1 00:00:00,120 --> 00:00:02,880 Speaker 1: Welcome to how to Money. I'm Joel and I'm Matt 2 00:00:03,040 --> 00:00:06,680 Speaker 1: and today or discussing frontloading the sacrifice with money pro 3 00:00:07,080 --> 00:00:27,920 Speaker 1: doc G. Yeah, joe us right, we've got doc G on. 4 00:00:28,120 --> 00:00:31,520 Speaker 1: He is involved in the financial independence community. He's a 5 00:00:31,600 --> 00:00:33,480 Speaker 1: co host of a podcast as well, so I'm looking 6 00:00:33,479 --> 00:00:36,680 Speaker 1: forward to hearing what he has to say about five. Yeah, 7 00:00:36,720 --> 00:00:39,280 Speaker 1: it's independence. And if people are wondering why he's called 8 00:00:39,320 --> 00:00:40,760 Speaker 1: doc G, well, there are a lot of people that 9 00:00:40,960 --> 00:00:43,919 Speaker 1: blog and do podcasts in that community that have day 10 00:00:44,000 --> 00:00:46,199 Speaker 1: jobs and they don't really want to let everyone know 11 00:00:46,280 --> 00:00:48,600 Speaker 1: that they're a part of the fire community, which is 12 00:00:48,680 --> 00:00:52,080 Speaker 1: financial independent, retire early, and so dc G it goes 13 00:00:52,159 --> 00:00:54,959 Speaker 1: kind of under that anonymous name so that his employer 14 00:00:55,080 --> 00:00:57,600 Speaker 1: doesn't find out that's who he is. Yeah. You know, 15 00:00:57,640 --> 00:00:59,320 Speaker 1: the first time I realized that, when I came across 16 00:00:59,320 --> 00:01:00,840 Speaker 1: a bunch of those folks, I thought it was the 17 00:01:00,880 --> 00:01:03,480 Speaker 1: weirdest thing ever, because there's they post pictures of themselves 18 00:01:03,480 --> 00:01:05,160 Speaker 1: and put like a sticker over their face that sort 19 00:01:05,200 --> 00:01:07,120 Speaker 1: of thing as well, like no social media at all. 20 00:01:07,600 --> 00:01:09,399 Speaker 1: But uh, you know, it does make sense. You don't 21 00:01:09,400 --> 00:01:11,360 Speaker 1: want to jeopardize your job, and when it comes to 22 00:01:11,440 --> 00:01:13,720 Speaker 1: how much money you have, you don't necessarily want all 23 00:01:13,760 --> 00:01:15,639 Speaker 1: that information out there because a lot of those folks 24 00:01:16,200 --> 00:01:17,759 Speaker 1: lay it all out there like they lay a bear, 25 00:01:17,880 --> 00:01:19,959 Speaker 1: and you can look at their budgets, how much they're spending, 26 00:01:19,959 --> 00:01:22,240 Speaker 1: how much they're earning, and there's a lot of privacy 27 00:01:22,280 --> 00:01:24,240 Speaker 1: that you're giving up when you're doing that. So I 28 00:01:24,240 --> 00:01:26,560 Speaker 1: can get behind that now, but initially it totally through me. 29 00:01:26,720 --> 00:01:28,880 Speaker 1: But uh, what you got for us today? Yes, So 30 00:01:28,920 --> 00:01:30,760 Speaker 1: I'm excited about this episode. I feel like there's a 31 00:01:30,800 --> 00:01:33,080 Speaker 1: lot of takeaway for folks as they kind of start 32 00:01:33,120 --> 00:01:35,240 Speaker 1: to think about saving and investing. But before we get 33 00:01:35,240 --> 00:01:37,639 Speaker 1: to that, Matt, I wanted to mention two different frugal 34 00:01:37,760 --> 00:01:40,600 Speaker 1: versus cheaps. Yeah, let's get back to that, Fermitt. We 35 00:01:40,640 --> 00:01:42,440 Speaker 1: haven't done a frugal versus cheap. I saw that note 36 00:01:42,440 --> 00:01:43,959 Speaker 1: on there. I was hoping you'd have one. Yeah. So 37 00:01:44,160 --> 00:01:46,480 Speaker 1: MLS soccer is back and I'm super excited. I know 38 00:01:46,520 --> 00:01:49,200 Speaker 1: you are too. We root for our local team in Atlanta, 39 00:01:49,240 --> 00:01:52,640 Speaker 1: Atlanta United, and I have two frugal versus cheps. I 40 00:01:52,680 --> 00:01:55,880 Speaker 1: wanted to share. One was is it frugal or cheap? 41 00:01:56,240 --> 00:01:58,960 Speaker 1: That I a couple of years ago, right when Atlanta 42 00:01:59,040 --> 00:02:02,680 Speaker 1: United first launched. I bought a jersey from China. I 43 00:02:02,720 --> 00:02:05,640 Speaker 1: know you're gonna say that, because it was much much 44 00:02:05,720 --> 00:02:08,880 Speaker 1: cheaper than buying one from like Adidas or the Team 45 00:02:08,919 --> 00:02:11,760 Speaker 1: Store or something like that. So I ended up getting 46 00:02:11,760 --> 00:02:13,959 Speaker 1: a jersey I think like twenty bucks shipped to my door. 47 00:02:14,160 --> 00:02:17,960 Speaker 1: That is cheap, that is inexpensive, That is very affordable. 48 00:02:18,040 --> 00:02:21,359 Speaker 1: But then when I put it on, all my friends 49 00:02:21,400 --> 00:02:24,200 Speaker 1: noticed instantaneously that it wasn't the real thing because it 50 00:02:24,320 --> 00:02:27,200 Speaker 1: was this completely different shade of bread, and like the 51 00:02:27,200 --> 00:02:29,640 Speaker 1: emblem and stuff like that started to fade super quickly, 52 00:02:29,720 --> 00:02:32,800 Speaker 1: just wear completely off the jersey, and I just stopped 53 00:02:32,800 --> 00:02:35,200 Speaker 1: wearing it because honestly, it just looked ratchet. So was 54 00:02:35,200 --> 00:02:37,240 Speaker 1: that frugal or cheap? I mean from the get go, 55 00:02:37,520 --> 00:02:40,080 Speaker 1: I I noticed as well. And you can always spot 56 00:02:40,080 --> 00:02:42,000 Speaker 1: the folks who had on the Chinese jerseys because they 57 00:02:42,040 --> 00:02:45,160 Speaker 1: were a brighter red. And I remember Pat specifically, our 58 00:02:45,200 --> 00:02:47,200 Speaker 1: buddy Pat. He would he would point him out. He'd 59 00:02:47,240 --> 00:02:49,960 Speaker 1: be like Chinese jersey, Chinese jersey because he hated him. 60 00:02:50,080 --> 00:02:51,880 Speaker 1: So the fact that you had to get another one, 61 00:02:52,200 --> 00:02:53,600 Speaker 1: or you didn't have to, but you chose to get 62 00:02:53,639 --> 00:02:55,280 Speaker 1: a new one you know, I asked for one for 63 00:02:55,360 --> 00:02:58,000 Speaker 1: my birthday because they completely fell on my face when 64 00:02:58,000 --> 00:03:00,360 Speaker 1: they came to buying that one. So i'll that's a 65 00:03:00,360 --> 00:03:02,760 Speaker 1: frugal fail. That was that was me cheap and out 66 00:03:02,840 --> 00:03:04,680 Speaker 1: being cheap, and I lost out on that one. So 67 00:03:05,360 --> 00:03:07,240 Speaker 1: I tried to go for the knockoff. It didn't work. 68 00:03:07,560 --> 00:03:08,920 Speaker 1: It ended up just kind of sitting in the back 69 00:03:08,919 --> 00:03:11,440 Speaker 1: of my dor because I felt too ashamed to wear it. Man, 70 00:03:11,480 --> 00:03:12,799 Speaker 1: I gotta be honest. You can wear it cutting the 71 00:03:12,800 --> 00:03:15,799 Speaker 1: grass or something though, Right, that's a good point. Yeah, 72 00:03:15,919 --> 00:03:18,400 Speaker 1: all right, I got one more for you, So frugal 73 00:03:18,440 --> 00:03:21,880 Speaker 1: or cheap I doubleheader. I took my my oldest daughter 74 00:03:21,919 --> 00:03:24,280 Speaker 1: to a game the other night and it was super fun. 75 00:03:24,320 --> 00:03:26,079 Speaker 1: It was we just had the best time, just her 76 00:03:26,120 --> 00:03:28,480 Speaker 1: and I hitting up a soccer game. And if it's 77 00:03:28,480 --> 00:03:30,160 Speaker 1: a late night game and you park at one of 78 00:03:30,160 --> 00:03:32,120 Speaker 1: the meters that's like a third of a mile away, 79 00:03:32,360 --> 00:03:34,080 Speaker 1: you don't have to pay to park, and so it's 80 00:03:34,080 --> 00:03:36,280 Speaker 1: pretty sweet because when you get close into the stadium, 81 00:03:36,520 --> 00:03:38,960 Speaker 1: people are, you know, lots of times we're riding bikes 82 00:03:38,960 --> 00:03:40,760 Speaker 1: and I probably should have ridden bikes that night, but 83 00:03:40,760 --> 00:03:43,160 Speaker 1: I didn't, and we drove and so I parked at 84 00:03:43,200 --> 00:03:44,800 Speaker 1: one of the meters and and didn't pay. But but 85 00:03:44,840 --> 00:03:46,600 Speaker 1: then we had like this really long walk ahead of 86 00:03:46,680 --> 00:03:48,839 Speaker 1: us to the stadium. So is that frugal or cheap 87 00:03:48,920 --> 00:03:52,040 Speaker 1: that I'm that I'm parking further away at getting free parking, 88 00:03:52,280 --> 00:03:54,680 Speaker 1: but taking that long walk to the stadium. I think, Okay, Well, 89 00:03:54,720 --> 00:03:57,560 Speaker 1: first of all, I think you should have ridden your bikes. Yeah, yeah, 90 00:03:57,560 --> 00:04:00,600 Speaker 1: that's what I would have That's what i'd say. First. Uh, yeah, 91 00:04:00,640 --> 00:04:02,600 Speaker 1: I think that's fairly frugal. I think you know, what 92 00:04:02,640 --> 00:04:04,920 Speaker 1: you're teaching your daughter is that just because you can 93 00:04:04,960 --> 00:04:07,120 Speaker 1: part closer, like we're not necessarily going to do that, 94 00:04:07,320 --> 00:04:09,360 Speaker 1: And as long as you're not walking through maybe a 95 00:04:09,400 --> 00:04:12,640 Speaker 1: sketchy part of town or you know, like a dodgy area. Personally, 96 00:04:12,680 --> 00:04:15,160 Speaker 1: I would do that. I think that's totally frugal. And 97 00:04:15,320 --> 00:04:17,599 Speaker 1: there might be sometimes when you might want to splurge 98 00:04:17,640 --> 00:04:20,279 Speaker 1: and maybe pay for parking, But with a bike, you 99 00:04:20,320 --> 00:04:22,559 Speaker 1: get to pull up and you get free bike valley parking. 100 00:04:22,640 --> 00:04:24,640 Speaker 1: So that's the best. Man, you're right across from the stadium, 101 00:04:24,680 --> 00:04:26,640 Speaker 1: That is the best. And I try to do that 102 00:04:26,680 --> 00:04:28,640 Speaker 1: as often as possible. That is a blast and here's 103 00:04:28,640 --> 00:04:30,240 Speaker 1: the Here's the other thing though, when you park further 104 00:04:30,279 --> 00:04:33,240 Speaker 1: way that I actually like. So when you park really 105 00:04:33,240 --> 00:04:36,080 Speaker 1: close and you're trying to leave the stadium, you're in 106 00:04:36,120 --> 00:04:38,760 Speaker 1: this nasty traffic jam because everyone close ends trying to 107 00:04:38,800 --> 00:04:40,359 Speaker 1: go in the same direction at the same time and 108 00:04:40,400 --> 00:04:42,360 Speaker 1: get out of these parking lots. There's one way out, 109 00:04:42,600 --> 00:04:44,840 Speaker 1: and so those parking lots are jam packed and it's 110 00:04:44,880 --> 00:04:47,840 Speaker 1: tough to get out and takes forever. So parking further away, 111 00:04:47,960 --> 00:04:50,960 Speaker 1: I'm walking faster than the traffics going, so I actually 112 00:04:50,960 --> 00:04:53,320 Speaker 1: break free. Yeah, so I actually think like, not only 113 00:04:53,360 --> 00:04:55,920 Speaker 1: am I saving money getting a nice little fun walk 114 00:04:55,960 --> 00:04:57,960 Speaker 1: in with my daughter, but then at the same time, 115 00:04:58,240 --> 00:05:00,520 Speaker 1: I'm out of there much quicker because I'm not like 116 00:05:00,520 --> 00:05:02,680 Speaker 1: sitting in that parking lot traffic. Plus they're small enough 117 00:05:02,680 --> 00:05:04,280 Speaker 1: now where we can throw them up on our shoulders 118 00:05:04,320 --> 00:05:06,120 Speaker 1: and we can kind of pick up the pace a 119 00:05:06,120 --> 00:05:08,039 Speaker 1: little bit if we need to. So yeah, no doubt. 120 00:05:08,120 --> 00:05:09,760 Speaker 1: All right, Joel, let's talk about the beer that we're 121 00:05:09,760 --> 00:05:12,159 Speaker 1: gonna have on this episode. We have a bunch of 122 00:05:12,160 --> 00:05:15,440 Speaker 1: beers from Spindle Tap Brewery. The brewery reached out to 123 00:05:15,520 --> 00:05:18,120 Speaker 1: us directly, and yeah, it's been a minute since we've 124 00:05:18,120 --> 00:05:20,080 Speaker 1: had an actual brewery sent us some beer, So I'm 125 00:05:20,080 --> 00:05:23,000 Speaker 1: excited to have a few of theirs on the show. Yeah. 126 00:05:23,040 --> 00:05:26,080 Speaker 1: This man, Leo, who works for Spindle Tap. He listens 127 00:05:26,120 --> 00:05:28,600 Speaker 1: to the show and just super cool. He reached out 128 00:05:28,680 --> 00:05:30,640 Speaker 1: via Twitter and said, man, I love the show. I 129 00:05:30,680 --> 00:05:33,000 Speaker 1: worked for spindele Tap and offered to send us not 130 00:05:33,040 --> 00:05:35,000 Speaker 1: only beer, maybe sent us some really cool T shirts too, 131 00:05:35,000 --> 00:05:40,520 Speaker 1: So yeah, some mad props. Yeah me too, I'm loving mind. Yeah, 132 00:05:40,920 --> 00:05:43,559 Speaker 1: so that's super kind. And and Spindle Tap, I gotta 133 00:05:43,560 --> 00:05:46,160 Speaker 1: say I went to their website after Leo reached out, 134 00:05:46,400 --> 00:05:48,880 Speaker 1: and I just scrolled through their list of beers and 135 00:05:49,040 --> 00:05:51,000 Speaker 1: they make just I p A after I p A 136 00:05:51,000 --> 00:05:52,920 Speaker 1: after I p A, and they all like my mouth 137 00:05:53,080 --> 00:05:55,320 Speaker 1: was watering. They just all sound delicious. So I'm really 138 00:05:55,320 --> 00:05:57,400 Speaker 1: excited to try this one tonight. Yeah, so this is 139 00:05:57,440 --> 00:06:00,599 Speaker 1: aggressive additions. I p A, Joel, You're going for it already, 140 00:06:01,120 --> 00:06:04,679 Speaker 1: initial thoughts quickly, I'll say, this one's right up my alley, 141 00:06:04,680 --> 00:06:07,440 Speaker 1: and Spindle Tap just through like two SIPs, worked its 142 00:06:07,480 --> 00:06:09,960 Speaker 1: way directly into my heart. So I'm looking forward to, 143 00:06:10,000 --> 00:06:11,599 Speaker 1: you know, sharing more of our thoughts about this beer 144 00:06:11,720 --> 00:06:14,640 Speaker 1: at the end. Of the episode. Oh my, this one 145 00:06:14,800 --> 00:06:16,640 Speaker 1: is good man. I'm looking forward to not only talking 146 00:06:16,640 --> 00:06:19,719 Speaker 1: about it, but drinking it on this episode. All right, Matt, 147 00:06:19,760 --> 00:06:22,880 Speaker 1: onto the topic at hand. We're talking about frontloading the sacrifice. 148 00:06:23,040 --> 00:06:25,159 Speaker 1: And like I said, we brought money pro doct g 149 00:06:25,400 --> 00:06:28,000 Speaker 1: on to kind of give us five minutes of distilled wisdom. 150 00:06:28,080 --> 00:06:29,880 Speaker 1: This is a topic that is near and dear to 151 00:06:29,960 --> 00:06:32,239 Speaker 1: his heart, and it is so important to him because 152 00:06:32,279 --> 00:06:35,520 Speaker 1: he realizes that most people don't understand that just a 153 00:06:35,520 --> 00:06:39,040 Speaker 1: little more effort upfront can mean a much smoother ride 154 00:06:39,040 --> 00:06:41,360 Speaker 1: in the future. We're gonna talk about saving and investing, 155 00:06:41,400 --> 00:06:45,120 Speaker 1: but just other ways of frontloading your sacrifice can have compounding, 156 00:06:45,160 --> 00:06:48,440 Speaker 1: massive effects for you on the back end. It's such 157 00:06:48,480 --> 00:06:51,599 Speaker 1: an important topic to essentially help people understand that today 158 00:06:51,720 --> 00:06:53,520 Speaker 1: is the day you need to get started, not next week, 159 00:06:53,560 --> 00:06:56,200 Speaker 1: not next month, but like today, because once you start 160 00:06:56,240 --> 00:06:58,440 Speaker 1: moving in a direction, the dominoes just kind of begin 161 00:06:58,480 --> 00:07:00,040 Speaker 1: to fall for you and and it all gets a 162 00:07:00,040 --> 00:07:01,960 Speaker 1: little bit easier over time. So and I think doct 163 00:07:01,960 --> 00:07:04,320 Speaker 1: does a really good job in this five minute segment 164 00:07:04,360 --> 00:07:06,880 Speaker 1: of presenting that well edual. And something worth mentioning as 165 00:07:06,920 --> 00:07:09,520 Speaker 1: well is that doc G's advice. It comes from the 166 00:07:09,560 --> 00:07:13,440 Speaker 1: standpoint of someone who is financially independent. He himself is 167 00:07:13,440 --> 00:07:16,120 Speaker 1: financially independent. He's partially retired, which I love, and we 168 00:07:16,160 --> 00:07:18,400 Speaker 1: can talk more about that later. How he's sort of 169 00:07:18,880 --> 00:07:22,040 Speaker 1: testing out the waters of retirement. But financial independence, we've 170 00:07:22,040 --> 00:07:24,960 Speaker 1: talked about this before, but quickly, it's essentially when you 171 00:07:25,000 --> 00:07:27,120 Speaker 1: have enough assets or money invest in that you no 172 00:07:27,200 --> 00:07:30,080 Speaker 1: longer have to work to earn money because your money 173 00:07:30,160 --> 00:07:33,640 Speaker 1: itself is earning that money. And also, there's just different 174 00:07:33,640 --> 00:07:36,800 Speaker 1: degrees of financial independence as far as folks that are 175 00:07:36,840 --> 00:07:39,840 Speaker 1: willing to give up different amounts of things, different sacrifice 176 00:07:39,840 --> 00:07:42,240 Speaker 1: that they're willing to make in order to achieve that 177 00:07:42,280 --> 00:07:44,800 Speaker 1: sooner versus later. But for all of them, like that's 178 00:07:44,840 --> 00:07:47,320 Speaker 1: their goal. Their goal is to basically break free of 179 00:07:47,360 --> 00:07:50,040 Speaker 1: the chains of having to to work in order to 180 00:07:50,080 --> 00:07:52,960 Speaker 1: pay their their monthly bills. And so it's worth mentioning 181 00:07:53,000 --> 00:07:55,120 Speaker 1: that because I think to a lot of folks his 182 00:07:55,360 --> 00:07:58,440 Speaker 1: approach might sound a bit extreme, but at the same time, 183 00:07:58,480 --> 00:08:02,040 Speaker 1: the advice that he is giving is widely applicable regardless 184 00:08:02,040 --> 00:08:04,400 Speaker 1: of how soon you actually want to retire. All right, Matt, 185 00:08:04,400 --> 00:08:07,240 Speaker 1: So without further ado, let's get into doc gees Money 186 00:08:07,280 --> 00:08:09,920 Speaker 1: Pro segment. Just a quick reminder. Every time we bring 187 00:08:09,960 --> 00:08:12,920 Speaker 1: a money pro on the show, they send us five 188 00:08:13,000 --> 00:08:15,840 Speaker 1: minutes of distilled wisdom about this particular topic. So so 189 00:08:15,920 --> 00:08:19,040 Speaker 1: here are doctees finest thoughts on the topic of the day, 190 00:08:19,280 --> 00:08:23,280 Speaker 1: Frontloading the Sacrifice. Hey guys, thanks for inviting me on 191 00:08:23,360 --> 00:08:26,960 Speaker 1: to speak about one of my favorite topics, frontloading the sacrifice. 192 00:08:27,600 --> 00:08:32,240 Speaker 1: Getting to financial independence requires hard work, planning, and missed opportunities. 193 00:08:32,600 --> 00:08:35,080 Speaker 1: This is part of the process. While some have found 194 00:08:35,120 --> 00:08:37,280 Speaker 1: a way to climb the mountain while also enjoying the 195 00:08:37,320 --> 00:08:40,040 Speaker 1: beauty of the local terrain, the great majority of us 196 00:08:40,120 --> 00:08:42,400 Speaker 1: have an end in mind. We tend to track that 197 00:08:42,520 --> 00:08:45,600 Speaker 1: end with laser like focus. Whether it be early retirement 198 00:08:45,720 --> 00:08:48,000 Speaker 1: or a particular net worth. We're willing to put in 199 00:08:48,040 --> 00:08:51,199 Speaker 1: the extra hours, lose sleep, or work weekends to make 200 00:08:51,240 --> 00:08:53,920 Speaker 1: it happen down the road. We all, in one way 201 00:08:54,000 --> 00:08:58,000 Speaker 1: or another, past the marshmallow test. Thus, especially if you're 202 00:08:58,000 --> 00:08:59,880 Speaker 1: a young person, I have one key piece of it 203 00:09:00,040 --> 00:09:05,080 Speaker 1: ice front load the sacrifice. The concept. It's straightforward. The 204 00:09:05,160 --> 00:09:07,240 Speaker 1: harder you work as a young person, the less you 205 00:09:07,280 --> 00:09:09,520 Speaker 1: will have to as you get older. Want to retire 206 00:09:09,520 --> 00:09:12,319 Speaker 1: at forty, how about thirty five. There's no way to 207 00:09:12,360 --> 00:09:15,560 Speaker 1: achieve such mighty aspirations unless you pay your dues, so 208 00:09:15,640 --> 00:09:19,120 Speaker 1: do yourself a favor. Pay those dues early. The worst 209 00:09:19,120 --> 00:09:22,160 Speaker 1: mistake you can make is a failure to launch. Think 210 00:09:22,200 --> 00:09:25,040 Speaker 1: about it. What requires the most energy during a typical 211 00:09:25,080 --> 00:09:28,440 Speaker 1: trans atlantic flight. You'd be correct if you guess take off. 212 00:09:28,880 --> 00:09:30,520 Speaker 1: Once the plane is up in the air and on 213 00:09:30,600 --> 00:09:34,320 Speaker 1: its trajectory, fuel needs decreased drastically. If you can just 214 00:09:34,440 --> 00:09:37,319 Speaker 1: make it past the original hump, you can expect smooth 215 00:09:37,400 --> 00:09:40,960 Speaker 1: flying for the duration. Your financial timeline is no different. 216 00:09:41,320 --> 00:09:43,760 Speaker 1: The fuel you create and burn early in your journey 217 00:09:43,760 --> 00:09:47,000 Speaker 1: will often propel you even faster the rest of the way. 218 00:09:47,040 --> 00:09:50,520 Speaker 1: This is particularly important in your early twenties. Leaving college, 219 00:09:50,520 --> 00:09:52,960 Speaker 1: you may face a mountain of debt. Whether you demolish 220 00:09:53,000 --> 00:09:55,120 Speaker 1: that mountain or build it up even higher will have 221 00:09:55,200 --> 00:09:58,960 Speaker 1: profound consequences on your financial well being, although they may 222 00:09:59,000 --> 00:10:01,720 Speaker 1: seem self evident. Let's look at a few reasons. Front 223 00:10:01,760 --> 00:10:04,600 Speaker 1: loading the sacrifice is so important. You all know about 224 00:10:04,600 --> 00:10:08,400 Speaker 1: the magic of compounding, if not, for God's sake, google it. 225 00:10:08,880 --> 00:10:11,360 Speaker 1: The idea is simple. Start with a little money in 226 00:10:11,480 --> 00:10:14,480 Speaker 1: vast watch the trick over turns turn into an avalanche, 227 00:10:14,600 --> 00:10:17,640 Speaker 1: and then retire. It goes without saying that earlier you 228 00:10:17,679 --> 00:10:20,720 Speaker 1: start compounding, the faster your net worth will grow. As 229 00:10:20,720 --> 00:10:24,040 Speaker 1: a resident physician, I moonlighted at my local hospital. The 230 00:10:24,080 --> 00:10:26,719 Speaker 1: extra profits originally went into a down payment on a 231 00:10:26,800 --> 00:10:29,720 Speaker 1: house and then later into investments. Can you imagine what 232 00:10:29,800 --> 00:10:32,320 Speaker 1: that ten thousand dollars I made in residency is worth? 233 00:10:32,840 --> 00:10:36,320 Speaker 1: If not, find yourself a compound calculator. It's not just 234 00:10:36,440 --> 00:10:40,079 Speaker 1: the compounding gains, but also the compounding losses. That's right. 235 00:10:40,280 --> 00:10:43,400 Speaker 1: Credit costs money, So if you have a huge educational 236 00:10:43,520 --> 00:10:46,280 Speaker 1: or car loans, you're sapping your jet fuel. Every month 237 00:10:46,559 --> 00:10:49,560 Speaker 1: you're paying interest. That interest will erode your wealth and 238 00:10:49,640 --> 00:10:52,800 Speaker 1: happy your path to financial freedom. My wife, for example, 239 00:10:52,840 --> 00:10:56,040 Speaker 1: had fifteen thousand dollars of educational debt when she finished college. 240 00:10:56,320 --> 00:10:58,400 Speaker 1: We both put in extra hours at work in those 241 00:10:58,400 --> 00:11:01,160 Speaker 1: early years to pay it off fairly quickly. By becoming 242 00:11:01,200 --> 00:11:03,960 Speaker 1: a free of debt, we are able to maximize retirement 243 00:11:04,000 --> 00:11:07,559 Speaker 1: savings and start a taxable brokerage account before becoming parents. 244 00:11:08,040 --> 00:11:11,760 Speaker 1: It's also easy to forget that experience compounds. These skills 245 00:11:11,760 --> 00:11:14,360 Speaker 1: you learn and the education you receive when you are young, 246 00:11:14,400 --> 00:11:17,760 Speaker 1: can serve as you mature in your professional career. You 247 00:11:17,800 --> 00:11:20,480 Speaker 1: know what other advantage that most have upon leaving college 248 00:11:20,960 --> 00:11:24,560 Speaker 1: no children. You don't have children, or possibly a mortgage 249 00:11:24,640 --> 00:11:27,560 Speaker 1: or other responsibilities that weigh you down. You are free 250 00:11:27,559 --> 00:11:31,240 Speaker 1: to aggressively pursue a career, business opportunity, or side hustle. 251 00:11:31,559 --> 00:11:34,559 Speaker 1: As you get older, have children, and settle into suburbia, 252 00:11:34,679 --> 00:11:38,600 Speaker 1: your time becomes parse between unyielding mistresses screaming for your attention. 253 00:11:39,120 --> 00:11:41,280 Speaker 1: The young also have an abundance of something else that 254 00:11:41,320 --> 00:11:45,280 Speaker 1: we old timers are sadly lacking energy. As a young physician, 255 00:11:45,280 --> 00:11:47,320 Speaker 1: I could work thirty six hours in a row without 256 00:11:47,360 --> 00:11:50,040 Speaker 1: getting a wink of sleep. Now it takes me weeks 257 00:11:50,040 --> 00:11:53,760 Speaker 1: to recover from such activities. In summary, the money you 258 00:11:53,840 --> 00:11:55,760 Speaker 1: make as a young person will be the jet fuel 259 00:11:55,760 --> 00:11:58,439 Speaker 1: for your transatlantic flight. It will propel you through the 260 00:11:58,480 --> 00:12:01,800 Speaker 1: stratosphere and prepare the way for coasting at a comfortable altitude. 261 00:12:02,160 --> 00:12:05,240 Speaker 1: The young have large reserves of energy, a few responsibilities, 262 00:12:05,240 --> 00:12:07,600 Speaker 1: and the ever important time horizon to take advantage of 263 00:12:07,600 --> 00:12:11,199 Speaker 1: the magic of compounding front load to sacrifice. You won't 264 00:12:11,240 --> 00:12:14,640 Speaker 1: regret it. And one last note, don't fall victim to 265 00:12:14,720 --> 00:12:18,160 Speaker 1: the you only live one syndrome. Yolo is a no no. 266 00:12:18,720 --> 00:12:21,280 Speaker 1: Yolo is a no no, because you don't only live once. 267 00:12:21,480 --> 00:12:23,680 Speaker 1: I would argue that in the typical eighties some years 268 00:12:23,679 --> 00:12:26,960 Speaker 1: of existence, people experience many new beginnings. There are new 269 00:12:27,080 --> 00:12:31,320 Speaker 1: days and new decades, new careers and new relationships. Change 270 00:12:31,320 --> 00:12:34,120 Speaker 1: is so constant that we are continuously beginning or ending 271 00:12:34,200 --> 00:12:37,440 Speaker 1: a new stage of life. When you make economic decisions 272 00:12:37,480 --> 00:12:39,560 Speaker 1: based on the idea that once the moment is past, 273 00:12:39,640 --> 00:12:42,040 Speaker 1: it will never come back again, you spend based on 274 00:12:42,160 --> 00:12:46,600 Speaker 1: fear and short lived hedonism in actuality, especially when you're young, 275 00:12:46,880 --> 00:12:49,320 Speaker 1: every new stage in life will feel like a fresh start. 276 00:12:49,640 --> 00:12:54,000 Speaker 1: Although wisdom accruise, new beginnings abound. You know what happens 277 00:12:54,000 --> 00:12:55,840 Speaker 1: when people spend like you only live once when they 278 00:12:55,880 --> 00:12:58,160 Speaker 1: are young, they end up facing the multitude of new 279 00:12:58,200 --> 00:13:01,520 Speaker 1: life stages, poor and unprepared to fully enjoy what life 280 00:13:01,520 --> 00:13:03,800 Speaker 1: has to offer down the road. Think of all the 281 00:13:03,880 --> 00:13:05,960 Speaker 1: joy as a new parent or a newly retired person 282 00:13:06,000 --> 00:13:08,760 Speaker 1: can experience when they have enough economic fuel to propel 283 00:13:08,840 --> 00:13:12,840 Speaker 1: them in their journey. Don't erase the wondrous effect of compounding. 284 00:13:13,559 --> 00:13:16,320 Speaker 1: There you have it frontload to sacrifice and you don't 285 00:13:16,360 --> 00:13:20,160 Speaker 1: only live once words to live by. It almost sounds 286 00:13:20,160 --> 00:13:22,320 Speaker 1: like reincarnation a little bit mad, right? Is that? Is 287 00:13:22,320 --> 00:13:24,520 Speaker 1: that what doctors going for? Yeah, that was awesome stuff 288 00:13:24,520 --> 00:13:26,640 Speaker 1: from Doc g and I'm looking forward to unpacking that 289 00:13:26,679 --> 00:13:38,839 Speaker 1: with you man right after this break. Alright, Matt, we're 290 00:13:38,840 --> 00:13:40,880 Speaker 1: back and Yeah, that was some really good stuff from 291 00:13:41,000 --> 00:13:43,240 Speaker 1: from Doc. And really a lot of what Doc is 292 00:13:43,240 --> 00:13:45,680 Speaker 1: saying is that if you want to achieve what's called 293 00:13:45,679 --> 00:13:48,000 Speaker 1: financial independence that you kind of defined a little bit 294 00:13:48,000 --> 00:13:50,240 Speaker 1: earlier and we talked about in a much earlier episode. 295 00:13:50,280 --> 00:13:53,240 Speaker 1: Is financial independence a good goal to have? Well, it's 296 00:13:53,240 --> 00:13:55,840 Speaker 1: going to require a lot of hard work planning and 297 00:13:56,040 --> 00:13:59,800 Speaker 1: missing out on some opportunities that you're probably interested in. Yeah, 298 00:14:00,120 --> 00:14:02,280 Speaker 1: you know, honestly, for me, missing out on those opportunities, 299 00:14:02,360 --> 00:14:06,040 Speaker 1: whether they be experiences like events or even sometimes like stuff, 300 00:14:06,240 --> 00:14:09,160 Speaker 1: that to me is the hardest because I can work hard, 301 00:14:09,200 --> 00:14:10,959 Speaker 1: and I think a lot of folks feel that they're 302 00:14:11,000 --> 00:14:13,320 Speaker 1: not afraid of hard work. You can even plan some 303 00:14:13,720 --> 00:14:17,600 Speaker 1: but behaving and not overspending after you've done that hard work. 304 00:14:17,720 --> 00:14:19,800 Speaker 1: For me, that, honestly, I find that to be the 305 00:14:19,840 --> 00:14:22,960 Speaker 1: toughest challenge when it comes to my personal finances. You 306 00:14:23,000 --> 00:14:25,960 Speaker 1: work hard and and you feel that you've earned the 307 00:14:25,960 --> 00:14:28,040 Speaker 1: stuff that you're going to purchase. I guess a little reward. 308 00:14:28,040 --> 00:14:31,000 Speaker 1: We've talked about that recently. You hear the motto work hard, 309 00:14:31,000 --> 00:14:33,320 Speaker 1: play hard, But like that's the problem. A lot of 310 00:14:33,360 --> 00:14:35,640 Speaker 1: times that's when your finances can totally get out of 311 00:14:35,640 --> 00:14:38,480 Speaker 1: whack and you're not really getting ahead even though you're 312 00:14:38,520 --> 00:14:40,880 Speaker 1: working really hard and you're earning an incredible wage because 313 00:14:40,920 --> 00:14:42,880 Speaker 1: you're spending all of your money. Yeah, you have that 314 00:14:42,960 --> 00:14:46,120 Speaker 1: kind of treat yourself mentality. Well, you utterly deserve the 315 00:14:46,520 --> 00:14:48,760 Speaker 1: things that you're buying. You deserve a bigger house, you 316 00:14:48,760 --> 00:14:51,360 Speaker 1: deserve a new car because you worked really hard, exactly, 317 00:14:51,400 --> 00:14:54,480 Speaker 1: and and and so I completely understand that mentality. But 318 00:14:54,560 --> 00:14:56,760 Speaker 1: that's the mentality we have to get away from. And 319 00:14:56,760 --> 00:14:58,400 Speaker 1: so you and I'm at though on this show, we 320 00:14:58,440 --> 00:15:01,200 Speaker 1: have talked about many, many times throughout all the episodes 321 00:15:01,240 --> 00:15:03,800 Speaker 1: we've created that we are into living a rich life 322 00:15:03,880 --> 00:15:06,200 Speaker 1: now on less money. And so I do need to 323 00:15:06,240 --> 00:15:09,520 Speaker 1: stress that utter deprivation is not what we're all about. 324 00:15:09,960 --> 00:15:13,800 Speaker 1: But ultimately there is a strong need to hone in 325 00:15:13,880 --> 00:15:17,560 Speaker 1: and focus on the things that actually matter. If financial 326 00:15:17,560 --> 00:15:20,000 Speaker 1: independence is something that you want to achieve. And so ultimately, 327 00:15:20,000 --> 00:15:22,960 Speaker 1: people that are able to achieve a certain amount of 328 00:15:22,960 --> 00:15:26,000 Speaker 1: financial independence in their lives or that ultimate goal of 329 00:15:26,080 --> 00:15:30,520 Speaker 1: real financial independence, they're able to stay focused along the way. 330 00:15:30,760 --> 00:15:33,280 Speaker 1: So the goal might truly be retiring early. And documenttioned 331 00:15:33,320 --> 00:15:36,000 Speaker 1: some lofty numbers of retiring like thirty five or forty 332 00:15:36,080 --> 00:15:38,120 Speaker 1: And I gotta be honest, for almost everybody listening, I 333 00:15:38,120 --> 00:15:41,160 Speaker 1: know that's a really really hard number to hear. Even that's, uh, 334 00:15:41,200 --> 00:15:44,160 Speaker 1: that seems impossible. But for but for some people listening 335 00:15:44,160 --> 00:15:45,920 Speaker 1: who are We got an email Matt the other day 336 00:15:45,960 --> 00:15:48,640 Speaker 1: from a fourteen year old and for him, that's totally 337 00:15:49,640 --> 00:15:53,080 Speaker 1: that's that is totally possible. For most people, that's gonna 338 00:15:53,120 --> 00:15:55,280 Speaker 1: be really really hard to do, and especially because we 339 00:15:55,320 --> 00:15:57,240 Speaker 1: have a lot of listeners who are in their thirties 340 00:15:57,280 --> 00:15:59,520 Speaker 1: and forties and fifties, and so for those people, that 341 00:15:59,520 --> 00:16:02,360 Speaker 1: opportunity has passed. But at the same time, there's the 342 00:16:02,440 --> 00:16:05,680 Speaker 1: ability to right now, whatever age you are, wherever you're 343 00:16:05,680 --> 00:16:08,600 Speaker 1: at in life, to start front loading the sacrifice now. 344 00:16:08,680 --> 00:16:11,160 Speaker 1: So it's not about going back and doing it over 345 00:16:11,200 --> 00:16:14,160 Speaker 1: because obviously that's impossible. What it is about is creating 346 00:16:14,160 --> 00:16:17,960 Speaker 1: a focus to change the trajectory of your future. Now, yeah, man, 347 00:16:18,040 --> 00:16:20,360 Speaker 1: keeping that that laser like focus like you mentioned is 348 00:16:20,360 --> 00:16:22,440 Speaker 1: so key. And can you mentioned the marshmallow tests? Have 349 00:16:22,480 --> 00:16:24,520 Speaker 1: you heard that? I have? Yeah, I read up on 350 00:16:24,560 --> 00:16:26,560 Speaker 1: the marshmallow test just based on what he said, So 351 00:16:26,600 --> 00:16:27,960 Speaker 1: I thought it was I thought it was fascinating. Do 352 00:16:27,960 --> 00:16:29,440 Speaker 1: you want to explain it? Yeah, it's it's kind of 353 00:16:29,440 --> 00:16:31,520 Speaker 1: a classic if you haven't heard about it. It's the 354 00:16:31,800 --> 00:16:35,640 Speaker 1: Stanford experiment on delayed gratification basically, and Stanford did the 355 00:16:35,640 --> 00:16:39,080 Speaker 1: best like psychological experiments on people prison was it the 356 00:16:39,080 --> 00:16:41,480 Speaker 1: Stanford prison experiment? They do all these sort of messed 357 00:16:41,520 --> 00:16:44,240 Speaker 1: up studies and that like that's borderline unethical and maybe 358 00:16:44,280 --> 00:16:47,640 Speaker 1: completely exactly because this one maybe borderline unethical. But they 359 00:16:47,720 --> 00:16:50,080 Speaker 1: had kids sitting in a room, uh, and they're told 360 00:16:50,120 --> 00:16:52,960 Speaker 1: that here's a marshmallow. We're gonna leave. If you don't 361 00:16:52,960 --> 00:16:55,560 Speaker 1: eat the marshmallow. When I come back, you get two marshmallows. 362 00:16:55,800 --> 00:16:58,880 Speaker 1: And so yeah, it was a test of delayed gratification. 363 00:16:59,240 --> 00:17:02,000 Speaker 1: And what they found where that the children who were 364 00:17:02,040 --> 00:17:04,639 Speaker 1: able to say no and through discipline, were able to 365 00:17:04,680 --> 00:17:07,679 Speaker 1: control themselves ultimately in the long term, we're able to 366 00:17:07,720 --> 00:17:10,720 Speaker 1: achieve more in life, and so Dag is essentially saying 367 00:17:10,760 --> 00:17:13,360 Speaker 1: that in the same way, like this is the experiment 368 00:17:13,359 --> 00:17:15,359 Speaker 1: that we're exposed to every day when it comes to 369 00:17:15,400 --> 00:17:18,320 Speaker 1: our purchases and expenses. If we can say no to 370 00:17:18,400 --> 00:17:22,160 Speaker 1: the things right now of consumption, at some point down 371 00:17:22,160 --> 00:17:25,480 Speaker 1: the road, when you're financially independent, hopefully you're gonna have 372 00:17:25,520 --> 00:17:27,040 Speaker 1: a lot more choices and you're gonna have a lot 373 00:17:27,080 --> 00:17:30,280 Speaker 1: more options presented to you. Yeah, and Matt, we did 374 00:17:30,280 --> 00:17:32,600 Speaker 1: an episode back in the day about peace out Money, 375 00:17:32,880 --> 00:17:34,840 Speaker 1: and that is kind of like one of those stepping 376 00:17:34,840 --> 00:17:36,760 Speaker 1: stones on the way to financial independence, And so we 377 00:17:36,800 --> 00:17:40,240 Speaker 1: said that even though financial independence is this incredibly lofty 378 00:17:40,240 --> 00:17:42,000 Speaker 1: goal and it takes quite a while to achieve, right, 379 00:17:42,000 --> 00:17:43,879 Speaker 1: you're not going to be there probably in three years. 380 00:17:44,280 --> 00:17:46,320 Speaker 1: It's gonna take decades to to hit that goal of 381 00:17:46,359 --> 00:17:49,080 Speaker 1: financial independence. But even along the way, you're gonna hit 382 00:17:49,119 --> 00:17:52,160 Speaker 1: these stepping stones and something like peace out money, which 383 00:17:52,200 --> 00:17:54,680 Speaker 1: gives you kind of enough of a cushion in order 384 00:17:54,720 --> 00:17:56,479 Speaker 1: to say, you know what, I want to move on 385 00:17:56,560 --> 00:17:58,080 Speaker 1: to another job, or I even want to take a 386 00:17:58,160 --> 00:18:01,280 Speaker 1: job that pays less money because it's something I'm more 387 00:18:01,320 --> 00:18:03,200 Speaker 1: interested in doing, and I think I'm gonna be able 388 00:18:03,240 --> 00:18:05,159 Speaker 1: to stick to it for a longer period. So I 389 00:18:05,200 --> 00:18:07,240 Speaker 1: just want to stress too that it's not necessarily all 390 00:18:07,280 --> 00:18:09,960 Speaker 1: about achieving this ultimate end goal that that might be 391 00:18:10,000 --> 00:18:11,760 Speaker 1: decades down the road, but there are these steps in 392 00:18:11,800 --> 00:18:13,960 Speaker 1: between that you're gonna hit that are going to provide 393 00:18:13,960 --> 00:18:16,119 Speaker 1: you no matter where you're at. Maybe it's just building 394 00:18:16,160 --> 00:18:18,399 Speaker 1: up that emergency fund and having laser like focused and 395 00:18:18,400 --> 00:18:20,159 Speaker 1: you've got a frontload of the sacrifice right now in 396 00:18:20,320 --> 00:18:22,320 Speaker 1: order to get there, or you're ready to get to 397 00:18:22,359 --> 00:18:24,840 Speaker 1: that piece out money place so that you can look 398 00:18:24,840 --> 00:18:27,240 Speaker 1: for another job. Either way, it's gonna take passing that 399 00:18:27,320 --> 00:18:30,080 Speaker 1: marshmallow test and and not eating the marshmallows put in 400 00:18:30,119 --> 00:18:32,560 Speaker 1: front of you, and putting that marshmallow in like a 401 00:18:32,600 --> 00:18:34,959 Speaker 1: low cost index fund through van or something like that. Right, 402 00:18:35,240 --> 00:18:38,440 Speaker 1: So that's that marshmallow sun exactly, so it can multiply 403 00:18:38,480 --> 00:18:40,800 Speaker 1: into more and more marshmallows. But yeah, I feel like 404 00:18:40,800 --> 00:18:42,520 Speaker 1: that is a good way for us to see it 405 00:18:42,560 --> 00:18:44,840 Speaker 1: is is that it is easy to just kind of 406 00:18:44,920 --> 00:18:48,120 Speaker 1: eat the marshmallow. It's easy to satisfy our sweet tooth, 407 00:18:48,160 --> 00:18:51,800 Speaker 1: and it's easy to buy something based on a perceived 408 00:18:51,840 --> 00:18:54,080 Speaker 1: need and it just takes more work to maintain that 409 00:18:54,119 --> 00:18:56,639 Speaker 1: focus that's required in order to kind of achieve that 410 00:18:56,720 --> 00:18:59,280 Speaker 1: ultimate goal. Joel. And something else is I wanted to 411 00:18:59,359 --> 00:19:02,120 Speaker 1: mission how delay gratification isn't something that you're just born with, 412 00:19:02,680 --> 00:19:05,679 Speaker 1: like some people might have that sort of natural disposition, 413 00:19:05,760 --> 00:19:07,879 Speaker 1: it's kind of ingrained in them. That's also something that 414 00:19:07,920 --> 00:19:09,720 Speaker 1: you can cultivate. It's like a muscle that you can flex. 415 00:19:10,480 --> 00:19:13,560 Speaker 1: Is build it up through decisions and through discipline and 416 00:19:13,640 --> 00:19:16,040 Speaker 1: just practicing it. And the studies proved that as well. 417 00:19:16,040 --> 00:19:19,080 Speaker 1: There's been lots of other marshmallow experiments since the original 418 00:19:19,119 --> 00:19:22,440 Speaker 1: Stanford one and where they did different experiments leading up 419 00:19:22,440 --> 00:19:24,600 Speaker 1: to the final test of you know, what will you 420 00:19:24,600 --> 00:19:26,719 Speaker 1: do with marshmallow? And it involved lots of different things, 421 00:19:26,760 --> 00:19:28,679 Speaker 1: but like rewarding the kids when they did perform what 422 00:19:28,680 --> 00:19:30,920 Speaker 1: they're supposed to do versus some of the kids who 423 00:19:30,960 --> 00:19:33,119 Speaker 1: weren't rewarded, you know when they said they were so 424 00:19:33,160 --> 00:19:35,960 Speaker 1: basically like the promise, Like was that promise fulfilled? It's 425 00:19:36,000 --> 00:19:38,760 Speaker 1: just crazy interesting to see how that impacts how we 426 00:19:38,840 --> 00:19:41,880 Speaker 1: view things. Yeah, if we get a quick positive response, 427 00:19:42,040 --> 00:19:44,240 Speaker 1: Matt to the change that we make, I feel like 428 00:19:44,280 --> 00:19:47,119 Speaker 1: that actually enhances our ability to kind of continue on. 429 00:19:47,240 --> 00:19:48,840 Speaker 1: That's right, yeah, exactly, And so for a lot of 430 00:19:48,840 --> 00:19:51,400 Speaker 1: people that long term thought of investing. Most of us 431 00:19:51,440 --> 00:19:53,920 Speaker 1: just can't think in that twenty or thirty or forty 432 00:19:54,000 --> 00:19:56,480 Speaker 1: years sort of time period and it just doesn't seem 433 00:19:56,480 --> 00:19:57,960 Speaker 1: like we're ever going to get so why would we 434 00:19:58,000 --> 00:20:00,160 Speaker 1: prioritize it? Right, It's like, well, why am I? We're 435 00:20:00,240 --> 00:20:02,760 Speaker 1: taxing my six sixty year old self over my thirty 436 00:20:02,840 --> 00:20:05,680 Speaker 1: year old self, and that positive feedback just isn't gonna 437 00:20:05,680 --> 00:20:07,919 Speaker 1: happen immediately. It takes a while to feel like you've 438 00:20:07,960 --> 00:20:09,840 Speaker 1: built up some breathing room and to feel like you're 439 00:20:09,840 --> 00:20:11,800 Speaker 1: actually on your way to meeting your goal. So it's 440 00:20:11,800 --> 00:20:13,600 Speaker 1: not like you open up a roth Ira or start 441 00:20:13,640 --> 00:20:15,480 Speaker 1: investing in your four oh one K and then three 442 00:20:15,520 --> 00:20:18,359 Speaker 1: weeks later you get that positive who I'm doing it? 443 00:20:18,359 --> 00:20:20,160 Speaker 1: It takes quite a while, and so, well, that's why 444 00:20:20,160 --> 00:20:22,520 Speaker 1: it's so hard, right, Like, that's why investing is so hard, 445 00:20:22,560 --> 00:20:24,040 Speaker 1: and why I think a lot of times people get 446 00:20:24,080 --> 00:20:26,119 Speaker 1: burned because they invest and they hear that they're supposed 447 00:20:26,160 --> 00:20:28,080 Speaker 1: to invest for the long term, but then the market 448 00:20:28,080 --> 00:20:29,920 Speaker 1: dips a little bit. What is the instant feedback that 449 00:20:29,960 --> 00:20:33,840 Speaker 1: they're receiving. It's that I'm losing money and because of that, 450 00:20:33,840 --> 00:20:35,720 Speaker 1: they don't want to invest and they freak out pull 451 00:20:35,760 --> 00:20:38,200 Speaker 1: their money out, or they stop investing altogether. Yeah, I 452 00:20:38,240 --> 00:20:39,840 Speaker 1: think that is why it's so hard and why it's 453 00:20:39,840 --> 00:20:42,080 Speaker 1: so important to keep that long term goal in mind 454 00:20:42,160 --> 00:20:44,639 Speaker 1: on the horizon and have that be the focus regardless 455 00:20:44,720 --> 00:20:46,800 Speaker 1: of what's happening right now. And I think that's why 456 00:20:47,119 --> 00:20:50,000 Speaker 1: Doc g made reference to an airplane, right, and that 457 00:20:50,080 --> 00:20:53,200 Speaker 1: that failure to launch it is the hardest part, is 458 00:20:53,240 --> 00:20:56,119 Speaker 1: the most energy consuming part of an airline flight is 459 00:20:56,160 --> 00:20:58,320 Speaker 1: just that takeoff and and imagine, right, you have to 460 00:20:58,359 --> 00:21:02,360 Speaker 1: lift this giant metal tube into the sky with hundreds 461 00:21:02,400 --> 00:21:04,480 Speaker 1: of people on it, and in order to kind of 462 00:21:04,520 --> 00:21:06,000 Speaker 1: get that lift, Like, do you know how much Jeff 463 00:21:06,000 --> 00:21:08,160 Speaker 1: fuel you're burning? I mean a lot, I guess, right, 464 00:21:08,200 --> 00:21:10,280 Speaker 1: And yeah, I don't know the specifics. Yeah, I'm not 465 00:21:10,320 --> 00:21:11,840 Speaker 1: an engineer, Like I don't know any of that stuff, 466 00:21:11,960 --> 00:21:14,480 Speaker 1: but I gotta imagine that the amount of fuel just 467 00:21:14,520 --> 00:21:16,280 Speaker 1: to kind of get off the starting line there and 468 00:21:16,320 --> 00:21:18,840 Speaker 1: to get this massive aircraft into the air is so 469 00:21:18,960 --> 00:21:22,400 Speaker 1: much more than an aircraft. That's kind of already in motion, right, 470 00:21:22,440 --> 00:21:25,880 Speaker 1: already in flight, flying through the air at thirty feet. 471 00:21:26,080 --> 00:21:28,360 Speaker 1: So just know too that that is the hardest part. 472 00:21:28,400 --> 00:21:31,200 Speaker 1: And so if you have been wary of starting because 473 00:21:31,280 --> 00:21:33,960 Speaker 1: it is a big lift, we've tried in previous episodes 474 00:21:34,000 --> 00:21:36,320 Speaker 1: to help people see how easy it can be. But 475 00:21:36,359 --> 00:21:39,400 Speaker 1: we realized that even though it's an easy button to click, 476 00:21:39,680 --> 00:21:41,760 Speaker 1: it's a harder thing to move in your mind, to 477 00:21:41,800 --> 00:21:43,960 Speaker 1: move that boulder of saying you know what, I can 478 00:21:44,000 --> 00:21:45,479 Speaker 1: do this, and I need to do this, and this 479 00:21:45,520 --> 00:21:48,000 Speaker 1: is actually gonna be beneficial for me. I think having 480 00:21:48,000 --> 00:21:50,720 Speaker 1: that illustration of of an airline in your head, it's 481 00:21:50,720 --> 00:21:52,200 Speaker 1: like boom, I need to get my wheels down, I 482 00:21:52,240 --> 00:21:53,960 Speaker 1: need to get moved away from the gate, and I 483 00:21:54,000 --> 00:21:56,120 Speaker 1: need to start going. Let's go ahead and dive now 484 00:21:56,160 --> 00:22:00,000 Speaker 1: into the reasons that front loading the sacrifice is so important. 485 00:22:00,080 --> 00:22:01,960 Speaker 1: Dot G touched on several of these. He kind of 486 00:22:01,960 --> 00:22:04,520 Speaker 1: said that there's maybe self evident, but we like to 487 00:22:04,520 --> 00:22:06,720 Speaker 1: pick things apart, so let's dive into it. So the 488 00:22:06,720 --> 00:22:09,680 Speaker 1: first thing he mentioned was compounding interest. We touched on 489 00:22:09,720 --> 00:22:12,159 Speaker 1: this before, but we all know that the earlier you 490 00:22:12,200 --> 00:22:14,800 Speaker 1: get investing, the better, like the money you have invested 491 00:22:14,800 --> 00:22:17,960 Speaker 1: earns money, and then that additional money that you didn't 492 00:22:18,000 --> 00:22:20,840 Speaker 1: deposit and that you didn't save that earns money, and 493 00:22:20,840 --> 00:22:24,440 Speaker 1: then it continues to roll over on itself. That's compounding interest. Yeah, 494 00:22:24,440 --> 00:22:27,520 Speaker 1: it's pretty magical, right. Yeah, And so an example we've 495 00:22:27,560 --> 00:22:30,960 Speaker 1: given before is imagine that you're saving dollars a year. 496 00:22:31,040 --> 00:22:33,160 Speaker 1: Depending on your situation, like that might be a lot 497 00:22:33,200 --> 00:22:35,040 Speaker 1: of money, but let's just say you're doing it. You're 498 00:22:35,040 --> 00:22:37,280 Speaker 1: doing that every year from the age of twenty five 499 00:22:37,359 --> 00:22:39,880 Speaker 1: to forty five. So that total of twenty years, you've 500 00:22:39,920 --> 00:22:42,480 Speaker 1: invested a total of forty eight thousand dollars. But then 501 00:22:42,520 --> 00:22:45,239 Speaker 1: imagine that you stop like completely, and then you let 502 00:22:45,240 --> 00:22:47,240 Speaker 1: it grow for the next twenty years, from forty five 503 00:22:47,240 --> 00:22:49,320 Speaker 1: to sixty five. At the age of sixty five, there's 504 00:22:49,320 --> 00:22:51,840 Speaker 1: a good chance you're gonna have over one million dollars. 505 00:22:52,000 --> 00:22:54,880 Speaker 1: Let me say that again. You've only invested forty eight 506 00:22:54,880 --> 00:22:58,199 Speaker 1: thousand dollars and over time you've been able to convert 507 00:22:58,240 --> 00:23:01,399 Speaker 1: that to over one million dollars. That is the power 508 00:23:01,400 --> 00:23:05,080 Speaker 1: of compounding interest. Yeah, Matt, Compounding interest is a beautiful thing, 509 00:23:05,359 --> 00:23:08,399 Speaker 1: But compounding losses are kind of the exact opposite, right, 510 00:23:08,440 --> 00:23:11,920 Speaker 1: And so payments on loans that you have and interest 511 00:23:12,000 --> 00:23:14,720 Speaker 1: on credit card debt also cost you in a major way. 512 00:23:14,880 --> 00:23:17,320 Speaker 1: We just talked about student loans, and federal student loans 513 00:23:17,359 --> 00:23:20,080 Speaker 1: don't work on a compounding interest level, but private student 514 00:23:20,119 --> 00:23:23,480 Speaker 1: loans typically do. And so the longer you have debt 515 00:23:23,720 --> 00:23:26,199 Speaker 1: out there, the more it's gonna grow and hurt you. 516 00:23:26,560 --> 00:23:29,280 Speaker 1: So that's why do you mentioned prioritizing debt payoff, And 517 00:23:29,320 --> 00:23:31,880 Speaker 1: I think debt payoff is a crucial part of the equation. 518 00:23:32,119 --> 00:23:34,800 Speaker 1: In order to reach financial independence, you need to not 519 00:23:34,880 --> 00:23:37,760 Speaker 1: only do your best to frontload your investments as much 520 00:23:37,800 --> 00:23:40,040 Speaker 1: as possible, but you also need to do your best 521 00:23:40,080 --> 00:23:44,080 Speaker 1: at frontloading your cash towards debt payoff and especially paying 522 00:23:44,080 --> 00:23:47,040 Speaker 1: off those super high interest rate debts as quickly as possible. 523 00:23:47,160 --> 00:23:49,480 Speaker 1: That's right. And we've talked about real estate plenty of times, 524 00:23:49,480 --> 00:23:51,560 Speaker 1: and real estates a great investment in a lot of times. 525 00:23:51,600 --> 00:23:54,360 Speaker 1: You and I we both have mortgages on multiple investment properties. 526 00:23:54,720 --> 00:23:57,000 Speaker 1: That's an example of good debt as we would define it. 527 00:23:57,200 --> 00:24:00,400 Speaker 1: But it's like debt because of an investment now that's 528 00:24:00,480 --> 00:24:04,359 Speaker 1: making money exactly, not debt because of lifestyle and lifestyle 529 00:24:04,480 --> 00:24:06,440 Speaker 1: and consumption and those are the times that you need 530 00:24:06,440 --> 00:24:10,560 Speaker 1: to be especially wary. Uh, anytime you're financing lifestyle specifically, 531 00:24:10,920 --> 00:24:12,840 Speaker 1: we realize some of those things, like student loans not 532 00:24:12,920 --> 00:24:15,720 Speaker 1: really in that lifestyle equation, but it is. Its student 533 00:24:15,720 --> 00:24:17,240 Speaker 1: loans are kind of like in the gray area. Yeah, 534 00:24:17,240 --> 00:24:18,720 Speaker 1: it's it's it's just one of a weird thing. And 535 00:24:18,720 --> 00:24:20,439 Speaker 1: we had a couple episodes on that recently. If you 536 00:24:20,440 --> 00:24:22,080 Speaker 1: need help with your student loans, go back and check 537 00:24:22,160 --> 00:24:23,960 Speaker 1: those out. But to break you down, I feel like 538 00:24:24,000 --> 00:24:26,880 Speaker 1: the more that you can put into investments early on 539 00:24:27,080 --> 00:24:29,800 Speaker 1: and into paying off those higher interest rate debts, I mean, 540 00:24:29,840 --> 00:24:32,439 Speaker 1: the earlier the better. The sooner the better. Kicking debts 541 00:24:32,480 --> 00:24:35,679 Speaker 1: to the curb earlier and not having them linger in 542 00:24:35,720 --> 00:24:38,160 Speaker 1: your life, I mean that's just gonna have massive impacts 543 00:24:38,280 --> 00:24:40,560 Speaker 1: for you further on down the road. Yeah, and something 544 00:24:40,560 --> 00:24:42,760 Speaker 1: else Doc G mentioned is how not only does your 545 00:24:42,760 --> 00:24:46,080 Speaker 1: interest compound and your losses compound, but your experience compounds 546 00:24:46,080 --> 00:24:48,480 Speaker 1: as well. And he said that when you can take 547 00:24:48,520 --> 00:24:51,800 Speaker 1: the education and the skills with you you mature professionally 548 00:24:51,800 --> 00:24:54,120 Speaker 1: in your career, these are skills that are gonna serve 549 00:24:54,200 --> 00:24:56,639 Speaker 1: you and your personal finances for the rest of your life. 550 00:24:56,960 --> 00:24:58,520 Speaker 1: One of the things I realized, man, is that it's 551 00:24:58,600 --> 00:25:00,560 Speaker 1: not just the head knowledge that you can but also 552 00:25:00,720 --> 00:25:03,679 Speaker 1: that experience, the habits that you form now will make 553 00:25:03,720 --> 00:25:05,760 Speaker 1: it easier in the future. I know, for me, I'm 554 00:25:05,840 --> 00:25:07,719 Speaker 1: kind of a creature of habit, and I know that 555 00:25:07,760 --> 00:25:11,200 Speaker 1: if I didn't have the best money handling habits starting 556 00:25:11,200 --> 00:25:13,080 Speaker 1: at a young age, I think it would be really 557 00:25:13,119 --> 00:25:14,840 Speaker 1: really hard for me to flip the switch and all 558 00:25:14,840 --> 00:25:17,359 Speaker 1: of a sudden say cool, now I'm gonna start investing 559 00:25:17,440 --> 00:25:19,560 Speaker 1: ten percent of every check I make and I'm gonna 560 00:25:19,560 --> 00:25:21,560 Speaker 1: slash all my spending in half because I'm gonna become 561 00:25:21,560 --> 00:25:24,439 Speaker 1: financially independent. That's just not how I work. For me. 562 00:25:24,560 --> 00:25:26,560 Speaker 1: Once I do something for a long time, it's it's 563 00:25:26,560 --> 00:25:28,760 Speaker 1: really hard for me to break out of that. And 564 00:25:28,840 --> 00:25:30,680 Speaker 1: so I think that applies here as well. Like when 565 00:25:30,680 --> 00:25:32,919 Speaker 1: you have that experience, when you have those habits formed 566 00:25:33,040 --> 00:25:35,639 Speaker 1: from an early age, those are literal skills you can 567 00:25:35,640 --> 00:25:37,520 Speaker 1: take with you and you can continue on that path. 568 00:25:37,680 --> 00:25:39,240 Speaker 1: And the fact is it's going to be easier for 569 00:25:39,359 --> 00:25:41,639 Speaker 1: you as you get older, as you make advances in 570 00:25:41,680 --> 00:25:43,800 Speaker 1: your career, as you start earning more money that you're 571 00:25:43,840 --> 00:25:46,719 Speaker 1: doing smart and awesome things with your money. Yeah, man, 572 00:25:46,720 --> 00:25:49,480 Speaker 1: I think when we're talking about experience or skills, the 573 00:25:49,560 --> 00:25:51,600 Speaker 1: earlier in our lives that we start to implement those 574 00:25:51,600 --> 00:25:53,720 Speaker 1: things the better. And so let's say you're a school teacher, 575 00:25:53,920 --> 00:25:58,879 Speaker 1: taking a certification to teach gifted courses or maybe getting 576 00:25:58,920 --> 00:26:01,280 Speaker 1: your master's degree a little it earlier. It's going to 577 00:26:01,359 --> 00:26:04,520 Speaker 1: lead to a much higher rate to pay earlier on, 578 00:26:05,000 --> 00:26:07,120 Speaker 1: and you're gonna be getting paid more throughout the years. 579 00:26:07,119 --> 00:26:08,800 Speaker 1: And not only are you gonna be getting paid more 580 00:26:09,000 --> 00:26:11,080 Speaker 1: for a lot of teachers, you're going to ultimately that's 581 00:26:11,080 --> 00:26:13,680 Speaker 1: going to results in a higher pension in retirement. Right. 582 00:26:13,920 --> 00:26:16,439 Speaker 1: And so by getting that skill earlier on in your career, 583 00:26:16,680 --> 00:26:19,280 Speaker 1: it's just gonna have these like ripple effects that last 584 00:26:19,400 --> 00:26:21,199 Speaker 1: for quite a while. And if we're talking about just 585 00:26:21,240 --> 00:26:24,160 Speaker 1: gaining a skill, let's take the skill of reading. For example. 586 00:26:24,440 --> 00:26:26,080 Speaker 1: I think I read a stat at one point, Matt, 587 00:26:26,400 --> 00:26:30,080 Speaker 1: most Americans don't read one whole book for their entirety 588 00:26:30,119 --> 00:26:32,359 Speaker 1: of their life once they graduate from high school. That 589 00:26:32,520 --> 00:26:35,639 Speaker 1: it's it's just kind of crazy, that yeah, crazy. I 590 00:26:35,680 --> 00:26:37,760 Speaker 1: want to say, it's like eighty or of Americans don't 591 00:26:37,800 --> 00:26:39,919 Speaker 1: ever read a whole book. In its entirety, it's kind 592 00:26:39,960 --> 00:26:42,320 Speaker 1: of crazy. So if you can develop just a skill 593 00:26:42,440 --> 00:26:46,240 Speaker 1: of reading five six eight books a year something like that, 594 00:26:46,280 --> 00:26:49,280 Speaker 1: you know, start light. But find a skill in your 595 00:26:49,280 --> 00:26:52,200 Speaker 1: life that's gonna help you build a knowledge base, maybe 596 00:26:52,200 --> 00:26:54,000 Speaker 1: a skill that's going to help you in your career 597 00:26:54,359 --> 00:26:56,439 Speaker 1: in the earlier that you can do that those skills 598 00:26:56,440 --> 00:26:58,520 Speaker 1: that you can build on kind of earlier in your 599 00:26:58,560 --> 00:27:01,280 Speaker 1: life to help turn you in to a lifelong learner, 600 00:27:01,520 --> 00:27:03,560 Speaker 1: and potential skills that will help you in your day 601 00:27:03,640 --> 00:27:06,080 Speaker 1: job now make you more well rounded, make you more 602 00:27:06,160 --> 00:27:08,800 Speaker 1: likely to get a promotion. That sort of experience, that 603 00:27:08,880 --> 00:27:11,720 Speaker 1: skill set compounds on itself. Hopefully it leads to you 604 00:27:11,800 --> 00:27:13,800 Speaker 1: being kind of more well rounded as a person, but 605 00:27:13,840 --> 00:27:16,240 Speaker 1: also it can lead to higher earnings, and just earning 606 00:27:16,240 --> 00:27:18,399 Speaker 1: a little bit more can make all the difference sometimes 607 00:27:18,440 --> 00:27:20,439 Speaker 1: and trying to reach your goal like five and so 608 00:27:20,520 --> 00:27:22,439 Speaker 1: all these things that doctors mentioning are things that you 609 00:27:22,440 --> 00:27:25,320 Speaker 1: can do at any age, whether you're fresh out of 610 00:27:25,320 --> 00:27:27,720 Speaker 1: school or if you're older in your forties and fifties. 611 00:27:27,920 --> 00:27:29,720 Speaker 1: You want to invest now, you want to cut that 612 00:27:29,840 --> 00:27:33,119 Speaker 1: unnecessary spending. But again, like you said, Jell, the sooner 613 00:27:33,160 --> 00:27:35,399 Speaker 1: you get started the better. Yeah, Matt, there was a 614 00:27:35,520 --> 00:27:38,320 Speaker 1: Chinese proverb that I read that says that the best 615 00:27:38,359 --> 00:27:40,879 Speaker 1: time to plan a tree was twenty years ago, and 616 00:27:40,920 --> 00:27:42,880 Speaker 1: the second best time to plan a tree is today, 617 00:27:43,160 --> 00:27:44,920 Speaker 1: and so you can't go back. It's a proverb or 618 00:27:44,920 --> 00:27:48,960 Speaker 1: a fortune cookie. I don't know, mind doing both, but 619 00:27:49,080 --> 00:27:51,119 Speaker 1: I mean, I just think that's so profound, right, And 620 00:27:51,160 --> 00:27:53,800 Speaker 1: when you're thinking it's so easy that like, let's say 621 00:27:53,800 --> 00:27:55,919 Speaker 1: you're listening to this podcast and you are in your 622 00:27:55,960 --> 00:27:58,719 Speaker 1: forties or fifties and you're thinking, I totally screwed up 623 00:27:58,720 --> 00:28:00,480 Speaker 1: and I can't do it at I think you have 624 00:28:00,520 --> 00:28:01,720 Speaker 1: to kind of take that to heart. You have to 625 00:28:01,760 --> 00:28:03,680 Speaker 1: realize that you can't go back in time. You can't 626 00:28:03,760 --> 00:28:05,760 Speaker 1: fix mistakes who are made in the past. But what 627 00:28:05,800 --> 00:28:08,000 Speaker 1: you can do is you can plant that seed today 628 00:28:08,240 --> 00:28:09,800 Speaker 1: and you can get the ball rolling, you can get 629 00:28:09,800 --> 00:28:12,119 Speaker 1: your plane in the air, and you can start frontloading. 630 00:28:12,160 --> 00:28:15,199 Speaker 1: The sacrifice. Whatever that means for you today is what 631 00:28:15,240 --> 00:28:17,639 Speaker 1: you need to do. Yeah, Jule, I completely agree with that. 632 00:28:18,000 --> 00:28:19,920 Speaker 1: And then so after the break, we're gonna talk about 633 00:28:19,920 --> 00:28:22,320 Speaker 1: some tips, specifically if you're younger. We're also going to 634 00:28:22,400 --> 00:28:34,359 Speaker 1: talk about our thoughts on yellow all right, Matt, this 635 00:28:34,400 --> 00:28:36,400 Speaker 1: part of the show is for the youngsters out there, 636 00:28:36,600 --> 00:28:39,400 Speaker 1: like that fourteen year old we mentioned that rode into us. Uh, 637 00:28:39,400 --> 00:28:41,520 Speaker 1: And if you don't have any kids, it's time to 638 00:28:41,640 --> 00:28:45,959 Speaker 1: aggressively get after it. You have fewer responsibilities in general 639 00:28:46,360 --> 00:28:47,800 Speaker 1: pre kids, and you know what, maybe you don't want 640 00:28:47,840 --> 00:28:49,760 Speaker 1: kids at all, that's totally cool. But if you do 641 00:28:49,840 --> 00:28:52,320 Speaker 1: want kids and you don't have any yet, if you're 642 00:28:52,320 --> 00:28:55,640 Speaker 1: single or a young married couple, whatever it is, you 643 00:28:55,640 --> 00:28:57,400 Speaker 1: don't think you have as much time as you do. 644 00:28:57,560 --> 00:28:59,479 Speaker 1: But in reality, pre kid life is going to be 645 00:28:59,640 --> 00:29:02,200 Speaker 1: the most time, the most spare time that you have 646 00:29:02,280 --> 00:29:04,840 Speaker 1: to be able to invest in learning that skill right 647 00:29:04,880 --> 00:29:08,200 Speaker 1: that we just mentioned, or gaining some experience moving up 648 00:29:08,280 --> 00:29:11,040 Speaker 1: the ladder in your job, and even just upping the 649 00:29:11,160 --> 00:29:13,800 Speaker 1: percentage of your paycheck that comes out into your or 650 00:29:13,960 --> 00:29:17,360 Speaker 1: four oh one k or yeah. Man, when when you're young, 651 00:29:17,480 --> 00:29:20,160 Speaker 1: like now is the time because you have time. And 652 00:29:20,160 --> 00:29:21,680 Speaker 1: that's not to say that what you're working on right 653 00:29:21,680 --> 00:29:24,320 Speaker 1: now when you're younger isn't important, but the fact is 654 00:29:24,320 --> 00:29:26,480 Speaker 1: is life just gets busier if you add kids to 655 00:29:26,480 --> 00:29:29,600 Speaker 1: the equation, or if you add additional responsibilities, there's just 656 00:29:29,720 --> 00:29:32,480 Speaker 1: less time to put towards financial independence or whatever your 657 00:29:32,480 --> 00:29:34,240 Speaker 1: goals might be. And Joel, I know when I was 658 00:29:34,280 --> 00:29:36,880 Speaker 1: in my twenties, I thought that this is probably as 659 00:29:36,880 --> 00:29:38,840 Speaker 1: busy as my life is going to get. But the 660 00:29:38,880 --> 00:29:40,680 Speaker 1: fact is, like when you add kids to the mix, 661 00:29:40,720 --> 00:29:43,920 Speaker 1: when you add additional responsibilities, life does just get busier. 662 00:29:44,200 --> 00:29:45,920 Speaker 1: And even if you're not going to have kids, you 663 00:29:45,920 --> 00:29:48,360 Speaker 1: have parents that are getting older, you have different family obligations. 664 00:29:48,560 --> 00:29:51,960 Speaker 1: There's things in your community, schools and organizations that you 665 00:29:52,000 --> 00:29:54,719 Speaker 1: believe in that your volunteering, and that's okay, and like 666 00:29:54,760 --> 00:29:58,320 Speaker 1: that's great honestly, because you're aligning yourself with things that 667 00:29:58,360 --> 00:30:00,280 Speaker 1: you believe in and doing things in a way that 668 00:30:00,320 --> 00:30:02,240 Speaker 1: you feel will help you to live a better life. 669 00:30:02,600 --> 00:30:04,920 Speaker 1: All I'm saying, though, is that you're gonna have less 670 00:30:04,920 --> 00:30:07,760 Speaker 1: time to do that hard work, and it's much easier 671 00:30:07,800 --> 00:30:10,080 Speaker 1: to do that hard work when you're younger. Essentially, you're 672 00:30:10,120 --> 00:30:12,840 Speaker 1: kind of laying this foundation, right, and if you put 673 00:30:12,840 --> 00:30:15,400 Speaker 1: together a really solid foundation for a house, it just 674 00:30:15,440 --> 00:30:18,440 Speaker 1: becomes so much easier to build the house. And if 675 00:30:18,480 --> 00:30:21,280 Speaker 1: you put together kind of a crummy, haphazard, uh not 676 00:30:21,400 --> 00:30:24,440 Speaker 1: well planned out foundation, the house is going to be misshapen. 677 00:30:24,480 --> 00:30:26,000 Speaker 1: It's gonna be much harder to build the house. The 678 00:30:26,000 --> 00:30:28,120 Speaker 1: angles are gonna be off, it's just gonna be difficult 679 00:30:28,160 --> 00:30:30,200 Speaker 1: to produce. So at the same time, for for young 680 00:30:30,240 --> 00:30:32,880 Speaker 1: people building this foundation for the rest of their lives, 681 00:30:33,000 --> 00:30:35,200 Speaker 1: it's really important to kind of get started in building 682 00:30:35,200 --> 00:30:38,120 Speaker 1: those skills, the experiences, and starting to actually put money 683 00:30:38,160 --> 00:30:40,960 Speaker 1: aside for the future. Now that is front loading the sacrifice. 684 00:30:41,000 --> 00:30:42,920 Speaker 1: The other thing, Matt, is that you have more energy 685 00:30:43,440 --> 00:30:45,719 Speaker 1: at a young age, and so you know, we're in 686 00:30:45,720 --> 00:30:48,480 Speaker 1: our mid thirties, our energy is a little more SAPs 687 00:30:48,600 --> 00:30:50,760 Speaker 1: kind of by the other things that we have going on. 688 00:30:51,080 --> 00:30:54,040 Speaker 1: I just look back to my early twenties and the 689 00:30:54,040 --> 00:30:56,080 Speaker 1: the amount of energy that I had to tackle the 690 00:30:56,200 --> 00:30:59,000 Speaker 1: things before me, I was totally willing to work weekends, nights, 691 00:30:59,040 --> 00:31:01,640 Speaker 1: whatever it was. Now I just don't have that willingness 692 00:31:01,640 --> 00:31:03,640 Speaker 1: and I don't have the energy to to make that happen. 693 00:31:03,840 --> 00:31:06,200 Speaker 1: And so if you are younger, just realize that your 694 00:31:06,280 --> 00:31:08,680 Speaker 1: energy level isn't going to stay the same for forever. 695 00:31:08,880 --> 00:31:10,400 Speaker 1: I'm not saying that like we're old dudes and we're 696 00:31:10,400 --> 00:31:12,800 Speaker 1: tapped out that, but but there is an element to 697 00:31:12,800 --> 00:31:15,360 Speaker 1: which we just don't have as much energy to produce 698 00:31:15,440 --> 00:31:18,080 Speaker 1: as much as we did earlier on. And that's another 699 00:31:18,160 --> 00:31:21,200 Speaker 1: checkbox in in favor of kind of frontloading some of 700 00:31:21,200 --> 00:31:23,120 Speaker 1: that sacrifice in order to kind of reap some of 701 00:31:23,120 --> 00:31:25,640 Speaker 1: those benefits down the road. Edull, you know what you mentioned. 702 00:31:25,680 --> 00:31:28,080 Speaker 1: You mentioned willingness to do that work, and honestly, I 703 00:31:28,080 --> 00:31:30,880 Speaker 1: feel like for me it's more of the willingness versus 704 00:31:30,920 --> 00:31:33,960 Speaker 1: the actual physical energy. Like, honestly, right now, I feel 705 00:31:33,960 --> 00:31:35,880 Speaker 1: like I'm in better shape than I was in my twenties. 706 00:31:35,960 --> 00:31:38,120 Speaker 1: Like I I really do think I might have more energy, 707 00:31:38,280 --> 00:31:39,960 Speaker 1: like my body hurts a little more, like I have 708 00:31:40,000 --> 00:31:42,640 Speaker 1: to stretch more because of getting older. But for me, 709 00:31:42,720 --> 00:31:44,880 Speaker 1: it's a mental energy. I don't have the same bandwidth 710 00:31:44,880 --> 00:31:46,520 Speaker 1: that I had when I was in my twenties. Again, 711 00:31:46,600 --> 00:31:50,240 Speaker 1: because of these additional responsibilities. There's things that I'm required 712 00:31:50,280 --> 00:31:52,000 Speaker 1: to think about, like my family and my kids, and 713 00:31:52,040 --> 00:31:53,960 Speaker 1: that I love to think about. It's not like it's 714 00:31:53,960 --> 00:31:57,440 Speaker 1: just a requirement, but there are things that take energy, 715 00:31:57,640 --> 00:31:59,160 Speaker 1: and for me, I guess yeah, maybe it's just more 716 00:31:59,240 --> 00:32:01,560 Speaker 1: that mental energy. So that's all great advice for when 717 00:32:01,600 --> 00:32:04,360 Speaker 1: you're younger to aggressively get after before you have kids. 718 00:32:04,600 --> 00:32:07,400 Speaker 1: To not underestimate the fact that your energy is going 719 00:32:07,440 --> 00:32:09,800 Speaker 1: to lessen over time and that you're just not going 720 00:32:09,840 --> 00:32:12,080 Speaker 1: to have as much time to dedicate to building that 721 00:32:12,120 --> 00:32:14,840 Speaker 1: foundation as you grow older. But what does this mean 722 00:32:14,880 --> 00:32:18,040 Speaker 1: if you already have kids or meaningful responsibilities in your life? 723 00:32:18,120 --> 00:32:20,000 Speaker 1: And I love what doc G said. He said, yolo 724 00:32:20,120 --> 00:32:21,920 Speaker 1: is a no no, and that's because you want to 725 00:32:21,960 --> 00:32:24,400 Speaker 1: be able to face new stages of life prepared and 726 00:32:24,440 --> 00:32:27,280 Speaker 1: able to enjoy them. Well, j yeah, I think that's 727 00:32:27,320 --> 00:32:29,000 Speaker 1: the Like, that's the key question here is like what 728 00:32:29,040 --> 00:32:31,440 Speaker 1: does this mean for you if you do already have kids? 729 00:32:31,880 --> 00:32:35,120 Speaker 1: Another stuff going on personally, Like I have a family 730 00:32:35,320 --> 00:32:37,720 Speaker 1: with young kids, and I'm already at that stage of life. 731 00:32:38,160 --> 00:32:41,080 Speaker 1: And while I have made some smart financial decisions in 732 00:32:41,080 --> 00:32:43,560 Speaker 1: my life, I'm not financially independent. My plan is to 733 00:32:43,640 --> 00:32:46,080 Speaker 1: continue to be smart with my money now, but my 734 00:32:46,320 --> 00:32:48,760 Speaker 1: goal isn't to go at it with everything I've got, 735 00:32:48,800 --> 00:32:51,200 Speaker 1: Like I'm not trying to achieve financial independence. Uh, not 736 00:32:51,200 --> 00:32:54,200 Speaker 1: trying to achieve retirement at a super young age. And 737 00:32:54,240 --> 00:32:56,480 Speaker 1: I think, especially when you have kids, like you have 738 00:32:56,560 --> 00:32:58,960 Speaker 1: to take that balanced approach. I know doc G, he 739 00:32:59,080 --> 00:33:00,680 Speaker 1: has kids, and I think he would say the same 740 00:33:00,720 --> 00:33:02,760 Speaker 1: thing like once you have kids on the scene, once 741 00:33:02,800 --> 00:33:06,320 Speaker 1: you have these additional responsibilities, you still can work towards 742 00:33:06,440 --> 00:33:08,960 Speaker 1: your goals. You can still work towards financial independence or 743 00:33:09,160 --> 00:33:11,800 Speaker 1: to travel more or whatever it is that you're going after. 744 00:33:12,160 --> 00:33:13,680 Speaker 1: It's just a lot harder and it's gonna take a 745 00:33:13,680 --> 00:33:16,000 Speaker 1: little bit longer, but it's still totally doable. Like even 746 00:33:16,040 --> 00:33:17,840 Speaker 1: you and I doing this podcast, like, this is something 747 00:33:17,880 --> 00:33:20,840 Speaker 1: we enjoy. We're both we have lots of responsibilities, but 748 00:33:20,880 --> 00:33:22,760 Speaker 1: this is something that we love to do, and it's 749 00:33:22,800 --> 00:33:25,280 Speaker 1: totally worth it for us to put forth the effort 750 00:33:25,320 --> 00:33:27,520 Speaker 1: and try to create something that we love. Yeah, Matt, 751 00:33:27,560 --> 00:33:29,200 Speaker 1: And what I think d G was getting at Matt 752 00:33:29,240 --> 00:33:31,280 Speaker 1: with the with the yolo comment, I think I may 753 00:33:31,320 --> 00:33:33,200 Speaker 1: think obviously, if you look at looking up the hashtag 754 00:33:33,240 --> 00:33:35,120 Speaker 1: on Instagram, you probably see a lot of people doing 755 00:33:35,200 --> 00:33:37,320 Speaker 1: some crazy stuff with their money, blowing it in all 756 00:33:37,320 --> 00:33:41,120 Speaker 1: sorts of different ways, completely sacrificing the future for the present. 757 00:33:41,400 --> 00:33:43,720 Speaker 1: And that can be a mistake, especially that one makes 758 00:33:44,040 --> 00:33:46,200 Speaker 1: in their youth. And so I think if you're listening 759 00:33:46,240 --> 00:33:48,840 Speaker 1: to this podcast and you're young, first off, kudos to you, 760 00:33:48,880 --> 00:33:51,320 Speaker 1: because that's rare. You're in you're you're in rare territory, 761 00:33:51,400 --> 00:33:55,160 Speaker 1: just listening to a podcast giving financial advice and realizing 762 00:33:55,200 --> 00:33:57,760 Speaker 1: the fact that a little bit of pushing that marshmallow 763 00:33:57,840 --> 00:34:00,960 Speaker 1: down the road, not buying into the yellow mentality and 764 00:34:01,000 --> 00:34:06,040 Speaker 1: stacking up possessions and expensive experiences today because you only 765 00:34:06,080 --> 00:34:09,359 Speaker 1: live once. Realizing that, like Doc g said, every new 766 00:34:09,400 --> 00:34:11,520 Speaker 1: stage of life is going to bring new and interesting 767 00:34:11,560 --> 00:34:14,200 Speaker 1: things and exciting things along the way with it. I 768 00:34:14,239 --> 00:34:17,680 Speaker 1: think that just makes the idea of delayed gratification that 769 00:34:17,760 --> 00:34:20,360 Speaker 1: much easier. Yeah, the yellow hashtag, I feel like it 770 00:34:20,360 --> 00:34:22,600 Speaker 1: definitely involves a lot more bullying, a lot more shiny 771 00:34:22,719 --> 00:34:25,440 Speaker 1: and fancy cocktails, maybe going to like the fire Festival 772 00:34:25,480 --> 00:34:28,200 Speaker 1: or something like that. But I mean, at the same time, though, 773 00:34:28,239 --> 00:34:29,880 Speaker 1: like even when it comes to parenting, I think you 774 00:34:29,920 --> 00:34:32,239 Speaker 1: can overdo it when it comes to if you kind 775 00:34:32,239 --> 00:34:34,319 Speaker 1: of go into it with more of that yellow mindset. Right, 776 00:34:34,360 --> 00:34:36,879 Speaker 1: And I'm not at all advocating that you're broke by 777 00:34:36,880 --> 00:34:38,719 Speaker 1: the time your kids go off to college. All right, 778 00:34:38,760 --> 00:34:40,719 Speaker 1: we have the best eighteen years of our lives, but 779 00:34:40,760 --> 00:34:42,279 Speaker 1: now we're broke and we don't have any money save 780 00:34:42,320 --> 00:34:45,000 Speaker 1: towards retirement at all. You can overdo it whether you're 781 00:34:45,040 --> 00:34:48,040 Speaker 1: living that young twenties single lifestyle or even as a parent. 782 00:34:48,160 --> 00:34:49,680 Speaker 1: I think there's a lot of different ways that you 783 00:34:49,680 --> 00:34:53,040 Speaker 1: can overspend and have yellow as that excuse. Yeah, man, 784 00:34:53,080 --> 00:34:54,680 Speaker 1: I feel like on the note of parenting too, once, 785 00:34:54,719 --> 00:34:56,840 Speaker 1: once you kind of enter that phase of life, you 786 00:34:56,920 --> 00:34:59,640 Speaker 1: are willing to kind of step back in the amount 787 00:34:59,800 --> 00:35:01,800 Speaker 1: of work that you're willing to take on. You're willing 788 00:35:01,800 --> 00:35:05,360 Speaker 1: to make sacrifices in order to enjoy time with your kids, 789 00:35:05,360 --> 00:35:07,920 Speaker 1: with your family. That doesn't always have to, like you said, 790 00:35:08,000 --> 00:35:10,520 Speaker 1: mean just a lot of expense. It doesn't have to 791 00:35:10,560 --> 00:35:12,440 Speaker 1: mean spending a lot of money. And so there's a 792 00:35:12,480 --> 00:35:14,760 Speaker 1: way to pursue the things in life that are meaningful, 793 00:35:14,920 --> 00:35:18,400 Speaker 1: like relationships, community, family, in a way that allows you 794 00:35:18,440 --> 00:35:21,960 Speaker 1: to still prioritize saving and investing. The most important things 795 00:35:22,000 --> 00:35:24,360 Speaker 1: in life usually don't cost much money. Usually what it 796 00:35:24,400 --> 00:35:26,160 Speaker 1: means is working a little bit less and being a 797 00:35:26,200 --> 00:35:29,359 Speaker 1: little more intentional. And I think that's okay, right, that's okay, 798 00:35:29,480 --> 00:35:32,239 Speaker 1: But that yolo lifestyle is just kind of antithetical to 799 00:35:32,360 --> 00:35:34,919 Speaker 1: what we're trying to achieve, and it's definitely gonna prevent 800 00:35:34,960 --> 00:35:37,000 Speaker 1: you from achieving some of those ultimate goals that you 801 00:35:37,040 --> 00:35:39,239 Speaker 1: do want to achieve. So we're gonna talk about our 802 00:35:39,280 --> 00:35:41,360 Speaker 1: thoughts on this beer, but man, let's first talk about 803 00:35:41,360 --> 00:35:44,719 Speaker 1: our final thoughts from this episode. And Doc g He 804 00:35:44,760 --> 00:35:46,759 Speaker 1: says that money that you make as a young person, 805 00:35:46,800 --> 00:35:48,799 Speaker 1: it's going to be that fuel for your flight, that 806 00:35:48,920 --> 00:35:52,000 Speaker 1: jet fuel. However, keep in mind that this doesn't mean 807 00:35:52,080 --> 00:35:54,640 Speaker 1: that you have to make all your money early in 808 00:35:54,680 --> 00:35:56,040 Speaker 1: your career, Like you don't have to make tons of 809 00:35:56,040 --> 00:35:58,160 Speaker 1: money like this isn't the money that you'll be retiring on. 810 00:35:58,520 --> 00:36:00,360 Speaker 1: The majority of the money that you were hier on 811 00:36:00,680 --> 00:36:02,200 Speaker 1: is going to be the fruit of the money that 812 00:36:02,239 --> 00:36:05,120 Speaker 1: you're investing now. It's going to be essentially like the 813 00:36:05,160 --> 00:36:08,640 Speaker 1: grand grand grandchildren money of the money that you're investing now. 814 00:36:08,680 --> 00:36:10,319 Speaker 1: And so I don't want people to hear this and 815 00:36:10,360 --> 00:36:12,480 Speaker 1: think like jet fuel, Oh I've got a stock up, 816 00:36:12,480 --> 00:36:14,160 Speaker 1: like this is the only chance I have to actually 817 00:36:14,200 --> 00:36:16,200 Speaker 1: save any money. What you do need to make sure 818 00:36:16,239 --> 00:36:18,200 Speaker 1: that you're doing now is taking that money that you 819 00:36:18,200 --> 00:36:21,359 Speaker 1: are earning and get that ball rolling by investing it. Yeah, 820 00:36:21,400 --> 00:36:23,160 Speaker 1: you gotta get started at least, right. That can be 821 00:36:23,200 --> 00:36:25,359 Speaker 1: the hardest part, and it's also really important to use 822 00:36:25,440 --> 00:36:28,279 Speaker 1: kind of frugality to help you. It's not necessary to 823 00:36:28,360 --> 00:36:31,600 Speaker 1: have a huge income in order to get started, and Matt, 824 00:36:31,640 --> 00:36:34,480 Speaker 1: a big income also isn't necessary in order to kind 825 00:36:34,520 --> 00:36:37,080 Speaker 1: of reach some of these goals. They're countless examples of 826 00:36:37,120 --> 00:36:42,080 Speaker 1: people striving after financial independence that make reasonable salaries, and 827 00:36:42,160 --> 00:36:46,080 Speaker 1: someone earning a reasonable salary can use the tenants of 828 00:36:46,080 --> 00:36:48,680 Speaker 1: frugality in order to kind of help them on their path, 829 00:36:49,280 --> 00:36:52,120 Speaker 1: essentially growing that gap between what you earn and what 830 00:36:52,280 --> 00:36:55,200 Speaker 1: goes out and then investing the rest right, and then 831 00:36:55,239 --> 00:36:57,959 Speaker 1: you start that compound interest train going, and you're also 832 00:36:58,080 --> 00:37:00,719 Speaker 1: kind of cutting out those unnecessary exp is you're not 833 00:37:00,760 --> 00:37:04,440 Speaker 1: accruing debt and paying interest for lifestyle purchases. And in 834 00:37:04,480 --> 00:37:07,680 Speaker 1: the same way that compounding interest is a massive benefit 835 00:37:07,719 --> 00:37:10,960 Speaker 1: to you over the decades, well, compounding losses paying high 836 00:37:11,040 --> 00:37:14,600 Speaker 1: interest rates for debt that you accrue for lifestyle purchases, 837 00:37:14,640 --> 00:37:16,920 Speaker 1: that's going to have the opposite effect. But I think 838 00:37:16,960 --> 00:37:19,480 Speaker 1: the most beautiful thing about this topic is that you 839 00:37:19,520 --> 00:37:22,080 Speaker 1: can start frontloading the sacrifice now, no matter what age 840 00:37:22,120 --> 00:37:24,640 Speaker 1: you are, if you're eighteen or if you're fifty two, 841 00:37:24,880 --> 00:37:29,040 Speaker 1: you can start frontloading the sacrifice now. Start by identifying 842 00:37:29,080 --> 00:37:32,000 Speaker 1: that goal keep on it with laser like focus, and 843 00:37:32,040 --> 00:37:34,840 Speaker 1: that little bit of extra effort now is going to 844 00:37:34,880 --> 00:37:37,560 Speaker 1: be mean a much smoother ride for you in the future. Awesome, Joe. 845 00:37:37,640 --> 00:37:39,080 Speaker 1: Let's go ahead and take it now back to the beer. 846 00:37:39,920 --> 00:37:43,040 Speaker 1: Huge things again to Leo out with Spindle Tap Brewery 847 00:37:43,080 --> 00:37:45,759 Speaker 1: for sending us a bunch of beers. We're drinking aggressive 848 00:37:45,840 --> 00:37:49,160 Speaker 1: additions I p A. And I'll kick this one off, man, 849 00:37:49,239 --> 00:37:53,440 Speaker 1: I really really like this beer. This is fantastic. This 850 00:37:53,520 --> 00:37:56,400 Speaker 1: was a hazy, hoppy I p A. And specifically some 851 00:37:56,440 --> 00:37:58,440 Speaker 1: of the flavors I picked up on it were a 852 00:37:58,520 --> 00:38:02,680 Speaker 1: funky blue cheese like hot flavor. And I've gotten confirmation 853 00:38:02,719 --> 00:38:04,800 Speaker 1: from other guys that are into beer that they taste 854 00:38:04,840 --> 00:38:06,880 Speaker 1: the same sort of profile, you know I'm talking about. 855 00:38:07,000 --> 00:38:08,640 Speaker 1: I do. I kind of love like an I p 856 00:38:08,760 --> 00:38:10,960 Speaker 1: A that's like hoppy, so happy that it's got that 857 00:38:11,040 --> 00:38:14,319 Speaker 1: funk level addition the aftertaste that goes on your tongue. 858 00:38:14,320 --> 00:38:16,600 Speaker 1: It's so nice. Yeah, yeah, it's so blue cheese is 859 00:38:16,600 --> 00:38:18,640 Speaker 1: the best way to describe it. Where it's like the sharpness, 860 00:38:18,680 --> 00:38:20,960 Speaker 1: which sounds weird. Yeah, it sounds really weird to say. 861 00:38:21,000 --> 00:38:23,239 Speaker 1: I think most people listening who haven't tasted a beer 862 00:38:23,280 --> 00:38:24,839 Speaker 1: like that. They're gonna say, that's weird. Why do those 863 00:38:24,840 --> 00:38:27,080 Speaker 1: guys drink beers like that? That sounds disgusting. Why you're 864 00:38:27,120 --> 00:38:29,680 Speaker 1: drinking blue cheese? But yeah, it's not quite so that 865 00:38:29,719 --> 00:38:32,080 Speaker 1: funk level. But it's just this just enough sharpness that 866 00:38:32,120 --> 00:38:34,680 Speaker 1: you get with a dry blue cheese. Like that kind 867 00:38:34,680 --> 00:38:38,280 Speaker 1: of weird description, but a very delicious beer. Joel, your thoughts, 868 00:38:38,800 --> 00:38:40,799 Speaker 1: I don't have any like fancy descriptors or anything like 869 00:38:40,800 --> 00:38:42,760 Speaker 1: that mad for this one. I just thought it was really, 870 00:38:42,760 --> 00:38:45,520 Speaker 1: really good, so I thoroughly enjoyed it. I would drink 871 00:38:45,560 --> 00:38:48,040 Speaker 1: aggressive editions this beer probably every day of the week. 872 00:38:48,200 --> 00:38:50,840 Speaker 1: It was like solid, Yeah, the new definition of a 873 00:38:50,840 --> 00:38:53,880 Speaker 1: good beer. Yeah, this beer right here exactly. Yeah. So 874 00:38:53,920 --> 00:38:56,600 Speaker 1: big thanks to to Leo from Spindle Tap Brewery sending 875 00:38:56,600 --> 00:38:58,879 Speaker 1: this out to us man. We really appreciate it. Thanks Leo, 876 00:38:59,000 --> 00:39:00,800 Speaker 1: and so Joel. That's gonna be it for this episode. 877 00:39:00,840 --> 00:39:03,200 Speaker 1: Thanks everyone so much for listening. We really appreciate it. 878 00:39:03,239 --> 00:39:05,640 Speaker 1: We'll have some show notes up on the website at 879 00:39:05,680 --> 00:39:08,239 Speaker 1: how some money dot com, and we'll throw some links 880 00:39:08,280 --> 00:39:09,560 Speaker 1: up there as well. If you want to check out 881 00:39:09,600 --> 00:39:12,400 Speaker 1: some more stuff by Doc G and a quick reminder 882 00:39:12,400 --> 00:39:14,600 Speaker 1: of the doc. G co hosts a podcast called What's 883 00:39:14,680 --> 00:39:18,200 Speaker 1: Up Next, and it's a roundtable discussion of topics related 884 00:39:18,239 --> 00:39:20,839 Speaker 1: to financial independence. And he does a really good job 885 00:39:20,960 --> 00:39:24,920 Speaker 1: leading the conversation, having on interesting voices. So I thoroughly 886 00:39:25,000 --> 00:39:27,120 Speaker 1: enjoy his podcast, and I think if you care about money, 887 00:39:27,239 --> 00:39:29,200 Speaker 1: it's worth checking out for sure. And we'll put a 888 00:39:29,239 --> 00:39:31,120 Speaker 1: link to that in the show notes as well. And 889 00:39:31,160 --> 00:39:33,320 Speaker 1: if you like this episode and he found it helpful, 890 00:39:33,360 --> 00:39:36,600 Speaker 1: we would appreciate your review on Apple Podcasts, and don't 891 00:39:36,600 --> 00:39:38,880 Speaker 1: forget to hit the subscribe button. Why you're there, And 892 00:39:38,880 --> 00:39:40,640 Speaker 1: if you think Matt and I have room for improvement, 893 00:39:40,800 --> 00:39:42,960 Speaker 1: head on over to how the Money dot com slash 894 00:39:43,000 --> 00:39:45,719 Speaker 1: do better. We love your feedback there as well, all right, Joel, 895 00:39:45,719 --> 00:39:48,799 Speaker 1: So until next time, Best friends out, Best Friends Out, 896 00:40:00,080 --> 00:40:00,239 Speaker 1: M M.