1 00:00:00,200 --> 00:00:02,720 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,880 --> 00:00:05,840 Speaker 1: Matt's and today we're asking the question what's more important 3 00:00:05,920 --> 00:00:28,520 Speaker 1: earning more or spending less when it comes to saving money. 4 00:00:28,760 --> 00:00:30,840 Speaker 1: I feel like you've got two sides of the coin, right, 5 00:00:30,840 --> 00:00:34,560 Speaker 1: You've got earning more money or you've got spending less money. 6 00:00:34,960 --> 00:00:36,519 Speaker 1: And here's the thing is, I don't think it's really 7 00:00:36,560 --> 00:00:38,760 Speaker 1: a debate. Like you hear this and you think, Okay, 8 00:00:39,040 --> 00:00:40,760 Speaker 1: obviously we're going to debate it. But when it comes 9 00:00:40,800 --> 00:00:43,879 Speaker 1: to individuals, we are, oh yeah, we're definitely gonna debate it. 10 00:00:43,920 --> 00:00:45,960 Speaker 1: But we almost as riveting as one of those presidential 11 00:00:46,000 --> 00:00:47,479 Speaker 1: debates we had a couple of months back, which we're 12 00:00:47,479 --> 00:00:50,880 Speaker 1: not at all. It'll be just as chaotic. But that's 13 00:00:50,880 --> 00:00:52,519 Speaker 1: that's the thing. It's not a debate because I think 14 00:00:52,560 --> 00:00:55,720 Speaker 1: a lot of times we tend to think of one 15 00:00:55,720 --> 00:00:57,320 Speaker 1: of those over the other, Right, Like we kind of 16 00:00:57,360 --> 00:00:59,800 Speaker 1: have a natural sort of default that we that we 17 00:01:00,000 --> 00:01:01,800 Speaker 1: out to. And that's the whole point of this episode 18 00:01:01,880 --> 00:01:03,720 Speaker 1: is that we're going to challenge folks to kind of 19 00:01:03,880 --> 00:01:06,640 Speaker 1: get out of that framework of thinking. Right, We're we're 20 00:01:06,640 --> 00:01:09,920 Speaker 1: gonna try to expand people's mental boundaries a little bit, 21 00:01:09,959 --> 00:01:11,840 Speaker 1: and hopefully that will mean that individuals out there will 22 00:01:11,880 --> 00:01:13,959 Speaker 1: will be able to save more because we're gonna encourage 23 00:01:14,000 --> 00:01:15,800 Speaker 1: them to think about something like this in a way 24 00:01:15,840 --> 00:01:18,400 Speaker 1: that they haven't before. So I'm really looking forward to 25 00:01:18,640 --> 00:01:21,080 Speaker 1: this one. Yeah, I feel like this is a question. 26 00:01:21,200 --> 00:01:23,960 Speaker 1: It's almost like an existential question in the personal finance community. 27 00:01:24,000 --> 00:01:26,440 Speaker 1: And where you come down in this debate tells a 28 00:01:26,440 --> 00:01:29,240 Speaker 1: lot about you. And because it does kind of coming 29 00:01:29,280 --> 00:01:31,800 Speaker 1: down to personality to certain extent, right, sure, we're gonna 30 00:01:31,800 --> 00:01:33,720 Speaker 1: talk about that too in this episode. It's just kind 31 00:01:33,720 --> 00:01:36,000 Speaker 1: of a fascinating topic. And so keep listening because because 32 00:01:36,000 --> 00:01:38,080 Speaker 1: Matt and I have just a lot of thoughts on 33 00:01:38,120 --> 00:01:41,640 Speaker 1: this topic and and which one you should prioritize, um 34 00:01:41,640 --> 00:01:44,040 Speaker 1: and what that looks like then in your life. But Matt, 35 00:01:44,080 --> 00:01:45,280 Speaker 1: before we get to that, I want to let you 36 00:01:45,360 --> 00:01:48,720 Speaker 1: know that my oldest daughter, Selma, she's seven, she's been 37 00:01:48,760 --> 00:01:51,200 Speaker 1: saving up money for for quite a while based on 38 00:01:51,360 --> 00:01:53,840 Speaker 1: the work that she does around the house. She typically 39 00:01:53,840 --> 00:01:56,400 Speaker 1: earns three dollars a week. And the thing is, the 40 00:01:56,440 --> 00:01:58,880 Speaker 1: thing that she wanted to buy was a smart watch. 41 00:01:59,560 --> 00:02:02,400 Speaker 1: And what Yeah, and so Emily and I neither of 42 00:02:02,440 --> 00:02:04,920 Speaker 1: us have smart watches. So she is now the first 43 00:02:04,960 --> 00:02:06,920 Speaker 1: member of our family to have a smart watch. It 44 00:02:07,000 --> 00:02:09,600 Speaker 1: fortunately is not Internet connected. Okay, that's what I was 45 00:02:09,600 --> 00:02:11,560 Speaker 1: gonna ask me. Next she able to like text with 46 00:02:11,600 --> 00:02:12,919 Speaker 1: you or so, you know, like kind of do a 47 00:02:12,919 --> 00:02:14,800 Speaker 1: little phone call from a risk kind of thing, like 48 00:02:14,800 --> 00:02:17,040 Speaker 1: a Dick Tracy thing. No, no, it's not not quite 49 00:02:17,040 --> 00:02:19,280 Speaker 1: that advance, but you know, she she can play some games. 50 00:02:19,280 --> 00:02:21,240 Speaker 1: And actually the cool thing is it does kind of 51 00:02:21,240 --> 00:02:24,680 Speaker 1: push kids in the direction of getting outside and running around, 52 00:02:24,720 --> 00:02:26,919 Speaker 1: So that's kind of cool, like some physical activities, counts 53 00:02:27,000 --> 00:02:29,119 Speaker 1: the steps, Yeah, yeah, stuff like that. But we learned 54 00:02:29,120 --> 00:02:31,160 Speaker 1: a lot in this process of getting her this smart watch, 55 00:02:31,200 --> 00:02:34,480 Speaker 1: and one we learned that she can set a golden 56 00:02:34,520 --> 00:02:37,000 Speaker 1: stick to it, which was really cool. We got encouraging 57 00:02:37,000 --> 00:02:38,840 Speaker 1: her in that direction, like, hey, it's going to take 58 00:02:38,880 --> 00:02:40,280 Speaker 1: you a while to say about for this thing, but 59 00:02:40,360 --> 00:02:42,640 Speaker 1: you can do it, and she finally got there. But 60 00:02:42,720 --> 00:02:44,919 Speaker 1: when we were at the store buying the watch, we 61 00:02:44,960 --> 00:02:47,760 Speaker 1: actually saw it was on sale and we thought she 62 00:02:47,800 --> 00:02:49,679 Speaker 1: had the money. But when we when we got home, 63 00:02:49,960 --> 00:02:52,000 Speaker 1: it turned out she was a few dollars short, so 64 00:02:52,000 --> 00:02:54,960 Speaker 1: she actually had like thirty six dollars and so yeah, 65 00:02:55,000 --> 00:02:56,840 Speaker 1: We're like, uh, we were just trying to decide what 66 00:02:56,960 --> 00:02:58,560 Speaker 1: do we give her the watch? Even though she doesn't 67 00:02:58,600 --> 00:03:00,480 Speaker 1: have the money. We bought it with arm money right 68 00:03:00,480 --> 00:03:03,080 Speaker 1: at the store. And so we actually, uh quickly taught 69 00:03:03,080 --> 00:03:08,200 Speaker 1: her another personal finance lesson about debt and contracts. Did 70 00:03:08,200 --> 00:03:09,600 Speaker 1: you put her? You put her on a payment plan 71 00:03:10,160 --> 00:03:14,720 Speaker 1: remaining four dollars exactly exactly, So I coerced her essentially 72 00:03:14,720 --> 00:03:17,560 Speaker 1: into helping me wash standilize some of this is actually 73 00:03:18,600 --> 00:03:20,519 Speaker 1: a terrible deal. I didn't set her up on a 74 00:03:20,560 --> 00:03:24,280 Speaker 1: payday lone, but but we did say we we literally 75 00:03:24,360 --> 00:03:26,400 Speaker 1: had her sign a contract saying that, you know, the 76 00:03:26,440 --> 00:03:29,040 Speaker 1: next time she earned money for mature that that money 77 00:03:29,040 --> 00:03:31,760 Speaker 1: was going directly to mom and dad and going to bank. 78 00:03:31,840 --> 00:03:33,239 Speaker 1: It is not money that you're gonna be able to 79 00:03:33,240 --> 00:03:36,880 Speaker 1: see exactly daddy's money. And then she also had to 80 00:03:37,160 --> 00:03:39,280 Speaker 1: help me, um, you know, wash and vacuum out of 81 00:03:39,280 --> 00:03:41,440 Speaker 1: the cars, and so that that was just kind of 82 00:03:41,480 --> 00:03:43,440 Speaker 1: a way that we could say, you know, like mommy 83 00:03:43,440 --> 00:03:45,040 Speaker 1: and Daddy messed up on that one. We thought you 84 00:03:45,080 --> 00:03:47,800 Speaker 1: had enough and you didn't, um, and that's that's our fault. 85 00:03:47,800 --> 00:03:49,680 Speaker 1: But at the same time, there's something that has to 86 00:03:49,720 --> 00:03:51,680 Speaker 1: be done if you don't have all the money that's 87 00:03:51,680 --> 00:03:53,800 Speaker 1: required to buy this watch. And so yeah, it was 88 00:03:53,880 --> 00:03:56,360 Speaker 1: kind of interesting to walk through that with her. Also 89 00:03:56,400 --> 00:03:59,360 Speaker 1: shows that I'm not always buttoned up on money or 90 00:03:59,400 --> 00:04:01,680 Speaker 1: my kids money. Like I'm doing my best out there, 91 00:04:01,720 --> 00:04:04,040 Speaker 1: but sometimes we screw up. Um, But there are always 92 00:04:04,040 --> 00:04:06,320 Speaker 1: ways to help teach your kids about money and even 93 00:04:06,360 --> 00:04:09,400 Speaker 1: when you mess up, even when you don't do it nice. Man, 94 00:04:09,400 --> 00:04:11,120 Speaker 1: That's that's super cool. I think it's really cool that 95 00:04:11,200 --> 00:04:12,480 Speaker 1: she was able to set a goal like that and 96 00:04:12,480 --> 00:04:15,040 Speaker 1: continue to work towards that because I think with you know, 97 00:04:15,080 --> 00:04:16,880 Speaker 1: with our kids at this age, at least for for us, 98 00:04:17,040 --> 00:04:19,680 Speaker 1: that's the biggest sort of hurdle is to you know, 99 00:04:19,720 --> 00:04:21,719 Speaker 1: for them to maintain that focus, for them to continue 100 00:04:21,839 --> 00:04:25,279 Speaker 1: working towards a specific goal, not getting sidetracked by some 101 00:04:25,320 --> 00:04:26,800 Speaker 1: of the other things that kind of pop up that 102 00:04:26,839 --> 00:04:29,040 Speaker 1: they say they now one instead it's like, well, if 103 00:04:29,040 --> 00:04:30,960 Speaker 1: you do this, that's gonna really you know, set you 104 00:04:31,000 --> 00:04:33,320 Speaker 1: back a few weeks, maybe a couple of months, where 105 00:04:33,320 --> 00:04:34,920 Speaker 1: you won't be able to get that that bigger item. 106 00:04:34,960 --> 00:04:38,360 Speaker 1: I know, like every kind of keeps talking about like smartphones, 107 00:04:38,400 --> 00:04:40,560 Speaker 1: like I phone, She's like, Dad, your phone's it's it's 108 00:04:40,600 --> 00:04:43,080 Speaker 1: pretty magic, you know, just like how things pop up there. 109 00:04:43,400 --> 00:04:45,000 Speaker 1: I feel like she's kind of starting to prime the 110 00:04:45,000 --> 00:04:46,560 Speaker 1: pump a little bit, maybe trying to get kid and 111 00:04:46,600 --> 00:04:48,520 Speaker 1: I used to the idea of her having a phone, 112 00:04:48,640 --> 00:04:51,640 Speaker 1: but she has no idea how expensive those things are. 113 00:04:51,680 --> 00:04:53,640 Speaker 1: But but if she's really interested in it, like, that's 114 00:04:53,640 --> 00:04:55,599 Speaker 1: something we can talk through, you know, it's it's whatever 115 00:04:55,640 --> 00:04:58,200 Speaker 1: it is that you can get your kid to latch 116 00:04:58,240 --> 00:05:01,760 Speaker 1: onto the idea of saving money to achieve the goal. Um, 117 00:05:01,800 --> 00:05:04,520 Speaker 1: I think almost anything is fair game to teach that lesson, 118 00:05:04,560 --> 00:05:06,719 Speaker 1: but I am not willing to go there yet. But 119 00:05:06,960 --> 00:05:09,159 Speaker 1: but yeah, you mean get her a smartphone and already 120 00:05:09,200 --> 00:05:10,840 Speaker 1: for that right so oh yeah, yeah, you know that's 121 00:05:10,920 --> 00:05:12,800 Speaker 1: years down the road. I think that those are that though, 122 00:05:12,800 --> 00:05:15,200 Speaker 1: and that's fine. I mean, different folks have different priorities, 123 00:05:15,240 --> 00:05:16,640 Speaker 1: and it just depends on what you're trying to teach 124 00:05:16,640 --> 00:05:19,320 Speaker 1: your kids. But yeah, that's not something that we're willing 125 00:05:19,320 --> 00:05:21,520 Speaker 1: to do just yet. Well, I think that's yeah, that 126 00:05:21,520 --> 00:05:23,279 Speaker 1: that comes down to more than money. It doesn't matter 127 00:05:23,320 --> 00:05:25,560 Speaker 1: if someone saves up enough money to buy that, it's 128 00:05:25,600 --> 00:05:27,599 Speaker 1: just we're not allowing that in our house for kids 129 00:05:27,600 --> 00:05:30,640 Speaker 1: her age right now, because fame too much of a 130 00:05:30,680 --> 00:05:33,320 Speaker 1: distraction at that point. But but yeah, I agree. Anyway, 131 00:05:33,360 --> 00:05:35,680 Speaker 1: you can incentivize your kid and kind of help them 132 00:05:35,720 --> 00:05:39,200 Speaker 1: see how saving their money, uh, instead of buying the 133 00:05:39,440 --> 00:05:41,760 Speaker 1: shiny object that's right in front of their face. How 134 00:05:41,880 --> 00:05:44,520 Speaker 1: how saving their money can lead to buying something that's 135 00:05:44,600 --> 00:05:47,680 Speaker 1: more meaningful and and something they're actually going to get 136 00:05:47,760 --> 00:05:50,320 Speaker 1: more enjoyment out of. Because yeah, I mean, especially as 137 00:05:50,320 --> 00:05:52,520 Speaker 1: a kid, it's really easy to piddle your money away 138 00:05:52,800 --> 00:05:55,920 Speaker 1: here or there. Um. And as parents, we have a responsibility, 139 00:05:55,960 --> 00:05:58,160 Speaker 1: I think, to help our kids figure out what it 140 00:05:58,200 --> 00:06:00,800 Speaker 1: looks like to set longer goals into achieve those things 141 00:06:01,080 --> 00:06:03,680 Speaker 1: by consistently saving um. And it's kind of fun to 142 00:06:03,680 --> 00:06:06,640 Speaker 1: see the fruits of those efforts. To Speaking of fruit, Matt, 143 00:06:06,720 --> 00:06:08,520 Speaker 1: let's get to the beer and that we're having another 144 00:06:08,520 --> 00:06:10,920 Speaker 1: show today or transition for everybody out there. This one's 145 00:06:10,960 --> 00:06:13,839 Speaker 1: called Bad Bunny Pie. It's by tripping animals, and there 146 00:06:13,839 --> 00:06:17,240 Speaker 1: are a bunch of different fruits in this one. There's BlackBerry, cherry, 147 00:06:17,279 --> 00:06:20,240 Speaker 1: peach um, and then there's a couple of things graham, cracker, vanilla, 148 00:06:20,240 --> 00:06:22,080 Speaker 1: and milk sugar. So this one should be interesting. Man, 149 00:06:22,080 --> 00:06:23,800 Speaker 1: looking forward to having this one on the show with 150 00:06:23,800 --> 00:06:25,760 Speaker 1: you today. But for now, let's get onto the subject 151 00:06:25,800 --> 00:06:28,359 Speaker 1: at hand. We're asking a question today what's more important 152 00:06:28,440 --> 00:06:32,240 Speaker 1: earning more or spending less? And there are two parts 153 00:06:32,839 --> 00:06:35,920 Speaker 1: of the equation when you're looking to to save more money, Matt, right, 154 00:06:36,520 --> 00:06:39,480 Speaker 1: But which one of these deserves more of our focus? 155 00:06:39,880 --> 00:06:43,080 Speaker 1: Depending on your personality you mentioned personality earlier on, you 156 00:06:43,160 --> 00:06:46,040 Speaker 1: might find it easier to hone in on making more 157 00:06:46,080 --> 00:06:48,960 Speaker 1: money without too much concern for being frugal, and other 158 00:06:49,000 --> 00:06:51,760 Speaker 1: listeners will They're all about give me more tips to 159 00:06:52,040 --> 00:06:55,560 Speaker 1: increase my ability to live frugally, but they rarely give 160 00:06:55,640 --> 00:06:57,600 Speaker 1: much thought to how they can increase their earnings in 161 00:06:57,640 --> 00:07:00,640 Speaker 1: the coming years. Not surprisingly, Matt, you and I are 162 00:07:00,640 --> 00:07:03,279 Speaker 1: are going to discuss the importance of both of these 163 00:07:03,320 --> 00:07:05,680 Speaker 1: areas in our financial lives today on the show. We'll 164 00:07:05,680 --> 00:07:08,279 Speaker 1: talk about how to think about earning more and living 165 00:07:08,279 --> 00:07:11,520 Speaker 1: frugally and finding a solid balance of incorporating both of 166 00:07:11,520 --> 00:07:13,520 Speaker 1: these into our lives. Yeah, I mean, you know, it's 167 00:07:13,520 --> 00:07:16,320 Speaker 1: perfectly understandable too that we might tend to to turn 168 00:07:16,360 --> 00:07:18,880 Speaker 1: our focus towards like mostly one or the other. Even 169 00:07:18,920 --> 00:07:21,520 Speaker 1: folks who strive to find balance in all aspects of 170 00:07:21,560 --> 00:07:23,720 Speaker 1: their lives, they're gonna lean a little more towards one, 171 00:07:23,840 --> 00:07:26,640 Speaker 1: you know, possibly to the detriment of the other. Um 172 00:07:26,720 --> 00:07:28,920 Speaker 1: And and that's where I think the real problem lies, 173 00:07:29,280 --> 00:07:31,680 Speaker 1: and that's we all have natural talents and abilities that 174 00:07:31,720 --> 00:07:34,680 Speaker 1: allow us to be better at certain things naturally, you know, 175 00:07:34,920 --> 00:07:36,840 Speaker 1: But we need to make sure that we are looking 176 00:07:36,880 --> 00:07:39,920 Speaker 1: at both sides of the equation. So that means, you know, 177 00:07:39,960 --> 00:07:42,880 Speaker 1: the highway journer out there who was earning six figures 178 00:07:42,920 --> 00:07:45,239 Speaker 1: straight out of college, they should be looking at ways 179 00:07:45,240 --> 00:07:48,080 Speaker 1: that they could be spending less and leading maybe a 180 00:07:48,160 --> 00:07:51,720 Speaker 1: less consumption focused lifestyle. But then for the frugal employee 181 00:07:51,760 --> 00:07:53,880 Speaker 1: who's been earning the same wage for the you know, 182 00:07:53,920 --> 00:07:56,360 Speaker 1: the past five years, they should look to ways that 183 00:07:56,400 --> 00:07:58,840 Speaker 1: they can begin to contribute more at work maybe and 184 00:07:58,880 --> 00:08:02,160 Speaker 1: find ways to grow their income. There is likely room 185 00:08:02,360 --> 00:08:05,720 Speaker 1: for a lot of growth by looking at the entire equation, 186 00:08:05,800 --> 00:08:07,680 Speaker 1: you know, looking at you know, what it is you're 187 00:08:07,680 --> 00:08:10,160 Speaker 1: bringing in, what's going out. Like. Both of those things 188 00:08:10,240 --> 00:08:12,320 Speaker 1: have an impact on the amount of money that you 189 00:08:12,360 --> 00:08:14,320 Speaker 1: are able to save, and we want to make sure 190 00:08:14,320 --> 00:08:16,160 Speaker 1: that we're looking at both of them. All right, so 191 00:08:16,240 --> 00:08:19,720 Speaker 1: let's kind of cover both distinctively, and let's first talk 192 00:08:19,760 --> 00:08:22,800 Speaker 1: about earning more and some of the advantages that come 193 00:08:22,840 --> 00:08:25,360 Speaker 1: into play in your life when you focus a little 194 00:08:25,360 --> 00:08:29,000 Speaker 1: bit more on that aspect instead of the saving more aspect. 195 00:08:29,520 --> 00:08:32,640 Speaker 1: Let's say you're someone who works in sales, or you're 196 00:08:32,679 --> 00:08:35,480 Speaker 1: an entrepreneur who owns your own business. The great thing 197 00:08:35,480 --> 00:08:37,480 Speaker 1: about earning more, well, it can feel like the sky 198 00:08:37,640 --> 00:08:40,280 Speaker 1: is the limit and there aren't really any obstacles to 199 00:08:40,360 --> 00:08:44,360 Speaker 1: keep you from earning a ridiculous salary or just putting 200 00:08:44,400 --> 00:08:46,560 Speaker 1: in a little bit more time and effort in order 201 00:08:46,559 --> 00:08:49,400 Speaker 1: to score a whole lot more income really easily. There 202 00:08:49,400 --> 00:08:51,880 Speaker 1: aren't necessarily a ton of folks in this position, but 203 00:08:52,000 --> 00:08:55,000 Speaker 1: it can be really attractive to people that are to 204 00:08:55,160 --> 00:08:57,800 Speaker 1: be able to squeeze more money out of your day 205 00:08:57,880 --> 00:09:00,800 Speaker 1: job because it just feels so easy. Yeah, it can 206 00:09:00,840 --> 00:09:03,520 Speaker 1: be really exciting if there's no ceiling, right, there's no 207 00:09:03,600 --> 00:09:05,640 Speaker 1: limit on what you can earn. And let's talk about 208 00:09:05,640 --> 00:09:07,720 Speaker 1: your ability to to meet your means. You know, although 209 00:09:07,720 --> 00:09:11,880 Speaker 1: making more doesn't directly correlate to greater financial freedom, it can, 210 00:09:12,120 --> 00:09:14,400 Speaker 1: you know, uh, but look no further than a lot 211 00:09:14,400 --> 00:09:17,240 Speaker 1: of winners right to see that a drastic rise and 212 00:09:17,240 --> 00:09:20,120 Speaker 1: income won't fix all of your money woes. Yeah, there 213 00:09:20,160 --> 00:09:22,800 Speaker 1: have been shows dedicated to that, right. Yeah, but if 214 00:09:22,840 --> 00:09:25,319 Speaker 1: you can earn more, like, you can definitely meet your 215 00:09:25,320 --> 00:09:28,240 Speaker 1: means uh much more easily. And not only are you 216 00:09:28,280 --> 00:09:30,800 Speaker 1: able to cover the basics, right, but you also now 217 00:09:30,800 --> 00:09:33,560 Speaker 1: have the ability to enjoy other experiences and other things 218 00:09:33,559 --> 00:09:36,560 Speaker 1: in life that are limited to those who can afford 219 00:09:36,559 --> 00:09:39,360 Speaker 1: to to pay for those things, you know. I'm thinking of, Like, say, 220 00:09:39,360 --> 00:09:41,760 Speaker 1: if you have big dreams to travel the world, Well, 221 00:09:42,040 --> 00:09:44,040 Speaker 1: it costs a certain amount of money to travel the world, 222 00:09:44,120 --> 00:09:47,640 Speaker 1: you know. Uh. And even aside from experiences and big 223 00:09:47,640 --> 00:09:50,199 Speaker 1: expenses like that, what if you have big goals or 224 00:09:50,200 --> 00:09:52,560 Speaker 1: big dreams to be able to give away a large 225 00:09:52,559 --> 00:09:54,800 Speaker 1: amount of your money, Well, you have to earn that 226 00:09:54,800 --> 00:09:56,319 Speaker 1: in much money in order to be able to give 227 00:09:56,320 --> 00:09:59,200 Speaker 1: it away. And so the ability to earn more money 228 00:09:59,480 --> 00:10:01,400 Speaker 1: uh is going to be able to allow you to 229 00:10:01,440 --> 00:10:03,720 Speaker 1: do some of these bigger things like this. Yeah, Yeah, 230 00:10:03,720 --> 00:10:07,600 Speaker 1: for sure. I think another really important advantage an important 231 00:10:07,600 --> 00:10:09,960 Speaker 1: thing to mention when we're talking about earning more and 232 00:10:10,160 --> 00:10:12,880 Speaker 1: how that is good for our personal finances, is it 233 00:10:12,920 --> 00:10:17,000 Speaker 1: offers us opportunity for personal growth. Often it's a lot 234 00:10:17,080 --> 00:10:20,480 Speaker 1: of personal development that goes into the ability to earn more. 235 00:10:20,760 --> 00:10:23,000 Speaker 1: And when you're growing as a person and your skills 236 00:10:23,000 --> 00:10:25,080 Speaker 1: are increasing, it can be a boon to your long 237 00:10:25,200 --> 00:10:27,520 Speaker 1: term ability to continue to earn more if that's what 238 00:10:27,559 --> 00:10:30,200 Speaker 1: you want to do. You can't really just decide to 239 00:10:30,240 --> 00:10:32,160 Speaker 1: start earning more. Yeah, you actually have to put in 240 00:10:32,200 --> 00:10:33,400 Speaker 1: the work. It's not one of those things you can 241 00:10:33,480 --> 00:10:35,760 Speaker 1: kind of conjure up while you're sitting on your butt. 242 00:10:36,280 --> 00:10:39,120 Speaker 1: And but then as you put in the work to 243 00:10:39,240 --> 00:10:41,680 Speaker 1: learn and develop these new skills and talents in your life, 244 00:10:41,679 --> 00:10:44,600 Speaker 1: you'll you'll likely discover that you have some newfound freedom 245 00:10:44,640 --> 00:10:47,320 Speaker 1: over the type of work that you get to do. Yeah. 246 00:10:47,320 --> 00:10:49,760 Speaker 1: I do think it's interesting how like these different skills, 247 00:10:49,800 --> 00:10:53,079 Speaker 1: whether it's skills or the networks we create, the communities, 248 00:10:53,760 --> 00:10:57,480 Speaker 1: or even just the experiences that we gain, oftentimes lend 249 00:10:57,520 --> 00:10:59,240 Speaker 1: themselves to making more money. It's sort of like this 250 00:10:59,280 --> 00:11:01,719 Speaker 1: perpetual thing, you know. Uh, and so I yeah, I 251 00:11:01,800 --> 00:11:03,800 Speaker 1: totally agree with that, man. Yeah, it can be enriching 252 00:11:03,800 --> 00:11:07,360 Speaker 1: on a personal level and then also on a monetary level. Yeah. Absolutely. Um, 253 00:11:07,400 --> 00:11:09,680 Speaker 1: And we can't really talk about earning more without touching 254 00:11:09,720 --> 00:11:13,320 Speaker 1: on the abundance mindset, or the abundance mentality as Stephen 255 00:11:13,320 --> 00:11:16,160 Speaker 1: Covey calls it in his book UH Seven Habits of 256 00:11:16,280 --> 00:11:19,319 Speaker 1: Highly Effective People. Stephen, he talks about how the abundance 257 00:11:19,360 --> 00:11:22,560 Speaker 1: mindset flows out of a deep inner sense of personal 258 00:11:22,679 --> 00:11:26,079 Speaker 1: worth and security. It's the paradigm that there is plenty 259 00:11:26,120 --> 00:11:29,199 Speaker 1: out there and enough to spare for everybody. It results 260 00:11:29,200 --> 00:11:32,880 Speaker 1: in the sharing of prestige, recognition of profits, of decision making, 261 00:11:32,880 --> 00:11:37,280 Speaker 1: and it opens possibilities, options, alternatives, and creativity. On one hand, 262 00:11:37,320 --> 00:11:39,120 Speaker 1: it's a great way to think, in a great way 263 00:11:39,160 --> 00:11:41,679 Speaker 1: to kind of UH approach the world. You know, it's 264 00:11:41,720 --> 00:11:44,160 Speaker 1: the optimistic approach to your money that you can always 265 00:11:44,200 --> 00:11:46,080 Speaker 1: learn more. But at the same time, we know that 266 00:11:46,080 --> 00:11:48,680 Speaker 1: if you subscribe to that way of thinking without considering 267 00:11:48,840 --> 00:11:52,000 Speaker 1: some potential problems, UH, that could also leave you in 268 00:11:52,000 --> 00:11:53,640 Speaker 1: a in a tough spot. That's true, and that's what 269 00:11:53,679 --> 00:11:55,719 Speaker 1: we want to talk about more is there are some 270 00:11:55,840 --> 00:11:59,080 Speaker 1: drawbacks if we focus too hard on just the the 271 00:11:59,160 --> 00:12:01,400 Speaker 1: earning more so out of the equation. And yeah, that's 272 00:12:01,400 --> 00:12:03,840 Speaker 1: not a joke. There actually are drawbacks to focusing too 273 00:12:03,880 --> 00:12:05,640 Speaker 1: much on earning more. I think people are like, what, 274 00:12:05,640 --> 00:12:07,640 Speaker 1: what are you talking about? What's the drawback and earning 275 00:12:07,640 --> 00:12:09,960 Speaker 1: more money? Well, we'll get to our thoughts on that 276 00:12:10,120 --> 00:12:21,320 Speaker 1: right after this break. Al Right, we are back and 277 00:12:21,360 --> 00:12:24,080 Speaker 1: we're kind of having a debate here about which is 278 00:12:24,080 --> 00:12:27,120 Speaker 1: more important, right earning more or spending less money? And 279 00:12:27,200 --> 00:12:29,480 Speaker 1: we're talking about earning more money right now. We talked 280 00:12:29,520 --> 00:12:32,719 Speaker 1: about the advantages, you know, the pros, but let's talk 281 00:12:32,720 --> 00:12:35,440 Speaker 1: about some of the drawbacks. You know, there are certainly 282 00:12:35,480 --> 00:12:38,120 Speaker 1: a few instances where earning more is gonna fall short. 283 00:12:38,480 --> 00:12:40,440 Speaker 1: And one of those is when you have someone who 284 00:12:40,520 --> 00:12:42,520 Speaker 1: is overly optimistic. You know, we kind of touched on 285 00:12:42,559 --> 00:12:44,760 Speaker 1: this just before the break. I'm talking about me. I 286 00:12:44,760 --> 00:12:47,679 Speaker 1: am kind of overly optimistic. Do you have that abundance mindsetul? 287 00:12:48,120 --> 00:12:51,920 Speaker 1: I call it a preponderance of abundance. The thing is that, like, 288 00:12:52,040 --> 00:12:53,640 Speaker 1: here's the problem is when someone feels like that they 289 00:12:53,640 --> 00:12:56,480 Speaker 1: can always earn more regardless of how they spend their money. 290 00:12:56,720 --> 00:12:59,520 Speaker 1: The ability to earn more isn't always going to be guaranteed. 291 00:12:59,559 --> 00:13:01,640 Speaker 1: It's not always going to be an option for for 292 00:13:01,720 --> 00:13:04,680 Speaker 1: everybody in particular too. I think this mindset it gets 293 00:13:04,679 --> 00:13:08,160 Speaker 1: more fraught as you are climbing the corporate ladder, and 294 00:13:08,240 --> 00:13:11,480 Speaker 1: you know where each wrung equals a boost and pay uh. 295 00:13:11,520 --> 00:13:14,000 Speaker 1: And as we've seen during the pandemic, there are very 296 00:13:14,040 --> 00:13:17,800 Speaker 1: few jobs that are guaranteed to always be there. And 297 00:13:17,880 --> 00:13:20,360 Speaker 1: so to think that, well, I can always earn more, 298 00:13:20,400 --> 00:13:23,200 Speaker 1: I can always kind of out earn my dumb spending. 299 00:13:23,280 --> 00:13:25,439 Speaker 1: That's that's not a great way to think about things. Yeah, 300 00:13:25,520 --> 00:13:28,800 Speaker 1: you're not planning for contingencies and for potential worst case 301 00:13:28,800 --> 00:13:31,240 Speaker 1: scenarios when you're always banking on the fact that you 302 00:13:31,240 --> 00:13:33,679 Speaker 1: can earn more, and at some point that catches up 303 00:13:33,679 --> 00:13:36,640 Speaker 1: to you, whether it's a furlough situation or you know, 304 00:13:36,840 --> 00:13:40,120 Speaker 1: an early retirement situation, or something happens at home. You 305 00:13:40,160 --> 00:13:42,200 Speaker 1: just have to be around more hours. You can't work 306 00:13:42,200 --> 00:13:44,480 Speaker 1: as many hours as you used to. They're just all 307 00:13:44,520 --> 00:13:46,679 Speaker 1: sorts of things that can happen. So the earning more 308 00:13:46,840 --> 00:13:49,040 Speaker 1: side of the equation is great until it's not great 309 00:13:49,040 --> 00:13:53,080 Speaker 1: anymore for so many people. Yeah, another disadvantage of you know, 310 00:13:53,120 --> 00:13:55,080 Speaker 1: focusing too much on the earning more side of things. 311 00:13:55,440 --> 00:13:57,720 Speaker 1: It can lead to over working, really can. It can 312 00:13:57,800 --> 00:14:01,080 Speaker 1: lead to a lifestyle where people find themselves working way 313 00:14:01,120 --> 00:14:04,040 Speaker 1: too much before they know what their entire identity is 314 00:14:04,080 --> 00:14:07,000 Speaker 1: wrapped up in their work and their performance and relationships 315 00:14:07,000 --> 00:14:09,200 Speaker 1: can fall by the wayside. Even and Matt, you mentioned 316 00:14:09,200 --> 00:14:11,960 Speaker 1: the corporate ladder and the climbing the wrongs. You can 317 00:14:11,960 --> 00:14:14,880 Speaker 1: get into mentality where that's the next greatest thing is 318 00:14:14,880 --> 00:14:17,360 Speaker 1: getting that next promotion, is getting that next race. But 319 00:14:17,400 --> 00:14:19,320 Speaker 1: there's just really no end in sight, Like the next 320 00:14:19,320 --> 00:14:21,920 Speaker 1: one isn't as fulfilling as you hoped it would be, 321 00:14:22,200 --> 00:14:24,960 Speaker 1: And so then you look to the next promotion as 322 00:14:25,240 --> 00:14:27,720 Speaker 1: the thing that will finally get you where you want 323 00:14:27,760 --> 00:14:29,960 Speaker 1: to go. Earning more is great, but doing so at 324 00:14:30,000 --> 00:14:32,640 Speaker 1: the expense of striking a solid balance, it's just not 325 00:14:32,840 --> 00:14:36,320 Speaker 1: good for your mental state or for your financial life. Yeah, 326 00:14:36,320 --> 00:14:38,440 Speaker 1: and a quick practical note as well, when you earn 327 00:14:38,480 --> 00:14:40,720 Speaker 1: more money and guess what, you pay more income tax 328 00:14:41,000 --> 00:14:43,280 Speaker 1: that uh, you know, and this isn't a reason to 329 00:14:43,320 --> 00:14:46,560 Speaker 1: avoid earning more money altogether. You can maybe try to 330 00:14:46,560 --> 00:14:48,800 Speaker 1: put a positive spin on it. Maybe you can play 331 00:14:48,840 --> 00:14:51,360 Speaker 1: some mental tricks, try to view, you know, paying taxes 332 00:14:51,400 --> 00:14:53,720 Speaker 1: as a sign of success obviously, but maybe you can 333 00:14:53,720 --> 00:14:55,600 Speaker 1: think of it too as your ability to build up 334 00:14:55,640 --> 00:14:58,200 Speaker 1: the country that you know makes your business possible. That 335 00:14:58,320 --> 00:15:00,680 Speaker 1: makes your job or your salary company you work for, 336 00:15:00,800 --> 00:15:03,120 Speaker 1: that makes that possible. But the thing is, like these 337 00:15:03,160 --> 00:15:05,400 Speaker 1: are are all a few things to keep in mind 338 00:15:05,840 --> 00:15:10,200 Speaker 1: when we're we're weighing between earning more and spending less money. 339 00:15:10,360 --> 00:15:12,640 Speaker 1: But now, Joel, we've talked about earning more money, let's 340 00:15:12,640 --> 00:15:15,800 Speaker 1: talk about spending less. This is the second part of 341 00:15:15,800 --> 00:15:17,640 Speaker 1: the equation. Yes, it is all right, Matt, And you 342 00:15:17,760 --> 00:15:21,000 Speaker 1: just mentioned taxes, and that's an important consideration because when 343 00:15:21,000 --> 00:15:23,480 Speaker 1: you are earning more, let's say you do get a 344 00:15:23,480 --> 00:15:26,160 Speaker 1: a twenty dollar raise, right, that'd be that'd be a 345 00:15:26,200 --> 00:15:29,280 Speaker 1: lot sounds dope, that'd be awesome, But like you said, 346 00:15:29,320 --> 00:15:30,840 Speaker 1: you do have to pay taxes on that, and so 347 00:15:31,120 --> 00:15:32,760 Speaker 1: really when it comes into your life, that could mean 348 00:15:32,960 --> 00:15:36,800 Speaker 1: something more like uh, fourteen thousand dollar race or maybe 349 00:15:36,800 --> 00:15:39,080 Speaker 1: even less, depending on you know what your tax rate 350 00:15:39,160 --> 00:15:41,560 Speaker 1: is in your state and federal tax rate. But when 351 00:15:41,600 --> 00:15:44,160 Speaker 1: you spend less, one of the greatest things is you 352 00:15:44,200 --> 00:15:47,360 Speaker 1: get a dollar for dollar return. Taxes don't enter into 353 00:15:47,440 --> 00:15:51,040 Speaker 1: the equation. And you Ben Franklin, really smart founding father 354 00:15:51,200 --> 00:15:54,000 Speaker 1: said beware of little expenses. A small league will sink 355 00:15:54,040 --> 00:15:56,840 Speaker 1: a great ship. Like how true is that? Right? I mean, 356 00:15:56,880 --> 00:15:59,640 Speaker 1: spending less in small situations can sometimes feel like a 357 00:15:59,720 --> 00:16:02,280 Speaker 1: like a burden. Why should I be sweating the small stuff, 358 00:16:02,400 --> 00:16:05,680 Speaker 1: you might ask yourself when you're looking specifically at the 359 00:16:05,720 --> 00:16:09,000 Speaker 1: spending side. But too many small expenses, they really do 360 00:16:09,040 --> 00:16:11,480 Speaker 1: add up and they create a major problem for us. 361 00:16:11,760 --> 00:16:14,400 Speaker 1: So while earning more is I think a great pursuit, 362 00:16:14,800 --> 00:16:18,640 Speaker 1: at least to a certain extent, spending less is simultaneously crucial. 363 00:16:18,680 --> 00:16:21,080 Speaker 1: So let's touch on some of the other advantages that 364 00:16:21,160 --> 00:16:25,120 Speaker 1: come into our lives when we focus specifically on that. Right. Well, First, 365 00:16:25,200 --> 00:16:27,800 Speaker 1: by spending less, not only are you able to invest 366 00:16:27,800 --> 00:16:30,440 Speaker 1: that money now, but if you're able to maintain that 367 00:16:30,480 --> 00:16:34,240 Speaker 1: discipline of keeping your consumption in check, that is an 368 00:16:34,240 --> 00:16:36,240 Speaker 1: expense that you don't have to worry about later on 369 00:16:36,280 --> 00:16:38,440 Speaker 1: down the road in retirement. Right, That's how you kind 370 00:16:38,440 --> 00:16:41,120 Speaker 1: of get this sort of double benefits. By not spending 371 00:16:41,120 --> 00:16:43,440 Speaker 1: money now, you're able to then save that money, but 372 00:16:43,520 --> 00:16:45,920 Speaker 1: also down the road, that's not an expense that hopefully 373 00:16:45,920 --> 00:16:49,080 Speaker 1: you'll have to revisit. Uh. And so your prioritization of 374 00:16:49,280 --> 00:16:52,160 Speaker 1: spending less just truly does impact your ability to save 375 00:16:52,280 --> 00:16:55,160 Speaker 1: more and you know, to be more prepared for your 376 00:16:55,200 --> 00:16:58,760 Speaker 1: future just by needing and consuming less. But take that example, 377 00:16:58,760 --> 00:17:00,720 Speaker 1: thought kind of flip it right to say you're going 378 00:17:00,760 --> 00:17:03,440 Speaker 1: to consume more now, Well, that's money that you can't save, 379 00:17:03,480 --> 00:17:05,359 Speaker 1: that's money that you're not going to invest, So that 380 00:17:05,400 --> 00:17:07,840 Speaker 1: money isn't growing for you for the long term. And 381 00:17:07,840 --> 00:17:09,800 Speaker 1: guess what if you get used to spending that money 382 00:17:09,800 --> 00:17:11,760 Speaker 1: now and that's something you're also going to maintain in 383 00:17:11,760 --> 00:17:13,560 Speaker 1: the long term. Not only do you have less money 384 00:17:13,560 --> 00:17:16,359 Speaker 1: for yourself in the future, but you also have more expenses, 385 00:17:16,400 --> 00:17:17,840 Speaker 1: and so that would be maybe how instead of it 386 00:17:17,880 --> 00:17:23,119 Speaker 1: being this double benefit, it's a double double whammy. Definitely 387 00:17:23,119 --> 00:17:25,760 Speaker 1: a double whammy if you, yeah, decide to up your 388 00:17:25,800 --> 00:17:29,600 Speaker 1: expenditures spend less right now, because yeah, it's gonna wreck 389 00:17:29,640 --> 00:17:31,720 Speaker 1: the whole equation. Your days of watching game shows on 390 00:17:31,760 --> 00:17:33,920 Speaker 1: TV while you pretended to be homesick from school are 391 00:17:33,960 --> 00:17:38,840 Speaker 1: coming back to you. Oh man. So the girls are 392 00:17:38,840 --> 00:17:41,080 Speaker 1: actually off of school one day recently and they went 393 00:17:41,160 --> 00:17:44,000 Speaker 1: up to visit my grandma and they ended up watching 394 00:17:44,080 --> 00:17:46,720 Speaker 1: Some Prices right with her. I mean, like, that's the 395 00:17:46,760 --> 00:17:48,480 Speaker 1: best game show of all time. It's a classic, and 396 00:17:48,560 --> 00:17:51,440 Speaker 1: my girls know it now. Like even when Drew carry 397 00:17:51,440 --> 00:17:53,720 Speaker 1: at the hell man he rocks. All right, let's talk 398 00:17:53,760 --> 00:17:56,280 Speaker 1: more about spending less and why it's so important. It's 399 00:17:56,280 --> 00:17:59,560 Speaker 1: such an important part of the equation, and spending less 400 00:17:59,600 --> 00:18:03,680 Speaker 1: provide immediate gratification. You know, when we're talking about earning more, 401 00:18:03,880 --> 00:18:06,920 Speaker 1: usually you gotta put in some serious time in order 402 00:18:06,960 --> 00:18:09,400 Speaker 1: to reap the rewards um and to be able to 403 00:18:09,480 --> 00:18:12,280 Speaker 1: increase your pay. You might have to get an advanced 404 00:18:12,280 --> 00:18:15,560 Speaker 1: degree or learn new skills in order to get that raise, 405 00:18:16,040 --> 00:18:17,560 Speaker 1: or you might have to put in more hours on 406 00:18:17,560 --> 00:18:20,000 Speaker 1: the job site to increase your earnings. But when it 407 00:18:20,040 --> 00:18:23,680 Speaker 1: comes to saving more, you can reap the benefits almost instantaneously. 408 00:18:24,040 --> 00:18:27,119 Speaker 1: By avoiding some of the normal purchase patterns who exhibited before, 409 00:18:27,359 --> 00:18:30,199 Speaker 1: you'll start saving money now. The same is true for 410 00:18:30,240 --> 00:18:32,360 Speaker 1: other ways that we can spend less. They don't typically 411 00:18:32,400 --> 00:18:34,560 Speaker 1: require too much time or effort in order to reap 412 00:18:34,600 --> 00:18:37,800 Speaker 1: those rewards. And especially when we're talking about recurring bills, Matt, 413 00:18:37,880 --> 00:18:39,760 Speaker 1: that we can cut out of our lives or at 414 00:18:39,800 --> 00:18:43,560 Speaker 1: least minimize right by by finding a cheaper service that 415 00:18:43,680 --> 00:18:47,359 Speaker 1: brief effort provides an immediate reward, and a reward that 416 00:18:47,400 --> 00:18:49,480 Speaker 1: can last for a whole lot of time. Yeah, the 417 00:18:49,520 --> 00:18:51,800 Speaker 1: ability man for you to make an immediate change to 418 00:18:51,840 --> 00:18:53,560 Speaker 1: your money, the amount of money that you're able to save. 419 00:18:54,080 --> 00:18:56,560 Speaker 1: You can't really replicate that when it comes to earning more, 420 00:18:56,600 --> 00:18:58,680 Speaker 1: but when it comes to you know, cutting your expenses, 421 00:18:58,680 --> 00:19:01,200 Speaker 1: like that's something literally today, you can immediately see more 422 00:19:01,240 --> 00:19:03,439 Speaker 1: money in your account by not spending that money, right, 423 00:19:03,520 --> 00:19:06,800 Speaker 1: like cutting your own hair exactly. You know people are 424 00:19:06,840 --> 00:19:08,680 Speaker 1: into it, right, I've actually thought about not even cutting 425 00:19:08,720 --> 00:19:10,280 Speaker 1: my own hair. I'm thinking about kind of continuing the 426 00:19:10,280 --> 00:19:12,920 Speaker 1: whole pandemic long hair thing. When you think about that, 427 00:19:13,400 --> 00:19:16,080 Speaker 1: keep going, man, all right, we'll revisit that in a 428 00:19:16,119 --> 00:19:18,040 Speaker 1: few months and see how terrible things work. I want 429 00:19:18,080 --> 00:19:20,639 Speaker 1: you to go like fabio length or something. Uh if only. 430 00:19:21,280 --> 00:19:24,359 Speaker 1: And also, man, there's maybe the obvious advantage of spending 431 00:19:24,400 --> 00:19:28,879 Speaker 1: less money, which is participating less in consumption and consumerism. 432 00:19:28,920 --> 00:19:31,200 Speaker 1: By doing that, we are able to bring less junk 433 00:19:31,240 --> 00:19:33,200 Speaker 1: into our lives, which you know then takes up less 434 00:19:33,200 --> 00:19:36,040 Speaker 1: space in our homes um that we didn't have to organize. 435 00:19:36,119 --> 00:19:37,880 Speaker 1: And then that has a ripple effect too, because that's 436 00:19:37,880 --> 00:19:39,479 Speaker 1: that's less stuff that we have to maintain and then 437 00:19:39,560 --> 00:19:42,960 Speaker 1: keep up with. If we get serious about spending less, 438 00:19:43,040 --> 00:19:45,560 Speaker 1: it really does have this domino effect, which I think 439 00:19:45,560 --> 00:19:49,679 Speaker 1: can create more mental sanity, greater happiness. Eventually, I think 440 00:19:49,720 --> 00:19:51,560 Speaker 1: this should lead us to to look to the things 441 00:19:51,960 --> 00:19:55,239 Speaker 1: and honestly, namely the people around us that can provide us, 442 00:19:55,440 --> 00:19:58,679 Speaker 1: you know, real meaning, real satisfaction, instead of looking to 443 00:19:58,760 --> 00:20:01,240 Speaker 1: all the stuff that we order online, you know, even 444 00:20:01,359 --> 00:20:03,240 Speaker 1: maybe some of the larger purchases we make, like whether 445 00:20:03,240 --> 00:20:05,840 Speaker 1: it be cars or homes. It's weird to think that 446 00:20:05,840 --> 00:20:09,480 Speaker 1: that's saving more money, uh, specifically by spending less can 447 00:20:09,520 --> 00:20:12,159 Speaker 1: have an impact at that deep of a level that 448 00:20:12,240 --> 00:20:15,119 Speaker 1: it really can. Yeah, it's not literally just that it 449 00:20:15,119 --> 00:20:17,359 Speaker 1: helps your bottom line, but we think it's a better 450 00:20:17,400 --> 00:20:19,640 Speaker 1: way to live by by cutting your spending and living 451 00:20:19,640 --> 00:20:22,639 Speaker 1: more frugally. If we approach spending less from from a 452 00:20:22,680 --> 00:20:25,040 Speaker 1: healthy place and we're able to cut back, you and 453 00:20:25,080 --> 00:20:27,400 Speaker 1: I both agree that that the things that are meaningful 454 00:20:27,400 --> 00:20:30,760 Speaker 1: begin to shine even more brightly. Um that that our 455 00:20:30,760 --> 00:20:33,760 Speaker 1: attention gets focused in the right direction when we're focused 456 00:20:33,840 --> 00:20:36,080 Speaker 1: less on bringing more things in our lives and buying 457 00:20:36,080 --> 00:20:38,240 Speaker 1: more stuff. Yeah, totally. And the beginning to shine because 458 00:20:38,280 --> 00:20:41,200 Speaker 1: we have more mental light to shine on those things, 459 00:20:41,200 --> 00:20:44,919 Speaker 1: not because they are uh inherently less valuable before. But 460 00:20:44,960 --> 00:20:47,639 Speaker 1: if we devote less attention and energy and of our 461 00:20:47,880 --> 00:20:50,880 Speaker 1: our time towards those things, uh, they do wane, right. 462 00:20:50,960 --> 00:20:53,119 Speaker 1: And when we have more time, more mental space to 463 00:20:53,240 --> 00:20:55,280 Speaker 1: invest in those people and those things, uh, you know, 464 00:20:55,320 --> 00:20:57,359 Speaker 1: the better our lives are gonna be. Yeah. And so 465 00:20:57,480 --> 00:20:59,560 Speaker 1: these are some of the I guess the advantages to 466 00:20:59,600 --> 00:21:01,960 Speaker 1: spending less. But we're gonna awesome. Make sure that we 467 00:21:01,960 --> 00:21:05,520 Speaker 1: get to the drawbacks of spending less and what we think, 468 00:21:05,680 --> 00:21:08,119 Speaker 1: you know, the ultimate solution is, and we'll get to 469 00:21:08,200 --> 00:21:19,080 Speaker 1: that right after the break. All right, now we're back 470 00:21:19,080 --> 00:21:21,320 Speaker 1: to the break. Let's keep talking about spending less versus 471 00:21:21,359 --> 00:21:24,639 Speaker 1: earning more? Do it? Interesting topic and we've got more 472 00:21:24,680 --> 00:21:28,159 Speaker 1: ground to cover here. And interestingly enough, it seems like 473 00:21:28,680 --> 00:21:31,359 Speaker 1: the idea of spending less, like can that ever cross 474 00:21:31,600 --> 00:21:34,119 Speaker 1: a threshold? Can that ever become something that's bad if 475 00:21:34,119 --> 00:21:36,040 Speaker 1: we put too much focus on that in our lives? 476 00:21:36,320 --> 00:21:38,119 Speaker 1: Um And a lot of people in the personal finance 477 00:21:38,119 --> 00:21:41,200 Speaker 1: community would say no, Like their frugality is you can 478 00:21:41,200 --> 00:21:43,080 Speaker 1: always cut back a little bit more, you can always 479 00:21:43,080 --> 00:21:45,359 Speaker 1: tighten the belt. Yeah, a lot of people say frugality 480 00:21:45,400 --> 00:21:47,280 Speaker 1: is always good no matter what we would say. I 481 00:21:47,320 --> 00:21:50,000 Speaker 1: disagree yeah, would we would say that there are limits 482 00:21:50,040 --> 00:21:53,280 Speaker 1: to fruit the ability for frugality to pay dividends, and 483 00:21:53,320 --> 00:21:55,600 Speaker 1: so yeah, let's talk about the drawbacks spending less. In 484 00:21:55,640 --> 00:21:57,119 Speaker 1: the example that we give every week, we have a 485 00:21:57,119 --> 00:21:59,159 Speaker 1: craft beer on the show, and the reason we have 486 00:21:59,240 --> 00:22:02,399 Speaker 1: that is because we're prioritizing craft beer. We're prioritizing some 487 00:22:02,440 --> 00:22:04,919 Speaker 1: things in life now, we're not only saving for the future. 488 00:22:05,160 --> 00:22:07,760 Speaker 1: And folks could say, uh, well, guys, you could be 489 00:22:07,800 --> 00:22:10,040 Speaker 1: a little more frugal by eliminating that from your budget. 490 00:22:10,080 --> 00:22:11,439 Speaker 1: But you know what, for you and me, it's not 491 00:22:11,480 --> 00:22:14,080 Speaker 1: worth it. Like that's something that we're going to include, uh, 492 00:22:14,240 --> 00:22:16,240 Speaker 1: because it's important to us. And what would we gain 493 00:22:16,280 --> 00:22:19,040 Speaker 1: by cutting it out? Just uh, we'd be a few 494 00:22:19,080 --> 00:22:21,760 Speaker 1: a few more bucks a few more bucks there, and 495 00:22:21,800 --> 00:22:23,080 Speaker 1: a lot more of a bummer and not get to 496 00:22:23,160 --> 00:22:25,240 Speaker 1: drink the stuff that we are are super interested in 497 00:22:25,280 --> 00:22:27,760 Speaker 1: trying exactly. Yeah, And so there are certainly things, you know, 498 00:22:27,800 --> 00:22:30,720 Speaker 1: in specific ways to focus on where you can cut 499 00:22:30,720 --> 00:22:33,000 Speaker 1: back things where it's not moving the needle. But if 500 00:22:33,040 --> 00:22:36,000 Speaker 1: you are cutting back in areas that kind of really hurt, 501 00:22:36,280 --> 00:22:37,960 Speaker 1: then yeah, you and I, we we feel that could 502 00:22:38,000 --> 00:22:41,040 Speaker 1: have a seriously like negative impact, right right, So, okay, 503 00:22:41,440 --> 00:22:44,080 Speaker 1: if we focus too much on spending less, it can 504 00:22:44,080 --> 00:22:46,639 Speaker 1: be easy to develop a scarcity mindset, right. This is 505 00:22:46,680 --> 00:22:50,359 Speaker 1: by one of the downsides of focusing too hard on 506 00:22:50,400 --> 00:22:53,360 Speaker 1: that one side of the equation and living with that 507 00:22:53,400 --> 00:22:56,120 Speaker 1: belief can cause us to relate to money poorly overall, 508 00:22:56,400 --> 00:22:59,320 Speaker 1: just have a bad relationship with it. Oftentimes, people that 509 00:22:59,480 --> 00:23:02,119 Speaker 1: focus too hard in this direction determined that they have 510 00:23:02,200 --> 00:23:05,040 Speaker 1: to hoard money when it comes along. They become penny pinchers, 511 00:23:05,040 --> 00:23:07,760 Speaker 1: maybe a stereotype of someone who handles money well, but 512 00:23:07,840 --> 00:23:11,280 Speaker 1: basically someone that doesn't have any joy that accompanies the 513 00:23:11,880 --> 00:23:14,320 Speaker 1: what should come along with having a financial margin in 514 00:23:14,359 --> 00:23:17,959 Speaker 1: their lives. Yeah, and this is how having uh scarcy mindset, 515 00:23:18,000 --> 00:23:20,359 Speaker 1: how it can be viewed negatively, right Yeah. Yeah, And 516 00:23:20,359 --> 00:23:22,520 Speaker 1: there certainly are a lot of negative associations with the 517 00:23:22,560 --> 00:23:25,440 Speaker 1: scarcity mindset. But actually, you know, on episode one eighteen, Matt, 518 00:23:25,480 --> 00:23:27,960 Speaker 1: we talked with Christy Chen and I thought she had 519 00:23:27,960 --> 00:23:31,640 Speaker 1: some really interesting things to share about what's been positive 520 00:23:31,680 --> 00:23:34,520 Speaker 1: for her in having a scarcity mindset. And she um 521 00:23:34,640 --> 00:23:38,399 Speaker 1: grew up actually incredibly poor in China, and then her 522 00:23:38,440 --> 00:23:42,200 Speaker 1: family moved to Canada and she was still really bore, 523 00:23:42,800 --> 00:23:46,080 Speaker 1: But that scarcity mindset. She credits it in her ability 524 00:23:46,119 --> 00:23:49,840 Speaker 1: to develop persepearance and adaptability, and I think it's really cool. 525 00:23:49,880 --> 00:23:51,720 Speaker 1: Like who am I to disagree with Christy Shann who 526 00:23:51,920 --> 00:23:55,040 Speaker 1: retired in her early thirties. So I think that a 527 00:23:55,080 --> 00:23:57,600 Speaker 1: scarcity mindset, while it can be really harmful and it 528 00:23:57,640 --> 00:24:00,679 Speaker 1: can lead to that penny pinching in ay to to 529 00:24:00,720 --> 00:24:02,600 Speaker 1: find any joy when it comes to your life in 530 00:24:02,640 --> 00:24:06,560 Speaker 1: regards to personal finances. Yeah, that Gallum lifestyle exactly. There's 531 00:24:06,600 --> 00:24:08,480 Speaker 1: also an element to which, you know, you can have 532 00:24:08,600 --> 00:24:11,360 Speaker 1: a healthy scarcity mindset, and so yeah, I think that's 533 00:24:11,359 --> 00:24:14,159 Speaker 1: something that's okay to pursue. It's really all about balance 534 00:24:14,160 --> 00:24:16,080 Speaker 1: when it comes to how we view cutting back on 535 00:24:16,119 --> 00:24:18,359 Speaker 1: our spending. Yeah. And in addition to that too, I 536 00:24:18,440 --> 00:24:21,720 Speaker 1: mean that scarcity mindset can like really anchor you to reality, right, Like, 537 00:24:21,920 --> 00:24:23,960 Speaker 1: I mean one of the things that it was able 538 00:24:24,000 --> 00:24:26,320 Speaker 1: to cause her to do was just to be Christie, right. 539 00:24:26,560 --> 00:24:28,480 Speaker 1: Was it allowed her to be really resourceful and it 540 00:24:28,480 --> 00:24:30,240 Speaker 1: allowed her to kind of, you know, think outside of 541 00:24:30,280 --> 00:24:32,159 Speaker 1: the box in ways that she could save money well, 542 00:24:32,160 --> 00:24:35,119 Speaker 1: and actually for her so much of her childhood it 543 00:24:35,200 --> 00:24:37,240 Speaker 1: was it was out of necessity, that she developed that 544 00:24:37,240 --> 00:24:40,479 Speaker 1: scarcity mindset, that there was an actual scarcity for her, 545 00:24:40,600 --> 00:24:42,960 Speaker 1: for her family. Um, and so she had to get creative. 546 00:24:43,200 --> 00:24:44,960 Speaker 1: And in some of our lives that might be true, 547 00:24:44,960 --> 00:24:47,720 Speaker 1: there might actually be a scarcity, there might not be enough. 548 00:24:48,119 --> 00:24:51,080 Speaker 1: But but for most people it's a scarcity mindset. It's 549 00:24:51,119 --> 00:24:55,280 Speaker 1: not actually having a scarcity of resources, right. Yeah, So 550 00:24:55,320 --> 00:24:57,560 Speaker 1: by choosing to, you know, focus on how we could 551 00:24:57,560 --> 00:24:59,600 Speaker 1: spend less a lot of times, Like one of the 552 00:24:59,640 --> 00:25:01,560 Speaker 1: disabey images is that could lead to a lack of 553 00:25:01,640 --> 00:25:04,879 Speaker 1: focus on the big picture. You know, like a focus 554 00:25:04,920 --> 00:25:07,119 Speaker 1: on frugality can lead, like you said, to sort of 555 00:25:07,119 --> 00:25:09,960 Speaker 1: like a penny pinching mindset. Uh, that is focused on 556 00:25:10,000 --> 00:25:12,879 Speaker 1: the small things at the expense of the big things 557 00:25:12,880 --> 00:25:14,720 Speaker 1: in life. You know. This is when you know, we 558 00:25:14,800 --> 00:25:17,320 Speaker 1: might cut off our nose to despite our face, Like 559 00:25:17,359 --> 00:25:19,560 Speaker 1: and so we do this by say, driving two extra 560 00:25:19,600 --> 00:25:22,760 Speaker 1: miles or maybe twenty extra miles in order to save 561 00:25:22,800 --> 00:25:25,560 Speaker 1: two cents a gallon on gas. Uh. This is when 562 00:25:25,560 --> 00:25:29,600 Speaker 1: we devalue our time by over prioritizing saving a few 563 00:25:29,640 --> 00:25:32,159 Speaker 1: bucks here and there. We forget that money is a 564 00:25:32,160 --> 00:25:34,879 Speaker 1: tool to help us to achieve the important goals that 565 00:25:34,920 --> 00:25:37,639 Speaker 1: we have for ourselves into doing so. Uh, you know, 566 00:25:37,680 --> 00:25:39,760 Speaker 1: we can take the joy out of the journey. And 567 00:25:39,800 --> 00:25:42,080 Speaker 1: so you know, while we do look too, you know, 568 00:25:42,119 --> 00:25:43,840 Speaker 1: two different ways that we can save more money. It 569 00:25:44,000 --> 00:25:46,400 Speaker 1: is important to remember why it is that you're doing so, 570 00:25:46,720 --> 00:25:49,240 Speaker 1: don't lose sight of that big picture. Yeah. Another important 571 00:25:49,240 --> 00:25:51,320 Speaker 1: thing to to relax when it comes to the spending 572 00:25:51,400 --> 00:25:53,200 Speaker 1: less side of the equation is that you can only 573 00:25:53,600 --> 00:25:56,280 Speaker 1: cut so much, right, there comes a point that saving 574 00:25:56,280 --> 00:25:59,640 Speaker 1: more money isn't possible if you're already living a rice 575 00:25:59,720 --> 00:26:01,880 Speaker 1: and being kind of life. How how can you cut 576 00:26:01,920 --> 00:26:06,000 Speaker 1: back even more? Basically, if we just rice, just rice, 577 00:26:06,400 --> 00:26:08,480 Speaker 1: or just beans, no, no way. I love the rice, 578 00:26:09,720 --> 00:26:11,480 Speaker 1: I'm gonna cut the beans. Only get the rice. But 579 00:26:11,520 --> 00:26:13,200 Speaker 1: that's like part of a balanced diet, right, the rice 580 00:26:13,240 --> 00:26:15,000 Speaker 1: and the beans. If you just have one, it's not 581 00:26:15,080 --> 00:26:17,040 Speaker 1: very healthy. Something about the combination of the two. I 582 00:26:17,080 --> 00:26:19,560 Speaker 1: think there's a wallop of nutrients and both rice and beans, 583 00:26:19,640 --> 00:26:22,960 Speaker 1: right exactly. But if you're already living a lifestyle that's 584 00:26:23,080 --> 00:26:25,680 Speaker 1: so frugal that it could be classified as a rice 585 00:26:25,720 --> 00:26:27,880 Speaker 1: and beans kind of lifestyle, there's just not much more 586 00:26:27,920 --> 00:26:30,720 Speaker 1: you can cut in order to increase your savings, and 587 00:26:30,720 --> 00:26:34,000 Speaker 1: so looking to earning more is is really important, and 588 00:26:34,000 --> 00:26:36,920 Speaker 1: you're being shortsighted if you're not looking in that direction. 589 00:26:37,119 --> 00:26:38,760 Speaker 1: I think to mount just a quick warning, I think 590 00:26:38,760 --> 00:26:40,840 Speaker 1: this can be used as an excuse for people to 591 00:26:40,880 --> 00:26:42,880 Speaker 1: not save more. Oh, I just can't cut back anymore. 592 00:26:43,240 --> 00:26:45,760 Speaker 1: And and that is sometimes true for some people, but 593 00:26:45,800 --> 00:26:47,639 Speaker 1: for a lot of us, there are ways we can 594 00:26:47,640 --> 00:26:50,800 Speaker 1: cut which haven't been thoughtful or I would say enough, right, 595 00:26:50,840 --> 00:26:53,320 Speaker 1: strategic enough. Yeah, I would say for most people they 596 00:26:53,320 --> 00:26:55,760 Speaker 1: can cut back, yes, completely, And if folks say that 597 00:26:55,800 --> 00:26:58,560 Speaker 1: they can't, it is more of an actual excuse, not 598 00:26:58,680 --> 00:27:01,040 Speaker 1: because that's the reality that they're they're facing. Right. Yeah, 599 00:27:01,040 --> 00:27:02,960 Speaker 1: you and I we talked recently about like ditching a 600 00:27:03,000 --> 00:27:04,960 Speaker 1: car in your life, and and that's the kind of 601 00:27:04,960 --> 00:27:08,120 Speaker 1: thing where it's strategic. It's not easy to go from 602 00:27:08,280 --> 00:27:10,880 Speaker 1: two cars to one car, right, That's not a simple 603 00:27:10,920 --> 00:27:12,840 Speaker 1: thing to do, but it is possible for a lot 604 00:27:12,840 --> 00:27:14,320 Speaker 1: of people, and it's one of those things where you 605 00:27:14,359 --> 00:27:17,320 Speaker 1: can typically cut that out. But there is also the reality, 606 00:27:17,400 --> 00:27:19,520 Speaker 1: right that exists when you're focusing on this side of 607 00:27:19,520 --> 00:27:23,240 Speaker 1: the equation that cutting past a certain point provides diminishing returns, 608 00:27:23,320 --> 00:27:25,320 Speaker 1: and it can make money feel like a drudgery. And 609 00:27:25,320 --> 00:27:26,919 Speaker 1: and that's not what we're about either. We don't want 610 00:27:26,960 --> 00:27:29,480 Speaker 1: you to live a lifestyle where you're looking at every 611 00:27:29,520 --> 00:27:31,520 Speaker 1: single cent that comes in or goes out. We want 612 00:27:31,560 --> 00:27:34,199 Speaker 1: you to have more freedom and a healthier relationship with 613 00:27:34,240 --> 00:27:37,239 Speaker 1: money that doesn't involve cutting to the bare bones. And 614 00:27:37,240 --> 00:27:39,199 Speaker 1: by the way, I'm totally fine with people looking at 615 00:27:39,240 --> 00:27:41,320 Speaker 1: every single cent that comes in and out. It's just 616 00:27:41,440 --> 00:27:43,560 Speaker 1: the matter of like having to make a judgment calls 617 00:27:44,160 --> 00:27:46,879 Speaker 1: every single sinse Yeah exactly, I'm all about tracking it 618 00:27:46,920 --> 00:27:49,680 Speaker 1: to the Pennyboddy. I know you are another thing. Man. 619 00:27:50,040 --> 00:27:52,399 Speaker 1: In an attempt to save more, you can also end 620 00:27:52,480 --> 00:27:54,880 Speaker 1: up cheaping out on other things. You know, you might 621 00:27:54,920 --> 00:27:58,320 Speaker 1: turn down, uh, you know, incredible opportunities to be with 622 00:27:58,359 --> 00:28:00,520 Speaker 1: people or maybe to go see a for and getting 623 00:28:00,520 --> 00:28:03,920 Speaker 1: married because of attempts to save more money. I'm thinking 624 00:28:03,960 --> 00:28:06,240 Speaker 1: about an instance recently when Kate, now we're thinking about 625 00:28:06,240 --> 00:28:08,000 Speaker 1: going on a trip, and it looked like I was 626 00:28:08,000 --> 00:28:11,440 Speaker 1: gonna be able to save money by contacting the lady directly, 627 00:28:11,640 --> 00:28:13,800 Speaker 1: and guess what we lost out on the place because 628 00:28:13,840 --> 00:28:17,240 Speaker 1: I was looking to save like another ten percent. Bummer, Uh, 629 00:28:17,280 --> 00:28:19,399 Speaker 1: that's that's an example that came back to bite me 630 00:28:19,440 --> 00:28:22,479 Speaker 1: and something that Kate reminded me of recently. And this 631 00:28:22,520 --> 00:28:24,240 Speaker 1: isn't to say that like sometimes we don't have to 632 00:28:24,280 --> 00:28:26,160 Speaker 1: make hard decisions, but you know, I think we can 633 00:28:26,200 --> 00:28:29,639 Speaker 1: have some big regrets over money we were unwilling to 634 00:28:29,680 --> 00:28:32,359 Speaker 1: spend if it means missing out on, you know, some 635 00:28:32,440 --> 00:28:35,800 Speaker 1: possibly really important milestones. It makes me think of the 636 00:28:35,800 --> 00:28:37,399 Speaker 1: there's this guy that we kind of ran across on 637 00:28:37,480 --> 00:28:39,840 Speaker 1: Reddit that we heard about who eventually he lost his 638 00:28:39,840 --> 00:28:42,920 Speaker 1: girlfriend for not spending money to go on a trip 639 00:28:42,920 --> 00:28:44,600 Speaker 1: with her, I think, to maybe see her parents something 640 00:28:44,600 --> 00:28:46,160 Speaker 1: like that. That's but I feel like that's one of 641 00:28:46,200 --> 00:28:49,400 Speaker 1: the ultimate frugal versus cheaps. And that's why we we 642 00:28:49,480 --> 00:28:52,560 Speaker 1: always talk about that is because there is more to 643 00:28:52,600 --> 00:28:55,280 Speaker 1: consider than just the bottom line right then, than just 644 00:28:55,360 --> 00:28:57,720 Speaker 1: the dollar amount. There are things that you have to weigh, 645 00:28:58,080 --> 00:28:59,720 Speaker 1: and that's honestly, what can be so tricky when it 646 00:28:59,720 --> 00:29:02,000 Speaker 1: comes to personal finances. Yeah, like the feelings of the 647 00:29:02,000 --> 00:29:05,160 Speaker 1: person closest to you and whether or not they're still 648 00:29:05,200 --> 00:29:06,480 Speaker 1: gonna be cool with you if you don't go on 649 00:29:06,480 --> 00:29:08,480 Speaker 1: the trip with them, And those are important things to 650 00:29:08,520 --> 00:29:12,480 Speaker 1: consider and and yes, but those relational dynamics are so 651 00:29:12,560 --> 00:29:15,600 Speaker 1: crucial to you know, the happiness that we experience in 652 00:29:15,640 --> 00:29:19,080 Speaker 1: our lives. And if we are too cheap um, because 653 00:29:19,200 --> 00:29:22,160 Speaker 1: we're we're so focused on spending less, we're gonna miss 654 00:29:22,160 --> 00:29:24,600 Speaker 1: out and we're gonna let the people closest to us 655 00:29:24,680 --> 00:29:26,800 Speaker 1: down from kind of time um. And so yeah, that 656 00:29:26,880 --> 00:29:28,920 Speaker 1: is a hard balance to strike, but it's an important 657 00:29:28,920 --> 00:29:30,880 Speaker 1: one to strike. And I think Matt, you know, one 658 00:29:30,880 --> 00:29:33,640 Speaker 1: more downside to focusing too much on the spending less 659 00:29:33,640 --> 00:29:36,400 Speaker 1: side of the equation is the extreme focus and discipline 660 00:29:36,400 --> 00:29:39,480 Speaker 1: that it takes. Willpower is finite, and constantly tracking every 661 00:29:39,480 --> 00:29:43,120 Speaker 1: penny can become exhausting for people, not for some, not 662 00:29:43,200 --> 00:29:45,680 Speaker 1: for you. You're kind of a prol at it. Well again, 663 00:29:45,720 --> 00:29:47,680 Speaker 1: I feel like it's less the tracking, and it's it's 664 00:29:47,720 --> 00:29:49,960 Speaker 1: like the constant like okay, am I going to spend 665 00:29:49,960 --> 00:29:51,640 Speaker 1: money on this? You know? And so like when you're 666 00:29:51,640 --> 00:29:54,520 Speaker 1: constantly when you have this like mental fatigue because you're 667 00:29:54,560 --> 00:29:57,680 Speaker 1: constantly making judgment calls like that's what's hard, or constantly 668 00:29:57,720 --> 00:30:00,480 Speaker 1: saying no to like these things that could actually bring 669 00:30:00,480 --> 00:30:02,800 Speaker 1: you joy, but instead you're saying no at every turn, 670 00:30:02,920 --> 00:30:05,040 Speaker 1: Like I think I think that's when it specifically can 671 00:30:05,080 --> 00:30:07,000 Speaker 1: can really become exhausting. Yeah, And that's why, you know, 672 00:30:07,000 --> 00:30:09,680 Speaker 1: we're fans of automating as much of your finances as 673 00:30:09,720 --> 00:30:12,760 Speaker 1: you can so that there's less of a mental impact 674 00:30:12,960 --> 00:30:15,360 Speaker 1: that you have to make when it comes to financial decisions. 675 00:30:15,640 --> 00:30:17,800 Speaker 1: And the great thing is too, that making a couple 676 00:30:17,880 --> 00:30:21,120 Speaker 1: of bigger savings decisions can cut your costs for months 677 00:30:21,360 --> 00:30:23,920 Speaker 1: or years to come. Those are the best kind of savings, 678 00:30:23,960 --> 00:30:26,840 Speaker 1: the ones that recur, repeat, and that are big in number. 679 00:30:26,960 --> 00:30:29,040 Speaker 1: But one of the drawbacks to only focusing on spending 680 00:30:29,080 --> 00:30:31,040 Speaker 1: less is that it can be difficult to do for 681 00:30:31,120 --> 00:30:34,680 Speaker 1: too long. That again shows the need for balance when 682 00:30:34,720 --> 00:30:37,360 Speaker 1: it comes to holding these two intentions when we're talking 683 00:30:37,360 --> 00:30:39,680 Speaker 1: about earning more and spending less, like they're both just 684 00:30:39,880 --> 00:30:42,680 Speaker 1: wonderful things to do, um, but it's just really really 685 00:30:42,680 --> 00:30:45,240 Speaker 1: hard to say that one is more important than the other. Yeah. 686 00:30:45,240 --> 00:30:48,720 Speaker 1: So that's why not surprisingly doing both is the answer here. 687 00:30:48,800 --> 00:30:51,080 Speaker 1: This is the answer to the saving more or the 688 00:30:51,120 --> 00:30:54,280 Speaker 1: spending less debate. The the easiest way to visualize this 689 00:30:54,680 --> 00:30:58,280 Speaker 1: is by widening the gap and the gap between what 690 00:30:58,360 --> 00:31:00,840 Speaker 1: we bring in and what goes out your month. That 691 00:31:00,880 --> 00:31:03,920 Speaker 1: gap is your savings rate. And by focusing on the 692 00:31:04,000 --> 00:31:07,320 Speaker 1: lever of earning more and spending less, we'll be able 693 00:31:07,320 --> 00:31:09,840 Speaker 1: to develop a larger gap and we'll be able to 694 00:31:09,840 --> 00:31:12,800 Speaker 1: see the greatest return with the least amount of fatigue. Yeah, 695 00:31:12,920 --> 00:31:16,080 Speaker 1: and then we're we're holding the abundance and scarcity mindsets, 696 00:31:16,120 --> 00:31:19,120 Speaker 1: and like the proper tension, we're not buying in wholeheartedly 697 00:31:19,160 --> 00:31:20,880 Speaker 1: to one or the other and saying no, I can 698 00:31:20,880 --> 00:31:24,040 Speaker 1: always earn more, There's always there's abundance out there, um, 699 00:31:24,040 --> 00:31:27,120 Speaker 1: and I'll always have enough or there's not enough. There's 700 00:31:27,160 --> 00:31:28,720 Speaker 1: never enough, and I have to hoard everything that comes 701 00:31:28,720 --> 00:31:31,360 Speaker 1: into my life. Neither of those are super healthy ways 702 00:31:31,400 --> 00:31:34,480 Speaker 1: to live when it comes to money. So turning both dials, 703 00:31:34,800 --> 00:31:37,160 Speaker 1: the dial of earning more and of spending less in 704 00:31:37,200 --> 00:31:40,520 Speaker 1: moderation is the best fit for most people. Holding both 705 00:31:40,760 --> 00:31:42,920 Speaker 1: in the right esteem is going to breed the best results. 706 00:31:43,280 --> 00:31:45,160 Speaker 1: But it's not always a perfect balance, right, Matt, and 707 00:31:45,280 --> 00:31:47,160 Speaker 1: you talked about this at the beginning of the episode, 708 00:31:47,480 --> 00:31:50,560 Speaker 1: that our personalities do come into play here. So, Yeah, 709 00:31:50,560 --> 00:31:52,960 Speaker 1: what's your take when we're talking about the sales person 710 00:31:53,080 --> 00:31:56,760 Speaker 1: or the entrepreneurial type who does say, hey, I don't know, man, 711 00:31:56,800 --> 00:31:58,800 Speaker 1: the earning more thing is just way way easier for 712 00:31:58,840 --> 00:32:02,120 Speaker 1: me or the stream frugalide who says, give me more tips, 713 00:32:02,200 --> 00:32:04,440 Speaker 1: that's the thing I'm best at. Um, how would you 714 00:32:04,480 --> 00:32:08,080 Speaker 1: suggest people think about the balance given different personality types 715 00:32:08,120 --> 00:32:10,760 Speaker 1: that exist in different tendencies towards towards each side of 716 00:32:10,760 --> 00:32:13,000 Speaker 1: this coin. Yeah, well, we all have different skills, right, 717 00:32:13,040 --> 00:32:15,200 Speaker 1: we all have different talents, and like that's fine, Like 718 00:32:15,240 --> 00:32:18,200 Speaker 1: that that's actually great because that's what makes us individual people. 719 00:32:18,400 --> 00:32:20,840 Speaker 1: Some people have an incredible ability to use their talents 720 00:32:20,880 --> 00:32:24,480 Speaker 1: to generate a fantastic income. That's awesome. So maybe put 721 00:32:24,480 --> 00:32:27,200 Speaker 1: like eighty percent of your efforts there towards earning. But 722 00:32:27,280 --> 00:32:29,280 Speaker 1: don't be one of those people who doesn't touch the 723 00:32:29,320 --> 00:32:32,800 Speaker 1: spending less style at all. You know. That's what leads 724 00:32:32,840 --> 00:32:35,720 Speaker 1: to the stories we read about, uh where high income earners, 725 00:32:35,880 --> 00:32:38,120 Speaker 1: where they're living paycheck to paycheck, where they they feel 726 00:32:38,120 --> 00:32:41,280 Speaker 1: that they can always out earned what it is they're spending. 727 00:32:41,320 --> 00:32:43,720 Speaker 1: We want to make sure that UHH, I don't know, Like, 728 00:32:43,800 --> 00:32:45,680 Speaker 1: you want to focus on the things that you're truly 729 00:32:45,840 --> 00:32:48,760 Speaker 1: are good at, but at the same time, don't only 730 00:32:48,800 --> 00:32:50,239 Speaker 1: focus on that. Like a lot of things in life. 731 00:32:50,280 --> 00:32:51,720 Speaker 1: We want to make sure that we approach that with 732 00:32:51,760 --> 00:32:54,040 Speaker 1: balance and mind. Yeah, I like that if you know 733 00:32:54,160 --> 00:32:57,080 Speaker 1: your own propensity, that you're way more focused in this 734 00:32:57,120 --> 00:32:59,360 Speaker 1: one direction. We'll put eight percent of your efforts there. 735 00:32:59,360 --> 00:33:01,800 Speaker 1: That's a good rule thumb, and then the other towards 736 00:33:01,800 --> 00:33:04,080 Speaker 1: the things you're not naturally good at, because you're gonna 737 00:33:04,080 --> 00:33:07,040 Speaker 1: need to develop some money muscles in that direction, right, 738 00:33:07,040 --> 00:33:09,680 Speaker 1: And I think the same thing if you're a frugal mastermind, 739 00:33:09,800 --> 00:33:12,560 Speaker 1: put your efforts there because you're obviously really good at it, 740 00:33:12,800 --> 00:33:15,440 Speaker 1: but then trying to focus twenty of your efforts towards 741 00:33:15,560 --> 00:33:18,800 Speaker 1: knowing your worth maybe uh to to increase your income 742 00:33:18,880 --> 00:33:21,880 Speaker 1: over time. And I think most people met are gonna 743 00:33:21,920 --> 00:33:24,560 Speaker 1: probably fall somewhere more along the fifty, fifty or sixty 744 00:33:24,920 --> 00:33:27,440 Speaker 1: side of the spectrum, which is great. But it is 745 00:33:27,480 --> 00:33:30,240 Speaker 1: important to know yourself, know your strengths, and play to 746 00:33:30,320 --> 00:33:33,440 Speaker 1: those strengths while also being cognizant that both sides of 747 00:33:33,440 --> 00:33:35,760 Speaker 1: the equation are important, because if we get too far 748 00:33:35,800 --> 00:33:38,960 Speaker 1: to one side to imbalanced, then it really could lead 749 00:33:39,000 --> 00:33:42,240 Speaker 1: to financial hardship for us at some future point in time. 750 00:33:42,560 --> 00:33:44,720 Speaker 1: And we want people to be strong in their finances 751 00:33:44,720 --> 00:33:47,600 Speaker 1: strong in their earnings and strong in how much they're 752 00:33:47,600 --> 00:33:49,200 Speaker 1: able to spend, how much they're able to keep of 753 00:33:49,200 --> 00:33:51,480 Speaker 1: what they bring in. Yeah, and so maybe a little 754 00:33:51,560 --> 00:33:53,880 Speaker 1: awareness exercise for folks to do is like, like you 755 00:33:53,960 --> 00:33:55,560 Speaker 1: might be thinking through this and you're not totally sure 756 00:33:55,640 --> 00:33:57,560 Speaker 1: like what side of the fence you would fall on, 757 00:33:57,960 --> 00:33:59,680 Speaker 1: And I think a good thing to do is maybe 758 00:33:59,720 --> 00:34:02,400 Speaker 1: think through, Like imagine if you got like a big 759 00:34:02,520 --> 00:34:05,920 Speaker 1: medical bill or like like a massive ongoing expense that 760 00:34:05,960 --> 00:34:07,960 Speaker 1: you're going to have to quickly come up with a 761 00:34:08,000 --> 00:34:10,319 Speaker 1: way to pay. Think through how it is that you 762 00:34:10,360 --> 00:34:13,680 Speaker 1: would naturally think to cover that expense still your credit card? 763 00:34:14,200 --> 00:34:17,880 Speaker 1: I would still you m would you think of ways 764 00:34:17,960 --> 00:34:20,600 Speaker 1: to maybe cut expenses from your life or are you 765 00:34:20,920 --> 00:34:23,239 Speaker 1: is your natural inclination to think of ways to earn 766 00:34:23,280 --> 00:34:25,880 Speaker 1: more money. I think it's important to maybe identify whatever 767 00:34:26,200 --> 00:34:29,600 Speaker 1: your default is and certainly to pull that lever. But 768 00:34:29,640 --> 00:34:31,320 Speaker 1: then at the same time, don't forget the rest of 769 00:34:31,360 --> 00:34:33,560 Speaker 1: the equation, you know, like, if your natural inclination is 770 00:34:33,560 --> 00:34:35,560 Speaker 1: to earn more money, well, don't forget there are some 771 00:34:35,600 --> 00:34:37,520 Speaker 1: great ways that you could maybe cut some expenses from 772 00:34:37,520 --> 00:34:40,440 Speaker 1: your life. Or if your natural inclination is to all right, 773 00:34:40,600 --> 00:34:42,319 Speaker 1: we're slashing the budget. We're never gonna go out to 774 00:34:42,320 --> 00:34:44,600 Speaker 1: eat again. You can only cut so much from your life, 775 00:34:44,600 --> 00:34:46,839 Speaker 1: and so instead maybe like kind of broaden your scope 776 00:34:46,840 --> 00:34:48,560 Speaker 1: a little bit, think about ways that you could earn 777 00:34:48,560 --> 00:34:50,239 Speaker 1: more money. This is one of those areas where I 778 00:34:50,239 --> 00:34:52,200 Speaker 1: feel like it's just really important to know yourself. Yeah, 779 00:34:52,239 --> 00:34:54,080 Speaker 1: I would say, um, if I was to run through 780 00:34:54,120 --> 00:34:56,040 Speaker 1: that mental exercise, it would be that we're gonna cut 781 00:34:56,080 --> 00:34:57,640 Speaker 1: and would be that we're gonna stop doing this and 782 00:34:57,680 --> 00:35:00,239 Speaker 1: stop doing that for a while. And so, yeah, I've 783 00:35:00,360 --> 00:35:02,279 Speaker 1: learned that about myself over the years that I am 784 00:35:02,360 --> 00:35:05,880 Speaker 1: naturally more of a frugal person and my brain goes 785 00:35:06,040 --> 00:35:08,799 Speaker 1: less frequently to how can I increase my earnings? And 786 00:35:08,840 --> 00:35:10,960 Speaker 1: so I've had to try to kind of push my 787 00:35:11,000 --> 00:35:12,640 Speaker 1: brain in that direction. I think it's been really good. 788 00:35:12,640 --> 00:35:14,719 Speaker 1: It's been healthy for me because I can tend to 789 00:35:14,719 --> 00:35:17,560 Speaker 1: be one of those more like people where I'm more 790 00:35:17,600 --> 00:35:20,120 Speaker 1: in on the frugal side. Um, and I'd rather be 791 00:35:20,160 --> 00:35:23,040 Speaker 1: somewhere like the spectrum. And I think it's a great 792 00:35:23,080 --> 00:35:25,440 Speaker 1: exercise that can kind of help people see where they 793 00:35:25,480 --> 00:35:27,719 Speaker 1: fall so that they can at least be aware of 794 00:35:27,719 --> 00:35:30,240 Speaker 1: that bias and then they can kind of work towards 795 00:35:30,320 --> 00:35:32,600 Speaker 1: remedying it. That's right, man, Awareness, that's the first step, 796 00:35:32,640 --> 00:35:35,520 Speaker 1: It's true. All right. Let's get back to the beer 797 00:35:35,600 --> 00:35:37,759 Speaker 1: that we had on this episode, Matt. This one is 798 00:35:37,760 --> 00:35:41,880 Speaker 1: called Bad Bunny Pie. Uh. It's uh interesting fruited sour 799 00:35:42,040 --> 00:35:45,680 Speaker 1: by the folks at Tripping Animals Brewing. So yeah, that's 800 00:35:45,680 --> 00:35:47,359 Speaker 1: actually the type of beer. It's written on the can 801 00:35:47,440 --> 00:35:53,320 Speaker 1: interesting fruited sour. So it's literally a sour ale with BlackBerry, cherry, peach, graham, cracker, vanilla, 802 00:35:53,320 --> 00:35:55,359 Speaker 1: and milk sugar. So this, yeah, one of those kitchen 803 00:35:55,360 --> 00:35:57,200 Speaker 1: sinks hours with a lot of stuff. And what were 804 00:35:57,200 --> 00:35:59,440 Speaker 1: your thoughts on this one? Well, yeah, just to clarify, 805 00:35:59,480 --> 00:36:01,640 Speaker 1: it doesn't actually say interesting on the can. That's that's 806 00:36:01,640 --> 00:36:03,319 Speaker 1: the word that you like to throw in there. But 807 00:36:03,320 --> 00:36:04,880 Speaker 1: but I think the reason you did it, like is 808 00:36:04,920 --> 00:36:06,719 Speaker 1: by the way you just described it like kitchen sink 809 00:36:06,800 --> 00:36:08,920 Speaker 1: kind of beer. It's got a lot of different flavors 810 00:36:08,920 --> 00:36:11,799 Speaker 1: going on. But that doesn't mean it wasn't good, right. Uh. 811 00:36:12,000 --> 00:36:13,120 Speaker 1: You know, I feel like as I was drinking, the 812 00:36:13,120 --> 00:36:15,600 Speaker 1: first thing I noticed was the fruit, like right off 813 00:36:15,640 --> 00:36:19,440 Speaker 1: the bat, like cherry, but then peach like peach. It 814 00:36:19,480 --> 00:36:22,040 Speaker 1: made me think of those like the old school peach 815 00:36:22,120 --> 00:36:24,359 Speaker 1: ring candies that you get at like the you know, 816 00:36:24,400 --> 00:36:25,960 Speaker 1: like the candy market kind of thing, you know I'm 817 00:36:25,960 --> 00:36:28,239 Speaker 1: talking about. It's sitting there in the clear plastic. It's 818 00:36:28,239 --> 00:36:30,200 Speaker 1: like hanging from the paper at the top. Is it 819 00:36:30,280 --> 00:36:32,879 Speaker 1: chewy candy. It's covered in sugar. I could not get 820 00:36:32,920 --> 00:36:35,239 Speaker 1: past the peach flavors on this one. But at the 821 00:36:35,239 --> 00:36:37,320 Speaker 1: same time that you're tasting that fruit, there is also 822 00:36:37,640 --> 00:36:40,320 Speaker 1: kind of vanilla lactose kind of like milk sugar flavors 823 00:36:40,360 --> 00:36:42,680 Speaker 1: going on, where it just kind of really made it creamy, 824 00:36:43,000 --> 00:36:44,680 Speaker 1: like it almost kind of reminded me of the milkshake 825 00:36:44,680 --> 00:36:46,800 Speaker 1: a little bit. But yeah, I thought the Graham cracker 826 00:36:46,840 --> 00:36:49,440 Speaker 1: to get added a nice little touch. It just kind 827 00:36:49,440 --> 00:36:51,879 Speaker 1: of like a hint of fall time going on. So yeah, 828 00:36:51,920 --> 00:36:53,480 Speaker 1: I feel like it made it kind of a proper 829 00:36:53,520 --> 00:36:55,960 Speaker 1: sour for the fall, and especially because it's trying to 830 00:36:55,960 --> 00:36:59,160 Speaker 1: conjure up these pie flavors, right, and what's better than 831 00:36:59,200 --> 00:37:02,120 Speaker 1: having like a root pie, uh, you know, during this 832 00:37:02,160 --> 00:37:04,040 Speaker 1: time of year. I'm all about it. So yeah, it 833 00:37:04,080 --> 00:37:05,440 Speaker 1: was all about this beer too. I thought it was 834 00:37:05,680 --> 00:37:09,319 Speaker 1: really interesting, unique, fun and delicious. The fact that it's 835 00:37:09,320 --> 00:37:11,480 Speaker 1: got vanilla, and it actually makes me think of like, uh, 836 00:37:11,920 --> 00:37:13,880 Speaker 1: apple pie or not apple pie, I guess, but like 837 00:37:14,080 --> 00:37:16,359 Speaker 1: cherry pie, peach pie a la mode. You know, it's 838 00:37:16,360 --> 00:37:18,080 Speaker 1: sort of like when the ice cream is melted a 839 00:37:18,080 --> 00:37:19,520 Speaker 1: good bit and it's kind of just like all kind 840 00:37:19,520 --> 00:37:21,960 Speaker 1: of running together feeling there and at that point you 841 00:37:22,040 --> 00:37:25,320 Speaker 1: gotta switch to the spoon. That's what his beer reminded 842 00:37:25,360 --> 00:37:28,399 Speaker 1: me of. Yeah, man, this was dull delicious. All right. Well, 843 00:37:28,400 --> 00:37:31,279 Speaker 1: that's gonna do it for this episode. For folks that 844 00:37:31,400 --> 00:37:34,440 Speaker 1: want show notes for this episode, we'll have those up 845 00:37:34,440 --> 00:37:36,600 Speaker 1: on our website at how to money dot com. And 846 00:37:36,680 --> 00:37:38,360 Speaker 1: so I feel like this is one of these episodes 847 00:37:38,400 --> 00:37:40,880 Speaker 1: that can lend itself to conversation, you know, that this 848 00:37:41,120 --> 00:37:43,200 Speaker 1: is one of these episodes that is addressing sort of 849 00:37:43,239 --> 00:37:45,959 Speaker 1: like the philosophy of money or you know, in this case, 850 00:37:46,000 --> 00:37:47,560 Speaker 1: like how it is that we can save more, Like 851 00:37:47,640 --> 00:37:49,200 Speaker 1: it's you're gonna do one of the two things. You're 852 00:37:49,160 --> 00:37:51,560 Speaker 1: either gonna earn more, you're gonna spend less, or both 853 00:37:52,200 --> 00:37:53,960 Speaker 1: at the same time exactly. And I feel that this 854 00:37:54,040 --> 00:37:55,600 Speaker 1: would be a good episode to maybe let a friend 855 00:37:55,760 --> 00:37:57,960 Speaker 1: know about you know, this is uh an episode. We're 856 00:37:58,200 --> 00:38:00,600 Speaker 1: kind of talking about theory, like the theory of money 857 00:38:00,600 --> 00:38:02,239 Speaker 1: and how it is that we handle our money. So 858 00:38:02,320 --> 00:38:04,640 Speaker 1: let a friend know who might be interested in something 859 00:38:04,680 --> 00:38:07,520 Speaker 1: like this, and hopefully that sparked some conversation between the 860 00:38:07,520 --> 00:38:09,879 Speaker 1: two of you and ultimately leads you both to doing 861 00:38:09,920 --> 00:38:12,279 Speaker 1: smarter things with your money, no doubt. All right, man, 862 00:38:12,320 --> 00:38:15,879 Speaker 1: Well until next time, then, best friends out, Best friends Out.