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Speaker 1: Welcome to Hod of Money. I'm Joel, I'm Matt. Today

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Speaker 1: we're listening threw you off, I got you off your game.

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Speaker 1: We're answering your listener questions.

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Speaker 2: Oh man, I got you. Honestly, it reminds me of

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Speaker 2: back in the day when we used to quote unquote

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Speaker 2: with voice for cast Box.

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Speaker 1: Oh no cast box or no cats Pocket.

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Speaker 2: That's they are still a solid app out there, so

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Speaker 2: maybe we should start pointing folks to, especially the old

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Speaker 2: folks at.

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Speaker 1: Cast with Google podcast going the way to the show one.

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Speaker 1: If you're looking for a new app, that's one to

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Speaker 1: try out.

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Speaker 2: I'm surprised that we were kind of just talking about

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Speaker 2: this recently, about some of the different budgeting.

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Speaker 1: Apps that are out there. But it's a surprise that.

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Speaker 2: More of the different smaller platforms I haven't stepped up

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Speaker 2: to the plate and really ramped up their marketing efforts

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Speaker 2: to make sure folks are finding their way over to them.

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Speaker 1: There was a huge percentage of people because Mint was

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Speaker 1: free and because it was the first essentially that's what

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Speaker 1: we're referring to. So many people we're with Mint and now,

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Speaker 1: like all these other budgeting tools that could I think

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Speaker 1: feel the void like not many of them are stepping

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Speaker 1: up to the plate to put their names in that.

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Speaker 1: We've tried to do our best to tell people some

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Speaker 1: great out there for sure.

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Speaker 2: Yeah, but this is a listener question Monday, and a

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Speaker 2: listener he's looking to financially prepare for a wedding. He

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Speaker 2: wants to see how he can save but still have

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Speaker 2: a nice wedding.

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Speaker 1: Uh.

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Speaker 2: Another listener she might be looking for a loophole to

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Speaker 2: earn the most in interest with her savings account. So

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Speaker 2: I'm looking forward to that one as well. As another

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Speaker 2: listener has the Unford. I mean, it's great to have teenagers,

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Speaker 2: but to have to pay for the insurance that you're

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Speaker 2: required to have once they start driving, that's a cost

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Speaker 2: of fortunes. So we're going to talk about that a

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Speaker 2: little bit later on as well.

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Speaker 1: So I'm going to disown my children before they reach

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Speaker 1: that age at age fifteen. Yeah, yeah, that's a good year.

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Speaker 1: Like sorry, you're you're going to live elsewhere? Give you

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Speaker 1: up for adoption. To that point, before we get to

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Speaker 1: all the great questions, I just wanted to mention there

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Speaker 1: was this, uh listener Bill had asked he had reached

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Speaker 1: out to us via email and he said, Okay, cool,

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Speaker 1: you guys like scoffed at the idea of three months

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Speaker 1: worth of your income being what people are supposed to

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Speaker 1: spend on an engagement ring where they're looking to get

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Speaker 1: married to the person they love. So, how much is

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Speaker 1: it supposed to be? Guys and so? And he was like,

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Speaker 1: would you mind actually kept maybe like polling your audience

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Speaker 1: to see what they think. So I posted in the

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Speaker 1: how to Money Facebook group, got a ridiculous number of

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Speaker 1: responses and almost everybody, by the way, a lot of

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Speaker 1: women responded to that, they also thought it was silly.

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Speaker 1: Clearly this is like built around what to Beers. I

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Speaker 1: think de Beers was the first company that kind of

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Speaker 1: put this out there, and at one point I think

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Speaker 1: they tried to change it to six months worth of

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Speaker 1: yeah and nobody. People weren't having it. So they're like,

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Speaker 1: oh no, no, we just met three months and just joking.

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Speaker 1: But most how to Money listeners, almost everybody in there

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Speaker 1: were of the belief that that's way too much money

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Speaker 1: to spend on an engagement ring. And one thing that

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Speaker 1: I think the thing I learned the most in that thread,

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Speaker 1: something they didn't know was that there's apparently a diamond

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Speaker 1: equivalent sort of thing, and that so that not even

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Speaker 1: the lab grown diamonds. But there's another gem called moist

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Speaker 1: and nite and oh.

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Speaker 2: Interesting, never heard of it. Not cz not Cubic Zirconia.

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Speaker 1: Not Cubic zirconia. So this is a different thing that

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Speaker 1: a lot of people are grabbed. It's a literal stone

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Speaker 1: that you pull out of the earth. No, I think

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Speaker 1: it might be chemically engineered. Oh okay, so it's a

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Speaker 1: lab grown I think I'm an equivalent. Perhaps you're asking me,

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Speaker 1: I don't know. I yeah, that that's I should probably

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Speaker 1: have looked more into it, but I was.

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Speaker 2: I mean, I guess either way, it doesn't if it

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Speaker 2: looks good. So do you think that perceptions are like,

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Speaker 2: generally speaking, are changing from spending a ton on an

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Speaker 2: engagement ring to where we are today, where it feels

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Speaker 2: like because here's the thing. You're pulling a bunch of

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Speaker 2: how money listeners and they're generally speaking fairly frugal. And

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Speaker 2: I will say me personally, when I was in my

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Speaker 2: early twenties, I kind of fell in fell into the trap.

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Speaker 1: Like there's a whole lot of pressure, there's like there's.

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Speaker 2: A weightiness to the engagement ring, at least there was

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Speaker 2: in my mind, and so like I felt like I

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Speaker 2: was doing.

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Speaker 1: Something naughty by going like month and a half my income.

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Speaker 2: I think, well, it has a lot to do with

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Speaker 2: the fact that I was making so little money. I

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Speaker 2: didn't tell my wife though, okay, but I did end

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Speaker 2: up spinning like I don't know the exact amount off

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Speaker 2: the top of my head, but it was closer to

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Speaker 2: three months. And looking back now and this is before,

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Speaker 2: I'll you know, I was still frugal, but I don't know. Again,

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Speaker 2: there was this pressure and it seemed like there was

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Speaker 2: so much sort of riding on the engagement ring that

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Speaker 2: I feel like has changed.

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Speaker 1: Over the years.

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Speaker 2: But I do we talk about financial regrets here on

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Speaker 2: the show, and I've never thought about the engagement ring before,

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Speaker 2: but in my mind, and I think Kate might even

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Speaker 2: agree to this to I might say, I mean, she

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Speaker 2: still loves the ring, but I would not be surprised

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Speaker 2: if she said, yeah, it probably wasn't necessary, even though

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Speaker 2: at the time you do feel like it's necessary.

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Speaker 1: For sure. They always say so thought that counts, and

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Speaker 1: I think there's a lot of truth to that that,

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Speaker 1: Like if you try to get your your significant other

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Speaker 1: something that they will love and cherish for a long

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Speaker 1: time to come. It doesn't have to break the bank

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Speaker 1: to do that. And so by the way, moist to

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Speaker 1: night say naturally occurring silicone carbide. And so it is

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Speaker 1: a stone that you pull out of the ground. It's

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Speaker 1: a rare mineral discovered by French. I missed Henry Moisson.

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Speaker 1: I get the name of Moissan.

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Speaker 2: Yeah, so Moissan. So yeah, so that's Kryston Nile's way off.

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Speaker 1: But that's I guess that's a good alternative if you

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Speaker 1: want something it looks like a diamond, but you can

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Speaker 1: get I guess a much bigger one for a bunch

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Speaker 1: of smaller price.

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Speaker 2: Okay, so here is I've got a question for you.

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Speaker 2: This is something else I don't think I've ever talked

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Speaker 2: about on the show. Have we talked about how we

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Speaker 2: have insurance on Kate's engagement ring?

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Speaker 1: Oh? Really?

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Speaker 3: No?

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Speaker 2: Okay, all right, well yeah, let's talk about it real quick.

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Speaker 2: Because at the time, again, this was such a chunk

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Speaker 2: of my income as a twenty three year old or

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Speaker 2: however old I was when I got married, that I

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Speaker 2: couldn't replace that thing. And so it made sense, and

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Speaker 2: I got a quote and it was fairly affordable, probably

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Speaker 2: like fifty sixty bucks a year a year annually, literally

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Speaker 2: sixty dollars a year, and I think that's it made

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Speaker 2: It made a ton of sense. The kind of rings

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Speaker 2: were by one hundred percent exactly and good Like long

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Speaker 2: story short, it's a good thing that we actually got

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Speaker 2: that policy because Kate, she injured herself. Her finger was swelling.

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Speaker 2: She was out in the hospital or urgent care, and

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Speaker 2: they had to the ring off, and then the process

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Speaker 2: of prying the ring off her finger, it broke. It's

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Speaker 2: like he was bending it, bending it, bending it, and then.

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Speaker 1: It literally broke.

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Speaker 2: And I was there and I felt terrible for Kate

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Speaker 2: because she's in pain, but then also for myself because

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Speaker 2: we the engager ring just broke. There's a part of

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Speaker 2: me that also feels terrible for the doctor because he

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Speaker 2: didn't want to do that right, that wasn't his goal.

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Speaker 1: But they of course replaced that ring, and so probably

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Speaker 1: more than you spent typically Oh I.

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Speaker 2: Mean, I mean they replaced it. It was straight directly

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Speaker 2: with to the jeweler and so like it was a

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Speaker 2: custom ring, so the guy had to remake. He had

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Speaker 2: to like design it and cast it and do all

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Speaker 2: this thing.

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Speaker 1: Wow.

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Speaker 2: And so obviously at the time I would have said,

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Speaker 2: oh my gosh, best financial decision I've ever made. But

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Speaker 2: we still have that policy because it's still sixty dollars

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Speaker 2: every year.

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Speaker 1: It's so cheap.

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Speaker 2: Like literally, we've very really spent one thousand dollars I

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Speaker 2: guess over the years in premiums for it. And so

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Speaker 2: I mean, granted, we could easily replace that now, but

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Speaker 2: there's a part of me where I'm just like, sixty

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Speaker 2: dollars annually that's I mean, it's hardly nothing. So because

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Speaker 2: of that, I've kept it around. So yeah, No, it's

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Speaker 2: not like car insurance where over the years you're basically

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Speaker 2: it's the cost of a vehicle where you have to

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Speaker 2: replace it yourself. Right, just be in a few years.

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Speaker 2: But if you if you also have collision, yeah on

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Speaker 2: there anyway, just don't let out.

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Speaker 1: Yeah. I just think it's an interesting discussion. And thanks

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Speaker 1: to Bill for opening that can of worms. And it

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Speaker 1: was just good to see everybody way in they had

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Speaker 1: the money Facebook read. Yeah, a lot of cool people

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Speaker 1: in there. So if you're not in that group, please

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Speaker 1: do consider joining and moist and night. Who knew. I

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Speaker 1: didn't know. I've never heard of it. Always learning from

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Speaker 1: the how of Money community.

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Speaker 2: I feel like we kind of even jump the gun

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Speaker 2: a little bit when it comes to talking about weddings,

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Speaker 2: because we do have a have a wedding question here

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Speaker 2: later on, and we're not even going to talk about rings,

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Speaker 2: right unless you want to now we get that in

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Speaker 2: two seconds.

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Speaker 1: But one other thing. A lot of people said that

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Speaker 1: actually they think that maybe there's an inverse relationship between

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Speaker 1: what you spend on a wedding ring and how long

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Speaker 1: the marriage lasts. So it's almost like the less you spend,

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Speaker 1: the more likely your marriage is to thrive. And I

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Speaker 1: bet it's a U curve. Yeah. If you're like, no,

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Speaker 1: maybe piece of string that's all it takes. Yeah, then

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Speaker 1: maybe they're.

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Speaker 2: Like, I'm guessing maybe those marriages didn't work.

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Speaker 1: You're cheap that I'm gonna last now. Yeah.

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Speaker 2: No, but I think you're right, Like, if it's seventeen

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Speaker 2: years over here for us, this year went two to

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Speaker 2: three months.

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Speaker 1: Congratulations? Thanks? Yeah, all right, well good just food for thought.

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Speaker 1: So all right, what's mentioned the beer we're having on

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Speaker 1: this episode? This is a Keller Pills it's by High

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Speaker 1: Wire Brewing out of Asheville, North Carolina. We'll give our

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Speaker 1: thoughts on this one at the end of the episode,

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Speaker 1: but let's get to your listener questions. If you have

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Speaker 1: a money question, we'd love to take it on an

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Speaker 1: upcoming episode. Just got a hot tomoney dot com slash ask,

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Speaker 1: or just record a voice memo on your phone and

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Speaker 1: email it to us. This first one comes from a

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Speaker 1: listener who is planning on getting married but doesn't want

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Speaker 1: to spend an arm and a leg on multiple weddings.

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Speaker 4: Hey guys, my name is Victor from Tarzana, California. I

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Speaker 4: had a quick question for you all. I recently got

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Speaker 4: engaged and we're going to have a small ish wedding

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Speaker 4: here in the States in a couple of months and

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Speaker 4: then save up for a bigger wedding in the Philippine

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Speaker 4: in two to three years so that more of my

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Speaker 4: fiance's family can show up and because it's quite frankly

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Speaker 4: a little cheaper to do it over there. So my

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Speaker 4: big question to you guys is what can we do

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Speaker 4: to ensure that we reach our goal so that we

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Speaker 4: have a nice wedding, Like, do you have any tips

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Speaker 4: or strategies that we should use. And then my second

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Speaker 4: question is we see a lot of tiktoks telling us

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Speaker 4: that we should have one credit card that we should

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Speaker 4: put all of our purchases on so that then we

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Speaker 4: can redeem points for travel and things like that, maybe

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Speaker 4: something for a honeymoon. What do you think about that?

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Speaker 4: And if you like that idea, which credit cards should

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Speaker 4: we use? And for reference in that, I currently have

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Speaker 4: the Built MasterCard for rent and the American Express Blue

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Speaker 4: Cash Preferred Card for groceries, as personally recommended by Joe Larsgard. Thanks, guys,

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Speaker 4: really appreciate it.

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Speaker 2: Personal recommendation. This is some one on one coaching that y'all.

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Speaker 1: Yeah, it's very expensive one on one coaching that you

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Speaker 1: can buy for two thousand dollars an hour if I'm

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Speaker 1: just kidding.

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Speaker 2: No.

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Speaker 1: Victor and I used to work together, and so Victor,

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Speaker 1: thanks for submitting this question. Congrats on getting engaged. And

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Speaker 1: he mentioned a couple of credit cards that he's currently using.

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Speaker 1: He's using some good ones that we've talked about on

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Speaker 1: the show before. Matt, the Built card is the best

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Speaker 1: card that we know of for paying for rent.

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Speaker 2: I think it's like the one of the only cards

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Speaker 2: that you can use to pay rent because of the

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Speaker 2: platform that they've created.

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Speaker 1: I think it's the only one that I know of

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Speaker 1: at least, so, which is cool. So you can earn

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Speaker 1: rewards for paying rent. And then he mentioned the blue

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Speaker 1: Cash preferred that one rocks for groceries. Of course six percent,

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Speaker 1: no card paying better than that. So yeah, Victor already

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Speaker 1: knows what he's doing. He's been listening. They's been listening

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Speaker 1: every time. But I also wanted to say that I

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Speaker 1: like that Victor is doing two weddings. I kind of

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Speaker 1: like taking this route, and he's kind of taken the

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Speaker 1: cheaper route essentially, but he's also getting everyone involved in

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Speaker 1: that day or even having multiple days, especially since his

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Speaker 1: wife is from another country, and makes this all about people,

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Speaker 1: not about having the most fanciful wedding a scientist event. Yeah,

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Speaker 1: so I think that's a wise decision. Yeah, totally.

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Speaker 2: So I'll kick things off by talking about what Victor

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Speaker 2: you call a quote unquote nice wedding because I think that, Yes, yeah,

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Speaker 2: I think it's so important for you and your fiance

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Speaker 2: to talk this through because I think the problem and

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Speaker 2: the thing that could end up happening is that you

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Speaker 2: end up spending tons and tons of money on something

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Speaker 2: that you don't necessarily value. And so I think what's

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Speaker 2: going to be so important is before y'all do anything

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Speaker 2: is to I mean, you've already obviously talked this through

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Speaker 2: some in the ability for y'all to have multiple, you know,

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Speaker 2: a wedding here in the States and one abroad. So again, yeah,

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Speaker 2: y'all have already started the conversation, but continuing to talk

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Speaker 2: about even the one here in the States, like what

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Speaker 2: it is that you want that to look like obviously

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Speaker 2: is going to be smaller. It's probably going to be

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Speaker 2: for your close friends, victor maybe for your family if

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Speaker 2: their local. But to think through the aspects and the

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Speaker 2: things that you're drawn to, right, Like, so it makes

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Speaker 2: me think about dancing. If you are into that, all right, well,

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Speaker 2: maybe it's going to make sense for you to hire

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Speaker 2: like a great DJ or a great band. Maybe you

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Speaker 2: don't like dancing at all, but you're really into food. Like,

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Speaker 2: if you are a foodie, you might end up booking

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Speaker 2: a quote unquote reception a wedding party at a really

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Speaker 2: nice restaurant, or not even a really nice restaurant, but

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Speaker 2: maybe one where you know, the folks and they have

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Speaker 2: awesome food, because that is what's important to you. I

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Speaker 2: don't know, spend a lot of time thinking through what

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Speaker 2: you envisioned the day to look like. And I guess

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Speaker 2: one of the reasons that I'm leading with this is

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Speaker 2: because you mentioned something about TikTok when it comes to

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Speaker 2: credit cards, and we'll get to the credit card aspect

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Speaker 2: here in a minute. But you want to make sure

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Speaker 2: that you're doing what it is that you care about,

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Speaker 2: not what everybody else is doing out there. And I

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Speaker 2: think something like TikTok can be helpful when it comes

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Speaker 2: to getting new ideas and interesting ways to save money

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Speaker 2: and just creative solutions. But simultaneously, you don't want to

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Speaker 2: get sucked into that and start thinking, oh, well, we've

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Speaker 2: got to do it like this because man, this is

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Speaker 2: what everyone's doing, or man, I just discovered this other

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Speaker 2: thing that we could do as well it only costs

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Speaker 2: us an extra fifteen twenty five hundred dollars, Like, maybe

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Speaker 2: we should do that. I think that's also really important

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Speaker 2: to make sure that you are eliminating some of the

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Speaker 2: things from your our weding budget that aren't important to you.

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Speaker 1: I think it can be a slippery slope.

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Speaker 2: Right.

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Speaker 1: Yeah, there's more and more ideas popping in your head,

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Speaker 1: and all those things cost money. But hopefully there are

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Speaker 1: ways that you can eliminate some of the more expensive things.

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Speaker 1: Like one of the things we did, Matt back when

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Speaker 1: we got married, this will be fourteen years this year

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Speaker 1: for us. Well, instead of real flowers, we did paper

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Speaker 1: flowers and we made them ourselves and that was a

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Speaker 1: big cost savings and they look kind of cool, a

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Speaker 1: little crafty, right element to this centerpieces. These are all

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Speaker 1: sorts of things that maybe unless you're following some of

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Speaker 1: these creative people, creative frugal people, you might not know

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Speaker 1: that that's even an option. You might not even thought

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Speaker 1: about that. So I do like that, but be careful

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Speaker 1: who you're following, and then start to create a wedding

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Speaker 1: sinking fund victory. You said you've got two or three

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Speaker 1: years before the big day before you're going to celebrate

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Speaker 1: in the Philippines. This gives you a lot of time

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Speaker 1: to save and plan, which is awesome. Kind of makes

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Speaker 1: you think about the rivian that I'm potentially buying, Matt,

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Speaker 1: we'll see, but the fact that I have two years

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Speaker 1: to save up because it doesn't come out n till

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Speaker 1: twenty twenty six, makes it like a lot an easier

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Speaker 1: pill to swallow, set of picking up pennies today. That's right,

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Speaker 1: that's right, that's right. And so I would just say, Victor,

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Speaker 1: get a good idea of what you want to spend

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Speaker 1: and if that lines up with reality by checking prices locally,

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Speaker 1: specifically in the Philippines, and then set that specific savings goal.

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Speaker 1: So if you're like, I'm pretty sure twelve thousand will

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Speaker 1: be enough factor in inflation, by the way, and we're

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Speaker 1: three years away, well, that means you need to save

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Speaker 1: something like four thousand dollars a year or three hundred

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Speaker 1: and thirty three dollars a month. And when you know

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Speaker 1: that specific goal, this specific amount you need to save up,

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Speaker 1: funneling that exact amount into a high held savings account

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Speaker 1: is going to help you treat those funds as sacred

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Speaker 1: and special. It's going to help you ensure that you

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Speaker 1: have the cash to pay for everything when you need to.

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Speaker 1: But it all starts with kind of the end goal

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Speaker 1: in mind and then dialing it back to Okay, what

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Speaker 1: does that mean I need to do in the here

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Speaker 1: and now to meet that goal? Years down the line.

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Speaker 2: That's right, man, It's all about trade offs and victor.

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Speaker 2: Especially in some of those earlier years, every dollar does matter,

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Speaker 2: and I think the ability for y'all to keep your

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Speaker 2: your lifestyle creep to a minimum is going to be

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Speaker 2: really important for you to reach this goal of having

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Speaker 2: a quote unquote nice wedding, the kind of wedding that's

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Speaker 2: going to be important to y'all. But kind of lean

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Speaker 2: into the young married years because I think they can

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Speaker 2: be so great. They can be tighter from a financial standpoint,

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Speaker 2: but lean into the scrappyiness of it, right, Like, be creative,

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Speaker 2: find ways to enjoy each other, find ways to enjoy

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Speaker 2: your newfound bliss together that don't involve big spending. But

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Speaker 2: then over time, as you gain more margin, as you

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Speaker 2: gain more financial freedom, then you can loosen the purse strings.

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Speaker 2: I think those early savings habits, they will give you

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Speaker 2: more options in the coming years. And that's what we

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Speaker 2: want to emphasize here, those habits, and hopefully we're not

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Speaker 2: like discouraging you, but over time, like try to balance

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Speaker 2: your saving and investing because like, yes, you do want

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Speaker 2: to save for the wedding. This is a great near

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Speaker 2: term goal of yours, but we want you to also

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Speaker 2: work on your emergency fund if you don't have one

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Speaker 2: of those, for instance, right, we want you to be

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Speaker 2: funneling money into retirement accounts as well, And it's possible

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Speaker 2: to let the sooner financial need or just want goal

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Speaker 2: of yours here with this, you know the upcoming weddings,

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Speaker 2: but those goals can impact your ability to prioritize the

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Speaker 2: long term, and we believe that you can and should

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Speaker 2: be working on both simultaneously. At the very least getting

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Speaker 2: the full match, for instance, with a four one K

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Speaker 2: with via an employer, if you have access to one

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Speaker 2: of those, that's something that you are most of it

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Speaker 2: definitely going to do. Alongside is saving up for this

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Speaker 2: big I keep saying big wedding. It's a big goal

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Speaker 2: of yours, but not necessarily going to be a big web.

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Speaker 1: I'm sure it's going to be less than what the

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Speaker 1: average person spends on a wedding, which I don't know.

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Speaker 1: When you look at the numbers from the not it's

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Speaker 1: somewhere in the thirty thousand dollars range. I want to say,

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Speaker 1: upper twenties, low thirty something like that. It's really expensive,

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Speaker 1: like most people's weddings and if you don't have family

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Speaker 1: help to cover a portion of the cost, if you're

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Speaker 1: saving up for that all on your own, it can

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Speaker 1: be daunting. And you have to talk about the trade

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Speaker 1: offs the other priorities that you have as a couple

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Speaker 1: and dialing back the wedding so you can enjoy other things.

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Speaker 1: Maybe part of that's travel, Maybe that's just making sure

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Speaker 1: you don't upend your investing goals, and that'll help you

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Speaker 1: kind of thing, kind of come to a conclusion about

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Speaker 1: how much you can actually spend on the wedding without

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Speaker 1: going overboard totally. Matt, you mentioned habits, and I think

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Speaker 1: that's like the pattern of how you treat your money

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Speaker 1: that you establish now it is probably going to continue

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Speaker 1: for a long time to come. So these early years together,

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Speaker 1: as you're forming the habit, like you're putting some stress

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Speaker 1: on that relationship in a good way to figure out

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Speaker 1: what sort of financial habits you're going to have as

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Speaker 1: a couple.

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Speaker 2: Hey, you're laying the framework for how it is that

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Speaker 2: you'll handle your money. Like, I think that's why this

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Speaker 2: is such a sort of clutch period of time, because

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Speaker 2: like it is important, I think to set dollars aside

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Speaker 2: to invest, but like there's not a whole lot of

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Speaker 2: compounding that takes.

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Speaker 1: Place in the first few years.

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Speaker 2: Like it's good to not leave money on the table,

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Speaker 2: especially if there's an employee that's got to match. But

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Speaker 2: more than anything, it's the behavior, it's the patterns, it's

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Speaker 2: the expectations that you're setting together.

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Speaker 1: As a couple. Yeah, agreed. I think the habit formation

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Speaker 1: is so important because you're kind of starting new habits together.

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Speaker 1: You might have had your old habits and then it's

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Speaker 1: just kind of like maybe if you had your old traditions, well,

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Speaker 1: now you're combining your life with somebody else, and you

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Speaker 1: guys are going to form new traditions together. It's the

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Speaker 1: same thing with how you handle your money. And so

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Speaker 1: those early years are really important. How you talk about

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Speaker 1: those things, how you come to conclusions, and you know

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Speaker 1: what sorts of ground rules you establish at the get go.

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Speaker 2: Yeah, yeah, who who does Victor two point zero look like? Right?

436
00:18:12,720 --> 00:18:15,800
Speaker 1: Yeah? Married Victor? Right? Yeah, exactly. And I just want

437
00:18:15,840 --> 00:18:17,880
Speaker 1: to recognize too, the fact that that Victor and other

438
00:18:17,880 --> 00:18:20,160
Speaker 1: people who were kind of in his position, they might

439
00:18:20,240 --> 00:18:23,040
Speaker 1: listen to this show and at times they might get discouraged.

440
00:18:23,320 --> 00:18:25,600
Speaker 1: Like some of the listeners who reach out with questions,

441
00:18:25,640 --> 00:18:28,560
Speaker 1: they might be further ahead of you, further along the path,

442
00:18:28,680 --> 00:18:31,840
Speaker 1: closer towards financial independence. They seem to like be doing

443
00:18:31,880 --> 00:18:33,840
Speaker 1: it all, Like how are they maxing out all like

444
00:18:33,920 --> 00:18:37,560
Speaker 1: three different retirement accounts physically possible. I would just say,

445
00:18:37,560 --> 00:18:39,560
Speaker 1: don't let those stories get you down, like let them

446
00:18:39,600 --> 00:18:42,880
Speaker 1: inspire you instead, because like Matt, the two of us,

447
00:18:42,920 --> 00:18:46,199
Speaker 1: like we were, we were in Victor shoes back in

448
00:18:46,240 --> 00:18:47,600
Speaker 1: the day. We didn't come out of the womb with

449
00:18:47,640 --> 00:18:49,919
Speaker 1: fully funded roth iras or anything like that. And so

450
00:18:50,240 --> 00:18:54,720
Speaker 1: building wealth is a slow activity, doing the right things consistently.

451
00:18:55,160 --> 00:18:58,240
Speaker 1: That is what leads to progress. And it's just hard

452
00:18:58,280 --> 00:19:00,800
Speaker 1: to spot really for many years until I look back

453
00:19:00,800 --> 00:19:02,920
Speaker 1: and I'm like, oh, snap, like that really does work.

454
00:19:02,960 --> 00:19:05,040
Speaker 1: It really makes a difference. But those first few years,

455
00:19:05,160 --> 00:19:07,000
Speaker 1: it's hard to see movement. It's hard to see progress,

456
00:19:07,040 --> 00:19:09,600
Speaker 1: even as like you're doing the right thing and putting

457
00:19:09,600 --> 00:19:11,040
Speaker 1: one foot in front of the other. That's true.

458
00:19:11,119 --> 00:19:13,640
Speaker 2: Yeah, And so Victor on the credit card front, all right,

459
00:19:13,720 --> 00:19:16,360
Speaker 2: you're hearing from all the folks there on TikTok telling

460
00:19:16,359 --> 00:19:16,800
Speaker 2: you what to do.

461
00:19:16,840 --> 00:19:17,080
Speaker 1: There.

462
00:19:17,600 --> 00:19:20,600
Speaker 2: I like the idea of putting wedding charges on the card,

463
00:19:20,680 --> 00:19:23,680
Speaker 2: but I'm not totally sure about the one card thing.

464
00:19:23,800 --> 00:19:27,320
Speaker 2: So of course, if you are putting charges wedding expenses

465
00:19:27,359 --> 00:19:28,520
Speaker 2: on a card, you want to make sure that you're

466
00:19:28,520 --> 00:19:31,200
Speaker 2: paying that balance off on time and in full every

467
00:19:31,200 --> 00:19:33,840
Speaker 2: single month. Oh actually, one other thing too, It might

468
00:19:33,840 --> 00:19:37,000
Speaker 2: be worth preemptively seeing if you can raise your limit

469
00:19:37,320 --> 00:19:40,120
Speaker 2: as you are going to have maybe outsize expenses on

470
00:19:40,160 --> 00:19:43,760
Speaker 2: your card. That way you aren't utilizing a higher percentage

471
00:19:43,800 --> 00:19:46,720
Speaker 2: of that overall balance or overall limit that you're allowed.

472
00:19:46,840 --> 00:19:48,560
Speaker 2: But don't let that be an excuse for you to

473
00:19:48,720 --> 00:19:51,879
Speaker 2: spend all nearly Willy Willy, nilly.

474
00:19:51,200 --> 00:19:51,879
Speaker 1: I got backwards.

475
00:19:52,400 --> 00:19:54,960
Speaker 2: But our credit card tool, I want to mention that

476
00:19:54,960 --> 00:19:56,679
Speaker 2: because I think that could be helpful for you to

477
00:19:56,720 --> 00:19:59,119
Speaker 2: go in there kind of hone in on some of

478
00:19:59,160 --> 00:20:02,120
Speaker 2: the different specs, some of the different rewards, maybe even

479
00:20:02,200 --> 00:20:06,520
Speaker 2: different airlines that you want to prioritize. But the couple

480
00:20:06,560 --> 00:20:09,000
Speaker 2: that come to mind the venture X card, the Chase

481
00:20:09,000 --> 00:20:12,959
Speaker 2: Cefire preferred. These cards are great travel cards, like all

482
00:20:13,000 --> 00:20:15,000
Speaker 2: around travel cards, and they might even help y'all get

483
00:20:15,080 --> 00:20:18,120
Speaker 2: the flights that you're looking for to the Philippines.

484
00:20:18,240 --> 00:20:20,560
Speaker 1: For free, especially since you have time, right, Yes, you've

485
00:20:20,600 --> 00:20:22,960
Speaker 1: got years on your side to banks, oh my gosh. Yeah.

486
00:20:23,000 --> 00:20:25,199
Speaker 2: But as far as like putting all the charges on

487
00:20:25,200 --> 00:20:27,280
Speaker 2: one card, I think maybe one of the reasons that

488
00:20:27,040 --> 00:20:30,439
Speaker 2: that is recommended is because it's just easy. It's just

489
00:20:30,480 --> 00:20:33,040
Speaker 2: an easy way to manage all of your expenses. The

490
00:20:33,119 --> 00:20:36,520
Speaker 2: other person knows what the other is spending. You're keeping

491
00:20:36,600 --> 00:20:39,440
Speaker 2: track of those expenses. It's a shared language. It's a

492
00:20:39,480 --> 00:20:41,440
Speaker 2: way for y'all to communicate and talk about you both

493
00:20:41,480 --> 00:20:43,600
Speaker 2: have the log And perhaps it just depends on how

494
00:20:43,600 --> 00:20:46,320
Speaker 2: advanced you are though when it comes to credit card optimization,

495
00:20:46,320 --> 00:20:49,639
Speaker 2: because let's imagine you are someone who's been taking advantage

496
00:20:49,720 --> 00:20:52,600
Speaker 2: and maximizing the benefits you receive from your.

497
00:20:52,480 --> 00:20:54,080
Speaker 1: Credit cards for years.

498
00:20:54,640 --> 00:20:57,719
Speaker 2: Well, you definitely don't need to be only looking at

499
00:20:57,720 --> 00:20:59,399
Speaker 2: a single card. You might already have like three or

500
00:20:59,400 --> 00:21:02,359
Speaker 2: four or five car cards. If that's the case, then

501
00:21:02,400 --> 00:21:04,639
Speaker 2: this might be an opportunity for you to go big.

502
00:21:04,840 --> 00:21:08,320
Speaker 2: Like maybe you're looking at like the American Express Platinum

503
00:21:08,359 --> 00:21:10,720
Speaker 2: card because you know some of the travel benefits that

504
00:21:10,720 --> 00:21:14,600
Speaker 2: you're that you're bound to receive, and so I wouldn't

505
00:21:14,640 --> 00:21:18,240
Speaker 2: necessarily let the all right, we're gonna keep things simple.

506
00:21:18,560 --> 00:21:20,680
Speaker 2: You gotta put all your your charges on one card.

507
00:21:20,760 --> 00:21:24,240
Speaker 2: I think that could work for a couple who's maybe

508
00:21:24,320 --> 00:21:25,240
Speaker 2: not done this before.

509
00:21:26,040 --> 00:21:27,600
Speaker 1: But otherwise I think there are ways for you.

510
00:21:27,560 --> 00:21:30,800
Speaker 2: To maybe take a little more of an optimized approach

511
00:21:30,840 --> 00:21:32,119
Speaker 2: when it comes to your card spending.

512
00:21:32,200 --> 00:21:34,400
Speaker 1: Yeah, the reason not to do just a single card

513
00:21:34,440 --> 00:21:36,000
Speaker 1: and to open up a card in each of your

514
00:21:36,080 --> 00:21:40,040
Speaker 1: names would be because then you have different spending bonuses

515
00:21:40,119 --> 00:21:43,240
Speaker 1: that are available to you, and to x the bonus. Yeah,

516
00:21:43,240 --> 00:21:45,640
Speaker 1: lots of times there's a huge slew of either cash

517
00:21:45,760 --> 00:21:48,840
Speaker 1: back or or travel rewards that you're gonna get with

518
00:21:49,240 --> 00:21:50,760
Speaker 1: when you open a new credit card, And so if

519
00:21:50,800 --> 00:21:53,280
Speaker 1: you open one together, I guess you're limited to one

520
00:21:53,560 --> 00:21:57,119
Speaker 1: x the rewards if you open separate cards. Even if

521
00:21:57,119 --> 00:21:59,719
Speaker 1: you open the same card separately, you get to two

522
00:21:59,760 --> 00:22:01,679
Speaker 1: extra rewards when you meet the spending threshold. And so

523
00:22:01,880 --> 00:22:03,920
Speaker 1: that can be a reason I would say to open

524
00:22:04,000 --> 00:22:07,160
Speaker 1: up multiple cards absolutely one each. And let's say, for instance,

525
00:22:07,240 --> 00:22:11,320
Speaker 1: like the best affairs to the Philippines from Los Angeles

526
00:22:11,560 --> 00:22:15,280
Speaker 1: are on delta. I'm just making this up, but let's

527
00:22:15,320 --> 00:22:17,200
Speaker 1: just assume that, well, maybe you each get a Delta

528
00:22:17,200 --> 00:22:19,280
Speaker 1: Skymiles card to earn the sign up bonus. You got

529
00:22:19,280 --> 00:22:21,120
Speaker 1: a bunch of Delta points and then guess what you're

530
00:22:21,119 --> 00:22:24,439
Speaker 1: getting to and from your second wedding. You know that's

531
00:22:24,880 --> 00:22:27,679
Speaker 1: in your wife's home country for free. And again, you

532
00:22:27,720 --> 00:22:29,679
Speaker 1: have so much time to rack up some of these

533
00:22:29,680 --> 00:22:32,119
Speaker 1: rewards and to maybe open multiple credit cards each to

534
00:22:32,119 --> 00:22:34,399
Speaker 1: pay for some of these wedding things. Again, you ultimately

535
00:22:34,400 --> 00:22:36,640
Speaker 1: want to have the cash to cover those purchases because

536
00:22:36,720 --> 00:22:38,560
Speaker 1: you don't want to be in credit card debt to

537
00:22:38,600 --> 00:22:41,359
Speaker 1: start your marriage. But taking that approach multiple credit cards

538
00:22:41,400 --> 00:22:44,320
Speaker 1: each over time as you're pre paying and buying things

539
00:22:44,320 --> 00:22:46,000
Speaker 1: for your wedding, I think can help you be more

540
00:22:46,040 --> 00:22:48,760
Speaker 1: optimized and can help mitigate a lot of the cost

541
00:22:48,880 --> 00:22:50,720
Speaker 1: of some of the traveler maybe some of the other

542
00:22:50,840 --> 00:22:51,840
Speaker 1: things you're gonna need to buy.

543
00:22:52,040 --> 00:22:55,320
Speaker 2: Absolutely, yeah, so Victor, let us know how it goes. Man, Joel,

544
00:22:55,359 --> 00:22:58,120
Speaker 2: are you invited to the wedding and the Philippines?

545
00:22:58,160 --> 00:23:00,800
Speaker 1: I told him I'm either best man or performing the ceremony,

546
00:23:01,080 --> 00:23:04,240
Speaker 1: nothing else. I've never been to that personally, so I

547
00:23:04,280 --> 00:23:06,280
Speaker 1: would love to go, but that means I'm not invited. Yeah,

548
00:23:06,280 --> 00:23:08,480
Speaker 1: I ask you're not going? But now we've got more

549
00:23:08,560 --> 00:23:09,760
Speaker 1: to get to, and you.

550
00:23:09,720 --> 00:23:11,600
Speaker 2: Know, we kind of touched on the fact that there

551
00:23:11,600 --> 00:23:14,400
Speaker 2: are listeners who are totally crushing it when it comes

552
00:23:14,400 --> 00:23:17,040
Speaker 2: to all the different retirement accounts that they're funding. We

553
00:23:17,080 --> 00:23:18,960
Speaker 2: got one of those questions plus more to get to

554
00:23:19,400 --> 00:23:20,960
Speaker 2: right after the break.

555
00:23:28,440 --> 00:23:30,520
Speaker 1: Our Matt, We're back. We got more money questions we

556
00:23:30,600 --> 00:23:33,880
Speaker 1: got to get to on this episode. And next question.

557
00:23:33,960 --> 00:23:36,720
Speaker 1: This one's kind of a nuanced one about order of

558
00:23:36,800 --> 00:23:40,159
Speaker 1: operations and which account you want your money sitting in.

559
00:23:40,640 --> 00:23:44,280
Speaker 5: Hi, Matt, Joel, It's Jen from Ulna, me big fan

560
00:23:44,320 --> 00:23:46,239
Speaker 5: of the show. Thank you so much for sharing the

561
00:23:46,240 --> 00:23:50,119
Speaker 5: information that you do and for striking a really wonderful

562
00:23:50,160 --> 00:23:57,159
Speaker 5: balance between financial independence and growing wealth but not necessarily

563
00:23:57,200 --> 00:23:59,320
Speaker 5: living in that mindset of like how to be a

564
00:23:59,400 --> 00:24:05,000
Speaker 5: trillion There that really high level financial advice is super

565
00:24:05,160 --> 00:24:08,640
Speaker 5: interesting but also can be a little bit nerve wracking sometimes.

566
00:24:08,680 --> 00:24:10,480
Speaker 5: I don't know if I want to be a trillionaire.

567
00:24:11,400 --> 00:24:15,800
Speaker 5: I think post buyer sounds really nice. So that being said,

568
00:24:15,840 --> 00:24:19,120
Speaker 5: my question today is about high old savings account interest.

569
00:24:20,200 --> 00:24:24,760
Speaker 5: This month, my husband and I made a large purchase

570
00:24:25,160 --> 00:24:28,000
Speaker 5: on our credit card. We pay our credit card off

571
00:24:28,359 --> 00:24:30,720
Speaker 5: at the end of the billing cycle every month. We

572
00:24:30,800 --> 00:24:34,000
Speaker 5: have it on auto pay. However, we made this additional

573
00:24:34,240 --> 00:24:36,840
Speaker 5: large purchase which we do have the money to pay for.

574
00:24:38,520 --> 00:24:43,400
Speaker 5: Is it smarter to put the money for that additional

575
00:24:43,440 --> 00:24:47,760
Speaker 5: purchase into our high heeld savings account and let it

576
00:24:47,800 --> 00:24:53,280
Speaker 5: grow interest for the next three weeks or do we

577
00:24:54,520 --> 00:24:56,359
Speaker 5: make you know, do we just leave it in our

578
00:24:56,440 --> 00:24:59,399
Speaker 5: checking account or make an early payment on the credit card? No,

579
00:24:59,440 --> 00:25:02,960
Speaker 5: there's no fear with their Highield Savings account moving stuff

580
00:25:03,080 --> 00:25:07,520
Speaker 5: back and forth into our brick and mortar checking account.

581
00:25:07,920 --> 00:25:10,800
Speaker 5: And also our percentagery is four point six percent and

582
00:25:10,840 --> 00:25:16,840
Speaker 5: our apy so am I gaining interest on that money

583
00:25:17,000 --> 00:25:18,600
Speaker 5: for the period of time it sits in the account?

584
00:25:18,840 --> 00:25:21,240
Speaker 5: Or do you only gain interest in a HIGHLD savings

585
00:25:21,280 --> 00:25:23,280
Speaker 5: account on the money that's there in the last day

586
00:25:23,280 --> 00:25:26,520
Speaker 5: of the month. Thank you so much, have a good day.

587
00:25:27,000 --> 00:25:30,080
Speaker 2: Ah See, that last part is the potential loophole that

588
00:25:30,080 --> 00:25:31,440
Speaker 2: I felt like that Jen was looking for.

589
00:25:31,560 --> 00:25:33,480
Speaker 1: So we'll address that here in a minute.

590
00:25:33,480 --> 00:25:37,080
Speaker 2: But Jen, we appreciate your words because like you your

591
00:25:37,080 --> 00:25:39,400
Speaker 2: words about us and just how we approach talking about

592
00:25:39,440 --> 00:25:42,600
Speaker 2: personal finances, because I think that bent is really important

593
00:25:42,720 --> 00:25:44,760
Speaker 2: to how it is we talk about money, because I

594
00:25:44,800 --> 00:25:47,159
Speaker 2: think most folks out there, they're in your camp, they're

595
00:25:47,200 --> 00:25:50,880
Speaker 2: in our camp. They don't necessarily want to be trillionaires,

596
00:25:51,200 --> 00:25:54,240
Speaker 2: but they still end up getting sucked into the nose

597
00:25:54,280 --> 00:25:56,760
Speaker 2: to the grindstone mentality. And when I say that we

598
00:25:56,760 --> 00:25:59,280
Speaker 2: don't necessarily want to be trillionaires, like I wouldn't mind it, right,

599
00:25:59,320 --> 00:26:01,440
Speaker 2: Like whouldn't mind? Like I would have plenty of things

600
00:26:01,520 --> 00:26:03,880
Speaker 2: to do with that money, plenty of organizations.

601
00:26:03,440 --> 00:26:04,280
Speaker 1: That I would give it away to.

602
00:26:04,400 --> 00:26:08,800
Speaker 2: Yeah, I meani vocations to the Philippines to visit people weddings.

603
00:26:08,800 --> 00:26:10,879
Speaker 1: Who's wedding? I wasn't even invited to things like that,

604
00:26:10,960 --> 00:26:12,560
Speaker 1: don't even know you yet, but I'm coming to your wedding.

605
00:26:12,680 --> 00:26:15,960
Speaker 2: But I think potentially, like a more helpful conversation or

606
00:26:16,200 --> 00:26:19,880
Speaker 2: maybe a mind experiment or thought process to go through

607
00:26:19,960 --> 00:26:22,560
Speaker 2: is like even if it were possible, right, imagine that

608
00:26:23,080 --> 00:26:24,879
Speaker 2: because you say trillions and you're like, all right, well

609
00:26:24,880 --> 00:26:27,000
Speaker 2: that's not that's not that's not possible. But let's imagine

610
00:26:27,000 --> 00:26:28,440
Speaker 2: it was. Let's say you had the skill set, let's

611
00:26:28,440 --> 00:26:31,080
Speaker 2: say you had the whatever it took to make forget trillions.

612
00:26:31,160 --> 00:26:34,040
Speaker 2: Let's let's say even millions. I think the more the

613
00:26:34,040 --> 00:26:36,399
Speaker 2: more important question to ask is are you willing to

614
00:26:36,560 --> 00:26:39,399
Speaker 2: do what it takes to then earn those millions, Because

615
00:26:39,440 --> 00:26:41,840
Speaker 2: just because you can earn millions of dollars doesn't necessarily

616
00:26:41,880 --> 00:26:43,240
Speaker 2: mean that.

617
00:26:43,200 --> 00:26:45,119
Speaker 1: You should or that you would do that.

618
00:26:45,200 --> 00:26:48,240
Speaker 2: Are you willing, for instance, to work a job that's

619
00:26:48,280 --> 00:26:50,560
Speaker 2: going to be crazy stressful where you're working like nights

620
00:26:50,560 --> 00:26:55,040
Speaker 2: and weekends in order to secure that next promotion, that

621
00:26:54,840 --> 00:26:55,920
Speaker 2: that next paymump?

622
00:26:55,920 --> 00:26:56,119
Speaker 1: Are you?

623
00:26:56,800 --> 00:26:58,960
Speaker 2: Are you willing to sacrifice when it comes to your family,

624
00:26:59,160 --> 00:27:02,639
Speaker 2: your kids, your friends, physical health, like mental health, like

625
00:27:02,720 --> 00:27:05,680
Speaker 2: all the different things that we say are important to us,

626
00:27:06,119 --> 00:27:08,560
Speaker 2: And no joke, it really is a trap that you

627
00:27:08,600 --> 00:27:10,600
Speaker 2: can kind of get sucked into. And I don't think

628
00:27:10,640 --> 00:27:12,919
Speaker 2: this is just a pointless mind exercise because we can

629
00:27:12,960 --> 00:27:15,439
Speaker 2: apply the same principles I think to the small things that.

630
00:27:15,880 --> 00:27:17,800
Speaker 1: We're faced with basically, right like, because we're.

631
00:27:17,640 --> 00:27:20,560
Speaker 2: Faced with these small sort of questions of ourselves when

632
00:27:20,560 --> 00:27:22,679
Speaker 2: it comes to our you know, just like our day

633
00:27:22,680 --> 00:27:24,520
Speaker 2: to day kind of work and the different different things

634
00:27:24,520 --> 00:27:27,280
Speaker 2: that we're presented with. So yeah, I guess I just

635
00:27:27,280 --> 00:27:30,320
Speaker 2: don't want to discount the whole trillion's thing because it's like, well,

636
00:27:30,400 --> 00:27:33,680
Speaker 2: hopefully at a similar level, we're still answering the same

637
00:27:33,720 --> 00:27:36,200
Speaker 2: principles and addressing the same principles and asking the same

638
00:27:36,280 --> 00:27:39,320
Speaker 2: questions of listeners, regardless of the amount of money that

639
00:27:39,320 --> 00:27:40,200
Speaker 2: they're making or not making.

640
00:27:40,320 --> 00:27:41,760
Speaker 1: I think I disagree with you a little bit on that,

641
00:27:41,800 --> 00:27:45,120
Speaker 1: because I do think that it actually having too much

642
00:27:45,160 --> 00:27:47,919
Speaker 1: money can become burdensome. And I think we've seen that

643
00:27:48,000 --> 00:27:51,080
Speaker 1: in different people throughout history. You read the book Fortune's Children.

644
00:27:51,119 --> 00:27:52,720
Speaker 1: I've listened to some of that on audio.

645
00:27:52,720 --> 00:27:54,040
Speaker 2: But I think it comes down to how it is

646
00:27:54,080 --> 00:27:55,919
Speaker 2: you receive that money, right, because it's like like in

647
00:27:55,960 --> 00:27:58,600
Speaker 2: the Fortune, like with the Vanderbilts, it was basically like

648
00:27:58,640 --> 00:28:00,000
Speaker 2: an inherited lottery ticket.

649
00:28:00,080 --> 00:28:00,439
Speaker 1: Yeah, right.

650
00:28:00,520 --> 00:28:03,679
Speaker 2: And similarly, folks who do win the lottery, it's like,

651
00:28:03,760 --> 00:28:05,320
Speaker 2: I don't know what the percentages.

652
00:28:04,920 --> 00:28:05,640
Speaker 1: On becoming ago.

653
00:28:05,720 --> 00:28:07,840
Speaker 2: The vast majority of them don't have that money anymore

654
00:28:07,960 --> 00:28:11,359
Speaker 2: as opposed to something that you work for and that

655
00:28:11,840 --> 00:28:14,120
Speaker 2: but one of the how, I guess the how matters

656
00:28:14,160 --> 00:28:16,200
Speaker 2: more to me than the what, one of the things

657
00:28:16,200 --> 00:28:18,760
Speaker 2: William Vanderbilt says, and I will read just a small

658
00:28:18,760 --> 00:28:21,280
Speaker 2: section of the book that he talks about well, and

659
00:28:21,359 --> 00:28:23,400
Speaker 2: there's another point where he talks about giving the wealth

660
00:28:23,440 --> 00:28:25,199
Speaker 2: on too the next generation, and he talks about the

661
00:28:25,200 --> 00:28:27,120
Speaker 2: burden they inherit when they inherit the money.

662
00:28:27,160 --> 00:28:28,720
Speaker 1: So he's just fascinating how he thinks about this. But

663
00:28:28,760 --> 00:28:31,000
Speaker 1: he says, I have my house, my pictures, and my horses,

664
00:28:31,040 --> 00:28:32,520
Speaker 1: and so do they. You talking about his neighbors who

665
00:28:32,520 --> 00:28:33,800
Speaker 1: have a lot less money than him. I can have

666
00:28:33,880 --> 00:28:35,400
Speaker 1: esteem me out if I want to, but it would

667
00:28:35,440 --> 00:28:36,960
Speaker 1: give me no pleasure, and I don't care for it,

668
00:28:37,000 --> 00:28:38,800
Speaker 1: he said, we're talking about his neighbor. He says, he's

669
00:28:38,800 --> 00:28:41,120
Speaker 1: not worth a hundred a hundred as much as I am,

670
00:28:41,280 --> 00:28:43,240
Speaker 1: but he has more of the real pleasures of life

671
00:28:43,280 --> 00:28:45,080
Speaker 1: than I have. His house is just as cover all

672
00:28:45,080 --> 00:28:46,920
Speaker 1: as mind, even if it didn't cost so much. Like

673
00:28:46,960 --> 00:28:48,520
Speaker 1: and then he continues to go on and on and on.

674
00:28:48,560 --> 00:28:51,000
Speaker 1: It's his fascinating diet driver, where he's like, listen, my

675
00:28:51,040 --> 00:28:52,480
Speaker 1: neighbor lives such a better life than me, and he

676
00:28:52,520 --> 00:28:54,320
Speaker 1: has so much less money than me. And isn't that

677
00:28:54,360 --> 00:28:56,360
Speaker 1: the truth that some of the unhappiest people are the

678
00:28:56,480 --> 00:28:59,280
Speaker 1: richest people in this world and the money isn't doing

679
00:28:59,280 --> 00:29:03,440
Speaker 1: the satisfying They look upon people who have simplicity, happiness,

680
00:29:03,680 --> 00:29:06,440
Speaker 1: good familiar relationships, and they're like, man, I would treat

681
00:29:06,480 --> 00:29:08,640
Speaker 1: it all for that, but it's brick by brick that

682
00:29:08,680 --> 00:29:11,480
Speaker 1: we lay those foundations of good relationships and stuff like that,

683
00:29:11,480 --> 00:29:13,120
Speaker 1: and it's really hard to have it all, I guess.

684
00:29:13,400 --> 00:29:15,480
Speaker 2: I mean, I wouldn't just jump to conclusions that just

685
00:29:15,480 --> 00:29:17,840
Speaker 2: because someone has millions or billions or even trillion. You know,

686
00:29:17,880 --> 00:29:20,880
Speaker 2: there's nobody that has trillions, right, like the richest elon

687
00:29:20,960 --> 00:29:24,040
Speaker 2: what they're saying, like around three hundred to five hundred billion. Yeah,

688
00:29:24,360 --> 00:29:26,640
Speaker 2: we're not at a trillion level yet on an individual level,

689
00:29:26,680 --> 00:29:29,440
Speaker 2: but I would I'm just hesitant to judge folks and

690
00:29:29,440 --> 00:29:31,160
Speaker 2: how they feel about it because maybe they have a

691
00:29:31,200 --> 00:29:35,040
Speaker 2: perfectly well adjusted approach or mindset when it comes to

692
00:29:35,080 --> 00:29:37,960
Speaker 2: their money, which is rare. I do think it's probably

693
00:29:37,960 --> 00:29:40,320
Speaker 2: more challenging because most likely the things that allowed you

694
00:29:40,360 --> 00:29:42,960
Speaker 2: to be really good to accumulate that money.

695
00:29:42,960 --> 00:29:44,800
Speaker 1: Is likely to be thought of as what's going to.

696
00:29:44,760 --> 00:29:47,120
Speaker 2: Solve your other problems that you have, you know, And

697
00:29:47,160 --> 00:29:50,200
Speaker 2: so I do agree with you there, But I don't

698
00:29:50,240 --> 00:29:52,160
Speaker 2: know how Bezez feels about.

699
00:29:52,080 --> 00:29:53,880
Speaker 1: The amount of money he has. Maybe he's a good question.

700
00:29:53,960 --> 00:29:56,480
Speaker 1: Maybe he feels great about it. I mean, he's working less,

701
00:29:56,480 --> 00:29:59,440
Speaker 1: living on his yacht more. I don't really know what's

702
00:29:59,480 --> 00:30:01,720
Speaker 1: going on with emotional state. I'm not a therapist, but

703
00:30:01,800 --> 00:30:04,200
Speaker 1: beesus is in that post achievement life. Yeah, I guess

704
00:30:04,240 --> 00:30:08,040
Speaker 1: in some ways. But like you, across the way, across

705
00:30:08,040 --> 00:30:09,760
Speaker 1: the time, things get broken most of the time for

706
00:30:09,760 --> 00:30:11,640
Speaker 1: people who seek great wealth or people who end up

707
00:30:11,640 --> 00:30:14,320
Speaker 1: getting great wealth. Think about Warren Buffett and what happened

708
00:30:14,320 --> 00:30:16,760
Speaker 1: to his family, and we love Warren in so many ways,

709
00:30:16,760 --> 00:30:18,880
Speaker 1: but like, I don't know, at the end of the day,

710
00:30:18,920 --> 00:30:20,400
Speaker 1: is it worth it? And it's not the kind of yeah,

711
00:30:20,600 --> 00:30:21,240
Speaker 1: what we aspire.

712
00:30:21,240 --> 00:30:24,400
Speaker 2: I don't aspire to be a buffet father figure, right,

713
00:30:24,480 --> 00:30:26,200
Speaker 2: even though a lot of people do strive to be

714
00:30:26,280 --> 00:30:27,800
Speaker 2: a buffet wealth maker.

715
00:30:27,840 --> 00:30:29,760
Speaker 1: And oftentimes when you strive for that, you get the

716
00:30:29,760 --> 00:30:32,120
Speaker 1: other part too. Because it's true, you got a heavy

717
00:30:32,160 --> 00:30:34,480
Speaker 1: focus on the first part. But okay, let's get to

718
00:30:34,480 --> 00:30:37,440
Speaker 1: the heart of your question. Jen. You are earning money,

719
00:30:37,440 --> 00:30:39,280
Speaker 1: by the way, on those dollars that are in your

720
00:30:39,280 --> 00:30:41,520
Speaker 1: savings account, even if they're there only for a few weeks,

721
00:30:41,600 --> 00:30:44,640
Speaker 1: or even if they're only there for just a few days. Basically,

722
00:30:44,720 --> 00:30:47,720
Speaker 1: you're earning in the interest even though you won't receive

723
00:30:47,760 --> 00:30:50,480
Speaker 1: the interest in your account until the end of the month.

724
00:30:50,720 --> 00:30:52,800
Speaker 1: So let's say, for example, you had a thousand bucks

725
00:30:52,840 --> 00:30:55,080
Speaker 1: in your account for half the month, and then two

726
00:30:55,080 --> 00:30:57,560
Speaker 1: thousand bucks in your account for the other half, smack

727
00:30:57,640 --> 00:31:01,320
Speaker 1: dab in the middle, and so your apy was five percent.

728
00:31:01,360 --> 00:31:04,360
Speaker 1: These are all just kind of theoretical numbers, nice round,

729
00:31:04,400 --> 00:31:07,360
Speaker 1: easy to calculate. Essentially, the bank would treat it as

730
00:31:07,400 --> 00:31:09,920
Speaker 1: though you had fifteen hundred bucks in the account for

731
00:31:10,080 --> 00:31:12,360
Speaker 1: the entire month, because one half he had a thousand bucks,

732
00:31:12,360 --> 00:31:14,080
Speaker 1: the other half he had a two thousand bucks, and

733
00:31:14,120 --> 00:31:17,040
Speaker 1: you would still net six dollars and twenty five cents

734
00:31:17,080 --> 00:31:18,680
Speaker 1: worth of interest at the end of the month when

735
00:31:18,680 --> 00:31:21,720
Speaker 1: you make those calculations. So, yes, there is a point

736
00:31:21,840 --> 00:31:24,480
Speaker 1: in moving money from checking to saving, even if it's

737
00:31:24,480 --> 00:31:26,160
Speaker 1: just for a few weeks, because you'll make interest on it.

738
00:31:26,240 --> 00:31:26,680
Speaker 1: That's right.

739
00:31:26,920 --> 00:31:28,960
Speaker 2: But there isn't a loophole in that if you get

740
00:31:28,960 --> 00:31:32,760
Speaker 2: all that money over into your highild savings just before

741
00:31:32,920 --> 00:31:35,040
Speaker 2: the day that you receive your interest, you're not gonna

742
00:31:35,120 --> 00:31:37,280
Speaker 2: it's not like you're gonna get counted for the entire month.

743
00:31:37,320 --> 00:31:39,480
Speaker 2: What Joel's pointing to is the fact that the amount

744
00:31:39,520 --> 00:31:41,720
Speaker 2: of time that you are in there, it does, it

745
00:31:41,760 --> 00:31:43,640
Speaker 2: does have an impact on the interest that you receive.

746
00:31:43,760 --> 00:31:45,840
Speaker 2: It's commensurate for the amounts of time that you have

747
00:31:45,920 --> 00:31:46,520
Speaker 2: that money in there.

748
00:31:46,760 --> 00:31:48,239
Speaker 1: You can just like pop a million bucks in there

749
00:31:48,240 --> 00:31:50,120
Speaker 1: the last day of the month and then like, oh sweet.

750
00:31:49,880 --> 00:31:52,000
Speaker 2: You got five percent on a million bucks divided by

751
00:31:52,040 --> 00:31:55,680
Speaker 2: twelve essentially. But yeah, I mean, I think the big

752
00:31:55,720 --> 00:31:58,880
Speaker 2: takeaway here is just to not underestimate the power of

753
00:31:58,880 --> 00:32:02,200
Speaker 2: a highyield savings account, because, like she mentioned, maybe moving

754
00:32:02,280 --> 00:32:04,640
Speaker 2: money back and forth from her brick and mortar checking

755
00:32:04,800 --> 00:32:09,040
Speaker 2: over to her high yield savings well, two strikes against

756
00:32:09,080 --> 00:32:10,800
Speaker 2: what she said about her checking account.

757
00:32:10,840 --> 00:32:12,080
Speaker 1: One that is, brick and mortar.

758
00:32:13,200 --> 00:32:16,840
Speaker 2: They're likely paying even less than some of the online

759
00:32:16,840 --> 00:32:18,960
Speaker 2: banks when it comes to the checking account. But also

760
00:32:19,200 --> 00:32:21,160
Speaker 2: that's true, we want you to minimize the amount of

761
00:32:21,160 --> 00:32:24,680
Speaker 2: money that you have in that checking account because you

762
00:32:24,840 --> 00:32:28,400
Speaker 2: most likely aren't getting paid hardly anything within that account,

763
00:32:28,440 --> 00:32:31,200
Speaker 2: and so the ability to funnel more and more of

764
00:32:31,200 --> 00:32:33,320
Speaker 2: your dollars into the highield savings account. Like if you

765
00:32:33,320 --> 00:32:36,000
Speaker 2: think about I think the average America or the average

766
00:32:36,040 --> 00:32:38,760
Speaker 2: family of four in the US, their monthly expenses are

767
00:32:38,800 --> 00:32:41,800
Speaker 2: something like seven thousand dollars a month. So let's just say,

768
00:32:41,880 --> 00:32:44,080
Speaker 2: all right, people out there, they're still ramping up their

769
00:32:44,120 --> 00:32:46,680
Speaker 2: emergency fund. They're building up to that forty two thousand

770
00:32:47,000 --> 00:32:50,479
Speaker 2: in savings for their emergency fund. On top of that,

771
00:32:50,520 --> 00:32:52,400
Speaker 2: you consider the fact that there are some other life

772
00:32:52,400 --> 00:32:54,440
Speaker 2: goals that you're probably saving for as well, not just

773
00:32:54,440 --> 00:32:57,880
Speaker 2: your emergency fund. You're easily over fifty thousand dollars five

774
00:32:57,880 --> 00:33:00,560
Speaker 2: percent on that money every single month. That's over well

775
00:33:00,640 --> 00:33:02,800
Speaker 2: over two hundred dollars a month. And so what I'm

776
00:33:02,880 --> 00:33:04,600
Speaker 2: highlighting here is for all the folks out there who

777
00:33:04,600 --> 00:33:08,080
Speaker 2: are ramping up their emergency funds, Man, what an awesome

778
00:33:08,120 --> 00:33:11,120
Speaker 2: incentive you are being You're being paid hundreds of dollars

779
00:33:11,120 --> 00:33:13,800
Speaker 2: a month just to be responsible ye with your money,

780
00:33:14,440 --> 00:33:16,920
Speaker 2: just by funneling these dollars into your highield savings.

781
00:33:17,000 --> 00:33:18,240
Speaker 1: Far cry from five years ago.

782
00:33:18,360 --> 00:33:21,200
Speaker 2: I know, it's and it's guaranteed. I mean, granted the

783
00:33:21,320 --> 00:33:23,560
Speaker 2: rate could change, but like you, no matter what, you

784
00:33:23,600 --> 00:33:25,840
Speaker 2: are going to get that money. And as folks do

785
00:33:25,960 --> 00:33:29,160
Speaker 2: find themselves in a stronger and stronger financial position, you're

786
00:33:29,160 --> 00:33:31,280
Speaker 2: going to start seeing those interest payments balloon.

787
00:33:31,640 --> 00:33:32,080
Speaker 1: It's going to.

788
00:33:32,120 --> 00:33:35,840
Speaker 2: Feel so good and hopefully it'll only encourage more savvy

789
00:33:35,880 --> 00:33:36,920
Speaker 2: financial maneuvers.

790
00:33:36,960 --> 00:33:39,760
Speaker 1: And if you have like recurring expenses that come out

791
00:33:39,880 --> 00:33:41,960
Speaker 1: of your checking account, here's how I treat it, Matt.

792
00:33:42,240 --> 00:33:44,200
Speaker 1: I keep the money in savings, and then I have

793
00:33:44,760 --> 00:33:46,840
Speaker 1: an automatic transfer to that I scheduled at the beginning

794
00:33:46,840 --> 00:33:48,680
Speaker 1: of every month, because I know roughly how much is

795
00:33:48,680 --> 00:33:51,120
Speaker 1: going towards like mortgage and credit card statement.

796
00:33:51,520 --> 00:33:53,720
Speaker 2: The first is right around the corner about to get pooring.

797
00:33:53,720 --> 00:33:56,080
Speaker 1: That's right, that's right, yeah, exactly, So I kind of

798
00:33:56,080 --> 00:33:57,600
Speaker 1: do it that way so that it's sitting in my

799
00:33:57,640 --> 00:33:59,920
Speaker 1: savings account for the whole month as long as possible,

800
00:34:00,200 --> 00:34:02,400
Speaker 1: and then it goes into checking like it on an

801
00:34:02,440 --> 00:34:05,840
Speaker 1: as needed approach. But I also have it automatically scheduled,

802
00:34:05,880 --> 00:34:07,880
Speaker 1: because yeah, I basically know about how much it's going

803
00:34:07,960 --> 00:34:09,080
Speaker 1: to be. You don't have to forget. It makes it

804
00:34:09,120 --> 00:34:10,719
Speaker 1: really easy and you you don't have to remember you

805
00:34:10,719 --> 00:34:12,479
Speaker 1: don't want to forget, right, And that way your checking

806
00:34:12,480 --> 00:34:14,840
Speaker 1: account isn't like swole when it doesn't need to be.

807
00:34:15,200 --> 00:34:18,320
Speaker 1: You can just reduce it down to size, make sure

808
00:34:18,480 --> 00:34:20,720
Speaker 1: you're able to cover so you're not overdrawing that account,

809
00:34:20,960 --> 00:34:23,360
Speaker 1: but have the majority of your funds in the HIO

810
00:34:23,440 --> 00:34:26,920
Speaker 1: savings account so that you are getting max interest payments.

811
00:34:27,080 --> 00:34:29,040
Speaker 1: And by the way, Jen mentioned paying off the credit

812
00:34:29,120 --> 00:34:31,919
Speaker 1: card early, that's another option. There's just not really any

813
00:34:31,960 --> 00:34:34,240
Speaker 1: necessity to do that if you have a great credit score.

814
00:34:34,800 --> 00:34:36,960
Speaker 1: But I guess if you're trying to improve your credit

815
00:34:36,960 --> 00:34:39,040
Speaker 1: score because you're about to, I don't know, finance a

816
00:34:39,040 --> 00:34:41,680
Speaker 1: car or something which don't do that. Don't fund is

817
00:34:41,680 --> 00:34:44,719
Speaker 1: the car pay cash? Yes? Or let's say you're going

818
00:34:44,760 --> 00:34:47,080
Speaker 1: to apply for a new mortgage. Well, that's when that

819
00:34:47,160 --> 00:34:49,400
Speaker 1: might be the best option. I mean, a major purchase

820
00:34:49,640 --> 00:34:51,880
Speaker 1: can change your utilization rate and it can send your

821
00:34:51,920 --> 00:34:54,600
Speaker 1: score down a handful of points. And we're likely not

822
00:34:54,600 --> 00:34:57,040
Speaker 1: talking about a massive drop, but every point counts if

823
00:34:57,040 --> 00:34:59,799
Speaker 1: you're not already in premo territory. And so if that's

824
00:34:59,880 --> 00:35:01,920
Speaker 1: not the case for you, I would say stick the

825
00:35:01,960 --> 00:35:05,239
Speaker 1: money in savings for a few weeks and earn that interest. Otherwise, Yeah,

826
00:35:05,239 --> 00:35:07,600
Speaker 1: maybe pay off the credit card early so that it

827
00:35:07,360 --> 00:35:08,600
Speaker 1: is helping your score out.

828
00:35:08,680 --> 00:35:11,920
Speaker 2: Yeah, And I think your strategy for keeping that spending,

829
00:35:12,000 --> 00:35:14,279
Speaker 2: that's what ally calls it these days, spending or checking

830
00:35:14,320 --> 00:35:17,560
Speaker 2: account keep those balances pretty meager, and of course that

831
00:35:17,600 --> 00:35:20,360
Speaker 2: would allow you to earn the most possible in interest.

832
00:35:20,560 --> 00:35:20,719
Speaker 1: Jen.

833
00:35:20,880 --> 00:35:22,839
Speaker 2: But Joel, let's get to our next question. This is

834
00:35:22,840 --> 00:35:25,160
Speaker 2: from a listener who's looking to maximize. He's looking to

835
00:35:25,200 --> 00:35:27,400
Speaker 2: optimize his investing dollars.

836
00:35:27,680 --> 00:35:30,400
Speaker 3: Hey Manjel, this is Jordan from Orlando, Florida. I just

837
00:35:30,440 --> 00:35:33,399
Speaker 3: wanted to say I love the podcast, newsletter, Facebook group,

838
00:35:33,480 --> 00:35:35,959
Speaker 3: and everything you guys are doing. My question is around

839
00:35:35,960 --> 00:35:38,160
Speaker 3: where do invest my extra money each month after I

840
00:35:38,200 --> 00:35:41,160
Speaker 3: max out my employeer sponsored four oh one K. My

841
00:35:41,239 --> 00:35:43,799
Speaker 3: employer matches up to six percent in a traditional four

842
00:35:43,840 --> 00:35:45,799
Speaker 3: to one K, and I do max that out, but

843
00:35:45,840 --> 00:35:48,440
Speaker 3: after the six percent, my company does offer an HSA

844
00:35:48,480 --> 00:35:52,759
Speaker 3: with a HGHP and a WROTH for one K, both

845
00:35:52,760 --> 00:35:54,680
Speaker 3: of which I am not currently using, and they do

846
00:35:54,719 --> 00:35:57,280
Speaker 3: not provide a match for those. I could also invest

847
00:35:57,360 --> 00:35:59,680
Speaker 3: in a separate WROTH for one K outside of work,

848
00:35:59,719 --> 00:36:02,000
Speaker 3: but not sure if there any benefits to that since

849
00:36:02,000 --> 00:36:05,359
Speaker 3: the expense ratios are the exact same. My company uses

850
00:36:05,400 --> 00:36:08,319
Speaker 3: Fidelity and traditionally I'd liked Vanguard, but not sure it's

851
00:36:08,320 --> 00:36:12,440
Speaker 3: worth opening another account over those other options. My understanding

852
00:36:12,480 --> 00:36:15,479
Speaker 3: would be to prioritize the HSA and max that out

853
00:36:15,600 --> 00:36:18,520
Speaker 3: and invest those funds first before moving to a wrath

854
00:36:18,560 --> 00:36:20,680
Speaker 3: of any sort. But please let me know if I'm

855
00:36:20,719 --> 00:36:23,000
Speaker 3: wrong or there any other paths I should be using.

856
00:36:23,440 --> 00:36:26,640
Speaker 3: For some additional background, I'm probably at my peak earning

857
00:36:26,800 --> 00:36:28,839
Speaker 3: years and don't expect to make more as the years

858
00:36:28,840 --> 00:36:31,680
Speaker 3: go on, or at least not much more. I'm forty

859
00:36:31,680 --> 00:36:34,600
Speaker 3: now and targeting forty eight to retire, and like would

860
00:36:34,680 --> 00:36:37,239
Speaker 3: like to have access to funds prior to the traditional

861
00:36:37,640 --> 00:36:40,200
Speaker 3: retirement age limits. Thanks for all you do and keep

862
00:36:40,280 --> 00:36:40,879
Speaker 3: up the great work.

863
00:36:41,719 --> 00:36:44,680
Speaker 1: Dang Matt Jordan is like mainlining everything out of money.

864
00:36:44,680 --> 00:36:47,360
Speaker 2: He's does he have the how of money socks?

865
00:36:47,680 --> 00:36:47,879
Speaker 3: Oh?

866
00:36:48,560 --> 00:36:49,520
Speaker 1: We'll send you some, Jordan.

867
00:36:49,800 --> 00:36:51,880
Speaker 2: Oh, just for sending in a what's the question?

868
00:36:52,000 --> 00:36:54,480
Speaker 1: Just because he's awesome, send us an email. We'll send

869
00:36:54,520 --> 00:36:55,719
Speaker 1: you some how to money socks? Nice?

870
00:36:55,800 --> 00:36:58,440
Speaker 2: Yeah, okay, so you're so generous drill.

871
00:36:58,320 --> 00:37:01,200
Speaker 1: Well, he deserves them because it consumes all things out

872
00:37:01,239 --> 00:37:04,040
Speaker 1: of money. Seriously, he's a diehard. Well all right, let's

873
00:37:04,200 --> 00:37:06,440
Speaker 1: let's move on. Let's just mention all your accounts are

874
00:37:06,440 --> 00:37:09,080
Speaker 1: with Fidelity, which is great, and why not through all

875
00:37:09,120 --> 00:37:11,080
Speaker 1: your business in one place because you are with one

876
00:37:11,120 --> 00:37:13,840
Speaker 1: of the goats, the greatest of all time investment firms.

877
00:37:13,840 --> 00:37:16,279
Speaker 1: I mean, Vanguard's great too, but they're so similar in

878
00:37:16,320 --> 00:37:18,160
Speaker 1: what they offer and how they work. I just say,

879
00:37:18,239 --> 00:37:19,919
Speaker 1: keep it simple, keep it all under one roof. There's

880
00:37:19,920 --> 00:37:22,799
Speaker 1: just no point to if you really wanted to complicate things,

881
00:37:22,800 --> 00:37:25,080
Speaker 1: you could, and you could be like you know, then

882
00:37:25,120 --> 00:37:26,879
Speaker 1: you use it as bragging rights to your friends. I'm

883
00:37:26,880 --> 00:37:29,279
Speaker 1: a Schwap Vanguard in fidelity what now? But I just

884
00:37:29,280 --> 00:37:31,240
Speaker 1: don't know that it really does anything for your finances

885
00:37:31,239 --> 00:37:32,320
Speaker 1: to go in that direction.

886
00:37:32,719 --> 00:37:35,520
Speaker 2: Yeah, and it's been particular because they are so similar.

887
00:37:36,040 --> 00:37:37,960
Speaker 2: It would be different if you're talking about opening a

888
00:37:38,040 --> 00:37:40,200
Speaker 2: Robinhood account because you want to get a roth Ira

889
00:37:40,520 --> 00:37:43,440
Speaker 2: match and they're one of the few who are actually

890
00:37:43,440 --> 00:37:45,600
Speaker 2: doing that and doing it well. But that's that's a

891
00:37:45,600 --> 00:37:46,480
Speaker 2: completely different story.

892
00:37:46,719 --> 00:37:49,479
Speaker 1: That's got the Robin robin Hood feather tattoo on its face.

893
00:37:49,480 --> 00:37:51,839
Speaker 1: Now I'm the one looking for the robin Hood sauce. Yeah,

894
00:37:51,920 --> 00:37:53,759
Speaker 1: Jordan's up there with the head of many sacks. Okay, Jordan,

895
00:37:54,200 --> 00:37:55,920
Speaker 1: that last bit of what you mentioned, I think that's

896
00:37:55,920 --> 00:37:58,480
Speaker 1: really important. You said that you want to access your

897
00:37:58,560 --> 00:38:02,680
Speaker 1: retirement funds a decade early, and so we'll focus mostly

898
00:38:02,800 --> 00:38:06,640
Speaker 1: on accounts that offer more flexibility. And I would recommend

899
00:38:06,680 --> 00:38:09,279
Speaker 1: it go ahead and keep contributing to your fourrol wink

900
00:38:09,400 --> 00:38:11,640
Speaker 1: in order to score that match, of course, And even

901
00:38:11,640 --> 00:38:14,280
Speaker 1: though it's harder to get money out of that account, well,

902
00:38:14,360 --> 00:38:16,760
Speaker 1: you still need to be saving for the more distant

903
00:38:16,840 --> 00:38:20,040
Speaker 1: retirement decades as well, not just the forty eight to

904
00:38:20,200 --> 00:38:21,920
Speaker 1: fifty nine and a half years. That is the mistake

905
00:38:21,960 --> 00:38:25,680
Speaker 1: that some people in the fire can't make. They think about, oh,

906
00:38:25,680 --> 00:38:28,239
Speaker 1: I need all this flexibility, and you do need some flexibility,

907
00:38:28,320 --> 00:38:30,960
Speaker 1: of course, but you also need money that you're investing

908
00:38:31,040 --> 00:38:33,239
Speaker 1: for sixty to ninety plus years old.

909
00:38:33,520 --> 00:38:36,960
Speaker 2: But then Jordan, after that, think about the HSA that

910
00:38:36,440 --> 00:38:39,160
Speaker 2: you have access to. And that's not just because of

911
00:38:39,160 --> 00:38:42,280
Speaker 2: the triple tax advantage nature of it, but also because

912
00:38:42,320 --> 00:38:45,279
Speaker 2: of the flexibility that it offers as well. Again, the

913
00:38:45,320 --> 00:38:48,080
Speaker 2: name of the game here, it's flexibility. And even with

914
00:38:48,200 --> 00:38:52,319
Speaker 2: no match or even with no employer incentives, hsas are

915
00:38:52,320 --> 00:38:54,319
Speaker 2: still awesome because you can invest those dollars, you can

916
00:38:54,360 --> 00:38:58,600
Speaker 2: take them out with maximum flexibility as you need or

917
00:38:58,640 --> 00:39:02,160
Speaker 2: as you want, with no no or without any sort

918
00:39:02,160 --> 00:39:05,880
Speaker 2: of time restriction or age requirements as long as you

919
00:39:05,920 --> 00:39:10,000
Speaker 2: have qualified medical expenses in that amount. And for that reason,

920
00:39:10,120 --> 00:39:12,640
Speaker 2: I don't know, as you are thinking, it seems like

921
00:39:12,680 --> 00:39:14,839
Speaker 2: in my mind like you're picturing retirement as this sort

922
00:39:14,840 --> 00:39:17,759
Speaker 2: of like I don't know, something that you're you're hoping

923
00:39:17,760 --> 00:39:19,600
Speaker 2: to achieve is certainly sounds like you're going to hit

924
00:39:19,600 --> 00:39:22,040
Speaker 2: it way well before the traditional retirement age, but that

925
00:39:22,080 --> 00:39:24,120
Speaker 2: you're not totally sure when it's going to be. So

926
00:39:24,640 --> 00:39:27,680
Speaker 2: this gives you, I think, maximum flexibility as to when

927
00:39:27,719 --> 00:39:29,759
Speaker 2: you want to pull the trigger on withdrawing some of

928
00:39:29,800 --> 00:39:30,200
Speaker 2: this country.

929
00:39:30,360 --> 00:39:31,640
Speaker 1: What I kind of love about this is it's like

930
00:39:31,640 --> 00:39:33,360
Speaker 1: a puzzle to solve and there are all sorts of

931
00:39:33,400 --> 00:39:36,000
Speaker 1: different ways. Actually, unlike a traditional puzzle, I guess that

932
00:39:36,080 --> 00:39:38,799
Speaker 1: you could piece those things together to kind of solve

933
00:39:38,840 --> 00:39:40,960
Speaker 1: it in the way that's best for you. It's not

934
00:39:41,040 --> 00:39:42,480
Speaker 1: just a one size fits all approach. But I think

935
00:39:42,480 --> 00:39:44,319
Speaker 1: you're right, Matt, flexibility is in the name of the game.

936
00:39:44,640 --> 00:39:49,360
Speaker 1: Don't neglect those retirement accounts that slap you on the

937
00:39:49,360 --> 00:39:51,000
Speaker 1: hand if you tap them too early, but make sure

938
00:39:51,000 --> 00:39:53,080
Speaker 1: you have a nice little balance of both, which you're

939
00:39:53,080 --> 00:39:55,520
Speaker 1: talking about with the HSA is essentially the shoebox method

940
00:39:55,760 --> 00:39:58,160
Speaker 1: where you pay for current medical expenses out of pocket,

941
00:39:58,360 --> 00:40:01,520
Speaker 1: but you hold on to the receipt for those medical

942
00:40:01,560 --> 00:40:03,680
Speaker 1: expenses and then yeah, you can take the money out

943
00:40:03,680 --> 00:40:06,400
Speaker 1: of the HSA two years from now or twenty years

944
00:40:06,440 --> 00:40:09,160
Speaker 1: from now, it doesn't matter. You get the pick, which

945
00:40:09,200 --> 00:40:10,880
Speaker 1: is kind of cool. You choose your own adventure on

946
00:40:10,920 --> 00:40:12,839
Speaker 1: that front. And it also makes me think, Matt, that

947
00:40:12,880 --> 00:40:15,680
Speaker 1: the roth IRA is a slam duck account for Jordan

948
00:40:16,000 --> 00:40:19,080
Speaker 1: to have access to as well in addition to the HSA,

949
00:40:19,160 --> 00:40:22,359
Speaker 1: because then you can take out the contributions at any time,

950
00:40:22,520 --> 00:40:25,000
Speaker 1: tax and penalty free. So let's say over the course

951
00:40:25,000 --> 00:40:27,840
Speaker 1: of a decade, you invest seventy thousand bucks into a

952
00:40:27,920 --> 00:40:30,719
Speaker 1: roth Ira seven thousand bucks a year, that's the current cap,

953
00:40:31,120 --> 00:40:33,400
Speaker 1: and you've got one hundred and fifty thousand dollars in

954
00:40:33,440 --> 00:40:36,680
Speaker 1: that roth Ira down the road. That's awesome, congratulations. Well,

955
00:40:36,800 --> 00:40:39,799
Speaker 1: you can take out seventy thousand bucks whenever you want

956
00:40:39,920 --> 00:40:42,319
Speaker 1: the contributions you made, and you can let the rest

957
00:40:42,360 --> 00:40:44,480
Speaker 1: of the money continue to work on your behalf for

958
00:40:44,520 --> 00:40:47,120
Speaker 1: those future retirement years. So I think that combo of

959
00:40:47,280 --> 00:40:51,120
Speaker 1: HSA and roth iray offers a lot of flexibility as

960
00:40:51,160 --> 00:40:53,920
Speaker 1: well as tax savings. And then the four one K

961
00:40:54,080 --> 00:40:56,800
Speaker 1: you think about that as like the after burner vehicle

962
00:40:56,960 --> 00:40:59,000
Speaker 1: to help you fund and fuel those later retirement years.

963
00:40:59,120 --> 00:41:01,520
Speaker 2: Yeah, well not just your late later retirement years as well,

964
00:41:01,520 --> 00:41:04,040
Speaker 2: because there are other I mean, so it's tough to

965
00:41:04,080 --> 00:41:07,279
Speaker 2: know because he said that he's maxing the match.

966
00:41:07,000 --> 00:41:07,839
Speaker 1: I think is what he said.

967
00:41:08,400 --> 00:41:10,480
Speaker 2: And so it's like, wait, are you maxing out your

968
00:41:10,480 --> 00:41:12,600
Speaker 2: actual four one k or you are getting up to

969
00:41:12,680 --> 00:41:14,960
Speaker 2: the match? And I think that's what he's saying. And

970
00:41:15,000 --> 00:41:16,920
Speaker 2: so there is a whole lot of room you're left

971
00:41:17,000 --> 00:41:19,440
Speaker 2: to continue to contribute to his four one k and

972
00:41:19,480 --> 00:41:21,399
Speaker 2: still get those pre tax dollars in there.

973
00:41:21,440 --> 00:41:23,520
Speaker 1: As those dollars grow tax free. If you want to

974
00:41:23,560 --> 00:41:25,120
Speaker 1: retire in your forties, you might need to take it

975
00:41:25,120 --> 00:41:26,000
Speaker 1: in all the above approach.

976
00:41:26,080 --> 00:41:28,920
Speaker 2: Yeah, that's right, And that's because there are additional options

977
00:41:28,920 --> 00:41:31,200
Speaker 2: for you to tap those four one ks early by

978
00:41:31,239 --> 00:41:34,879
Speaker 2: doing something like a Roth conversion ladder. Where like you said,

979
00:41:34,920 --> 00:41:37,799
Speaker 2: you're thinking about retiring that say age forty eight, well

980
00:41:37,920 --> 00:41:40,240
Speaker 2: you are going to have a bunch of low income

981
00:41:40,320 --> 00:41:44,080
Speaker 2: years most likely after you quit your work. Well that

982
00:41:44,120 --> 00:41:45,879
Speaker 2: is when you would start a rock conversion ladder where

983
00:41:45,920 --> 00:41:48,000
Speaker 2: you are converting funds from a four to one k

984
00:41:48,360 --> 00:41:50,640
Speaker 2: a pre tax four one k or traditional four one

985
00:41:50,680 --> 00:41:55,040
Speaker 2: k into a roth ira and technically those converted dollars

986
00:41:55,200 --> 00:41:57,960
Speaker 2: act as contributions to that roth and as long as

987
00:41:57,960 --> 00:41:59,880
Speaker 2: you let those dollars age and sit in there for

988
00:42:00,440 --> 00:42:03,160
Speaker 2: five years, you get to take that money out just

989
00:42:03,200 --> 00:42:07,400
Speaker 2: like you would with regular, plain old vanilla contributions to

990
00:42:06,680 --> 00:42:09,440
Speaker 2: you to your roth iray. So that's something important to

991
00:42:09,480 --> 00:42:09,839
Speaker 2: keep in mind.

992
00:42:09,960 --> 00:42:12,239
Speaker 1: Actually, just put an article up on how to money

993
00:42:12,280 --> 00:42:14,360
Speaker 1: dot com listing out some of those ways. There's actually

994
00:42:14,440 --> 00:42:17,280
Speaker 1: we listed eight different ways that you can get access

995
00:42:17,280 --> 00:42:19,879
Speaker 1: to gain access to those funds without paying the ten

996
00:42:19,880 --> 00:42:23,480
Speaker 1: percent penalty, which is understandably a reason you wouldn't want

997
00:42:23,480 --> 00:42:25,880
Speaker 1: to tap those funds early. But there are some creative

998
00:42:26,400 --> 00:42:28,960
Speaker 1: ways to get those retirement dollars out before fifty nine

999
00:42:29,000 --> 00:42:31,200
Speaker 1: and a half, and it's worth looking into those. So

1000
00:42:31,440 --> 00:42:33,239
Speaker 1: at least check that article out. We'll put it in

1001
00:42:33,320 --> 00:42:35,239
Speaker 1: the show notes. But it's just worth knowing some of

1002
00:42:35,239 --> 00:42:37,640
Speaker 1: the nuances some of the rules around ways to tap

1003
00:42:37,640 --> 00:42:40,880
Speaker 1: retirement accounts that won't tackle on that extra ten percent penalty,

1004
00:42:40,880 --> 00:42:43,120
Speaker 1: which is which is reason enough they'll leave it alone.

1005
00:42:42,960 --> 00:42:44,960
Speaker 2: Us, right, Yeah, And Jordan, we love that you've got

1006
00:42:44,960 --> 00:42:47,480
Speaker 2: this problem of it's not a problem. I guess, like

1007
00:42:47,520 --> 00:42:48,960
Speaker 2: you've just got all this money on hand and trying

1008
00:42:48,960 --> 00:42:51,160
Speaker 2: to figure out how to how to invest more of

1009
00:42:51,200 --> 00:42:53,839
Speaker 2: your dollars. It's not normally a problem folks have. And

1010
00:42:53,920 --> 00:42:56,160
Speaker 2: kind of going back to what we started a whole

1011
00:42:56,200 --> 00:42:58,040
Speaker 2: the whole episode with when we were talking with Victor,

1012
00:42:58,080 --> 00:42:59,200
Speaker 2: and I think there are a lot of folks on

1013
00:42:59,239 --> 00:43:02,040
Speaker 2: the other end of the spectrum. They're thinking, dudes, that is

1014
00:43:02,080 --> 00:43:04,719
Speaker 2: not a problem to have, like that's a luxury. And well,

1015
00:43:04,719 --> 00:43:07,160
Speaker 2: that's true if someone like Jordan didn't get there from

1016
00:43:07,200 --> 00:43:10,120
Speaker 2: just kicking back and not making sacrifices on the front

1017
00:43:10,160 --> 00:43:13,000
Speaker 2: and to be able to earn and invest more of

1018
00:43:13,040 --> 00:43:13,480
Speaker 2: his dollars.

1019
00:43:13,560 --> 00:43:16,400
Speaker 1: One similar to Victor having that timeline two to three years,

1020
00:43:16,560 --> 00:43:18,799
Speaker 1: Victor's got an eight year timeline to reach this goal, right,

1021
00:43:18,800 --> 00:43:20,239
Speaker 1: So he's got a lot of time that he can

1022
00:43:20,280 --> 00:43:23,000
Speaker 1: put in to funnel a lot of dough into these accounts.

1023
00:43:23,040 --> 00:43:24,880
Speaker 1: And if you wants to retire forty eight, he'll probably

1024
00:43:24,880 --> 00:43:27,200
Speaker 1: need to write because that is a big goal that

1025
00:43:27,280 --> 00:43:29,439
Speaker 1: most people find it hard to accomplish. But if Jordan

1026
00:43:29,480 --> 00:43:31,200
Speaker 1: sets his mind to it, man, and he's got a

1027
00:43:31,239 --> 00:43:33,319
Speaker 1: massive savings, right, he can totally do it. That's right.

1028
00:43:33,320 --> 00:43:34,279
Speaker 1: All right, we got more to get to.

1029
00:43:34,320 --> 00:43:37,879
Speaker 2: We're gonna talk about ways to get your insurance premiums down.

1030
00:43:37,920 --> 00:43:40,000
Speaker 2: We'll get to that and more right after this.

1031
00:43:48,200 --> 00:43:50,840
Speaker 1: All right, Matt, we're back. We're let's talk about insurance

1032
00:43:51,000 --> 00:43:53,480
Speaker 1: here for a seconds. Round it out. There's been a

1033
00:43:53,480 --> 00:43:56,800
Speaker 1: lot written about how expensive insurance is, getting home insurance,

1034
00:43:56,880 --> 00:43:59,279
Speaker 1: car insurance, and that is one of the things like

1035
00:43:59,320 --> 00:44:02,239
Speaker 1: that is making inflation feel even stickier. Especially over the

1036
00:44:02,280 --> 00:44:05,120
Speaker 1: past year, rates on both of those things have gone

1037
00:44:05,160 --> 00:44:08,080
Speaker 1: up sky high, especially in a couple of states in particular.

1038
00:44:08,120 --> 00:44:10,279
Speaker 1: But that prompts us to take the Facebook question of

1039
00:44:10,320 --> 00:44:12,720
Speaker 1: the week. This one comes from James and he says,

1040
00:44:12,760 --> 00:44:15,360
Speaker 1: we are entering the world of teen drivers soon enough.

1041
00:44:15,560 --> 00:44:18,480
Speaker 1: What is the best way to approach insurance with teen drivers?

1042
00:44:18,640 --> 00:44:22,360
Speaker 1: Separate policies, separate vehicles titled in their name and insured separately.

1043
00:44:22,600 --> 00:44:25,279
Speaker 1: At what point am I obligated to inform insurers that

1044
00:44:25,360 --> 00:44:27,680
Speaker 1: a teen is driving in driver's training once they get

1045
00:44:27,719 --> 00:44:30,480
Speaker 1: their permit, et cetera. Or any other advice y'all might

1046
00:44:30,520 --> 00:44:32,600
Speaker 1: have for me regarding teens in car insurance.

1047
00:44:32,800 --> 00:44:36,000
Speaker 2: Thanks, oh, James, good luck here. You don't need to

1048
00:44:36,040 --> 00:44:38,719
Speaker 2: hear us say this. Obviously, adding a teen driver to

1049
00:44:38,840 --> 00:44:42,640
Speaker 2: your policy is likely going to increase your premiums significantly.

1050
00:44:42,760 --> 00:44:45,600
Speaker 1: I feel like, James, I can't commiserate to the same extent.

1051
00:44:45,760 --> 00:44:49,200
Speaker 1: But we're starting to get into orthodontia now in our households,

1052
00:44:49,239 --> 00:44:52,080
Speaker 1: and I'm feeling your pain because orthodontia is one of

1053
00:44:52,080 --> 00:44:54,279
Speaker 1: those things that you like, you hope your kids have

1054
00:44:54,320 --> 00:44:56,880
Speaker 1: perfect teeth. They don't, and it costs a lot of

1055
00:44:56,880 --> 00:44:59,440
Speaker 1: money to, yeah, make me fix them up. Not gonna

1056
00:44:59,440 --> 00:45:01,239
Speaker 1: lie frugal cheap Joel. We haven't.

1057
00:45:01,280 --> 00:45:02,640
Speaker 2: We still haven't taken our kids in to.

1058
00:45:02,600 --> 00:45:04,880
Speaker 1: See the dentist at all. And so it's one of those.

1059
00:45:04,719 --> 00:45:06,360
Speaker 2: Things where I'm like, I kind of like the British

1060
00:45:06,400 --> 00:45:08,560
Speaker 2: way of doing things, like the European way. Do you

1061
00:45:08,880 --> 00:45:10,719
Speaker 2: Does everyone need to have perfectly straight teeth?

1062
00:45:10,719 --> 00:45:12,200
Speaker 1: I don't know, coming from a guy who didn't have

1063
00:45:12,239 --> 00:45:14,759
Speaker 1: to have racist and as perfectly straight teeth, perfectly straight

1064
00:45:14,800 --> 00:45:16,200
Speaker 1: teeth like pretty much do though.

1065
00:45:16,680 --> 00:45:19,040
Speaker 2: Okay, I'll take that as a frugal compliment.

1066
00:45:19,120 --> 00:45:21,680
Speaker 1: I'm saying if they were jacked up.

1067
00:45:22,680 --> 00:45:24,960
Speaker 2: I agree, I totally understand. Maybe I'm speaking from a

1068
00:45:25,880 --> 00:45:29,920
Speaker 2: position of having a privileged smile. Perhaps droll it's periodontal

1069
00:45:29,920 --> 00:45:32,600
Speaker 2: privilege here. Isn't that something else?

1070
00:45:32,680 --> 00:45:33,080
Speaker 1: I don't know.

1071
00:45:33,520 --> 00:45:36,200
Speaker 2: So first of all, we're talking about when to notify

1072
00:45:36,360 --> 00:45:39,040
Speaker 2: your ensure, Like I don't think you need to add

1073
00:45:39,080 --> 00:45:41,480
Speaker 2: them until they actually have an official license, but you

1074
00:45:41,520 --> 00:45:44,960
Speaker 2: need to check with your state's rules and so like,

1075
00:45:45,120 --> 00:45:47,040
Speaker 2: for instance, I know in Georgia you don't necessarily have

1076
00:45:47,080 --> 00:45:48,520
Speaker 2: to add them to the policy until you have a

1077
00:45:49,000 --> 00:45:51,680
Speaker 2: until you have the license, Like while they are trying

1078
00:45:51,719 --> 00:45:53,720
Speaker 2: it out and they're learning and they've got the learners permit,

1079
00:45:53,960 --> 00:45:57,400
Speaker 2: you don't need to yet experience the increased height premiums

1080
00:45:57,440 --> 00:45:58,120
Speaker 2: at that point.

1081
00:45:57,880 --> 00:45:59,640
Speaker 1: Which is nice because my nephew is in that space

1082
00:45:59,719 --> 00:46:01,360
Speaker 1: right now. He's got the permit, not the license. You

1083
00:46:01,400 --> 00:46:02,800
Speaker 1: don't have to add him yet and spend all that

1084
00:46:02,840 --> 00:46:05,640
Speaker 1: extra money. But you still drive, you still learn along

1085
00:46:05,640 --> 00:46:05,919
Speaker 1: the way.

1086
00:46:06,000 --> 00:46:08,480
Speaker 2: Yeah, I couldn't imagine. I knew that kid when he

1087
00:46:08,520 --> 00:46:11,200
Speaker 2: was just like a little guy, and I actually haven't

1088
00:46:11,200 --> 00:46:12,880
Speaker 2: seen him in years, so it's crazy. He told me

1089
00:46:12,920 --> 00:46:14,200
Speaker 2: he's really tall, right, Yeah, he's.

1090
00:46:14,040 --> 00:46:18,240
Speaker 1: Getting it, which doesn't he's a Lars card.

1091
00:46:18,600 --> 00:46:22,040
Speaker 2: But James, the direction I want to go is to

1092
00:46:22,400 --> 00:46:25,200
Speaker 2: ask the question do your kids really want to drive?

1093
00:46:26,040 --> 00:46:27,879
Speaker 2: And the reason I bring this up is because it's

1094
00:46:27,920 --> 00:46:32,120
Speaker 2: it's a relatively new phenomenon that kids are delaying doing

1095
00:46:32,160 --> 00:46:34,520
Speaker 2: different things in life, like getting a license. They are

1096
00:46:34,600 --> 00:46:38,040
Speaker 2: less interested in driving, and in many ways I don't

1097
00:46:38,040 --> 00:46:40,879
Speaker 2: get it because our generation was just itching to get

1098
00:46:40,880 --> 00:46:41,480
Speaker 2: behind the wheel.

1099
00:46:41,480 --> 00:46:43,560
Speaker 1: I think the new version of childhood freedom is like

1100
00:46:43,719 --> 00:46:45,800
Speaker 1: Xbox Live or something like that. Or he used to

1101
00:46:45,840 --> 00:46:47,000
Speaker 1: be hopping in the car. He used to be having

1102
00:46:47,000 --> 00:46:49,160
Speaker 1: your license and be able to go anywhere you want it.

1103
00:46:49,200 --> 00:46:49,640
Speaker 1: That's true.

1104
00:46:50,000 --> 00:46:51,760
Speaker 2: So the reason I bring this up, though, is because

1105
00:46:51,800 --> 00:46:54,640
Speaker 2: I want you to ask yourself if biking or if

1106
00:46:54,760 --> 00:46:59,040
Speaker 2: walking micro modes of transportation, if those make more sense

1107
00:46:59,040 --> 00:47:00,799
Speaker 2: for where you live, because I think it's worth having

1108
00:47:00,840 --> 00:47:03,840
Speaker 2: the discussion considering how much it costs to have a

1109
00:47:03,840 --> 00:47:06,560
Speaker 2: teenage driver in the house. This is so it's funny

1110
00:47:06,560 --> 00:47:10,520
Speaker 2: because you're talking about the orthodontia, the proximity to like

1111
00:47:10,600 --> 00:47:13,080
Speaker 2: our little town square, Joel, like that our town center.

1112
00:47:13,600 --> 00:47:14,479
Speaker 1: It's literally something.

1113
00:47:14,480 --> 00:47:16,680
Speaker 2: It's a conversation that Kate and are having as we

1114
00:47:16,719 --> 00:47:18,520
Speaker 2: are considering whether or not we move or not, or

1115
00:47:18,600 --> 00:47:21,120
Speaker 2: whether you know, like right now, you know I've shared

1116
00:47:21,120 --> 00:47:23,400
Speaker 2: this recently. We're planning to move forward with an addition.

1117
00:47:23,680 --> 00:47:26,840
Speaker 2: But a part of the decision making process was, like

1118
00:47:27,040 --> 00:47:28,919
Speaker 2: there's a check in the box and the column side

1119
00:47:28,960 --> 00:47:32,920
Speaker 2: of stay and add on was the proximity to plentiful

1120
00:47:32,960 --> 00:47:36,840
Speaker 2: options for our teenagers to be able to walk or

1121
00:47:36,920 --> 00:47:40,200
Speaker 2: ride bikes or e bikes to work via paths and

1122
00:47:40,239 --> 00:47:43,600
Speaker 2: trails and even on the road, which I'm sure there's

1123
00:47:43,640 --> 00:47:45,760
Speaker 2: a lot of folks that are like my kids would

1124
00:47:45,760 --> 00:47:48,319
Speaker 2: be horrified to hear that I would make them bike

1125
00:47:49,120 --> 00:47:51,080
Speaker 2: or walk toward. But we're fortunate to be pre dang

1126
00:47:51,120 --> 00:47:54,120
Speaker 2: close to some great restaurants where there's a lot of

1127
00:47:54,120 --> 00:47:56,160
Speaker 2: teenagers scoop and ice cream doing that kind of thing.

1128
00:47:56,160 --> 00:47:58,279
Speaker 2: And so it's literally it needs to be a part

1129
00:47:58,280 --> 00:48:00,520
Speaker 2: of the decision making process on the front and before

1130
00:48:00,600 --> 00:48:01,480
Speaker 2: something like a move.

1131
00:48:01,520 --> 00:48:01,800
Speaker 1: Perhaps.

1132
00:48:01,880 --> 00:48:04,840
Speaker 2: Yeah, I know it's not much consolation if this is

1133
00:48:04,920 --> 00:48:06,840
Speaker 2: the situation that you already find yourself in, But I

1134
00:48:06,840 --> 00:48:08,799
Speaker 2: guess I'm putting this out there for folks who might

1135
00:48:08,840 --> 00:48:11,560
Speaker 2: be in our sort of vote, right like where you've

1136
00:48:11,600 --> 00:48:14,920
Speaker 2: got elementary age kids and you're thinking about maybe making

1137
00:48:14,920 --> 00:48:18,080
Speaker 2: the switch, moving somewhere where maybe you're a little more isolated,

1138
00:48:18,120 --> 00:48:19,879
Speaker 2: but it does give you more room. Well, there are

1139
00:48:20,040 --> 00:48:23,439
Speaker 2: other additional costs associated with that, and I think having

1140
00:48:23,520 --> 00:48:27,279
Speaker 2: multiple vehicles, multiple kids who are insured as like a

1141
00:48:27,320 --> 00:48:30,440
Speaker 2: base minimum, that's something to consider, especially when you considered

1142
00:48:30,640 --> 00:48:32,239
Speaker 2: how much money you're going to spend doing this.

1143
00:48:32,320 --> 00:48:33,960
Speaker 1: We're always thinking and that's part of the reason we

1144
00:48:33,960 --> 00:48:35,480
Speaker 1: moved to the burd We moved to matt was it

1145
00:48:35,520 --> 00:48:38,400
Speaker 1: had the most walkable, bikeable action for us, so we

1146
00:48:38,719 --> 00:48:41,279
Speaker 1: could you could remain in one car family, and it

1147
00:48:41,760 --> 00:48:43,480
Speaker 1: makes a huge difference in quality of life to be

1148
00:48:43,520 --> 00:48:45,040
Speaker 1: able to walk and bike to most of the places

1149
00:48:45,040 --> 00:48:47,880
Speaker 1: you want to visit. And so yeah, maybe in James

1150
00:48:47,960 --> 00:48:50,239
Speaker 1: and his teenager's case that's not possible. I don't know,

1151
00:48:50,480 --> 00:48:52,600
Speaker 1: but it's at least with then worth asking the question, well,

1152
00:48:52,600 --> 00:48:54,600
Speaker 1: how badly do you want to drive? Because hey, let's

1153
00:48:54,600 --> 00:48:56,919
Speaker 1: talk about how much it's actually going to cost. It's

1154
00:48:57,040 --> 00:49:00,480
Speaker 1: worth having and you need to have a frank discussion

1155
00:49:00,760 --> 00:49:02,959
Speaker 1: about how much extra money this is going to cost

1156
00:49:02,960 --> 00:49:05,759
Speaker 1: your family as you enter this new phase. You're not

1157
00:49:05,760 --> 00:49:08,120
Speaker 1: trying to make your kid feel bad like I don't

1158
00:49:08,520 --> 00:49:11,360
Speaker 1: blame my eight year old about her orthodontia needs and

1159
00:49:11,719 --> 00:49:13,680
Speaker 1: you cost me three grand this month. Right, I'm not

1160
00:49:13,719 --> 00:49:15,520
Speaker 1: telling her that is this is who I am, Right,

1161
00:49:16,360 --> 00:49:18,719
Speaker 1: But you do want them to understand and not with

1162
00:49:18,840 --> 00:49:21,800
Speaker 1: orthodontic because again that's not really something you can change,

1163
00:49:21,800 --> 00:49:24,080
Speaker 1: but you want them to understand the financial reality of

1164
00:49:24,120 --> 00:49:27,200
Speaker 1: the situation. Listener Billy Matt in the comments to this one,

1165
00:49:27,239 --> 00:49:29,120
Speaker 1: he said that he makes his kids pay for the

1166
00:49:29,120 --> 00:49:31,600
Speaker 1: increased cost of insurance and fuel. He basically said, Hey,

1167
00:49:31,640 --> 00:49:33,359
Speaker 1: I used to pay this, Now I pay this, And

1168
00:49:33,760 --> 00:49:36,359
Speaker 1: I think that's a totally fine approach. Parents often feel

1169
00:49:36,360 --> 00:49:38,319
Speaker 1: like that's an expense they have to take on that

1170
00:49:38,320 --> 00:49:40,880
Speaker 1: they have to shoulder, and you certainly can, I guess

1171
00:49:40,880 --> 00:49:43,600
Speaker 1: if you want to be an incredibly benevolent parent, But

1172
00:49:43,600 --> 00:49:46,480
Speaker 1: there's nothing wrong with having a discussion about how badly

1173
00:49:46,520 --> 00:49:49,040
Speaker 1: your kids want to drive and how much extra it's

1174
00:49:49,080 --> 00:49:52,160
Speaker 1: going to cost the family and their role in that, right.

1175
00:49:52,160 --> 00:49:54,040
Speaker 1: I think it's a good idea, no matter what, to

1176
00:49:54,120 --> 00:49:56,320
Speaker 1: at least ask them to pitch in cover a portion

1177
00:49:56,400 --> 00:49:58,759
Speaker 1: of the costs. Money, of course, we all know doesn't

1178
00:49:58,760 --> 00:50:00,480
Speaker 1: grow on trees, but you got to be able to

1179
00:50:00,520 --> 00:50:03,200
Speaker 1: and willing to talk about those things openly, so your

1180
00:50:03,280 --> 00:50:05,879
Speaker 1: child understands the tradeoffs, not like wait a second, Okay, yeah,

1181
00:50:05,960 --> 00:50:08,120
Speaker 1: I was hoping to drive, but I didn't realize it

1182
00:50:08,160 --> 00:50:09,560
Speaker 1: was going to cost. And I think that average to

1183
00:50:09,600 --> 00:50:12,480
Speaker 1: the average students, like two fifty a month to add

1184
00:50:12,560 --> 00:50:15,440
Speaker 1: a teenager to your insurance. Do they want to drive

1185
00:50:15,480 --> 00:50:17,040
Speaker 1: that bad three grand a years? Do they want to

1186
00:50:17,080 --> 00:50:19,799
Speaker 1: fork that over? It depends and that's before, by the way,

1187
00:50:19,840 --> 00:50:21,400
Speaker 1: we've been talking about the cost of the car.

1188
00:50:21,480 --> 00:50:24,000
Speaker 2: They might be sure, yeah, dude, So I don't know.

1189
00:50:24,040 --> 00:50:26,160
Speaker 2: I can't remember if I've shared the actual figures of

1190
00:50:26,239 --> 00:50:29,759
Speaker 2: my buddy. They've got four kids. Uh, the oldest is

1191
00:50:29,800 --> 00:50:34,200
Speaker 2: in college, but he spends eleven thousand dollars, oh my god,

1192
00:50:34,280 --> 00:50:36,600
Speaker 2: annually on car insurance. So this is and this is

1193
00:50:36,600 --> 00:50:39,120
Speaker 2: after the biggest discount that he gets, which is by

1194
00:50:39,120 --> 00:50:41,200
Speaker 2: pre paying it like paying it all up front, which

1195
00:50:41,200 --> 00:50:43,840
Speaker 2: is an eighteen hundred dollars discount. So it's a massive discount.

1196
00:50:44,239 --> 00:50:47,360
Speaker 2: But he's still paying eleven thousand dollars. Granted, there's maybe

1197
00:50:47,360 --> 00:50:50,040
Speaker 2: some tickets or some accidents involved, maybe some claims.

1198
00:50:50,040 --> 00:50:51,640
Speaker 1: They're often are there's teenagers on.

1199
00:50:53,160 --> 00:50:53,200
Speaker 2: It.

1200
00:50:53,640 --> 00:50:54,160
Speaker 1: For my parents.

1201
00:50:54,280 --> 00:50:57,680
Speaker 2: I counted for some of those additional that additional premium hike,

1202
00:50:57,760 --> 00:51:01,560
Speaker 2: but man, that for me was the wake up to realize, oh, well,

1203
00:51:01,560 --> 00:51:03,400
Speaker 2: if we move like it's not even going to be

1204
00:51:03,400 --> 00:51:07,319
Speaker 2: an option most likely to not have cars for the kids.

1205
00:51:07,320 --> 00:51:10,760
Speaker 2: And again, granted, I'm sure if this was a conversation,

1206
00:51:10,800 --> 00:51:13,359
Speaker 2: an active conversation I was having with a sixteen year

1207
00:51:13,360 --> 00:51:15,520
Speaker 2: old or a seventeen year old, it would be very different,

1208
00:51:15,520 --> 00:51:17,760
Speaker 2: and they are certainly going to have their own opinions

1209
00:51:17,800 --> 00:51:19,600
Speaker 2: as well. But I think the guy that you mentioned

1210
00:51:19,600 --> 00:51:22,120
Speaker 2: where they're getting the kids and the family in on

1211
00:51:22,160 --> 00:51:24,279
Speaker 2: the action to help them to understand what this is

1212
00:51:24,360 --> 00:51:27,200
Speaker 2: costing the family, that's a healthy way to approach it.

1213
00:51:27,280 --> 00:51:30,120
Speaker 2: But I would say the number one tip after maybe

1214
00:51:30,160 --> 00:51:33,960
Speaker 2: not insuring kids because they're not driving, is to just

1215
00:51:33,960 --> 00:51:36,000
Speaker 2: shop around. Right, assuming they are, you are going to

1216
00:51:36,040 --> 00:51:37,719
Speaker 2: take more of the traditional route. Hey, what they are

1217
00:51:37,719 --> 00:51:40,000
Speaker 2: going to get a car? Well, look around see how

1218
00:51:40,080 --> 00:51:42,399
Speaker 2: much adding a team to your policy is going to cost.

1219
00:51:42,440 --> 00:51:46,799
Speaker 2: You get quotes from multiple providers. Trusted Choice. That's a

1220
00:51:46,800 --> 00:51:50,279
Speaker 2: great site to find a local independent agent who isn't

1221
00:51:50,280 --> 00:51:52,799
Speaker 2: tied to one particular insurance company. I really like that

1222
00:51:52,960 --> 00:51:55,120
Speaker 2: where they're they're not beholden, they're not trying to sell

1223
00:51:55,160 --> 00:51:57,200
Speaker 2: specific policies. They're just trying to get you the best price.

1224
00:51:57,800 --> 00:52:00,840
Speaker 2: But with insurance rates, just going through the roof, loyalty

1225
00:52:00,920 --> 00:52:03,120
Speaker 2: should be out the window, which is why shopping around

1226
00:52:03,160 --> 00:52:03,560
Speaker 2: is going to.

1227
00:52:03,840 --> 00:52:06,360
Speaker 1: Yield you the best results. Man, I'm very promiscuous on

1228
00:52:06,400 --> 00:52:07,399
Speaker 1: the insurance front, heay.

1229
00:52:07,719 --> 00:52:10,560
Speaker 2: In this case, it doesn't pay to be faithful, but

1230
00:52:12,000 --> 00:52:14,640
Speaker 2: check with your current insurance provided because I think you

1231
00:52:14,840 --> 00:52:17,080
Speaker 2: might be able to get a small concession. But just

1232
00:52:17,120 --> 00:52:19,400
Speaker 2: shopping the open market like that is going to be

1233
00:52:19,400 --> 00:52:21,640
Speaker 2: the best way to find the biggest savings. It's hard

1234
00:52:21,680 --> 00:52:23,680
Speaker 2: to predict upfront who is going to give you the

1235
00:52:23,719 --> 00:52:26,960
Speaker 2: best deal, and so in this way it pays like

1236
00:52:27,000 --> 00:52:28,360
Speaker 2: you want to try, you want to knock on a

1237
00:52:28,360 --> 00:52:29,520
Speaker 2: bunch of different doors, you want to make a ton

1238
00:52:29,560 --> 00:52:30,960
Speaker 2: of different phone calls, you want to send a bunch

1239
00:52:30,960 --> 00:52:32,960
Speaker 2: of different emails, because it just kind of depends on

1240
00:52:33,000 --> 00:52:35,759
Speaker 2: some of the different programs that they have and what

1241
00:52:35,800 --> 00:52:38,759
Speaker 2: it is that they're willing to credit you. Like, they're

1242
00:52:38,800 --> 00:52:40,400
Speaker 2: just a lot of different ways you can get discounts

1243
00:52:40,400 --> 00:52:40,680
Speaker 2: as well.

1244
00:52:40,760 --> 00:52:43,840
Speaker 1: Yeah, like does your child have great grades and be

1245
00:52:44,000 --> 00:52:46,200
Speaker 1: average is what most insurers are looking for that can

1246
00:52:46,200 --> 00:52:48,360
Speaker 1: help lower the cost. Can they take a safe driving

1247
00:52:48,360 --> 00:52:50,520
Speaker 1: course like a lot of those can be done online

1248
00:52:50,560 --> 00:52:53,800
Speaker 1: that can also help. And you asked about separate policies

1249
00:52:53,920 --> 00:52:56,919
Speaker 1: versus putting them on your own policy. It's typically best

1250
00:52:56,920 --> 00:52:59,640
Speaker 1: to include them on your specific policy, at least if

1251
00:52:59,640 --> 00:53:02,680
Speaker 1: we're talking about minimizing the amount out of pocket for

1252
00:53:02,719 --> 00:53:05,520
Speaker 1: insurance costs overall. But it's at least worth getting a quote.

1253
00:53:05,520 --> 00:53:07,799
Speaker 1: I would say in the other direction, like never hurts,

1254
00:53:07,840 --> 00:53:10,440
Speaker 1: dip your toe in the waters and just see. But

1255
00:53:10,520 --> 00:53:12,440
Speaker 1: like heeding them on yours is going to allow them

1256
00:53:12,440 --> 00:53:14,880
Speaker 1: to also drive your other vehicles that are also covered

1257
00:53:15,280 --> 00:53:17,320
Speaker 1: under that policy. If that's something you care about.

1258
00:53:17,600 --> 00:53:21,719
Speaker 2: Yeah, let's not forget increasing your deductibles because you don't

1259
00:53:21,719 --> 00:53:23,399
Speaker 2: want to have that set out less five hundred dollars

1260
00:53:23,400 --> 00:53:25,960
Speaker 2: because the idea is that you aren't going to make

1261
00:53:26,000 --> 00:53:26,520
Speaker 2: any claims.

1262
00:53:26,560 --> 00:53:28,719
Speaker 1: Is that that also means self ensuring, which means having

1263
00:53:28,719 --> 00:53:30,719
Speaker 1: more money in same ash because guess what with a

1264
00:53:30,719 --> 00:53:33,200
Speaker 1: teenage driver, likelihood of an accident goes up to.

1265
00:53:33,280 --> 00:53:36,920
Speaker 2: And it means not necessarily putting them in the nicest vehicle,

1266
00:53:37,200 --> 00:53:39,920
Speaker 2: Like guess what a vehicle that you drove ten years

1267
00:53:39,960 --> 00:53:42,520
Speaker 2: ago because it was safe, still predating safe today. It's

1268
00:53:42,560 --> 00:53:44,560
Speaker 2: not likely the safest thing that's out there on the road,

1269
00:53:44,560 --> 00:53:47,120
Speaker 2: but obviously you don't want to stick them in a

1270
00:53:47,200 --> 00:53:49,080
Speaker 2: two year old Chevy Corvette or something.

1271
00:53:49,360 --> 00:53:53,120
Speaker 1: So my little sister is selling her twenty twelve Honda Cibek.

1272
00:53:53,160 --> 00:53:57,719
Speaker 1: She's upgrading to a new Tesla, but her twenty twelve

1273
00:53:57,760 --> 00:54:00,800
Speaker 1: siven ain see it might go to twenty twelve Civic.

1274
00:54:00,880 --> 00:54:03,520
Speaker 2: What a great car for my nephew or a teenage driver.

1275
00:54:03,640 --> 00:54:05,560
Speaker 2: This first car that's perfect makes so much sense. It's

1276
00:54:05,560 --> 00:54:06,080
Speaker 2: a beautiful thing.

1277
00:54:06,080 --> 00:54:08,040
Speaker 1: And then when you're talking about something that's got that

1278
00:54:08,120 --> 00:54:10,560
Speaker 1: many miles, it's that old, you're talking about not having

1279
00:54:10,600 --> 00:54:12,080
Speaker 1: to have full coverage on it, which means, yeah, you're

1280
00:54:12,080 --> 00:54:14,279
Speaker 1: gonna save one it save a buttload. Dude.

1281
00:54:14,320 --> 00:54:17,800
Speaker 2: I'm so happy for your older sister that has the

1282
00:54:17,840 --> 00:54:20,200
Speaker 2: nephew he's getting ready to drive, not because she's going

1283
00:54:20,239 --> 00:54:21,960
Speaker 2: to have to start paying to ensure him because he

1284
00:54:21,960 --> 00:54:25,920
Speaker 2: wants to drive, but because to have a twenty Dude. Seriously,

1285
00:54:25,920 --> 00:54:28,160
Speaker 2: I feel like a twenty twelve like a what was

1286
00:54:28,200 --> 00:54:31,920
Speaker 2: that a twelve year old Honda Civic that's like, is

1287
00:54:31,920 --> 00:54:33,400
Speaker 2: there a better starter car.

1288
00:54:33,360 --> 00:54:36,120
Speaker 1: For a teenager to learn on gray fuel economy?

1289
00:54:36,160 --> 00:54:36,319
Speaker 2: Too?

1290
00:54:36,360 --> 00:54:39,839
Speaker 1: Right? And just super cheap, super cheap to ensure and

1291
00:54:40,320 --> 00:54:41,719
Speaker 1: all of those sorts of things are going to help

1292
00:54:41,719 --> 00:54:44,440
Speaker 1: produce this massive cost that you incur when your kid

1293
00:54:44,480 --> 00:54:45,200
Speaker 1: turns of age.

1294
00:54:45,239 --> 00:54:47,879
Speaker 2: That's right, it's perfection. So, James, we hope that gives

1295
00:54:47,920 --> 00:54:50,399
Speaker 2: you a lot to consider. But Joel, something else that's

1296
00:54:50,440 --> 00:54:54,800
Speaker 2: perfection is this Keller Pills. This is an unfiltered pilsner

1297
00:54:54,920 --> 00:54:56,640
Speaker 2: by High Wire Brewing Thoughts.

1298
00:54:57,000 --> 00:55:00,600
Speaker 1: I'm a fan of unfiltered because unfiltered means more flavor. Yeah,

1299
00:55:00,640 --> 00:55:02,839
Speaker 1: that's exactly how I would in filter my beer. Man,

1300
00:55:02,880 --> 00:55:06,000
Speaker 1: all right, this one was refreshing. It was low key,

1301
00:55:06,239 --> 00:55:07,680
Speaker 1: but it also was packed full of pills, and the

1302
00:55:07,719 --> 00:55:10,399
Speaker 1: flavor lots of pills can be like almost watery. This

1303
00:55:10,440 --> 00:55:12,160
Speaker 1: one was not. This one tastes like beer.

1304
00:55:12,320 --> 00:55:15,320
Speaker 2: It strikes the right balance. Yeah, it's much. It's a

1305
00:55:15,320 --> 00:55:18,040
Speaker 2: pretty dang light beer. But this is like the I

1306
00:55:18,080 --> 00:55:20,080
Speaker 2: don't know, I'm not watching a whole lot of sports

1307
00:55:20,600 --> 00:55:22,239
Speaker 2: these days in my life, but like, this is the

1308
00:55:22,280 --> 00:55:23,520
Speaker 2: kind of beer I want to enjoy, Like when I'm

1309
00:55:23,520 --> 00:55:25,600
Speaker 2: watching a baseball game, yeah, or watching a soccer match

1310
00:55:25,640 --> 00:55:28,400
Speaker 2: on TV. There's flavor, but not enough flavor to distract

1311
00:55:28,400 --> 00:55:31,760
Speaker 2: you from what really matters, from yelling goal. Yeah, yeah,

1312
00:55:31,800 --> 00:55:34,560
Speaker 2: exactly if you've not had Have we had a Highware

1313
00:55:34,600 --> 00:55:35,640
Speaker 2: beer on the show before?

1314
00:55:35,680 --> 00:55:36,440
Speaker 1: I would hope we have.

1315
00:55:36,880 --> 00:55:38,200
Speaker 2: Yeah, I'll maybe I'll look it up.

1316
00:55:38,239 --> 00:55:41,200
Speaker 1: But they're out of Asheville, North Carolina, so if you

1317
00:55:41,239 --> 00:55:42,960
Speaker 1: are in the area, look them up. They make some

1318
00:55:43,000 --> 00:55:46,239
Speaker 1: good stuff. Southeastern Beer Mecca. All right, man, that's gonna

1319
00:55:46,239 --> 00:55:48,560
Speaker 1: do it for this one. We'll have links to some

1320
00:55:48,600 --> 00:55:50,759
Speaker 1: of the resources we mentioned up in the show notes

1321
00:55:50,800 --> 00:55:53,840
Speaker 1: on our website at howtomoney dot com, and don't forget

1322
00:55:53,840 --> 00:55:56,120
Speaker 1: to sign up for the how to Money newsletter also

1323
00:55:56,160 --> 00:55:58,040
Speaker 1: at how to money dot com slash newsletter.

1324
00:55:58,120 --> 00:55:59,960
Speaker 2: That's right, buddy, But yeah, that'll be it for the

1325
00:56:00,120 --> 00:56:17,959
Speaker 2: episode until next time. Best Friends out, Best Friends out, How.

1326
00:56:17,840 --> 00:56:20,319
Speaker 1: The Money newsletter at howmoney dot com slash You said

1327
00:56:20,320 --> 00:56:25,000
Speaker 1: something funny, how Money now? Brown Cow? How about how

1328
00:56:25,440 --> 00:56:26,120
Speaker 1: Shakespeare