1 00:00:00,080 --> 00:00:02,759 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt, 2 00:00:02,880 --> 00:00:25,960 Speaker 1: and today we're answering your listener questions. Yeah, so listen 3 00:00:25,960 --> 00:00:28,480 Speaker 1: a questions. We're actually gonna answer twelve of them this time. 4 00:00:28,880 --> 00:00:31,600 Speaker 1: You know, normally we do five, but this is gonna 5 00:00:31,600 --> 00:00:33,800 Speaker 1: be like a three hour long podcast. Yeah, we're gonna 6 00:00:33,800 --> 00:00:35,879 Speaker 1: cover some house acking and actually if you don't know 7 00:00:36,120 --> 00:00:37,960 Speaker 1: what that is, stick around because we'll talk about that. 8 00:00:38,320 --> 00:00:40,760 Speaker 1: A listener has a question abounce as parents, like how 9 00:00:40,800 --> 00:00:43,159 Speaker 1: should we be teaching our kids about money? And a 10 00:00:43,320 --> 00:00:46,360 Speaker 1: question too about business banking, you know, business checking account 11 00:00:46,520 --> 00:00:48,519 Speaker 1: What our thoughts are maybe the best places to go 12 00:00:48,680 --> 00:00:51,880 Speaker 1: for that. So I'm looking forward to answering those plus 13 00:00:51,920 --> 00:00:54,400 Speaker 1: a couple others. Sounds good, buddy, looking forward to it. 14 00:00:54,720 --> 00:00:57,400 Speaker 1: Before we dive into the listener questions, though, I wanted 15 00:00:57,440 --> 00:00:59,520 Speaker 1: to let you know that, you know, one of our 16 00:00:59,520 --> 00:01:02,480 Speaker 1: first episodes of Matt, we talked about the potential of 17 00:01:02,840 --> 00:01:05,360 Speaker 1: doing an airbnb, both of us in our backyards. Yeah. Yeah, 18 00:01:05,400 --> 00:01:07,399 Speaker 1: you were thinking about an air stream that was in 19 00:01:07,440 --> 00:01:10,120 Speaker 1: your backyard and I was thinking about digging out the 20 00:01:10,160 --> 00:01:12,679 Speaker 1: cross space essentially under my house because it was my hand. 21 00:01:12,720 --> 00:01:15,319 Speaker 1: You said, yeah, by hand because I have plenty of 22 00:01:15,400 --> 00:01:17,480 Speaker 1: time on my hands and that's something I could do 23 00:01:17,600 --> 00:01:19,360 Speaker 1: right and not enough dirt on them. So that's why 24 00:01:19,360 --> 00:01:21,840 Speaker 1: you're going. But it turns out that was episode two, 25 00:01:21,840 --> 00:01:25,640 Speaker 1: by the way, and that was so long ago, and 26 00:01:25,720 --> 00:01:28,200 Speaker 1: you failed, I will say, on digging out your own basement. Yeah, 27 00:01:28,200 --> 00:01:30,960 Speaker 1: I did not dig it out by hand, but we 28 00:01:31,160 --> 00:01:33,720 Speaker 1: did something that that's gonna work out for us. And 29 00:01:33,840 --> 00:01:36,360 Speaker 1: you did you get the air stream? No? I didn't 30 00:01:36,360 --> 00:01:39,080 Speaker 1: get the airstream, so I too, mega fail. But now 31 00:01:39,160 --> 00:01:42,360 Speaker 1: I'm looking at an accessory dwelling unit. The city of 32 00:01:42,400 --> 00:01:45,960 Speaker 1: Atlanta in in seventeen pass a law that allowed folks 33 00:01:45,959 --> 00:01:48,760 Speaker 1: to essentially build permanent tiny houses in their backyard. So 34 00:01:48,760 --> 00:01:50,560 Speaker 1: it can't be on wheels, it can't be on a trailer, 35 00:01:50,920 --> 00:01:54,120 Speaker 1: but a permanent tiny home is allowed in the city limits. 36 00:01:54,360 --> 00:01:57,280 Speaker 1: And so I'm looking to build one of these eight 37 00:01:57,480 --> 00:01:59,559 Speaker 1: U s in my backyard. I met with someone today 38 00:01:59,760 --> 00:02:02,520 Speaker 1: and really excited. Fill me in what so who showed 39 00:02:02,600 --> 00:02:04,320 Speaker 1: up and what do they tell you? So this guy's 40 00:02:04,360 --> 00:02:07,040 Speaker 1: an architect and he works with the A d U 41 00:02:07,120 --> 00:02:10,000 Speaker 1: company that that essentially it's like a Sears and Roebuck guy. 42 00:02:10,080 --> 00:02:12,560 Speaker 1: They have three different plans that you can build and 43 00:02:12,600 --> 00:02:14,200 Speaker 1: so you don't have to go through this whole long 44 00:02:14,240 --> 00:02:16,720 Speaker 1: process of figuring everything out, materials and all that. They've 45 00:02:16,760 --> 00:02:19,000 Speaker 1: got a couple built and they've got great pictures so 46 00:02:19,040 --> 00:02:21,040 Speaker 1: you can see exactly what it's gonna look like my 47 00:02:21,120 --> 00:02:22,800 Speaker 1: series of Roebuck. What you mean is back in the 48 00:02:22,840 --> 00:02:25,560 Speaker 1: twenties and thirties, you can buy these pre designed homes 49 00:02:25,600 --> 00:02:28,079 Speaker 1: and they would literally send everything that you needed to 50 00:02:28,120 --> 00:02:30,480 Speaker 1: build your home on a train car. Like It's like 51 00:02:30,720 --> 00:02:33,000 Speaker 1: it would show up to like your local depot and 52 00:02:33,080 --> 00:02:35,320 Speaker 1: you would haul it to your house and build it. Yeah. 53 00:02:35,400 --> 00:02:38,839 Speaker 1: Now it's a hundred years later, but this style, this 54 00:02:39,240 --> 00:02:42,000 Speaker 1: ability to create something in this fashion still remains and 55 00:02:42,000 --> 00:02:43,960 Speaker 1: so I love that because it's also in a catalog 56 00:02:44,000 --> 00:02:45,720 Speaker 1: by the way, you know, like a now it's an 57 00:02:45,720 --> 00:02:49,200 Speaker 1: online right website. Yeah, but it's really cool. They it's 58 00:02:49,240 --> 00:02:52,280 Speaker 1: just three basic options that have been just well designed, 59 00:02:52,600 --> 00:02:55,720 Speaker 1: and the pricing is is straightforward, and so yeah, it's 60 00:02:55,720 --> 00:02:57,840 Speaker 1: really cool. I'm looking forward to getting the ball rolling 61 00:02:57,840 --> 00:03:01,080 Speaker 1: on this, So no airstream from but something a little 62 00:03:01,120 --> 00:03:02,760 Speaker 1: more permanent, and I think that's going to be great 63 00:03:02,800 --> 00:03:05,520 Speaker 1: for the value of my house over time and also 64 00:03:05,680 --> 00:03:08,480 Speaker 1: just the ability to to bring in some revenue to Yeah, 65 00:03:08,480 --> 00:03:10,079 Speaker 1: so you said, get the ball rolling. Have you decided 66 00:03:10,080 --> 00:03:12,239 Speaker 1: that you're gonna do it or you're still kind of 67 00:03:12,320 --> 00:03:14,720 Speaker 1: kicking it around? Like what percentage? Are you for sure 68 00:03:14,760 --> 00:03:16,760 Speaker 1: that you're thinking about doing this? See? I was pretty high, 69 00:03:16,880 --> 00:03:18,720 Speaker 1: I think in episode two about the air stream, I 70 00:03:18,720 --> 00:03:21,400 Speaker 1: probably said because I'm an optimist and I think everything's 71 00:03:21,400 --> 00:03:23,200 Speaker 1: gonna happen. But I'm pretty sure on this one. I 72 00:03:23,200 --> 00:03:24,600 Speaker 1: think we're gonna make it. I think we're gonna make 73 00:03:24,639 --> 00:03:26,800 Speaker 1: it happen. But we'll see. I'll keep everyone up to speed. 74 00:03:26,960 --> 00:03:29,240 Speaker 1: Nice man, I'm excited to see how that progresses. And 75 00:03:29,560 --> 00:03:33,040 Speaker 1: you are on your airbnb now percent But it took 76 00:03:33,040 --> 00:03:35,160 Speaker 1: me long enough. Right, What we decided that we needed 77 00:03:35,200 --> 00:03:38,280 Speaker 1: to do was not dig out space, but actually add 78 00:03:38,320 --> 00:03:39,800 Speaker 1: on to our home is something that we were wanting 79 00:03:39,840 --> 00:03:41,760 Speaker 1: to do anyway. And so what Kate now we're able 80 00:03:41,800 --> 00:03:44,240 Speaker 1: to do is we figured out a plan where we 81 00:03:44,320 --> 00:03:45,880 Speaker 1: extended the back of our house a little bit and 82 00:03:45,920 --> 00:03:48,320 Speaker 1: then we were able to finish up the space below 83 00:03:48,360 --> 00:03:51,240 Speaker 1: that for our airbnb. And so, yeah, you said percent 84 00:03:51,320 --> 00:03:54,240 Speaker 1: that's because the airbnb is up and running, it's live. Yeah, man, 85 00:03:54,280 --> 00:03:56,400 Speaker 1: the thing is live. Gosh. It was a lot of work, 86 00:03:56,440 --> 00:03:58,400 Speaker 1: a lot of hard work. But we've already had tenants 87 00:03:58,440 --> 00:04:00,000 Speaker 1: down there. We actually have our second set of guess 88 00:04:00,080 --> 00:04:02,200 Speaker 1: there in the apartment right now. We're gonna do a 89 00:04:02,200 --> 00:04:04,120 Speaker 1: full episode on the Airbnb kind of maybe in a 90 00:04:04,120 --> 00:04:06,440 Speaker 1: couple of months after we've had a little more experience. 91 00:04:06,560 --> 00:04:08,680 Speaker 1: So you've got your systems down exactly, you have a 92 00:04:08,680 --> 00:04:10,120 Speaker 1: lot to share with folks, because that's what we don't 93 00:04:10,160 --> 00:04:12,720 Speaker 1: have right now, are our systems. And what that means 94 00:04:12,800 --> 00:04:15,360 Speaker 1: is that everything feels like we're putting out fires because 95 00:04:15,400 --> 00:04:17,560 Speaker 1: these are all things that we've never done before. We're 96 00:04:17,560 --> 00:04:20,200 Speaker 1: being asked things that we don't necessarily have answers to. 97 00:04:20,680 --> 00:04:22,560 Speaker 1: And so I'm looking forward to getting to that point 98 00:04:22,600 --> 00:04:24,800 Speaker 1: to where it's basically on cruise control. We have our 99 00:04:24,800 --> 00:04:27,080 Speaker 1: systems in place, and I think that'll be fun to 100 00:04:27,200 --> 00:04:29,560 Speaker 1: share with our listeners as well. Yeah, that'll be super fun. 101 00:04:29,640 --> 00:04:31,000 Speaker 1: And what is some of our listeners when they come 102 00:04:31,040 --> 00:04:33,320 Speaker 1: to Atlanta actually want to stay here, babe? Is that possible? 103 00:04:33,440 --> 00:04:36,320 Speaker 1: Totally possible. We'll put a link to the Airbnb listing, 104 00:04:36,640 --> 00:04:39,279 Speaker 1: uh in the show notes for this episode. But you 105 00:04:39,279 --> 00:04:40,800 Speaker 1: know you live right down the street. And so if 106 00:04:40,800 --> 00:04:42,440 Speaker 1: I'm not here, maybe you can let folks in and 107 00:04:42,680 --> 00:04:44,280 Speaker 1: have a beer with somebody. I'm happy to do it. 108 00:04:44,320 --> 00:04:45,960 Speaker 1: I'm happy to do it. And by the way, speaking 109 00:04:45,960 --> 00:04:47,640 Speaker 1: of beer, the beer that we're having on the show 110 00:04:47,680 --> 00:04:51,400 Speaker 1: this week is called Okay. It's an Imperial brown Ale 111 00:04:51,480 --> 00:04:54,680 Speaker 1: aged in oak whiskey barrels by Prairie artisan Ales. And 112 00:04:54,720 --> 00:04:57,520 Speaker 1: our good friend Abe actually donated this beer. He wanted 113 00:04:57,560 --> 00:04:58,720 Speaker 1: us to have this on the show, so that was 114 00:04:58,760 --> 00:05:01,000 Speaker 1: sweet of him. You know, it's funny actually is that. Abe. 115 00:05:01,279 --> 00:05:02,640 Speaker 1: He's one of the ones that got me really thinking 116 00:05:02,640 --> 00:05:05,280 Speaker 1: about the airbnb because they have a basement that they 117 00:05:05,360 --> 00:05:07,480 Speaker 1: run out and you know, they're able to cover their 118 00:05:07,480 --> 00:05:09,960 Speaker 1: mortgage with the money that they make on Airbnb, which 119 00:05:09,960 --> 00:05:12,400 Speaker 1: is impressively impressive. How good does that feel? What a 120 00:05:12,400 --> 00:05:15,279 Speaker 1: house hack? Speaking of house ac we're getting into it right, Yeah, 121 00:05:15,320 --> 00:05:16,719 Speaker 1: we'll get into that in just a second, but Matt, 122 00:05:16,760 --> 00:05:19,320 Speaker 1: let's actually get to our first question of this episode, 123 00:05:19,600 --> 00:05:21,360 Speaker 1: and real quick, if you're listening and you want to 124 00:05:21,400 --> 00:05:24,400 Speaker 1: submit your own question, you can do that at our website. 125 00:05:24,480 --> 00:05:26,760 Speaker 1: Just go to how to money dot com slash ask 126 00:05:27,120 --> 00:05:29,680 Speaker 1: and their simple instructions there for you to leave your 127 00:05:29,720 --> 00:05:32,080 Speaker 1: question for us to potentially answer on the show. So 128 00:05:32,160 --> 00:05:34,640 Speaker 1: let's get to it. Hey, Matt and Joel, this is 129 00:05:34,680 --> 00:05:38,280 Speaker 1: Adam from Atlanta, Ish and a question for you today 130 00:05:38,360 --> 00:05:40,520 Speaker 1: is is it ever a good idea to buy a 131 00:05:40,560 --> 00:05:44,479 Speaker 1: new car? I ask because my parents have always bought 132 00:05:44,520 --> 00:05:46,919 Speaker 1: new cars, but they end up keeping them for about 133 00:05:46,920 --> 00:05:49,839 Speaker 1: fifteen years. So I was wondering if they're actually coming 134 00:05:49,839 --> 00:05:52,160 Speaker 1: out ahead or if just no matter what, it's a 135 00:05:52,200 --> 00:05:57,080 Speaker 1: bad decision. Thanks all right, Adam, first, Atlanta Ish. That's 136 00:05:57,160 --> 00:06:01,599 Speaker 1: really funny because Atlanta is just just May July, sprawling town, 137 00:06:01,839 --> 00:06:04,359 Speaker 1: mega city, and so there are kind of these dividing 138 00:06:04,440 --> 00:06:08,120 Speaker 1: lines from people sometimes that live in actual Atlanta or 139 00:06:08,160 --> 00:06:11,279 Speaker 1: people that live outside of Atlanta. And usually the dividing 140 00:06:11,320 --> 00:06:14,040 Speaker 1: line in our city is the perimeter. It's the Highway 141 00:06:14,040 --> 00:06:16,240 Speaker 1: two eighty five, the loop. Yeah, so people say I'm 142 00:06:16,240 --> 00:06:18,520 Speaker 1: I t P or I'm O t P inside the perimeter, 143 00:06:18,560 --> 00:06:20,880 Speaker 1: outside of the perimeter, and so it sounds like Adam 144 00:06:21,040 --> 00:06:23,200 Speaker 1: is O t P. Massive turf wars has led to 145 00:06:23,240 --> 00:06:25,280 Speaker 1: a lot of issues, you know, within the city, but 146 00:06:25,600 --> 00:06:28,400 Speaker 1: you know what, we're not into that, so we don't care. 147 00:06:28,440 --> 00:06:30,159 Speaker 1: We can be friends without them, It's totally fine. I 148 00:06:30,160 --> 00:06:32,440 Speaker 1: feel like most folks who aren't from Atlanta, if you 149 00:06:32,480 --> 00:06:35,640 Speaker 1: live anywhere near Atlanta, even o TP, even outside the perimeter, 150 00:06:36,000 --> 00:06:37,840 Speaker 1: you just say Atlanta and folks are like, okay, that's 151 00:06:37,880 --> 00:06:39,520 Speaker 1: I know where that is, right. I know when I 152 00:06:39,560 --> 00:06:42,160 Speaker 1: went off to school and anybody that was basically anywhere 153 00:06:42,200 --> 00:06:44,360 Speaker 1: near Atlanta would just say, yeah, I'm from Atlanta. And 154 00:06:44,400 --> 00:06:46,840 Speaker 1: then you ask specifically, cool, where in Atlanta and it 155 00:06:46,920 --> 00:06:48,720 Speaker 1: might be forty five minutes outside and they're like, oh, 156 00:06:48,720 --> 00:06:50,640 Speaker 1: I live in Jonesboro or I live in Marietta. Right, 157 00:06:50,960 --> 00:06:55,160 Speaker 1: folks who live actually in or around Atlanta can distinguish 158 00:06:55,440 --> 00:06:57,680 Speaker 1: like where in the actual city. But for most folks, 159 00:06:57,839 --> 00:07:00,680 Speaker 1: Adam totally lives in Atlanta. Yeah out, all right, So 160 00:07:00,760 --> 00:07:05,120 Speaker 1: let's get onto Adam's question. Is buying a new car? Ever? Okay, 161 00:07:05,200 --> 00:07:07,560 Speaker 1: and Adam, I feel like, actually, what you describe your 162 00:07:07,560 --> 00:07:10,480 Speaker 1: parents doing is the best case scenario for buying a 163 00:07:10,520 --> 00:07:12,280 Speaker 1: new car. If you buy a new car but you're 164 00:07:12,280 --> 00:07:15,720 Speaker 1: gonna keep it for fifteen years, well that's actually not 165 00:07:15,880 --> 00:07:18,760 Speaker 1: a terrible decision. That's that's not a bad move. You've 166 00:07:18,760 --> 00:07:20,920 Speaker 1: got smart parents. I feel like the problem with buying 167 00:07:20,960 --> 00:07:23,920 Speaker 1: a new car typically is that massive depreciation hit that 168 00:07:23,960 --> 00:07:25,760 Speaker 1: people take in the first few years, in the first 169 00:07:25,760 --> 00:07:27,760 Speaker 1: three to five years, and then they decide to sell 170 00:07:27,800 --> 00:07:29,840 Speaker 1: it when they get bored with it. And that's when 171 00:07:29,840 --> 00:07:31,800 Speaker 1: buying a new car is a terrible mistake. But if 172 00:07:31,840 --> 00:07:33,800 Speaker 1: you're gonna keep it for a long period of time, 173 00:07:34,160 --> 00:07:36,720 Speaker 1: then buying a new car really isn't all that bad 174 00:07:36,720 --> 00:07:39,200 Speaker 1: of an idea. It's not that you're paying less, but 175 00:07:39,280 --> 00:07:41,280 Speaker 1: you are kind of spreading that hit over, you know, 176 00:07:41,320 --> 00:07:43,440 Speaker 1: many more years. And a lot of people like to 177 00:07:43,480 --> 00:07:45,680 Speaker 1: know what issues they might have with their car, and 178 00:07:45,720 --> 00:07:48,080 Speaker 1: so buying something new, knowing that they're getting get fresh 179 00:07:48,120 --> 00:07:50,760 Speaker 1: with the warranty, knowing what's gone into it, the maintenance 180 00:07:50,760 --> 00:07:52,320 Speaker 1: and all that stuff, they feel better about buying new. 181 00:07:52,320 --> 00:07:54,720 Speaker 1: And I completely understand that sentiment. Yeah, And as far 182 00:07:54,760 --> 00:07:57,080 Speaker 1: as depreciation, you know, you mentioned this, Joel, like when 183 00:07:57,080 --> 00:07:59,720 Speaker 1: you take that big hit. What really hurts is when 184 00:07:59,720 --> 00:08:01,920 Speaker 1: folk are sort of in this perpetual cycle where they're 185 00:08:01,960 --> 00:08:06,160 Speaker 1: buying new vehicles frequently and they're not losing tens of 186 00:08:06,200 --> 00:08:08,560 Speaker 1: thousands of dollars once, but they're doing it with every 187 00:08:08,600 --> 00:08:11,720 Speaker 1: single car purchase, maybe every couple of years, and with 188 00:08:11,800 --> 00:08:15,360 Speaker 1: new cars being so incredibly priced these days, you're losing 189 00:08:15,400 --> 00:08:17,880 Speaker 1: a ton of money. Like the average new car costs 190 00:08:17,960 --> 00:08:21,040 Speaker 1: these days about thirty dollars. That's a ton of money. 191 00:08:21,360 --> 00:08:23,640 Speaker 1: When when you're looking at maybe losing ten percent just 192 00:08:23,680 --> 00:08:26,240 Speaker 1: from driving off the lot and losing another ten percent 193 00:08:26,360 --> 00:08:29,080 Speaker 1: that first year, you're looking at losing close of the 194 00:08:29,160 --> 00:08:30,960 Speaker 1: value of the vehicle within the first year that you 195 00:08:31,000 --> 00:08:34,600 Speaker 1: own it. That's just terrible. And that's probably why I 196 00:08:34,679 --> 00:08:37,720 Speaker 1: may never own a new vehicle myself, is just because 197 00:08:37,800 --> 00:08:40,640 Speaker 1: I don't know if I can mentally get around that hurdle. Yeah, 198 00:08:40,720 --> 00:08:43,440 Speaker 1: just stomach that sort of depreciation. It's a lot. I 199 00:08:43,440 --> 00:08:45,839 Speaker 1: completely agree, Like I have a hard time imagining the 200 00:08:45,920 --> 00:08:47,920 Speaker 1: day that I buy a new car. I just can't 201 00:08:47,960 --> 00:08:50,680 Speaker 1: personally stomach that sort of depreciation, even if I did 202 00:08:50,760 --> 00:08:54,240 Speaker 1: keep it for fifteen years. So I think you're still 203 00:08:54,240 --> 00:08:56,400 Speaker 1: parting with that money exactly, Like, Yeah, that's what we're 204 00:08:56,400 --> 00:08:58,160 Speaker 1: getting at, is like, it's it's great that you're kind 205 00:08:58,160 --> 00:09:01,120 Speaker 1: of spreading that depreciation out over twelve to fifteen years, 206 00:09:01,640 --> 00:09:04,280 Speaker 1: but you're still paying for that car. Yeah. So I 207 00:09:04,280 --> 00:09:07,120 Speaker 1: would say, ultimately, still the best case scenario if you're 208 00:09:07,120 --> 00:09:09,920 Speaker 1: willing to keep a car for a long time. Is 209 00:09:09,960 --> 00:09:12,520 Speaker 1: to buy a three to five year old car and 210 00:09:12,559 --> 00:09:15,720 Speaker 1: then keep that car for twelve to fifteen years. Then 211 00:09:15,880 --> 00:09:18,480 Speaker 1: your mind the car and essentially half half the price 212 00:09:18,679 --> 00:09:21,079 Speaker 1: that you would find it brand new on a dealer lot, 213 00:09:21,559 --> 00:09:24,320 Speaker 1: and you're keeping that car for an extended period of time. 214 00:09:24,520 --> 00:09:27,520 Speaker 1: I mean, that is really a sweet spot of car ownership. 215 00:09:27,800 --> 00:09:31,120 Speaker 1: But we would say, if you have the money flexibility 216 00:09:31,160 --> 00:09:34,000 Speaker 1: to my new car and you are going to keep 217 00:09:34,040 --> 00:09:36,880 Speaker 1: it for a really long time, well feel free to 218 00:09:36,920 --> 00:09:38,920 Speaker 1: do so and don't feel guilty about it. If that's 219 00:09:38,920 --> 00:09:41,679 Speaker 1: a conscious choice and where you want to prioritize your spending, 220 00:09:42,040 --> 00:09:44,079 Speaker 1: then have at it. Yeah. But some good rules of 221 00:09:44,160 --> 00:09:46,800 Speaker 1: thumb though, to keep in mind are just don't finance 222 00:09:46,840 --> 00:09:49,079 Speaker 1: the new car. Make sure that you're paying for the 223 00:09:49,160 --> 00:09:52,040 Speaker 1: vehicle in cash, because you're already going to take a 224 00:09:52,080 --> 00:09:54,640 Speaker 1: big hit financially. Just make sure you're not paying even 225 00:09:54,640 --> 00:09:57,600 Speaker 1: more for it because you're putting money towards interest. That's 226 00:09:57,640 --> 00:10:00,080 Speaker 1: one thing to keep in mind. Another thing is to 227 00:10:00,120 --> 00:10:03,160 Speaker 1: not spend more than ten percent of your annual income 228 00:10:03,520 --> 00:10:05,880 Speaker 1: towards a new vehicle purchase. And I know for a 229 00:10:05,920 --> 00:10:07,920 Speaker 1: lot of folks that might be a tall order, right, Like, 230 00:10:07,960 --> 00:10:10,040 Speaker 1: that's gonna sound a little bit extreme, because let's say, 231 00:10:10,040 --> 00:10:12,599 Speaker 1: if you're making sixty ten percent, you're looking at a 232 00:10:12,600 --> 00:10:15,400 Speaker 1: six thousand dollar vehicle, and there are a lot of 233 00:10:15,400 --> 00:10:18,280 Speaker 1: people driving around Joel who have cars that cost more 234 00:10:18,280 --> 00:10:21,400 Speaker 1: than six thousand dollars um that type of salary. Yeah, exactly, 235 00:10:21,840 --> 00:10:24,200 Speaker 1: But we just think you should not dedicate more of 236 00:10:24,240 --> 00:10:28,360 Speaker 1: your income, more of your monetary resources towards a point 237 00:10:28,360 --> 00:10:31,360 Speaker 1: A to point B transportation. And if someone making sixty 238 00:10:31,760 --> 00:10:35,400 Speaker 1: dollars buys a thirty two dollar car, then way too 239 00:10:35,480 --> 00:10:38,400 Speaker 1: much of their annual income they're shelling out towards that 240 00:10:38,440 --> 00:10:40,120 Speaker 1: car every year. And so yeah, I think that ten 241 00:10:40,160 --> 00:10:42,319 Speaker 1: percent rule of thumb you can just be really helpful 242 00:10:42,480 --> 00:10:45,120 Speaker 1: as a quick gauge for how much you should be 243 00:10:45,160 --> 00:10:48,320 Speaker 1: spending on your car if you want to maintain enough 244 00:10:48,360 --> 00:10:52,160 Speaker 1: money flexibility to invest and save at the same time. Yeah, well, 245 00:10:52,160 --> 00:10:53,920 Speaker 1: that's what's so key, right, is that we want to 246 00:10:53,960 --> 00:10:56,720 Speaker 1: make sure that you're putting money towards retirement and putting 247 00:10:56,760 --> 00:10:58,880 Speaker 1: money basically towards things that are going to make you 248 00:10:58,880 --> 00:11:02,000 Speaker 1: money because they are appreciating. And that's what I have 249 00:11:02,120 --> 00:11:04,000 Speaker 1: such a hard time with when it comes to vehicles, 250 00:11:04,080 --> 00:11:07,000 Speaker 1: is that all they do unless you are a rare 251 00:11:07,080 --> 00:11:10,520 Speaker 1: car collector. But all they do is drop in value, right, Like, 252 00:11:10,559 --> 00:11:12,520 Speaker 1: there are very very few vehicles out there that go 253 00:11:12,679 --> 00:11:14,640 Speaker 1: up in value. And the other thing they do is 254 00:11:14,679 --> 00:11:18,560 Speaker 1: they sit idle of the time, right, So that's I think. 255 00:11:18,600 --> 00:11:20,040 Speaker 1: One of the other things that you have to keep 256 00:11:20,040 --> 00:11:24,000 Speaker 1: in mind is that you're highly priced automobile is sitting 257 00:11:24,040 --> 00:11:26,240 Speaker 1: in the driveway at home, or it's sitting in the 258 00:11:26,280 --> 00:11:28,520 Speaker 1: parking deck at work or the parking lot where you like, 259 00:11:28,840 --> 00:11:31,520 Speaker 1: it sits there so much of the time, and get 260 00:11:31,559 --> 00:11:33,680 Speaker 1: your paying for it every minute that you own it, 261 00:11:34,040 --> 00:11:36,680 Speaker 1: even when it's sitting idle. Yeah, cars are the worst. Like, 262 00:11:36,720 --> 00:11:38,720 Speaker 1: I can't wait until we have robot cars that are 263 00:11:38,760 --> 00:11:41,280 Speaker 1: all part of the network or the cloud, I don't know, 264 00:11:41,360 --> 00:11:42,680 Speaker 1: and then they just show up to pick you up 265 00:11:42,720 --> 00:11:44,640 Speaker 1: to go somewhere completely where we don't actually have to 266 00:11:44,640 --> 00:11:46,560 Speaker 1: own them ourselves. Yeah, just like I robot where Will 267 00:11:46,600 --> 00:11:48,800 Speaker 1: Smith is writing in the fancy of all those and uh, 268 00:11:48,880 --> 00:11:49,920 Speaker 1: you know, you don't have to worry about it. You 269 00:11:49,960 --> 00:11:52,520 Speaker 1: can just do whatever. We love Will Smith movies allay, Oh, 270 00:11:52,600 --> 00:11:55,520 Speaker 1: let's right, Independence day, I robot What else a lot 271 00:11:55,559 --> 00:11:59,000 Speaker 1: of them, but still nothing better than fresh principality. Can 272 00:11:59,000 --> 00:12:00,600 Speaker 1: we say that that's true? It? To sum it up, 273 00:12:00,600 --> 00:12:02,880 Speaker 1: I think, for Adam, buying a new car if you 274 00:12:02,960 --> 00:12:04,960 Speaker 1: keep it for a long long time, is not a 275 00:12:05,040 --> 00:12:07,319 Speaker 1: terrible move. That's not terrible. You could be doing better 276 00:12:07,400 --> 00:12:08,800 Speaker 1: things with your money. But as long as you are 277 00:12:08,840 --> 00:12:11,520 Speaker 1: also putting a good amount of money into assets that 278 00:12:11,559 --> 00:12:14,520 Speaker 1: are appreciating and growing, then I guess we're okay with 279 00:12:14,559 --> 00:12:16,960 Speaker 1: someone buying a new vehicle. All right, Wow, not something 280 00:12:17,040 --> 00:12:19,400 Speaker 1: we say terribly often, but but yeah, that was a 281 00:12:19,400 --> 00:12:21,959 Speaker 1: great question, Adam. Thank you so much. And right after 282 00:12:22,000 --> 00:12:24,360 Speaker 1: the break, we're going to get to a question about 283 00:12:24,480 --> 00:12:26,400 Speaker 1: house hacking, which we haven't really talked about on the 284 00:12:26,400 --> 00:12:37,880 Speaker 1: show before. Surprisingly, all right, Joe, we are back. Now 285 00:12:38,000 --> 00:12:40,559 Speaker 1: let's hear from Sally. Hey, guys, my name is Sally. 286 00:12:40,600 --> 00:12:43,760 Speaker 1: I'm from Los Angeles, California. I just purchased my first 287 00:12:43,800 --> 00:12:47,280 Speaker 1: property and it's a duplex for my primary residents as 288 00:12:47,280 --> 00:12:50,600 Speaker 1: well as rental income. I was wondering what kind of 289 00:12:50,679 --> 00:12:54,280 Speaker 1: documents and receipts should I be safely keeping and what 290 00:12:54,360 --> 00:12:56,319 Speaker 1: kind of tax benefits will I be able to take 291 00:12:56,360 --> 00:12:59,920 Speaker 1: advantage of. I love the show and would appreciate any insight. 292 00:13:00,120 --> 00:13:02,760 Speaker 1: Thanks so much so, Joel. You picked this question because 293 00:13:02,760 --> 00:13:04,920 Speaker 1: her name Sally, and that's the name of your little sister, right, 294 00:13:05,080 --> 00:13:08,240 Speaker 1: I have an affinity for uh lady names. Sally, I 295 00:13:08,240 --> 00:13:11,160 Speaker 1: guess because aunt truly, my little sister is one of 296 00:13:11,160 --> 00:13:12,640 Speaker 1: my all time best friends. So, and she's the one 297 00:13:12,640 --> 00:13:15,200 Speaker 1: that you mentioned recently who you are writing to work 298 00:13:15,200 --> 00:13:17,120 Speaker 1: with on You know, you both have your bikes and 299 00:13:17,200 --> 00:13:18,640 Speaker 1: so do you feel like you all have actually gotten 300 00:13:18,640 --> 00:13:21,080 Speaker 1: closer since you all have been kind of biking together? Yeah? 301 00:13:21,120 --> 00:13:23,280 Speaker 1: I think so. I mean we've always been really really close, 302 00:13:23,400 --> 00:13:26,280 Speaker 1: but yeah, just doing something like that together has been 303 00:13:26,360 --> 00:13:30,079 Speaker 1: really fun too. So yeah, I like Sally already. All right, Well, Sally, 304 00:13:30,120 --> 00:13:32,960 Speaker 1: you know she mentioned how she's house hacking. That is awesome. 305 00:13:33,000 --> 00:13:35,360 Speaker 1: You've got yourself a duplex. That is one of our 306 00:13:35,360 --> 00:13:39,000 Speaker 1: favorite ways to start buying real estate. You start building wealth. Yeah, exactly. 307 00:13:39,040 --> 00:13:41,640 Speaker 1: You can lower your monthly bill for housing and that 308 00:13:41,679 --> 00:13:44,560 Speaker 1: allows you to save more and build wealth at the 309 00:13:44,679 --> 00:13:46,880 Speaker 1: same time. And by the way, I think we need 310 00:13:46,920 --> 00:13:50,040 Speaker 1: to just quickly define the term house hacking true for 311 00:13:50,080 --> 00:13:53,040 Speaker 1: folks that haven't heard it anyway, in which you're using 312 00:13:53,200 --> 00:13:55,160 Speaker 1: the house that you buy, whether it's a duplex or 313 00:13:55,160 --> 00:13:58,360 Speaker 1: triplex or even just a single family home, to create 314 00:13:58,640 --> 00:14:02,000 Speaker 1: income for yourself your house hacking. And like Matt just said, 315 00:14:02,080 --> 00:14:03,760 Speaker 1: house hacking is one of the best ways to lower 316 00:14:03,880 --> 00:14:07,080 Speaker 1: your overall cost of housing, and it starts this domino 317 00:14:07,160 --> 00:14:10,240 Speaker 1: effect that is going to help you build wealth over 318 00:14:10,240 --> 00:14:12,680 Speaker 1: the coming years. And so the Matt, the first house 319 00:14:12,720 --> 00:14:14,760 Speaker 1: I bought was a single family home, but I rented 320 00:14:14,880 --> 00:14:17,160 Speaker 1: a room out inside of it to someone you knew, 321 00:14:17,280 --> 00:14:20,440 Speaker 1: to someone but no rando off the street. And then 322 00:14:20,640 --> 00:14:22,000 Speaker 1: it just made it so that we did it by 323 00:14:22,000 --> 00:14:23,840 Speaker 1: the night, right, Like anybody could just show up and 324 00:14:23,920 --> 00:14:25,480 Speaker 1: pay twenty bucks and they've got a room. Yeah, I 325 00:14:25,480 --> 00:14:29,360 Speaker 1: had a little neon sign. Vacancy actually sounds kind of romantic, 326 00:14:29,440 --> 00:14:31,360 Speaker 1: kind of like old timey, you know, like a I 327 00:14:31,400 --> 00:14:33,640 Speaker 1: do love neon time, Like you could serve cocktails and 328 00:14:33,680 --> 00:14:35,920 Speaker 1: be like come on in, you know, room and board. 329 00:14:35,960 --> 00:14:37,800 Speaker 1: It's not that fans, I'm not board. I guess just 330 00:14:37,840 --> 00:14:40,840 Speaker 1: the room plus a drink room and a drink kind 331 00:14:40,840 --> 00:14:43,240 Speaker 1: of like you're serving up downstairs. But yeah, having that 332 00:14:43,360 --> 00:14:47,200 Speaker 1: roommate just considerably lowered my costs of housing allowed me 333 00:14:47,240 --> 00:14:49,600 Speaker 1: to save even more and by the next house and 334 00:14:49,600 --> 00:14:51,280 Speaker 1: then rent out the house that I was living in. 335 00:14:51,520 --> 00:14:54,440 Speaker 1: And so yeah, house hacking, Sally is just the best. 336 00:14:54,520 --> 00:14:57,560 Speaker 1: So congratulations to you on making that happen and getting 337 00:14:57,560 --> 00:14:59,840 Speaker 1: the ball rolling on that. Okay, Sally, let's go ahead though, 338 00:14:59,840 --> 00:15:02,720 Speaker 1: And it's your actual your question, which is you're asking 339 00:15:02,720 --> 00:15:04,920 Speaker 1: about receipts, and you know which one is to keep, 340 00:15:04,960 --> 00:15:07,360 Speaker 1: and we would say to keep all of them. You 341 00:15:07,360 --> 00:15:09,400 Speaker 1: want to make sure that you're documenting what repairs and 342 00:15:09,480 --> 00:15:11,920 Speaker 1: improvements that you're making to the house, and to make 343 00:15:11,960 --> 00:15:15,040 Speaker 1: sure that you're keeping good records of what you make 344 00:15:15,160 --> 00:15:18,000 Speaker 1: in rental income and what you spend. UH. You want 345 00:15:18,000 --> 00:15:19,760 Speaker 1: to be able to at the end of the year 346 00:15:19,880 --> 00:15:22,880 Speaker 1: on your taxes, to be able to deduct money that 347 00:15:22,920 --> 00:15:27,520 Speaker 1: went towards that rental property. Yeah, costs associated specifically with 348 00:15:27,760 --> 00:15:31,120 Speaker 1: your side of the unit are not tax deductible. So 349 00:15:31,160 --> 00:15:33,120 Speaker 1: if you replace the toilet in the half that you 350 00:15:33,200 --> 00:15:36,480 Speaker 1: live in, no tax deduction for that. You can appreciate 351 00:15:36,560 --> 00:15:39,280 Speaker 1: expenses and repairs of the portion of the home that 352 00:15:39,280 --> 00:15:42,720 Speaker 1: you're running out. So, assuming that the duplex is fifty 353 00:15:42,800 --> 00:15:45,360 Speaker 1: fifty half on each side, half of your property is 354 00:15:45,400 --> 00:15:48,000 Speaker 1: treated as a traditional home and the other half is 355 00:15:48,000 --> 00:15:51,360 Speaker 1: treated as an investment property for your tax purposes. So 356 00:15:51,480 --> 00:15:54,440 Speaker 1: I like your toilet example there, because that's very clear cut, right. 357 00:15:54,480 --> 00:15:57,240 Speaker 1: If there's a toilet on your side, sally, yeah, you 358 00:15:57,280 --> 00:15:59,440 Speaker 1: can't deduct it, But the toilet on the rental side 359 00:15:59,560 --> 00:16:02,000 Speaker 1: one percent, you can deduct that. But when it comes 360 00:16:02,040 --> 00:16:04,720 Speaker 1: to things that are shared on the house, for instance, 361 00:16:04,720 --> 00:16:08,440 Speaker 1: a roof, again, assuming this is a split duplex, guess 362 00:16:08,440 --> 00:16:10,360 Speaker 1: what you can deduct half of the cost of that 363 00:16:10,440 --> 00:16:13,480 Speaker 1: roof against the money that you earn on that rental side. 364 00:16:13,760 --> 00:16:16,960 Speaker 1: Not being said, we're not tax professionals, and there are 365 00:16:17,000 --> 00:16:19,320 Speaker 1: some few instances where it kind of gets a little 366 00:16:19,320 --> 00:16:23,880 Speaker 1: bit tricky, right. Specifically, I'm thinking of mortgage interest because originally, 367 00:16:23,960 --> 00:16:27,080 Speaker 1: if you have a traditional house, you can deduct the 368 00:16:27,080 --> 00:16:30,160 Speaker 1: mortgage interest. But when you're splitting it like that half 369 00:16:30,160 --> 00:16:32,400 Speaker 1: of it you would be able to deduct personally, and 370 00:16:32,400 --> 00:16:34,520 Speaker 1: then the other half would have to go towards the rental. 371 00:16:34,880 --> 00:16:36,600 Speaker 1: But what that means is that you personally you may 372 00:16:36,640 --> 00:16:38,920 Speaker 1: not actually hit that standard deduction. And so there are 373 00:16:38,960 --> 00:16:42,600 Speaker 1: implications when it comes to deducting certain things that you 374 00:16:42,680 --> 00:16:45,360 Speaker 1: need to consider, and that's when a tax professional would 375 00:16:45,360 --> 00:16:47,640 Speaker 1: most definitely be able to walk you through all those 376 00:16:47,840 --> 00:16:50,720 Speaker 1: those nuances when it comes to deductions. Yes, so some 377 00:16:50,800 --> 00:16:53,440 Speaker 1: of it kind of straightforward, other parts of it not 378 00:16:53,520 --> 00:16:56,720 Speaker 1: as easy, And I do agree, Matt. I think having 379 00:16:56,840 --> 00:16:59,480 Speaker 1: a tax professional on your side that is well versed 380 00:16:59,520 --> 00:17:02,040 Speaker 1: in this would be really helpful, and so I would 381 00:17:02,040 --> 00:17:05,000 Speaker 1: look for somebody locally. I'd ask another local real estate 382 00:17:05,040 --> 00:17:07,560 Speaker 1: investor friend, hey, who are you using to help you 383 00:17:07,600 --> 00:17:09,879 Speaker 1: fire your taxes totally? And finding a c p A 384 00:17:09,960 --> 00:17:12,320 Speaker 1: who does tax who has specific knowledge when it comes 385 00:17:12,320 --> 00:17:14,920 Speaker 1: to real estate investing would be just a great help 386 00:17:14,960 --> 00:17:16,639 Speaker 1: to you, I think, And hopefully this is just the 387 00:17:16,640 --> 00:17:18,960 Speaker 1: beginning for you. This is the first property they can 388 00:17:18,960 --> 00:17:22,080 Speaker 1: grow with you for the coming years as your investment 389 00:17:22,119 --> 00:17:25,200 Speaker 1: property portfolio grows too. And until you are able to 390 00:17:25,200 --> 00:17:27,000 Speaker 1: talk to a tax professional, it might be helpful as 391 00:17:27,040 --> 00:17:29,760 Speaker 1: well to look at Schedule E, which breaks down all 392 00:17:29,760 --> 00:17:33,560 Speaker 1: the different expenses associated with rental properties um and so 393 00:17:33,760 --> 00:17:35,399 Speaker 1: you know, that can get you thinking about the different 394 00:17:35,400 --> 00:17:37,640 Speaker 1: expenses that you have, what kind of categories they might 395 00:17:37,680 --> 00:17:39,760 Speaker 1: fall into. It kind of gets you going down that 396 00:17:39,800 --> 00:17:42,199 Speaker 1: path and that would definitely make it a lot easier 397 00:17:42,200 --> 00:17:44,600 Speaker 1: when it comes time to getting all your numbers together 398 00:17:44,720 --> 00:17:46,840 Speaker 1: for your tax professional. You know what else would make 399 00:17:46,840 --> 00:17:50,080 Speaker 1: it easy, jolt too, is if you digitize your receipts. 400 00:17:50,119 --> 00:17:53,440 Speaker 1: You are a big fan of digitization. You know why 401 00:17:53,520 --> 00:17:55,720 Speaker 1: because the I R s is super weird, Like they're 402 00:17:55,920 --> 00:17:59,280 Speaker 1: incredibly antiquated. And if you ever get audited, they want 403 00:17:59,320 --> 00:18:01,800 Speaker 1: to see proof of paper receipts. If there ever was 404 00:18:01,840 --> 00:18:03,439 Speaker 1: a paper receipt, they want to see proof of that. 405 00:18:03,640 --> 00:18:05,880 Speaker 1: Even though lots of our purchases these days are digital 406 00:18:05,880 --> 00:18:08,760 Speaker 1: and online, if it was a purchase done in person, 407 00:18:09,200 --> 00:18:11,560 Speaker 1: they want to see proof of paper receipts, which I 408 00:18:11,560 --> 00:18:13,600 Speaker 1: gotta tell you how to pick. When's the last time 409 00:18:13,640 --> 00:18:16,199 Speaker 1: you accidentally kept a receipt in your pocket for like 410 00:18:16,240 --> 00:18:18,480 Speaker 1: two weeks. The way they print them on that paper, 411 00:18:18,960 --> 00:18:22,000 Speaker 1: it's like magic disappearing ink right there, man, Like does disappear. 412 00:18:22,080 --> 00:18:25,960 Speaker 1: Those receipts don't last very long. So yeah, that's definitely antiquated. Well, Sally, 413 00:18:25,960 --> 00:18:28,560 Speaker 1: Hopefully you found that information helpful, Joel, once you go 414 00:18:28,600 --> 00:18:31,639 Speaker 1: ahead and hit play on our next question. Hi guys, 415 00:18:32,080 --> 00:18:35,000 Speaker 1: we love to podcast. My name's Will Already. I live 416 00:18:35,040 --> 00:18:37,679 Speaker 1: in Hong Kong but from the UK. A couple of 417 00:18:37,760 --> 00:18:41,280 Speaker 1: joint questions, what was your experience of money when you 418 00:18:41,359 --> 00:18:43,800 Speaker 1: were growing up? What did your parents kind of teach 419 00:18:43,840 --> 00:18:47,280 Speaker 1: you safely? And then my second run good question is 420 00:18:47,960 --> 00:18:50,240 Speaker 1: what do you believe that parents should be doing for 421 00:18:50,280 --> 00:18:53,640 Speaker 1: their children in terms of saving and teaching their kids 422 00:18:53,680 --> 00:18:57,439 Speaker 1: about money? Thank you well, thanks for your question. And Matt, 423 00:18:57,720 --> 00:19:00,840 Speaker 1: is this our first international question? I don't know. Maybe 424 00:19:01,280 --> 00:19:04,040 Speaker 1: I don't know, but I like Will's accent. I know 425 00:19:04,040 --> 00:19:06,320 Speaker 1: that's a good one. Yeah, that's true me too. You know, 426 00:19:06,400 --> 00:19:08,520 Speaker 1: he's in Hong Kong, but he's actually from the UK, 427 00:19:08,720 --> 00:19:12,119 Speaker 1: So this is like an international international question. Maybe Wills 428 00:19:12,160 --> 00:19:14,280 Speaker 1: like James Bond and he's doing some stuff in Hong Kong. 429 00:19:14,520 --> 00:19:16,920 Speaker 1: I think we could create a whole narrative around Will's life. 430 00:19:17,000 --> 00:19:19,760 Speaker 1: I think we should probably stop talking about all right. Uh, 431 00:19:19,800 --> 00:19:22,000 Speaker 1: and well, that's a great question. And I think i've 432 00:19:22,000 --> 00:19:23,959 Speaker 1: we've talked about a little bit, just a little bit 433 00:19:23,960 --> 00:19:26,480 Speaker 1: briefly before on the show, Matt, just at times how 434 00:19:26,480 --> 00:19:28,720 Speaker 1: our parents have influenced our views of money. And I 435 00:19:28,760 --> 00:19:31,040 Speaker 1: want to mention that I definitely learned a lot about 436 00:19:31,080 --> 00:19:33,560 Speaker 1: the value of hard work from my parents. My parents 437 00:19:33,680 --> 00:19:36,960 Speaker 1: both have worked long hours for a lot of years 438 00:19:37,080 --> 00:19:40,200 Speaker 1: so that their kids so that we could have better opportunities. 439 00:19:40,560 --> 00:19:42,960 Speaker 1: But we didn't really talk about money a whole lot 440 00:19:42,960 --> 00:19:45,800 Speaker 1: when I was growing up. It was noticeably absent, I 441 00:19:45,840 --> 00:19:49,440 Speaker 1: would say, from any sort of conversation. It just never 442 00:19:49,520 --> 00:19:52,520 Speaker 1: came up. There just wasn't much discussed on the subject. 443 00:19:52,720 --> 00:19:55,560 Speaker 1: And in fact, I kind of learned the hard way 444 00:19:55,600 --> 00:19:58,840 Speaker 1: about money when my parents filed for bankruptcy when I 445 00:19:58,880 --> 00:20:01,760 Speaker 1: was twelve, and has had this indelible mark on my life. 446 00:20:02,000 --> 00:20:04,639 Speaker 1: That's a huge part of the reason that Matt and 447 00:20:04,640 --> 00:20:07,399 Speaker 1: I do this podcast together is because it changed the 448 00:20:07,440 --> 00:20:09,400 Speaker 1: whole way that I think about money, and it made 449 00:20:09,440 --> 00:20:11,760 Speaker 1: me really really interested in the subject. So I just 450 00:20:12,119 --> 00:20:15,119 Speaker 1: set to learning a whole lot about personal finances. And 451 00:20:15,160 --> 00:20:18,440 Speaker 1: so the podcast that you're listening to is largely in existence, 452 00:20:18,880 --> 00:20:22,199 Speaker 1: at least on my part, because of that experience. So 453 00:20:22,240 --> 00:20:24,160 Speaker 1: that's a personal part of the question. Answer for me, Matt, 454 00:20:24,200 --> 00:20:25,919 Speaker 1: what about you? Well, yeah, I mean, I'm with you, 455 00:20:25,960 --> 00:20:28,320 Speaker 1: man like that is a massive part of why we 456 00:20:28,400 --> 00:20:30,959 Speaker 1: have this podcast is because we just as a culture, 457 00:20:31,000 --> 00:20:34,280 Speaker 1: we don't talk about money enough, and I think we 458 00:20:34,280 --> 00:20:36,119 Speaker 1: we don't talk about enough with our kids as well. 459 00:20:36,440 --> 00:20:38,760 Speaker 1: Me personally, I mean I'm with you, Joel. I learned 460 00:20:38,760 --> 00:20:41,040 Speaker 1: the value of working hard for my folks. My parents, 461 00:20:41,160 --> 00:20:43,879 Speaker 1: especially my dad, helped me to think through things like 462 00:20:43,920 --> 00:20:46,400 Speaker 1: from an entrepreneurial standpoint, kind of helped me to take 463 00:20:46,440 --> 00:20:48,480 Speaker 1: on additional yards and pools. I did a lot of 464 00:20:48,520 --> 00:20:50,640 Speaker 1: that as a kid, and for me, man a big 465 00:20:50,720 --> 00:20:53,520 Speaker 1: lesson I learned my example was that my parents they 466 00:20:53,520 --> 00:20:56,080 Speaker 1: were able to retire early. They didn't necessarily retire. I 467 00:20:56,080 --> 00:20:59,160 Speaker 1: guess they reached financial independence earlier while I was still 468 00:20:59,200 --> 00:21:01,920 Speaker 1: in high school. And something I was able to see firsthand, 469 00:21:02,320 --> 00:21:04,440 Speaker 1: You're like, Dad can watch Sports Center all day now, 470 00:21:04,040 --> 00:21:07,639 Speaker 1: this is great. Well, why I didn't stop at retire 471 00:21:07,760 --> 00:21:09,560 Speaker 1: was that he actually continued to work, but not because 472 00:21:09,560 --> 00:21:12,000 Speaker 1: he needed to, but because he wanted to. He worked 473 00:21:12,080 --> 00:21:14,359 Speaker 1: with a friend for his company for a while, and 474 00:21:14,400 --> 00:21:17,919 Speaker 1: then he basically had a volunteer job for years, and 475 00:21:17,960 --> 00:21:19,919 Speaker 1: so it wasn't that he needed to have those jobs, 476 00:21:20,119 --> 00:21:21,800 Speaker 1: but it was because he wanted to, and he wanted 477 00:21:21,880 --> 00:21:23,919 Speaker 1: to make sure that he was contributing still and that 478 00:21:24,000 --> 00:21:27,119 Speaker 1: he wasn't sitting around and watching sports all day long. 479 00:21:27,520 --> 00:21:29,920 Speaker 1: And so that was a lesson that I was able 480 00:21:29,920 --> 00:21:32,680 Speaker 1: to learn basically by example, which kind of gets that 481 00:21:32,800 --> 00:21:35,720 Speaker 1: part of your question, will, which is, you know, we're 482 00:21:35,720 --> 00:21:37,320 Speaker 1: not going to dive into maybe what we should be 483 00:21:37,320 --> 00:21:40,560 Speaker 1: teaching yet, but how parents should be teaching. You know, 484 00:21:40,600 --> 00:21:43,240 Speaker 1: of course, as our kids get older, they'll learn things 485 00:21:43,440 --> 00:21:46,600 Speaker 1: through books or through curriculum, but as parents, teaching our 486 00:21:46,680 --> 00:21:49,880 Speaker 1: kids through our own behavior and through our own actions 487 00:21:50,560 --> 00:21:53,800 Speaker 1: can be the most impactful. Right, Modeling a healthy approach 488 00:21:53,840 --> 00:21:57,119 Speaker 1: towards money is key, and then using words to backen 489 00:21:57,240 --> 00:22:01,160 Speaker 1: up whenever possible is also to be important, though, Yeah, 490 00:22:01,160 --> 00:22:03,920 Speaker 1: and quickly, let's talk about what parents should be teaching too. 491 00:22:04,520 --> 00:22:06,080 Speaker 1: And I think one of the most important things you 492 00:22:06,119 --> 00:22:08,919 Speaker 1: can do to help your kids understand money well and 493 00:22:08,960 --> 00:22:11,000 Speaker 1: be wise with their money is that help them think 494 00:22:11,000 --> 00:22:13,000 Speaker 1: through the value of work and the value of the 495 00:22:13,000 --> 00:22:15,359 Speaker 1: money that you receive based on the work that you've done. 496 00:22:15,840 --> 00:22:19,159 Speaker 1: Helping develop a strong connection between understanding that money comes 497 00:22:19,560 --> 00:22:22,400 Speaker 1: by the work that we do is so helpful. And Matt, 498 00:22:22,440 --> 00:22:24,200 Speaker 1: we talked about this a little more in depth back 499 00:22:24,320 --> 00:22:27,840 Speaker 1: in episode sixty one Teaching Kids about Money, But one 500 00:22:27,880 --> 00:22:30,240 Speaker 1: of the biggest differences that you brought up I remember 501 00:22:30,280 --> 00:22:33,720 Speaker 1: in that show was the difference between work and chores, 502 00:22:34,280 --> 00:22:37,600 Speaker 1: and that chores are a family responsibility that the kids 503 00:22:37,600 --> 00:22:40,000 Speaker 1: don't get paid for. And I think that's really helpful 504 00:22:40,080 --> 00:22:42,879 Speaker 1: because if you can differentiate for your kids the basic 505 00:22:42,920 --> 00:22:44,760 Speaker 1: things that they need to do as a part of 506 00:22:44,760 --> 00:22:46,480 Speaker 1: your family that they don't get paid for, that's just 507 00:22:46,520 --> 00:22:51,400 Speaker 1: their responsibility, and then also provide them opportunities to do 508 00:22:51,480 --> 00:22:54,280 Speaker 1: extra things that are called work that make them money, 509 00:22:54,480 --> 00:22:56,280 Speaker 1: and then teaching them how to handle that money well, 510 00:22:56,600 --> 00:22:59,159 Speaker 1: including saving a good portion of what they make. I 511 00:22:59,160 --> 00:23:02,720 Speaker 1: think that in conjunction with you modeling behavior well and 512 00:23:02,800 --> 00:23:05,600 Speaker 1: opening up that conversation with your child. I mean, if 513 00:23:05,640 --> 00:23:08,119 Speaker 1: you do that, you're really firing on all cylinders and 514 00:23:08,160 --> 00:23:10,560 Speaker 1: well in regards to what parents should be saving for 515 00:23:10,600 --> 00:23:13,560 Speaker 1: their kids. Like, honestly, that's going to be different for everyone. 516 00:23:14,040 --> 00:23:17,200 Speaker 1: Just know that you have no obligation to save for 517 00:23:17,560 --> 00:23:20,720 Speaker 1: your your kids retirement or even their college necessarily, right, 518 00:23:21,000 --> 00:23:23,880 Speaker 1: If you want to do that, that's kind, that's incredibly generous. 519 00:23:24,000 --> 00:23:26,200 Speaker 1: My parents, I'll say, like they were able to save 520 00:23:26,240 --> 00:23:28,119 Speaker 1: money for my college and because of that, they were 521 00:23:28,160 --> 00:23:30,760 Speaker 1: able to help me out drastically from a financial standpoint. 522 00:23:30,960 --> 00:23:32,760 Speaker 1: But you just need to keep in mind that there's 523 00:23:32,760 --> 00:23:34,600 Speaker 1: not gonna be a one size fits all principle for 524 00:23:34,600 --> 00:23:36,000 Speaker 1: for all the different kids out there, you need to 525 00:23:36,040 --> 00:23:39,280 Speaker 1: take your individual child into account and how you think 526 00:23:39,280 --> 00:23:42,439 Speaker 1: that they're able to learn these different money lessons, because, honestly, man, 527 00:23:42,480 --> 00:23:45,440 Speaker 1: I think there's almost like a balance between being generous 528 00:23:45,440 --> 00:23:47,520 Speaker 1: with your kids and wanting to give them things and 529 00:23:47,600 --> 00:23:50,399 Speaker 1: make them happy now, And on the other hand, you 530 00:23:50,440 --> 00:23:54,000 Speaker 1: also have doing the hard things, which also might mean 531 00:23:54,240 --> 00:23:56,359 Speaker 1: being maybe less generous. But at the same time, I 532 00:23:56,440 --> 00:23:58,359 Speaker 1: think for some kids that's gonna mean that they are 533 00:23:58,400 --> 00:24:00,720 Speaker 1: able to learn that lesson maybe a little moreally, and 534 00:24:00,760 --> 00:24:02,479 Speaker 1: each person is going to have to figure out what 535 00:24:02,520 --> 00:24:04,960 Speaker 1: that sweet spot is for them, uh well, not for them, 536 00:24:05,000 --> 00:24:07,399 Speaker 1: but for their kids specifically. Yeah, I think you know, 537 00:24:07,440 --> 00:24:10,959 Speaker 1: withholding love and affection and kindness and generosity towards your 538 00:24:11,000 --> 00:24:14,959 Speaker 1: children is not cool. But I think you know, withholding 539 00:24:15,480 --> 00:24:17,919 Speaker 1: giving the money for things, there are a lot of 540 00:24:17,920 --> 00:24:21,520 Speaker 1: reasons to do that and instilling certain characteristics in them, 541 00:24:21,560 --> 00:24:23,440 Speaker 1: helping them learn the value of a dollar. Sometimes the 542 00:24:23,680 --> 00:24:26,119 Speaker 1: more you give them, the more maybe allowance you just 543 00:24:26,280 --> 00:24:29,200 Speaker 1: pass their way, the nicer things that you buy them, 544 00:24:29,280 --> 00:24:32,960 Speaker 1: it degrades their understanding of what money means. I think 545 00:24:32,960 --> 00:24:35,520 Speaker 1: there's also a lot of pressure in our society right now. 546 00:24:35,840 --> 00:24:38,080 Speaker 1: That says all I need to be giving my kids 547 00:24:38,119 --> 00:24:39,800 Speaker 1: all these things, and I need to be saving for 548 00:24:39,840 --> 00:24:42,240 Speaker 1: their future, and I need to pay for their college 549 00:24:42,240 --> 00:24:44,760 Speaker 1: and full and you don't have that obligation as a 550 00:24:44,800 --> 00:24:48,239 Speaker 1: parent like Matt's parents. If you have that ability and 551 00:24:48,320 --> 00:24:50,280 Speaker 1: you can still retire when your kids are in high 552 00:24:50,280 --> 00:24:51,760 Speaker 1: school kind of thing, Like you have that sort of 553 00:24:51,760 --> 00:24:55,240 Speaker 1: financial mindset where you are prioritizing your own financial freedom 554 00:24:55,320 --> 00:24:58,119 Speaker 1: while prioritizing saving for your kids. I think that's great, 555 00:24:58,520 --> 00:25:00,919 Speaker 1: but don't put too much pressure on yourself at the 556 00:25:00,960 --> 00:25:03,240 Speaker 1: same time, because some of the best parents out there 557 00:25:03,520 --> 00:25:07,160 Speaker 1: aren't saving a dime for their kids education. And I'm 558 00:25:07,200 --> 00:25:10,240 Speaker 1: one of them actually, so uh yeah, you can. You 559 00:25:10,280 --> 00:25:12,040 Speaker 1: can judge me all you want, but I'm not doing 560 00:25:12,040 --> 00:25:14,199 Speaker 1: it well real quickly too. I wanted to mention you 561 00:25:14,200 --> 00:25:16,400 Speaker 1: said the word allowance, and that's something I want to 562 00:25:16,280 --> 00:25:18,800 Speaker 1: touch on because I think that's a word that we 563 00:25:18,840 --> 00:25:20,919 Speaker 1: just shouldn't be using with our kids right Like there 564 00:25:20,920 --> 00:25:24,280 Speaker 1: shouldn't be an allowance. There should be payment for jobs. 565 00:25:24,480 --> 00:25:26,840 Speaker 1: There are responsibilities that children have, like you said, as 566 00:25:26,880 --> 00:25:28,760 Speaker 1: as part of the family, but it's it's never just 567 00:25:28,840 --> 00:25:31,000 Speaker 1: given to them because they're part of the family, right 568 00:25:31,040 --> 00:25:33,680 Speaker 1: like the money part of it, money is earned. I 569 00:25:33,760 --> 00:25:35,560 Speaker 1: know personally for us, Man, we're never really going to 570 00:25:35,680 --> 00:25:37,919 Speaker 1: use the word allowance. Yep. I'm with you man, al right, 571 00:25:37,960 --> 00:25:40,200 Speaker 1: will So best of luck to you as you seek 572 00:25:40,280 --> 00:25:43,159 Speaker 1: to teach your children about money. And we've got two 573 00:25:43,200 --> 00:25:45,000 Speaker 1: more questions coming up, Matt and after the break. The 574 00:25:45,000 --> 00:25:47,040 Speaker 1: first question we're gonna get to is about a rath 575 00:25:47,280 --> 00:25:59,199 Speaker 1: verse a traditional ira A. Alright, we're back. Let's go 576 00:25:59,200 --> 00:26:01,280 Speaker 1: ahead now and here that about iras, and this is 577 00:26:01,320 --> 00:26:04,800 Speaker 1: actually has more to do with taxes, so let's hear it. Hey, guys, 578 00:26:05,040 --> 00:26:08,159 Speaker 1: Mine has been calling from San Francisco. I'm a fairly 579 00:26:08,200 --> 00:26:11,919 Speaker 1: new listener to the show, but I'm definitely enjoying it 580 00:26:11,960 --> 00:26:15,960 Speaker 1: and going through the backlog of recordings you have. Anyhow, 581 00:26:16,000 --> 00:26:18,399 Speaker 1: I want to say thanks for making the show. And 582 00:26:18,400 --> 00:26:20,879 Speaker 1: I had a question for you. So I'm a public 583 00:26:20,920 --> 00:26:26,000 Speaker 1: sector employee and because of that, i have to automatically 584 00:26:26,000 --> 00:26:29,239 Speaker 1: get eleven percent of my check taken out to go 585 00:26:29,359 --> 00:26:33,520 Speaker 1: towards my pension. But I'm also contributing eleven percent through 586 00:26:33,600 --> 00:26:37,879 Speaker 1: a deferred compensation plan or four seven B. But my 587 00:26:37,960 --> 00:26:41,399 Speaker 1: income my A G I is going to be right over. 588 00:26:42,080 --> 00:26:47,040 Speaker 1: That's seventy four K, which is the IRA deductible limit. 589 00:26:47,480 --> 00:26:49,639 Speaker 1: And so I want to know if there's any point 590 00:26:49,800 --> 00:26:53,159 Speaker 1: in putting anything into a traditional high or A for 591 00:26:53,320 --> 00:26:56,080 Speaker 1: me this year, or if I should just put anything 592 00:26:56,640 --> 00:26:59,560 Speaker 1: else I want to save into a ROTH. Appreciate any 593 00:26:59,640 --> 00:27:04,480 Speaker 1: few comment and uh, thanks so much, Ben, thanks so 594 00:27:04,640 --> 00:27:07,359 Speaker 1: much for listening and for submitting a question. And uh, 595 00:27:07,640 --> 00:27:10,600 Speaker 1: just be careful as you're listening to our earlier episodes. 596 00:27:11,280 --> 00:27:14,399 Speaker 1: Probably not our finest work. I think we've done a 597 00:27:14,440 --> 00:27:15,760 Speaker 1: lot of fun stuff, Matt. I think we've done a 598 00:27:15,760 --> 00:27:17,720 Speaker 1: lot of good stuff, and and every time we record, 599 00:27:18,040 --> 00:27:20,119 Speaker 1: we have a good time. But I think probably our 600 00:27:20,119 --> 00:27:22,520 Speaker 1: first five ten episodes not our best work. We spent 601 00:27:22,560 --> 00:27:24,520 Speaker 1: a lot of time talking about the beer back in 602 00:27:24,520 --> 00:27:26,680 Speaker 1: the day, Do you remember that? Which way too much? 603 00:27:26,680 --> 00:27:28,840 Speaker 1: Which is fine if you're really into beer, But if 604 00:27:28,840 --> 00:27:30,560 Speaker 1: you're not really into beer, you might want to skip 605 00:27:30,560 --> 00:27:34,920 Speaker 1: the first five to ten minutes of those first ten episodes. Alright, Ben, 606 00:27:34,960 --> 00:27:37,520 Speaker 1: we're gonna answer your question. But for everyone else out 607 00:27:37,520 --> 00:27:41,040 Speaker 1: there who doesn't know what Ben is exactly asking, let's 608 00:27:41,040 --> 00:27:42,800 Speaker 1: go ahead and set it up for y'all. Uh, if 609 00:27:42,840 --> 00:27:46,119 Speaker 1: you are covered by a retirement plan at work, you 610 00:27:46,119 --> 00:27:49,399 Speaker 1: can't deduct contributions to an IRA if your income or 611 00:27:49,480 --> 00:27:53,240 Speaker 1: technically speaking, if you're modified adjusted gross income is over 612 00:27:53,320 --> 00:27:57,680 Speaker 1: seventy four thou dollars if you're filing as a single individual. 613 00:27:58,200 --> 00:28:00,760 Speaker 1: And so because Ben is over that line, there's no 614 00:28:00,880 --> 00:28:04,679 Speaker 1: tax benefit of contributing to a traditional IRA, and so 615 00:28:04,760 --> 00:28:07,439 Speaker 1: because of that, we would recommend that Ben, that you 616 00:28:07,480 --> 00:28:09,600 Speaker 1: go with that roth ira all the way. Yeah, the 617 00:28:09,760 --> 00:28:13,679 Speaker 1: only benefit to going into a traditional IRA over a 618 00:28:13,760 --> 00:28:16,840 Speaker 1: RATH is being able to take a current year tax benefit. 619 00:28:17,160 --> 00:28:19,320 Speaker 1: And if you don't have access to that current year 620 00:28:19,359 --> 00:28:21,800 Speaker 1: tax benefit because you make too much, which by the way, 621 00:28:21,800 --> 00:28:23,679 Speaker 1: Ben is a good problem to have. Co drets on 622 00:28:23,720 --> 00:28:26,240 Speaker 1: having I income. If you can't take that tax break, 623 00:28:26,480 --> 00:28:29,159 Speaker 1: then go with the roth ira. Pay the tax that 624 00:28:29,200 --> 00:28:31,040 Speaker 1: you would have paid anyway. But then you want to 625 00:28:31,040 --> 00:28:33,879 Speaker 1: pay the tax in retirement when you're withdrawing the money. 626 00:28:34,040 --> 00:28:36,760 Speaker 1: That's right. On a traditional IRA, you pay no taxes now, 627 00:28:36,800 --> 00:28:38,760 Speaker 1: but you pay the taxes later, and on a roth 628 00:28:38,800 --> 00:28:41,760 Speaker 1: ira you pay all your taxes now but no taxes later. 629 00:28:41,800 --> 00:28:43,840 Speaker 1: And Matt, we're fans of the rath anyway, like we 630 00:28:43,880 --> 00:28:46,560 Speaker 1: did an episode not too long ago about the beauty 631 00:28:46,560 --> 00:28:48,520 Speaker 1: of the roth ira because it is such a great 632 00:28:48,600 --> 00:28:51,840 Speaker 1: and flexible retirement vehicle. So Ben, you're not really losing 633 00:28:51,840 --> 00:28:54,200 Speaker 1: anything by going with the rath as opposed to the 634 00:28:54,240 --> 00:28:56,880 Speaker 1: traditional because you know what, we like it better. And anyway, 635 00:28:57,000 --> 00:28:59,080 Speaker 1: in fact is this is also great from a tax 636 00:28:59,120 --> 00:29:02,000 Speaker 1: planning standpoint. It right, you can pay tax right now 637 00:29:02,120 --> 00:29:05,520 Speaker 1: at historically low rates and then just never pay tax 638 00:29:05,600 --> 00:29:08,040 Speaker 1: on that again. And honestly, what you're able to do 639 00:29:08,200 --> 00:29:10,960 Speaker 1: is to kind of diversify your your tax burden that 640 00:29:11,000 --> 00:29:13,240 Speaker 1: you have because you have your work sponsored retirement account 641 00:29:13,240 --> 00:29:15,160 Speaker 1: and that's with pre tax dollars and so you are 642 00:29:15,200 --> 00:29:18,240 Speaker 1: already going to be paying taxes on that money in retirement. 643 00:29:18,440 --> 00:29:21,040 Speaker 1: So honestly, it's nice to diversify a little bit, pay 644 00:29:21,080 --> 00:29:23,280 Speaker 1: some taxes now, and then on the back end, when 645 00:29:23,320 --> 00:29:25,360 Speaker 1: it comes to your rath ira, you won't have to 646 00:29:25,400 --> 00:29:27,440 Speaker 1: pay any taxes on that, and then you've got those 647 00:29:27,480 --> 00:29:29,960 Speaker 1: two buckets that you can pull from at different times 648 00:29:30,040 --> 00:29:32,720 Speaker 1: when you're retired, and that's great. So the flexibility of 649 00:29:32,760 --> 00:29:35,000 Speaker 1: the wrath is greater than that of a traditional ira, 650 00:29:35,520 --> 00:29:38,200 Speaker 1: and even if you retire early, it's easy to draw 651 00:29:38,240 --> 00:29:41,040 Speaker 1: the contributions that you made to your wrath with no 652 00:29:41,240 --> 00:29:43,880 Speaker 1: fees or penalties. And by the way, just in case 653 00:29:43,960 --> 00:29:45,720 Speaker 1: you don't know who to do business with when it 654 00:29:45,760 --> 00:29:48,720 Speaker 1: comes to opening up a wrath, well, we strongly recommend 655 00:29:48,800 --> 00:29:52,320 Speaker 1: the low cost providers like Vanguard, Fidelity and m One. 656 00:29:52,640 --> 00:29:54,880 Speaker 1: And Matt's even written a really great article about in 657 00:29:55,000 --> 00:29:56,920 Speaker 1: one upon our site that you can check out. All right, Jill, 658 00:29:56,960 --> 00:29:59,720 Speaker 1: Our last question is from Katie and she has a 659 00:29:59,760 --> 00:30:04,960 Speaker 1: question regarding a small business banking accounts. Hi, guys, my 660 00:30:05,080 --> 00:30:08,560 Speaker 1: name is Katie and I'm from Tacoma, Washington. I'm a 661 00:30:08,600 --> 00:30:12,080 Speaker 1: new listener, but I very much enjoy your show. You 662 00:30:12,160 --> 00:30:17,040 Speaker 1: do a great job unraveling complicated topics with enthusiasm. I 663 00:30:17,120 --> 00:30:18,959 Speaker 1: was hoping that you might be able to help me 664 00:30:19,080 --> 00:30:22,640 Speaker 1: with a complicated topic of my own. I'm in the 665 00:30:22,680 --> 00:30:27,440 Speaker 1: beginning stages of starting a very small small business and 666 00:30:27,640 --> 00:30:31,320 Speaker 1: I'm looking for a separate bank account to use exclusively 667 00:30:31,400 --> 00:30:34,640 Speaker 1: for this business. I was wondering is it better to 668 00:30:34,720 --> 00:30:38,080 Speaker 1: look at credit unions or some of the larger bank 669 00:30:38,200 --> 00:30:42,480 Speaker 1: chains for this purpose. Any advice would be appreciated. Thank 670 00:30:42,520 --> 00:30:46,400 Speaker 1: you again for all your great advice. Katie, thank you 671 00:30:46,400 --> 00:30:48,880 Speaker 1: so much for the kind words and for submitting a question. 672 00:30:48,960 --> 00:30:51,440 Speaker 1: And by the way, Tacoma, a lot of my extended 673 00:30:51,480 --> 00:30:54,040 Speaker 1: family lives there, so I love that part of the country. 674 00:30:54,080 --> 00:30:56,400 Speaker 1: It's a great spot. And congrats also on starting your 675 00:30:56,400 --> 00:31:00,280 Speaker 1: own small business. It's not easy but super rewarding. Yeah, 676 00:31:00,320 --> 00:31:02,360 Speaker 1: and Katie, you know you mentioned that you've got a 677 00:31:02,400 --> 00:31:04,640 Speaker 1: small small business, but you know what, if you keep 678 00:31:04,680 --> 00:31:06,600 Speaker 1: working at it, before long, it's going to be your 679 00:31:06,600 --> 00:31:09,479 Speaker 1: full time gig. And yeah, like Joel said, owning your 680 00:31:09,480 --> 00:31:11,880 Speaker 1: own business can be totally worth it. And so credit 681 00:31:11,960 --> 00:31:14,960 Speaker 1: unions aren't a bad place to go if you're looking at, 682 00:31:15,040 --> 00:31:18,480 Speaker 1: you know, opening that small business accounts, but you definitely 683 00:31:18,760 --> 00:31:22,040 Speaker 1: don't want to go with a national bank instead. Oftentimes 684 00:31:22,120 --> 00:31:24,200 Speaker 1: online banks they can kind of be the sweet spot 685 00:31:24,240 --> 00:31:27,920 Speaker 1: for most individual accounts and also for for small business banking. 686 00:31:28,360 --> 00:31:31,320 Speaker 1: The only time an online account might sort of fall 687 00:31:31,360 --> 00:31:34,320 Speaker 1: shorten as if your small business accepts cash. A lot 688 00:31:34,320 --> 00:31:36,280 Speaker 1: of the online banks don't have a way that you 689 00:31:36,320 --> 00:31:39,080 Speaker 1: can deposit cash, so that's one thing to keep in mind. Yeah, man, 690 00:31:39,080 --> 00:31:41,680 Speaker 1: I completely agree. I think credit unions are great to consider, 691 00:31:42,040 --> 00:31:44,520 Speaker 1: but online banks have come a long way and if 692 00:31:44,520 --> 00:31:47,400 Speaker 1: you don't need access to depositing cash, I think some 693 00:31:47,440 --> 00:31:50,120 Speaker 1: of the best perks can be found by choosing an 694 00:31:50,160 --> 00:31:53,760 Speaker 1: online bank for business, and Matt, from everything I've researched 695 00:31:53,760 --> 00:31:57,640 Speaker 1: and read, you're actually doing business with the best online 696 00:31:57,640 --> 00:32:01,560 Speaker 1: bank out there, as Access. I remember the first time 697 00:32:01,560 --> 00:32:03,600 Speaker 1: you told me about this bank, it used to be 698 00:32:03,640 --> 00:32:06,480 Speaker 1: called Bank of Internet, which to me you felt like 699 00:32:06,480 --> 00:32:09,600 Speaker 1: the scammiest name for a bank, the most ratchet online 700 00:32:09,600 --> 00:32:12,840 Speaker 1: bank name ever. Like, we're on the Internet and we're 701 00:32:12,880 --> 00:32:15,920 Speaker 1: a bank, So I'm really there for right, Bank of Internet. 702 00:32:16,200 --> 00:32:18,440 Speaker 1: So I'm really glad that they've changed their name and 703 00:32:18,480 --> 00:32:21,760 Speaker 1: it's something slightly more professional, or it just at least 704 00:32:21,800 --> 00:32:23,880 Speaker 1: not weird. It sounds a little cooler. Yeah, but Access 705 00:32:24,000 --> 00:32:26,200 Speaker 1: actually has a free banking option, and on top of that, 706 00:32:26,240 --> 00:32:30,520 Speaker 1: they actually paid decent rates for small businesses that keep 707 00:32:30,520 --> 00:32:33,479 Speaker 1: a decent amount of cash sitting in a savings account, 708 00:32:33,480 --> 00:32:35,560 Speaker 1: which is hard to find. Right. Yeah, that's right, man, 709 00:32:35,640 --> 00:32:38,800 Speaker 1: totally true. And again we're saying axos might be kind 710 00:32:38,800 --> 00:32:41,240 Speaker 1: of hard to understand, and that's spelled a x O 711 00:32:41,800 --> 00:32:43,760 Speaker 1: s if you want to look that at yourself. And 712 00:32:43,880 --> 00:32:47,320 Speaker 1: a specific credit union to check outs would be Navy Federal. 713 00:32:47,680 --> 00:32:50,680 Speaker 1: They've got branches all across the country, and actually searched 714 00:32:50,720 --> 00:32:53,040 Speaker 1: real quick there in Tacoma, and guess what, they've got 715 00:32:53,040 --> 00:32:56,480 Speaker 1: a branch in Tacoma. So they're highly rated national chain 716 00:32:56,760 --> 00:32:59,040 Speaker 1: credit union. That's definitely worth checking out. And you know, 717 00:32:59,040 --> 00:33:01,640 Speaker 1: they ring really well and they truly do have some 718 00:33:01,720 --> 00:33:05,040 Speaker 1: of the best perks for small business owners who need 719 00:33:05,200 --> 00:33:08,120 Speaker 1: a banking option. Yeah, and when it comes to business 720 00:33:08,120 --> 00:33:11,360 Speaker 1: banking accounts, well, for a lot of years, it's been really, 721 00:33:11,400 --> 00:33:14,880 Speaker 1: really hard to find a good business bank because most 722 00:33:14,920 --> 00:33:18,760 Speaker 1: banks charge higher fees for business accounts and they don't 723 00:33:18,840 --> 00:33:22,280 Speaker 1: care to pay good rates of interest to business account holders. 724 00:33:22,560 --> 00:33:24,760 Speaker 1: We've mentioned, Matt on the show. A lot of great 725 00:33:24,800 --> 00:33:28,640 Speaker 1: online banks that specialize in helping people with personal accounts. 726 00:33:28,680 --> 00:33:30,840 Speaker 1: There are a lot of great choices there, but in 727 00:33:30,880 --> 00:33:34,800 Speaker 1: the business account arena, the good choices are just far fewer. Yeah. 728 00:33:34,800 --> 00:33:36,480 Speaker 1: I mean, it took a number of years for banks 729 00:33:36,520 --> 00:33:39,320 Speaker 1: to start offering some business options with some features that 730 00:33:39,360 --> 00:33:41,200 Speaker 1: you would come to expect. And so that's what we 731 00:33:41,200 --> 00:33:43,400 Speaker 1: would recommend you to do, Katie, is to think through 732 00:33:44,120 --> 00:33:47,440 Speaker 1: and identify, you know, what you want from your business account. 733 00:33:47,560 --> 00:33:49,920 Speaker 1: For me and mostly came down to two things. I 734 00:33:49,960 --> 00:33:53,080 Speaker 1: wanted to not have to pay any maintenance fees, and 735 00:33:53,200 --> 00:33:56,080 Speaker 1: I also wanted to be able to make mobile check deposits. 736 00:33:56,440 --> 00:33:59,960 Speaker 1: Those basically were my only criteria and it took year 737 00:34:00,160 --> 00:34:02,440 Speaker 1: is like literally it was only up until maybe like 738 00:34:02,520 --> 00:34:05,320 Speaker 1: five years ago where that was even an option where 739 00:34:05,320 --> 00:34:06,880 Speaker 1: you can make a deposit on a check that was 740 00:34:06,960 --> 00:34:09,920 Speaker 1: over like a thousand bucks or something like that. And 741 00:34:09,960 --> 00:34:11,960 Speaker 1: so for you, Katie, just think through, you know, what 742 00:34:12,000 --> 00:34:14,239 Speaker 1: it is that you're looking for, Like maybe for you 743 00:34:14,239 --> 00:34:15,800 Speaker 1: you want to be able to have a t M 744 00:34:15,840 --> 00:34:17,960 Speaker 1: access to be able to withdraw cash, or maybe you 745 00:34:17,960 --> 00:34:20,680 Speaker 1: want to be able to you know, deposit cash if 746 00:34:20,800 --> 00:34:23,520 Speaker 1: your business accepts cash. And maybe if you're gonna consider 747 00:34:23,560 --> 00:34:25,839 Speaker 1: a business loan down the road as well, that's something 748 00:34:25,840 --> 00:34:27,399 Speaker 1: to keep in mind. It might be easier to take 749 00:34:27,400 --> 00:34:29,839 Speaker 1: out the business line of credits with a credit union 750 00:34:29,880 --> 00:34:33,320 Speaker 1: who offers fantastic rates obviously than you would with a 751 00:34:33,360 --> 00:34:36,839 Speaker 1: you know, big multinational company. Like like, we're not gonna 752 00:34:36,880 --> 00:34:40,439 Speaker 1: say because we just don't like saying their names. Yeah, Matt, 753 00:34:40,480 --> 00:34:42,239 Speaker 1: my mom always said, if you don't have anything nice 754 00:34:42,239 --> 00:34:44,080 Speaker 1: to say, don't say it at all. And so maybe 755 00:34:44,120 --> 00:34:47,640 Speaker 1: we shouldn't talk trash about the big banks wise words. Yes, 756 00:34:47,680 --> 00:34:49,400 Speaker 1: So hopefully that helps Katie. And we'll put links to 757 00:34:49,480 --> 00:34:51,279 Speaker 1: a couple of our favorites that we mentioned in the 758 00:34:51,280 --> 00:34:53,040 Speaker 1: show notes to the just in case you forgot how 759 00:34:53,080 --> 00:34:55,440 Speaker 1: to spell axos or whatever. We'll make sure that's a 760 00:34:55,440 --> 00:34:57,680 Speaker 1: clickable link for you. Matt, all right, it's time for 761 00:34:57,760 --> 00:34:59,040 Speaker 1: us to get back to the beer that we had 762 00:34:59,040 --> 00:35:01,360 Speaker 1: on the show today. We drank a beer called Okay 763 00:35:01,719 --> 00:35:04,400 Speaker 1: by Prairie Artist and Nails, and that was donated to 764 00:35:04,440 --> 00:35:05,799 Speaker 1: us by our good buddy Abe. But what do you 765 00:35:05,800 --> 00:35:08,360 Speaker 1: think of that beer? Man? Man, Before I even drank 766 00:35:08,480 --> 00:35:11,799 Speaker 1: that beer, give it a little sniff, and Man, the 767 00:35:11,920 --> 00:35:14,680 Speaker 1: sort of breadiness that was coming off of that brown ale, Like, 768 00:35:14,719 --> 00:35:16,479 Speaker 1: I felt like I just opened a bloaf of bread 769 00:35:16,480 --> 00:35:18,160 Speaker 1: from the store. I felt like I could smell like 770 00:35:18,160 --> 00:35:21,040 Speaker 1: those dark brown crusts that I love so much. I'm 771 00:35:21,040 --> 00:35:23,959 Speaker 1: one of those weirdos that loves that dark brown top 772 00:35:24,000 --> 00:35:27,040 Speaker 1: crust that you can peel off of some holy bread. Well, 773 00:35:27,080 --> 00:35:28,440 Speaker 1: you can come eat a bunch of it off my 774 00:35:28,520 --> 00:35:32,399 Speaker 1: daughter's plate. I love it. But man, drinking this brown 775 00:35:32,440 --> 00:35:34,480 Speaker 1: Ale took me back because Brown Hills were one of 776 00:35:34,520 --> 00:35:37,440 Speaker 1: my introductions to to craft beers, I think back to 777 00:35:37,680 --> 00:35:40,760 Speaker 1: having my first Newcastle, and I'm not at all comparing 778 00:35:40,800 --> 00:35:43,840 Speaker 1: this beer to Newcastle, because this is way better. But 779 00:35:43,880 --> 00:35:46,239 Speaker 1: I really like this beer. Yeah, no, this is ten 780 00:35:46,280 --> 00:35:48,840 Speaker 1: times better than a Newcastle. And not to hate on Newcastle, 781 00:35:48,960 --> 00:35:52,200 Speaker 1: but this beer is rich. It was smooth, it was boozy, sweet, 782 00:35:52,520 --> 00:35:54,280 Speaker 1: and I think because it was aged in the whiskey 783 00:35:54,280 --> 00:35:57,640 Speaker 1: barrels and just because it's a well made beer. I mean, 784 00:35:57,640 --> 00:36:00,120 Speaker 1: it was delicious. And it's one of those slow sipping 785 00:36:00,600 --> 00:36:04,440 Speaker 1: brown ales, probably best for a nice little fall or 786 00:36:04,440 --> 00:36:06,440 Speaker 1: winter night, but you know what, we're drinking in the 787 00:36:06,520 --> 00:36:08,919 Speaker 1: middle of the summer, and I'm not unhappy about that. Yeah, 788 00:36:08,960 --> 00:36:11,160 Speaker 1: that's how we do man. And you mentioned sweet. That's 789 00:36:11,520 --> 00:36:14,080 Speaker 1: totally a characteristic of this beer. And so if you're 790 00:36:14,080 --> 00:36:16,520 Speaker 1: having a tough time getting into craft beers because everyone's 791 00:36:16,560 --> 00:36:18,120 Speaker 1: just trying to, you know, make you drink I p 792 00:36:18,280 --> 00:36:20,280 Speaker 1: A s and they're all bitter or juicy or whatever, 793 00:36:20,360 --> 00:36:22,120 Speaker 1: and you're looking for something that drinks a little more 794 00:36:22,160 --> 00:36:24,200 Speaker 1: sweet and rich, well, you know, this is the kind 795 00:36:24,200 --> 00:36:26,359 Speaker 1: of beer that you totally need to get into and 796 00:36:26,360 --> 00:36:28,600 Speaker 1: then you can eventually make your way to those bitter 797 00:36:28,640 --> 00:36:30,960 Speaker 1: I p A s. Yeah, no doubt. All right, Matt, Well, 798 00:36:30,960 --> 00:36:33,720 Speaker 1: this is a fun episode. Always love tackling listener questions, 799 00:36:34,040 --> 00:36:35,920 Speaker 1: and we'll tackle more in a couple of weeks. If 800 00:36:35,920 --> 00:36:38,360 Speaker 1: you want to submit a question to potentially be answered 801 00:36:38,360 --> 00:36:40,000 Speaker 1: on the show, we would love to hear it. You 802 00:36:40,040 --> 00:36:42,040 Speaker 1: can do that via our website. Just go to how 803 00:36:42,040 --> 00:36:45,319 Speaker 1: to money dot com slash ask Yeah. And if you 804 00:36:45,440 --> 00:36:48,600 Speaker 1: enjoyed this episode and or you found it helpful, we 805 00:36:48,640 --> 00:36:50,520 Speaker 1: would love for you to leave us a review over 806 00:36:50,600 --> 00:36:55,280 Speaker 1: at Apple Podcasts. So Joel. Until next time, Best Friends Out, 807 00:36:55,560 --> 00:37:04,960 Speaker 1: Best Friends Out, M M.