1 00:00:00,080 --> 00:00:02,960 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:02,960 --> 00:00:06,000 Speaker 1: and today we're discussing pay bumps, cheap o bikes, and 3 00:00:06,080 --> 00:00:26,840 Speaker 1: the best times to travel. That's right, buddy, This is 4 00:00:26,840 --> 00:00:29,760 Speaker 1: our Friday Flight where every Friday we sit down and 5 00:00:29,800 --> 00:00:32,520 Speaker 1: we discussed some the different headlines we came across. This week, 6 00:00:32,600 --> 00:00:35,800 Speaker 1: we have a bunch of different headlines lined up for you, 7 00:00:36,120 --> 00:00:38,160 Speaker 1: our listener. We call them the Friday Flight, by the way, 8 00:00:38,159 --> 00:00:40,479 Speaker 1: not because we like to talk about travel like we 9 00:00:40,520 --> 00:00:42,839 Speaker 1: are going to during this episode, but because when you 10 00:00:42,880 --> 00:00:45,040 Speaker 1: go to a brewery, you can get a flight of beers. 11 00:00:45,040 --> 00:00:47,440 Speaker 1: You get a little sampling of all the different beers 12 00:00:47,440 --> 00:00:49,319 Speaker 1: that they might have. And that's what we're doing with 13 00:00:49,440 --> 00:00:52,200 Speaker 1: these stories. We're bringing you a sampling of the news 14 00:00:52,520 --> 00:00:55,240 Speaker 1: and how it pertains to your personal finances. That's right. 15 00:00:55,280 --> 00:00:56,440 Speaker 1: And one thing in the news, I just wanted to 16 00:00:56,440 --> 00:00:58,160 Speaker 1: get to you right off the bat before we even 17 00:00:58,240 --> 00:01:00,560 Speaker 1: really jump into all those stories and all of this 18 00:01:00,600 --> 00:01:03,680 Speaker 1: is a new story. Netflix is bumping their prices and 19 00:01:03,760 --> 00:01:07,080 Speaker 1: so for somewhere between one dollars and two dollars, depending 20 00:01:07,120 --> 00:01:09,400 Speaker 1: on the subscription level you're at. Yeah, yeah, is this 21 00:01:09,480 --> 00:01:12,800 Speaker 1: gonna cause you to cancel your Netflix subscription. Well, I 22 00:01:12,880 --> 00:01:15,640 Speaker 1: think I told you and everybody else. I think over 23 00:01:15,640 --> 00:01:18,600 Speaker 1: a year ago I canceled my Netflix subscription, although I 24 00:01:18,640 --> 00:01:21,680 Speaker 1: do share with my parents, so we kind of swapp 25 00:01:21,680 --> 00:01:23,840 Speaker 1: They're logged into our Disney Plus I'm logged into their Netflix, 26 00:01:24,040 --> 00:01:26,600 Speaker 1: and I guess you scratch my back scratchers, right. Yeah, 27 00:01:26,600 --> 00:01:28,560 Speaker 1: that brings up the question. It seems like those streaming 28 00:01:28,600 --> 00:01:31,720 Speaker 1: services don't have a problem with with that, but with 29 00:01:31,760 --> 00:01:34,760 Speaker 1: sharing a subscription with a family, why they require a 30 00:01:34,800 --> 00:01:37,319 Speaker 1: certain number of screens? You know, there's limits. That's why 31 00:01:37,360 --> 00:01:40,640 Speaker 1: if you have the basic Basic plan, which I appreciate 32 00:01:40,680 --> 00:01:42,760 Speaker 1: that they still have that, it's still really affordable, but 33 00:01:42,760 --> 00:01:45,600 Speaker 1: you can only stream on a single screen. And so 34 00:01:45,680 --> 00:01:48,520 Speaker 1: the fact that the nicer plans allow streaming, you know, 35 00:01:48,640 --> 00:01:51,040 Speaker 1: on two for whatever you know, number of screens at 36 00:01:51,080 --> 00:01:54,040 Speaker 1: the same time, I think they're taking that into accounts 37 00:01:55,200 --> 00:01:57,840 Speaker 1: when they create these different plans. Yes, but I just 38 00:01:57,840 --> 00:01:59,600 Speaker 1: want to say when something like this happens, when you 39 00:01:59,640 --> 00:02:01,080 Speaker 1: see that in the news, when you see when you 40 00:02:01,120 --> 00:02:04,040 Speaker 1: get the email directly from your streaming provider or really 41 00:02:04,120 --> 00:02:07,800 Speaker 1: from from anybody who you have a regular, recurring uh 42 00:02:07,840 --> 00:02:10,760 Speaker 1: subscription plan with it should be caused for you to 43 00:02:10,800 --> 00:02:12,920 Speaker 1: rethink any you know, you might be saying, it's just 44 00:02:13,000 --> 00:02:15,160 Speaker 1: a dollar. You know, it's not that big of a deal. 45 00:02:15,240 --> 00:02:17,480 Speaker 1: It's not that big of a deal. It's and it's not. 46 00:02:17,840 --> 00:02:19,760 Speaker 1: But I think it's it's it is and it's And 47 00:02:19,840 --> 00:02:21,280 Speaker 1: for a lot of people they might say, yeah, it's 48 00:02:21,280 --> 00:02:23,040 Speaker 1: a dollar, I don't care. I'm still going to subscribe 49 00:02:23,080 --> 00:02:25,160 Speaker 1: to Netflix. And that is a totally fine decision. But 50 00:02:25,639 --> 00:02:28,519 Speaker 1: is the perfect chance to just rethink what subscription do 51 00:02:28,520 --> 00:02:30,560 Speaker 1: you have? You might have forgotten you might be paying 52 00:02:30,760 --> 00:02:33,480 Speaker 1: a recurring subscription on a monthly basis and you might 53 00:02:33,520 --> 00:02:36,400 Speaker 1: be getting zero value from it. So reassess, like, where's 54 00:02:36,400 --> 00:02:38,960 Speaker 1: your money going. What subscriptions are you currently signed up for? 55 00:02:39,240 --> 00:02:41,639 Speaker 1: Are they moving the needle? You might realize, you know what, 56 00:02:41,840 --> 00:02:43,960 Speaker 1: I've got Amazon Prime, I don't use it very much. 57 00:02:44,000 --> 00:02:46,640 Speaker 1: I'm gonna ditch that. I'm gonna keep Netflix or vice versa. 58 00:02:46,720 --> 00:02:50,200 Speaker 1: But let this be at least that reminder that you 59 00:02:50,200 --> 00:02:53,160 Speaker 1: should reconsider that you shouldn't just keep doing what you're 60 00:02:53,160 --> 00:02:55,320 Speaker 1: doing if those dollars that are flowing out every month 61 00:02:55,360 --> 00:02:57,680 Speaker 1: aren't necessarily doing the work that you want them to do. 62 00:02:57,840 --> 00:03:00,200 Speaker 1: If they're not bringing you value. So I've got two 63 00:03:00,240 --> 00:03:02,280 Speaker 1: things to add here. First of all, like you said, 64 00:03:02,360 --> 00:03:04,320 Speaker 1: one or two dollars a month, not a huge deal 65 00:03:04,720 --> 00:03:08,040 Speaker 1: for most folks, right. However, it can put us in 66 00:03:08,080 --> 00:03:10,440 Speaker 1: the right frame of mind when it comes to other 67 00:03:10,440 --> 00:03:13,440 Speaker 1: expenses that might be recurring, that might have a larger 68 00:03:13,480 --> 00:03:15,280 Speaker 1: impact on our money. And so I love that it 69 00:03:15,320 --> 00:03:17,760 Speaker 1: can empower us to take on some of those changes 70 00:03:17,800 --> 00:03:20,080 Speaker 1: that we actually truly do need to take on. So 71 00:03:20,120 --> 00:03:22,679 Speaker 1: I like that, uh, and something else that I hope 72 00:03:22,680 --> 00:03:24,360 Speaker 1: this allows us to do. And I've got some stats 73 00:03:24,400 --> 00:03:26,840 Speaker 1: for you because I look this up. Is consider watching 74 00:03:26,880 --> 00:03:30,480 Speaker 1: less TV because back in twenty nineteen, right, so these 75 00:03:30,480 --> 00:03:32,680 Speaker 1: stats are a little bit old, but guess what the 76 00:03:32,720 --> 00:03:35,880 Speaker 1: average Netflix subscriber how many hours were they watching every 77 00:03:35,920 --> 00:03:39,080 Speaker 1: single day back in gosh, I'm gonna guess like two 78 00:03:39,080 --> 00:03:42,600 Speaker 1: hours a day. Dude. That's like, that's amazing. It's perfectly 79 00:03:42,640 --> 00:03:44,680 Speaker 1: on the money I'm getting since COVID that has only 80 00:03:44,720 --> 00:03:46,120 Speaker 1: gone up, even though we don't have those most more 81 00:03:46,120 --> 00:03:48,160 Speaker 1: recent umbertime. Guess it's like three and a half hours. 82 00:03:47,800 --> 00:03:52,720 Speaker 1: So the reported three point two hours every single day. 83 00:03:52,800 --> 00:03:55,200 Speaker 1: And when you do do the math on that, that 84 00:03:55,400 --> 00:03:59,200 Speaker 1: is of our waking hours every single day that folks 85 00:03:59,200 --> 00:04:01,080 Speaker 1: are spending in front of the It's less about the money. 86 00:04:01,080 --> 00:04:04,040 Speaker 1: It's more about the wasted time and hours and exactly. 87 00:04:04,080 --> 00:04:06,000 Speaker 1: And the other thing is too. I mean, you can 88 00:04:06,040 --> 00:04:08,160 Speaker 1: also take this information and spend it the other way 89 00:04:08,200 --> 00:04:11,240 Speaker 1: and say, okay, well, if of my life is spent 90 00:04:11,320 --> 00:04:13,840 Speaker 1: with this product, I am more than willing to pay 91 00:04:13,880 --> 00:04:16,599 Speaker 1: a dollar more a month. I'm getting lots of value exactly, 92 00:04:16,680 --> 00:04:18,800 Speaker 1: Like this is a heck of a deal for those folks. 93 00:04:19,000 --> 00:04:20,599 Speaker 1: But what we're saying is that we want you to 94 00:04:20,640 --> 00:04:23,520 Speaker 1: reconsider that altogether, because truly, I mean, it really does 95 00:04:23,560 --> 00:04:26,359 Speaker 1: look like we're going in the direction of the humans 96 00:04:26,400 --> 00:04:29,640 Speaker 1: and wally that are floating around on there, like floating 97 00:04:29,720 --> 00:04:31,839 Speaker 1: lazy boys basically with screens right in front of them, 98 00:04:31,960 --> 00:04:34,280 Speaker 1: where we constantly have this entertainment. I think we really 99 00:04:34,320 --> 00:04:36,040 Speaker 1: need to be careful with how much time we are 100 00:04:36,080 --> 00:04:38,880 Speaker 1: spending entertaining ourselves. That's all a little p s a 101 00:04:39,000 --> 00:04:41,640 Speaker 1: from how the money amusing ourselves to death? As uh 102 00:04:41,640 --> 00:04:44,560 Speaker 1: what who Neil Postman put it? Oh, I don't know them. Okay, yeah, 103 00:04:44,760 --> 00:04:46,720 Speaker 1: heck of a book. I suggest people read it if 104 00:04:46,760 --> 00:04:49,080 Speaker 1: they want to. Kind of grapple with entertainment culture and 105 00:04:49,080 --> 00:04:51,800 Speaker 1: how much they are exposing theirselves something I'd be, yeah, 106 00:04:51,920 --> 00:04:54,120 Speaker 1: you would like that book. All right, Well, Matt, let's 107 00:04:54,120 --> 00:04:55,520 Speaker 1: get to our Friday flight. Let's get to the quick 108 00:04:55,560 --> 00:04:58,320 Speaker 1: sampling of stories we found interesting this week, and then 109 00:04:58,360 --> 00:05:02,040 Speaker 1: how those stories impact your money, your your bottom line. 110 00:05:02,320 --> 00:05:04,960 Speaker 1: And uh, first story this week that we want people 111 00:05:04,960 --> 00:05:06,320 Speaker 1: to be aware of, and I'm sure most people are 112 00:05:06,360 --> 00:05:08,960 Speaker 1: aware of this at this point, but any individual or 113 00:05:09,000 --> 00:05:12,919 Speaker 1: family can now get at home COVID tests for free, 114 00:05:13,400 --> 00:05:15,600 Speaker 1: and the website to go get those is COVID test 115 00:05:15,680 --> 00:05:18,679 Speaker 1: dot gov. You get up to four tests per family 116 00:05:19,000 --> 00:05:21,680 Speaker 1: for free. And so yeah, these tests should start shipping 117 00:05:21,720 --> 00:05:24,359 Speaker 1: in late January. It sure looks like we're gonna be 118 00:05:24,400 --> 00:05:27,479 Speaker 1: way less worried about COVID by the time those those areas, 119 00:05:27,480 --> 00:05:29,120 Speaker 1: because I think the shipping one, they're not going to 120 00:05:29,160 --> 00:05:32,200 Speaker 1: ship for a week, and then it's gonna take seven 121 00:05:32,200 --> 00:05:34,440 Speaker 1: to twelve days in the in the U. S. Mail 122 00:05:34,760 --> 00:05:36,200 Speaker 1: for them to get to our houses. So let's say 123 00:05:36,240 --> 00:05:38,960 Speaker 1: it's two and a half weeks and the COVID numbers 124 00:05:38,960 --> 00:05:40,680 Speaker 1: are falling off a cliff, which is a great thing. 125 00:05:40,880 --> 00:05:43,880 Speaker 1: That's basically assuming best case scenario that the USPS isn't 126 00:05:43,920 --> 00:05:46,359 Speaker 1: going to run into any hiccups when it comes to 127 00:05:46,640 --> 00:05:50,760 Speaker 1: I mean, can you imagine, like literally the government is injecting, uh, like, 128 00:05:50,800 --> 00:05:52,760 Speaker 1: I don't know, millions and millions of new pieces of 129 00:05:52,800 --> 00:05:55,200 Speaker 1: mail in addition to tax season and everything, you know, 130 00:05:55,240 --> 00:05:56,920 Speaker 1: just all the normal things that normally happened this time 131 00:05:56,920 --> 00:05:59,279 Speaker 1: of year. That's right. Yeah, So, but it's important to 132 00:05:59,320 --> 00:06:00,719 Speaker 1: know that you can get is for freaks. I know 133 00:06:00,760 --> 00:06:02,520 Speaker 1: that there's been a shortage and prices have been going 134 00:06:02,600 --> 00:06:05,360 Speaker 1: up on those at home tests, So COVID test dot 135 00:06:05,320 --> 00:06:07,640 Speaker 1: gov is a place to go get those. And certainly, 136 00:06:07,640 --> 00:06:09,760 Speaker 1: I feel like just the threat, the fact that people 137 00:06:09,880 --> 00:06:11,960 Speaker 1: know that these are on the way, that they're in 138 00:06:12,000 --> 00:06:14,919 Speaker 1: the pipeline, that the folks who have been price gouging 139 00:06:15,120 --> 00:06:17,559 Speaker 1: and where we have seen prices, you know, sky high, 140 00:06:17,800 --> 00:06:20,159 Speaker 1: it's gonna cause them to come back down to earth 141 00:06:20,200 --> 00:06:22,840 Speaker 1: rethink what they are going to be willing to sell 142 00:06:22,880 --> 00:06:25,000 Speaker 1: their tests for. Yeah, exactly. And on top of that, 143 00:06:25,080 --> 00:06:27,880 Speaker 1: if if you have health insurance, your insurance company is 144 00:06:27,960 --> 00:06:31,120 Speaker 1: now required to pay for COVID testing on your behalf. 145 00:06:31,360 --> 00:06:33,719 Speaker 1: Insurance companies are they're kind of scrambling to get a 146 00:06:33,760 --> 00:06:36,320 Speaker 1: system together for this, and you might need to file 147 00:06:36,320 --> 00:06:38,359 Speaker 1: a claim for reimbursement of a COVID test that you 148 00:06:38,400 --> 00:06:41,560 Speaker 1: purchase in store or online. But yeah, that reimbursement is 149 00:06:41,560 --> 00:06:44,320 Speaker 1: limited to a certain number of tests per person on 150 00:06:44,360 --> 00:06:47,080 Speaker 1: that insurance plan per month, and it's gonna pay twelve 151 00:06:47,120 --> 00:06:49,760 Speaker 1: dollars per test. I know some of those testament costing more, 152 00:06:49,760 --> 00:06:51,680 Speaker 1: so you're not gonna get reimbursed for the whole thing. 153 00:06:51,680 --> 00:06:54,080 Speaker 1: But it's important to know that, you know, COVID testing 154 00:06:54,200 --> 00:06:57,080 Speaker 1: is now going to be pretty much free for for 155 00:06:57,120 --> 00:06:59,080 Speaker 1: anybody who needs them. Yeah, and I checked out the 156 00:06:59,279 --> 00:07:01,440 Speaker 1: site to the COVID tests dot gov and the site 157 00:07:01,440 --> 00:07:04,600 Speaker 1: actually works. I used to too. Or yeah, I think 158 00:07:04,640 --> 00:07:07,760 Speaker 1: sometimes when it comes to government sites we would expect 159 00:07:07,880 --> 00:07:10,880 Speaker 1: like the Treasury dot gov or Treasury direct dot com 160 00:07:11,160 --> 00:07:13,040 Speaker 1: or whatever. We've had so many listeners reach out and 161 00:07:13,040 --> 00:07:15,520 Speaker 1: they're like, you guys were totally right, that website is 162 00:07:16,960 --> 00:07:19,120 Speaker 1: and it's true. It looks like a site, I mean 163 00:07:19,280 --> 00:07:21,400 Speaker 1: from fifteen years ago, Like it looks like something that 164 00:07:21,400 --> 00:07:23,600 Speaker 1: you'd pull up in the way back machine where you're 165 00:07:23,600 --> 00:07:25,600 Speaker 1: going back in time and looking at a website that 166 00:07:25,640 --> 00:07:28,880 Speaker 1: no longer exists except for no, this site is actually 167 00:07:28,920 --> 00:07:30,520 Speaker 1: still function I think of that every time we pay 168 00:07:30,560 --> 00:07:36,280 Speaker 1: our quarterly taxes and it's terrible. Man. Let's talk about investing, 169 00:07:36,320 --> 00:07:40,640 Speaker 1: specifically investing towards your retirement. A new study reveals that 170 00:07:40,880 --> 00:07:44,320 Speaker 1: RATH four O win K options are now more widely 171 00:07:44,360 --> 00:07:48,800 Speaker 1: available for employees. This is excellent news because almost nine 172 00:07:48,800 --> 00:07:51,400 Speaker 1: intent employers now offer the ROTH four O w K 173 00:07:51,520 --> 00:07:54,120 Speaker 1: option in addition to a traditional four win K. This 174 00:07:54,160 --> 00:07:58,000 Speaker 1: is according to the Plan Sponsor Council of America. That 175 00:07:58,040 --> 00:08:01,360 Speaker 1: option was available to less than about half of folks 176 00:08:01,640 --> 00:08:04,800 Speaker 1: in workplace retirement accounts just ten years ago. So this 177 00:08:04,920 --> 00:08:08,200 Speaker 1: is a really healthy uptick that we're seeing. But you 178 00:08:08,200 --> 00:08:10,160 Speaker 1: know why is it that RATH options are so great? Well, 179 00:08:10,240 --> 00:08:12,080 Speaker 1: because you get to pay taxes on the money you 180 00:08:12,080 --> 00:08:14,840 Speaker 1: invest now, not later. And that sounds terrible, like why 181 00:08:14,840 --> 00:08:16,600 Speaker 1: would I pay tax taxes now? Are we trying to 182 00:08:16,640 --> 00:08:20,720 Speaker 1: avoid tax? But it's not actually a bad thing because 183 00:08:20,720 --> 00:08:23,040 Speaker 1: it gives you the opportunity to grow those dollars tax 184 00:08:23,080 --> 00:08:26,480 Speaker 1: free and spend them tax free also in retirement. So 185 00:08:26,520 --> 00:08:28,160 Speaker 1: a good thing to do earlier in this new year 186 00:08:28,480 --> 00:08:31,640 Speaker 1: is to contact HR there at your company. Talk to 187 00:08:31,880 --> 00:08:35,160 Speaker 1: your benefits manager and see if your employer offers that 188 00:08:35,240 --> 00:08:37,960 Speaker 1: RATH option now, because that might be something that's available 189 00:08:37,960 --> 00:08:40,880 Speaker 1: to you that they haven't even really made widely known. 190 00:08:41,200 --> 00:08:42,720 Speaker 1: And if so, if you do have that as an option, 191 00:08:42,720 --> 00:08:45,080 Speaker 1: you'll likely want to make the switch, especially if you 192 00:08:45,120 --> 00:08:48,080 Speaker 1: are early in your career. Uh, and maybe you foresee 193 00:08:48,080 --> 00:08:50,320 Speaker 1: it being likely that you're gonna earn a lot more 194 00:08:50,360 --> 00:08:52,520 Speaker 1: in the future. If that's the case, then you want 195 00:08:52,559 --> 00:08:54,959 Speaker 1: to switch to a WRATH now. Yeah. I love seeing 196 00:08:54,960 --> 00:08:58,079 Speaker 1: these accounts become more widely available, and I think most 197 00:08:58,120 --> 00:09:01,160 Speaker 1: people should be taking advantage of that reality because when 198 00:09:01,200 --> 00:09:03,439 Speaker 1: I was in the corporate world, sadly, I didn't get 199 00:09:03,440 --> 00:09:06,200 Speaker 1: the ROTH option until literally my last year there, and 200 00:09:06,360 --> 00:09:08,360 Speaker 1: I would have been taking advantage of it the whole time. 201 00:09:08,559 --> 00:09:11,920 Speaker 1: Plus by then, you're making like five more than that year, 202 00:09:12,080 --> 00:09:15,080 Speaker 1: So you want to take that text break now? Yeah, Well, 203 00:09:15,160 --> 00:09:16,720 Speaker 1: let's keep talking about four o one case for just 204 00:09:16,760 --> 00:09:19,000 Speaker 1: a second match, because a lot of our listeners have 205 00:09:19,080 --> 00:09:22,120 Speaker 1: probably never heard the term four oh one k leakage 206 00:09:22,400 --> 00:09:24,280 Speaker 1: and it sounds a little gross. It's kind of like 207 00:09:24,320 --> 00:09:25,959 Speaker 1: something that maybe we shouldn't talk about, but it was 208 00:09:26,040 --> 00:09:28,280 Speaker 1: like something that that has to do with a lestra 209 00:09:29,040 --> 00:09:34,240 Speaker 1: chips in the nineties. But we this is a term 210 00:09:34,240 --> 00:09:36,400 Speaker 1: we all need to come to grips with because it's 211 00:09:36,400 --> 00:09:39,080 Speaker 1: the subject of a new report from the Joint Committee 212 00:09:39,080 --> 00:09:42,600 Speaker 1: on Taxation, And basically, it's when money you've been investing 213 00:09:42,640 --> 00:09:45,920 Speaker 1: for your future leaks out earlier than it should because 214 00:09:45,920 --> 00:09:50,160 Speaker 1: you've taken cash out and when for everybody exactly, it's 215 00:09:50,200 --> 00:09:53,679 Speaker 1: it's disgusting, I'll stop, but yeah, if you've done a 216 00:09:53,679 --> 00:09:56,079 Speaker 1: cash out where you're changing jobs, or if you failed 217 00:09:56,120 --> 00:09:58,440 Speaker 1: to pay repay a hardship loan that you took out, 218 00:09:58,840 --> 00:10:02,760 Speaker 1: that leakage result it's in tax and penalties, which only 219 00:10:02,880 --> 00:10:05,120 Speaker 1: compound the difficulties for a lot of folks who are 220 00:10:05,120 --> 00:10:08,120 Speaker 1: opting to go that route. And some estimates, say Matt 221 00:10:08,200 --> 00:10:10,600 Speaker 1: that accounts that have experienced some of this leakage where 222 00:10:10,600 --> 00:10:12,440 Speaker 1: people have taken money out when they shouldn't have from 223 00:10:12,480 --> 00:10:16,400 Speaker 1: their retirement account on average, they have less money at 224 00:10:16,440 --> 00:10:18,720 Speaker 1: the age of sixty once they hit that those retirement 225 00:10:18,760 --> 00:10:21,320 Speaker 1: years than they otherwise would have had. They're pulling money 226 00:10:21,320 --> 00:10:25,040 Speaker 1: out prematurely different exactly, they're paying taxes, they're paying penalties, 227 00:10:25,280 --> 00:10:28,040 Speaker 1: and then they also don't have the money growing for 228 00:10:28,080 --> 00:10:30,640 Speaker 1: their future. So seeing that report, to me, it was 229 00:10:30,679 --> 00:10:34,640 Speaker 1: another good reminder that we should encourage our listeners to 230 00:10:34,640 --> 00:10:38,160 Speaker 1: to think about those tax advantaged accounts as untouchable, to 231 00:10:38,160 --> 00:10:40,480 Speaker 1: to not take any money, to not let that leakage occur. 232 00:10:40,760 --> 00:10:43,520 Speaker 1: Especially when changing jobs. It's easier for people to be like, yeah, 233 00:10:43,559 --> 00:10:45,480 Speaker 1: just just cash me out that money, send me a check, 234 00:10:45,679 --> 00:10:48,680 Speaker 1: and that is the worst decision you can make. So liquidated, yes, 235 00:10:48,800 --> 00:10:51,160 Speaker 1: they'll do that. E funds, that's where you should have 236 00:10:51,200 --> 00:10:53,320 Speaker 1: your money that you're gonna need to touch. Don't allow 237 00:10:53,320 --> 00:10:55,000 Speaker 1: the thought to even cross your mind that you're gonna 238 00:10:55,000 --> 00:10:56,439 Speaker 1: pull money out of the four own k. Yeah. Yeah. 239 00:10:56,559 --> 00:10:59,240 Speaker 1: The emergency fund basically sits there like it's like the 240 00:10:59,280 --> 00:11:01,600 Speaker 1: offensive line on a football team, right there there to 241 00:11:01,640 --> 00:11:04,440 Speaker 1: protect the quarterback because if the quarterback gets taken down, 242 00:11:04,559 --> 00:11:08,240 Speaker 1: well that uh prohibits your ability to score points. And 243 00:11:08,320 --> 00:11:11,120 Speaker 1: so in this case, the emergency fund is the offensive line. 244 00:11:11,120 --> 00:11:14,280 Speaker 1: Your retirement investments are the quarterback, and you want that 245 00:11:14,360 --> 00:11:17,040 Speaker 1: quarterback to be able to do what he does best 246 00:11:17,320 --> 00:11:20,959 Speaker 1: into old age, like Tom Brady, right, for many many years, 247 00:11:21,440 --> 00:11:23,840 Speaker 1: for many decades. All right, Well, a lot of folks 248 00:11:23,960 --> 00:11:25,880 Speaker 1: want to make more money, right, Like who doesn't. Well, 249 00:11:25,920 --> 00:11:27,840 Speaker 1: the best way that you can go about doing that 250 00:11:28,040 --> 00:11:30,680 Speaker 1: is by getting a new job. We've been giving that 251 00:11:30,720 --> 00:11:32,480 Speaker 1: advice here now for a long time on the show. 252 00:11:32,720 --> 00:11:35,160 Speaker 1: But the reason we keep giving this advice is because 253 00:11:35,160 --> 00:11:37,400 Speaker 1: it's truly the best way to get a pay raise. 254 00:11:37,800 --> 00:11:40,800 Speaker 1: New data from the financial services industry in London. They 255 00:11:40,840 --> 00:11:44,120 Speaker 1: show that those who change jobs that they saw a 256 00:11:44,200 --> 00:11:48,600 Speaker 1: nineteen percent earnings bump. That's a significant raise and pay 257 00:11:49,120 --> 00:11:51,880 Speaker 1: Other data shows that the average salary increase when changing 258 00:11:51,960 --> 00:11:55,120 Speaker 1: jobs is just shy of fift And so you know, 259 00:11:55,240 --> 00:11:57,160 Speaker 1: this doesn't mean that you should quit a job that 260 00:11:57,240 --> 00:12:01,000 Speaker 1: you absolutely love right away or you know, tomorrow, but 261 00:12:01,080 --> 00:12:03,920 Speaker 1: this is an important piece of information as you decide 262 00:12:04,040 --> 00:12:06,400 Speaker 1: what it is that you want to pursue, because you know, 263 00:12:06,400 --> 00:12:08,320 Speaker 1: if you stay put, that might make the most sense 264 00:12:08,360 --> 00:12:11,640 Speaker 1: for you from like a lifestyle standpoint, and maybe it's 265 00:12:11,679 --> 00:12:14,080 Speaker 1: the best thing for your family. But just know that 266 00:12:14,120 --> 00:12:15,520 Speaker 1: if you do want to get paid more, if that 267 00:12:15,559 --> 00:12:17,480 Speaker 1: is a priority for you, then the quickest way to 268 00:12:17,520 --> 00:12:20,560 Speaker 1: do so is to start applying for other positions. We've 269 00:12:20,600 --> 00:12:23,360 Speaker 1: all seen the uptick in working from home as well, 270 00:12:23,360 --> 00:12:26,400 Speaker 1: and I think as folks have the ability to quit 271 00:12:26,400 --> 00:12:28,840 Speaker 1: a job and start a new job even more easily. 272 00:12:28,880 --> 00:12:30,640 Speaker 1: This is a trend that we're gonna continue to see 273 00:12:30,960 --> 00:12:32,839 Speaker 1: increase as well. Yeah, and I haven't talked about this 274 00:12:32,840 --> 00:12:35,199 Speaker 1: a whole lot on the show. I think actually this 275 00:12:35,240 --> 00:12:37,240 Speaker 1: week when we did my money origin story, I talked 276 00:12:37,240 --> 00:12:39,040 Speaker 1: about my decision to work in radio and how part 277 00:12:39,040 --> 00:12:40,800 Speaker 1: of it was based on the fact that you could 278 00:12:40,800 --> 00:12:42,720 Speaker 1: wear whatever you wanted to wear, flip flops and jeans 279 00:12:42,760 --> 00:12:44,880 Speaker 1: and shorts and stuff like that, which is just a 280 00:12:44,960 --> 00:12:47,160 Speaker 1: terrible reason, but you know, it resonated with me. I 281 00:12:47,160 --> 00:12:48,800 Speaker 1: wanted to culturally, I want to be able to wear 282 00:12:48,840 --> 00:12:51,800 Speaker 1: what I wanted. But another part of that was I 283 00:12:51,880 --> 00:12:55,680 Speaker 1: was okay making less money and doing something I loved, 284 00:12:56,000 --> 00:12:58,480 Speaker 1: and that was a trade off that I had to make. 285 00:12:58,960 --> 00:13:01,319 Speaker 1: And and I think for people it's worth it. They say, 286 00:13:01,400 --> 00:13:03,280 Speaker 1: you know what, I could jump ship and go get 287 00:13:03,320 --> 00:13:05,080 Speaker 1: paid more, but it's not worth it. I love my job, 288 00:13:05,160 --> 00:13:08,320 Speaker 1: I love my coworkers. Though it's located right around the 289 00:13:08,320 --> 00:13:11,280 Speaker 1: corner from where I live, lifestyle wise, it's perfect and 290 00:13:11,840 --> 00:13:13,559 Speaker 1: that you can't put a price tag on that. And 291 00:13:13,600 --> 00:13:15,480 Speaker 1: so I think for some people they should be taking 292 00:13:15,480 --> 00:13:17,480 Speaker 1: advantage of this job market. They should go get paid 293 00:13:17,480 --> 00:13:19,480 Speaker 1: more because maybe they don't love their job or it 294 00:13:19,520 --> 00:13:21,880 Speaker 1: doesn't afford them some of those lifestyle benefits. But for 295 00:13:21,920 --> 00:13:24,840 Speaker 1: a lot of people, it does make sense, uh to 296 00:13:24,960 --> 00:13:27,440 Speaker 1: jump ship, or to at least start shopping the market 297 00:13:27,800 --> 00:13:30,960 Speaker 1: and seeing what's available exactly. Well, that's the thing. I think, 298 00:13:31,000 --> 00:13:33,000 Speaker 1: just kind of getting getting out there and testing the 299 00:13:33,000 --> 00:13:34,840 Speaker 1: waters a little bit is a good way to see 300 00:13:35,160 --> 00:13:36,720 Speaker 1: is it worth it? Because you said it's like, you know, 301 00:13:36,760 --> 00:13:39,640 Speaker 1: there are certain things that can't be quantifiable, like there's 302 00:13:39,640 --> 00:13:42,199 Speaker 1: certain things that money can buy, until you're like, oh, 303 00:13:42,200 --> 00:13:45,640 Speaker 1: wait a minute, a forty dollar pay bump. I thought 304 00:13:45,679 --> 00:13:48,079 Speaker 1: that this was a non negotiable for me, but turns 305 00:13:48,080 --> 00:13:50,400 Speaker 1: out I am, in fact willing to drive ten more 306 00:13:50,440 --> 00:13:54,480 Speaker 1: minutes every day during my commute if this means increase 307 00:13:54,520 --> 00:13:56,200 Speaker 1: in my pay, because now I can get a jet ski, 308 00:13:56,360 --> 00:13:59,680 Speaker 1: and jet skis are happiness. Right. It's almost as if 309 00:13:59,720 --> 00:14:02,079 Speaker 1: you were watching low Keily and you don't even know 310 00:14:02,120 --> 00:14:05,800 Speaker 1: what I'm talking about. I don't to watch the superhero stuff, well, 311 00:14:06,000 --> 00:14:07,760 Speaker 1: and you know what we're talking about. We're saying that 312 00:14:08,080 --> 00:14:11,320 Speaker 1: hey goes beyond salary. Right. There are these intangible things, 313 00:14:11,440 --> 00:14:14,800 Speaker 1: but then there are other tangible parts of your salary, 314 00:14:14,840 --> 00:14:17,800 Speaker 1: your benefits package that are important and they're worth considering too, 315 00:14:18,080 --> 00:14:21,080 Speaker 1: and free snacks. Free snacks is one of them, very tangible. 316 00:14:21,160 --> 00:14:22,400 Speaker 1: We were just talking about the four o one k 317 00:14:22,720 --> 00:14:24,800 Speaker 1: or and do you offer a RATH option? What's the 318 00:14:24,800 --> 00:14:27,920 Speaker 1: match level on on the on that package and other 319 00:14:28,000 --> 00:14:30,600 Speaker 1: financial incentives. Yes, And it turns out that many employers 320 00:14:30,640 --> 00:14:33,400 Speaker 1: are are stepping up their game in that department right now. 321 00:14:33,600 --> 00:14:36,880 Speaker 1: The Wall Street Journal actually reports that six of mid 322 00:14:36,960 --> 00:14:39,720 Speaker 1: and large sized companies are planning to raise the percentage 323 00:14:39,760 --> 00:14:44,200 Speaker 1: they contribute to their employees retirement accounts in two So 324 00:14:44,320 --> 00:14:47,200 Speaker 1: let's say you were getting a three percent match last year, Well, 325 00:14:47,320 --> 00:14:49,960 Speaker 1: your company might start offering a five percent match really 326 00:14:49,960 --> 00:14:52,400 Speaker 1: really soon. And that is kind of one of those 327 00:14:52,400 --> 00:14:55,920 Speaker 1: things that employers need to do to retain top talent. 328 00:14:56,480 --> 00:14:59,320 Speaker 1: Other employers are ditching investing period. So let's say you 329 00:14:59,400 --> 00:15:01,400 Speaker 1: just got high. They're saying, you know what, you don't 330 00:15:01,400 --> 00:15:03,720 Speaker 1: have to wait two years before you can participate in 331 00:15:03,880 --> 00:15:06,040 Speaker 1: the four oh one k and and and getting the match. 332 00:15:06,360 --> 00:15:09,080 Speaker 1: You can start doing that right away, which I think 333 00:15:09,120 --> 00:15:10,960 Speaker 1: is awesome. And if you're hunting for a new job, 334 00:15:11,200 --> 00:15:13,720 Speaker 1: that's something you wanna be on the lookout for. Just 335 00:15:13,760 --> 00:15:16,800 Speaker 1: remember to do research into company benefits and four oh 336 00:15:16,840 --> 00:15:20,120 Speaker 1: one K matches in particular, what you know, what the 337 00:15:20,120 --> 00:15:22,760 Speaker 1: the health insurance looks like and how much what what 338 00:15:22,880 --> 00:15:26,160 Speaker 1: percentage is the company paying of your monthly premium like 339 00:15:26,240 --> 00:15:28,560 Speaker 1: those those are important questions because it's not just the 340 00:15:28,560 --> 00:15:31,080 Speaker 1: baseline salary that matters. It's it's all those other things too. 341 00:15:31,280 --> 00:15:33,360 Speaker 1: That's right. We have to take a holistic view when 342 00:15:33,360 --> 00:15:35,680 Speaker 1: it comes to UH figuring out what we're willing to 343 00:15:35,680 --> 00:15:38,560 Speaker 1: be compensated as we're looking at new jobs. Joey, We've 344 00:15:38,600 --> 00:15:41,240 Speaker 1: got several other stories we're gonna get to right after 345 00:15:41,280 --> 00:15:43,200 Speaker 1: the break, including we got that story about bikes. We're 346 00:15:43,200 --> 00:15:45,320 Speaker 1: gonna talk about some insurance rates as well as the 347 00:15:45,360 --> 00:15:47,600 Speaker 1: best times to travel. We're gonna get to all of 348 00:15:47,640 --> 00:15:59,240 Speaker 1: that right after this. All right, we are back, And 349 00:15:59,280 --> 00:16:01,920 Speaker 1: of course on every Friday fight we like to share 350 00:16:01,960 --> 00:16:05,360 Speaker 1: a ludicrous headline of the week, and this one comes 351 00:16:05,440 --> 00:16:09,320 Speaker 1: from Vice and it's titled Mechanics ask Walmart and major 352 00:16:09,400 --> 00:16:14,160 Speaker 1: bike manufacturers to stop making and selling built to fail bikes. 353 00:16:14,200 --> 00:16:16,640 Speaker 1: Built to fail sounds like too big to fail, like 354 00:16:16,680 --> 00:16:20,160 Speaker 1: a gag brank bike. Yes, yes, it does. It's it's 355 00:16:20,200 --> 00:16:22,720 Speaker 1: like literally something that is set up for you to 356 00:16:22,760 --> 00:16:26,160 Speaker 1: break not too long after you put it together. And Matt, 357 00:16:26,200 --> 00:16:27,760 Speaker 1: there were a lot of folks who hadn't ridden their 358 00:16:27,760 --> 00:16:30,480 Speaker 1: bike in years. They found themselves on two wheels. During 359 00:16:30,520 --> 00:16:32,600 Speaker 1: the pandemic, we talked a lot about bike. Bike sales 360 00:16:32,680 --> 00:16:36,520 Speaker 1: were soaring. E bike sales also soaring. And I know 361 00:16:36,600 --> 00:16:38,280 Speaker 1: that I saw a lot of our neighbors on bikes 362 00:16:38,280 --> 00:16:40,200 Speaker 1: that I've never seen on bikes before. I don't know, 363 00:16:40,200 --> 00:16:43,200 Speaker 1: you knew how to bike exactly, And they're like, well, 364 00:16:43,200 --> 00:16:46,520 Speaker 1: it's like riding a bike, you you remember, Yeah, And 365 00:16:46,560 --> 00:16:48,280 Speaker 1: so it was just it was fun like it became 366 00:16:48,600 --> 00:16:52,840 Speaker 1: kind of this more community activity, families biking together, which 367 00:16:52,880 --> 00:16:55,240 Speaker 1: was great. This is certainly one of the silver linings 368 00:16:55,280 --> 00:16:58,920 Speaker 1: of the pandemic. But not every bike is created equal. 369 00:16:59,320 --> 00:17:02,400 Speaker 1: And this article from bice it detailed the trouble that 370 00:17:02,440 --> 00:17:06,000 Speaker 1: bike mechanics are having because people are riding these junkie, 371 00:17:06,359 --> 00:17:09,800 Speaker 1: super cheap od bikes that are just experiencing a ridiculous 372 00:17:09,800 --> 00:17:12,720 Speaker 1: amount of issues, like mere hours after being put together. 373 00:17:13,320 --> 00:17:15,360 Speaker 1: One of the mechanics in the article said that these 374 00:17:15,440 --> 00:17:19,600 Speaker 1: quote unquote budget bikes are built to fail. It's it's 375 00:17:19,640 --> 00:17:22,080 Speaker 1: not just mechanics are who are annoyed though, it's the 376 00:17:22,080 --> 00:17:25,360 Speaker 1: people who buy these bikes, because pretty quickly they've dropped 377 00:17:25,800 --> 00:17:29,119 Speaker 1: eight hundred fifty dollars on a bike that no longer 378 00:17:29,200 --> 00:17:32,440 Speaker 1: works or that has somehow broken or failed. And yeah, 379 00:17:32,440 --> 00:17:34,400 Speaker 1: if you're a consumer's got to cough up the money 380 00:17:34,400 --> 00:17:37,280 Speaker 1: to replace it. That stinks. So Matt and I we 381 00:17:37,359 --> 00:17:39,560 Speaker 1: like saving money, but you're not saving money if you 382 00:17:39,560 --> 00:17:41,200 Speaker 1: opt for the cheapest bike in the store. And I 383 00:17:41,280 --> 00:17:45,080 Speaker 1: think this article really drove home the reality that some 384 00:17:45,200 --> 00:17:48,919 Speaker 1: manufacturers are making bikes that are not worth mine, Like 385 00:17:48,960 --> 00:17:52,240 Speaker 1: they're so cheap that they're awful and you should avoid 386 00:17:52,240 --> 00:17:54,359 Speaker 1: them completely, that you would be better off having not 387 00:17:54,440 --> 00:17:57,360 Speaker 1: gotten that bike again, with using your two feet instead 388 00:17:57,359 --> 00:17:59,200 Speaker 1: of getting on two wheels. Like your two feet work 389 00:17:59,359 --> 00:18:01,600 Speaker 1: really well, that bike not so much, you know, And 390 00:18:01,720 --> 00:18:03,840 Speaker 1: like along those lines, like riding a cheap bike is 391 00:18:03,880 --> 00:18:06,359 Speaker 1: a terrible experience as well, because if you know, you 392 00:18:06,560 --> 00:18:09,359 Speaker 1: for something that's lighter, maybe something that has better components, 393 00:18:09,560 --> 00:18:12,320 Speaker 1: you're you know, much more likely to enjoy riding that bike, 394 00:18:12,320 --> 00:18:15,400 Speaker 1: which means you'll ride it more often. That's what we 395 00:18:15,480 --> 00:18:18,119 Speaker 1: want to see and so in this case, don't cheap out. 396 00:18:18,200 --> 00:18:19,720 Speaker 1: We want you to be frugal, but don't be cheap 397 00:18:19,960 --> 00:18:22,120 Speaker 1: and that means you're gonna have to do some research 398 00:18:22,520 --> 00:18:24,560 Speaker 1: and specifically will point you in the right direction. Bikes 399 00:18:24,560 --> 00:18:27,280 Speaker 1: Direct is one of our favorite sites for finding a 400 00:18:27,320 --> 00:18:29,359 Speaker 1: good bike, a good solid bike that doesn't cost an 401 00:18:29,440 --> 00:18:31,439 Speaker 1: arm and a leg. And you can also, you know, 402 00:18:31,480 --> 00:18:34,600 Speaker 1: you can still find great used bikes on Craigslist or Facebook. 403 00:18:34,800 --> 00:18:37,280 Speaker 1: If you're not sure you know the particular brand is 404 00:18:37,320 --> 00:18:39,520 Speaker 1: to look out for. Ask a friend who is a 405 00:18:39,560 --> 00:18:41,440 Speaker 1: little bit more into bikes. I don't know how many 406 00:18:41,440 --> 00:18:44,320 Speaker 1: people have sent me links where they're like, hey, I'm 407 00:18:44,320 --> 00:18:46,240 Speaker 1: thinking about buying buying this bike. Is this a good 408 00:18:46,359 --> 00:18:48,640 Speaker 1: brand or does this look like a good model? And 409 00:18:48,920 --> 00:18:52,199 Speaker 1: I've always been able to provide some feedback. But sometimes 410 00:18:52,240 --> 00:18:54,280 Speaker 1: that's the best way to afford a bike, getting a 411 00:18:54,359 --> 00:18:57,080 Speaker 1: used bike that isn't you know, one that's brand new, 412 00:18:57,280 --> 00:19:00,280 Speaker 1: but also bottom of the barrel quality wise, And so 413 00:19:00,400 --> 00:19:03,359 Speaker 1: not only is buying a super cheap bike bad for 414 00:19:03,400 --> 00:19:05,919 Speaker 1: your wallet, not only is it a bad experience, but 415 00:19:06,000 --> 00:19:09,000 Speaker 1: sometimes getting a super cheap bike is just downright dangerous. 416 00:19:09,240 --> 00:19:11,119 Speaker 1: Our local bike shop they even posted I think it 417 00:19:11,160 --> 00:19:13,320 Speaker 1: was last year. How there are certain brands that they 418 00:19:13,320 --> 00:19:16,280 Speaker 1: are no longer willing to work on because they got 419 00:19:16,359 --> 00:19:20,000 Speaker 1: a series of bikes and by certain manufacturers, and they're 420 00:19:20,040 --> 00:19:22,439 Speaker 1: made so poorly, and they posted pictures of the wells 421 00:19:22,520 --> 00:19:27,080 Speaker 1: that weren't complete and just design errors, not because the user, 422 00:19:27,200 --> 00:19:29,560 Speaker 1: not because the person put it together incorrectly, but it 423 00:19:29,640 --> 00:19:32,760 Speaker 1: was just manufactured that poorly that they refused to work 424 00:19:32,800 --> 00:19:34,600 Speaker 1: on it because they didn't want to be held liable 425 00:19:34,640 --> 00:19:37,159 Speaker 1: for when this person, you know, when the bike literally failed, 426 00:19:37,280 --> 00:19:39,440 Speaker 1: when the brakes don't work and they crashed into something. Yeah, 427 00:19:39,520 --> 00:19:42,119 Speaker 1: it makes me think of Chinese scooters and how you 428 00:19:42,160 --> 00:19:45,440 Speaker 1: can buy a Chinese made scooter for five or six dollars, 429 00:19:45,800 --> 00:19:47,879 Speaker 1: like the scooters like a little moped, Yeah, exactly, like 430 00:19:47,960 --> 00:19:52,320 Speaker 1: something that will go thirty. But scooter shot nine ccs 431 00:19:52,320 --> 00:19:55,320 Speaker 1: are less right, right exactly then you don't but maybe exactly, 432 00:19:55,320 --> 00:19:57,760 Speaker 1: but which makes it cheaper, which makes it exciting for 433 00:19:57,800 --> 00:20:00,000 Speaker 1: someone who's like wanting a cheap Moti transportation out there. 434 00:20:01,200 --> 00:20:03,720 Speaker 1: But the problem is, and every scooter shop owner I've 435 00:20:03,720 --> 00:20:06,480 Speaker 1: talked to says, do not buy these, like they will 436 00:20:06,480 --> 00:20:10,000 Speaker 1: break down almost immediately. And I'm not gonna work on them. 437 00:20:10,040 --> 00:20:12,280 Speaker 1: I'm not going to fix them because they're made with 438 00:20:12,320 --> 00:20:15,159 Speaker 1: such poor quality parts, and so you're gonna want to 439 00:20:15,160 --> 00:20:18,000 Speaker 1: spend three times that much to buy a scooter that 440 00:20:18,119 --> 00:20:20,360 Speaker 1: is actually gonna last you longer and it's gonna be reparable. 441 00:20:20,520 --> 00:20:22,720 Speaker 1: Similar with bikes, where you're gonna need to spend more 442 00:20:22,720 --> 00:20:25,280 Speaker 1: money upfront, but it's gonna last a whole lot longer, 443 00:20:25,280 --> 00:20:26,879 Speaker 1: it's going to be a joy to ride, and so 444 00:20:27,200 --> 00:20:30,760 Speaker 1: don't cheap out buying one of these built to fail bikes. Alright, Matt, 445 00:20:30,840 --> 00:20:33,920 Speaker 1: let's talk about insurance for a second. Okay, and uh, 446 00:20:34,040 --> 00:20:36,040 Speaker 1: when was the last time. Well, we talked recently about 447 00:20:36,080 --> 00:20:39,480 Speaker 1: you and upping your deductible and a few months ago, 448 00:20:39,600 --> 00:20:41,600 Speaker 1: how that save you a lot of money generally speaking, though, 449 00:20:41,680 --> 00:20:44,199 Speaker 1: insurance not the sexiest thing to talk about. No, no, 450 00:20:44,280 --> 00:20:47,399 Speaker 1: it's not not really gonna grab people's attention. But but 451 00:20:47,480 --> 00:20:50,280 Speaker 1: here's the deal. It is actually more important now than 452 00:20:50,320 --> 00:20:52,920 Speaker 1: it even usually isn't. And that's because we're man. We've 453 00:20:52,920 --> 00:20:55,480 Speaker 1: been talking about just prices going up on every single 454 00:20:55,520 --> 00:20:59,000 Speaker 1: thing in this world, it feels like, but insurance rates 455 00:20:59,000 --> 00:21:01,720 Speaker 1: are rising faster than the rate of inflation. The Washington 456 00:21:01,800 --> 00:21:04,520 Speaker 1: Post just reported this week. And so yeah, I mean, 457 00:21:04,600 --> 00:21:06,879 Speaker 1: when you think back to last year, you saw all 458 00:21:06,880 --> 00:21:11,120 Speaker 1: those headlines about the rising prices of lumber, and that's 459 00:21:11,359 --> 00:21:12,960 Speaker 1: part of the reason for the increase, right, just the 460 00:21:13,040 --> 00:21:15,960 Speaker 1: components in home building and home repair. The prices of 461 00:21:15,960 --> 00:21:18,480 Speaker 1: those things have gone up. Building costs on the rise, 462 00:21:18,520 --> 00:21:21,480 Speaker 1: which means insurance costs are on the rise too. And 463 00:21:21,760 --> 00:21:24,240 Speaker 1: as car prices have skyrocketed, the same is true for 464 00:21:24,280 --> 00:21:26,719 Speaker 1: car insurance rates. And so the sad reality is that 465 00:21:26,760 --> 00:21:29,280 Speaker 1: most people don't really pay attention to what they're paying, 466 00:21:29,600 --> 00:21:32,520 Speaker 1: even though it's a really expensive line item in their budget. 467 00:21:32,680 --> 00:21:34,280 Speaker 1: And we just want to remind people put this in 468 00:21:34,280 --> 00:21:37,719 Speaker 1: front of them, shopping for your insurance, Shopping around can 469 00:21:37,760 --> 00:21:39,919 Speaker 1: save you a bundle. Yeah, And so we want you 470 00:21:40,000 --> 00:21:42,480 Speaker 1: to be abnormal in this case and to actually pay 471 00:21:42,560 --> 00:21:45,320 Speaker 1: some attention to how much you're paying, because in an 472 00:21:45,440 --> 00:21:48,760 Speaker 1: environment where prices are rising quickly, the likelihood that you're 473 00:21:48,760 --> 00:21:50,720 Speaker 1: gonna be able to save a good bit of money 474 00:21:50,960 --> 00:21:53,320 Speaker 1: goes up quite a bit. This is one of those 475 00:21:53,359 --> 00:21:56,439 Speaker 1: instances where loyalty, it's a great characteristic for humans to have. 476 00:21:56,520 --> 00:21:58,959 Speaker 1: It's a great uh characteristic for your you know, when 477 00:21:58,960 --> 00:22:01,520 Speaker 1: it comes to your friends, but not in this case, 478 00:22:01,560 --> 00:22:03,520 Speaker 1: not when it comes to insurance, because if you don't 479 00:22:03,520 --> 00:22:07,360 Speaker 1: shop around, that loyalty will only let you higher costs 480 00:22:07,400 --> 00:22:09,320 Speaker 1: every single month. And then while you're at it, you know, 481 00:22:09,359 --> 00:22:12,720 Speaker 1: it's important to ask about any discounts that you're eligible for, 482 00:22:13,080 --> 00:22:15,600 Speaker 1: whether that's through bundling or even just setting a higher 483 00:22:15,600 --> 00:22:18,359 Speaker 1: deductible like you just mentioned, Joel, or even you know, 484 00:22:18,359 --> 00:22:20,960 Speaker 1: self insuring with your savings. There are some instances where 485 00:22:21,119 --> 00:22:23,480 Speaker 1: you know, by law it's required, certain types of insurance 486 00:22:23,520 --> 00:22:26,200 Speaker 1: are required, but there are certain instances where when you 487 00:22:26,240 --> 00:22:28,280 Speaker 1: have enough money on hand, you no longer need to 488 00:22:28,359 --> 00:22:31,800 Speaker 1: have that insurance, or you can at least have less 489 00:22:31,840 --> 00:22:33,920 Speaker 1: of it exactly. And so, yeah, like you said, Joel, 490 00:22:33,960 --> 00:22:36,040 Speaker 1: this is an instance where we want to encourage folks 491 00:22:36,040 --> 00:22:38,360 Speaker 1: to fight inflation. At the beginning of the episode, we're 492 00:22:38,359 --> 00:22:40,040 Speaker 1: talking about Netflix, and I bet there are a lot 493 00:22:40,040 --> 00:22:43,000 Speaker 1: more folks who are paying attention to their Netflix bill 494 00:22:43,320 --> 00:22:46,119 Speaker 1: because it's something that feels a little more tangible. But 495 00:22:46,160 --> 00:22:48,480 Speaker 1: in reality, their insurance rates might be going up ten 496 00:22:48,640 --> 00:22:51,960 Speaker 1: times what they're paying in extra every single month on 497 00:22:52,040 --> 00:22:54,720 Speaker 1: Netflix compared to their homeowner's insurance. Right, Yeah, they're just 498 00:22:54,760 --> 00:22:56,720 Speaker 1: like putting the emphasis in the wrong place, because that 499 00:22:56,800 --> 00:22:58,840 Speaker 1: one dollar month isn't that that big of a deal 500 00:22:59,119 --> 00:23:02,320 Speaker 1: in reality, But how much your your insurance costs arising 501 00:23:02,480 --> 00:23:05,640 Speaker 1: and failing then to shop around for a better rate 502 00:23:05,720 --> 00:23:09,840 Speaker 1: with another solidly rated insurance company is going to cost 503 00:23:09,880 --> 00:23:11,359 Speaker 1: you a heck of a lot more right, all right, 504 00:23:11,400 --> 00:23:13,960 Speaker 1: we let's talk about travel for a second, Matt, there's 505 00:23:14,000 --> 00:23:16,359 Speaker 1: an interesting article this week about the changing nature of 506 00:23:16,400 --> 00:23:20,040 Speaker 1: travel and we we all know obviously the pandemic has 507 00:23:20,280 --> 00:23:23,960 Speaker 1: has just completely changed the way travel looks and how 508 00:23:23,960 --> 00:23:26,919 Speaker 1: we travel when it becomes to finding a deal on flights, 509 00:23:26,920 --> 00:23:29,920 Speaker 1: finding a place to stay. Airbnb, the CEO mentioned that 510 00:23:29,920 --> 00:23:33,560 Speaker 1: that they're experiencing a lot more month long bookings and 511 00:23:33,840 --> 00:23:36,840 Speaker 1: seasonal stays instead of just the quick weekend trip or 512 00:23:36,840 --> 00:23:39,800 Speaker 1: something like that, and that has made it somewhat harder 513 00:23:39,840 --> 00:23:41,960 Speaker 1: to find a place to stay for you know, a 514 00:23:41,960 --> 00:23:44,960 Speaker 1: weeklong vacation or in the summer. And it's changing pricing 515 00:23:45,000 --> 00:23:48,000 Speaker 1: dynamics too. So for example, like the advice that you 516 00:23:48,000 --> 00:23:50,440 Speaker 1: and I would have always given is shoulder season is 517 00:23:50,440 --> 00:23:53,240 Speaker 1: a great time to travel where you could reliably book 518 00:23:53,240 --> 00:23:56,439 Speaker 1: a trip that costs less. But that's not quite the 519 00:23:56,440 --> 00:23:59,720 Speaker 1: case anymore. There's this survey from booking dot com. It 520 00:23:59,760 --> 00:24:02,800 Speaker 1: found that fifty eight percent of travelers are more likely 521 00:24:02,880 --> 00:24:05,880 Speaker 1: to book travel during off peak seasons now and then 522 00:24:06,280 --> 00:24:08,679 Speaker 1: last year seven and ten are willing to travel at 523 00:24:08,680 --> 00:24:12,240 Speaker 1: non peaked times. So some of that advice, that traditional 524 00:24:12,280 --> 00:24:14,800 Speaker 1: advice that off peak is the best time to go, 525 00:24:15,160 --> 00:24:18,159 Speaker 1: it no longer actually holds. And so the prices that 526 00:24:18,200 --> 00:24:21,600 Speaker 1: you're seeing on Airbnb, on Verbo hotel websites, they're all 527 00:24:21,680 --> 00:24:24,159 Speaker 1: kind of reflecting this new normal where there isn't as 528 00:24:24,200 --> 00:24:27,359 Speaker 1: large of a discrepancy between peak times of travel and 529 00:24:27,359 --> 00:24:30,200 Speaker 1: then off peak for for lots of destinations exactly. Yeah. 530 00:24:30,200 --> 00:24:32,120 Speaker 1: The Times they actually had a great article as well 531 00:24:32,160 --> 00:24:34,880 Speaker 1: about this, and their travel writers said that the new 532 00:24:34,920 --> 00:24:37,600 Speaker 1: off peak is now week days, and so yeah, maybe 533 00:24:37,880 --> 00:24:40,720 Speaker 1: Monday through Thursday trip might be in order for you, 534 00:24:41,320 --> 00:24:43,800 Speaker 1: although obviously that's gonna be really difficult for families who 535 00:24:43,880 --> 00:24:46,520 Speaker 1: have kids in school. Even still, lots of other folks 536 00:24:46,520 --> 00:24:49,200 Speaker 1: can take advantage of this trend in order to save 537 00:24:49,280 --> 00:24:51,560 Speaker 1: quite a bit on that next trip, and as always, 538 00:24:51,880 --> 00:24:53,880 Speaker 1: to say the most money that you possibly can. It's 539 00:24:53,880 --> 00:24:56,320 Speaker 1: crucial to be flexible, not only with your dates, but 540 00:24:56,440 --> 00:24:59,600 Speaker 1: also your destination. And so if you can shop multiple 541 00:24:59,760 --> 00:25:02,159 Speaker 1: differ locations and then just go, you know, wherever the 542 00:25:02,200 --> 00:25:05,120 Speaker 1: deal is, you are going to spend much less money overall. 543 00:25:05,440 --> 00:25:08,480 Speaker 1: Let that deal drive your itinerary, not the other way around. 544 00:25:08,640 --> 00:25:11,200 Speaker 1: I'm already thinking about this when it comes to my anniversary. 545 00:25:11,359 --> 00:25:14,080 Speaker 1: Kate and I we're looking to celebrate fifteen years this fall, 546 00:25:14,600 --> 00:25:18,320 Speaker 1: and luckily she is of the same mindset that I am. 547 00:25:18,520 --> 00:25:20,880 Speaker 1: We're not necessarily the type of folks who are like, Okay, 548 00:25:20,920 --> 00:25:24,479 Speaker 1: we've got to get to Maui this fall. Fingers crossed. 549 00:25:24,520 --> 00:25:26,840 Speaker 1: Hopefully we will because that would be awesome. We've never 550 00:25:26,840 --> 00:25:30,560 Speaker 1: been to Hawaii before. But we are very flexible, and honestly, 551 00:25:30,640 --> 00:25:33,119 Speaker 1: by the time I'm like seventy five, I'm going to 552 00:25:33,200 --> 00:25:35,080 Speaker 1: have gone to pretty much all the places I want 553 00:25:35,080 --> 00:25:37,399 Speaker 1: to go anyway, right, some deal will pop up in 554 00:25:37,400 --> 00:25:40,520 Speaker 1: the next forty years to exactly, and so I just 555 00:25:40,560 --> 00:25:42,359 Speaker 1: need to make sure that I am willing to not 556 00:25:42,480 --> 00:25:45,080 Speaker 1: go in a particular order, Like maybe instead of going 557 00:25:45,119 --> 00:25:47,400 Speaker 1: to Maui this year, it'll be six years from now 558 00:25:47,600 --> 00:25:49,840 Speaker 1: or maybe eleven years from now. I'm fine with that 559 00:25:50,000 --> 00:25:52,720 Speaker 1: if that means, like it the best deal possible exactly. Yeah, 560 00:25:52,760 --> 00:25:54,760 Speaker 1: and then you just get to travel to more destinations, 561 00:25:54,760 --> 00:25:56,840 Speaker 1: hopefully if you're paying less for every trip. All right, 562 00:25:56,920 --> 00:25:59,600 Speaker 1: let's talk about mortgage rates for a second. Matt travels 563 00:25:59,600 --> 00:26:02,240 Speaker 1: more fun, but it's transition. Well, I like how we 564 00:26:02,240 --> 00:26:04,040 Speaker 1: say with it because we're talking about insurance. Then we 565 00:26:04,040 --> 00:26:06,879 Speaker 1: talked about travel, which is a little more exciting. Not 566 00:26:07,000 --> 00:26:09,480 Speaker 1: back to mortgage rates. Yes, yes, well, you and I 567 00:26:09,520 --> 00:26:10,960 Speaker 1: we've been predicting this for a while, and I've kind 568 00:26:10,960 --> 00:26:13,600 Speaker 1: of felt stupid because it kind of hadn't happened. Like 569 00:26:13,880 --> 00:26:15,800 Speaker 1: we were like, mortgage rights are gonna go, It's gonna happen. 570 00:26:15,840 --> 00:26:18,120 Speaker 1: Guys like promise it's gonna happen, and people like sure, 571 00:26:18,200 --> 00:26:20,280 Speaker 1: they are mad than drop a little bit. We're just like, 572 00:26:20,320 --> 00:26:23,280 Speaker 1: son of us, are we idiots? But no, it is 573 00:26:23,280 --> 00:26:26,720 Speaker 1: finally starting to come true. And there's this awesome website 574 00:26:26,720 --> 00:26:28,000 Speaker 1: that I like to read when it comes to to 575 00:26:28,080 --> 00:26:30,679 Speaker 1: mortgage stuff. It's called the Basis Point, and they report 576 00:26:30,720 --> 00:26:33,399 Speaker 1: that mortgage rates are up almost half a point just 577 00:26:33,440 --> 00:26:35,080 Speaker 1: since the start of the new year, like just in 578 00:26:35,119 --> 00:26:38,200 Speaker 1: three weeks. Rates were in the range of two point 579 00:26:38,280 --> 00:26:40,560 Speaker 1: eight percent in August of last year, and they're now 580 00:26:40,560 --> 00:26:42,800 Speaker 1: closer to three and a half percent. So the question 581 00:26:42,920 --> 00:26:44,880 Speaker 1: is for a lot of people, what does this mean 582 00:26:44,960 --> 00:26:48,800 Speaker 1: for housing prices? Are our housing prices gonna chill out 583 00:26:48,840 --> 00:26:51,720 Speaker 1: because rates are going up? Well, that remains to be seen. 584 00:26:51,760 --> 00:26:54,040 Speaker 1: There's this new survey from redfin and it found that 585 00:26:54,119 --> 00:26:56,960 Speaker 1: as rates are rising, people are actually more likely to 586 00:26:57,080 --> 00:27:00,480 Speaker 1: move more quickly to buy a home. So there's definitely 587 00:27:00,560 --> 00:27:02,879 Speaker 1: still FOMO in the real estate game. And we're still 588 00:27:02,920 --> 00:27:05,240 Speaker 1: just not seeing as many homes on the market. So 589 00:27:05,280 --> 00:27:07,560 Speaker 1: they're just all these other factors at play when it 590 00:27:07,600 --> 00:27:10,359 Speaker 1: comes to real estate prices, and that's hard to predict. 591 00:27:10,400 --> 00:27:12,000 Speaker 1: But the one thing we can't tell you for sure 592 00:27:12,240 --> 00:27:14,440 Speaker 1: is that rates have gone up and seem like they're 593 00:27:14,440 --> 00:27:16,800 Speaker 1: going to continue to be rising for the foreseeable future. 594 00:27:16,800 --> 00:27:18,520 Speaker 1: That's right. And the thing is, if you know you 595 00:27:18,560 --> 00:27:20,199 Speaker 1: were sitting on your hands waiting for rates to go 596 00:27:20,240 --> 00:27:23,200 Speaker 1: even lower, that's not gonna happen at this point. Uh. 597 00:27:23,200 --> 00:27:26,280 Speaker 1: That being said, rates are still near historic close. When 598 00:27:26,280 --> 00:27:28,160 Speaker 1: you zoom out and you look at the overall chart, 599 00:27:28,400 --> 00:27:31,160 Speaker 1: we are still near these historic close and so as 600 00:27:31,240 --> 00:27:34,320 Speaker 1: we're about to interpetue comebuying season, don't let these rising 601 00:27:34,400 --> 00:27:37,000 Speaker 1: rates cause you to panic buy. You know, even though 602 00:27:37,119 --> 00:27:38,840 Speaker 1: rates have picked up a little bit, there are still 603 00:27:38,920 --> 00:27:40,680 Speaker 1: so many different things that you need to consider when 604 00:27:40,680 --> 00:27:42,879 Speaker 1: it comes to your personal finances, When it comes to 605 00:27:42,920 --> 00:27:45,760 Speaker 1: your money, your situation, there's a lot to consider. Don't 606 00:27:45,840 --> 00:27:48,359 Speaker 1: only look at the rising rates. And even though you 607 00:27:48,400 --> 00:27:50,439 Speaker 1: know rates are taking up a little bit, plenty of 608 00:27:50,440 --> 00:27:54,119 Speaker 1: folks can still refinance and save money. But waiting longer 609 00:27:54,200 --> 00:27:56,280 Speaker 1: is likely not going to be a great strategy. We've 610 00:27:56,280 --> 00:27:58,879 Speaker 1: got a great article up on the website on how 611 00:27:59,080 --> 00:28:01,360 Speaker 1: you can refinance and say the most money possible. We'll 612 00:28:01,359 --> 00:28:03,119 Speaker 1: make sure to link to that one in our show notes. 613 00:28:03,359 --> 00:28:05,720 Speaker 1: But chances are we're only going to continue to see 614 00:28:05,760 --> 00:28:08,159 Speaker 1: these rates rise over time. And so if you if 615 00:28:08,200 --> 00:28:09,679 Speaker 1: this was already in the cards for you, if you 616 00:28:09,720 --> 00:28:13,200 Speaker 1: were already planning to either purchase a home or refinance, 617 00:28:13,400 --> 00:28:16,359 Speaker 1: now is the time. That's right. Don't make a rash 618 00:28:16,480 --> 00:28:19,399 Speaker 1: decision because of rising rates, but you know it should 619 00:28:19,400 --> 00:28:21,760 Speaker 1: be taken into account whether you're a current homeowner or 620 00:28:21,840 --> 00:28:24,320 Speaker 1: looking to buy a home. Don't let it rush your decision. 621 00:28:24,400 --> 00:28:27,320 Speaker 1: But rising rates do impact affordability. That's right, all right, Matt, 622 00:28:27,359 --> 00:28:29,760 Speaker 1: that's gonna do it for this episode. For folks who 623 00:28:29,840 --> 00:28:31,560 Speaker 1: do want those show notes links to some of the 624 00:28:31,680 --> 00:28:33,880 Speaker 1: articles that we mentioned today on the show, they can 625 00:28:33,920 --> 00:28:35,919 Speaker 1: go to our website at how some money dot com. 626 00:28:35,960 --> 00:28:37,760 Speaker 1: That's right. We hope everyone has a great weekend. We'll 627 00:28:37,760 --> 00:28:39,240 Speaker 1: see you back here on Monday. We've got a Listener 628 00:28:39,320 --> 00:28:42,080 Speaker 1: Questions episode lined up for you. And until then, Joel 629 00:28:42,240 --> 00:28:44,160 Speaker 1: best Friends Out, Best Friends Out,