WEBVTT - These Financial Rules Were Made to Be Broken #416 0:00:00.120 --> 0:00:02.960 Welcome to How the Money. I'm Joel and I and Matt. 0:00:03.160 --> 0:00:06.760 Today we are explaining why these financial rules were made 0:00:06.760 --> 0:00:27.479 to be broken. So, Joel, as you said that, it 0:00:27.520 --> 0:00:29.319 made me realize that this is an episode that I 0:00:29.360 --> 0:00:31.680 don't want listeners to listen to if they have never 0:00:31.720 --> 0:00:34.680 listened to our show before, because I'm planning this episode 0:00:34.720 --> 0:00:37.280 under the start here section exactly. Yeah, this is like 0:00:37.280 --> 0:00:40.400 a two thousand level class at your local university. We 0:00:40.400 --> 0:00:42.760 want to make sure that folks have truly like a 0:00:42.800 --> 0:00:45.559 foundation of a foundation of knowledge when it comes to 0:00:45.600 --> 0:00:48.320 personal finances. Because in this episode, we're going to talk 0:00:48.360 --> 0:00:51.040 about some concepts, uh, and we're gonna we're essentially we're 0:00:51.040 --> 0:00:53.080 gonna flip them on their head a little bit because 0:00:53.080 --> 0:00:55.360 we're making the argument that you can't take all the 0:00:55.400 --> 0:00:57.960 different financial rules that are out there at face value. 0:00:58.160 --> 0:01:00.440 We're gonna ask you to dig a little bit deeper 0:01:00.480 --> 0:01:03.280 and we're gonna explain why it is that we feel 0:01:03.280 --> 0:01:05.640 that there are certain financial rules that we can break. 0:01:05.880 --> 0:01:07.840 We're gonna talk about where you can place back and 0:01:07.880 --> 0:01:09.479 where we a little bit we can fight the man, 0:01:09.600 --> 0:01:11.360 you know, a little bit when it comes to the 0:01:11.360 --> 0:01:14.039 financial rules that we have all heard like these are 0:01:14.080 --> 0:01:16.360 These are common rules that you have probably heard a 0:01:16.400 --> 0:01:19.480 time or two or dozens of times, and and some 0:01:19.560 --> 0:01:22.280 of them, Um, there's there's certainly a kernel of truth 0:01:22.319 --> 0:01:25.039 that there's some good advice in there, but there are 0:01:25.080 --> 0:01:26.919 a lot of ways that you can break those rules 0:01:27.000 --> 0:01:30.319 and actually benefit your personal financests. Right exactly before we 0:01:30.319 --> 0:01:31.840 get to that, dude, I wanted to share a quick 0:01:31.880 --> 0:01:34.440 little story with you. Kate and I were on a 0:01:34.480 --> 0:01:37.080 belated anniversary trip. We were driving back from North Carolina. 0:01:37.319 --> 0:01:40.679 We went hiking up in the North Carolina Mountains. You 0:01:40.680 --> 0:01:42.479 spotted a bear while you were there too. I did 0:01:42.560 --> 0:01:45.959 we should post two bears, a mama and a cub, 0:01:46.319 --> 0:01:49.120 and I'm the cub was cute, but we quickly realized 0:01:49.160 --> 0:01:52.640 that there was a mama bear that was closely following. 0:01:52.760 --> 0:01:55.560 I was glad you didn't go like Leonardo in the 0:01:55.640 --> 0:01:59.360 revenues style thought my pocket knife. Uh No, Kate would 0:01:59.400 --> 0:02:00.880 not have let me do that. That would have been 0:02:01.400 --> 0:02:04.320 a bad ending to our anniversary of one of our 0:02:04.320 --> 0:02:07.480 anniversary hikes, but I was gonna share. Driving back from 0:02:07.480 --> 0:02:09.960 North Carolina, it was obvious there's a car up ahead 0:02:09.960 --> 0:02:11.960 of us that we're catching up to it was all 0:02:12.000 --> 0:02:14.880 decked out and the we just got married kind of look. 0:02:14.919 --> 0:02:16.839 You know, when I'm talking about the cans hitting the roads, 0:02:17.040 --> 0:02:22.200 No cans, I think that's dangerous actually, but the cans 0:02:22.360 --> 0:02:26.200 hitting windshield behind them? No. They had the window pant 0:02:26.400 --> 0:02:28.359 and it said, you know, just married, you know Mr 0:02:28.360 --> 0:02:31.560 and Mrs whatever their names were. I forget. That's always 0:02:31.600 --> 0:02:33.440 a super fun thing to do, right, you know, you're 0:02:33.560 --> 0:02:35.959 I guess they're driving to their honeymoon. They looked all happy, 0:02:36.880 --> 0:02:39.560 ready to get on with their their lives together. But 0:02:39.680 --> 0:02:42.320 something else that we noticed that was also written on 0:02:42.360 --> 0:02:47.519 the window was their Venmo handle, their their name. And 0:02:47.639 --> 0:02:50.040 I couldn't believe when I thought, I was like, wait what? 0:02:50.440 --> 0:02:53.600 And I realized that I guess they're hoping that folks 0:02:53.919 --> 0:02:56.880 driving down the interstate might see that, might want to 0:02:56.960 --> 0:03:00.280 congratulate them, might want to pass them some money, uh, 0:03:00.320 --> 0:03:02.160 in order to to help them celebrate a little bit. 0:03:02.280 --> 0:03:05.359 But before I share my thoughts, what do you think 0:03:05.480 --> 0:03:08.560 is that frugal? Is that cheap? Is that a tasteful 0:03:08.600 --> 0:03:10.800 move or do you feel like that that lacks class. 0:03:10.919 --> 0:03:13.120 I'm gonna say it's clever. I don't know if it's 0:03:13.120 --> 0:03:16.520 frugal or cheap, but it's clever because I think there 0:03:16.560 --> 0:03:18.399 are a lot of people who are going to see 0:03:18.440 --> 0:03:19.960 that driving down the side of the road and they 0:03:19.960 --> 0:03:22.000 are going to remember their wedding day and they're gonna 0:03:22.000 --> 0:03:24.120 remember all the excitement and they're gonna be compelled to 0:03:24.200 --> 0:03:28.280 drop bucks. Maybe maybe who I don't know. If some 0:03:28.320 --> 0:03:31.040 people would just be like, congrats, you guys made my day. 0:03:31.080 --> 0:03:33.400 That was pretty funny. I was because it's it's almost 0:03:33.400 --> 0:03:36.920 to me like when I'm walking through downtown Atlanta and 0:03:37.000 --> 0:03:40.240 I see, uh, someone like a homeless person who has 0:03:40.240 --> 0:03:42.320 a clever sign, like with a joke on it or 0:03:42.360 --> 0:03:44.800 something like that, it makes me more compelled to give. 0:03:44.840 --> 0:03:46.480 And I don't know what that is. But when they've 0:03:46.560 --> 0:03:49.360 kind of like just made me smile, you appreciate that creativity. Yeah, 0:03:49.400 --> 0:03:51.880 I'm like, I like the creativity. And I'm like, all right, yeah, 0:03:51.920 --> 0:03:54.800 here's here's five bucks. You know. Um. So I don't know, 0:03:55.040 --> 0:03:57.320 it's not like everyone's doing it. It's kind of a 0:03:57.360 --> 0:03:59.880 one off thing. I'm like, oh yeah, that is Collogum 0:03:59.920 --> 0:04:02.200 I ten bucks. Okay, So I kind of revealed I 0:04:02.240 --> 0:04:03.840 guess how I feel about it, because I truly when 0:04:03.840 --> 0:04:05.640 when I first saw I couldn't believe it. I was honestly, 0:04:05.680 --> 0:04:07.680 I was a little bit offended because I I have 0:04:07.800 --> 0:04:11.360 such uh like pull yourself up by your bootstraps, like 0:04:11.400 --> 0:04:14.760 self reliance kind of mentality that literally when I saw it, 0:04:14.760 --> 0:04:16.560 I just can't. I mean, I thought, you gotta be 0:04:16.640 --> 0:04:19.000 kidding me like that they're actually expecting people to give 0:04:19.040 --> 0:04:21.920 the money just because they got married? How dare they? 0:04:21.960 --> 0:04:24.159 That was like the old man side of me. But 0:04:24.200 --> 0:04:26.760 then I think it off my law on. Yeah, but 0:04:26.839 --> 0:04:28.960 then I thought, well why not? You know, like I 0:04:29.000 --> 0:04:32.480 think it would be maybe lacking taste if they expected 0:04:32.520 --> 0:04:34.840 you to give them money, but like there's no like 0:04:35.920 --> 0:04:37.839 or else. Well yeah no, and they weren't doing that. 0:04:37.880 --> 0:04:39.160 It was just kind of written on there. It's like 0:04:39.160 --> 0:04:41.280 almost like an afterthought, and it was much smaller than 0:04:41.360 --> 0:04:43.039 than what else was written up there. And what's the 0:04:43.040 --> 0:04:45.440 worst that could happen? Right? I mean, somebody driving down 0:04:45.440 --> 0:04:47.440 the road like me might see them and like judge 0:04:47.480 --> 0:04:50.279 them and never see them again. Who cares? But it 0:04:50.320 --> 0:04:52.159 never hurts to ask. It's like what we're talking about 0:04:52.200 --> 0:04:54.200 when it comes to asking for a discount, And like 0:04:54.240 --> 0:04:56.520 the downside, what's the downside. We're all so scared to 0:04:56.760 --> 0:04:59.600 make that ask. But really the person can only say no, 0:04:59.720 --> 0:05:00.920 they're not kind of like punch you in the face 0:05:01.000 --> 0:05:03.160 usually exactly. And so because of that, I was kind 0:05:03.160 --> 0:05:04.719 of like converted and right there on the spot, and 0:05:04.720 --> 0:05:07.680 so I pushed him five bits. Ye see, give me 0:05:07.680 --> 0:05:11.880 a dap, dude, Okay, I like that, Like I probably 0:05:11.920 --> 0:05:13.560 would have done the same if I've seen it, because 0:05:13.600 --> 0:05:15.680 it took me a second, because my natural inclination was 0:05:15.720 --> 0:05:17.279 just like, you gotta be kidding me. You went through 0:05:17.320 --> 0:05:19.520 all the realm of y. Yeah, that was like the 0:05:19.600 --> 0:05:23.159 journey of me and uh seeing you know, some newly 0:05:23.200 --> 0:05:25.040 wids on the interstate. But but yeah, I thought that 0:05:25.040 --> 0:05:26.719 was an interesting clever way. So if there are any 0:05:26.720 --> 0:05:29.040 new newly wids out there, that could be a way 0:05:29.080 --> 0:05:31.039 that you maybe pay for a nice dinner around on 0:05:31.080 --> 0:05:33.000 your honeymoon. Yeah. Make it fun, though, Make it fun, 0:05:33.200 --> 0:05:36.760 and people will I think probably be excited to drop 0:05:36.800 --> 0:05:38.840 you five bucks, like Matt finally got to the point 0:05:38.880 --> 0:05:41.400 of doing. Alright, let's mention the beer that we're having 0:05:41.400 --> 0:05:44.600 on this episode. This one is called Indefinite Staycation. It's 0:05:44.640 --> 0:05:48.000 by dog Fish Hed Brewing. Matt my buddy Ryan brought 0:05:48.040 --> 0:05:51.320 this beer back from Delaware. He actually visited the brewery. 0:05:51.320 --> 0:05:53.120 He goes up there once a year and he's always 0:05:53.200 --> 0:05:55.280 like nice enough to bring me bring us a bottle back. 0:05:55.360 --> 0:05:57.839 So big thanks to Ryan for um jad dropping this 0:05:57.880 --> 0:06:00.320 one off. We actually share to be together. He gave 0:06:00.360 --> 0:06:02.480 it to me, um and so yeah, looking forward to 0:06:02.520 --> 0:06:05.839 drinking this is like a really nice looking sour beer. 0:06:05.920 --> 0:06:10.000 So yeah, it came corked and caged. Always a fancy 0:06:10.040 --> 0:06:12.240 kind Yeah, one of those fancier beers. Looking forward to 0:06:12.320 --> 0:06:14.360 this and uh yeah, thank you Ryan for donating this 0:06:14.360 --> 0:06:17.800 one to Joel therefore to me. We'll give our thoughts 0:06:17.839 --> 0:06:19.200 on it at the end of the episode. But let's 0:06:19.200 --> 0:06:21.960 get on to the subject at hand, financial rules that 0:06:21.960 --> 0:06:24.640 were made to be broken. And Matt um, you know, 0:06:24.680 --> 0:06:27.000 speaking of going on a drive, seeing people you know 0:06:27.040 --> 0:06:29.880 on the interstate with they're just married signs up. I'm 0:06:29.880 --> 0:06:32.520 wondering if any how the money listeners out there are 0:06:32.800 --> 0:06:36.560 the type that always obeyed the speed limits. I don't know, um, 0:06:36.600 --> 0:06:39.800 that I've necessarily met anybody in my life who can 0:06:39.839 --> 0:06:42.440 claim to never have ever gone over the speed limit. Um, 0:06:42.480 --> 0:06:45.080 but maybe some of those people exist and Uh, yeah, 0:06:45.120 --> 0:06:49.440 I guess, like, do you consistently try to drive under 0:06:49.600 --> 0:06:51.720 the speed limit of the sign that you're seeing? If so, 0:06:51.839 --> 0:06:53.680 I think you are an anomaly like that is not 0:06:53.880 --> 0:06:57.640 your robot. That's the case exactly. So I'm of the 0:06:57.720 --> 0:07:00.640 belief and maybe some of our listeners will disagree, but 0:07:00.960 --> 0:07:03.760 speed limits were kind of made to be broken, and um, 0:07:03.800 --> 0:07:05.320 I'm just just trying to be honest here, and I'm 0:07:05.320 --> 0:07:07.520 not trying to insinuate that any of us should be 0:07:07.600 --> 0:07:10.560 reaching like formula level one s. Yeah that my oh 0:07:10.640 --> 0:07:13.200 six minivan, I'm gonna go like one tent only interstate 0:07:13.280 --> 0:07:15.040 or anything like that. Do you think Homer can reach 0:07:15.120 --> 0:07:17.760 those speeds? I think so. I think think so. Yeah, 0:07:17.760 --> 0:07:20.080 you still got some fight left left in him. But yeah, 0:07:20.320 --> 0:07:22.440 even like in a fifty five mile per hour zone, 0:07:22.480 --> 0:07:25.520 I often find myself going sixty five. Um, And I 0:07:25.560 --> 0:07:28.119 don't think I've met a person yet who never breaks 0:07:28.120 --> 0:07:30.360 that rule. And it's not that rules aren't helpful, right, 0:07:30.400 --> 0:07:32.840 that the speed limit isn't helpful. We like rules, and 0:07:32.840 --> 0:07:35.120 speed limits I think are overall a good thing. And 0:07:35.120 --> 0:07:36.920 these financial rules that we're gonna talk about, well, they 0:07:37.200 --> 0:07:39.480 can aid us on our financial journey, and there are 0:07:39.520 --> 0:07:41.760 sometimes when we need to rev the engine and blow 0:07:41.800 --> 0:07:44.520 past not just the you know sign that says fifty 0:07:44.520 --> 0:07:47.040 five an hour, but also we have to blow past 0:07:47.080 --> 0:07:48.880 some of the financial rules that we've heard our entire 0:07:48.960 --> 0:07:51.840 lives that are maybe cramping our style, um and not 0:07:51.880 --> 0:07:54.520 allowing us to make as much progress as we'd otherwise 0:07:54.560 --> 0:07:56.920 like to make. Totally. Yeah, when we believe, you know, 0:07:56.960 --> 0:07:58.520 that the rules are just black and white, it can 0:07:58.560 --> 0:08:00.640 limit what we're able to get done. Uh, and not 0:08:00.720 --> 0:08:02.920 only in our day to day lives, but also with 0:08:02.960 --> 0:08:05.160 our money. So kind of going back to your example, 0:08:05.160 --> 0:08:07.160 if you're driving sixty five instead of fifty five, that 0:08:07.240 --> 0:08:09.040 just means that you'll be able to arrive at the 0:08:09.080 --> 0:08:11.480 mountains or maybe the beach a little bit sooner. And 0:08:11.520 --> 0:08:13.360 we'd also argue that you can break this rule while 0:08:13.360 --> 0:08:16.800 still being responsible, still driving safely. Uh. And so similarly, 0:08:16.840 --> 0:08:20.200 there's a lot of financial advice out there. Some would 0:08:20.240 --> 0:08:22.800 even call them rules that are you know, etched into stone, 0:08:22.840 --> 0:08:25.320 as if they can never be broken. Where we believe 0:08:25.560 --> 0:08:28.240 a certain amount of liberty can be taken. So we're 0:08:28.240 --> 0:08:30.640 gonna cover some of those rules as well as why 0:08:30.800 --> 0:08:34.200 it's okay to be a conscientious objector to some of 0:08:34.200 --> 0:08:36.719 these financial rules. We're gonna give you the uh basically 0:08:36.880 --> 0:08:39.920 the ammunition that's going to inform you why it's okay 0:08:39.920 --> 0:08:41.400 to break some of these rules. Yeah. Yeah, we want 0:08:41.400 --> 0:08:42.920 to give the why behind it, not just be like 0:08:42.960 --> 0:08:45.440 this one's crap, toss it out, but giving kind of 0:08:45.520 --> 0:08:49.080 the ideas for then how you proceed, creating maybe a 0:08:49.080 --> 0:08:51.480 new framework for how you think about it, so that 0:08:51.520 --> 0:08:53.800 you're not just living your life by rigid rules, but 0:08:53.840 --> 0:08:57.000 that you have a fuller picture and understanding of kind 0:08:57.080 --> 0:08:59.560 of how they should be implemented, implemented into your life. 0:08:59.559 --> 0:09:02.679 For maybe you know where they shouldn't be. And so 0:09:02.840 --> 0:09:04.480 let's let's start with Matt. Matt, with some of the rules. 0:09:04.520 --> 0:09:06.280 Maybe they get a little judge. When it comes to 0:09:06.280 --> 0:09:09.160 how we live our personal lives, a few lifestyle rules 0:09:09.320 --> 0:09:11.559 are often cited, and then people begin to live their 0:09:11.600 --> 0:09:15.600 lives by these rules, often subconsciously, they get filtered in 0:09:15.679 --> 0:09:17.960 and then we just assume that we have to react 0:09:18.040 --> 0:09:20.120 this way because that's what the rules say. And then 0:09:20.200 --> 0:09:23.480 those rules can cause us to put off important, meaningful 0:09:23.520 --> 0:09:25.640 things in our lives because we've been led to believe 0:09:25.880 --> 0:09:28.520 that we're not in the financial position to make those 0:09:28.679 --> 0:09:31.640 uh to make those decisions for ourselves. And I think, Matt, 0:09:31.640 --> 0:09:34.320 one of those rules that I have heard stated countless 0:09:34.360 --> 0:09:37.000 times is that you shouldn't get married or start a 0:09:37.000 --> 0:09:40.680 family unless you are financially prepared to do so. And 0:09:40.720 --> 0:09:42.640 that sounds like a smart rule, doesn't It's like, Yeah, 0:09:42.720 --> 0:09:45.680 you don't want to have you know, negative net worth 0:09:45.800 --> 0:09:48.440 to your name by hundreds of thousands of dollars and 0:09:48.480 --> 0:09:50.600 then get married and attack yourself to someone else who 0:09:50.640 --> 0:09:55.040 has the same Like, I get why this rule is 0:09:55.120 --> 0:09:58.120 held out there as fact, But you don't have to 0:09:58.160 --> 0:10:01.000 have necessarily a fully funded emergency in order to get 0:10:01.040 --> 0:10:03.160 married to the love of your life, Like, there is 0:10:03.200 --> 0:10:06.240 no actual rule stating this. There's no rule that you 0:10:06.320 --> 0:10:08.240 have to own a home or you can put that 0:10:08.240 --> 0:10:11.320 emergency fund together while you're driving down the interstate exactly 0:10:11.480 --> 0:10:14.000 after you got other people funded for you. Yeah, and 0:10:14.120 --> 0:10:16.480 there's also no rule that you must have started saving 0:10:16.520 --> 0:10:20.000 for retirement before you tie the knots getting married. You 0:10:20.080 --> 0:10:22.679 do so because you love somebody else. You love that 0:10:22.720 --> 0:10:24.080 person that you want to spend the rest of your 0:10:24.080 --> 0:10:27.959 life with. And so we wouldn't say to not consider 0:10:28.040 --> 0:10:31.400 money at all when you're thinking about tying the knots uh. 0:10:31.640 --> 0:10:34.680 We're fans of pre marital counseling and getting what's called 0:10:34.720 --> 0:10:37.400 financially naked by like revealing kind of what's going on 0:10:37.440 --> 0:10:39.920 with your personal finances and your credit score before you 0:10:39.920 --> 0:10:41.880 actually do get married. You need to be honest and 0:10:41.960 --> 0:10:44.240 you need to share, you know, what your income is, 0:10:44.360 --> 0:10:46.000 if you have any debts. These are all things that 0:10:46.040 --> 0:10:48.120 don't need to be a surprise. You know, you don't 0:10:48.120 --> 0:10:49.720 need to save those until after you get married. Do 0:10:49.840 --> 0:10:51.640 talk about these things ahead of time, but things just 0:10:51.679 --> 0:10:54.080 don't have to be perfect exactly. Yeah. They don't think 0:10:54.120 --> 0:10:56.199 that you have to continue to push that wedding date 0:10:56.240 --> 0:10:58.920 down the road until you've reached like the most stringent 0:10:59.000 --> 0:11:02.360 financial goals possible. And I think it's important to note 0:11:02.360 --> 0:11:05.520 that nobody actually feels financially ready for these things, like 0:11:05.760 --> 0:11:07.960 you don't. You don't get to this point where you're like, ah, 0:11:08.000 --> 0:11:10.200 now I have enough money and we're going to live 0:11:10.200 --> 0:11:13.000 in what it bliss because we have we we've reached 0:11:13.000 --> 0:11:15.920 the financial status that we were looking to achieve. This 0:11:15.920 --> 0:11:17.520 this is one of those things I feel like it's 0:11:17.559 --> 0:11:20.480 important to push back on um and not to be 0:11:20.559 --> 0:11:23.600 stupid when it comes to getting married and spending tons 0:11:23.640 --> 0:11:25.000 of money on a wedding when you are in massive 0:11:25.000 --> 0:11:26.640 amounts of debt, you want to be thoughtful, but it's 0:11:26.640 --> 0:11:29.440 also important not to continue to put it off because 0:11:29.760 --> 0:11:31.880 you don't feel like you're quite in the financial position 0:11:31.920 --> 0:11:33.880 you want to be. There's always gonna be another problem, 0:11:33.960 --> 0:11:36.320 right because if you have say you say you've a 0:11:36.360 --> 0:11:38.800 massed a pretty decent net worth and you're looking to 0:11:38.840 --> 0:11:41.280 get married, well, then all sorts of other questions start 0:11:41.320 --> 0:11:43.440 coming up that you have to grapple with. As opposed 0:11:43.480 --> 0:11:46.240 to before when you're both broke right out of college. 0:11:46.280 --> 0:11:49.280 Things were a lot simpler back then, weren't they. And 0:11:49.360 --> 0:11:51.800 so you know, Joel, you mentioned family. I think likewise, 0:11:51.920 --> 0:11:54.440 like bringing kids into the world, if you've got massive 0:11:54.480 --> 0:11:57.599 amounts of debt and maybe little to no income, that 0:11:57.640 --> 0:12:00.120 doesn't make much sense. It's going to be really hard 0:12:00.120 --> 0:12:01.680 to give them the care that they need if you 0:12:01.720 --> 0:12:06.040 can't afford diapers, whether you're talking about disposable or cloth diapers. 0:12:06.320 --> 0:12:08.120 And similar to getting married, it always feels like a 0:12:08.120 --> 0:12:11.280 stretch to start having kids. Um. I think in many 0:12:11.320 --> 0:12:14.640 ways you're completely unprepared for it, and there's nothing that 0:12:14.679 --> 0:12:18.080 you could have actually done to fully prepare for having kids. 0:12:18.080 --> 0:12:21.000 It just takes it's like actually having kids. It's similarly similarly, 0:12:21.000 --> 0:12:22.280 you'd be like saying, you have to read all these 0:12:22.280 --> 0:12:24.880 parenting books before you begin having kids, and not I'm 0:12:24.880 --> 0:12:27.040 not against parenting books. I've brought a couple of myself, 0:12:27.240 --> 0:12:30.640 but even those like they don't really prepare you for 0:12:30.679 --> 0:12:34.120 having kids. And so yeah, it's probably helpful advice to 0:12:34.160 --> 0:12:36.480 say read a parenting book or two, but it's also 0:12:36.559 --> 0:12:38.240 like you don't. You don't have to before you have 0:12:38.320 --> 0:12:40.080 kids exactly. And when it comes to the money, like 0:12:40.120 --> 0:12:42.560 it's important maybe to talk to another friend who is 0:12:42.840 --> 0:12:44.319 maybe has a kid who's a year old or two 0:12:44.360 --> 0:12:45.640 years old and be like, hey, how much did it 0:12:45.640 --> 0:12:48.080 cost you? How much do you now spend going to 0:12:48.120 --> 0:12:50.240 the doctor. These are all good things to be aware of, 0:12:50.280 --> 0:12:51.920 and that's something you can figure out in a fifteen 0:12:51.920 --> 0:12:54.760 minute conversation. You don't have to spend you know, an 0:12:54.840 --> 0:12:57.760 entire semester going through your own child reading class. Uh, 0:12:57.800 --> 0:13:01.040 you know, based on reading books and so having some 0:13:01.120 --> 0:13:02.960 of your financial ducks in a row before you start 0:13:03.000 --> 0:13:04.920 trying to bring it as into the world is smart, 0:13:05.320 --> 0:13:07.120 don't you know, get us wrong, Like we we do 0:13:07.200 --> 0:13:09.200 think that it is worth preparing for a little bit. 0:13:09.360 --> 0:13:12.040 But don't let this rule cause you to to over 0:13:12.120 --> 0:13:14.679 prepare and wait too long when you really maybe you 0:13:14.720 --> 0:13:16.920 want to get that family started now. Uh, And by 0:13:17.040 --> 0:13:21.439 kicking that down the road, you're maybe sacrificing years of enjoyments, 0:13:21.480 --> 0:13:23.880 you know, years of us satisfied life that you would 0:13:23.880 --> 0:13:26.680 be able to enjoy were you to have those kids sooner, 0:13:26.760 --> 0:13:29.600 no doubt. Yeah. And I think another one in the 0:13:29.679 --> 0:13:33.000 lifestock category. The another matra or rule that has become 0:13:33.120 --> 0:13:36.760 ingrained is that you should retire when you reach retirement age. 0:13:37.240 --> 0:13:38.840 Makes sense, I guess because like it's in the name 0:13:39.000 --> 0:13:40.760 retirements called that's what do you do it. That's when 0:13:40.760 --> 0:13:42.360 we were tired. Kind of like speed limit Joel, you 0:13:42.559 --> 0:13:44.640 shouldn't go faster than with the speed limits. Say, I know, 0:13:44.760 --> 0:13:48.720 I'm an idiot, But when you reach full retirement age 0:13:48.800 --> 0:13:50.600 in your mid sixties and then you can start taking 0:13:50.679 --> 0:13:54.840 social Security funds. That that's why people really have started 0:13:54.880 --> 0:13:59.120 to equate that date that time in their lives with 0:13:59.240 --> 0:14:02.280 not working any or like they go together hand in hand. Right. Well, 0:14:02.480 --> 0:14:04.720 it's also when you have access to your own retirement 0:14:04.720 --> 0:14:08.160 accounts penalty free. But that rule overlooks the fact that 0:14:08.160 --> 0:14:10.679 we all have different goals. You know, Warren Buffett Man, 0:14:10.760 --> 0:14:12.400 he's still working at the age of ninety one. He 0:14:12.480 --> 0:14:14.520 did not take that retirement date up on its promise. 0:14:14.520 --> 0:14:19.520 He's like required minimum distributions. I laugh in the face 0:14:19.560 --> 0:14:21.960 of those. But he's working because he gets a kick 0:14:22.000 --> 0:14:24.080 out of it, like he enjoys it. It's it's obviously 0:14:24.120 --> 0:14:27.720 not because he needs more money, right, um, And so yeah, 0:14:27.920 --> 0:14:30.080 there's there's no need to stop working. If you love 0:14:30.120 --> 0:14:32.040 what you do, you can keep working as long as 0:14:32.040 --> 0:14:34.680 you want. Others find that retiring a whole lot sooner 0:14:34.760 --> 0:14:36.920 works best for them, right, Some of our friends in 0:14:37.040 --> 0:14:39.920 the Fire movement, they have found that not working past 0:14:40.040 --> 0:14:42.440 the age of thirty five or forty has been great 0:14:42.440 --> 0:14:44.200 for them, and they've gotten to pursue other things that 0:14:44.200 --> 0:14:46.200 they love just as much, and they haven't had to 0:14:46.240 --> 0:14:49.840 worry about providing an income for themselves, you know, for 0:14:50.240 --> 0:14:53.320 decades where most people do have to work. We would say, 0:14:53.360 --> 0:14:57.040 just don't let that arbitrary date define like when you 0:14:57.120 --> 0:14:59.920 decided to take extended breaks from work, or ultimately when 0:15:00.080 --> 0:15:02.800 you decide to hang it up, Like, there's no magical 0:15:02.920 --> 0:15:05.280 rule that says that at fifty nine and a half 0:15:05.440 --> 0:15:08.200 or at sixty six, like either of those dates. They 0:15:08.240 --> 0:15:11.600 are magical from the fact that you can take money 0:15:11.680 --> 0:15:14.000 from your retirement accounts or that you have reached full 0:15:14.120 --> 0:15:16.560 Social Security age, but they're not magical from the standpoint 0:15:16.640 --> 0:15:18.760 that it's a rule that you have to follow and 0:15:18.840 --> 0:15:21.520 you should really stop working at that point, right. I mean, basically, 0:15:21.560 --> 0:15:23.520 we want folks just to be intentional with what it 0:15:23.600 --> 0:15:26.120 is that they're doing. It's a good number to be 0:15:26.160 --> 0:15:28.880 aware of because yeah, there are laws that govern the 0:15:29.000 --> 0:15:31.920 with you know, the withdrawal of funds from your retirement accounts, 0:15:31.920 --> 0:15:34.760 but that doesn't mean that you personally aren't necessarily ready 0:15:34.880 --> 0:15:36.600 for retirement. There are a lot of other things that 0:15:36.640 --> 0:15:39.160 you also want to keep in mind, and so Joel. 0:15:39.160 --> 0:15:40.560 There are also a lot of rules in the area 0:15:40.600 --> 0:15:43.400 of debt paying off debt. I feel like it's fraught 0:15:43.400 --> 0:15:45.400 with the different things that you're supposed to do, things 0:15:45.440 --> 0:15:47.320 you that you should do, things you shouldn't do, rules 0:15:47.320 --> 0:15:50.960 to obey. Yeah, some of those rules are helpful, others aren't. Uh, 0:15:50.960 --> 0:15:53.000 And one of these things. Just generally speaking, in regards 0:15:53.040 --> 0:15:55.400 to debt, there's just a whole group of folks out 0:15:55.400 --> 0:15:57.520 there who feel that, you know, being debt free, like 0:15:57.560 --> 0:15:59.560 that's the way to be, or they kind of take 0:15:59.560 --> 0:16:01.760 the mantra that like debt is dumb and that's the rule, 0:16:01.880 --> 0:16:03.600 like don't take on debt or you're an idiot no 0:16:03.640 --> 0:16:07.240 matter what. And you know, we would ask the question like, 0:16:07.360 --> 0:16:09.560 is that actually a good goal to have? You know, 0:16:09.640 --> 0:16:11.520 is this a decent rule to live by? We do 0:16:11.560 --> 0:16:14.440 feel that there are um what we would call worse 0:16:14.720 --> 0:16:17.800 rules out there for sure, because we're not fans of debt. 0:16:18.360 --> 0:16:20.280 We'd love to see how the money listeners paying off 0:16:20.320 --> 0:16:23.560 their debts quickly. Lots of folks, for instance, prize having 0:16:23.600 --> 0:16:26.360 that paid off mortgage. Uh. There's nothing inherently wrong with 0:16:26.400 --> 0:16:29.640 not having any debt, but we believe that the responsible 0:16:29.760 --> 0:16:32.320 use of debt in your life can be an approach 0:16:32.520 --> 0:16:34.720 that makes a ton of sense for a lot of folks. 0:16:34.920 --> 0:16:36.240 If you have your eyes open and you know what 0:16:36.280 --> 0:16:38.560 you're doing. Often times it comes down to what you 0:16:38.680 --> 0:16:41.120 are planning to do with that money instead of paying 0:16:41.160 --> 0:16:43.680 it down, you know, towards that mortgage payment. Uh, and 0:16:43.720 --> 0:16:45.320 so we just wanted to mention that there are times 0:16:45.320 --> 0:16:47.320 when you know, debt makes sense, and we talked about 0:16:47.320 --> 0:16:50.600 that back in episode one, and again it comes down 0:16:50.640 --> 0:16:53.400 to being intentional with that money, right, Because if you 0:16:53.400 --> 0:16:54.800 want to say I want to get rid of all 0:16:54.800 --> 0:16:57.800 of debt in my life because I am really going 0:16:57.840 --> 0:17:00.840 to benefit from the psychological piece that's gonna be able 0:17:00.840 --> 0:17:03.200 to bring me, well, that's great. Do it for that reason. 0:17:03.640 --> 0:17:04.960 Or if you're like, well I don't really care if 0:17:05.000 --> 0:17:06.760 I have debt, well, what can I do instead with 0:17:06.760 --> 0:17:08.679 that money? Well, if you're gonna take that money and 0:17:08.680 --> 0:17:11.120 then invest it, well, then you're utilizing leverage in order 0:17:11.160 --> 0:17:14.680 to see a higher return on your investment versus that 0:17:14.840 --> 0:17:17.840 money that's going towards that mortgage, which can burn you 0:17:17.880 --> 0:17:20.080 depending on what sort of leverage you're taking on. You know, 0:17:20.200 --> 0:17:22.560 totally you don't want to over leverage. Yeah, and that's 0:17:22.600 --> 0:17:24.960 the reason why Matt, like, if we're talking about credit cards, 0:17:24.960 --> 0:17:26.480 that's one thing, but if we're talking about mortgage that 0:17:26.520 --> 0:17:29.520 that's another. Right. And so like paying off your mortgage, 0:17:29.840 --> 0:17:32.159 there's a reason why it's number seven. It's on the 0:17:32.200 --> 0:17:34.159 seventh money year out of seven money years. Like there 0:17:34.200 --> 0:17:35.879 are all these other things you want to do before 0:17:35.920 --> 0:17:40.399 that that really takes like last precedence doing a really 0:17:40.400 --> 0:17:43.399