,840 Speaker 1: mean that you have to live that way. It's actually 666 00:29:35,880 --> 00:29:38,120 Speaker 1: something that we have more control over than something like 667 00:29:38,400 --> 00:29:41,920 Speaker 1: something more biological like sleep. And the context matters so much. Yeah, 668 00:29:41,960 --> 00:29:44,240 Speaker 1: And I think one of the things that well, how 669 00:29:44,240 --> 00:29:46,040 Speaker 1: do you define American dream? And I think some people 670 00:29:46,040 --> 00:29:48,560 Speaker 1: define it as the nice house with the white pick 671 00:29:48,560 --> 00:29:51,920 Speaker 1: of fence, two car garage, two point five kids, and 672 00:29:52,200 --> 00:29:55,479 Speaker 1: the ability to take to two week vacations a year 673 00:29:55,560 --> 00:29:57,960 Speaker 1: or whatever. Like how you define it really matters. And 674 00:29:58,040 --> 00:30:00,720 Speaker 1: so I guess maybe the Stockham area and lifestyle that's 675 00:30:00,720 --> 00:30:02,560 Speaker 1: not what you and I are after either, and that's 676 00:30:02,600 --> 00:30:04,520 Speaker 1: not what we think are you know how the money 677 00:30:04,520 --> 00:30:07,160 Speaker 1: listeners need to be about unless that's really what they want, right, 678 00:30:07,600 --> 00:30:08,880 Speaker 1: But so rethinking kind. 679 00:30:08,760 --> 00:30:11,960 Speaker 2: Of take way more vacations exactly what I do? I 680 00:30:11,960 --> 00:30:12,240 Speaker 2: really do? 681 00:30:12,480 --> 00:30:15,440 Speaker 1: Yeah, And so yeah, rethinking kind of what you're aiming 682 00:30:15,480 --> 00:30:17,520 Speaker 1: for matters in this too, I think. But the Wall 683 00:30:17,520 --> 00:30:20,600 Speaker 1: Street Journal they boiled the question down to, like, will 684 00:30:20,840 --> 00:30:23,760 Speaker 1: hard work offer you the opportunity to get ahead? And 685 00:30:23,800 --> 00:30:25,480 Speaker 1: even that, like getting ahead is in the eye of 686 00:30:25,520 --> 00:30:27,560 Speaker 1: the beholder, and so much of it comes getting ahead 687 00:30:27,600 --> 00:30:30,280 Speaker 1: is a is a warped term because it makes people 688 00:30:30,280 --> 00:30:32,440 Speaker 1: think of, well, am I going to do better than 689 00:30:32,440 --> 00:30:33,760 Speaker 1: my peers? Am I going to do better than the 690 00:30:33,800 --> 00:30:36,120 Speaker 1: folks around me? Am I going to supersede them? And 691 00:30:36,160 --> 00:30:39,440 Speaker 1: so yeah, even the way the questions worded, it comes 692 00:30:39,440 --> 00:30:43,120 Speaker 1: with a lot of like perception, right. And so I 693 00:30:43,200 --> 00:30:46,000 Speaker 1: really do think that hard work and smart work in 694 00:30:46,040 --> 00:30:49,320 Speaker 1: this country for a whole lot of people will pay dividends, right, 695 00:30:49,520 --> 00:30:51,520 Speaker 1: And that there's a lot more in your control than 696 00:30:51,600 --> 00:30:53,280 Speaker 1: you think. It doesn't mean there aren't things out of 697 00:30:53,320 --> 00:30:55,360 Speaker 1: your control. And it doesn't mean that there aren't headwinds. 698 00:30:55,600 --> 00:30:58,200 Speaker 1: But I do think that the pessimism in and of 699 00:30:58,240 --> 00:31:01,320 Speaker 1: itself actually breeds in results. We've talked about that before 700 00:31:01,320 --> 00:31:03,200 Speaker 1: on the show too, mat how optimism is such an 701 00:31:03,200 --> 00:31:06,000 Speaker 1: important part of building that financial future you want. 702 00:31:06,080 --> 00:31:08,080 Speaker 2: It's true, all right. So a way that you can 703 00:31:08,240 --> 00:31:11,920 Speaker 2: get ahead is through entrepreneurship man working for yourself. A 704 00:31:11,960 --> 00:31:15,520 Speaker 2: recent poll found that one in three gen zs they 705 00:31:15,560 --> 00:31:17,280 Speaker 2: want to do that. They want to be their own boss, 706 00:31:17,640 --> 00:31:19,560 Speaker 2: and the reason for that is because they think it's 707 00:31:19,640 --> 00:31:22,600 Speaker 2: the best way to build wealth. And I don't think 708 00:31:22,600 --> 00:31:26,480 Speaker 2: they're wrong. We've seen a ton of small business formation, 709 00:31:27,480 --> 00:31:30,200 Speaker 2: like the numbers of I think new business applications skyrocket 710 00:31:30,280 --> 00:31:33,640 Speaker 2: since COVID, and that's good for our country, and it's 711 00:31:33,680 --> 00:31:37,080 Speaker 2: also great for many of those individual business owners. It's 712 00:31:37,080 --> 00:31:39,680 Speaker 2: certainly not going to be for everyone out there. Now. 713 00:31:39,760 --> 00:31:43,080 Speaker 2: What you do for work, your personality, that matters a 714 00:31:43,080 --> 00:31:45,320 Speaker 2: whole lot. There are a lot of folks listening and 715 00:31:45,320 --> 00:31:47,880 Speaker 2: they're you know, you're like, guess no, guys, I'm just 716 00:31:47,920 --> 00:31:50,080 Speaker 2: always going to be Yeah, Like I don't want to own, 717 00:31:50,080 --> 00:31:52,360 Speaker 2: I don't want to have the responsibility because there is 718 00:31:52,560 --> 00:31:55,160 Speaker 2: a lot of additional responsibilities when you own your own business. 719 00:31:55,320 --> 00:31:58,120 Speaker 2: There's nothing wrong with traditional employment, but I think for 720 00:31:58,160 --> 00:32:00,520 Speaker 2: a good swath of people starting a side hustle, ramping 721 00:32:00,560 --> 00:32:03,280 Speaker 2: it up so that you can eventually leave your main gig, 722 00:32:03,360 --> 00:32:05,480 Speaker 2: I think that can be a great way to work 723 00:32:05,520 --> 00:32:09,120 Speaker 2: towards being your own boss, getting ahead, fulfilling the American dream, 724 00:32:09,400 --> 00:32:11,720 Speaker 2: and investing in yourself and you know, at least considering 725 00:32:11,760 --> 00:32:13,280 Speaker 2: what it might look like to do your own thing 726 00:32:13,840 --> 00:32:16,640 Speaker 2: is something that we would recommend. And it's also something 727 00:32:16,640 --> 00:32:18,480 Speaker 2: that you can do on the cheap. It does not 728 00:32:18,640 --> 00:32:21,320 Speaker 2: have to be something that you have to take out 729 00:32:21,320 --> 00:32:23,239 Speaker 2: a small business loan for. You don't have to hit 730 00:32:23,320 --> 00:32:25,560 Speaker 2: up all of your relatives at Christmas and say, hey, 731 00:32:25,720 --> 00:32:27,760 Speaker 2: need you all to bankroll me? Is this something you can 732 00:32:27,880 --> 00:32:29,480 Speaker 2: ramp up slowly on the side. 733 00:32:29,280 --> 00:32:31,800 Speaker 1: And it's it's certainly not possible to avoid debt completely 734 00:32:32,160 --> 00:32:33,920 Speaker 1: get for every business you want to start totally. But 735 00:32:33,960 --> 00:32:35,600 Speaker 1: I think you think outside the box. You We'll go 736 00:32:35,600 --> 00:32:36,920 Speaker 1: back and listen to and we'll link to this in 737 00:32:36,960 --> 00:32:38,800 Speaker 1: the show notes. Our episode that we did with with 738 00:32:38,880 --> 00:32:40,760 Speaker 1: Alan donnegan, and he was talking about even with like 739 00:32:40,800 --> 00:32:42,920 Speaker 1: physical products and stuff like that, how you can get 740 00:32:42,960 --> 00:32:45,280 Speaker 1: proof of concept, how you can start the business without 741 00:32:45,280 --> 00:32:47,120 Speaker 1: taking on any debt. Mat of thinking of a friend 742 00:32:47,200 --> 00:32:49,560 Speaker 1: right now who wants to start a dessert business, and 743 00:32:49,600 --> 00:32:51,200 Speaker 1: he could go out there and he could like rent 744 00:32:51,200 --> 00:32:53,720 Speaker 1: one of those ghost kitchen sort of things and dessert 745 00:32:53,760 --> 00:32:56,400 Speaker 1: starts slinging dissert Banana pudding is what he's best at. 746 00:32:57,280 --> 00:32:59,440 Speaker 2: I know you're daring about. Yeah, and it is good 747 00:32:59,440 --> 00:33:02,400 Speaker 2: banda putting. We'll say it's maybe the best you've ever had. 748 00:33:02,440 --> 00:33:04,560 Speaker 2: It's delicious, And so I think he's going to do 749 00:33:04,600 --> 00:33:07,040 Speaker 2: well if he goes down this path. But it's also 750 00:33:07,360 --> 00:33:11,240 Speaker 2: there's a way to start smaller, get the proof out there, 751 00:33:11,280 --> 00:33:13,440 Speaker 2: start making money actually before you go hook line and 752 00:33:13,480 --> 00:33:15,560 Speaker 2: sinker and start taking on debt to kind of get. 753 00:33:15,360 --> 00:33:18,080 Speaker 1: The ball rolling right. So totally, But yeah, no, I 754 00:33:18,120 --> 00:33:21,000 Speaker 1: love this, this mindset of wanting to work for yourself. 755 00:33:21,080 --> 00:33:23,959 Speaker 1: I think that small business mindset, that appreciation of what 756 00:33:23,960 --> 00:33:26,360 Speaker 1: small businesses can provide, that's one of the greatest things 757 00:33:26,360 --> 00:33:29,000 Speaker 1: about this country. Heck, yeah, all right, well, Matt, that's 758 00:33:29,040 --> 00:33:30,720 Speaker 1: going to do it for this episode. We hope that's all. 759 00:33:30,880 --> 00:33:32,960 Speaker 1: Hope our listeners out there get eight hours of sleep, 760 00:33:32,960 --> 00:33:35,200 Speaker 1: plenty of water. Now you don't have to listen to 761 00:33:35,200 --> 00:33:37,040 Speaker 1: Andrew Hureman because you just heard me say. 762 00:33:37,480 --> 00:33:39,600 Speaker 2: It's true and you just saved yourself three hours. That's right, 763 00:33:40,200 --> 00:33:43,520 Speaker 2: all right. We hope everyone has a fantastic weekend and 764 00:33:43,600 --> 00:33:45,640 Speaker 2: we'll see back here on Monday. So until next time, 765 00:33:45,760 --> 00:34:02,320 Speaker 2: best friends autum, best friends Out.