1
00:00:00,200 --> 00:00:03,280
Speaker 1: Welcome to Had of Money. I'm Joel and I am Matt.

2
00:00:03,400 --> 00:00:09,520
Speaker 2: Today we're talking new apple iBank, generational disparagement, and culinary culprits.

3
00:00:29,000 --> 00:00:31,360
Speaker 1: That's right, buddy. Those are just a few of the

4
00:00:31,400 --> 00:00:33,760
Speaker 1: mini stories that we're going to get to during today's

5
00:00:33,840 --> 00:00:36,240
Speaker 1: Friday Flight. And by the way, if you are new here,

6
00:00:36,680 --> 00:00:38,559
Speaker 1: we like to cover a bunch of the different stories

7
00:00:38,600 --> 00:00:41,960
Speaker 1: that we've come across this past week and talk specifically

8
00:00:42,040 --> 00:00:45,320
Speaker 1: how those stories are going to impact your personal finances.

9
00:00:45,560 --> 00:00:47,240
Speaker 1: That's why we call it the Friday Flight. They're nice

10
00:00:47,240 --> 00:00:49,239
Speaker 1: little samples, as if you were going to go to

11
00:00:49,280 --> 00:00:50,839
Speaker 1: a brewery and you want to get a flight. You

12
00:00:50,880 --> 00:00:53,640
Speaker 1: don't want to commit to anyone's story, you just want

13
00:00:53,640 --> 00:00:54,600
Speaker 1: to just a little taste.

14
00:00:54,720 --> 00:00:57,600
Speaker 2: That way, when there's water cooler talk about money at

15
00:00:57,640 --> 00:00:59,800
Speaker 2: your work, you're like, oh, yeah, I know what's going on.

16
00:01:00,080 --> 00:01:01,000
Speaker 1: The boys talk about that.

17
00:01:01,160 --> 00:01:02,920
Speaker 2: But not only do you know what's going on, you

18
00:01:02,960 --> 00:01:05,520
Speaker 2: know how to react to the news. So because there

19
00:01:05,520 --> 00:01:07,440
Speaker 2: are things, a lot of things that are happening here

20
00:01:07,440 --> 00:01:09,200
Speaker 2: and there. We know the basics of personal finance, but

21
00:01:09,200 --> 00:01:11,320
Speaker 2: they're stuff happening all the time that should kind of

22
00:01:11,360 --> 00:01:13,720
Speaker 2: just change our trajectory or change what we.

23
00:01:13,680 --> 00:01:16,040
Speaker 1: Do, change just the lejectory, but it does impact the

24
00:01:16,560 --> 00:01:17,600
Speaker 1: day to day movements.

25
00:01:17,680 --> 00:01:20,080
Speaker 2: Yeah, like the overall we're gonna talk about ie Bonx,

26
00:01:20,200 --> 00:01:22,520
Speaker 2: Like the way we treat eyebonds a year ago has

27
00:01:22,600 --> 00:01:24,600
Speaker 2: changed to how you should perceive them today.

28
00:01:24,680 --> 00:01:26,920
Speaker 1: We'll get to that and more. And Hey, by the way,

29
00:01:26,920 --> 00:01:29,000
Speaker 1: Happy Friday to you. You and I we both went

30
00:01:29,040 --> 00:01:31,880
Speaker 1: for a walk today after lunch. It was so nice.

31
00:01:32,120 --> 00:01:33,440
Speaker 1: I think this is like the best time of year

32
00:01:33,440 --> 00:01:35,600
Speaker 1: when it's nice and crisp in the morning when you

33
00:01:35,880 --> 00:01:37,319
Speaker 1: hop on the bike and you're a little bit cold

34
00:01:37,360 --> 00:01:38,800
Speaker 1: when you first get on, but by the time you

35
00:01:38,800 --> 00:01:40,759
Speaker 1: get off the bike, you're like perfectly warm. It's before

36
00:01:40,800 --> 00:01:43,720
Speaker 1: the mosquitos hit, so mosquitos are nowt yet. Oh yeah,

37
00:01:43,760 --> 00:01:44,880
Speaker 1: I love this time. Yeah, this is the best.

38
00:01:44,920 --> 00:01:46,800
Speaker 2: This is the best, All right, Matt, real quick before

39
00:01:46,840 --> 00:01:48,480
Speaker 2: we get to all the stories that we need to

40
00:01:48,480 --> 00:01:52,480
Speaker 2: cover today. On the show, we talked about insurance on Wednesday,

41
00:01:52,920 --> 00:01:56,720
Speaker 2: and we've got this listener, Nate, who's in the insurance business,

42
00:01:56,960 --> 00:01:58,800
Speaker 2: and he's emailed a few different times and he's been

43
00:01:58,800 --> 00:02:01,040
Speaker 2: really helpful over the years. He's the one actually who

44
00:02:01,080 --> 00:02:03,440
Speaker 2: told us about Trusted Choice which is a great site

45
00:02:03,440 --> 00:02:06,720
Speaker 2: to find an independent that's insurance agents. And one of

46
00:02:06,760 --> 00:02:09,400
Speaker 2: the things he mentioned after in the aftermath of our

47
00:02:09,400 --> 00:02:12,079
Speaker 2: Wednesday episode, as I am still meeting with people. The

48
00:02:12,120 --> 00:02:14,639
Speaker 2: adjuster came out this week, The structural engineer came out

49
00:02:14,639 --> 00:02:15,000
Speaker 2: this week.

50
00:02:15,480 --> 00:02:17,960
Speaker 1: Any big updates, by the way, no big updates.

51
00:02:18,040 --> 00:02:19,959
Speaker 2: It's slow, but sure like we're gonna get there, but

52
00:02:20,000 --> 00:02:20,760
Speaker 2: it's gonna take some time.

53
00:02:20,880 --> 00:02:21,160
Speaker 1: I hear you.

54
00:02:21,280 --> 00:02:23,240
Speaker 2: But one of the things he mentioned was, well, yeah,

55
00:02:23,280 --> 00:02:24,720
Speaker 2: you're talking about a tree falling through your house, but

56
00:02:24,760 --> 00:02:26,520
Speaker 2: what if a fire happened, and what if you lost

57
00:02:26,520 --> 00:02:29,440
Speaker 2: all your possessions. It's really hard to remember what you

58
00:02:29,720 --> 00:02:32,200
Speaker 2: had to be able to document it for insurance purposes.

59
00:02:32,360 --> 00:02:33,919
Speaker 2: And I was like, that's a great point. I don't

60
00:02:34,040 --> 00:02:35,720
Speaker 2: remember if we talked about that. I don't think we did.

61
00:02:35,840 --> 00:02:37,679
Speaker 2: I know we have before on the show. But one

62
00:02:37,720 --> 00:02:41,000
Speaker 2: thing that people should do, probably once a year, is

63
00:02:41,040 --> 00:02:44,000
Speaker 2: to walk through their house and video everything they have,

64
00:02:44,080 --> 00:02:46,440
Speaker 2: going to every room. And Nate said, I mean I

65
00:02:46,440 --> 00:02:47,640
Speaker 2: did this the other day. I have like two hundred

66
00:02:47,639 --> 00:02:50,920
Speaker 2: fifty dollars in my shower alone, and that's crazy, Like

67
00:02:51,000 --> 00:02:52,080
Speaker 2: you don't think about.

68
00:02:51,960 --> 00:02:54,359
Speaker 1: He likes the slurs on life shampoo.

69
00:02:54,400 --> 00:02:56,960
Speaker 2: I guess he's got one of those like handcrafted Japanese

70
00:02:57,040 --> 00:02:57,840
Speaker 2: razors or something like that.

71
00:02:57,880 --> 00:03:00,760
Speaker 1: I don't know. I'm thinking again talked about doing the video?

72
00:03:00,840 --> 00:03:02,440
Speaker 1: Did we not say that on Wednesday? I don't think

73
00:03:02,440 --> 00:03:05,079
Speaker 1: we did so, but we have, we have like years ago,

74
00:03:05,120 --> 00:03:06,640
Speaker 1: but I don't know if we talked about it Wednesday.

75
00:03:06,720 --> 00:03:08,880
Speaker 1: I mean Kate and I. Back when we ran our

76
00:03:08,919 --> 00:03:10,960
Speaker 1: photography company, we would do that once a year, in

77
00:03:10,960 --> 00:03:13,280
Speaker 1: addition to having a spreadsheet that we would update with

78
00:03:13,320 --> 00:03:16,000
Speaker 1: our latest gear. But then just a quick video of

79
00:03:16,080 --> 00:03:19,240
Speaker 1: all of our possessions was a great, very easy, quick

80
00:03:19,280 --> 00:03:21,280
Speaker 1: way to document. Yeah, all the stuff that you've got,

81
00:03:21,400 --> 00:03:23,280
Speaker 1: and like you said, make it easier to prove, but

82
00:03:23,320 --> 00:03:25,160
Speaker 1: it makes it easier to remember. Yeah. Yeah, well that

83
00:03:25,320 --> 00:03:27,600
Speaker 1: in particularly when you're talking about an entire house, you

84
00:03:27,600 --> 00:03:30,040
Speaker 1: probably forget. Oh yeah, well what about that lamp? Yeah,

85
00:03:30,080 --> 00:03:32,000
Speaker 1: if it's burned up and gone, yes, you might be

86
00:03:32,040 --> 00:03:35,280
Speaker 1: easier easy to forget. So exactly, So big ups to night,

87
00:03:35,400 --> 00:03:37,680
Speaker 1: thank you, and we you know we learned. We learned too.

88
00:03:37,720 --> 00:03:39,880
Speaker 2: We're always learning, Matt, and so that's why the Facebook

89
00:03:39,920 --> 00:03:43,040
Speaker 2: group is helpful and when listeners email us with suggestions

90
00:03:43,080 --> 00:03:45,840
Speaker 2: that's helpful. We appreciate all of our hot and money listeners.

91
00:03:45,840 --> 00:03:47,160
Speaker 2: And if you're not a member of the Facebook group,

92
00:03:47,160 --> 00:03:49,119
Speaker 2: by the way, we're past ten thousand people in there.

93
00:03:49,640 --> 00:03:51,400
Speaker 2: It's just folks helping each other. It's like one of

94
00:03:51,480 --> 00:03:53,160
Speaker 2: the kind of sweetest places on the internet.

95
00:03:53,200 --> 00:03:54,160
Speaker 1: So to go check it out.

96
00:03:54,200 --> 00:03:56,880
Speaker 2: Strong Yeah, yeah, all right. Let's move on though, Matt.

97
00:03:56,960 --> 00:03:59,000
Speaker 2: Let's get to the sampling of stories we found interesting

98
00:03:59,080 --> 00:04:02,360
Speaker 2: this week. Start by talking about online shopping because the

99
00:04:02,480 --> 00:04:06,480
Speaker 2: Verge they report that Amazon is flagging. They're starting to

100
00:04:06,480 --> 00:04:09,440
Speaker 2: flag products on their site that get returned often. I

101
00:04:09,440 --> 00:04:12,280
Speaker 2: think this is awesome. They're basically alerting all of us

102
00:04:12,400 --> 00:04:14,920
Speaker 2: that this item that you're trying to purchase that it

103
00:04:14,960 --> 00:04:17,320
Speaker 2: might not be great. It's like a crappy product alert,

104
00:04:17,440 --> 00:04:19,960
Speaker 2: right exactly, said, Hey, twenty percent returns on this, A

105
00:04:19,960 --> 00:04:21,560
Speaker 2: lot of people will end up not liking it, and

106
00:04:21,600 --> 00:04:24,080
Speaker 2: so they're going to be putting a frequently returned item

107
00:04:24,160 --> 00:04:28,839
Speaker 2: tag on stuff that gets returned a lot. So given

108
00:04:28,920 --> 00:04:31,880
Speaker 2: the number of random brands on Amazon these days, there's

109
00:04:32,000 --> 00:04:34,840
Speaker 2: just there's just been a surge Matt in the kind

110
00:04:34,880 --> 00:04:38,960
Speaker 2: of off brand sort of offerings on Amazon, and a

111
00:04:38,960 --> 00:04:41,480
Speaker 2: bunch of other websites. Combined with the fake review problem,

112
00:04:41,600 --> 00:04:43,560
Speaker 2: this feels like a necessity. So I'm glad to see

113
00:04:43,560 --> 00:04:46,200
Speaker 2: Amazon doing something proactive on this front. And at least

114
00:04:46,200 --> 00:04:48,120
Speaker 2: it's going to help you see that you might need

115
00:04:48,160 --> 00:04:50,719
Speaker 2: to do some extra digging at least before you purchase.

116
00:04:50,760 --> 00:04:52,400
Speaker 2: You might say, hey, now I think I really want this,

117
00:04:52,800 --> 00:04:54,559
Speaker 2: But at least that acts as like a red flag

118
00:04:54,600 --> 00:04:56,440
Speaker 2: to do your due diligence, and so I don't know.

119
00:04:56,600 --> 00:04:58,400
Speaker 2: Even though you can return the product if it doesn't

120
00:04:58,400 --> 00:05:01,960
Speaker 2: work out, let's be honest, that's a hassle. So it's

121
00:05:02,040 --> 00:05:05,480
Speaker 2: just easier to avoid buying stuff that might turn out

122
00:05:05,520 --> 00:05:07,240
Speaker 2: to be a piece of craft to begin with.

123
00:05:07,440 --> 00:05:10,720
Speaker 1: That's definitely true. And in addition to that, it's Amazon,

124
00:05:10,920 --> 00:05:13,599
Speaker 1: they are also following the trend of charging customers to

125
00:05:13,760 --> 00:05:16,440
Speaker 1: even make those returns. So it's kind of like a

126
00:05:16,440 --> 00:05:18,240
Speaker 1: double whayman. Not only do you have the hassle, but

127
00:05:18,320 --> 00:05:20,800
Speaker 1: it's gonna cost you a little bit too. We've got

128
00:05:20,800 --> 00:05:24,960
Speaker 1: this entire counter that we've kind of almost solely dedicated

129
00:05:25,080 --> 00:05:28,360
Speaker 1: to the return of different packages, and so we certainly

130
00:05:28,400 --> 00:05:30,839
Speaker 1: are going to be impacted by this. But some folks

131
00:05:30,880 --> 00:05:33,640
Speaker 1: are going to have to now pay one dollar in

132
00:05:33,720 --> 00:05:36,360
Speaker 1: order to return their items to a ups location. If

133
00:05:36,360 --> 00:05:39,520
Speaker 1: Amazon has a preferred return site like a Coals or

134
00:05:39,560 --> 00:05:42,680
Speaker 1: a Whole Foods that they would rather have you make

135
00:05:42,680 --> 00:05:45,400
Speaker 1: that return to instead. So if one of those exists,

136
00:05:45,480 --> 00:05:47,920
Speaker 1: you're gonna be paying a dollar, and even though that's

137
00:05:47,960 --> 00:05:50,880
Speaker 1: not necessarily going to break the bank. We've talked about

138
00:05:51,040 --> 00:05:53,679
Speaker 1: how other retailers are also charging folks to send stuff

139
00:05:53,720 --> 00:05:55,760
Speaker 1: back through the mail, where they're trying to encourage folks,

140
00:05:55,800 --> 00:05:57,200
Speaker 1: you know, they're trying to push them to bring those

141
00:05:57,200 --> 00:06:00,559
Speaker 1: items back to a physical retail location. But the fact

142
00:06:00,680 --> 00:06:03,960
Speaker 1: is these returns they just cost retailers a lot of money,

143
00:06:04,000 --> 00:06:06,600
Speaker 1: not only in shipping, but just warehousing and figuring out

144
00:06:06,600 --> 00:06:09,599
Speaker 1: what to do with these gently used items because there's

145
00:06:09,600 --> 00:06:11,839
Speaker 1: a lot of folks. I mean, and I will readily

146
00:06:11,880 --> 00:06:13,880
Speaker 1: admit that this is something that we do. But if

147
00:06:13,920 --> 00:06:15,919
Speaker 1: an item is not up to snuff after we've tested

148
00:06:15,960 --> 00:06:18,200
Speaker 1: it out, we say, well, shoot, this is a piece

149
00:06:18,200 --> 00:06:21,640
Speaker 1: of junks. Maybe if there if it hadn't flagged as

150
00:06:21,640 --> 00:06:23,520
Speaker 1: an item that gets returned a lot, we could have

151
00:06:23,600 --> 00:06:26,920
Speaker 1: avoided that to begin with. But understandably, retailers, online retailers,

152
00:06:27,040 --> 00:06:30,640
Speaker 1: they want us to pony up and to be a partner.

153
00:06:30,680 --> 00:06:32,760
Speaker 1: When it comes to the returns that were making mutual

154
00:06:32,839 --> 00:06:36,280
Speaker 1: shared pain. Yeah, free shipping free returns, they aren't free

155
00:06:36,360 --> 00:06:39,920
Speaker 1: for those businesses. And hopefully, honestly, I think this is

156
00:06:39,960 --> 00:06:42,880
Speaker 1: going to impact us positively because I think these changes

157
00:06:42,920 --> 00:06:45,279
Speaker 1: can maybe encourage us. They can cause us all to

158
00:06:45,320 --> 00:06:47,279
Speaker 1: think a little more on the front end before we

159
00:06:47,400 --> 00:06:50,719
Speaker 1: make maybe a spur of the moment purchasing decision. Ye.

160
00:06:51,000 --> 00:06:53,000
Speaker 1: But I think anytime there's a little bit of friction

161
00:06:53,360 --> 00:06:56,600
Speaker 1: that keeps us from buying stuff without giving it much

162
00:06:56,640 --> 00:06:58,120
Speaker 1: thought at all is probably a good thing.

163
00:06:58,160 --> 00:07:00,240
Speaker 2: Exactly if we're like, hey, not only am I I

164
00:07:00,279 --> 00:07:01,600
Speaker 2: have to go through the process of returning it, but

165
00:07:01,600 --> 00:07:02,920
Speaker 2: I'm have to pay a little.

166
00:07:02,720 --> 00:07:04,240
Speaker 1: Bit of money to it. At the same time, maybe

167
00:07:04,279 --> 00:07:07,159
Speaker 1: we'll think twice before we just click yep. By Yeah.

168
00:07:07,640 --> 00:07:10,080
Speaker 1: I think it's understandable too, given just the history of

169
00:07:10,120 --> 00:07:12,080
Speaker 1: online retail I feel like we've sort of been in

170
00:07:12,120 --> 00:07:15,640
Speaker 1: this honeymoon phase as different online retailers have been trying

171
00:07:15,640 --> 00:07:18,560
Speaker 1: to gobble up market share essentially right, and so folks

172
00:07:18,560 --> 00:07:22,280
Speaker 1: like Amazon, they are they were offering that no questions asked,

173
00:07:22,320 --> 00:07:26,120
Speaker 1: free shipping, free returns for prime users, and now they're

174
00:07:26,160 --> 00:07:28,360
Speaker 1: starting to look at profitability. It makes me think of like, oh,

175
00:07:28,360 --> 00:07:30,720
Speaker 1: they've got you addicted. Yeah, yeah, exactly. It makes me

176
00:07:30,760 --> 00:07:33,040
Speaker 1: think of like ride sharing apps. Early on, you could

177
00:07:33,040 --> 00:07:35,280
Speaker 1: get somewhere for really cheap. Early on, if you were

178
00:07:35,280 --> 00:07:38,480
Speaker 1: a driver, you were getting paid I think better than

179
00:07:38,520 --> 00:07:38,960
Speaker 1: you are now.

180
00:07:39,040 --> 00:07:41,160
Speaker 2: It was the venture capitalist losing money in hope that

181
00:07:41,240 --> 00:07:43,880
Speaker 2: they would get a bigger share of the pytheon.

182
00:07:43,560 --> 00:07:45,760
Speaker 1: In the day. But all that VC funding is right up,

183
00:07:45,760 --> 00:07:48,480
Speaker 1: and other corporations like Amazon, they're looking to increase their

184
00:07:48,520 --> 00:07:49,880
Speaker 1: profits as well. So I think we're out of that

185
00:07:49,920 --> 00:07:53,280
Speaker 1: honeymoon phase and it's about to get real. Yeah. I

186
00:07:53,280 --> 00:07:55,800
Speaker 1: think I realized the true cost of online retail. Yeah

187
00:07:55,800 --> 00:07:56,160
Speaker 1: for sure.

188
00:07:56,200 --> 00:07:58,440
Speaker 2: All right, let's talk about credit cards. The CFPB the

189
00:07:58,440 --> 00:08:01,000
Speaker 2: Consumer Financial Protection Bureau, So they want to make it

190
00:08:01,040 --> 00:08:04,000
Speaker 2: easier for people to find the right credit card. And

191
00:08:04,200 --> 00:08:06,080
Speaker 2: there are sites out there, like our very own math

192
00:08:06,120 --> 00:08:09,280
Speaker 2: that have created tools to help people choose a credit

193
00:08:09,320 --> 00:08:10,720
Speaker 2: card that makes the most sense for them.

194
00:08:10,760 --> 00:08:12,720
Speaker 1: How to Money credit card tool, Yeah, which is great.

195
00:08:12,760 --> 00:08:14,000
Speaker 1: You can find that out how to money dot com,

196
00:08:14,080 --> 00:08:16,560
Speaker 1: slash credit cards easy to use sliders on there exactly

197
00:08:17,240 --> 00:08:19,200
Speaker 1: it's like, and it's helpful. We want people to find

198
00:08:19,240 --> 00:08:22,440
Speaker 1: the best credit card for how they spend, and it's

199
00:08:22,480 --> 00:08:24,920
Speaker 1: really hard to say this is the best credit card

200
00:08:24,960 --> 00:08:28,440
Speaker 1: in existence for everyone, because so much of the rewards

201
00:08:28,440 --> 00:08:30,480
Speaker 1: you garner depends on how you spend, and so you

202
00:08:30,520 --> 00:08:33,240
Speaker 1: need to find the right credit card for you. But

203
00:08:33,320 --> 00:08:36,600
Speaker 1: the CFPB MAT they're attempting to accumulate even more data

204
00:08:36,880 --> 00:08:40,439
Speaker 1: and information on basically every single credit card in existence,

205
00:08:40,720 --> 00:08:42,760
Speaker 1: even ones that are offered by the small time credit

206
00:08:42,800 --> 00:08:45,600
Speaker 1: unions around the country. And so I don't know when

207
00:08:45,600 --> 00:08:46,920
Speaker 1: this tool is going to come out. It's hard to

208
00:08:46,920 --> 00:08:48,400
Speaker 1: tell how long it's going to take. It's probably going

209
00:08:48,440 --> 00:08:50,440
Speaker 1: to be months and months. And is it going to

210
00:08:50,440 --> 00:08:53,000
Speaker 1: be a more helpful tool, I'm not sure yet. I mean,

211
00:08:53,040 --> 00:08:55,120
Speaker 1: it depends on kind of how they implement it, if

212
00:08:55,120 --> 00:08:57,080
Speaker 1: it even gets rolled out. Right now, they're collecting data,

213
00:08:57,080 --> 00:08:59,679
Speaker 1: they're in the data gathering stage and getting all of

214
00:08:59,720 --> 00:09:01,640
Speaker 1: this information from credit card companies.

215
00:09:01,679 --> 00:09:03,360
Speaker 2: But at some point there might be some sort of

216
00:09:03,600 --> 00:09:06,480
Speaker 2: megatool to rule them all from the CFP. Maybe we

217
00:09:06,559 --> 00:09:08,880
Speaker 2: just don't know will report back, But for now, we

218
00:09:08,920 --> 00:09:10,880
Speaker 2: still think that they had a money credit card tool.

219
00:09:11,040 --> 00:09:12,880
Speaker 2: The Winner for helping you pick a great card, so

220
00:09:13,240 --> 00:09:14,400
Speaker 2: be sure to check that out. We'll link to it

221
00:09:14,400 --> 00:09:14,960
Speaker 2: in the show notes.

222
00:09:15,040 --> 00:09:18,000
Speaker 1: Definitely. Yeah, and of course only use credit cards if

223
00:09:18,040 --> 00:09:20,079
Speaker 1: you can use them properly, if you can pay them

224
00:09:20,080 --> 00:09:23,600
Speaker 1: off on time and in full, because those rewards are

225
00:09:23,600 --> 00:09:26,120
Speaker 1: not going to be very rewarding if you are paying

226
00:09:26,120 --> 00:09:29,080
Speaker 1: interest to the credit card companies, to the banks. And

227
00:09:29,160 --> 00:09:32,120
Speaker 1: we should also mention that for the disciplined user. It

228
00:09:32,120 --> 00:09:35,000
Speaker 1: seems that credit card rewards continue to get better, or

229
00:09:35,000 --> 00:09:37,480
Speaker 1: they have been getting better, at least in recent years.

230
00:09:38,200 --> 00:09:41,120
Speaker 1: And that's been proved out by the amount that card

231
00:09:41,160 --> 00:09:44,400
Speaker 1: issuing banks have been spending in credit card rewards in

232
00:09:44,480 --> 00:09:47,440
Speaker 1: order to lure new customers and to keep them happy.

233
00:09:47,760 --> 00:09:50,400
Speaker 1: It turns out that as up forty three percent since

234
00:09:50,480 --> 00:09:54,640
Speaker 1: twenty nineteen to the tune of sixty eight billion dollars

235
00:09:55,240 --> 00:09:56,080
Speaker 1: in twenty twenty ten.

236
00:09:56,160 --> 00:09:58,160
Speaker 2: That's a lot of rewards being showered on the masses

237
00:09:58,200 --> 00:10:00,400
Speaker 2: by the credit card issue out there.

238
00:10:00,520 --> 00:10:02,520
Speaker 1: Yeah. Yeah, and that data, I mean, it correlates with

239
00:10:02,559 --> 00:10:05,560
Speaker 1: a pandemic as well, right, so as we all saw

240
00:10:05,720 --> 00:10:09,880
Speaker 1: lots of money infused into our accounts, that stemmy money. Basically,

241
00:10:09,960 --> 00:10:11,559
Speaker 1: the banks were saying we want a part of that.

242
00:10:11,600 --> 00:10:14,000
Speaker 1: We don't want to see people spending cash. We want

243
00:10:14,000 --> 00:10:17,000
Speaker 1: them putting those charges on credit cards plastic. Yeah, exactly,

244
00:10:17,080 --> 00:10:19,080
Speaker 1: And so you know, we will see whether or not

245
00:10:19,120 --> 00:10:22,679
Speaker 1: that continues. But if you can use credit cards the

246
00:10:22,720 --> 00:10:25,679
Speaker 1: way nature intended, that was actually the episode of the

247
00:10:25,760 --> 00:10:27,959
Speaker 1: name of an episode that we recorded recently. We'll link

248
00:10:28,000 --> 00:10:29,199
Speaker 1: to that one in the show notes as well. I

249
00:10:29,200 --> 00:10:31,680
Speaker 1: think that was episode six twenty nine. But if that's you,

250
00:10:32,440 --> 00:10:35,720
Speaker 1: hopefully you're gonna be able to continue racking up these

251
00:10:35,840 --> 00:10:40,119
Speaker 1: better sign up bonuses, these better cash back continuing rewards

252
00:10:40,320 --> 00:10:42,960
Speaker 1: than ever before, better travel rewards too. Yes, yeah, And

253
00:10:43,000 --> 00:10:45,120
Speaker 1: we will see whether or not these credit card rewards,

254
00:10:45,400 --> 00:10:47,840
Speaker 1: whether or not this bonanza last forever, because it may

255
00:10:47,880 --> 00:10:50,079
Speaker 1: not because politicians, they've they've had their eyes set on

256
00:10:50,280 --> 00:10:54,120
Speaker 1: us the sky high swipe fees that the major credit

257
00:10:54,120 --> 00:10:58,160
Speaker 1: card companies like Visa and MasterCard, that they charge, and

258
00:10:58,440 --> 00:11:00,600
Speaker 1: that could also have an impact on the rewards that

259
00:11:00,640 --> 00:11:03,760
Speaker 1: we receive as users. But for the time being, go

260
00:11:03,760 --> 00:11:06,079
Speaker 1: ahead and max out those rewards as long as you're

261
00:11:06,080 --> 00:11:07,400
Speaker 1: able to keep your spending in check.

262
00:11:07,480 --> 00:11:10,360
Speaker 2: Yeah, the system shar ain't perfect, and Visa, MasterCard, they

263
00:11:10,360 --> 00:11:12,360
Speaker 2: benefit from an imperfect system. They kind of like it

264
00:11:12,400 --> 00:11:14,959
Speaker 2: the way it is, and they don't mind showering rewards

265
00:11:14,960 --> 00:11:18,600
Speaker 2: on us because they do well too. But not everyone

266
00:11:18,600 --> 00:11:21,760
Speaker 2: benefits equally, and so I think that's why it's become

267
00:11:21,800 --> 00:11:25,120
Speaker 2: a political item these days. But at least for now. Yeah,

268
00:11:25,160 --> 00:11:27,960
Speaker 2: like you said, max rewards, use the system to your advantage,

269
00:11:28,000 --> 00:11:31,120
Speaker 2: if you can handle credit reasonably, if you can handle

270
00:11:31,160 --> 00:11:35,440
Speaker 2: it without going overboard. Let's talk about high yield savings accounts, Matt.

271
00:11:35,480 --> 00:11:38,839
Speaker 2: There's a new player in the game, Apple is now

272
00:11:38,880 --> 00:11:40,680
Speaker 2: and they've got a bank right in iBank. You're talking

273
00:11:40,679 --> 00:11:43,240
Speaker 2: about some ice savings. Yeah exactly. I mean I think

274
00:11:43,240 --> 00:11:43,560
Speaker 2: you got.

275
00:11:43,480 --> 00:11:46,960
Speaker 1: An eye interest, iye, everything exactly. Yeah, that's like two

276
00:11:47,000 --> 00:11:50,079
Speaker 1: eyes in a row in interest. But they just continue

277
00:11:50,080 --> 00:11:52,560
Speaker 1: to branch into more sectors. Apple's trying to take over

278
00:11:52,600 --> 00:11:53,800
Speaker 1: the world. It seems they've.

279
00:11:53,600 --> 00:11:56,000
Speaker 2: Already got a credit card which offers two percent cash

280
00:11:56,080 --> 00:11:58,480
Speaker 2: back when you use it at an Apple Pay, which

281
00:11:58,480 --> 00:12:00,959
Speaker 2: I think Apple Pay is accepted like ninety percent of

282
00:12:01,000 --> 00:12:03,800
Speaker 2: locations now. But now they've launched a savings account with

283
00:12:03,880 --> 00:12:05,960
Speaker 2: a rate of four point one five percent. I saw

284
00:12:05,960 --> 00:12:08,320
Speaker 2: some chatter in the Facebook group that I mentioned earlier.

285
00:12:08,320 --> 00:12:10,560
Speaker 2: Matt and their listeners already signing up for this because

286
00:12:10,960 --> 00:12:13,360
Speaker 2: it's so sandboys and girls out there are just like, yeah,

287
00:12:13,440 --> 00:12:15,120
Speaker 2: already got the Apple my phone. I like Apple?

288
00:12:15,200 --> 00:12:17,240
Speaker 1: Why not? Well, I will say one of the things

289
00:12:17,320 --> 00:12:20,280
Speaker 1: that Apple implemented when they launched their Apple Card was

290
00:12:20,320 --> 00:12:22,920
Speaker 1: the ability to have that little dashboard. Yes, it shows you.

291
00:12:23,000 --> 00:12:25,040
Speaker 1: It's like a little gauge and they show you how

292
00:12:25,160 --> 00:12:28,400
Speaker 1: close how much you've spent. And the disconnect from people

293
00:12:28,559 --> 00:12:30,840
Speaker 1: using their cards to when they receive their statement at

294
00:12:30,840 --> 00:12:33,240
Speaker 1: the end of the month was something that Apple addressed

295
00:12:33,360 --> 00:12:36,440
Speaker 1: and so and after that, other credit card issuers started

296
00:12:36,440 --> 00:12:38,640
Speaker 1: to do the same thing, and so the ability anytime

297
00:12:38,679 --> 00:12:40,080
Speaker 1: this competition, we're always for them.

298
00:12:40,240 --> 00:12:42,200
Speaker 2: And there's more competition in the banking space now, in

299
00:12:42,240 --> 00:12:44,640
Speaker 2: the high yield banking space. And there's a lot of

300
00:12:44,640 --> 00:12:47,520
Speaker 2: people who were with the big banks who probably wouldn't

301
00:12:47,520 --> 00:12:50,320
Speaker 2: have switched if it wasn't Apple launching the bank, right

302
00:12:50,360 --> 00:12:52,040
Speaker 2: because they've got the iPhone. They're like, yeah, all right,

303
00:12:52,080 --> 00:12:54,640
Speaker 2: why not? And they're benefiting because they were. They go

304
00:12:54,679 --> 00:12:56,960
Speaker 2: from something like point zero one percent interest to four

305
00:12:56,960 --> 00:12:59,200
Speaker 2: point one five percent interest, which is a massive jump.

306
00:12:59,240 --> 00:13:02,400
Speaker 2: So I I love seeing this. Like Apple, they don't

307
00:13:02,400 --> 00:13:05,040
Speaker 2: have their own banking charter, so they've partner with Goldman Sachs.

308
00:13:05,200 --> 00:13:07,480
Speaker 2: That's what allows them to do this. And you can

309
00:13:07,559 --> 00:13:09,480
Speaker 2: open up an account now if you're an iPhone user

310
00:13:09,480 --> 00:13:11,520
Speaker 2: on the wallet app on your phone. I'm an Android user,

311
00:13:11,520 --> 00:13:14,480
Speaker 2: so I cannot. But you know, they're not charging any

312
00:13:14,520 --> 00:13:18,000
Speaker 2: fees or establishing any minimum balance requirements. They're kind of

313
00:13:18,000 --> 00:13:20,520
Speaker 2: doing what a lot of our favorite online banks are doing,

314
00:13:20,840 --> 00:13:22,439
Speaker 2: and so it just looks like we might have another

315
00:13:22,559 --> 00:13:24,720
Speaker 2: solid online bank to recommend. Matt and I just think

316
00:13:24,920 --> 00:13:27,000
Speaker 2: I think they're going to gain market share rather quickly,

317
00:13:27,080 --> 00:13:30,760
Speaker 2: just given how they're already in the pockets of tens

318
00:13:30,800 --> 00:13:33,599
Speaker 2: of millions of people. So I love to see it.

319
00:13:33,640 --> 00:13:35,520
Speaker 2: If you want to open a savings account with Apple,

320
00:13:35,840 --> 00:13:37,959
Speaker 2: go for it. They're paying in top tier rates.

321
00:13:37,800 --> 00:13:40,160
Speaker 1: Right now, and billions more people might Did you see Apple,

322
00:13:40,160 --> 00:13:42,120
Speaker 1: They just launched their first brick and mortar store in India,

323
00:13:42,320 --> 00:13:44,720
Speaker 1: so there's going to be a lot more customers, a

324
00:13:44,720 --> 00:13:47,720
Speaker 1: lot more folks who might consider financial products. Yes, exactly.

325
00:13:47,760 --> 00:13:50,079
Speaker 1: They really are taking over the world, it seems. You

326
00:13:50,160 --> 00:13:51,839
Speaker 1: know what this also makes me think of was I

327
00:13:51,880 --> 00:13:54,360
Speaker 1: guess was it last week, we talked about the Google

328
00:13:54,360 --> 00:13:57,080
Speaker 1: Flight price guarantee. H Do you remember how it is

329
00:13:57,120 --> 00:13:59,320
Speaker 1: that you get your refund were you to book one

330
00:13:59,360 --> 00:14:02,199
Speaker 1: of their flights in the rice drops back through Googles

331
00:14:01,520 --> 00:14:04,360
Speaker 1: the money goes through Google Pay. And so it just

332
00:14:04,400 --> 00:14:06,680
Speaker 1: seems that these different software all these big tech companies,

333
00:14:06,720 --> 00:14:09,760
Speaker 1: they're wanting to get more and more into your finances.

334
00:14:10,040 --> 00:14:13,440
Speaker 1: They're wanting to seamlessly integrate, and I think that's pretty interesting.

335
00:14:13,440 --> 00:14:15,920
Speaker 1: It could provide a lot of convenience and features for us,

336
00:14:15,920 --> 00:14:17,240
Speaker 1: But we still need to make sure that we are

337
00:14:17,240 --> 00:14:20,400
Speaker 1: being careful with the different products that they're offering to

338
00:14:20,480 --> 00:14:22,800
Speaker 1: us and we're not just walking down the path of

339
00:14:22,960 --> 00:14:26,960
Speaker 1: least resistance. Yes, and speaking of savings eebonds, they are

340
00:14:27,040 --> 00:14:30,360
Speaker 1: starting to lose their lester. There hasn't been an official

341
00:14:30,360 --> 00:14:33,440
Speaker 1: announcement of what the rate on ee bonds will be

342
00:14:33,840 --> 00:14:37,040
Speaker 1: once it gets reworked once it resets on May first,

343
00:14:37,520 --> 00:14:39,760
Speaker 1: but we're likely to see it drop blow four percent.

344
00:14:40,160 --> 00:14:41,880
Speaker 1: That's what a lot of the experts are predicting. And

345
00:14:41,920 --> 00:14:44,160
Speaker 1: what that means is that you can now earn more

346
00:14:44,200 --> 00:14:48,000
Speaker 1: in that Apple savings account and actually have more flexibility

347
00:14:48,040 --> 00:14:50,840
Speaker 1: all the while. So back you know, last year, when

348
00:14:50,920 --> 00:14:53,880
Speaker 1: ibond rates were near ten percent, they were a slam

349
00:14:54,040 --> 00:14:57,440
Speaker 1: dunk medium term option for parking some dollars, saving some

350
00:14:57,480 --> 00:15:00,000
Speaker 1: of those saving four some of those medium term goals.

351
00:15:00,160 --> 00:15:02,840
Speaker 1: Rates on actual save these accounts hadn't reached the level

352
00:15:02,840 --> 00:15:04,400
Speaker 1: that they're at mad not cost, so there was a

353
00:15:04,400 --> 00:15:06,840
Speaker 1: massive gap between what you get on eebonds and what

354
00:15:06,880 --> 00:15:09,600
Speaker 1: you were getting in regular online savings. Yeah, but as

355
00:15:09,640 --> 00:15:13,120
Speaker 1: inflation is cooled, ibonds are becoming less attractive. So what

356
00:15:13,160 --> 00:15:15,280
Speaker 1: this means is that if you purchase ibonds before the

357
00:15:15,360 --> 00:15:18,280
Speaker 1: end of April, you can still snag that basically it's

358
00:15:18,320 --> 00:15:22,200
Speaker 1: a six point nine percent rate, but given the constraints

359
00:15:22,200 --> 00:15:25,000
Speaker 1: of eyebonds, that blended rate that you're going to likely

360
00:15:25,040 --> 00:15:28,520
Speaker 1: snag over an actual calendar year, after over twelve months,

361
00:15:28,720 --> 00:15:31,800
Speaker 1: that's going to likely make ibonds less attractive than savings

362
00:15:31,840 --> 00:15:34,600
Speaker 1: and even CDs. And so if you purchase them at

363
00:15:34,800 --> 00:15:37,160
Speaker 1: at the apex and you're wondering when to cash out,

364
00:15:37,200 --> 00:15:39,520
Speaker 1: that's not a terribly easy question to answer. So much

365
00:15:39,520 --> 00:15:42,160
Speaker 1: of it actually depends on when you made that purchase,

366
00:15:42,280 --> 00:15:43,920
Speaker 1: because if you don't hold them for at least five years,

367
00:15:43,920 --> 00:15:46,760
Speaker 1: you're going to forfeit the most recent three months of interest.

368
00:15:46,800 --> 00:15:48,640
Speaker 1: And so with that again, what that means is you're

369
00:15:48,680 --> 00:15:51,200
Speaker 1: going to want to wait at least three months until

370
00:15:51,240 --> 00:15:55,040
Speaker 1: after your rate drops to this new lower amount before

371
00:15:55,080 --> 00:15:57,640
Speaker 1: selling them. So it's just something to keep in mind.

372
00:15:57,680 --> 00:16:00,200
Speaker 1: It's the I feel like eyebonds, they had their yah.

373
00:16:00,240 --> 00:16:02,200
Speaker 1: They're five minutes of fane, the moment of the sun.

374
00:16:02,320 --> 00:16:04,760
Speaker 1: It is quickly coming to And then just.

375
00:16:04,680 --> 00:16:06,960
Speaker 2: Talking with our friend, one of my friends the other

376
00:16:07,040 --> 00:16:08,280
Speaker 2: day and he was like, I don't know, it seemed

377
00:16:08,280 --> 00:16:10,320
Speaker 2: like too much of a hassle to even get into

378
00:16:10,320 --> 00:16:12,240
Speaker 2: the eyebond, saying, then I get it because the Treasury

379
00:16:12,240 --> 00:16:16,400
Speaker 2: Direct website just sucks. It's so bad, and navigating it

380
00:16:16,480 --> 00:16:19,200
Speaker 2: is no fun. But that rate was hard to beat,

381
00:16:19,280 --> 00:16:20,960
Speaker 2: like I said at the time, and so I'm really

382
00:16:20,960 --> 00:16:23,400
Speaker 2: glad I did. I put some money in some medium

383
00:16:23,480 --> 00:16:25,560
Speaker 2: term savings into eyebonds, like we talked about here on

384
00:16:25,600 --> 00:16:25,920
Speaker 2: the show.

385
00:16:26,240 --> 00:16:29,240
Speaker 1: But now it's starting how and when to get out?

386
00:16:29,280 --> 00:16:31,040
Speaker 1: You stuck ten grand in you're seeing that close to

387
00:16:31,080 --> 00:16:33,480
Speaker 1: eleven grand now over just the past twelve months. That's right.

388
00:16:33,800 --> 00:16:36,200
Speaker 2: So I don't know how long I'll keep mine around.

389
00:16:36,280 --> 00:16:40,560
Speaker 2: My guess is probably for another like five or six months.

390
00:16:40,560 --> 00:16:42,640
Speaker 2: It just depends. I got I gotta do some taking

391
00:16:42,680 --> 00:16:44,920
Speaker 2: on that, just like everybody does who bought them. And

392
00:16:44,920 --> 00:16:46,880
Speaker 2: then now they're like, can I do better elsewhere?

393
00:16:46,960 --> 00:16:49,040
Speaker 1: Sink some of that eyebond money in your your house.

394
00:16:49,040 --> 00:16:53,160
Speaker 1: Perhaps that's right, you're paying for the deductible and other

395
00:16:53,320 --> 00:16:54,640
Speaker 1: potential repairs exactly.

396
00:16:54,720 --> 00:16:57,200
Speaker 2: Yeah, yeah, so all right, but Matt, we've got more

397
00:16:57,360 --> 00:16:59,600
Speaker 2: to get to on the money front. There's a lot

398
00:16:59,720 --> 00:17:03,000
Speaker 2: that happened this week on the electric vehicle front. Prices

399
00:17:03,080 --> 00:17:06,000
Speaker 2: going down, federal tax credit's going away. We'll kind of

400
00:17:06,080 --> 00:17:08,840
Speaker 2: like talk about how the dust is settled on that.

401
00:17:09,200 --> 00:17:12,040
Speaker 2: We'll talk about rents getting cheaper too. We'll get to

402
00:17:12,080 --> 00:17:13,040
Speaker 2: all that right after this.

403
00:17:22,440 --> 00:17:24,280
Speaker 1: All right, man, we are back from the break talking

404
00:17:24,320 --> 00:17:26,240
Speaker 1: about the financial stories that you need to be paying

405
00:17:26,280 --> 00:17:29,399
Speaker 1: attention to. And it is now time for the ludicrous

406
00:17:29,520 --> 00:17:34,640
Speaker 1: headline of the week. And sometimes we will highlight an

407
00:17:34,680 --> 00:17:38,400
Speaker 1: online publisher or magazine that nobody's ever heard of, and

408
00:17:39,119 --> 00:17:41,119
Speaker 1: you kind of think, well, yeah, naturally, they've got a

409
00:17:41,160 --> 00:17:42,840
Speaker 1: story that seems kind of silly.

410
00:17:42,840 --> 00:17:45,680
Speaker 2: Occasionally a local TV station, Yeah, they get goofy stuff

411
00:17:45,720 --> 00:17:46,720
Speaker 2: from time to time, but no.

412
00:17:46,920 --> 00:17:51,600
Speaker 1: This one comes from the Wall Street Journal, the ag Yeah,

413
00:17:51,640 --> 00:17:54,920
Speaker 1: and here is the title of this article. They can't

414
00:17:54,960 --> 00:17:59,760
Speaker 1: even a generation avoids facing its finances. And all right,

415
00:18:00,000 --> 00:18:01,560
Speaker 1: for first of all, the headline, Man, you were pissed

416
00:18:01,600 --> 00:18:02,080
Speaker 1: when you saw this.

417
00:18:02,200 --> 00:18:04,399
Speaker 3: I'm not gonna lie, well, I'm not just it was

418
00:18:04,440 --> 00:18:06,800
Speaker 3: just a little annoying, but you were like, what in

419
00:18:06,800 --> 00:18:10,000
Speaker 3: the world, So the headline, they can't even I'm just

420
00:18:10,200 --> 00:18:13,560
Speaker 3: not a big fan of media outlets taking this approach

421
00:18:13,640 --> 00:18:15,360
Speaker 3: right where they're just over generalizing.

422
00:18:15,400 --> 00:18:19,560
Speaker 1: They're targeting a specific generation or in this case, two generations,

423
00:18:19,600 --> 00:18:22,400
Speaker 1: millennials and Gen Z, and I think what they're doing

424
00:18:22,480 --> 00:18:26,200
Speaker 1: is they're communicating that younger generations are basically idiots, right,

425
00:18:26,359 --> 00:18:29,080
Speaker 1: Like they're implying that anyone out there who is forty

426
00:18:29,200 --> 00:18:31,560
Speaker 1: years old or younger they just can't get their stuff together,

427
00:18:31,840 --> 00:18:34,800
Speaker 1: rather than maybe this just being a natural process of

428
00:18:34,840 --> 00:18:37,640
Speaker 1: growing up. Yeah, so, I mean, of course, like when

429
00:18:37,640 --> 00:18:40,360
Speaker 1: you're younger, you're gonna make dumber decisions, right like you are,

430
00:18:40,880 --> 00:18:43,800
Speaker 1: you're less informed, you don't have as much experience. But

431
00:18:43,840 --> 00:18:46,640
Speaker 1: you know what, this is something that every generation experiences.

432
00:18:46,960 --> 00:18:49,280
Speaker 1: I can even I can think back to Gen X, right,

433
00:18:49,320 --> 00:18:51,560
Speaker 1: I'm right on the cusp of being a very very

434
00:18:51,600 --> 00:18:54,800
Speaker 1: young gen xer or being you know, like we like

435
00:18:54,880 --> 00:18:58,240
Speaker 1: to say, a geriatric millennial. But I can think back

436
00:18:58,280 --> 00:19:00,639
Speaker 1: to when like all the gen X stories were in

437
00:19:00,680 --> 00:19:04,520
Speaker 1: the headlines and they're being described as slackers, dude, even boomers.

438
00:19:04,640 --> 00:19:08,160
Speaker 1: They're all grown up. They're all smart and immature. They're

439
00:19:08,160 --> 00:19:10,120
Speaker 1: all retiring now, they've got plenty of money. They came

440
00:19:10,160 --> 00:19:11,840
Speaker 1: of age. They're not all smart, well they're not all

441
00:19:11,840 --> 00:19:14,359
Speaker 1: smart of them, but like this is the generation that

442
00:19:14,400 --> 00:19:16,240
Speaker 1: grew up in the sixties and the seventies. Like these

443
00:19:16,240 --> 00:19:19,600
Speaker 1: were hippies and they were also kind of drug through

444
00:19:19,640 --> 00:19:20,360
Speaker 1: the mud a little bit.

445
00:19:20,600 --> 00:19:22,920
Speaker 2: I don't know, this always happens to older generation. It's

446
00:19:22,960 --> 00:19:26,040
Speaker 2: a recurring things. They're just sticking it to whatever new

447
00:19:26,080 --> 00:19:28,159
Speaker 2: generation comes along. And I never know.

448
00:19:29,000 --> 00:19:31,920
Speaker 1: These different generational names, like they can just be used

449
00:19:31,960 --> 00:19:34,040
Speaker 1: and they can be helpful as you're talking about different

450
00:19:34,080 --> 00:19:36,400
Speaker 1: subsets of a population. But I just felt like it's

451
00:19:36,400 --> 00:19:39,600
Speaker 1: necessary to go to bat for us fellow millennials, for

452
00:19:39,640 --> 00:19:41,840
Speaker 1: all the gen Zers out there who might be crushing

453
00:19:41,880 --> 00:19:44,600
Speaker 1: it when it comes to their actual finances, as opposed

454
00:19:44,640 --> 00:19:46,400
Speaker 1: to just overgeneralizing.

455
00:19:45,680 --> 00:19:48,119
Speaker 2: A lot of stereotyping and a lot of it's not

456
00:19:48,119 --> 00:19:51,399
Speaker 2: actually accurate. Like I feel like the intergenerational finger pointing

457
00:19:51,480 --> 00:19:53,880
Speaker 2: is kind of silly. It never stops, especially when we're

458
00:19:53,880 --> 00:19:56,080
Speaker 2: talking about headlines from the Wall Street Journal, the Atlantic,

459
00:19:56,160 --> 00:19:59,720
Speaker 2: like just big publications. They like to put it paint

460
00:19:59,800 --> 00:20:03,760
Speaker 2: with broad brush when it comes to generational tendencies. But

461
00:20:03,840 --> 00:20:06,560
Speaker 2: the other interesting thing, Matt, is that the data shows

462
00:20:06,840 --> 00:20:09,960
Speaker 2: that the pejorative view of millennials and Gen Z that

463
00:20:10,600 --> 00:20:12,440
Speaker 2: it's not as accurate as a lot of people believe.

464
00:20:12,480 --> 00:20:15,359
Speaker 2: There was an article fortunately that I saw this week

465
00:20:15,400 --> 00:20:19,800
Speaker 2: in The Atlantic basically saying it was called the Myth

466
00:20:19,880 --> 00:20:23,520
Speaker 2: of the Broke Millennial, and they basically what the author

467
00:20:23,600 --> 00:20:26,879
Speaker 2: was saying is while millennial generation faced economic headwinds that

468
00:20:27,000 --> 00:20:30,760
Speaker 2: slowed their progress, by twenty nineteen, the average millennial household

469
00:20:31,000 --> 00:20:33,719
Speaker 2: was making more than boomers and Gen xers when they

470
00:20:33,720 --> 00:20:37,240
Speaker 2: were the same age. And so the facts, the facts

471
00:20:37,440 --> 00:20:42,120
Speaker 2: I kind of prove some of the stereotypes wrong. Millennial

472
00:20:42,160 --> 00:20:45,040
Speaker 2: homeowner shape rates, they're on par with previous generations too,

473
00:20:45,440 --> 00:20:48,200
Speaker 2: and they've experienced a surge in home value, so their

474
00:20:48,240 --> 00:20:51,280
Speaker 2: net worth is also on par with where Gen Xers

475
00:20:51,280 --> 00:20:52,720
Speaker 2: were when they were basically our age.

476
00:20:52,840 --> 00:20:55,240
Speaker 1: So was it adjusted for inflation as well? I assume

477
00:20:55,280 --> 00:20:58,720
Speaker 1: so I think it was. Yeah, but yes, but yeah

478
00:20:58,720 --> 00:21:00,560
Speaker 1: it was because of course, yeah they had Otherwise it'd

479
00:21:00,560 --> 00:21:03,520
Speaker 1: be like, oh, of course they're megam right. Yeah. But like,

480
00:21:03,560 --> 00:21:06,240
Speaker 1: this doesn't apply to every single millennial. Not every sure

481
00:21:06,320 --> 00:21:09,400
Speaker 1: single millennial has prospered in the same way. But from

482
00:21:09,440 --> 00:21:13,919
Speaker 1: a generational perspective, millennials are doing incredibly well, contrary to

483
00:21:13,960 --> 00:21:17,679
Speaker 1: popular opinion, contrary to the way the Wall Street Journal

484
00:21:18,040 --> 00:21:21,560
Speaker 1: took them to task in this article. Together Journal, Yeah,

485
00:21:21,560 --> 00:21:24,080
Speaker 1: it's amazing how just some proper data can just correct

486
00:21:24,359 --> 00:21:26,640
Speaker 1: a narrative. But while we've been picking on this Wall

487
00:21:26,640 --> 00:21:29,600
Speaker 1: Street Journal headline, there was some decent information in the

488
00:21:29,640 --> 00:21:32,960
Speaker 1: actual article though, because the author they cite some research

489
00:21:33,280 --> 00:21:39,160
Speaker 1: from the American Psychological Association, and they specifically discuss financial avoidance.

490
00:21:39,640 --> 00:21:42,919
Speaker 1: And this is basically how folks cope with money stress

491
00:21:43,320 --> 00:21:46,320
Speaker 1: by simply ignoring it. But of course that is no

492
00:21:46,440 --> 00:21:48,760
Speaker 1: way to live your life. You're just kicking the can

493
00:21:48,760 --> 00:21:51,399
Speaker 1: down the road. You're ignoring the reality of your finances.

494
00:21:51,480 --> 00:21:53,960
Speaker 1: You're just ticking your head in the sand instead of

495
00:21:54,040 --> 00:21:56,679
Speaker 1: actually owning up and just addressing the problem. Why do

496
00:21:56,760 --> 00:21:59,280
Speaker 1: ostriches do that. By the way, does anyone know is

497
00:21:59,320 --> 00:22:01,560
Speaker 1: that how they sleep? Oh maybe, I don't know. Are

498
00:22:01,600 --> 00:22:03,800
Speaker 1: they looking for food? I don't know. Are they literally

499
00:22:03,880 --> 00:22:07,000
Speaker 1: just trying to avoid life? I'm not sure. I don't know.

500
00:22:07,160 --> 00:22:09,080
Speaker 1: I feel like it has something to do with sleep.

501
00:22:09,200 --> 00:22:11,440
Speaker 2: It must, I don't know. I know very little about Australa.

502
00:22:11,520 --> 00:22:13,000
Speaker 2: We pick on the ostriches. Then, come on, they're doing

503
00:22:13,040 --> 00:22:13,879
Speaker 2: it for a reason, guys.

504
00:22:13,960 --> 00:22:17,600
Speaker 1: But as far as the actual problems that younger adults

505
00:22:17,640 --> 00:22:20,679
Speaker 1: are dealing with, the more recent data out there shows

506
00:22:20,800 --> 00:22:24,760
Speaker 1: that eating out is a major culprit. Americans are spending

507
00:22:24,800 --> 00:22:28,720
Speaker 1: over ninety five billion dollars at restaurants. This is way

508
00:22:28,760 --> 00:22:31,600
Speaker 1: more than what they're spending at the grocery store. That's

509
00:22:31,760 --> 00:22:34,680
Speaker 1: was that last year? It is per year, right, twenty

510
00:22:34,680 --> 00:22:37,720
Speaker 1: twenty three? Yeah, okay, So basically, for everye hundred dollars

511
00:22:37,840 --> 00:22:39,720
Speaker 1: that folks are spending at the grocery store, they're spending

512
00:22:39,760 --> 00:22:43,120
Speaker 1: one hundred and thirty dollars eating out. Wow, which is crazy.

513
00:22:43,359 --> 00:22:45,800
Speaker 1: And so that being said, if you're thinking, well, hey, guys,

514
00:22:45,840 --> 00:22:48,199
Speaker 1: I've got I've got zero culinary skills. I am no

515
00:22:49,400 --> 00:22:52,440
Speaker 1: Bobby Flay, I am no Hugh Atchison. These are or

516
00:22:52,640 --> 00:22:54,760
Speaker 1: or local guys or someone who lives right down this

517
00:22:54,800 --> 00:22:58,040
Speaker 1: street from us. Oh, Alton Brown, Auton Brown. That's right.

518
00:22:58,080 --> 00:23:00,199
Speaker 2: He is a local celebrity here where we live. Into

519
00:23:00,240 --> 00:23:01,640
Speaker 2: him at the barbecue place not too long ago.

520
00:23:01,720 --> 00:23:03,320
Speaker 1: Yeah, yeah, I saw him walking his dog one time

521
00:23:03,359 --> 00:23:07,800
Speaker 1: when I right past. But if you're thinking I don't

522
00:23:07,800 --> 00:23:09,639
Speaker 1: know how to cook like those guys, I don't know

523
00:23:09,640 --> 00:23:11,080
Speaker 1: how to make a decent meal at home in order

524
00:23:11,119 --> 00:23:13,080
Speaker 1: to save money, Well if that is, you don't fear,

525
00:23:13,320 --> 00:23:16,879
Speaker 1: We've actually got your back because Frankie Celenza, he is

526
00:23:16,960 --> 00:23:19,800
Speaker 1: the culinary host behind Struggle Meals. He's actually going to

527
00:23:19,880 --> 00:23:22,560
Speaker 1: join us on Monday's episode to talk about cooking, so

528
00:23:22,720 --> 00:23:23,640
Speaker 1: you can look forward to that one.

529
00:23:23,680 --> 00:23:27,200
Speaker 2: Frankie Rocks. I feel like Frankie is the new generation

530
00:23:27,280 --> 00:23:30,320
Speaker 2: of Balton Brown. He's like younger, but he knows what

531
00:23:30,359 --> 00:23:32,760
Speaker 2: he's talking about, and he's so interesting.

532
00:23:32,560 --> 00:23:34,000
Speaker 1: And his show is smart.

533
00:23:34,040 --> 00:23:36,280
Speaker 2: They're bite sized shows too, they're eight or eight ten

534
00:23:36,320 --> 00:23:40,000
Speaker 2: minutes online, and I feel like Struggle Meals is like

535
00:23:40,080 --> 00:23:42,520
Speaker 2: the Food Network for the next generation, so you can

536
00:23:42,560 --> 00:23:43,199
Speaker 2: look forward to that one.

537
00:23:43,480 --> 00:23:43,679
Speaker 1: Like it.

538
00:23:43,720 --> 00:23:46,639
Speaker 2: But Matt, let's talk about electric vehicles for a second,

539
00:23:47,000 --> 00:23:50,000
Speaker 2: a lot of evs no longer qualify for the full

540
00:23:50,119 --> 00:23:53,040
Speaker 2: federal tax credit. As of this past Tuesday. We mentioned

541
00:23:53,040 --> 00:23:55,320
Speaker 2: that I was coming down the pike, but we didn't

542
00:23:55,320 --> 00:23:57,320
Speaker 2: know exactly which ones we're going to make the cut.

543
00:23:57,560 --> 00:24:01,960
Speaker 2: A few still do, though, including our face incredibly inexpensive EV,

544
00:24:02,200 --> 00:24:05,000
Speaker 2: the Chevy Bolt EUV, which can be had for how

545
00:24:05,080 --> 00:24:08,160
Speaker 2: much more than twenty thousand dollars after the full seventy

546
00:24:08,200 --> 00:24:11,160
Speaker 2: five hundred dollars tax credit, which is pretty impressive given

547
00:24:11,240 --> 00:24:12,840
Speaker 2: the average cost of a new car. You can't get

548
00:24:12,840 --> 00:24:15,480
Speaker 2: a new car for twenty five grand or less, except

549
00:24:15,480 --> 00:24:17,280
Speaker 2: for basically that there's like three of them left on

550
00:24:17,320 --> 00:24:21,280
Speaker 2: the market. Seriously, the pickings are slim. Tesla, they cut

551
00:24:21,280 --> 00:24:23,640
Speaker 2: prices on some of their models even more this week too.

552
00:24:23,920 --> 00:24:26,000
Speaker 2: The Model Why, for instance, can now be had for

553
00:24:26,280 --> 00:24:28,960
Speaker 2: just a hair under forty thousand dollars after the tax credit,

554
00:24:29,000 --> 00:24:30,760
Speaker 2: which is pretty impressive, and it's going to save a

555
00:24:30,760 --> 00:24:33,720
Speaker 2: lot of people money every single month on repairs and gas.

556
00:24:33,800 --> 00:24:36,200
Speaker 2: At the same time, you know, we're not necessarily fans

557
00:24:36,200 --> 00:24:38,359
Speaker 2: of people going out there and buying new cars, but

558
00:24:38,760 --> 00:24:41,240
Speaker 2: it makes sense for some people for sure, and so

559
00:24:41,320 --> 00:24:44,200
Speaker 2: that it just feels like the EV market has changed overnight.

560
00:24:44,280 --> 00:24:47,520
Speaker 2: We were talking I think like December of last year,

561
00:24:47,560 --> 00:24:50,560
Speaker 2: Matt about how much more expensive EV's were getting. Well,

562
00:24:50,720 --> 00:24:54,040
Speaker 2: the competition is getting stiff and prices are going down,

563
00:24:54,119 --> 00:24:56,440
Speaker 2: and Tesla they're trying to they're reducing prices because they're

564
00:24:56,480 --> 00:24:59,200
Speaker 2: trying to go from selling hundreds of thousands of units

565
00:24:59,240 --> 00:25:01,240
Speaker 2: a year to million, or like from.

566
00:25:01,080 --> 00:25:02,879
Speaker 1: One million to two million. Yeah, they're looking at like

567
00:25:02,920 --> 00:25:04,919
Speaker 1: double the number of new Teslas on the road.

568
00:25:04,960 --> 00:25:07,040
Speaker 2: Exactly, which which makes sense. They're trying to compete with

569
00:25:07,040 --> 00:25:09,360
Speaker 2: the big boys. And so yeah, does buying a new

570
00:25:09,400 --> 00:25:11,480
Speaker 2: eb makes sense for you? Well, it depends on a

571
00:25:11,520 --> 00:25:14,320
Speaker 2: whole slew of factors, of course, including but not limited

572
00:25:14,320 --> 00:25:17,080
Speaker 2: to how many miles you drive. But with prices coming

573
00:25:17,119 --> 00:25:20,280
Speaker 2: down in a meaningful way, even with a reduced number

574
00:25:20,280 --> 00:25:23,480
Speaker 2: of models currently qualifying for that tax credit, I think

575
00:25:23,560 --> 00:25:27,200
Speaker 2: increased adoption rates are likely to continue. And I think

576
00:25:27,280 --> 00:25:30,239
Speaker 2: for other folks who are like, yeah, I'm still on

577
00:25:30,280 --> 00:25:32,960
Speaker 2: the fence about NEB, I think two to three years

578
00:25:33,000 --> 00:25:35,480
Speaker 2: from now might even be a sweeter spot for a

579
00:25:35,480 --> 00:25:36,360
Speaker 2: lot of people.

580
00:25:36,119 --> 00:25:38,720
Speaker 1: To jump in. As competition continues to increase and we

581
00:25:38,760 --> 00:25:41,720
Speaker 1: see more lower price models that qualify for that full

582
00:25:41,760 --> 00:25:45,000
Speaker 1: federal tax credit come into play exactly. Yeah, that competition

583
00:25:45,119 --> 00:25:48,520
Speaker 1: only benefits us as consumers. As companies are wanting to

584
00:25:48,600 --> 00:25:51,200
Speaker 1: again get a piece of that market share, and they're

585
00:25:51,200 --> 00:25:54,520
Speaker 1: willing to compete, they're going to make models that vary

586
00:25:54,560 --> 00:25:56,760
Speaker 1: in price. That way, the only options that are available

587
00:25:56,760 --> 00:25:59,160
Speaker 1: to us aren't just like the premium, high end luxury vehicles.

588
00:25:59,200 --> 00:26:00,960
Speaker 2: Well, and when you think about what's happening already, like

589
00:26:01,040 --> 00:26:03,679
Speaker 2: the Ford tid to cut the price of their Machi

590
00:26:03,880 --> 00:26:07,639
Speaker 2: Mustang because Tesla's cutting prices, and so it's starting to

591
00:26:07,760 --> 00:26:11,760
Speaker 2: lead to just at lower prices on most EV models.

592
00:26:11,800 --> 00:26:13,920
Speaker 1: That's right, man. All right, let's talk about housing specifically.

593
00:26:13,960 --> 00:26:17,560
Speaker 1: Let's talk about rents because they've fell here in the

594
00:26:17,680 --> 00:26:21,119
Speaker 1: US zero point four percent last month, marking the first

595
00:26:21,240 --> 00:26:24,560
Speaker 1: year over year drop since the beginning of the pandemic.

596
00:26:24,880 --> 00:26:27,280
Speaker 1: And you know why that was back in twenty twenty.

597
00:26:27,560 --> 00:26:30,160
Speaker 1: This is according to new data from Redfin. But part

598
00:26:30,200 --> 00:26:32,320
Speaker 1: of the reason is that we are seeing more supply,

599
00:26:32,400 --> 00:26:35,720
Speaker 1: We're seeing more units being finished up that are being completed.

600
00:26:36,040 --> 00:26:39,200
Speaker 1: Rents are still up roughly twenty percent from before the pandemic.

601
00:26:39,240 --> 00:26:42,160
Speaker 1: But this is good news for inflation and renters that

602
00:26:42,200 --> 00:26:46,359
Speaker 1: we appear to be seeing some disinflationary effects finally actually

603
00:26:46,440 --> 00:26:47,880
Speaker 1: hitting the rental market. Yeah.

604
00:26:47,920 --> 00:26:50,480
Speaker 2: Now because of the true through our house, which we've

605
00:26:50,480 --> 00:26:52,359
Speaker 2: talked about here on the show, of course a couple times,

606
00:26:53,000 --> 00:26:55,399
Speaker 2: we might have to live elsewhere for a short period

607
00:26:55,440 --> 00:26:58,320
Speaker 2: of time, making me potentially a short term renter here

608
00:26:58,320 --> 00:27:00,320
Speaker 2: in the near future. And I've just been kind of

609
00:27:00,320 --> 00:27:04,040
Speaker 2: looking around, looking around, and it's amazing to see on

610
00:27:04,160 --> 00:27:07,160
Speaker 2: Zillow they show when a home that's listed for rent

611
00:27:07,200 --> 00:27:09,560
Speaker 2: has had its price cut, and I'm seeing price cuts

612
00:27:09,560 --> 00:27:11,560
Speaker 2: on a bunch of different units, which is something we're

613
00:27:11,560 --> 00:27:15,120
Speaker 2: not used to seeing, and as landlords ourselves, like I've

614
00:27:15,240 --> 00:27:17,199
Speaker 2: never had to do that before, but more and more

615
00:27:17,280 --> 00:27:19,920
Speaker 2: landlord trying to do it. They were listing their their

616
00:27:20,119 --> 00:27:23,800
Speaker 2: property sky high and turns out nobody's interested at that price.

617
00:27:23,960 --> 00:27:25,399
Speaker 2: And so it's good to see rents coming down. I

618
00:27:25,400 --> 00:27:26,760
Speaker 2: think that's like really good news for a lot of

619
00:27:26,800 --> 00:27:27,440
Speaker 2: people who rent.

620
00:27:27,520 --> 00:27:30,040
Speaker 1: Sure, But that being said, this isn't to say that

621
00:27:30,119 --> 00:27:32,760
Speaker 1: across the board that this is a blanket decrease that

622
00:27:32,760 --> 00:27:35,320
Speaker 1: we're seeing, because some markets are up. It's anecdotal. It

623
00:27:35,359 --> 00:27:37,840
Speaker 1: depends on the city depends even within a city, depends

624
00:27:37,880 --> 00:27:40,879
Speaker 1: on the specific neighborhood, even the specific street. Because I

625
00:27:40,920 --> 00:27:43,919
Speaker 1: was looking recently, some tenants were looking to renew their

626
00:27:44,000 --> 00:27:46,359
Speaker 1: lease and I was shocked to see how much higher

627
00:27:46,440 --> 00:27:49,040
Speaker 1: the rents were down there, And I was looking at

628
00:27:49,119 --> 00:27:51,000
Speaker 1: days on market, and these are houses that are they've

629
00:27:51,040 --> 00:27:53,400
Speaker 1: only been on the market for not that long, and

630
00:27:53,400 --> 00:27:55,560
Speaker 1: I've checked and other ones that were priced pretty high

631
00:27:55,920 --> 00:27:58,600
Speaker 1: were gone, which means they got rented. So I knew

632
00:27:58,600 --> 00:28:00,960
Speaker 1: that that meant that rents are pretty hot down there.

633
00:28:01,000 --> 00:28:02,400
Speaker 2: Kind of like we talked about, was it last week

634
00:28:02,440 --> 00:28:04,840
Speaker 2: or the week before home prices And it's an East

635
00:28:04,880 --> 00:28:06,960
Speaker 2: Coast versus West Coast thing, so maybe the rent rents

636
00:28:06,920 --> 00:28:08,480
Speaker 2: are the same way. It just kind of depends, like

637
00:28:08,480 --> 00:28:11,439
Speaker 2: you say, like location specific. That is always a thing

638
00:28:11,480 --> 00:28:13,480
Speaker 2: about real estate at least this is a broad brush

639
00:28:13,480 --> 00:28:16,720
Speaker 2: here and kind of overall national phenomenon, and it's and

640
00:28:17,080 --> 00:28:19,639
Speaker 2: the truth is, it's barely a bunch. So hope hopefully

641
00:28:19,680 --> 00:28:22,320
Speaker 2: we'll see more softening and rents for because rents have

642
00:28:22,359 --> 00:28:25,400
Speaker 2: gone up so quickly for so many people. But how

643
00:28:25,480 --> 00:28:28,680
Speaker 2: much it depends really on where you live specifically.

644
00:28:28,119 --> 00:28:31,119
Speaker 1: Exactly, because at least with the housing housing sales, that

645
00:28:31,240 --> 00:28:34,240
Speaker 1: was like a large trend of West Coast versus East Coast.

646
00:28:34,320 --> 00:28:36,800
Speaker 1: But with this it just varies from state to state,

647
00:28:36,840 --> 00:28:38,840
Speaker 1: and even within a state, it depends because I saw

648
00:28:38,880 --> 00:28:41,320
Speaker 1: that like prices, like rent prices are down in Cincinnati,

649
00:28:41,480 --> 00:28:43,720
Speaker 1: but they're up in Cleveland, so it doesn't It just

650
00:28:43,760 --> 00:28:46,520
Speaker 1: depends on the specific market. I think I saw that

651
00:28:46,640 --> 00:28:49,200
Speaker 1: it was up also in Raleigh. But then you've got

652
00:28:49,200 --> 00:28:52,000
Speaker 1: cities like Austin and Chicago, and they've seen some steeper

653
00:28:52,160 --> 00:28:54,960
Speaker 1: drop offs than a lot of markets. So keep that

654
00:28:54,960 --> 00:28:57,720
Speaker 1: in mind, because across much of the country, you're likely

655
00:28:57,760 --> 00:29:00,720
Speaker 1: going to have more ability to negotiate the price of

656
00:29:00,720 --> 00:29:03,640
Speaker 1: a rental unit than you had in years past. We

657
00:29:03,720 --> 00:29:06,840
Speaker 1: talked about this in episode four sixty nine, so be

658
00:29:06,880 --> 00:29:08,560
Speaker 1: sure to check that one out. If you're looking to

659
00:29:08,720 --> 00:29:11,880
Speaker 1: use this current trend to your advantage.

660
00:29:11,480 --> 00:29:13,840
Speaker 2: Jay, you might be able to lower that rent amount

661
00:29:13,960 --> 00:29:16,720
Speaker 2: or find some way to lock in a lower rent

662
00:29:17,080 --> 00:29:19,080
Speaker 2: amount for a longer period of time. There's all sorts

663
00:29:19,080 --> 00:29:20,840
Speaker 2: of different tactics you can take. We covered a bunch

664
00:29:20,880 --> 00:29:22,240
Speaker 2: of those in that episode.

665
00:29:22,280 --> 00:29:23,920
Speaker 1: Yeah, or maybe your rent doesn't go down, but you

666
00:29:23,920 --> 00:29:26,920
Speaker 1: can get your landlord to start covering some lawn maintenance

667
00:29:26,960 --> 00:29:29,120
Speaker 1: where maybe previously that's that was something that you had

668
00:29:29,120 --> 00:29:30,960
Speaker 1: to do. Exactly, your rent stays the same, You're not

669
00:29:30,960 --> 00:29:33,120
Speaker 1: actually going to decrease it, but get them to perhaps

670
00:29:33,200 --> 00:29:35,400
Speaker 1: offer a little more in return for that rent.

671
00:29:35,600 --> 00:29:37,280
Speaker 2: I mean, there's just so many things that you can

672
00:29:37,360 --> 00:29:39,600
Speaker 2: negotiate that don't have to do with just that bottom

673
00:29:39,680 --> 00:29:42,120
Speaker 2: line rent price. So yep, all right, Matt, that's going

674
00:29:42,200 --> 00:29:43,960
Speaker 2: to do it for this episode. Though we'll have links

675
00:29:44,000 --> 00:29:46,520
Speaker 2: to everything that we mentioned here up on the show

676
00:29:46,520 --> 00:29:49,440
Speaker 2: notes at howtomoney dot com. Don't forget to sign up

677
00:29:49,440 --> 00:29:52,160
Speaker 2: for the how to Money newsletter irocks comes out every Tuesday.

678
00:29:52,560 --> 00:29:55,000
Speaker 2: If you missed this past one, you missed the pictures

679
00:29:55,080 --> 00:29:57,800
Speaker 2: of the tree, you did, and so you can actually

680
00:29:57,840 --> 00:30:00,000
Speaker 2: go find last week's newsletter up on the websit.

681
00:30:00,560 --> 00:30:01,920
Speaker 1: That's right, man, But that is going to be it

682
00:30:01,960 --> 00:30:04,680
Speaker 1: for this episode until next time. Best Friends Out, Best

683
00:30:04,760 --> 00:30:05,680
Speaker 1: Friends Out,