1 00:00:00,080 --> 00:00:02,600 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,720 --> 00:00:06,040 Speaker 1: Matt's and today we're discussing ridiculous credit card interest rates 3 00:00:06,120 --> 00:00:27,240 Speaker 1: and our city is dead? Who our cities dead? That's 4 00:00:27,280 --> 00:00:30,360 Speaker 1: kind of a controversial question, Joel. Is COVID basically like 5 00:00:30,440 --> 00:00:34,360 Speaker 1: Godzilla for big cities? Well, some would say so, right. 6 00:00:34,479 --> 00:00:37,800 Speaker 1: A lot of headlines are saying that COVID nineteen the pandemic, 7 00:00:37,880 --> 00:00:40,440 Speaker 1: This is bringing an end to to city life as 8 00:00:40,479 --> 00:00:42,400 Speaker 1: we know it's But you and I'm in I think 9 00:00:42,400 --> 00:00:44,279 Speaker 1: we feel a little bit differently about it. I love 10 00:00:44,400 --> 00:00:46,240 Speaker 1: arguing with you. Let's do that later. Oh, you and 11 00:00:46,320 --> 00:00:48,080 Speaker 1: I are on the same page. We are arguing with 12 00:00:48,120 --> 00:00:51,199 Speaker 1: the headline. Okay, good good, I'm with you. All that 13 00:00:51,320 --> 00:00:53,760 Speaker 1: being said, we actually aren't in the city currently. It's 14 00:00:53,920 --> 00:00:56,480 Speaker 1: July three right now, the day that this comes out, 15 00:00:56,480 --> 00:00:59,639 Speaker 1: But we actually recorded this one a little ahead of time. Uh, 16 00:00:59,680 --> 00:01:01,880 Speaker 1: this your family and our family. We've been at the 17 00:01:01,920 --> 00:01:03,800 Speaker 1: beach and I can't say I've enjoyed the beach because 18 00:01:03,840 --> 00:01:06,240 Speaker 1: literally recording this this day before we leave, I think 19 00:01:06,280 --> 00:01:08,160 Speaker 1: we're gonna enjoy the beach. I'm pretty sure we're gonna 20 00:01:08,160 --> 00:01:10,080 Speaker 1: have a great time. So if we don't though. On 21 00:01:10,120 --> 00:01:12,479 Speaker 1: next Friday's episode, we can make sure to update everybody. Yeah, 22 00:01:12,520 --> 00:01:14,399 Speaker 1: we'll let people know. If the beach was terrible, well 23 00:01:14,440 --> 00:01:16,280 Speaker 1: we'll tell them, we'll give him the scoop. But yeah, 24 00:01:16,360 --> 00:01:18,280 Speaker 1: it's always good to get away. I'm looking forward to that. 25 00:01:18,640 --> 00:01:21,600 Speaker 1: And for everybody out there listening, happy fourth of July. 26 00:01:21,640 --> 00:01:23,720 Speaker 1: I hope you have an excellent people have today off 27 00:01:23,760 --> 00:01:26,720 Speaker 1: typically and and hopefully you have a good weekend planned 28 00:01:26,760 --> 00:01:29,240 Speaker 1: with the people you love the most. If you're hanging 29 00:01:29,240 --> 00:01:31,800 Speaker 1: out with those people currently. Obviously people are handling things 30 00:01:31,840 --> 00:01:34,639 Speaker 1: differently right now, so people aren't getting together with family members, 31 00:01:34,600 --> 00:01:36,240 Speaker 1: none of that stuff. But hopefully you can at least 32 00:01:36,240 --> 00:01:39,160 Speaker 1: FaceTime and have a hamburger or something while you're doing it. Yeah, 33 00:01:39,160 --> 00:01:41,360 Speaker 1: hopefully you're able to celebrate a little bit. You know, 34 00:01:41,360 --> 00:01:44,119 Speaker 1: maybe there's a family in your neighborhood, some close friends 35 00:01:44,560 --> 00:01:46,880 Speaker 1: that you've sort of quarantined together with. I mean, that's 36 00:01:47,040 --> 00:01:48,880 Speaker 1: that's you and me. You know, we've continued to make 37 00:01:48,920 --> 00:01:51,760 Speaker 1: this podcast, and we've been recording in person. Our families 38 00:01:51,800 --> 00:01:54,800 Speaker 1: have basically clustered together. We've got our our little bubble. 39 00:01:55,160 --> 00:01:56,800 Speaker 1: Both of our families are making sure that we're still 40 00:01:56,840 --> 00:01:59,760 Speaker 1: taking these precautions because that's we've seen recently COVID Night Team. Man, 41 00:01:59,800 --> 00:02:02,360 Speaker 1: it's aking around. It's it's not leaving us anytime soon. Yeah, 42 00:02:02,360 --> 00:02:05,040 Speaker 1: it's tough to see the spike in cases, and and 43 00:02:05,040 --> 00:02:06,760 Speaker 1: hopefully it's a good reminder for all of us we 44 00:02:06,840 --> 00:02:10,079 Speaker 1: actually need to continue to take the precautions like wearing masks, 45 00:02:10,080 --> 00:02:12,880 Speaker 1: like social distancing. But now, Matt, let's get to uh 46 00:02:13,000 --> 00:02:15,760 Speaker 1: the Friday flight. It's our Friday flights. Yeah. It's a 47 00:02:15,840 --> 00:02:18,800 Speaker 1: quick quick sampling of stories we found interesting this week. 48 00:02:19,160 --> 00:02:21,359 Speaker 1: And first up, something I wanted to make sure everybody 49 00:02:21,400 --> 00:02:24,400 Speaker 1: was aware of is to not forget to put money 50 00:02:24,600 --> 00:02:28,560 Speaker 1: in your i RA A forten right, You've only gotten 51 00:02:28,639 --> 00:02:32,079 Speaker 1: until mid July to do this tax day obviously typically April, 52 00:02:33,080 --> 00:02:36,400 Speaker 1: but this year that's changed because of the pandemic, of course, 53 00:02:36,720 --> 00:02:39,600 Speaker 1: and the filing deadline is now July fifteen, So don't 54 00:02:39,600 --> 00:02:42,040 Speaker 1: forget to file your taxes. And also don't forget to 55 00:02:42,040 --> 00:02:44,600 Speaker 1: contribute money for an IRA if you haven't done that 56 00:02:44,840 --> 00:02:47,800 Speaker 1: for last year. And since those annual contributions are use 57 00:02:47,880 --> 00:02:50,200 Speaker 1: it or lose it, we suggest obviously putting in as 58 00:02:50,280 --> 00:02:52,680 Speaker 1: much as you can you can put six thousand dollars 59 00:02:52,680 --> 00:02:54,520 Speaker 1: in if you're a baller, right, if you want to 60 00:02:54,560 --> 00:02:57,280 Speaker 1: max it out, and seven thousand dollars in if you're 61 00:02:57,280 --> 00:02:59,760 Speaker 1: a bowler who happens to be fifty years or older. 62 00:03:00,720 --> 00:03:03,919 Speaker 1: The fifty plus ballers out there, uh, an extra thousand 63 00:03:04,000 --> 00:03:06,679 Speaker 1: work with and don't forget. As well as spousal rath 64 00:03:06,720 --> 00:03:08,840 Speaker 1: I raise right, if you have a spouse who doesn't 65 00:03:08,840 --> 00:03:10,760 Speaker 1: work out of the home, they can have a wrath 66 00:03:10,800 --> 00:03:12,680 Speaker 1: as well that you contribute to. So you can take 67 00:03:12,720 --> 00:03:15,600 Speaker 1: it from six grand to twelve grand. Yeah, and hopefully 68 00:03:15,600 --> 00:03:17,960 Speaker 1: some of our listeners were also fortunate enough to maybe 69 00:03:18,040 --> 00:03:20,959 Speaker 1: max out those twenty nineteen rath contributions, maybe even a 70 00:03:21,000 --> 00:03:22,639 Speaker 1: few months ago when the market was was down a 71 00:03:22,680 --> 00:03:25,760 Speaker 1: little bit and been the way to do it right. Yeah, absolutely, man, 72 00:03:25,800 --> 00:03:27,440 Speaker 1: it would have been good timing. Yeah. So something else. 73 00:03:27,520 --> 00:03:30,000 Speaker 1: Let's talk about interest rates. They have fallen a good bit. 74 00:03:30,000 --> 00:03:32,680 Speaker 1: We've seen all sorts of interest rates falling, from mortgages 75 00:03:32,760 --> 00:03:35,160 Speaker 1: to car loans to the rate that you earn within 76 00:03:35,160 --> 00:03:37,680 Speaker 1: your high interest savings account. Yeah, mortgage rates for thirty 77 00:03:37,720 --> 00:03:40,400 Speaker 1: year mortgages under three pc are people are getting quoted now, 78 00:03:40,400 --> 00:03:42,000 Speaker 1: which is crazy. H Yeah, they're really close to being 79 00:03:42,000 --> 00:03:45,080 Speaker 1: at all time lows right now. But interest rates are 80 00:03:45,120 --> 00:03:48,440 Speaker 1: not down for credit cards, man. Credit card interest rates 81 00:03:48,520 --> 00:03:51,560 Speaker 1: are a little unique, and unfortunately for some spenders, they 82 00:03:51,760 --> 00:03:55,640 Speaker 1: remain sky high. We are, of course fans of credit cards, 83 00:03:55,680 --> 00:03:58,520 Speaker 1: but only if you pay them in full every single month. 84 00:03:58,800 --> 00:04:00,800 Speaker 1: Don't let your money go towards it's the estimated one 85 00:04:01,200 --> 00:04:04,320 Speaker 1: billion dollars in profit that banks make from late fees 86 00:04:04,360 --> 00:04:07,120 Speaker 1: and customers paying interest. Dang, that's a lot of money. Yeah, 87 00:04:07,160 --> 00:04:09,080 Speaker 1: but if you do pay off your balance every single month, 88 00:04:09,120 --> 00:04:10,680 Speaker 1: then it doesn't matter what the interest rate is on 89 00:04:10,720 --> 00:04:12,960 Speaker 1: the card. Right. But if you are someone who is 90 00:04:13,040 --> 00:04:15,520 Speaker 1: carrying a balance, it's more important than ever to consider 91 00:04:15,560 --> 00:04:18,080 Speaker 1: a balance transfer or to see if your local credit 92 00:04:18,160 --> 00:04:21,200 Speaker 1: union offers a card with a much lower APR. And 93 00:04:21,240 --> 00:04:22,960 Speaker 1: we have a good article up on the website that 94 00:04:23,040 --> 00:04:25,839 Speaker 1: explains how balance transfer cards work and what some of 95 00:04:25,839 --> 00:04:27,839 Speaker 1: the better options are that are out there for folks. 96 00:04:27,960 --> 00:04:29,920 Speaker 1: And we'll make sure that we link to that article 97 00:04:30,040 --> 00:04:32,039 Speaker 1: in our show notes. Yeah, and we'd love to see 98 00:04:32,080 --> 00:04:35,679 Speaker 1: consumer organizations lobbying for reduced rates on credit cards, because 99 00:04:35,880 --> 00:04:38,520 Speaker 1: it's just not right that interest rates on credit cards 100 00:04:38,520 --> 00:04:42,000 Speaker 1: remain sky high as Infrustrates everywhere else are are falling 101 00:04:42,040 --> 00:04:45,520 Speaker 1: around us, and sometimes it takes applying pressure on the 102 00:04:45,520 --> 00:04:48,560 Speaker 1: big banks to actually see some change happen, particularly in 103 00:04:48,600 --> 00:04:51,240 Speaker 1: the face of the pandemic. Everyday Americans could really use 104 00:04:51,279 --> 00:04:53,039 Speaker 1: some relief on those credit card bills. They could use 105 00:04:53,080 --> 00:04:55,400 Speaker 1: a lower interest rate. But if you're in credit card debt, 106 00:04:55,400 --> 00:04:58,880 Speaker 1: remember that that's one thing that you can ask your bank. 107 00:04:59,240 --> 00:05:00,920 Speaker 1: You can do this on your own. Make sure your 108 00:05:00,960 --> 00:05:03,320 Speaker 1: credit score is in good shape before you call. That's 109 00:05:03,320 --> 00:05:05,280 Speaker 1: something it's helpful if you actually want to get a 110 00:05:05,279 --> 00:05:08,200 Speaker 1: reduced rate and then call your credit card company and 111 00:05:08,279 --> 00:05:10,320 Speaker 1: ask if they're willing to lower your rate for you. 112 00:05:10,600 --> 00:05:12,680 Speaker 1: It's important to do your research, know what other rates 113 00:05:12,720 --> 00:05:15,040 Speaker 1: you could potentially get through another bank or another credit 114 00:05:15,080 --> 00:05:17,600 Speaker 1: card provider that will help you make your case. And 115 00:05:17,640 --> 00:05:19,600 Speaker 1: if you're in enough debt that it's overwhelming, it's really 116 00:05:19,600 --> 00:05:22,240 Speaker 1: important for you to go see a nonprofit credit counselor 117 00:05:22,279 --> 00:05:25,800 Speaker 1: through the NFCC or through Money Management International. Basically, it's 118 00:05:25,800 --> 00:05:28,320 Speaker 1: something important to be aware of, but it's also important 119 00:05:28,360 --> 00:05:30,799 Speaker 1: to know that you do have some control over this area, 120 00:05:30,800 --> 00:05:33,200 Speaker 1: and you can open a new credit card mat like 121 00:05:33,200 --> 00:05:35,719 Speaker 1: you mentioned, or lobby for a reduced interest rate for 122 00:05:35,760 --> 00:05:38,240 Speaker 1: yourself on your current credit card. Yeah, that's right. And 123 00:05:38,279 --> 00:05:40,599 Speaker 1: we've talked a lot about the NFCC, but less about 124 00:05:40,600 --> 00:05:44,200 Speaker 1: Money Management International, and that's the company that Thomas works for, 125 00:05:44,279 --> 00:05:47,040 Speaker 1: and we talked to him back in episode one about 126 00:05:47,040 --> 00:05:48,880 Speaker 1: finding credit relief. So if you haven't listened to that 127 00:05:48,920 --> 00:05:50,640 Speaker 1: episode and this kind of sounds like you this is 128 00:05:50,680 --> 00:05:52,640 Speaker 1: the position you're in, we would recommend for you to 129 00:05:52,680 --> 00:05:55,840 Speaker 1: go back and listen to that one episode one. And Joel, 130 00:05:55,880 --> 00:05:58,640 Speaker 1: we know that federal unemployment assistance that is going to 131 00:05:58,680 --> 00:06:01,600 Speaker 1: be ending soon, that additional six hundred dollars that you 132 00:06:01,640 --> 00:06:03,360 Speaker 1: know you should be receiving if you've been laid off 133 00:06:03,360 --> 00:06:05,440 Speaker 1: from your job that is set to finished at the 134 00:06:05,520 --> 00:06:08,720 Speaker 1: end of July. And so if you are currently unemployed, 135 00:06:08,800 --> 00:06:11,320 Speaker 1: that is something to be aware of. Depending on the 136 00:06:11,320 --> 00:06:13,920 Speaker 1: state that you live in, that means that your monthly 137 00:06:13,960 --> 00:06:15,840 Speaker 1: take home is going to be cut by quite a bit. 138 00:06:15,920 --> 00:06:18,919 Speaker 1: State unemployment benefits are typically pretty meager. And you know, 139 00:06:18,920 --> 00:06:22,120 Speaker 1: there's reason why this increased assistance has been short lived 140 00:06:22,120 --> 00:06:25,480 Speaker 1: because government officials they are hoping that a hiring spree 141 00:06:25,480 --> 00:06:28,440 Speaker 1: will occur, you know, like we've never seen before, but 142 00:06:28,480 --> 00:06:30,400 Speaker 1: that remains to be seen because we've seen some states 143 00:06:30,720 --> 00:06:33,599 Speaker 1: slow they're reopening right, like they're halting the different phases 144 00:06:33,640 --> 00:06:36,000 Speaker 1: of of reopening the state in the different businesses, So 145 00:06:36,040 --> 00:06:38,480 Speaker 1: it's tough to know whether that's actually going to pan out. Yeah, 146 00:06:38,520 --> 00:06:40,920 Speaker 1: I'm hoping that what they're hoping for comes yas right. 147 00:06:40,960 --> 00:06:43,160 Speaker 1: I want to see increased rehiring. I want to see 148 00:06:43,480 --> 00:06:46,400 Speaker 1: uh job openings all over the place and see people 149 00:06:46,600 --> 00:06:49,360 Speaker 1: being able to to find good work. And Matt, we 150 00:06:49,360 --> 00:06:52,080 Speaker 1: were just talking about filing taxes. It's important to remember 151 00:06:52,120 --> 00:06:55,080 Speaker 1: that the unemployment benefits that that people are currently receiving, 152 00:06:55,080 --> 00:06:58,159 Speaker 1: if they are on unemployment, they're taxable, right, So that 153 00:06:58,200 --> 00:07:00,320 Speaker 1: means that you will owe on any on a ployment 154 00:07:00,440 --> 00:07:03,359 Speaker 1: checks that you've received from your state or the federal government. 155 00:07:03,600 --> 00:07:05,359 Speaker 1: Hopefully you filled out the form or opted in for 156 00:07:05,400 --> 00:07:08,280 Speaker 1: your state to automatically withhold those taxes so you want 157 00:07:08,320 --> 00:07:10,320 Speaker 1: to worry about it later on. But if you didn't, 158 00:07:10,640 --> 00:07:12,640 Speaker 1: you you need to make sure you start planning to 159 00:07:12,640 --> 00:07:15,160 Speaker 1: pay those taxes once they're due next year, So holding 160 00:07:15,160 --> 00:07:17,119 Speaker 1: onto some of that money in a savings account, getting 161 00:07:17,120 --> 00:07:20,640 Speaker 1: prepared to oh taxes when you do file next year, 162 00:07:20,760 --> 00:07:22,760 Speaker 1: it's important. We just don't want you to get caught 163 00:07:22,760 --> 00:07:25,400 Speaker 1: off guard. Oh yeah, good point, man. Uh. And you know, 164 00:07:25,400 --> 00:07:27,840 Speaker 1: back to jobs. Obviously, we've seen the stock market pick 165 00:07:27,960 --> 00:07:30,120 Speaker 1: right back up where it left off for the most part, right, 166 00:07:30,520 --> 00:07:33,240 Speaker 1: but main street America, like we're not seeing that same 167 00:07:33,280 --> 00:07:36,880 Speaker 1: resilience or that optimism. And when that pandemic unemployment assistance 168 00:07:36,920 --> 00:07:39,320 Speaker 1: that pu A when that ends and many of the 169 00:07:39,360 --> 00:07:41,360 Speaker 1: jobs still are back, Like, that's what I'm worried about. 170 00:07:41,440 --> 00:07:43,960 Speaker 1: You know, I'm thinking about food banks in particular. They're 171 00:07:43,960 --> 00:07:48,120 Speaker 1: seeing an increased demand and food insecurity. It's swelling across 172 00:07:48,160 --> 00:07:50,200 Speaker 1: the country. Man, I'm concerned that as some of these 173 00:07:50,200 --> 00:07:53,720 Speaker 1: federal programs fall away, like the increased unemployment that we 174 00:07:53,760 --> 00:07:55,480 Speaker 1: just talked about, that we'll see food banks that have 175 00:07:55,640 --> 00:07:59,160 Speaker 1: an increasingly difficult time helping provide food for those in need. Yeah, 176 00:07:59,360 --> 00:08:01,520 Speaker 1: we're already kind of starting to see stories like that 177 00:08:01,560 --> 00:08:03,960 Speaker 1: trickle in mat of just food banks seeing just a 178 00:08:04,000 --> 00:08:07,400 Speaker 1: massively increased demand. And so yeah, anything that you can 179 00:08:07,400 --> 00:08:09,480 Speaker 1: do in your community, if you are in a good 180 00:08:09,480 --> 00:08:12,920 Speaker 1: spot to donate extra the food banks to support those efforts, 181 00:08:13,040 --> 00:08:15,160 Speaker 1: then that would be something we would encourage you to do. 182 00:08:15,520 --> 00:08:17,440 Speaker 1: So much of the best response I think that that 183 00:08:17,480 --> 00:08:21,360 Speaker 1: we can do as individuals is hyperlocal in our community 184 00:08:21,440 --> 00:08:23,600 Speaker 1: to help people that we know, and then also to 185 00:08:23,680 --> 00:08:27,000 Speaker 1: help local organizations like local food banks who are in 186 00:08:27,240 --> 00:08:29,600 Speaker 1: particular needs right now. And that one more thing I 187 00:08:29,640 --> 00:08:32,720 Speaker 1: want to say about the unemployment benefits that are supposed 188 00:08:32,720 --> 00:08:35,360 Speaker 1: to be ending soon. There has been talk of a 189 00:08:35,480 --> 00:08:39,160 Speaker 1: back to work bonus, but there really aren't any details 190 00:08:39,240 --> 00:08:41,480 Speaker 1: or specifics yet, so it's important not to count those 191 00:08:41,559 --> 00:08:44,400 Speaker 1: chickens before they hatch, you know. There's also been talking 192 00:08:44,520 --> 00:08:46,880 Speaker 1: at which we mentioned a few weeks back, of a 193 00:08:46,920 --> 00:08:50,959 Speaker 1: potential direct payment, a second direct payment to to individuals 194 00:08:50,960 --> 00:08:53,400 Speaker 1: and families, but that also is is vapor aware. At 195 00:08:53,440 --> 00:08:55,640 Speaker 1: this point. We don't know if something like that is 196 00:08:55,679 --> 00:08:57,320 Speaker 1: actually gonna happen, if a bill is going to pass. 197 00:08:57,520 --> 00:08:59,719 Speaker 1: But if you have been collecting unemployment and haven't been 198 00:08:59,720 --> 00:09:03,080 Speaker 1: able to landed job yet, now is a really important 199 00:09:03,120 --> 00:09:06,280 Speaker 1: time to be applying, to be looking for jobs. Matt. 200 00:09:06,280 --> 00:09:08,520 Speaker 1: Probably a month ago we talked about the vertical job sites. 201 00:09:08,679 --> 00:09:12,280 Speaker 1: That's another important thing, another important component when it comes 202 00:09:12,320 --> 00:09:15,440 Speaker 1: to applying for work. Looking not just to the big 203 00:09:15,520 --> 00:09:17,560 Speaker 1: job sites, although those can be helpful, but looking to 204 00:09:18,080 --> 00:09:22,280 Speaker 1: job sites that specialize in your industry, in particular applying there. 205 00:09:22,559 --> 00:09:24,920 Speaker 1: Oftentimes you can hire more quickly through the vertical job 206 00:09:24,960 --> 00:09:27,320 Speaker 1: sites as opposed to the ones that just post every 207 00:09:27,320 --> 00:09:30,160 Speaker 1: single job ever. Right, and also with the average state 208 00:09:30,200 --> 00:09:33,840 Speaker 1: unemployment being in the four dollar range, Uh, it'll be 209 00:09:33,880 --> 00:09:36,880 Speaker 1: a rude awakening when the PUA ends, Matt, and people 210 00:09:36,920 --> 00:09:39,679 Speaker 1: go from making roughly a week to less than five 211 00:09:39,760 --> 00:09:42,120 Speaker 1: hundred bucks a week. That's just really hard to get 212 00:09:42,160 --> 00:09:43,920 Speaker 1: buy on. Some More than anything, we just want to 213 00:09:44,000 --> 00:09:46,920 Speaker 1: lend that perspective, remind people that this is what's happening, 214 00:09:47,040 --> 00:09:48,800 Speaker 1: and to be prepared for it as best as you 215 00:09:48,800 --> 00:09:51,040 Speaker 1: can when it comes to saving some of that additional 216 00:09:51,080 --> 00:09:53,320 Speaker 1: money that you're bringing in right now, and also just 217 00:09:53,600 --> 00:09:55,960 Speaker 1: really getting after it in the job one even though 218 00:09:56,000 --> 00:09:58,480 Speaker 1: it's tough out there. So if that's you, we really 219 00:09:58,480 --> 00:10:00,800 Speaker 1: do wish you the best of luck. Alright, So Joel. 220 00:10:00,880 --> 00:10:02,560 Speaker 1: Right at the beginning of the episode, we tease a 221 00:10:02,559 --> 00:10:04,679 Speaker 1: little bit about moving away from the cities, and we're 222 00:10:04,720 --> 00:10:17,560 Speaker 1: going to talk about that right after the break. All right, Matt, 223 00:10:17,600 --> 00:10:20,080 Speaker 1: we're back and it's time to talk about cities. Are 224 00:10:20,240 --> 00:10:23,840 Speaker 1: people actually fleeing cities in massive numbers. There's been a 225 00:10:23,840 --> 00:10:26,439 Speaker 1: lot of headlines around this topic. A lot of people 226 00:10:26,480 --> 00:10:30,160 Speaker 1: have different thoughts, and some people have predicted the demise 227 00:10:30,160 --> 00:10:32,520 Speaker 1: of the city, that COVID is basically ruining some of 228 00:10:32,559 --> 00:10:35,000 Speaker 1: the bigger cities in particular like New York, and that 229 00:10:35,040 --> 00:10:37,520 Speaker 1: the suburbs are going to be hot and maybe the 230 00:10:37,559 --> 00:10:40,800 Speaker 1: countryside too. But then also Bloomberg recently had an article 231 00:10:41,240 --> 00:10:43,200 Speaker 1: that was titled this is not the End of Cities, 232 00:10:43,440 --> 00:10:45,520 Speaker 1: and there was a quote, Matt that I wanted to 233 00:10:45,520 --> 00:10:48,360 Speaker 1: share from Nobel winning economist Paul Romer. He said, the 234 00:10:48,440 --> 00:10:51,720 Speaker 1: underlying economic reality is that there is tremendous economic value 235 00:10:51,840 --> 00:10:54,640 Speaker 1: in interacting with people and sharing ideas. There still ought 236 00:10:54,679 --> 00:10:57,840 Speaker 1: to be gained from interaction in close physical proximity for 237 00:10:57,880 --> 00:10:59,960 Speaker 1: the rest of my life. Cities are going to continue 238 00:11:00,000 --> 00:11:03,920 Speaker 1: to be where the action is end. Quote. So who's right, right? Well, 239 00:11:04,160 --> 00:11:06,079 Speaker 1: I kind of actually tend to agree with with Mr 240 00:11:06,200 --> 00:11:08,800 Speaker 1: Romer personally, But let's go beyond just our opinion and 241 00:11:08,800 --> 00:11:11,120 Speaker 1: talk about all the predictions we're seeing floating around. Matt. 242 00:11:11,160 --> 00:11:13,680 Speaker 1: I mean, what's your take, what are your thoughts when 243 00:11:13,720 --> 00:11:15,440 Speaker 1: you're seeing these headlines floating around? I mean, you and 244 00:11:15,440 --> 00:11:17,840 Speaker 1: I we live in a city. Granted it has a 245 00:11:17,840 --> 00:11:20,240 Speaker 1: little more space than a city like New York. We're 246 00:11:20,280 --> 00:11:21,760 Speaker 1: not living on top of each other. We have a 247 00:11:21,760 --> 00:11:23,400 Speaker 1: little bit of a yard. But do you think that 248 00:11:23,440 --> 00:11:25,679 Speaker 1: the predictions about the death of cities are are premature 249 00:11:25,800 --> 00:11:27,600 Speaker 1: or are they on the mark? Yeah, man, I would 250 00:11:27,640 --> 00:11:29,640 Speaker 1: agree with you, and I would agree with Paul Romer. 251 00:11:29,720 --> 00:11:31,560 Speaker 1: There's a lot of value to be had in cities. 252 00:11:31,640 --> 00:11:33,360 Speaker 1: And this is something that Kate and I that we 253 00:11:33,440 --> 00:11:36,400 Speaker 1: came to on our own as well. Like, gosh, two 254 00:11:36,480 --> 00:11:39,360 Speaker 1: years ago now, before we started renovating our home, we 255 00:11:39,440 --> 00:11:41,480 Speaker 1: thought long and hard about if it made sense for 256 00:11:41,559 --> 00:11:43,720 Speaker 1: us to remain in the city because our work didn't 257 00:11:43,720 --> 00:11:47,000 Speaker 1: necessarily require us to be in the city. It required 258 00:11:47,040 --> 00:11:48,880 Speaker 1: us to be in the city sometimes, but it also 259 00:11:48,920 --> 00:11:50,240 Speaker 1: meant that there's a lot of time that we did 260 00:11:50,320 --> 00:11:53,000 Speaker 1: not need to be on location somewhere, right, And so yeah, 261 00:11:53,080 --> 00:11:56,320 Speaker 1: before we actually renovated our house, we spent a weekend 262 00:11:56,440 --> 00:11:58,640 Speaker 1: driving around, uh, not just the suburbs, but kind of 263 00:11:58,640 --> 00:12:00,800 Speaker 1: like out in the country, around like an hour hour 264 00:12:00,840 --> 00:12:03,360 Speaker 1: and a half outside the city, driving around, stopping in 265 00:12:03,400 --> 00:12:06,080 Speaker 1: these little towns, uh, you know, finding little neighborhoods and 266 00:12:06,080 --> 00:12:08,719 Speaker 1: streets where we thought we could see ourselves living as 267 00:12:08,760 --> 00:12:11,560 Speaker 1: a family. We wanted to challenge the notion uh that 268 00:12:11,600 --> 00:12:13,079 Speaker 1: we had that like that you have to be in 269 00:12:13,120 --> 00:12:14,600 Speaker 1: the city in order to work and in order to 270 00:12:14,600 --> 00:12:17,319 Speaker 1: be successful, in order to feel that you have community, 271 00:12:17,600 --> 00:12:19,520 Speaker 1: and we wanted to prove it to ourselves by seeing 272 00:12:19,520 --> 00:12:21,840 Speaker 1: what was out there. But as you know, by the 273 00:12:21,840 --> 00:12:24,440 Speaker 1: fact that we're still here in Atlanta, we felt that 274 00:12:24,480 --> 00:12:27,120 Speaker 1: there was still so much value that the city had. 275 00:12:27,480 --> 00:12:30,280 Speaker 1: Even though we love wide open spaces, we love going hiking, 276 00:12:30,280 --> 00:12:32,199 Speaker 1: we love having gardens and spending lots of our time 277 00:12:32,240 --> 00:12:35,600 Speaker 1: outside out in nature, we couldn't really see ourselves living 278 00:12:35,600 --> 00:12:37,920 Speaker 1: out there in some really small town where there's really 279 00:12:37,960 --> 00:12:40,240 Speaker 1: not much going on. I granted this is way before 280 00:12:40,280 --> 00:12:43,280 Speaker 1: the pandemic, but our opinion it still holds. But you know, 281 00:12:43,320 --> 00:12:46,079 Speaker 1: there always are going to be these unforeseen consequences when 282 00:12:46,080 --> 00:12:48,800 Speaker 1: it comes to something as large as this pandemic. Right. 283 00:12:49,040 --> 00:12:51,120 Speaker 1: Ben Carlson, who is a financial writer who we like 284 00:12:51,200 --> 00:12:53,480 Speaker 1: to keep up with. He recently wrote an article about 285 00:12:53,520 --> 00:12:56,080 Speaker 1: what he calls the air conditioning effect. First of all, 286 00:12:56,320 --> 00:12:58,600 Speaker 1: dive into some history in home air conditioning. It was 287 00:12:58,679 --> 00:13:02,040 Speaker 1: a purely accidental invention by a guy named William Carrier, 288 00:13:02,120 --> 00:13:04,960 Speaker 1: and you've heard of Carrier air conditioning units, But he 289 00:13:05,080 --> 00:13:06,920 Speaker 1: was just trying to keep his ink from smearing, And 290 00:13:07,000 --> 00:13:09,360 Speaker 1: it turns out he invented something that was way more 291 00:13:09,360 --> 00:13:13,120 Speaker 1: powerful than he had imagined. Essentially, his invention of air 292 00:13:13,160 --> 00:13:15,960 Speaker 1: conditioning stopped the migration from the South to the north 293 00:13:16,000 --> 00:13:18,600 Speaker 1: that was occurring at the time. The Sun Belt it 294 00:13:18,640 --> 00:13:22,319 Speaker 1: has seen a much larger influx of residents since nineteen forty, 295 00:13:22,559 --> 00:13:24,120 Speaker 1: and much of that is due to the ability to 296 00:13:24,200 --> 00:13:26,120 Speaker 1: hop out of the heat and indoors where you can 297 00:13:26,120 --> 00:13:28,160 Speaker 1: cool off. And so nobody would have been able to 298 00:13:28,200 --> 00:13:30,920 Speaker 1: predict that his invention would have literally shaped the country 299 00:13:30,960 --> 00:13:33,240 Speaker 1: as we know it today, but it has. Yeah. Air 300 00:13:33,240 --> 00:13:37,480 Speaker 1: Conditioning obviously has made the South habitable, whereas for a 301 00:13:37,520 --> 00:13:39,960 Speaker 1: lot of years it was just a mess living here 302 00:13:40,000 --> 00:13:43,600 Speaker 1: in the summer, that's for sure, a sweaty mess. But yeah, so, Matt, 303 00:13:43,600 --> 00:13:45,400 Speaker 1: when it comes to the trends of our city is 304 00:13:45,440 --> 00:13:47,560 Speaker 1: dead or is work from home? Is that going to 305 00:13:47,559 --> 00:13:51,080 Speaker 1: be the new normal for everyone forever? Well, maybe that 306 00:13:51,080 --> 00:13:53,440 Speaker 1: that work from home trend could continue to rise, of course, 307 00:13:53,679 --> 00:13:57,439 Speaker 1: and cities might see prolonged disturbance and people moving out 308 00:13:57,440 --> 00:14:01,200 Speaker 1: continually because of what's happened with COVID, But people also 309 00:14:01,280 --> 00:14:02,640 Speaker 1: might be itching to get back in the office in 310 00:14:02,679 --> 00:14:05,839 Speaker 1: a few months when COVID is hopefully infecting far pure 311 00:14:05,920 --> 00:14:09,080 Speaker 1: people or when we have widely available treatment. Right, will 312 00:14:09,160 --> 00:14:11,240 Speaker 1: young people start moving into the suburbs because of this, 313 00:14:11,559 --> 00:14:14,760 Speaker 1: that's possible or the country maybe, but experts don't agree 314 00:14:14,800 --> 00:14:17,120 Speaker 1: on this either. Will air travel ever be the same? 315 00:14:17,440 --> 00:14:20,400 Speaker 1: No one really knows yet. COVID will, of course have 316 00:14:20,480 --> 00:14:23,200 Speaker 1: long lasting implications, but it's impossible to know what they 317 00:14:23,240 --> 00:14:25,680 Speaker 1: will be or to know the depth of the impact 318 00:14:25,680 --> 00:14:27,760 Speaker 1: that they're actually going to have. And so it's always 319 00:14:27,760 --> 00:14:29,840 Speaker 1: interesting to me to like read both sides of why 320 00:14:29,880 --> 00:14:33,080 Speaker 1: people think that either cities are no longer going to 321 00:14:33,080 --> 00:14:36,440 Speaker 1: be relevant or why cities will continue to have relevance. 322 00:14:36,560 --> 00:14:38,320 Speaker 1: But I also take each opinion with a little bit 323 00:14:38,360 --> 00:14:40,360 Speaker 1: of a grain AsSalt, because it is really hard to 324 00:14:40,360 --> 00:14:42,360 Speaker 1: predict those things and we don't really know what's going 325 00:14:42,400 --> 00:14:45,000 Speaker 1: to happen. Yeah, and you know, change it moves slowly 326 00:14:45,200 --> 00:14:47,160 Speaker 1: as well. Right, Like headlines they tellt how like this 327 00:14:47,200 --> 00:14:49,120 Speaker 1: is going to change everything, but like is it really 328 00:14:49,320 --> 00:14:51,960 Speaker 1: Like it's really difficult to change an entire country and 329 00:14:52,000 --> 00:14:54,280 Speaker 1: its culture on a dime. And you know, there's a 330 00:14:54,280 --> 00:14:57,120 Speaker 1: reason that cities are popular their cultural and business epicenters 331 00:14:57,360 --> 00:14:59,840 Speaker 1: moving to the country. That might sound really nice to 332 00:14:59,840 --> 00:15:01,840 Speaker 1: me right now or at at a period before we 333 00:15:01,840 --> 00:15:03,960 Speaker 1: were looking to renovate our home, but you know, will 334 00:15:03,960 --> 00:15:05,800 Speaker 1: it still sound like the right move a year from 335 00:15:05,840 --> 00:15:08,520 Speaker 1: now to that same individual. You know, again, this is 336 00:15:08,520 --> 00:15:10,560 Speaker 1: hard to predict, but you know, take the predictions you 337 00:15:10,600 --> 00:15:12,640 Speaker 1: are seeing with a grain assault. You know when we 338 00:15:12,640 --> 00:15:14,960 Speaker 1: talk about that too with investing, you know, how turning 339 00:15:14,960 --> 00:15:17,400 Speaker 1: off market updates and you know the talking heads who 340 00:15:17,400 --> 00:15:20,160 Speaker 1: are predicting what will happen tomorrow, you know or three 341 00:15:20,200 --> 00:15:22,840 Speaker 1: months from now. By tuning out that noise, that will 342 00:15:22,840 --> 00:15:24,720 Speaker 1: allow us us to be able to stay focused. And 343 00:15:24,760 --> 00:15:26,440 Speaker 1: so try to do the same with you know, these 344 00:15:26,440 --> 00:15:30,600 Speaker 1: different COVID predictions that we're seeing run rampant right now. Yeah, 345 00:15:30,640 --> 00:15:33,240 Speaker 1: but perhaps you are one of those people who definitely 346 00:15:33,240 --> 00:15:35,560 Speaker 1: wants to change, Like you live in San Francisco or 347 00:15:35,600 --> 00:15:37,920 Speaker 1: New York and you're like, you hate it, I gotta 348 00:15:37,960 --> 00:15:39,920 Speaker 1: get out of here. And maybe you should have got 349 00:15:39,920 --> 00:15:42,520 Speaker 1: out years ago because it's so expensive. But if now 350 00:15:42,800 --> 00:15:45,520 Speaker 1: the COVID times if it's making you rethink your living situation, 351 00:15:46,000 --> 00:15:48,080 Speaker 1: perhaps from the city to the bourbs or a more 352 00:15:48,160 --> 00:15:50,840 Speaker 1: rural area, well then it is a good time to 353 00:15:50,880 --> 00:15:53,640 Speaker 1: consider it. And and that's because so many more companies 354 00:15:53,680 --> 00:15:56,560 Speaker 1: are allowing work from home. Companies like Facebook and Twitter 355 00:15:56,600 --> 00:15:59,760 Speaker 1: allowing employees to work from home permanently, right, And it'll 356 00:15:59,760 --> 00:16:02,400 Speaker 1: be interesting to see, Matt if that continues to happen. 357 00:16:02,440 --> 00:16:05,120 Speaker 1: I know more and more people, more and more friends, 358 00:16:05,360 --> 00:16:08,880 Speaker 1: who who are having this ability where they basically won't 359 00:16:08,880 --> 00:16:10,240 Speaker 1: have to go into the office, and if they do, 360 00:16:10,320 --> 00:16:11,760 Speaker 1: it's once a quarter and they can fly in for 361 00:16:11,800 --> 00:16:13,680 Speaker 1: the meeting, whatever it is. But I do like the 362 00:16:13,720 --> 00:16:16,600 Speaker 1: ability for a lot more people to essentially be able 363 00:16:16,680 --> 00:16:20,160 Speaker 1: to choose where they live because their work doesn't require 364 00:16:20,200 --> 00:16:22,360 Speaker 1: them to live anywhere in particular. But then again, if 365 00:16:22,360 --> 00:16:24,040 Speaker 1: the suburbs really end up being as hot as the 366 00:16:24,040 --> 00:16:26,120 Speaker 1: headlines say they're going to be, you might be better 367 00:16:26,160 --> 00:16:28,720 Speaker 1: off staying put in the city. You might see rent 368 00:16:28,800 --> 00:16:31,960 Speaker 1: prices decline, right. Who knows. Again, we're not really predicting 369 00:16:32,240 --> 00:16:34,360 Speaker 1: the future. We don't feel like we have any special insight. 370 00:16:34,640 --> 00:16:37,360 Speaker 1: All I know is that the trend towards moving into 371 00:16:37,400 --> 00:16:40,360 Speaker 1: cities has been happening for you know, almost a century, 372 00:16:40,600 --> 00:16:43,000 Speaker 1: and I think cities are going to continue to have 373 00:16:43,360 --> 00:16:46,240 Speaker 1: just a massive amount of relevance. Although what cities look 374 00:16:46,280 --> 00:16:47,880 Speaker 1: like and what it looks like for us to work 375 00:16:47,920 --> 00:16:50,360 Speaker 1: in and and get around and play in cities is 376 00:16:50,360 --> 00:16:53,400 Speaker 1: is definitely gonna look different in the aftermath of COVID, Right, Yeah, 377 00:16:53,400 --> 00:16:55,960 Speaker 1: I certainly we're going to see changes, specific changes in 378 00:16:55,960 --> 00:16:58,400 Speaker 1: our lives. But I think when folks are too focused 379 00:16:58,400 --> 00:17:00,440 Speaker 1: on the market or you know, these different culti changes 380 00:17:00,600 --> 00:17:02,960 Speaker 1: or or how work is going to look differently, I 381 00:17:02,960 --> 00:17:05,320 Speaker 1: think that I first wade by these constant different predictions 382 00:17:05,320 --> 00:17:07,119 Speaker 1: were kind of rudderless, kind of floating out there in 383 00:17:07,119 --> 00:17:09,720 Speaker 1: the sea. And oftentimes we do need to focus on 384 00:17:09,760 --> 00:17:11,800 Speaker 1: what it is that we want our lives to look like. 385 00:17:11,840 --> 00:17:13,960 Speaker 1: We need to look to our own personal goals, and 386 00:17:14,000 --> 00:17:15,720 Speaker 1: I think it's more important than ever for that to 387 00:17:15,800 --> 00:17:17,840 Speaker 1: be the guide that helps us to decide where we're 388 00:17:17,840 --> 00:17:19,560 Speaker 1: gonna live, the type of work that we're gonna do, 389 00:17:19,640 --> 00:17:22,720 Speaker 1: while at the same time putting less emphasis on those headlines. Yeah, Matt, 390 00:17:22,720 --> 00:17:24,040 Speaker 1: all right, that's gonna do it. For this episode, that 391 00:17:24,160 --> 00:17:27,200 Speaker 1: was a fun little conversation about the future of cities. Yeah, well, 392 00:17:27,240 --> 00:17:28,639 Speaker 1: you know have Kate and I actually shared with you 393 00:17:28,640 --> 00:17:30,440 Speaker 1: and Emily that we're going to try to convince y'all 394 00:17:30,480 --> 00:17:33,080 Speaker 1: to move with us. Hey man, I'm not leaving here. 395 00:17:33,320 --> 00:17:35,480 Speaker 1: You guys can go. But literally, as we're looking at 396 00:17:35,480 --> 00:17:37,800 Speaker 1: different cities, we're like, Okay, the biggest problem is that 397 00:17:37,800 --> 00:17:40,000 Speaker 1: we don't have any friends here, but our best friends 398 00:17:40,000 --> 00:17:42,240 Speaker 1: moved with us. I think it could make it worthwhile. 399 00:17:42,560 --> 00:17:45,160 Speaker 1: You know, I've thought that, you know Mr money Mustach 400 00:17:45,160 --> 00:17:47,280 Speaker 1: who who writes a lot about money, He has talked 401 00:17:47,280 --> 00:17:51,439 Speaker 1: about creating like a little utopian city of people who 402 00:17:51,520 --> 00:17:54,439 Speaker 1: are financially responsible. Okay, we started thinking down that direction 403 00:17:54,440 --> 00:17:55,960 Speaker 1: a little bit, and we thought, I think we could 404 00:17:55,960 --> 00:17:58,320 Speaker 1: seerious ills being happy out here, convinced a few others 405 00:17:58,320 --> 00:18:00,440 Speaker 1: to move out there, you know, and not viously the 406 00:18:00,480 --> 00:18:03,119 Speaker 1: friend folks who are already there in that community. Right, 407 00:18:03,160 --> 00:18:05,760 Speaker 1: We're not trying to like transplant our life from the 408 00:18:05,760 --> 00:18:08,960 Speaker 1: city out there to the country, but to also engage 409 00:18:09,040 --> 00:18:11,480 Speaker 1: with a current town that's thriving. Yeah, but that'd be 410 00:18:11,480 --> 00:18:13,960 Speaker 1: the hardest thing for me about moving is leaving all 411 00:18:13,960 --> 00:18:16,200 Speaker 1: my friends behind. So many good people in our neighborhood. 412 00:18:16,680 --> 00:18:18,199 Speaker 1: But yeah, the future of cities is going to be 413 00:18:18,200 --> 00:18:21,040 Speaker 1: interesting to see what happens. And you know, we currently 414 00:18:21,080 --> 00:18:22,880 Speaker 1: live in Atlanta, hope to live in Atlanta a long time. 415 00:18:23,040 --> 00:18:25,760 Speaker 1: I think the future for this city is definitely bright. Yeah, man, 416 00:18:25,760 --> 00:18:28,119 Speaker 1: I couldn't agree more. So that's gonna be at this 417 00:18:28,200 --> 00:18:30,480 Speaker 1: time for real. Uh. You can find our show notes 418 00:18:30,560 --> 00:18:32,920 Speaker 1: up on our website at how some money dot com. Yeah, 419 00:18:33,000 --> 00:18:35,480 Speaker 1: and if you haven't yet joined our Facebook group, go 420 00:18:35,560 --> 00:18:38,320 Speaker 1: join it. There are so many people helping each other out. 421 00:18:38,400 --> 00:18:41,119 Speaker 1: It's a wonderful place to be. If you have money questions, 422 00:18:41,160 --> 00:18:43,879 Speaker 1: obviously you can submit them for a future ask how 423 00:18:43,920 --> 00:18:46,320 Speaker 1: the Money episode on our website also, but if you 424 00:18:46,359 --> 00:18:48,480 Speaker 1: want to join a group of fellow money nerds who 425 00:18:48,480 --> 00:18:50,920 Speaker 1: are constantly helping each other out, then definitely make sure 426 00:18:50,960 --> 00:18:52,639 Speaker 1: to join that group to search how the Money in 427 00:18:52,640 --> 00:18:55,560 Speaker 1: the search bar. Alright, buddy, until next time, Best Friends Out, 428 00:18:55,640 --> 00:19:08,119 Speaker 1: Best Friends Out.