1 00:00:00,040 --> 00:00:02,840 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt, 2 00:00:03,000 --> 00:00:25,400 Speaker 1: and today we are answering your listener questions. That's right, Joel. 3 00:00:25,600 --> 00:00:28,640 Speaker 1: I'm excited that we've got another episode answering listener questions. 4 00:00:29,040 --> 00:00:31,560 Speaker 1: We have an array of questions to cover today, man, 5 00:00:31,600 --> 00:00:35,240 Speaker 1: everything ranging from something as simple as replacing light bulbs 6 00:00:35,280 --> 00:00:39,120 Speaker 1: to negotiating a lower annual percentage rate on our credit card, 7 00:00:39,320 --> 00:00:41,800 Speaker 1: all the way to something a little fancier, even lending club. 8 00:00:42,000 --> 00:00:44,160 Speaker 1: That's that peer to peer lending. We're gonna talk about 9 00:00:44,159 --> 00:00:45,919 Speaker 1: that too at the end. Yeah, that sounds good, man. 10 00:00:46,040 --> 00:00:47,519 Speaker 1: But before we get to those questions, I wanted to 11 00:00:47,520 --> 00:00:50,000 Speaker 1: share with you something I recently read. Did you know 12 00:00:50,080 --> 00:00:52,000 Speaker 1: that over fifty of the book sold in the United 13 00:00:52,040 --> 00:00:54,200 Speaker 1: States now are sold through Amazon dot Com? And that 14 00:00:54,280 --> 00:00:56,520 Speaker 1: kind of crazy? Yeah, that's nuts, So man, not only 15 00:00:56,680 --> 00:00:59,440 Speaker 1: I read the same article because you and I communicate 16 00:00:59,560 --> 00:01:02,640 Speaker 1: like that. It's not only physical books, but it's also 17 00:01:02,880 --> 00:01:06,360 Speaker 1: like electronic books, audio books. I think it's spanned all 18 00:01:06,400 --> 00:01:10,240 Speaker 1: of the different media types that Amazon selling. It's insane, though, Yeah, 19 00:01:10,240 --> 00:01:11,720 Speaker 1: I mean I don't think that's great for your competition. 20 00:01:11,760 --> 00:01:14,080 Speaker 1: That's not overall a really good thing. That one company 21 00:01:14,120 --> 00:01:17,920 Speaker 1: is selling over of something like books in our country. 22 00:01:17,959 --> 00:01:20,680 Speaker 1: But I know our listeners are more savvy trying to 23 00:01:21,240 --> 00:01:23,760 Speaker 1: save money when they're reading books or whatever, and the 24 00:01:24,000 --> 00:01:25,880 Speaker 1: best way to do that is by going to the library. 25 00:01:26,040 --> 00:01:28,919 Speaker 1: And we've talked about that before. They're also awesome apps 26 00:01:28,920 --> 00:01:31,760 Speaker 1: out there like Overdrive that essentially let you borrow e 27 00:01:31,920 --> 00:01:35,400 Speaker 1: books free from your local library system, and so yeah, 28 00:01:35,400 --> 00:01:37,000 Speaker 1: I just want to make people aware of that. As 29 00:01:37,040 --> 00:01:38,920 Speaker 1: I was reading that, I was thinking, Oh my gosh, 30 00:01:39,000 --> 00:01:40,679 Speaker 1: there's so many people out there who need to know 31 00:01:40,760 --> 00:01:42,720 Speaker 1: what overdrive is, who need to go to their local 32 00:01:42,760 --> 00:01:46,480 Speaker 1: library more, and who should consider skipping buying books on Amazon. Yeah, 33 00:01:46,480 --> 00:01:48,680 Speaker 1: it was interesting specifically about that article. They were talking 34 00:01:48,680 --> 00:01:52,840 Speaker 1: about how there's just a proliferation of fake, counterfeit books 35 00:01:52,840 --> 00:01:55,320 Speaker 1: that are being published because there's all these different independent 36 00:01:55,360 --> 00:01:59,200 Speaker 1: sellers that are selling books on Amazon, and Amazon isn't 37 00:01:59,240 --> 00:02:02,720 Speaker 1: doing a very good policing what these different sellers are 38 00:02:02,800 --> 00:02:05,440 Speaker 1: actually selling and so what that means are there are 39 00:02:05,560 --> 00:02:09,800 Speaker 1: just photos, like literally photo copied versions of books with inaccuracies. 40 00:02:09,840 --> 00:02:13,600 Speaker 1: Sometimes there's completely fraudulent books being published with like they'll 41 00:02:13,680 --> 00:02:16,120 Speaker 1: rip a bio off of one author and then slap 42 00:02:16,160 --> 00:02:18,760 Speaker 1: a different title that they make made up on the cover, 43 00:02:19,000 --> 00:02:20,880 Speaker 1: and then they'll steal the guts out of another book 44 00:02:20,960 --> 00:02:23,600 Speaker 1: that's selling pretty well and slap it all together and 45 00:02:23,600 --> 00:02:25,639 Speaker 1: and try to sell that. Something else that article is 46 00:02:25,680 --> 00:02:28,120 Speaker 1: pointing outa was that Amazon they really don't have any 47 00:02:28,160 --> 00:02:31,440 Speaker 1: incentive to crack down because they still get a cut 48 00:02:31,760 --> 00:02:33,760 Speaker 1: of those sales of of all the books that are 49 00:02:33,800 --> 00:02:36,360 Speaker 1: being sold that are even counterfeit, they still get their share. 50 00:02:36,600 --> 00:02:37,960 Speaker 1: And so what that means, though, is that it falls 51 00:02:37,960 --> 00:02:39,680 Speaker 1: to us. You know, if you do need to purchase 52 00:02:39,720 --> 00:02:41,400 Speaker 1: a book on Amazon, it falls to you as a 53 00:02:41,440 --> 00:02:44,240 Speaker 1: consumer to to read the reviews, To not just look 54 00:02:44,280 --> 00:02:47,359 Speaker 1: at the lowest price out there, something looks kind of fishy. 55 00:02:47,680 --> 00:02:50,359 Speaker 1: Maybe actually read the reviews, see what they're saying. Because 56 00:02:50,480 --> 00:02:51,760 Speaker 1: it's gonna be up to you. You've got to be 57 00:02:51,840 --> 00:02:54,440 Speaker 1: vigilant before you click to buy. Yeah, that's a good point, 58 00:02:54,560 --> 00:02:56,840 Speaker 1: And I think one of the easiest ways to circumvent 59 00:02:56,960 --> 00:03:00,320 Speaker 1: potentially buying fraudulent books on Amazon is to just go 60 00:03:00,440 --> 00:03:02,920 Speaker 1: get a physical book from your local library or at 61 00:03:02,960 --> 00:03:05,280 Speaker 1: least borrow it for free on an app like Overdrive. 62 00:03:05,320 --> 00:03:07,960 Speaker 1: We're living in weird times, and I think Amazon purchasing 63 00:03:08,320 --> 00:03:09,799 Speaker 1: is is such an easy thing to do, which is 64 00:03:09,800 --> 00:03:12,200 Speaker 1: why so many people do it. But also borrowing e 65 00:03:12,320 --> 00:03:15,320 Speaker 1: books from Overdrive is incredibly easy. My wife's been doing that. 66 00:03:15,440 --> 00:03:18,280 Speaker 1: She's even been borrowing audio kids books for our children 67 00:03:18,320 --> 00:03:20,359 Speaker 1: this summer and kind of just puts it on during 68 00:03:20,400 --> 00:03:22,960 Speaker 1: rest time and they love listening to books and they're 69 00:03:22,960 --> 00:03:25,560 Speaker 1: completely free from the libraries. Yeah, I just think that's 70 00:03:25,560 --> 00:03:27,560 Speaker 1: a good way to go for loss of folks. Libraries 71 00:03:27,639 --> 00:03:30,000 Speaker 1: are the best, no doubt. All right, Matt, let's mention 72 00:03:30,040 --> 00:03:32,240 Speaker 1: the beer that we're having on the show today. This 73 00:03:32,280 --> 00:03:34,800 Speaker 1: one's called a Visit to My Crazy Aunt. It's a 74 00:03:34,880 --> 00:03:38,440 Speaker 1: Gin and Tonic style ale from Insight Brewing and listener 75 00:03:38,520 --> 00:03:40,680 Speaker 1: Riley sent this one our way. Yeah, this isn't your 76 00:03:40,840 --> 00:03:44,280 Speaker 1: your typical New England style, I p a. I'm actually 77 00:03:44,240 --> 00:03:46,080 Speaker 1: they're really looking forward to trying this one out and 78 00:03:46,120 --> 00:03:47,920 Speaker 1: we'll share our thoughts on this one at the end 79 00:03:48,200 --> 00:03:50,520 Speaker 1: of this episode. Yeah, it's completely outside of the box, 80 00:03:50,600 --> 00:03:52,240 Speaker 1: so looking forward to checking it out. We'll let you 81 00:03:52,240 --> 00:03:53,880 Speaker 1: know what we think at the end of the show. 82 00:03:54,000 --> 00:03:57,000 Speaker 1: But let's get to our listener questions and if you 83 00:03:57,080 --> 00:03:59,000 Speaker 1: have a question that you want to submit, for Matt 84 00:03:59,040 --> 00:04:01,160 Speaker 1: and I to tackle on the show. You can do 85 00:04:01,240 --> 00:04:03,240 Speaker 1: so if you go to how to money dot com 86 00:04:03,560 --> 00:04:07,040 Speaker 1: slash ask really easy instructions there for you on how 87 00:04:07,120 --> 00:04:09,400 Speaker 1: to submit your question. And let's get to our first 88 00:04:09,400 --> 00:04:11,400 Speaker 1: one of the day. Matt, Hey, guys, I'm a regular 89 00:04:11,440 --> 00:04:13,440 Speaker 1: listener and I love the podcast. This is Brett from 90 00:04:13,480 --> 00:04:15,840 Speaker 1: Los Angeles, and I got a quick question for you. So, 91 00:04:15,880 --> 00:04:18,279 Speaker 1: I have a car loan for about seven thousand dollars 92 00:04:18,279 --> 00:04:21,240 Speaker 1: and I'm currently on a repayment plan to pay it 93 00:04:21,279 --> 00:04:24,080 Speaker 1: off in about three years. While I can comfortably make 94 00:04:24,120 --> 00:04:27,279 Speaker 1: these payments, and I like the credit score improving aspect 95 00:04:27,320 --> 00:04:30,440 Speaker 1: of making so many on time payments as I am 96 00:04:30,440 --> 00:04:32,960 Speaker 1: relatively young at twenty four and still trying to build 97 00:04:32,960 --> 00:04:35,880 Speaker 1: a robust credit score. I also don't like the idea 98 00:04:35,880 --> 00:04:38,200 Speaker 1: of having such a large debt hanging over my head. 99 00:04:38,680 --> 00:04:41,720 Speaker 1: Are there any implications for me making a one lumpsome 100 00:04:41,760 --> 00:04:45,719 Speaker 1: payment to bring this total debt down from seven thousand 101 00:04:45,800 --> 00:04:48,520 Speaker 1: to say a thousand or seven hundred, and then making 102 00:04:48,560 --> 00:04:51,400 Speaker 1: the same number of planned payments on that debt just 103 00:04:51,560 --> 00:04:54,719 Speaker 1: also scaled down. In the other words, I'd still be 104 00:04:54,760 --> 00:04:57,479 Speaker 1: making the same number of payments, but they're smaller, does 105 00:04:57,520 --> 00:05:00,680 Speaker 1: that provide less credit score benefit? Thank you so much 106 00:05:00,680 --> 00:05:03,680 Speaker 1: for your time, Hey, Brett, that's a great question. Uh, 107 00:05:03,680 --> 00:05:05,800 Speaker 1: and thanks for listening out there in l A. And 108 00:05:05,839 --> 00:05:08,320 Speaker 1: So the biggest question that I think we should turn 109 00:05:08,400 --> 00:05:10,680 Speaker 1: and ask you is do you care more about your 110 00:05:10,680 --> 00:05:13,200 Speaker 1: credit score or do you care more about your money? Oh? 111 00:05:13,320 --> 00:05:16,720 Speaker 1: Asking the hard questions, Mann, I've turned the tables. So 112 00:05:16,920 --> 00:05:18,599 Speaker 1: if your focus is on your credit and keeping your 113 00:05:18,600 --> 00:05:21,240 Speaker 1: credit score up, using the strategy to keep a line 114 00:05:21,279 --> 00:05:24,960 Speaker 1: of credit open, it can and probably will help your 115 00:05:25,000 --> 00:05:28,320 Speaker 1: credit score. Because this is an installment loan. There's two 116 00:05:28,360 --> 00:05:30,279 Speaker 1: types of loans out there are two types of credit, 117 00:05:30,360 --> 00:05:32,560 Speaker 1: right You've got revolving credit that's like credit cards, and 118 00:05:32,560 --> 00:05:35,839 Speaker 1: then you've got installment debt like a mortgage or car loan. 119 00:05:36,240 --> 00:05:38,400 Speaker 1: Both of those factor into your credit mix. But if 120 00:05:38,400 --> 00:05:42,200 Speaker 1: you're trying, Brett, to raise your credit score, well, make 121 00:05:42,200 --> 00:05:44,720 Speaker 1: sure that you're doing it for a worthwhile purpose. Are 122 00:05:44,720 --> 00:05:47,160 Speaker 1: you attempting to use your credit for a major purchase 123 00:05:47,240 --> 00:05:49,240 Speaker 1: in the near future. If you're trying to buy a 124 00:05:49,240 --> 00:05:52,080 Speaker 1: home relatively soon, well then this is a great route 125 00:05:52,080 --> 00:05:54,640 Speaker 1: for you to take because keeping that line of credit 126 00:05:54,680 --> 00:05:57,560 Speaker 1: open and showing that it's in good standing is really 127 00:05:57,560 --> 00:05:59,800 Speaker 1: good for your credit score. But if you're not attempting 128 00:05:59,839 --> 00:06:01,800 Speaker 1: to use that credit score for something big in the 129 00:06:01,800 --> 00:06:04,240 Speaker 1: near future, I think you're overthinking it and it's probably 130 00:06:04,240 --> 00:06:06,360 Speaker 1: just not necessary. That's right, and in that case, you 131 00:06:06,360 --> 00:06:08,680 Speaker 1: should be focusing on your money. If the rate is 132 00:06:08,760 --> 00:06:11,880 Speaker 1: at five percent or above, maybe seven percent, consider paying 133 00:06:11,880 --> 00:06:14,440 Speaker 1: it off completely, just be done with it. You could 134 00:06:14,520 --> 00:06:17,359 Speaker 1: also consider paying off other debt that might have a 135 00:06:17,440 --> 00:06:19,560 Speaker 1: higher interest rate. And Brett, you know what, you sound 136 00:06:19,560 --> 00:06:22,159 Speaker 1: pretty efficient how you use your money. That makes me 137 00:06:22,200 --> 00:06:24,960 Speaker 1: think you also might be pretty organized and disciplined. So 138 00:06:25,200 --> 00:06:27,599 Speaker 1: I would consider just getting a a new credit card 139 00:06:27,640 --> 00:06:29,520 Speaker 1: if you don't have it already. If you do have one, 140 00:06:29,560 --> 00:06:31,520 Speaker 1: make sure you keep that line open. But just make 141 00:06:31,560 --> 00:06:33,520 Speaker 1: sure that you're paying that off every month and you 142 00:06:33,560 --> 00:06:35,960 Speaker 1: can continue to establish and build your credit. You're you're 143 00:06:36,000 --> 00:06:37,800 Speaker 1: only twenty four years old. A lot of the times 144 00:06:37,800 --> 00:06:39,880 Speaker 1: your your score is gonna increase with age as you 145 00:06:39,880 --> 00:06:42,000 Speaker 1: continue to take care of it, so it's it's kind 146 00:06:42,040 --> 00:06:44,320 Speaker 1: of a long game. Don't be too concerned with making 147 00:06:44,320 --> 00:06:46,520 Speaker 1: sure that you have the best absolute credit score you 148 00:06:46,520 --> 00:06:48,839 Speaker 1: could possibly have right now. Yeah, the the length of 149 00:06:48,880 --> 00:06:51,240 Speaker 1: your credit history is is one of the main factors 150 00:06:51,279 --> 00:06:54,880 Speaker 1: in how your credit score is constructed, and so at 151 00:06:54,880 --> 00:06:56,400 Speaker 1: twenty four, it's just gonna be really hard to have 152 00:06:56,400 --> 00:06:57,960 Speaker 1: an eight hundred score. I mean, it's gonna be next 153 00:06:57,960 --> 00:07:00,280 Speaker 1: to impossible unless you are an authorized you you're on 154 00:07:00,320 --> 00:07:02,680 Speaker 1: a parent's card since you were a little kid. But 155 00:07:02,720 --> 00:07:04,840 Speaker 1: you can easily have a really solid score even if 156 00:07:04,880 --> 00:07:07,960 Speaker 1: you don't have a really long history of having credit. 157 00:07:08,360 --> 00:07:10,680 Speaker 1: But to Matt's point on opening another card, it is 158 00:07:10,720 --> 00:07:12,640 Speaker 1: a quick thing to your score now, but it's a 159 00:07:12,680 --> 00:07:14,400 Speaker 1: boon for your score in the long run if you 160 00:07:14,440 --> 00:07:16,760 Speaker 1: handle the use of that credit card well. So think 161 00:07:16,800 --> 00:07:19,400 Speaker 1: about that. Having more accounts, having diverse lines of credit, 162 00:07:19,640 --> 00:07:22,240 Speaker 1: and having them around for longer periods of time is 163 00:07:22,280 --> 00:07:24,160 Speaker 1: a good way to go. Just make sure you're not 164 00:07:24,200 --> 00:07:26,840 Speaker 1: paying massive amounts of interest to build your credit score 165 00:07:26,960 --> 00:07:29,000 Speaker 1: when you don't have any reason to use your credit 166 00:07:29,040 --> 00:07:32,120 Speaker 1: score for a major purchase anytime soon. That's Rachel and Brett. Also, 167 00:07:32,200 --> 00:07:33,880 Speaker 1: you mentioned it, you know, the debt sort of hanging 168 00:07:33,880 --> 00:07:36,840 Speaker 1: over your head. I think that's something to note that 169 00:07:36,920 --> 00:07:39,040 Speaker 1: tells me that you really do like to, you know, 170 00:07:39,240 --> 00:07:42,720 Speaker 1: not have things that you owe. There's an entire psychological 171 00:07:42,720 --> 00:07:45,320 Speaker 1: component that you do not want to overlook. I don't 172 00:07:45,320 --> 00:07:47,280 Speaker 1: want to discount that at all. Right, Like it's it's 173 00:07:47,320 --> 00:07:49,440 Speaker 1: hard to quantify. You can't put a number to that 174 00:07:49,520 --> 00:07:52,680 Speaker 1: psychological aspect. But man, if if you know that that's 175 00:07:52,680 --> 00:07:54,800 Speaker 1: gonna make you feel better, that's all the more reason 176 00:07:54,840 --> 00:07:56,520 Speaker 1: to go ahead and be done with that loan completely 177 00:07:56,560 --> 00:07:58,680 Speaker 1: and just pay it off, no doubt. All right, Matt, 178 00:07:58,680 --> 00:08:01,520 Speaker 1: we got four more awesome quite shins coming up, including 179 00:08:01,560 --> 00:08:04,760 Speaker 1: a question about disputing the property taxes on your house. 180 00:08:05,040 --> 00:08:15,880 Speaker 1: We'll get to that after the break, all right, Joel, 181 00:08:15,880 --> 00:08:19,040 Speaker 1: we're gonna get to that question regarding disputing your property tax, 182 00:08:19,080 --> 00:08:22,560 Speaker 1: But first, a quick one about light bulbs. Hey, y'all, 183 00:08:22,800 --> 00:08:27,520 Speaker 1: you discussed saving money on your utility bills, and one 184 00:08:27,560 --> 00:08:33,079 Speaker 1: thing you mentioned was replacing incandescent bulbs with LED bulbs. Well, 185 00:08:33,120 --> 00:08:36,680 Speaker 1: I just bought a new house and most of the 186 00:08:36,760 --> 00:08:41,280 Speaker 1: light fixtures are fixed with incandescent bulbs. My question is 187 00:08:41,400 --> 00:08:45,640 Speaker 1: should I wait for those bulbs to die out before 188 00:08:46,160 --> 00:08:49,920 Speaker 1: I replaced them with the LED lights or go ahead 189 00:08:49,960 --> 00:08:53,080 Speaker 1: and replace them with the LED lights? What will save 190 00:08:53,160 --> 00:08:57,480 Speaker 1: me the most money? There? Tyler, congrats on your new home. 191 00:08:57,600 --> 00:09:00,720 Speaker 1: That's a big purchase. And I love that you're already 192 00:09:00,720 --> 00:09:03,080 Speaker 1: thinking about the nitty gritty of what light bulbs you 193 00:09:03,080 --> 00:09:05,200 Speaker 1: have and gott to optimize this thing you do, and 194 00:09:05,200 --> 00:09:07,240 Speaker 1: Tyler starting right at the very beginnings. That's really cool. 195 00:09:07,320 --> 00:09:09,520 Speaker 1: And we did talk about cutting your utility bills in 196 00:09:09,559 --> 00:09:12,800 Speaker 1: episode eight seven, and we mentioned that replacing light bulbs 197 00:09:12,880 --> 00:09:15,240 Speaker 1: is one of the quickest fastest ways to start to 198 00:09:15,240 --> 00:09:19,719 Speaker 1: get immediate payback and lower utility costs. So what will 199 00:09:19,720 --> 00:09:22,520 Speaker 1: save you the most money replacing those light bulbs immediately? 200 00:09:22,840 --> 00:09:25,599 Speaker 1: That's a good question. So if we're talking about CFLs 201 00:09:25,720 --> 00:09:28,600 Speaker 1: versus LED bulbs, well then you might want to wait 202 00:09:28,679 --> 00:09:31,600 Speaker 1: until those CFLs burn out because the difference in annual 203 00:09:31,640 --> 00:09:33,800 Speaker 1: costs between an l E ED and a CFL which 204 00:09:33,840 --> 00:09:35,520 Speaker 1: is a compact. For essent, they're the ones that kind 205 00:09:35,559 --> 00:09:38,480 Speaker 1: of look like an ice cream cone. Yeah, they're kind 206 00:09:38,480 --> 00:09:40,920 Speaker 1: of swirling. Those also have mercury in them too, so 207 00:09:40,960 --> 00:09:43,080 Speaker 1: watch out, that's true, they break open. Watch out one 208 00:09:43,120 --> 00:09:46,040 Speaker 1: disposing of those, that's for sure. So converting from CFLs 209 00:09:46,040 --> 00:09:49,000 Speaker 1: to l D is less of a necessity because it's 210 00:09:49,000 --> 00:09:51,520 Speaker 1: not like you're paying that much more to to run 211 00:09:51,520 --> 00:09:54,720 Speaker 1: those bulbs. Even though LED bulbs are actually cheaper to run. 212 00:09:54,960 --> 00:09:59,000 Speaker 1: That's right. However, if you have some traditional incandescent bulbs, man, 213 00:09:59,160 --> 00:10:02,480 Speaker 1: go ahead and place those right now her bowl. You 214 00:10:02,520 --> 00:10:05,480 Speaker 1: could be saving at least seven dollars a year. Other 215 00:10:05,559 --> 00:10:08,760 Speaker 1: estimates say potentially seventeen dollars per bowl, which is insane. Yeah, 216 00:10:08,760 --> 00:10:10,720 Speaker 1: that sounds kind of nuts, right, but you know, if 217 00:10:10,760 --> 00:10:12,360 Speaker 1: you can go ahead and do that, now, go ahead 218 00:10:12,360 --> 00:10:14,679 Speaker 1: and replace that with an LED, you are going to 219 00:10:14,800 --> 00:10:17,280 Speaker 1: have massive savings. I mean, if you're looking at, you know, 220 00:10:17,360 --> 00:10:20,080 Speaker 1: multiple bulbs, like imagine you take those same numbers, multiply 221 00:10:20,120 --> 00:10:22,000 Speaker 1: them at least I'm gonna you maybe you've got ten 222 00:10:22,040 --> 00:10:23,760 Speaker 1: bulbs at least that you need to replace in your home. 223 00:10:24,120 --> 00:10:27,000 Speaker 1: That could lead to some substantial savings. Yeah, and it's 224 00:10:27,040 --> 00:10:30,880 Speaker 1: important also to check with your electricity company to see 225 00:10:30,920 --> 00:10:34,200 Speaker 1: if there are any rebates on buying more energy efficient bulbs. 226 00:10:34,240 --> 00:10:37,360 Speaker 1: Oftentimes there are, I know that at least where we live. Matt, 227 00:10:37,400 --> 00:10:40,320 Speaker 1: the big box swords like Costco. I know you're not 228 00:10:40,360 --> 00:10:42,959 Speaker 1: a huge fan. We've talked about that recently, but Costco 229 00:10:43,000 --> 00:10:45,400 Speaker 1: actually has the best prices on LED bulbs right now, 230 00:10:45,400 --> 00:10:49,040 Speaker 1: and that's because our local utility company, our local electricity provider, 231 00:10:49,320 --> 00:10:52,240 Speaker 1: actually subsidizes the cost of those bulbs that they sell 232 00:10:52,280 --> 00:10:55,040 Speaker 1: at Costco. So you could buy a six pack of 233 00:10:55,200 --> 00:10:58,000 Speaker 1: LED bulbs at Costco right now for seven dollars. That's 234 00:10:58,080 --> 00:11:00,960 Speaker 1: just over a dollar bulb. L D bulbs typically are 235 00:11:00,960 --> 00:11:03,760 Speaker 1: expected to last about twenty five years, So when you're 236 00:11:03,760 --> 00:11:06,280 Speaker 1: talking about spending just over a dollar a bulb and 237 00:11:06,360 --> 00:11:08,200 Speaker 1: the length of time they're gonna last, not to mention 238 00:11:08,360 --> 00:11:10,800 Speaker 1: how little energy they use, I think it's almost become 239 00:11:10,800 --> 00:11:13,680 Speaker 1: a no brainer just to start changing bulbs out. LED 240 00:11:13,800 --> 00:11:16,320 Speaker 1: bulb prices have plummeted, because if you think back just 241 00:11:16,360 --> 00:11:18,120 Speaker 1: a few years ago, this is a much harder question. 242 00:11:18,360 --> 00:11:20,520 Speaker 1: L D bulbs were at ten dollars and then eight 243 00:11:20,520 --> 00:11:22,640 Speaker 1: dollars and then five dollars, and as they've gotten closer 244 00:11:22,640 --> 00:11:24,960 Speaker 1: to that one dollar mark, it just becomes this really 245 00:11:25,000 --> 00:11:27,120 Speaker 1: easy decision to make. Yeah, before you spend all this 246 00:11:27,160 --> 00:11:30,080 Speaker 1: time talking about how wonderful Costco is, I just bought 247 00:11:30,160 --> 00:11:33,719 Speaker 1: like a twenty pack of bulbs off Amazon. We love 248 00:11:33,760 --> 00:11:37,599 Speaker 1: them and we hate them, right, but they've got like Sylvania, 249 00:11:37,640 --> 00:11:39,880 Speaker 1: that's one of the bulb companies whatever, They've got some 250 00:11:39,960 --> 00:11:42,040 Speaker 1: on there and they're listed at just under a dollar, 251 00:11:42,280 --> 00:11:44,640 Speaker 1: so they're giving Costco a little run for their money. 252 00:11:44,840 --> 00:11:46,560 Speaker 1: Um And on the note of kind of the type 253 00:11:46,600 --> 00:11:48,080 Speaker 1: of l d s there, it might be a little 254 00:11:48,120 --> 00:11:51,559 Speaker 1: more confusing because they have like different temperatures and different lumens. 255 00:11:51,640 --> 00:11:54,080 Speaker 1: That's a little bit different than wattage. Right. When it 256 00:11:54,120 --> 00:11:56,200 Speaker 1: comes to the color, most likely you want to get 257 00:11:56,240 --> 00:11:59,840 Speaker 1: bulbs that say kelvin or k and what that means 258 00:11:59,880 --> 00:12:02,640 Speaker 1: is that it's just a nice, warm, inviting light. You 259 00:12:02,679 --> 00:12:05,680 Speaker 1: get anything above that, like three thousand and above, that 260 00:12:05,760 --> 00:12:08,480 Speaker 1: light's gonna be a lot cooler. It's gonna almost seem blue. 261 00:12:08,640 --> 00:12:11,240 Speaker 1: They call it daylight. Sometimes, unless you're doing interrogations of 262 00:12:11,360 --> 00:12:13,360 Speaker 1: humans in your home, that's when you want that cold, 263 00:12:13,360 --> 00:12:15,719 Speaker 1: brutal lighter, yeah, exactly. Or maybe for your garage, you 264 00:12:15,760 --> 00:12:17,520 Speaker 1: don't want it to seem super cozy in there. If 265 00:12:17,520 --> 00:12:19,640 Speaker 1: you're looking for bulbs in there, maybe you can get 266 00:12:19,679 --> 00:12:22,320 Speaker 1: some three thousand degree bulbs in there, But otherwise, in 267 00:12:22,360 --> 00:12:24,800 Speaker 1: the interior of your home is what you want. That's 268 00:12:24,800 --> 00:12:26,320 Speaker 1: what I just ordered, and that's what we have inside 269 00:12:26,320 --> 00:12:28,520 Speaker 1: our home. As far as the brightness, typically you want 270 00:12:28,520 --> 00:12:31,160 Speaker 1: to look at something around eight hundred lumens. The Brightness 271 00:12:31,240 --> 00:12:33,600 Speaker 1: levels are measured by lumens and that's pretty much the 272 00:12:33,600 --> 00:12:35,600 Speaker 1: equivalent of a sixty W bulb, So just keep that 273 00:12:35,600 --> 00:12:37,360 Speaker 1: in mind. If you want something brighter than a six, 274 00:12:37,360 --> 00:12:38,920 Speaker 1: do you want? You can start looking at a thousand 275 00:12:39,000 --> 00:12:41,080 Speaker 1: plus lumens. But if you're looking for something a little 276 00:12:41,080 --> 00:12:43,439 Speaker 1: more dim like more like a traditional forty WAT bulb, 277 00:12:43,559 --> 00:12:44,959 Speaker 1: then you can look at something that's more like a 278 00:12:44,960 --> 00:12:47,480 Speaker 1: six women and below. All right, man, I think we've 279 00:12:47,520 --> 00:12:49,920 Speaker 1: talked about life bulbs for I think that's it right 280 00:12:50,080 --> 00:12:52,559 Speaker 1: about as long as we can, but without everyone getting 281 00:12:52,559 --> 00:12:54,280 Speaker 1: bored out of their minds. But that was a great question, Tyler, 282 00:12:54,360 --> 00:12:57,760 Speaker 1: super fun. Let's get onto our next question. Hi guys, 283 00:12:57,880 --> 00:13:01,080 Speaker 1: my name is Shannon and I'm from Bedford, Texas, and 284 00:13:01,120 --> 00:13:05,920 Speaker 1: my question is about disputing property taxes. So last year 285 00:13:06,040 --> 00:13:10,000 Speaker 1: was my first year as a homeowner and we just 286 00:13:10,080 --> 00:13:13,839 Speaker 1: kind of went along with whatever. But this year we're 287 00:13:13,920 --> 00:13:17,200 Speaker 1: expecting our property taxes to be a little bit higher 288 00:13:17,640 --> 00:13:20,800 Speaker 1: because the area is really growing up and our home 289 00:13:21,000 --> 00:13:24,920 Speaker 1: is appraising a little bit more, and so we think 290 00:13:24,960 --> 00:13:27,080 Speaker 1: we want to go about disputing it. But we wanted 291 00:13:27,120 --> 00:13:29,679 Speaker 1: to know if you all had any advice for how 292 00:13:29,720 --> 00:13:33,800 Speaker 1: to do this, do you just bash your home and 293 00:13:33,920 --> 00:13:36,120 Speaker 1: try to show that it's not worth as much as 294 00:13:36,160 --> 00:13:39,400 Speaker 1: it's appraising. Do you think it's worth the time that 295 00:13:39,480 --> 00:13:44,360 Speaker 1: it takes to go dispute them? And lastly, do you 296 00:13:44,440 --> 00:13:46,800 Speaker 1: think it might be worth it to hire a lawyer 297 00:13:46,920 --> 00:13:50,160 Speaker 1: or a company that says they'll dispute it for you 298 00:13:50,320 --> 00:13:53,920 Speaker 1: for a fee? Thank you, Shanny, great question. And before 299 00:13:53,960 --> 00:13:56,600 Speaker 1: we kind of launch into this bashing your home, you're 300 00:13:56,640 --> 00:13:58,319 Speaker 1: not talking about like busting it up. So I just 301 00:13:58,360 --> 00:14:01,480 Speaker 1: want to clarify that. For put some holes in the drywall, 302 00:14:01,880 --> 00:14:04,280 Speaker 1: punch this hole and then take a picture real quick. See, look, 303 00:14:04,320 --> 00:14:06,520 Speaker 1: my home is not worth anything. It's full of holes. 304 00:14:06,520 --> 00:14:08,200 Speaker 1: It's like my apartment in college, man, one of our 305 00:14:08,240 --> 00:14:10,040 Speaker 1: best friends apartments, and right next to us they had 306 00:14:10,240 --> 00:14:12,320 Speaker 1: there's literally a hole in the drywall right next right 307 00:14:12,320 --> 00:14:14,920 Speaker 1: next to the fridge, and they would cover it with 308 00:14:14,960 --> 00:14:16,480 Speaker 1: like sheets of paper and just like punch through it 309 00:14:16,520 --> 00:14:19,120 Speaker 1: to pretend that they're punching through the wall like the Hulk. 310 00:14:20,960 --> 00:14:23,760 Speaker 1: Oh college, right, right, And so we have another new 311 00:14:23,800 --> 00:14:26,200 Speaker 1: homeowner here by the way, Shannon, congrats onto your home 312 00:14:26,240 --> 00:14:29,200 Speaker 1: purchase last year. Special homeowner segment. Right here is what 313 00:14:29,240 --> 00:14:31,280 Speaker 1: it feels like, and it is kind of the season 314 00:14:31,400 --> 00:14:34,760 Speaker 1: for people in certain states to dispute their home taxes. 315 00:14:35,200 --> 00:14:36,840 Speaker 1: And Matt and I man, we would say it's a 316 00:14:36,840 --> 00:14:39,720 Speaker 1: worthwhile endeavor where it's applicable, where you do get a 317 00:14:39,720 --> 00:14:43,960 Speaker 1: bill for your property taxes and you can actually dispute 318 00:14:44,000 --> 00:14:46,920 Speaker 1: that tax assessment. It's really important to do so for 319 00:14:47,000 --> 00:14:49,800 Speaker 1: accuracy and fairness. And Shannon, you live in Texas. Matt 320 00:14:49,800 --> 00:14:51,560 Speaker 1: and I we live in the state of Georgia, and 321 00:14:51,680 --> 00:14:54,480 Speaker 1: we have to battle this every year as well, especially 322 00:14:54,520 --> 00:14:56,720 Speaker 1: as investment property owners. I mean I get five of 323 00:14:56,760 --> 00:14:59,400 Speaker 1: these in the mail every year, and it can be 324 00:14:59,440 --> 00:15:02,200 Speaker 1: a little over alming battling them, and sometimes the valuations 325 00:15:02,440 --> 00:15:05,160 Speaker 1: can go up and at ridiculously rapid clips of thirty, 326 00:15:05,200 --> 00:15:07,920 Speaker 1: fifty or even a hundred percent of value increase in 327 00:15:08,040 --> 00:15:10,960 Speaker 1: one year. Personally, I think that the laws should change 328 00:15:11,200 --> 00:15:14,720 Speaker 1: in how municipalities are allowed to tax your home. But 329 00:15:14,800 --> 00:15:16,640 Speaker 1: that's a topic for another day. Well, yeah, Jill, before 330 00:15:16,640 --> 00:15:17,920 Speaker 1: we dive into it, you know, one of the reasons 331 00:15:18,240 --> 00:15:20,760 Speaker 1: we are seeing tax rates increase so much like that 332 00:15:20,960 --> 00:15:22,800 Speaker 1: is a lot of times it depends on who you 333 00:15:22,840 --> 00:15:24,880 Speaker 1: purchased the home from, and so if you purchase the 334 00:15:24,880 --> 00:15:27,880 Speaker 1: home from somebody who bought that home as a foreclosure, 335 00:15:27,920 --> 00:15:29,800 Speaker 1: and maybe they paid like twenty thousand bucks for it, 336 00:15:30,000 --> 00:15:32,560 Speaker 1: or they bought it thirty years ago. Yeah, exactly, and 337 00:15:32,560 --> 00:15:35,640 Speaker 1: and it's sort of creeped along maybe hasn't been assessed 338 00:15:35,680 --> 00:15:38,160 Speaker 1: properly or fairly over the years. And then you buy 339 00:15:38,160 --> 00:15:40,680 Speaker 1: it for say two hundred, which might be a perfectly 340 00:15:40,720 --> 00:15:43,200 Speaker 1: fine price, right, but all of a sudden, the tax 341 00:15:43,280 --> 00:15:46,120 Speaker 1: records shoot from twenty dollars to two hundred thousand or 342 00:15:46,120 --> 00:15:48,880 Speaker 1: two hundred fifty thousand, and we'll guess what the assessed 343 00:15:49,000 --> 00:15:51,080 Speaker 1: value of your home is going to reflect that, And 344 00:15:51,120 --> 00:15:54,600 Speaker 1: so the previous taxes that were displayed for that property 345 00:15:54,720 --> 00:15:57,280 Speaker 1: are really really inacurates to make sure that you're keeping 346 00:15:57,280 --> 00:15:59,200 Speaker 1: that in mind to do any homeowner out there who 347 00:15:59,280 --> 00:16:01,360 Speaker 1: is considering purchase in a new home, Yeah, Matt. So 348 00:16:01,400 --> 00:16:03,200 Speaker 1: the first step for homeowners to take is to file 349 00:16:03,200 --> 00:16:06,320 Speaker 1: for homestead exemption in their state. That's the easiest way 350 00:16:06,320 --> 00:16:09,720 Speaker 1: to save money on property taxes. Some people have worried 351 00:16:09,880 --> 00:16:13,240 Speaker 1: that lowering the appraised value of your home that that 352 00:16:13,560 --> 00:16:16,720 Speaker 1: essentially challenging this tax assessment and getting the value lowered 353 00:16:16,960 --> 00:16:19,880 Speaker 1: hurts the actual value of your home, and that's not true. 354 00:16:20,200 --> 00:16:23,400 Speaker 1: A potential buyer is not looking at what the tax 355 00:16:23,400 --> 00:16:25,760 Speaker 1: records say your home is worth. They're looking at this 356 00:16:26,000 --> 00:16:29,280 Speaker 1: estimate online. They're looking at comparable home values. They're taking 357 00:16:29,320 --> 00:16:31,920 Speaker 1: into account your actual home, not what the tax assessor 358 00:16:32,040 --> 00:16:34,800 Speaker 1: says that your home is worth. So there's no reason 359 00:16:34,840 --> 00:16:37,640 Speaker 1: to think that challenging the tax assessment and getting the 360 00:16:37,720 --> 00:16:39,720 Speaker 1: value lowered is going to hurt the true value of 361 00:16:39,760 --> 00:16:41,720 Speaker 1: your home. And Shannon, the next step you want to 362 00:16:41,760 --> 00:16:44,440 Speaker 1: take is to figure out the actual reason that you 363 00:16:44,480 --> 00:16:46,640 Speaker 1: are disputing. You want to ask yourself the question, is 364 00:16:46,640 --> 00:16:49,120 Speaker 1: it truly out of line? You can appeal based on 365 00:16:49,160 --> 00:16:52,000 Speaker 1: a few different reasons. Right, you have inaccuracy. Maybe they 366 00:16:52,040 --> 00:16:54,200 Speaker 1: have some errors on your property tax assessment. They might 367 00:16:54,200 --> 00:16:56,280 Speaker 1: have the score foot is wrong, they might have the 368 00:16:56,280 --> 00:16:58,800 Speaker 1: the size of your lot incorrect. That's one way that 369 00:16:58,840 --> 00:17:01,640 Speaker 1: you can dispute. You can dispute it based on uniformity, 370 00:17:01,680 --> 00:17:04,439 Speaker 1: which means that if there are several houses, say it's 371 00:17:04,440 --> 00:17:06,240 Speaker 1: a newer development, and a lot of the houses on 372 00:17:06,240 --> 00:17:09,359 Speaker 1: your street are exactly the same, and your house, for 373 00:17:09,440 --> 00:17:12,440 Speaker 1: whatever reason, is the only house that has assessed fifty 374 00:17:12,800 --> 00:17:15,360 Speaker 1: dollars more than all the others. Well, that's a uniformity 375 00:17:15,400 --> 00:17:17,400 Speaker 1: issue right there. And then again, we kind of joked 376 00:17:17,400 --> 00:17:19,880 Speaker 1: about busting your house up, but I mean truly. In fact, 377 00:17:19,920 --> 00:17:24,040 Speaker 1: if there are some issues with your house, documenting, you know, 378 00:17:24,080 --> 00:17:28,040 Speaker 1: those specific flaws with pictures, that can be helpful if 379 00:17:28,080 --> 00:17:31,240 Speaker 1: it can bring down the market value of your home. Yeah, 380 00:17:31,240 --> 00:17:34,520 Speaker 1: and so Texas has a similar process to Georgia. You 381 00:17:34,520 --> 00:17:36,760 Speaker 1: can be heard by a board of your peers. Make 382 00:17:36,800 --> 00:17:39,840 Speaker 1: sure that you have documentation in hand to prove your point. 383 00:17:40,160 --> 00:17:42,880 Speaker 1: When you do have that hearing, pulling comps by looking 384 00:17:42,920 --> 00:17:45,960 Speaker 1: up the market value of nearby homes is really helpful. 385 00:17:46,040 --> 00:17:49,320 Speaker 1: I would say, pull five that have similar bedroom bath 386 00:17:49,400 --> 00:17:53,200 Speaker 1: square foot within a small radius of your home. That's 387 00:17:53,200 --> 00:17:55,040 Speaker 1: gonna be the most helpful to prove your point and 388 00:17:55,080 --> 00:17:57,640 Speaker 1: win the case. Matt, You know what interested me as 389 00:17:57,760 --> 00:17:59,960 Speaker 1: I was looking through this because I'm planning to appear 390 00:18:00,000 --> 00:18:02,080 Speaker 1: old property taxes of my own on a couple of 391 00:18:02,119 --> 00:18:05,399 Speaker 1: homes that I feel like are inaccurate. Well, the county 392 00:18:05,440 --> 00:18:08,040 Speaker 1: actually has the burden of proof to prove their case 393 00:18:08,280 --> 00:18:11,399 Speaker 1: that the value they're sighting is accurate. You don't have 394 00:18:11,440 --> 00:18:13,840 Speaker 1: the burden of proof as the homeowner So if you 395 00:18:13,880 --> 00:18:16,800 Speaker 1: have decent documentation, if you have just found some supporting 396 00:18:16,800 --> 00:18:19,480 Speaker 1: pieces of evidence for why they're wrong, you should win 397 00:18:19,480 --> 00:18:21,719 Speaker 1: the case. And so that should put Shannon at ease two, 398 00:18:21,800 --> 00:18:24,679 Speaker 1: as she should attempting to tackle this. That really the 399 00:18:24,680 --> 00:18:27,399 Speaker 1: burden of proof is not this overwhelming evidence that she 400 00:18:27,440 --> 00:18:29,520 Speaker 1: has to compile. But it should be more simple actually 401 00:18:29,560 --> 00:18:31,800 Speaker 1: to win than than that nice man. That's a that's 402 00:18:31,840 --> 00:18:33,800 Speaker 1: really encouraging. So it doesn't have to be like an 403 00:18:33,800 --> 00:18:35,879 Speaker 1: aggression novel where she has to show up like with 404 00:18:35,920 --> 00:18:38,880 Speaker 1: her defense and the Pelican brief. And I hope all 405 00:18:38,880 --> 00:18:40,640 Speaker 1: that right, I hope it is. I hope she writes 406 00:18:40,640 --> 00:18:44,240 Speaker 1: a novel based on this appeal, but my my guess 407 00:18:44,240 --> 00:18:45,879 Speaker 1: is that it would be a short one. And Shannon, 408 00:18:45,960 --> 00:18:48,800 Speaker 1: on that note, getting a lawyer for a fee or 409 00:18:48,840 --> 00:18:51,320 Speaker 1: sometimes little charge based on how much they save you 410 00:18:51,520 --> 00:18:52,879 Speaker 1: that may not be a bad way to go. It 411 00:18:52,880 --> 00:18:55,000 Speaker 1: just depends on how much time you have and what 412 00:18:55,080 --> 00:18:56,960 Speaker 1: your time is worth to you. You know, It's also 413 00:18:57,000 --> 00:18:59,320 Speaker 1: dependent on how much your home is worth, what the 414 00:18:59,400 --> 00:19:01,919 Speaker 1: value is, but cause as a percentage of the value 415 00:19:01,920 --> 00:19:04,080 Speaker 1: of your home, we might be discussing I mean, several 416 00:19:04,119 --> 00:19:07,280 Speaker 1: thousand dollars here, so keep that in mind. But this 417 00:19:07,320 --> 00:19:10,800 Speaker 1: is something that you can typically do easily yourself in 418 00:19:10,800 --> 00:19:12,879 Speaker 1: your spare time. It's worth doing a little bit of 419 00:19:12,880 --> 00:19:16,160 Speaker 1: homework to see what the process is going to entail. 420 00:19:16,560 --> 00:19:19,000 Speaker 1: Some boards might want to see an appraisal, for instance, 421 00:19:19,080 --> 00:19:21,440 Speaker 1: and getting appraisal that might cost you a few hundred bucks. 422 00:19:21,560 --> 00:19:22,880 Speaker 1: So right off the bat, you know that might set 423 00:19:22,920 --> 00:19:25,479 Speaker 1: you back a few hundred dollars at least, And if 424 00:19:25,480 --> 00:19:27,960 Speaker 1: you're only looking to save yourself a few hundred bucks, 425 00:19:28,000 --> 00:19:30,560 Speaker 1: well you know it may not be worth it. Also, 426 00:19:30,600 --> 00:19:33,000 Speaker 1: instead of getting a lawyer, there might be a local 427 00:19:33,119 --> 00:19:35,560 Speaker 1: realtor who might be able to help you out. I 428 00:19:35,600 --> 00:19:38,399 Speaker 1: say this because in our area there's a specific realtor 429 00:19:38,520 --> 00:19:40,840 Speaker 1: who has sort of taken this upon herself. She's been 430 00:19:40,880 --> 00:19:42,720 Speaker 1: able to set herself up as an expert on the 431 00:19:42,760 --> 00:19:46,040 Speaker 1: process of going through filing an appeal and going before 432 00:19:46,040 --> 00:19:47,760 Speaker 1: that board. She knows the ins and ounce, she knows 433 00:19:47,800 --> 00:19:50,000 Speaker 1: what our local county is specifically looking for, and she 434 00:19:50,040 --> 00:19:53,359 Speaker 1: knows what won't work. And so asking around and seeing 435 00:19:53,400 --> 00:19:55,639 Speaker 1: if there's somebody like that they might be offering, like 436 00:19:55,680 --> 00:19:57,840 Speaker 1: a free little seminar or a quick meeting with a 437 00:19:57,840 --> 00:20:00,560 Speaker 1: bunch of folks, and for her, this is the generation 438 00:20:00,760 --> 00:20:02,800 Speaker 1: right Like she she gets folks to sign up, she 439 00:20:02,840 --> 00:20:06,399 Speaker 1: has their email. Certainly she's helping folks to appeal. But 440 00:20:06,520 --> 00:20:08,600 Speaker 1: guess what, when the time comes for them to sell 441 00:20:08,640 --> 00:20:11,120 Speaker 1: their house, they're gonna remember her name because she helped 442 00:20:11,119 --> 00:20:13,000 Speaker 1: them keep more money in their pocket. And so I 443 00:20:13,040 --> 00:20:16,320 Speaker 1: think that's a pretty brilliant sort of marketing strategy and approach. 444 00:20:16,720 --> 00:20:19,880 Speaker 1: But ask around. There might be some free resources available 445 00:20:19,880 --> 00:20:21,520 Speaker 1: to you there in Texas. You know what, this makes 446 00:20:21,520 --> 00:20:23,119 Speaker 1: me think of hiring a lawyer to do this. It 447 00:20:23,160 --> 00:20:24,760 Speaker 1: makes me think of like a service that we've talked 448 00:20:24,800 --> 00:20:27,399 Speaker 1: about before called ask Trim and they'll take a huge 449 00:20:27,400 --> 00:20:31,120 Speaker 1: cut of your savings to negotiate down your cable bill 450 00:20:31,359 --> 00:20:33,240 Speaker 1: or your internet bill. And I don't think it's the 451 00:20:33,280 --> 00:20:36,080 Speaker 1: worst idea ever, But the fact is it's something that 452 00:20:36,080 --> 00:20:38,680 Speaker 1: you can do for yourself pretty simply. And the same 453 00:20:38,680 --> 00:20:41,600 Speaker 1: thing is true with challenging your property taxes. It takes 454 00:20:41,720 --> 00:20:44,840 Speaker 1: just a small amount of gaining some knowledge and then 455 00:20:44,880 --> 00:20:47,439 Speaker 1: following the process through to completion. And if you do 456 00:20:47,480 --> 00:20:49,200 Speaker 1: the things that we've just outlined, I think you can 457 00:20:49,200 --> 00:20:51,520 Speaker 1: easily do it yourself. And it's not worth giving a 458 00:20:51,600 --> 00:20:54,199 Speaker 1: huge chunk of those savings to someone else when you 459 00:20:54,200 --> 00:20:57,119 Speaker 1: could easily do it yourself. And the biggest thing that 460 00:20:57,200 --> 00:21:00,080 Speaker 1: usually happens if you are able to successfully win your 461 00:21:00,119 --> 00:21:02,600 Speaker 1: appeal is that that tax rate gets locked in for 462 00:21:02,600 --> 00:21:05,280 Speaker 1: the next three years, at least in Georgia does I'm 463 00:21:05,320 --> 00:21:07,760 Speaker 1: not sure about Texas, but that's important to note because 464 00:21:07,760 --> 00:21:09,320 Speaker 1: if you win once, it's not like you have to 465 00:21:09,359 --> 00:21:11,320 Speaker 1: do the battle every single year. You get to sit 466 00:21:11,359 --> 00:21:13,920 Speaker 1: back and relax for three years because of the hard 467 00:21:13,960 --> 00:21:16,159 Speaker 1: work that you've done. Now, yeah, that's right, Jell. You 468 00:21:16,240 --> 00:21:18,320 Speaker 1: gotta read the fine print and know exactly what steps 469 00:21:18,320 --> 00:21:21,080 Speaker 1: you need to take for your local county, and also 470 00:21:21,119 --> 00:21:23,919 Speaker 1: pay attention to the date. Timing is important, and if 471 00:21:23,920 --> 00:21:26,080 Speaker 1: you miss that deadline to file that appeal, well there's 472 00:21:26,080 --> 00:21:27,880 Speaker 1: nothing you can do until next year. So we've got 473 00:21:27,880 --> 00:21:39,840 Speaker 1: two more really good questions stick around, all right, Matt. 474 00:21:39,880 --> 00:21:41,920 Speaker 1: We got a question coming up about peer to peer lending, 475 00:21:42,119 --> 00:21:44,200 Speaker 1: which is an interesting one to tackle, but let's get 476 00:21:44,200 --> 00:21:48,480 Speaker 1: to this one on negotiating your credit card interest rate first. Hi, Jeling, Matt, 477 00:21:48,880 --> 00:21:52,760 Speaker 1: this is Cameron from Los Angeles, California. I was wondering 478 00:21:53,440 --> 00:21:55,680 Speaker 1: what would be the best way to go about negotiating 479 00:21:55,680 --> 00:21:59,840 Speaker 1: a lower a PR right on one's credit cards. Thanks, OK, 480 00:22:00,240 --> 00:22:03,439 Speaker 1: that is a good question, and depending on your credit score, 481 00:22:03,560 --> 00:22:06,919 Speaker 1: negotiating a lower APR that's probably gonna be your best bet. 482 00:22:07,000 --> 00:22:10,280 Speaker 1: But there are some other options and some other avenues 483 00:22:10,400 --> 00:22:12,320 Speaker 1: that you might want to consider. All right, let's get 484 00:22:12,320 --> 00:22:14,359 Speaker 1: into those, Matt, Let's do it. An important thing to 485 00:22:14,359 --> 00:22:16,760 Speaker 1: think about is if you can qualify for a credit 486 00:22:16,800 --> 00:22:20,400 Speaker 1: card that offers a zero percent interest rate for an 487 00:22:20,400 --> 00:22:23,360 Speaker 1: introductory period. If so, can you pay off that debt 488 00:22:23,480 --> 00:22:25,200 Speaker 1: or get close to at least paying it off within 489 00:22:25,320 --> 00:22:29,240 Speaker 1: that intro period. If you have great credit, bouncing around 490 00:22:29,400 --> 00:22:33,359 Speaker 1: like this two different zero percent credit cards and focusing 491 00:22:33,480 --> 00:22:36,159 Speaker 1: on trying to pay it down while your rate is 492 00:22:36,160 --> 00:22:38,439 Speaker 1: still at zero percent is a better way to go 493 00:22:38,520 --> 00:22:41,159 Speaker 1: than just negotiating a few interest rate points off with 494 00:22:41,280 --> 00:22:45,080 Speaker 1: your current credit card provider. And also credit unions, we 495 00:22:45,160 --> 00:22:48,359 Speaker 1: are big fans, and oftentimes we'll talk about heading there 496 00:22:48,440 --> 00:22:50,960 Speaker 1: for a mortgage, different kind of loan products that you're 497 00:22:50,960 --> 00:22:53,199 Speaker 1: looking for, Man, go there and check to see if 498 00:22:53,240 --> 00:22:55,640 Speaker 1: they've got a great credit card that's available to you. Yeah, 499 00:22:55,640 --> 00:22:57,480 Speaker 1: the interest rates are just so much lower on credit 500 00:22:57,480 --> 00:23:00,120 Speaker 1: cards through a credit union than they are through the 501 00:23:00,119 --> 00:23:02,320 Speaker 1: the major credit card providers. That's right. But when it 502 00:23:02,320 --> 00:23:04,920 Speaker 1: comes to negotiating down your ap R on a credit 503 00:23:04,960 --> 00:23:07,399 Speaker 1: card that you already have, you want to make sure 504 00:23:07,440 --> 00:23:09,840 Speaker 1: that you are currently in good standing with that credit 505 00:23:09,840 --> 00:23:12,760 Speaker 1: card company. That means, you know, having a good history 506 00:23:12,800 --> 00:23:16,080 Speaker 1: of making on time payments. And if you are, they're 507 00:23:16,080 --> 00:23:18,040 Speaker 1: gonna want to keep you. It costs them a lot 508 00:23:18,040 --> 00:23:22,360 Speaker 1: of money to acquire good paying customers. And that's truly. 509 00:23:22,600 --> 00:23:24,840 Speaker 1: They consider you a good paying customer if you have 510 00:23:24,880 --> 00:23:27,240 Speaker 1: a revolving balance, so they want to keep you. They 511 00:23:27,280 --> 00:23:29,600 Speaker 1: want your interest payments, and if you have a good 512 00:23:29,640 --> 00:23:32,439 Speaker 1: credit card, they're more likely to actually lower your APR 513 00:23:32,480 --> 00:23:34,399 Speaker 1: some to keep you around. And if you've been with 514 00:23:34,400 --> 00:23:36,840 Speaker 1: that credit card company for a while as well, they 515 00:23:36,920 --> 00:23:39,240 Speaker 1: value that. I mean sometimes they'll kind of punch it 516 00:23:39,280 --> 00:23:41,399 Speaker 1: onto your credit card. It's like valued members since you know, 517 00:23:41,400 --> 00:23:44,160 Speaker 1: two thousand nine or whatever. But bring that up. That's 518 00:23:44,160 --> 00:23:46,520 Speaker 1: that's a good negotiating point. You ought to be polite, 519 00:23:46,600 --> 00:23:48,760 Speaker 1: but you're negotiating here, and it's good to bring up 520 00:23:48,800 --> 00:23:50,840 Speaker 1: pretty much anything that's gonna make you look better in 521 00:23:50,880 --> 00:23:53,120 Speaker 1: the eyes of the credit card company. Yeah, So let's 522 00:23:53,160 --> 00:23:56,080 Speaker 1: talk about the actual negotiation. You call and you ask, 523 00:23:56,560 --> 00:23:59,119 Speaker 1: you ask politely for the recurring interest rate on your 524 00:23:59,160 --> 00:24:01,960 Speaker 1: credit card to be lowered. Make sure to be polite, 525 00:24:02,240 --> 00:24:06,080 Speaker 1: know what typical market rates are that other providers are offering, 526 00:24:06,400 --> 00:24:08,800 Speaker 1: and don't give up. If you reach someone unhelpful at 527 00:24:08,840 --> 00:24:10,760 Speaker 1: first glance, you might need to ask to speak to 528 00:24:10,760 --> 00:24:13,520 Speaker 1: a supervisor or just hang up and call back another time. 529 00:24:13,960 --> 00:24:16,760 Speaker 1: You can expect in all likelihood and interest rate reduction 530 00:24:16,800 --> 00:24:20,400 Speaker 1: of between three and seven percent. Some providers might offer 531 00:24:20,440 --> 00:24:23,080 Speaker 1: a temporary adjustment, while others might give you a permanent 532 00:24:23,119 --> 00:24:25,720 Speaker 1: lower interest rate. Don't be afraid to haggle and to 533 00:24:25,760 --> 00:24:27,960 Speaker 1: ask for more, but make sure to do it in 534 00:24:28,000 --> 00:24:31,000 Speaker 1: a kind fashion that acknowledges that you're asking for a favor, 535 00:24:31,119 --> 00:24:32,800 Speaker 1: while at the same time mentioning how good of a 536 00:24:32,840 --> 00:24:35,120 Speaker 1: customer you've been, So you know this question. It kind 537 00:24:35,119 --> 00:24:38,280 Speaker 1: of dovetails a little bit with appealing your property assessment. 538 00:24:38,560 --> 00:24:40,640 Speaker 1: If you don't ask like, there's no chance that you're 539 00:24:40,640 --> 00:24:42,119 Speaker 1: going to get it at all. Right, This is kind 540 00:24:42,160 --> 00:24:43,960 Speaker 1: of reminds me the episode that we did about the 541 00:24:44,080 --> 00:24:46,080 Speaker 1: art of asking for a discount, and so we would 542 00:24:46,080 --> 00:24:48,440 Speaker 1: recommend going back to that episode that was episode number 543 00:24:48,480 --> 00:24:51,439 Speaker 1: eighteen way back in the archives. And given that when 544 00:24:51,440 --> 00:24:53,879 Speaker 1: a listen, it might give you some additional pointers on 545 00:24:53,920 --> 00:24:56,200 Speaker 1: what you can say. And we'll also put a script 546 00:24:56,320 --> 00:24:59,000 Speaker 1: on our show notes for this episode of just essentially 547 00:24:59,000 --> 00:25:01,040 Speaker 1: what you could call up say to your credit card 548 00:25:01,040 --> 00:25:03,800 Speaker 1: company when you are going to negotiate that lower rate. Yeah, 549 00:25:03,840 --> 00:25:06,400 Speaker 1: haggling is not really a part of our culture, right. 550 00:25:06,520 --> 00:25:08,399 Speaker 1: It's kind of a part of my inn a personality, 551 00:25:08,520 --> 00:25:11,719 Speaker 1: but it's not really a cultural norm, no, Joel, that's 552 00:25:11,720 --> 00:25:15,000 Speaker 1: just how much the milk cost. Man, Stop haggling. Listen, Kroger, Dude, 553 00:25:15,000 --> 00:25:17,800 Speaker 1: I want a cheaper price. Uh no, So I'm I'm 554 00:25:17,840 --> 00:25:19,280 Speaker 1: kind of weird when it comes to negotiating, But I 555 00:25:19,320 --> 00:25:20,680 Speaker 1: think a script can help for a lot of folks. 556 00:25:20,720 --> 00:25:21,879 Speaker 1: So I think that'll be helpful to have that in 557 00:25:21,880 --> 00:25:24,040 Speaker 1: the show notes. But just remember that even just the 558 00:25:24,119 --> 00:25:26,520 Speaker 1: threat of taking your balance and your business to another 559 00:25:26,520 --> 00:25:28,440 Speaker 1: credit card company can be the kick in the butt 560 00:25:28,480 --> 00:25:31,280 Speaker 1: that they need to provide you a lower rate. The Cameron. 561 00:25:31,320 --> 00:25:33,560 Speaker 1: Once you are able to get your APR down, make 562 00:25:33,560 --> 00:25:35,639 Speaker 1: sure that you're staying on top of your statements that 563 00:25:35,680 --> 00:25:37,600 Speaker 1: you do not miss a payments. If you were to 564 00:25:37,600 --> 00:25:40,040 Speaker 1: be lates on a payment or just miss it completely. Well, 565 00:25:40,119 --> 00:25:41,879 Speaker 1: your a p R. Your interest rate is going to 566 00:25:41,960 --> 00:25:45,160 Speaker 1: shoot right up to where it was before, maybe even higher. Yeah, 567 00:25:45,160 --> 00:25:47,679 Speaker 1: but you got this, Cameron, get your interest rate lowered, 568 00:25:47,720 --> 00:25:50,160 Speaker 1: and you know what, keep working towards eliminating that credit 569 00:25:50,160 --> 00:25:52,760 Speaker 1: card debt altogether. That's right, all right, Let's get to 570 00:25:52,840 --> 00:25:56,320 Speaker 1: our next question about peer to peer lending. Hey, guys, 571 00:25:56,359 --> 00:25:58,920 Speaker 1: love the show. This is c J from Honolulu, Hawaii. 572 00:25:59,400 --> 00:26:02,199 Speaker 1: Had a quick about what your opinion would be on 573 00:26:02,359 --> 00:26:05,480 Speaker 1: making money by lending out money on lending Club. I 574 00:26:05,480 --> 00:26:07,760 Speaker 1: have a friend who's doing it. He seems to be 575 00:26:07,800 --> 00:26:11,159 Speaker 1: making pretty good returns. In his case, he has a 576 00:26:11,160 --> 00:26:14,120 Speaker 1: great credit score and took out a personal loan which 577 00:26:14,119 --> 00:26:16,919 Speaker 1: he's only paying two percent interest on and lending it 578 00:26:16,920 --> 00:26:19,520 Speaker 1: out to folks on lending club for fourteen to eighteen 579 00:26:19,560 --> 00:26:23,200 Speaker 1: percent interest. Does this sound like a viable option? I 580 00:26:23,240 --> 00:26:26,920 Speaker 1: hope to send you guys some beers soon. Aloha, Joel. 581 00:26:26,960 --> 00:26:29,440 Speaker 1: Is this our first question from Hawaii? I think so. 582 00:26:29,800 --> 00:26:31,520 Speaker 1: I don't know, but I'd like to go there in 583 00:26:31,520 --> 00:26:34,560 Speaker 1: person and take questions. Show up in person and take 584 00:26:34,640 --> 00:26:37,440 Speaker 1: questions record. That sounds like the life what a fantastic 585 00:26:37,440 --> 00:26:39,760 Speaker 1: place to live. Kind of expensive, but they do have 586 00:26:39,800 --> 00:26:42,199 Speaker 1: a costco and so that makes things better. Is there 587 00:26:42,240 --> 00:26:44,280 Speaker 1: a singular costco for the for the Big Island? I 588 00:26:44,320 --> 00:26:46,480 Speaker 1: think there's just one. That's how you say it, right, Well, 589 00:26:46,560 --> 00:26:48,879 Speaker 1: the Big Island, Well, the Big Island is one of 590 00:26:48,920 --> 00:26:51,400 Speaker 1: the islands. There are many, uh and I've never been 591 00:26:51,680 --> 00:26:53,680 Speaker 1: a wah. Who is the most populated island? But it 592 00:26:53,720 --> 00:26:56,160 Speaker 1: is not the Big Island. Yeah, you know because you've 593 00:26:56,160 --> 00:26:58,080 Speaker 1: been there. I've been there twice and I've been to 594 00:26:58,080 --> 00:27:00,440 Speaker 1: three different islands. But I want to back. It's a 595 00:27:00,440 --> 00:27:02,960 Speaker 1: beautiful place. Man. I always thought like it's just a beach. 596 00:27:03,119 --> 00:27:04,919 Speaker 1: How different can it be than Florida? Now it's way 597 00:27:05,000 --> 00:27:08,480 Speaker 1: different better. All right, let's get to this question. C J. 598 00:27:08,600 --> 00:27:12,120 Speaker 1: You're talking about your friend. He's making like man, that 599 00:27:12,320 --> 00:27:15,639 Speaker 1: is amazing. I think there's gonna be some anecdotal evidence 600 00:27:15,640 --> 00:27:18,240 Speaker 1: out there. There are a few success stories like that. 601 00:27:18,760 --> 00:27:21,040 Speaker 1: There are also a lot of folks who are not 602 00:27:21,200 --> 00:27:23,400 Speaker 1: making a ton, and I know this from personal experience. 603 00:27:23,640 --> 00:27:26,080 Speaker 1: Several years ago, I opened an account with lending Club, 604 00:27:26,240 --> 00:27:29,200 Speaker 1: put a few thousand dollars in there, and to date, 605 00:27:29,480 --> 00:27:33,280 Speaker 1: I've seen between one and two percent on my earnings. Yeah, 606 00:27:33,280 --> 00:27:35,040 Speaker 1: it's not very good. This it's not very good. So 607 00:27:35,119 --> 00:27:37,399 Speaker 1: I know it varies from person in person based on 608 00:27:37,440 --> 00:27:40,200 Speaker 1: the majority of the sort of full fledged reviews that 609 00:27:40,240 --> 00:27:42,400 Speaker 1: I've seen. And this isn't just folks that are reviewing 610 00:27:42,400 --> 00:27:44,320 Speaker 1: the product, but I'm talking about different folks that have 611 00:27:44,320 --> 00:27:46,679 Speaker 1: done sort of a long term review where they've you know, 612 00:27:46,720 --> 00:27:49,360 Speaker 1: they've had their money and for several years. I'm seeing 613 00:27:49,440 --> 00:27:53,359 Speaker 1: multiple folks bailing and basically liquidating their money, taking other investments. 614 00:27:53,400 --> 00:27:56,840 Speaker 1: They're turning off the automated investing feature, which basically means 615 00:27:56,840 --> 00:27:58,720 Speaker 1: that the cash reserves are growing and then you can, 616 00:27:58,800 --> 00:28:01,160 Speaker 1: you know, you can withdraw that amount of money. But 617 00:28:01,400 --> 00:28:03,639 Speaker 1: we do want to give Lending Club a fair shake, 618 00:28:03,800 --> 00:28:05,840 Speaker 1: So Joel kick it off. I want to mention one 619 00:28:05,840 --> 00:28:08,399 Speaker 1: other potential pitfall with with what CJ was asking in 620 00:28:08,440 --> 00:28:10,679 Speaker 1: his question. He said his friend was taking out a 621 00:28:10,720 --> 00:28:14,040 Speaker 1: personal loan in order to lend money out on a 622 00:28:14,080 --> 00:28:16,280 Speaker 1: peer to peer lending site like lending Club, and we 623 00:28:16,359 --> 00:28:18,600 Speaker 1: definitely wouldn't advise that. I think we have to say 624 00:28:18,640 --> 00:28:21,040 Speaker 1: that right now. It's it's way too risky to borrow 625 00:28:21,080 --> 00:28:23,360 Speaker 1: money to do peer to peer lending on a site 626 00:28:23,400 --> 00:28:26,480 Speaker 1: like lending Club or prosper, especially since he's choosing incredibly 627 00:28:26,600 --> 00:28:28,600 Speaker 1: risky borrowers. Right, That's the only way you're going to 628 00:28:28,640 --> 00:28:30,920 Speaker 1: get a return like that is if you're choosing the 629 00:28:30,920 --> 00:28:34,399 Speaker 1: absolutely riskiest borrowers on that site. So so much of 630 00:28:34,440 --> 00:28:37,159 Speaker 1: the risk and reward in this scenario is who you 631 00:28:37,240 --> 00:28:40,120 Speaker 1: choose to lend to. And if you are going to 632 00:28:40,360 --> 00:28:42,320 Speaker 1: lend your money out on a site like lending Club, 633 00:28:42,720 --> 00:28:45,560 Speaker 1: it's really important to invest in the sweet spot, which 634 00:28:45,600 --> 00:28:48,040 Speaker 1: is lending to people with B and C grade credit 635 00:28:48,280 --> 00:28:51,320 Speaker 1: that makes the most sense based on historical returns and 636 00:28:51,400 --> 00:28:54,920 Speaker 1: common sense. You're not lending to people with just ridiculously 637 00:28:55,000 --> 00:28:57,959 Speaker 1: horrific credit scores. That often is a recipe for not 638 00:28:58,040 --> 00:29:00,840 Speaker 1: getting paid back. But if you'll temper you're at expectations 639 00:29:00,880 --> 00:29:03,280 Speaker 1: with the returns that you might receive, and you lend 640 00:29:03,320 --> 00:29:05,720 Speaker 1: to people with better credit scores on the site, you 641 00:29:05,720 --> 00:29:08,640 Speaker 1: could potentially receive a five, six or seven percent return. 642 00:29:08,720 --> 00:29:11,640 Speaker 1: That's pretty healthy, But just know that even that is 643 00:29:11,800 --> 00:29:14,800 Speaker 1: much riskier than other ways that you could be allocating 644 00:29:14,800 --> 00:29:17,560 Speaker 1: your money. Yeah, I think one of the biggest problems 645 00:29:17,680 --> 00:29:20,400 Speaker 1: is that the results seem skewed because a lot of 646 00:29:20,440 --> 00:29:24,280 Speaker 1: folks who have earned double digit numbers in the teens, 647 00:29:24,600 --> 00:29:27,080 Speaker 1: they got started with the Lending Club early on, and 648 00:29:27,160 --> 00:29:30,120 Speaker 1: back then you were able to invest in riskier notes, 649 00:29:30,720 --> 00:29:32,680 Speaker 1: not just the B n C notes, but they also 650 00:29:32,760 --> 00:29:35,800 Speaker 1: had E, F and G notes. Obviously they had a 651 00:29:35,880 --> 00:29:38,959 Speaker 1: higher risk associated with them, but they also paid much 652 00:29:39,040 --> 00:29:41,440 Speaker 1: higher interest rates. And you know what, Lending Club doesn't 653 00:29:41,440 --> 00:29:43,800 Speaker 1: even offer those notes anymore. They phased out F and 654 00:29:43,840 --> 00:29:46,560 Speaker 1: G notes last year and they stopped offering the E 655 00:29:46,640 --> 00:29:48,960 Speaker 1: notes this summer, And so that's just one of the 656 00:29:48,960 --> 00:29:51,200 Speaker 1: ways that they're looking to mitigate the risk. But guess 657 00:29:51,240 --> 00:29:54,240 Speaker 1: what with that mitigation of that risk means smaller possible 658 00:29:54,280 --> 00:29:56,840 Speaker 1: return to you as an investor. So I don't think 659 00:29:56,840 --> 00:29:59,160 Speaker 1: it's at all fair to assume that the that the 660 00:29:59,200 --> 00:30:02,720 Speaker 1: returns that being earned over the past seven years are 661 00:30:02,720 --> 00:30:04,960 Speaker 1: going to continue at all. Yeah, I think it's important 662 00:30:05,000 --> 00:30:07,120 Speaker 1: for us to note here too that while we think 663 00:30:07,120 --> 00:30:09,440 Speaker 1: peer to peer lending can be a decent option for 664 00:30:09,480 --> 00:30:13,040 Speaker 1: people who have invested well in tax advantage retirement accounts 665 00:30:13,240 --> 00:30:15,680 Speaker 1: and potentially real estate too, for folks who have done 666 00:30:15,680 --> 00:30:18,640 Speaker 1: well investing in those fears, like let's say you're maxing 667 00:30:18,640 --> 00:30:20,239 Speaker 1: out a four oh one K or coming close to 668 00:30:20,240 --> 00:30:22,800 Speaker 1: it or maxing out your roth IRA. If you're doing 669 00:30:22,840 --> 00:30:26,120 Speaker 1: well investing in the tax advantaged accounts that you have 670 00:30:26,240 --> 00:30:29,200 Speaker 1: readily available to you, then I think this isn't a 671 00:30:29,280 --> 00:30:33,480 Speaker 1: bad option for a small percentage of your investment portfolio. 672 00:30:33,720 --> 00:30:36,080 Speaker 1: So it shouldn't be your first place to turn. It 673 00:30:36,080 --> 00:30:38,760 Speaker 1: should be way on down the line with smaller portions 674 00:30:38,960 --> 00:30:41,200 Speaker 1: of the money that you have to invest, and you 675 00:30:41,200 --> 00:30:44,800 Speaker 1: should consider those tax advantaged mainstream ways of investing to 676 00:30:44,920 --> 00:30:47,120 Speaker 1: be top priority. Edel, you mentioned the four O one 677 00:30:47,160 --> 00:30:48,880 Speaker 1: K and R A, but you didn't mention h S 678 00:30:48,960 --> 00:30:52,360 Speaker 1: A And that's actually a little tease to our Wednesday's episode, 679 00:30:52,400 --> 00:30:54,560 Speaker 1: so stay tuned for that one. Oh yeah, dude, I'm 680 00:30:54,560 --> 00:30:56,200 Speaker 1: looking forward to tackle on that one. Yeah, that's an 681 00:30:56,200 --> 00:31:00,560 Speaker 1: advanced tease. However, that being said, if you do want 682 00:31:00,560 --> 00:31:02,040 Speaker 1: to try out lending club, you want to make sure 683 00:31:02,080 --> 00:31:04,959 Speaker 1: that you're comfortable with a risk, and not just with 684 00:31:05,040 --> 00:31:07,160 Speaker 1: the fact that this is peer to peer lending and 685 00:31:07,200 --> 00:31:10,959 Speaker 1: that you're loaning to borrowers who are individuals, but just 686 00:31:11,000 --> 00:31:12,600 Speaker 1: the fact too that all your money is tied up 687 00:31:12,640 --> 00:31:16,320 Speaker 1: with an individual company. Right, this is compared to your 688 00:31:16,320 --> 00:31:18,920 Speaker 1: money spread out in the stock market and index funds 689 00:31:18,920 --> 00:31:21,800 Speaker 1: where you're with hundreds of companies. Your money is with 690 00:31:21,840 --> 00:31:24,720 Speaker 1: a singular company lending club. So if you are going 691 00:31:24,760 --> 00:31:27,200 Speaker 1: to go with them, though, make sure that your investments 692 00:31:27,200 --> 00:31:29,800 Speaker 1: that they make up no more than five definitely no 693 00:31:29,800 --> 00:31:32,440 Speaker 1: more than ten percent of your overall portfolio. This can 694 00:31:32,480 --> 00:31:34,680 Speaker 1: sort of be play money, is how I view it. 695 00:31:34,680 --> 00:31:37,200 Speaker 1: If you want to go for it, sure, but this 696 00:31:37,240 --> 00:31:40,040 Speaker 1: should be money that you can afford to lose. Yeah, 697 00:31:40,080 --> 00:31:43,000 Speaker 1: And me personally, I'm never willing to borrow money in 698 00:31:43,080 --> 00:31:45,640 Speaker 1: order to invest. I don't like the idea of using 699 00:31:45,720 --> 00:31:48,920 Speaker 1: leverage in in the hope to seek future returns. It 700 00:31:48,960 --> 00:31:52,240 Speaker 1: puts you in a precarious situation, especially in the potential 701 00:31:52,240 --> 00:31:54,280 Speaker 1: event of something like a job loss. So I'm not 702 00:31:54,360 --> 00:31:56,560 Speaker 1: necessarily sure c J if you're thinking about going that 703 00:31:56,600 --> 00:31:59,200 Speaker 1: same route that your buddy is. But if that's the case, 704 00:31:59,240 --> 00:32:01,760 Speaker 1: I would definitely advise against that. And when it comes 705 00:32:01,800 --> 00:32:04,200 Speaker 1: to investing as well in different brokerage accounts. Don't forget 706 00:32:04,240 --> 00:32:06,640 Speaker 1: the fact that the lending club charges one percent, and 707 00:32:06,720 --> 00:32:09,960 Speaker 1: so we talk about how fees eat into your retirement savings. 708 00:32:10,200 --> 00:32:12,080 Speaker 1: That one percent, it's a big hit on your returns, 709 00:32:12,320 --> 00:32:13,920 Speaker 1: no doubt. All right, Matt, that was a nice set 710 00:32:13,960 --> 00:32:15,360 Speaker 1: of diverse questions. I kind of feel like we just 711 00:32:15,360 --> 00:32:17,720 Speaker 1: picked on lending Club though, like they're not terrible, but 712 00:32:17,720 --> 00:32:20,200 Speaker 1: at the same time it's may not be the best 713 00:32:20,240 --> 00:32:21,880 Speaker 1: move for a lot of folks. Yeah, you know, I 714 00:32:21,920 --> 00:32:24,920 Speaker 1: definitely don't think they're terrible, and I actually think that 715 00:32:24,960 --> 00:32:27,600 Speaker 1: they could be a great place, especially for borrowers to 716 00:32:27,640 --> 00:32:30,560 Speaker 1: turn if you're in need of funding. Club prosper as 717 00:32:30,600 --> 00:32:33,560 Speaker 1: well for for private lending. And some people have had 718 00:32:33,600 --> 00:32:36,760 Speaker 1: success investing their money in peer to peer lending, and honestly, 719 00:32:36,880 --> 00:32:39,520 Speaker 1: I've at times thought of putting a small portion of 720 00:32:39,520 --> 00:32:41,440 Speaker 1: my investments in a peer to peer lending site like 721 00:32:41,520 --> 00:32:43,520 Speaker 1: lending Club. I've never done it. I'm glad you've got 722 00:32:43,520 --> 00:32:45,560 Speaker 1: some experience with it, at least to share, which is helpful. 723 00:32:45,800 --> 00:32:48,040 Speaker 1: But yeah, there's like a proliferation of different kind of 724 00:32:48,120 --> 00:32:51,440 Speaker 1: investing options now that we have the Internet, and peer 725 00:32:51,440 --> 00:32:52,720 Speaker 1: to peer lending is just kind of one of those 726 00:32:52,720 --> 00:32:55,400 Speaker 1: things that's grown a lot since its inception, probably like 727 00:32:55,440 --> 00:32:57,400 Speaker 1: a decade ago. Yeah, that's right, Joel. Let's ahead and 728 00:32:57,400 --> 00:33:00,080 Speaker 1: get back now to our beer, which is called a 729 00:33:00,160 --> 00:33:04,160 Speaker 1: visit to my Crazy Aunt, which is a Gennic style 730 00:33:04,240 --> 00:33:06,920 Speaker 1: ale by Insight Brewing. Joe, what do you think about 731 00:33:06,920 --> 00:33:08,680 Speaker 1: this one? Well, first, I'm not gonna admit whether or 732 00:33:08,680 --> 00:33:10,520 Speaker 1: not I have a Crazy Aunt, because if any of 733 00:33:10,600 --> 00:33:12,479 Speaker 1: them listen, I don't want them to be upset with me. 734 00:33:12,560 --> 00:33:14,880 Speaker 1: I will say I love this art the can artwork. 735 00:33:15,040 --> 00:33:17,000 Speaker 1: It almost has the same green that is in our 736 00:33:17,000 --> 00:33:18,960 Speaker 1: album artwork. It's sort of like a c foam kind 737 00:33:18,960 --> 00:33:21,760 Speaker 1: of green, totally teal action. Yeah, that's a good call, 738 00:33:22,000 --> 00:33:24,160 Speaker 1: all right. Well, yeah, I thought this beer was really unique, 739 00:33:24,160 --> 00:33:26,640 Speaker 1: and I love unique beers. I love drinking a beer 740 00:33:26,960 --> 00:33:29,680 Speaker 1: that tries to reflect a taste in a cocktail or 741 00:33:29,760 --> 00:33:32,240 Speaker 1: just presents me with flavors in a unique way that 742 00:33:32,280 --> 00:33:34,720 Speaker 1: I've never experienced before. I thought this beer really did that. 743 00:33:34,960 --> 00:33:36,360 Speaker 1: I think they did hit the nail on the head 744 00:33:36,440 --> 00:33:39,480 Speaker 1: and in trying to establish that Gin and Tonic style beer. 745 00:33:39,800 --> 00:33:42,520 Speaker 1: It was a really interesting drinking experience. So major thanks 746 00:33:42,520 --> 00:33:44,840 Speaker 1: to Riley for donating this beer to us. Yeah, Riley, 747 00:33:44,880 --> 00:33:47,440 Speaker 1: thank you so much. Joel, I couldn't really drink this 748 00:33:47,520 --> 00:33:49,600 Speaker 1: beer as a beer like I had to kind of 749 00:33:49,640 --> 00:33:51,479 Speaker 1: go into it thinking, Okay, this is sort of a 750 00:33:51,480 --> 00:33:55,440 Speaker 1: cocktail inspired fizzy drink less of an actual beer, Like 751 00:33:55,440 --> 00:33:57,480 Speaker 1: it really didn't remind me more of a gen tonic 752 00:33:57,600 --> 00:33:59,880 Speaker 1: versus a beer, which I love gen tonics by the way, 753 00:34:00,040 --> 00:34:01,360 Speaker 1: So I'm gonna go ahead and put that out there. 754 00:34:01,680 --> 00:34:03,720 Speaker 1: And because of that, I totally picked up on the 755 00:34:04,120 --> 00:34:06,880 Speaker 1: tonic notes, which is like quinine, Like that's the bitterness 756 00:34:06,880 --> 00:34:10,160 Speaker 1: that you get in tonic. Uh. Side note, When Kate 757 00:34:10,200 --> 00:34:11,960 Speaker 1: and I used to shoot weddings, sometimes we would ask 758 00:34:12,000 --> 00:34:15,879 Speaker 1: for just a glass of tonic because just like bitterness. Yeah, 759 00:34:15,920 --> 00:34:18,400 Speaker 1: well it's there's something about that bitterness. It's it's sweet, 760 00:34:18,400 --> 00:34:20,960 Speaker 1: but it's also got that quinine bitterness actually going on, 761 00:34:21,360 --> 00:34:24,600 Speaker 1: and that was reflected in this beer. Actually, I don't 762 00:34:24,640 --> 00:34:27,520 Speaker 1: know if there's actual quinine in this beer, but it's 763 00:34:27,520 --> 00:34:29,560 Speaker 1: sure to taste like it. But this was, like you said, 764 00:34:29,600 --> 00:34:32,640 Speaker 1: a completely different beer drinking experience. It almost kind of 765 00:34:32,640 --> 00:34:34,279 Speaker 1: reminded me of hanging out on the beach drinking a 766 00:34:34,280 --> 00:34:38,240 Speaker 1: bud light lime, which at times is completely appropriate. Sometimes 767 00:34:38,560 --> 00:34:41,600 Speaker 1: that's not what we normally turn to, bud light lime, 768 00:34:41,840 --> 00:34:43,719 Speaker 1: but it's like a blend between bud light lime and 769 00:34:43,760 --> 00:34:46,319 Speaker 1: like a gin and tonic. And so that's not what 770 00:34:46,360 --> 00:34:48,680 Speaker 1: we normally go for man, but I actually enjoyed this. Yep, 771 00:34:48,760 --> 00:34:50,520 Speaker 1: super fun beer man all right, so that's gonna do 772 00:34:50,600 --> 00:34:53,200 Speaker 1: it for this episode. You can find the show notes 773 00:34:53,320 --> 00:34:56,120 Speaker 1: for this episode on our website how to money dot 774 00:34:56,200 --> 00:34:58,840 Speaker 1: com and we'll specifically linked to those led light bulbs 775 00:34:58,840 --> 00:35:01,080 Speaker 1: that Matt found on Amazon or less than a dolorable Well, 776 00:35:01,120 --> 00:35:03,279 Speaker 1: that's right, they beat out Costco and we'll also put 777 00:35:03,320 --> 00:35:05,520 Speaker 1: that script up there as well on how to negotiate 778 00:35:05,560 --> 00:35:07,920 Speaker 1: with your credit card company. Check those out over at 779 00:35:07,920 --> 00:35:10,480 Speaker 1: how to money dot com. And if you enjoyed this episode, 780 00:35:10,520 --> 00:35:12,239 Speaker 1: we would love if you left us a review over 781 00:35:12,280 --> 00:35:14,800 Speaker 1: at Apple Podcasts. On the show, we want to empower 782 00:35:14,880 --> 00:35:17,880 Speaker 1: others to get their personal finances together and buy you 783 00:35:17,960 --> 00:35:19,759 Speaker 1: leaving that review that helps us to spread the word. 784 00:35:19,840 --> 00:35:22,799 Speaker 1: So thank you. All right, buddy, until next time, Best 785 00:35:22,840 --> 00:35:40,600 Speaker 1: friends out, Best friends out. I'm like your radio voice there. 786 00:35:40,600 --> 00:35:41,680 Speaker 1: How's good? Thanks man,