WEBVTT - Friday Flight - Ridiculous Car Refinancing, Occupation Consternation, & Ads Everywhere #1059 0:00:00.040 --> 0:00:03.040 Welcome to How to Money. I'm Joel, I'm Matt. Today 0:00:03.120 --> 0:00:08.039 we're talking ridiculous, car refinancing, occupation, consternation, and adds everywhere. 0:00:26.680 --> 0:00:29.480 That's right, buddy. This is our Friday flight where we 0:00:29.560 --> 0:00:32.240 cover the best headlines, the news that's going to pertain 0:00:32.280 --> 0:00:34.920 to your personal finances, only the most, only the best, 0:00:34.960 --> 0:00:37.440 only the finest. This is the cream of the crop. 0:00:37.600 --> 0:00:39.360 Before we get to all that, though, a quick little 0:00:39.440 --> 0:00:42.159 update from I think it was Greg who wrote in, 0:00:42.200 --> 0:00:45.320 and he was talking about the recision period that states 0:00:45.360 --> 0:00:49.360 allow specifically for time shares. So we recently talked about 0:00:49.360 --> 0:00:52.440 how you were like laying whether or not you're going 0:00:52.479 --> 0:00:55.240 to go to the timeshare pitch. You said no because 0:00:55.400 --> 0:00:57.960 ultimately they said your wife's gotta be there. I was 0:00:57.960 --> 0:01:00.000 like for it, and they were like, no, you're not 0:01:00.120 --> 0:01:02.000 not unless your wife comes. And I'm like, ah, man, 0:01:02.160 --> 0:01:05.199 well she doesn't changes the game, which makes sense. Yeah, 0:01:05.240 --> 0:01:06.920 it totally makes sense to me, right because if it's 0:01:06.959 --> 0:01:11.000 just one person that's whole that seems like a financial optimizer, 0:01:11.160 --> 0:01:13.319 it's that's a divide and conquer kind of move there, right, 0:01:13.400 --> 0:01:16.839 Like like you are, You're you're approaching this very strategically, 0:01:16.920 --> 0:01:18.520 what are they doing it like that? But you pointed 0:01:18.560 --> 0:01:20.560 out if there's two people, is that if you go 0:01:20.640 --> 0:01:22.959 alone and then you go back to the room and 0:01:23.000 --> 0:01:25.600 your spouse is like, what did you just sign up for? Yeah, 0:01:25.680 --> 0:01:28.119 that then those people are more likely the cancels, whereas 0:01:28.160 --> 0:01:31.119 if you make the decision together, you're unlikely to cancel. 0:01:31.160 --> 0:01:33.520 The time, there's like a commit there's something that happens 0:01:33.520 --> 0:01:35.840 from a commitment standpoint where there's two people, right, like 0:01:36.200 --> 0:01:37.679 so on, if it was just you, it would have 0:01:37.720 --> 0:01:41.000 been like the optimizer. But with two people that spend 0:01:41.040 --> 0:01:43.680 that amount of time and energy into it, it feels 0:01:43.720 --> 0:01:46.959 like you've you've started something, You've run through the gauntlet. Yeah, 0:01:47.200 --> 0:01:49.800 like you've created relationships, you started to dream about what 0:01:49.800 --> 0:01:52.440 this scould look like together. Yeah, there's like there's a 0:01:52.480 --> 0:01:54.600 sun cost fallacy involved right where it's just like, well, 0:01:54.600 --> 0:01:57.000 we spent all that time doing that and you are 0:01:57.160 --> 0:01:59.080 you're only looking at that as opposed to thinking about 0:01:59.080 --> 0:02:01.120 what this is gonna what this will cost you in 0:02:01.160 --> 0:02:03.640 the future, And that's at the core of I think 0:02:03.640 --> 0:02:06.800 what they're trying to Yeah, promote Actually, I spent two 0:02:06.800 --> 0:02:09.120 hours here and I signed on the dotted line. I 0:02:09.160 --> 0:02:11.600 guess we're committed, and probably a lot of people don't 0:02:11.600 --> 0:02:14.520 even know about the recision period that exists, depending on 0:02:14.560 --> 0:02:16.880 what state you're in. It's somewhere between three and fifteen 0:02:17.000 --> 0:02:19.720 days after you've signed on the dotted line for that 0:02:19.800 --> 0:02:22.760 time share. So you do have we actually let's link 0:02:22.800 --> 0:02:24.320 to that in the show notes, OK, for folks out 0:02:24.360 --> 0:02:27.520 there to know that you do have a cooling off period, 0:02:27.680 --> 0:02:30.080 or you can say, yeah, I actually don't want to 0:02:30.080 --> 0:02:32.840 do that, which is I think really important, especially because 0:02:32.840 --> 0:02:35.240 that is such a highly I think it's an emotional 0:02:35.440 --> 0:02:38.800 decision that's made emotionally so much of the time, because 0:02:39.080 --> 0:02:43.639 you understandably, the human instinct is you kind of want 0:02:43.639 --> 0:02:45.520 to please the person who's trying to sell you the 0:02:45.560 --> 0:02:47.480 time share. They're spending that much time with you, you don't 0:02:47.480 --> 0:02:49.919 want to disappoint them. Right, you're sharing a meal together. 0:02:49.960 --> 0:02:51.760 They were probably really nice to you, and so you're like, 0:02:51.800 --> 0:02:53.639 all right, yeah, I and we'll get to take some vacations. 0:02:53.720 --> 0:02:57.000 Will be great. But time shares for most people don't 0:02:57.000 --> 0:02:59.480 make much financial sense. And even if you really want 0:02:59.480 --> 0:03:01.720 a timeshare, there are much cheaper ways to get a 0:03:01.760 --> 0:03:05.000 timeshare than paying full freight at one of those presentations. 0:03:05.200 --> 0:03:07.160 That's right, So Joe, let's kick things off. You want 0:03:07.200 --> 0:03:11.040 to talk about affordable vehicles. Those don't exist anymore, man, 0:03:11.639 --> 0:03:13.360 I think that's an oxymoron if I've ever heard one. 0:03:13.360 --> 0:03:17.520 There are some out there. I get very few, very few. Yeah. 0:03:18.000 --> 0:03:20.240 I actually was looking up at the value of our 0:03:20.280 --> 0:03:22.320 minivan the other the other day, and I was like, oh, 0:03:22.520 --> 0:03:25.720 it's worth like less than six thousand dollars. Now it's affordable. 0:03:25.760 --> 0:03:28.000 It's basically hit that fully depreciated mark. I don't know 0:03:28.040 --> 0:03:29.480 that's going to go down to value very much. So 0:03:29.720 --> 0:03:32.959 there are some cheap cars. You just can't buy mine. Sorry, yeah, 0:03:33.000 --> 0:03:35.000 you need that thing. Man, What did you put for 0:03:35.080 --> 0:03:37.680 the condition? Because that's I know what I know. Oh, 0:03:37.760 --> 0:03:41.000 it's definitely not excellent. Okay, but did you do pretty 0:03:41.000 --> 0:03:43.680 good or did you do four? Oh no, probably whatever's 0:03:43.720 --> 0:03:47.040 in the middle. Yeah, that's pretty easy. Yeah, it's got 0:03:47.080 --> 0:03:49.080 some things in that. At this point, I want to 0:03:49.240 --> 0:03:51.160 I want to think that mine's an excellent condition, but 0:03:51.200 --> 0:03:53.040 I know it's not. Like in my heart it's an 0:03:53.040 --> 0:03:54.920 excellent condition, but there are certain things about it that 0:03:54.960 --> 0:03:57.080 I know are excellent. But then I know from an 0:03:57.080 --> 0:03:59.840 outsider's perspective, they would see all some of the busted 0:03:59.920 --> 0:04:02.360 up thing, some of the spray painted side view mirrors 0:04:02.600 --> 0:04:06.600 that creative fathers three on there in order for it 0:04:06.600 --> 0:04:08.880 to look slightly better. They might notice that, well, I 0:04:08.920 --> 0:04:13.160 think my sc it makes it sound so ratchet, which 0:04:13.160 --> 0:04:14.640 I think both of our fans probably are. At this one. 0:04:15.440 --> 0:04:18.360 I would say my six four Runner is in mint condition. 0:04:18.360 --> 0:04:21.000 I'd put that in excellent, but would be excellent. So 0:04:21.000 --> 0:04:23.480 how long will it stay that way? We'll see do 0:04:23.480 --> 0:04:25.760 you feel like it's already gone downhill since you've gotten 0:04:25.800 --> 0:04:27.599 it a little bit. I'm doing my best, though, But 0:04:27.600 --> 0:04:29.240 they kept it in a garage. I don't have space 0:04:29.320 --> 0:04:31.400 in a garage for two cars. I have a one 0:04:31.400 --> 0:04:34.880 car garage. People, what if you can clear everything out, 0:04:35.000 --> 0:04:38.119 squeeze both those suckers in there. I don't think it's possible, really, Yeah, okay, 0:04:38.120 --> 0:04:40.400 we can try one day. Okay, so I'll help you 0:04:40.440 --> 0:04:42.120 try it this weekend if you want. Let's talk about 0:04:42.120 --> 0:04:45.040 expensive cars. Though. We have cheap cars, but the average 0:04:45.040 --> 0:04:49.039 American is opting for really really expensive ones. And I'm 0:04:49.080 --> 0:04:52.440 over here reticent to spend you know, five figures on 0:04:52.480 --> 0:04:55.240 a car. But people are spending fifty k on average 0:04:55.240 --> 0:04:58.160 on new cars. That's the we've crossed that threshold now, 0:04:58.160 --> 0:05:01.240 it's insane. But because of high costs and high interest rates, 0:05:01.680 --> 0:05:04.320 this means people are paying more for cars than ever before, 0:05:05.200 --> 0:05:07.520 which means that the vast majority find themselves on like 0:05:07.560 --> 0:05:10.160 a debt treadmill for a really long time. And we've 0:05:10.160 --> 0:05:12.080 talked about this kind of ad nausea map, but there 0:05:12.120 --> 0:05:14.640 was a new there was some new stats that came 0:05:14.640 --> 0:05:19.800 out this week from Caribou who they help people refinance 0:05:19.839 --> 0:05:21.720 their loan and shop around and get a better deal, 0:05:22.000 --> 0:05:24.040 and they said that the most popular choice these days 0:05:24.040 --> 0:05:26.839 when people refinance a car loan is an eighty four 0:05:26.920 --> 0:05:30.880 month long loan, which I didn't know. I knew you 0:05:30.920 --> 0:05:32.560 could get that out on a new car. I didn't 0:05:32.600 --> 0:05:34.920 realize you could refinance into an eighty four month long loan. 0:05:34.960 --> 0:05:37.320 It's crazy. So let's say you get a new car, 0:05:37.520 --> 0:05:39.280 you're in it for a couple of years, and then 0:05:39.320 --> 0:05:42.960 you refinance again into another seven year loan. Yeah, maybe 0:05:43.080 --> 0:05:45.480 you're able to save some money every month, and maybe 0:05:45.600 --> 0:05:47.600 you lowered your interest rate. You've probably done both of 0:05:47.640 --> 0:05:49.599 those things, but it means you're going to be in 0:05:49.640 --> 0:05:51.280 the loan for even longer. Some of those folks are 0:05:51.279 --> 0:05:54.520 going to be in that like a car loan because 0:05:54.520 --> 0:05:56.840 they take one out and refinance for something like nine 0:05:56.880 --> 0:06:00.200 or ten years. It's crazy hard to really have them. Yeah, 0:06:00.200 --> 0:06:02.279 what's so the first thing I think of when I 0:06:02.279 --> 0:06:04.200 hear eighty four months? It makes me think of people 0:06:04.240 --> 0:06:07.120 who have like an eighteen month old. It's like, no, no, no, 0:06:07.160 --> 0:06:08.960 you need to go ahead and switch to my kids 0:06:09.279 --> 0:06:11.000 a year and a half. He's two years old. Like 0:06:11.279 --> 0:06:13.760 they're trying to obscure the fact of how long of 0:06:13.800 --> 0:06:16.400 a period this is, I think by saying something like 0:06:16.520 --> 0:06:19.120 eighty four months. But the journal actually had an article 0:06:19.160 --> 0:06:22.600 about how repomen are actually busier than ever. They're basically 0:06:23.520 --> 0:06:27.520 working around the clock repossessing vehicles where folks aren't making 0:06:27.520 --> 0:06:29.640 a payments, a dangerous job. I had a friend who 0:06:29.680 --> 0:06:32.520 did that for I think he still doesn't actually, and 0:06:32.680 --> 0:06:34.440 I believe it. He has a run ins man Like 0:06:34.480 --> 0:06:36.000 people do not like their car being taken out of 0:06:36.040 --> 0:06:37.520 their driveway in the middle of the night. But ye, 0:06:38.240 --> 0:06:40.520 when the payments aren't being made, this is going to 0:06:40.560 --> 0:06:42.560 take it is what happened. That's what you agree to 0:06:43.000 --> 0:06:46.880 and delinquencies on car loans are up across all income levels. 0:06:48.040 --> 0:06:50.560 But even with lower payments spread out over a longer 0:06:50.560 --> 0:06:52.640 period of time, way too many people are out there 0:06:53.200 --> 0:06:55.680 and they're unable to afford their ride. So just be 0:06:55.760 --> 0:06:58.080 careful when you are buying a car. You do not 0:06:58.240 --> 0:07:00.840 have to pay an arm and a leg in order 0:07:01.040 --> 0:07:03.560 to get a good one. And in that article as well, 0:07:03.960 --> 0:07:07.600 a fascinating stat was that home debt, so they had 0:07:07.600 --> 0:07:10.160 like different types of debt, so like obviously auto loan debt, 0:07:10.200 --> 0:07:12.320 but then they had home debt, right, so like your 0:07:12.360 --> 0:07:16.600 mortgage or home equity loans, they're down significantly. They're down 0:07:16.640 --> 0:07:19.520 something like fifty percent when looking at the same period 0:07:19.560 --> 0:07:22.040 of time, which is is just fascinating that it seems 0:07:22.040 --> 0:07:23.640 like something has changed in how it is that we 0:07:23.760 --> 0:07:25.640 view vehicles, which I kind of think is a good 0:07:25.640 --> 0:07:28.760 thing it. I guess one way to interpret the data 0:07:28.800 --> 0:07:31.040 is that more folks are seeing their vehicles more as 0:07:31.040 --> 0:07:35.160 a tool. They're seeing it as a more expendable thing. 0:07:35.600 --> 0:07:36.720 And I think some of them might have to do 0:07:36.760 --> 0:07:38.760 with the rise of uber and left right, like it's 0:07:38.800 --> 0:07:40.280 just a way to get from point A to point B, 0:07:40.360 --> 0:07:45.360 as opposed to maybe having your identity so tightly tied 0:07:45.480 --> 0:07:48.080 to a possession like that too, to something like a vehicle, 0:07:48.120 --> 0:07:52.600 which have just really fascinating. The fact that, yeah, mortgage delinquencies, 0:07:52.720 --> 0:07:56.960 home equity loan delinquencies are down about this like fifty percent, 0:07:57.200 --> 0:08:00.280 whereas auto loaned delinquencies are up fifty percent over the 0:08:00.280 --> 0:08:04.000 past fifteen years. Yeah. Crazy. Well, I mean I think, gosh, 0:08:04.080 --> 0:08:06.920 you want to keep a roof over your head stability, 0:08:07.080 --> 0:08:09.960 but it seems it's just interesting. Yeah, when you look 0:08:10.000 --> 0:08:11.280 at the same period of time, though, I think some 0:08:11.360 --> 0:08:13.760 of it also has to do with not to take 0:08:13.760 --> 0:08:16.560 it back to the pandemic, but stimmy checks, right, Like, 0:08:16.600 --> 0:08:19.560 we found ourselves with a lot more money in our banks. 0:08:19.880 --> 0:08:22.760 It wasn't so much money that you went and bought 0:08:23.000 --> 0:08:26.280 went on like a home shopping spree, but it was 0:08:26.280 --> 0:08:28.600 more than just like going to your local RII and 0:08:28.840 --> 0:08:30.960 getting a few new items. You're probably thinking, oh, I 0:08:31.000 --> 0:08:34.520 can handle a bigger payment in my life. It seems 0:08:34.559 --> 0:08:36.760 like taking on a not alone that you couldn't afford 0:08:36.840 --> 0:08:39.000 me have been like the happy medium for a lot 0:08:39.000 --> 0:08:42.600 of folks. Yeah, the activity du jure back in the Bay, Yeah, well, 0:08:43.160 --> 0:08:45.800 I mean I just yeah, I think when you're refinancing, 0:08:45.800 --> 0:08:49.079 the goal is should be not to pay the lowest 0:08:49.080 --> 0:08:52.840 amount in your monthly payment. It is to get rid 0:08:52.880 --> 0:08:55.120 of that loan as quickly as possible, or it should 0:08:55.160 --> 0:08:57.120 be so it's not like how little can I pay 0:08:57.160 --> 0:09:00.200 every month to get rid of this car payment? And 0:09:00.320 --> 0:09:02.880 who cares how long? It's how much can I pay 0:09:02.880 --> 0:09:04.320 in order to get rid of this car debt as 0:09:04.360 --> 0:09:06.800 soon as possible? That really should be the thinking. We're 0:09:06.880 --> 0:09:09.600 payment buyers in this country, right, and that's not a 0:09:09.600 --> 0:09:13.400 good thing. On another nefarious car financing note, Matt More, 0:09:13.400 --> 0:09:15.880 car dealers are talking up the ten thousand dollars annual 0:09:15.960 --> 0:09:18.560 tax break that you can snag when you buy a 0:09:18.600 --> 0:09:20.839 new car finished in the good old US of A. 0:09:21.480 --> 0:09:25.040 And this was infused into the Build Back No what 0:09:25.120 --> 0:09:26.960 is it called the One Big Beautiful Bill Act? Right? 0:09:27.040 --> 0:09:30.240 Build Back Better? That's all these BBB's, right, which just 0:09:30.320 --> 0:09:32.559 sounds so enticing when you're buying a new car and 0:09:32.559 --> 0:09:35.000 the FNI person is saying, hey, this is such a 0:09:35.040 --> 0:09:37.600 great deal, like you're going to get a tax break 0:09:37.720 --> 0:09:39.920 of the ten thousand dollars. Yeah, yeah, yeah, tax breaks. 0:09:39.920 --> 0:09:41.560 Look how great this is? And they're making it sound 0:09:41.600 --> 0:09:44.240 like it's the best thing since sliced bread. Holy callous. 0:09:44.280 --> 0:09:45.920 A lot of money, right, But it's kind of like 0:09:46.000 --> 0:09:49.960 the homeowner's tax break, right that many people don't actually get. 0:09:50.040 --> 0:09:52.400 Something like ten percent of homeowners actually get the tax break, 0:09:52.600 --> 0:09:55.000 but many more think they're getting a tax break for 0:09:55.360 --> 0:09:57.600 owning a home. And the truth is you're only going 0:09:57.640 --> 0:09:59.560 to get the highest annual tax break if you buy 0:09:59.600 --> 0:10:02.440 one hundred than fifty thousand dollars car. Finance is seven 0:10:02.440 --> 0:10:04.640 percent one hundred and fifty thousand dollars car. So who 0:10:04.800 --> 0:10:07.319 do those exist? I'm sure, yeah, of course they do. 0:10:07.440 --> 0:10:09.959 But like you're a psycho, if you're like or you're 0:10:10.000 --> 0:10:12.400 incredibly rich much you have much more money, yeah than 0:10:12.400 --> 0:10:14.840 the two of us. But on a forty thousand dollars 0:10:14.840 --> 0:10:17.280 new car purchase at the same interest rate, your tax 0:10:17.320 --> 0:10:19.680 savings would be a little over five hundred bucks. So 0:10:19.720 --> 0:10:21.480 think about that. Are you going to go buy a 0:10:21.520 --> 0:10:23.839 forty thousand dollars new car finance it at seven percent 0:10:23.840 --> 0:10:26.320 in order to save five hundred bucks a year? I mean, 0:10:26.320 --> 0:10:29.640 that would be foolhardy. You Also, you know, you don't 0:10:29.679 --> 0:10:32.319 qualify if you're single making more than one hundred thousand 0:10:32.320 --> 0:10:34.439 dollars or if you're married making more than two hundred 0:10:34.480 --> 0:10:36.959 thousand dollars, can't imagine buying one hundred and fifty thousand 0:10:36.960 --> 0:10:39.839 dollars car if you know that's where you're how much 0:10:39.880 --> 0:10:42.280 money you're earning. Also, a lot of makes and models 0:10:42.280 --> 0:10:45.120 don't qualify, so you got to check the vin first. 0:10:45.160 --> 0:10:47.840 You can do that on the NITSA website. But you know, 0:10:48.080 --> 0:10:50.480 while this tax break is better than nothing, I guess 0:10:50.559 --> 0:10:53.000 I think it's actually the offering the wrong kind of 0:10:53.000 --> 0:10:55.600 incentive to people, Matt to get Hey, yeah, finance that 0:10:55.640 --> 0:10:57.320 car so you can get a tax break for it. 0:10:57.400 --> 0:10:59.080 And really it's still a drop in the bucket of 0:10:59.080 --> 0:11:00.960 the cost of your new cars. So this is just 0:11:01.200 --> 0:11:03.520 bad math if you're buying a new car because you 0:11:03.520 --> 0:11:05.360 think you're gonna save a little bit of money on taxes. 0:11:05.440 --> 0:11:08.040 That's right, man. I wonder if we are now at 0:11:08.200 --> 0:11:11.120 a tipping point in the job market, because obviously sound 0:11:11.160 --> 0:11:14.559 like there tipping point. It was a popular book. Man. 0:11:14.600 --> 0:11:16.439 I'm thinking about like the post pandemic times, right, like 0:11:16.480 --> 0:11:19.360 that was a killer period of time for workers. Getting 0:11:19.360 --> 0:11:22.600 a new job was just leading to record pay increases 0:11:22.679 --> 0:11:26.520 because the demand for employees, it was incredibly steep. The 0:11:26.559 --> 0:11:30.480 supply of folks for those jobs was limited, But then 0:11:30.760 --> 0:11:34.200 we've seen that level out and unemployment numbers are still 0:11:34.240 --> 0:11:36.800 actually good historically, but the job market just feels a 0:11:36.800 --> 0:11:40.520 little stagnant, and we've seen more recent reports of just 0:11:40.600 --> 0:11:44.599 bigger name companies out there cutting head counts by significantly, 0:11:44.640 --> 0:11:47.720 like tens of thousands of employees. I'm specifically thinking of 0:11:48.000 --> 0:11:52.000 Ups and Amazon who target maybe too. And at the 0:11:52.000 --> 0:11:55.400 same time, worries about artificial intelligence, how that's going to 0:11:55.480 --> 0:11:59.160 impact the job market, Those questions abound, and we do 0:11:59.240 --> 0:12:02.760 see the signs that it is impacting young folks, specifically 0:12:02.880 --> 0:12:05.880 at entry level jobs, and I think it's a problem 0:12:05.920 --> 0:12:08.160 that could compound even more as those entry level jobs 0:12:08.200 --> 0:12:11.600 lay are typically the gateway into more permanent, more higher 0:12:11.640 --> 0:12:14.760 paying jobs. Right. You don't typically take some of those 0:12:14.840 --> 0:12:17.280 initial jobs because you think it's just a fantastic job, 0:12:17.320 --> 0:12:19.720 but it's the opportunity and it being more of a 0:12:19.720 --> 0:12:23.280 stepping stone, and that's that feels like a problem, that's 0:12:23.360 --> 0:12:26.520 just kind of that we're speeding towards, still off pretty 0:12:26.520 --> 0:12:28.160 far off the distance, but especially as some of these 0:12:28.200 --> 0:12:30.640 during workers are trying to just get their foot in 0:12:30.679 --> 0:12:34.120 the door and to get into some of these companies 0:12:34.120 --> 0:12:35.920 that they want to work. For sure, it's yeah, it's 0:12:35.920 --> 0:12:39.319 a little worrisome to see college grads getting a degree 0:12:39.440 --> 0:12:42.040 and then coming out in a time where it feels 0:12:42.080 --> 0:12:44.440 like some of those starter jobs are harder to come by, 0:12:44.720 --> 0:12:48.000 because you're right, those starter jobs lead to careers that 0:12:48.080 --> 0:12:51.280 eventually lead lead to moving up and lead to earning more. 0:12:51.320 --> 0:12:53.160 And if you can't get the starter job, it's hard 0:12:53.160 --> 0:12:54.560 to get on that track. How they get out those 0:12:54.559 --> 0:12:58.640 lower percentile income brackets. Yeah, still, I don't think I 0:12:58.679 --> 0:13:01.880 would overreact to some of these headlines. I think far 0:13:02.000 --> 0:13:04.880 fewer people think that AI is a threat to their 0:13:04.960 --> 0:13:07.200 job then think it's going to impact the job market 0:13:07.280 --> 0:13:09.640 in general if you look at the statistics, so kind 0:13:09.640 --> 0:13:11.040 of like so many other things in this life, it's 0:13:11.120 --> 0:13:14.760 less personal pessimism like oh AI is going to mess 0:13:14.800 --> 0:13:17.319 me over, and it's more of like a general wariness. 0:13:17.440 --> 0:13:20.120 I'm not sure how AI is going to impact the 0:13:20.320 --> 0:13:24.640 job the way jobs function in this country overall. And 0:13:24.679 --> 0:13:26.960 I'd say the two of us, Matt, we're banking on 0:13:27.000 --> 0:13:29.720 the fact that AI is going to make workers more 0:13:29.800 --> 0:13:32.760 productive kind of like the computers kind of like Internet, 0:13:33.120 --> 0:13:36.440 an internetimistic here, Yeah, and that it's not going to 0:13:36.480 --> 0:13:39.920 be an existential threat to labor as a whole, but 0:13:39.960 --> 0:13:41.320 they're going to be growing pains, and I think we're 0:13:41.360 --> 0:13:43.400 seeing some of those growing pains. They are going to 0:13:43.400 --> 0:13:47.560 be layoffs in some sectors, probably specifically in the tech sector, 0:13:47.880 --> 0:13:50.560 but I'm pretty sure we're also see companies that let 0:13:50.640 --> 0:13:54.520 too many workers go because of AI like rehiring in 0:13:54.559 --> 0:13:56.360 the coming years. I think they're going to be like, oh, hey, 0:13:56.400 --> 0:13:58.120 it's going to change everything. Let's call the workforce, and 0:13:58.160 --> 0:14:00.480 then they're going to realize we hold too much. We 0:14:00.760 --> 0:14:02.319 need some of those people back, and I think they're 0:14:02.360 --> 0:14:04.679 gonna regret some of the some of the layoffs that 0:14:04.720 --> 0:14:08.160 they made. So's it's a little consolation for current job 0:14:08.200 --> 0:14:10.400 seekers serving a tough time. But I just don't think 0:14:10.400 --> 0:14:12.800 these hiring frees are gonna last forever sure, or the 0:14:12.840 --> 0:14:15.400 folks who are getting cut right, because it is it 0:14:15.400 --> 0:14:17.120 feels like a tailff two job markets right, because it 0:14:17.160 --> 0:14:19.600 depends on it totally depends on the type of job 0:14:19.600 --> 0:14:22.240 you have. If it if you are in a more administrative, 0:14:22.760 --> 0:14:26.800 more data review or of job that involves a lot 0:14:26.840 --> 0:14:30.800 of digital monotony, not monotony, but like digital repetition, Like 0:14:30.840 --> 0:14:32.760 these are one hundred percent the types of jobs that 0:14:32.800 --> 0:14:34.640 are going to be replaced, and so if you are 0:14:35.400 --> 0:14:39.000 in that kind of a field, you probably are thinking no, no, no. 0:14:39.240 --> 0:14:43.360 For me, this is totally personal, yeah, as I play paralegals, 0:14:43.440 --> 0:14:46.440 like that's a job that's like up for extinction as 0:14:46.440 --> 0:14:49.120 opposed to the jobs that are going to be more 0:14:49.160 --> 0:14:53.920 difficult to replace, like healthcare or skilled skill trades or 0:14:54.160 --> 0:14:57.240 you know, teachers even right, like I could one d 0:14:57.320 --> 0:14:59.680 percent see AI being more of like the assistant in 0:14:59.720 --> 0:15:01.520 this in a similar way that we can't envision our 0:15:01.560 --> 0:15:03.920 life now without the Internet. And that's so much of 0:15:03.960 --> 0:15:05.880 it too, man, the fear of the unknown as we 0:15:05.880 --> 0:15:08.400 look ahead, Like you mentioned that the Internet being a 0:15:08.400 --> 0:15:10.880 good example, Well that's easy now as we look back 0:15:10.920 --> 0:15:13.680 and we are able to directly see all the industries 0:15:13.720 --> 0:15:16.000 and jobs that have been created because of the Internet. 0:15:16.200 --> 0:15:18.240 But we're at the very beginning of this as we're 0:15:18.400 --> 0:15:21.000 projecting and looking forward, and it's just for a lot 0:15:21.000 --> 0:15:24.320 of people it's scary because we like the creativity and 0:15:24.360 --> 0:15:26.880 the clairvoyance to know what's actually going to happen. I 0:15:26.920 --> 0:15:29.680 don't know, but there will likely be some of that 0:15:29.720 --> 0:15:33.120 creative destruction taking place and brand new sectors of jobs 0:15:33.120 --> 0:15:35.920 that we're not even that aren't even on people's radars. 0:15:36.800 --> 0:15:40.160 You think about the impact of the Internet, like you 0:15:40.200 --> 0:15:42.680 think about the dot com bubble and all of the 0:15:42.720 --> 0:15:46.200 companies that we're trying to do something novel because the 0:15:46.240 --> 0:15:49.320 Internet now existed, and so many of those companies no 0:15:49.400 --> 0:15:53.400 longer exist. Like there is even in particular, as new 0:15:53.440 --> 0:15:58.880 technologies are coming into the mainstream, there are a lot 0:15:58.880 --> 0:16:01.840 of new startups like vying to be the next successful 0:16:01.840 --> 0:16:04.240 company that are gonna that they're gonna they're they're gonna 0:16:04.320 --> 0:16:07.080 change right how we all interact with AI. Some of 0:16:07.080 --> 0:16:08.960 them are going to be highly successful, and many of 0:16:08.960 --> 0:16:11.320 them will fall by the wayside, and that is kind 0:16:11.360 --> 0:16:15.880 of part of how the economic cycle of new technology works, 0:16:15.920 --> 0:16:18.360 and they're winners and losers in it. But that's like 0:16:18.400 --> 0:16:21.440 cool comfort for somebody in the job market who feels 0:16:21.800 --> 0:16:24.920 like put out the pasture directly under threat. Yeah, it 0:16:24.920 --> 0:16:27.840 feels they're geting the heisman when they're looking for jobs 0:16:27.880 --> 0:16:29.680 because the market's tough and because there's a lot of 0:16:30.040 --> 0:16:32.680 kind of AI turmoil happening, a lot of these companies 0:16:32.680 --> 0:16:35.240 are looking to get leaner. On a related note, did 0:16:35.280 --> 0:16:38.320 you see the Business Insider story about folks who are 0:16:38.920 --> 0:16:41.640 basically taking like their side gigs and not side gig 0:16:41.640 --> 0:16:43.720 as in like driving for Uber or Left or whatever, 0:16:43.760 --> 0:16:46.880 but like a side business finding ways to diversify their income, 0:16:47.000 --> 0:16:50.000 essentially because they are a little concerned about the prospects 0:16:50.080 --> 0:16:52.720 of their future at that company. And this is something 0:16:52.760 --> 0:16:56.360 we've talked about it's like for a while. Yeah, essentially, 0:16:56.760 --> 0:16:58.760 the reason you and I initially started investing in real 0:16:58.840 --> 0:17:02.400 estate was to happen like another stream of income, not 0:17:02.520 --> 0:17:04.520 just like building up money in our four oh one k's, 0:17:04.840 --> 0:17:06.600 but saying, like, okay, what does it look like that 0:17:06.760 --> 0:17:08.400 it makes it easier than to launch out and start 0:17:08.400 --> 0:17:11.080 your own small business because you're not fully reliant on 0:17:11.320 --> 0:17:14.080 income from your day job exactly, which we felt personally 0:17:14.160 --> 0:17:17.840 when we launched the podcasts almost a decade ago at 0:17:17.840 --> 0:17:21.000 this point, no, not quite that long. But I do 0:17:21.080 --> 0:17:22.840 think it comes down to the individual because it makes 0:17:22.880 --> 0:17:27.280 me think about some folks who are more like like 0:17:27.720 --> 0:17:29.800 they're more of the renaissance man or a woman, right, 0:17:29.840 --> 0:17:31.520 like they're more of a polymath, and if you are 0:17:31.520 --> 0:17:34.160 the type of person who can take on different roles, 0:17:34.840 --> 0:17:39.920 who can be more adaptive to the changing markets out there, 0:17:39.920 --> 0:17:42.360 I think that this is a path that you could 0:17:42.359 --> 0:17:43.840 take that could serve you well. But I do think 0:17:43.840 --> 0:17:47.920 that there are some folks who are specialists. They're experts 0:17:48.040 --> 0:17:51.080 in their given field, and were they to divide their 0:17:51.119 --> 0:17:54.720 attention away from their job, you would essentially lose that edge. 0:17:54.720 --> 0:17:56.920 And so it's almost a path of Okay, which path 0:17:56.960 --> 0:17:59.880 do I want to take? Given the constraints of time, right, 0:18:00.040 --> 0:18:01.560 I can't do it. Also, which one am I going 0:18:01.600 --> 0:18:04.280 to choose here? And I think a highly personal question. 0:18:04.640 --> 0:18:06.960 It's very personal. I think it just takes knowing yourself 0:18:07.000 --> 0:18:09.120 what kind of satisfaction you're getting out of your job. 0:18:09.119 --> 0:18:11.720 Because I think for some folks to hear to see 0:18:11.760 --> 0:18:14.720 the business, because they profiled all these success stories of like, oh, man, 0:18:14.760 --> 0:18:17.320 he's making more money now with the side business and 0:18:17.480 --> 0:18:20.159 it doesn't really matter that Microsoft let him go. I 0:18:20.160 --> 0:18:21.919 think if there's someone who hears that and thinks, well, 0:18:21.920 --> 0:18:24.920 that's what I need to do. But maybe for that person, man, 0:18:25.000 --> 0:18:27.040 they are so well suited for their role in this 0:18:27.080 --> 0:18:29.680 big company. And in fact, if they gave it a 0:18:29.680 --> 0:18:31.680 little more attention to a little more effort. They could lead 0:18:31.720 --> 0:18:33.520 this entire department. That kind of thing I don't want 0:18:33.520 --> 0:18:37.119 to discount. Even though I'm highly entrepreneurial, there are some 0:18:37.160 --> 0:18:39.119 folks who aren't. And like you said, I think it 0:18:39.160 --> 0:18:41.600 is personal. It's good to know yourself agreed. Yeah, And 0:18:41.680 --> 0:18:44.919 even just kind of thinking ahead about well, if you're worried, 0:18:44.960 --> 0:18:46.719