WEBVTT - Friday Flight - Geographic Arbitrage, Purging the Penny, & Looking Back in Anger #876 0:00:00.120 --> 0:00:03.120 Welcome to How the Money. I'm Joel and I am 0:00:03.320 --> 0:00:07.520 mat and today we're talking about geographic arbitrage, purging the penny, 0:00:07.920 --> 0:00:09.360 and looking back in anger. 0:00:27.560 --> 0:00:29.400 So looking back in Anger doesn't really seem to have 0:00:29.480 --> 0:00:32.800 a personal finance angle to it, Joel. I actually had 0:00:32.800 --> 0:00:34.080 to look this up because I saw that you had 0:00:34.080 --> 0:00:34.559 this down as. 0:00:34.520 --> 0:00:36.199 A title of the episode, and you were like, what 0:00:36.240 --> 0:00:36.639 does that mean? 0:00:36.640 --> 0:00:38.840 And I realized that you wanted to talk about Oasis 0:00:39.640 --> 0:00:42.519 during this episode, which I mean one of their best songs. 0:00:42.680 --> 0:00:46.520 So I never owned that album. What's the story Morning Glory? 0:00:46.600 --> 0:00:46.840 Yeah? 0:00:46.920 --> 0:00:51.200 And I certainly, of course knew about Champagne, super Nova, Wonderwall, 0:00:51.479 --> 0:00:53.280 but news to me that that's one of their best songs. 0:00:53.960 --> 0:00:54.560 Yeah, all right? 0:00:54.680 --> 0:00:57.120 That album was I have seventh grade. For me, that 0:00:57.240 --> 0:00:58.560 was my favorite album I bait. 0:00:58.760 --> 0:01:00.400 My friends were really into it, and I still love 0:01:00.440 --> 0:01:01.720 the Oasis, would you? 0:01:02.000 --> 0:01:02.319 All right? 0:01:02.320 --> 0:01:05.800 We'll get to Oasis probably later on, but yes, this 0:01:05.880 --> 0:01:07.640 is our Friday flight where we look at the most 0:01:07.640 --> 0:01:10.880 pressing news headlines that we've come across this week and 0:01:10.959 --> 0:01:15.000 we discuss how they pertain to your personal finances. Joel, 0:01:15.080 --> 0:01:17.160 really quick, you and I we got to take little 0:01:17.200 --> 0:01:20.039 breaks last week, we both of us actually went out 0:01:20.080 --> 0:01:22.880 on some mountain adventures. You went out with some friends 0:01:22.920 --> 0:01:25.720 out to California, and in your case you got picked 0:01:25.800 --> 0:01:29.640 up by a friend in their car, which is always nice. 0:01:29.720 --> 0:01:29.920 Right. 0:01:30.280 --> 0:01:32.240 In my case, Kate and I flew out to Denver 0:01:32.400 --> 0:01:36.520 and we walked on over to the car rental agency 0:01:36.600 --> 0:01:38.960 whatever you picked up our car. Actually it was a 0:01:39.000 --> 0:01:41.920 two yet a raw four, which was just told that 0:01:41.959 --> 0:01:43.720 I got to drive around and kind of try out 0:01:43.720 --> 0:01:46.119 because I was kind of big on those. It served 0:01:46.200 --> 0:01:48.040 us well while we were driving around. 0:01:47.880 --> 0:01:48.440 That kind of thing. 0:01:48.640 --> 0:01:52.320 But here's the thing. When it came to returning that 0:01:52.480 --> 0:01:55.960 car back to the Denver Airport, we were getting pretty 0:01:56.000 --> 0:01:59.280 low on gas, and rather than stop at the Costco, 0:01:59.320 --> 0:02:02.000 which we really saw when we're like, oh that's the 0:02:02.000 --> 0:02:04.560 place to get gas, because of course we're Costcome members, 0:02:05.320 --> 0:02:07.640 instead we just drove straight up to the airport and 0:02:07.880 --> 0:02:10.639 drop the car off with an almost empty tank. Who 0:02:10.639 --> 0:02:13.280 are you do I lose my frugality, my frugal card. 0:02:13.400 --> 0:02:13.680 Yeah? 0:02:13.720 --> 0:02:14.720 Do I get that taken away? 0:02:14.720 --> 0:02:15.600 Had it over right now? 0:02:16.200 --> 0:02:19.200 That's ridiculous. What someone How much was gas? And how 0:02:19.240 --> 0:02:21.560 much were they charge? Because typically when when you do 0:02:21.639 --> 0:02:24.160 this paying a premium. You're paying a massive premium for 0:02:24.240 --> 0:02:26.240 every gallon they have to fill that car with. So 0:02:26.639 --> 0:02:29.080 you could just cost yourself like forty fifty bucks. 0:02:29.280 --> 0:02:30.320 No, well not that much. 0:02:30.360 --> 0:02:32.639 So it was it can be like three dollars a 0:02:32.680 --> 0:02:35.000 gallon difference, dude, if it's low, and it was a 0:02:35.000 --> 0:02:35.960 couple of dollars it was. 0:02:36.320 --> 0:02:39.079 Yeah, So I think gas around then in Denver was 0:02:39.120 --> 0:02:41.800 something like three a little over three dollars per gallon, 0:02:42.040 --> 0:02:44.160 and then they ended up charging us over five dollars 0:02:44.200 --> 0:02:46.079 per gallon, so it's you know, a little bit over 0:02:46.120 --> 0:02:48.760 a two dollars difference. So here's the rest of the story, 0:02:48.840 --> 0:02:51.400 which which was the hope, and there's more. We were 0:02:51.440 --> 0:02:53.640 a little bit late, so we were pressed on time, 0:02:54.400 --> 0:02:56.799 and so you don't want to miss a fly. Could 0:02:56.880 --> 0:03:00.720 have been had I stopped take the time to fill 0:03:00.760 --> 0:03:02.760 it up myself in order to get the absolute best 0:03:02.760 --> 0:03:05.480 price all on a gallon of gas. Well, if that 0:03:05.520 --> 0:03:07.880 caused us to miss our flight. Kate's getting a little 0:03:07.880 --> 0:03:10.520 stressed and because I saw the costco and I was like, obay, 0:03:10.560 --> 0:03:12.000 that's where we need to stop and get gas. And 0:03:12.040 --> 0:03:14.880 she's like, we are not stopping to get gas we 0:03:14.919 --> 0:03:16.080 are going straight to the airport. 0:03:16.160 --> 0:03:18.400 Well, the problem was stopping at Costco for gas is 0:03:18.400 --> 0:03:20.320 that it can often take a lot of extra time 0:03:20.360 --> 0:03:21.720 because of the line, which is. 0:03:21.760 --> 0:03:23.760 Where we would have stopped. And I think that one 0:03:24.600 --> 0:03:27.400 would have cost us because we would have ended up 0:03:27.400 --> 0:03:29.520 missing the flight. All right, Okay, I can and from 0:03:29.520 --> 0:03:32.640 my wife sanity because she you know, and here's here's 0:03:32.639 --> 0:03:34.519 what it's worth a lot. It's totally worth it. And 0:03:34.560 --> 0:03:37.560 the fact that if you're looking at say this, three 0:03:37.600 --> 0:03:40.560 dollars a gallon versus five dollars a gallon and the 0:03:40.600 --> 0:03:42.560 little over ten gallons that they had to fill up. 0:03:42.600 --> 0:03:46.280 So it's not a fifty dollars conversation, truly, what is it. 0:03:46.320 --> 0:03:48.600 It's a twenty dollars conversation. So would you be willing 0:03:48.640 --> 0:03:51.720 to spend twenty bucks to not have the additional stress 0:03:51.800 --> 0:03:53.560 to not miss your flight to you know, make your 0:03:53.600 --> 0:03:57.040 significant other happy? For me, dude, it was worth every dollar. 0:03:57.040 --> 0:03:59.560 I'd never so I'd never actually done that before either, 0:04:00.000 --> 0:04:02.160 But it felt, really I felt like if I felt 0:04:02.160 --> 0:04:04.480 like mister fancy pants, I just pulled on up. And 0:04:04.680 --> 0:04:07.440 I granted it was because we're short on short on time. 0:04:07.480 --> 0:04:08.440 If we had more time. 0:04:08.920 --> 0:04:11.480 I totally would have It would feel so amptithetical to 0:04:11.520 --> 0:04:13.120 everything that exists inside of me. 0:04:13.200 --> 0:04:15.360 It felt a little bit weird, but I thought, this 0:04:15.440 --> 0:04:18.400 is pretty nice not having to actually stop, Like, uh, 0:04:18.520 --> 0:04:18.719 are you. 0:04:18.720 --> 0:04:19.760 Gonna make this a regular habit? 0:04:19.800 --> 0:04:21.840 Then I shouldn't know. 0:04:23.960 --> 0:04:25.599 But there are certain things that you're less willing to do. 0:04:25.680 --> 0:04:27.520 Like some things are worth convenience. This is not one 0:04:27.520 --> 0:04:29.359 of them. Popping in and pumping the gas is like 0:04:29.880 --> 0:04:32.400 not terribly inconvenient. So I would say, if you if 0:04:32.400 --> 0:04:34.880 it was between you missing your flight and doing this, 0:04:35.000 --> 0:04:36.760 that's one thing. But if you're gonna start doing this 0:04:36.800 --> 0:04:38.599 on the rag and become some sort of fancy pants 0:04:38.680 --> 0:04:40.599 guy who pays five bucks at a gallon for gas 0:04:40.680 --> 0:04:43.159 without needing to, I'm gonna say, then your frugal card 0:04:43.200 --> 0:04:43.599 is a mistake. 0:04:43.680 --> 0:04:46.200 What I should have done was earlier on in the trip, 0:04:46.200 --> 0:04:47.920 even the day before. I should have filled up because 0:04:47.920 --> 0:04:49.640 I hadn't filled it up at all, and we stopped 0:04:49.640 --> 0:04:52.000 at a safe way because we're frugal, and we were 0:04:52.000 --> 0:04:54.800 cooking breakfast at home at the loft that we were running. 0:04:54.880 --> 0:04:57.320 That's because that's how we roll. It's a much better 0:04:57.560 --> 0:04:59.960 least in some contexts, I guess, but I should have 0:05:00.040 --> 0:05:03.400 stopped and filled up gas and at least they would 0:05:03.440 --> 0:05:05.920 have only needed to charge me for like four gallons 0:05:05.960 --> 0:05:08.080 or five gallons or something as opposed to almost the 0:05:08.080 --> 0:05:11.000 whole tank. Yeah, anyway, I thought that was worth sharing 0:05:11.160 --> 0:05:13.640 because it was something I've never done before, which is 0:05:13.839 --> 0:05:15.960 the rental company filled it up for us. 0:05:16.040 --> 0:05:18.200 Yeah, and you know what, we all have things where 0:05:18.279 --> 0:05:20.400 we're in a hurry, or something happens, or there's traffic, 0:05:20.480 --> 0:05:22.120 and we can't optimize everything. 0:05:22.200 --> 0:05:23.600 So I wouldn't make ourself. 0:05:23.360 --> 0:05:24.960 Up with the colts. Just don't get used to this. 0:05:25.040 --> 0:05:27.279 That's so I'm gonna say it was nice. 0:05:28.760 --> 0:05:30.200 We don't travel enough for that to be like a 0:05:30.240 --> 0:05:31.119 frequent thing. Anyway. 0:05:31.200 --> 0:05:32.720 Yeah, it was a nice little slurge. 0:05:32.760 --> 0:05:35.680 Okay, a listening on mat, let's get to the Friday 0:05:35.680 --> 0:05:38.120 flight for this week the sampling of stories we found interesting. 0:05:38.360 --> 0:05:41.960 Let's start by talking about the American dream. It's more 0:05:41.960 --> 0:05:44.880 expensive than ever. This is according to a new Go 0:05:44.920 --> 0:05:49.120 Banking rates analysis. Basically, they found that inflation has made 0:05:49.160 --> 0:05:53.039 it far more expensive to live the quintessential American. 0:05:52.760 --> 0:05:53.760 Lifestyle so familiar. 0:05:54.120 --> 0:05:54.480 I don't know. 0:05:54.480 --> 0:05:56.400 Do they talk about the dream in other countries, is 0:05:56.440 --> 0:05:59.960 there like the Botswana and dream or. 0:06:00.200 --> 0:06:01.360 The chicken in every pot. 0:06:01.440 --> 0:06:03.039 I don't know he made up. I don't know. 0:06:03.080 --> 0:06:05.880 I mean, but in America we have this American dream. 0:06:05.920 --> 0:06:09.880 The people want to own a house, white picket fence, 0:06:10.760 --> 0:06:13.280 two cars in the driveway, which I'd say one car 0:06:13.320 --> 0:06:15.760 of the driveways are better gold aft. But now the 0:06:15.839 --> 0:06:18.719 American dream costs roughly one hundred and fifty thousand bucks 0:06:18.760 --> 0:06:21.960 a year on average, although where you live has a 0:06:21.960 --> 0:06:24.080 massive impact on the actual cost of being able to 0:06:24.160 --> 0:06:27.200 afford that kind of typical stock American lifestyle. Of course, Hawaii, 0:06:27.240 --> 0:06:31.839 California more expensive than living in Mississippi or Arkansas, for instance. 0:06:32.720 --> 0:06:34.120 It makes me think of that as you know, that 0:06:34.160 --> 0:06:37.360 disease I'm sorry joke where he's like he's a parent 0:06:37.480 --> 0:06:40.240 or he's a kid of immigrants, and so he knows 0:06:40.279 --> 0:06:42.599 something about immigrants, and he's like, oh yeah. The government 0:06:42.839 --> 0:06:44.640 is like, oh hey you yeah, you yeah, you can 0:06:44.640 --> 0:06:48.040 come to America, but you got to live in Alabama 0:06:48.720 --> 0:06:50.320 because nobody wants to live in Alabama. 0:06:50.360 --> 0:06:50.919 That's not true. 0:06:50.960 --> 0:06:53.120 Well, he's just talking about it from a where he 0:06:53.200 --> 0:06:56.799 wanted to live standpoint. I've got nothing against the more affordable. 0:06:56.839 --> 0:06:58.320 Of course, I'm going to encourage folks to move to 0:06:58.360 --> 0:07:00.159 the states that are more affordable. Your dollars gonna go 0:07:00.240 --> 0:07:00.640 much further. 0:07:00.880 --> 0:07:03.400 Right, think about Arkansas, man likes so underrated from like 0:07:03.400 --> 0:07:07.240 an outdoorsy perspective as it, Yeah, I don't like by 0:07:07.240 --> 0:07:09.119 the thozarks Man like some of the best mountain biking 0:07:09.120 --> 0:07:09.920 in the countries in. 0:07:09.960 --> 0:07:11.880 Yeah, Arkansas, so sounds awesome. 0:07:11.920 --> 0:07:14.760 Don't hate on the low cost of living spots, especially 0:07:14.880 --> 0:07:17.600 right when you think about how much the cost of 0:07:17.640 --> 0:07:19.640 the American dream has gone up, it's like thirty six 0:07:19.680 --> 0:07:22.320 percent increase over the past decade. But then there's a 0:07:22.320 --> 0:07:24.120 flip side of that, Matt. I think sometimes those things 0:07:24.160 --> 0:07:26.480 make all the headlines and it's like, well, I guess 0:07:26.560 --> 0:07:30.200 nobody can afford the American dream anymore. Well, median household 0:07:30.240 --> 0:07:32.960 income has gone up by forty seven percent over the 0:07:33.000 --> 0:07:37.480 same time period, so household income has outpaced the rising 0:07:37.520 --> 0:07:40.640 costs of affording that American dream. So it's important to 0:07:40.640 --> 0:07:42.200 put that in perspective. It makes me think of like 0:07:42.200 --> 0:07:45.160 when we talk about headline credit card debt and it's like, oh, man, 0:07:45.280 --> 0:07:47.480 past a trillion dollars. Now it's past one point one 0:07:47.560 --> 0:07:50.560 trillion dollars. Well, what is it adjusted for inflation? And 0:07:50.680 --> 0:07:52.880 is it actually as bad as the headline number seems. 0:07:52.920 --> 0:07:54.840 You see a lot of doom loom headlines and you 0:07:54.880 --> 0:07:57.720 and I obviously would prefer to see zero dollars in 0:07:57.840 --> 0:08:01.120 credit card debt for all Americans. But it's maybe not 0:08:01.200 --> 0:08:02.760 quite as bad as people make it out to be. 0:08:03.280 --> 0:08:05.200 And this number, by the way, includes maxing out your 0:08:05.200 --> 0:08:07.160 for OW and K and your college savings plan for 0:08:07.200 --> 0:08:07.679 your kids. 0:08:07.960 --> 0:08:09.520 That's a part of the American dream that I can 0:08:09.560 --> 0:08:10.160 get behind. 0:08:09.920 --> 0:08:13.680 It, Yes, exactly, except for maybe the college savings plan 0:08:13.760 --> 0:08:15.440 for your kids. Maybe we switched out for the roth 0:08:15.480 --> 0:08:17.880 Irey instead, But that's what the four one k's for. Yeah, 0:08:17.920 --> 0:08:20.520 well we want you to do both. Yeah, and in 0:08:20.520 --> 0:08:23.120 life is expensive. The other thing to mention, too, Matt, 0:08:23.160 --> 0:08:25.920 is we've all got different dreams, not one static reality 0:08:25.960 --> 0:08:28.360 that we're all shooting for. And I guess my thought 0:08:28.480 --> 0:08:30.520 is that we still live in a country that makes 0:08:30.720 --> 0:08:34.360 our ability to live out our dreams of what our 0:08:34.400 --> 0:08:37.439 individualistic version of that American dream. We live in a 0:08:37.480 --> 0:08:40.440 country that makes it exceedingly possible for a large segment 0:08:40.440 --> 0:08:43.160 of the population. Although of course, not everyone to the 0:08:43.200 --> 0:08:44.040 exact same extent. 0:08:44.120 --> 0:08:46.080 That's true. Yeah, so would you move in order to 0:08:46.120 --> 0:08:48.160 achieve that American dream, Joel? If you didn't, if you 0:08:48.160 --> 0:08:48.480 didn't have. 0:08:48.480 --> 0:08:50.560 It depends on It depends on where I'm being asked 0:08:50.559 --> 0:08:52.360 to move. To a certain extent, we did move for 0:08:52.480 --> 0:08:56.000 its true a couple of years ago. But I bring 0:08:56.000 --> 0:08:59.000 that up because relocating it could significantly drive down the 0:08:59.040 --> 0:09:01.880 price of the most expensive things in your life, like 0:09:01.920 --> 0:09:05.079 housing or insurance, the cost of food, which could meaningfully 0:09:05.200 --> 0:09:08.360 reduce your overall cost of living. We've seen that happen 0:09:08.400 --> 0:09:11.640 more and more in our post pan world, and it's 0:09:11.679 --> 0:09:15.600 helped some folks basically keep like a high flute and 0:09:15.800 --> 0:09:19.520 paying job like a Silicon Valley paycheck while living let's say, 0:09:19.520 --> 0:09:21.559 on a Tennessee budget, which sounds awesome. 0:09:21.600 --> 0:09:22.240 Yeah you remember that. 0:09:22.240 --> 0:09:25.280 I mean that was commonplace for real while there in 0:09:25.320 --> 0:09:27.960 the right after the pandemic hit exactly. But it's like 0:09:28.080 --> 0:09:30.440 Facebook's like, we'll keep employing you. You can live wherever 0:09:30.480 --> 0:09:32.000 you want because the office is closed. 0:09:32.080 --> 0:09:34.760 Except for the fact that it's starting to cut both 0:09:34.840 --> 0:09:38.480 ways working from home geographic arbitrage. Employers are wising up 0:09:38.480 --> 0:09:39.920 because you might be able to keep your high paying 0:09:40.000 --> 0:09:42.640 job while moving to a cheaper location. But your boss 0:09:42.920 --> 0:09:47.160 they might also look for cheaper employee options remotely as well, 0:09:47.440 --> 0:09:50.120 so keep that in mind. It cuts both ways. This 0:09:50.160 --> 0:09:52.360 trend has been happening for a while now, it's growing 0:09:52.840 --> 0:09:56.600 and this isn't just a state to state sort of competition. 0:09:56.800 --> 0:09:59.560 Either employers or you know, or they're hiring less expensive 0:09:59.559 --> 0:10:02.880 employee in other countries as well. I mean, I think 0:10:02.880 --> 0:10:05.080 we're all familiar with just the different call centers that 0:10:05.160 --> 0:10:07.840 are not in the States. So let's just not get 0:10:07.920 --> 0:10:12.160 too comfortable with the maybe abundant job market that we've 0:10:12.160 --> 0:10:13.880 all a lot of folks have been experiencing over the 0:10:13.920 --> 0:10:16.400 past several years. As the job market cools, I think 0:10:16.440 --> 0:10:18.960 it's a good idea to keep your savings stout, make 0:10:18.960 --> 0:10:21.160 sure you've got that emergency fund, but keep your skills 0:10:21.160 --> 0:10:23.400 in top shape as well. Make sure your resume is 0:10:23.440 --> 0:10:25.480 looking good at least know where it is. That way 0:10:25.840 --> 0:10:27.160 you can update it if need be. 0:10:27.240 --> 0:10:29.200 And we have said this multiple times on the show, 0:10:29.240 --> 0:10:31.960 and I think it's important to reiterate Matt that when 0:10:32.000 --> 0:10:36.320 people go into the office, oftentimes it is harder to 0:10:36.440 --> 0:10:38.520 fire that person. I mean I guess if you're going 0:10:38.559 --> 0:10:40.000 to the office and you're just napping all day, then 0:10:40.000 --> 0:10:42.560 it's probably really easy to fire you. But the more 0:10:42.600 --> 0:10:45.360 FaceTime you're able to show to your fellow coworkers and 0:10:45.480 --> 0:10:48.560 to the higher ups, they're more likely you are to 0:10:48.720 --> 0:10:51.880 get a raise to keep your job to you're going 0:10:51.920 --> 0:10:53.199 to be You're not gonna be the first person on 0:10:53.240 --> 0:10:54.959 the shopping block. If you're only on a zoom call 0:10:55.000 --> 0:10:57.360 once a month, there's a higher chance that you are 0:10:57.400 --> 0:11:00.200 not the person who's staying when those job cuts come about. 0:11:00.240 --> 0:11:03.559 So even if you're not required to go into the office, 0:11:03.600 --> 0:11:05.199 you might want to say, yeah, I'm going to do 0:11:05.240 --> 0:11:07.439 it a couple times a week, just because that's good 0:11:07.720 --> 0:11:10.640 for me and securing my future paycheck. There's also a 0:11:10.679 --> 0:11:13.679 downside to job hopping, Matt. There was an article about this, 0:11:14.120 --> 0:11:16.280 basically one of the downside. I don't really thought about 0:11:16.320 --> 0:11:19.560 this that much, but we talk about taking a different 0:11:19.600 --> 0:11:21.800 job to increase your income. That's awesome, But one of 0:11:21.800 --> 0:11:24.560 the downsides potentially is accumulating less in your four oh 0:11:24.559 --> 0:11:27.800 one K. And that's partly because workers tend to cash 0:11:27.800 --> 0:11:30.160 out their retirement accounts when they leave, which don't like 0:11:30.200 --> 0:11:33.040 that we hate that it's awful, But if you quit 0:11:33.080 --> 0:11:36.640 too soon, you might also not reach the vesting requirement. 0:11:36.720 --> 0:11:39.440 Different jobs have different lengths of time before you're able 0:11:39.480 --> 0:11:42.720 to actually get the match that's promised to you. So 0:11:42.960 --> 0:11:44.880 if you leave after a year and a half in 0:11:44.880 --> 0:11:47.600 the vesting period is two years, sorry, you just lost 0:11:47.640 --> 0:11:50.360 all the matching money that your employer was going to 0:11:50.400 --> 0:11:52.680 give you. So we would just say pay attention to 0:11:52.720 --> 0:11:56.559 that and consider your employment timeline accordingly, and if you 0:11:56.600 --> 0:11:59.600 do leave your job, keep your four one K intact please. 0:12:00.320 --> 0:12:02.800 It's the numbers are dismal, Matt, when it comes to 0:12:03.040 --> 0:12:05.840 people leaving their job and then just like rating their 0:12:05.840 --> 0:12:08.000 retirement account like it's a piggy bank. Keep it in 0:12:08.000 --> 0:12:09.840 the four on K with your employer, or roll it 0:12:09.880 --> 0:12:11.880 over into an IRA with one of the low cost 0:12:11.960 --> 0:12:13.880 companies if it's not with one of those those low 0:12:13.920 --> 0:12:18.120 cost companies. Already, we have an article about Capitalize which 0:12:18.120 --> 0:12:21.160 is will help you do those rollovers for free, that 0:12:21.200 --> 0:12:21.719 we'll link to. 0:12:21.679 --> 0:12:22.319 In the show notes. 0:12:22.360 --> 0:12:25.000 But this is a problem, and it's a problem I 0:12:25.000 --> 0:12:26.959 hadn't really thought too much about, Matt. The fact that 0:12:27.000 --> 0:12:30.280 people going to work somewhere else might mean could mean 0:12:30.559 --> 0:12:32.760 kind of some slippage when it comes to the traction 0:12:32.880 --> 0:12:35.439 you're gaining and saving investing for your future. 0:12:35.360 --> 0:12:35.800 That's right. 0:12:35.920 --> 0:12:39.280 So while we are covering jobs, let's talk about earning 0:12:39.320 --> 0:12:42.000 more money, which I think most of us are keen on. 0:12:42.280 --> 0:12:45.400 In a way to do that is via the extremely 0:12:45.520 --> 0:12:51.360 underrated skill of emotional intelligence. This isn't like breaking news necessarily, 0:12:51.440 --> 0:12:54.000 but this is informative. There is new research out that 0:12:54.000 --> 0:12:57.360 shows that there is a linear relationship between your EQ, 0:12:58.440 --> 0:13:03.800 so your using emotional intelligence and emotion quotient interchangeably here, 0:13:03.920 --> 0:13:06.120 but that there is a linear relationship between your EQ 0:13:06.600 --> 0:13:09.720 and your salary. People with a higher EQ tend to 0:13:09.800 --> 0:13:13.080 earn almost thirty thousand dollars more per year than folks 0:13:13.120 --> 0:13:17.120 who have a low emotional intelligence. So what should you 0:13:17.160 --> 0:13:21.400 be looking to improve? Evidently four areas make up your EQ, 0:13:22.280 --> 0:13:24.120 and they are I'm going to let's see these out here. 0:13:24.200 --> 0:13:29.480 Self awareness, social awareness, self management, and relationship management. That's 0:13:29.480 --> 0:13:31.679 our relationship doing today, Matt, I think it's doing pretty good. 0:13:32.600 --> 0:13:34.520 How do you think our relationship is doing? 0:13:34.600 --> 0:13:37.640 I feel great about us as friends. Let's promote each other. 0:13:38.880 --> 0:13:40.679 You're not going to be able to improve all these 0:13:40.720 --> 0:13:44.599 areas like overnights instantaneously. I think some certain aspects of 0:13:44.640 --> 0:13:47.000 it are going to be easier for some than others. 0:13:47.400 --> 0:13:50.800 But realizing and improving how it is that you express 0:13:50.800 --> 0:13:53.000 your emotions and how you feel in the workplace, I 0:13:53.000 --> 0:13:55.640 think that can go a long way towards you making 0:13:55.640 --> 0:13:58.280 more money at least over time. And those soft skills 0:13:58.320 --> 0:14:00.280 are they're just as important as the hard ones that 0:14:00.320 --> 0:14:02.400 you've worked years to achieve. Like we focus on the 0:14:02.440 --> 0:14:06.040 degrees and the different skills and certifications, but just how 0:14:06.080 --> 0:14:07.959 it is that we work with folks in the office. 0:14:08.440 --> 0:14:12.440 With folks especially too, with varying in different backgrounds, can 0:14:12.640 --> 0:14:15.120 go a really long way in your ability to manage 0:14:15.160 --> 0:14:16.520 well in order to be a good team player. 0:14:16.559 --> 0:14:20.240 Makes me think of an episode we did a while 0:14:20.280 --> 0:14:23.240 back with Gorik. He talked about the unspoken rules of 0:14:23.280 --> 0:14:25.520 workplace success, and is what he was talking about. So 0:14:25.600 --> 0:14:29.320 much of those unspoken rules were just kind of basic 0:14:29.960 --> 0:14:34.760 EQ sort of emotional intelligence stuff and not letting your 0:14:34.760 --> 0:14:36.480 emotions get out of hand, being able to rain them 0:14:36.520 --> 0:14:39.440 in and keep them in check, being thoughtful about the 0:14:39.480 --> 0:14:42.880 wording that you're using in emails. There's so many little 0:14:42.920 --> 0:14:46.120 small things that people pick up on over time, your bosses, 0:14:46.160 --> 0:14:49.360 your coworkers, and the value of learning how to control 0:14:49.400 --> 0:14:52.040 your temper. For instance, it could add up to thousands 0:14:52.080 --> 0:14:56.320 and thousands of dollars in income where or potentially losing 0:14:56.320 --> 0:14:58.080 your job. I guess if you can't control it at all. Yeah, 0:14:58.120 --> 0:14:58.800 Orskinse scenario. 0:14:58.920 --> 0:14:59.160 Yeah. 0:14:59.200 --> 0:15:01.960 So it's really really interesting stuff. And Matt, let's talk 0:15:01.960 --> 0:15:06.240 about another workplace trend. People thought the fire movement was hot. Well, 0:15:06.240 --> 0:15:08.680 it turns out that actually the opposite of fire is 0:15:08.760 --> 0:15:10.920 kind of hot right now that more workers are choosing 0:15:11.120 --> 0:15:14.480 to unretire. So they hit their retirement age and they 0:15:14.480 --> 0:15:17.520 were like, cool, I'm done with work, and then they said, wait, 0:15:17.760 --> 0:15:19.360 a couple of years later, maybe I'm ready to get 0:15:19.360 --> 0:15:22.000 back into the workforce. And so some research from Pew 0:15:22.520 --> 0:15:25.960 reports that Americans over seventy five are basically the hottest 0:15:26.080 --> 0:15:28.800 segment of the workforce right now. A decent chuck of 0:15:28.960 --> 0:15:31.280 boomers basically said, I'm gonna quit, but I'm either not 0:15:31.320 --> 0:15:33.600 financially or emotionally ready to completely stop working, So I'm 0:15:33.680 --> 0:15:35.840 going back to the well, I'm going to go get 0:15:35.880 --> 0:15:38.560 a job again. And some of this is actually because 0:15:38.600 --> 0:15:42.000 many older Americans expect to live longer according to Pew, Like, 0:15:42.040 --> 0:15:45.000 so that's a good thing. They're saying, Listen, I'm seventy five, 0:15:45.320 --> 0:15:47.280 but I still feel young, and I think I'm gonna 0:15:47.320 --> 0:15:49.920 live till ninety five, So why not work till I'm 0:15:50.000 --> 0:15:52.160 eighty instead of bagging to work this early and having 0:15:52.160 --> 0:15:54.680 twenty years of no work at all. And I think 0:15:54.680 --> 0:15:56.880 if you like what you do, at least that's a 0:15:56.920 --> 0:15:59.640 good thing. I think the flip side of this, though, Matt, 0:15:59.680 --> 0:16:02.040 for young listeners, which is most of the folks listening 0:16:02.080 --> 0:16:04.520 to how to money, is to save and invest, like 0:16:04.560 --> 0:16:07.760 you're going to retire much earlier than age eighty, so 0:16:08.320 --> 0:16:10.360 not necessarily planning like, oh cool, this is a trend. 0:16:10.360 --> 0:16:12.000 I guess I'm going to work until I'm eighty two, 0:16:12.320 --> 0:16:14.760 because while you might get to do what you want 0:16:14.800 --> 0:16:16.280 to do for as long as you want to do it, 0:16:16.480 --> 0:16:19.840 that's amazing, many older workers also find that that isn't 0:16:19.840 --> 0:16:22.120 the case. So I would just say, like, yeah, hope 0:16:22.120 --> 0:16:24.160 for the best, but plan for bumps in the road, 0:16:24.360 --> 0:16:27.120 and that planning for bumps in the road is investing 0:16:27.160 --> 0:16:28.640 a decent chunk of your income so that you have 0:16:28.680 --> 0:16:31.800 at least optionality when it comes to those later working years, 0:16:31.840 --> 0:16:35.360 and I like the idea of trending back towards working 0:16:35.440 --> 0:16:37.480 at least part time as you get older. There's a 0:16:37.480 --> 0:16:39.440 sense of meaning, there's a social income, right, There's a 0:16:39.480 --> 0:16:41.680 lot of good stuff that comes with work, at least 0:16:41.720 --> 0:16:44.200 if it's work that you're choosing to do on purpose. Totally, 0:16:44.240 --> 0:16:47.000 but you just don't plan on working until you die 0:16:47.080 --> 0:16:49.560 and not invest a dime because exactly that's going to 0:16:49.640 --> 0:16:49.840 leave you. 0:16:49.840 --> 0:16:50.600 With zero choices. 0:16:50.720 --> 0:16:52.360 Yeah, and just the fact too that more folks are 0:16:52.680 --> 0:16:54.560 that they are returning to work. It just kind of 0:16:54.640 --> 0:16:57.600 underlines I think our view of work, which is that 0:16:57.680 --> 0:16:59.840 the ability for you to work and provide value into 0:16:59.840 --> 0:17:02.200 the world, that that in it of itself is fulfilling. 0:17:02.320 --> 0:17:04.400 And if you're able to do something that you find fulfilling, 0:17:04.720 --> 0:17:07.919 oftentimes you are compensated for that. And so it's a 0:17:07.960 --> 0:17:10.880 combination of that. But also I think maybe less emphasis 0:17:10.920 --> 0:17:13.679 was placed, maybe with the boomer generation on some of 0:17:13.720 --> 0:17:16.399 the things outside of work that also bring fulfillment. So 0:17:16.440 --> 0:17:18.800