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

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Speaker 1: Today we're answering your listener questions.

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Speaker 2: That is right, it's time to hear from you, our

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Speaker 2: listeners out there. Joel, you and I we are we're

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Speaker 2: the purveyors of the podcast here and we're so thankful

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Speaker 2: for everyone out there who listens to the podcast. We

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Speaker 2: wouldn't be here if it wasn't for you. We've got

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Speaker 2: some awesome we would be for some existence. But I

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Speaker 2: don't know. If we didn't have anyone listening, you wouldn't

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Speaker 2: be sitting here in a little clubhouse recording a little

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Speaker 2: podcast for all the folks out there to hopefully better

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Speaker 2: their their financial situation. But we've got a listener who

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Speaker 2: has saved the most on a car rentals. We're excited

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Speaker 2: to kind of talk about what she did and how

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Speaker 2: to even take it to the next level. Another listener

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Speaker 2: wants to have some money conversations with a significant other

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Speaker 2: that are going to be impactful. How to go about

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Speaker 2: doing that? And we got another one where someone is

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Speaker 2: interested in diversifying their portfolio, perhaps with reats real estate

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Speaker 2: and investment trusts, maybe not with reats. Yeah, so we'll

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Speaker 2: get to that one and more during today's episode.

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Speaker 1: On the cardental thing, by the way, well, I just

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Speaker 1: want to note you could save a lot of money

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Speaker 1: by doing this, and then there's a really simple solution.

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Speaker 2: So we'll get to that in just a minute. Not

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Speaker 2: just like ten percent.

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Speaker 1: No no, no, no, like you can get that bill in half

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Speaker 1: significan amount.

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Speaker 2: Yeah. Yeah, and this listener's doing it the hard way.

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Speaker 2: We want to make it easy.

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Speaker 1: But Matt, real quick, before we get to all these

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Speaker 1: great questions, I just wanted to mention, have you ever

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Speaker 1: gotten like your haircut at you do your own haircutting?

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Speaker 1: This is a dumb question, but you've heard of people

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Speaker 1: own hairs get their haircuts and their haircut at a

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Speaker 1: hair cutting school, right to save money?

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Speaker 2: Yeah, I know you're talking about. Okay, same thing with

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Speaker 2: like a dental hygienist that's in training. Where I grew up,

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Speaker 2: there's a dental school and so a friend of ours

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Speaker 2: she was becoming a dental hygienist. And I never I

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Speaker 2: was in high school, so I didn't really care to

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Speaker 2: go get my teeth culled, but she was always asking.

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Speaker 2: Friend never cared to dude, I floss at least once

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Speaker 2: a day. You don't the brush multiple times a day.

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Speaker 2: Who has a toothbrush in our office bathroom? And who

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Speaker 2: brushes their teeth ur in the day. It's all about prevention, baby, No,

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Speaker 2: you got to get the junk out of there. It's true,

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Speaker 2: but you haven't been in the dentist in a long time.

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Speaker 2: It's been a minute.

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Speaker 1: Yeah, okay, but not trying to like talk smack about

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Speaker 1: your your dental hygiene. It's great, sounded like you were.

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Speaker 1: But the what I was kind of highlight here. I

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Speaker 1: didn't think about this till the other day, but I've

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Speaker 1: mentioned this on the show. My wife is studying to

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Speaker 1: become a marriage and family therapist. She's in her internship year,

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Speaker 1: and so she has started seeing clients, been doing it

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Speaker 1: for a couple of months now. It's really fun to see.

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Speaker 1: But the other thing it made me think of was

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Speaker 1: like she's at this nonprofit and people can go see

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Speaker 1: her for a whole lot less money than they would

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Speaker 1: normally pay a traditional full price therapist.

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Speaker 2: Oh so she's like the stylist in training at hygienist

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Speaker 2: in training.

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Speaker 1: That yeah, that's right, by the way, So for everyone

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Speaker 1: out there, like everybody knows talk therapy is incredibly expensive.

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Speaker 1: And so if you're like saying I could, totally I could.

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Speaker 1: I would love to talk to somebody about what's going

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Speaker 1: on in my life, but man, I can't afford the

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Speaker 1: one hundred and fifty one hundred and eighty two hundred

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Speaker 1: bucks an hour or whatever it is, and insurance maybe

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Speaker 1: doesn't cover your ability to go see someone. Look into

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Speaker 1: one of these nonprofit therapy centers near you and see

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Speaker 1: if you might be able to go see someone for

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Speaker 1: a fraction of that cost. Maybe yeah, a third to

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Speaker 1: a quarter of the cost.

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Speaker 2: So I like it. Yeah, okay, Well, so here's my

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Speaker 2: question then, because when you go and get yourself a

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Speaker 2: trainee haircut, you know what the risks are, right, Like,

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Speaker 2: you are there, maybe even getting a free haircut, but

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Speaker 2: at the very least paying a discounted rate because you

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Speaker 2: know that there's a chance they might watch it. So,

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Speaker 2: I mean, do you think the same dynastics are higher

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Speaker 2: with your mental health?

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Speaker 3: Baby?

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Speaker 4: Yeah?

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Speaker 2: Like, do you think that this? So do the same dynamics?

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Speaker 2: Are they still in play when it comes do you

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Speaker 2: think to like going to see an intern? I think so? Yeah?

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Speaker 1: I think so. So you've done that, your wife? I

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Speaker 1: mean Emily, she's top note, well, she's learning a lot,

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Speaker 1: and these just saying the first couple of months. I

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Speaker 1: think even seeing an I don't have the experience. Though,

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Speaker 1: even seeing an intern in month two versus month eleven

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Speaker 1: of their training, he's gonna be a vast difference.

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Speaker 2: So that's the sweet spot. You got to find somebody,

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Speaker 2: like you want to find the diamond in the rough.

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Speaker 2: You want to find the crystal veteran intern, but you

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Speaker 2: want to find somebody who's like up and coming or

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Speaker 2: they haven't you know, they're not fully light. I don't know.

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Speaker 2: I guess Emily's licensed at this point. That's why.

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Speaker 1: Yet she'll be she used to pass the test after

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Speaker 1: she graduates intern year, you're not. You're you're being overseen

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Speaker 1: by a license, all right.

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Speaker 2: So basically, you want to see somebody that's like right

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Speaker 2: before getting licensed. And I don't know, maybe they could

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Speaker 2: even extend that discounted rate to you. I love the

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Speaker 2: idea of finding that sweet spot and finding somebody who

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Speaker 2: I mean, that's like buying low and selling high, right

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Speaker 2: that's not charging like the absolute full commission rate yet,

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Speaker 2: but still is somebody who's talented, like you know, like

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Speaker 2: Emily is where you are able to perhaps get a deal,

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Speaker 2: but at the same time maybe not stuff for the

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Speaker 2: consequences of having somebody who doesn't have the experience to

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Speaker 2: talk you through some of your issues.

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Speaker 1: It's like getting the premiere Major League Baseball players before

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Speaker 1: they enter into free agency. Like those first years are cheap,

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Speaker 1: and then when you pay full price, you're like, yeah,

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Speaker 1: I don't want you to play something for another team.

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Speaker 1: I don't want to pay you are demanding a premium

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Speaker 1: seven hundred million dollars like the show.

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Speaker 2: Speaking of okay, well go back to the haircuts thing.

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Speaker 2: What do you think of my little dudes of Weston's bus. Yeah,

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Speaker 2: it looks great.

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Speaker 1: I've tried to talk my little dude into getting the

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Speaker 1: same I'll give.

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Speaker 2: It to him. No, I convinced him to do it

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Speaker 2: by like he it was all up in his eyes

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Speaker 2: and it was getting to be a mess because it's

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Speaker 2: getting hot and sweaty out there. But I told him that, hey,

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Speaker 2: I want to give you an army haircut, give you

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Speaker 2: a soldier haircut. You're marketing it. Well, you got really

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Speaker 2: excited about that and was all all for it. Yeah,

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Speaker 2: and it's just an easier haircut to give like, I'm like,

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Speaker 2: you know, you'd be surprised, Like, well, the short you go,

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Speaker 2: you see every misstroke of the clippers with the guard.

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Speaker 2: It's I'm still learning, man, while like I've okay, I'm

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Speaker 2: sure we've. I don't know if folks have heard us

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Speaker 2: talk about this before, but cutting your own hair literally

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Speaker 2: something I've done since I was like a little over

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Speaker 2: ten years old. Yeah, and I just think about all

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Speaker 2: the money I've saved over literally over decades. But then

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Speaker 2: if I can get better at it, man, the ability

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Speaker 2: to continue to multiply that by six moving forward.

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Speaker 1: Maybe past six, maybe I'll sign my family up for

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Speaker 1: haircuts at your place too. I might charge you only

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Speaker 1: at the intern rate. Okay, all right, I'll take it.

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Speaker 1: Let's move on, Matt. Let's mention the beer we're having

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Speaker 1: on this episode. This is called bike Tour. We like biking,

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Speaker 1: so of course we're probably gonna like this beer. Well,

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Speaker 1: we have our thoughts on this. Hell's Lagger by Creature

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Speaker 1: Comforts at the end of the episode. Yeah, but let's

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Speaker 1: move on to questions. If you have a money question,

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Speaker 1: we'd love to hear from you. Just record a voice

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Speaker 1: memo on your phone of you asking the question, send

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Speaker 1: it our way howdomoneypod at gmail dot com or go

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Speaker 1: to how to money dot com slash ask for the

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Speaker 1: simple instructions. Matt, let's get to the first one. This

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Speaker 1: one's about doing regular money check ins.

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Speaker 3: Hey, Matt and Joel, this is Ben from Seattle. Love

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Speaker 3: the podcast and really enjoy all the interviews you do

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Speaker 3: with folks on the show and leve all the great

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Speaker 3: information you're sharing. My question today is I know you've

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Speaker 3: talked before about a year in review or annual meeting

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Speaker 3: you have with your partners. I'm in a stage of

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Speaker 3: life right now where I've been working for a few

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Speaker 3: years and pretty comfortable with my savings for retirement and

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Speaker 3: other goals. And then my partner is graduating dental school,

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Speaker 3: so she'll start working here shortly, and once we have

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Speaker 3: a feel for her income, we want to sit down

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Speaker 3: and have a meeting to review our financial goals for

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Speaker 3: the next year. One of the things I'm wondering is

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Speaker 3: what kind of questions do you ask during that meeting

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Speaker 3: or go over or topics you discuss, and then any

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Speaker 3: other tips to make it like the most effective meeting

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Speaker 3: and maybe fun so it's enjoyable. Any thoughts would be appreciated. Thanks.

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Speaker 2: Ooh, Matt. What Ben said is why he's about to

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Speaker 2: graduate from.

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Speaker 1: Dental school, speaking of getting your teeth cleaned before she graduates, Ben,

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Speaker 1: I'd like to make an appointment. Okay, So Ben, first off,

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Speaker 1: I love that you asked, like right there at the end,

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Speaker 1: you talked about making these conversations enjoyable.

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Speaker 2: This is so key. This is so clutch because the

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Speaker 2: more arduous the task is, the more likely you are

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Speaker 2: to avoid it. And I think that's particularly true for

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Speaker 2: folks who feel like that they aren't well versed in money.

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Speaker 2: It becomes this chore something you avoid doing all together.

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Speaker 2: And so I think there are a lot of ways

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Speaker 2: to tackle this right, to make it a little more fun.

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Speaker 2: And the first thing that comes to mind is I

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Speaker 2: would call it something different, you know, make it make

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Speaker 2: it catchy, make it a little funny. We're talking about

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Speaker 2: marketing and branding, but put it on the calendar. And

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Speaker 2: this actually makes me think of Joel. So every morning

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Speaker 2: we have a standing meeting. Uh And originally when I

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Speaker 2: created it called it the morning huddle because that's like

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Speaker 2: what businesses do, like the scrum. I don't know like

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Speaker 2: software developers, they get like scrum and get together. I

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Speaker 2: don't even know what that means, rugby turn. I just yeah,

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Speaker 2: but it's a way for them to all kind of

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Speaker 2: pile in together or something.

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Speaker 1: I don't even though I've never worked for a software

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Speaker 1: it's like it's like a pile up in football.

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Speaker 2: But yeah. But similarly, I was like, oh, it's like

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Speaker 2: a huddle. So it's a way for you and me

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Speaker 2: to kind of talk about stuff that we're going to

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Speaker 2: discuss on an upcoming episode. Business stuff, behind the scenes,

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Speaker 2: blah blah blah whatever. But at some point you called it,

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Speaker 2: I'm pretty sure as you you called it a hey,

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Speaker 2: let's let's do our cuddle session. And I thought, well,

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Speaker 2: that's that's funny. It's on the calendar. I just change

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Speaker 2: it from morning huddle, it's morning cuddle, and it's this

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Speaker 2: repeating event makes it sound sweeter. It's just more fun.

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Speaker 2: We don't actually cuddle. Our wives had some questions about it,

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Speaker 2: because it's a shared calendar that we share with our

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Speaker 2: wives as well, But I feel like that's just a

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Speaker 2: clear way to I don't know, words matter. What you

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Speaker 2: call things matter, And instead of calling it the annual

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Speaker 2: year in budget meeting, it can be like, hey, let's

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Speaker 2: let's talk about what we want to do with our money.

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Speaker 2: Right In this way you can kind of build the

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Speaker 2: hype and make it more just a little more positive

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Speaker 2: than negative. Yeah, But then as far as the actual meeting,

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Speaker 2: I think what that could look like is even getting

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Speaker 2: away to like cabin in the woods if you're down

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Speaker 2: with that, right, Like if you're hiking and you're hammicking,

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Speaker 2: but with a fairly important money conversation thrown in, Well,

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Speaker 2: that sounds a whole lot more fun to me than again,

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Speaker 2: the very businesslike meeting. Were you to address it that way.

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Speaker 1: You want it to be instead of like business time

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Speaker 1: in the hard sense, you wanted to be business time

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Speaker 1: in the was that the concords part of the concord

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Speaker 1: sense right to be a little like fun Lucy goosey. Yeah,

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Speaker 1: it's the whole Mary Poppins thing, this spoonful of sugar,

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Speaker 1: Matt like it helps the medicine go down. And she

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Speaker 1: was spot on whatever that was sixty years ago when

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Speaker 1: they made that movie. And I think the same is

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Speaker 1: just eminently true for everything we want to get accomplished

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Speaker 1: in our lives, especially in regards to money, the easier

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Speaker 1: we can make it in terms of automation, the better

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Speaker 1: we can market it, the more likely we are to

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Speaker 1: follow through. And of course bring some craft beer along

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Speaker 1: to that meeting as well. Right, it's like, yeah, you

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Speaker 1: open a bottle of something that you enjoy, have that

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Speaker 1: conversation in a more down to earth way, and I

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Speaker 1: think you're more likely to make progress. You're more likely

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Speaker 1: to actually get the thing done. Next, I'd say to

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Speaker 1: let your life goals influence your money goals. It's more

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Speaker 1: fun to talk about hosts and dreams than it is

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Speaker 1: to allocate dollars and cents and to talk about whether

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Speaker 1: or not we're going to cut the streaming budget this

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Speaker 1: year or something like that. And that is of course

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Speaker 1: a necessity that has to be part of the conversation.

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Speaker 1: But if you let the dollars flow in the direction

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Speaker 1: of your biggest goals, that makes this conversation a heck

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Speaker 1: of a lot more fun, which we love. So it

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Speaker 1: helps you step back and take the forest, not just

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Speaker 1: the trees approach. Right, It's easier than in the future

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Speaker 1: or later on in the conversation to slash your smartphone budget.

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Speaker 1: Maybe say, all right, we're going to delay our upgrade

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Speaker 1: cycles this year, or to say, listen, we are finally

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Speaker 1: going to make that switch to one of those lower

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Speaker 1: cost nba os because we're paying Verizon way too much

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Speaker 1: money and guess what we're worth. It's worth the trade

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Speaker 1: off because of that other bigger goal we just talked about.

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Speaker 1: It's going to help us get there quicker.

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Speaker 2: Right.

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Speaker 1: It just means that you've got bigger fish to fry,

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Speaker 1: and so that those smaller potatoes. You're more willing to

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Speaker 1: make sacrifices and trade offs in those regards. So it's

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Speaker 1: easier to say no then to I don't know, expanding

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Speaker 1: your clothing budget if you're saving up for a down

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Speaker 1: payment in two years, if that's a top notch priority.

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Speaker 1: Most of the time, though, if you come come at

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Speaker 1: me and you say, hey, listen, are you willing to

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Speaker 1: produce your craft beer budget, I'd be like, heck no.

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Speaker 1: But if someone offered me something better in return, of course,

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Speaker 1: I'm willing to cut back on my craft.

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Speaker 2: Beer and have a conversation about you. And that's yeah,

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Speaker 2: And that's what it sounds like, Ben, that you're wanting

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Speaker 2: to do is have these kind of conversations Yeah, when

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Speaker 2: you have these goals, when you have a why behind

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Speaker 2: saying no to certain expenses that other folks think are normal,

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Speaker 2: well you're gonna find that it's far less difficult to

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Speaker 2: you know, take the road less traveled. And if you,

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Speaker 2: like you said j if you start with like the

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Speaker 2: nitty greedy stuff like okay, we've got to cut our

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Speaker 2: Hulu subscription, you're going to miss out on some of

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Speaker 2: those most important comers.

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Speaker 1: It feels like you're starting the conversation from a point

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Speaker 1: of austerity at that point, as opposed to like an

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Speaker 1: informed reason to get to make that cut, Because yeah,

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Speaker 1: you might easily be like, who cares about Hulu?

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Speaker 2: I don't need Hulu in my life. But if it.

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Speaker 1: Starts with like we have to eradicate seven ninety nine

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Speaker 1: a month, like you know, start from the other.

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Speaker 2: Side first, Yeah, exactly, and not that there's no place

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Speaker 2: for a questioning those expenses, but just don't start there.

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Speaker 2: And it makes me think about how, like one of

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Speaker 2: the earliest episodes we did was The Why Behind Your Money,

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Speaker 2: and we kind of ripped off Frederick Nietzsche when we

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Speaker 2: tackled that topic because he's got that line where he

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Speaker 2: who has a why can endure or can bear almost

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Speaker 2: any how, that's when all of a sudden, Halu subscription

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Speaker 2: becomes very unimportant, next to say saving up for a

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Speaker 2: downplaint payment like you mentioned bil or Hey, we want.

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Speaker 1: To bring our first child in the end of the

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Speaker 1: world and it's going to cost this, this and this. Okay, cool,

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Speaker 1: It makes it way more exciting to cut back on

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Speaker 1: the things that you care about less exactly.

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Speaker 2: But then the next thing that we would recommend for

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Speaker 2: you to do is look to the past. We're talking

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Speaker 2: about reviewing your expenses, reviewing your income over the past

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Speaker 2: twelve months, and you want to ask yourself, like, are

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Speaker 2: we on track to reach the goals that we've set out,

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Speaker 2: Like actually look at your expenses and figure out if

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Speaker 2: any part of your budget, if any of that's gotten

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Speaker 2: out of control. And so maybe that means you need

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Speaker 2: to update your budget. Maybe it means you need to

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Speaker 2: either find ways to boost your income, maybe buckle down

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Speaker 2: a bit more, maybe hit up your favorite restaurant a

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Speaker 2: little less often. Basically, you just want to shine a

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Speaker 2: spotlight on what it is that went right over the

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Speaker 2: past twelve months and what it is that didn't and

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Speaker 2: find ways to remedy the things that didn't quite align

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Speaker 2: with maybe what you said at the beginning of the

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Speaker 2: year that you wanted to do, and in fact somehow

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Speaker 2: you kind of got a little derailed. Yeah.

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Speaker 1: Yeah, the past is going to be indicative of the future,

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Speaker 1: or at least it's going to you're right, like highlight

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Speaker 1: the things, the changes that you can or should make.

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Speaker 1: And by the way, Ben, you're you're very wise getting

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Speaker 1: married to an almost dentists. Dentist, that's a that's a

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Speaker 1: lucrative career, and dentists seem to have more autonomy than

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Speaker 1: others in the medical profession too, which is great. And

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Speaker 1: you said your wife she's almost done with dental school,

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Speaker 1: which rocks, And that means you're about to stop forking

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Speaker 1: over money for her schooling. And maybe that means you're

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Speaker 1: gonna have a chunk of student loan debt to pay

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Speaker 1: off as well. But you're also going to have a

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Speaker 1: lot more income in the near future too, and I'm

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Speaker 1: sure in vast access to what that student loan payment's

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Speaker 1: going to be. That is one of the most important

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Speaker 1: items to address too, right, because especially when we're talking

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Speaker 1: about big jolts to lifestyle or budget. Those are inflection

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Speaker 1: points that need more time, attention and discussion. So I

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Speaker 1: would start to talk about when our income increases, when

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Speaker 1: we do hit new levels in our income, what's the

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Speaker 1: top priority going to be. Do we want to max

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Speaker 1: out this in that retirement account first and save more

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Speaker 1: for the down payment on a home, or do we

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Speaker 1: have a car that's on death's door and we need

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Speaker 1: to start budgeting ahead for that. But I think if

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Speaker 1: you don't, if you even constructed a plan for where

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Speaker 1: you want that money to go, the likely scenario is

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Speaker 1: it's going to get incorporated into your budget. Everything's just

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Speaker 1: going to inflate a little bit and you're kind of

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Speaker 1: look back six months later and be like, where did

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Speaker 1: all that extra in come? Do?

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Speaker 2: I think that's a regular experience for a lot of people. Yeah,

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Speaker 2: there are some other things I think that are worth

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Speaker 2: covering every year. And a metric worth discussing is your

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Speaker 2: net worth? How's that looking? Because it's certainly it's not

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Speaker 2: like a perfect indicator of your financial health. The stock

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Speaker 2: market's got down years, of course, but with the combination

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Speaker 2: of your savings rate plus market returns and what it

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Speaker 2: is that we've been seeing, especially over the past year,

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Speaker 2: it should be going at fairly regularly. And then also too,

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Speaker 2: I guess you know, as you are reviewing the past

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Speaker 2: year and looking at some of the different expenses and

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Speaker 2: what it is the different purchases that move the needle

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Speaker 2: the most for you, which one of those were duds?

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Speaker 2: Which ones do you think? Man, we spend a lot

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Speaker 2: of money on that, but it didn't Actually, I feel

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Speaker 2: very dissatisfied with that massive purchase, and I think that

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Speaker 2: that can help you to spend more mindfully moving forward

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Speaker 2: as well. And of course it's a good idea to

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Speaker 2: cover some of the boring stuff as well. Maybe take

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Speaker 2: a look at whether or not you need a will

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Speaker 2: in place, your beneficiaries on your different investment accounts, take

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Speaker 2: a look at insurance and your coverage amounts. Those they

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Speaker 2: don't often change year to year, but it's just worth

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Speaker 2: taking a look at them to make sure that they're

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Speaker 2: still accurate. And you might find, for instance, that your

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Speaker 2: term life maybe that you know, maybe the needs that

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Speaker 2: you have there are increasing now that you're both working,

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Speaker 2: now that you've got just a higher expectation as to

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Speaker 2: what it is that the other person is bringing in.

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Speaker 2: And it doesn't take long before you get used to that,

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Speaker 2: and so you might want to go ahead and get

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Speaker 2: it and let's say another term policy in place, another

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Speaker 2: thing to consider. Yeah, I agree ultimately. I would say though,

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Speaker 2: like going back to the very first thing, Joe that

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Speaker 2: you said though, like setting those goals like because that

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Speaker 2: is going to basically drive the ship and we can

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Speaker 2: link to It's been a minute since we've mentioned this,

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Speaker 2: but the Money Mission Statement that we created is a

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Speaker 2: simple PDF. But that might help you Bin and you

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Speaker 2: and your partner to start having a conversation as to

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Speaker 2: what it is that you want your life to look

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Speaker 2: like as you're essentially stepping back and kind of designing,

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Speaker 2: like you're putting pen to paper and you're thinking through

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Speaker 2: what do we want our life to look like?

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Speaker 4: That.

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Speaker 2: It's a PDF that will link to in the show

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Speaker 2: notes for this episode.

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Speaker 1: Good questions to proud you get you thinking and get

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Speaker 1: you talking together about some of those larger goals that

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Speaker 1: you do have, so that you feel like you're pointing

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Speaker 1: in the same direction together, which is powerful because you're

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Speaker 1: on the same team after all. I think sometimes Matt,

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Speaker 1: it can feel like even Mary couples, I feel like

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Speaker 1: they're not on the same team. Maybe they're at odds,

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Speaker 1: and I think doing something like that together, an exercise

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Speaker 1: like that together, can help, I don't know, put you

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Speaker 1: back on the same page and heading in the same

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Speaker 1: direction again. All Right, We've got more to get to

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Speaker 1: on this episode, including a novel way to buy a

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Speaker 1: rental property. We'll get to that and more right after this.

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Speaker 2: All right, buddy, we are back to the break. We've

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Speaker 2: got plenty more to get to during our episode today,

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Speaker 2: including we'll talk about how you can pay the least

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Speaker 2: amount possible on your car insurance. But first, let's hear

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Speaker 2: from a listener who is trying to get into real estate.

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Speaker 5: Hi, joll them, Matt. My name is Kip and I've

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Speaker 5: been listening to you guys for a while now. Your

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Speaker 5: friendship is just gold and I really really enjoy seeing that.

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Speaker 5: I'm contacting you guys because I got a question about

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Speaker 5: some real estate, and in particular of the episode that

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Speaker 5: you guys did with Alten and the real estate fire scenario.

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Speaker 5: Right now, I'm a highly invested in the market and

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Speaker 5: the market has been good to me, and I'm looking

432
00:18:17,880 --> 00:18:21,080
Speaker 5: to diversify a bed and I've got my down payment

433
00:18:21,080 --> 00:18:24,159
Speaker 5: money saved up and I'm ready to go, but I

434
00:18:24,200 --> 00:18:27,359
Speaker 5: just can't find a property with the seven percent interest

435
00:18:27,400 --> 00:18:29,840
Speaker 5: rates that's going to give me enough positive cash flow

436
00:18:29,880 --> 00:18:33,600
Speaker 5: forward to make sense. And so, like I said, the

437
00:18:33,640 --> 00:18:36,840
Speaker 5: money's been sitting in the Hiio savings and right now

438
00:18:36,960 --> 00:18:40,720
Speaker 5: and because of that, you know, I tenn five percent.

439
00:18:40,880 --> 00:18:43,880
Speaker 5: But I do feel like I've missed out a lot

440
00:18:43,920 --> 00:18:46,240
Speaker 5: of the market of this last year. But you know,

441
00:18:46,280 --> 00:18:49,440
Speaker 5: when you're saving, that's just what you gotta do. And

442
00:18:49,480 --> 00:18:52,560
Speaker 5: being that, I don't think that rates going to be

443
00:18:52,560 --> 00:18:55,199
Speaker 5: going down anytime soon, and the market's at it all

444
00:18:55,280 --> 00:18:58,680
Speaker 5: time hot. What I'm wondering, and I like some input

445
00:18:58,720 --> 00:19:01,560
Speaker 5: from you guys, is if I want to be the

446
00:19:01,640 --> 00:19:03,680
Speaker 5: first fight a bit into real estates, so I just

447
00:19:03,720 --> 00:19:06,320
Speaker 5: go ahead and buy some rates now, or or would

448
00:19:06,320 --> 00:19:08,879
Speaker 5: you guys just wait it out till something changed with

449
00:19:09,080 --> 00:19:11,320
Speaker 5: rape or we get some kind of some kind of

450
00:19:11,359 --> 00:19:14,520
Speaker 5: down on the state market. Guys, could I really appreciate

451
00:19:14,640 --> 00:19:17,360
Speaker 5: any advice that you give, And thanks to ask guys.

452
00:19:17,359 --> 00:19:19,920
Speaker 1: Take care, Kip, thanks for the kind words. Man and

453
00:19:20,520 --> 00:19:22,959
Speaker 1: Matt Little does he know this friendship thing? It's all

454
00:19:23,000 --> 00:19:25,359
Speaker 1: shtick we've been that's true. I'm putting this on we

455
00:19:25,359 --> 00:19:28,160
Speaker 1: don't even like each other, never talked to each other

456
00:19:28,160 --> 00:19:28,920
Speaker 1: in real life.

457
00:19:28,960 --> 00:19:31,280
Speaker 2: That's right. Our families actually don't know each other. That's

458
00:19:31,520 --> 00:19:33,720
Speaker 2: a whole fabricate, it's all made up. This is one

459
00:19:33,760 --> 00:19:35,719
Speaker 2: elaborate ruse we've got going on now.

460
00:19:35,840 --> 00:19:38,520
Speaker 1: Just kidding, of course, And yeah, hopefully that's one of

461
00:19:38,560 --> 00:19:40,840
Speaker 1: the things that that shines for, especially in an era

462
00:19:40,920 --> 00:19:44,520
Speaker 1: mat where like friendships are lacking, relationships are feel disconnected.

463
00:19:44,560 --> 00:19:47,440
Speaker 2: I don't know, true, it's the loneliness epidemic.

464
00:19:47,600 --> 00:19:50,040
Speaker 1: Yeah, it's it's real, and like we've got lots of

465
00:19:50,040 --> 00:19:52,320
Speaker 1: other friends too, but it's it's kind of fun to

466
00:19:52,440 --> 00:19:54,920
Speaker 1: I don't know, just be friends who are creating something together.

467
00:19:54,960 --> 00:19:57,080
Speaker 2: And that's true. Yeah, but let's get to let's get

468
00:19:57,119 --> 00:19:58,760
Speaker 2: to Kip's actual he was that was just a little

469
00:19:58,800 --> 00:20:00,800
Speaker 2: side comment and Kip, yeah, we pre you mentioning that.

470
00:20:00,920 --> 00:20:04,760
Speaker 2: But yeah, seven percent mortgage rates not helping out the

471
00:20:04,800 --> 00:20:08,360
Speaker 2: real estate market today. The stock market, I'll say, that's

472
00:20:08,359 --> 00:20:10,439
Speaker 2: been good to all of us recently. And you are

473
00:20:10,480 --> 00:20:13,159
Speaker 2: writing and what you said about saving you are going

474
00:20:13,200 --> 00:20:16,160
Speaker 2: to miss out on returns sometimes. But if the market,

475
00:20:16,440 --> 00:20:18,320
Speaker 2: let's just say the stock market took a fifteen percent

476
00:20:18,359 --> 00:20:21,119
Speaker 2: dip well, you feel like a genius by saving, by

477
00:20:21,200 --> 00:20:24,000
Speaker 2: keeping that money liquid within a savings account and avoiding

478
00:20:24,080 --> 00:20:27,600
Speaker 2: the worst of it, you're not seeing your principal amount declined.

479
00:20:27,640 --> 00:20:30,320
Speaker 2: There it's going to be impossible to predict what the

480
00:20:30,320 --> 00:20:33,040
Speaker 2: market is going to do within shorter time frames, and

481
00:20:33,160 --> 00:20:35,119
Speaker 2: all you can do is just base your decision on

482
00:20:35,160 --> 00:20:37,960
Speaker 2: wisdom and history. What it is that historical market returns

483
00:20:38,000 --> 00:20:41,800
Speaker 2: have been. And hopefully you're maximizing returns with a portion

484
00:20:42,040 --> 00:20:44,720
Speaker 2: of your nest egg that you don't need anytime soon,

485
00:20:44,760 --> 00:20:47,640
Speaker 2: which is great, But it would be unwise to try

486
00:20:47,640 --> 00:20:50,679
Speaker 2: to maximize those returns by investing those dollars that you're

487
00:20:50,720 --> 00:20:52,840
Speaker 2: hoping to deploy. Of course, that could leave you then

488
00:20:52,840 --> 00:20:55,520
Speaker 2: without sufficient funds to put down when the right house

489
00:20:55,560 --> 00:20:57,760
Speaker 2: comes along. It could prevent you from being able to

490
00:20:57,760 --> 00:21:01,080
Speaker 2: pull the trigger on a great property. Yeah, you're exactly right.

491
00:21:01,119 --> 00:21:03,159
Speaker 1: You feel like a loser when you've got money in

492
00:21:03,200 --> 00:21:06,200
Speaker 1: savings and the market it's just crushing. But you feel

493
00:21:06,240 --> 00:21:10,080
Speaker 1: like a brilliant person when the market is dramatically dropping

494
00:21:10,240 --> 00:21:13,480
Speaker 1: and you've got more money in savings. But let's talk

495
00:21:13,480 --> 00:21:16,000
Speaker 1: about first whether or not Kip needs to diversify. I

496
00:21:16,000 --> 00:21:19,159
Speaker 1: don't necessarily think he has to. You certainly can. But

497
00:21:19,240 --> 00:21:21,879
Speaker 1: I don't see any problem with folks who are only

498
00:21:21,960 --> 00:21:24,480
Speaker 1: investing in the stock market, right. I think that approach

499
00:21:24,800 --> 00:21:28,680
Speaker 1: approach in and of itself, can be diversified enough. Real estate, Yes,

500
00:21:28,720 --> 00:21:32,280
Speaker 1: it can add more diversity, but because of the part

501
00:21:32,280 --> 00:21:34,639
Speaker 1: time job nature of it, most folks are going to

502
00:21:34,760 --> 00:21:37,479
Speaker 1: choose to avoid investing in real estate, and those folks

503
00:21:37,600 --> 00:21:40,399
Speaker 1: are still going to be well prepared for retirement. If

504
00:21:40,440 --> 00:21:43,280
Speaker 1: they're dollar cost averaging, we can weak out a decent

505
00:21:43,280 --> 00:21:46,479
Speaker 1: percentage of their paycheck. Real estate has been good to

506
00:21:46,560 --> 00:21:48,439
Speaker 1: you and to me, Matt, and we think that with

507
00:21:48,520 --> 00:21:51,840
Speaker 1: the right long term mindset and financial preparation that it

508
00:21:51,840 --> 00:21:54,479
Speaker 1: can be good to others too. Just don't think that

509
00:21:54,520 --> 00:21:57,320
Speaker 1: you need to build a mini real estate empire in

510
00:21:57,440 --> 00:22:01,119
Speaker 1: order to achieve financial security. It's really about what I

511
00:22:01,280 --> 00:22:04,760
Speaker 1: want to and gaining the knowledge and then implementing that

512
00:22:05,359 --> 00:22:08,600
Speaker 1: in a slow but sure strategy. But you don't have

513
00:22:08,640 --> 00:22:11,080
Speaker 1: to do it in order to get to retinacial independence.

514
00:22:11,119 --> 00:22:12,520
Speaker 1: A lot of folks have done it in the stock

515
00:22:12,560 --> 00:22:14,040
Speaker 1: market all and there's a ton of four to one

516
00:22:14,119 --> 00:22:16,080
Speaker 1: k millionaires people that have only invested in their four

517
00:22:16,119 --> 00:22:20,000
Speaker 1: one k and guess what, they reached retirement status with

518
00:22:20,119 --> 00:22:22,359
Speaker 1: plenty without having to dabbled in real estate at all.

519
00:22:22,440 --> 00:22:25,760
Speaker 2: Yeah, And Kip specifically mentioned our conversation with Alan Corey,

520
00:22:25,960 --> 00:22:28,439
Speaker 2: and it can be difficult to hear someone talking about

521
00:22:28,440 --> 00:22:31,600
Speaker 2: real estate like that when you are crazy passionate about it,

522
00:22:31,600 --> 00:22:34,919
Speaker 2: and Alan obviously is, and like he's yeah, he's a

523
00:22:34,920 --> 00:22:37,919
Speaker 2: self He's a self professing real estate maximalist, like that

524
00:22:38,040 --> 00:22:40,760
Speaker 2: is all that he cares about pretty much during our

525
00:22:40,800 --> 00:22:42,520
Speaker 2: conversation with him, I think he even like we even

526
00:22:42,600 --> 00:22:44,480
Speaker 2: talked about not investing in the market because it's like,

527
00:22:44,480 --> 00:22:46,280
Speaker 2: why would I do that when I have the ability

528
00:22:46,320 --> 00:22:49,159
Speaker 2: to see outside returns within real estate? But Alan is

529
00:22:49,160 --> 00:22:52,240
Speaker 2: a very special individual, Like he's a unique individual. He's

530
00:22:52,280 --> 00:22:56,760
Speaker 2: got essentially like an unfair advantage given his profession being

531
00:22:56,800 --> 00:22:59,200
Speaker 2: a realtor, being an investor, being someone who like eats

532
00:22:59,200 --> 00:23:01,200
Speaker 2: and breathes the stuff. He's got like a special set

533
00:23:01,200 --> 00:23:04,359
Speaker 2: of skills that allows him to essentially outperform when not

534
00:23:05,640 --> 00:23:08,520
Speaker 2: taken well, not everybody else could do that. But Kip,

535
00:23:08,600 --> 00:23:11,040
Speaker 2: I'm I'm glad you mentioned the diversification part of it, Joel,

536
00:23:11,040 --> 00:23:12,720
Speaker 2: because I feel like, what's funny is like I actually

537
00:23:12,800 --> 00:23:15,480
Speaker 2: kind of did the opposite thing several years ago. Essentially,

538
00:23:15,680 --> 00:23:17,760
Speaker 2: I didn't feel quite comfortable with the amount of real

539
00:23:17,880 --> 00:23:20,560
Speaker 2: estate that I had, how much wealth I had tied

540
00:23:20,640 --> 00:23:22,919
Speaker 2: up in real estate, and so that meant that I

541
00:23:22,920 --> 00:23:25,720
Speaker 2: pretty much like overnight, like once I had that realization,

542
00:23:25,800 --> 00:23:27,680
Speaker 2: like I just stopped looking at real estate, which I

543
00:23:27,720 --> 00:23:30,080
Speaker 2: will say it's harder to actually do that in practice

544
00:23:30,080 --> 00:23:32,480
Speaker 2: because you get in the habit of like scouring Zillow

545
00:23:32,520 --> 00:23:34,600
Speaker 2: and redfit and seeing what deals are out there, but

546
00:23:34,880 --> 00:23:37,520
Speaker 2: the ability to then try to funnel as many dollars

547
00:23:37,520 --> 00:23:39,159
Speaker 2: into the market. I just honestly, I felt like I

548
00:23:39,200 --> 00:23:42,080
Speaker 2: didn't have enough stock market exposure at that point in time.

549
00:23:42,480 --> 00:23:44,560
Speaker 2: But so much of that comes down to what it

550
00:23:44,680 --> 00:23:48,040
Speaker 2: is that you are interested in pursuing. And that's one

551
00:23:48,200 --> 00:23:52,200
Speaker 2: aspect of investing in real estate that you can't overlook.

552
00:23:52,520 --> 00:23:54,960
Speaker 2: It does take a lot of time, and the part

553
00:23:54,960 --> 00:23:57,879
Speaker 2: time nature of managing your own properties is something that

554
00:23:57,920 --> 00:24:00,320
Speaker 2: you need to make sure that you are well aware

555
00:24:00,320 --> 00:24:02,640
Speaker 2: of that getting yourself into yeah, yeah.

556
00:24:02,520 --> 00:24:04,479
Speaker 1: I mean that is one of the biggest drawbacks, right

557
00:24:04,480 --> 00:24:08,080
Speaker 1: because investing in the market incredibly passive dollar cost out.

558
00:24:08,280 --> 00:24:10,360
Speaker 1: You don't even have to really think about it once

559
00:24:10,400 --> 00:24:13,080
Speaker 1: you've got it set up. But with real estate, you're

560
00:24:13,080 --> 00:24:15,080
Speaker 1: going to be forced to think about it, and you're

561
00:24:15,080 --> 00:24:17,440
Speaker 1: gonna want to think about it proactively so that that

562
00:24:17,520 --> 00:24:21,760
Speaker 1: investment does well, because without regular maintenance and attention to

563
00:24:21,800 --> 00:24:24,280
Speaker 1: the property and to your tenants, like it won't do

564
00:24:24,320 --> 00:24:26,679
Speaker 1: all that well. Your sweat equity, your elbow grease is

565
00:24:26,680 --> 00:24:28,439
Speaker 1: going to be a big part of your ability to

566
00:24:28,480 --> 00:24:31,199
Speaker 1: make that investment succeed. And Kip also points out a

567
00:24:31,200 --> 00:24:32,920
Speaker 1: real problem with the real estate market right now. Matt

568
00:24:32,960 --> 00:24:35,840
Speaker 1: he mentions the lack of affordability. It's tough for want

569
00:24:35,880 --> 00:24:38,760
Speaker 1: to be primary homeowners, but it's also an issue for investors, right.

570
00:24:38,800 --> 00:24:40,679
Speaker 1: And so if you invest in the stock market and

571
00:24:40,680 --> 00:24:43,400
Speaker 1: we experienced a ten percent pull back, no harm, no foul, right,

572
00:24:43,440 --> 00:24:45,320
Speaker 1: But we've got a long time price in and you're

573
00:24:45,320 --> 00:24:47,960
Speaker 1: not like relying on that investment to produce income. But

574
00:24:47,960 --> 00:24:50,200
Speaker 1: if you buy an expensive home at a high rate

575
00:24:50,359 --> 00:24:54,400
Speaker 1: and the housing market experiences a correction or rents recede

576
00:24:54,520 --> 00:24:56,960
Speaker 1: as they have been in many markets around the country recently,

577
00:24:57,200 --> 00:24:59,439
Speaker 1: and you are banking on twenty five hundred dollars a

578
00:24:59,480 --> 00:25:01,359
Speaker 1: month in rent from that property, and now it's running

579
00:25:01,359 --> 00:25:04,399
Speaker 1: for twenty two fifty. Well, that impacts your cash flow, right,

580
00:25:04,440 --> 00:25:06,439
Speaker 1: and the rewards can be big, of course, but that

581
00:25:06,520 --> 00:25:09,359
Speaker 1: financial risk that you occur is bigger in real estate too.

582
00:25:09,440 --> 00:25:11,160
Speaker 2: Yeah, so what is it that Kip should do? Should

583
00:25:11,240 --> 00:25:13,280
Speaker 2: you wait? And that's going to be a hard question

584
00:25:13,320 --> 00:25:16,520
Speaker 2: to answer because I do see some influencers saying that, hey,

585
00:25:16,680 --> 00:25:18,960
Speaker 2: in twenty thirty, right, six years from now, you're going

586
00:25:19,000 --> 00:25:20,800
Speaker 2: to be thrilled that you bought a house back in

587
00:25:20,840 --> 00:25:25,320
Speaker 2: twenty twenty four. I do think that's likely true. But simultaneously,

588
00:25:25,359 --> 00:25:27,920
Speaker 2: home prizes have had a massive run up over the

589
00:25:27,960 --> 00:25:30,280
Speaker 2: past few years. Are they likely going to increase had

590
00:25:30,280 --> 00:25:33,040
Speaker 2: a similar clip over the next few years, I would

591
00:25:33,080 --> 00:25:35,399
Speaker 2: be surprised if they did. They're probably not going to

592
00:25:35,480 --> 00:25:37,840
Speaker 2: do that. I think we could see a price plateau

593
00:25:38,040 --> 00:25:41,119
Speaker 2: as the housing market normalizes. And it's not that you

594
00:25:41,480 --> 00:25:43,719
Speaker 2: can't find a deal that makes sense. It's just going

595
00:25:43,760 --> 00:25:45,760
Speaker 2: to be a whole lot harder though, given the current

596
00:25:45,800 --> 00:25:48,919
Speaker 2: market conditions. And yeah, what's to do in the meantime though,

597
00:25:48,960 --> 00:25:53,200
Speaker 2: because you know, you can't dollar cost average into real estate, unless, however,

598
00:25:53,440 --> 00:25:56,560
Speaker 2: you opt for reats like you mentioned. I think that

599
00:25:56,600 --> 00:25:58,600
Speaker 2: could be a reasonable choice because you're going to avoid

600
00:25:58,680 --> 00:26:01,640
Speaker 2: the part time a portion of investing in real estate.

601
00:26:01,680 --> 00:26:03,480
Speaker 2: But again, at the same time, you're going to miss

602
00:26:03,520 --> 00:26:06,520
Speaker 2: out on some of the reasons that owning physical property,

603
00:26:06,720 --> 00:26:09,400
Speaker 2: the reasons that make that even more beneficial as well.

604
00:26:09,400 --> 00:26:11,960
Speaker 2: And so personally, I didn't like if I didn't own

605
00:26:12,200 --> 00:26:13,760
Speaker 2: and I think a lot of folks might say, well, yeah,

606
00:26:13,760 --> 00:26:16,480
Speaker 2: Matt juwel y'all, you know you have actual physical real estate.

607
00:26:16,520 --> 00:26:18,880
Speaker 2: That's why you don't recommend reads. I personally don't think

608
00:26:18,880 --> 00:26:21,600
Speaker 2: I would actually invest in reads either. If yeah, I don't,

609
00:26:21,760 --> 00:26:23,320
Speaker 2: I truly don't think I would. I think I would

610
00:26:23,600 --> 00:26:25,960
Speaker 2: rather just play it safe and simple, just invest in

611
00:26:25,960 --> 00:26:27,600
Speaker 2: the S and p FI funded all the way, just

612
00:26:27,600 --> 00:26:30,679
Speaker 2: like I currently am. It's just that the deals that

613
00:26:30,680 --> 00:26:33,480
Speaker 2: we came across, given the interest rate environment that we

614
00:26:33,520 --> 00:26:37,320
Speaker 2: were in five to twelve years ago, the pricing environment too,

615
00:26:37,400 --> 00:26:39,200
Speaker 2: it made all the sense in the world at that

616
00:26:39,240 --> 00:26:41,879
Speaker 2: point in time. And yeah, like Kip is realizing it,

617
00:26:42,000 --> 00:26:43,960
Speaker 2: it does not seem like it makes as much sense

618
00:26:44,080 --> 00:26:44,560
Speaker 2: these days.

619
00:26:44,640 --> 00:26:47,520
Speaker 1: Yeah, I mean, you and I were valuists, and so

620
00:26:47,920 --> 00:26:50,280
Speaker 1: what a real estate If someone came to me and said, hey,

621
00:26:50,320 --> 00:26:51,960
Speaker 1: I want to show you this property for one hundred

622
00:26:51,960 --> 00:26:54,200
Speaker 1: thousand dollars, and it was gonna the rent on the

623
00:26:54,240 --> 00:26:56,240
Speaker 1: property was likely going to be fourteen hundred dollars. I'd

624
00:26:56,240 --> 00:26:58,159
Speaker 1: be like, Uh, great, let's do this.

625
00:26:58,200 --> 00:26:58,960
Speaker 2: When can we close?

626
00:26:59,160 --> 00:27:03,640
Speaker 1: But the economics currently don't make sense for most want

627
00:27:03,640 --> 00:27:06,480
Speaker 1: to be investors, especially people just starting out. It's really

628
00:27:06,480 --> 00:27:07,919
Speaker 1: hard to find a deal where it was just so

629
00:27:08,000 --> 00:27:10,760
Speaker 1: much easier to find a reasonable deal that made sense

630
00:27:10,800 --> 00:27:15,040
Speaker 1: and could cash flow with solid upside six eight, ten

631
00:27:15,119 --> 00:27:17,400
Speaker 1: years ago. So it's a tougher environment. You're write, Matt,

632
00:27:17,400 --> 00:27:19,399
Speaker 1: and I don't know. I would tell Kip you got

633
00:27:19,440 --> 00:27:22,080
Speaker 1: the cash on hand, keep looking for deals, don't hesitate

634
00:27:22,080 --> 00:27:23,840
Speaker 1: to make offers, and follow through if you find a

635
00:27:23,840 --> 00:27:26,040
Speaker 1: good one. But also don't feel like you have to

636
00:27:26,359 --> 00:27:28,000
Speaker 1: write if nothing great comes along.

637
00:27:28,040 --> 00:27:28,439
Speaker 2: I would not.

638
00:27:29,040 --> 00:27:31,360
Speaker 1: I think patience is key as a real estate investor

639
00:27:31,359 --> 00:27:34,120
Speaker 1: waiting for the right deal, especially if it's your first deal.

640
00:27:34,320 --> 00:27:36,400
Speaker 1: There's a real estate investor I follow Matt and he's

641
00:27:36,680 --> 00:27:40,280
Speaker 1: so incredibly patient, and he's like, I'm constantly making offers.

642
00:27:40,440 --> 00:27:43,040
Speaker 1: He hasn't done a deal in like two or three years,

643
00:27:43,600 --> 00:27:46,960
Speaker 1: but he's always looking and always ready to pounce, and

644
00:27:47,400 --> 00:27:49,480
Speaker 1: he's at the ready like a gun slinger from the

645
00:27:49,520 --> 00:27:52,000
Speaker 1: old Wild West or something like that. Right, he's ready

646
00:27:52,000 --> 00:27:54,479
Speaker 1: to go when given the chance. But I think that

647
00:27:54,560 --> 00:27:56,679
Speaker 1: patience pays off in spades. It's better to get no

648
00:27:56,760 --> 00:27:57,840
Speaker 1: deal than to get a bad deal.

649
00:27:57,880 --> 00:28:00,760
Speaker 2: Totally. But all right, let's hear from our next listener, Joel.

650
00:28:00,800 --> 00:28:02,520
Speaker 2: This is a listener who is trying to figure out

651
00:28:02,560 --> 00:28:04,200
Speaker 2: what to do with her mortgage.

652
00:28:04,520 --> 00:28:08,360
Speaker 4: Hi, guys, this is Becky from Pennsylvania. Thanks for answering

653
00:28:08,400 --> 00:28:11,560
Speaker 4: my question and for all the wonderful resources you provide.

654
00:28:12,480 --> 00:28:16,000
Speaker 4: I have three options I could go with my money

655
00:28:16,000 --> 00:28:17,960
Speaker 4: for the next year, and I'm not sure which way

656
00:28:18,000 --> 00:28:20,680
Speaker 4: to go. The number one thing I wanted to do

657
00:28:20,920 --> 00:28:23,919
Speaker 4: was to pay off my thirty thousand dollars mortgage and

658
00:28:24,000 --> 00:28:27,560
Speaker 4: have that wonderful feeling of being debt free. However, it

659
00:28:27,640 --> 00:28:30,680
Speaker 4: is low interest at three point one two five percent.

660
00:28:31,359 --> 00:28:34,119
Speaker 4: The second thing I could do is save my money

661
00:28:34,200 --> 00:28:36,760
Speaker 4: in a high ye savings account at four point one

662
00:28:36,840 --> 00:28:39,760
Speaker 4: two five percent. Would be nice to just save money

663
00:28:39,760 --> 00:28:43,240
Speaker 4: and collect interest. The third option is to do a

664
00:28:43,280 --> 00:28:46,800
Speaker 4: home renovation, and that would be nice to have done.

665
00:28:47,280 --> 00:28:49,360
Speaker 4: Can you tell me why I should keep my mortgage.

666
00:28:49,560 --> 00:28:52,320
Speaker 1: Thanks guys, Well, Matt, can we tell her why she

667
00:28:52,320 --> 00:28:54,120
Speaker 1: should keep her mortgage? I got to say, I love

668
00:28:54,160 --> 00:28:55,920
Speaker 1: the Becky's done her homework on this. She's come up

669
00:28:55,920 --> 00:28:59,479
Speaker 1: with three options. She really thought through this, right, And Becky,

670
00:28:59,480 --> 00:29:02,680
Speaker 1: that shines through in your question that you have you've

671
00:29:02,680 --> 00:29:05,480
Speaker 1: really Yeah, you've given this some thought over a period

672
00:29:05,520 --> 00:29:07,920
Speaker 1: of time, and yeah, you just you feel like you're

673
00:29:07,920 --> 00:29:10,120
Speaker 1: at a crossroads, maybe at a little bit of a conundrum,

674
00:29:10,160 --> 00:29:12,040
Speaker 1: and we'll do our best offer, like some pros and

675
00:29:12,040 --> 00:29:14,800
Speaker 1: cons of each of those potential decisions that you threw out.

676
00:29:14,880 --> 00:29:17,600
Speaker 2: Yeah, and specifically, Becky said that she's got her money

677
00:29:17,680 --> 00:29:19,959
Speaker 2: saved in a high yield savings account. By the way,

678
00:29:19,960 --> 00:29:21,440
Speaker 2: because I would say, if you were with one of

679
00:29:21,440 --> 00:29:23,960
Speaker 2: the big banks getting paid next to nothing, that would

680
00:29:23,960 --> 00:29:26,840
Speaker 2: obviously be a real problem. But Becky, you made it

681
00:29:26,880 --> 00:29:29,280
Speaker 2: sound like that the number one most exciting option for

682
00:29:29,400 --> 00:29:32,479
Speaker 2: you is to pay off that mortgage. You quoted it,

683
00:29:32,760 --> 00:29:35,920
Speaker 2: called it the wonderful feeling of being totally debt free,

684
00:29:36,240 --> 00:29:38,640
Speaker 2: and it certainly sounds lovely. And while it's not like

685
00:29:38,760 --> 00:29:42,200
Speaker 2: that there is a massive post tax gap between what

686
00:29:42,280 --> 00:29:44,239
Speaker 2: you would earn there in your savings account, and then

687
00:29:44,280 --> 00:29:46,320
Speaker 2: the debt that you'd be paying off. That being said,

688
00:29:46,680 --> 00:29:48,520
Speaker 2: not paying it off gives you options.

689
00:29:48,560 --> 00:29:51,600
Speaker 1: Basically, Hey, the income you make from that high yield

690
00:29:51,600 --> 00:29:54,760
Speaker 1: savings account, you're gonna be taxed on it, and so yeah,

691
00:29:54,800 --> 00:29:56,000
Speaker 1: you're okay, cool, five percent.

692
00:29:56,040 --> 00:29:56,480
Speaker 2: That's great.

693
00:29:56,480 --> 00:29:58,440
Speaker 1: Well, when you're taxed on the earning to that five percent,

694
00:29:58,560 --> 00:30:00,320
Speaker 1: it's not quite five percent relie the day.

695
00:30:00,520 --> 00:30:03,080
Speaker 2: Yeah. Yeah. But I guess what I'm trying to highlight here, though,

696
00:30:03,160 --> 00:30:05,280
Speaker 2: is the fact that having some liquid savings on hand,

697
00:30:05,400 --> 00:30:08,920
Speaker 2: especially there within a high yield savings account like that,

698
00:30:09,120 --> 00:30:11,840
Speaker 2: it's incredibly underrated and you might not know what it

699
00:30:11,920 --> 00:30:13,840
Speaker 2: is that you need it for now, although it does

700
00:30:13,840 --> 00:30:15,440
Speaker 2: sound like you do know what you want to use

701
00:30:15,440 --> 00:30:17,960
Speaker 2: it for, possibly a renovation, but you might end up

702
00:30:18,040 --> 00:30:20,440
Speaker 2: changing your mind. But while that debt free feeling would

703
00:30:20,480 --> 00:30:23,360
Speaker 2: be incredibly nice, you're already headed in that direction already,

704
00:30:23,400 --> 00:30:25,480
Speaker 2: and I would say maybe just just hold off a

705
00:30:25,480 --> 00:30:27,800
Speaker 2: bit longer, especially to considering the fact that if you've

706
00:30:27,840 --> 00:30:30,120
Speaker 2: worked that balance down to I think she said thirty

707
00:30:30,160 --> 00:30:33,240
Speaker 2: thousand dollars, the majority of what she's paying with you

708
00:30:33,520 --> 00:30:35,560
Speaker 2: when it comes to her mortgage payments, she's paying to herself,

709
00:30:35,600 --> 00:30:39,200
Speaker 2: and so there isn't a high amount of that payment

710
00:30:39,200 --> 00:30:42,320
Speaker 2: that is going towards interest, that's going look at the statements. Yeah,

711
00:30:42,360 --> 00:30:44,240
Speaker 2: that's go into the bank. That money is going towards

712
00:30:44,280 --> 00:30:45,840
Speaker 2: equity within your actual property.

713
00:30:45,920 --> 00:30:49,280
Speaker 1: Yeah, so it's truly a personal decision. I think paying

714
00:30:49,280 --> 00:30:51,280
Speaker 1: off your mortgage, even if it is attached to an

715
00:30:51,280 --> 00:30:54,680
Speaker 1: incredibly low rate, is less egregious. Right when you're closing

716
00:30:54,680 --> 00:30:56,840
Speaker 1: in on your retirement years, If you pay that off

717
00:30:56,880 --> 00:31:00,440
Speaker 1: like laser focused, and you're avoiding investments because in your

718
00:31:00,440 --> 00:31:02,920
Speaker 1: in your late twenties or early thirties or something like that,

719
00:31:03,120 --> 00:31:04,160
Speaker 1: it's a different ballgame.

720
00:31:04,920 --> 00:31:07,760
Speaker 2: But yeah, there's a lot of time that money is

721
00:31:07,800 --> 00:31:10,280
Speaker 2: not compounding where you're getting a headstart on your investments

722
00:31:10,320 --> 00:31:13,760
Speaker 2: as opposed to eliminating something that's yeah, provides you with

723
00:31:13,760 --> 00:31:14,480
Speaker 2: a little more piece of it.

724
00:31:14,600 --> 00:31:16,320
Speaker 1: There's just so many more financial goals you're trying to

725
00:31:16,360 --> 00:31:19,840
Speaker 1: achieve in those earlier decades that you just don't want

726
00:31:19,840 --> 00:31:22,320
Speaker 1: to prioritize something that should be a low priority. And

727
00:31:22,360 --> 00:31:24,120
Speaker 1: I'm not sure how old you are, Becky, but I

728
00:31:24,160 --> 00:31:26,400
Speaker 1: would allow your age to be at least a partial

729
00:31:26,480 --> 00:31:29,520
Speaker 1: influence on this. Consciously paying off your mortgage in your sixties,

730
00:31:29,560 --> 00:31:31,280
Speaker 1: even if it's not the most optimized thing to do,

731
00:31:31,520 --> 00:31:34,080
Speaker 1: can provide the peace of mind that you mentioned, and

732
00:31:34,120 --> 00:31:36,720
Speaker 1: it can help protect your wealth by increasing your cash flow.

733
00:31:36,880 --> 00:31:39,120
Speaker 1: So that is something worth taking into consideration. And again

734
00:31:39,280 --> 00:31:40,840
Speaker 1: it's a personal choice. I think you can go either

735
00:31:40,880 --> 00:31:42,600
Speaker 1: way here, but just want to throw that out there,

736
00:31:42,600 --> 00:31:45,200
Speaker 1: that age should be at least part of yours. I

737
00:31:45,200 --> 00:31:48,160
Speaker 1: think it's also a lot of advisors are now saying

738
00:31:48,560 --> 00:31:51,360
Speaker 1: to older Americans, don't pay off your mortgage early. Actually

739
00:31:51,440 --> 00:31:54,560
Speaker 1: retain that flexibility. So I do think that things have changed,

740
00:31:54,760 --> 00:31:56,760
Speaker 1: but I do think it's at least more advisable still

741
00:31:56,840 --> 00:31:59,560
Speaker 1: later on in life than it is those early investing years.

742
00:31:59,640 --> 00:32:01,320
Speaker 2: Yeah, and then again, just at the very end of

743
00:32:01,360 --> 00:32:04,920
Speaker 2: Becky's question, she mentioned renovating her home, and you know,

744
00:32:05,000 --> 00:32:07,959
Speaker 2: I'm not sure of how big of a renovation she's considering.

745
00:32:08,000 --> 00:32:09,520
Speaker 2: I'm not sure how much it's going to cost, Becky,

746
00:32:09,880 --> 00:32:13,360
Speaker 2: but hopefully your current stash of cash is going to

747
00:32:13,400 --> 00:32:15,360
Speaker 2: be enough to pull it off, because I think you

748
00:32:15,400 --> 00:32:17,160
Speaker 2: would end up putting yourself up the creek without a

749
00:32:17,160 --> 00:32:20,640
Speaker 2: paddle if you paid off that low interest mortgage with

750
00:32:20,720 --> 00:32:22,880
Speaker 2: all of your available cash. And then you found yourself

751
00:32:22,920 --> 00:32:25,120
Speaker 2: in a position where that renovation, where it's a high

752
00:32:25,160 --> 00:32:27,520
Speaker 2: priority and you haven't been able to save up enough

753
00:32:27,560 --> 00:32:29,600
Speaker 2: in order to pay for it with cash. Again, I

754
00:32:29,640 --> 00:32:32,200
Speaker 2: think a lot of times, the paidoff mortgage, it's sort

755
00:32:32,200 --> 00:32:35,880
Speaker 2: of like a default goal that folks have when I

756
00:32:35,920 --> 00:32:37,800
Speaker 2: don't know, maybe when you haven't given it a whole

757
00:32:37,800 --> 00:32:39,880
Speaker 2: lot of thought as to what, in this case, what

758
00:32:39,960 --> 00:32:42,280
Speaker 2: you want your space to look like. And I don't know,

759
00:32:42,440 --> 00:32:44,800
Speaker 2: in my mind, the renovation and creating something that you're

760
00:32:45,040 --> 00:32:47,280
Speaker 2: really excited about that's just so much more empowering and

761
00:32:47,360 --> 00:32:50,440
Speaker 2: so much more encouraging, and something that is going to

762
00:32:50,800 --> 00:32:52,480
Speaker 2: I don't know, cause you to maybe even cut back

763
00:32:52,480 --> 00:32:54,240
Speaker 2: in other areas of life. Maybe that's going to cause

764
00:32:54,240 --> 00:32:56,200
Speaker 2: you to go out there and earn a little bit more,

765
00:32:56,240 --> 00:32:59,280
Speaker 2: maybe earn another bonus, like hit a higher sales amount,

766
00:32:59,320 --> 00:33:01,200
Speaker 2: the kind of thing that gets you fired up to

767
00:33:01,240 --> 00:33:03,760
Speaker 2: really chase after this goal of reniventing your home, if

768
00:33:03,760 --> 00:33:05,720
Speaker 2: that's the goal of yours that you've set for yourself.

769
00:33:06,280 --> 00:33:08,360
Speaker 1: You kind of mentioned this map, but I have an

770
00:33:08,440 --> 00:33:11,680
Speaker 1: example from a friend who recently paid for a house

771
00:33:11,760 --> 00:33:14,080
Speaker 1: in cash, and they were renovating that house and it

772
00:33:14,120 --> 00:33:16,560
Speaker 1: turns out the renovations cost more than they thought, and

773
00:33:16,600 --> 00:33:18,080
Speaker 1: then what they have to do. They had to borrow

774
00:33:18,160 --> 00:33:20,520
Speaker 1: money at a higher interest rate because they bought this

775
00:33:20,560 --> 00:33:22,160
Speaker 1: house a couple of years ago, and if they had

776
00:33:22,200 --> 00:33:24,520
Speaker 1: financed the home and not not like I love the

777
00:33:24,560 --> 00:33:26,720
Speaker 1: idea of a paidoff mortgage, Like, I'm not trying to

778
00:33:26,760 --> 00:33:28,520
Speaker 1: hate on that, I'm just saying that if they had

779
00:33:28,760 --> 00:33:30,680
Speaker 1: thought about it a little bit longer on the front end,

780
00:33:30,680 --> 00:33:33,479
Speaker 1: they might have realized, Hey, we might need some extra cushion.

781
00:33:33,480 --> 00:33:34,920
Speaker 1: The cash that we have on hand isn't going to

782
00:33:34,960 --> 00:33:37,560
Speaker 1: be able to pay for this renovation that we're talking about.

783
00:33:37,600 --> 00:33:40,640
Speaker 1: And so if Becky were to pay off this mortgage

784
00:33:40,680 --> 00:33:42,600
Speaker 1: and then realize I'm going through it the rento, but

785
00:33:42,600 --> 00:33:44,240
Speaker 1: I don't have enough cash to pay for it, She's

786
00:33:44,280 --> 00:33:46,520
Speaker 1: going to have to finance the renovations at a much

787
00:33:46,720 --> 00:33:49,240
Speaker 1: higher cost, pulling out a helock or something from that

788
00:33:49,280 --> 00:33:52,400
Speaker 1: home instead. And so this is where you'd be potentially

789
00:33:52,400 --> 00:33:54,560
Speaker 1: short sighted to pay out that mortgage, because if that

790
00:33:54,600 --> 00:33:57,200
Speaker 1: renovation becomes a higher priority, I could see it costing

791
00:33:57,320 --> 00:33:59,520
Speaker 1: more and you having to finance it in far worse

792
00:33:59,560 --> 00:34:01,600
Speaker 1: ways than that current low interest rate.

793
00:34:01,640 --> 00:34:03,880
Speaker 2: Primary morg. Yeah, she's gonna have worse terms, she's gonna

794
00:34:03,880 --> 00:34:06,080
Speaker 2: have a worse rate, And as long as she's not

795
00:34:06,160 --> 00:34:08,719
Speaker 2: frittering away her savings where she's allowing that cash to

796
00:34:08,719 --> 00:34:11,160
Speaker 2: burn a hole in her pocket, I think keeping it

797
00:34:11,320 --> 00:34:15,320
Speaker 2: around for potential renovation needs right. Keeping that mortgage intact,

798
00:34:15,320 --> 00:34:18,120
Speaker 2: I think that makes the most sense, and that debt

799
00:34:18,160 --> 00:34:20,839
Speaker 2: payoff it will feel good when you finally get there,

800
00:34:21,040 --> 00:34:23,120
Speaker 2: and it's not gonna be long either, considering where your

801
00:34:23,120 --> 00:34:26,080
Speaker 2: your mortgage balance stands. But I think rushing it it's

802
00:34:26,080 --> 00:34:28,239
Speaker 2: going to acap all of your cash, is going to

803
00:34:28,520 --> 00:34:31,040
Speaker 2: leave you ill liquid, putting you in an overall worse

804
00:34:31,080 --> 00:34:34,200
Speaker 2: financial position personally. That's the path I would say, And

805
00:34:34,200 --> 00:34:35,560
Speaker 2: you might be able to basically do all the above.

806
00:34:35,600 --> 00:34:39,319
Speaker 1: Right, keep the mortgage. That's awesome. I mean no debt

807
00:34:39,400 --> 00:34:42,439
Speaker 1: is like awesome, awesome, but like it's more relatively awesome

808
00:34:42,440 --> 00:34:44,719
Speaker 1: in the alternatives. Keep that thing around, you might be

809
00:34:44,760 --> 00:34:46,680
Speaker 1: able to do the renovation with cash on hand, pay

810
00:34:46,680 --> 00:34:49,959
Speaker 1: off that mortgage in short order, and have no debt

811
00:34:50,440 --> 00:34:53,040
Speaker 1: in a few years, have a renovated at home, and

812
00:34:53,080 --> 00:34:55,120
Speaker 1: be saving up cash with that increased cash flow too.

813
00:34:55,160 --> 00:34:57,839
Speaker 1: So I think this is a situation where you can

814
00:34:57,960 --> 00:34:58,640
Speaker 1: have it all, Becky.

815
00:34:58,760 --> 00:35:00,200
Speaker 2: That's what we're rooting for for you. All Right.

816
00:35:00,360 --> 00:35:02,719
Speaker 1: We've got more to get to on this episode, including yeah,

817
00:35:02,719 --> 00:35:05,640
Speaker 1: how to save a bundle of money on a rental car.

818
00:35:05,719 --> 00:35:16,000
Speaker 2: We'll talk about that and more right after this. All right,

819
00:35:16,040 --> 00:35:18,680
Speaker 2: but we are back and it is now time for

820
00:35:18,719 --> 00:35:21,160
Speaker 2: the Facebook Question of the week. This one is from

821
00:35:21,320 --> 00:35:25,360
Speaker 2: Katie and she writes, I'm reshopping my insurance coverage in

822
00:35:25,400 --> 00:35:28,840
Speaker 2: my current company. State Farm is promoting their drive Safe

823
00:35:28,840 --> 00:35:33,120
Speaker 2: and Save program where their app monitors your driving habits.

824
00:35:33,560 --> 00:35:36,040
Speaker 2: They claim that you can only receive a discount with

825
00:35:36,120 --> 00:35:38,719
Speaker 2: potential savings of one and twenty five to two hundred

826
00:35:38,719 --> 00:35:42,320
Speaker 2: and fifty bucks every six months. The potential privacy implications

827
00:35:42,360 --> 00:35:45,240
Speaker 2: and the idea of Big Brother watching is a little

828
00:35:45,239 --> 00:35:48,239
Speaker 2: off putting. What are your experiences with these types of

829
00:35:48,239 --> 00:35:50,400
Speaker 2: programs and do you think it's worth it? Jill? I

830
00:35:50,480 --> 00:35:52,200
Speaker 2: know you think it's worth it because this is something

831
00:35:52,200 --> 00:35:52,719
Speaker 2: that you've done.

832
00:35:53,080 --> 00:35:56,520
Speaker 1: Yeah, most of our Facebook audience did not does not

833
00:35:56,600 --> 00:35:58,600
Speaker 1: agree with me on this one. I love this question,

834
00:35:58,920 --> 00:36:01,160
Speaker 1: especially since I I literally just went through this with

835
00:36:01,320 --> 00:36:04,160
Speaker 1: my company, Liberty Mutual. I was able to knock fifteen

836
00:36:04,160 --> 00:36:07,080
Speaker 1: percent off my rate, which is pretty good, resultant in

837
00:36:07,440 --> 00:36:10,160
Speaker 1: a couple hundred dollars savings over the course of a year.

838
00:36:10,920 --> 00:36:12,600
Speaker 1: The thing that annoyed me, Matt, I got a score

839
00:36:12,600 --> 00:36:15,200
Speaker 1: of eighty nine, and ninety qualified you for the higher

840
00:36:15,280 --> 00:36:15,960
Speaker 1: higher savings.

841
00:36:16,239 --> 00:36:18,399
Speaker 2: So how many folks do you think at the eighty nine?

842
00:36:18,719 --> 00:36:22,160
Speaker 1: Yeah, I guarantee, I'm guessing they give the ninety out

843
00:36:22,200 --> 00:36:24,200
Speaker 1: to ninety plus out to almost nobody.

844
00:36:24,280 --> 00:36:24,520
Speaker 2: Yeah.

845
00:36:24,560 --> 00:36:27,200
Speaker 1: So it's just it's one of those things where you

846
00:36:27,239 --> 00:36:30,400
Speaker 1: know it's it feels like it's slightly rigged, but I

847
00:36:30,440 --> 00:36:33,480
Speaker 1: did get a discount and it's not insignificant, so it's

848
00:36:33,480 --> 00:36:35,200
Speaker 1: at least worth considering whether or not you want them

849
00:36:35,239 --> 00:36:38,040
Speaker 1: to monitor you're driving. There are other tactics. Of course,

850
00:36:38,400 --> 00:36:40,120
Speaker 1: drive less if you can. That's an easy way to

851
00:36:40,120 --> 00:36:42,480
Speaker 1: save money. Most insurance companies, if you drive less than

852
00:36:42,480 --> 00:36:45,200
Speaker 1: seventy five hundred miles a year, they won't charge you

853
00:36:45,200 --> 00:36:48,760
Speaker 1: as much. Ask for all the discounts. I would literally

854
00:36:48,920 --> 00:36:51,680
Speaker 1: pester your surance agents or the person on the customer

855
00:36:51,719 --> 00:36:54,880
Speaker 1: service line to death about what discounts they offer you.

856
00:36:55,080 --> 00:36:57,080
Speaker 1: I said literally, that didn't really mean literally there, but

857
00:36:57,400 --> 00:36:59,920
Speaker 1: increase your deductible self insure more. Those are always to

858
00:37:00,120 --> 00:37:02,799
Speaker 1: save on insurance too. But I'd be willing and I

859
00:37:02,920 --> 00:37:05,160
Speaker 1: was willing to allow my insurance company to track my

860
00:37:05,320 --> 00:37:08,200
Speaker 1: driving too. But I also realize it's not for everyone. Again,

861
00:37:08,200 --> 00:37:10,759
Speaker 1: most of the people in the Facebook group disagree with.

862
00:37:10,640 --> 00:37:11,000
Speaker 2: Me on this.

863
00:37:11,360 --> 00:37:14,040
Speaker 1: They are not willing to give over that data their

864
00:37:14,080 --> 00:37:15,440
Speaker 1: privacy to insurance companies.

865
00:37:15,560 --> 00:37:18,240
Speaker 2: It's a relatively new practice, but the different insurance companies

866
00:37:18,239 --> 00:37:20,160
Speaker 2: they're still figuring out what to do with the information

867
00:37:20,239 --> 00:37:22,799
Speaker 2: that they're collecting, and some of the companies out there

868
00:37:22,840 --> 00:37:24,920
Speaker 2: are selling it. I get how that turns a lot

869
00:37:24,960 --> 00:37:27,120
Speaker 2: of people off personally. This is something I've done too.

870
00:37:27,200 --> 00:37:28,719
Speaker 2: It's been I don't know how many years ago it was.

871
00:37:28,760 --> 00:37:30,120
Speaker 2: I did it like maybe five years ago, and I

872
00:37:30,120 --> 00:37:32,480
Speaker 2: can't remember. This is with a different insurance provider. I

873
00:37:32,520 --> 00:37:34,600
Speaker 2: just remember being like, oh, I got to accelerate really

874
00:37:34,640 --> 00:37:38,160
Speaker 2: slowly as well. It changes your driving like everything. But

875
00:37:38,560 --> 00:37:40,480
Speaker 2: the one thing to keep in mind is that the

876
00:37:40,560 --> 00:37:43,120
Speaker 2: data that they're collecting, it could be used against you

877
00:37:43,239 --> 00:37:46,200
Speaker 2: if you are involved in an accident, So just keep

878
00:37:46,200 --> 00:37:48,640
Speaker 2: that in mind. We've all got different things that we're

879
00:37:48,640 --> 00:37:50,760
Speaker 2: willing to do. We've got different lines that we're willing

880
00:37:50,920 --> 00:37:52,680
Speaker 2: or not willing to cross in order to save money.

881
00:37:52,719 --> 00:37:54,760
Speaker 2: I feel like this this could be a quasi frugal

882
00:37:54,800 --> 00:37:57,480
Speaker 2: or cheap Are you willing to be spied upon in

883
00:37:57,560 --> 00:38:00,239
Speaker 2: order to save a buck? But a couple things worth

884
00:38:00,280 --> 00:38:02,960
Speaker 2: mentioning here. Most of the time, you're only signing up

885
00:38:02,960 --> 00:38:05,919
Speaker 2: to have your driving track for a finite amount of time.

886
00:38:05,920 --> 00:38:09,359
Speaker 2: We're typically talking about ninety days and then plus most

887
00:38:09,360 --> 00:38:12,040
Speaker 2: insurance companies they're only going to lower your rate. They

888
00:38:12,080 --> 00:38:14,320
Speaker 2: at least claim, and I don't you know, we'll see

889
00:38:14,560 --> 00:38:17,000
Speaker 2: where the everything lands on this, but they claim that

890
00:38:17,080 --> 00:38:20,360
Speaker 2: you will not have your rate raised if you're driving

891
00:38:20,560 --> 00:38:22,719
Speaker 2: is an awesome yea. So I don't know, you can

892
00:38:22,719 --> 00:38:24,359
Speaker 2: take that with a grain of assault. That's what they're saying.

893
00:38:24,400 --> 00:38:26,120
Speaker 2: That's what they're claiming, and that's you know, I guess

894
00:38:26,160 --> 00:38:27,840
Speaker 2: you could be a part of a class action lawsuit

895
00:38:27,880 --> 00:38:29,600
Speaker 2: if it comes out that, in fact.

896
00:38:29,400 --> 00:38:31,400
Speaker 1: They use this to raise your rates because they had

897
00:38:31,239 --> 00:38:33,080
Speaker 1: the data on you when you said you did it

898
00:38:33,120 --> 00:38:34,880
Speaker 1: five years ago, I just did it recently. A lot

899
00:38:34,960 --> 00:38:36,719
Speaker 1: more information has come out over the past five years

900
00:38:36,760 --> 00:38:38,759
Speaker 1: about what insurance companies are doing with this data, and

901
00:38:38,760 --> 00:38:41,759
Speaker 1: so I get maybe the knee jerk like, oh, heck no, no,

902
00:38:41,760 --> 00:38:45,319
Speaker 1: I'll let them monitor my driving response. I'm I'm just

903
00:38:45,360 --> 00:38:47,759
Speaker 1: willing to trade off some of that privacy for the

904
00:38:47,760 --> 00:38:49,360
Speaker 1: same needs to come along with it. But I also

905
00:38:49,800 --> 00:38:52,520
Speaker 1: understand and respect someone's decision if they say they're not

906
00:38:52,520 --> 00:38:54,440
Speaker 1: willing to do that, So everyone's.

907
00:38:54,120 --> 00:38:57,520
Speaker 2: Got yeah, it's it's a personal decision. But like simultaneously,

908
00:38:57,600 --> 00:38:59,680
Speaker 2: I don't know, maybe I'm just predisposed to allowing myself

909
00:38:59,719 --> 00:39:01,640
Speaker 2: to be tryed. Like I honestly don't really care because

910
00:39:01,640 --> 00:39:03,640
Speaker 2: I think a lot of folks are imagining some sort

911
00:39:03,640 --> 00:39:06,680
Speaker 2: of worst case scenario of like into the world like

912
00:39:06,719 --> 00:39:09,640
Speaker 2: post apocalyptic and like the big state is going to

913
00:39:09,680 --> 00:39:11,360
Speaker 2: come after you because they know where it is that

914
00:39:11,400 --> 00:39:14,040
Speaker 2: you eat or something like that. But like, like truly

915
00:39:14,160 --> 00:39:16,399
Speaker 2: in my like the worst case of Smith movie Enemy

916
00:39:16,400 --> 00:39:18,640
Speaker 2: of the State something, Yeah, Like what's most likely gonna

917
00:39:18,640 --> 00:39:20,719
Speaker 2: happen is you're just gonna get more targeted ads. And

918
00:39:20,760 --> 00:39:22,560
Speaker 2: I'm like, Okay, I don't care if I get targeted

919
00:39:22,600 --> 00:39:24,080
Speaker 2: a pair of running shoes that maybe I was already

920
00:39:24,080 --> 00:39:26,319
Speaker 2: going to buy, like oh it turns out there on sale.

921
00:39:26,320 --> 00:39:29,319
Speaker 2: Actually appreciate that as a post, like it's a very

922
00:39:29,400 --> 00:39:32,280
Speaker 2: it's like child's play. It's very PG rated as opposed

923
00:39:32,320 --> 00:39:35,759
Speaker 2: to like some like hardcore crackdown, where like they know

924
00:39:35,880 --> 00:39:38,239
Speaker 2: all of your goings abouts. I think it's also what

925
00:39:38,280 --> 00:39:38,960
Speaker 2: you do during the day.

926
00:39:39,040 --> 00:39:41,400
Speaker 1: Yeah, I think it's also worth mentioning that people should

927
00:39:41,400 --> 00:39:43,840
Speaker 1: probably only sign up for this if they feel like

928
00:39:43,840 --> 00:39:46,600
Speaker 1: they fall into the grandma driver category, right, Like, uh,

929
00:39:46,960 --> 00:39:48,880
Speaker 1: I think it made sense for me because I don't

930
00:39:48,960 --> 00:39:52,160
Speaker 1: drive very much. I walk, I bike almost everywhere, so

931
00:39:52,480 --> 00:39:54,759
Speaker 1: we we yes, we drive the car, but we drive

932
00:39:54,800 --> 00:39:56,759
Speaker 1: so little, and we don't have some sort of like

933
00:39:56,880 --> 00:40:00,120
Speaker 1: daily regular commute or anything like that. If you you

934
00:40:00,160 --> 00:40:02,839
Speaker 1: aren't a cautious driver, right, if you frequently drive late

935
00:40:02,840 --> 00:40:05,359
Speaker 1: at night, if you break hard, don't do this, Like,

936
00:40:05,640 --> 00:40:07,400
Speaker 1: don't sign up for this. I just knew that I

937
00:40:07,440 --> 00:40:09,520
Speaker 1: fit the parameters where it made more sense for me.

938
00:40:09,640 --> 00:40:12,400
Speaker 1: I think other people, Matt, who are driving all the

939
00:40:12,440 --> 00:40:16,080
Speaker 1: time and feel like they maybe are a less cautious driver, like,

940
00:40:16,520 --> 00:40:18,640
Speaker 1: they probably shouldn't sign up for this thing. One They're

941
00:40:18,640 --> 00:40:20,080
Speaker 1: probably not going to save money and then so then

942
00:40:20,120 --> 00:40:21,960
Speaker 1: it becomes not worth it. And then on top of that,

943
00:40:22,000 --> 00:40:24,480
Speaker 1: you're talking about the potential for some of your privacy

944
00:40:24,520 --> 00:40:26,080
Speaker 1: to be violated. If you're not going to save any

945
00:40:26,080 --> 00:40:27,799
Speaker 1: money in the process, it's definitely not worth it, right,

946
00:40:27,880 --> 00:40:30,359
Speaker 1: And so I will say too, I mentioned this, but

947
00:40:30,520 --> 00:40:32,680
Speaker 1: you might find that being tracked makes you a safer driver.

948
00:40:32,880 --> 00:40:35,600
Speaker 1: I found that I was paying more attention while being tracked.

949
00:40:35,800 --> 00:40:38,640
Speaker 1: My driving habits improved nice. And by the way, I

950
00:40:38,680 --> 00:40:40,640
Speaker 1: deleted the app right after the ninety days were over,

951
00:40:40,680 --> 00:40:42,120
Speaker 1: So mine was being tracked to be an app, not

952
00:40:42,160 --> 00:40:45,120
Speaker 1: a device that goes in your car. And so I was.

953
00:40:45,080 --> 00:40:46,759
Speaker 2: Like, I feel the device after ninety days, you can

954
00:40:46,800 --> 00:40:47,680
Speaker 2: just like stomp on.

955
00:40:47,640 --> 00:40:51,000
Speaker 1: It, that's right, And so I deleted the app because

956
00:40:51,000 --> 00:40:52,279
Speaker 1: I was one it was I felt like it was

957
00:40:52,280 --> 00:40:54,640
Speaker 1: sucking more battery life off the phone. But two, I

958
00:40:54,680 --> 00:40:57,520
Speaker 1: was like, yeah, I turned this off, this feature off,

959
00:40:57,520 --> 00:40:59,319
Speaker 1: but I don't know if they're still trying to at

960
00:40:59,400 --> 00:41:02,120
Speaker 1: least collect this data. And I don't want any pardon it.

961
00:41:02,160 --> 00:41:04,400
Speaker 1: So I just didn't even want the insurance app on

962
00:41:04,440 --> 00:41:05,080
Speaker 1: my phone anymore.

963
00:41:05,280 --> 00:41:07,319
Speaker 2: Yeah, Angel, you said you mentioned like all the other

964
00:41:07,400 --> 00:41:08,600
Speaker 2: things that you can do to get your ear rate

965
00:41:08,640 --> 00:41:10,600
Speaker 2: downe as well, don't forget just by shopping around and

966
00:41:10,640 --> 00:41:13,440
Speaker 2: going with like a local insurance provider. Going to a

967
00:41:13,480 --> 00:41:15,919
Speaker 2: site like Trusted Choice is a great way to find

968
00:41:15,960 --> 00:41:18,080
Speaker 2: a local independent agent as well. Yeah, and they can

969
00:41:18,080 --> 00:41:20,120
Speaker 2: trust aside from all the bigs out there that you

970
00:41:20,120 --> 00:41:22,000
Speaker 2: hear here 's talk about. Yeah with the great thing

971
00:41:22,040 --> 00:41:24,359
Speaker 2: about going with an independent insurance agent is they can

972
00:41:24,360 --> 00:41:26,920
Speaker 2: shop with a bunch of different insurance companies on your

973
00:41:26,920 --> 00:41:29,280
Speaker 2: behalf instead of you individually going each one. So yes,

974
00:41:29,480 --> 00:41:31,799
Speaker 2: that can be a great path to take, all right, Matt.

975
00:41:31,840 --> 00:41:34,120
Speaker 1: Let's mention one comment real quick from Rebecca that she

976
00:41:34,200 --> 00:41:36,239
Speaker 1: left in the Facebook group this past week. She said,

977
00:41:36,400 --> 00:41:38,120
Speaker 1: I wanted to share a money win in case it

978
00:41:38,160 --> 00:41:40,520
Speaker 1: helps anyone who is traveling this summer. We are taking

979
00:41:40,560 --> 00:41:42,200
Speaker 1: a ten day road trip in a couple of weeks.

980
00:41:42,239 --> 00:41:45,160
Speaker 1: I've booked rental car back in February for nine hundred

981
00:41:45,200 --> 00:41:47,719
Speaker 1: and sixty five dollars. Throughout the month of May, I've

982
00:41:47,719 --> 00:41:50,160
Speaker 1: continued to check the prices almost daily and have been

983
00:41:50,200 --> 00:41:53,440
Speaker 1: able to cancel and rebook multiple times for a lower price.

984
00:41:53,560 --> 00:41:56,000
Speaker 1: Yesterday I got it down to four hundred and eighty

985
00:41:56,040 --> 00:41:59,080
Speaker 1: five dollars. She says it pays to revisit your bookings,

986
00:41:59,239 --> 00:42:02,560
Speaker 1: especially rental booking, since they usually have a generous cancelation

987
00:42:02,600 --> 00:42:04,279
Speaker 1: policy up to a few days before your trip.

988
00:42:04,520 --> 00:42:06,879
Speaker 2: I am all about this way to go, Rebecca. This

989
00:42:06,960 --> 00:42:09,720
Speaker 2: is an awesome way to save a ton of money.

990
00:42:09,760 --> 00:42:12,800
Speaker 2: And by the way, I just appreciate folks sharing their

991
00:42:12,840 --> 00:42:14,879
Speaker 2: money wins with the rest of the how to money

992
00:42:14,920 --> 00:42:18,280
Speaker 2: community there in the Facebook group. That being said, checking

993
00:42:18,320 --> 00:42:20,719
Speaker 2: it daily sounds like a lot, though, and this is

994
00:42:20,760 --> 00:42:23,480
Speaker 2: coming from somebody who manually enters his all of his

995
00:42:23,600 --> 00:42:26,880
Speaker 2: expenses at Excel. Something about going to a site every

996
00:42:26,920 --> 00:42:28,319
Speaker 2: day to see if I can find a lower rate

997
00:42:28,920 --> 00:42:31,040
Speaker 2: does not sound like something that I would be into

998
00:42:31,120 --> 00:42:34,120
Speaker 2: as much. And to that, I would say, maybe let

999
00:42:34,160 --> 00:42:36,560
Speaker 2: technology help you out with that. There's a cool site

1000
00:42:36,600 --> 00:42:39,640
Speaker 2: called autoslash dot com. They'll actually do that on your

1001
00:42:39,640 --> 00:42:42,080
Speaker 2: behalf for free. The way that they get paid I

1002
00:42:42,120 --> 00:42:43,799
Speaker 2: think they get paid a small commission, so you don't

1003
00:42:43,800 --> 00:42:45,879
Speaker 2: pay anything to them, but they get paid a small

1004
00:42:45,880 --> 00:42:49,000
Speaker 2: commission from the insurance company, from the car rental company.

1005
00:42:49,000 --> 00:42:52,960
Speaker 2: Were you to book through autoslash. So yeah, what's key though,

1006
00:42:53,000 --> 00:42:55,400
Speaker 2: like you said, is to book a refundable rental car

1007
00:42:55,800 --> 00:42:58,440
Speaker 2: because you might be able to save a few bucks

1008
00:42:58,440 --> 00:43:01,319
Speaker 2: on the rental car site if you book non refundable

1009
00:43:01,680 --> 00:43:03,480
Speaker 2: but it's not worth it, because if you do that,

1010
00:43:03,520 --> 00:43:05,640
Speaker 2: you're gonna lose the chance to save a much bigger

1011
00:43:05,719 --> 00:43:08,399
Speaker 2: chunk of change later on down the road. Yeah.

1012
00:43:08,480 --> 00:43:11,719
Speaker 1: Yeah, that's that's like a cheap, not frugal to book

1013
00:43:11,760 --> 00:43:14,040
Speaker 1: the to book the non refundable to save twenty bucks

1014
00:43:14,040 --> 00:43:16,000
Speaker 1: now when you might be able to save hundreds later

1015
00:43:16,160 --> 00:43:19,000
Speaker 1: if you had gone for the refundable reservation. It's amazing

1016
00:43:19,000 --> 00:43:20,960
Speaker 1: how much money you can save on this line item

1017
00:43:21,000 --> 00:43:23,360
Speaker 1: of your vacation budget. But Matt, most people book it,

1018
00:43:23,400 --> 00:43:25,439
Speaker 1: they forget about it. They don't do anything else. Set

1019
00:43:25,440 --> 00:43:28,160
Speaker 1: a reminder on your calendar or sign up at autoslash

1020
00:43:28,160 --> 00:43:29,920
Speaker 1: dot com. Do one of the two right, do something

1021
00:43:29,920 --> 00:43:32,600
Speaker 1: either go manual or goo technology driven. I don't care,

1022
00:43:32,640 --> 00:43:34,360
Speaker 1: but make sure you reshop that price, especially as you

1023
00:43:34,360 --> 00:43:36,839
Speaker 1: get closer to your trip. The same can be true

1024
00:43:36,840 --> 00:43:39,840
Speaker 1: of hotel reservations too, Matt. I mean, when Emil and

1025
00:43:39,920 --> 00:43:43,400
Speaker 1: I went to New York class Fall, I had booked

1026
00:43:43,400 --> 00:43:45,480
Speaker 1: directly with the hotel. I read shot with them, because

1027
00:43:45,840 --> 00:43:47,480
Speaker 1: the day before we went, I saw that the price

1028
00:43:47,520 --> 00:43:50,000
Speaker 1: a dropped and it's like an ad on the actual

1029
00:43:50,000 --> 00:43:52,040
Speaker 1: website of the hotel. No, I just like looked up

1030
00:43:52,080 --> 00:43:53,479
Speaker 1: the same date, so I was curious, what does.

1031
00:43:53,400 --> 00:43:54,000
Speaker 2: It cost now?

1032
00:43:54,680 --> 00:43:57,040
Speaker 1: It was more of a curiosity thing, and I realized

1033
00:43:57,040 --> 00:43:59,440
Speaker 1: it's cheaper. So I messaged them and they're like, oh, yeah, sure,

1034
00:43:59,440 --> 00:44:01,600
Speaker 1: no problem, refunded you the price difference.

1035
00:44:01,600 --> 00:44:02,680
Speaker 2: And so you know.

1036
00:44:02,760 --> 00:44:07,319
Speaker 1: Southwest has a similar refund policy where if you pay

1037
00:44:07,360 --> 00:44:10,000
Speaker 1: cash for the trip, well you get you get a

1038
00:44:10,080 --> 00:44:12,799
Speaker 1: credit in Southwest dollars essentially for future use.

1039
00:44:12,920 --> 00:44:14,640
Speaker 2: You can cancel up to like or depending on the ticket,

1040
00:44:14,680 --> 00:44:17,080
Speaker 2: you can actually get get it refunded as cash or

1041
00:44:17,120 --> 00:44:19,040
Speaker 2: however it is that you paid for. Yeah, so I mean,

1042
00:44:19,080 --> 00:44:19,879
Speaker 2: which is really cool.

1043
00:44:19,880 --> 00:44:22,440
Speaker 1: You can cancel up like ten minutes before before the flight,

1044
00:44:22,440 --> 00:44:24,719
Speaker 1: which is kind of crazy, but yeah, but these are

1045
00:44:24,760 --> 00:44:25,480
Speaker 1: the kind of things.

1046
00:44:25,320 --> 00:44:27,279
Speaker 2: Anybody once you go ahead make up your mind. So

1047
00:44:27,320 --> 00:44:29,440
Speaker 2: whether or not even you know, scnce flight or not.

1048
00:44:29,360 --> 00:44:32,160
Speaker 1: Who's canceling twelve minutes before, I don't know. But I

1049
00:44:32,160 --> 00:44:36,000
Speaker 1: do think re shopping travel accommodations is a smart thing

1050
00:44:36,000 --> 00:44:38,160
Speaker 1: to do, and when we're talking about the high cost

1051
00:44:38,200 --> 00:44:39,799
Speaker 1: of travel these days, this is at least one way

1052
00:44:39,840 --> 00:44:41,520
Speaker 1: to save. And on the rental card thing, you can

1053
00:44:41,560 --> 00:44:43,959
Speaker 1: make it automatic and you can save save Big Box

1054
00:44:44,000 --> 00:44:44,759
Speaker 1: really that's right.

1055
00:44:44,800 --> 00:44:46,960
Speaker 2: Yeah. And by the way, this only reinforces why you

1056
00:44:47,000 --> 00:44:49,319
Speaker 2: should join the how to Money Facebook group. These are

1057
00:44:49,320 --> 00:44:51,160
Speaker 2: the kind of tips that are being posted every single

1058
00:44:51,239 --> 00:44:53,120
Speaker 2: day folks when they're sharing their different wins. And so

1059
00:44:53,200 --> 00:44:55,279
Speaker 2: if you have not yet looked it up, but you

1060
00:44:55,320 --> 00:44:58,879
Speaker 2: are active over there on Facebook, check it out and

1061
00:44:59,120 --> 00:45:01,799
Speaker 2: Joel as quickly head back to the beer because you

1062
00:45:01,800 --> 00:45:05,560
Speaker 2: and I enjoyed a bike tour Hell's. It's a Hell's logger.

1063
00:45:06,000 --> 00:45:08,680
Speaker 2: This is my Creature Comforts brewing. What your thoughts? All right?

1064
00:45:08,719 --> 00:45:12,759
Speaker 2: So this was light and clean, golden refreshing, I would say,

1065
00:45:13,200 --> 00:45:16,920
Speaker 2: little malty, a little bready. Uh yeah. That wasn't like

1066
00:45:16,920 --> 00:45:19,920
Speaker 2: a bright, citrusy kind of refreshing. It was like, I

1067
00:45:19,960 --> 00:45:23,040
Speaker 2: don't know, like like a clean drinking Hell's Lagger tasted

1068
00:45:23,080 --> 00:45:26,839
Speaker 2: like amber waves map And I'm pretty sure you only

1069
00:45:26,880 --> 00:45:29,040
Speaker 2: pick this up because it says bike tour and is

1070
00:45:29,080 --> 00:45:31,440
Speaker 2: Creature Comforts, yeah, which I will say we had their

1071
00:45:31,719 --> 00:45:33,200
Speaker 2: What was the other beer that we had? Oh my gosh,

1072
00:45:33,280 --> 00:45:36,040
Speaker 2: it was like that it was a German pills or

1073
00:45:36,520 --> 00:45:38,640
Speaker 2: some kind of pills ner that was made with like

1074
00:45:38,640 --> 00:45:40,680
Speaker 2: a New Zealand hop This one was that good? This

1075
00:45:40,760 --> 00:45:43,400
Speaker 2: didn't like that one had something really really special. H

1076
00:45:43,480 --> 00:45:45,760
Speaker 2: This one was really good, but didn't have that extra

1077
00:45:45,800 --> 00:45:48,279
Speaker 2: little special that we were maybe expecting since it was

1078
00:45:48,320 --> 00:45:50,839
Speaker 2: also a part of the Curious Collection. But still glad

1079
00:45:50,880 --> 00:45:52,960
Speaker 2: you can know I got to enjoy it. Sure, get

1080
00:45:52,960 --> 00:45:54,680
Speaker 2: a Germany one of these, and anytime there's a bike

1081
00:45:54,719 --> 00:45:56,279
Speaker 2: affiliated beer, I will grab it.

1082
00:45:56,400 --> 00:45:58,839
Speaker 1: Yeah, including the og fat tire.

1083
00:45:59,080 --> 00:46:01,720
Speaker 2: That's right, that one. In a long time I knew Belgium,

1084
00:46:01,760 --> 00:46:03,680
Speaker 2: it's true. But uh, all right enough, I was gonna

1085
00:46:03,680 --> 00:46:05,520
Speaker 2: ask you about Germany and travel. But let's go ahead

1086
00:46:05,520 --> 00:46:07,319
Speaker 2: and end this episode. You can find notes up on

1087
00:46:07,320 --> 00:46:09,759
Speaker 2: the website at howdomoney dot com. And if you happen

1088
00:46:09,800 --> 00:46:12,759
Speaker 2: to just stumble upon this episode of How to Money,

1089
00:46:12,800 --> 00:46:14,600
Speaker 2: make sure you hit subscribe. That way you don't miss

1090
00:46:14,640 --> 00:46:17,480
Speaker 2: the next episode. We're actually talking about how you can

1091
00:46:17,840 --> 00:46:21,720
Speaker 2: pay as little as possible for a new vehicle. On Wednesday,

1092
00:46:21,760 --> 00:46:23,920
Speaker 2: we're talking to the guys over at car Edge and

1093
00:46:24,000 --> 00:46:25,200
Speaker 2: looking forward to that conversation.

1094
00:46:25,360 --> 00:46:29,520
Speaker 1: A lot of years of experience amongst those two. In true,

1095
00:46:29,560 --> 00:46:31,319
Speaker 1: it's gonna be a fun combo. So all right, Matt,

1096
00:46:31,360 --> 00:46:32,919
Speaker 1: that's gonna do it for this one. Until next time,

1097
00:46:33,120 --> 00:46:35,160
Speaker 1: Best friends, and best friends out