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Speaker 1: Welcome to How to Money. I'm Joel and I am Matt,

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Speaker 1: and today we're answering your listener questions.

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Speaker 2: Yes, sir, it is a Monday, and you know that

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Speaker 2: means we are answering your listener questions. They've got five

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Speaker 2: great ones to get to today. Do it every Monday.

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Speaker 1: Now.

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Speaker 2: By the way, it's Sara making a memo. You know,

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Speaker 2: we were thinking about, Okay, maybe we'll make the listener

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Speaker 2: questions be the Wednesday episode. No no, no, for whatever reason,

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Speaker 2: the ask how to Money Monday episode. It's just like

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Speaker 2: it's ingrained into my brain and that's what we're doing today. Yeah,

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Speaker 2: we uh a listener he's asking about how he can

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Speaker 2: go about ramping up a side hustle. Another listener he's

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Speaker 2: figuring out what to do specifically when your craft beer

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Speaker 2: equivalent are luxury sports cars.

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Speaker 1: Oh that we've.

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Speaker 2: Got more of a nerdy question, an early retirement question.

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Speaker 2: How to access some wroth four O one K funds early.

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Speaker 2: We'll get to those three plus a couple others during

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Speaker 2: our episode today.

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Speaker 1: Yeah, a nice variety here, kind of like what's in

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Speaker 1: our beer? We'll give to that in a second. But

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Speaker 1: real quick, man, my uncle he and my aunt. They

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Speaker 1: take a trip together once or twice a year. Well,

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Speaker 1: my uncle, he's kind of the cheerleader type. He's always

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Speaker 1: rooting me on, which is just super sweets, nice time

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Speaker 1: an uncle like that, right, And so he and my

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Speaker 1: aunt they're making trips. They always go to historical sites

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Speaker 1: across the country. They want to see, like the house

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Speaker 1: where a old school president grew up or something like that,

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Speaker 1: and so whenever, all that kind of stuff. And so

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Speaker 1: my uncle is sending me pictures from all over the

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Speaker 1: United States. But what is he put in front of

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Speaker 1: those historical landmarks that had money sock? And he's sending

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Speaker 1: me pictures with our sock in front of like wait,

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Speaker 1: like a little white house and stuff like that.

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Speaker 2: He doesn't have them on, he's just holding it in

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Speaker 2: the frame, just holding in the frame like a single

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Speaker 2: dirtyes like Dobby from Harry Potter.

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Speaker 1: I think it's clean. I think it's clean. It's a

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Speaker 1: singular slock. But how adorable is that? It's sweet? Like

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Speaker 1: it's pretty cute. It just shows you how proud he

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Speaker 1: is and how he wants to like send me a

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Speaker 1: bunch of those and we'll post them. I will, I will.

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Speaker 1: They're very they're super cute. But on that note, I

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Speaker 1: was thinking, wow, we've still got some super sweet how

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Speaker 1: to money socks sitting around that we have not given

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Speaker 1: away to listeners. It's true, it's time to give away

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Speaker 1: some more of those because one they're comfy, two that

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Speaker 1: are adorable. You're gonna love them if you like the

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Speaker 1: show and so look good and they feel good. That's right.

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Speaker 1: You can already win some if you subscribe to our

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Speaker 1: newsletter and share our winter stuff.

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Speaker 2: You can earn some or earn some, yes, but now

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Speaker 2: we're offering the opportunity I guess for folks to win.

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Speaker 1: Some right now, the bar is very low. All you

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Speaker 1: gotta do is submit a review for our podcast, whether

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Speaker 1: it's on Spotify, Apple Podcasts, wherever you listen, and send

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Speaker 1: us an email showing that you've left one. And even

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Speaker 1: if you left one in the past, just send us

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Speaker 1: an email with a screenshot of that review and we'll

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Speaker 1: include you in this giveaway.

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Speaker 2: Yeah, okay, I know why you doing this, because we

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Speaker 2: are A recent review gave us like three stars because

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Speaker 2: they're rip on me for talking about the five percent

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Speaker 2: student loan payment.

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Speaker 1: Which I will say they did. They took you to

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Speaker 1: task on that. But I took you to task in

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Speaker 1: the moment because I thought that was a ridiculous thing

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Speaker 1: to say that five percent of that's not your discretion

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Speaker 1: of your buzble. Okay, you know, don't double please don't.

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Speaker 2: I think the reason I don't touch Okay, now, when

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Speaker 2: you are when you are an entrepreneur, and I literally

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Speaker 2: have been, like been self employed my entire life. Like

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Speaker 2: there have been years where we've gone from like where

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Speaker 2: our income has decreased by like literally forty to fifty percent,

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Speaker 2: like going from like earning ninety k down to like

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Speaker 2: forty kah, and we're like, ooh, it's gonna be it's

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Speaker 2: gonna be a little bit tighter this year. I think

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Speaker 2: with that in mind, I'm like, oh, five percent, that

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Speaker 2: doesn't Yeah, doesn't seem that big of a deal. Sure,

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Speaker 2: I understand it certainly impacts folks, but at least it's

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Speaker 2: better than ten, which it certainly is. But I'm not

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Speaker 2: I certainly don't discount the folks out there who are

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Speaker 2: feeling that crunch more significantly.

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Speaker 1: I totally get that. I think that's probably how but

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Speaker 1: that's that's where you want to give some socks. Well,

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Speaker 1: we've got to make up for your indiscretions and hopefully

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Speaker 1: get reviews from people who love it and don't hold

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Speaker 1: it against you.

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Speaker 2: I still appreciate that they at least give us three stars,

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Speaker 2: because it's not like they went from loving the show

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Speaker 2: to hating it. They're just kind of annoyed at maybe

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Speaker 2: some of the stuff we said recently.

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Speaker 1: Sure, and so that's fair if you want to help

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Speaker 1: help us, those reviews really do matter. They help other

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Speaker 1: people who are interested in potentially listening to the show

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Speaker 1: know what they're getting into. And so if you've liked it,

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Speaker 1: we'd love it if you would leave a review, leave

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Speaker 1: us a solid one over there, Yeah, especially if you've

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Speaker 1: been listening for a while haven't yet, And you will

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Speaker 1: be entered to win away one of five pairs of

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Speaker 1: socks who are given away. We will make that happen

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Speaker 1: by let's say, Wednesday, by midnight, Wednesday midnight, and we

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Speaker 1: will announce on the Friday flight the five winners of

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Speaker 1: the How To Money Socks. No doubt, all right, so

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Speaker 1: we have looking socks. We hope you win. May the

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Speaker 1: odds be ever in your favor. But the beer that

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Speaker 1: we're having on today's episode is called Dream. It is

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Speaker 1: a strawberry cherry cotton candy jelly bean sour. We'll give

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Speaker 1: our thoughts on this kitchen sink of a beer at

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Speaker 1: the end of the episode of a beer that was

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Speaker 1: made by a ten year old, or like an oop

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Speaker 1: a loopa in a candy store. Right, what's it called?

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Speaker 1: Is it dream? It's like Jay Yeah, with Jay Dream

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Speaker 1: Jeram Joe Raim. That's right, makes me think of like

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Speaker 1: Kareem abdul Jabbar Fly to the Concords. Oh, okay, was

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Speaker 1: it der?

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Speaker 3: Yeah?

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Speaker 1: Boy, I haven't thought about that one in a while.

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Speaker 1: Be neither.

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Speaker 2: All right, let's get to all that. Note, it's Business

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Speaker 2: Times the topic at hand.

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Speaker 1: We are get to it. Answer your listener questions. We

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Speaker 1: do it every Monday, and if you have a question

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Speaker 1: for us, we would love we would love to hear

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Speaker 1: it and tackle it on an upcoming ask htm episode.

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Speaker 1: All you got to do is record a voice memo

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Speaker 1: and send it our way. If you want the specific instructions,

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Speaker 1: just go to how tomoney dot com slash ask. Let's

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Speaker 1: get to the first question, though, Matt. This one comes

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Speaker 1: from a listener who wants to ramp up a side

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Speaker 1: hustle turn it into a legit business.

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Speaker 4: Hey Matt and Joel Justin from northeastern Oklahoma. Here. I

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Speaker 4: really want to start my own word working business and

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Speaker 4: transition to working for a full time over the next

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Speaker 4: few years, while I continue to work my job at

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Speaker 4: the post office long enough to be able to make

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Speaker 4: a smooth transition from one profitable gig to the other.

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Speaker 4: My current shop situation is not ideal, to say the

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Speaker 4: least is in working out of my uninsulated and unconditioned

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Speaker 4: garage and find it is mentally and physically straining to

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Speaker 4: get out there to work in the frigid cold or

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Speaker 4: blazing humid heat we tend to get here. I have

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Speaker 4: about twenty seven thousand dollars in my TSP I could

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Speaker 4: draw on to either retrofit my garage to a nice

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Speaker 4: small shop or build a larger separate shop altogether, which

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Speaker 4: would be ideal so my wife could have a garage back.

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Speaker 4: Do you think it's a good idea to draw upon

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Speaker 4: retirement savings to invest in starting up a personal small business.

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Speaker 4: Other financing methods I've considered are cash out, refinancing, heelock,

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Speaker 4: the old bootstrap method which I've been using or potentially crowdfunding.

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Speaker 4: Any thoughts or recommendations. Obviously, building the shop would be

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Speaker 4: more expensive than a retrofit. I'd like your thoughts on

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Speaker 4: that as well. Thank you for your time and your response,

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Speaker 4: and I love the podcast.

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Speaker 1: Joe.

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Speaker 2: What do you think Nick Offerman would say to Justin

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Speaker 2: about getting out there in the hot or the cold?

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Speaker 2: I mean, I think you'd say, grin and Barrett, that's right,

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Speaker 2: you pull out his inner Ron Swanson. I can't not

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Speaker 2: think of ronoff nick Offerman or Ron Swanson rot.

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Speaker 1: Yeah. I love that, you Off, because that's how everyone

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Speaker 1: thinks of him. Now he's done other great stuff too,

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Speaker 1: beyond just Ron Swanson and part.

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Speaker 2: He will always be known though. Yeah, I'm playing that role.

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Speaker 1: He was great in that that one episode of the

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Speaker 1: Last of Us. I mean he's done a lot of

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Speaker 1: good stuff. Oh that's right, Yeah, fantastic. Yeah. Well, and

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Speaker 1: I gotta say, Justin's calling from Oklahoma. We actually have

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Speaker 1: two listeners from Oklahoma on this episode, and it makes

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Speaker 1: me think of one of my favorite artists I've been

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Speaker 1: listening to a whole lot lately, Zack Bryan from Oklahoma. Dude. Yeah, okay, yeah,

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Speaker 1: I'll give him music wreck here, I'm not I'm not

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Speaker 1: afraid if you like kinda Brian kind of sounds like country.

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Speaker 1: It's like indie country for sure. So yeah, if you

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Speaker 1: like that, col I like the I don't like the

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Speaker 1: radio country. But if you like indie sort of country,

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Speaker 1: then Zack Bryan's for you. You don't like it to be

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Speaker 1: too polished, right exactly, Or I don't want to think

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Speaker 1: about pontoon boats like that's just.

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Speaker 2: But pontoon boats and boots and right and the dog

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Speaker 2: that where you put them and yeah, that kind of stuff.

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Speaker 1: I don't care about that. Suff But first off, justin

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Speaker 1: we are rooting for you, man, I mean, I think

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Speaker 1: it's important to mention. First off, there's a difference between

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Speaker 1: side gigs and starting your own business. That difference is stark.

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Speaker 1: A side hustle can help you snag cash in return

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Speaker 1: for your time. Think of this as driving for Uber

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Speaker 1: something like that probably the most significant well known side

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Speaker 1: hustle out there.

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Speaker 2: Right Typically where beholding to a specific platform who could

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Speaker 2: on a whim change the rules of the game.

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Speaker 1: Starting this business that you're looking to start right now,

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Speaker 1: it might not be immediately lucrative, whereas with Uber, you

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Speaker 1: can turn on this bigot right away. You might not

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Speaker 1: make a ton, but you can start making money right now.

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Speaker 1: The truth is, though, that you're far more likely to

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Speaker 1: be able to turn this effort the one to start

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Speaker 1: this business instead of going with a side hustle into

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Speaker 1: a recurring and sustainable income. Right, And some gigs make

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Speaker 1: sense sometimes, but building a business is a better long

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Speaker 1: term proposition. That's what we want to encourage people to

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Speaker 1: go in that direction. And it sounds like you're taking

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Speaker 1: the right approach. Yeah.

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Speaker 2: Yeah, We actually dedicated an entire episode to this very topic,

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Speaker 2: the difference between side gigs, side hustles and what would

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Speaker 2: eventually be able to become a business, something that you're

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Speaker 2: able to run yourself.

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Speaker 1: Will make sure to link to that way. Well, that's

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Speaker 1: that's really difference between gig, a gig, and a side hustle.

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Speaker 1: I think a side hustle ability that you're looking to

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Speaker 1: turn into a full fledged business and it might take

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Speaker 1: a while and you might not be making any money

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Speaker 1: for a minute while you're doing.

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Speaker 2: It, whereas like the different gig apps, those are the

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Speaker 2: end in and of themselves. Yeah, and they're not a

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Speaker 2: great end that's right for most people. Yeah, so justin

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Speaker 2: let's talk about building out that shop. Let's talk about

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Speaker 2: how you can go about it. We are all about

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Speaker 2: investing your in yourself in this future business, which can

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Speaker 2: pay some massive dividends right often bigger ones than just

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Speaker 2: simply investing in the market. Focusing on your own personal development.

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Speaker 2: This can just lead to higher earnings, it can lead

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Speaker 2: to better career prospects. But do you need this tricked

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Speaker 2: out shop at which shop? In order to get the

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Speaker 2: side hustle off the ground?

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Speaker 1: Do you have to have exhibit being proud of your

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Speaker 1: shop in order for it to be you know enough

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Speaker 1: for you to do what you need to do in it.

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Speaker 2: And then on top of that, should you tap your

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Speaker 2: retirement savings, specifically your TSP in order to pull this off?

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Speaker 1: We would definitely say.

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Speaker 2: No to the latter. Tapping retirement funds. It's rarely a

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Speaker 2: good idea because you're going to be paying tax on

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Speaker 2: the amount that you're going to be withdrawing at your

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Speaker 2: income level, at your income bracket, plus a ten percent penalty,

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Speaker 2: which is in our opinion, too stiff of a punishment

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Speaker 2: for you to take. And by the way, TSPs are

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Speaker 2: thrift savings plans. Which are essentially government for one case,

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Speaker 2: they've got the same withdrawal rules and limitations and whatnot.

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Speaker 2: They're just yeah, four one k's for government workers with

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Speaker 2: them being working for the post office.

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Speaker 1: That's how he has that ts Because of course, it

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Speaker 1: can't be simple. We can't just have like one plan

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Speaker 1: all the way across. We have to have a bunch

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Speaker 1: of different alpha alphabet soups worth of plans. That's just

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Speaker 1: how we roll with the best country. Hey, I like thrift.

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Speaker 2: It's got the word thrift in it, which makes me happy. Well,

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Speaker 2: by the way, I like thrift savings plan better than

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Speaker 2: four to one k.

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Speaker 1: Do you think most of our listeners got that exhibit reference?

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Speaker 1: Do you think they watched to pit my ride back

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Speaker 1: in the day. I'm gonna get fifty to fifty That

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Speaker 1: was a cultural phenomenon back in the day. But if

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Speaker 1: you didn't back, you're in the trunk. I got a

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Speaker 1: fish take it. It was pretty great. Yeah's awesome. All right. Well,

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Speaker 1: here's the thing plus on top of that, you don't

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Speaker 1: have those dollars working for your future, right if you

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Speaker 1: opt to take that money out talking about your actual

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Speaker 1: retirement dollars, Yeah, build out that place for you to work.

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Speaker 1: Buil out the workshop. You're not only paying tax and penalty,

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Speaker 1: you're also saying, Hey, all these twenty seven thousand dollars

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Speaker 1: that I've essentially pigeonholed for my future that's going to

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Speaker 1: build and grow, Well, it's no longer doing that. So

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Speaker 1: it's a double whammy. You'd really be starting from scratch.

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Speaker 1: Then when it came to retirement savings, which is not

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Speaker 1: a place we want you to find yourself, it's a

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Speaker 1: better idea to reduce your contributions moving forward so you

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Speaker 1: can build up a shop, renovation, nest egg more quickly. Right,

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Speaker 1: instead of taking the money out, just put less money

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Speaker 1: in and do that bootstrap method you were kind of

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Speaker 1: talking about, Like, we'll try to help you think outside

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Speaker 1: of the box too. Could you maybe continue using that

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Speaker 1: garage if you put insulation in it and used a

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Speaker 1: portable HVAC. I think both of those things combined would

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Speaker 1: cost you something like a thousand bucks, plus there's a

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Speaker 1: federal tax credit for putting in that insulation. Makes me

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Speaker 1: think about we just kind of did some things to

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Speaker 1: our sunroom. We insulated it. It was just like a

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Speaker 1: room where you couldn't hang out the summer in the

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Speaker 1: winter and how you can And so just a thirty

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Speaker 1: percent off that johnk Right's right insulation in a mini

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Speaker 1: split which come with federal tax rebates, and it was

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Speaker 1: pretty inexpensive overall, and it made that room far more livable.

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Speaker 1: And so it doesn't necessarily solve the problem of your

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Speaker 1: wife wanting her garage back. It's not perfect, but it

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Speaker 1: cannot solve that problem. No, no, I don't know that

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Speaker 1: we can solve at all. But it gives you a

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Speaker 1: more comfortable place to work at least while you're trying

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Speaker 1: to see if it's going to make sense to go

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Speaker 1: in this direction full time or not. That's right.

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Speaker 2: Yeah, so don't dig into your retirement dollars. And in

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Speaker 2: regards to financing, you also mentioned cash out refinances there

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Speaker 2: on your home. Kind of depends on your current rate,

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Speaker 2: but probably not. This is probably not an option that

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Speaker 2: we would recommend as well, because you're likely giving up

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Speaker 2: an incredible fixed rate.

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Speaker 1: In order to do that cash out reformentioned closing costs.

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Speaker 2: Yeah, a helock, that's a maybe if you've got a

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Speaker 2: plan to pay it back quickly. But then again, you

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Speaker 2: mentioned bootstrapping there at the end, and that is, honestly,

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Speaker 2: I think, going to be the best way to go

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Speaker 2: about this, especially let's say this small business venture doesn't

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Speaker 2: quite take off like you thought it would. Obviously hopefully

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Speaker 2: that that's not the case. Again, we're rooting for you.

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Speaker 2: We want this to work, but we don't want you

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Speaker 2: to be left in the lurch. Basically at the end

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Speaker 2: of the day, we don't want you to not only

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Speaker 2: have no savings, but even no money invested for your

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Speaker 2: future with the workshop, a nice workshop that that isn't

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Speaker 2: producing the revenue that you hope for. You know, you

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Speaker 2: really want to achieve like a proof of concept before

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Speaker 2: pouring even more money into creating a nicer space, which

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Speaker 2: it sounds like you might be able to do because

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Speaker 2: it sounds like this is something you're already pursuing. But

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Speaker 2: I think finding a way for you to gradually ramp

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Speaker 2: up this side hustle into like a legitimate business, that

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Speaker 2: that is the best way forward.

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Speaker 1: It makes you think of when we were starting the podcast,

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Speaker 1: Matt and we were nobody nowhere, nobody, We had no

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Speaker 1: listeners for the first few episodes, and there was there's

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Speaker 1: a big hill to climb. But what if we had

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Speaker 1: said let's build out this sweet podcast studio, hoping that

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Speaker 1: we're going to be successful in this business. Well, we

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Speaker 1: needed some sort of proof of concepts, some sort of

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Speaker 1: like listenership revenue in order to justify sinking more mone

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Speaker 1: the end of the business. And so we needed a

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Speaker 1: bare minimum recording at your dining room table to get

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Speaker 1: off the ground and occasionally your dining room table. Yeah,

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Speaker 1: but beyond that, we tried to keep it, you know,

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Speaker 1: keep it cheap. Yeah.

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Speaker 2: I mean we literally borrowed gear the cheapest what is it,

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Speaker 2: the sure sight, it's the ubiquitous universal mic that you

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Speaker 2: see everywhere. We didn't like, what are the like we've

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Speaker 2: I don't even.

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Speaker 1: Know what these are. Seven So now the seven bees,

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Speaker 1: four hundred.

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Speaker 2: These are nice mics, but we didn't even get these

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Speaker 2: until like two years ago something like that. We did

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Speaker 2: not and we just continue to use our old microphones.

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Speaker 2: Obviously these are nicer and they certainly benefit the podcast.

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Speaker 2: But that was after we had been you know, certainly

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Speaker 2: showing that Okay, this is something that's actually earning money,

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Speaker 2: it's not necessarily just a hobby.

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Speaker 1: Yeah, And let me just mention this one last thing.

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Speaker 1: Justin mentioned crowd funny. He said that what if I like,

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Speaker 1: take to the streets, or take to the internet, take

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Speaker 1: to Facebook, and see if other people want to help

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Speaker 1: fund my venture. I'd say one of the best ways

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Speaker 1: to get the funds to do the build out would

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Speaker 1: be to pre sell some items that you're planning on making.

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Speaker 1: Could you get the word out and start taking orders now,

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Speaker 1: instead of thinking you have like furnished the showroom and

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Speaker 1: before you start making sales, think about it the other way.

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Speaker 1: You can say, hey, listen, I'm making all this cool stuff.

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Speaker 1: Here is here are a couple examples of what it's

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Speaker 1: going to look like. Can I make you a custom

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Speaker 1: bench for your front porch or swing for your front porch,

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Speaker 1: whatever it is that you're making and show people a

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Speaker 1: proof of concept and then take orders, get those orders

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Speaker 1: pre funded, essentially have people pay in advance, and that

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Speaker 1: hopefully helps you go down the path without begging for money,

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Speaker 1: which I think is some crowdfunding kind of like that, like,

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Speaker 1: can you help me do this even though I'm not

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Speaker 1: giving you anything in return? Like that's how some of

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Speaker 1: the crowdfunding things feel to me.

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Speaker 2: Sure, So I was talking about ensuring that this just

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Speaker 2: doesn't become a hobby. There's nothing wrong with hobbies. Sure,

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Speaker 2: there's nothing wrong with pouring money into hobbies, but really

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Speaker 2: really expensive hobbies that you justify and kind of call

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Speaker 2: a business in your mind, that's what we want you

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Speaker 2: to avoid. And so I think to that end, maybe

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Speaker 2: what this takes is just being slightly more organized with

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Speaker 2: your finances. Again, I'm not saying that you're not, but

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Speaker 2: if you have currently maybe because he said he goes

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Speaker 2: out in the ground, you know, out there and make stuff,

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Speaker 2: So maybe he is making some stuff and he's selling

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Speaker 2: some stuff. But maybe what it takes is opening an

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Speaker 2: actual business, a checking account, and keeping those finances separate,

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Speaker 2: because then you can start to quantify and show that like, okay, sweet,

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Speaker 2: I'm actually generating revenue as opposed to maybe just absorbing

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Speaker 2: some of those dollars into your general monthly budget, right,

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Speaker 2: and also absorbing some of those expenses that maybe perhaps

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Speaker 2: even more than what you're generating. But I think having

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Speaker 2: that delineated and separated will allow you to and it's

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Speaker 2: like fuel on the fire to get you producing more,

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Speaker 2: creating an excellent product, getting it out there, marketing it.

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Speaker 2: In order for you to know that the light at

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Speaker 2: the end of the tunnel is to have enough on hand,

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Speaker 2: Like Joll said, maybe at first to insulate, get the

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Speaker 2: HVA like a little portable air conditioning thing out there.

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Speaker 2: But then beyond that, okay, get a fairly comfortable space.

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Speaker 2: Next let's make let's get I don't know, twenty thirty

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Speaker 2: thousand dollars up that way we can I can get

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Speaker 2: a slab poored, a nice big garage, big workshop. I

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Speaker 2: think maybe if you start treating this more like an

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Speaker 2: official business and jumping through some of the hoops that

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Speaker 2: go with getting an EI in the employee identification number,

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Speaker 2: just some of the more official things, that might change

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Speaker 2: how it is that you are viewing viewing the side

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Speaker 2: hustle as well.

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Speaker 1: Yeah, And I think one episode I would recommend you

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Speaker 1: go back and listen to Justin is episode two forty

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Speaker 1: seven that we did with Alan Donegan, and that whole

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Speaker 1: episode was about starting the business with zero dollars and

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Speaker 1: he was really creative, I think in a lot of

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Speaker 1: ways that he approached helping other people start a business.

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Speaker 1: He runs something called I think business school startup and

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Speaker 1: like that. So yeah, Alan Rox and his motto is

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Speaker 1: fail fast and fail cheap, which I think is a

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Speaker 1: good one, right to keep in mind as you're getting

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Speaker 1: this off the ground. Start that business, yes, but find

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Speaker 1: creative ways to keep your retirement intact and keep your

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Speaker 1: debt to a minimum while you're doing so. You'll be

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Speaker 1: glad you did, especially once money starts coming in. That's

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Speaker 1: profit that's not coming just to pay down the debt

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Speaker 1: you took out. So I think if you start in

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Speaker 1: a way that is, like you said, bootstrapping, and I

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Speaker 1: think that is the best way to go for your

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Speaker 1: personal finances, and it's going to make you think about

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Speaker 1: how you go about doing this business thing more intentionally. Yeah, totally. Yeah.

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Speaker 2: So I just thought of another little side thing. There's

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Speaker 2: a or at least in town, there was a woodworking

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Speaker 2: shop they're building out furniture for different restaurants and breweries

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Speaker 2: and whatnot, and they would they had like a burn

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Speaker 2: like a stamp that they stuck on their tables, and

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Speaker 2: that was a way that anybody and everybody that went

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Speaker 2: to that brewery saw that stamp there on the table.

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Speaker 2: And so maybe that's a way to offer a discount

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Speaker 2: and just like, hey, I'm willing to do this for you.

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Speaker 2: Normally I would charge this, but if you let me

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Speaker 2: put my business name or my logo or something like

434
00:18:35,359 --> 00:18:36,639
Speaker 2: that on there, that might be a way for you

435
00:18:36,720 --> 00:18:39,359
Speaker 2: to start spreading the word a little more quickly. That way,

436
00:18:39,400 --> 00:18:41,040
Speaker 2: you're able to ramp up more quickly, you're able to

437
00:18:41,080 --> 00:18:42,840
Speaker 2: quit scale more quickly as well.

438
00:18:42,840 --> 00:18:45,120
Speaker 1: One other thought, what about renting someone else's space who

439
00:18:45,160 --> 00:18:47,760
Speaker 1: already does it? Maybe they work Monday through Friday, and

440
00:18:47,760 --> 00:18:50,119
Speaker 1: you say, hey, can I rent your space on Saturdays

441
00:18:50,160 --> 00:18:52,160
Speaker 1: for this amount of money. I don't know that there's

442
00:18:52,200 --> 00:18:54,199
Speaker 1: all sorts of ways to skin the cat. Maybe what

443
00:18:54,880 --> 00:18:58,479
Speaker 1: just going to the most expensive option, which is folding

444
00:18:58,520 --> 00:19:00,800
Speaker 1: a new workshop that's in that he didn't cold and

445
00:19:00,800 --> 00:19:03,439
Speaker 1: all that stuff. That's probably a one step two far

446
00:19:03,440 --> 00:19:04,240
Speaker 1: at this point in the game.

447
00:19:04,440 --> 00:19:06,280
Speaker 2: That's right, Yeah, I couldn't agree more. All right, we've

448
00:19:06,320 --> 00:19:09,760
Speaker 2: got more questions to get to, including the luxury sports

449
00:19:09,760 --> 00:19:12,720
Speaker 2: car question. We'll get to that plus others right after this.

450
00:19:22,160 --> 00:19:24,040
Speaker 1: All right, Matt, let's keep going. We've got more listener

451
00:19:24,119 --> 00:19:26,920
Speaker 1: questions to get to. It always warms my heart when

452
00:19:26,960 --> 00:19:30,800
Speaker 1: we get questions from teenage listeners. We got another one here.

453
00:19:31,119 --> 00:19:34,520
Speaker 5: Hi. My name is Amerius. I am sixteen years old

454
00:19:34,560 --> 00:19:35,720
Speaker 5: and living in Ontario.

455
00:19:35,840 --> 00:19:36,240
Speaker 3: Canada.

456
00:19:36,680 --> 00:19:39,119
Speaker 5: I listened to your podcasts all the time, and today

457
00:19:39,160 --> 00:19:41,720
Speaker 5: a question popped into my head while I was listening

458
00:19:42,000 --> 00:19:46,000
Speaker 5: to the ninth episode, Retirement investing is simpler than you think.

459
00:19:46,400 --> 00:19:49,200
Speaker 5: My question is can I still earn money and possibly

460
00:19:49,200 --> 00:19:51,920
Speaker 5: have a head start in managing it at even an

461
00:19:51,920 --> 00:19:55,359
Speaker 5: early age. My worst fear is to be financially struggling,

462
00:19:55,440 --> 00:19:57,880
Speaker 5: whether it that's because I don't have good money management

463
00:19:57,920 --> 00:20:01,000
Speaker 5: skills or because I don't have enough money for retirement

464
00:20:01,040 --> 00:20:03,919
Speaker 5: and work till I'm dead. So I was wondering if

465
00:20:03,960 --> 00:20:06,040
Speaker 5: you could talk about how I could start managing my

466
00:20:06,119 --> 00:20:09,160
Speaker 5: money as early as possible so I can have experience

467
00:20:09,200 --> 00:20:11,399
Speaker 5: from when I'm older and also kind of have a

468
00:20:11,800 --> 00:20:14,560
Speaker 5: head to start with retirement and such. If you have

469
00:20:14,600 --> 00:20:16,920
Speaker 5: any advice, be as brutal as you want. I am

470
00:20:16,960 --> 00:20:19,719
Speaker 5: always open to honesty and you guys are great at that.

471
00:20:19,720 --> 00:20:21,560
Speaker 5: That's a great week, and thank you for your time.

472
00:20:22,200 --> 00:20:23,119
Speaker 1: That's two weeks in a row.

473
00:20:23,160 --> 00:20:27,280
Speaker 2: Now that we've heard from somebody younger from Canada, did

474
00:20:27,280 --> 00:20:28,879
Speaker 2: you do some sort of like Canadian marketing?

475
00:20:29,280 --> 00:20:29,399
Speaker 6: Uh?

476
00:20:30,240 --> 00:20:33,240
Speaker 1: Planned out iodates and Facebook targeted ads? Hey straight to

477
00:20:33,640 --> 00:20:36,639
Speaker 1: I like it. Anybody who likes hockey and maple syrup.

478
00:20:37,960 --> 00:20:40,280
Speaker 2: It might be an over genitalization of Maris. I hope

479
00:20:40,280 --> 00:20:42,640
Speaker 2: you're not offended at Joel. It is Joel who said

480
00:20:42,640 --> 00:20:45,760
Speaker 2: that about it this time. Yeah, I do cringe honestly

481
00:20:45,800 --> 00:20:47,960
Speaker 2: thinking about some of those older episodes that are still

482
00:20:48,040 --> 00:20:52,480
Speaker 2: up and available for listening. But Ameris, I am incredibly

483
00:20:52,560 --> 00:20:55,159
Speaker 2: impressed that not only are you listening to the podcast,

484
00:20:55,240 --> 00:20:57,640
Speaker 2: you have reached out and now we're answering your question.

485
00:20:57,960 --> 00:20:59,399
Speaker 2: We're getting to you and hopefully we can help you

486
00:20:59,400 --> 00:21:02,360
Speaker 2: out here. But you just have it's amazing that you've

487
00:21:02,359 --> 00:21:04,560
Speaker 2: got like this desire, that you've got the maturity to

488
00:21:04,800 --> 00:21:06,920
Speaker 2: achieve some of these goals, some of these financial goals

489
00:21:07,000 --> 00:21:09,680
Speaker 2: at such a young age. It's just crazy impressive.

490
00:21:09,720 --> 00:21:10,520
Speaker 1: And well, there we are.

491
00:21:10,560 --> 00:21:12,720
Speaker 2: Best to tell you what we would have told ourselves

492
00:21:12,760 --> 00:21:14,760
Speaker 2: at your age, because I think I speak for both

493
00:21:14,800 --> 00:21:17,480
Speaker 2: of the jol that we were both pretty dumb at either.

494
00:21:17,400 --> 00:21:22,240
Speaker 1: Year sage of sixteen. I did not know anything about

495
00:21:22,359 --> 00:21:24,439
Speaker 1: anything at that point in time, much less money and investment.

496
00:21:24,600 --> 00:21:28,320
Speaker 1: So like some of it I knew, but even still no,

497
00:21:28,680 --> 00:21:29,040
Speaker 1: I didn't.

498
00:21:29,520 --> 00:21:31,880
Speaker 2: It didn't change how I acted because I'm like, well,

499
00:21:31,880 --> 00:21:33,520
Speaker 2: I know what I'm supposed to do or what I

500
00:21:33,560 --> 00:21:36,399
Speaker 2: should be interested in. But the fact is, I think

501
00:21:36,480 --> 00:21:39,719
Speaker 2: Emeris is she has the knowledge, but she's also got

502
00:21:39,760 --> 00:21:42,320
Speaker 2: the desire and like the willpower to actually see it through.

503
00:21:42,600 --> 00:21:44,880
Speaker 2: To me, that's more impressive than just having the information.

504
00:21:44,960 --> 00:21:46,960
Speaker 1: Yeah, I know, it's a potent combo for sure, And

505
00:21:47,080 --> 00:21:49,080
Speaker 1: so yeah, let's talk about what Ameris needs to know

506
00:21:49,240 --> 00:21:52,320
Speaker 1: so she can get where she wants to go. And first, Ameres,

507
00:21:52,520 --> 00:21:54,400
Speaker 1: the first encouragement we would give you is to become

508
00:21:54,440 --> 00:21:57,240
Speaker 1: a lifelong learner. You're already doing this, right. You're listening

509
00:21:57,320 --> 00:22:01,639
Speaker 1: to personal finance podcasts when most your friends are probably not.

510
00:22:01,800 --> 00:22:01,919
Speaker 3: Right.

511
00:22:02,000 --> 00:22:04,320
Speaker 1: I can't imagine that most of your friends are listening

512
00:22:04,320 --> 00:22:05,960
Speaker 1: to how to Money or anything like that. They're probably

513
00:22:05,960 --> 00:22:08,080
Speaker 1: listening to some comedy podcast, which is great. There's some

514
00:22:08,160 --> 00:22:10,560
Speaker 1: great comedy podcasts out there. But if y'all are listening,

515
00:22:10,680 --> 00:22:12,840
Speaker 1: shout out to all of the Maris' friends, Yeah, exactly,

516
00:22:13,160 --> 00:22:16,200
Speaker 1: or to any teenagers out there. We love that you're again,

517
00:22:16,320 --> 00:22:17,800
Speaker 1: Matt and I. It's hard for us to imagine that

518
00:22:18,000 --> 00:22:20,080
Speaker 1: considering where we were at sixteen, Like we weren't thinking

519
00:22:20,119 --> 00:22:23,280
Speaker 1: about this stuff, and it's so encouraging to hear younger

520
00:22:23,320 --> 00:22:27,480
Speaker 1: folks actually listening to this stuff and caring. But everything

521
00:22:27,680 --> 00:22:30,560
Speaker 1: you're learning is giving you a leg up, and those

522
00:22:30,600 --> 00:22:33,200
Speaker 1: skills and lessons are going to compound in their effectiveness

523
00:22:33,560 --> 00:22:36,840
Speaker 1: over time. So like the average person, they really don't

524
00:22:36,840 --> 00:22:39,280
Speaker 1: start asking these questions until age forty, and then it

525
00:22:39,320 --> 00:22:41,880
Speaker 1: can feel like they're drinking from a fire hose. Our

526
00:22:41,920 --> 00:22:44,280
Speaker 1: brain loses plasticity right as we age. I was just

527
00:22:44,320 --> 00:22:47,159
Speaker 1: thinking about that the other day and how I'm just

528
00:22:47,480 --> 00:22:49,800
Speaker 1: my daughter is like better with technology than I am,

529
00:22:49,920 --> 00:22:51,840
Speaker 1: and she's ten. And so the I think the more

530
00:22:51,960 --> 00:22:54,360
Speaker 1: regularly you read, you listen, and you talk about these things,

531
00:22:54,400 --> 00:22:56,960
Speaker 1: the more curiosity you bring to the game right now,

532
00:22:57,320 --> 00:23:00,880
Speaker 1: the more you're gonna thrive. And so that involved continuing

533
00:23:00,920 --> 00:23:03,040
Speaker 1: to go down this path, continuing to listen, and continuing

534
00:23:03,080 --> 00:23:04,800
Speaker 1: to implement all along the way.

535
00:23:04,920 --> 00:23:07,200
Speaker 2: Yeah, I think this is a really important point. It

536
00:23:07,280 --> 00:23:09,000
Speaker 2: makes me think of something we just briefly mentioned in

537
00:23:09,080 --> 00:23:12,960
Speaker 2: response to Justin's question about investing in yourself, because it's

538
00:23:13,280 --> 00:23:16,399
Speaker 2: certainly tempting to hear about compounding returns, right, and then

539
00:23:16,600 --> 00:23:19,680
Speaker 2: you start shoveling as much money as possible into different

540
00:23:19,720 --> 00:23:23,360
Speaker 2: investment accounts. That being said, don't neglect to grow your

541
00:23:23,400 --> 00:23:26,359
Speaker 2: career prospects. Don't neglect to grow your income at the

542
00:23:26,440 --> 00:23:30,959
Speaker 2: same time, because that can have really far reaching impacts

543
00:23:31,160 --> 00:23:33,600
Speaker 2: allowing you to sock away more money over time. Right,

544
00:23:33,600 --> 00:23:36,320
Speaker 2: And it's not just about the here now. But again

545
00:23:36,400 --> 00:23:39,840
Speaker 2: going back to Justin, he's not just working on the

546
00:23:39,920 --> 00:23:41,600
Speaker 2: gig apps because he's looking to make a buck now.

547
00:23:41,680 --> 00:23:45,880
Speaker 2: He's looking at a larger time horizon, and we want

548
00:23:45,920 --> 00:23:47,560
Speaker 2: you to do that as well when it comes to

549
00:23:47,800 --> 00:23:50,680
Speaker 2: how it is that you're handling your money. Because a

550
00:23:50,760 --> 00:23:54,080
Speaker 2: high income it doesn't always lead to financial success, but

551
00:23:54,200 --> 00:23:57,639
Speaker 2: increasing your earning potential it's a really big part of

552
00:23:57,680 --> 00:24:01,719
Speaker 2: the equation. And yeah, but it also takes balance as well,

553
00:24:01,720 --> 00:24:04,440
Speaker 2: because I'm like, we're focusing on like financial success and

554
00:24:04,520 --> 00:24:08,480
Speaker 2: career success. But some other advice I wish I'd maybe

555
00:24:08,920 --> 00:24:11,400
Speaker 2: had as well is that, like I think you might

556
00:24:11,440 --> 00:24:13,439
Speaker 2: be hearing this, and again, it feels like you're kind

557
00:24:13,440 --> 00:24:15,200
Speaker 2: of getting the cheat code. You know how money works,

558
00:24:15,320 --> 00:24:18,440
Speaker 2: and if you go for that, like with like full bore,

559
00:24:18,840 --> 00:24:22,840
Speaker 2: you might neglect relationships, you might neglect hobbies like we're

560
00:24:22,880 --> 00:24:25,359
Speaker 2: talking about earlier, and we want you to have like

561
00:24:25,480 --> 00:24:28,560
Speaker 2: life success, not just financial and career success. So don't

562
00:24:28,600 --> 00:24:31,880
Speaker 2: forget about the things that interest you. Don't forget about

563
00:24:31,920 --> 00:24:35,320
Speaker 2: forget about your family, don't forget about like your physical

564
00:24:35,480 --> 00:24:37,760
Speaker 2: and your emotional health, like all the different aspects of

565
00:24:38,000 --> 00:24:41,520
Speaker 2: life that make it interesting. Because at the end of

566
00:24:41,520 --> 00:24:43,320
Speaker 2: the end of the day, if you're only focused on money,

567
00:24:43,760 --> 00:24:46,880
Speaker 2: and obviously that's we're all about. Focusing on money, that's

568
00:24:46,920 --> 00:24:48,520
Speaker 2: what we talk about here day in and day out.

569
00:24:48,560 --> 00:24:50,240
Speaker 2: But if that is all that you're thinking about and

570
00:24:50,280 --> 00:24:53,159
Speaker 2: you're not broadening that aperture to take in some of

571
00:24:53,240 --> 00:24:55,639
Speaker 2: the other things that make life awesome, well, at the

572
00:24:55,680 --> 00:24:56,959
Speaker 2: end of the day, you're not gonna have anything else.

573
00:24:57,280 --> 00:25:00,160
Speaker 2: You're just gonna have money, which is helpful, But need

574
00:25:00,200 --> 00:25:03,119
Speaker 2: to make sure that you are developing these other aspects.

575
00:25:02,760 --> 00:25:04,400
Speaker 1: Of your life as well, which is the main theme

576
00:25:04,440 --> 00:25:07,000
Speaker 1: throughout one of my favorite stories, a Christmas Carol. Right,

577
00:25:07,119 --> 00:25:10,120
Speaker 1: like Evanezer Scrooge. Sure he's got money, but he don't

578
00:25:10,119 --> 00:25:12,440
Speaker 1: have any in friends, and his family hates him, and

579
00:25:12,960 --> 00:25:15,719
Speaker 1: he doesn't care about people who are less fortunate than

580
00:25:15,760 --> 00:25:18,639
Speaker 1: he is. And so obviously the author, Charles Dickens, is

581
00:25:18,680 --> 00:25:20,040
Speaker 1: trying to tell us that this is no way to

582
00:25:20,080 --> 00:25:22,000
Speaker 1: live a life, and so yes, we want you to

583
00:25:22,119 --> 00:25:25,359
Speaker 1: learn how to make more money, how to invest and

584
00:25:25,440 --> 00:25:27,800
Speaker 1: save it. Well, but I think Matt, you're spot on.

585
00:25:27,880 --> 00:25:29,200
Speaker 1: You don't want to do it to the point where

586
00:25:29,640 --> 00:25:31,760
Speaker 1: you've given up other things that matter and make us

587
00:25:32,160 --> 00:25:36,119
Speaker 1: human and make life worth living. But another good idea

588
00:25:36,280 --> 00:25:37,720
Speaker 1: we would say is to keep your debt load to

589
00:25:37,760 --> 00:25:40,120
Speaker 1: a minimum because like let's say it's important as well. Yeah,

590
00:25:40,200 --> 00:25:42,119
Speaker 1: you have to use credit cards, which we're totally fine with.

591
00:25:42,240 --> 00:25:44,000
Speaker 1: We'll pay them off on time and in full every

592
00:25:44,040 --> 00:25:46,159
Speaker 1: single month, and then you know, set that payment to

593
00:25:46,160 --> 00:25:48,600
Speaker 1: auto pay maybe so you don't forget. Automating is a

594
00:25:48,680 --> 00:25:50,680
Speaker 1: really helpful thing to do. And from what we hear,

595
00:25:50,960 --> 00:25:53,280
Speaker 1: at least college is cheaper in Canada, which is great.

596
00:25:53,520 --> 00:25:55,920
Speaker 1: But if you opt to pursue a higher education, try

597
00:25:55,960 --> 00:25:58,800
Speaker 1: to minimize the death that you take on your early twenties.

598
00:25:58,840 --> 00:26:01,120
Speaker 1: Self will thank you just a few years down the road.

599
00:26:01,200 --> 00:26:03,359
Speaker 1: But man, keeping that debt to a minimum on the

600
00:26:03,400 --> 00:26:07,359
Speaker 1: front end will create less pain less difficulty for you

601
00:26:07,640 --> 00:26:09,280
Speaker 1: financially later in life. That's going to help you to

602
00:26:09,280 --> 00:26:11,560
Speaker 1: be able to stack away more money in those early

603
00:26:11,640 --> 00:26:14,760
Speaker 1: working years than your peers who have opted to take

604
00:26:14,800 --> 00:26:17,680
Speaker 1: on bigger debt burdens. So you're in this prime age

605
00:26:17,720 --> 00:26:19,679
Speaker 1: to be able to think about, well, how much am

606
00:26:19,720 --> 00:26:22,760
Speaker 1: I going to take on debt wise for school for

607
00:26:22,880 --> 00:26:24,959
Speaker 1: higher education? You might even say, guess what, I've got

608
00:26:25,000 --> 00:26:27,320
Speaker 1: these other interests to these entrepreneurial bents, and I don't

609
00:26:27,320 --> 00:26:30,280
Speaker 1: even know if college is for me, but yeah, it's

610
00:26:30,320 --> 00:26:34,040
Speaker 1: at least it's very much worth thinking about the value proposition,

611
00:26:34,200 --> 00:26:36,040
Speaker 1: how much you're likely to make based on the degree

612
00:26:36,119 --> 00:26:37,800
Speaker 1: you're getting, how much joy you're going to get from it,

613
00:26:37,960 --> 00:26:39,720
Speaker 1: and then also how you can limit the debt to

614
00:26:39,800 --> 00:26:40,399
Speaker 1: get that degree.

615
00:26:40,520 --> 00:26:43,000
Speaker 2: Totally Okay, So you just said a bunch there that

616
00:26:43,080 --> 00:26:44,719
Speaker 2: made me think of two additional things, all which are,

617
00:26:44,880 --> 00:26:47,719
Speaker 2: like you're talking about her peers who might be saddled

618
00:26:47,760 --> 00:26:50,920
Speaker 2: with college debt. The community that you surround yourself with.

619
00:26:51,000 --> 00:26:53,160
Speaker 2: I think that's really important as well, because I think

620
00:26:53,400 --> 00:26:57,120
Speaker 2: your friends can have just an outsized impact on your

621
00:26:57,520 --> 00:27:01,399
Speaker 2: financial and life trajectory, right cause, yeah, if you are

622
00:27:01,440 --> 00:27:04,760
Speaker 2: with a group of folks who seemingly are doing great

623
00:27:04,840 --> 00:27:06,680
Speaker 2: in school and they're all on the path to go

624
00:27:06,840 --> 00:27:10,120
Speaker 2: to prestigious colleges and whatnot, and that's just what you've

625
00:27:10,160 --> 00:27:11,959
Speaker 2: always been told, and you're going to apply to all

626
00:27:11,960 --> 00:27:14,120
Speaker 2: the best schools and no matter what, if you get accepted,

627
00:27:14,280 --> 00:27:17,440
Speaker 2: you gotta go, no matter the cost. As opposed to

628
00:27:17,560 --> 00:27:21,320
Speaker 2: maybe folks who are thinking slightly counter culturally and they're thinking, maybe,

629
00:27:21,440 --> 00:27:24,359
Speaker 2: like you said, more entrepreneurially, like what problems are out

630
00:27:24,359 --> 00:27:28,160
Speaker 2: in the world, What service or product could I provide

631
00:27:28,560 --> 00:27:32,359
Speaker 2: and solve this problem in creative manner? That's business right there. Like,

632
00:27:32,400 --> 00:27:33,960
Speaker 2: I think a lot of times folks here business and

633
00:27:34,000 --> 00:27:35,560
Speaker 2: they think of, oh, you got to go to business

634
00:27:35,560 --> 00:27:38,600
Speaker 2: school and you got to learn all this stuff. No, like,

635
00:27:38,640 --> 00:27:41,560
Speaker 2: there are ways to be in business that are as

636
00:27:41,560 --> 00:27:44,960
Speaker 2: simple as that, where you are just solving a very clear,

637
00:27:45,040 --> 00:27:48,440
Speaker 2: identifiable problem that population are really to pay for.

638
00:27:49,200 --> 00:27:49,400
Speaker 1: Yeah.

639
00:27:49,440 --> 00:27:52,320
Speaker 2: Absolutely, And along those lines as well as far as

640
00:27:52,400 --> 00:27:56,280
Speaker 2: college goes, I think more like the more the older

641
00:27:56,320 --> 00:27:58,439
Speaker 2: I get and the older my kids get, I am

642
00:27:59,280 --> 00:28:01,080
Speaker 2: I just really love the idea of a gap year.

643
00:28:01,480 --> 00:28:04,639
Speaker 2: And I think for thirteen, you know years, by the

644
00:28:04,680 --> 00:28:07,680
Speaker 2: time someone graduates as a senior, they've never made a

645
00:28:07,760 --> 00:28:09,639
Speaker 2: decision as to what they're going to do next, Like

646
00:28:09,720 --> 00:28:12,080
Speaker 2: what am I gonna do next year? Well, I don't know,

647
00:28:12,440 --> 00:28:14,320
Speaker 2: that's been Oh yeah, maybe that's because you didn't have

648
00:28:14,440 --> 00:28:17,080
Speaker 2: to decide. You just went from sixth grade to seventh grade. Right, Oh,

649
00:28:17,240 --> 00:28:19,120
Speaker 2: you just went from ninth grade to tenth grade. You're

650
00:28:19,160 --> 00:28:21,560
Speaker 2: on this track, this education track. And I think a

651
00:28:21,640 --> 00:28:23,240
Speaker 2: gap year can be so important when it comes to

652
00:28:23,480 --> 00:28:26,679
Speaker 2: pausing for a second and thinking what else does.

653
00:28:26,640 --> 00:28:27,360
Speaker 1: Life have to offer?

654
00:28:27,480 --> 00:28:30,159
Speaker 2: Like, how else are other people making a living? I

655
00:28:30,200 --> 00:28:32,560
Speaker 2: think that's one of the aspects of travel that's so

656
00:28:33,240 --> 00:28:35,840
Speaker 2: important and so valuable because you can see that, oh man,

657
00:28:35,840 --> 00:28:38,480
Speaker 2: there are people living all different sorts of ways that

658
00:28:38,640 --> 00:28:42,480
Speaker 2: don't necessarily involve going to four plus more years of college.

659
00:28:42,600 --> 00:28:45,600
Speaker 2: It can broads in order to make a living. So yeah,

660
00:28:45,640 --> 00:28:48,240
Speaker 2: I think I think the gap year taking even just

661
00:28:48,320 --> 00:28:50,520
Speaker 2: going like a tech getting a job, learning a trade,

662
00:28:50,680 --> 00:28:53,520
Speaker 2: doing something for a few months, can just be such

663
00:28:53,520 --> 00:28:56,880
Speaker 2: a good departure to hit pause on that education track.

664
00:28:56,960 --> 00:28:59,760
Speaker 2: And I'm a huge fan of higher education, but I

665
00:28:59,800 --> 00:29:04,160
Speaker 2: do think there are a lot of college attendees who

666
00:29:04,200 --> 00:29:06,960
Speaker 2: are there and when they haven't necessarily thought about why

667
00:29:07,040 --> 00:29:07,760
Speaker 2: they're there.

668
00:29:07,840 --> 00:29:09,480
Speaker 1: That's the gap year. That's what it's perfect for you,

669
00:29:09,600 --> 00:29:11,040
Speaker 1: helping you figure out whether or not that's the right

670
00:29:11,080 --> 00:29:12,400
Speaker 1: move for you. And I and I think it can

671
00:29:12,440 --> 00:29:14,200
Speaker 1: give you a renewed passion to go back to school,

672
00:29:14,200 --> 00:29:15,920
Speaker 1: like you have put more effort in it too. And

673
00:29:16,120 --> 00:29:18,120
Speaker 1: I thought that's how Emily has felt to going back

674
00:29:18,120 --> 00:29:20,360
Speaker 1: to grad school. Took a big, a big gap between

675
00:29:20,400 --> 00:29:22,880
Speaker 1: college and grad school, and now like there's a decade plus,

676
00:29:23,080 --> 00:29:25,480
Speaker 1: there's a difference in the gap decade. Yeah, there's. Yeah,

677
00:29:25,640 --> 00:29:27,760
Speaker 1: there's a difference in how she views the classes she's

678
00:29:27,760 --> 00:29:31,720
Speaker 1: taken then the early to mid twenty somethings, just because

679
00:29:31,760 --> 00:29:34,280
Speaker 1: I bet that time off and that passion has taken

680
00:29:34,320 --> 00:29:37,200
Speaker 1: time to build. But last thing, this is probably the

681
00:29:37,520 --> 00:29:39,840
Speaker 1: knee jerk response you'd hear from most personal finance podcast

682
00:29:40,000 --> 00:29:42,680
Speaker 1: is like stick money into tax advantage retirement accounts so

683
00:29:42,720 --> 00:29:45,200
Speaker 1: that you can you know, you're starting young, there's more

684
00:29:45,280 --> 00:29:48,520
Speaker 1: time for that money to grow and compound. And it

685
00:29:48,640 --> 00:29:51,240
Speaker 1: is true, like that is an important thing to mention here,

686
00:29:51,560 --> 00:29:53,600
Speaker 1: but I think I really think all of the other

687
00:29:53,680 --> 00:29:55,880
Speaker 1: things we've talked about are far more important than that,

688
00:29:56,240 --> 00:29:59,120
Speaker 1: because as you become a lifelong learner, as you hopefully

689
00:29:59,120 --> 00:30:01,760
Speaker 1: increase your income, you learn to live a life that

690
00:30:01,840 --> 00:30:04,680
Speaker 1: you want to live, you're going to you're going to

691
00:30:04,720 --> 00:30:07,760
Speaker 1: be funneling money in that direction, and so sure, yes,

692
00:30:07,920 --> 00:30:12,160
Speaker 1: please do be sticking money into those tax advantage retirement accounts.

693
00:30:12,200 --> 00:30:14,280
Speaker 1: I know in Canada they're different than they are here

694
00:30:14,320 --> 00:30:17,040
Speaker 1: in the States, say, have a similar alphabet soup of

695
00:30:17,400 --> 00:30:21,560
Speaker 1: retirement accounts available to them. But the earlier you get started, yes,

696
00:30:21,640 --> 00:30:23,240
Speaker 1: the better. But I would say, as long as you're

697
00:30:23,240 --> 00:30:27,880
Speaker 1: not neglecting to invest in future, you into your own endeavors.

698
00:30:27,920 --> 00:30:29,800
Speaker 1: Maybe that is. Oh man, I'm not going to put

699
00:30:29,880 --> 00:30:31,720
Speaker 1: money into a taxi avanage retirement out because I'm gon

700
00:30:31,800 --> 00:30:34,160
Speaker 1: travel on that gap year. That's a good decision because

701
00:30:34,160 --> 00:30:35,760
Speaker 1: you know what, You'll get a job and you'll be

702
00:30:35,760 --> 00:30:38,320
Speaker 1: able to start investing regularly right when you get that

703
00:30:38,400 --> 00:30:41,120
Speaker 1: first job. So definitely focus on that, make sure it's

704
00:30:41,160 --> 00:30:44,280
Speaker 1: a priority, but also don't let that be the main focus,

705
00:30:44,480 --> 00:30:46,560
Speaker 1: especially right now. That's right, Yeah, And you.

706
00:30:46,600 --> 00:30:48,280
Speaker 2: Knew that we were going to get to investing based

707
00:30:48,320 --> 00:30:50,960
Speaker 2: on the fact that you're talking the episode that you

708
00:30:51,040 --> 00:30:54,040
Speaker 2: were listening to was investing for retirement is easier than

709
00:30:54,040 --> 00:30:55,640
Speaker 2: you think. It truly is easier than you think. It's

710
00:30:55,680 --> 00:30:57,920
Speaker 2: just about getting that ball rolling at an early age

711
00:30:57,960 --> 00:31:00,520
Speaker 2: and those those returns are going to compound, which is

712
00:31:00,560 --> 00:31:02,480
Speaker 2: why we spent so much time talking about all of

713
00:31:02,520 --> 00:31:05,800
Speaker 2: the other non money things, right, which maybe you weren't

714
00:31:05,840 --> 00:31:08,320
Speaker 2: expecting and didn't want to hear. But we think personally

715
00:31:08,400 --> 00:31:10,640
Speaker 2: that they could be even more powerful. And it's our

716
00:31:10,640 --> 00:31:11,280
Speaker 2: show and we can.

717
00:31:11,200 --> 00:31:11,800
Speaker 1: Do what we want.

718
00:31:12,360 --> 00:31:14,120
Speaker 2: It's one of the things that you get to do.

719
00:31:14,520 --> 00:31:17,880
Speaker 2: Start thrown a business, Joel, Let's get to our next listener.

720
00:31:18,240 --> 00:31:21,959
Speaker 2: He has a question regarding his craft beer equivalent.

721
00:31:22,080 --> 00:31:25,680
Speaker 6: And Matt and Jewel. Dave from New Jersey moving to Pennsylvania.

722
00:31:26,360 --> 00:31:28,719
Speaker 6: Been a listener to the pod for about four years.

723
00:31:29,280 --> 00:31:32,520
Speaker 6: You guys are great, keep up the good work. So

724
00:31:32,600 --> 00:31:36,160
Speaker 6: I'm twenty six sales engineer, just moving in with my girlfriend,

725
00:31:36,200 --> 00:31:40,360
Speaker 6: moving to Pennsylvania. Actually so lower cross living. That's great.

726
00:31:40,960 --> 00:31:44,840
Speaker 6: Probably gonna get engaged by that ring in next six months,

727
00:31:45,240 --> 00:31:48,640
Speaker 6: less than a year. I have about eighty thousand saved

728
00:31:49,240 --> 00:31:51,920
Speaker 6: and in cash and one hundred thousand in retirement, so

729
00:31:51,960 --> 00:31:56,960
Speaker 6: I'm pretty well set up. And my question is should

730
00:31:56,960 --> 00:31:59,400
Speaker 6: I throw my money into the car loan, pay it

731
00:31:59,480 --> 00:32:02,040
Speaker 6: off and be financially free for that for a bit,

732
00:32:02,640 --> 00:32:05,680
Speaker 6: or should I keep just saving, paying it off and

733
00:32:06,640 --> 00:32:09,040
Speaker 6: go from there. The only question I asked is because

734
00:32:09,080 --> 00:32:11,160
Speaker 6: it's a twenty twenty two out of s four cert

735
00:32:11,200 --> 00:32:13,960
Speaker 6: if I pre owned car is great, got very low mileage,

736
00:32:14,640 --> 00:32:18,320
Speaker 6: and I'm really obsessed with alexisis five hundred five liters

737
00:32:18,400 --> 00:32:23,040
Speaker 6: V eight reworal drive, super reliable, super comfortable, and it's

738
00:32:23,080 --> 00:32:24,480
Speaker 6: kind of a car I would want to keep forever

739
00:32:24,560 --> 00:32:28,080
Speaker 6: because it's so unique. Hopefully it's also more of a

740
00:32:28,120 --> 00:32:31,280
Speaker 6: behavior than it is a financial problem, because I obviously

741
00:32:31,280 --> 00:32:34,160
Speaker 6: could afford the car. So my question to you guys

742
00:32:34,320 --> 00:32:37,200
Speaker 6: is from a financial perspective, should I pay off the

743
00:32:37,320 --> 00:32:42,440
Speaker 6: car and then personally develop some good habits of looking

744
00:32:42,440 --> 00:32:46,200
Speaker 6: at my line items, continuing to budget, maybe reduce some expenses,

745
00:32:46,360 --> 00:32:48,280
Speaker 6: or maybe you know, pay off the car, feel those

746
00:32:48,360 --> 00:32:51,000
Speaker 6: payments for a couple months, and then decide if I.

747
00:32:51,040 --> 00:32:51,760
Speaker 1: Want to get the car.

748
00:32:52,760 --> 00:32:55,160
Speaker 6: Thanks for early help and thanks for making the pod.

749
00:32:55,360 --> 00:32:59,920
Speaker 6: Hopefully you guys enjoy this question, as cars are definitely

750
00:33:00,000 --> 00:33:02,840
Speaker 6: anti finance, But let me know what you think. Thanks guys.

751
00:33:03,520 --> 00:33:06,120
Speaker 2: Dave Man, good luck on your move, and I think

752
00:33:06,400 --> 00:33:10,160
Speaker 2: and on that hopeful engagement. Yeah, I hope she says yes,

753
00:33:10,520 --> 00:33:11,160
Speaker 2: but don't.

754
00:33:11,200 --> 00:33:11,920
Speaker 1: Well, Okay, so.

755
00:33:12,040 --> 00:33:14,000
Speaker 2: Actually he was talking about how much cash he has

756
00:33:14,040 --> 00:33:16,720
Speaker 2: on hand. I was actually thinking, Oh no, I thought

757
00:33:16,760 --> 00:33:18,360
Speaker 2: he was about to ask how much of that eighty

758
00:33:18,480 --> 00:33:20,400
Speaker 2: thousand he should spend on a ring, and I was like,

759
00:33:21,080 --> 00:33:21,920
Speaker 2: there's too much money.

760
00:33:22,440 --> 00:33:24,160
Speaker 1: He gets like the direction he was going with it

761
00:33:24,400 --> 00:33:26,320
Speaker 1: was getting a little nervous. Then, Yeah, I'm trying to

762
00:33:26,320 --> 00:33:28,800
Speaker 1: remember how much I spent on my ring. Family. I

763
00:33:28,840 --> 00:33:31,680
Speaker 1: didn't spend that much. Yeah, no, definitely, not anywhere close

764
00:33:31,720 --> 00:33:34,120
Speaker 1: to that. But it's still a nice ring. She loves it.

765
00:33:34,480 --> 00:33:37,080
Speaker 1: But going anywhere with the lower cost of living, it's

766
00:33:37,080 --> 00:33:38,960
Speaker 1: always nice, and Matt, we've experienced a little bit of

767
00:33:39,000 --> 00:33:40,720
Speaker 1: that since moving up to the Burbs. That is a

768
00:33:40,800 --> 00:33:43,640
Speaker 1: nice by product. You don't necessarily move for lower taxers

769
00:33:43,720 --> 00:33:46,160
Speaker 1: or lower cost of living if you love where you live,

770
00:33:46,320 --> 00:33:48,720
Speaker 1: but that can be helpful. And there's just a lot

771
00:33:48,760 --> 00:33:51,000
Speaker 1: going on in this question. It sounds like cars are

772
00:33:51,400 --> 00:33:54,120
Speaker 1: Matt you alluded to this his craft beer equivalent. He

773
00:33:54,240 --> 00:33:57,280
Speaker 1: likes the expensive ones, which means, Dave, you gotta be

774
00:33:57,360 --> 00:34:00,360
Speaker 1: careful so you don't make some financially unsound moves just

775
00:34:00,440 --> 00:34:03,600
Speaker 1: because you've got an obsession and an expensive one of that.

776
00:34:03,800 --> 00:34:04,520
Speaker 1: That's true.

777
00:34:04,720 --> 00:34:08,359
Speaker 2: Yeah, and so Dave, you first asked about paying off

778
00:34:08,440 --> 00:34:11,680
Speaker 2: the current car loan, and that partly depends on the

779
00:34:11,760 --> 00:34:14,440
Speaker 2: interest rate that you have on that car. It sounds

780
00:34:14,520 --> 00:34:17,000
Speaker 2: like you do have the cash on hand in order

781
00:34:17,080 --> 00:34:18,560
Speaker 2: to pay that off, but if you have a rate

782
00:34:18,880 --> 00:34:21,799
Speaker 2: of around let's say four percent, but then let's say

783
00:34:21,840 --> 00:34:25,040
Speaker 2: that your cash is earning you five percent from a

784
00:34:25,120 --> 00:34:27,960
Speaker 2: number standpoint, there is no need to pay that thing off.

785
00:34:28,480 --> 00:34:31,160
Speaker 2: It's kind it's more of a mental thing, I guess.

786
00:34:31,560 --> 00:34:33,279
Speaker 2: And if you really want to get rid of it,

787
00:34:33,400 --> 00:34:35,799
Speaker 2: and you'd still have enough money set aside in your

788
00:34:35,840 --> 00:34:39,440
Speaker 2: emergency fund after paying off, you totally can. And at

789
00:34:39,480 --> 00:34:41,320
Speaker 2: this point it's just a personal decision that kind of

790
00:34:41,520 --> 00:34:43,200
Speaker 2: falls into a pretty.

791
00:34:42,960 --> 00:34:43,799
Speaker 1: Solid gray area.

792
00:34:43,840 --> 00:34:45,640
Speaker 2: But it also it also kind of depends on what

793
00:34:45,760 --> 00:34:48,960
Speaker 2: you're doing with that money, because in this case, it

794
00:34:49,040 --> 00:34:53,120
Speaker 2: sounds like, unfortunately, you're not thinking about maintaining that balance

795
00:34:53,680 --> 00:34:56,560
Speaker 2: within a high yield taving's account where you're out earning

796
00:34:56,719 --> 00:34:58,239
Speaker 2: what it is that you're paying an interest towards that car.

797
00:34:58,360 --> 00:35:00,080
Speaker 2: Note you're actually talking about spending.

798
00:34:59,800 --> 00:35:03,400
Speaker 1: It onward depreciating asset on another depreciating asset, which is

799
00:35:03,440 --> 00:35:05,040
Speaker 1: the part that makes you love, which is good, but

800
00:35:05,400 --> 00:35:07,640
Speaker 1: that's what makes me the most uncomfortable Okay, so let's

801
00:35:07,640 --> 00:35:10,440
Speaker 1: talk about transportation costs for a second, because Dave mentioned

802
00:35:10,480 --> 00:35:13,080
Speaker 1: in this question that cars are anti finance, which isn't

803
00:35:13,080 --> 00:35:14,879
Speaker 1: far from the truth, right, Yeah, if we're getting down

804
00:35:14,920 --> 00:35:17,880
Speaker 1: to brass tacks, the reality is that this is the

805
00:35:18,000 --> 00:35:20,640
Speaker 1: area where most people have the biggest ability to change

806
00:35:20,680 --> 00:35:23,680
Speaker 1: their financial lives, to change their future. The typical person

807
00:35:23,840 --> 00:35:26,400
Speaker 1: Matt thinks of buying a new car for fifty thousand dollars,

808
00:35:26,560 --> 00:35:28,640
Speaker 1: financing it for seven years and an interest rate of

809
00:35:28,800 --> 00:35:30,879
Speaker 1: nine percent or something like that is no big deal.

810
00:35:31,320 --> 00:35:34,120
Speaker 1: But living like a normal American is a bad idea,

811
00:35:34,239 --> 00:35:36,920
Speaker 1: and it is a big deal that the whole thrust

812
00:35:36,960 --> 00:35:38,800
Speaker 1: of the show is to get you to live in

813
00:35:38,880 --> 00:35:42,680
Speaker 1: a way that is not ordinary, that is hopefully extraordinary,

814
00:35:42,840 --> 00:35:46,000
Speaker 1: and that changes your financial stress levels and your ability

815
00:35:46,080 --> 00:35:49,040
Speaker 1: to achieve financial independence. And so changing just this one thing,

816
00:35:49,400 --> 00:35:51,080
Speaker 1: how much you spend on cars, is going to have

817
00:35:51,120 --> 00:35:54,000
Speaker 1: an incredible impact on your ability to save and invest

818
00:35:54,120 --> 00:35:55,040
Speaker 1: for the future. That's right.

819
00:35:55,080 --> 00:35:57,759
Speaker 2: So a quick example, because maybe some specific numbers would

820
00:35:57,840 --> 00:36:01,319
Speaker 2: actually help. The average monthly car payment today is seven

821
00:36:01,400 --> 00:36:04,680
Speaker 2: hundred and eighty nine dollars. And now if instead you

822
00:36:04,760 --> 00:36:06,560
Speaker 2: took that money, you took that seven hundred and eighty

823
00:36:06,640 --> 00:36:09,120
Speaker 2: nine bucks a month and instead you invested it for

824
00:36:09,280 --> 00:36:13,040
Speaker 2: forty years, you would have four point four million dollars.

825
00:36:13,160 --> 00:36:15,160
Speaker 1: We needed a drum roll for that because that's really

826
00:36:15,280 --> 00:36:17,360
Speaker 1: your point four million hard to have them like that

827
00:36:17,480 --> 00:36:20,360
Speaker 1: is so much money. It's a ton just by avoiding

828
00:36:20,400 --> 00:36:23,040
Speaker 1: on average returns that we've seen over the within the

829
00:36:23,120 --> 00:36:23,640
Speaker 1: stock market.

830
00:36:23,800 --> 00:36:25,279
Speaker 2: So I just wanted to put that out of because

831
00:36:25,280 --> 00:36:28,000
Speaker 2: that's a lot of money. And please in perspective we

832
00:36:28,000 --> 00:36:29,600
Speaker 2: will exactly. We want to put things in the right

833
00:36:29,640 --> 00:36:32,320
Speaker 2: perspective for you, because it's clear that you're not in

834
00:36:32,400 --> 00:36:35,480
Speaker 2: the boat of the average American. You are crushing it

835
00:36:35,520 --> 00:36:37,440
Speaker 2: when it comes to your finances. And so we bring

836
00:36:37,520 --> 00:36:39,600
Speaker 2: this up because it's helpful to think about the different

837
00:36:39,640 --> 00:36:41,120
Speaker 2: trade offs that you're going to be making if you

838
00:36:41,239 --> 00:36:44,640
Speaker 2: choose to own two really nice cars. Think about some

839
00:36:44,800 --> 00:36:47,240
Speaker 2: of the other things too, like secondary costs, like recurring costs,

840
00:36:47,880 --> 00:36:50,439
Speaker 2: and what other potential goals might you have to push

841
00:36:50,480 --> 00:36:54,480
Speaker 2: aside were you to, you know, splurge and get this

842
00:36:54,600 --> 00:36:58,040
Speaker 2: really expensive craft beer equivalent. So it's the decision only

843
00:36:58,120 --> 00:36:59,279
Speaker 2: you can make. We're not going to judge you.

844
00:36:59,320 --> 00:37:01,640
Speaker 1: Here kind of comes down to what it is that

845
00:37:02,000 --> 00:37:05,040
Speaker 1: you want to achieve in the next ten plus years.

846
00:37:05,280 --> 00:37:07,080
Speaker 1: I think this makes me think I'm just really glad

847
00:37:07,120 --> 00:37:08,680
Speaker 1: that I don't like cars and don't care about them

848
00:37:08,719 --> 00:37:11,040
Speaker 1: to that extent, because man, it really is an expensive hobby.

849
00:37:11,120 --> 00:37:14,000
Speaker 1: Certain certain hobbies are made more expensive than others, and

850
00:37:14,080 --> 00:37:15,719
Speaker 1: it's okay to have that hobby, but we just want

851
00:37:15,719 --> 00:37:17,759
Speaker 1: to make sure Dave, that you're doing it at doing

852
00:37:17,800 --> 00:37:19,560
Speaker 1: things in the right order. And so if you can

853
00:37:19,600 --> 00:37:22,760
Speaker 1: avoid car debt altogether and keep your car costs reasonable

854
00:37:22,800 --> 00:37:25,239
Speaker 1: as a percentage of your budget, all while saving and

855
00:37:25,360 --> 00:37:28,200
Speaker 1: investing for your future, planning and paying for that ring

856
00:37:28,280 --> 00:37:30,560
Speaker 1: and for that wedding, you might be able to afford

857
00:37:30,800 --> 00:37:33,480
Speaker 1: that other fancy car. But given the fact that you

858
00:37:33,560 --> 00:37:35,719
Speaker 1: have a car note currently and you're out of place

859
00:37:35,800 --> 00:37:38,360
Speaker 1: in time where every dollar matters, we would start saving

860
00:37:38,440 --> 00:37:40,560
Speaker 1: for that goal, but hold off on the actual purchase

861
00:37:40,840 --> 00:37:43,040
Speaker 1: for the time being, because you know, you said that

862
00:37:43,239 --> 00:37:45,880
Speaker 1: you can obviously afford the car, but that too is

863
00:37:45,920 --> 00:37:46,760
Speaker 1: in the eye of the beholder.

864
00:37:46,840 --> 00:37:46,920
Speaker 2: Right.

865
00:37:46,960 --> 00:37:49,640
Speaker 1: You hear the term house poor, people instinctively know what

866
00:37:49,719 --> 00:37:52,120
Speaker 1: that is. It's possible to be car poor too, And

867
00:37:53,360 --> 00:37:55,520
Speaker 1: I think again, you've done a better job saving and

868
00:37:55,560 --> 00:37:57,839
Speaker 1: investing than most people. But you might kind of fall

869
00:37:57,880 --> 00:38:00,160
Speaker 1: into that camp if you had two expensive rides like this,

870
00:38:00,560 --> 00:38:02,000
Speaker 1: And we don't want that for you. We want you

871
00:38:02,040 --> 00:38:03,920
Speaker 1: to build up your finances so that you can easily

872
00:38:04,040 --> 00:38:06,960
Speaker 1: afford that car splurge in the future where it's like

873
00:38:07,239 --> 00:38:09,839
Speaker 1: you know, and both of them pretty and clear. And yeah,

874
00:38:09,880 --> 00:38:13,359
Speaker 1: it's still an expensive endeavor, but it's not nearly as

875
00:38:13,440 --> 00:38:15,480
Speaker 1: expensive as it would be if you were getting rid

876
00:38:15,480 --> 00:38:17,480
Speaker 1: of all your cash, or if you were taking on

877
00:38:17,640 --> 00:38:19,960
Speaker 1: a boatload of debt or keeping expensive debt around.

878
00:38:20,120 --> 00:38:22,480
Speaker 2: Yeah, that's why, Okay, yeah, I mean the longer I

879
00:38:22,520 --> 00:38:24,400
Speaker 2: think about it, the more I think I would encourage him,

880
00:38:24,400 --> 00:38:27,160
Speaker 2: even if he does have a lower interest rate Carlin,

881
00:38:27,200 --> 00:38:28,400
Speaker 2: to go ahead and pay it off, because I think

882
00:38:28,400 --> 00:38:31,839
Speaker 2: it would just feel different. A he would have less

883
00:38:31,920 --> 00:38:34,600
Speaker 2: money in the bank because you know, like I think

884
00:38:34,840 --> 00:38:37,640
Speaker 2: he said, it's an audie. The audis are expensive, and

885
00:38:37,719 --> 00:38:39,520
Speaker 2: so he might have to pay right here, like twenty

886
00:38:39,560 --> 00:38:41,279
Speaker 2: five thousand just to pay that thing off. And so

887
00:38:41,320 --> 00:38:43,480
Speaker 2: you're talking about twenty five yo, maybe even more twenty

888
00:38:43,520 --> 00:38:45,680
Speaker 2: five k less in the bank. That might feel a

889
00:38:45,760 --> 00:38:49,920
Speaker 2: little different. And on top of that, just again. Yeah,

890
00:38:50,000 --> 00:38:51,680
Speaker 2: you mentioned some of the different life changes that he's

891
00:38:51,719 --> 00:38:55,560
Speaker 2: got coming up. I think saving up in advance. You know,

892
00:38:55,719 --> 00:38:58,200
Speaker 2: I may not have made that decision myself to spend

893
00:38:58,239 --> 00:39:00,160
Speaker 2: that much money on things, but sim will take.

894
00:39:00,480 --> 00:39:01,560
Speaker 1: I kind of did do that.

895
00:39:01,680 --> 00:39:03,239
Speaker 2: Like I think back to my history in my past,

896
00:39:03,440 --> 00:39:06,480
Speaker 2: I can easily put myself in Dave's shoes, Like I

897
00:39:07,239 --> 00:39:09,239
Speaker 2: was kind of like I had a.

898
00:39:09,360 --> 00:39:12,400
Speaker 1: Cool jeep Cherokee with a four leader or was it

899
00:39:12,440 --> 00:39:12,920
Speaker 1: a five leader?

900
00:39:12,920 --> 00:39:15,360
Speaker 2: I don't know, it was in line six, like my

901
00:39:15,480 --> 00:39:18,359
Speaker 2: next jeep, like I it was a V eight five

902
00:39:18,400 --> 00:39:20,239
Speaker 2: point two leader, Like I still remember these things because

903
00:39:20,239 --> 00:39:22,200
Speaker 2: I was into cars, Like I had a classic rain Drover.

904
00:39:22,719 --> 00:39:24,719
Speaker 2: I love those things. I didn't have them all the

905
00:39:24,760 --> 00:39:27,720
Speaker 2: same time. But today, what do I drive an eleven

906
00:39:27,800 --> 00:39:29,280
Speaker 2: year old Hana Minivan?

907
00:39:30,400 --> 00:39:30,960
Speaker 1: So I don't know.

908
00:39:31,080 --> 00:39:33,359
Speaker 2: I guess I want to put that perspective out there, Dave,

909
00:39:33,440 --> 00:39:36,640
Speaker 2: because I would hate for you to plunk down a

910
00:39:36,680 --> 00:39:38,680
Speaker 2: whole lot of money on something that you might feel

911
00:39:38,680 --> 00:39:42,200
Speaker 2: differently about in the future, because you even said, like,

912
00:39:42,360 --> 00:39:44,400
Speaker 2: hopefully this is a car that you might keep forever.

913
00:39:44,800 --> 00:39:47,279
Speaker 2: But man, if there's anything I've learned about myself at

914
00:39:47,360 --> 00:39:50,759
Speaker 2: least is that my tastes change. The things I'm interested in,

915
00:39:50,840 --> 00:39:54,600
Speaker 2: My priorities, they shift over time, and I would just

916
00:39:54,760 --> 00:39:56,440
Speaker 2: be cautious. That would be advice I would that I

917
00:39:56,440 --> 00:39:59,400
Speaker 2: would give anybody in their twenties. Just be cautious about

918
00:39:59,480 --> 00:40:02,879
Speaker 2: the thing that you're pursuing and how much money that it's.

919
00:40:02,800 --> 00:40:04,440
Speaker 1: Going to require of you. Yeah, try not to let

920
00:40:04,520 --> 00:40:06,799
Speaker 1: them disrupt your future. Even if it's something you want

921
00:40:06,840 --> 00:40:11,120
Speaker 1: to pursue, do it within health, healthy boundaries. Right, Yeah, Okay,

922
00:40:11,280 --> 00:40:13,840
Speaker 1: tell me about Matt. The engine on the Honda Odyssey

923
00:40:14,040 --> 00:40:16,840
Speaker 1: twenty thirteen. Is it turbo charged? How many leaders? I

924
00:40:16,840 --> 00:40:18,320
Speaker 1: don't know. I could I literally couldn't tell you.

925
00:40:18,440 --> 00:40:20,880
Speaker 2: Hemmy, I don't know anything about the engine and our

926
00:40:21,000 --> 00:40:23,120
Speaker 2: van now except that I know it's a V six yeah,

927
00:40:23,320 --> 00:40:25,600
Speaker 2: and that I get the little change because I want

928
00:40:25,640 --> 00:40:27,600
Speaker 2: that thing run in full. Ever, Man, we're at like

929
00:40:28,120 --> 00:40:30,200
Speaker 2: close to one hundred and sixty thousand miles now, I think.

930
00:40:30,080 --> 00:40:31,960
Speaker 1: Well, okay, we got more questions to get to on

931
00:40:32,040 --> 00:40:35,480
Speaker 1: this episode, Matt, including one about how accessible Roth funds

932
00:40:35,719 --> 00:40:37,839
Speaker 1: are for you if you want to retire early. We'll

933
00:40:37,880 --> 00:40:39,239
Speaker 1: get to that and more right after this.

934
00:40:48,800 --> 00:40:50,960
Speaker 2: All right, we are back we're taking two more questions,

935
00:40:51,040 --> 00:40:54,480
Speaker 2: and this specific question has to do with early retirement.

936
00:40:54,719 --> 00:40:56,080
Speaker 2: Let's get nerdy with it for a second.

937
00:40:56,440 --> 00:40:59,600
Speaker 7: Hey man, Joel, this is Nate from Oklahoma. I have

938
00:40:59,680 --> 00:41:03,759
Speaker 7: a question about a roth for one k conversion to

939
00:41:03,920 --> 00:41:09,239
Speaker 7: a roth ira conversion when it comes to laddering for retirement.

940
00:41:10,120 --> 00:41:13,960
Speaker 7: I see all sorts of articles around rolling over traditional

941
00:41:14,040 --> 00:41:17,280
Speaker 7: four one k into a traditional ra and then converting

942
00:41:17,320 --> 00:41:21,000
Speaker 7: it into a roth in the five year strategy. But

943
00:41:21,120 --> 00:41:24,320
Speaker 7: I don't see rolling over a roth four one k

944
00:41:24,440 --> 00:41:25,239
Speaker 7: into a roth ra.

945
00:41:25,960 --> 00:41:28,200
Speaker 3: So this is my question. My question is, when you

946
00:41:28,400 --> 00:41:30,799
Speaker 3: roll over a roth four one k into a roth ray?

947
00:41:31,360 --> 00:41:34,200
Speaker 3: Does the full amount that you roll over? Is that

948
00:41:34,360 --> 00:41:37,239
Speaker 3: something you can access before fifteen nine and a half?

949
00:41:37,960 --> 00:41:39,799
Speaker 3: Thanks guys, I appreciate it all.

950
00:41:39,760 --> 00:41:42,040
Speaker 1: Right, Matt. Now I'm thinking about my one of my

951
00:41:42,080 --> 00:41:44,480
Speaker 1: new favorite songs on the new Jason Isbel album called

952
00:41:44,480 --> 00:41:47,000
Speaker 1: The King of Oklahoma. There's a lot of Oklahoma references

953
00:41:47,080 --> 00:41:49,480
Speaker 1: in this one, but Oklahoma so hot these days. It's

954
00:41:49,520 --> 00:41:51,920
Speaker 1: such a good song, and you know what, Nate is

955
00:41:51,960 --> 00:41:54,320
Speaker 1: setting himself up to be the King of Oklahoma financially speaking.

956
00:41:54,760 --> 00:41:57,440
Speaker 1: Let's let's get to this question. Nate we're big fans

957
00:41:57,600 --> 00:41:59,520
Speaker 1: of roth money. We talked about that actually a couple

958
00:41:59,560 --> 00:42:02,400
Speaker 1: of weeks ago on a Friday flight. And the reasons

959
00:42:02,440 --> 00:42:07,320
Speaker 1: are that ROTH dollars are more flexible, and while contributing

960
00:42:07,360 --> 00:42:09,480
Speaker 1: to a roth ira or four to one k increases

961
00:42:09,520 --> 00:42:11,520
Speaker 1: what you're going to pay in taxes now, it makes

962
00:42:11,560 --> 00:42:13,040
Speaker 1: a lot of sense for a lot of folks from

963
00:42:13,040 --> 00:42:16,360
Speaker 1: a future tax rate and tax planning perspective. It sounds

964
00:42:16,400 --> 00:42:18,200
Speaker 1: like you have realized that, and that's kind of why

965
00:42:18,480 --> 00:42:20,680
Speaker 1: you're opting for the ROTH version of some of those

966
00:42:20,719 --> 00:42:22,279
Speaker 1: retirement accounts. That's right, yeah, Nate.

967
00:42:22,320 --> 00:42:25,680
Speaker 2: He also mentioned the five year rule, which basically means

968
00:42:25,719 --> 00:42:27,480
Speaker 2: that you can't take money out of a roth ira

969
00:42:27,640 --> 00:42:30,719
Speaker 2: unless that account's been in existence for at least five years.

970
00:42:31,320 --> 00:42:33,799
Speaker 2: And it doesn't actually matter how old you are, right

971
00:42:34,200 --> 00:42:36,399
Speaker 2: even if you are older than fifty nine and a half.

972
00:42:36,480 --> 00:42:38,440
Speaker 2: And so this is just another reason to open a

973
00:42:38,520 --> 00:42:40,680
Speaker 2: roth ira earlier in life. And you could be one

974
00:42:40,760 --> 00:42:42,120
Speaker 2: hundred and then be like, sorry, you gotta wait.

975
00:42:42,120 --> 00:42:46,839
Speaker 1: Tight even if you can only contribute a tiny little bit,

976
00:42:47,080 --> 00:42:48,760
Speaker 1: if you're rolling over those funds into.

977
00:42:48,600 --> 00:42:50,879
Speaker 2: A roth ira that you've had for a while. Though,

978
00:42:50,960 --> 00:42:54,080
Speaker 2: the four one K funds that you move over, they

979
00:42:54,120 --> 00:42:57,239
Speaker 2: get treated favorably. They're actually grandfathered in essentially, And so

980
00:42:57,360 --> 00:43:00,719
Speaker 2: that's not the case if you're opening a new wroth ira,

981
00:43:01,239 --> 00:43:03,000
Speaker 2: and Nate, you also might be referring to the five

982
00:43:03,080 --> 00:43:06,600
Speaker 2: year seasoning process of funds that you are able to

983
00:43:06,800 --> 00:43:09,880
Speaker 2: convert from a traditional four oh one K to a

984
00:43:10,000 --> 00:43:11,719
Speaker 2: roth ira as well, and so the way that works

985
00:43:11,760 --> 00:43:14,640
Speaker 2: for other folks who are less familiar with it. But basically,

986
00:43:14,800 --> 00:43:17,120
Speaker 2: that money that gets converted from a traditional four one K,

987
00:43:17,200 --> 00:43:19,120
Speaker 2: it's got to sit there for five years before you

988
00:43:19,160 --> 00:43:21,040
Speaker 2: can get your hands on it, even if that account

989
00:43:21,080 --> 00:43:23,200
Speaker 2: has been open more than five years.

990
00:43:23,320 --> 00:43:26,359
Speaker 1: Again, lots of rules here. Yeah, it comes to retirement account. Again,

991
00:43:26,360 --> 00:43:28,320
Speaker 1: we're getting rerdy with it. Sometimes it gets tricky. But

992
00:43:28,640 --> 00:43:30,640
Speaker 1: the heart of your question, Nate, is about whether or

993
00:43:30,640 --> 00:43:32,719
Speaker 1: not you can tap those funds before fifty nine and

994
00:43:32,760 --> 00:43:35,399
Speaker 1: a half, once they've settled into the roth ira, once

995
00:43:35,400 --> 00:43:37,560
Speaker 1: you've taken roth four o one K money and said no, no, no,

996
00:43:37,640 --> 00:43:40,200
Speaker 1: now it's roth Ira money. And so the thing is

997
00:43:40,280 --> 00:43:42,319
Speaker 1: that the money you roll over from your wroth fool

998
00:43:42,360 --> 00:43:45,520
Speaker 1: and k it actually retains the same properties and characteristics.

999
00:43:45,719 --> 00:43:48,160
Speaker 1: A helpful way to think about this is this is

1000
00:43:48,200 --> 00:43:50,080
Speaker 1: why it's called a Wroth four one K to roth

1001
00:43:50,080 --> 00:43:53,640
Speaker 1: Ira rollover because yeah, so actually he's it's it's interesting

1002
00:43:53,640 --> 00:43:56,239
Speaker 1: because in his question he called it a conversion. It's

1003
00:43:56,320 --> 00:43:59,839
Speaker 1: technically not a conversion. It's a rollover. It's still post tax.

1004
00:44:00,120 --> 00:44:02,560
Speaker 1: It's apples stapples instead of apples. Don't warn to exactly right. Yeah,

1005
00:44:02,600 --> 00:44:04,879
Speaker 1: but the good news is that any of your contributions

1006
00:44:05,000 --> 00:44:07,239
Speaker 1: made to the Wroth four oh one K, I can

1007
00:44:07,280 --> 00:44:08,920
Speaker 1: try to stay that clearly, the Wroth four one K

1008
00:44:09,120 --> 00:44:12,799
Speaker 1: those are actually they are accessible tax and penalty free

1009
00:44:13,239 --> 00:44:17,200
Speaker 1: once they have been rolled over into a roth Ira. Yeah.

1010
00:44:17,320 --> 00:44:19,600
Speaker 2: Okay, So it might be helpful to give another quick

1011
00:44:19,800 --> 00:44:22,239
Speaker 2: quick example here, And this is actually an illustration that

1012
00:44:22,320 --> 00:44:25,879
Speaker 2: our friend Sean mulaney. He's a CPA, he's a fee

1013
00:44:25,960 --> 00:44:29,719
Speaker 2: only fiduciary planner and a financial independence enthusiast. Yes he's

1014
00:44:29,800 --> 00:44:32,440
Speaker 2: he's given this examples, but with these specific numbers. So

1015
00:44:32,600 --> 00:44:34,719
Speaker 2: let's say you've got a Wroth four oh one K

1016
00:44:35,520 --> 00:44:37,840
Speaker 2: with one hundred thousand dollars in it, seventy thousand dollars

1017
00:44:37,880 --> 00:44:42,440
Speaker 2: as contributions, and thirty thousand dollars as earnings and when

1018
00:44:42,480 --> 00:44:45,120
Speaker 2: you roll over that Wroth four to one K into

1019
00:44:45,239 --> 00:44:48,799
Speaker 2: a wroth IRA, it maintains that same split. And since

1020
00:44:48,840 --> 00:44:52,520
Speaker 2: you're able to withdraw roth Ira contributions tax and penalty free,

1021
00:44:52,840 --> 00:44:55,560
Speaker 2: you now have access to those funds in quote unquote

1022
00:44:55,600 --> 00:44:59,360
Speaker 2: early retirement, the seventy thousand dollars specifically prior to the

1023
00:44:59,520 --> 00:45:02,400
Speaker 2: all importan fifty nine and a half age marker. And

1024
00:45:02,480 --> 00:45:04,880
Speaker 2: so it sounds like that this is what you're asking about,

1025
00:45:05,239 --> 00:45:07,640
Speaker 2: But it never hurts to check with the tax professional

1026
00:45:07,800 --> 00:45:11,960
Speaker 2: before making major changes because we don't give financial tax

1027
00:45:11,960 --> 00:45:14,600
Speaker 2: advice here. We are this is for entertainment purposes only.

1028
00:45:14,880 --> 00:45:17,520
Speaker 2: But if this was me, this is exactly how I

1029
00:45:17,560 --> 00:45:20,719
Speaker 2: would be approaching the situation with. If you're going back

1030
00:45:20,760 --> 00:45:24,680
Speaker 2: to a Roth conversion ladder right where you're converting four

1031
00:45:24,680 --> 00:45:27,239
Speaker 2: to one K funds into a wroth IRA. That's a

1032
00:45:27,280 --> 00:45:30,040
Speaker 2: conversion and that entire bucket, and I think that's what

1033
00:45:30,080 --> 00:45:33,120
Speaker 2: you're asking about. That entire bucket is accessible early after

1034
00:45:33,200 --> 00:45:35,640
Speaker 2: its seasons for five years. But since you're talking about

1035
00:45:35,680 --> 00:45:38,000
Speaker 2: the Wroth four one k, it's only the contributions that

1036
00:45:38,040 --> 00:45:39,680
Speaker 2: you make to that Roth four one K that you

1037
00:45:39,719 --> 00:45:40,399
Speaker 2: can tap early.

1038
00:45:40,600 --> 00:45:42,200
Speaker 1: Yeah, by the way if you need help doing that,

1039
00:45:42,320 --> 00:45:44,640
Speaker 1: Rollover Capitalizes a great company who can help you make

1040
00:45:44,680 --> 00:45:46,880
Speaker 1: it happen for free. They make it easy. We've got

1041
00:45:46,960 --> 00:45:48,520
Speaker 1: a review on the website that will link to and

1042
00:45:48,560 --> 00:45:50,040
Speaker 1: anybody else out there who's like I need to do

1043
00:45:50,160 --> 00:45:54,200
Speaker 1: a rollover or a conversion. Capitalized can help and they're

1044
00:45:54,239 --> 00:45:57,359
Speaker 1: pretty solid, so they're worth looking into. And Nate, good luck.

1045
00:45:57,480 --> 00:46:00,160
Speaker 1: Keep talking money away into those ROTH accounts. Future you

1046
00:46:00,520 --> 00:46:02,480
Speaker 1: is is going to be thankful, Matt. Let's get to

1047
00:46:02,520 --> 00:46:06,680
Speaker 1: our last question for this episode. This one is really

1048
00:46:06,760 --> 00:46:09,239
Speaker 1: coming from a guy who has done it all right,

1049
00:46:09,640 --> 00:46:11,239
Speaker 1: and it's an optimization play.

1050
00:46:12,040 --> 00:46:15,600
Speaker 8: Hey guys, my name's Kenton. I'm thirty eight from Ohio.

1051
00:46:16,200 --> 00:46:19,080
Speaker 8: My question is should I pay off my mortgage early

1052
00:46:19,360 --> 00:46:23,680
Speaker 8: or add to my investments with my extra money? Currently,

1053
00:46:23,760 --> 00:46:26,680
Speaker 8: I have one hundred and ninety thousand dollars in investments

1054
00:46:27,280 --> 00:46:30,239
Speaker 8: and I'm adding about twenty percent between my four to

1055
00:46:30,320 --> 00:46:33,279
Speaker 8: one k at work and a maxed out ROTH. My

1056
00:46:33,440 --> 00:46:38,279
Speaker 8: mortgage has sixty thousand left and seventeen years on a

1057
00:46:38,400 --> 00:46:41,720
Speaker 8: thirty year mortgage, which is four and a half percent.

1058
00:46:42,520 --> 00:46:45,520
Speaker 8: I'm fully funded for any other emergencies and have no

1059
00:46:45,680 --> 00:46:49,120
Speaker 8: other debts. I will have around twenty two hundred dollars

1060
00:46:49,160 --> 00:46:51,600
Speaker 8: a month to either a pay off my home in

1061
00:46:51,680 --> 00:46:54,480
Speaker 8: a little over two years or b add it to

1062
00:46:54,560 --> 00:46:57,680
Speaker 8: my other investments. I just don't know if one's better

1063
00:46:57,760 --> 00:47:01,239
Speaker 8: than the others. Curious what you guys think. You guys

1064
00:47:01,280 --> 00:47:03,560
Speaker 8: are awesome and keep up the great word.

1065
00:47:04,280 --> 00:47:04,600
Speaker 3: Thank you.

1066
00:47:05,840 --> 00:47:09,640
Speaker 2: Actually, Kenton, you are awesome. You are crushing it.

1067
00:47:09,800 --> 00:47:11,279
Speaker 1: I just want to be like Knton when I grow up.

1068
00:47:12,440 --> 00:47:14,080
Speaker 2: I mean, I have a paid for a house right

1069
00:47:14,440 --> 00:47:16,480
Speaker 2: in a couple of years. I feel like this is

1070
00:47:16,520 --> 00:47:19,080
Speaker 2: a classic personal finance question for sure. But Kenton, the

1071
00:47:19,200 --> 00:47:21,920
Speaker 2: world is your oyster because you have made such great

1072
00:47:22,320 --> 00:47:26,440
Speaker 2: financial choices over the years. And honestly, here's here's the

1073
00:47:26,560 --> 00:47:30,040
Speaker 2: big reveal. Whichever direction you go is gonna be fine. Right,

1074
00:47:30,160 --> 00:47:33,120
Speaker 2: Like we are talking about making an optimized choice. This

1075
00:47:33,280 --> 00:47:37,240
Speaker 2: is the last little percent that's gonna get you exactly

1076
00:47:37,360 --> 00:47:39,200
Speaker 2: perhaps to where you want, as opposed to some of

1077
00:47:39,239 --> 00:47:42,040
Speaker 2: the initial moves that are able to get folks most

1078
00:47:42,080 --> 00:47:43,600
Speaker 2: of the way there. Yeah, no, no, no, you have

1079
00:47:43,680 --> 00:47:45,400
Speaker 2: the ability now to fine tune it and get you

1080
00:47:45,520 --> 00:47:47,400
Speaker 2: exactly where it is that you want to be. So

1081
00:47:47,560 --> 00:47:49,440
Speaker 2: kudos man, right, yeah, right off the back great job.

1082
00:47:49,680 --> 00:47:51,920
Speaker 1: Yeah, it's like an embarrassment of riches. This is really

1083
00:47:52,040 --> 00:47:54,319
Speaker 1: like the definition of a cat bird seat. Yeah.

1084
00:47:54,360 --> 00:47:56,319
Speaker 2: I think there are a lot of folk who are thinking, oh, yeah, okay,

1085
00:47:56,440 --> 00:47:59,160
Speaker 2: I just wish that I had enough money on hand

1086
00:47:59,320 --> 00:48:00,960
Speaker 2: that I'm trying to figure out what to do with it,

1087
00:48:01,040 --> 00:48:04,600
Speaker 2: as opposed to having the need or the desire drive

1088
00:48:04,680 --> 00:48:05,160
Speaker 2: the decision.

1089
00:48:05,160 --> 00:48:07,520
Speaker 1: I guarantee you Kent didn't get there overnight though, And

1090
00:48:07,560 --> 00:48:08,880
Speaker 1: a lot of people they see this, they hear this,

1091
00:48:09,000 --> 00:48:11,799
Speaker 1: and they're like, well, man, I wish I could be there,

1092
00:48:12,200 --> 00:48:14,160
Speaker 1: But I guarantee you it was a lot, a lot

1093
00:48:14,200 --> 00:48:17,160
Speaker 1: of hard work and a lot of like years and

1094
00:48:17,280 --> 00:48:21,359
Speaker 1: consistency doing the right thing paycheck paycheck in, paycheck out

1095
00:48:21,920 --> 00:48:25,440
Speaker 1: and stuff like that, making my choices. So Kenton, Yeah, congrats.

1096
00:48:25,719 --> 00:48:28,480
Speaker 1: And when you have a maxed out ROTH and a

1097
00:48:28,560 --> 00:48:31,719
Speaker 1: twenty percent contribution to your workplace retirement account, Matt, you're

1098
00:48:31,760 --> 00:48:33,719
Speaker 1: going to be able to retire early. You're going to

1099
00:48:33,719 --> 00:48:35,680
Speaker 1: be able to retire, you know, probably in your late

1100
00:48:35,760 --> 00:48:37,440
Speaker 1: forties or fifties if you wanted to as well. This

1101
00:48:37,600 --> 00:48:39,279
Speaker 1: is these are the kind of choices Kenton's going to

1102
00:48:39,320 --> 00:48:42,160
Speaker 1: have at as disposal. Plus a fully funded emergency fund

1103
00:48:42,200 --> 00:48:44,000
Speaker 1: and no debt besides some mortgage. I mean this again,

1104
00:48:44,040 --> 00:48:46,279
Speaker 1: this is a great place to be, but this is

1105
00:48:46,560 --> 00:48:48,839
Speaker 1: and this is really a money gear number seven question

1106
00:48:49,160 --> 00:48:50,680
Speaker 1: where you get to choose your own adventure.

1107
00:48:50,840 --> 00:48:51,080
Speaker 3: We have.

1108
00:48:51,520 --> 00:48:52,800
Speaker 1: You know, you can find the money gears up on

1109
00:48:52,840 --> 00:48:54,400
Speaker 1: our website at how to money dot com. There are

1110
00:48:54,440 --> 00:48:57,200
Speaker 1: seven money gears. Money gear number seven is when you've

1111
00:48:57,280 --> 00:49:00,480
Speaker 1: kind of made it. You're basically on the press of

1112
00:49:00,560 --> 00:49:03,560
Speaker 1: financial independence, and these kind of questions are the ones

1113
00:49:03,640 --> 00:49:05,920
Speaker 1: you get to decide what you want to do with.

1114
00:49:06,239 --> 00:49:08,600
Speaker 1: There isn't necessarily a next thing you have to do,

1115
00:49:09,080 --> 00:49:11,799
Speaker 1: and so if you'd like the mental satisfaction, let's say

1116
00:49:11,880 --> 00:49:14,359
Speaker 1: Kenton of having zero debt, if that means a lot

1117
00:49:14,400 --> 00:49:16,200
Speaker 1: to you, then that's probably the direction you should go.

1118
00:49:16,200 --> 00:49:18,279
Speaker 1: And you should probably pay off the mortgage sooner rather

1119
00:49:18,320 --> 00:49:20,279
Speaker 1: than later. But if we're if we're going just by

1120
00:49:20,360 --> 00:49:23,680
Speaker 1: the numbers, that's probably not the best decision necessarily.

1121
00:49:23,840 --> 00:49:25,919
Speaker 2: Sure, yeah, yeah, to pay it off early, that would

1122
00:49:25,960 --> 00:49:28,520
Speaker 2: be I would give him the emotional win, But to

1123
00:49:28,600 --> 00:49:31,359
Speaker 2: keep it around, that's technically the numbers win. If you're

1124
00:49:31,400 --> 00:49:33,200
Speaker 2: just crunching the numbers and getting technical with it and

1125
00:49:33,280 --> 00:49:36,200
Speaker 2: that's because you can clearly earn more in a savings

1126
00:49:36,239 --> 00:49:39,360
Speaker 2: account than you would by paying off that mortgage. Like

1127
00:49:39,480 --> 00:49:41,960
Speaker 2: you literally don't even have to take on any investing

1128
00:49:42,160 --> 00:49:45,399
Speaker 2: risk in order to outperform. And specifically, he said, sixty

1129
00:49:45,440 --> 00:49:47,080
Speaker 2: thousand dollars at four and a half percent, like that

1130
00:49:47,200 --> 00:49:49,919
Speaker 2: is something that I personally would probably keep around, sure,

1131
00:49:50,480 --> 00:49:53,600
Speaker 2: and I would be prioritizing other financial goals, but again

1132
00:49:53,680 --> 00:49:56,719
Speaker 2: it's a personal choice. This really does all come down

1133
00:49:56,760 --> 00:49:59,480
Speaker 2: to the things that you're pursuing your personal goals, and

1134
00:50:00,640 --> 00:50:02,120
Speaker 2: like it kind of sounds like you're a little indifferent

1135
00:50:02,200 --> 00:50:04,279
Speaker 2: as to whether or not you keep the mortgage around

1136
00:50:04,320 --> 00:50:05,640
Speaker 2: or whether you pay it off. And so with that

1137
00:50:05,719 --> 00:50:07,960
Speaker 2: in mind, I if this was me, I would optimize

1138
00:50:08,000 --> 00:50:11,399
Speaker 2: for the numbers and then build up some cash that's

1139
00:50:11,480 --> 00:50:15,040
Speaker 2: accessible and just wait and see give yourself the ability

1140
00:50:15,080 --> 00:50:17,919
Speaker 2: to pounce on an opportunity that might come along, because

1141
00:50:18,000 --> 00:50:19,880
Speaker 2: right now is again you don't have a need or

1142
00:50:19,880 --> 00:50:22,279
Speaker 2: a desire that's fueling you or pointing you in a

1143
00:50:22,360 --> 00:50:25,200
Speaker 2: direction to make a certain financial decision. And so instead

1144
00:50:25,600 --> 00:50:28,480
Speaker 2: give yourself the most liquidity possible, and what that means

1145
00:50:28,600 --> 00:50:31,160
Speaker 2: is socking up a lot of money within your high

1146
00:50:31,200 --> 00:50:34,280
Speaker 2: yield savings, sitting on that and waiting for the ability

1147
00:50:34,320 --> 00:50:37,440
Speaker 2: to invest in a business startup. The desire might come

1148
00:50:37,480 --> 00:50:38,799
Speaker 2: along in a couple of years for you to start

1149
00:50:38,840 --> 00:50:41,080
Speaker 2: your own business or like again Justino the very beginning

1150
00:50:41,120 --> 00:50:43,080
Speaker 2: of the episode, and you would have the cash on

1151
00:50:43,200 --> 00:50:46,480
Speaker 2: hand to say, oh, my gosh, I am a great

1152
00:50:46,480 --> 00:50:49,120
Speaker 2: woodworker who like who knew this is something that I

1153
00:50:49,400 --> 00:50:52,320
Speaker 2: am good at that I would want to pursue.

1154
00:50:52,680 --> 00:50:53,000
Speaker 1: Boom.

1155
00:50:53,040 --> 00:50:56,200
Speaker 2: You could be in position to build out the dopest

1156
00:50:56,360 --> 00:50:58,680
Speaker 2: woodworking shop of all time there on your property.

1157
00:50:58,719 --> 00:51:01,160
Speaker 1: So it feels me that's what I. Building up canal

1158
00:51:01,239 --> 00:51:04,520
Speaker 1: to set yourself up means building up optionality options. Yep. Yeah.

1159
00:51:04,560 --> 00:51:07,880
Speaker 1: And so why when you're not forced to pay this

1160
00:51:08,120 --> 00:51:11,480
Speaker 1: debt off early and the numbers seem totally in your

1161
00:51:11,520 --> 00:51:14,279
Speaker 1: favor keeping it around, would you pay it off when

1162
00:51:14,520 --> 00:51:17,879
Speaker 1: you could retain those options with no harm no harm done.

1163
00:51:18,120 --> 00:51:20,839
Speaker 1: I think if Matt if savings account rates were still

1164
00:51:20,840 --> 00:51:22,799
Speaker 1: at like half a percent and his mortgage was at

1165
00:51:22,800 --> 00:51:24,279
Speaker 1: four and a half and this was like the last

1166
00:51:24,360 --> 00:51:26,319
Speaker 1: debt in his life, we would our answer would probably

1167
00:51:26,320 --> 00:51:29,440
Speaker 1: be different. But when savings accounts are paying five percent,

1168
00:51:30,000 --> 00:51:34,480
Speaker 1: then there's just no reason to feel like feel compelled

1169
00:51:34,640 --> 00:51:36,279
Speaker 1: to pay it off more quickly. That's true, and this

1170
00:51:36,400 --> 00:51:38,839
Speaker 1: often just last thing for Kenton. You can also enjoy

1171
00:51:38,920 --> 00:51:40,960
Speaker 1: some of your money too. I don't know if you

1172
00:51:41,520 --> 00:51:42,799
Speaker 1: are like me in that way.

1173
00:51:42,920 --> 00:51:45,479
Speaker 2: He didn't share his craft beer equivalent, right, but maybe

1174
00:51:45,560 --> 00:51:48,440
Speaker 2: he could find a couple more craft beer equivalents.

1175
00:51:48,600 --> 00:51:50,000
Speaker 1: Yeah, And I'm not saying you need to take a

1176
00:51:50,120 --> 00:51:52,320
Speaker 1: page out of Dave's book and buy some fancy automobile

1177
00:51:52,400 --> 00:51:54,320
Speaker 1: or anything like that. Dave not trying to throw you

1178
00:51:54,360 --> 00:51:56,239
Speaker 1: under the bus man, but unless that's your thing, can

1179
00:51:56,440 --> 00:51:58,200
Speaker 1: if it is, get you another audite, get you the

1180
00:51:59,120 --> 00:52:01,719
Speaker 1: lexus whatever. Yeah, if you've been putting something like that

1181
00:52:01,840 --> 00:52:04,680
Speaker 1: off though, like purchases you enjoy for years and years

1182
00:52:04,680 --> 00:52:06,600
Speaker 1: and years because you've been doing the right thing, make

1183
00:52:06,640 --> 00:52:08,000
Speaker 1: sure to take a step back and say, what am

1184
00:52:08,040 --> 00:52:10,040
Speaker 1: I doing this for? What are my bigger goals? How

1185
00:52:10,080 --> 00:52:12,040
Speaker 1: do I in what ways can I spend money that

1186
00:52:12,080 --> 00:52:14,400
Speaker 1: moves the needle as well? Because you have the ability

1187
00:52:14,440 --> 00:52:16,120
Speaker 1: and the right to be able to spend some of

1188
00:52:16,160 --> 00:52:18,600
Speaker 1: that money that comes in, to be able to make

1189
00:52:18,600 --> 00:52:20,960
Speaker 1: your life better and be able to enjoy some of

1190
00:52:20,960 --> 00:52:23,480
Speaker 1: the fruits of your labors, So don't push that back

1191
00:52:23,560 --> 00:52:26,880
Speaker 1: off being one of those hyper frugal people who never

1192
00:52:27,040 --> 00:52:29,880
Speaker 1: allows themselves the benefit of some of the money that

1193
00:52:30,160 --> 00:52:32,000
Speaker 1: comes in and some of the gains that they've made.

1194
00:52:32,120 --> 00:52:33,800
Speaker 2: That's right, Yeah, And if you have no idea what

1195
00:52:33,960 --> 00:52:35,279
Speaker 2: it is that you want to spend your money on,

1196
00:52:35,600 --> 00:52:37,360
Speaker 2: but just be like, hey, just go out with some

1197
00:52:37,440 --> 00:52:40,520
Speaker 2: friends and cover dinner. Start start there, because I don't know.

1198
00:52:40,600 --> 00:52:42,440
Speaker 2: That sounds like a lot of fun to me as well,

1199
00:52:42,520 --> 00:52:44,120
Speaker 2: cover drinks, cover the cost of dinner.

1200
00:52:44,160 --> 00:52:45,759
Speaker 1: But can way to go.

1201
00:52:45,920 --> 00:52:48,799
Speaker 2: You are crushing it and keep up the good work, Joel.

1202
00:52:48,960 --> 00:52:50,960
Speaker 2: Let's get back to the beer that you and I

1203
00:52:51,120 --> 00:52:54,840
Speaker 2: enjoyed during this episode. This is with a J dream

1204
00:52:55,160 --> 00:52:55,800
Speaker 2: right j r.

1205
00:52:55,920 --> 00:52:56,360
Speaker 1: Ea M.

1206
00:52:56,760 --> 00:53:01,000
Speaker 2: This is a strawberry cherry, cotton candy jellybean sour. Was

1207
00:53:01,040 --> 00:53:04,000
Speaker 2: it's kind of like a pastry kind of had some

1208
00:53:04,080 --> 00:53:06,680
Speaker 2: pastry notes going on, but who's the spine?

1209
00:53:06,719 --> 00:53:09,400
Speaker 1: It was like Burley Oak Brewing Company. Did you hear

1210
00:53:09,440 --> 00:53:11,239
Speaker 1: that at the beginning? I don't know if I did. Okay,

1211
00:53:11,400 --> 00:53:14,120
Speaker 1: but yeah, I'll say it was good. This was This

1212
00:53:14,280 --> 00:53:16,200
Speaker 1: was interesting. It was it was not too over the top.

1213
00:53:16,239 --> 00:53:17,719
Speaker 1: I thought it was going to be based on reading

1214
00:53:17,800 --> 00:53:20,200
Speaker 1: what was in it, I was like, this is ridiculous. Yeah,

1215
00:53:20,560 --> 00:53:22,279
Speaker 1: but no, I feel like pretty good. The brewer pulled

1216
00:53:22,320 --> 00:53:25,239
Speaker 1: off a balanced delight here of a beverage with some

1217
00:53:25,440 --> 00:53:30,000
Speaker 1: light vanilla notes, the kind of fruitiness coming together as

1218
00:53:30,040 --> 00:53:32,520
Speaker 1: well with that, it made it really smooth, really tasty.

1219
00:53:32,960 --> 00:53:35,080
Speaker 1: It's it's not necessarily like a go to style for me,

1220
00:53:35,160 --> 00:53:37,640
Speaker 1: but it's a rare breed and so I enjoyed this one.

1221
00:53:37,960 --> 00:53:40,719
Speaker 2: It made me think of so recently the coffee shop

1222
00:53:40,960 --> 00:53:43,440
Speaker 2: that's right here next to us near us that they

1223
00:53:43,600 --> 00:53:45,400
Speaker 2: moved locations recently, and when they did that.

1224
00:53:45,480 --> 00:53:46,560
Speaker 1: They literally across the street.

1225
00:53:47,320 --> 00:53:51,960
Speaker 2: They started offering Dippin' dots. So just to they sell dip,

1226
00:53:52,120 --> 00:53:55,000
Speaker 2: they sell Dippin' dots and King King of pops like

1227
00:53:55,080 --> 00:53:57,080
Speaker 2: the local Atlanta popsicle.

1228
00:53:57,160 --> 00:53:58,520
Speaker 1: So I was there with my I'm gonna go broke

1229
00:53:58,560 --> 00:53:59,319
Speaker 1: when I go with my kids.

1230
00:53:59,640 --> 00:54:01,680
Speaker 2: I was with three out of four of my kids,

1231
00:54:02,360 --> 00:54:05,200
Speaker 2: and the lady she didn't I don't want to say

1232
00:54:05,239 --> 00:54:06,960
Speaker 2: she made the mistake of saying this, but she was

1233
00:54:06,960 --> 00:54:09,919
Speaker 2: just like, oh, and by the way, we've got dippin' dots,

1234
00:54:09,960 --> 00:54:11,920
Speaker 2: and all the kids were like, dippin' dots.

1235
00:54:12,520 --> 00:54:14,279
Speaker 1: I was just like, oh, cheese, I scream of the

1236
00:54:14,320 --> 00:54:15,480
Speaker 1: future since nineteen eighty two.

1237
00:54:15,600 --> 00:54:18,640
Speaker 2: I guess we're gonna do that. But this beer reminds

1238
00:54:18,719 --> 00:54:21,319
Speaker 2: me of one of the flavors, which is rainbow. That's

1239
00:54:21,400 --> 00:54:23,080
Speaker 2: just the flavor, right, So it's just kind of like

1240
00:54:23,120 --> 00:54:27,640
Speaker 2: a fruit punch metally. Remind you've, like pourn some skittles

1241
00:54:27,680 --> 00:54:29,920
Speaker 2: in your hand, thrown it back right, Rainbow, It's got

1242
00:54:30,000 --> 00:54:32,400
Speaker 2: all the difference or I guess I'm thinking of nerds

1243
00:54:32,400 --> 00:54:36,040
Speaker 2: as well. But okay, just like a multi flavored fruit

1244
00:54:36,080 --> 00:54:38,479
Speaker 2: punch action going on. But like you said, I agree,

1245
00:54:38,480 --> 00:54:41,160
Speaker 2: it wasn't over the top, wasn't too sweet. I appreciate

1246
00:54:41,320 --> 00:54:44,640
Speaker 2: that that it didn't necessarily spike my blood sugar as we.

1247
00:54:44,719 --> 00:54:45,880
Speaker 1: Sat here and enjoy this one.

1248
00:54:45,960 --> 00:54:48,560
Speaker 2: But yeah, fun to specifically have a beer from a

1249
00:54:48,640 --> 00:54:52,040
Speaker 2: brewery that we've never I've been able to enjoy before.

1250
00:54:52,200 --> 00:54:54,480
Speaker 2: But buddy, that's gonna be it for this episode.

1251
00:54:54,520 --> 00:54:58,200
Speaker 1: Don't forget to leave some solid reviews over on Apple Podcasts.

1252
00:54:58,360 --> 00:55:00,640
Speaker 1: Wherever it is that you listen, there's a good shot

1253
00:55:00,760 --> 00:55:03,000
Speaker 1: you can win an awesome pair of socks to represent

1254
00:55:03,080 --> 00:55:05,120
Speaker 1: one of your favorite money podcasts. That's right, get that

1255
00:55:05,280 --> 00:55:10,040
Speaker 1: screenshot over to us before midnight on Wednesday. Email it

1256
00:55:10,080 --> 00:55:11,759
Speaker 1: to how tomoneypod at gmail dot com.

1257
00:55:11,880 --> 00:55:14,640
Speaker 2: That's right, and we will announce winners on Friday. But Joel,

1258
00:55:14,680 --> 00:55:16,879
Speaker 2: that's gonna be it buddy for this one. Until next time,

1259
00:55:17,080 --> 00:55:19,040
Speaker 2: Best friends Out, Best Friends Out,