1 00:00:00,120 --> 00:00:02,719 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt 2 00:00:02,840 --> 00:00:24,760 Speaker 1: and today we are answering your listener questions. That is right, 3 00:00:24,880 --> 00:00:27,720 Speaker 1: This is our ask How the Money episode where every 4 00:00:27,720 --> 00:00:30,560 Speaker 1: other Monday we answer five different listener questions. Joel, and 5 00:00:30,600 --> 00:00:33,560 Speaker 1: we've got five great ones. We've got a listener who's 6 00:00:33,560 --> 00:00:37,640 Speaker 1: asking about buying a home to combat inflation. We're gonna 7 00:00:37,640 --> 00:00:40,239 Speaker 1: be taking another question from a listener who has an 8 00:00:40,240 --> 00:00:43,959 Speaker 1: ethical money conundrum about the fact that she is eligible 9 00:00:44,000 --> 00:00:46,720 Speaker 1: to receive some financial assistance. And then we're gonna talk 10 00:00:46,760 --> 00:00:49,760 Speaker 1: about some financial priorities after having a baby. We're gonna 11 00:00:49,760 --> 00:00:52,200 Speaker 1: get to those three questions plus a couple others during 12 00:00:52,240 --> 00:00:54,480 Speaker 1: this episode. Looking forward to it. But since this is 13 00:00:54,480 --> 00:00:58,240 Speaker 1: a listener question episode, let's start off with some listener advice. 14 00:00:58,680 --> 00:01:01,480 Speaker 1: And actually, listener Albin uh It reached out to a 15 00:01:01,480 --> 00:01:04,400 Speaker 1: speed email and he said, Hey, you guys haven't really 16 00:01:04,400 --> 00:01:06,520 Speaker 1: ever talked about this, but you should mention it. And 17 00:01:06,560 --> 00:01:09,080 Speaker 1: I was like, no, Calvin, this is not your show. 18 00:01:09,200 --> 00:01:10,720 Speaker 1: We will not do it. I'm just kidding. It was 19 00:01:10,760 --> 00:01:14,080 Speaker 1: great advice. It's worth of the discussion today. And he 20 00:01:14,400 --> 00:01:16,600 Speaker 1: recommended this this thing called and don't I'm probably not 21 00:01:16,640 --> 00:01:21,440 Speaker 1: pronouncing it. Well, it's called Casasa Casasa, and it likes 22 00:01:21,480 --> 00:01:25,160 Speaker 1: saying it. Basically, Casasa works with a bunch of different 23 00:01:25,200 --> 00:01:29,000 Speaker 1: credit unions around the country in order to provide higher 24 00:01:29,560 --> 00:01:33,399 Speaker 1: savings rates for for savers. And right now, obviously what 25 00:01:33,480 --> 00:01:36,600 Speaker 1: plague savers low savings rates, it's probably well and it's 26 00:01:36,600 --> 00:01:39,520 Speaker 1: specifically something that plagues credit unions. And that's one of 27 00:01:39,520 --> 00:01:42,080 Speaker 1: the things that we don't like about credit unions because 28 00:01:42,160 --> 00:01:44,560 Speaker 1: they don't offer those sweet perks. They don't offer those 29 00:01:44,640 --> 00:01:48,080 Speaker 1: higher interest rates paid on checking accounts or savings accounts. 30 00:01:48,080 --> 00:01:49,640 Speaker 1: Many of them do not that many of them don't. 31 00:01:49,680 --> 00:01:52,280 Speaker 1: And yeah, the reason for that is in the lies 32 00:01:52,320 --> 00:01:54,280 Speaker 1: in their name. They don't have that scale. It's it's 33 00:01:54,280 --> 00:01:56,840 Speaker 1: difficult for them to provide those sweet perks, which is 34 00:01:56,880 --> 00:01:59,720 Speaker 1: why we like to go with the different online banks, 35 00:02:00,080 --> 00:02:02,200 Speaker 1: uh and the products that they offer. That's right. Yeah, 36 00:02:02,240 --> 00:02:04,320 Speaker 1: there's a lot of good ones out there, which we 37 00:02:04,360 --> 00:02:07,480 Speaker 1: have at nauseum discussed on the show. But Casasa is 38 00:02:07,520 --> 00:02:10,360 Speaker 1: cool because they yeah, you can get like two to 39 00:02:10,480 --> 00:02:14,120 Speaker 1: three on your money and and and that you can 40 00:02:14,160 --> 00:02:17,160 Speaker 1: easily on this on deposit accounts dot com see like 41 00:02:17,200 --> 00:02:21,000 Speaker 1: which Casasa accounts are available at credit unions near you. Uh, 42 00:02:21,040 --> 00:02:23,640 Speaker 1: here's the deal, though, there's a cap on the amount 43 00:02:23,639 --> 00:02:25,959 Speaker 1: of money you can have in there earning this higher rate. 44 00:02:26,280 --> 00:02:28,120 Speaker 1: Usually for a lot of these credit unions, it's somewhere 45 00:02:28,120 --> 00:02:31,240 Speaker 1: between ten thousand and fifteen thousand, maybe if you're lucky, 46 00:02:31,280 --> 00:02:35,600 Speaker 1: up to twenty, but those are few and far between. 47 00:02:35,960 --> 00:02:38,120 Speaker 1: And another thing, you have to look at the fine prints. 48 00:02:38,400 --> 00:02:42,120 Speaker 1: So if you want this increased earning power on your savings, 49 00:02:42,440 --> 00:02:45,560 Speaker 1: there's gonna be in all likelihood of direct deposit requirements 50 00:02:45,800 --> 00:02:47,320 Speaker 1: and you're gonna have to use your debit card a 51 00:02:47,360 --> 00:02:49,760 Speaker 1: certain amount of times per month or you're gonna lose 52 00:02:49,760 --> 00:02:51,639 Speaker 1: out and you're not gonna get that higher rate of interest. 53 00:02:51,680 --> 00:02:53,760 Speaker 1: And so it's one of those things where if you're 54 00:02:53,760 --> 00:02:56,720 Speaker 1: diligent and you've got ten or fifteen grand and savings 55 00:02:56,760 --> 00:02:58,960 Speaker 1: and you're like, I am so tired of earning point 56 00:02:58,960 --> 00:03:02,440 Speaker 1: three percent on my money, Uh, checking out CASASA. You 57 00:03:02,480 --> 00:03:04,960 Speaker 1: know it's it's worth looking into, at least because I 58 00:03:05,000 --> 00:03:07,440 Speaker 1: don't really use debit cards, Like, it's not something I'm 59 00:03:07,440 --> 00:03:09,320 Speaker 1: going to use, but I know that other listeners might 60 00:03:09,320 --> 00:03:11,960 Speaker 1: find value. So thank you Calvin for mentioning it and 61 00:03:12,160 --> 00:03:13,799 Speaker 1: glad to be able to at least bring it up 62 00:03:13,800 --> 00:03:16,320 Speaker 1: and um, yeah mentioned it to HTM listeners. You know 63 00:03:16,520 --> 00:03:19,240 Speaker 1: it's worth mentioning if specifically, if you have that money 64 00:03:19,240 --> 00:03:20,880 Speaker 1: sitting in your account, and maybe you don't have a 65 00:03:20,919 --> 00:03:22,480 Speaker 1: whole lot of expenses, right because for I think a 66 00:03:22,520 --> 00:03:24,720 Speaker 1: lot of folks who have a lot of expenses, you're 67 00:03:24,720 --> 00:03:26,639 Speaker 1: probably going to look at the different benefits that come 68 00:03:26,639 --> 00:03:29,040 Speaker 1: with a credit card. But you know, if these benefits 69 00:03:29,040 --> 00:03:31,320 Speaker 1: with CASASA accounts, if they get high enough, I'm gonna 70 00:03:31,360 --> 00:03:33,280 Speaker 1: give it pause and actually run the numbers, right because 71 00:03:33,280 --> 00:03:35,440 Speaker 1: I saw one account like one that you mentioned where 72 00:03:35,640 --> 00:03:38,960 Speaker 1: they pay the higher rate up to twenty dollars, and 73 00:03:38,960 --> 00:03:41,040 Speaker 1: I saw one as well that was paying over four percent, 74 00:03:41,400 --> 00:03:43,720 Speaker 1: And so you're looking at over a thousand dollars or 75 00:03:43,720 --> 00:03:45,960 Speaker 1: you to earn that interest on that specific accounts. So 76 00:03:45,960 --> 00:03:48,120 Speaker 1: it really does come down to a if it's available 77 00:03:48,120 --> 00:03:49,960 Speaker 1: in your in your area, if it's something that your 78 00:03:49,960 --> 00:03:53,280 Speaker 1: credit union offers, and then what those specific figures would 79 00:03:53,320 --> 00:03:54,800 Speaker 1: look like for you. Yeah, and if you could jump 80 00:03:54,800 --> 00:03:56,560 Speaker 1: through those hoops, if you're willing to jump through those 81 00:03:56,600 --> 00:03:58,520 Speaker 1: hoops in order to earn that higher rate of interest. 82 00:03:58,680 --> 00:04:00,200 Speaker 1: It reminds me of we've talked about it for a 83 00:04:00,200 --> 00:04:03,000 Speaker 1: fitness bank, and they will pay a higher rate of 84 00:04:03,000 --> 00:04:05,440 Speaker 1: interest if you take something like fifteen thousand steps a 85 00:04:05,520 --> 00:04:08,000 Speaker 1: day and then uh, it's like linked. Yeah, it's linked 86 00:04:08,000 --> 00:04:10,560 Speaker 1: to your fitbit and they want to encourage physical health, 87 00:04:10,680 --> 00:04:12,760 Speaker 1: which is cool, awesome concept. But if you don't walk 88 00:04:12,760 --> 00:04:16,120 Speaker 1: those steps, if you get a little tuckered out and 89 00:04:16,160 --> 00:04:19,000 Speaker 1: you decide I'm gonna walk like you know, I'm averaging 90 00:04:19,040 --> 00:04:21,880 Speaker 1: sevent steps a day this month, well you're you know, 91 00:04:22,000 --> 00:04:24,320 Speaker 1: your interest rate goes down. And the same thing is 92 00:04:24,360 --> 00:04:26,800 Speaker 1: going to be true with Casasa. If you don't, you know, 93 00:04:26,839 --> 00:04:28,840 Speaker 1: swipe that debit card enough times in a given month, 94 00:04:29,000 --> 00:04:31,600 Speaker 1: your interest rate plumets. And so, yeah, it is worth 95 00:04:31,640 --> 00:04:33,080 Speaker 1: looking for. If you're kind of one of those kind 96 00:04:33,080 --> 00:04:34,800 Speaker 1: of people that love to jump through hoops in order 97 00:04:34,839 --> 00:04:36,720 Speaker 1: to get a prize at the end of the rainbow, 98 00:04:36,880 --> 00:04:39,159 Speaker 1: then Casasa could make sense for you. And just to 99 00:04:39,160 --> 00:04:41,480 Speaker 1: be clear with how the Casasa accounts work, like this 100 00:04:41,520 --> 00:04:44,040 Speaker 1: is a separate company. They're actually based out of Texas 101 00:04:44,360 --> 00:04:47,000 Speaker 1: and they have a product that's basically like a white 102 00:04:47,080 --> 00:04:50,120 Speaker 1: label account and they offer it to these different credit 103 00:04:50,200 --> 00:04:53,040 Speaker 1: unions and they choose whether or not to offer that 104 00:04:53,120 --> 00:04:55,600 Speaker 1: to their customers, and so that's why some credit unions 105 00:04:55,720 --> 00:04:58,279 Speaker 1: might have it, others may not. And hopefully if this 106 00:04:58,320 --> 00:05:01,279 Speaker 1: does sound interesting to you, it's something that your local 107 00:05:01,320 --> 00:05:04,480 Speaker 1: credit union will offer if they don't already. Yeah, so 108 00:05:04,560 --> 00:05:07,240 Speaker 1: we'll again link to a site where you can kind 109 00:05:07,240 --> 00:05:09,440 Speaker 1: of check and see if one of these accounts is 110 00:05:09,480 --> 00:05:11,920 Speaker 1: available near you and what the terms are. That will 111 00:05:11,960 --> 00:05:14,039 Speaker 1: be in the show notes on our site. But Matt, 112 00:05:14,080 --> 00:05:16,320 Speaker 1: let's move on. Let's mention the beer we're having on 113 00:05:16,320 --> 00:05:18,800 Speaker 1: this episode. This one's called Hill It's by Southern christ 114 00:05:18,880 --> 00:05:21,680 Speaker 1: Brewing Company out of Tennessee. They make great beers. I'm 115 00:05:21,720 --> 00:05:24,360 Speaker 1: looking forward to enjoying this one today. I am as well. 116 00:05:24,400 --> 00:05:25,960 Speaker 1: We'll share our thoughts on this one at the end 117 00:05:26,000 --> 00:05:28,119 Speaker 1: of the episode, and before we get to our listener 118 00:05:28,200 --> 00:05:31,040 Speaker 1: questions here, we want folks to know that you too 119 00:05:31,240 --> 00:05:33,040 Speaker 1: can submit your own question. Just go to how to 120 00:05:33,120 --> 00:05:36,200 Speaker 1: money dot com forward slash ask and we've got all 121 00:05:36,200 --> 00:05:38,920 Speaker 1: the instructions up there how you can easily record a 122 00:05:39,000 --> 00:05:41,800 Speaker 1: voice memo email that hour away and hopefully we will 123 00:05:41,839 --> 00:05:44,240 Speaker 1: be able to get to your question on an upcoming episode, 124 00:05:44,400 --> 00:05:45,960 Speaker 1: no doubt. Well, let's get to that first one, and 125 00:05:45,960 --> 00:05:49,840 Speaker 1: this one is about investing in the market or yourself. Hi, 126 00:05:49,920 --> 00:05:53,600 Speaker 1: Jolan Matt, This is Sarah from Chicago. Firstly, I'm a 127 00:05:53,640 --> 00:05:56,440 Speaker 1: big fan of your show. I've been listening since probably 128 00:05:57,360 --> 00:06:00,480 Speaker 1: eighteen or early twenty nineteen, and at this point you're 129 00:06:00,520 --> 00:06:03,320 Speaker 1: one of my favorite podcasts. So cheers all that you do. 130 00:06:03,440 --> 00:06:06,920 Speaker 1: Thank you so much. A bit about me is that 131 00:06:07,520 --> 00:06:09,800 Speaker 1: I've been out of grad school now for just a 132 00:06:09,839 --> 00:06:12,920 Speaker 1: few years, so one, there's lots of student debt there, 133 00:06:13,440 --> 00:06:17,159 Speaker 1: and two, I've really only been working in my field 134 00:06:17,360 --> 00:06:20,240 Speaker 1: at a full time job for the past like a 135 00:06:20,279 --> 00:06:24,240 Speaker 1: year and a half or so two years. Pandemic kind 136 00:06:24,240 --> 00:06:26,880 Speaker 1: of threw a huge wrench into that. I have a 137 00:06:26,960 --> 00:06:29,479 Speaker 1: roth ira A and investment account that I'm adding to 138 00:06:29,640 --> 00:06:31,479 Speaker 1: little by little that I started while I was in 139 00:06:31,600 --> 00:06:36,200 Speaker 1: school with student money. With the current change in the workforce, now, 140 00:06:36,360 --> 00:06:39,440 Speaker 1: I'm putting steps together to start my own online business 141 00:06:39,839 --> 00:06:42,560 Speaker 1: and was wondering if it makes more financial sense to 142 00:06:43,040 --> 00:06:46,240 Speaker 1: save and invest into that or try to max out 143 00:06:46,279 --> 00:06:48,360 Speaker 1: my ira A contribution by the end of the year. 144 00:06:48,960 --> 00:06:52,120 Speaker 1: There isn't a huge overhead for me getting started online, 145 00:06:52,160 --> 00:06:56,200 Speaker 1: but as you know, there are various unexpected expenses that 146 00:06:56,240 --> 00:06:58,880 Speaker 1: can come up when trying to start any kind of business, 147 00:06:59,080 --> 00:07:02,120 Speaker 1: So what every advice you have would be greatly appreciated. 148 00:07:02,440 --> 00:07:05,159 Speaker 1: Thanks again. Hey, Sarah, thanks so much for that question, 149 00:07:05,440 --> 00:07:08,440 Speaker 1: and also thank you so much for those incredibly kind 150 00:07:08,480 --> 00:07:10,880 Speaker 1: words at the beginning of your question, because there are 151 00:07:10,960 --> 00:07:13,560 Speaker 1: so many great podcasts out there. Uh, and we take 152 00:07:13,600 --> 00:07:16,920 Speaker 1: that as incredibly high praise that we are your favorite, 153 00:07:16,920 --> 00:07:19,640 Speaker 1: if not one of your favorites. Yeah, we appreciate that. Yes, 154 00:07:19,720 --> 00:07:21,720 Speaker 1: and uh, we hope that your grad school degree is 155 00:07:21,760 --> 00:07:23,240 Speaker 1: paying off for you. It sounds like it is, and 156 00:07:23,280 --> 00:07:25,080 Speaker 1: we love that you are taking some steps to go 157 00:07:25,120 --> 00:07:28,840 Speaker 1: in the entrepreneurship direction. And one thing I want to 158 00:07:28,840 --> 00:07:30,920 Speaker 1: speak to Sarah that you mentioned Joel. Did you do 159 00:07:30,960 --> 00:07:33,560 Speaker 1: you notice this She talked about investing with student money. 160 00:07:33,640 --> 00:07:35,920 Speaker 1: I heard that. Yeah, And you know, if she was 161 00:07:35,960 --> 00:07:39,160 Speaker 1: sitting across from us, we would actually clarify because we 162 00:07:39,360 --> 00:07:41,880 Speaker 1: don't know if she meant student loans, or she's talking 163 00:07:41,880 --> 00:07:44,160 Speaker 1: about money that she earned while she was still in 164 00:07:44,240 --> 00:07:46,160 Speaker 1: grad school, or if it's money that she stole from 165 00:07:46,160 --> 00:07:50,000 Speaker 1: a student like I stole their lunch money. Uh, Sarah, 166 00:07:50,000 --> 00:07:52,520 Speaker 1: don't be a bully, Okay. Uh. Now, if it's the latter, 167 00:07:52,880 --> 00:07:55,440 Speaker 1: then you know, if this is money that you earned, Sarah, like, 168 00:07:55,480 --> 00:07:57,320 Speaker 1: this is awesome, uh, and we think it's great that 169 00:07:57,360 --> 00:07:59,920 Speaker 1: you use that money, uh, that you earned to invest. 170 00:08:00,480 --> 00:08:02,360 Speaker 1: But if it's the former, right, if you're talking about 171 00:08:02,400 --> 00:08:05,120 Speaker 1: student loans, then we wanted to highlight the fact that 172 00:08:05,160 --> 00:08:08,520 Speaker 1: this is a pretty risky move. We wouldn't recommend borrowing 173 00:08:08,760 --> 00:08:11,080 Speaker 1: at over five percent, which is where graduate loans are 174 00:08:11,120 --> 00:08:13,640 Speaker 1: these days, while hoping for you know, like a seven 175 00:08:13,720 --> 00:08:16,040 Speaker 1: or eight percent return in the stock market. What's done 176 00:08:16,080 --> 00:08:18,160 Speaker 1: is done. But we wanted to mention that for anybody 177 00:08:18,160 --> 00:08:20,160 Speaker 1: else out there who might be listening, we want that 178 00:08:20,240 --> 00:08:22,560 Speaker 1: to be something that you keep in mind. Yeah, exactly. Yeah, 179 00:08:22,800 --> 00:08:25,600 Speaker 1: It's it's not ideal to take on more student debt 180 00:08:25,640 --> 00:08:28,480 Speaker 1: than you need to in order to invest more of 181 00:08:28,480 --> 00:08:32,280 Speaker 1: your money because you're looking for those long time compounding returns. 182 00:08:32,280 --> 00:08:35,000 Speaker 1: Just not something we'd recommend. But let's get onto kind 183 00:08:35,000 --> 00:08:36,720 Speaker 1: of the main part of your question, Sarah. While we 184 00:08:36,840 --> 00:08:40,240 Speaker 1: love the idea of you continuing to contribute to your 185 00:08:40,240 --> 00:08:43,160 Speaker 1: Wrath account, it's one of our favorite retirement accounts, right. 186 00:08:43,200 --> 00:08:44,760 Speaker 1: I mean, we've we've talked about it a whole lot 187 00:08:44,800 --> 00:08:47,200 Speaker 1: on the show and you might be surprised, but we'd 188 00:08:47,240 --> 00:08:50,439 Speaker 1: prefer to see you put the necessary funds into your 189 00:08:50,440 --> 00:08:53,040 Speaker 1: business in order to grow it more quickly than to 190 00:08:53,160 --> 00:08:55,719 Speaker 1: stick more money in that wrath. And we would say 191 00:08:55,720 --> 00:08:59,080 Speaker 1: that a lot of traditional personal finance advice it doesn't 192 00:08:59,120 --> 00:09:03,280 Speaker 1: really discuss investing in yourself or investing in your business. Sadly, 193 00:09:03,520 --> 00:09:05,480 Speaker 1: it kind of leaves that off. It talks to talking 194 00:09:05,480 --> 00:09:08,800 Speaker 1: about saving and paying down debt and investing more of 195 00:09:08,800 --> 00:09:11,200 Speaker 1: your money, but there's very little emphasis put on some 196 00:09:11,240 --> 00:09:13,960 Speaker 1: of those more important things about growing your own base 197 00:09:13,960 --> 00:09:17,400 Speaker 1: of knowledge and putting money into something like a business 198 00:09:17,480 --> 00:09:19,960 Speaker 1: that eventually is going to pay off for you down 199 00:09:19,960 --> 00:09:22,800 Speaker 1: the road. But we would say smart dollar spent in 200 00:09:22,840 --> 00:09:26,120 Speaker 1: those areas have the potential to produce the highest returns 201 00:09:26,200 --> 00:09:29,439 Speaker 1: over the decades in the form of increased earnings and 202 00:09:29,480 --> 00:09:33,439 Speaker 1: also simultaneously higher levels of satisfaction. You're probably gonna happier 203 00:09:33,520 --> 00:09:35,319 Speaker 1: running your own business than you are going to be 204 00:09:35,440 --> 00:09:37,480 Speaker 1: working for the man getting told what to do all 205 00:09:37,559 --> 00:09:40,199 Speaker 1: day every day. And while we can't say for certainty 206 00:09:40,280 --> 00:09:42,720 Speaker 1: that it's going to make the most financial sense, only 207 00:09:42,720 --> 00:09:44,800 Speaker 1: you know the amount of personal fulfillment that you're gonna 208 00:09:44,840 --> 00:09:48,199 Speaker 1: be receiving from starting your own business. It's not something 209 00:09:48,200 --> 00:09:50,720 Speaker 1: that that's easy to quantify, which is why it's often 210 00:09:50,800 --> 00:09:53,280 Speaker 1: not taking into account if you ask some of the 211 00:09:53,320 --> 00:09:56,280 Speaker 1: traditional number crunchers. But we think that it makes a 212 00:09:56,280 --> 00:09:59,040 Speaker 1: whole lot of sense to prioritize, especially early on in 213 00:09:59,080 --> 00:10:02,720 Speaker 1: your career, more money in that direction for growth of 214 00:10:02,800 --> 00:10:06,520 Speaker 1: yourself and growth of your business. That's right, And Sarah 215 00:10:06,520 --> 00:10:08,360 Speaker 1: to you before we kind of throw our way completely 216 00:10:08,400 --> 00:10:11,040 Speaker 1: on the side of starting your own business, not working 217 00:10:11,040 --> 00:10:13,880 Speaker 1: for the man, like like Joel mentioned, which we love 218 00:10:13,960 --> 00:10:15,960 Speaker 1: working for ourselves. I mean, I'll be honest, I love 219 00:10:15,960 --> 00:10:17,360 Speaker 1: not working for the man. And I was kind of 220 00:10:17,360 --> 00:10:18,800 Speaker 1: like having a dig at working for the man. But 221 00:10:19,679 --> 00:10:21,880 Speaker 1: I enjoyed my job for fifteen years. So well, there 222 00:10:21,920 --> 00:10:25,040 Speaker 1: are some great benefits that you get from a traditional employer. 223 00:10:25,200 --> 00:10:27,240 Speaker 1: And Sarah, if you are I mean, obviously, if you're 224 00:10:27,240 --> 00:10:29,720 Speaker 1: at a workplace where maybe it's a more toxic work environment, 225 00:10:29,720 --> 00:10:31,559 Speaker 1: which you did not mention. But if that's the case, 226 00:10:31,600 --> 00:10:33,440 Speaker 1: then obviously you know you probably want to start your 227 00:10:33,480 --> 00:10:36,080 Speaker 1: own thing as quickly as possible. But if you're just 228 00:10:36,120 --> 00:10:39,360 Speaker 1: working there, you're kind of cruising along. You're getting paid well, 229 00:10:39,480 --> 00:10:41,679 Speaker 1: but maybe let's say you're not being challenged as much 230 00:10:41,720 --> 00:10:43,600 Speaker 1: as you thought you would be, or you're not taking 231 00:10:43,600 --> 00:10:45,960 Speaker 1: them the kind of project you thought. Well, I would say, 232 00:10:46,120 --> 00:10:47,640 Speaker 1: look to see if there are ways that you can 233 00:10:47,679 --> 00:10:51,240 Speaker 1: expange your role at work before you immediately start pouring 234 00:10:51,240 --> 00:10:54,400 Speaker 1: your energies and diverting your attention towards something else. Literally, 235 00:10:54,400 --> 00:10:56,000 Speaker 1: that can be a question that you ask your supervisor 236 00:10:56,080 --> 00:10:58,440 Speaker 1: or your boss. With that additional challenge, you might find 237 00:10:58,480 --> 00:11:01,679 Speaker 1: more fulfillment. And also too, that is a great reason 238 00:11:01,800 --> 00:11:03,880 Speaker 1: for you to get a raise, because if you're taking 239 00:11:03,880 --> 00:11:06,760 Speaker 1: on more responsibility. Uh, not only is this a great 240 00:11:06,760 --> 00:11:09,240 Speaker 1: way for you to perhaps feel more fulfilled at your 241 00:11:09,320 --> 00:11:11,400 Speaker 1: day job in your traditional nine to five, but you 242 00:11:11,400 --> 00:11:14,360 Speaker 1: could also potentially see that in the form of a 243 00:11:14,440 --> 00:11:16,600 Speaker 1: fatter paycheck as well. Yeah, and sometimes you can just 244 00:11:16,600 --> 00:11:18,960 Speaker 1: do both, right, you can. It sounds like Sarah is 245 00:11:19,080 --> 00:11:21,679 Speaker 1: like totally fine in her day job, but she she's 246 00:11:21,679 --> 00:11:23,640 Speaker 1: starting this business on the side too, And that's a 247 00:11:23,679 --> 00:11:26,319 Speaker 1: common route for many, including us, Matt, where we've got 248 00:11:26,360 --> 00:11:29,400 Speaker 1: something else that's paying the bills primarily, and you transition 249 00:11:29,480 --> 00:11:32,319 Speaker 1: over time because that's a goal of yours too. And yeah, 250 00:11:32,440 --> 00:11:34,400 Speaker 1: I would say like doing it on the cheap is 251 00:11:34,400 --> 00:11:37,920 Speaker 1: important as well, right, Like starting your own business is 252 00:11:37,960 --> 00:11:40,280 Speaker 1: a great thing for so many reasons, but it's important 253 00:11:40,320 --> 00:11:43,559 Speaker 1: to maintain a bootstrapping mentality when you're starting your business. 254 00:11:43,880 --> 00:11:45,440 Speaker 1: And so would it be helpful to have that money 255 00:11:45,440 --> 00:11:48,240 Speaker 1: that would have otherwise gone into your wrath on hand 256 00:11:48,280 --> 00:11:50,360 Speaker 1: to be able to maybe grow more quickly higher out 257 00:11:50,400 --> 00:11:53,000 Speaker 1: some of those tasks that might not be your jam, 258 00:11:53,160 --> 00:11:56,360 Speaker 1: something that you're great at. Uh. Yes, of course I 259 00:11:56,360 --> 00:11:58,480 Speaker 1: think that money would be helpful in the growth of 260 00:11:58,520 --> 00:12:01,000 Speaker 1: your business now. But also have to ask yourself, like, 261 00:12:01,040 --> 00:12:03,679 Speaker 1: can you find a way to start an online business 262 00:12:03,800 --> 00:12:06,360 Speaker 1: with the money that you currently have coming in and 263 00:12:06,400 --> 00:12:09,360 Speaker 1: not have to take it away from your future self 264 00:12:09,640 --> 00:12:12,080 Speaker 1: and and stop investing for the time being. The answer 265 00:12:12,200 --> 00:12:14,120 Speaker 1: is probably. It sounds like you've been listening to the 266 00:12:14,120 --> 00:12:16,720 Speaker 1: show for a long time, but Alan donighan actually did 267 00:12:16,720 --> 00:12:18,719 Speaker 1: a great job. He came on the show back in 268 00:12:18,760 --> 00:12:21,520 Speaker 1: the episode to forty seven and he discussed how to 269 00:12:21,520 --> 00:12:24,720 Speaker 1: start a business with zero dollars. And I think sometimes 270 00:12:24,720 --> 00:12:27,920 Speaker 1: a lack of money actually forces us to become more creative. 271 00:12:28,240 --> 00:12:31,160 Speaker 1: Throwing money at the problem is often the easiest solution, 272 00:12:31,320 --> 00:12:34,160 Speaker 1: but it's not always or even often the best one. 273 00:12:34,400 --> 00:12:37,079 Speaker 1: And so specifically, if you're creating an online business, think 274 00:12:37,080 --> 00:12:38,679 Speaker 1: about how you can boot trap it. Think about how 275 00:12:38,679 --> 00:12:41,600 Speaker 1: you can get started and turn out something great without 276 00:12:41,679 --> 00:12:44,160 Speaker 1: really spending a whole lot of money. Totally, Sarah, we 277 00:12:44,200 --> 00:12:46,120 Speaker 1: want you to have your cake and eat it too. 278 00:12:46,120 --> 00:12:48,760 Speaker 1: We want you to continue to put money, funneling money 279 00:12:48,800 --> 00:12:51,480 Speaker 1: in dollars towards your retirement, but also looking to see 280 00:12:51,520 --> 00:12:53,200 Speaker 1: if you can start this business on the side with 281 00:12:53,240 --> 00:12:56,160 Speaker 1: this little money as possible. But we do understand that things, 282 00:12:56,440 --> 00:12:58,800 Speaker 1: you know, they do cost money, but we want you 283 00:12:58,800 --> 00:13:00,839 Speaker 1: to think long and hard out what you will use 284 00:13:00,840 --> 00:13:03,520 Speaker 1: that money for. Like website hosting, that's something that you 285 00:13:03,520 --> 00:13:05,720 Speaker 1: have to pay for. There is an actual expense associated 286 00:13:05,800 --> 00:13:07,880 Speaker 1: with that. At least it's a cheap expense. Yeah, it's 287 00:13:07,880 --> 00:13:09,680 Speaker 1: exactly doesn't cost a ton of money, but you know, 288 00:13:09,720 --> 00:13:11,199 Speaker 1: like maybe you want to pay a little bit more 289 00:13:11,320 --> 00:13:14,160 Speaker 1: for say a more attractive word press theme. Like that's 290 00:13:14,200 --> 00:13:17,240 Speaker 1: also something where there's a hard cost involved. You typically 291 00:13:17,280 --> 00:13:21,680 Speaker 1: can't barter to get a word press theme. But eight Chickens, 292 00:13:21,720 --> 00:13:23,880 Speaker 1: if you know somebody who's a developer, perhaps you could. 293 00:13:24,200 --> 00:13:27,240 Speaker 1: You know that they have the ability to customize a site. Uh, 294 00:13:27,520 --> 00:13:30,600 Speaker 1: perhaps a free theme to look like something that you 295 00:13:30,640 --> 00:13:33,040 Speaker 1: want to have on your site. These are these truly 296 00:13:33,040 --> 00:13:34,920 Speaker 1: are all things to consider. But if you did spend 297 00:13:34,920 --> 00:13:36,800 Speaker 1: that money, we know that that wouldn't be money wasted 298 00:13:36,800 --> 00:13:40,040 Speaker 1: because there are some hard costs associated with starting a business. 299 00:13:40,320 --> 00:13:42,480 Speaker 1: But we do want to encourage you to specifically list 300 00:13:42,480 --> 00:13:44,640 Speaker 1: out some of the expenses that you think will help 301 00:13:44,679 --> 00:13:47,880 Speaker 1: move the needle the most as you start this venture. 302 00:13:48,080 --> 00:13:49,719 Speaker 1: Don't be afraid to spend money where it's going to 303 00:13:49,800 --> 00:13:51,160 Speaker 1: make a real difference. We don't want you to be 304 00:13:51,240 --> 00:13:53,640 Speaker 1: cheap in an effort to be frugal here, but we 305 00:13:53,720 --> 00:13:56,280 Speaker 1: also just don't want you to spend your money frivolously 306 00:13:56,320 --> 00:13:59,520 Speaker 1: because you've given yourself permission to funnel that money towards 307 00:13:59,559 --> 00:14:03,880 Speaker 1: your business rather than towards your wrath. So, Sarah, good luck. 308 00:14:04,080 --> 00:14:05,360 Speaker 1: We wish you the best, and we hope that we've 309 00:14:05,400 --> 00:14:07,680 Speaker 1: pointed you in the right direction. Yes, good luck, Sarah, 310 00:14:07,880 --> 00:14:09,800 Speaker 1: and Matt. We've got more questions to get to, including 311 00:14:09,840 --> 00:14:12,920 Speaker 1: that ethical conundrum. We'll get to that next right after this. 312 00:14:21,760 --> 00:14:23,560 Speaker 1: All right, we are back from the break, and let's 313 00:14:23,560 --> 00:14:25,960 Speaker 1: get to that question where the answer may not be 314 00:14:26,040 --> 00:14:28,280 Speaker 1: black or white, we might be living in the gray. Hey, 315 00:14:28,320 --> 00:14:30,840 Speaker 1: Matt and Joel, this is Jessica from New Jersey. I 316 00:14:30,880 --> 00:14:33,880 Speaker 1: have an ethical money question for you. My very sweet 317 00:14:33,880 --> 00:14:37,200 Speaker 1: son takes a medication that's quite expensive, and the co 318 00:14:37,360 --> 00:14:40,600 Speaker 1: pay every three weeks is a hundred forty dollars. He'll 319 00:14:40,680 --> 00:14:42,960 Speaker 1: likely be on this medication for a couple of years. 320 00:14:43,720 --> 00:14:47,800 Speaker 1: The pharmaceutical company offers a co pay assistance program and 321 00:14:47,840 --> 00:14:51,240 Speaker 1: they don't ask too many questions. Um, they don't ask 322 00:14:51,280 --> 00:14:54,880 Speaker 1: an income verification question, and basically will help you with 323 00:14:54,920 --> 00:14:58,720 Speaker 1: the co payment if you request help. Technically we can 324 00:14:58,760 --> 00:15:01,600 Speaker 1: afford the co payment. But should I take this cope 325 00:15:01,600 --> 00:15:04,640 Speaker 1: assistance because it's being offered? Do you think that means 326 00:15:04,640 --> 00:15:07,160 Speaker 1: that someone less fortunate is not able to get the 327 00:15:07,160 --> 00:15:10,120 Speaker 1: copy assistance because I've taken it? What do you think? 328 00:15:10,520 --> 00:15:13,400 Speaker 1: Do it or not? Oh? All right, Matt, we're stepping 329 00:15:13,440 --> 00:15:16,160 Speaker 1: in it here with Jessica's question. But I appreciate this. 330 00:15:16,280 --> 00:15:18,880 Speaker 1: I appreciate this is I love this question because I 331 00:15:18,920 --> 00:15:21,000 Speaker 1: feel like these are situations that we find ourselves in 332 00:15:21,440 --> 00:15:23,680 Speaker 1: when it comes to is this the right thing to do? 333 00:15:23,800 --> 00:15:26,120 Speaker 1: It's like, well, you know, well, in this case, we're 334 00:15:26,120 --> 00:15:27,760 Speaker 1: gonna give what we think we and we've talked about 335 00:15:27,760 --> 00:15:28,960 Speaker 1: that on the show. There are different things that you 336 00:15:28,960 --> 00:15:31,960 Speaker 1: and I've done, Like I remember talking recently about parking 337 00:15:32,480 --> 00:15:35,640 Speaker 1: in that spot where the parking garage costs twenty bucks 338 00:15:35,680 --> 00:15:37,800 Speaker 1: an hour, and I parked for free outside of it, 339 00:15:38,040 --> 00:15:40,080 Speaker 1: hoping that I wasn't gonna get ticket, but realizing that 340 00:15:40,080 --> 00:15:42,240 Speaker 1: there was a real risk in that, and so you 341 00:15:42,280 --> 00:15:45,000 Speaker 1: got away your risk. We we all, yeah, whisk risk management. 342 00:15:45,040 --> 00:15:47,760 Speaker 1: We've all become much more well acquainted with the risk 343 00:15:47,880 --> 00:15:51,560 Speaker 1: management over the past eighteen months or so. But Jessica, Yeah, 344 00:15:51,720 --> 00:15:53,480 Speaker 1: it sounds like you're spending somewhere in the neighborhood of 345 00:15:54,920 --> 00:15:58,480 Speaker 1: every single year on this pharmaceutical drug, and that's a 346 00:15:58,520 --> 00:16:01,320 Speaker 1: lot of money. And so our short answer would be 347 00:16:01,440 --> 00:16:04,360 Speaker 1: to take advantage of the payment assistance. Yes, you you 348 00:16:04,400 --> 00:16:06,960 Speaker 1: probably don't have a major issue paying for the drug 349 00:16:07,000 --> 00:16:09,000 Speaker 1: because you've been good with your money for quite a while. 350 00:16:09,600 --> 00:16:12,800 Speaker 1: But whether it's ethical to apply for and receive the 351 00:16:12,800 --> 00:16:16,280 Speaker 1: codpay assistance, really, I would say, revolves around the parameters 352 00:16:16,280 --> 00:16:18,160 Speaker 1: that have been set up, and so it sounds like 353 00:16:18,240 --> 00:16:22,240 Speaker 1: you qualify according to the drug company's requirements. This program 354 00:16:22,280 --> 00:16:25,040 Speaker 1: was created to help people be able to afford a 355 00:16:25,200 --> 00:16:27,720 Speaker 1: drug that's prohibitively expensive, and as long as you're not 356 00:16:27,840 --> 00:16:30,080 Speaker 1: lying or cheating in order to gain the system, Like 357 00:16:30,240 --> 00:16:32,840 Speaker 1: if there's an income requirement and you're fudging the numbers 358 00:16:33,120 --> 00:16:35,400 Speaker 1: to try to fit under it so that you can qualify, 359 00:16:35,600 --> 00:16:38,360 Speaker 1: I would say that would be unethical. But since that's 360 00:16:38,360 --> 00:16:39,960 Speaker 1: not in the case, we would say, take advantage of 361 00:16:39,960 --> 00:16:42,720 Speaker 1: this offer. Yeah, you know, there are different prescription assistant 362 00:16:42,760 --> 00:16:45,600 Speaker 1: programs out there, and they each have their own guidelines. 363 00:16:46,000 --> 00:16:49,320 Speaker 1: Some will ask for more information from from you than others, 364 00:16:49,840 --> 00:16:53,120 Speaker 1: like both medical information and financial information, but others won't. 365 00:16:53,480 --> 00:16:56,280 Speaker 1: Some will have income caps, others won't have any caps 366 00:16:56,280 --> 00:16:59,280 Speaker 1: at all. And additionally, these programs aren't usually marketed well. 367 00:16:59,320 --> 00:17:01,440 Speaker 1: It seems like I don't I don't know if that's 368 00:17:01,600 --> 00:17:03,600 Speaker 1: a flaw or if that's part of the design. Like 369 00:17:03,680 --> 00:17:05,879 Speaker 1: often times it seems like that they offer these different 370 00:17:05,880 --> 00:17:08,240 Speaker 1: programs to say that this is something that they offer. 371 00:17:08,320 --> 00:17:10,480 Speaker 1: It's a part of the program, it's a part of 372 00:17:10,720 --> 00:17:13,360 Speaker 1: the rollouts of this drug. But it's like we don't 373 00:17:13,359 --> 00:17:16,320 Speaker 1: want everybody to know about it. It's just a little 374 00:17:16,320 --> 00:17:18,879 Speaker 1: hard to find. Fewer people will apply exactly, but you know, 375 00:17:19,000 --> 00:17:22,200 Speaker 1: these are an important resource for families like yours when 376 00:17:22,440 --> 00:17:25,960 Speaker 1: expensive prescriptions and meds become necessary, and so, at least 377 00:17:25,960 --> 00:17:29,240 Speaker 1: from my perspective, you are not doing anything unethical by 378 00:17:29,320 --> 00:17:32,280 Speaker 1: using this program the way that it was intended. Exactly. Yeah. 379 00:17:32,480 --> 00:17:34,440 Speaker 1: And there have been times in my life, Jessica, where 380 00:17:34,440 --> 00:17:37,119 Speaker 1: I've qualified for assistance from a hospital, from a medical 381 00:17:37,160 --> 00:17:41,200 Speaker 1: provider after a procedure. And did I have the money 382 00:17:41,280 --> 00:17:44,119 Speaker 1: in my savings account to pay for it? Yes? I did. Like, 383 00:17:44,240 --> 00:17:46,680 Speaker 1: could I have paid that three thousand dollar bill all 384 00:17:46,680 --> 00:17:48,640 Speaker 1: at once because I had the savings on hand because 385 00:17:48,680 --> 00:17:51,440 Speaker 1: I had been a good saver. Yes, But that doesn't 386 00:17:51,560 --> 00:17:54,320 Speaker 1: change the fact that, based on our family size and 387 00:17:54,359 --> 00:17:57,640 Speaker 1: our income amount, we qualified for forgiveness of a major 388 00:17:57,720 --> 00:18:00,040 Speaker 1: chunk of that bill. Well, and the fact is, and 389 00:18:00,040 --> 00:18:02,080 Speaker 1: if you didn't have the money in your account, someone 390 00:18:02,119 --> 00:18:04,200 Speaker 1: could argue that, like, well, I've got equity in my home, 391 00:18:04,280 --> 00:18:06,920 Speaker 1: so maybe I should tap that helock because technically I've 392 00:18:06,960 --> 00:18:09,560 Speaker 1: got some money somewhere. It just depends on what you 393 00:18:09,720 --> 00:18:13,040 Speaker 1: determine to be having that money on hand. Exactly. Yeah. 394 00:18:13,280 --> 00:18:15,000 Speaker 1: And but I really did have the money and savings 395 00:18:15,080 --> 00:18:16,400 Speaker 1: and I could have paid it, but I was like, 396 00:18:16,680 --> 00:18:18,800 Speaker 1: you know what, there's this there are these rules, there 397 00:18:18,840 --> 00:18:21,600 Speaker 1: are these parameters that say that I qualify for assistance, 398 00:18:21,680 --> 00:18:24,080 Speaker 1: I am going to use it. And there are financial 399 00:18:24,160 --> 00:18:28,359 Speaker 1: assistance programs on basically every hospital's website that they often have. 400 00:18:28,600 --> 00:18:31,639 Speaker 1: Those often have more stringent requirements, and you'll actually need 401 00:18:31,680 --> 00:18:34,040 Speaker 1: to prove your income or lack thereof in order to 402 00:18:34,119 --> 00:18:37,280 Speaker 1: receive that benefit. And I can totally see why the 403 00:18:37,480 --> 00:18:40,760 Speaker 1: kind of squishy nature of this pharmaceutical program has you 404 00:18:40,800 --> 00:18:43,840 Speaker 1: tied up in this ethel knot. It's it's nice when 405 00:18:44,040 --> 00:18:47,680 Speaker 1: there are clear boundaries so that resources would flow specifically 406 00:18:47,720 --> 00:18:50,280 Speaker 1: to the people most in need. But we would say 407 00:18:50,280 --> 00:18:52,960 Speaker 1: you're not taking anything from anyone else by taking advantage 408 00:18:52,960 --> 00:18:55,600 Speaker 1: of this benefit under the current rules that are in place, 409 00:18:55,920 --> 00:18:58,879 Speaker 1: nobody's getting the short end of the stick because you 410 00:18:58,960 --> 00:19:01,359 Speaker 1: take advantage of this offer. Well, except that you know, 411 00:19:01,440 --> 00:19:04,120 Speaker 1: I think this moral dilemma arises because we don't know 412 00:19:04,240 --> 00:19:07,480 Speaker 1: that with certainty, right, Like I completely understand her thought 413 00:19:07,560 --> 00:19:10,600 Speaker 1: process of like, well, if I take this assistance, and 414 00:19:10,640 --> 00:19:12,560 Speaker 1: that means that there's going to be one fewer family 415 00:19:12,840 --> 00:19:15,239 Speaker 1: out there who might really need it. But here's the thing, like, 416 00:19:15,400 --> 00:19:18,520 Speaker 1: if you don't take the assistance. There is no guarantee 417 00:19:18,560 --> 00:19:21,960 Speaker 1: that the needy family, uh you know, according to your definition, 418 00:19:22,200 --> 00:19:24,280 Speaker 1: will take advantage of it either. Like we only have 419 00:19:24,320 --> 00:19:26,800 Speaker 1: agency over the things that are within our own control. 420 00:19:27,119 --> 00:19:29,440 Speaker 1: That's how the world works. We have to advocate for ourselves. 421 00:19:29,560 --> 00:19:31,320 Speaker 1: It makes me think of episode three seventy seven. We 422 00:19:31,359 --> 00:19:33,800 Speaker 1: talked about paying less for virtually everything, and a big 423 00:19:33,840 --> 00:19:36,159 Speaker 1: part of paying less is asking for it. We have 424 00:19:36,200 --> 00:19:39,720 Speaker 1: to advocate for ourselves, and so to that end, maybe 425 00:19:39,800 --> 00:19:42,159 Speaker 1: a step that you can take to help alleviate some 426 00:19:42,240 --> 00:19:44,760 Speaker 1: of this tension that that you're experiencing, Like you take 427 00:19:44,800 --> 00:19:47,280 Speaker 1: the assistance, but you also make sure that everyone you 428 00:19:47,320 --> 00:19:50,320 Speaker 1: know who might also pay for that medication is aware 429 00:19:50,359 --> 00:19:53,520 Speaker 1: of the assistance as well, posting the Facebook groups or 430 00:19:53,520 --> 00:19:55,520 Speaker 1: something for other people who have similar struggles, or she 431 00:19:55,560 --> 00:19:58,160 Speaker 1: could even she could post anonymously, or she can start 432 00:19:58,160 --> 00:20:00,600 Speaker 1: a blog where she's talking about this specific the condition 433 00:20:00,920 --> 00:20:03,520 Speaker 1: for which the medication for her son helps. That kind 434 00:20:03,560 --> 00:20:05,399 Speaker 1: of thing, because I mean, we are all about paying 435 00:20:05,440 --> 00:20:08,240 Speaker 1: less and saving more on a personal level, but we're 436 00:20:08,240 --> 00:20:10,760 Speaker 1: also all about empowering others here on the show as well. 437 00:20:11,200 --> 00:20:13,119 Speaker 1: And Jess go we feel that this is something that 438 00:20:13,160 --> 00:20:15,240 Speaker 1: you could do. That's kind of similar to that. We 439 00:20:15,320 --> 00:20:17,800 Speaker 1: want you to take the action because you now have 440 00:20:17,880 --> 00:20:19,920 Speaker 1: the knowledge. You now know that this you know, you've 441 00:20:19,920 --> 00:20:22,960 Speaker 1: known that this assistance program exists, and we think that 442 00:20:23,000 --> 00:20:24,959 Speaker 1: it would be wise for you to move on that. 443 00:20:25,200 --> 00:20:27,199 Speaker 1: We want you to take advantage of the fact that 444 00:20:27,200 --> 00:20:30,000 Speaker 1: this is an option that is available to you, but 445 00:20:30,080 --> 00:20:32,240 Speaker 1: also reach out to make sure that others are aware 446 00:20:32,240 --> 00:20:34,280 Speaker 1: of it as well. Yeah, it's like share the wealth, 447 00:20:34,359 --> 00:20:36,639 Speaker 1: you know, like let other people know when you found 448 00:20:36,680 --> 00:20:38,119 Speaker 1: something awesome. That's what Matt and I want to do 449 00:20:38,119 --> 00:20:40,080 Speaker 1: on the show too. It's like, if we find something great, 450 00:20:40,119 --> 00:20:42,200 Speaker 1: if we find a good technique, there's a new way 451 00:20:42,240 --> 00:20:47,320 Speaker 1: to potentially make more money in interest on your savings account. Like, 452 00:20:47,359 --> 00:20:48,600 Speaker 1: we want to talk about this stuff. We want to 453 00:20:48,640 --> 00:20:51,040 Speaker 1: highlight that stuff, and you can be that to other people. 454 00:20:51,200 --> 00:20:53,000 Speaker 1: But Matt, let's get to the next question. This one 455 00:20:53,160 --> 00:20:56,800 Speaker 1: is about an interesting way to borrow money for a wedding. Hi, 456 00:20:56,920 --> 00:20:59,480 Speaker 1: Matt and Joel, this is Michelle from Minneapolis. I have 457 00:20:59,480 --> 00:21:01,800 Speaker 1: a question about taking out a line of credit against 458 00:21:01,800 --> 00:21:04,679 Speaker 1: an investment account. My fiance and I have been together 459 00:21:04,720 --> 00:21:07,439 Speaker 1: for almost six years seven by the time we get married, 460 00:21:07,880 --> 00:21:10,680 Speaker 1: so we have several joint assets together. One of those 461 00:21:10,720 --> 00:21:13,800 Speaker 1: assets is an investment account we opened recently with money 462 00:21:13,840 --> 00:21:16,720 Speaker 1: that we received from an early inheritance. We have no 463 00:21:16,760 --> 00:21:19,439 Speaker 1: other debt outside of one car payment, our mortgage, and 464 00:21:19,480 --> 00:21:22,600 Speaker 1: a mortgage on my mom's house. Our retirement accounts are 465 00:21:22,640 --> 00:21:25,679 Speaker 1: all exceeding, our goals are rods are maxed out, and 466 00:21:25,720 --> 00:21:28,840 Speaker 1: our emergency fund is fully funded. So basically we're in 467 00:21:28,840 --> 00:21:31,840 Speaker 1: a really good place financially, and this investment account is 468 00:21:31,840 --> 00:21:34,960 Speaker 1: pretty much just extra lifestyle money. At this point. We 469 00:21:35,080 --> 00:21:37,160 Speaker 1: told my investment guy that we plan on taking out 470 00:21:37,160 --> 00:21:40,560 Speaker 1: around forty dollars for our wedding next year, and that 471 00:21:40,640 --> 00:21:43,359 Speaker 1: wedding cost is a done deal at this point. He 472 00:21:43,480 --> 00:21:46,560 Speaker 1: recommended taking out a line of credit against that investment 473 00:21:46,560 --> 00:21:49,520 Speaker 1: account instead, and then paying it down over the next 474 00:21:49,600 --> 00:21:52,679 Speaker 1: three to five years from growth in the account. His 475 00:21:52,840 --> 00:21:55,440 Speaker 1: reasoning is that we avoid the extra capital gains tax 476 00:21:55,840 --> 00:21:57,919 Speaker 1: that we'd have to pay for withdrawing in less than 477 00:21:57,920 --> 00:22:01,120 Speaker 1: a year plus, allowing the account to continue to grow 478 00:22:01,240 --> 00:22:04,640 Speaker 1: an average rate of ten while only paying a smaller 479 00:22:04,800 --> 00:22:08,479 Speaker 1: around three interest on the loan. I guess my question 480 00:22:08,600 --> 00:22:12,040 Speaker 1: is this a good idea? Straight numbers wise? It makes 481 00:22:12,040 --> 00:22:14,080 Speaker 1: sense since we'd still be growing the account at a 482 00:22:14,160 --> 00:22:16,919 Speaker 1: higher rate than the loans interests that we're paying. But 483 00:22:17,000 --> 00:22:18,760 Speaker 1: I thought i'd check with you guys to see if 484 00:22:18,800 --> 00:22:21,520 Speaker 1: there's anything else I'm missing or what advice you might have. 485 00:22:21,840 --> 00:22:25,000 Speaker 1: Thanks Michelle, We appreciate you wanting to check in with 486 00:22:25,080 --> 00:22:28,280 Speaker 1: us before you decided to move forward with your your 487 00:22:28,359 --> 00:22:30,480 Speaker 1: money moved there. And by the way, congrats on the 488 00:22:30,600 --> 00:22:32,800 Speaker 1: upcoming wedding. That's really exciting for you. Do you think 489 00:22:32,800 --> 00:22:36,760 Speaker 1: Wenna get invited? Uncle, Uncle, Joel and Matt are not 490 00:22:36,800 --> 00:22:39,840 Speaker 1: invited to the wedding? Bumber saying it, But Michelle, you 491 00:22:39,880 --> 00:22:42,840 Speaker 1: said that that that forty tho or forty or fifty dollars, 492 00:22:42,880 --> 00:22:44,760 Speaker 1: it's a done deal. We're not going to belabor the point. 493 00:22:45,000 --> 00:22:47,880 Speaker 1: But for others out there, it is possible and probably 494 00:22:47,920 --> 00:22:50,960 Speaker 1: wise to maybe try and spend a little bit less 495 00:22:50,960 --> 00:22:54,639 Speaker 1: on a wedding overall, because, aside from COVID ruining a 496 00:22:54,640 --> 00:22:57,200 Speaker 1: lot of plans last year, the average cost of weddings 497 00:22:57,280 --> 00:23:00,400 Speaker 1: has been decreasing over the years. UH in twenty team, 498 00:23:00,480 --> 00:23:03,040 Speaker 1: the average cost of a wedding in reception combined was 499 00:23:03,119 --> 00:23:05,639 Speaker 1: twenty eight thousand dollars. You know, we're gonna skip over 500 00:23:05,720 --> 00:23:08,400 Speaker 1: last year's numbers since it's not really indicative of what's typical. 501 00:23:08,920 --> 00:23:12,480 Speaker 1: But spending fifty dollars is way above average, which is 502 00:23:12,480 --> 00:23:15,000 Speaker 1: totally fine, Michelle. If this is going to be your 503 00:23:15,000 --> 00:23:18,159 Speaker 1: craft beer equivalent, we don't want to dissuade you from 504 00:23:18,200 --> 00:23:20,560 Speaker 1: doing something that's really important to you. And of course, 505 00:23:20,720 --> 00:23:23,119 Speaker 1: you know, people get you know, weddings, marriage, This is 506 00:23:23,240 --> 00:23:25,919 Speaker 1: a very important thing. But it doesn't necessarily mean that 507 00:23:25,960 --> 00:23:29,040 Speaker 1: everyone out there has to automatically spend top dollar. And 508 00:23:29,119 --> 00:23:32,439 Speaker 1: especially when we're talking about quantities of money this large. 509 00:23:32,520 --> 00:23:36,400 Speaker 1: You know, when your craft beer equivalent is fifty dollars, Uh, 510 00:23:36,440 --> 00:23:39,119 Speaker 1: it's worth pausing and kind of thinking things through. It 511 00:23:39,160 --> 00:23:41,359 Speaker 1: makes me think about how striving to be average is 512 00:23:41,440 --> 00:23:43,520 Speaker 1: not necessarily what we're going for here. On the show 513 00:23:43,680 --> 00:23:45,440 Speaker 1: a few weeks ago, we talked about how the cost 514 00:23:45,440 --> 00:23:49,440 Speaker 1: of a new car is averaging over forty five dollars. 515 00:23:49,800 --> 00:23:52,040 Speaker 1: That is a ton of money to spend on a vehicle. 516 00:23:52,400 --> 00:23:55,760 Speaker 1: That's an instance like trucks or sixty dollars. Right, that's 517 00:23:55,760 --> 00:23:58,160 Speaker 1: an instance where we don't necessarily want you to be average. 518 00:23:58,400 --> 00:24:00,480 Speaker 1: We want you to spend much less than average. And 519 00:24:00,520 --> 00:24:03,199 Speaker 1: so if you are, if you do find yourself in 520 00:24:03,240 --> 00:24:05,440 Speaker 1: a situation where you're spending an average amount of money 521 00:24:05,520 --> 00:24:07,480 Speaker 1: or even a little bit more, we want you to 522 00:24:07,560 --> 00:24:09,920 Speaker 1: actually think about that and to make sure that that's 523 00:24:09,920 --> 00:24:12,000 Speaker 1: something that you're doing with your eyes wide open, that 524 00:24:12,040 --> 00:24:14,919 Speaker 1: you're doing incredibly intentionally. Yeah. I think similarly to kind 525 00:24:14,920 --> 00:24:16,520 Speaker 1: of how we talk about in your budget, there's two 526 00:24:16,600 --> 00:24:19,399 Speaker 1: or three items that you should spend an outsized amount 527 00:24:19,400 --> 00:24:22,359 Speaker 1: of money on because you've identified them as really important 528 00:24:22,359 --> 00:24:24,080 Speaker 1: to you. The same thing should probably be true when 529 00:24:24,119 --> 00:24:26,679 Speaker 1: you're planning a wedding. It's like, Okay, the venue is important, 530 00:24:26,720 --> 00:24:28,880 Speaker 1: and the photographer is important, and the food I don't 531 00:24:28,880 --> 00:24:31,600 Speaker 1: care if it's McDonald's or whatever, Like it's probably not 532 00:24:31,600 --> 00:24:34,600 Speaker 1: gonna be that cormming. But you know, picking and choosing 533 00:24:34,640 --> 00:24:36,840 Speaker 1: those areas because most of us have a limited budget 534 00:24:36,880 --> 00:24:40,399 Speaker 1: and trying to keep it within reason is important. And 535 00:24:40,440 --> 00:24:42,320 Speaker 1: so pick those couple of areas where you're like that, 536 00:24:42,600 --> 00:24:44,520 Speaker 1: you know what, the pictures are the most important to me, 537 00:24:44,920 --> 00:24:46,520 Speaker 1: or the food is the most important to me, and 538 00:24:46,960 --> 00:24:49,800 Speaker 1: I'm gonna have those little cheap cameras on every table, 539 00:24:49,840 --> 00:24:51,560 Speaker 1: like what you know, whatever it is, or maybe it's 540 00:24:51,560 --> 00:24:53,920 Speaker 1: like having a live band because we love the party. 541 00:24:54,200 --> 00:24:56,120 Speaker 1: So we want to be not just a great live band, 542 00:24:56,119 --> 00:24:57,920 Speaker 1: but a band that we can do rock a rokey with. 543 00:24:58,320 --> 00:25:00,440 Speaker 1: If every know, I happen to an event where there's 544 00:25:00,480 --> 00:25:02,280 Speaker 1: a live band that you can sing with, sounds like fun, 545 00:25:02,560 --> 00:25:04,840 Speaker 1: it is the best. But then yeah, maybe you choose 546 00:25:04,880 --> 00:25:07,040 Speaker 1: the band, but you get married in a neighbor's back 547 00:25:07,080 --> 00:25:09,120 Speaker 1: character or something like that. Right, So those are tread 548 00:25:09,160 --> 00:25:11,760 Speaker 1: of tradeoffs that are that are worth considering. But let's 549 00:25:11,760 --> 00:25:13,840 Speaker 1: move on and get to Michelle's question the heart of it, 550 00:25:13,960 --> 00:25:16,320 Speaker 1: And yeah, there is truth to the fact that you 551 00:25:16,400 --> 00:25:19,280 Speaker 1: encourage tax bill when you sell a security. If your 552 00:25:19,320 --> 00:25:22,240 Speaker 1: index funds have been humming along, and uh, you know, 553 00:25:22,320 --> 00:25:24,320 Speaker 1: you take out a good chunk, you're gonna pay tax 554 00:25:24,359 --> 00:25:27,080 Speaker 1: on the gains that you withdraw, albeit at a favorable 555 00:25:27,119 --> 00:25:30,240 Speaker 1: long term rate capital gains rate of fifteen. But we 556 00:25:30,280 --> 00:25:32,600 Speaker 1: would say, yeah, finding a way to avoid taxes when 557 00:25:32,600 --> 00:25:35,159 Speaker 1: you can it does make sense. But is this the 558 00:25:35,160 --> 00:25:37,320 Speaker 1: best way to go about it? Right, Like, what you're 559 00:25:37,320 --> 00:25:40,000 Speaker 1: talking about is taking out a margin loan, and if 560 00:25:40,000 --> 00:25:43,520 Speaker 1: that investment portfolio of yours continues to rise, then borrowing 561 00:25:43,600 --> 00:25:46,000 Speaker 1: against your investments isn't really that big of a deal. 562 00:25:46,040 --> 00:25:47,600 Speaker 1: It's not gonna harm you as long as you pay 563 00:25:47,600 --> 00:25:50,399 Speaker 1: back the loan has agreed. But it is risky because 564 00:25:50,440 --> 00:25:52,879 Speaker 1: if your portfolio takes a hit, if the stock market 565 00:25:52,960 --> 00:25:55,800 Speaker 1: runs into some severe headwinds, you can face a margin call. 566 00:25:55,960 --> 00:25:58,119 Speaker 1: You have to bring money to the table immediately, and 567 00:25:58,160 --> 00:25:59,760 Speaker 1: then if you don't have the funds, you might have 568 00:25:59,760 --> 00:26:01,680 Speaker 1: to say more of your investments in order to meet 569 00:26:01,680 --> 00:26:04,520 Speaker 1: that minimum requirement in your account, and you'd be selling 570 00:26:04,520 --> 00:26:08,040 Speaker 1: those investments at a really inopportune time. And so that 571 00:26:08,160 --> 00:26:11,000 Speaker 1: is why three sounds really good. But there are some 572 00:26:11,080 --> 00:26:13,879 Speaker 1: like real risks involved with doing that. Yeah, And on 573 00:26:13,960 --> 00:26:16,119 Speaker 1: top of that too, you know there are still likely 574 00:26:16,160 --> 00:26:18,480 Speaker 1: going to be better options out there for you, like 575 00:26:18,520 --> 00:26:21,040 Speaker 1: ones that pose less risk because you know, again, if 576 00:26:21,040 --> 00:26:23,440 Speaker 1: you had a marginal loan back in March of last year, 577 00:26:23,840 --> 00:26:27,159 Speaker 1: could have posed a serious problem for you. You mentioned 578 00:26:27,160 --> 00:26:29,320 Speaker 1: that you own a home, and so here's an alternative, Like, 579 00:26:29,359 --> 00:26:32,280 Speaker 1: what if instead you take out a helock on that home. 580 00:26:32,800 --> 00:26:35,080 Speaker 1: If you've owned it for any length of time, You're 581 00:26:35,080 --> 00:26:37,879 Speaker 1: you're gonna have some equity in that house. Rates are 582 00:26:37,920 --> 00:26:42,119 Speaker 1: still incredibly low on helocks in the upper threes, you know, 583 00:26:42,160 --> 00:26:44,720 Speaker 1: most likely from your local credit union. And then another 584 00:26:44,760 --> 00:26:47,000 Speaker 1: bonus is that those usually come at no cost to 585 00:26:47,200 --> 00:26:49,800 Speaker 1: you and no closing costs. You're just paying interest on 586 00:26:49,840 --> 00:26:52,200 Speaker 1: the amount that you borrow, which I love too, because 587 00:26:52,200 --> 00:26:54,239 Speaker 1: you're also I don't know, it encourages you. I mean, 588 00:26:54,240 --> 00:26:56,200 Speaker 1: I guess in a similar way to take borrowing money 589 00:26:56,200 --> 00:26:58,480 Speaker 1: on an investment account. But it's still encourages you to 590 00:26:58,560 --> 00:27:01,000 Speaker 1: take out as little as possible. It's not like you're 591 00:27:01,320 --> 00:27:03,000 Speaker 1: you know, we don't want you to take out a 592 00:27:03,040 --> 00:27:05,399 Speaker 1: home equity loan where it's like, Okay, we've got this 593 00:27:05,440 --> 00:27:07,879 Speaker 1: fat chunk. Now that we have it, we're gonna spend it. 594 00:27:08,440 --> 00:27:11,480 Speaker 1: I like the idea of just these small, different things 595 00:27:11,560 --> 00:27:13,960 Speaker 1: that will encourage you to try to spend less. Yeah, 596 00:27:14,000 --> 00:27:16,040 Speaker 1: And the ideal way to pay for a wedding or 597 00:27:16,080 --> 00:27:18,520 Speaker 1: any big event like this is to do so with savings. 598 00:27:18,720 --> 00:27:21,960 Speaker 1: And this is an instance where planning ahead is so important. 599 00:27:22,040 --> 00:27:24,040 Speaker 1: And usually it sounds like Michelle has been in this 600 00:27:24,080 --> 00:27:25,960 Speaker 1: relationship a long time and engaged for a while, and 601 00:27:26,000 --> 00:27:28,840 Speaker 1: so this was something they saw coming and so saving 602 00:27:28,880 --> 00:27:31,679 Speaker 1: up ahead of time, even putting less towards investments for 603 00:27:31,680 --> 00:27:33,320 Speaker 1: the time being, so that you can have that pile 604 00:27:33,359 --> 00:27:35,479 Speaker 1: of cash on hand to pay for it. It's just 605 00:27:35,560 --> 00:27:37,080 Speaker 1: it's the best way to go. So that way you're 606 00:27:37,080 --> 00:27:40,200 Speaker 1: paying nothing in order to fund that wedding exactly. Yeah, 607 00:27:40,280 --> 00:27:43,240 Speaker 1: we'd rather pay no interest at all for all of 608 00:27:43,240 --> 00:27:45,480 Speaker 1: those different wedding expenses that you're going to rack up. 609 00:27:45,640 --> 00:27:47,639 Speaker 1: And so yeah, looking ahead a couple of years, giving 610 00:27:47,720 --> 00:27:50,560 Speaker 1: yourself time to be able to set and reach financial 611 00:27:50,600 --> 00:27:53,560 Speaker 1: goals like paying for a wedding with cash is the 612 00:27:53,600 --> 00:27:56,080 Speaker 1: best financial move. But you know, we would say it 613 00:27:56,160 --> 00:27:59,520 Speaker 1: sounds like y'all have focused heavily on investing and you're 614 00:27:59,560 --> 00:28:02,720 Speaker 1: doing really well there. So yeah, regardless of what route 615 00:28:02,760 --> 00:28:04,760 Speaker 1: you take, I wouldn't be afraid to dial back on 616 00:28:04,800 --> 00:28:07,760 Speaker 1: some of those contributions until you're able to fully pay 617 00:28:07,800 --> 00:28:10,119 Speaker 1: off what you borrow for the wedding, because yeah, I 618 00:28:10,160 --> 00:28:12,280 Speaker 1: would be not sitting on pins and needles if I 619 00:28:12,280 --> 00:28:14,399 Speaker 1: took out that loan against my investments, but I would be, like, 620 00:28:14,600 --> 00:28:16,120 Speaker 1: I would be chomping at the bit to to pay 621 00:28:16,119 --> 00:28:18,480 Speaker 1: it back as quickly as possible because of that risky 622 00:28:18,480 --> 00:28:20,959 Speaker 1: position that I'd be in. So Michelle, best of luck 623 00:28:21,000 --> 00:28:24,399 Speaker 1: to you. Hopefully that Helock is a better suggestion for 624 00:28:24,560 --> 00:28:26,880 Speaker 1: you paying for this wedding and hopefully you pay back 625 00:28:26,880 --> 00:28:29,560 Speaker 1: off really quickly. Joel, how about a quick rapid fire around. 626 00:28:29,640 --> 00:28:32,200 Speaker 1: What's something that you and Emily did to save money 627 00:28:32,280 --> 00:28:36,000 Speaker 1: when y'all got married. Okay, paper flowers. Oh that's the 628 00:28:36,160 --> 00:28:38,280 Speaker 1: That's the main thing. I would say. We we saw 629 00:28:38,400 --> 00:28:40,600 Speaker 1: like the bill, like what it was gonna cost, Like 630 00:28:41,040 --> 00:28:42,920 Speaker 1: the floris. We spent a decent amount on the venue 631 00:28:42,960 --> 00:28:46,400 Speaker 1: we got married at the Memphis Zoo. It was wonderful. Yeah, 632 00:28:46,400 --> 00:28:48,320 Speaker 1: not at the Memphis Zoo, but we spent a decent money, 633 00:28:48,320 --> 00:28:50,280 Speaker 1: a decent amount of money on our venue as well. Okay, 634 00:28:50,280 --> 00:28:51,960 Speaker 1: but yeah, the paper flowers, it was like, well, save 635 00:28:52,400 --> 00:28:55,080 Speaker 1: hundreds and hundreds and hundreds of dollars when it comes 636 00:28:55,080 --> 00:28:57,960 Speaker 1: to a floral costs. And yeah, it looked super cute. 637 00:28:57,960 --> 00:28:59,480 Speaker 1: And I remember too when we first met shall you 638 00:28:59,560 --> 00:29:03,160 Speaker 1: actually had those paper flowers around your house decorating your 639 00:29:03,160 --> 00:29:04,800 Speaker 1: house as well, So that's something you got to enjoy 640 00:29:04,880 --> 00:29:07,320 Speaker 1: a long time for For us, one of the things 641 00:29:07,320 --> 00:29:08,640 Speaker 1: I look back on, Kate, and now we're able to 642 00:29:08,640 --> 00:29:13,240 Speaker 1: save by not hiring an official wedding cake baker or whatever, 643 00:29:13,320 --> 00:29:15,440 Speaker 1: Like we got cakes from Publix. We had to make 644 00:29:15,480 --> 00:29:17,520 Speaker 1: white cakes and when we added little things to make 645 00:29:17,560 --> 00:29:20,120 Speaker 1: them look more wedding like, uh, and we kind of 646 00:29:20,160 --> 00:29:22,640 Speaker 1: have like these different cakes arranged and a good thing too, 647 00:29:22,640 --> 00:29:25,520 Speaker 1: because one of them fell on the floor, so like 648 00:29:25,640 --> 00:29:27,600 Speaker 1: we had like four other cakes some show. We hope 649 00:29:27,600 --> 00:29:29,600 Speaker 1: that gives you maybe just a couple of ideas on 650 00:29:29,880 --> 00:29:32,800 Speaker 1: ways that you can save on this wedding. Joel. We've 651 00:29:32,840 --> 00:29:34,320 Speaker 1: got a couple more questions that we're gonna get to, 652 00:29:34,400 --> 00:29:37,720 Speaker 1: including that one about buying a home to combats inflation. 653 00:29:37,760 --> 00:29:40,360 Speaker 1: Will get to that one plus another right after this break, 654 00:29:49,040 --> 00:29:51,520 Speaker 1: all right, we'll back. Inflation, of course, is top of 655 00:29:51,520 --> 00:29:53,680 Speaker 1: mind for so many folks right now. And we've got 656 00:29:53,720 --> 00:29:55,520 Speaker 1: a question from a listener who's trying to do something 657 00:29:55,560 --> 00:29:59,360 Speaker 1: about it, Joel, and that My name is Will. I 658 00:29:59,480 --> 00:30:03,320 Speaker 1: live in Jersey and I just got engaged. My fancy 659 00:30:03,320 --> 00:30:05,600 Speaker 1: and I we currently make a hundred and thirty one 660 00:30:05,640 --> 00:30:08,400 Speaker 1: thousand a year combined, and I have a hundred and 661 00:30:08,400 --> 00:30:11,240 Speaker 1: ten thousand dollars sitting in a high yield savings account, 662 00:30:11,280 --> 00:30:15,640 Speaker 1: which it's pretty stupid. I know. My credit score is 663 00:30:15,640 --> 00:30:19,000 Speaker 1: in the load in mid eight hundreds. My fiance, she's 664 00:30:19,040 --> 00:30:22,240 Speaker 1: in the mid six hundreds. She's been in her job 665 00:30:22,280 --> 00:30:25,000 Speaker 1: for over a decade, where I started mine next week 666 00:30:25,880 --> 00:30:29,360 Speaker 1: after a long period of pandemic unemployment. The thing is, 667 00:30:29,640 --> 00:30:31,920 Speaker 1: as we joined forces, so have the job stability in 668 00:30:31,920 --> 00:30:35,080 Speaker 1: the higher income, while I'll have the higher credit score 669 00:30:35,080 --> 00:30:37,360 Speaker 1: in the savings. So I hope that was a decent 670 00:30:37,360 --> 00:30:39,840 Speaker 1: side of to my question, which is we really like 671 00:30:39,920 --> 00:30:42,680 Speaker 1: where we live, we like the town. We do spend 672 00:30:42,680 --> 00:30:45,719 Speaker 1: about two grand a month in rent and are worried 673 00:30:45,720 --> 00:30:49,160 Speaker 1: about inflation. So I'm thinking about all the money in 674 00:30:49,200 --> 00:30:52,200 Speaker 1: the banks that to lose value. Is this a good 675 00:30:52,240 --> 00:30:54,240 Speaker 1: time for us to take some of that and buy 676 00:30:54,240 --> 00:30:57,640 Speaker 1: a home. We really enjoy listening, and you guys got 677 00:30:57,680 --> 00:31:01,560 Speaker 1: us through some pretty dark times of past year. I 678 00:31:01,600 --> 00:31:03,920 Speaker 1: really thank you for your insight and advice. And hey, 679 00:31:03,960 --> 00:31:05,160 Speaker 1: if we buy a place, we'll have a lot of 680 00:31:05,240 --> 00:31:08,400 Speaker 1: room to uh put our costco purchases. Thanks again, Take 681 00:31:08,440 --> 00:31:10,840 Speaker 1: care man. We got a lot of like matrimonial stuff 682 00:31:10,880 --> 00:31:15,040 Speaker 1: happening in this congrest a will on getting engaged. That 683 00:31:15,120 --> 00:31:18,280 Speaker 1: commitment alongside that, that costco commitment, that the marriage and 684 00:31:18,280 --> 00:31:22,040 Speaker 1: costco commitment I think of them is equally uh deep 685 00:31:22,080 --> 00:31:25,160 Speaker 1: and wonderful equally important to know what you're about to say. Sorry, Emily, 686 00:31:25,160 --> 00:31:27,840 Speaker 1: I don't really mean that, but they're gonna be They're 687 00:31:27,840 --> 00:31:29,240 Speaker 1: both going to serve you well for a long period 688 00:31:29,240 --> 00:31:31,720 Speaker 1: of time. And it is true having more square footage 689 00:31:31,800 --> 00:31:33,680 Speaker 1: is the best way to be able to take advantage 690 00:31:33,720 --> 00:31:36,200 Speaker 1: of a costco membership. But gotta have a place to 691 00:31:36,240 --> 00:31:39,760 Speaker 1: store the stuff. Well, you are in a good financial spot, 692 00:31:39,800 --> 00:31:42,120 Speaker 1: with a great credit score, lots of savings on hand, 693 00:31:42,560 --> 00:31:44,680 Speaker 1: and I'm gonna say it is not stupid to have 694 00:31:44,840 --> 00:31:47,000 Speaker 1: access to liquid money. You know that cash in your 695 00:31:47,000 --> 00:31:50,080 Speaker 1: savings account, but you are likelyholding more than you should. 696 00:31:50,520 --> 00:31:52,680 Speaker 1: You really only need enough money to cover an emergency, 697 00:31:53,200 --> 00:31:55,840 Speaker 1: and so having three to six months worth of expenses 698 00:31:55,880 --> 00:31:58,520 Speaker 1: on hand is where we want to see most folks sitting. 699 00:31:58,840 --> 00:32:01,280 Speaker 1: And depending on your jobs, that suation how flexible your 700 00:32:01,280 --> 00:32:04,080 Speaker 1: expenses are. It could make sense to make it even bigger. 701 00:32:04,440 --> 00:32:08,000 Speaker 1: But my guess is that thousand dollars far exceeds six 702 00:32:08,040 --> 00:32:10,840 Speaker 1: months worth of expenses for you and your fiance. I 703 00:32:10,840 --> 00:32:13,080 Speaker 1: don't know that every other week. Yeah, rental is is 704 00:32:13,120 --> 00:32:17,760 Speaker 1: expensive for well, but that's where flexible expenses come into play, 705 00:32:17,800 --> 00:32:19,920 Speaker 1: because that's something well, you should be able to easily 706 00:32:19,960 --> 00:32:24,080 Speaker 1: cut cut, cut the yacht. But the only other reason 707 00:32:24,160 --> 00:32:26,960 Speaker 1: to have you know that that much money in savings 708 00:32:27,000 --> 00:32:29,400 Speaker 1: will is if you need a lot of money for 709 00:32:29,440 --> 00:32:32,120 Speaker 1: something like a home down payment, which actually gets to 710 00:32:32,200 --> 00:32:34,800 Speaker 1: the heart of your question. Yes, yes it does. So 711 00:32:35,040 --> 00:32:38,760 Speaker 1: we would say, uh, we love your desire will to 712 00:32:38,800 --> 00:32:42,160 Speaker 1: combat inflation. It's a money killer over the long term 713 00:32:42,240 --> 00:32:45,040 Speaker 1: and over the short term we've seen real spikes in 714 00:32:45,240 --> 00:32:47,840 Speaker 1: the kind of inflation that we're seeing. But here's the thing, 715 00:32:47,880 --> 00:32:50,200 Speaker 1: we would say, don't buy a house if the main 716 00:32:50,320 --> 00:32:53,960 Speaker 1: reason is that you're trying to combat inflation. Owning a home, 717 00:32:54,280 --> 00:32:56,960 Speaker 1: especially if you have a really super low interest rate 718 00:32:56,960 --> 00:33:00,000 Speaker 1: on a mortgage, can be a helpful hedge against inflay. 719 00:33:00,520 --> 00:33:02,080 Speaker 1: But you buy a house because you want to put 720 00:33:02,120 --> 00:33:05,360 Speaker 1: down roots for an extended period of time. You you 721 00:33:05,400 --> 00:33:08,520 Speaker 1: buy a home as a lifestyle move, not as an 722 00:33:08,520 --> 00:33:11,080 Speaker 1: investment decision. Right, there are other ways to get that 723 00:33:11,120 --> 00:33:13,440 Speaker 1: money out of savings that can have a bigger impact 724 00:33:13,440 --> 00:33:17,000 Speaker 1: on your wealth building over time, especially if they desired 725 00:33:17,000 --> 00:33:19,200 Speaker 1: to own a home really is only for this purpose, 726 00:33:19,400 --> 00:33:21,760 Speaker 1: and it's not like a long term move. It's not 727 00:33:21,840 --> 00:33:24,400 Speaker 1: that desire to kind of be in a place and 728 00:33:24,480 --> 00:33:27,480 Speaker 1: be in that particular home, specifically for an extended period 729 00:33:27,520 --> 00:33:29,200 Speaker 1: of time. Yeah, And the other thing too is I 730 00:33:29,200 --> 00:33:31,760 Speaker 1: love that Will is focused on inflation. But the thing 731 00:33:31,880 --> 00:33:34,800 Speaker 1: is is that inflation it's always there. And so while 732 00:33:34,920 --> 00:33:36,680 Speaker 1: it's it is more of the headlines right now because 733 00:33:36,680 --> 00:33:38,400 Speaker 1: it is a little bit higher than it has been, 734 00:33:38,880 --> 00:33:41,680 Speaker 1: it's something that the media focuses attention on, and so 735 00:33:41,760 --> 00:33:44,000 Speaker 1: I'm glad that it's something that we're talking about. But 736 00:33:44,120 --> 00:33:46,560 Speaker 1: guess what, when the media isn't talking about it, it's 737 00:33:46,560 --> 00:33:49,080 Speaker 1: still there. It's still sitting there in the background, just 738 00:33:49,120 --> 00:33:51,520 Speaker 1: going unnoticed by most of us, eating away at all 739 00:33:51,560 --> 00:33:53,920 Speaker 1: that money you've got sitting there, and your your savings 740 00:33:53,960 --> 00:33:56,600 Speaker 1: account will And so I am very glad that this 741 00:33:56,640 --> 00:33:58,800 Speaker 1: is something you're paying attention to, but I want you 742 00:33:58,880 --> 00:34:01,560 Speaker 1: to continue to think of out at even after all 743 00:34:01,560 --> 00:34:04,040 Speaker 1: the headlines go away. And you know, you talked about 744 00:34:04,080 --> 00:34:06,640 Speaker 1: how you're spending two thousand dollars a month on rent. 745 00:34:07,080 --> 00:34:10,080 Speaker 1: We wanted to highlight that that isn't you throwing money away. 746 00:34:10,440 --> 00:34:12,040 Speaker 1: And this is important to note because a lot of 747 00:34:12,040 --> 00:34:14,560 Speaker 1: renters feel like that they're just throwing money away, but 748 00:34:14,640 --> 00:34:17,040 Speaker 1: that rent, that money is giving you a place to 749 00:34:17,080 --> 00:34:20,359 Speaker 1: live and you aren't responsible for the repairs. It makes 750 00:34:20,360 --> 00:34:23,480 Speaker 1: me think of the old mitch Heedburg joke where he's like, oh, 751 00:34:23,560 --> 00:34:25,960 Speaker 1: what's a home depot yesterday? But that was unnecessary. I 752 00:34:26,000 --> 00:34:28,200 Speaker 1: need to go to apartment depot or there's a bunch 753 00:34:28,200 --> 00:34:31,480 Speaker 1: of people standing around saying I don't have to fix anything. Uh, 754 00:34:31,480 --> 00:34:33,560 Speaker 1: it's a will. While buying a home like that could 755 00:34:33,600 --> 00:34:35,319 Speaker 1: be an awesome decision for y'all. You know, as you 756 00:34:35,320 --> 00:34:37,759 Speaker 1: get married, and especially since you've got a huge chunk 757 00:34:37,800 --> 00:34:39,960 Speaker 1: that you can put towards that down payment where you're 758 00:34:39,960 --> 00:34:42,480 Speaker 1: putting down at least, you'll want to make sure that 759 00:34:42,560 --> 00:34:44,759 Speaker 1: you only go in that direction if you're planning to 760 00:34:44,840 --> 00:34:47,120 Speaker 1: own that home for at least seven years. But if 761 00:34:47,120 --> 00:34:49,560 Speaker 1: you're looking at any time period less than that, there 762 00:34:49,640 --> 00:34:51,120 Speaker 1: is a chance that you might have to even come 763 00:34:51,160 --> 00:34:53,000 Speaker 1: to the table with some money in hand because of 764 00:34:53,000 --> 00:34:56,120 Speaker 1: market swings in the additional transaction costs, and so that's 765 00:34:56,120 --> 00:34:57,839 Speaker 1: something that you want to keep in mind. Yeah, so 766 00:34:57,880 --> 00:35:00,080 Speaker 1: buying a home can make sense, like Matt said, you 767 00:35:00,080 --> 00:35:03,080 Speaker 1: want to be there seven plus years. Otherwise, renting can 768 00:35:03,160 --> 00:35:06,480 Speaker 1: really make sense for you, because if owning a home 769 00:35:06,520 --> 00:35:08,520 Speaker 1: long term sounds like it forces you to stay put 770 00:35:08,960 --> 00:35:11,080 Speaker 1: right where you are and when you might otherwise prefer 771 00:35:11,160 --> 00:35:14,160 Speaker 1: to move for a job, for lifestyle, to be closer 772 00:35:14,160 --> 00:35:16,480 Speaker 1: to family, any of those things. Or if you think 773 00:35:16,520 --> 00:35:18,560 Speaker 1: that the house you buy would only be like this 774 00:35:18,640 --> 00:35:20,960 Speaker 1: short term fix and you want to sell the home 775 00:35:21,000 --> 00:35:22,759 Speaker 1: and upgrade to something larger in the next two to 776 00:35:22,840 --> 00:35:25,680 Speaker 1: three years, it's probably not a great move. And there 777 00:35:25,680 --> 00:35:27,919 Speaker 1: are other positive things you can do with the money 778 00:35:27,920 --> 00:35:30,799 Speaker 1: that's in savings, like investing it in the market in 779 00:35:30,880 --> 00:35:33,080 Speaker 1: a total stock market index funds something like that, Like 780 00:35:33,239 --> 00:35:36,560 Speaker 1: if you haven't done a great job prioritizing tax advantage 781 00:35:36,600 --> 00:35:39,920 Speaker 1: retirement accounts, we suggest going hard in that direction. The 782 00:35:39,960 --> 00:35:41,960 Speaker 1: more money you have in the market, the better off 783 00:35:42,040 --> 00:35:44,719 Speaker 1: those funds are going to be. And so yeah, so 784 00:35:44,840 --> 00:35:47,600 Speaker 1: much of this decision comes down to where you see 785 00:35:47,600 --> 00:35:50,480 Speaker 1: yourself in the next five to ten years, and if 786 00:35:50,560 --> 00:35:54,160 Speaker 1: you and you're soon to be spouse, see yourself putting 787 00:35:54,160 --> 00:35:57,000 Speaker 1: down roots long term in this specific place where you're 788 00:35:57,000 --> 00:35:58,719 Speaker 1: looking to buy a house. This can make sense on 789 00:35:58,800 --> 00:36:02,000 Speaker 1: multiple levels. But again, you don't just buy a home 790 00:36:02,280 --> 00:36:04,880 Speaker 1: in order to stick it to the inflationary forces that 791 00:36:04,920 --> 00:36:07,640 Speaker 1: are moving around you. That's right, let's go head get 792 00:36:07,640 --> 00:36:09,560 Speaker 1: to our next question. This is from a listener who 793 00:36:09,640 --> 00:36:14,640 Speaker 1: has had some dramatic but positive life changes. Hi, Joel H. Matte, 794 00:36:14,760 --> 00:36:18,640 Speaker 1: This is Ashley from Richmond, Virginia. I'd first like to 795 00:36:18,680 --> 00:36:21,759 Speaker 1: say I love your show. You guys do such an 796 00:36:21,800 --> 00:36:27,319 Speaker 1: awesome job of breaking down those complicated financial scenarios and 797 00:36:27,400 --> 00:36:32,640 Speaker 1: making them relatable to individuals and how it can relate 798 00:36:32,680 --> 00:36:36,239 Speaker 1: to that individual's life. And second, and I'm related to 799 00:36:36,280 --> 00:36:38,600 Speaker 1: the question that I have for you guys. My husband 800 00:36:38,600 --> 00:36:42,399 Speaker 1: and I just had our first baby, and we were 801 00:36:43,280 --> 00:36:46,960 Speaker 1: looking to kind of check off a couple of boxes 802 00:36:47,120 --> 00:36:51,480 Speaker 1: on some considerations from a financial standpoint that we could 803 00:36:52,560 --> 00:36:56,920 Speaker 1: look into for our newborn baby. So we are open 804 00:36:57,000 --> 00:37:00,799 Speaker 1: to suggestions, advice, kind of whatever you guys have to 805 00:37:00,920 --> 00:37:03,759 Speaker 1: offer in relation to that question. So I like for 806 00:37:03,960 --> 00:37:06,640 Speaker 1: de heeren to you guys and keep up the optome work, 807 00:37:07,400 --> 00:37:10,640 Speaker 1: all right, Ashley, congrats on the baby. Yeah, thanks are 808 00:37:10,680 --> 00:37:13,920 Speaker 1: the best. My dude's already like little dudes. We've got 809 00:37:13,960 --> 00:37:16,200 Speaker 1: three kids. A little dude. He's too and like he's 810 00:37:16,200 --> 00:37:18,120 Speaker 1: starting out grow some of that baby stuff and I'm 811 00:37:18,120 --> 00:37:20,440 Speaker 1: missing the baby phase already. It's so sweet. It is 812 00:37:20,440 --> 00:37:22,799 Speaker 1: so sweet. It's like it takes all of your time 813 00:37:22,840 --> 00:37:25,520 Speaker 1: and attention and care, but it's also like it pays 814 00:37:25,560 --> 00:37:28,279 Speaker 1: back introves. That's true. And you know, I'm glad that 815 00:37:28,360 --> 00:37:30,600 Speaker 1: Actuley's asking this. It seems that we've we've got a 816 00:37:30,640 --> 00:37:33,279 Speaker 1: lot of questions that revolve around life change. And you know, 817 00:37:33,280 --> 00:37:36,560 Speaker 1: there's nothing like uh, buying a home, or getting married 818 00:37:36,680 --> 00:37:38,759 Speaker 1: or having a baby that causes you to look at 819 00:37:38,760 --> 00:37:41,720 Speaker 1: your financial situation and to kind of get your stuff together. 820 00:37:42,680 --> 00:37:44,399 Speaker 1: It causes you to grow up a little bit, right, 821 00:37:44,400 --> 00:37:47,799 Speaker 1: like where reassessing everything, Yes, and especially a baby, like 822 00:37:47,800 --> 00:37:50,640 Speaker 1: once you have somebody else who's dependent on you, which 823 00:37:50,680 --> 00:37:52,239 Speaker 1: is why our first little bit of advice is to 824 00:37:52,320 --> 00:37:55,440 Speaker 1: put that baby to work. If you can sign that 825 00:37:55,480 --> 00:37:59,799 Speaker 1: baby modeling contract that might be against state and federal laws. Man, 826 00:38:00,320 --> 00:38:03,239 Speaker 1: baby baby models. Okay, yeah, well then if if you 827 00:38:03,280 --> 00:38:04,719 Speaker 1: do that, then you aside from that though, then you 828 00:38:04,719 --> 00:38:07,840 Speaker 1: would be able to fund roth Ira for your super 829 00:38:08,000 --> 00:38:10,600 Speaker 1: new baby. And he's gonna be rich in no time, 830 00:38:10,800 --> 00:38:13,000 Speaker 1: but he or she But yeah, let's let's get to 831 00:38:13,440 --> 00:38:15,520 Speaker 1: your your question. Actually, so much of the answer to 832 00:38:15,560 --> 00:38:18,960 Speaker 1: this question, it really depends on where you guys are 833 00:38:19,000 --> 00:38:22,160 Speaker 1: at on your financial journey overall. Matt and I, we've 834 00:38:22,200 --> 00:38:24,960 Speaker 1: always said that saving for your baby's future is a 835 00:38:24,960 --> 00:38:27,600 Speaker 1: low priority. It's not because we hate babies. We love them. 836 00:38:27,600 --> 00:38:29,680 Speaker 1: We love babies. Yeah, but it doesn't mean you need 837 00:38:29,680 --> 00:38:31,960 Speaker 1: to start saving for them immediately, right, Like we did 838 00:38:32,160 --> 00:38:35,319 Speaker 1: a whole episode about why saving for college is overrated 839 00:38:35,640 --> 00:38:37,760 Speaker 1: because it is, like we we'd encourage you to focus 840 00:38:38,320 --> 00:38:41,040 Speaker 1: most of your resources on accruing wealth as a family, 841 00:38:41,400 --> 00:38:43,480 Speaker 1: and that should really be the main goal here for you, 842 00:38:43,760 --> 00:38:47,720 Speaker 1: not saving specifically for your child's future if it means 843 00:38:47,800 --> 00:38:50,200 Speaker 1: skimping on your own. And so that means focusing on 844 00:38:50,239 --> 00:38:54,160 Speaker 1: those workplace retirement accounts, contributing regularly to a roth IRA 845 00:38:54,600 --> 00:38:56,479 Speaker 1: and if you haven't been on that process, we would 846 00:38:56,520 --> 00:38:59,040 Speaker 1: encourage you to get started. So and if you have, 847 00:38:59,160 --> 00:39:01,680 Speaker 1: beef up those contra abution levels, because the great thing 848 00:39:01,680 --> 00:39:04,799 Speaker 1: about a RATH is that those contribution dollars can be 849 00:39:04,960 --> 00:39:07,880 Speaker 1: flexible for other uses down the road, like helping to 850 00:39:07,920 --> 00:39:10,719 Speaker 1: pay for college tuition. You can do whatever you want 851 00:39:10,760 --> 00:39:13,239 Speaker 1: with those contribution dollars. And so you've got a newborn baby, 852 00:39:13,239 --> 00:39:15,960 Speaker 1: you've got a decade and a half or more before 853 00:39:16,080 --> 00:39:19,440 Speaker 1: you actually need to use those funds for their future. 854 00:39:19,760 --> 00:39:21,560 Speaker 1: And so yeah, we would say it sounds selfish, but 855 00:39:21,600 --> 00:39:24,800 Speaker 1: it's not to prioritize your own self your own financial 856 00:39:24,840 --> 00:39:28,480 Speaker 1: future before you start prioritizing your newborns. Yeah, and so 857 00:39:28,600 --> 00:39:30,880 Speaker 1: on that note, a big part of your decision to 858 00:39:31,000 --> 00:39:33,400 Speaker 1: invest in a five twenty nine account for your kids 859 00:39:33,400 --> 00:39:36,799 Speaker 1: college that should come down to how likely they are 860 00:39:36,880 --> 00:39:39,120 Speaker 1: to actually go to college. And so, for instance, if 861 00:39:39,120 --> 00:39:42,640 Speaker 1: it's basically assumed in your family, then uh, prioritizing saving 862 00:39:42,640 --> 00:39:44,600 Speaker 1: for their college will likely make sense at some point. 863 00:39:44,800 --> 00:39:47,080 Speaker 1: If college is just a maybe, then it might not 864 00:39:47,120 --> 00:39:49,600 Speaker 1: be the best route to take. But generally speaking, socking 865 00:39:49,640 --> 00:39:52,479 Speaker 1: money away in a five twenty nine plan it only 866 00:39:52,560 --> 00:39:56,120 Speaker 1: makes sense if you are rocking your own retirement savings first. 867 00:39:56,320 --> 00:39:59,040 Speaker 1: If you're doing that now, we really don't recommend putting 868 00:39:59,040 --> 00:40:01,080 Speaker 1: money in a five twenty nine plan until you get 869 00:40:01,080 --> 00:40:03,560 Speaker 1: some money Gear number seven. There are a whole lot 870 00:40:03,600 --> 00:40:05,160 Speaker 1: of other things for you to focus on and tackle 871 00:40:05,239 --> 00:40:09,359 Speaker 1: before focusing on that in any meaningful way. It makes 872 00:40:09,360 --> 00:40:12,680 Speaker 1: me think about how, like I went to college, Kate 873 00:40:12,719 --> 00:40:14,239 Speaker 1: went to college. We both went to college, and so 874 00:40:14,360 --> 00:40:17,120 Speaker 1: someone might assume that like, okay, well, all of you 875 00:40:17,160 --> 00:40:19,000 Speaker 1: know Matt and Kate's kids. They're going to go to 876 00:40:19,040 --> 00:40:23,120 Speaker 1: college too. But guess what we are actively encouraging them 877 00:40:23,160 --> 00:40:25,880 Speaker 1: against it. Well, we're not encouraging them against it, but 878 00:40:25,920 --> 00:40:29,000 Speaker 1: like we have noticed the fact that the careers that 879 00:40:29,040 --> 00:40:32,440 Speaker 1: we've chosen h since we've graduated, they have not involved 880 00:40:33,000 --> 00:40:35,000 Speaker 1: the degrees that we got in college. And so I 881 00:40:35,040 --> 00:40:37,600 Speaker 1: think there are a lot of other alternatives to going 882 00:40:37,640 --> 00:40:40,040 Speaker 1: to college. So in our case, we have not set 883 00:40:40,080 --> 00:40:41,800 Speaker 1: up five twenty nine plans at this point. I'm not 884 00:40:41,840 --> 00:40:43,920 Speaker 1: sure if we're ever going to. Of course, like we 885 00:40:43,960 --> 00:40:47,080 Speaker 1: will set some money aside for them, but we want 886 00:40:47,080 --> 00:40:49,200 Speaker 1: there just to be I guess more options than just 887 00:40:49,360 --> 00:40:52,640 Speaker 1: going to college. We might earmark some investments that we 888 00:40:52,719 --> 00:40:55,480 Speaker 1: have in a standard brokerage account that's going to have 889 00:40:55,520 --> 00:40:57,279 Speaker 1: their name on it, because what if they want to 890 00:40:57,320 --> 00:40:59,239 Speaker 1: go to trade school instead. Well, I guess you could 891 00:40:59,280 --> 00:41:01,520 Speaker 1: use it for trade school. But what if they want 892 00:41:01,560 --> 00:41:03,480 Speaker 1: to like start their own business, and then we could 893 00:41:03,520 --> 00:41:06,480 Speaker 1: use that money towards buying supplies or tools or equipment. 894 00:41:06,560 --> 00:41:08,200 Speaker 1: If one of them wants to get into real estate, 895 00:41:08,560 --> 00:41:10,400 Speaker 1: that could be money that could be like seed money. 896 00:41:10,440 --> 00:41:12,880 Speaker 1: As they start to learn the ins and outs of 897 00:41:12,920 --> 00:41:15,000 Speaker 1: real estate. There are just a lot of different options 898 00:41:15,000 --> 00:41:17,040 Speaker 1: out there. I mean, all that being said, we've got 899 00:41:17,040 --> 00:41:19,440 Speaker 1: four kids, and so I'm sure we're gonna open a 900 00:41:19,480 --> 00:41:22,480 Speaker 1: five one of them most likely will go to college, 901 00:41:22,520 --> 00:41:24,480 Speaker 1: but it is not I mean, our oldest is eight 902 00:41:24,520 --> 00:41:27,120 Speaker 1: years old, and that is still not something we've prioritized 903 00:41:27,160 --> 00:41:30,040 Speaker 1: at this point because we're focusing on other goals. I 904 00:41:30,080 --> 00:41:33,520 Speaker 1: think oftentimes there's just this disconnect between like, you've got 905 00:41:33,520 --> 00:41:35,600 Speaker 1: a baby and they're helpless and they can't do anything 906 00:41:35,600 --> 00:41:39,160 Speaker 1: for themselves, and so you think I must provide for them, 907 00:41:39,200 --> 00:41:41,360 Speaker 1: and you do. It's true, like they can't change their 908 00:41:41,400 --> 00:41:43,480 Speaker 1: own diaper, they can't feed themselves on their babies, But 909 00:41:43,520 --> 00:41:46,600 Speaker 1: by the time they're eighteen, guess what they can. And 910 00:41:46,719 --> 00:41:50,600 Speaker 1: so we answer into funding five nine plans with like 911 00:41:50,640 --> 00:41:52,440 Speaker 1: thinking about them as babies. But by the time that 912 00:41:52,480 --> 00:41:54,680 Speaker 1: they're adults. By the time they're eighteen years old, there's 913 00:41:54,680 --> 00:41:56,680 Speaker 1: a lot that they can do on their own. They 914 00:41:56,719 --> 00:41:59,000 Speaker 1: technically are adults at that point, and so I think 915 00:41:59,000 --> 00:42:02,560 Speaker 1: that there's this disc neck between our kids as babies 916 00:42:02,600 --> 00:42:05,239 Speaker 1: and our kids as adults. And just keep in mind 917 00:42:05,280 --> 00:42:06,960 Speaker 1: that by the time they go to college, they are 918 00:42:07,040 --> 00:42:09,600 Speaker 1: officially adults. Yeah, and I think that's a good point, Matt. 919 00:42:09,640 --> 00:42:12,200 Speaker 1: I think what you're trying not trying to say, is 920 00:42:12,200 --> 00:42:16,799 Speaker 1: that five plans or saving for their future education is idiotic. 921 00:42:17,000 --> 00:42:19,160 Speaker 1: I think what you're saying, and what we're both saying, 922 00:42:19,239 --> 00:42:22,280 Speaker 1: is that it's it's way down the list of priorities. 923 00:42:22,480 --> 00:42:25,239 Speaker 1: There are so many other financial priorities first. But yeah, 924 00:42:25,280 --> 00:42:27,920 Speaker 1: if it's a tradition in your household, if you believe 925 00:42:27,960 --> 00:42:30,920 Speaker 1: that your newborn child is going to go to college someday, 926 00:42:31,200 --> 00:42:33,080 Speaker 1: then that might be something you want to prioritize, but 927 00:42:33,120 --> 00:42:37,520 Speaker 1: not until you fully funded those other more important UH 928 00:42:37,760 --> 00:42:40,279 Speaker 1: savings and retirement accounts first. Totally. And we would also 929 00:42:40,360 --> 00:42:42,520 Speaker 1: say here's some more food for thought. Actually, we're also 930 00:42:42,520 --> 00:42:46,480 Speaker 1: big fans of prioritizing dollars for your baby now, because 931 00:42:46,800 --> 00:42:50,560 Speaker 1: it's so possible to focus too much on their future 932 00:42:50,800 --> 00:42:54,239 Speaker 1: and those likely college expenses that you neglect maybe to 933 00:42:54,280 --> 00:42:57,000 Speaker 1: spend money on meaningful experiences now. So you want her 934 00:42:57,040 --> 00:42:59,400 Speaker 1: to you want her to get that fancy pram. No, 935 00:43:00,520 --> 00:43:02,960 Speaker 1: not that you can use a free or cheap stroller, 936 00:43:03,080 --> 00:43:04,880 Speaker 1: that is, that is how the money approved. But we 937 00:43:04,880 --> 00:43:07,120 Speaker 1: would say, yeah, if you live near an awesome zoo 938 00:43:07,200 --> 00:43:10,120 Speaker 1: or a children's museum or a natural history museum. Like, 939 00:43:10,160 --> 00:43:12,239 Speaker 1: we'd rather you spend some of that money that you 940 00:43:12,280 --> 00:43:15,160 Speaker 1: might have tossed otherwise into a five account on that 941 00:43:15,239 --> 00:43:19,000 Speaker 1: membership to expand their horizons and increase the amount of 942 00:43:19,040 --> 00:43:21,200 Speaker 1: family fund you're able to have, uh, and and do 943 00:43:21,239 --> 00:43:23,960 Speaker 1: that now instead of stocking away money for the future. 944 00:43:24,239 --> 00:43:26,000 Speaker 1: That might sound weird coming from us, but we think 945 00:43:26,040 --> 00:43:28,200 Speaker 1: it's important. The same thing with like taking a pottery 946 00:43:28,200 --> 00:43:30,840 Speaker 1: class or learning an instrument. Right, if you take it 947 00:43:30,880 --> 00:43:32,759 Speaker 1: in all of the above approach, that's fine. If you've 948 00:43:32,760 --> 00:43:35,279 Speaker 1: got enough money to do all of those things, then 949 00:43:35,320 --> 00:43:37,279 Speaker 1: go for it. But most people don't, And so we 950 00:43:37,280 --> 00:43:39,600 Speaker 1: would say, just don't get so focused on building up 951 00:43:39,800 --> 00:43:42,160 Speaker 1: this giant nest egg for your baby's future that you 952 00:43:42,280 --> 00:43:46,279 Speaker 1: opt out of meaningful and important experiences. Now, Like Matt, 953 00:43:46,400 --> 00:43:49,680 Speaker 1: my daughter's in an art class and it's kind of expensive. 954 00:43:49,680 --> 00:43:51,160 Speaker 1: It's one of those things that like we had to 955 00:43:51,200 --> 00:43:54,240 Speaker 1: prioritize in the budget. Your daughter is taking piano lessons, 956 00:43:54,520 --> 00:43:56,040 Speaker 1: and it's it's one of those things I look back 957 00:43:56,040 --> 00:43:58,080 Speaker 1: to my childhood and our kids are starting to get 958 00:43:58,080 --> 00:44:00,880 Speaker 1: to that age. That's when I started take piano lessons 959 00:44:01,160 --> 00:44:02,480 Speaker 1: was right when I was about in my eight year 960 00:44:02,520 --> 00:44:05,359 Speaker 1: old age. And so those are the kind of experiences 961 00:44:05,440 --> 00:44:08,400 Speaker 1: that they go a long way in the personal development 962 00:44:08,520 --> 00:44:11,680 Speaker 1: of your child. And if you're only thinking about when 963 00:44:11,719 --> 00:44:14,440 Speaker 1: they turn eighteen and money for those years, then you 964 00:44:14,480 --> 00:44:16,600 Speaker 1: might need to reconsider and think more about how you 965 00:44:16,600 --> 00:44:19,319 Speaker 1: spend money on the important development years. Now. Yeah, I 966 00:44:19,320 --> 00:44:21,920 Speaker 1: think sometimes money nerves can take too much of a 967 00:44:21,960 --> 00:44:25,240 Speaker 1: fundamentalist approach, and they're thinking, oh, the five nine plane, 968 00:44:25,280 --> 00:44:27,120 Speaker 1: I must set that up. I am a robot. That's 969 00:44:27,120 --> 00:44:29,840 Speaker 1: what the Morningside article said, like, I will set this 970 00:44:29,880 --> 00:44:32,680 Speaker 1: thing up, must max out every year. But they're yeah, 971 00:44:32,719 --> 00:44:35,960 Speaker 1: like you said, there are lots of other more uh yeah, 972 00:44:36,040 --> 00:44:38,800 Speaker 1: just alternative things that we can introduce into their lives 973 00:44:38,880 --> 00:44:41,880 Speaker 1: that can lead to them becoming well rounded, well versed. 974 00:44:42,120 --> 00:44:45,120 Speaker 1: Uh great kids who turned into great adults, no doubt. 975 00:44:45,120 --> 00:44:46,840 Speaker 1: All right, Well that's gonna do it for listener questions. 976 00:44:47,000 --> 00:44:48,880 Speaker 1: Let's get back to the beer that we had on 977 00:44:48,920 --> 00:44:51,839 Speaker 1: this episode. This one was called Hill by Southern Grist 978 00:44:51,880 --> 00:44:55,040 Speaker 1: Brewing Company, and this is their fifth anniversary beer. It's 979 00:44:55,080 --> 00:44:58,279 Speaker 1: a fifth anniversary Hill. Yeah, it's an eight Yeah, Yeah, 980 00:44:58,320 --> 00:45:02,080 Speaker 1: you're right. And so this was is a heavily fruited 981 00:45:02,120 --> 00:45:04,200 Speaker 1: sour beer. Matt, what's your take on it? Well, first 982 00:45:04,200 --> 00:45:05,719 Speaker 1: of all, I'll say I was shocked when we poured 983 00:45:05,719 --> 00:45:09,600 Speaker 1: this thing because the label it's like this Chartruss green. 984 00:45:09,840 --> 00:45:12,319 Speaker 1: I mean, it's like neon green yellow. And so because 985 00:45:12,400 --> 00:45:13,799 Speaker 1: that I was expecting, I don't know, like a logger 986 00:45:13,880 --> 00:45:15,279 Speaker 1: or something like that. I didn't read the label before 987 00:45:15,280 --> 00:45:16,680 Speaker 1: we poured it. But then you poured it and it 988 00:45:16,719 --> 00:45:19,240 Speaker 1: was like this crimson, like this deep red rich color. 989 00:45:19,880 --> 00:45:21,960 Speaker 1: It throws me off when there's a disconnect between the 990 00:45:22,000 --> 00:45:23,719 Speaker 1: color of the label and the beard, because I was 991 00:45:23,719 --> 00:45:26,880 Speaker 1: not expecting that that color. But but it doesn't surprise 992 00:45:26,920 --> 00:45:28,759 Speaker 1: me that you pick this one up because it's got 993 00:45:28,880 --> 00:45:32,080 Speaker 1: raspberry puree in it. The jam on the side of 994 00:45:32,080 --> 00:45:37,200 Speaker 1: it here it says it's the joke too, it's my jam. Actually, 995 00:45:37,200 --> 00:45:40,000 Speaker 1: get ready for all those dad jokes. Head another pike 996 00:45:40,400 --> 00:45:43,120 Speaker 1: from your husband. But this was a double fruited sour 997 00:45:43,280 --> 00:45:48,360 Speaker 1: ale brewed with lactose, vanilla, mango, key lime, and raspberry puree. 998 00:45:48,760 --> 00:45:51,040 Speaker 1: I am a huge fan of the fact that it 999 00:45:51,080 --> 00:45:53,640 Speaker 1: had some key lime in here, because it gave it 1000 00:45:53,719 --> 00:45:57,279 Speaker 1: this this edge. And I think sometimes for me. That's 1001 00:45:57,280 --> 00:45:59,680 Speaker 1: what I don't like when a beer is too heavy 1002 00:45:59,719 --> 00:46:04,440 Speaker 1: on the asberry. It's just like this overwhelming, like perfumey 1003 00:46:04,640 --> 00:46:07,840 Speaker 1: flavor where it feels like this blob and I and 1004 00:46:07,840 --> 00:46:09,319 Speaker 1: I can't find the edges of it, you know, like 1005 00:46:09,360 --> 00:46:11,200 Speaker 1: I can't rein it in almost and I feel like 1006 00:46:11,239 --> 00:46:14,000 Speaker 1: the key lime gives it like something to grab onto. 1007 00:46:14,320 --> 00:46:17,200 Speaker 1: But it was definitely a nice sour tart beer. What 1008 00:46:17,239 --> 00:46:19,160 Speaker 1: are your thoughts on this one? Yeah? I agree, man, 1009 00:46:19,160 --> 00:46:21,480 Speaker 1: this one was like a fiesta of fruit flavors. You 1010 00:46:21,520 --> 00:46:23,959 Speaker 1: read all the fruits involved in the making of this beer, 1011 00:46:24,400 --> 00:46:28,560 Speaker 1: and I'm prone to beers made with raspberries just like that, 1012 00:46:28,840 --> 00:46:30,480 Speaker 1: like that flavor. But I agree. I think the addition 1013 00:46:30,480 --> 00:46:32,960 Speaker 1: of key lime did give it that kind of snappiness. 1014 00:46:33,320 --> 00:46:36,600 Speaker 1: And this beer was really good. Southern Grist out of 1015 00:46:36,640 --> 00:46:39,359 Speaker 1: Tennessee makes delicious beers, Like I love what they're doing. Yeah, 1016 00:46:39,360 --> 00:46:41,719 Speaker 1: without the lime, it would have just been kind of 1017 00:46:41,719 --> 00:46:44,880 Speaker 1: like buttoning your shirt. But with the lime, it's like 1018 00:46:44,960 --> 00:46:49,960 Speaker 1: a Western shirt with snaps on it, you know, exactly 1019 00:46:50,400 --> 00:46:52,200 Speaker 1: once you're buttoned up, you know, And I am wearing 1020 00:46:52,200 --> 00:46:54,200 Speaker 1: a Western shirt with which today also might be why 1021 00:46:54,200 --> 00:46:56,879 Speaker 1: I thought about that but yeah, this is a really 1022 00:46:56,880 --> 00:46:58,319 Speaker 1: great beer. I'm glad that you and I both got 1023 00:46:58,320 --> 00:47:00,080 Speaker 1: to enjoy one of these today, But that's gonna b 1024 00:47:00,239 --> 00:47:02,279 Speaker 1: it's listeners. You can find our show notes up on 1025 00:47:02,280 --> 00:47:04,480 Speaker 1: the website at how the Money dot com and keep 1026 00:47:04,520 --> 00:47:07,359 Speaker 1: those awesome listener questions rolling in. We love to hear 1027 00:47:07,440 --> 00:47:09,640 Speaker 1: them and hopefully we can take yours on an upcoming 1028 00:47:09,960 --> 00:47:13,080 Speaker 1: ask htm episode. Just record a voice memo and send 1029 00:47:13,080 --> 00:47:15,360 Speaker 1: it to How the Money Pod at gmail dot com. 1030 00:47:15,400 --> 00:47:17,840 Speaker 1: It's that easy and we look forward to hearing from you. 1031 00:47:18,040 --> 00:47:20,120 Speaker 1: But that's going to do it for today's episode. Until 1032 00:47:20,160 --> 00:47:23,080 Speaker 1: next time, best Friends Out, Best Friends Out.