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

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Speaker 1: and today.

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Speaker 2: We're answering your listener questions.

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Speaker 3: Yeah, buddy, perhaps this is our listener's favorite day of

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Speaker 3: the week. Not that this is anything at all similar

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Speaker 3: to what we have with our listeners, but it makes

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Speaker 3: me think about like calling your folks.

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Speaker 2: It kind of makes their day.

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Speaker 3: I don't know if it makes their week, but the

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Speaker 3: ability to catch up see see how they're doing.

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Speaker 2: Yeah, I know.

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Speaker 3: It's almost like a phone call with our listeners to

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Speaker 3: a service. It's one sided. I appreciate it.

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Speaker 1: I like hearing like what's going on in their financial

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Speaker 1: lives and kind of being able to go through some

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Speaker 1: of the nuances of the questions that they've got going on.

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Speaker 2: I love these episodes.

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Speaker 3: Well, it adds flesh to the bones, right because the bones,

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Speaker 3: for the most part, don't change. The principles the values

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Speaker 3: they remain, but all the different color that goes into

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Speaker 3: making each story, each individual's question unique. That's what it's

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Speaker 3: all about right here on Ask how to Money Monday episodes.

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Speaker 3: But we've got a listener who's asking about getting a

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Speaker 3: cheap cell phone? Is that even possible these days? We'll

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Speaker 3: share our thoughts there. Another teacher, actually, he's wondering how

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Speaker 3: it is that he can actually teach frugality as opposed

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Speaker 3: to teaching cheapness, So we're gonna kind of dive into that.

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Speaker 2: And another listener he's wondering if it.

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Speaker 3: Ever makes sense to borrow money in order to invest,

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Speaker 3: if that's something that he hasn't done yet. It's a

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Speaker 3: little behind. Wants to know if he should be doing that.

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Speaker 3: So we'll get into some investing plus.

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Speaker 1: More on today's episode Buddies A Right, But before we

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Speaker 1: get to that map, we had Ilana from Life Well

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Speaker 1: cruised on recently kind of quizzing her about going on

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Speaker 1: cruises because you and I never done it, never done

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Speaker 1: it before. We didn't even really know a question to ask.

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Speaker 1: We were just doing our best.

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Speaker 2: I was asking questions.

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Speaker 3: About se sickness because I get motions. So yeah, wait,

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Speaker 3: did we at the beginning? I think we discussed whether

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Speaker 3: or not, like by the end of it, we're going

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Speaker 3: to decide whether or not we're going to go on

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Speaker 3: a cruise, But we never we didn't ask each other

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Speaker 3: that I think I will you go on a cruise?

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Speaker 3: I think I probably will someday did she talk you

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Speaker 3: into it? Not really, No, Like Caribbean cruises still do

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Speaker 3: not sound like my jam.

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Speaker 2: Yeah.

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Speaker 1: I think at some point I will go on some

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Speaker 1: sort of river cruise or maybe a Alaska Alaskan cruise Iceberg.

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Speaker 3: Yeah, calving kind of viewing, that kind of stuff. If

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Speaker 3: it allows a little more adventurous.

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Speaker 1: If it allows me to see things that I wouldn't

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Speaker 1: otherwise be able to see from land, that's what attracts

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Speaker 1: me to cruises. But if I'm just going to like

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Speaker 1: different ports of call in the Caribbean, like I could

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Speaker 1: go visit those other ways.

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Speaker 2: Yeah.

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Speaker 1: But okay, so here's one thing. Because we know so little,

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Speaker 1: we're just doing our best. So a lot of listeners

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Speaker 1: came with some great advice after that episode, posting in

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Speaker 1: the Facebook group or sending us emails stuff.

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Speaker 2: Listeners who are into cruise. Yeah, and they had some

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Speaker 2: great advice.

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Speaker 3: So Matt and Joel or idiots when it comes to

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Speaker 3: the boats, we are.

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Speaker 1: And so if you were listening and you're like, yeah,

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Speaker 1: there were a bunch of great stuff that they didn't

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Speaker 1: talk about, you can always post that and how to

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Speaker 1: money Facebook group and other people can appreciate your wisdom.

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Speaker 2: As well.

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Speaker 1: Well, well listener Greg matt He reached out and he said,

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Speaker 1: there's actually a website similar to Google Flights for cruises,

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Speaker 1: and I think we asked Ilana about that and she didn't

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Speaker 1: seem to know of anything like that.

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Speaker 3: Well, Greg, she's mostly pointing us to the specific cruise

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Speaker 3: lines because they've got a lot of good information there.

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Speaker 2: That's right.

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Speaker 1: So if you're kind of looking to find a deal,

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Speaker 1: cruiseplum dot com is what Greg recommended. I was looking

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Speaker 1: at it a little bit and I kind of it's

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Speaker 1: it's very basic in the way that it's set up,

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Speaker 1: but it offers you the ability to get like to

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Speaker 1: find last minute deals, and it really categorizes these destinations

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Speaker 1: and ports of call and well how she actually is

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Speaker 1: it compared to what it normally costs.

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Speaker 2: Cruise plum seems to do a good.

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Speaker 3: Job of that, so you can choose the actual discount.

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Speaker 1: Yeah, so I feel like I want the thirty percent

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Speaker 1: off rate. Well, cruise plums is. It looks like it's

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Speaker 1: going to be able to help you find that.

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Speaker 2: Very cool.

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Speaker 3: I was literally talking with a friend yesterday and he's

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Speaker 3: never been on a cruise before and he is going

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Speaker 3: because his mom wants to go on a cruise, and

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Speaker 3: so they're getting the family together and they're going to

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Speaker 3: go with his mom on a cruise. I could see

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Speaker 3: myself doing something like that. Yeah, like there needs there

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Speaker 3: kind of needs to be another reason to go on

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Speaker 3: a cruise. Although as I think about the ability to

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Speaker 3: hit up a bunch of different islands like all in

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Speaker 3: one trip, it's a nice like sampler platter of second

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Speaker 3: Day's the little show Uterie board of Caribbean travel.

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Speaker 1: I get why some people like it and it doesn't

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Speaker 1: sounding I think, but you never know, ye on my

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Speaker 1: first one, Yeah, I might get bitten by the money

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Speaker 1: and I feel like I gotta keep going on them.

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Speaker 2: But I could say that'd be in the case Buddy,

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Speaker 2: good to know about cruise plumb. We'll link to that

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Speaker 2: in our show notes suit for this episode.

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Speaker 3: Oh yeah, thanks to listener Greg for sending that our way, Joel.

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Speaker 3: Our beer that we're gonna enjoy during this episode is

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Speaker 3: called this is the Day and this is a tart

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Speaker 3: says on another one by Piedmont Brewery down there and

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Speaker 3: making Georgia. We'll drink, enjoy and share our thoughts.

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Speaker 2: At the end of the episodes.

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Speaker 1: Right, But on to listener questions. If you have a

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Speaker 1: money question you'd like Matt and I to discuss on

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Speaker 1: the show, we'd love to hear from you. The simple

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Speaker 1: instructions are available at how to Money dot com slash

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Speaker 1: ask But really it's just recording a voice memo and

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Speaker 1: sending it our way and hopefully we can take it

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Speaker 1: on the next Ask HTAM episode. Now let's get to

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Speaker 1: this first one. This one is about asset allocation.

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Speaker 4: Hi, Matt and Joel, It's Yessel from New York City.

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Speaker 4: Your advice has gotten me through lots of personal finance milestone,

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Speaker 4: so thank you for everything you do. And here are

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Speaker 4: some additional questions. So back in twenty twenty, I opened

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Speaker 4: a step IRA through m one Financed and I used

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Speaker 4: a template PI based on a podcast that i'd listened to,

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Speaker 4: and it was based on Davis Swinston's portfolio. And I

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Speaker 4: haven't touched any of the slices since. And more or less,

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Speaker 4: they break down into Vanguard Total Stock thirty percent, VNQ,

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Speaker 4: Vanguard Real Estate ETF twenty percent, VXUS Vanguard Total International

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Speaker 4: Stock twenty percent, VGIT, Vanguard Intermediate Term Treasury Index ETF

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Speaker 4: fifteen percent, and tip I shares bond ETF fifteen percent.

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Speaker 4: So my questions as follows. First, should I be changing

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Speaker 4: these up to go more in the directions of the

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Speaker 4: ETFs you've recommended on your pod and your investment blogs.

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Speaker 4: Are there any red flags in terms of what I'm

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Speaker 4: investing in currently? And then second, I want to open

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Speaker 4: another IRA because I have a pretty hefty chunk of

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Speaker 4: saved in a Bank of America savings account. Obviously, I'd

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Speaker 4: rather have money work for me rather than just sit

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Speaker 4: in savings with very little interest. So do you recommend

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Speaker 4: I open another IRA, whether it's traditional or WROTH within

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Speaker 4: m one since I already have an account with them,

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Speaker 4: or should I open one in Vanguard or some other

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Speaker 4: company separately? Thanks so much?

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Speaker 3: All right, Yes, so let's just go ahead and start

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Speaker 3: at the top. And first of all, we're glad to

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Speaker 3: hear that you've got to sep IRA. That's a killer

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Speaker 3: account for self employed folks. Oh yeah, Although I will say,

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Speaker 3: if there's our listeners out there and you own your

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Speaker 3: own business and you're thinking about starting an employer sponsored

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Speaker 3: retirement account, we're a little more partial to the solo

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Speaker 3: for one K or the self employed four one k

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Speaker 3: the same thing, two names, two different names that some

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Speaker 3: of the different brokerages go by. So we're not gonna

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Speaker 3: it's and it mostly has to do with how it

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Speaker 3: is that you can contribute. You can actually contribute a

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Speaker 3: little bit more because you're able to contribute as an employee,

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Speaker 3: not just as an employer, turn both hats exactly. We're

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Speaker 3: not gonna get bogged down into the details though, but

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Speaker 3: we can link to We had a conversation with Sean mulaney,

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Speaker 3: who is a tax professional. He's a CPA and he

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Speaker 3: specializes in tax for the fire community, the financial independence

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Speaker 3: retiring early literally wrote the book on solo for one case, Yes,

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Speaker 3: and he kind of breaks down why he's such a fan.

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Speaker 3: So we'll link to that episode in our show notes.

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Speaker 3: But the first part of your question, though, it's highly

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Speaker 3: specific on fund allocation, and I'll say here on the show,

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Speaker 3: we try to offer broad based advice and we try

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Speaker 3: not to get too terribly specific, and that is for

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Speaker 3: a few reasons. One, for most folks, it's all about

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Speaker 3: savings rate. It's all about simplicity. Basically, the more that

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Speaker 3: you are able to save in the simpler your methodology,

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Speaker 3: the easier it is to stay the course. And I'll

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Speaker 3: say expense ratios as well. The more affordable you keep it,

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Speaker 3: the more of your money that you get to keep

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Speaker 3: that compounds over the years. But secondly, every financial situation

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Speaker 3: is going to be different. If we're talking about specific

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Speaker 3: acid allocation here, we'd have to factor in your current

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Speaker 3: age or your current savings level when it is that

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Speaker 3: you want to retire, your likely lifespan, some of the

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Speaker 3: different goals that you have for your life, individual rest tolerance, right, Like,

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Speaker 3: there are so many other things to address as to

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Speaker 3: whether or not your current allocation is ideal. So it

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Speaker 3: is a little tricky to dive into the particulars and

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Speaker 3: to say yes or no red flags or no red

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Speaker 3: flags regarding your specific portfolioyeah.

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Speaker 1: That's why we typically break it down into wealth building

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Speaker 1: and wealth preservation, the two kind of distinct segments of

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Speaker 1: your life. And for some people, you're very much firmly

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Speaker 1: in the camp of the wealth building phase of your life.

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Speaker 1: You're in your twenties, thirties, forties, and you're like, I'm

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Speaker 1: not retiring.

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Speaker 3: We think based on how old you sound, yeah yeah, yeah.

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Speaker 1: Yeah, yeah, yes, yes, we'll sounds like she's probably in

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Speaker 1: that camp. But then there are other listeners who are

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Speaker 1: in the wealth preservation side of things. They sound old.

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Speaker 1: It's even like the older gen xerre who were saying, listen,

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Speaker 1: I'm getting closer to retirement. I can't take as much

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Speaker 1: risk as the wealth building crowd, the folks who are

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Speaker 1: invested and feel comfortable being invested almost solely in stocks.

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Speaker 1: And so, yeah, your pie, specifically Yessel, it sounds like

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Speaker 1: something that would be traditionally recommended, right. Yeah, you mentioned

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Speaker 1: David Swinson. He was a smart dude. He managed Yale's

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Speaker 1: endowment fund incredibly well over the years. But then there

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Speaker 1: are different goals for something like an endowment fund. Then

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Speaker 1: maybe your own personal goals, you're not looking to achieve

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Speaker 1: the same things. And so it's kind of like how

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Speaker 1: people compare hedge funds returns to how the S and

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Speaker 1: P five hundred did in a given year. Well, if

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Speaker 1: hedge funds underperform, people like to point and laugh and

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Speaker 1: be like, aha, look at that. There you go, broad

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Speaker 1: based market exposure for the win. But the truth is

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Speaker 1: the stated goal of most hedge funds isn't to beat

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Speaker 1: average market returns. They often more about risk minimization, and

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Speaker 1: they're willing to accept reduced returns in a given year

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Speaker 1: to accomplish that, which means that in a down year,

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Speaker 1: oftentimes hedge funds are not down nearly as much as

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Speaker 1: the overall market, and that is one of the bigger

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Speaker 1: goals for a lot of folks who choose to invest

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Speaker 1: in those funds. So I would just say, be careful

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Speaker 1: who you're copying because their goals might not be the

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Speaker 1: same as your goals.

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Speaker 2: That's true.

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Speaker 3: Yeah, yeah, it depends again what your risk tolerance is.

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Speaker 3: It depends on when you're going to need the money.

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Speaker 3: And you are well diversified and so there's no red

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Speaker 3: flags going up there where it sounds like you're two

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Speaker 3: all in on one thing over another. But it's possible

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Speaker 3: that you are maybe too diversified and that you are

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Speaker 3: invested maybe a little conservatively. And this is especially true

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Speaker 3: if you don't need the money for decades to come. Again,

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Speaker 3: if you are in that wealth building stage of your life,

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Speaker 3: and your allocation reflects something closer to a target date

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Speaker 3: fund given the bond and treasuries exposure that you have

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Speaker 3: in there. But honestly, even like a little more conservative

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Speaker 3: than a target day fund. But the good news is

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Speaker 3: that you if you do decide to change things up,

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Speaker 3: if to to switch things up to be a little

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Speaker 3: more stock heavy, well doing that inside of a tax

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Speaker 3: advantage account. Well what's great here is that it's not

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Speaker 3: going to result in any sort of tax bill. But again,

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Speaker 3: this is a personal decision with a whole lot of

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Speaker 3: different inputs, and so well, basically we'll just leave it there.

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Speaker 3: And we've shared on the show before, how I mean,

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Speaker 3: I'm forty one years old. I am one hundred percent

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Speaker 3: invested in the S and P f hunderd not not

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Speaker 3: just not even equities, but like the S and P

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Speaker 3: hey you know they over forty body, Well thank you,

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Speaker 3: but even still like I shouldn't even say my age,

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Speaker 3: because it doesn't matter how old I am. It depends

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Speaker 3: on when I need access to those funds.

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Speaker 1: Because if you were like fire in here and you're

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Speaker 1: going to retire at forty three, well you're in the

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Speaker 1: wealth preservation stage now, exactly. Yeah, And so it's worth

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Speaker 1: asking yourself a bunch of questions too as to like

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Speaker 1: how did you like you sound like a very level

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Speaker 1: headed person, and so did you freak out when the

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Speaker 1: market tanked? In twenty twenty two when it when it

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Speaker 1: basically was down like twenty percent. I think if no

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Speaker 1: is the answer there, well, then you might be a

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Speaker 1: good candidate for switching up to a portfolio allocation that

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Speaker 1: is a little more aggressive because you are on top

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Speaker 1: of things. You're not investing emotionally, you're not being swayed

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Speaker 1: by the headlines, you're not checking your balance every week

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Speaker 1: every month seeing that number decrease in freaking out. But

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Speaker 1: then again, if it gave you heart palpitations, then you

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Speaker 1: might want this more conservative portfolio so that it allows

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Speaker 1: you to kind of stay invested through thick and through thin. Yep,

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Speaker 1: and Matt, I love what you said too. You're right

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Speaker 1: inside of those tax advantage accountsors no tax consequences for

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Speaker 1: selling and buying, and so that wouldn't be true though

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Speaker 1: in a taxable brokerage account where if you're like, oh,

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Speaker 1: I want to rebalance a little bit, you're oftentimes going

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Speaker 1: to face tax consequences for doing so. And all right, next, yes,

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Speaker 1: well she mentioned banking with Bank of America. They're not

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Speaker 1: the devil, but oh yeah, my goodness, you need a

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Speaker 1: new bank. Yes, so like, please very close to the devil.

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Speaker 1: I don't want to dwell on this, and we'll link

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Speaker 1: to an article about switching banks in the show notes,

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Speaker 1: But just make sure that you're not staying with one

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Speaker 1: of the big banks who pays almost nothing and doesn't

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Speaker 1: care about you. Should you be investing more of the

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Speaker 1: cash that's sitting on the sideline. So that also depends

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Speaker 1: on a number of factors, like how reliable is your income,

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Speaker 1: how many months worth of expenses do you currently have

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Speaker 1: on hand, and also do you have any major medium

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Speaker 1: term money goals. Typically that means I'm gonna replace the

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Speaker 1: car and I'm gonna try to pay cash for it,

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Speaker 1: or I got to have this down payment on hand

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Speaker 1: to buy a home. You know, if some of that

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Speaker 1: money is being saved for a down payment and you're

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Speaker 1: planning to buy in the next year or two, keep

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Speaker 1: it in savings. But if you've got fifteen months of

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Speaker 1: expenses on hand and your job is pretty solid, I'm

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Speaker 1: feeling more than okay getting some of that money out

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Speaker 1: of the bank and investing more of those dollars. But again,

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Speaker 1: what's the money for, when do you need it, what's

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Speaker 1: the timeline? Those are all really important questions, but more

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Speaker 1: than anything. Yeah, get your money out of a bank

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Speaker 1: that's paying you next to nothing on the substantial savings.

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Speaker 2: That you have.

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Speaker 3: Heck yeah, and you mentioned investing within a roth IRA.

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Speaker 3: I think that would be a good choice. And what's

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Speaker 3: great here too, is it sounds like you've got a

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Speaker 3: decent amount of money set aside within your savings account

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Speaker 3: and where are you to go had and open that

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Speaker 3: additional roth IRA like so A, the good news here

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Speaker 3: is that you can invest in You can put that

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Speaker 3: money towards your roth IRA last year so sixty sixty

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Speaker 3: five hundred dollars, and you can also fund this year's

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Speaker 3: roth IRA, so seven thousand dollars. So and I'm I'm

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Speaker 3: not trying to downplay how much money this is, but

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Speaker 3: we're only talking about thirteen thousand, five hundred dollars, which

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Speaker 3: that is a big chunk of money.

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Speaker 2: That would be most of most people saying.

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Speaker 3: But when you have potentially you know, months, maybe even

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Speaker 3: years of living expenses set aside, you have the ability

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Speaker 3: to max out your tax avanage retirement accounts in this

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Speaker 3: way without even putting that big of a dent in

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Speaker 3: the amount of savings that you have on hands. So

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Speaker 3: what I'm putting to is the fact that you still

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Speaker 3: have the ability to chase after some of those large,

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Speaker 3: some of those medium term financial goals that you might have.

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Speaker 2: Let's say you want to.

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Speaker 3: Put one hundred and fifty thousand dollars towards a house

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Speaker 3: because you're gonna you're gonna buy a big, nice house.

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Speaker 3: But you still have the ability to do that while

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Speaker 3: also fully taking an advantage of all tax advantage retirement

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Speaker 3: accounts that are.

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Speaker 2: Available to you.

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Speaker 1: And this SEP's a great account, but you know, putting

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Speaker 1: money in the raw as well, because that's just one

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Speaker 1: of our favorites and it's treated differently from a tax perspective.

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Speaker 1: It's going to give you some of that differential tax

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Speaker 1: treatment which can be helpful later on.

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Speaker 2: Down the road. Exactly.

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Speaker 3: Yeah, and you can, like she mentioned she's been investing

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Speaker 3: with M one. They do a great job. And one

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Speaker 3: is it's geared a little more towards folks looking I

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Speaker 3: think for diversity within their investing. They've got those different

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Speaker 3: pies set up. It's a little more I think for

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Speaker 3: like kind of traditional investors, maybe serious investors, folks who

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Speaker 3: aren't just dabbling and potentially day trading single stocks, which is.

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Speaker 3: It tends to be what Robin Hood is kind.

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Speaker 2: Of geared for.

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Speaker 3: But that being said, guess who has the match. And

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Speaker 3: we've talked about robin Hood plenty here on the show.

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Speaker 3: But if you are looking at especially considering that, Okay, so, yes,

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Speaker 3: well she's got a sep ira. I mean she's a

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Speaker 3: business owner. You can't be a business owner without being

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Speaker 3: very organized and level headed, and so in my mind,

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Speaker 3: she could be an incredible candidate for opening a roth

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Speaker 3: ira with Robinhood because I don't see her going in

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Speaker 3: there and making a knee jerk reaction because of the headlines,

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Speaker 3: because of some think that someone posted within Wall Street

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Speaker 3: Bets on Reddit that kind of thing. And so the

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Speaker 3: ability to get that match I think is pretty huge.

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Speaker 3: If you can invest in a way that aligns with

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Speaker 3: how you've been investing, and if you can.

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Speaker 2: No touchy, you gotta no touchy.

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Speaker 3: No touchy, then I'm totally for it.

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Speaker 2: Like that's easier said than done sometimes when you're the platform.

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Speaker 3: Yeah, But that being said, over time, I view has

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Speaker 3: slightly changed when it comes to Robinhood because of the

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Speaker 3: match and just because of how we talk about credit cards.

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Speaker 3: I think that if you have the discipline and the

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Speaker 3: wherewithal basically to handle credit cards responsibly and use them

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Speaker 3: in a way to maximize points and cash back. I

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Speaker 3: think the same thing could be true of how it

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Speaker 3: is that you interact with Robinhood. Yeah, it's the same

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Speaker 3: kind of person in my mind, which is basically me, Like,

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Speaker 3: I'm thinking about myself because I know that I'm like, yeah,

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Speaker 3: like I never freaking carry a balance on my credit cards.

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Speaker 3: I always am maxing out the points and cash back

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Speaker 3: that I'm getting through there, So why would I not

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Speaker 3: also do that with Robinhood, like we've recently discussed, I.

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Speaker 1: Get that, I get that argument. I guess there's just

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Speaker 1: way you gotta be careful. You got to know yourself.

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Speaker 1: So many things trying to break our brains these days,

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Speaker 1: including social media, and it's hard to resist, right there

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Speaker 1: are there are different things out there that we can

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Speaker 1: at least mentally tail ourselves. Well, I'm gonna avoid that pitfall,

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Speaker 1: But then when it comes to actually avoiding it and

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Speaker 1: not doom scrolling for twenty minutes before bed, like a

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Speaker 1: lot of people still end up doing that. So you

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Speaker 1: just have to know yourself and you have to be

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Speaker 1: really careful. So yes, in one is a good option.

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Speaker 1: Robin Hood can be a decent option if you want

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Speaker 1: the match, and Vanguard Fidelity Schwab are also great choices too.

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Speaker 1: I mean, there are a bunch of different investment houses

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Speaker 1: that prioritize low costs, low fees and make it easy.

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Speaker 1: So having your accounts all in one place can be

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Speaker 1: kind of nice as well. So yeah, I don't know

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Speaker 1: if you like the interface.

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Speaker 2: And features of M one.

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Speaker 1: You keep all your business there, right, And in one

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Speaker 1: does a really good job, and they offer a lot.

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Speaker 2: Of the low cost funds.

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Speaker 1: They can make it incredibly cheap for you to invest,

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Speaker 1: which is which is huge more of your money working

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Speaker 1: for you. Yes, right, but yes, well that's a thank

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Speaker 1: you again for that question. When it comes to asset allocation,

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Speaker 1: so much of it comes down to a lot of

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Speaker 1: personal factors. Hopefully we give you a lot of good

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Speaker 1: information without giving you like specific pinpointed investing advice. Sir Matt,

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Speaker 1: We've got more money questions to get to on this episode.

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Speaker 2: We're just talking about testing.

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Speaker 1: What about borrowing money to invest because you feel like

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Speaker 1: you're behind the eight ball.

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Speaker 2: We'll get to that and more right after this, right.

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Speaker 3: But we are back for the break, and now let's

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Speaker 3: hear from a listener who's doing a little bit of

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Speaker 3: lesson planning Andy, what's our take?

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Speaker 5: Hey, Joel Matt, my name's mister g and I'm a

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Speaker 5: teacher from Pennsylvania. I've been teaching for a while, but

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Speaker 5: am teaching personal finance for the first time ever, which

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Speaker 5: has been very cool and very exciting. I have an

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Speaker 5: idea for a lesson that I think I can maybe

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Speaker 5: use your help with. In the spring, we'll be covering budgeting,

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Speaker 5: and I think within budgeting it'd be important to stress

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Speaker 5: the idea of being frugal within certain categories of your budget. However,

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Speaker 5: I want the kids to know what's the difference between

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Speaker 5: being frugal and being cheap? You guys talk about this

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Speaker 5: all the time, and I thought I can maybe get

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Speaker 5: your help in explaining the difference between the two to

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Speaker 5: the students. What does it mean to be frugal? How's

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Speaker 5: that different than being cheap? Why is one maybe a

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Speaker 5: good thing and the other not so much? And when

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Speaker 5: you're making decisions, what do you consider when deciding if

436
00:19:06,920 --> 00:19:09,840
Speaker 5: something is frugal or cheap? Could you maybe talk us

437
00:19:09,840 --> 00:19:12,239
Speaker 5: through the considerations that you guys go through in this

438
00:19:12,280 --> 00:19:15,600
Speaker 5: thought process, maybe give us an example that some high

439
00:19:15,600 --> 00:19:18,600
Speaker 5: school students could relate to and in the end something

440
00:19:18,600 --> 00:19:21,560
Speaker 5: that I'm hoping maybe all of us could benefit from

441
00:19:21,680 --> 00:19:25,520
Speaker 5: and examining our own personal budgets. Any help in this

442
00:19:25,560 --> 00:19:28,560
Speaker 5: would be greatly appreciated. I plan on using your intro

443
00:19:28,720 --> 00:19:31,200
Speaker 5: as a way to show the difference between frugal and cheap,

444
00:19:31,560 --> 00:19:33,479
Speaker 5: and then having the students work through a bunch of

445
00:19:33,800 --> 00:19:37,840
Speaker 5: sample or fictional scenarios that will connect to their lives

446
00:19:37,960 --> 00:19:40,239
Speaker 5: and the age that they're at right now. And are

447
00:19:40,280 --> 00:19:42,959
Speaker 5: the people in those scenarios being frugal or are they

448
00:19:43,000 --> 00:19:43,520
Speaker 5: being cheap?

449
00:19:44,520 --> 00:19:45,160
Speaker 2: And why is it.

450
00:19:45,119 --> 00:19:48,159
Speaker 5: Important to know the difference? Joel Matt, thank you for

451
00:19:48,200 --> 00:19:51,160
Speaker 5: everything you do. I appreciate it, and I very much

452
00:19:51,160 --> 00:19:52,680
Speaker 5: appreciate your help with this assignment.

453
00:19:53,119 --> 00:19:55,280
Speaker 3: Joel, you about to get it. Did not complete assignment

454
00:19:56,400 --> 00:19:58,119
Speaker 3: for mister G. Did you do your homework?

455
00:19:58,119 --> 00:20:00,200
Speaker 2: Mister G. I'm happy to do your job for you here, Okay.

456
00:20:01,400 --> 00:20:01,480
Speaker 3: No.

457
00:20:01,800 --> 00:20:03,959
Speaker 1: I love that you're getting into teaching personal finance, and

458
00:20:04,040 --> 00:20:07,679
Speaker 1: clearly we need teachers who care about the subject and

459
00:20:07,760 --> 00:20:12,040
Speaker 1: want their students to learn. I'm really enthusiastic about the

460
00:20:12,119 --> 00:20:15,000
Speaker 1: increase in the amount of states that are dedicating and

461
00:20:15,000 --> 00:20:18,920
Speaker 1: they are creating laws essentially to make financial literacy require

462
00:20:19,040 --> 00:20:21,880
Speaker 1: course in high school throughout the country. I think we're

463
00:20:21,880 --> 00:20:24,080
Speaker 1: in We got roughly half the states down, Matt, half

464
00:20:24,080 --> 00:20:26,639
Speaker 1: the states to go next gen personal finance, and our

465
00:20:26,680 --> 00:20:28,720
Speaker 1: friend Yanelli, who was on the show not too long ago,

466
00:20:29,080 --> 00:20:31,919
Speaker 1: have done just incredible work on that front. But then

467
00:20:31,960 --> 00:20:34,320
Speaker 1: at the at the same time, yeah, we need the requirement,

468
00:20:34,359 --> 00:20:36,560
Speaker 1: but we need the teachers who care a great deal.

469
00:20:36,600 --> 00:20:38,760
Speaker 1: Mister G sounds like one of those guys. My favorite

470
00:20:38,760 --> 00:20:42,040
Speaker 1: teacher in high school, by the way, was mister du Yeah.

471
00:20:42,000 --> 00:20:44,879
Speaker 3: The G Mister d yeah, because it's about I like

472
00:20:44,960 --> 00:20:49,239
Speaker 3: what he said about anything about money, about connecting it

473
00:20:49,280 --> 00:20:53,359
Speaker 3: to their lives, because that is I think where money shines,

474
00:20:53,440 --> 00:20:56,320
Speaker 3: Like there is an inherent advantage that personal finance and

475
00:20:56,359 --> 00:20:58,520
Speaker 3: money has because like what kid doesn't want to have

476
00:20:58,600 --> 00:21:02,280
Speaker 3: more money necessarily just to like walk around loaded and

477
00:21:02,760 --> 00:21:04,600
Speaker 3: you know, or have very much money on their wallet,

478
00:21:04,680 --> 00:21:08,000
Speaker 3: or or have much money in their cash app account

479
00:21:08,080 --> 00:21:10,239
Speaker 3: or whatever, but to tie the money that they have

480
00:21:10,359 --> 00:21:12,000
Speaker 3: with what they're able to do with that money, whether

481
00:21:12,440 --> 00:21:15,879
Speaker 3: buy it or the opportunities that is going to afford them.

482
00:21:15,920 --> 00:21:19,240
Speaker 3: I feel like there is an inherent advantage to money

483
00:21:19,280 --> 00:21:21,320
Speaker 3: and man being able to connect those dots like that

484
00:21:21,480 --> 00:21:23,480
Speaker 3: is huge, And that's what being a great teacher is,

485
00:21:23,520 --> 00:21:28,560
Speaker 3: because even though it's inherently an interesting topic money or

486
00:21:28,600 --> 00:21:30,920
Speaker 3: personal finance, you can still approach it in a way

487
00:21:31,040 --> 00:21:35,080
Speaker 3: that is drab, dry, disinteresting, to the point to where

488
00:21:35,119 --> 00:21:37,600
Speaker 3: kids are completely turned off by it. Unfortunately, I think

489
00:21:37,600 --> 00:21:39,919
Speaker 3: that's the case with a lot of folks when it

490
00:21:39,920 --> 00:21:41,640
Speaker 3: comes to how does it they talk about money at home,

491
00:21:41,880 --> 00:21:45,439
Speaker 3: because it's not something that's maybe actively discussed or encouraged.

492
00:21:45,480 --> 00:21:46,240
Speaker 2: Well, we've all been.

493
00:21:46,119 --> 00:21:49,359
Speaker 1: There where we've had our favorite class, our favorite our

494
00:21:49,359 --> 00:21:51,960
Speaker 1: favorite subject matter in school, but guess what, maybe the

495
00:21:52,000 --> 00:21:54,879
Speaker 1: teacher one is so great didn't wasn't as passionate, and

496
00:21:54,880 --> 00:21:57,960
Speaker 1: then I've got, you know, gone to like science. Matt

497
00:21:58,000 --> 00:21:59,680
Speaker 1: was my least favorite, but I had like the best

498
00:21:59,680 --> 00:22:01,880
Speaker 1: physics teacher, and so I liked physics a whole lot

499
00:22:01,880 --> 00:22:04,760
Speaker 1: more than I would have otherwise. And so it's amazing

500
00:22:04,800 --> 00:22:07,119
Speaker 1: how much a great teacher who cares a whole lot

501
00:22:07,359 --> 00:22:10,399
Speaker 1: can make a subject appealing where the kids might of

502
00:22:10,440 --> 00:22:11,480
Speaker 1: otherwise been left.

503
00:22:11,280 --> 00:22:11,880
Speaker 2: A little bit bored.

504
00:22:11,960 --> 00:22:14,600
Speaker 3: Yeah, it makes it makes me think of mister professor

505
00:22:14,640 --> 00:22:20,119
Speaker 3: Benn's what wasn't that the history of magic professor versus

506
00:22:20,440 --> 00:22:23,320
Speaker 3: Professor Lupin? Right, Like, it's interactive, it's it's something that

507
00:22:23,320 --> 00:22:25,880
Speaker 3: you can apply to you. Let's make it practical. That's

508
00:22:25,880 --> 00:22:26,760
Speaker 3: what it's all about here.

509
00:22:27,200 --> 00:22:28,960
Speaker 1: That's why those like science experiments where you drop the

510
00:22:28,960 --> 00:22:30,080
Speaker 1: eggs from the roof and stuff like that.

511
00:22:30,200 --> 00:22:31,560
Speaker 2: Fun, that's what you remember. That's right.

512
00:22:31,760 --> 00:22:34,560
Speaker 1: Let's talk about frugal versus cheap, and well, what's the difference.

513
00:22:34,880 --> 00:22:37,800
Speaker 1: I think frugality is valuing every dollar that comes into

514
00:22:37,840 --> 00:22:40,840
Speaker 1: your life highly right. You realize the impact that saving

515
00:22:40,920 --> 00:22:44,119
Speaker 1: or investing that dollar can have for your future and

516
00:22:44,520 --> 00:22:47,080
Speaker 1: oftentimes for your near term future. And so when it

517
00:22:47,119 --> 00:22:49,760
Speaker 1: comes to spending, you're careful about how many dollars you're

518
00:22:49,760 --> 00:22:52,440
Speaker 1: willing to part with, and you're you're being thoughtful about

519
00:22:52,440 --> 00:22:53,240
Speaker 1: what you're spending them on.

520
00:22:53,359 --> 00:22:53,520
Speaker 3: Right.

521
00:22:53,760 --> 00:22:57,040
Speaker 1: So a frugal person, I would say, is vigilant. And Matt,

522
00:22:57,080 --> 00:22:59,840
Speaker 1: you and I we distinguish cheap from frugal because being

523
00:23:00,080 --> 00:23:02,760
Speaker 1: cheap it often means that you're you're doing something to

524
00:23:02,800 --> 00:23:05,240
Speaker 1: save money that's at the expense of someone else, going

525
00:23:05,240 --> 00:23:06,960
Speaker 1: out to eat leaving a meager tip is a prime

526
00:23:07,000 --> 00:23:09,520
Speaker 1: example of being cheap not frugal, but it could be

527
00:23:09,520 --> 00:23:11,600
Speaker 1: something else, even in terms of spending. I've talked about

528
00:23:11,640 --> 00:23:14,800
Speaker 1: this before too, like buying the cheapest pair of jeans

529
00:23:15,080 --> 00:23:17,680
Speaker 1: and then being like, oh, yeah, I don't really like those.

530
00:23:17,680 --> 00:23:19,400
Speaker 1: I'm not really gonna wear them. It was a waste

531
00:23:19,400 --> 00:23:20,600
Speaker 1: of money and it would have been worth it to

532
00:23:20,640 --> 00:23:23,679
Speaker 1: save up longer by the nicer pair that you're especially

533
00:23:23,680 --> 00:23:25,560
Speaker 1: when you wear them day in and day out, that

534
00:23:25,560 --> 00:23:27,840
Speaker 1: you're gonna actually wear for years to come. Another thing,

535
00:23:27,880 --> 00:23:30,240
Speaker 1: you made fun of me for this, getting the off

536
00:23:30,280 --> 00:23:33,359
Speaker 1: brand Doritos at all these Oh they suck, dude. So

537
00:23:33,400 --> 00:23:35,560
Speaker 1: many people gave me crap for that, and I've come

538
00:23:35,600 --> 00:23:36,800
Speaker 1: to realize the air of my ways. I think I

539
00:23:36,800 --> 00:23:38,679
Speaker 1: hadn't had real Doritos in forever, and then when I

540
00:23:38,680 --> 00:23:40,800
Speaker 1: had real Doritos, I was like, wait, these are way better.

541
00:23:41,040 --> 00:23:43,639
Speaker 1: And so I rarely eat Toritos. But if I'm going to,

542
00:23:44,119 --> 00:23:46,760
Speaker 1: I'm gonna get real reader of the name brand. What's

543
00:23:46,960 --> 00:23:48,679
Speaker 1: even though they're like three times as expenses, so.

544
00:23:48,640 --> 00:23:49,439
Speaker 2: Do I'm thinking of Cheetos.

545
00:23:49,480 --> 00:23:53,840
Speaker 3: Cheetos has the Tiger guys, they don't really have a mascot.

546
00:23:53,880 --> 00:23:56,720
Speaker 3: They just have like the elect just the electricity triangle

547
00:23:57,080 --> 00:23:58,760
Speaker 3: looking things, right, that's part of the rebrand.

548
00:23:58,800 --> 00:23:59,000
Speaker 2: Yeah.

549
00:23:59,200 --> 00:24:02,399
Speaker 3: In my mind, a great framework to think about frugality

550
00:24:02,480 --> 00:24:05,359
Speaker 3: versus cheapness is time. And I think when you are

551
00:24:05,440 --> 00:24:07,879
Speaker 3: cheap you are overly focused on the short term, like

552
00:24:07,920 --> 00:24:11,679
Speaker 3: you're focused on immediacy, and you're not looking beyond the

553
00:24:11,800 --> 00:24:13,560
Speaker 3: end of the day or even next week or certainly

554
00:24:13,640 --> 00:24:14,360
Speaker 3: not years to come.

555
00:24:14,520 --> 00:24:16,639
Speaker 1: And you're often willing to waste your own time in

556
00:24:16,720 --> 00:24:18,840
Speaker 1: order to save a buck. Yeah, not realizing how valuable

557
00:24:18,840 --> 00:24:19,120
Speaker 1: you're time.

558
00:24:19,240 --> 00:24:19,440
Speaker 2: Yeah.

559
00:24:19,480 --> 00:24:23,240
Speaker 3: Yeah, So it's taking a broader view of the larger picture.

560
00:24:23,600 --> 00:24:25,720
Speaker 3: And so when it comes like you're talking about genes,

561
00:24:25,760 --> 00:24:29,560
Speaker 3: obviously if you were to get the cheapest pair, they might.

562
00:24:29,440 --> 00:24:31,439
Speaker 2: Rip blah blah blah. Well if you.

563
00:24:31,480 --> 00:24:33,560
Speaker 3: Zoom out basically, and it's just like, oh, well, if

564
00:24:33,640 --> 00:24:35,479
Speaker 3: I am trying to be frugal, I'm going to get

565
00:24:35,480 --> 00:24:38,960
Speaker 3: a higher quality pair of pants that might cost me

566
00:24:39,000 --> 00:24:40,800
Speaker 3: a heck of a lot more, but man, these things

567
00:24:40,840 --> 00:24:42,560
Speaker 3: are going to last me a really long time. I'm

568
00:24:42,600 --> 00:24:46,760
Speaker 3: going to garner a whole lot more happiness essentially out

569
00:24:46,800 --> 00:24:48,800
Speaker 3: of being able to wear these things. And you're talking

570
00:24:48,840 --> 00:24:50,679
Speaker 3: about food, which also makes me think of just like

571
00:24:50,720 --> 00:24:54,320
Speaker 3: fast food, right, or like even snack food, which one

572
00:24:54,320 --> 00:24:56,159
Speaker 3: of the things you're sacrificing there. And yes, it might

573
00:24:56,200 --> 00:25:00,639
Speaker 3: be affordable, but you're sacrificing like nutrition value, right because

574
00:25:00,640 --> 00:25:03,160
Speaker 3: it's just like, well it's there, it's convenient. I don't

575
00:25:03,240 --> 00:25:05,200
Speaker 3: have to work, you know, I can just open the

576
00:25:05,200 --> 00:25:08,240
Speaker 3: bag and eat the food. But if you do that

577
00:25:08,320 --> 00:25:10,320
Speaker 3: day in and day out, man, what are you sacrificing there?

578
00:25:10,600 --> 00:25:14,280
Speaker 3: You're sacrificing your long term health as opposed to let's

579
00:25:14,280 --> 00:25:17,000
Speaker 3: say taste books too. Yeah, yeah, yeah, as opposed to

580
00:25:17,119 --> 00:25:19,840
Speaker 3: let's say, buying like some grass shad beef, getting some

581
00:25:20,000 --> 00:25:23,840
Speaker 3: locally grown organic veggies, taking that home, taking the time

582
00:25:23,920 --> 00:25:25,159
Speaker 3: to properly.

583
00:25:24,800 --> 00:25:25,280
Speaker 2: Cook that thing.

584
00:25:25,359 --> 00:25:27,399
Speaker 1: Well, the Costco hot dog is still allowable every once

585
00:25:27,440 --> 00:25:29,560
Speaker 1: in a while, but I think that's just a good

586
00:25:29,560 --> 00:25:34,399
Speaker 1: way regardless of the application of thinking about frugality and

587
00:25:34,440 --> 00:25:37,280
Speaker 1: cheapness as time, like, are you thinking about the immediacy

588
00:25:37,480 --> 00:25:39,399
Speaker 1: and that you want something into here now or are

589
00:25:39,440 --> 00:25:41,360
Speaker 1: you thinking about something over the long haul?

590
00:25:41,520 --> 00:25:42,760
Speaker 2: And you even mentioned.

591
00:25:42,800 --> 00:25:45,959
Speaker 3: Relationships right, like where you are imposing your cheapness on

592
00:25:46,000 --> 00:25:46,600
Speaker 3: somebody else.

593
00:25:46,640 --> 00:25:47,760
Speaker 2: I was just about to say something bout that.

594
00:25:47,920 --> 00:25:50,080
Speaker 3: Yeah, yeah, well, I think like or I guess you

595
00:25:50,440 --> 00:25:52,560
Speaker 3: mentioned it from the standpoint of like tipping a server

596
00:25:52,840 --> 00:25:55,560
Speaker 3: or a breaster or something like that. I think even

597
00:25:55,600 --> 00:25:57,639
Speaker 3: when it comes to how it is that we spend

598
00:25:57,680 --> 00:26:01,520
Speaker 3: money or like, either on people or around other people,

599
00:26:02,080 --> 00:26:03,480
Speaker 3: I think it can still be helpful to look at

600
00:26:03,520 --> 00:26:06,240
Speaker 3: it through the framework of time, because, yes, in the

601
00:26:06,400 --> 00:26:09,520
Speaker 3: near term, in like today or maybe for this month's budget,

602
00:26:09,760 --> 00:26:12,520
Speaker 3: I'm saving money because I'm not We're not spending money

603
00:26:12,560 --> 00:26:14,520
Speaker 3: going out to eat. We're gonna just go ahead and

604
00:26:14,560 --> 00:26:17,680
Speaker 3: next those date nights. Babe, I'm sorry it's no longer important.

605
00:26:17,960 --> 00:26:21,320
Speaker 3: But what are we sacrificing, she would murder you. We're

606
00:26:21,359 --> 00:26:24,080
Speaker 3: sacrificing the ability for us to connect just the two

607
00:26:24,160 --> 00:26:27,080
Speaker 3: of us as adults, which is a more long term

608
00:26:27,119 --> 00:26:29,439
Speaker 3: goal of ours. And so I think that that can

609
00:26:29,520 --> 00:26:32,280
Speaker 3: be a really helpful lens in which to view cheapness

610
00:26:32,280 --> 00:26:32,639
Speaker 3: and forget.

611
00:26:32,640 --> 00:26:35,400
Speaker 1: I think the cheap person too often times looks down

612
00:26:35,440 --> 00:26:37,680
Speaker 1: their nose at someone who's spending money in a way

613
00:26:38,000 --> 00:26:40,520
Speaker 1: that they don't value, and that can harm your relationships too.

614
00:26:40,600 --> 00:26:41,320
Speaker 2: So judgmental.

615
00:26:41,440 --> 00:26:43,879
Speaker 1: Yeah, it's like allowing the people in your life to

616
00:26:44,320 --> 00:26:46,679
Speaker 1: within reason, and that's why you have to come up

617
00:26:46,720 --> 00:26:48,480
Speaker 1: with with rules I think for this, but like how

618
00:26:48,560 --> 00:26:50,879
Speaker 1: much money are we allowed to spend each month so

619
00:26:50,920 --> 00:26:53,040
Speaker 1: that we can buy the stuff we want to buy,

620
00:26:53,040 --> 00:26:55,200
Speaker 1: no questions asked. And so I think having that line

621
00:26:55,240 --> 00:26:58,000
Speaker 1: item and just not judging your significant other, not judging

622
00:26:58,000 --> 00:27:00,000
Speaker 1: your friends for how they spend money, because everyone value

623
00:27:00,119 --> 00:27:02,520
Speaker 1: use things differently. We talked about this all the time,

624
00:27:02,640 --> 00:27:04,359
Speaker 1: Like people think that the amount of money that we

625
00:27:04,359 --> 00:27:06,439
Speaker 1: spend on craft beer is ridiculous. Some people think that

626
00:27:07,000 --> 00:27:08,680
Speaker 1: and some people don't drink at all and they save

627
00:27:08,800 --> 00:27:09,280
Speaker 1: a lot of money.

628
00:27:09,320 --> 00:27:11,000
Speaker 2: I'm starting to spend a dumb amount of money.

629
00:27:10,840 --> 00:27:13,040
Speaker 3: On coffee these days, which is not something I would

630
00:27:13,080 --> 00:27:13,760
Speaker 3: have done before.

631
00:27:13,920 --> 00:27:15,920
Speaker 2: Like before, what was I buying?

632
00:27:15,960 --> 00:27:18,040
Speaker 3: I was buying the four dollars bag of single origin

633
00:27:18,240 --> 00:27:20,560
Speaker 3: organic from at all Aldi, Yeah, which is a pretty

634
00:27:20,560 --> 00:27:23,200
Speaker 3: good cup of coffee. But I've kind of started exploring

635
00:27:23,240 --> 00:27:25,520
Speaker 3: some of the nicer stuff. And here's the thing.

636
00:27:25,880 --> 00:27:28,000
Speaker 2: You have gone into the deep end, my friend.

637
00:27:28,480 --> 00:27:30,560
Speaker 3: Maybe I'm curious to see, actually if I actually come

638
00:27:30,600 --> 00:27:32,919
Speaker 3: out of the deep end, because or like once you

639
00:27:32,960 --> 00:27:36,320
Speaker 3: go in, like it's it's tough to put the toothpaste.

640
00:27:35,840 --> 00:27:37,479
Speaker 2: Back in the table? Is it that kind of thing?

641
00:27:38,080 --> 00:27:40,119
Speaker 3: But I guess what I'm getting at here is that

642
00:27:40,200 --> 00:27:43,800
Speaker 3: it is okay to not prioritize certain expenses in your

643
00:27:43,840 --> 00:27:46,320
Speaker 3: life just out of plain necessity. Right, Like there might

644
00:27:46,359 --> 00:27:48,560
Speaker 3: be somebody who's thinking, well, yeah, great, guys, I don't

645
00:27:48,600 --> 00:27:51,240
Speaker 3: have the ability to quote unquote be frugal and buy

646
00:27:51,240 --> 00:27:53,439
Speaker 3: something that's a little more quality. I'm looking to just

647
00:27:53,560 --> 00:27:55,480
Speaker 3: get food on the table, and this is how I'm

648
00:27:55,480 --> 00:27:56,119
Speaker 3: able to do that.

649
00:27:56,560 --> 00:27:57,800
Speaker 2: I totally get that, right.

650
00:27:57,720 --> 00:28:00,600
Speaker 3: And so beyond the ability to proba make some of

651
00:28:00,600 --> 00:28:03,200
Speaker 3: those decisions, though, I think there are periods of time

652
00:28:03,480 --> 00:28:06,879
Speaker 3: when okay, like for the time being, I'm gonna go

653
00:28:06,920 --> 00:28:10,359
Speaker 3: with a cheaper option, knowing that eventually someday it'd be

654
00:28:10,440 --> 00:28:12,720
Speaker 3: nice to go with a like maybe the higher quality,

655
00:28:12,720 --> 00:28:14,760
Speaker 3: more frugal option. Like with his students. It makes me

656
00:28:14,800 --> 00:28:18,240
Speaker 3: think of, like what would be the absolute cheapest.

657
00:28:17,920 --> 00:28:18,440
Speaker 2: Car to buy.

658
00:28:18,480 --> 00:28:21,840
Speaker 3: I'm thinking like a twenty year old dogen Neon or

659
00:28:21,840 --> 00:28:25,040
Speaker 3: something like that. Like I'm just picking on Dogenio, but my.

660
00:28:25,000 --> 00:28:26,640
Speaker 1: Cars have gotten more expensive, but you can probably still

661
00:28:26,640 --> 00:28:28,120
Speaker 1: get one of those for like sixteen hundred bucks.

662
00:28:28,119 --> 00:28:30,760
Speaker 3: I'm guessing for really stinking cheap, But how long are

663
00:28:30,800 --> 00:28:32,480
Speaker 3: you going to be able to continue driving that car? Like,

664
00:28:32,480 --> 00:28:34,239
Speaker 3: what's the maintenance on that thing going to be? What's

665
00:28:34,280 --> 00:28:37,400
Speaker 3: the gas mileage? Like as opposed to buying let's say

666
00:28:38,120 --> 00:28:41,080
Speaker 3: a five to seven year old Toyota or Honda, it's

667
00:28:41,120 --> 00:28:42,920
Speaker 3: going to be a whole lot more expensive. But think

668
00:28:42,960 --> 00:28:46,840
Speaker 3: about the larger cost at hand as opposed to what

669
00:28:46,880 --> 00:28:48,719
Speaker 3: you would just be spending here in the near term.

670
00:28:48,760 --> 00:28:51,360
Speaker 1: Yeah, expanding your thoughts on on how how much you're

671
00:28:51,360 --> 00:28:53,280
Speaker 1: gonna pay for something over a longer period of time

672
00:28:53,400 --> 00:28:54,920
Speaker 1: versus like is this going to meet my needs for

673
00:28:54,960 --> 00:28:56,760
Speaker 1: the next three months? Like that's that's not a great

674
00:28:56,760 --> 00:28:59,640
Speaker 1: way to purchase a car. Yeah, but okay, although sometimes

675
00:28:59,640 --> 00:29:01,680
Speaker 1: it isn't necessary to kind of like bridge you to

676
00:29:01,800 --> 00:29:04,240
Speaker 1: that next stage. Sometimes in order to make sure you're

677
00:29:04,240 --> 00:29:06,880
Speaker 1: paying cash or whatever avoiding debt, that might be the

678
00:29:06,920 --> 00:29:09,760
Speaker 1: stepping stone, but that's ultimately not a long term solution.

679
00:29:09,840 --> 00:29:10,880
Speaker 2: Yeah, there's always trade offs.

680
00:29:10,960 --> 00:29:13,120
Speaker 1: Yeah, all right, So we try to discuss balance regularly

681
00:29:13,120 --> 00:29:14,680
Speaker 1: on the show, and the truth is there's a lot

682
00:29:14,680 --> 00:29:17,680
Speaker 1: of deprivation mentality in the personal finance space, and too

683
00:29:17,760 --> 00:29:20,560
Speaker 1: much of that approach leads to it often leads to

684
00:29:20,680 --> 00:29:23,280
Speaker 1: extreme imbalance that's hard to keep up over the years.

685
00:29:23,560 --> 00:29:25,720
Speaker 1: And Matt, we are all about sustainability. It makes me

686
00:29:25,720 --> 00:29:27,719
Speaker 1: think of like working out. This is so true. Everything

687
00:29:27,720 --> 00:29:30,840
Speaker 1: that comes out now is all about sustainable workout routines

688
00:29:31,120 --> 00:29:34,000
Speaker 1: that you can continue to do for years on end,

689
00:29:34,040 --> 00:29:36,400
Speaker 1: as opposed to and same with the diet. Right both

690
00:29:36,440 --> 00:29:40,120
Speaker 1: of those things, what can you continue over the long haul?

691
00:29:40,160 --> 00:29:41,440
Speaker 1: And the same is true when it comes to your

692
00:29:41,480 --> 00:29:45,000
Speaker 1: personal finance goals like that, it's crucial to identify a

693
00:29:45,040 --> 00:29:48,360
Speaker 1: few spending categories in your life where you happily spend money.

694
00:29:48,480 --> 00:29:50,400
Speaker 1: That's what the craft beer equivalent is all about. You

695
00:29:50,440 --> 00:29:53,200
Speaker 1: can't afford everything, but calling out those spending areas that

696
00:29:53,360 --> 00:29:56,880
Speaker 1: move the needle for you and proactively allocating dollars towards

697
00:29:56,880 --> 00:29:59,239
Speaker 1: those is really important. And I think that is going

698
00:29:59,280 --> 00:30:01,560
Speaker 1: to help you be fru saying, listen, it's not in

699
00:30:01,560 --> 00:30:04,680
Speaker 1: those categories, so I don't mind dialing back significantly on

700
00:30:04,720 --> 00:30:06,960
Speaker 1: my spending in these other areas. This is why it's like,

701
00:30:07,200 --> 00:30:10,120
Speaker 1: who cares about what cell phone service you have? As

702
00:30:10,120 --> 00:30:12,280
Speaker 1: long as it's it makes the calls in the text

703
00:30:12,920 --> 00:30:15,760
Speaker 1: and allows you to you know, check your fantasy fo

704
00:30:15,840 --> 00:30:18,440
Speaker 1: All team or whatever it is, but it's saving your

705
00:30:18,440 --> 00:30:20,920
Speaker 1: money every single month. I mean, there are all sorts

706
00:30:20,920 --> 00:30:22,480
Speaker 1: of things like that we talk about on the fringe

707
00:30:22,520 --> 00:30:25,280
Speaker 1: to save money. And it's not because we're cheap. It's

708
00:30:25,320 --> 00:30:28,280
Speaker 1: because they don't care how much more expensive service doesn't

709
00:30:28,280 --> 00:30:28,880
Speaker 1: give you much more.

710
00:30:29,000 --> 00:30:31,720
Speaker 3: Yes, exactly, it's a value call. And I think especially

711
00:30:31,720 --> 00:30:35,040
Speaker 3: too when you're talking to students. I mean, even adults

712
00:30:35,080 --> 00:30:37,160
Speaker 3: don't exactly know what it is that lights them up

713
00:30:37,160 --> 00:30:38,840
Speaker 3: and the things that they want to spend more money on.

714
00:30:38,920 --> 00:30:40,960
Speaker 3: And so I think especially as students, you might think

715
00:30:40,960 --> 00:30:44,120
Speaker 3: you know, but even still I would encourage younger folks

716
00:30:44,120 --> 00:30:46,080
Speaker 3: to be careful about the money that they're spending in

717
00:30:46,120 --> 00:30:49,400
Speaker 3: certain areas and almost like those might morphin change over

718
00:30:49,440 --> 00:30:52,200
Speaker 3: the areasya they may, inevitably they morphin change, but also

719
00:30:52,400 --> 00:30:55,160
Speaker 3: just initially while you're still experimenting and trying to figure

720
00:30:55,160 --> 00:30:57,880
Speaker 3: out what it is that interests you, don't over commit

721
00:30:57,960 --> 00:31:00,080
Speaker 3: to one specific area. Try a bunch of differ and

722
00:31:00,200 --> 00:31:02,000
Speaker 3: things as you're trying to figure out, oh who am

723
00:31:02,000 --> 00:31:04,160
Speaker 3: I becoming, who am I growing into? What are in

724
00:31:04,200 --> 00:31:08,040
Speaker 3: which direction are my interests being cultivated, and I think

725
00:31:08,040 --> 00:31:09,960
Speaker 3: that that can keep you from over spending in certain

726
00:31:10,000 --> 00:31:12,080
Speaker 3: areas where you might end up having some regrets. I

727
00:31:12,120 --> 00:31:13,960
Speaker 3: think that's important as long to keep in mind as well.

728
00:31:14,000 --> 00:31:16,080
Speaker 1: I think as long as you're always saving and investing

729
00:31:16,160 --> 00:31:19,640
Speaker 1: some and you're growing that amount, growing the portion of

730
00:31:19,680 --> 00:31:21,880
Speaker 1: the pilot's dedicated to those things over the years, then

731
00:31:21,880 --> 00:31:23,360
Speaker 1: you're in a good spot. As long as you're not

732
00:31:23,360 --> 00:31:25,560
Speaker 1: spending more than what you make. That's a massive part

733
00:31:25,560 --> 00:31:28,360
Speaker 1: of it too, right, all right, all right, mister g nice.

734
00:31:28,240 --> 00:31:30,760
Speaker 2: Little deep die have on frugality and cheapness.

735
00:31:30,880 --> 00:31:33,560
Speaker 1: Yeah, we hope that that helps you in your lesson

736
00:31:33,600 --> 00:31:37,680
Speaker 1: planning and that conversation with your students. Very curious to

737
00:31:37,720 --> 00:31:40,080
Speaker 1: hear how that goes. Please do let us know, Matt.

738
00:31:40,120 --> 00:31:43,080
Speaker 1: Let's talk about next. Let's get to a question about

739
00:31:43,360 --> 00:31:45,480
Speaker 1: borrowing money in order to grow your wealth.

740
00:31:45,720 --> 00:31:48,280
Speaker 6: Hey, guys, by Marlin here, I have a question about

741
00:31:48,280 --> 00:31:51,320
Speaker 6: borrowing for investing. I'm thirty six and have no investment

742
00:31:51,400 --> 00:31:56,280
Speaker 6: so far except for some savings for a mortgage. I

743
00:31:56,280 --> 00:31:58,240
Speaker 6: have a small credit card bolence, maybe a bad thousand.

744
00:31:58,600 --> 00:32:01,120
Speaker 6: I'm about to apply for mortgage in next few months.

745
00:32:01,720 --> 00:32:03,520
Speaker 6: Since I've no investment so far, and all my money

746
00:32:03,560 --> 00:32:06,240
Speaker 6: will be going towards the house saving. Would it be

747
00:32:06,240 --> 00:32:08,080
Speaker 6: wise to try and catch up on investing by getting

748
00:32:08,120 --> 00:32:12,240
Speaker 6: a loan to start me off, Let's say, instead of

749
00:32:12,480 --> 00:32:14,240
Speaker 6: instead of getting a new car or something for a

750
00:32:14,280 --> 00:32:16,880
Speaker 6: couple of years, put the money into repaying the investment loan.

751
00:32:17,600 --> 00:32:19,600
Speaker 6: I was also thinking of using a robo investor like

752
00:32:19,600 --> 00:32:21,760
Speaker 6: well Simple to make it easier because I have no

753
00:32:21,840 --> 00:32:25,320
Speaker 6: real idea of how to invest. Let's say I repaid

754
00:32:25,400 --> 00:32:29,280
Speaker 6: five percent and forecast in eight percent return, I be

755
00:32:29,320 --> 00:32:32,240
Speaker 6: worth the risk. All right, thanks for the podcast.

756
00:32:32,320 --> 00:32:35,440
Speaker 3: All right, Barry, congrats on saving up enough to buy

757
00:32:35,480 --> 00:32:35,960
Speaker 3: a house.

758
00:32:35,880 --> 00:32:37,640
Speaker 2: Or to hopefully buy a house soon.

759
00:32:37,760 --> 00:32:41,600
Speaker 1: Want to where in Ireland he lives by the way Killarney, Dublin,

760
00:32:41,640 --> 00:32:44,080
Speaker 1: perhaps maybe Dingle.

761
00:32:44,280 --> 00:32:46,760
Speaker 2: Let's go. Yeah, so what a great country.

762
00:32:46,800 --> 00:32:49,720
Speaker 3: We know a few Irish towns because we went on.

763
00:32:49,680 --> 00:32:51,719
Speaker 2: A trip there like a decade ago, with our wives

764
00:32:51,920 --> 00:32:52,600
Speaker 2: doing longer than that.

765
00:32:55,160 --> 00:32:57,960
Speaker 3: But Barry, I'm not sure what the housing market and

766
00:32:58,000 --> 00:32:59,800
Speaker 3: what stats look like in Ireland. But at least in

767
00:32:59,800 --> 00:33:02,760
Speaker 3: the US West, the average American they actually have more

768
00:33:02,840 --> 00:33:04,680
Speaker 3: of their wealth tied up in their home than they

769
00:33:04,720 --> 00:33:07,960
Speaker 3: do in the stock market. In investments, and this isn't

770
00:33:08,000 --> 00:33:11,120
Speaker 3: actually ideal in our opinion, but it is a forced

771
00:33:11,280 --> 00:33:14,200
Speaker 3: method of savings for many folks, and as the value

772
00:33:14,240 --> 00:33:16,600
Speaker 3: of their home goes up and the payment stays roughly

773
00:33:16,600 --> 00:33:19,400
Speaker 3: the same, aside from maybe property taxes going up, it

774
00:33:19,440 --> 00:33:23,080
Speaker 3: provides a historically tried and true route to building wealth slowly.

775
00:33:23,160 --> 00:33:26,120
Speaker 3: And so I want to point this out because you

776
00:33:26,160 --> 00:33:29,080
Speaker 3: say that you haven't been investing yet, and technically you

777
00:33:29,120 --> 00:33:31,400
Speaker 3: haven't because you just have cash on hand for that

778
00:33:31,440 --> 00:33:35,240
Speaker 3: down payment, But you are so close to actually investing

779
00:33:35,280 --> 00:33:37,840
Speaker 3: because once you find a home purchase at home, that

780
00:33:37,920 --> 00:33:41,400
Speaker 3: down payment that's going to immediately get transferred. It's going

781
00:33:41,480 --> 00:33:43,520
Speaker 3: to like into equity. Yeah, it's going to turn into

782
00:33:43,560 --> 00:33:47,320
Speaker 3: home equity basically, and so much of that initial net

783
00:33:47,320 --> 00:33:48,959
Speaker 3: worth that you're building is going to be within that

784
00:33:49,000 --> 00:33:51,080
Speaker 3: it's not necessarily going to be because you've had that

785
00:33:51,120 --> 00:33:53,920
Speaker 3: money invested and it's compounding and growing, but it's truly

786
00:33:53,960 --> 00:33:56,520
Speaker 3: like a one for one exchange because of the money.

787
00:33:56,280 --> 00:33:57,760
Speaker 2: That you've saved and set aside.

788
00:33:58,000 --> 00:34:00,280
Speaker 3: So you're so close, and it seems like that you're

789
00:34:00,320 --> 00:34:03,520
Speaker 3: behind when it comes to investing, but you're closer than

790
00:34:03,520 --> 00:34:03,840
Speaker 3: you think.

791
00:34:03,920 --> 00:34:06,400
Speaker 1: Yeah, well, and the other thing is too, Matt, Buying

792
00:34:06,440 --> 00:34:08,960
Speaker 1: a home not as good of an investment over the

793
00:34:09,080 --> 00:34:10,320
Speaker 1: years as investing in the market.

794
00:34:10,360 --> 00:34:11,080
Speaker 2: We've talked about that.

795
00:34:11,120 --> 00:34:13,320
Speaker 1: We've got articles up on how to money dot com

796
00:34:13,320 --> 00:34:15,480
Speaker 1: specifically about that and why investing in the market is

797
00:34:15,520 --> 00:34:20,400
Speaker 1: superior to buying a single family home that you live in. Granted,

798
00:34:20,440 --> 00:34:22,040
Speaker 1: that's providing a roof over your head, but it's not

799
00:34:22,080 --> 00:34:24,839
Speaker 1: as good as good of an investment as people typically think.

800
00:34:24,960 --> 00:34:26,359
Speaker 1: By the way, Barry, you mentioned you had a credit

801
00:34:26,400 --> 00:34:28,360
Speaker 1: card balance. Please get rid of that. I know it's small,

802
00:34:28,640 --> 00:34:30,960
Speaker 1: but that's even more reason to eradicate it, and eradicate

803
00:34:30,960 --> 00:34:34,239
Speaker 1: it quickly. I think being comfortable with credit card debt

804
00:34:34,680 --> 00:34:36,319
Speaker 1: is something else. There's something a lot of people have

805
00:34:36,360 --> 00:34:37,960
Speaker 1: gotten used to. Whether it's just keeping two to three

806
00:34:38,080 --> 00:34:41,440
Speaker 1: five grand around in credit card debt, but it's not

807
00:34:41,560 --> 00:34:44,080
Speaker 1: worth it ever to have that around. And if you can't,

808
00:34:44,320 --> 00:34:46,719
Speaker 1: and if you can't use credit cards without going into debt,

809
00:34:46,960 --> 00:34:49,399
Speaker 1: we just rather have you not use them at all. Yep,

810
00:34:49,520 --> 00:34:52,920
Speaker 1: and Matt onto the home thing, Like homes typically gopen

811
00:34:52,960 --> 00:34:55,239
Speaker 1: value at a slower rate than the overall US or

812
00:34:55,280 --> 00:34:56,000
Speaker 1: world economy.

813
00:34:56,080 --> 00:34:56,279
Speaker 2: Right.

814
00:34:56,960 --> 00:34:59,080
Speaker 1: The reason we say that a home isn't necessarily a

815
00:34:59,120 --> 00:35:02,360
Speaker 1: great investment is because of that very reason, although it

816
00:35:02,360 --> 00:35:05,200
Speaker 1: can be a totally reasonable purchase. I just I guess,

817
00:35:05,280 --> 00:35:07,880
Speaker 1: like you said, invest I want to clarify, buying a

818
00:35:07,920 --> 00:35:10,959
Speaker 1: home can be a smart move, a smart buy, even

819
00:35:10,960 --> 00:35:13,640
Speaker 1: if it's not some sort of like incredible investment that's

820
00:35:13,640 --> 00:35:16,520
Speaker 1: going to generate massive returns. And one of the reasons

821
00:35:16,560 --> 00:35:18,799
Speaker 1: I think that your home can feel like a much

822
00:35:18,800 --> 00:35:21,920
Speaker 1: better investment than it is is because of the reality

823
00:35:21,920 --> 00:35:25,040
Speaker 1: of leverage. Right Oftentimes people are putting five or ten

824
00:35:25,080 --> 00:35:28,480
Speaker 1: percent down the weep over twenty percent, and because of that,

825
00:35:28,480 --> 00:35:31,360
Speaker 1: you're able to see outsized returns. You're not necessarily paying

826
00:35:31,360 --> 00:35:34,520
Speaker 1: five hundred k cash to buy the home, and so,

827
00:35:35,239 --> 00:35:37,440
Speaker 1: but that also means that you're taking on more risk. So,

828
00:35:37,560 --> 00:35:39,239
Speaker 1: for example, if you put down fifty k on a

829
00:35:39,239 --> 00:35:41,480
Speaker 1: five hundred k home and that home goes up in

830
00:35:41,520 --> 00:35:43,520
Speaker 1: value by fifty k over the next two years, the

831
00:35:43,560 --> 00:35:46,280
Speaker 1: return you see is much much higher than the actual

832
00:35:46,360 --> 00:35:48,799
Speaker 1: rate of return if you had bought that in cash.

833
00:35:48,880 --> 00:35:51,120
Speaker 1: Does that make sense, Like, so, the leverage is working

834
00:35:51,200 --> 00:35:54,680
Speaker 1: to your advantage because you've doubled your investment essentially in

835
00:35:54,800 --> 00:35:56,879
Speaker 1: just a couple of years time. But if you pay

836
00:35:57,080 --> 00:35:59,839
Speaker 1: cash for that same house, the return doesn't feel nearly

837
00:35:59,880 --> 00:36:00,880
Speaker 1: a significant.

838
00:36:00,680 --> 00:36:03,160
Speaker 3: Yeah, your cash on cash wouldn't have been nearly as much.

839
00:36:03,200 --> 00:36:03,399
Speaker 2: Yeah.

840
00:36:03,400 --> 00:36:05,520
Speaker 3: So leverage can help you to juice returns in this way,

841
00:36:05,520 --> 00:36:07,640
Speaker 3: it can make you look pretty smart. But it also

842
00:36:08,200 --> 00:36:10,880
Speaker 3: leverage and mortgaging a home. It can cut both ways.

843
00:36:11,160 --> 00:36:13,239
Speaker 3: And so let's stick with that same example, Joel, and

844
00:36:13,360 --> 00:36:15,440
Speaker 3: see what happens if the housing market where to experience

845
00:36:15,560 --> 00:36:18,480
Speaker 3: a lull. So you put fifty thousand down on that

846
00:36:18,520 --> 00:36:21,480
Speaker 3: five hundred thousand dollars home, hoping to maybe turn a

847
00:36:21,520 --> 00:36:23,920
Speaker 3: profit sell it in a couple of years, but the

848
00:36:23,960 --> 00:36:28,440
Speaker 3: house actually experienced years. But the house actually experiences a

849
00:36:28,440 --> 00:36:31,839
Speaker 3: slight pullback in price, and so you've lost money. Well,

850
00:36:31,840 --> 00:36:34,560
Speaker 3: the housing market it's been on fire, but that doesn't

851
00:36:34,600 --> 00:36:36,440
Speaker 3: necessarily mean it's going to continue to soar like it

852
00:36:36,440 --> 00:36:39,120
Speaker 3: has for the past decade or so. We could actually

853
00:36:39,200 --> 00:36:41,360
Speaker 3: hit a plateau, we could see a minor correction. And

854
00:36:41,400 --> 00:36:43,399
Speaker 3: so using leverage as a way to juice returns where

855
00:36:43,440 --> 00:36:46,319
Speaker 3: you're banking on it being effective in order to work out,

856
00:36:46,440 --> 00:36:49,200
Speaker 3: is a little too risky in our bucket. In effect,

857
00:36:49,200 --> 00:36:51,839
Speaker 3: it's what you're doing is we're kind of speaking out

858
00:36:51,840 --> 00:36:54,520
Speaker 3: of both sides of our mouth here, because effectively, it's

859
00:36:54,560 --> 00:36:56,360
Speaker 3: what you are doing when it comes to investing in

860
00:36:56,400 --> 00:36:59,239
Speaker 3: real estate. But that's a very different proposition than like

861
00:36:59,280 --> 00:37:01,959
Speaker 3: what you're saying, which is borrowing in order to invest

862
00:37:02,000 --> 00:37:04,239
Speaker 3: in the next because you've got an actual home, like

863
00:37:04,280 --> 00:37:06,480
Speaker 3: this is something that is tangible.

864
00:37:06,480 --> 00:37:08,880
Speaker 1: Well, that's also where your timeline matters so much, because

865
00:37:08,880 --> 00:37:12,200
Speaker 1: if you're using leverage in hopes of making a quick buck,

866
00:37:12,320 --> 00:37:14,680
Speaker 1: like a lot of people were doing Matt specifically in

867
00:37:15,239 --> 00:37:18,279
Speaker 1: the Great Recession. Right before the Great Recession, it's like, oh,

868
00:37:18,480 --> 00:37:20,600
Speaker 1: numbers going up, Let me buy this house and flip

869
00:37:20,640 --> 00:37:21,960
Speaker 1: it because I'm going to make money.

870
00:37:22,280 --> 00:37:24,120
Speaker 2: And if your timeline is.

871
00:37:24,080 --> 00:37:27,880
Speaker 1: Super short, the chances that the market can bite you

872
00:37:27,920 --> 00:37:30,200
Speaker 1: just increase significantly. And that that's the same thing in

873
00:37:30,239 --> 00:37:32,560
Speaker 1: the stock market too, right. And so at least with

874
00:37:32,600 --> 00:37:34,480
Speaker 1: the house, like weve said, you're getting a roof over

875
00:37:34,480 --> 00:37:36,520
Speaker 1: your head in exchange for that mortgage payment, and we

876
00:37:36,640 --> 00:37:39,680
Speaker 1: always recommend a long holding period when you're buying that home,

877
00:37:39,760 --> 00:37:42,520
Speaker 1: something like seven to ten years, dulls the potential impact

878
00:37:42,640 --> 00:37:45,160
Speaker 1: of using leverage to make that purchase. But what if

879
00:37:45,200 --> 00:37:48,720
Speaker 1: you're using leverage to buy stocks, well, it is actually possible.

880
00:37:48,719 --> 00:37:52,960
Speaker 1: There are leveraged ETFs that track popular indexes like the

881
00:37:53,000 --> 00:37:55,040
Speaker 1: S and P five hundred, and so when the market

882
00:37:55,120 --> 00:37:57,279
Speaker 1: is going up, you look like a genius. It's just

883
00:37:57,680 --> 00:38:00,440
Speaker 1: adding to your returns. And so let's say you invest

884
00:38:00,440 --> 00:38:02,480
Speaker 1: in something like a three times leveraged S and P

885
00:38:02,560 --> 00:38:04,600
Speaker 1: five hundred fund. The market climbs like it did in

886
00:38:04,640 --> 00:38:07,640
Speaker 1: twenty twenty three, you're Albert Einstein. Right, You've made out

887
00:38:07,680 --> 00:38:10,200
Speaker 1: like a bandit. But that is just not always how

888
00:38:10,239 --> 00:38:13,360
Speaker 1: the cookie crumbles. And so, like we said, leverage has

889
00:38:13,480 --> 00:38:14,239
Speaker 1: is a double edge.

890
00:38:14,440 --> 00:38:17,440
Speaker 3: It cuts both ways. Yeah, it doesn't come without real risk.

891
00:38:17,520 --> 00:38:20,040
Speaker 3: So our friend Nick from of Dollars in Data, he

892
00:38:20,040 --> 00:38:22,719
Speaker 3: actually he wrote about this and how bad it can be.

893
00:38:22,840 --> 00:38:25,480
Speaker 3: And so, for instance, this is a quote. During the

894
00:38:25,480 --> 00:38:28,600
Speaker 3: coronavirus crash in twenty twenty, a three x leveraged ETF

895
00:38:28,680 --> 00:38:30,880
Speaker 3: of the S and P five hundred declined by seventy

896
00:38:31,000 --> 00:38:35,160
Speaker 3: seven percent in total, compared to only a thirty three

897
00:38:35,239 --> 00:38:37,960
Speaker 3: percent decline for the actual underlying index.

898
00:38:38,040 --> 00:38:39,960
Speaker 2: Thirty three percent is tough enough to stomach. Can you

899
00:38:40,000 --> 00:38:41,279
Speaker 2: imagine three x that? Dude?

900
00:38:41,320 --> 00:38:43,240
Speaker 3: Seventy seven percent, Like that kind of draw down feels

901
00:38:43,280 --> 00:38:45,960
Speaker 3: like an intense gut punch, and so can you mentally

902
00:38:46,040 --> 00:38:49,600
Speaker 3: stomach those kinds of losses? And history finds that even

903
00:38:49,760 --> 00:38:52,439
Speaker 3: those leverage funds don't always outperform over the long haul.

904
00:38:52,680 --> 00:38:55,240
Speaker 3: They do most of the time, but even in different

905
00:38:55,320 --> 00:38:58,439
Speaker 3: twenty year stretches, they fail to outperform the basic SMP

906
00:38:58,520 --> 00:39:00,200
Speaker 3: of five hundred index fund. And so this is an

907
00:39:00,200 --> 00:39:03,240
Speaker 3: instance where we would say, sure, you could expose yourself

908
00:39:03,239 --> 00:39:05,960
Speaker 3: to much more risk, but we would not recommend it.

909
00:39:06,120 --> 00:39:08,160
Speaker 3: I also hate these leverage funds too, because it kind

910
00:39:08,200 --> 00:39:10,960
Speaker 3: of packages all this risk in a very easy to

911
00:39:11,160 --> 00:39:15,000
Speaker 3: purchase method as opposed to I think what Barry's kind

912
00:39:15,000 --> 00:39:17,480
Speaker 3: of getting at is just maybe a more traditional form

913
00:39:17,560 --> 00:39:20,480
Speaker 3: of borrowing money and then and then just sticking that

914
00:39:20,560 --> 00:39:23,560
Speaker 3: money within the stock market. But at least there there's

915
00:39:23,560 --> 00:39:25,920
Speaker 3: like multiple steps you have to go through, right, Like

916
00:39:25,960 --> 00:39:29,319
Speaker 3: there's there's multiple points of getting discouraged and being like,

917
00:39:29,440 --> 00:39:32,720
Speaker 3: you know, maybe I shouldn't be doing this, as opposed

918
00:39:32,760 --> 00:39:35,040
Speaker 3: to just boom all of a sudden buying a leverage ETF.

919
00:39:35,560 --> 00:39:37,759
Speaker 3: But to get to the core of that, if that's

920
00:39:37,800 --> 00:39:39,800
Speaker 3: his I guess at the bottom of his question, we

921
00:39:39,840 --> 00:39:42,000
Speaker 3: would say, no, you don't need to be borrowing money

922
00:39:42,040 --> 00:39:44,400
Speaker 3: in order to invest. And even in the example that

923
00:39:44,440 --> 00:39:46,560
Speaker 3: he gave, it's a relatively small spread. I think he said,

924
00:39:46,719 --> 00:39:49,359
Speaker 3: like borrowing at five percent if you're expecting an eight

925
00:39:49,400 --> 00:39:53,759
Speaker 3: percent return. And the fact is you can't borrow money

926
00:39:53,760 --> 00:39:55,239
Speaker 3: at five like you can get a personal loan for

927
00:39:55,280 --> 00:39:57,359
Speaker 3: five percent, where you're gonna get five percent money these

928
00:39:57,400 --> 00:40:00,040
Speaker 3: days fifteen maybe twenty percent depending on your credit score.

929
00:40:00,080 --> 00:40:01,080
Speaker 2: One on in Ireland, Bary.

930
00:40:01,840 --> 00:40:03,720
Speaker 3: But then on top of that, the eight percent return

931
00:40:03,840 --> 00:40:06,799
Speaker 3: is not guaranteed, and so you're looking at it incredibly small.

932
00:40:06,840 --> 00:40:07,880
Speaker 2: So we talked about that recently.

933
00:40:07,920 --> 00:40:12,000
Speaker 1: Projective returns are from a lot of places, a lot

934
00:40:12,000 --> 00:40:15,800
Speaker 1: of really smart folks are supposed to be down compared

935
00:40:15,840 --> 00:40:16,960
Speaker 1: to the historical average.

936
00:40:17,000 --> 00:40:17,400
Speaker 2: Exactly.

937
00:40:17,480 --> 00:40:19,360
Speaker 3: Yes, So much of it again comes down to the

938
00:40:19,800 --> 00:40:23,040
Speaker 3: initially here at the very beginning, most of your investments

939
00:40:23,080 --> 00:40:25,480
Speaker 3: are going to be money that you set aside, And

940
00:40:25,560 --> 00:40:28,160
Speaker 3: so I wouldn't get myself tied up into nots thinking, Man,

941
00:40:28,280 --> 00:40:30,840
Speaker 3: I've heard about this thing called compounding interest. I have

942
00:40:30,960 --> 00:40:34,120
Speaker 3: not had it working in my advantage. But that doesn't

943
00:40:34,160 --> 00:40:35,800
Speaker 3: mean that you need to take some more drastic steps

944
00:40:35,800 --> 00:40:37,520
Speaker 3: in order to be a part of that game.

945
00:40:37,600 --> 00:40:40,480
Speaker 1: Yeah, I guess we also, though, Matt, we want to

946
00:40:40,520 --> 00:40:42,840
Speaker 1: say that that debt isn't always bad, and there are

947
00:40:42,880 --> 00:40:45,319
Speaker 1: certain things where there are certain good kinds of debt

948
00:40:45,360 --> 00:40:47,520
Speaker 1: that can actually help you in your wealth building endeavors.

949
00:40:47,680 --> 00:40:50,560
Speaker 1: And so let's say someone literally is willing to lend

950
00:40:50,920 --> 00:40:53,200
Speaker 1: Burry money at three and a half percent or something

951
00:40:53,239 --> 00:40:56,120
Speaker 1: like that, and he's guaranteed five percent returns in a

952
00:40:56,200 --> 00:40:58,319
Speaker 1: high held saviors account. I take that deal all day,

953
00:40:58,320 --> 00:40:59,799
Speaker 1: every day, because then you can always.

954
00:40:59,560 --> 00:41:01,239
Speaker 3: If it's title both end, as long as you're not

955
00:41:01,239 --> 00:41:01,759
Speaker 3: spending it.

956
00:41:01,760 --> 00:41:04,000
Speaker 1: You can always take that money and pay off the

957
00:41:04,040 --> 00:41:06,920
Speaker 1: debt at a moment's notice if the rates on those

958
00:41:06,960 --> 00:41:10,200
Speaker 1: same use accounts plummet. So these are difficult questions to

959
00:41:10,200 --> 00:41:12,440
Speaker 1: weigh through, Barry, but we hope that this has been helpful.

960
00:41:12,880 --> 00:41:14,319
Speaker 1: Just because you're late to the game, by the way,

961
00:41:14,360 --> 00:41:15,960
Speaker 1: it doesn't mean that you need to take a different

962
00:41:16,000 --> 00:41:18,440
Speaker 1: wealth building route. We want you to a get started

963
00:41:18,480 --> 00:41:21,759
Speaker 1: and be stay focused, and that means doing the right

964
00:41:21,800 --> 00:41:24,799
Speaker 1: thing week after week, month after month, and basically that

965
00:41:24,840 --> 00:41:27,600
Speaker 1: means continuing to increase the overall amount you're investing every

966
00:41:27,600 --> 00:41:31,560
Speaker 1: single year, upping that percentage that's going into your investment

967
00:41:31,560 --> 00:41:35,200
Speaker 1: accounts regularly every six months or every year on the dot,

968
00:41:35,520 --> 00:41:38,359
Speaker 1: and you mentioned robo advisors Wealth Simple in particular. That's

969
00:41:38,400 --> 00:41:41,120
Speaker 1: a good one. Betterment is another. There are perks to

970
00:41:41,200 --> 00:41:44,920
Speaker 1: going with those versus going the complete DIY route, especially

971
00:41:45,080 --> 00:41:48,839
Speaker 1: if you feel intimidated by the investing process altogether. We're

972
00:41:48,880 --> 00:41:53,080
Speaker 1: totally fine with that decision. But I wouldn't necessarily dial

973
00:41:53,160 --> 00:41:56,920
Speaker 1: up your risk tolerance massively. I would just start small,

974
00:41:57,000 --> 00:41:58,719
Speaker 1: start doing it regularly, and build over time.

975
00:41:58,840 --> 00:42:00,120
Speaker 2: Yeah, I will.

976
00:42:00,000 --> 00:42:02,200
Speaker 3: I'll say to some of the advantages that come with

977
00:42:02,239 --> 00:42:05,480
Speaker 3: some of those different platforms have to do you gain

978
00:42:05,520 --> 00:42:07,600
Speaker 3: some of those benefits more with brokerage accounts, with the

979
00:42:07,640 --> 00:42:10,839
Speaker 3: ability to tax loss harvest and the like and so oftentimes.

980
00:42:10,920 --> 00:42:12,759
Speaker 3: And here's the This is where there's a disconnect too,

981
00:42:12,800 --> 00:42:15,200
Speaker 3: because we don't know what kind of investing options are

982
00:42:15,239 --> 00:42:17,480
Speaker 3: available over there in Ireland. But as we're speaking to

983
00:42:18,200 --> 00:42:20,720
Speaker 3: us listeners, sort of going back to the first question

984
00:42:20,840 --> 00:42:22,680
Speaker 3: of this episode, if you don't already have a roth

985
00:42:22,719 --> 00:42:24,839
Speaker 3: IRA set up where you're investing in an index fund,

986
00:42:24,840 --> 00:42:26,759
Speaker 3: that's all you need to do. It's not any more

987
00:42:26,760 --> 00:42:29,040
Speaker 3: complicated beyond that, and so make sure you're doing that

988
00:42:29,080 --> 00:42:32,440
Speaker 3: first before you start paying even a half a percent

989
00:42:32,520 --> 00:42:35,680
Speaker 3: fee to some of these platforms that provide a great service,

990
00:42:36,000 --> 00:42:37,799
Speaker 3: but they might be services that you don't necessarily need

991
00:42:37,840 --> 00:42:39,840
Speaker 3: at this point within your investing journey.

992
00:42:39,840 --> 00:42:43,200
Speaker 1: And I wouldn't obsess over specific funds how you're allocated exactly,

993
00:42:43,200 --> 00:42:45,120
Speaker 1: but I would keep it very, very simple. And the

994
00:42:45,160 --> 00:42:48,080
Speaker 1: biggest thing is savings rate and getting money in into

995
00:42:48,160 --> 00:42:51,319
Speaker 1: those accounts makes it for somebody internationally too, something like

996
00:42:51,400 --> 00:42:54,440
Speaker 1: VT like we've talked about as well, Vanguard's Total World

997
00:42:54,480 --> 00:42:56,920
Speaker 1: Stock Market Index, for somebody in the wealth building phases

998
00:42:56,920 --> 00:43:00,000
Speaker 1: of their life. That gives you broad exposure to company

999
00:43:00,360 --> 00:43:02,719
Speaker 1: worldwide who are building great things.

1000
00:43:02,760 --> 00:43:06,320
Speaker 2: So that's right, all right, man, we got you me Ah,

1001
00:43:06,360 --> 00:43:06,840
Speaker 2: you go for it.

1002
00:43:07,200 --> 00:43:10,080
Speaker 3: We're gonna talk about cheap cell phones. We'll get to

1003
00:43:10,120 --> 00:43:11,279
Speaker 3: that right after this.

1004
00:43:19,239 --> 00:43:20,160
Speaker 2: Hright, we're back from the break.

1005
00:43:20,320 --> 00:43:21,799
Speaker 1: We got more to get to And Matt, you said

1006
00:43:21,800 --> 00:43:23,279
Speaker 1: we're going to talk to cheap cell phones, not cheap

1007
00:43:23,320 --> 00:43:25,879
Speaker 1: cell phone service. We talked about that fairly regularly here

1008
00:43:25,880 --> 00:43:26,200
Speaker 1: on the show.

1009
00:43:26,280 --> 00:43:26,960
Speaker 2: Or maybe it should have.

1010
00:43:26,960 --> 00:43:29,320
Speaker 3: I should have set it up with frugal cell phones

1011
00:43:29,360 --> 00:43:32,080
Speaker 3: frougle cell phones. Yeah, kind of going back to mister G's.

1012
00:43:31,880 --> 00:43:32,760
Speaker 2: That's right question.

1013
00:43:32,920 --> 00:43:35,879
Speaker 1: So okay, but this question comes from our Facebook group,

1014
00:43:35,920 --> 00:43:37,319
Speaker 1: the hod of Money Facebook group. If you're not in

1015
00:43:37,360 --> 00:43:39,680
Speaker 1: the how to Money Facebook group, please do go join it.

1016
00:43:40,080 --> 00:43:43,840
Speaker 1: If you are on Facebook regularly, let's be honest. Social

1017
00:43:43,880 --> 00:43:46,080
Speaker 1: media most of the time not helpful. The how to

1018
00:43:46,080 --> 00:43:48,520
Speaker 1: Money Facebook group actually is. This question comes from Matthew.

1019
00:43:48,560 --> 00:43:50,319
Speaker 1: He says, what is the best cell phone you can

1020
00:43:50,360 --> 00:43:53,160
Speaker 1: get that is reasonably priced but not something that will

1021
00:43:53,160 --> 00:43:55,440
Speaker 1: break in one or two years. I bought a Google

1022
00:43:55,480 --> 00:43:57,440
Speaker 1: Pixel six A a year and a half ago, and

1023
00:43:57,480 --> 00:43:59,399
Speaker 1: I'm already having problems with the charging port.

1024
00:43:59,520 --> 00:44:01,600
Speaker 2: He says. The charger won't stay in. It's like this

1025
00:44:01,680 --> 00:44:02,839
Speaker 2: with any charger, he says.

1026
00:44:02,880 --> 00:44:05,120
Speaker 1: I'm told by Google and a phone repair place that

1027
00:44:05,160 --> 00:44:07,160
Speaker 1: it would take over three hundred and fifty dollars to

1028
00:44:07,200 --> 00:44:09,360
Speaker 1: fix this. I'm better off buying a new phone at

1029
00:44:09,400 --> 00:44:09,800
Speaker 1: this point.

1030
00:44:09,880 --> 00:44:12,160
Speaker 2: Isn't this exactly what you dealt with with yours as

1031
00:44:12,160 --> 00:44:13,080
Speaker 2: far as yeah.

1032
00:44:12,920 --> 00:44:15,160
Speaker 3: The charges, So it seems like this is a recurring issue,

1033
00:44:15,200 --> 00:44:16,600
Speaker 3: which is kind of unfortunate to hear.

1034
00:44:16,680 --> 00:44:18,560
Speaker 1: Yeah, but you would think at some point Google would

1035
00:44:18,800 --> 00:44:20,719
Speaker 1: step up to the plate and fix it, since it

1036
00:44:20,719 --> 00:44:22,640
Speaker 1: seems to be something widespread exactly.

1037
00:44:22,760 --> 00:44:24,719
Speaker 3: Yeah, So I will say some of the responses on

1038
00:44:24,760 --> 00:44:28,800
Speaker 3: Facebook about this were incredibly helpful about repairing the charging port,

1039
00:44:29,080 --> 00:44:31,839
Speaker 3: and apparently things can get stuck in there, and something

1040
00:44:31,840 --> 00:44:34,400
Speaker 3: as simple as a toothpick can often help get lint

1041
00:44:34,560 --> 00:44:37,400
Speaker 3: or whatever else has gotten jammed in there to prevent

1042
00:44:37,520 --> 00:44:40,399
Speaker 3: charging out of there. So it's at least worth trying that,

1043
00:44:40,640 --> 00:44:42,839
Speaker 3: maybe blowing in it like we used to do with

1044
00:44:42,880 --> 00:44:45,080
Speaker 3: our Nintendo cartations back in the day. But the other

1045
00:44:45,120 --> 00:44:47,279
Speaker 3: thing is taking it somewhere in order for it to

1046
00:44:47,320 --> 00:44:52,239
Speaker 3: get fixed can be prohibitively expensive. So, for instance, I

1047
00:44:52,440 --> 00:44:55,400
Speaker 3: would not pay three hundred and fifty dollars to fix the

1048
00:44:55,440 --> 00:44:56,760
Speaker 3: three hundred fifty dollars phone.

1049
00:44:57,760 --> 00:45:00,480
Speaker 2: It's madness. That does not compute. But you even if

1050
00:45:00,480 --> 00:45:01,759
Speaker 2: you want to keep it out of the landfill, that's

1051
00:45:01,800 --> 00:45:02,560
Speaker 2: a stupid money movie.

1052
00:45:02,719 --> 00:45:04,560
Speaker 3: Yeah, but you can use some of the different sites

1053
00:45:04,600 --> 00:45:06,440
Speaker 3: like I Fix It. We've talked about that before, but

1054
00:45:06,480 --> 00:45:09,080
Speaker 3: you can kind of take a more DIY approach where

1055
00:45:09,080 --> 00:45:10,240
Speaker 3: you can fix it yourself.

1056
00:45:10,320 --> 00:45:12,040
Speaker 2: You play a lot less you're on screen.

1057
00:45:12,200 --> 00:45:15,080
Speaker 3: I've replaced multiple screens and how much does it, say you,

1058
00:45:15,760 --> 00:45:17,839
Speaker 3: I don't know, because I mean the prices to get

1059
00:45:17,960 --> 00:45:20,480
Speaker 3: get it officially repaired were so expensive, and you can

1060
00:45:20,480 --> 00:45:23,040
Speaker 3: buy some of the different kits, maybe it's like fifty

1061
00:45:23,040 --> 00:45:24,160
Speaker 3: bucks or something like that.

1062
00:45:24,160 --> 00:45:25,000
Speaker 2: They're really affordable.

1063
00:45:25,040 --> 00:45:27,280
Speaker 1: Taking it to the screen repair shops usually one fifty

1064
00:45:27,320 --> 00:45:29,480
Speaker 1: plus easy, And especially with.

1065
00:45:29,480 --> 00:45:32,040
Speaker 3: The iPhones when you're talking about the nicer glass. This

1066
00:45:32,120 --> 00:45:34,560
Speaker 3: is with like the older gorilla glass, but now they've

1067
00:45:34,600 --> 00:45:37,120
Speaker 3: got the ceramic shield glass, which is like this supposed

1068
00:45:37,120 --> 00:45:39,720
Speaker 3: to be like three x four x four times harder

1069
00:45:39,760 --> 00:45:42,960
Speaker 3: than gorilla glass, which I will say I totally believe

1070
00:45:42,960 --> 00:45:44,799
Speaker 3: because I don't know how many times I've dropped my

1071
00:45:45,600 --> 00:45:49,319
Speaker 3: what I've been iPhone thirteen thirteen Pro and A those

1072
00:45:49,320 --> 00:45:51,920
Speaker 3: things are crazy heavy, so the bigger they are, the

1073
00:45:51,920 --> 00:45:55,800
Speaker 3: harder they fall. But man, my screen is totally intact,

1074
00:45:55,800 --> 00:45:58,879
Speaker 3: and I have yet to have to start snooping around

1075
00:45:58,880 --> 00:46:01,120
Speaker 3: and seeing how much placement screen is going to cost

1076
00:46:01,120 --> 00:46:03,759
Speaker 3: a DIY. But I've equated repairing your own electronics to

1077
00:46:04,160 --> 00:46:06,600
Speaker 3: changing your own oil in your car. That's not something

1078
00:46:06,600 --> 00:46:10,919
Speaker 3: that people do anymore, but do anymore for multiple reasons.

1079
00:46:10,920 --> 00:46:11,160
Speaker 2: I don't know.

1080
00:46:11,239 --> 00:46:13,520
Speaker 3: People don't want to mess with their car. Cars are

1081
00:46:13,520 --> 00:46:15,839
Speaker 3: more computers than anything else these days. But at least

1082
00:46:15,840 --> 00:46:18,120
Speaker 3: with a phone, you don't have to deal with old

1083
00:46:18,160 --> 00:46:19,799
Speaker 3: oil and you try to figure out like how to

1084
00:46:19,800 --> 00:46:22,840
Speaker 3: dispose of it and it's just a big mess. But

1085
00:46:22,880 --> 00:46:25,080
Speaker 3: the ability to be a little bit handy when it

1086
00:46:25,080 --> 00:46:26,440
Speaker 3: comes to some of the things that you have on

1087
00:46:26,480 --> 00:46:29,000
Speaker 3: hand that are in your possession that you have been

1088
00:46:29,040 --> 00:46:31,359
Speaker 3: tasked with maintaining, I think it can go a long

1089
00:46:31,400 --> 00:46:33,960
Speaker 3: way in not only saving money, but also it's like

1090
00:46:34,080 --> 00:46:35,640
Speaker 3: you feel good about it. You kind of fiddle with

1091
00:46:35,680 --> 00:46:39,000
Speaker 3: it and you're like, yes, I am a dude or

1092
00:46:39,000 --> 00:46:41,520
Speaker 3: a chick who just repaired their own phone. It is

1093
00:46:41,840 --> 00:46:44,759
Speaker 3: back to working. There's like a sense of accomplishment for sure.

1094
00:46:44,880 --> 00:46:47,839
Speaker 1: Psychological standpoint, no, I totally get that, And so yeah,

1095
00:46:47,840 --> 00:46:49,200
Speaker 1: I would look at some of those YouTube videos. I

1096
00:46:49,239 --> 00:46:50,840
Speaker 1: would follow some of the advice from folks on the

1097
00:46:50,880 --> 00:46:53,360
Speaker 1: Facebook group who have had similar issues with their charging ports.

1098
00:46:53,560 --> 00:46:55,560
Speaker 1: See if it works, try to prolong the life for

1099
00:46:55,640 --> 00:46:58,120
Speaker 1: this phone if you can, and if not, if the

1100
00:46:58,160 --> 00:47:00,319
Speaker 1: port you know, can't be cleaned out and it's just

1101
00:47:00,360 --> 00:47:03,120
Speaker 1: time for a new phone. We'll give our favorite options,

1102
00:47:03,120 --> 00:47:05,640
Speaker 1: although I will say the options are slim. The pixel

1103
00:47:05,680 --> 00:47:08,320
Speaker 1: A series is one of the options I would typically recommend.

1104
00:47:08,600 --> 00:47:10,759
Speaker 1: You've got one, and it doesn't sound like it's working

1105
00:47:10,800 --> 00:47:12,799
Speaker 1: out so hot. Sorry about that, but I had, I've

1106
00:47:12,800 --> 00:47:15,719
Speaker 1: had multiple different versions of the pixel A series, and

1107
00:47:15,760 --> 00:47:18,399
Speaker 1: maybe it's just time to upgrade to a slightly newer

1108
00:47:18,480 --> 00:47:22,000
Speaker 1: version of that A series. I really did, I think

1109
00:47:22,040 --> 00:47:23,719
Speaker 1: I did. The last one I had was the six

1110
00:47:23,840 --> 00:47:26,480
Speaker 1: A and I really enjoyed it, Like I thought, it

1111
00:47:26,560 --> 00:47:28,640
Speaker 1: was a really good phone and it's amazing.

1112
00:47:28,280 --> 00:47:31,120
Speaker 3: Until it didn't last you for even two years though, right,

1113
00:47:31,320 --> 00:47:33,479
Speaker 3: Like I mean, so, it's funny that we were talking

1114
00:47:33,480 --> 00:47:36,200
Speaker 3: about frugal versus cheap and you have to kind of

1115
00:47:36,239 --> 00:47:39,160
Speaker 3: start weighing what you want to prioritize because on one hand,

1116
00:47:39,200 --> 00:47:41,279
Speaker 3: it's like, man, here is an affordable option, and for

1117
00:47:41,320 --> 00:47:43,440
Speaker 3: a lot of people, I think that is the option

1118
00:47:43,520 --> 00:47:45,920
Speaker 3: for them to consider. But then you start thinking how

1119
00:47:45,960 --> 00:47:47,880
Speaker 3: often it is am I sending this to the landfill?

1120
00:47:48,120 --> 00:47:51,600
Speaker 3: It comes down to being or you know, being a

1121
00:47:51,640 --> 00:47:54,200
Speaker 3: responsible or a responsible consumer.

1122
00:47:54,280 --> 00:47:55,799
Speaker 1: Yeah, and if you spend twice as much but you

1123
00:47:55,880 --> 00:47:58,600
Speaker 1: keep it two times long longer than or even more

1124
00:47:58,920 --> 00:48:01,560
Speaker 1: even longer, Yeah, then you're thinking about it on how

1125
00:48:01,640 --> 00:48:03,080
Speaker 1: much you're spending on a peri your basis, I think

1126
00:48:03,160 --> 00:48:05,760
Speaker 1: is a good way to think about exactly. And so, yeah,

1127
00:48:06,360 --> 00:48:08,080
Speaker 1: if I'm buying a thousand dollars phone, then I wanted

1128
00:48:08,160 --> 00:48:10,759
Speaker 1: to last for three or hopefully four years. Think about

1129
00:48:10,800 --> 00:48:12,880
Speaker 1: it like that, like maybe the more expensive option is

1130
00:48:12,960 --> 00:48:15,040
Speaker 1: going to you're going to get more juice out of it.

1131
00:48:15,160 --> 00:48:18,680
Speaker 1: Another option, right since you're already used to using Android phones,

1132
00:48:18,840 --> 00:48:21,080
Speaker 1: is going with something from the company One Plus. You

1133
00:48:21,120 --> 00:48:23,040
Speaker 1: can get their base model for just a hair over

1134
00:48:23,080 --> 00:48:26,360
Speaker 1: two fifty. I hear people sing the praises of one plus,

1135
00:48:26,800 --> 00:48:29,280
Speaker 1: and so it seems like they make really good phones.

1136
00:48:29,440 --> 00:48:30,520
Speaker 2: They're not like Sam Song.

1137
00:48:30,560 --> 00:48:31,920
Speaker 3: These are the ones that you can like swap out

1138
00:48:31,960 --> 00:48:34,879
Speaker 3: the battery and I think I think so, I think, yeah,

1139
00:48:34,880 --> 00:48:37,120
Speaker 3: they're made to be repaired. I no, No, that's a

1140
00:48:37,120 --> 00:48:39,799
Speaker 3: different Your thing is a free phone or something like that,

1141
00:48:40,480 --> 00:48:42,799
Speaker 3: which we've had listeners right about before, which are in

1142
00:48:42,800 --> 00:48:43,479
Speaker 3: Europe their Europe.

1143
00:48:43,560 --> 00:48:44,480
Speaker 2: Yeah, as no.

1144
00:48:44,520 --> 00:48:46,600
Speaker 1: One plus is I believe in American company, and they

1145
00:48:46,600 --> 00:48:49,560
Speaker 1: sell pretty solid Android phones that people really like noise

1146
00:48:49,760 --> 00:48:52,320
Speaker 1: and if you love Apple the iPhone se that's a

1147
00:48:52,360 --> 00:48:54,839
Speaker 1: solid phone at a pretty solid price. I think Kate

1148
00:48:54,960 --> 00:48:56,840
Speaker 1: still got what the second gin?

1149
00:48:56,880 --> 00:49:00,000
Speaker 2: I got our new one for Christmas? Okay, look at it.

1150
00:49:00,280 --> 00:49:00,680
Speaker 2: I got her.

1151
00:49:00,840 --> 00:49:03,440
Speaker 3: I got her the same kind that I got, which, well,

1152
00:49:03,560 --> 00:49:05,480
Speaker 3: here's the thing. You'd say that because you're like, oh

1153
00:49:05,480 --> 00:49:07,560
Speaker 3: my gosh, you got her a thirteen Pro. So I

1154
00:49:07,560 --> 00:49:09,640
Speaker 3: got her the exact same phone that I got. But

1155
00:49:09,640 --> 00:49:11,400
Speaker 3: that means that that thing was announced like three or

1156
00:49:11,400 --> 00:49:13,799
Speaker 3: four years ago. Like literally, I'm on my third third

1157
00:49:13,880 --> 00:49:15,640
Speaker 3: year with that phone and I didn't even buy it new.

1158
00:49:16,239 --> 00:49:19,200
Speaker 3: It was after they had announced well I don't know

1159
00:49:19,360 --> 00:49:21,319
Speaker 3: basically when they're coming out with fifteens and you reach

1160
00:49:21,400 --> 00:49:22,719
Speaker 3: back into the past and you buy a pro.

1161
00:49:22,880 --> 00:49:23,120
Speaker 2: Yeah.

1162
00:49:23,120 --> 00:49:25,400
Speaker 3: I mean she was happy because she got a new phone,

1163
00:49:25,520 --> 00:49:26,800
Speaker 3: and I don't know if that's something she would have

1164
00:49:26,800 --> 00:49:28,239
Speaker 3: pulled the trigger on. But she also kind of like

1165
00:49:28,239 --> 00:49:30,839
Speaker 3: looked at like side eyed me a little bit. She's like, wait,

1166
00:49:30,840 --> 00:49:34,279
Speaker 3: which ones did they just announce? This is I think

1167
00:49:34,280 --> 00:49:34,760
Speaker 3: the biggest?

1168
00:49:35,280 --> 00:49:36,680
Speaker 2: But was a good phone?

1169
00:49:36,960 --> 00:49:40,040
Speaker 3: S right, and they've got there's a third gen Apple

1170
00:49:40,160 --> 00:49:42,319
Speaker 3: sc as well, but just by the ones that are

1171
00:49:42,560 --> 00:49:44,480
Speaker 3: a couple of years old. Because the technology has not

1172
00:49:44,760 --> 00:49:49,080
Speaker 3: improved all that much, they're getting better incrementally as opposed

1173
00:49:49,080 --> 00:49:51,520
Speaker 3: to the first I don't know, ten years that the

1174
00:49:51,520 --> 00:49:54,000
Speaker 3: iPhone was out, where there were just massive jumps from

1175
00:49:54,080 --> 00:49:55,480
Speaker 3: one model to the next.

1176
00:49:55,520 --> 00:49:59,400
Speaker 1: Apple in particular, it's really good about maintaining security updates

1177
00:49:59,400 --> 00:50:01,120
Speaker 1: for those phones years and years and years. So you

1178
00:50:01,200 --> 00:50:03,600
Speaker 1: get the thirteen, You've still probably got five years worth

1179
00:50:03,600 --> 00:50:06,000
Speaker 1: of Apple covering that model exactly.

1180
00:50:06,120 --> 00:50:08,160
Speaker 3: Yeah, So I don't know in my mind that is

1181
00:50:08,200 --> 00:50:10,720
Speaker 3: the that's the way to go is keeping that device around.

1182
00:50:10,760 --> 00:50:13,400
Speaker 3: And you know what again, like I got that phone

1183
00:50:13,760 --> 00:50:17,360
Speaker 3: sometime in twenty twenty one, and I promise you like

1184
00:50:17,400 --> 00:50:20,319
Speaker 3: it feels just as fresh and capable as ever, and

1185
00:50:20,520 --> 00:50:22,000
Speaker 3: you know, put a case on it, put a screen

1186
00:50:22,000 --> 00:50:24,640
Speaker 3: protector on there, and realize too, that we just do

1187
00:50:24,719 --> 00:50:26,399
Speaker 3: more with our phones, Like there is a whole lot

1188
00:50:26,400 --> 00:50:29,360
Speaker 3: more utility that we derive from those devices, you know,

1189
00:50:29,520 --> 00:50:30,760
Speaker 3: like a flip phone back.

1190
00:50:30,600 --> 00:50:33,120
Speaker 2: When we were flashlight back its back.

1191
00:50:32,960 --> 00:50:35,799
Speaker 3: And when we're teenagers. And you compare that to the

1192
00:50:35,800 --> 00:50:38,640
Speaker 3: prices on other technology devices that we've seen plummet, Like

1193
00:50:38,680 --> 00:50:40,959
Speaker 3: just think about flat screens, yeah, right, Like we've seen

1194
00:50:41,320 --> 00:50:44,400
Speaker 3: TVs get bigger and nicer in the prices plummet, And

1195
00:50:44,440 --> 00:50:48,080
Speaker 3: so you think, why the heck are phones so expensive. Well,

1196
00:50:48,160 --> 00:50:50,919
Speaker 3: I guarantee you probably watch just as much TV quote

1197
00:50:50,960 --> 00:50:52,759
Speaker 3: unquote TV on your phone as you do on your

1198
00:50:52,800 --> 00:50:53,920
Speaker 3: actual flat screen at home.

1199
00:50:54,000 --> 00:50:56,799
Speaker 1: And the innards have only gotten better, more robust. I mean,

1200
00:50:56,800 --> 00:50:59,359
Speaker 1: they're thinking fast man, exactly. It's hard to see because

1201
00:50:59,360 --> 00:51:00,759
Speaker 1: you're like the screens this is the same, and some

1202
00:51:00,880 --> 00:51:02,759
Speaker 1: of the storage amount, but some of those other things

1203
00:51:02,760 --> 00:51:04,799
Speaker 1: that you're not actually able to look at with your

1204
00:51:04,800 --> 00:51:07,920
Speaker 1: own two eyes that are happening underneath the titanium or

1205
00:51:07,920 --> 00:51:09,239
Speaker 1: whatever it is that they're making the phone down.

1206
00:51:09,440 --> 00:51:11,280
Speaker 2: So it's impressive. And I guess, okay.

1207
00:51:11,280 --> 00:51:13,319
Speaker 1: One other thing I want to mention, just from a

1208
00:51:14,040 --> 00:51:17,960
Speaker 1: just a pure ridiculously cheap standpoint, is Motorola Phones. Motorola

1209
00:51:18,000 --> 00:51:20,360
Speaker 1: makes some solid phones in the one hundred and fifty to

1210
00:51:20,400 --> 00:51:21,600
Speaker 1: two hundred fifty dollar range.

1211
00:51:21,719 --> 00:51:22,439
Speaker 2: They come with more.

1212
00:51:22,360 --> 00:51:24,640
Speaker 1: Trade offs, and it might be like a stepping stone

1213
00:51:24,680 --> 00:51:27,480
Speaker 1: phone that's not you're not using for three to four years.

1214
00:51:27,480 --> 00:51:29,760
Speaker 1: They can bridge you to the point to where maybe

1215
00:51:29,840 --> 00:51:32,399
Speaker 1: you feel a little bit better about the device you

1216
00:51:32,480 --> 00:51:35,080
Speaker 1: and don't forget to think about buying used, buying refurbished.

1217
00:51:35,120 --> 00:51:36,960
Speaker 1: Maybe a friend is upgrading their phone they're looking to

1218
00:51:36,960 --> 00:51:38,799
Speaker 1: get rid of it and you're like, oh, oh you

1219
00:51:38,800 --> 00:51:41,520
Speaker 1: got the iPhone thirteen? Bro, you're going for the fifteen sucker?

1220
00:51:41,560 --> 00:51:43,200
Speaker 1: All right, I'll take Yeah, how much can I buy

1221
00:51:43,239 --> 00:51:45,239
Speaker 1: yours for? That's a great way to save money on

1222
00:51:45,280 --> 00:51:47,480
Speaker 1: a phone too. Is kind of going with the hand

1223
00:51:47,480 --> 00:51:48,120
Speaker 1: me doowt model.

1224
00:51:48,320 --> 00:51:50,680
Speaker 3: Yeah it's just about as good and you're paying a

1225
00:51:50,680 --> 00:51:53,320
Speaker 3: whole lot less for it. But uh yeah, Matthew, we

1226
00:51:53,360 --> 00:51:55,520
Speaker 3: hope that gets you pointed in the right direction.

1227
00:51:56,280 --> 00:51:56,560
Speaker 2: Joel.

1228
00:51:57,040 --> 00:51:58,960
Speaker 3: Or beer that you and I enjoyed during this episode

1229
00:51:59,120 --> 00:52:02,280
Speaker 3: is this is the what your thoughts on this tart?

1230
00:52:02,320 --> 00:52:03,920
Speaker 2: Sayson? I love a good tart, Sason.

1231
00:52:04,000 --> 00:52:06,920
Speaker 1: I will say the tart combined with the funky is

1232
00:52:06,960 --> 00:52:08,520
Speaker 1: my favorite, and I wish this had a little more

1233
00:52:08,520 --> 00:52:10,799
Speaker 1: funk going on, but I still really dug it had

1234
00:52:10,840 --> 00:52:13,520
Speaker 1: actually some interesting hop notes too going on at the

1235
00:52:13,560 --> 00:52:15,840
Speaker 1: same time, which seysons are not usually known for us.

1236
00:52:15,840 --> 00:52:18,000
Speaker 3: This is almost like tartan dry as well. You kind

1237
00:52:18,000 --> 00:52:20,759
Speaker 3: of drink like a table beer light ABV not a

1238
00:52:20,800 --> 00:52:24,120
Speaker 3: whole lot of flavor, which means it's just nice to

1239
00:52:24,280 --> 00:52:26,720
Speaker 3: just have a table side here while we talk about money,

1240
00:52:26,719 --> 00:52:28,759
Speaker 3: and it's a nice sipper. Also means we could have

1241
00:52:28,760 --> 00:52:31,200
Speaker 3: been eaten some steak or something with it and it

1242
00:52:31,200 --> 00:52:34,160
Speaker 3: would not have overpowered the meal as well. This is

1243
00:52:34,200 --> 00:52:37,440
Speaker 3: another one brought the ribbi in bro. This was another

1244
00:52:37,480 --> 00:52:38,480
Speaker 3: beer by.

1245
00:52:38,600 --> 00:52:39,640
Speaker 2: Pete Mont Brewery.

1246
00:52:39,680 --> 00:52:41,000
Speaker 3: Be sure to check him out if you happen to

1247
00:52:41,040 --> 00:52:44,280
Speaker 3: be driving through Megan, Georgia. But buddy, that's gonna.

1248
00:52:44,040 --> 00:52:46,280
Speaker 2: Be it for this episode. We'll make sure to link.

1249
00:52:46,080 --> 00:52:49,600
Speaker 3: To either previous episodes that we mentioned some of the

1250
00:52:49,600 --> 00:52:52,680
Speaker 3: different articles that we mentioned during this episode up in

1251
00:52:52,680 --> 00:52:54,640
Speaker 3: our show notes at howdamoney dot com.

1252
00:52:54,760 --> 00:52:58,720
Speaker 1: Yeah, like that one from Nick Midjulie. It's a super

1253
00:52:58,719 --> 00:53:01,040
Speaker 1: nerdy if you're if you want no more learn all

1254
00:53:01,040 --> 00:53:02,680
Speaker 1: about leveraged et Yeah, if you want.

1255
00:53:02,520 --> 00:53:04,360
Speaker 2: To know more about the risks of too much leverage,

1256
00:53:04,400 --> 00:53:05,200
Speaker 2: that's a good article.

1257
00:53:05,320 --> 00:53:07,080
Speaker 3: But the t LDR is just don't do it. Yeah,

1258
00:53:07,200 --> 00:53:08,600
Speaker 3: just don't buy leverage ets.

1259
00:53:08,680 --> 00:53:09,000
Speaker 6: That right.

1260
00:53:09,040 --> 00:53:10,520
Speaker 1: You can read the article if you want to put

1261
00:53:10,880 --> 00:53:13,400
Speaker 1: But like Ni Nick says, like his book is titled

1262
00:53:13,480 --> 00:53:15,719
Speaker 1: just keep buying in general. So yeah, that's that's our

1263
00:53:15,800 --> 00:53:19,520
Speaker 1: encouragement to you as well. Keep buying assets, keep investing

1264
00:53:19,560 --> 00:53:21,960
Speaker 1: your money, but maybe just not in the leverage cts.

1265
00:53:22,000 --> 00:53:23,799
Speaker 2: All right, that's gonna do it. Matt until next time.

1266
00:53:24,040 --> 00:53:41,960
Speaker 3: Best friends out, best friends out, all right,