1 00:00:00,160 --> 00:00:03,440 Speaker 1: Welcome to How to Money. I'm Joel Matt. Today we're 2 00:00:03,440 --> 00:00:08,280 Speaker 1: talking panic, pre buying, untrustworthy TikTok trends, and recession hair. 3 00:00:27,200 --> 00:00:28,120 Speaker 2: Riscent Do I. 4 00:00:28,120 --> 00:00:30,400 Speaker 3: Always have recession? Here? Joe? How's my hair look right now? 5 00:00:30,560 --> 00:00:35,720 Speaker 1: It looks a little recession, not because you're but just. 6 00:00:35,760 --> 00:00:38,319 Speaker 3: Part of entering into middle age. But friend, this is 7 00:00:38,440 --> 00:00:40,920 Speaker 3: our Friday flight. This is our quick sampling of the 8 00:00:40,960 --> 00:00:42,720 Speaker 3: different headlines that we came across this week and how 9 00:00:42,760 --> 00:00:45,240 Speaker 3: they're going to impact your personal finances. By the way, 10 00:00:45,240 --> 00:00:47,960 Speaker 3: stay tuned. On Monday, we're going to be talking about 11 00:00:48,240 --> 00:00:50,720 Speaker 3: I mean, within this Friday flight, we're talking about terrorists 12 00:00:50,720 --> 00:00:52,720 Speaker 3: to a certain extent, but I can't avoid it. Yeah, 13 00:00:52,720 --> 00:00:55,400 Speaker 3: on Monday's episode, we actually have a special ask How 14 00:00:55,440 --> 00:00:58,480 Speaker 3: to Money episode lined up for you, specifically addressing a 15 00:00:58,520 --> 00:01:00,000 Speaker 3: whole lot of tariff concerns. 16 00:01:00,160 --> 00:01:02,280 Speaker 1: Folks have a lot of listener questions to look forward 17 00:01:02,320 --> 00:01:05,000 Speaker 1: to that people sent in because of course, they are 18 00:01:05,040 --> 00:01:07,880 Speaker 1: going to impact our lives in so many ways, depending 19 00:01:07,880 --> 00:01:11,959 Speaker 1: on what form they fully realize themselves. But yeah, so 20 00:01:11,959 --> 00:01:13,479 Speaker 1: people had a lot of questions about that. We try 21 00:01:13,520 --> 00:01:15,960 Speaker 1: to tackle as many as we could and looking forward 22 00:01:15,959 --> 00:01:17,600 Speaker 1: to Yeah, sharing that one with you guys on Monday. 23 00:01:17,680 --> 00:01:20,120 Speaker 3: So you know what I've been seeing around town lately, Joel, 24 00:01:20,240 --> 00:01:21,800 Speaker 3: Not only on the interest. I feel like I've seen 25 00:01:21,880 --> 00:01:24,080 Speaker 3: them most of the time on the interstate, but even 26 00:01:24,080 --> 00:01:26,600 Speaker 3: this morning, as I was biking into our studio, I 27 00:01:26,600 --> 00:01:29,800 Speaker 3: see a Tesla past me and it's got the sticker. 28 00:01:29,959 --> 00:01:31,720 Speaker 3: You know what I'm gonna say, It's got the h 29 00:01:32,000 --> 00:01:35,080 Speaker 3: I about this before you went crazy sticker on there. 30 00:01:35,360 --> 00:01:36,880 Speaker 3: You've seen those, right, I've seen those. Yeah. 31 00:01:37,360 --> 00:01:39,759 Speaker 1: What I found interesting though, I read about the guy 32 00:01:39,880 --> 00:01:43,600 Speaker 1: who started a company selling these elon stickers. Apparently it 33 00:01:43,640 --> 00:01:46,640 Speaker 1: makes like one hundred thousand dollars a month now selling 34 00:01:46,720 --> 00:01:49,520 Speaker 1: these stickers. Now, oh my gosh, it's capitalism at its finest. 35 00:01:49,520 --> 00:01:49,680 Speaker 2: Man. 36 00:01:50,720 --> 00:01:53,000 Speaker 1: Hey, if you guys and I get it too. As 37 00:01:53,040 --> 00:01:56,160 Speaker 1: a Tesla driver, you might want to signal, especially with 38 00:01:56,360 --> 00:01:57,800 Speaker 1: the violence that's being done to Tesla. 39 00:01:58,080 --> 00:01:59,440 Speaker 3: What do you think about the signal? Get it? 40 00:01:59,520 --> 00:02:00,760 Speaker 2: Because you for someone. 41 00:02:00,560 --> 00:02:03,000 Speaker 1: To come up and a cost you for driving to Tesla. 42 00:02:03,800 --> 00:02:05,600 Speaker 1: They think maybe a political stance, but. 43 00:02:06,240 --> 00:02:09,560 Speaker 3: Yeah, for most people's it's a product that someone has purchased, 44 00:02:09,560 --> 00:02:12,440 Speaker 3: like this is not a political statement. How did Tesla's 45 00:02:12,440 --> 00:02:14,640 Speaker 3: go from being a statement of like I'm trying to 46 00:02:15,120 --> 00:02:17,160 Speaker 3: help save the earth and I'm trying to be green, 47 00:02:17,760 --> 00:02:19,919 Speaker 3: or maybe I just like to drive a car that's 48 00:02:19,919 --> 00:02:24,080 Speaker 3: got an amazing amount of instant torque. So thinking that 49 00:02:24,160 --> 00:02:27,160 Speaker 3: this is, you know, a political statement, I think you 50 00:02:27,200 --> 00:02:30,079 Speaker 3: know how it happened. But I think most people are 51 00:02:30,720 --> 00:02:33,560 Speaker 3: less aware or care less about the political side of things, 52 00:02:33,560 --> 00:02:34,880 Speaker 3: and they're just trying to drive a car. 53 00:02:34,760 --> 00:02:35,200 Speaker 2: That they like. 54 00:02:35,400 --> 00:02:37,919 Speaker 3: I guess I get it. It's certainly how much of 55 00:02:37,960 --> 00:02:39,119 Speaker 3: the stickers. How much do they cost? 56 00:02:39,160 --> 00:02:41,639 Speaker 1: I don't know, but apparently five bucks or something. Yeah, 57 00:02:41,760 --> 00:02:43,919 Speaker 1: apparently there's enough profit margin for this guy. The guys 58 00:02:43,919 --> 00:02:44,760 Speaker 1: I can get ton of money. 59 00:02:44,800 --> 00:02:46,960 Speaker 3: It's a cheap form of insurance, right, Like, Yeah, if 60 00:02:46,960 --> 00:02:49,160 Speaker 3: you are trying to keep folks from kying your car 61 00:02:49,639 --> 00:02:53,280 Speaker 3: or slashing your tires, even lighting your car on fire, right, 62 00:02:53,360 --> 00:02:55,040 Speaker 3: I certainly, I certainly understand. 63 00:02:55,040 --> 00:02:56,400 Speaker 2: It's just sad that you would have to do that. 64 00:02:56,800 --> 00:02:59,120 Speaker 3: I think it probably depends on where you live, too, right, 65 00:02:59,160 --> 00:03:02,280 Speaker 3: because if you are living an environment where maybe it's 66 00:03:02,280 --> 00:03:04,360 Speaker 3: a bit more progressive or left leaning, and you're driving 67 00:03:04,400 --> 00:03:07,080 Speaker 3: a Tesla around, you're getting that bombastics? Is it? Bombastic? 68 00:03:07,120 --> 00:03:08,680 Speaker 3: Side eye is that what the kids are saying. 69 00:03:08,880 --> 00:03:11,040 Speaker 1: But then again, that's where a lot of those teslas reside. 70 00:03:11,080 --> 00:03:13,400 Speaker 1: Think about like per capital, there's more teslas in California 71 00:03:13,440 --> 00:03:16,800 Speaker 1: than there are in like maybe more red leading states. 72 00:03:16,960 --> 00:03:19,520 Speaker 3: So fascinating to see if it truly does become a 73 00:03:19,520 --> 00:03:23,000 Speaker 3: political statement if folks who are more right leaning tend 74 00:03:23,040 --> 00:03:26,600 Speaker 3: to tend to buy buy vehicles. But speaking of vehicles, actually, 75 00:03:26,600 --> 00:03:29,680 Speaker 3: did you see last month that retail car sales increased 76 00:03:29,720 --> 00:03:32,600 Speaker 3: by almost five percents While we're talking about cars here, Yeah, 77 00:03:32,639 --> 00:03:35,000 Speaker 3: that's not just evs but just new vehicles across the 78 00:03:35,000 --> 00:03:39,440 Speaker 3: board shot up in anticipation for the upcoming. 79 00:03:39,160 --> 00:03:40,640 Speaker 2: Terrorists, a little bit of that pre buying action. 80 00:03:40,800 --> 00:03:44,040 Speaker 3: At this point, Americans are expecting higher levels of inflation 81 00:03:44,400 --> 00:03:47,560 Speaker 3: than they have in like something close to thirty four years, 82 00:03:48,240 --> 00:03:50,200 Speaker 3: which can lead to pre buying. It can lead to 83 00:03:50,240 --> 00:03:52,279 Speaker 3: this self fulfilling prophecy of sorts. 84 00:03:52,040 --> 00:03:54,080 Speaker 1: Because yeah, if you think prices are going to go up, 85 00:03:54,280 --> 00:03:57,600 Speaker 1: you're more likely to buy more now, sure, because you 86 00:03:57,600 --> 00:03:59,080 Speaker 1: don't want to pay the higher price tag later. 87 00:03:59,240 --> 00:04:01,160 Speaker 3: I get the impulse, and I think it can make 88 00:04:01,200 --> 00:04:03,200 Speaker 3: sense if essentially you're kind of pulling some of that 89 00:04:03,280 --> 00:04:06,000 Speaker 3: purchasing forward, right if it's an item that you were 90 00:04:06,040 --> 00:04:08,880 Speaker 3: already planning on buying. But this is also hard to 91 00:04:08,920 --> 00:04:12,800 Speaker 3: gauge because tariff levels are constantly changing. If there's anything 92 00:04:12,840 --> 00:04:15,080 Speaker 3: that we've learned, it's that which is not normal tariff policy, 93 00:04:15,120 --> 00:04:17,200 Speaker 3: but it is the new normal. Like if you bought 94 00:04:17,240 --> 00:04:19,960 Speaker 3: an iPhone that perhaps you didn't need, well, you might 95 00:04:19,960 --> 00:04:22,800 Speaker 3: be kicking yourself because they were exempted from the terraff. 96 00:04:23,560 --> 00:04:26,440 Speaker 3: Consumer spending at Apple was up twenty percent in the 97 00:04:26,440 --> 00:04:29,599 Speaker 3: first week of April before that carve out, before that 98 00:04:29,640 --> 00:04:32,680 Speaker 3: reprieve was granted. Shelf stable foods have even been purchased 99 00:04:32,680 --> 00:04:35,719 Speaker 3: at higher levels as well. I think some folks. There's 100 00:04:35,760 --> 00:04:38,280 Speaker 3: reports of some folks stocking up on Christmas items as 101 00:04:38,279 --> 00:04:41,000 Speaker 3: they're looking ahead, because think about all the plastic that 102 00:04:41,720 --> 00:04:43,600 Speaker 3: comes from It's not just plastic, but when we. 103 00:04:43,560 --> 00:04:45,440 Speaker 1: Buy most of our toys from China, and if there 104 00:04:45,480 --> 00:04:47,800 Speaker 1: is one hundred and forty five percent tariff that remains 105 00:04:48,200 --> 00:04:51,160 Speaker 1: on those Chinese goods that come overseas, yeah, Christmas is 106 00:04:51,200 --> 00:04:53,359 Speaker 1: going to get a heck of a lot more expensive 107 00:04:53,480 --> 00:04:55,920 Speaker 1: and companies, American companies aren't going to be able to 108 00:04:56,080 --> 00:04:59,600 Speaker 1: shift on a dime. And source those toys elsewhere. So 109 00:04:59,800 --> 00:05:02,400 Speaker 1: I that's true. I get some of that impulse, and 110 00:05:02,440 --> 00:05:04,960 Speaker 1: we don't know how this is going to shake out ultimately. 111 00:05:05,279 --> 00:05:07,320 Speaker 1: I will say the silver lining to buying your Christmas 112 00:05:07,320 --> 00:05:08,960 Speaker 1: presents early maybe you do get a better deal, but 113 00:05:09,000 --> 00:05:11,240 Speaker 1: also you don't have to worry about Christmas shopping later on. 114 00:05:11,279 --> 00:05:12,400 Speaker 2: I mean that sounds kind of nice. 115 00:05:12,560 --> 00:05:14,840 Speaker 3: Until Christmas rolls around. It's just like, oh, yeah, I'm 116 00:05:14,880 --> 00:05:18,600 Speaker 3: not interested in that hobby at all anymore. You're well, sorry. 117 00:05:18,279 --> 00:05:20,120 Speaker 2: Tariffs mom, that was just six months ago. Like you're 118 00:05:20,120 --> 00:05:21,440 Speaker 2: totally gonna disappoint your kids. 119 00:05:22,240 --> 00:05:25,080 Speaker 1: Yeah, well, so interesting to see the knock on effects, right, 120 00:05:25,120 --> 00:05:29,120 Speaker 1: and the kind of domino impact of tariffs and so like. 121 00:05:29,279 --> 00:05:31,160 Speaker 1: Used car prices have actually gone up for the first 122 00:05:31,160 --> 00:05:33,720 Speaker 1: time in two and a half years because of tariffs. 123 00:05:33,440 --> 00:05:36,000 Speaker 3: Which we thought that the pandemic was going to be 124 00:05:36,000 --> 00:05:38,320 Speaker 3: the last time we ever saw used car prices go 125 00:05:38,400 --> 00:05:41,080 Speaker 3: up because of the snarled supply chain, right right, Like 126 00:05:41,120 --> 00:05:43,880 Speaker 3: that's why, like everybody was looking to us and we're like, 127 00:05:44,000 --> 00:05:45,480 Speaker 3: this is a one time blip. 128 00:05:45,240 --> 00:05:46,000 Speaker 2: That was an anomaly. 129 00:05:46,080 --> 00:05:48,840 Speaker 3: Here we go, Yep, yep, another anomaly. 130 00:05:48,400 --> 00:05:52,720 Speaker 1: Another anomaly again in short order, because the supply chain 131 00:05:52,760 --> 00:05:55,120 Speaker 1: of new cars is being threatened by higher prices. It's 132 00:05:55,200 --> 00:05:58,080 Speaker 1: leading to less supply that pre buying we're talking about, 133 00:05:58,120 --> 00:06:01,080 Speaker 1: and then higher prices on on used cars as more 134 00:06:01,120 --> 00:06:03,760 Speaker 1: people turned to that market to get what they need. 135 00:06:04,640 --> 00:06:08,839 Speaker 3: Trump is now the ever grand that's stuck sideways those. 136 00:06:09,920 --> 00:06:12,600 Speaker 2: Yes, the Pandama Canal. 137 00:06:13,080 --> 00:06:15,960 Speaker 3: Yeah, yeah, actually it's not. Well, yeah, luckily the Panama 138 00:06:16,040 --> 00:06:18,280 Speaker 3: Canal has not entered into the equation. I guess recruiting 139 00:06:19,279 --> 00:06:21,480 Speaker 3: changed on that one yet. Oh man, well, so this 140 00:06:21,560 --> 00:06:23,440 Speaker 3: is less I think of capitalizing on a sale and 141 00:06:23,480 --> 00:06:26,000 Speaker 3: more like buying now because of looming threats. Right, this 142 00:06:26,080 --> 00:06:29,039 Speaker 3: is what people are doing. And I think it's okay 143 00:06:29,240 --> 00:06:32,640 Speaker 3: to purchase some items ahead of time, but in these 144 00:06:32,720 --> 00:06:35,320 Speaker 3: uncertain economic times, man, I think it's also important to 145 00:06:35,360 --> 00:06:38,680 Speaker 3: note that cash is important. Right when you're not sure 146 00:06:38,720 --> 00:06:40,600 Speaker 3: what's going to happen with pricing, and maybe when you're 147 00:06:40,680 --> 00:06:43,640 Speaker 3: unsure what's going to happen with your income. Most folks 148 00:06:43,680 --> 00:06:47,359 Speaker 3: just can't afford to stockpile or buy significant amounts of 149 00:06:47,600 --> 00:06:50,760 Speaker 3: items ahead of time, particularly those more expensive items. Like 150 00:06:50,760 --> 00:06:51,960 Speaker 3: I was going to get an iPhone next year, I 151 00:06:52,040 --> 00:06:54,880 Speaker 3: might get it now. Well that's that's like a thousand bucks, right, 152 00:06:55,040 --> 00:06:57,200 Speaker 3: and most people just can't afford to do that in 153 00:06:57,240 --> 00:07:00,640 Speaker 3: anticipation of saving twelve hundred bucks a year from now. 154 00:07:00,920 --> 00:07:02,839 Speaker 3: I think, more than anything, that we want to communicate 155 00:07:02,880 --> 00:07:04,839 Speaker 3: to people is just not don't buy stuff that you 156 00:07:04,839 --> 00:07:09,040 Speaker 3: don't need just because you're worried about price increases, because those, 157 00:07:09,320 --> 00:07:13,280 Speaker 3: as we've seen, are nearly impossible to predict, and it's 158 00:07:13,320 --> 00:07:15,320 Speaker 3: hard to know where tariffs go from here. And I 159 00:07:15,400 --> 00:07:19,760 Speaker 3: get the anxiety that people are feeling, but I also think, well, 160 00:07:20,080 --> 00:07:22,320 Speaker 3: spending more of your money and having less less of 161 00:07:22,520 --> 00:07:25,640 Speaker 3: a cash reserve is it necessarily the right way to 162 00:07:25,720 --> 00:07:28,480 Speaker 3: approach this, and that could lead to even more anxiety 163 00:07:28,480 --> 00:07:31,240 Speaker 3: and potential hartburn later on. People got to have their stuff. Yeah, 164 00:07:31,440 --> 00:07:34,720 Speaker 3: I think that's the mentality. Hey, let's talk about pandemic 165 00:07:34,720 --> 00:07:37,640 Speaker 3: throwbacks for a second longer here. Remember the restaurant search 166 00:07:37,720 --> 00:07:41,520 Speaker 3: charges back during COVID. Oh yeah, the was it like 167 00:07:41,560 --> 00:07:46,080 Speaker 3: a specifically for PPE the protective that's right, was what 168 00:07:46,280 --> 00:07:48,640 Speaker 3: do I even stay for personal protection equipment or some 169 00:07:48,640 --> 00:07:49,200 Speaker 3: something like that. 170 00:07:49,480 --> 00:07:51,800 Speaker 1: And I think people didn't mind it in the moment, 171 00:07:51,920 --> 00:07:55,120 Speaker 1: but the longer those tariffs surcharges lingered on restaurant bills. 172 00:07:55,120 --> 00:07:56,200 Speaker 1: That's when people started to get. 173 00:07:56,200 --> 00:07:58,240 Speaker 3: Yeah, yeah, yeah, it's just like, isn't the government sending 174 00:07:58,280 --> 00:08:01,440 Speaker 3: out like free tests and their masks everywhere now like 175 00:08:01,480 --> 00:08:05,120 Speaker 3: early again, everyone gets a buy early on when we 176 00:08:05,320 --> 00:08:07,440 Speaker 3: had no idea what was going on. But yeah, it 177 00:08:07,440 --> 00:08:10,040 Speaker 3: didn't take very long before I at least was annoyed 178 00:08:10,040 --> 00:08:12,920 Speaker 3: at some of the search charges that we're seeing specifically 179 00:08:13,000 --> 00:08:16,280 Speaker 3: at restaurants. Well, on that note, more companies are now 180 00:08:16,360 --> 00:08:21,800 Speaker 3: imposing tariff surcharges, so instead of jacking out their prices, 181 00:08:21,800 --> 00:08:24,000 Speaker 3: they're finding a way to communicate and to let their 182 00:08:24,040 --> 00:08:27,360 Speaker 3: customers know that, hey, the government policy is to blame 183 00:08:27,400 --> 00:08:31,280 Speaker 3: here for this bigger bill. And depending on where different 184 00:08:31,320 --> 00:08:34,200 Speaker 3: companies are sourcing their products from, depending on how quickly 185 00:08:34,280 --> 00:08:37,720 Speaker 3: they're able to pivot, it won't just be a tariff 186 00:08:37,760 --> 00:08:41,640 Speaker 3: surcharge that you're seeing, but actual higher base prices as well. 187 00:08:42,720 --> 00:08:46,960 Speaker 3: Companies out there, particularly particularly the small and medium sized ones, 188 00:08:47,000 --> 00:08:49,000 Speaker 3: they're in a tough spot, you know, they're kind of 189 00:08:49,000 --> 00:08:50,840 Speaker 3: stuck between a rock and a hard place. They're trying 190 00:08:50,840 --> 00:08:54,400 Speaker 3: to figure out how to proceed, and while there is 191 00:08:54,400 --> 00:08:56,600 Speaker 3: a whole lot of uncertainty now, I think it's again 192 00:08:56,679 --> 00:08:59,199 Speaker 3: sort of like early on during the pandemic, let's just 193 00:08:59,280 --> 00:09:02,920 Speaker 3: kind of be kind to everyone, to all businesses as 194 00:09:03,080 --> 00:09:05,000 Speaker 3: they in particular are trying to figure out how to 195 00:09:05,040 --> 00:09:08,719 Speaker 3: proceed and how to stay solvent. Yeah. Especially Yeah. 196 00:09:08,720 --> 00:09:10,480 Speaker 1: I talked to someone the other day and they have 197 00:09:10,720 --> 00:09:14,120 Speaker 1: a side business and they buy cookwear from China, and 198 00:09:14,880 --> 00:09:18,079 Speaker 1: they just canceled a large order because they were like, well, 199 00:09:18,120 --> 00:09:20,040 Speaker 1: we can't. We don't know if we can be profitable 200 00:09:20,120 --> 00:09:23,840 Speaker 1: right with this tariff in place, and so right now, 201 00:09:23,880 --> 00:09:26,120 Speaker 1: like this business is on hold. And I think there's 202 00:09:26,160 --> 00:09:29,280 Speaker 1: a lot of people that are in a situation like that. 203 00:09:29,600 --> 00:09:31,760 Speaker 1: And for businesses that can't afford to do that, they 204 00:09:31,800 --> 00:09:34,560 Speaker 1: still have a product they have to get to their customers, 205 00:09:34,600 --> 00:09:36,920 Speaker 1: and they don't want to want it to look like 206 00:09:36,920 --> 00:09:39,559 Speaker 1: their prices are jumping dramatically, and they want to communicate. 207 00:09:39,559 --> 00:09:41,600 Speaker 1: Like you said, Matt, hey, this is the reality we're 208 00:09:41,640 --> 00:09:43,480 Speaker 1: all living in right now. Here's how much more it 209 00:09:43,520 --> 00:09:45,760 Speaker 1: is costing. Here's why I'm passing on this higher cost. 210 00:09:46,040 --> 00:09:48,640 Speaker 1: I think it makes more sense than maybe some of 211 00:09:48,720 --> 00:09:53,120 Speaker 1: the long lasting restaurants surcharges we saw, sure, but I 212 00:09:53,160 --> 00:09:55,320 Speaker 1: would say use this maybe as an excuse as an 213 00:09:55,320 --> 00:09:59,319 Speaker 1: individual consumer to start buying secondhand right because tariffs and 214 00:09:59,360 --> 00:10:01,880 Speaker 1: then the threat of more widespread tears, particularly on the 215 00:10:01,880 --> 00:10:05,360 Speaker 1: countries that manufacture so many of our clothes, They've been 216 00:10:05,360 --> 00:10:07,560 Speaker 1: great for thrift stores. People are shopping at thrift stores 217 00:10:07,559 --> 00:10:09,800 Speaker 1: more often. You and I were like, Hey, no matter 218 00:10:09,840 --> 00:10:11,840 Speaker 1: what's happened to the economy, shop at your local thrift 219 00:10:11,840 --> 00:10:15,720 Speaker 1: store anyway. So it's not just that folks are trying 220 00:10:15,760 --> 00:10:18,880 Speaker 1: to avoid paying more for their garments. They're just also 221 00:10:18,920 --> 00:10:23,600 Speaker 1: worried about more lean economic times coming about and downturns. Man, 222 00:10:23,679 --> 00:10:28,080 Speaker 1: what happens in a downturn always is barket basement options. 223 00:10:28,600 --> 00:10:31,079 Speaker 1: They tend to see a whole lot more traffic. And 224 00:10:31,320 --> 00:10:34,480 Speaker 1: it's also interesting, when the economy is booming, people save less. 225 00:10:34,480 --> 00:10:36,800 Speaker 1: When the economy is tightening, people tend to save more. 226 00:10:36,840 --> 00:10:39,400 Speaker 1: It's like the opposite reaction you would assume. And we're 227 00:10:39,400 --> 00:10:43,000 Speaker 1: already keen on places like Facebook, Marketplace. We like yard sales, Matt. 228 00:10:43,040 --> 00:10:45,600 Speaker 1: I know you like freebies on the curb too, that's 229 00:10:45,640 --> 00:10:48,439 Speaker 1: kind of your jam curb alerts. Yeah, but don't forget 230 00:10:48,440 --> 00:10:51,040 Speaker 1: about like goodwill and then just making do with less. 231 00:10:51,080 --> 00:10:54,160 Speaker 1: And I think I might sound odd, but I don't 232 00:10:54,240 --> 00:10:59,360 Speaker 1: think of these shifts in shopping as like a negative thing. Really, 233 00:10:59,440 --> 00:11:01,760 Speaker 1: what you're doing as you're making smart changes to stretch 234 00:11:01,760 --> 00:11:03,800 Speaker 1: your money. I don't think there's any shame in that. 235 00:11:04,240 --> 00:11:06,920 Speaker 1: And I think actually, like I wear my awesome Goodwill 236 00:11:06,960 --> 00:11:09,680 Speaker 1: finds with a badge of honor, I think it's instead 237 00:11:09,679 --> 00:11:11,960 Speaker 1: of a status symbol being a fancy car, it's the 238 00:11:12,000 --> 00:11:14,000 Speaker 1: cool shirt I found that nobody else has because it's 239 00:11:14,000 --> 00:11:15,840 Speaker 1: one of a kind because I got it from the good. 240 00:11:15,640 --> 00:11:18,360 Speaker 3: Will, or the shirt's one of a kind because it's 241 00:11:18,360 --> 00:11:22,720 Speaker 3: got holes in it, which is literally I'm gonna turn 242 00:11:22,720 --> 00:11:23,840 Speaker 3: around here. Can you see my back? 243 00:11:24,200 --> 00:11:26,440 Speaker 2: Oh yeah, that's that's a big hole, large hole. 244 00:11:27,360 --> 00:11:29,920 Speaker 3: You know what. I like this pocket tea and I 245 00:11:29,960 --> 00:11:30,640 Speaker 3: was like this close to. 246 00:11:30,640 --> 00:11:32,839 Speaker 1: Talk to your recession hair. Combined with the holes in 247 00:11:32,880 --> 00:11:34,760 Speaker 1: your shirt, people are probably worried about your buddy. 248 00:11:34,880 --> 00:11:36,880 Speaker 3: We will get to that one here in a little bit, 249 00:11:36,880 --> 00:11:39,319 Speaker 3: but let's talk about a recent TikTok trend that has 250 00:11:39,360 --> 00:11:42,720 Speaker 3: been gathering steam. There have been videos from influencers online. 251 00:11:42,720 --> 00:11:44,920 Speaker 3: Maybe you've even seen some of these influencers because you 252 00:11:44,920 --> 00:11:47,880 Speaker 3: follow them, but they are claiming that luxury handbags or 253 00:11:47,960 --> 00:11:51,079 Speaker 3: Lulu Lemon leggings that are being made in China that 254 00:11:51,200 --> 00:11:54,240 Speaker 3: you yourself can in fact have them for a steal by 255 00:11:54,240 --> 00:11:57,640 Speaker 3: buying directly from these Chinese manufacturers. Why it sounds enticing 256 00:11:57,640 --> 00:11:59,520 Speaker 3: cut off the middle man? Yes, why would you be 257 00:11:59,760 --> 00:12:02,320 Speaker 3: h be willing to pay burbery prices when you can 258 00:12:02,320 --> 00:12:04,760 Speaker 3: get that same luxury item for pennies on the dollar 259 00:12:04,880 --> 00:12:08,080 Speaker 3: jewel and it sounds pretty cool. That's not necessarily true. 260 00:12:08,200 --> 00:12:11,520 Speaker 3: A decent chunk of high end luxury products are actually 261 00:12:11,520 --> 00:12:15,080 Speaker 3: made in France and Italy. They're not made in these 262 00:12:15,160 --> 00:12:19,000 Speaker 3: Chinese factories. The vast majority of Gucci items, for instance, 263 00:12:19,080 --> 00:12:22,600 Speaker 3: are made in Italy, the same with Louis Vuitton. Some 264 00:12:22,840 --> 00:12:26,440 Speaker 3: even make products in the US. That experiment actually hasn't 265 00:12:26,480 --> 00:12:29,520 Speaker 3: gone well. There's been reports of trying to train up 266 00:12:29,720 --> 00:12:33,120 Speaker 3: US workers to make leather handbags and it's like, oh, yeah, 267 00:12:33,440 --> 00:12:35,960 Speaker 3: they're really bad at doing that. 268 00:12:36,000 --> 00:12:37,199 Speaker 2: The artisans in Europe are better than this. 269 00:12:37,640 --> 00:12:40,080 Speaker 3: It's taking years and all they're doing is just like 270 00:12:40,120 --> 00:12:43,600 Speaker 3: a minimal leather pocket or something like that on a handbag. 271 00:12:44,040 --> 00:12:47,920 Speaker 3: It's actually pretty funny, but many luxury items are actually 272 00:12:47,960 --> 00:12:50,760 Speaker 3: manufactured in China and then shipped elsewhere to be quote 273 00:12:50,800 --> 00:12:54,160 Speaker 3: unquote finished. So if you opt to go this route, 274 00:12:55,160 --> 00:12:56,880 Speaker 3: it reminds me of buying on the streets of New 275 00:12:56,960 --> 00:13:01,280 Speaker 3: York Jowel. There is a reasonable chance that the allure 276 00:13:01,320 --> 00:13:04,160 Speaker 3: of trying to snag some of these luxury atoms for cheap, well, 277 00:13:04,280 --> 00:13:06,280 Speaker 3: in fact, you're gonna get a knockoff product. You're not 278 00:13:06,320 --> 00:13:08,760 Speaker 3: getting a crazy deal because you bought direct. You're buying 279 00:13:09,320 --> 00:13:10,640 Speaker 3: you're buying a fake product. 280 00:13:10,679 --> 00:13:11,280 Speaker 2: Have you ever. 281 00:13:11,200 --> 00:13:13,400 Speaker 3: Specifically gone up to New York and gone to Canal Street. 282 00:13:13,440 --> 00:13:16,840 Speaker 1: Oh, for sure, going in high school and we called 283 00:13:16,880 --> 00:13:19,000 Speaker 1: them folk LEAs because Oakley's were very cool back then, 284 00:13:19,080 --> 00:13:20,480 Speaker 1: and you would buy a pair of Focles. 285 00:13:20,520 --> 00:13:21,440 Speaker 2: You knew what you were getting. 286 00:13:21,559 --> 00:13:23,360 Speaker 1: I mean, you knew they were eight dollars for a reason, 287 00:13:23,400 --> 00:13:26,040 Speaker 1: not because they were real Oakley's that had been cut 288 00:13:26,040 --> 00:13:28,680 Speaker 1: out the middleman. It was because they were a knockoff 289 00:13:28,679 --> 00:13:30,839 Speaker 1: that was much cheaper. I think that there's a certain 290 00:13:30,880 --> 00:13:34,000 Speaker 1: sort of badge of honor in getting certain fake items. 291 00:13:34,040 --> 00:13:36,480 Speaker 1: Like the first time I went to New York, I 292 00:13:36,559 --> 00:13:39,880 Speaker 1: drove up there in my jeep with my buddy Kyle. Actually, 293 00:13:39,880 --> 00:13:41,520 Speaker 1: so we didn't drive to New York. We drove to 294 00:13:41,520 --> 00:13:44,120 Speaker 1: Poughkeepsi and took a train from Poughkeepsi to New York. 295 00:13:44,400 --> 00:13:46,320 Speaker 1: It was the opposite of the something Corporate song. 296 00:13:47,920 --> 00:13:51,240 Speaker 3: We didn't wake up in the car, but we specifically, 297 00:13:51,240 --> 00:13:52,640 Speaker 3: of course you're wanting to do, like hit all the 298 00:13:52,679 --> 00:13:55,280 Speaker 3: highlights in New York City. And I can't remember what 299 00:13:55,360 --> 00:13:56,360 Speaker 3: kind of watch it was. I think it was like 300 00:13:56,360 --> 00:13:58,800 Speaker 3: a Brightling, but of course I knew I was getting 301 00:13:59,000 --> 00:14:00,920 Speaker 3: a fake. I think it was like Prightling or something 302 00:14:00,960 --> 00:14:03,680 Speaker 3: like that. I don't know, but I like the hands 303 00:14:03,679 --> 00:14:06,200 Speaker 3: on the face of the dial right, like they fell 304 00:14:06,200 --> 00:14:07,640 Speaker 3: off in like a year, but like I knew that 305 00:14:07,679 --> 00:14:09,679 Speaker 3: was going to happen. But it's also that's part of 306 00:14:09,720 --> 00:14:10,520 Speaker 3: the allure. 307 00:14:10,240 --> 00:14:13,360 Speaker 1: Yeah, exactly. I mean it's like a fraction of the price. 308 00:14:13,760 --> 00:14:16,880 Speaker 1: It's interesting to see these these like people literally who 309 00:14:16,920 --> 00:14:19,800 Speaker 1: work in some of these Chinese Chinese factories trying to 310 00:14:19,800 --> 00:14:22,560 Speaker 1: reach out directly to American consumers and say, hey, skip 311 00:14:22,600 --> 00:14:25,840 Speaker 1: the name brands, we have something very similar or or 312 00:14:25,880 --> 00:14:27,880 Speaker 1: they're basically making it sound like it's the exact same, 313 00:14:28,000 --> 00:14:29,880 Speaker 1: but you can get it directly from them for a 314 00:14:29,880 --> 00:14:33,360 Speaker 1: lot less. And there are there are Yeah, and obviously 315 00:14:33,360 --> 00:14:35,160 Speaker 1: we know that a lot of luxury items are kind 316 00:14:35,160 --> 00:14:37,080 Speaker 1: of handmade, and they are more expensive for a reason. 317 00:14:37,120 --> 00:14:41,240 Speaker 1: But then other luxury companies use manufacturers in China and 318 00:14:41,560 --> 00:14:44,400 Speaker 1: in India, right, and then sometimes they'll finish the item 319 00:14:44,440 --> 00:14:46,000 Speaker 1: in Europe so they can say that it's made in 320 00:14:46,040 --> 00:14:50,640 Speaker 1: Italy because Yeah, for some reason, consumers don't value items 321 00:14:50,640 --> 00:14:52,920 Speaker 1: made in China as much as they do as something 322 00:14:52,920 --> 00:14:56,280 Speaker 1: that at least seems like it's handcrafted in Europe. Fully, 323 00:14:56,400 --> 00:14:58,240 Speaker 1: this reminds me of dupes too, which we've talked about 324 00:14:58,240 --> 00:15:01,239 Speaker 1: on the show. Yeah, some folks pursue who dupes passionately. 325 00:15:01,960 --> 00:15:04,880 Speaker 1: You know, people want the vibe without forking over the 326 00:15:04,920 --> 00:15:08,200 Speaker 1: big Bucks. Walmart, for instance, had the fake burkin bag. 327 00:15:08,240 --> 00:15:11,160 Speaker 1: The working that's sold out incredibly quickly, and then people 328 00:15:11,160 --> 00:15:13,360 Speaker 1: were reselling on eBay for ridiculous sums of money. 329 00:15:13,520 --> 00:15:15,600 Speaker 3: Working bag. Yeah, but you. 330 00:15:15,560 --> 00:15:19,080 Speaker 1: Know, for like the real air Mas burken bag, those 331 00:15:19,120 --> 00:15:22,920 Speaker 1: are made by individual artisans, like with a single piece 332 00:15:22,960 --> 00:15:24,840 Speaker 1: of leather, right, and I think they're handstitched by a 333 00:15:24,880 --> 00:15:28,000 Speaker 1: single artisan. They sell for many, many thousands of dollars 334 00:15:28,240 --> 00:15:30,680 Speaker 1: if you can even get one. I've got no problem 335 00:15:30,880 --> 00:15:34,160 Speaker 1: with people buying luxury items. I don't partake. I don't 336 00:15:34,280 --> 00:15:37,400 Speaker 1: care about luxury goods, but and I don't care about 337 00:15:37,400 --> 00:15:40,640 Speaker 1: attempts to mimic those goods and create something that is similar, 338 00:15:40,720 --> 00:15:44,200 Speaker 1: even if it's lower quality. Just don't think that you're 339 00:15:44,240 --> 00:15:46,680 Speaker 1: getting a real Louis Vuitton handbag for five bucks or 340 00:15:46,720 --> 00:15:48,480 Speaker 1: something like that. I mean, there's this one video where 341 00:15:48,520 --> 00:15:50,320 Speaker 1: this lady is like showing these persons. She's like two dollars, 342 00:15:50,360 --> 00:15:52,600 Speaker 1: two dollars, two dollars. It's just not going to be 343 00:15:52,640 --> 00:15:54,160 Speaker 1: the same thing. It's not gonna be the same quality. 344 00:15:54,320 --> 00:15:54,600 Speaker 3: Nope. 345 00:15:54,640 --> 00:15:57,800 Speaker 1: And most luxury goods, of course we all know this. 346 00:15:58,000 --> 00:16:00,640 Speaker 1: They're an attempt at signaling wealth. But if you spend 347 00:16:00,680 --> 00:16:02,600 Speaker 1: a lot of money on luxury stuff, it has the 348 00:16:02,600 --> 00:16:03,360 Speaker 1: opposite impact. 349 00:16:03,640 --> 00:16:04,360 Speaker 2: You're draining your. 350 00:16:04,320 --> 00:16:06,520 Speaker 1: Bank account to signal wealth that you no longer have. 351 00:16:07,400 --> 00:16:10,560 Speaker 1: And I think there are always exceptions, there are ways 352 00:16:10,640 --> 00:16:13,440 Speaker 1: to get something similar in this kind of wild West 353 00:16:13,440 --> 00:16:15,680 Speaker 1: consumer environment that we live in. But you got to 354 00:16:15,680 --> 00:16:17,400 Speaker 1: do your due diligence, and you got to realize that 355 00:16:17,440 --> 00:16:19,120 Speaker 1: the thing that's being sold to you for five bucks 356 00:16:19,800 --> 00:16:21,560 Speaker 1: is not the same thing as being sold to you 357 00:16:21,640 --> 00:16:24,200 Speaker 1: for fifteen hundred, and hey, maybe you don't need either that's. 358 00:16:24,200 --> 00:16:26,200 Speaker 3: Right, man, But we've got more to get to. We 359 00:16:26,280 --> 00:16:28,560 Speaker 3: got more personal finance stories to get to. We're going 360 00:16:28,600 --> 00:16:31,480 Speaker 3: to talk about the CFPB, We're going to talk about Coachella. 361 00:16:31,560 --> 00:16:32,920 Speaker 3: What other show is going to talk about both the 362 00:16:33,000 --> 00:16:37,440 Speaker 3: CFPB and Coachella in the same podcast. So we got 363 00:16:37,440 --> 00:16:47,080 Speaker 3: that more right after this. All right, Matt, we're back. 364 00:16:47,320 --> 00:16:49,440 Speaker 1: We got more money saving information we got to get 365 00:16:49,480 --> 00:16:52,480 Speaker 1: to on this episode. This is, of course, time for 366 00:16:52,600 --> 00:16:55,240 Speaker 1: the ludicrous headline of the week. This one comes from MarketWatch. 367 00:16:55,400 --> 00:16:59,840 Speaker 1: The headline reads, experts now recommend a twelve month emergency fund. 368 00:17:00,560 --> 00:17:03,480 Speaker 1: And I hate to do this, Matt. I don't want 369 00:17:03,760 --> 00:17:07,320 Speaker 1: to throw a good, a well intentioned person under the bus. 370 00:17:07,320 --> 00:17:09,240 Speaker 3: Here. You're gonna throw me under the bus. I like 371 00:17:09,280 --> 00:17:12,399 Speaker 3: twelve month emergency funds. I'm not. I just think. Okay. 372 00:17:12,520 --> 00:17:15,040 Speaker 1: So this was a specific recommendation of a former guest 373 00:17:15,040 --> 00:17:17,600 Speaker 1: for Meat Safety, and we've had him on before, we 374 00:17:17,960 --> 00:17:20,919 Speaker 1: like Reramiet. But he's been making the rounds. He's now 375 00:17:20,920 --> 00:17:23,480 Speaker 1: telling folks that the twelve months is the emergency fund 376 00:17:23,640 --> 00:17:26,240 Speaker 1: they need now. And I think there's a difference Matt 377 00:17:26,359 --> 00:17:29,240 Speaker 1: versus telling people, Hey, if you really want to save 378 00:17:29,320 --> 00:17:31,879 Speaker 1: up to twelve months more power to you go for it. Yeah, 379 00:17:32,320 --> 00:17:34,840 Speaker 1: I get the impulse to tell people to save more. 380 00:17:35,160 --> 00:17:37,840 Speaker 1: I like savings too, and I have a larger than 381 00:17:37,920 --> 00:17:41,160 Speaker 1: six month emergency fund personally. But I think also this 382 00:17:41,200 --> 00:17:44,200 Speaker 1: is moving the goalposts on people. When you've told people 383 00:17:44,240 --> 00:17:46,480 Speaker 1: for so long, hey, you need three to six months 384 00:17:46,520 --> 00:17:49,840 Speaker 1: worth of savings, which, by the way, most people don't 385 00:17:49,840 --> 00:17:53,040 Speaker 1: have any work close to that. I'm sorry, But changing 386 00:17:53,080 --> 00:17:56,520 Speaker 1: the metrics and then telling everyone to quickly amass six 387 00:17:56,640 --> 00:17:59,960 Speaker 1: or nine months or more worth of expenses, it sounds 388 00:18:00,119 --> 00:18:03,320 Speaker 1: like a panic reaction to me. And so I get 389 00:18:03,320 --> 00:18:06,680 Speaker 1: the destabilizing effects of tariffs, the higher potential for a recession, 390 00:18:07,080 --> 00:18:10,439 Speaker 1: and really, you know, the stomach churning nature of bigger 391 00:18:10,480 --> 00:18:13,880 Speaker 1: market drops that we've seen. But either three to six 392 00:18:13,960 --> 00:18:17,200 Speaker 1: months of emergency money, either it's enough or it isn't. 393 00:18:17,720 --> 00:18:20,199 Speaker 1: And I don't think that changes. Like we know, the 394 00:18:20,200 --> 00:18:22,920 Speaker 1: whole reason of an emergency fund is to save four 395 00:18:23,000 --> 00:18:26,359 Speaker 1: potential tough times. Just because things have gotten a little 396 00:18:26,359 --> 00:18:29,000 Speaker 1: more squrely doesn't mean we need to change the prescription. 397 00:18:29,119 --> 00:18:30,680 Speaker 1: I think for potential teas. 398 00:18:30,680 --> 00:18:32,560 Speaker 3: All right, I might disagree with you just a little 399 00:18:32,560 --> 00:18:34,520 Speaker 3: bit here. I might kind of side with re meat 400 00:18:34,600 --> 00:18:37,320 Speaker 3: because when things change, when like the facts on the 401 00:18:37,320 --> 00:18:39,680 Speaker 3: ground change, I think it's worth considering how much money 402 00:18:39,720 --> 00:18:42,919 Speaker 3: you've got in cash, set asided savings and so like. 403 00:18:42,960 --> 00:18:45,480 Speaker 3: For someone who's got three months, you know, I think 404 00:18:45,520 --> 00:18:47,960 Speaker 3: this might be a call to say, all right, hey, 405 00:18:47,960 --> 00:18:50,280 Speaker 3: maybe I should have like closer to fourty five or six, 406 00:18:50,840 --> 00:18:52,880 Speaker 3: or if you're somebody that has like nine, you're saying 407 00:18:52,960 --> 00:18:58,879 Speaker 3: forty five for months is a bit extreme, the full stop, 408 00:18:59,359 --> 00:19:02,760 Speaker 3: I'll put that out there. But I certainly hate what 409 00:19:02,920 --> 00:19:05,080 Speaker 3: seems like fear mongering though, Like, and that's the part 410 00:19:05,119 --> 00:19:07,160 Speaker 3: that kind of drives me crazy, is that if it 411 00:19:07,200 --> 00:19:10,200 Speaker 3: is like a knee jerk reaction to the headlines and 412 00:19:10,240 --> 00:19:12,399 Speaker 3: it's just like, oh man, you need to be doing this, 413 00:19:12,440 --> 00:19:14,119 Speaker 3: then certainly I don't I don't like that. But if 414 00:19:14,160 --> 00:19:17,400 Speaker 3: you are someone who believes that, and maybe you're somebody 415 00:19:17,720 --> 00:19:20,520 Speaker 3: your financial situation isn't super stable, maybe you're if you're 416 00:19:20,560 --> 00:19:23,760 Speaker 3: a one income household, if you're somebody who works for 417 00:19:23,800 --> 00:19:27,800 Speaker 3: a company that's looking to downsize significantly, I would have. 418 00:19:27,800 --> 00:19:29,560 Speaker 1: Said you should have already been towards that six month 419 00:19:29,640 --> 00:19:31,000 Speaker 1: range and all the three Yeah. 420 00:19:30,800 --> 00:19:34,200 Speaker 3: Yeah, absolutely, But then beyond that given the sortain uncertainty 421 00:19:34,240 --> 00:19:38,080 Speaker 3: that we've seen in the destabilization of our economy and 422 00:19:38,119 --> 00:19:41,199 Speaker 3: certain specific industries as well, I think it's if you 423 00:19:41,280 --> 00:19:43,640 Speaker 3: think that there are big changes coming, well, I think 424 00:19:43,680 --> 00:19:46,560 Speaker 3: it would not just be worth considering that advice, but 425 00:19:46,600 --> 00:19:48,840 Speaker 3: I think it would be wise and even prudent to 426 00:19:49,320 --> 00:19:52,160 Speaker 3: sort of follow your gut to what you as an 427 00:19:52,160 --> 00:19:55,159 Speaker 3: individual feel comfortable with, because I just don't want there 428 00:19:55,240 --> 00:19:56,840 Speaker 3: to be like a blanket prescription of like, no, you 429 00:19:56,840 --> 00:19:58,879 Speaker 3: shouldn't you shouldn't be doing that, because when you know, 430 00:19:59,000 --> 00:20:00,640 Speaker 3: folks batten down the hat, which is when they see 431 00:20:00,680 --> 00:20:02,680 Speaker 3: a storm coming, and I think that this could be 432 00:20:03,080 --> 00:20:05,800 Speaker 3: a way for folks to do that. I don't like 433 00:20:05,920 --> 00:20:08,399 Speaker 3: that personal finance in this way feels like it's getting 434 00:20:08,400 --> 00:20:11,080 Speaker 3: slightly political because a lot of times you see the 435 00:20:11,119 --> 00:20:13,480 Speaker 3: different headlines and it seems like it's just a reaction 436 00:20:13,920 --> 00:20:16,920 Speaker 3: to different publications that are trying to stir up a 437 00:20:16,960 --> 00:20:18,920 Speaker 3: whole lot of clicks and eyeballs. 438 00:20:18,920 --> 00:20:22,600 Speaker 1: Basically, Yeah, So, I guess you as an individual can 439 00:20:22,640 --> 00:20:25,800 Speaker 1: determine how big your emergency fund should be and whether 440 00:20:25,840 --> 00:20:28,679 Speaker 1: you should be more worried right now increasing your savings, 441 00:20:28,680 --> 00:20:30,840 Speaker 1: and I think you make a good point, Matt. I 442 00:20:30,840 --> 00:20:33,280 Speaker 1: think it can make sense to reassess how much you 443 00:20:33,320 --> 00:20:36,240 Speaker 1: have in savings and how vulnerable you are to changes 444 00:20:36,320 --> 00:20:39,919 Speaker 1: right now. But I guess just a blanket prescription to 445 00:20:40,080 --> 00:20:43,320 Speaker 1: change how much you have in savings feels like a 446 00:20:43,359 --> 00:20:44,840 Speaker 1: little too much to me. And I think a lot 447 00:20:44,840 --> 00:20:48,080 Speaker 1: of people that the emergency fund they built up is 448 00:20:48,280 --> 00:20:51,640 Speaker 1: likely sufficient for most cases. And the truth is, too, 449 00:20:51,840 --> 00:20:55,000 Speaker 1: we can't prepare for everything. We cannot be fully prepared 450 00:20:55,000 --> 00:20:58,200 Speaker 1: for everything, and so it might mean missing out on 451 00:20:58,960 --> 00:21:00,600 Speaker 1: some of the investments that you would have made and 452 00:21:00,640 --> 00:21:03,840 Speaker 1: some of the tax advantaged accounts you would have stuck 453 00:21:03,880 --> 00:21:07,120 Speaker 1: money into. If you were to say, oh, wait, twelve 454 00:21:07,160 --> 00:21:09,159 Speaker 1: months is now the standard, I guess I got to 455 00:21:09,160 --> 00:21:12,480 Speaker 1: get their asap. And that could create other problems in 456 00:21:12,520 --> 00:21:13,440 Speaker 1: your financial life too. 457 00:21:13,560 --> 00:21:14,399 Speaker 2: That's true, all right. 458 00:21:14,440 --> 00:21:17,800 Speaker 1: While we're talking about savings and banks, should we worry 459 00:21:17,800 --> 00:21:19,040 Speaker 1: about overdraft fees? 460 00:21:19,080 --> 00:21:19,640 Speaker 2: Coming back? 461 00:21:19,880 --> 00:21:20,120 Speaker 3: Well? 462 00:21:20,480 --> 00:21:23,000 Speaker 1: USA Today had a headline that said it's time to 463 00:21:23,040 --> 00:21:27,359 Speaker 1: worry about overdraft fees and they highlighted the demise of 464 00:21:27,440 --> 00:21:30,040 Speaker 1: the Consumer Financial Protection Bureau, which we've talked about on 465 00:21:30,080 --> 00:21:33,640 Speaker 1: the show. Speaking of negative headlines, yeah, I'm looking so hot, 466 00:21:33,680 --> 00:21:36,679 Speaker 1: right now, and they talked about the scrapping of the 467 00:21:36,720 --> 00:21:40,040 Speaker 1: proposed rule to bring overdraft fees down to five bucks 468 00:21:40,080 --> 00:21:42,800 Speaker 1: later this year. That was supposed to happen in October, 469 00:21:42,840 --> 00:21:46,760 Speaker 1: and now it ain't gonna happen. So yeah, some fear 470 00:21:46,840 --> 00:21:50,280 Speaker 1: mongering articles are being written about that. And yes, it's 471 00:21:50,280 --> 00:21:52,639 Speaker 1: true when you look at the numbers, overdraft fees have 472 00:21:53,280 --> 00:21:56,520 Speaker 1: become a lot more costly over the past decade. But 473 00:21:56,720 --> 00:21:59,359 Speaker 1: at the same time, there's also been a trend reversal 474 00:22:00,080 --> 00:22:02,560 Speaker 1: by some of our favorite online banks to eliminate those 475 00:22:02,640 --> 00:22:08,560 Speaker 1: fees altogether. So the disparity is is significant. Right, Even 476 00:22:08,600 --> 00:22:12,800 Speaker 1: for overdraft fees don't have a federally mandated cap you 477 00:22:13,320 --> 00:22:16,080 Speaker 1: as a person, you can still avoid them by doing 478 00:22:16,240 --> 00:22:19,320 Speaker 1: business with banks that don't charge them. So Capital One 479 00:22:19,480 --> 00:22:24,040 Speaker 1: discover ally CI all of those banks that we typically recommend, 480 00:22:24,320 --> 00:22:28,120 Speaker 1: they don't charge any sort of overdraft fee at all. 481 00:22:28,119 --> 00:22:29,480 Speaker 1: They've eliminated them all together. 482 00:22:29,520 --> 00:22:30,280 Speaker 3: Those are the good ones. 483 00:22:30,440 --> 00:22:33,960 Speaker 1: Yeah, Wells Fargo, what do they charge Matt per overdraft 484 00:22:33,960 --> 00:22:38,720 Speaker 1: infraction more than l thirty five bucks? That's ridiculous. Chase 485 00:22:38,800 --> 00:22:39,520 Speaker 1: so much money. 486 00:22:39,560 --> 00:22:43,080 Speaker 3: Chase gives you a deal at thirty four per per 487 00:22:43,119 --> 00:22:45,320 Speaker 3: time you overt case that one dollar was going to 488 00:22:45,359 --> 00:22:46,119 Speaker 3: make a difference for you. 489 00:22:46,280 --> 00:22:46,919 Speaker 2: Right there you go. 490 00:22:47,040 --> 00:22:49,880 Speaker 1: And then the incredibly benevolent folks at Bank of America 491 00:22:49,920 --> 00:22:54,400 Speaker 1: they charge a much less offensive ten dollars per overdraft infraction. 492 00:22:54,880 --> 00:22:57,920 Speaker 1: That's still offensive in my book, but it's less offensive 493 00:22:58,400 --> 00:23:02,800 Speaker 1: I feel infinitely more than zero, right exactly. And so 494 00:23:02,960 --> 00:23:04,919 Speaker 1: I guess people might read this, and they might they 495 00:23:04,960 --> 00:23:08,320 Speaker 1: might be upset at the fact that banks aren't being 496 00:23:08,320 --> 00:23:12,840 Speaker 1: mandated to remove overdraft fees or reduce them significantly. And 497 00:23:12,920 --> 00:23:15,240 Speaker 1: I say, well, there's actually a lot of competition in 498 00:23:15,280 --> 00:23:17,920 Speaker 1: that space, and some awesome banks have made that part 499 00:23:17,920 --> 00:23:20,359 Speaker 1: of their marketing materials, kind of like Southwest did for 500 00:23:20,640 --> 00:23:24,159 Speaker 1: free check bags. No longer, sadly, but it's one of 501 00:23:24,160 --> 00:23:26,560 Speaker 1: those things that makes you stand out in this banking environment. 502 00:23:26,840 --> 00:23:29,120 Speaker 1: Go with a bank that doesn't charge over draft fees, 503 00:23:29,600 --> 00:23:31,880 Speaker 1: and hopefully you're paying enough attention to your finances too, 504 00:23:32,040 --> 00:23:33,840 Speaker 1: and you've got enough patting in there where over draft 505 00:23:33,840 --> 00:23:34,639 Speaker 1: fees aren't a problem. 506 00:23:34,840 --> 00:23:38,000 Speaker 3: On the note of Southwest, what if them dropping the 507 00:23:38,080 --> 00:23:40,399 Speaker 3: free check bags is just a headfake and then they 508 00:23:40,400 --> 00:23:42,520 Speaker 3: bring it back, Oh my gosh, and that we've all 509 00:23:42,520 --> 00:23:45,720 Speaker 3: been played and it just engenders more love for them 510 00:23:45,760 --> 00:23:47,840 Speaker 3: because they're like, you know what, we listen to the people, 511 00:23:48,240 --> 00:23:50,800 Speaker 3: and we are a company for the people that would 512 00:23:50,800 --> 00:23:51,600 Speaker 3: be smart. 513 00:23:51,280 --> 00:23:54,360 Speaker 1: When I would love that because well, I will say this, 514 00:23:54,480 --> 00:23:57,399 Speaker 1: I booked a trip for this fall, and I booked 515 00:23:57,480 --> 00:24:00,439 Speaker 1: before they stop the free check bag theme because this 516 00:24:00,520 --> 00:24:03,119 Speaker 1: is my backpacking trip. It's a really big bag I'm bringing, 517 00:24:03,760 --> 00:24:06,560 Speaker 1: and so I was glad to get in under that 518 00:24:07,040 --> 00:24:10,320 Speaker 1: free check bag wire. Yeah, let's keep going the word recession. 519 00:24:10,680 --> 00:24:13,080 Speaker 1: We've heard that being tossed around a whole lot more 520 00:24:13,160 --> 00:24:17,240 Speaker 1: right now. Understandably, we actually covered recessions in our latest newsletter, plug. 521 00:24:17,000 --> 00:24:18,919 Speaker 2: For the Hada Money newsletter. Go sign up if you're. 522 00:24:18,760 --> 00:24:22,600 Speaker 3: Not hoadamoney dot com forward slash newsletter, well Joel. In 523 00:24:22,640 --> 00:24:26,639 Speaker 3: times of greater uncertainty, frugality starts to become cool again, 524 00:24:27,280 --> 00:24:29,879 Speaker 3: ways to save more. They're starting to trend in ways 525 00:24:29,880 --> 00:24:33,480 Speaker 3: that they didn't when the economy was firing on all cylinders, 526 00:24:33,800 --> 00:24:37,000 Speaker 3: and that's where recession hair comes in. This appears to 527 00:24:37,040 --> 00:24:40,399 Speaker 3: be one of those where ladies they're waiting longer between 528 00:24:40,440 --> 00:24:44,000 Speaker 3: salam visits, they're letting their roots show or power to you. Ladies, 529 00:24:44,040 --> 00:24:46,920 Speaker 3: I'm all about that, letting their hair grow long and 530 00:24:47,200 --> 00:24:49,800 Speaker 3: going back to the natural color. I think the male 531 00:24:49,920 --> 00:24:53,240 Speaker 3: equivalent is certainly what I did during the pandemic, letting 532 00:24:53,240 --> 00:24:55,639 Speaker 3: the hair go really long or cutting it yourself. We 533 00:24:55,640 --> 00:24:58,240 Speaker 3: should post a picture of that for people you've got 534 00:24:58,240 --> 00:25:00,359 Speaker 3: to grow really long. I look significantly old older. That 535 00:25:00,440 --> 00:25:03,280 Speaker 3: was like double ear, man, it was. It was pretty crazy. Yeah, 536 00:25:03,800 --> 00:25:06,480 Speaker 3: you know, and I did the math. Because this kind 537 00:25:06,520 --> 00:25:09,520 Speaker 3: of behavior compounded over time, Joel, it makes the big 538 00:25:09,520 --> 00:25:13,080 Speaker 3: difference cutting over different. So the average the average dude's 539 00:25:13,080 --> 00:25:16,840 Speaker 3: haircut is thirty bucks and typically depends on who you are, 540 00:25:16,960 --> 00:25:19,920 Speaker 3: but most guys go to the barber anywhere between three 541 00:25:19,960 --> 00:25:22,600 Speaker 3: and six weeks. So I figured, all right, thirty bucks. 542 00:25:22,640 --> 00:25:25,280 Speaker 3: Let's say every month you do that for thirty years, 543 00:25:25,280 --> 00:25:27,280 Speaker 3: which is how long I've been cutting my own hair. 544 00:25:27,320 --> 00:25:30,760 Speaker 3: Now you're looking at over forty thousand dollars, man, compounded 545 00:25:30,840 --> 00:25:34,120 Speaker 3: in the market. Isn't that not insane? Just by this 546 00:25:34,160 --> 00:25:35,280 Speaker 3: one little thing that I do. 547 00:25:35,280 --> 00:25:37,600 Speaker 1: Myself well, and a set of hair clippers once a 548 00:25:37,640 --> 00:25:41,480 Speaker 1: month us what thirty bucks? And with the additional because 549 00:25:41,520 --> 00:25:44,359 Speaker 1: you have some additional links that you have for the 550 00:25:44,359 --> 00:25:45,800 Speaker 1: top of your hair, so you don't have to use 551 00:25:45,800 --> 00:25:48,040 Speaker 1: scissors on it, because that's where things get a little 552 00:25:48,080 --> 00:25:49,639 Speaker 1: score at using scissors, where it. 553 00:25:49,640 --> 00:25:50,199 Speaker 3: Gets a little dice. 554 00:25:50,320 --> 00:25:53,400 Speaker 1: Yeah, And I know for for women it's different, I know, 555 00:25:54,000 --> 00:25:56,320 Speaker 1: and everyone has our different kind of fashion standard, but 556 00:25:56,359 --> 00:25:57,320 Speaker 1: they want to it's. 557 00:25:57,160 --> 00:25:58,440 Speaker 3: Got their own craft beer equivalent. 558 00:25:58,480 --> 00:26:00,240 Speaker 1: But I kind of like when people lean into this 559 00:26:00,280 --> 00:26:02,520 Speaker 1: stuff and they and they make it cool to be frugal, 560 00:26:02,960 --> 00:26:05,440 Speaker 1: because I think it just gives people the hall pass 561 00:26:05,560 --> 00:26:07,600 Speaker 1: to say, okay, cool, Yeah, I'm gonna jump in on that. 562 00:26:07,640 --> 00:26:10,399 Speaker 1: I'm not doing this. And it's similar to it's like 563 00:26:10,440 --> 00:26:13,919 Speaker 1: wearing that frugal that frugal change as a as a 564 00:26:13,920 --> 00:26:16,240 Speaker 1: badge of honor instead of being feeling like ashamed about 565 00:26:16,240 --> 00:26:20,640 Speaker 1: it or feeling like that cost cutting endeavor is somehow badly. 566 00:26:20,320 --> 00:26:23,320 Speaker 2: Reflected on you for the whole world. That's right, Yeah, exactly. 567 00:26:23,560 --> 00:26:25,920 Speaker 1: Well, and then say some other ways, we could say 568 00:26:25,920 --> 00:26:28,640 Speaker 1: Matt is not buying cutting edge technology, right. 569 00:26:29,040 --> 00:26:30,440 Speaker 3: Well, I didn't realize this. 570 00:26:30,480 --> 00:26:32,040 Speaker 2: Was a thing. I just saw that this week. Eight 571 00:26:32,119 --> 00:26:34,960 Speaker 2: k TVs. Did you know that was. 572 00:26:34,359 --> 00:26:36,560 Speaker 3: These are like yeah, there, like the super fancy ones. 573 00:26:36,600 --> 00:26:39,639 Speaker 1: Somehow I didn't know that the resolution on TV screens 574 00:26:39,640 --> 00:26:41,400 Speaker 1: had gotten twice as good. 575 00:26:41,240 --> 00:26:44,840 Speaker 3: I guess the newest iPhones, or maybe it's just as good. 576 00:26:45,080 --> 00:26:46,560 Speaker 3: But that makes sense, like if you're looking at an 577 00:26:46,560 --> 00:26:48,480 Speaker 3: iPhone because it's a flip from your face or whatever, 578 00:26:48,520 --> 00:26:50,320 Speaker 3: but a TV is supposed to be far away, Like 579 00:26:50,520 --> 00:26:52,040 Speaker 3: can you even tell the difference? 580 00:26:52,119 --> 00:26:54,439 Speaker 1: That's a good question, and it seems like you can. 581 00:26:54,960 --> 00:26:57,359 Speaker 1: So the tech nerds that's seen that, they wrote about 582 00:26:57,359 --> 00:26:59,840 Speaker 1: this in particular, and they said, actually that you shouldn't 583 00:26:59,840 --> 00:27:01,840 Speaker 1: buy one of these because they're too expensive. And if 584 00:27:01,880 --> 00:27:03,400 Speaker 1: anybody is going to tell you to buy a new, 585 00:27:03,400 --> 00:27:05,280 Speaker 1: fancy TV, it's the people I've seen it because they're 586 00:27:05,280 --> 00:27:07,680 Speaker 1: super into electronics, It's true, and they want to tell 587 00:27:07,680 --> 00:27:10,160 Speaker 1: you how awesome it is and why it's worth the 588 00:27:10,200 --> 00:27:12,639 Speaker 1: more expensive price tag. But their take was that the 589 00:27:12,880 --> 00:27:16,560 Speaker 1: older O lead technology does almost as much at a 590 00:27:16,560 --> 00:27:19,600 Speaker 1: fraction of the price. And on top of that, what 591 00:27:19,680 --> 00:27:22,359 Speaker 1: I would say is, if history is any indication, ak 592 00:27:22,480 --> 00:27:25,119 Speaker 1: TVs are going to get better and cheaper in a 593 00:27:25,119 --> 00:27:28,600 Speaker 1: matter of years, if not months, So you know, waiting 594 00:27:28,680 --> 00:27:32,600 Speaker 1: until price drops happen and technology improves is wise. You 595 00:27:32,640 --> 00:27:34,280 Speaker 1: don't want to be the early adopter of the new 596 00:27:34,280 --> 00:27:37,960 Speaker 1: technology that's overly priced. It's similar to basically every other 597 00:27:38,000 --> 00:27:41,600 Speaker 1: thing in the technology realm. The advances just aren't as 598 00:27:41,600 --> 00:27:43,520 Speaker 1: groundbreaking as they've been in the past. When you go 599 00:27:43,600 --> 00:27:47,040 Speaker 1: from from you know, seven to twenty to four K, man, 600 00:27:47,040 --> 00:27:48,399 Speaker 1: that's a big jump. When you go from four K 601 00:27:48,480 --> 00:27:51,280 Speaker 1: to eight K or probably sixteen K in a couple 602 00:27:51,320 --> 00:27:52,840 Speaker 1: of years or something like that, Like, you're just not 603 00:27:52,880 --> 00:27:54,199 Speaker 1: going to notice as much of a difference. 604 00:27:54,240 --> 00:27:56,400 Speaker 3: Now, that's true. Let's keep the frugal live and train 605 00:27:56,640 --> 00:27:59,520 Speaker 3: go angel. Another way that some companies out there are 606 00:27:59,520 --> 00:28:02,760 Speaker 3: trying to ki to price conscious consumers is to offer 607 00:28:02,800 --> 00:28:06,040 Speaker 3: guaranteed pricing for longer periods of time in order to 608 00:28:06,400 --> 00:28:10,399 Speaker 3: combat this uncertainty that everyone is experiencing. Which sounds nice, 609 00:28:10,960 --> 00:28:13,240 Speaker 3: but here's the thing, you actually don't need it, and 610 00:28:13,359 --> 00:28:16,840 Speaker 3: you'd be overpaying in most cases if you opted for it. 611 00:28:16,880 --> 00:28:21,160 Speaker 3: So Verizon in particular, they're offering this guaranteed three year 612 00:28:21,240 --> 00:28:25,440 Speaker 3: price lock in basically for streaming customers. T Mobile is 613 00:28:25,480 --> 00:28:29,200 Speaker 3: doing something very similar with their wireless service, but first 614 00:28:29,200 --> 00:28:33,360 Speaker 3: of all, the prices are higher than our favorite mv 615 00:28:33,480 --> 00:28:35,480 Speaker 3: and os. On the note of T Mobile here, so 616 00:28:35,600 --> 00:28:39,160 Speaker 3: our favorite mobile virtual network operator carriers like Mint and 617 00:28:39,600 --> 00:28:43,360 Speaker 3: US Mobile are right out of the gate more affordable. Yeah. 618 00:28:43,400 --> 00:28:46,239 Speaker 3: But then secondly, phone bills have been going down in 619 00:28:46,280 --> 00:28:48,960 Speaker 3: recent years, and so a price lock is actually the 620 00:28:48,960 --> 00:28:51,280 Speaker 3: opposite of what you want. You want to be able 621 00:28:51,280 --> 00:28:55,960 Speaker 3: to shop around as the competition has increased, and as 622 00:28:56,080 --> 00:28:59,560 Speaker 3: competition has increased, prices they have dropped, and we want 623 00:28:59,600 --> 00:29:01,880 Speaker 3: you to take advantage of those dropping prices. 624 00:29:02,040 --> 00:29:04,760 Speaker 1: Someone would benefit, a company would benefit from you price 625 00:29:04,800 --> 00:29:07,680 Speaker 1: locking when they charge more and when that thing is 626 00:29:07,680 --> 00:29:10,360 Speaker 1: actually experiencing deflation, which is what's happening in the cell 627 00:29:10,400 --> 00:29:10,840 Speaker 1: phone space. 628 00:29:10,920 --> 00:29:13,240 Speaker 3: What they're doing is they're looking to provide stability for 629 00:29:13,360 --> 00:29:15,640 Speaker 3: themselves as a company as opposed to you. 630 00:29:16,120 --> 00:29:20,240 Speaker 1: It's what sounds what sounds beneficial yeah to you, is 631 00:29:20,320 --> 00:29:23,600 Speaker 1: ultimately beneficial for them. So yeah, don't when you see 632 00:29:23,600 --> 00:29:26,440 Speaker 1: those price locks, you might think what a great company. 633 00:29:26,480 --> 00:29:27,920 Speaker 1: That is so sweet, I can't wait to take advantage 634 00:29:27,920 --> 00:29:29,760 Speaker 1: of that. But actually the opposite might be true. So 635 00:29:30,000 --> 00:29:32,600 Speaker 1: dig one level deeper. And it's no secret to Matt 636 00:29:32,640 --> 00:29:35,560 Speaker 1: that that concert prices have soared in recent years. That's 637 00:29:35,600 --> 00:29:39,480 Speaker 1: partly because of Ticketmaster's monopoly boo, but demand it's also 638 00:29:39,640 --> 00:29:42,720 Speaker 1: up as people prioritize those in real life experiences like 639 00:29:42,760 --> 00:29:45,800 Speaker 1: live shows. Yep, so going to a concert, it's amazing. 640 00:29:45,800 --> 00:29:49,160 Speaker 1: I think people assumed in the age of the internet 641 00:29:49,440 --> 00:29:52,400 Speaker 1: and like, I can literally stream shows for my favorite 642 00:29:52,440 --> 00:29:55,080 Speaker 1: artists online, but that only gets to be more excited 643 00:29:55,120 --> 00:29:57,240 Speaker 1: to go see the show in person. And I think 644 00:29:57,240 --> 00:29:59,560 Speaker 1: that's kind of what most people are feeling well now. 645 00:29:59,640 --> 00:30:01,680 Speaker 1: And of course, of course, you can pay for those 646 00:30:01,680 --> 00:30:05,080 Speaker 1: concert tickets in installments instead of paying for it all 647 00:30:05,160 --> 00:30:07,760 Speaker 1: up front. There have been a few articles written about 648 00:30:07,960 --> 00:30:10,520 Speaker 1: Coachella payment plans. Coachella is like two weekends. Happened this 649 00:30:10,520 --> 00:30:13,600 Speaker 1: past weekend and this coming weekend. Well, the La Times 650 00:30:13,880 --> 00:30:18,600 Speaker 1: called the Coachella payment plan financially smart to pay for 651 00:30:18,600 --> 00:30:21,240 Speaker 1: your six hundred dollars Coachella ticket over the course of 652 00:30:21,280 --> 00:30:21,760 Speaker 1: many months. 653 00:30:21,800 --> 00:30:23,080 Speaker 3: A lot of booing during the segment. 654 00:30:23,200 --> 00:30:26,840 Speaker 1: Of course, we think that is trash advice. La Times. 655 00:30:27,200 --> 00:30:30,080 Speaker 1: Get your game up. You pay an extra forty one 656 00:30:30,120 --> 00:30:33,880 Speaker 1: dollars for the privilege of paying for those tickets over time. 657 00:30:34,280 --> 00:30:35,920 Speaker 1: And I get that six hundred bucks is a lot 658 00:30:35,960 --> 00:30:38,040 Speaker 1: to pay. It's a lot of money for a weekend 659 00:30:38,440 --> 00:30:41,840 Speaker 1: festival to go see your favorite bands. Still, we think, 660 00:30:41,920 --> 00:30:45,200 Speaker 1: and this might sound incredibly old, school Matte. Maybe we're 661 00:30:45,360 --> 00:30:48,520 Speaker 1: like trad dads for suggesting that you have the cash 662 00:30:48,560 --> 00:30:50,400 Speaker 1: to pay for the thing you want to do upfront. 663 00:30:50,800 --> 00:30:55,480 Speaker 1: Man Like okay, Boomer, But that's truly the advice that 664 00:30:55,520 --> 00:30:57,400 Speaker 1: we have for you, and it's just tried and true. 665 00:30:57,440 --> 00:31:00,360 Speaker 1: It makes sense. Yeah, you should skip Coachella, you should 666 00:31:00,360 --> 00:31:02,560 Speaker 1: skip the concert you want to go to and save 667 00:31:02,640 --> 00:31:04,800 Speaker 1: up for next year's version. If you don't have the 668 00:31:04,800 --> 00:31:05,480 Speaker 1: money to pay for it. 669 00:31:05,560 --> 00:31:08,240 Speaker 3: Yeah, it's to the La Times defense or to the 670 00:31:08,240 --> 00:31:10,320 Speaker 3: specific writer. He did say, if it's in your budget, 671 00:31:10,800 --> 00:31:13,240 Speaker 3: it's not your budget. If you have it kind of 672 00:31:13,240 --> 00:31:15,479 Speaker 3: depends on what your definition of what's in your budget, right, 673 00:31:15,480 --> 00:31:18,040 Speaker 3: Because in a similar way, we'll say, well, if you 674 00:31:18,040 --> 00:31:20,040 Speaker 3: have the cash on hand, if it's in your budget, 675 00:31:20,040 --> 00:31:23,040 Speaker 3: then sure, put that expensive charge on your credit card. 676 00:31:23,240 --> 00:31:26,120 Speaker 3: But even beyond that, it's the buy now, pay later, 677 00:31:26,200 --> 00:31:30,640 Speaker 3: the installment buying method, even if they're not charging you, 678 00:31:30,760 --> 00:31:32,720 Speaker 3: right because a lot of them they don't charge interest. 679 00:31:32,880 --> 00:31:34,360 Speaker 3: A lot of them actually do, or they have options 680 00:31:34,400 --> 00:31:36,800 Speaker 3: where you are paying interest. But what I think I've 681 00:31:36,800 --> 00:31:39,120 Speaker 3: realized about the buy now, pay later, where you're paying 682 00:31:39,120 --> 00:31:41,600 Speaker 3: it in installments, is that it in fact makes you 683 00:31:41,960 --> 00:31:45,240 Speaker 3: an installment buyer, and it's a slippery slope before you're 684 00:31:45,280 --> 00:31:47,160 Speaker 3: carrying a balance on your credit card because oh well, 685 00:31:47,200 --> 00:31:49,840 Speaker 3: that's also an installment. And then boom, what has magically 686 00:31:50,120 --> 00:31:52,280 Speaker 3: happened right in front of our eyes here that you 687 00:31:52,400 --> 00:31:55,680 Speaker 3: haven't even realized? You are living paycheck to paycheck? Like 688 00:31:55,720 --> 00:31:57,960 Speaker 3: that's what that does when you get on this, when 689 00:31:58,000 --> 00:32:00,480 Speaker 3: all of your expenses are essentially being automated without you 690 00:32:00,520 --> 00:32:02,520 Speaker 3: even thinking about it, Like that's like the very edition, 691 00:32:03,080 --> 00:32:05,760 Speaker 3: very definition of living paycheck to paycheck. And I think 692 00:32:05,760 --> 00:32:09,520 Speaker 3: that's what I'm realizing that I dislike about the buy now, 693 00:32:09,640 --> 00:32:12,800 Speaker 3: pay later is the habit formation that is taking place. 694 00:32:12,880 --> 00:32:16,840 Speaker 1: It's the proverbial frog in the water that gets hotter 695 00:32:16,840 --> 00:32:19,320 Speaker 1: and hotter and doesn't jump out. And again, I don't 696 00:32:19,320 --> 00:32:21,320 Speaker 1: know if that's scientifically accurate or not, but it's it's 697 00:32:21,360 --> 00:32:24,000 Speaker 1: a good analogy. It's a good illustration. But I was 698 00:32:24,040 --> 00:32:26,280 Speaker 1: talking about that with a friend this morning, just questioning 699 00:32:26,760 --> 00:32:31,160 Speaker 1: the things that seem societally normal, because where they're going 700 00:32:31,200 --> 00:32:35,400 Speaker 1: to lead to is some pretty pisspoor financial circumstances. So 701 00:32:35,720 --> 00:32:37,960 Speaker 1: we want you to avoid what's quote unquote normal, be 702 00:32:38,000 --> 00:32:40,880 Speaker 1: a little more abnormal and what that means is like 703 00:32:41,000 --> 00:32:43,600 Speaker 1: paying cash upfront or putting on the credit card, but 704 00:32:43,680 --> 00:32:45,400 Speaker 1: having the money in the bank account to pay the 705 00:32:45,400 --> 00:32:47,680 Speaker 1: balance off on time and in full. If you have 706 00:32:47,760 --> 00:32:50,520 Speaker 1: to take the payment plan that costs extra money in 707 00:32:50,600 --> 00:32:52,720 Speaker 1: order to afford the ticket, you can't afford the ticket. 708 00:32:52,760 --> 00:32:55,760 Speaker 3: Agreed, Buddy. That's going to be though for our Friday flight. 709 00:32:55,800 --> 00:32:58,360 Speaker 3: We hope everyone has a fantastic weekend. And if you're 710 00:32:58,400 --> 00:33:01,440 Speaker 3: looking for our sh notes some of the different articles 711 00:33:01,520 --> 00:33:04,760 Speaker 3: we mentioned, you can find that up at howtomoney dot com. Also, 712 00:33:04,800 --> 00:33:08,240 Speaker 3: we've got a fantastic page of resources that we will 713 00:33:08,280 --> 00:33:10,800 Speaker 3: link to in the show notes for this specific episode. 714 00:33:10,800 --> 00:33:12,880 Speaker 3: If you're essentially you're looking for the outline of what 715 00:33:12,920 --> 00:33:14,720 Speaker 3: it is that you should be doing with your money, 716 00:33:15,000 --> 00:33:18,120 Speaker 3: and of course that's for slash resources where you can 717 00:33:18,120 --> 00:33:20,520 Speaker 3: find those. But Buddy, that's gonna be it for this episode. 718 00:33:20,560 --> 00:33:24,080 Speaker 3: Until next time, best Friends Out, Best Friends Out.