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

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Speaker 1: and today we are answering your listener questions. That is right,

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Speaker 1: it's a Monday Ask How the Money episode where we

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Speaker 1: field questions from our listeners. We might even have a

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Speaker 1: question or two and here from people who don't listen

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Speaker 1: to the show. They just happened to run across our

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Speaker 1: website and saw, oh I can ask a question. But

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Speaker 1: if that's the case, then they won't actually hear their answer,

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Speaker 1: So I don't know how that works out. That's a

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Speaker 1: conundrum right there. They have to listen now that they

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Speaker 1: submitted a question. But yeah, man, I'm looking forward to

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Speaker 1: getting to our five questions today. We have one about

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Speaker 1: just hanging with friends on the cheap, now that we

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Speaker 1: are getting back to our social lives, what that looks

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Speaker 1: like and how you can do that on the cheap.

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Speaker 1: We're gonna get to a listener who has a question

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Speaker 1: about helping his parents with their money. Uh. And we're

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Speaker 1: gonna talk about if it is possible to contribute to

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Speaker 1: both an H s A and n F s A uh.

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Speaker 1: And not only is it possible, but then doesn't make

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Speaker 1: sense uh if that's an option available to them. So

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Speaker 1: I'm looking forward to those questions plus two others today

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Speaker 1: on this episode. Buddy sounds good man, it's a good lineup.

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Speaker 1: But yeah, before that, I wanted to mention, uh, what's

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Speaker 1: the subscription service you've got here? So I tested something out.

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Speaker 1: I want to give it a shot because my wife's dad,

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Speaker 1: my father in law, his wife told me, Hey, we've

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Speaker 1: been doing you know, one of those meal kit delivery

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Speaker 1: services at home and we're loving it. And I was like,

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Speaker 1: all right, sounds expensive, sounds like not my jam, but

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Speaker 1: you get some sort of cut yeah exactly, why why

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Speaker 1: are you trying to sell me on this? It's like,

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Speaker 1: but tell me more, um, And you know, it did

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Speaker 1: sound like for for them and their lifestyle, they're digging in,

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Speaker 1: it's worth the worth the money for them, But it

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Speaker 1: sounded like something I would never do, just um, you know,

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Speaker 1: we're traditional grocery store folks man and then like making

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Speaker 1: our meals the old fashioned way. But the ship had

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Speaker 1: some sign up thing that I could test out for free.

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Speaker 1: We could literally get three meals in one week for

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Speaker 1: nine dollars, like all you had to pay with shipping,

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Speaker 1: And I was like, um, three three meals for nine dollars.

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Speaker 1: That's cheaper than we could do it for any other way.

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Speaker 1: So we'll give it a shot. We'll give it a go.

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Speaker 1: And so we tested it out. Well, are you willing

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Speaker 1: to say which company it was? Are you trying to

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Speaker 1: avoid the name? No, it's fine, Yeah, it's fine. It

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Speaker 1: was Hello Fresh, Okay, And to be honest, it was

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Speaker 1: a really good experience. I was like, this is for

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Speaker 1: nine dollars, three full fledged meals in my family that

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Speaker 1: our families have you with. And my wife loved it

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Speaker 1: because she loves kind of how all the ingredients are

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Speaker 1: kind of packaged and given to you, because neither she

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Speaker 1: or I are incredible cooks, unlike you know, you and

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Speaker 1: your wife, You guys have some serious culinary chops. And

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Speaker 1: by me and my wife you just mean Kate specifically,

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Speaker 1: and she handles all the cooking. She loves it. She

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Speaker 1: could literally open up her own restaurant and succeed. I

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Speaker 1: think she could. Yeah, she could. And if it wasn't

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Speaker 1: for her, I would literally just be eating, Like at

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Speaker 1: this point in my life, I would just be eating

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Speaker 1: to survive. You Like, like some people say that no

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Speaker 1: I live to eat, No, I eat to live like

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Speaker 1: that's where I am right now in my life. Yeah. Well,

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Speaker 1: so we tested this out and the food was great.

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Speaker 1: It was super chill. Nice to be able to make

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Speaker 1: it like that, um, and definitely worth the not so

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Speaker 1: expensive gamble of nine dollars out. Yeah, But I mean

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Speaker 1: the thing is, that's not the normal price for a

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Speaker 1: week's worth, right, So then meals at least the normal price,

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Speaker 1: as it turns out, is closer to thirty five dollars

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Speaker 1: per meal. So you're talking about a hundred a week

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Speaker 1: for those three meals, and that's something that we're like, cool,

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Speaker 1: glad we tested it out, we got the super cheap meals,

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Speaker 1: but no, we're not going to keep keep doing this.

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Speaker 1: But I totally understand why why some people are into

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Speaker 1: it now, because, yeah, it makes cooking a little bit easier.

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Speaker 1: It helps maybe get you out of some of the

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Speaker 1: ruts you're in with the stuff that you're cooking. But

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Speaker 1: at the same time, I'm like, I just can't. I

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Speaker 1: can't justify that kind of money. We can't justify that

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Speaker 1: much a week for three dinners. Yeah. And the thing

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Speaker 1: is as well, I mean, do you tell them how

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Speaker 1: many members are in your family? Because yeah, okay, so

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Speaker 1: you can tell them how many portions you want when

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Speaker 1: if you were to sign up exactly term gotcha, gotcha

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Speaker 1: because like, yeah, I mean, my family of six is

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Speaker 1: going to eat more than uh Emily's dad, you know,

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Speaker 1: like like then they eat. And while you're able to

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Speaker 1: get the cost down to three dollars per meal, which

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Speaker 1: is yeah, crazy cheap, it's clear that that's not the

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Speaker 1: ongoing price. And this is again one of those subscriptions

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Speaker 1: that people can fall into. Uh they're paying for, you know,

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Speaker 1: a service, something that they may or may not need.

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Speaker 1: Maybe it might be something that they're into for a while,

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Speaker 1: but then in reality, I bet like maybe some of

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Speaker 1: those meal kits kind of build up. They have a

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Speaker 1: whole cabinet full of meal kits. But I bet there's

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Speaker 1: some folks who don't even want to put that much

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Speaker 1: work in and then they just like end up going

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Speaker 1: out to eat at a restaurant. We just want to

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Speaker 1: make sure that folks are being intentional with the money

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Speaker 1: that they're spending, right, You don't want to let that

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Speaker 1: food that you just got spoil, right bad, But yeah,

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Speaker 1: it was worth a shot, and um, I'm glad, I'm

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Speaker 1: glad I now know what's what those meal kits entail,

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Speaker 1: and I see, I get it. I get it. I

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Speaker 1: understand why people like it, but just not for us.

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Speaker 1: We're not we're not ready to spend that kind of

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Speaker 1: money on it. And I will say too, I love

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Speaker 1: the idea of being able to test something out for

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Speaker 1: super cheap. I'm always up for that. So yeah, like

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Speaker 1: or they're using one of those services and taking the

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Speaker 1: initial deal. Um, but always just be ready to make

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Speaker 1: sure that you don't, you know, submit your credit card information.

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Speaker 1: That's ask did you have to submit your credit card

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Speaker 1: information in order to you know, take part in the

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Speaker 1: free trial and then cancel it? Exactly? Okay, So here's

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Speaker 1: the cat shut the calendar reminder. Make sure you know

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Speaker 1: you're canceling at the appropriate time before you start incurring

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Speaker 1: uh you know, those charges, those ongoing charges. And so

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Speaker 1: I was no, I was ready. I was like buying

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Speaker 1: my computer. I was like, I'm not. I am not

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Speaker 1: paying a hundred dollars for three more meals to come

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Speaker 1: next week. I'm going to cancel on time. So you go, man, Yeah,

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Speaker 1: that's definitely an important thing to note. But Matt, let's

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Speaker 1: move on to the beer. That the beer we're having

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Speaker 1: on today's show is by Cascade Brewing and this is

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Speaker 1: a Creek which is a sour ale with cherries. So

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Speaker 1: looking forward to having this one. And we'll talk about

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Speaker 1: this beer at the end of the episode. But for now,

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Speaker 1: let's get into the listener questions and anybody out there

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Speaker 1: who has a money question, we would love to hear

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Speaker 1: from you. You can go to how the Money dot

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Speaker 1: com slash ask and submit your question and hopefully we

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Speaker 1: can feature it on an upcoming ask HTM episode. Just

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Speaker 1: go to how the Money dot Com slash asked to

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Speaker 1: do that. But let's start our first one, Matt, and

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Speaker 1: this one is about the downsides of commuting. Hey Matt, Hey,

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Speaker 1: Joel been leaving the podcast just coverage all so big

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Speaker 1: basket of episodes to listen to. I live in Denver,

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Speaker 1: so big beer fan. Two of my favorites are Station

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Speaker 1: twenty six, Tangerine Cream Mail and Andy Gator's Double Box. Anyway,

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Speaker 1: I'm currently listening to episode twenty and I'm on my

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Speaker 1: hundred and twenty mile commute to Bueny Vista to shoot

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Speaker 1: X rays at the prison. I wanted to ask if

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Speaker 1: this job is worth it? I made twenty three an

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Speaker 1: hour and get mileage reimbursement at fifty eight cents a mile.

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Speaker 1: I charged two d miles round trip and have a

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Speaker 1: cool deal with the warden of getting twelve hours no

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Speaker 1: matter how long it takes. My take home each week

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Speaker 1: is three and seventy three dollars and forty cents for

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Speaker 1: one day of work a week. I hate the commute,

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Speaker 1: but I do use that time to listen to my

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Speaker 1: favorite podcast or two, How the Money New Best Friend Out.

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Speaker 1: By the way, Matt, that that question came from James.

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Speaker 1: I don't think he said his name at the beginning,

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Speaker 1: but yeah, what think is honorary best friends? Honorary member

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Speaker 1: of the James best Friends out that's our thing. I

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Speaker 1: can't say that now you are an honorary member, especially

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Speaker 1: if you're gonna listen to How the Money for that long,

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Speaker 1: that consecutively for I mean like four hours every single

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Speaker 1: or no, four hours once a day is his commute.

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Speaker 1: But even still, that's a that's a pretty serious level

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Speaker 1: of commitment. My mom wouldn't even do that. No, yeah,

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Speaker 1: I don't know if I would even do that, but

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Speaker 1: this is my job, so so I do. But James,

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Speaker 1: we do appreciate that you're listening to our show. And

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Speaker 1: by the way, you mentioned episode twenty that was all

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Speaker 1: about why commuting is killing us. Uh, and you know

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Speaker 1: how we should all work towards shorter commute times, both

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Speaker 1: for health and money reasons. But we are at least

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Speaker 1: glad to hear that you are getting reimbursed for the

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Speaker 1: miles that you drive. That isn't the case for most folks. Uh.

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Speaker 1: And if you're driving an older vehicle, you could actually

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Speaker 1: be making money on that drive, which isn't too shabby.

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Speaker 1: It sounds like you're getting paid slightly higher than what

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Speaker 1: the i r S recommends for the reimbursement rate per mile. Uh.

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Speaker 1: And you know, it also too, depends on what kind

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Speaker 1: of car you're driving, because if you're driving like a

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Speaker 1: BMW or an audience, you're not going to be coming

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Speaker 1: out ahead because those vehicles take a lot of money.

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Speaker 1: Unless you MATMW, then you might be doing all right

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Speaker 1: and you get good guests Melly, right. Yeah, But it's

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Speaker 1: also helpful that you only have to make this drive,

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Speaker 1: like we said, once a week, not five days a week.

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Speaker 1: There's a big difference between fighting traffic daily as opposed

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Speaker 1: to just doing this once a week most definitely. And

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Speaker 1: part of the two is like the traffic that you're face.

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Speaker 1: I don't mind a long drive as long as I'm

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Speaker 1: not stuck in traffic, and in Atlanta usually your second traffic.

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Speaker 1: So I mean, if you're going to a standard nine

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Speaker 1: to five, you're going to work when everybody else goes

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Speaker 1: to work, and you're coming home when everybody else is.

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Speaker 1: But with what James has going on here, it kind

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Speaker 1: of sounds like he's leaving probably maybe even before the

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Speaker 1: morning commune starts, and he's coming home after that afternoon commute.

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Speaker 1: And plus I'm sure it's not as bad as it

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Speaker 1: is in Atlanta. We have to make sure that we're

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Speaker 1: looking at this from your perspective, not just our perspective,

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Speaker 1: since we live in Atlanta, where the traffic is terrible. Yeah,

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Speaker 1: the only other places I think in our country that

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Speaker 1: can um that can understand what we go through here

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Speaker 1: are probably like l A. Seattle. Yes, like to that

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Speaker 1: one too. But yeah, let's cover a few important questions

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Speaker 1: to James that you need to ask in order to

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Speaker 1: know whether this job is worth it or not. How

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Speaker 1: long does it usually take to get the work done?

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Speaker 1: I think it's a really important question. And and you

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Speaker 1: didn't really say, but like, let's say you mentioned that

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Speaker 1: you're getting paid for twelve hours, but you're let's say

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Speaker 1: you're only working eight on average, and so, yeah, that's

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Speaker 1: a nice situation to be in, right, Like, you're still

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Speaker 1: getting paid for the full twelve but only really working eight,

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Speaker 1: and this really bumps up your hourly rate. But let's

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Speaker 1: say your work days are typically eleven and twelve hours long, Well,

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Speaker 1: then you're really only making the dollars an hour that

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Speaker 1: you've agreed to. So either way, you're still taking home

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Speaker 1: that three seventy three dollars a week. But it's good

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Speaker 1: to know how much time this job is requiring of

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Speaker 1: you because that helps inform the decision. If you're getting

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Speaker 1: paid for double the amount of time they are actually spending,

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Speaker 1: that drastically changes the equation here exactly. Yeah, so it's

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Speaker 1: important to know what your time is worth. That's another

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Speaker 1: question we feel that you should probably ask yourself. We

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Speaker 1: talked about how to figure out your hourly rate back

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Speaker 1: in episode, but that is crucial information that you in

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Speaker 1: order to make an informed decision. Most of us don't

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Speaker 1: really consider how much our time is worth, um, and

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Speaker 1: then we'll end up saying yes to things that we

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Speaker 1: shouldn't say yes to, and then you know, we might

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Speaker 1: say no to things that we actually should uh. And

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Speaker 1: this doesn't just apply to decisions about traditional work, but

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Speaker 1: also you know, you can apply these same principles to

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Speaker 1: other activities like d I y repairs around your house

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Speaker 1: that might need to be made, or even spending time

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Speaker 1: looking for discounts. It all kind of comes down to

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Speaker 1: knowing what your time is actually worth in order to

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Speaker 1: make an informed decision. Like, for instance, we talked about

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Speaker 1: doing your own past control, and for us, you'd have

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Speaker 1: to make a lot of money to make it worth

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Speaker 1: it to hire somebody else to to do your own

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Speaker 1: pest control, because it is so simple and it doesn't

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Speaker 1: take very long, and it's incredibly affordable to do it

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Speaker 1: yourself exactly. It saves so much money. Um. But if

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Speaker 1: you made enough money, I guess you could easily justify

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Speaker 1: hiring someone to do that. But it all comes down

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Speaker 1: to a numbers game, So let's talk about that. Here's

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Speaker 1: here's how you calculate your hourly rate. And yeah, it's

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Speaker 1: forty hours a week times fifty weeks, assuming a couple

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Speaker 1: of weeks off, which equals two thousand hours a year.

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Speaker 1: So let's say fifty dollars salary, let's let's like base

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Speaker 1: it on that nice round numbers. Yeah, divide that by

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Speaker 1: the two thousand hours. That comes out to an hour.

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Speaker 1: But for most folks, getting ready for work and then

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Speaker 1: the commute right that you're gonna be partaking in actually

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Speaker 1: brings down that hourly rate. You're spending more time and

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Speaker 1: resources towards work than you think you are. I think, Matt,

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Speaker 1: people need to go into this equation with eyes wide open,

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Speaker 1: and they need to actually calculate how long does it

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Speaker 1: take me to get ready in the morning, and how

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Speaker 1: long is my actual commute? What are these additional costs

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Speaker 1: that are eating into my hourly rates? So, yeah, the

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Speaker 1: same fifty dollar salaries now only paying an hour when

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Speaker 1: you factor in kind of the commute time and getting

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Speaker 1: ready for for a lot of folks. So yeah, having

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Speaker 1: that clear data can help you to make an informed decision.

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Speaker 1: But really, if you're not looking at the numbers, then

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Speaker 1: you're kind of just guessing and you're like grasping at straws.

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Speaker 1: So we want you to have like a little bit

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Speaker 1: of firm information about your hourly rate before you decide like, yeah,

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Speaker 1: I'm gonna quit and I'm done with this, or actually,

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Speaker 1: you know it makes sense for me financially to keep

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Speaker 1: to keep doing this. Yeah, that's I mean, that's not

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Speaker 1: to say that your emotions and what you want to

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Speaker 1: do aren't important. Uh, you need to weigh those factors

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Speaker 1: as well, but it's also really important to have solid data.

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Speaker 1: And James, you know, one other question too, is you

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Speaker 1: want to know how your finances are overall, right, because

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Speaker 1: you know, the goals do not have to work for money.

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Speaker 1: At some point, like some day you might want to

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Speaker 1: retire we've talked about this recently, or even to be

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Speaker 1: able to work less uh and own more of your time.

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Speaker 1: But getting there also takes quite a bit of time,

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Speaker 1: and so it's important to assess your finances just overall

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Speaker 1: and see how they would hold up without the income

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Speaker 1: from this specific job. You know, we're talking about almost

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Speaker 1: sixteen hundred dollars a month in income that you'd be losing.

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Speaker 1: But if you can afford it, and this isn't something

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Speaker 1: that you like doing, right, you talked about how you

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Speaker 1: hate the commute, Well, then you know quitting this for

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Speaker 1: for lifestyle reasons would be understandable. Uh. And one other

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Speaker 1: thing too, it's it's important to see whether or not

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Speaker 1: you can maybe find some more gigs that pay similarly,

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Speaker 1: that are just closer to where you live there in Denver, uh,

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Speaker 1: so that you don't have to, you know, take part

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Speaker 1: in this night andmarish commute where you're driving two hours

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Speaker 1: one way. It's one thing if you actually enjoy that time,

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Speaker 1: if for you you're able to kind of like maybe

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Speaker 1: even like I don't I don't want to say that

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Speaker 1: you should zone out while you drive, but like find peace,

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Speaker 1: Like if you're able to drive and kind of like,

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Speaker 1: I don't know, if you're like in a state of

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Speaker 1: zen and whether you're listening to podcasts or an audiobook

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Speaker 1: or you just are enjoying that time for yourself, then

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Speaker 1: I think it's a completely different question, right. But yeah,

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Speaker 1: if you are not enjoying that commute, then I think

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Speaker 1: there are a lot of other potential options for you. Yeah, man,

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Speaker 1: I think too there is something powerful about leaving money

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Speaker 1: on the table when you could take it, but you

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Speaker 1: say I don't need it and my life like is

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Speaker 1: more important than then this job. I think that there's

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Speaker 1: something really good about flexing that muscle when you're in

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Speaker 1: the financial position to do so. If you've saved well enough,

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Speaker 1: if your monthly income is still more than enough to

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Speaker 1: cover the bills and to allow you to continue to

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Speaker 1: save and invest, then you can say, James, actually, no,

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Speaker 1: I'm not gonna do this job anymore. I don't need

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Speaker 1: it and it's not worth the told that it's taking

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Speaker 1: on my physical health um in order to continue working here.

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Speaker 1: My mom recently Matt just has asked her boss if

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Speaker 1: she can go from four days of work a week.

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Speaker 1: She works like four ten hour shifts or probably more

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Speaker 1: like four eleven eleven hour shifts, but and she's trying

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Speaker 1: to go down to three work days AWA, And I

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Speaker 1: think that's so great. Like where she's at one, they've

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Speaker 1: gotten to the place financially where they can afford to

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Speaker 1: do that, and she's getting close to those retirement years.

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Speaker 1: It's going to allow her to extend her working life.

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Speaker 1: It's going to be able to prevent some of that burnout.

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Speaker 1: So I think, yeah, when you can turn down money,

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Speaker 1: when you can dial things back a little bit because

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Speaker 1: you've created the financial ability to do so, I think

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Speaker 1: it's a good thing, and you should take advantage of

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Speaker 1: that when it makes sense. Nice. Yeah, man, Well, congrats

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Speaker 1: your mom too, right for being a position where she

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Speaker 1: can kind of dial back the number of hours that

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Speaker 1: she's working kind of slowly, maybe turn off that income

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Speaker 1: that you know, income for worked hours. Spiggott and James,

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Speaker 1: we hope that eventually you will also be in the

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Speaker 1: place to where that that's an option for you. So James,

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Speaker 1: thank you for that question, and we wish you the

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Speaker 1: best of luck. Joel. We've got a couple more questions

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Speaker 1: to get to, including that one about just some different

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Speaker 1: ways of hanging out with your friends without having to

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Speaker 1: spend a ton of money. We'll get to that one

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Speaker 1: plus a few others right after this break. All right,

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Speaker 1: we're back later on the show. We're gonna get to

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Speaker 1: a question about how to help your parents as they're

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Speaker 1: reaching retirement age. That's a really important question for a

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Speaker 1: lot of our millennial listeners right now, Matt. But before

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Speaker 1: we get to that, let's take that question about hanging

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Speaker 1: out with friends without spending too much money. Hi, Matt

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Speaker 1: and Joel, this is a new also from Atlanta. Now

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Speaker 1: that things are opening back up and we're starting to

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Speaker 1: see old friends and meeting new friends. What are some

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Speaker 1: creative ways to hang out that aren't just sitting down

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Speaker 1: to eat other restaurant or getting coffee? Because I'm sure

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Speaker 1: you know from a frugality standpoint, those activities can add

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Speaker 1: up pretty quickly. And yet it almost seems like you're

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Speaker 1: going against the grain and being unconvinced if you suggest

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Speaker 1: anything otherwise. So curious on your thoughts. Thanks so much,

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Speaker 1: by all right, and you thanks so much for that question. Uh,

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Speaker 1: you know, coffee, going out for coffee, spending some money

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Speaker 1: on a nice caramel latte. That's a favorite of mine.

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Speaker 1: I enjoy doing that, and I also enjoy going out

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Speaker 1: to a nice restaurant from time to time. I bet

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Speaker 1: you like avocado toast to math. Actually I don't mind it.

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Speaker 1: It's not like it's not like something that we do frequently.

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Speaker 1: But it has been nice getting back into restaurants. It's

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Speaker 1: definitely something that I missed doing as much back when

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Speaker 1: the pandemic was affecting our economy the way it was.

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Speaker 1: I missed being able to eat in a restaurant, and

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Speaker 1: I'm glad I can do it again. But they really

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Speaker 1: can get expensive. We you know, a few weeks ago,

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Speaker 1: we talked about how folks have resumed what they're spending

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Speaker 1: uh in service sectors like restaurants and bars, while at

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Speaker 1: the same time maintaining how much money they're also spending

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Speaker 1: on groceries UH And hopefully folks will adjust their spending

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Speaker 1: in coming months. But I say that because restaurants can

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Speaker 1: be expensive, and for some folks, I think it could

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Speaker 1: also be just repetitive and boring if they're not being

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Speaker 1: thoughtful or creative about it. Right to another restaurant again, Yeah,

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Speaker 1: we can probably put some more things into our repertoire,

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Speaker 1: you know. Yeah, I mean, and here's this isn't a

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Speaker 1: discount small business, especially small local restaurants, right, Like, some

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Speaker 1: folks are really into food and they follow their local chefs.

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Speaker 1: They they they follow when they're going to open a new restaurant.

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Speaker 1: I would I would put Kate in that category. She's

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Speaker 1: really into that. But if you're not being intentional with

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Speaker 1: that money that you're putting towards those restaurants and it

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Speaker 1: and when it becomes like the default option, that's what

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Speaker 1: we're trying to avoid here, And that's when it can

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Speaker 1: really get expensive because it's not something that you are

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Speaker 1: truly valuing. We want to make sure that you're spending

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Speaker 1: your money in ways that truly matter to you. Yeah.

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Speaker 1: So really, when it comes down to it, there are

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Speaker 1: so many options besides just doing those two things and

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Speaker 1: and and it can become like, like we just said,

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Speaker 1: the default. But I think sometimes what it takes to

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Speaker 1: get out of that rut is that a new might

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Speaker 1: have to become the instigator with her friends to actually

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Speaker 1: consider changing those habits. And I do think it's it

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Speaker 1: can become a habit. It's like, let's do runch on

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Speaker 1: Saturday again, and it's like, cool, we did brunch last week,

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Speaker 1: and then actually on Wednesday we went on to dinner

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Speaker 1: two and stand around in line for an hour a half, Like, yeah,

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Speaker 1: that sucks, it's in my opinion, but it's it's a

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Speaker 1: habit that you that you have to break. And so

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Speaker 1: I think the idea I knew that we would suggest

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Speaker 1: is to go be the fun ring leader who makes

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Speaker 1: other fun activities happen. You can have to be the

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Speaker 1: energy that gets get your friend group going. And so yeah,

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Speaker 1: a couple of maybe my favorite suggestions would be a

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Speaker 1: pig make at the park. Look, it's still food related. Okay,

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Speaker 1: you still do lunch or dinner. And since the new

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Speaker 1: is in Atlanta, Matt I will mention on top of

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Speaker 1: the new parking deck at Grant Park, it's a lovely

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Speaker 1: place to pick so it is, yeah, a nice little field.

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Speaker 1: Nice there's there's actually tons of fruit trees. So maybe

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Speaker 1: you can even just show up, don't bring your own food,

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Speaker 1: and you can just eat the blueberries and whatever else

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Speaker 1: is blooming their service berries up there actually too, those

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Speaker 1: are like these, sorry, we'll go into all of this. Hey,

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Speaker 1: free food there you got. Yeah, that's all I'm saying.

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Speaker 1: So that's that's one option. Uh. And also you could

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Speaker 1: play play games up there, like spike Ball or there's

428
00:18:52,920 --> 00:18:55,159
Speaker 1: just all sorts of different like you bring some a

429
00:18:55,200 --> 00:18:58,040
Speaker 1: corn hole set. Mike rides is another great great thing

430
00:18:58,119 --> 00:19:01,119
Speaker 1: to do as a friend group, taking a like exploring,

431
00:19:01,480 --> 00:19:04,359
Speaker 1: getting outside, going for a walk, going for a hike

432
00:19:04,720 --> 00:19:08,040
Speaker 1: is a great friend group activity. Board game night is

433
00:19:08,080 --> 00:19:10,199
Speaker 1: something that Matt and I love. We don't do it

434
00:19:10,200 --> 00:19:12,439
Speaker 1: as much as we used to, sadly, but it is

435
00:19:12,560 --> 00:19:15,080
Speaker 1: definitely still a super fun activity with friends. And then

436
00:19:15,119 --> 00:19:18,600
Speaker 1: porch beers or you know, a morning homebrew coffee on

437
00:19:18,680 --> 00:19:20,400
Speaker 1: your porch, Like you don't even have to go out,

438
00:19:20,440 --> 00:19:23,360
Speaker 1: Like you can have that same interaction with your friends

439
00:19:23,680 --> 00:19:26,400
Speaker 1: doing it in person, um, but not actually going out

440
00:19:26,520 --> 00:19:28,640
Speaker 1: to a place. We have to spend money in order

441
00:19:28,680 --> 00:19:31,080
Speaker 1: to have fun, yeah, especially with it being summer. I

442
00:19:31,119 --> 00:19:32,639
Speaker 1: mean one of the things that our families did a

443
00:19:32,640 --> 00:19:35,159
Speaker 1: good bit last summer, especially given the pandemic and there

444
00:19:35,160 --> 00:19:37,760
Speaker 1: weren't as many activities that we could participate in, but

445
00:19:37,800 --> 00:19:40,680
Speaker 1: we found all the different state parks, especially the ones

446
00:19:40,720 --> 00:19:43,719
Speaker 1: that have lake beaches, and I mean what I mean,

447
00:19:43,840 --> 00:19:45,640
Speaker 1: that's five dollars well spent. You know, you just load

448
00:19:45,720 --> 00:19:48,040
Speaker 1: up the car uh in a full days where the

449
00:19:48,080 --> 00:19:50,600
Speaker 1: activity out of that and again you pack your own food,

450
00:19:50,640 --> 00:19:52,959
Speaker 1: you pack your own drinks. In my opinion, that is

451
00:19:53,040 --> 00:19:56,240
Speaker 1: definitely money well spent. And we mentioned recently how city

452
00:19:56,240 --> 00:19:59,280
Speaker 1: pools are free this summer, so a new hit those

453
00:19:59,359 --> 00:20:01,480
Speaker 1: up to another a great way to stay cool. Yeah,

454
00:20:01,560 --> 00:20:05,080
Speaker 1: the Chattahoochie you can spend some money on a tube

455
00:20:05,119 --> 00:20:07,360
Speaker 1: and go floating down the river. That is a ton

456
00:20:07,400 --> 00:20:09,840
Speaker 1: of fun. But I mean, basically, and like I want

457
00:20:09,880 --> 00:20:11,560
Speaker 1: you to think through some of the different hobbies, the

458
00:20:11,560 --> 00:20:13,560
Speaker 1: different things that you enjoy and just try to get

459
00:20:13,600 --> 00:20:16,400
Speaker 1: your friends to do those things as well. Right, Uh,

460
00:20:16,440 --> 00:20:19,000
Speaker 1: it doesn't always have to cost money, like even the

461
00:20:19,000 --> 00:20:22,239
Speaker 1: most expensive like sports or hobbies, like I'm thinking about golf, right,

462
00:20:22,480 --> 00:20:24,639
Speaker 1: golf is probably like the most expensive thing that you

463
00:20:24,680 --> 00:20:26,359
Speaker 1: could probably think of, especially if you go to top

464
00:20:26,400 --> 00:20:28,960
Speaker 1: golf to get into. But that's the thing. You don't

465
00:20:29,000 --> 00:20:31,680
Speaker 1: have to join a really fancy club and you don't

466
00:20:31,680 --> 00:20:33,639
Speaker 1: even have to go to top golf where you're going

467
00:20:33,680 --> 00:20:35,960
Speaker 1: to be attempted to you know, buy drinks and stuff

468
00:20:35,960 --> 00:20:37,760
Speaker 1: like that. You can just get like a pitching wedge,

469
00:20:37,960 --> 00:20:40,240
Speaker 1: go to a park and just kind of like chip

470
00:20:40,280 --> 00:20:42,440
Speaker 1: around and have a beer. Even like tennis, Like you

471
00:20:42,480 --> 00:20:44,240
Speaker 1: don't have to join a club where there's like really

472
00:20:44,320 --> 00:20:47,720
Speaker 1: nice tennis courts. There are lots of free public courts everywhere,

473
00:20:47,840 --> 00:20:49,680
Speaker 1: and so just finding ways to incorporate some of that

474
00:20:49,720 --> 00:20:52,800
Speaker 1: physical activity. Again, I know it's hard, like especially in

475
00:20:52,800 --> 00:20:54,800
Speaker 1: the summer when it's hot, which is why it's good

476
00:20:54,840 --> 00:20:57,520
Speaker 1: to have some of those water options. But finding ways

477
00:20:57,840 --> 00:21:00,520
Speaker 1: to encourage your friends to just engage in some of

478
00:21:00,560 --> 00:21:02,639
Speaker 1: the different activities that you enjoy as well as a

479
00:21:02,640 --> 00:21:04,280
Speaker 1: great way to save money. And don't forget disc off,

480
00:21:04,320 --> 00:21:07,120
Speaker 1: there's gonna be disc that's right, But like I think,

481
00:21:07,160 --> 00:21:09,240
Speaker 1: ultimately going against the grain is a good thing. Right.

482
00:21:09,320 --> 00:21:10,840
Speaker 1: You don't want to be the person that says no

483
00:21:10,960 --> 00:21:12,880
Speaker 1: every time your friends want to hang out. That gets

484
00:21:12,920 --> 00:21:15,840
Speaker 1: old and you begin to feel not so good. But

485
00:21:15,880 --> 00:21:18,480
Speaker 1: you also don't want to up end your financial plans

486
00:21:18,600 --> 00:21:20,720
Speaker 1: and hurt your ability to save and invest and that

487
00:21:20,760 --> 00:21:23,040
Speaker 1: work towards those long term goals that you've got I knew,

488
00:21:23,400 --> 00:21:25,960
Speaker 1: So make sure to allocate some money in your budgets

489
00:21:26,000 --> 00:21:28,159
Speaker 1: so that you can occasionally say yes to something you

490
00:21:28,240 --> 00:21:30,720
Speaker 1: might otherwise say no to. You can once a month

491
00:21:31,240 --> 00:21:33,800
Speaker 1: maybe prioritize going out to dinner with some friends or

492
00:21:33,840 --> 00:21:36,679
Speaker 1: getting that coffee at a coffee shop with somebody, But

493
00:21:36,800 --> 00:21:39,880
Speaker 1: also work to change those friend group habits. I bet

494
00:21:39,920 --> 00:21:41,440
Speaker 1: a lot of your friends actually gonna be thankful that

495
00:21:41,480 --> 00:21:43,679
Speaker 1: you're prompting them to do some really cool activities that

496
00:21:43,720 --> 00:21:46,840
Speaker 1: they might not otherwise have considered. Um. And I bet

497
00:21:46,840 --> 00:21:49,280
Speaker 1: pretty soon you guys will be finding yourself doing just

498
00:21:49,280 --> 00:21:51,439
Speaker 1: a lot of cool stuff around town, um that you

499
00:21:51,440 --> 00:21:54,240
Speaker 1: haven't really noticed before existed. Essentially, we want you to

500
00:21:54,240 --> 00:21:56,200
Speaker 1: talk about money because a new you said it feels

501
00:21:56,200 --> 00:21:57,560
Speaker 1: like you might be going against the grain if you

502
00:21:57,600 --> 00:21:59,600
Speaker 1: were to talk about this, but you never know, everybody

503
00:21:59,680 --> 00:22:01,199
Speaker 1: might be only the same way you do. But it

504
00:22:01,240 --> 00:22:03,280
Speaker 1: just takes like the one person to be a little

505
00:22:03,320 --> 00:22:04,879
Speaker 1: kind of courageous and to kind of step up and

506
00:22:04,880 --> 00:22:06,680
Speaker 1: be like, hey, well, let's let's talk about money a

507
00:22:06,680 --> 00:22:08,639
Speaker 1: little bit here. This is really expensive. I don't know

508
00:22:08,720 --> 00:22:10,840
Speaker 1: this is the best use of our money. Yeah, they

509
00:22:10,880 --> 00:22:13,560
Speaker 1: might all breathe a collective cidh of relief, like, oh,

510
00:22:13,600 --> 00:22:16,360
Speaker 1: thank you, finally I was going to get the debt

511
00:22:16,480 --> 00:22:19,120
Speaker 1: trying to keep up with all our dinners out exactly.

512
00:22:19,320 --> 00:22:21,239
Speaker 1: Everyone's trying to say face a little bit. And so

513
00:22:21,280 --> 00:22:24,280
Speaker 1: I think it's important to engage in healthy communication about money,

514
00:22:24,359 --> 00:22:26,480
Speaker 1: not only with your friends, but especially to like as

515
00:22:26,560 --> 00:22:29,040
Speaker 1: you have a romantic partner and where you to get

516
00:22:29,080 --> 00:22:31,920
Speaker 1: married down the road as well. But having healthy ways

517
00:22:31,920 --> 00:22:34,600
Speaker 1: of talking about money is really important. And if you

518
00:22:34,600 --> 00:22:36,080
Speaker 1: want to kind of think about it that way, this

519
00:22:36,119 --> 00:22:39,240
Speaker 1: is sort of like a trial run to talking about money,

520
00:22:39,240 --> 00:22:41,639
Speaker 1: finding ways that makes sense for you to engage in

521
00:22:41,680 --> 00:22:44,800
Speaker 1: your personal finances so that down the road it's even easier,

522
00:22:44,880 --> 00:22:46,960
Speaker 1: and then at that point you'd be able to engage

523
00:22:47,160 --> 00:22:49,960
Speaker 1: with your partner, you know, within these money conversations even

524
00:22:50,119 --> 00:22:53,160
Speaker 1: more effectively. Yeah. Nice, all right, I like that. And yeah,

525
00:22:53,160 --> 00:22:55,440
Speaker 1: a new best of luck finding some really cool activities

526
00:22:55,480 --> 00:22:59,600
Speaker 1: around town. Maybe we'll see on that course. All right, Matt,

527
00:22:59,640 --> 00:23:02,160
Speaker 1: let's get to our next question. This one's about using

528
00:23:02,280 --> 00:23:06,160
Speaker 1: tax advantaged medical accounts. Hi, Joelan Matte, This is Jenna

529
00:23:06,200 --> 00:23:08,240
Speaker 1: from Utah. I have a question about h s A

530
00:23:08,400 --> 00:23:11,199
Speaker 1: and f s A contributions. I currently max out my

531
00:23:11,400 --> 00:23:13,960
Speaker 1: h s A every year, and our family is fortunate

532
00:23:13,960 --> 00:23:16,720
Speaker 1: to not have any major medical issues. My husband and

533
00:23:16,760 --> 00:23:19,600
Speaker 1: children are also double covered on his low deductible health plan.

534
00:23:20,200 --> 00:23:21,840
Speaker 1: I was wondering if it would be smart for me

535
00:23:21,880 --> 00:23:24,160
Speaker 1: to set aside some f s A dollars as well

536
00:23:24,200 --> 00:23:26,600
Speaker 1: in addition to the h s A dollars. We could

537
00:23:26,680 --> 00:23:29,000
Speaker 1: use the f s A each year to buy little

538
00:23:29,040 --> 00:23:31,000
Speaker 1: things like their copays and a few things at the

539
00:23:31,040 --> 00:23:34,879
Speaker 1: grocery store. Thanks Jenna. The fact that you are maxing

540
00:23:34,880 --> 00:23:36,640
Speaker 1: out your h s A every year, which by the way,

541
00:23:36,680 --> 00:23:40,679
Speaker 1: that's your health savings account is awesome. Uh. And it

542
00:23:40,720 --> 00:23:43,040
Speaker 1: even sounds like you are doing your best not to

543
00:23:43,119 --> 00:23:45,840
Speaker 1: actually tap those funds and actually using those funds for

544
00:23:45,880 --> 00:23:48,879
Speaker 1: any medical expenses, which is the best way to use

545
00:23:48,880 --> 00:23:53,120
Speaker 1: an hs A. Round of applause, right, come on, come on. So, yeah,

546
00:23:53,160 --> 00:23:54,960
Speaker 1: if you can continue to let that money sit there

547
00:23:55,000 --> 00:23:57,480
Speaker 1: within that hs A and then you know, not use it, uh,

548
00:23:57,640 --> 00:23:59,840
Speaker 1: make sure that it's invested so that it can come

549
00:24:00,040 --> 00:24:03,840
Speaker 1: hound for future medical expenses decades down the road. And

550
00:24:03,880 --> 00:24:06,199
Speaker 1: not just future medical expenses, but actually being able to

551
00:24:06,880 --> 00:24:09,879
Speaker 1: reimburse yourself for medical expenses in the past. And you're

552
00:24:09,880 --> 00:24:12,360
Speaker 1: actually drawing on money within the hu A for you

553
00:24:12,400 --> 00:24:14,680
Speaker 1: to actually live off of. It's like time travel way

554
00:24:14,720 --> 00:24:17,320
Speaker 1: of investing. It's so cool. I love the h A.

555
00:24:17,480 --> 00:24:18,919
Speaker 1: I've never really thought about it that way, but it

556
00:24:19,040 --> 00:24:21,000
Speaker 1: is like find travel a little bit. And so by

557
00:24:21,080 --> 00:24:23,760
Speaker 1: using that strategy, that could turn those contributions into a

558
00:24:23,800 --> 00:24:26,400
Speaker 1: massive amount of money that you can tap into later

559
00:24:26,440 --> 00:24:28,440
Speaker 1: in life. Yeah, so let's talk about contributing to both

560
00:24:28,480 --> 00:24:31,359
Speaker 1: man because yeah, there's good other good news for Jenna

561
00:24:31,440 --> 00:24:33,560
Speaker 1: besides the fact that she's already, like you know, taking

562
00:24:33,560 --> 00:24:37,200
Speaker 1: full advantage of these accounts and hopefully hopefully investing inside

563
00:24:37,200 --> 00:24:40,439
Speaker 1: of that hs A. You can Jenna contribute to an

564
00:24:40,520 --> 00:24:42,159
Speaker 1: h s A and an F s A in the

565
00:24:42,200 --> 00:24:44,680
Speaker 1: same year. And an f s A is a flexible

566
00:24:44,840 --> 00:24:48,720
Speaker 1: spending account, right, and those accounts are specifically geared towards

567
00:24:48,800 --> 00:24:51,520
Speaker 1: people who are going to they're gonna put money in,

568
00:24:51,760 --> 00:24:54,800
Speaker 1: They're gonna say the year before in hey, this is

569
00:24:54,800 --> 00:24:57,000
Speaker 1: how much money I plan on spending on medical expenses

570
00:24:57,160 --> 00:25:00,399
Speaker 1: next year, and that money does not get taxed. But

571
00:25:00,480 --> 00:25:02,879
Speaker 1: then you have to use it pretty quickly, right, You

572
00:25:02,920 --> 00:25:04,640
Speaker 1: have to use it in the year that you've allocated

573
00:25:04,680 --> 00:25:07,399
Speaker 1: it for, and that's one of the downsides to f

574
00:25:07,520 --> 00:25:10,000
Speaker 1: s A S. But what I like about being able

575
00:25:10,040 --> 00:25:13,320
Speaker 1: to do both is that you can essentially separate that

576
00:25:13,359 --> 00:25:16,520
Speaker 1: money into two different buckets. UM. One is for current

577
00:25:16,560 --> 00:25:19,000
Speaker 1: year medical expenses that's also getting a tax break, and

578
00:25:19,040 --> 00:25:20,320
Speaker 1: the rest of that money that's going into the h

579
00:25:20,400 --> 00:25:24,120
Speaker 1: s A is for future years, like you said, potentially

580
00:25:24,160 --> 00:25:27,159
Speaker 1: decades down the road that that you can invest. So

581
00:25:27,240 --> 00:25:29,920
Speaker 1: good news you can do both, UM and thinking of

582
00:25:29,960 --> 00:25:33,800
Speaker 1: those as kind of separate buckets, separate ways of using

583
00:25:33,880 --> 00:25:36,280
Speaker 1: your healthcare dollars, I think is kind of a good

584
00:25:36,359 --> 00:25:38,359
Speaker 1: mental way to approach it. Yes, it's not only mental,

585
00:25:38,400 --> 00:25:40,560
Speaker 1: but it's physically separate, right, And so it's just a

586
00:25:40,640 --> 00:25:42,840
Speaker 1: nice way to kind of account for those funds in

587
00:25:42,880 --> 00:25:45,160
Speaker 1: different ways. But Jill, it is important, just like you said,

588
00:25:45,320 --> 00:25:47,240
Speaker 1: for Jenna to make sure that she only puts money

589
00:25:47,240 --> 00:25:49,680
Speaker 1: into her f s A that she knows that she's

590
00:25:49,680 --> 00:25:51,800
Speaker 1: going to be spending that year, because f s A

591
00:25:51,960 --> 00:25:53,960
Speaker 1: is work on that use it or lose it basis,

592
00:25:54,000 --> 00:25:56,640
Speaker 1: So you know, if she contributes money that she isn't

593
00:25:56,680 --> 00:25:59,880
Speaker 1: able to spend, it's gonna vanish. That's the worst part

594
00:25:59,880 --> 00:26:03,000
Speaker 1: of that is because you're making easily the worst And

595
00:26:03,160 --> 00:26:06,120
Speaker 1: for most people, they can, you know, reasonably accurately guess

596
00:26:06,160 --> 00:26:08,480
Speaker 1: what they're going to spend, but you don't know. Yeah,

597
00:26:08,560 --> 00:26:11,000
Speaker 1: what if you're just so frugal, they you know, you

598
00:26:11,119 --> 00:26:15,320
Speaker 1: don't end up sending that money. Gosh darn't healthy. Yeah. Yeah,

599
00:26:15,320 --> 00:26:17,320
Speaker 1: And so I mean, some employers will allow you to

600
00:26:17,400 --> 00:26:19,679
Speaker 1: roll over, you know, like five bucks, or they might

601
00:26:19,720 --> 00:26:21,840
Speaker 1: give you a three month grace period the following year

602
00:26:22,320 --> 00:26:24,439
Speaker 1: um or you could you know, just stock up on

603
00:26:24,600 --> 00:26:27,520
Speaker 1: f s A eligible items like sunscreen, ie your profen

604
00:26:27,600 --> 00:26:29,800
Speaker 1: band aid stuff like that. But I love the goal

605
00:26:30,040 --> 00:26:34,040
Speaker 1: of getting as many tax free dollars as you can, uh, Jenna.

606
00:26:34,400 --> 00:26:37,359
Speaker 1: Maximizing those accounts is a just a smart money strategy

607
00:26:37,400 --> 00:26:39,520
Speaker 1: for sure. Totally. Well, let's talk about one last thing

608
00:26:39,560 --> 00:26:42,440
Speaker 1: that Jenna mentioned in her question. She mentioned that her

609
00:26:42,480 --> 00:26:45,840
Speaker 1: family most of her family's double covered with her husband's

610
00:26:45,880 --> 00:26:49,720
Speaker 1: healthcare plan that has low deductibles, and Matt, we don't

611
00:26:49,760 --> 00:26:52,760
Speaker 1: know the specifics of what the premiums are, but yeah,

612
00:26:52,880 --> 00:26:57,119
Speaker 1: assuming that this is an employer sponsor plan, that's a benefit. Um,

613
00:26:57,160 --> 00:26:59,640
Speaker 1: maybe those premiums are completely covered. We know of some

614
00:27:00,080 --> 00:27:03,040
Speaker 1: editably generous Atlantic companies that tell their employees, you don't

615
00:27:03,080 --> 00:27:04,840
Speaker 1: spend a dime on healthcare, We're taking care of all

616
00:27:04,880 --> 00:27:07,480
Speaker 1: of it completely covered, which is super generous because healthcare

617
00:27:07,600 --> 00:27:11,879
Speaker 1: is crazy expensive. So um, yeah, if that's the case, Jenna,

618
00:27:11,960 --> 00:27:14,560
Speaker 1: If if your partner has just one of those rock

619
00:27:14,600 --> 00:27:17,560
Speaker 1: star healthcare plans, then that's great being able to have both.

620
00:27:17,920 --> 00:27:19,679
Speaker 1: But if he's actually paying a good chunk of his

621
00:27:19,720 --> 00:27:23,680
Speaker 1: paycheck every pay period towards the premiums for this plan,

622
00:27:24,000 --> 00:27:26,840
Speaker 1: then it's worth asking yourself, like, what's the actual benefit

623
00:27:26,920 --> 00:27:29,840
Speaker 1: that you're receiving by keeping both planes in place. You

624
00:27:29,880 --> 00:27:32,320
Speaker 1: said that you have a healthy family, so it could

625
00:27:32,359 --> 00:27:35,080
Speaker 1: make sense to pocket that extra recurring expense and you

626
00:27:35,119 --> 00:27:37,440
Speaker 1: could use it to beef up your emergency fund or

627
00:27:37,480 --> 00:27:40,040
Speaker 1: you know, use it to handle you know medical care

628
00:27:40,080 --> 00:27:43,600
Speaker 1: costs this year, right um out of pocket Exactually yeah,

629
00:27:43,640 --> 00:27:46,520
Speaker 1: actual builds up to that larger deductible in case there

630
00:27:46,600 --> 00:27:49,439
Speaker 1: was something that was really expensive. So we don't know

631
00:27:49,440 --> 00:27:53,360
Speaker 1: their specific situation why they have these two health care accounts,

632
00:27:53,400 --> 00:27:55,800
Speaker 1: but just something to think about, like what are the

633
00:27:55,840 --> 00:27:58,320
Speaker 1: costs of it and are the benefits outweighing the costs?

634
00:27:58,359 --> 00:28:00,520
Speaker 1: Um is Yeah, something you should consider. Yeah, I would

635
00:28:00,760 --> 00:28:02,640
Speaker 1: in this case, I wouldn't call it a double coverage.

636
00:28:02,760 --> 00:28:05,600
Speaker 1: Maybe just think about it as potentially redundant coverage because

637
00:28:05,800 --> 00:28:07,919
Speaker 1: this might be coverage that you just completely do not

638
00:28:08,040 --> 00:28:09,520
Speaker 1: need and you might be able to save a lot

639
00:28:09,520 --> 00:28:11,720
Speaker 1: more money every single month. Totally. All right. We got

640
00:28:11,760 --> 00:28:13,639
Speaker 1: a couple more questions to get to you you, Matt, including

641
00:28:13,640 --> 00:28:15,359
Speaker 1: where to put money when you plan on buying a

642
00:28:15,440 --> 00:28:17,320
Speaker 1: home in the near future. We'll get to that and more.

643
00:28:17,440 --> 00:28:27,720
Speaker 1: Right it for this break. Al Right, we are back.

644
00:28:27,720 --> 00:28:30,880
Speaker 1: We're taking listener questions, Joel. Our next question is from

645
00:28:30,880 --> 00:28:33,640
Speaker 1: a listener in the Windy City, UH, and he wants

646
00:28:33,640 --> 00:28:36,200
Speaker 1: to make sure that he's approaching helping his parents think

647
00:28:36,200 --> 00:28:38,520
Speaker 1: about their money in a way that helps them uh

648
00:28:38,520 --> 00:28:41,560
Speaker 1: and not harms them. Hey, Matt and Joel. My name

649
00:28:41,640 --> 00:28:44,960
Speaker 1: is Jacob. I'm in Chicago, and I love the pod,

650
00:28:45,120 --> 00:28:49,000
Speaker 1: so thank you so much for all of your wonderful insight. Um.

651
00:28:49,080 --> 00:28:53,040
Speaker 1: My problem is that I have two parents. They are

652
00:28:53,200 --> 00:28:56,840
Speaker 1: divorced and they live in completely opposite sides of the country.

653
00:28:56,880 --> 00:28:59,720
Speaker 1: I'm in Chicago, my dad's in Denver, Colorado, and my

654
00:28:59,760 --> 00:29:05,760
Speaker 1: mom in Baltimore. And they are fantastic people. They spent

655
00:29:05,920 --> 00:29:09,400
Speaker 1: all their money raising me, and unfortunately I can see

656
00:29:09,400 --> 00:29:11,920
Speaker 1: the writing on the wall, which is that as they

657
00:29:11,960 --> 00:29:15,080
Speaker 1: approach retirement age, they are going to need more help

658
00:29:15,160 --> 00:29:18,040
Speaker 1: from me, and I want to do my part, and

659
00:29:18,080 --> 00:29:20,640
Speaker 1: I want to be ready to assist them because I

660
00:29:20,680 --> 00:29:24,120
Speaker 1: know they don't have much in the way of savings.

661
00:29:24,800 --> 00:29:27,880
Speaker 1: My father is very lucky because he is selling his

662
00:29:28,000 --> 00:29:33,120
Speaker 1: home in Denver. My mother is going to stay in

663
00:29:33,120 --> 00:29:37,160
Speaker 1: Baltimore for the near future, and it's possible I might

664
00:29:37,440 --> 00:29:39,200
Speaker 1: try to get her to move into my home in

665
00:29:39,440 --> 00:29:42,000
Speaker 1: Chicago with me when she can no longer take care

666
00:29:42,000 --> 00:29:44,520
Speaker 1: of herself. But in the meantime, I'm trying to figure

667
00:29:44,560 --> 00:29:48,160
Speaker 1: out the best way to help her pay off her debts.

668
00:29:48,200 --> 00:29:54,040
Speaker 1: She has a mortgage, she has a car payment, and

669
00:29:54,480 --> 00:29:57,280
Speaker 1: she has credit cards that are each maxed out at

670
00:29:57,360 --> 00:30:00,640
Speaker 1: about two graham, so that's maybe fourth thousand dollars of

671
00:30:00,640 --> 00:30:05,920
Speaker 1: credit card debt. I'm tempted to pay off her car

672
00:30:06,000 --> 00:30:08,560
Speaker 1: because then that debt's gone and she can apply her

673
00:30:08,600 --> 00:30:11,280
Speaker 1: car payment money to her credit cards, even though the

674
00:30:11,280 --> 00:30:14,160
Speaker 1: credit cards have higher interest. But if I pay off

675
00:30:14,200 --> 00:30:16,360
Speaker 1: the credit cards, then I know she's more likely to

676
00:30:16,400 --> 00:30:19,440
Speaker 1: just charge them up again. So is it better to

677
00:30:20,720 --> 00:30:23,240
Speaker 1: pay off a car, which is a permanent debt gone,

678
00:30:24,080 --> 00:30:26,160
Speaker 1: in favor of giving her money to pay off her

679
00:30:26,840 --> 00:30:30,400
Speaker 1: high interest credit cards every month? Or is it better

680
00:30:30,480 --> 00:30:33,200
Speaker 1: to pay off the credit cards because they have a

681
00:30:33,280 --> 00:30:37,200
Speaker 1: higher interest rate. Thanks so much, looking forward to hearing

682
00:30:37,240 --> 00:30:40,480
Speaker 1: from you guys. Have a great day, all right, Jacob.

683
00:30:40,560 --> 00:30:43,880
Speaker 1: Awesome question, And Matt, I gotta say I sympathize with

684
00:30:43,960 --> 00:30:46,840
Speaker 1: Jacob because it's a really tough thing to try to

685
00:30:46,840 --> 00:30:49,000
Speaker 1: help your parents with their money. But it's even harder

686
00:30:49,200 --> 00:30:51,280
Speaker 1: to try to do it when you don't live in

687
00:30:51,280 --> 00:30:53,760
Speaker 1: the same town, like when you live hundreds of miles away.

688
00:30:54,280 --> 00:30:57,680
Speaker 1: It means zoom calls, phone calls, text prositages, maybe even

689
00:30:57,960 --> 00:30:59,960
Speaker 1: when you're not involved in the day to day right, Yeah,

690
00:31:00,080 --> 00:31:03,440
Speaker 1: So yeah, Jacob, kudos to you for continuing to work

691
00:31:03,440 --> 00:31:06,480
Speaker 1: towards helping your parents even though it's not easy. But um, yeah,

692
00:31:06,840 --> 00:31:08,840
Speaker 1: it's also obviously good time. Like you said, for your

693
00:31:08,880 --> 00:31:11,440
Speaker 1: dad to sell home in Denver, big props to him

694
00:31:11,440 --> 00:31:13,920
Speaker 1: for that. Um, And it sounds like, yeah, both parents

695
00:31:14,000 --> 00:31:16,840
Speaker 1: have decent houndsing housing plans in the future, so that's good.

696
00:31:17,080 --> 00:31:19,479
Speaker 1: But honestly, you're willingness to tell of your parents it's

697
00:31:19,480 --> 00:31:23,440
Speaker 1: such a meaningful way is admirable. And I think that

698
00:31:23,920 --> 00:31:26,640
Speaker 1: as kids, like we we owe that to our parents because,

699
00:31:26,640 --> 00:31:28,440
Speaker 1: like Jacob said, they spent a lot of money raising him.

700
00:31:28,440 --> 00:31:30,840
Speaker 1: Our our parents spent a lot of time, effort, money

701
00:31:31,200 --> 00:31:33,200
Speaker 1: raising us and caring for us. And I feel like

702
00:31:33,200 --> 00:31:35,040
Speaker 1: it's kids, it can be harder for us to return

703
00:31:35,080 --> 00:31:37,720
Speaker 1: the favor sometimes, that is true. Yeah, so let's talk

704
00:31:37,800 --> 00:31:40,160
Speaker 1: more about how, Jacob, how you can help your mom. Right,

705
00:31:40,200 --> 00:31:41,760
Speaker 1: it sounds like her situation is going to be the

706
00:31:41,760 --> 00:31:44,840
Speaker 1: most difficult here. Uh, And here's the thing. I wouldn't

707
00:31:44,880 --> 00:31:47,880
Speaker 1: pay off any of her debts without having a couple

708
00:31:47,920 --> 00:31:51,040
Speaker 1: of really important conversations first, right, because like you said,

709
00:31:51,040 --> 00:31:54,880
Speaker 1: paying off those credit cards might help temporarily, but you

710
00:31:54,960 --> 00:31:57,000
Speaker 1: might charge them up again. And I know, that's how

711
00:31:57,040 --> 00:31:59,080
Speaker 1: you're kind of laying out the problem and how like

712
00:31:59,120 --> 00:32:01,680
Speaker 1: paying off the car might be more permanent solution. But

713
00:32:01,720 --> 00:32:04,000
Speaker 1: the thing is she could always go and finance another vehicle,

714
00:32:04,040 --> 00:32:06,280
Speaker 1: and so either way it doesn't really matter. You want

715
00:32:06,280 --> 00:32:08,280
Speaker 1: to make sure that you're having some healthy conversations with

716
00:32:08,280 --> 00:32:09,880
Speaker 1: her and that this is something that y'all are talking

717
00:32:09,920 --> 00:32:12,400
Speaker 1: about regardless if you choose to help her or not.

718
00:32:12,840 --> 00:32:14,640
Speaker 1: So essentially, you're just gonna have to enter into a

719
00:32:14,640 --> 00:32:17,280
Speaker 1: few of these discussions with her about the state of

720
00:32:17,320 --> 00:32:21,400
Speaker 1: her finances before committing your own financial resources to help her. Yeah,

721
00:32:21,400 --> 00:32:24,360
Speaker 1: because if you don't, your finances could be at stake, right, Like,

722
00:32:24,440 --> 00:32:28,040
Speaker 1: you could be pouring money in what you think in

723
00:32:28,080 --> 00:32:31,200
Speaker 1: her direction and what you think is a kind generous

724
00:32:31,280 --> 00:32:34,120
Speaker 1: move um, and from your heart, it is, but ultimately

725
00:32:34,120 --> 00:32:36,120
Speaker 1: it could end up hurting you in the process and

726
00:32:36,200 --> 00:32:38,960
Speaker 1: hurting your future financial standing. If you're not addressing the

727
00:32:39,040 --> 00:32:41,320
Speaker 1: root of the problem, then it could be a lot

728
00:32:41,360 --> 00:32:44,240
Speaker 1: of time and money poorly spent. Right So it would

729
00:32:44,240 --> 00:32:46,240
Speaker 1: be kind of like you're in a boat with a

730
00:32:46,320 --> 00:32:48,440
Speaker 1: hole in the bottom and you've got one of those

731
00:32:48,520 --> 00:32:50,880
Speaker 1: like five gallon buckets and you're trying to get the

732
00:32:50,880 --> 00:32:53,840
Speaker 1: water out, but like, ultimately you're not making any progress

733
00:32:53,880 --> 00:32:56,600
Speaker 1: because the boat is still sinking because you don't have

734
00:32:56,680 --> 00:32:58,320
Speaker 1: enough duct tape to fix that. Hold the bottom you know,

735
00:32:58,840 --> 00:33:00,360
Speaker 1: might keep her float for a little bit, but yeah,

736
00:33:00,400 --> 00:33:02,920
Speaker 1: you've got to address the actual problem, which is the

737
00:33:02,920 --> 00:33:05,120
Speaker 1: whole in this case or in her you know, specific

738
00:33:05,160 --> 00:33:07,760
Speaker 1: to her case. It seems that her spending is kind

739
00:33:07,760 --> 00:33:09,960
Speaker 1: of the problem here. So what's the financial duct tape here, Matt,

740
00:33:10,000 --> 00:33:12,360
Speaker 1: that's the question. Um, you know, like the duct tape

741
00:33:12,360 --> 00:33:14,600
Speaker 1: that would have fixed the boat. But duct tape doesn't

742
00:33:14,640 --> 00:33:15,880
Speaker 1: really work on that like that, I don't think. But

743
00:33:16,680 --> 00:33:19,520
Speaker 1: you like some putty or something. We obviously know a

744
00:33:19,560 --> 00:33:22,800
Speaker 1: ton about boats, right, Well, you probably actually really need

745
00:33:22,960 --> 00:33:25,640
Speaker 1: like some wood and some nails, right, That's probably what

746
00:33:25,680 --> 00:33:28,240
Speaker 1: you need some plato and to talk about to get

747
00:33:28,240 --> 00:33:30,440
Speaker 1: you to shore. But really, when it comes down to it,

748
00:33:30,440 --> 00:33:32,360
Speaker 1: you need to get buy in for your mom in

749
00:33:32,480 --> 00:33:34,680
Speaker 1: order to make you know, whatever plane, you have to

750
00:33:34,720 --> 00:33:37,880
Speaker 1: help her fix that debt um to turn into a reality.

751
00:33:38,200 --> 00:33:40,920
Speaker 1: So you have to create a plan together, and I

752
00:33:40,920 --> 00:33:43,000
Speaker 1: would suggest putting it in writing at the same time,

753
00:33:43,040 --> 00:33:45,000
Speaker 1: because it's really hard to go back and be like

754
00:33:45,000 --> 00:33:47,160
Speaker 1: but mom. Three months ago, I said this, Well, if

755
00:33:47,160 --> 00:33:49,720
Speaker 1: you haven't been writing, then you can both kind of

756
00:33:49,760 --> 00:33:52,520
Speaker 1: be working from the same shared Google doc or whatever,

757
00:33:52,600 --> 00:33:54,200
Speaker 1: right that you can both pull up whatever you want to.

758
00:33:54,640 --> 00:33:57,400
Speaker 1: But at the same time as you're kind of making

759
00:33:57,400 --> 00:33:59,440
Speaker 1: these plans together about how you can help her with

760
00:33:59,440 --> 00:34:02,080
Speaker 1: her finances, how she can get her finances together on

761
00:34:02,160 --> 00:34:04,840
Speaker 1: her own, and then with your help, you know, accelerate

762
00:34:04,880 --> 00:34:07,480
Speaker 1: that plan. Um. You want to get her excited about

763
00:34:07,520 --> 00:34:09,120
Speaker 1: how quickly she's gonna be able to get rid of

764
00:34:09,160 --> 00:34:11,319
Speaker 1: this debt if you're able to do it together. Um,

765
00:34:11,360 --> 00:34:13,759
Speaker 1: And I think that's a huge part. Sometimes people need

766
00:34:13,800 --> 00:34:16,879
Speaker 1: some motivation and they need someone to partner with them

767
00:34:16,880 --> 00:34:20,000
Speaker 1: and towards making positive financial progress. Go and get alone

768
00:34:20,080 --> 00:34:22,000
Speaker 1: is really tough. We we know that in so many

769
00:34:22,040 --> 00:34:25,040
Speaker 1: areas of our life, we need community support, We need

770
00:34:25,239 --> 00:34:27,200
Speaker 1: the help of a loved one. We need someone who

771
00:34:27,239 --> 00:34:29,279
Speaker 1: cares about us to bring to put their arm around us,

772
00:34:29,320 --> 00:34:31,359
Speaker 1: come alongside of us, and really help us get going.

773
00:34:31,360 --> 00:34:33,040
Speaker 1: And it sounds like that might be what your mom needs.

774
00:34:33,280 --> 00:34:36,239
Speaker 1: Doing it together also ensures that she's on board, right,

775
00:34:36,280 --> 00:34:38,680
Speaker 1: that you're not just trying to help her out where

776
00:34:38,880 --> 00:34:43,160
Speaker 1: she doesn't have any intention of changing her current habits. So, um, yeah,

777
00:34:43,200 --> 00:34:46,520
Speaker 1: you're trying to fix her finances solo for her. It's

778
00:34:46,640 --> 00:34:48,480
Speaker 1: gonna be good for either one of you, and ultimately

779
00:34:48,480 --> 00:34:50,719
Speaker 1: it's actually gonna really hurt you in the process. You

780
00:34:50,719 --> 00:34:52,759
Speaker 1: could you could damage your relationship, right, And I think

781
00:34:52,800 --> 00:34:54,080
Speaker 1: one of the ways that you can partner with her

782
00:34:54,120 --> 00:34:56,600
Speaker 1: to Jacob is that like, this is your mom, right,

783
00:34:56,640 --> 00:34:59,680
Speaker 1: and so you know her and you probably know what's

784
00:34:59,680 --> 00:35:02,640
Speaker 1: gonna truly motivator. Right. And so if, for instance, if

785
00:35:02,640 --> 00:35:05,319
Speaker 1: she's like a numbers kind of nerd, then yeah, like

786
00:35:05,440 --> 00:35:08,080
Speaker 1: make a spreadsheet like show how by limiting some of

787
00:35:08,080 --> 00:35:10,040
Speaker 1: these debts, like what that's gonna do for her future.

788
00:35:10,320 --> 00:35:12,560
Speaker 1: But considering the fact that she's that you know that

789
00:35:12,600 --> 00:35:14,239
Speaker 1: she does have credit card debt and that she does

790
00:35:14,239 --> 00:35:16,640
Speaker 1: have this card payment, I'm guessing like she may not

791
00:35:16,680 --> 00:35:18,760
Speaker 1: be quite as analytical when it comes to the numbers.

792
00:35:18,760 --> 00:35:22,200
Speaker 1: And so maybe for her that means appealing to her emotions.

793
00:35:22,400 --> 00:35:24,759
Speaker 1: Talk about stress and how much stress is going to

794
00:35:24,760 --> 00:35:26,399
Speaker 1: be gone from her life when she no longer has

795
00:35:26,400 --> 00:35:29,279
Speaker 1: these credit cards, when she no longer has a card

796
00:35:29,280 --> 00:35:32,400
Speaker 1: payment but instead has a reliable, paid off vehicle. Find

797
00:35:32,440 --> 00:35:35,120
Speaker 1: ways So that you'll be able to make lasting and

798
00:35:35,160 --> 00:35:37,640
Speaker 1: effective change. So Jacob, make sure that you do that first.

799
00:35:37,680 --> 00:35:39,600
Speaker 1: But you know, beyond that, then it truly is a

800
00:35:39,680 --> 00:35:42,760
Speaker 1: numbers problem, right Like you've addressed the emotions, you've addressed

801
00:35:42,760 --> 00:35:44,960
Speaker 1: the spending, you've addressed the root of the problem. Then

802
00:35:44,960 --> 00:35:46,480
Speaker 1: it truly is it's just a math problem. And it's

803
00:35:46,480 --> 00:35:48,279
Speaker 1: really simple if you're just looking at the numbers and

804
00:35:48,320 --> 00:35:50,520
Speaker 1: you have the financial ability. Yeah, paying off the credit

805
00:35:50,560 --> 00:35:52,640
Speaker 1: cards is what would really help the most because those

806
00:35:52,640 --> 00:35:54,800
Speaker 1: interest rates are going to be the highest. But again,

807
00:35:54,840 --> 00:35:57,640
Speaker 1: that can only be done if she's willing to, you know,

808
00:35:57,760 --> 00:35:59,880
Speaker 1: legit put those cards in the freezer. You want to

809
00:36:00,000 --> 00:36:02,800
Speaker 1: addressed that spending. And you know, in the end too,

810
00:36:02,880 --> 00:36:04,719
Speaker 1: I know that it can be tough to talk to

811
00:36:04,760 --> 00:36:07,680
Speaker 1: your parents about money. It can even feel like the

812
00:36:07,760 --> 00:36:10,920
Speaker 1: roles are reversing a little bit, that they're shifting, and so,

813
00:36:10,960 --> 00:36:13,000
Speaker 1: you know, we talked more about how to have these

814
00:36:13,000 --> 00:36:16,760
Speaker 1: conversations back in uh his episode one fourteen with Cameron

815
00:36:16,840 --> 00:36:21,200
Speaker 1: Huddleston's she talks a lot about discussing finances with your parents,

816
00:36:21,200 --> 00:36:23,480
Speaker 1: and so if you haven't listened to that episode, we'd

817
00:36:23,480 --> 00:36:25,160
Speaker 1: recommend for you to go and check that one out. Yeah,

818
00:36:25,200 --> 00:36:26,920
Speaker 1: she wrote a great book about that, about how to

819
00:36:26,920 --> 00:36:29,879
Speaker 1: approach those conversations, how to start to talk to your

820
00:36:29,880 --> 00:36:32,680
Speaker 1: parents about their money as they get closer to retirement age,

821
00:36:32,760 --> 00:36:34,759
Speaker 1: and it's a great helpful book. And that conversation was

822
00:36:34,800 --> 00:36:37,439
Speaker 1: really great too. So um yeah, Jacob, best of luck

823
00:36:37,600 --> 00:36:39,839
Speaker 1: as you try to navigate these waters with your mom.

824
00:36:40,120 --> 00:36:42,400
Speaker 1: And I really believe that you're gonna have some success

825
00:36:42,440 --> 00:36:45,160
Speaker 1: here as long as you're not trying to do it

826
00:36:45,200 --> 00:36:46,879
Speaker 1: all on your own. You gotta partner with your mom

827
00:36:46,880 --> 00:36:49,080
Speaker 1: in this to make progress. But Matt, let's get to

828
00:36:49,120 --> 00:36:51,520
Speaker 1: our last question of the day. This one comes from

829
00:36:51,560 --> 00:36:54,439
Speaker 1: a recent college graduate who's trying to buy home in

830
00:36:54,760 --> 00:36:58,200
Speaker 1: the next couple of years. Hi, Joel and Matt. I'm Maddie.

831
00:36:58,400 --> 00:37:02,239
Speaker 1: I'm twenty three and I'm from Houston, Texas. I just

832
00:37:02,360 --> 00:37:05,200
Speaker 1: recently moved back in with my parents in the Boston

833
00:37:05,320 --> 00:37:08,640
Speaker 1: area to save money for graduate school. I'm going to

834
00:37:08,680 --> 00:37:11,400
Speaker 1: be getting my master's in marketing in England and I

835
00:37:11,440 --> 00:37:15,040
Speaker 1: will be paying for my degree in cash. Thankfully, I

836
00:37:15,080 --> 00:37:18,319
Speaker 1: don't have any debt for my undergrad or otherwise. Your

837
00:37:18,360 --> 00:37:21,200
Speaker 1: podcast has helped me gain so much confidence when it

838
00:37:21,239 --> 00:37:24,200
Speaker 1: comes to money, and I've actually found a love of finance,

839
00:37:24,239 --> 00:37:27,640
Speaker 1: credit cards and saving as well. Thanks to your podcast

840
00:37:27,880 --> 00:37:31,480
Speaker 1: and some luck and hard work, I've saved around seventy

841
00:37:31,480 --> 00:37:36,080
Speaker 1: tho dollars. After paying tuition, living costs and visa fees,

842
00:37:36,160 --> 00:37:39,239
Speaker 1: I'll have about forty left and I plan to stay

843
00:37:39,239 --> 00:37:42,799
Speaker 1: in England after to find a job. Fingers crossed, I

844
00:37:42,840 --> 00:37:44,560
Speaker 1: wanted to know what you guys thought would be the

845
00:37:44,600 --> 00:37:47,040
Speaker 1: best way to grow this money over the next two

846
00:37:47,120 --> 00:37:49,719
Speaker 1: to three years. While I'm away, I won't need the

847
00:37:49,760 --> 00:37:53,040
Speaker 1: money and I plan to also work while studying. I

848
00:37:53,080 --> 00:37:54,920
Speaker 1: hope to put a down payment on a home in

849
00:37:54,960 --> 00:37:57,040
Speaker 1: the UK in the next two to three years with

850
00:37:57,080 --> 00:38:00,120
Speaker 1: that money as well. Thank you guys. I'll be enjoying

851
00:38:00,120 --> 00:38:02,080
Speaker 1: a beer in England for you too, and if you

852
00:38:02,200 --> 00:38:06,279
Speaker 1: ever come visit England, please reach out Maddie Nice. Thanks

853
00:38:06,280 --> 00:38:07,799
Speaker 1: so much for that question. Hey, when you get over

854
00:38:07,840 --> 00:38:09,520
Speaker 1: to the UK, make sure that you check out Cloud

855
00:38:09,520 --> 00:38:11,960
Speaker 1: Water and the Wild Beer Company because those are two

856
00:38:11,960 --> 00:38:15,920
Speaker 1: of our favorites favorite beer breweries from the UK. You know,

857
00:38:15,960 --> 00:38:19,000
Speaker 1: there's Boddington's you can skip that like the Boddington's Pub Aile.

858
00:38:19,560 --> 00:38:21,560
Speaker 1: I feel like that's a very approachable beer for a

859
00:38:21,560 --> 00:38:23,279
Speaker 1: lot of folks. But if you get some hate mail

860
00:38:23,360 --> 00:38:26,000
Speaker 1: from our British listeners, there's nothing wrong with Boddington's. I've

861
00:38:26,000 --> 00:38:27,600
Speaker 1: definitely enjoyed a few of those. But if you want

862
00:38:27,600 --> 00:38:29,160
Speaker 1: to take it up a notch then you can check

863
00:38:29,200 --> 00:38:32,520
Speaker 1: out cloud Water and the Wild Beer Company. Those are

864
00:38:32,520 --> 00:38:35,160
Speaker 1: both some solid ones. But Maddie, we're just proud of

865
00:38:35,200 --> 00:38:37,600
Speaker 1: you for paying for your degree in cash. That that

866
00:38:37,719 --> 00:38:40,360
Speaker 1: is just gonna be awesome. Uh, And just generally speaking,

867
00:38:40,360 --> 00:38:42,479
Speaker 1: you know, we're pumped that you are interested in money

868
00:38:42,520 --> 00:38:45,520
Speaker 1: now that you now have a love for personal finance. Now,

869
00:38:45,560 --> 00:38:47,000
Speaker 1: we're glad that the show has been able to do

870
00:38:47,040 --> 00:38:49,440
Speaker 1: that for you and that new found interest is going

871
00:38:49,480 --> 00:38:51,480
Speaker 1: to pay off in such a big way over the years.

872
00:38:51,760 --> 00:38:54,719
Speaker 1: And also we're not planning any UK travel soon, but

873
00:38:54,760 --> 00:38:56,879
Speaker 1: we'll definitely hiller if we make it across the pond.

874
00:38:56,960 --> 00:38:58,919
Speaker 1: Maybe we'll take a little how the money work trip.

875
00:38:59,280 --> 00:39:02,440
Speaker 1: You can write that off, right, Yeah, that's doesn't mean

876
00:39:02,440 --> 00:39:05,239
Speaker 1: it's free, right, That's what how most people think of

877
00:39:05,400 --> 00:39:08,319
Speaker 1: writing it off. And Matt to Maddie said she saved

878
00:39:08,400 --> 00:39:13,040
Speaker 1: up seventy dollars at the age of Yeah, that's huge

879
00:39:13,120 --> 00:39:16,600
Speaker 1: and rare also with no debt to speak of, zero

880
00:39:16,640 --> 00:39:18,600
Speaker 1: dollars in school debt. Like, what a great way to

881
00:39:18,600 --> 00:39:21,960
Speaker 1: begin life. Because a whole lot of her cohort is

882
00:39:22,239 --> 00:39:24,879
Speaker 1: not in the same financial position, not even close. Um.

883
00:39:24,920 --> 00:39:27,360
Speaker 1: They have a lot of debts and have no savings

884
00:39:27,400 --> 00:39:29,800
Speaker 1: on hand to speak of. Um, And that just starts

885
00:39:29,840 --> 00:39:31,719
Speaker 1: you behind the eight ball. It's tough to start life

886
00:39:31,719 --> 00:39:35,040
Speaker 1: like that. And Yeah, I gotta say I love to

887
00:39:35,200 --> 00:39:38,080
Speaker 1: what Maddie said that she's planning on working while studying.

888
00:39:38,480 --> 00:39:41,560
Speaker 1: I'm a huge proponent of working in some capacity while

889
00:39:41,560 --> 00:39:43,919
Speaker 1: you're in school, even if it's just an on campus job.

890
00:39:44,040 --> 00:39:46,560
Speaker 1: But that's one of those things that in particular in

891
00:39:46,640 --> 00:39:48,760
Speaker 1: modern times, over the last like eight to ten years,

892
00:39:48,960 --> 00:39:51,720
Speaker 1: it seems like a lot of parents and students have agreed,

893
00:39:51,880 --> 00:39:53,640
Speaker 1: let's just focus on your school work. But I think

894
00:39:53,640 --> 00:39:56,960
Speaker 1: there are so many other benefits besides just the income

895
00:39:57,000 --> 00:40:00,359
Speaker 1: that you get from having a job while you're in school. Um.

896
00:40:00,360 --> 00:40:02,920
Speaker 1: I think it's a great thing for a whole lot

897
00:40:02,960 --> 00:40:05,480
Speaker 1: of reasons. Also, it's gonna use some that work experience

898
00:40:05,760 --> 00:40:08,560
Speaker 1: before you actually go out there and try your hand

899
00:40:08,600 --> 00:40:11,120
Speaker 1: at a career. You've got something on your resume and

900
00:40:11,200 --> 00:40:13,160
Speaker 1: you've had to kind of like work with a boss.

901
00:40:13,680 --> 00:40:15,480
Speaker 1: Those those are all really helpful things to learn in

902
00:40:15,480 --> 00:40:17,799
Speaker 1: your early twenties. Yeah, I mean, especially if you're able

903
00:40:17,800 --> 00:40:19,600
Speaker 1: to find a job that's within the industry that you

904
00:40:19,640 --> 00:40:22,279
Speaker 1: want to pursue, right in some capacity. It doesn't have

905
00:40:22,320 --> 00:40:24,360
Speaker 1: to be the exact role, but if you're in the

906
00:40:24,360 --> 00:40:26,920
Speaker 1: same industry, that's I think that speaks volumes to your

907
00:40:26,960 --> 00:40:30,280
Speaker 1: desire to learn and to pursue that specific industry. But Maddie,

908
00:40:30,360 --> 00:40:32,160
Speaker 1: let's get to your question. You know, anytime we're talking

909
00:40:32,200 --> 00:40:35,040
Speaker 1: about growing money that you will need, uh say, in

910
00:40:35,040 --> 00:40:38,560
Speaker 1: the next two to three years, that is a tough question, right,

911
00:40:38,840 --> 00:40:40,560
Speaker 1: you know, if you're able to extend your timeline a

912
00:40:40,560 --> 00:40:43,680
Speaker 1: couple more years, like we could suggest a slightly conservative

913
00:40:43,800 --> 00:40:46,399
Speaker 1: investing plan, but when you don't have much time, there's

914
00:40:46,440 --> 00:40:49,520
Speaker 1: just too much risk involved with putting your money in stocks.

915
00:40:49,880 --> 00:40:52,360
Speaker 1: You could see that forty dollars that you're gonna end

916
00:40:52,440 --> 00:40:55,440
Speaker 1: up having after school, uh you know, you're planning to

917
00:40:55,520 --> 00:40:56,919
Speaker 1: use that for a down payment, but you can see

918
00:40:56,920 --> 00:40:59,759
Speaker 1: that money become you know, twenty five thousand uh in

919
00:40:59,800 --> 00:41:02,480
Speaker 1: that can massively affect your ability to purchase a home.

920
00:41:02,719 --> 00:41:05,840
Speaker 1: It could massively impact some of your plans after you

921
00:41:05,840 --> 00:41:07,920
Speaker 1: get that degree, and so were you to do that,

922
00:41:07,960 --> 00:41:10,640
Speaker 1: you would be taking on a lot of risk putting

923
00:41:10,680 --> 00:41:13,040
Speaker 1: that capital, that money that you've worked so hard to

924
00:41:13,040 --> 00:41:16,120
Speaker 1: save up at risk if you decide to put it

925
00:41:16,120 --> 00:41:17,880
Speaker 1: to work for you in the stock market, and at

926
00:41:17,920 --> 00:41:19,720
Speaker 1: the end of three years, you might be sitting pretty

927
00:41:19,719 --> 00:41:21,160
Speaker 1: you might be in a better position than you would

928
00:41:21,160 --> 00:41:23,719
Speaker 1: have been putting it in an online savings account most likely,

929
00:41:23,719 --> 00:41:26,399
Speaker 1: she will be, most likely. But you can't take that risk,

930
00:41:26,480 --> 00:41:29,200
Speaker 1: especially when it's money that's as important as a downpayment

931
00:41:29,200 --> 00:41:31,640
Speaker 1: from home. And so, yeah, this is this is definitely

932
00:41:31,680 --> 00:41:34,480
Speaker 1: a case where capital preservation is king. And you know,

933
00:41:34,560 --> 00:41:37,560
Speaker 1: CDs maybe would have been a better option than savings

934
00:41:37,560 --> 00:41:39,480
Speaker 1: a couple of years ago, but at this point, but

935
00:41:39,520 --> 00:41:42,359
Speaker 1: there's really not much of a difference in payout between uh,

936
00:41:42,600 --> 00:41:45,840
Speaker 1: you know, high interest online savings account versus a c D.

937
00:41:46,239 --> 00:41:48,520
Speaker 1: You could still opt for a CD to ensure that

938
00:41:48,560 --> 00:41:52,120
Speaker 1: if rates dipped even further, which feels like an impossibility,

939
00:41:52,440 --> 00:41:55,040
Speaker 1: but I guess it could happen. I guess it's hard

940
00:41:55,080 --> 00:41:59,279
Speaker 1: to think of savings rates going even below where they are.

941
00:42:00,000 --> 00:42:02,440
Speaker 1: They're so depressingly low at this current moment, but that

942
00:42:02,440 --> 00:42:04,560
Speaker 1: would at least ensure that the money that you're making

943
00:42:04,600 --> 00:42:07,200
Speaker 1: on your money stays the same over you know, let's

944
00:42:07,200 --> 00:42:09,560
Speaker 1: say a year long period um or or two. But

945
00:42:09,640 --> 00:42:12,560
Speaker 1: something else we're looking into is Series ICE savings bonds.

946
00:42:12,760 --> 00:42:15,600
Speaker 1: You could put ten thousand dollars of your money in there.

947
00:42:15,960 --> 00:42:19,080
Speaker 1: That's the max that you are allowed to purchase in

948
00:42:19,120 --> 00:42:21,680
Speaker 1: I bonds each and every year. Right right now, that's

949
00:42:21,680 --> 00:42:23,359
Speaker 1: sitting in around three and a half percent, So that's

950
00:42:23,360 --> 00:42:26,239
Speaker 1: actually a pretty sweet rate. And you mentioned the first year,

951
00:42:26,280 --> 00:42:28,400
Speaker 1: maybe even like the second year too, so you know

952
00:42:28,480 --> 00:42:31,240
Speaker 1: that next calendar year maybe getting another ten thousand dollars

953
00:42:31,239 --> 00:42:33,240
Speaker 1: in there, But even still you're only looking at half

954
00:42:33,280 --> 00:42:35,360
Speaker 1: of that forty thousand that you're expecting to have. And

955
00:42:35,400 --> 00:42:36,960
Speaker 1: it's important to note that when you put your money

956
00:42:37,000 --> 00:42:39,000
Speaker 1: in a Series IE savings fund, you have to hold

957
00:42:39,040 --> 00:42:41,120
Speaker 1: that bond for a minimum of a year. So let's

958
00:42:41,120 --> 00:42:42,360
Speaker 1: say you did it next year, and then at the

959
00:42:42,440 --> 00:42:44,279
Speaker 1: end of that year, you were like, I need that money.

960
00:42:44,280 --> 00:42:46,040
Speaker 1: Now you can't get it your You can't have to

961
00:42:46,080 --> 00:42:48,759
Speaker 1: wait for a couple of months. Yeah, exactly. So Yeah,

962
00:42:48,800 --> 00:42:51,960
Speaker 1: another option would be to invest in short term government bonds,

963
00:42:52,000 --> 00:42:54,600
Speaker 1: like through an index fund with a company like Vanguard.

964
00:42:54,840 --> 00:42:57,960
Speaker 1: That's another worthwhile option for short term funds that you

965
00:42:58,040 --> 00:43:00,960
Speaker 1: just can't afford to see dip in value. You But really,

966
00:43:01,000 --> 00:43:03,120
Speaker 1: when we're talking about in particularly like a two ish

967
00:43:03,200 --> 00:43:06,839
Speaker 1: year timeline, there's just not much else that you can do. Really,

968
00:43:06,880 --> 00:43:09,239
Speaker 1: you just gotta kind of avoid risk. Yeah, these are

969
00:43:09,239 --> 00:43:12,319
Speaker 1: all good options. Definitely, at least getting that at least

970
00:43:12,360 --> 00:43:14,319
Speaker 1: that first year's worth of ten thousand dollars in a

971
00:43:14,320 --> 00:43:16,759
Speaker 1: Series I bond, that's a pretty great option for what

972
00:43:16,840 --> 00:43:18,680
Speaker 1: you have. But all the rest of the options available

973
00:43:18,680 --> 00:43:21,239
Speaker 1: to you aren't great. They're just good. Uh. And like

974
00:43:21,280 --> 00:43:23,520
Speaker 1: we said earlier, yeah, this is about preservation of cattle.

975
00:43:23,560 --> 00:43:24,799
Speaker 1: You're not going to be able to grow your money

976
00:43:24,840 --> 00:43:26,360
Speaker 1: a ton, but you might be able to grow it

977
00:43:26,400 --> 00:43:28,280
Speaker 1: a little bit. True. All right, Matt, Well, that's gonna

978
00:43:28,280 --> 00:43:29,959
Speaker 1: do it. For questions, Let's get back to the beer

979
00:43:29,960 --> 00:43:32,400
Speaker 1: that we had on this episode. While we were answering

980
00:43:32,440 --> 00:43:35,480
Speaker 1: these questions, we had a Cascade Brewing Creek which is

981
00:43:36,080 --> 00:43:39,080
Speaker 1: barely age sour with a bunch of cherries in there. So, yeah,

982
00:43:39,120 --> 00:43:40,640
Speaker 1: what were your thoughts on this, speer Man? Well, I

983
00:43:40,640 --> 00:43:42,359
Speaker 1: will say, even though it had a bunch of cherries.

984
00:43:42,360 --> 00:43:43,600
Speaker 1: So I'm reading the back of it here and it

985
00:43:43,640 --> 00:43:47,600
Speaker 1: says they have more than sixteen thousand pounds of being

986
00:43:47,800 --> 00:43:50,600
Speaker 1: and sour pie cherries in this beer. Granted not this

987
00:43:50,640 --> 00:43:53,279
Speaker 1: one bottle like over in the entire badge when they

988
00:43:53,280 --> 00:43:56,120
Speaker 1: made it, even though there are that many cherries in here.

989
00:43:56,320 --> 00:43:57,800
Speaker 1: I feel like the it's kind of light on the

990
00:43:57,880 --> 00:44:00,799
Speaker 1: cherry flavor, and I think they you one reason for

991
00:44:00,840 --> 00:44:04,440
Speaker 1: that is that this is UH sour, and so I've

992
00:44:04,440 --> 00:44:08,040
Speaker 1: had experience with having some older sour beers where they

993
00:44:08,080 --> 00:44:12,239
Speaker 1: lose some of their vibrancy. Like it's still a good beer, right, Like,

994
00:44:12,280 --> 00:44:15,760
Speaker 1: this is totally still a great barrel aged sour ale.

995
00:44:16,239 --> 00:44:19,160
Speaker 1: But this is specifically, you know, a creek, and when

996
00:44:19,280 --> 00:44:21,279
Speaker 1: typically with a creek you can taste a lot of cherry.

997
00:44:21,320 --> 00:44:22,840
Speaker 1: I don't feel like we're tasting a whole lot of

998
00:44:22,920 --> 00:44:27,040
Speaker 1: cherry uh in this particular beer. Do you agree or disagree? Agree?

999
00:44:27,040 --> 00:44:29,520
Speaker 1: I think this one has a little more of like

1000
00:44:29,600 --> 00:44:33,200
Speaker 1: the vinegar tartness, and it's very very tart, but which

1001
00:44:33,239 --> 00:44:35,840
Speaker 1: I like. Again, I'm not complaining. It's like a different

1002
00:44:35,840 --> 00:44:38,880
Speaker 1: style than I was expecting. Agreed, and I prefer my

1003
00:44:38,920 --> 00:44:41,160
Speaker 1: creeks to have like be bursting with cherry flavor, and

1004
00:44:41,200 --> 00:44:43,600
Speaker 1: this one wasn't that. But it was still a really

1005
00:44:43,640 --> 00:44:45,920
Speaker 1: good beer. It just wasn't what I was expecting when

1006
00:44:45,920 --> 00:44:48,040
Speaker 1: I cracked the bottle open. Yeah, so Cascade they make,

1007
00:44:48,120 --> 00:44:50,960
Speaker 1: so you know, we're sharing just a little small MILLI

1008
00:44:51,040 --> 00:44:53,640
Speaker 1: later bottle. Right, So oftentimes they make some of these

1009
00:44:53,719 --> 00:44:56,280
Speaker 1: nicer beers in a big seven fifty bottle, and those

1010
00:44:56,360 --> 00:44:59,279
Speaker 1: bottles can often cost like around thirty bucks. And so

1011
00:44:59,320 --> 00:45:01,839
Speaker 1: the reason I know that sometimes you can lose some

1012
00:45:01,920 --> 00:45:06,240
Speaker 1: of that actual fruit flavor is recently I came across

1013
00:45:06,400 --> 00:45:08,640
Speaker 1: in the back of a liquor store here in Atlanta.

1014
00:45:08,680 --> 00:45:10,600
Speaker 1: They had a bunch of those seven fifties, which are

1015
00:45:10,640 --> 00:45:13,520
Speaker 1: normally thirty bucks, uh typically right for one of those

1016
00:45:13,600 --> 00:45:16,239
Speaker 1: nice bottles. They had them there for five nine nine,

1017
00:45:17,040 --> 00:45:19,720
Speaker 1: and I thought, oh my gosh, I hit the jackpot.

1018
00:45:19,800 --> 00:45:22,960
Speaker 1: Nobody knows what these are. I'm about to score. I

1019
00:45:22,960 --> 00:45:24,360
Speaker 1: want to scoop all these up and take them home.

1020
00:45:24,400 --> 00:45:26,080
Speaker 1: But then I realized that the date on them was

1021
00:45:26,120 --> 00:45:32,080
Speaker 1: I think they were like bottles even older, and I thought, Okay,

1022
00:45:32,120 --> 00:45:34,800
Speaker 1: they've definitely lost some of their edge. But I was

1023
00:45:34,840 --> 00:45:37,000
Speaker 1: still willing to go out on a limb, and I

1024
00:45:37,040 --> 00:45:39,719
Speaker 1: bought one of them, like the Saying Noir, which is

1025
00:45:39,760 --> 00:45:42,360
Speaker 1: like a really really nice one. Took it home, cracked

1026
00:45:42,360 --> 00:45:44,560
Speaker 1: it up and poured it and it turned out, Yeah,

1027
00:45:44,680 --> 00:45:47,399
Speaker 1: it was pretty vinegary. It didn't have a whole lot

1028
00:45:47,400 --> 00:45:49,799
Speaker 1: of actual flavor, a lot of tartness, and in that

1029
00:45:49,840 --> 00:45:52,720
Speaker 1: one there was hardly even any like oak nous left.

1030
00:45:53,160 --> 00:45:56,400
Speaker 1: It was just pretty sour. And so if you happen

1031
00:45:56,480 --> 00:45:58,120
Speaker 1: to be in a liquor store and you see some

1032
00:45:58,200 --> 00:46:01,239
Speaker 1: dusty bottles of Cascade uh, and you know, back on

1033
00:46:01,280 --> 00:46:04,200
Speaker 1: the clearance rack, it might be worth risking it if

1034
00:46:04,440 --> 00:46:07,400
Speaker 1: maybe they're twenty seventeen or newer, but definitely I would

1035
00:46:07,400 --> 00:46:10,759
Speaker 1: recommend that folks avoid them if they're older than that. Yeah,

1036
00:46:10,800 --> 00:46:13,040
Speaker 1: which is interesting because some of those beers that have

1037
00:46:13,120 --> 00:46:15,440
Speaker 1: been aged like this, they can do well on the

1038
00:46:15,440 --> 00:46:17,839
Speaker 1: shelf for quite a while. But I think particularly when

1039
00:46:17,840 --> 00:46:20,239
Speaker 1: there's fruit involved, you're gonna be missing. I guess that's it.

1040
00:46:20,560 --> 00:46:22,439
Speaker 1: Some of those nice fruit toes that you would normally

1041
00:46:22,480 --> 00:46:24,520
Speaker 1: get if it if it didn't hang out so long

1042
00:46:24,520 --> 00:46:26,640
Speaker 1: and you drank it sooner. But that's gonna do it

1043
00:46:26,680 --> 00:46:29,120
Speaker 1: for today's episode. We'll have show notes up for this

1044
00:46:29,200 --> 00:46:31,359
Speaker 1: episode on our website at how to money dot com.

1045
00:46:31,520 --> 00:46:33,879
Speaker 1: That's right, And maybe this is the first time you've

1046
00:46:33,920 --> 00:46:35,600
Speaker 1: listened to How the Money. Maybe you're just like kind

1047
00:46:35,600 --> 00:46:37,560
Speaker 1: of sitting out by the pool, kind of looking through

1048
00:46:37,600 --> 00:46:39,480
Speaker 1: different ways that you can handle your money better, and

1049
00:46:39,480 --> 00:46:41,439
Speaker 1: you're listening to some podcasts you found How the Money.

1050
00:46:41,600 --> 00:46:43,520
Speaker 1: We would love it if you subscribe to our show.

1051
00:46:43,800 --> 00:46:46,160
Speaker 1: We don't want you missing an episode. And if you

1052
00:46:46,200 --> 00:46:48,160
Speaker 1: are a long time listener of How the Money, we

1053
00:46:48,160 --> 00:46:49,799
Speaker 1: would love it if you were to leave us a

1054
00:46:49,840 --> 00:46:52,879
Speaker 1: positive wherever it is that you listen to your podcast. Yeah,

1055
00:46:52,880 --> 00:46:55,239
Speaker 1: if we've ever saved you a few bucks, leave us

1056
00:46:55,239 --> 00:46:57,560
Speaker 1: a review and mentioned that in the review, because people

1057
00:46:57,600 --> 00:47:00,000
Speaker 1: love hearing that this podcast is actually gonna save you money.

1058
00:47:00,000 --> 00:47:01,560
Speaker 1: So if you found out a way to save on

1059
00:47:01,600 --> 00:47:03,719
Speaker 1: travel or a way to invest better, um that you

1060
00:47:03,760 --> 00:47:06,400
Speaker 1: didn't know about before, put that inside the review just

1061
00:47:06,480 --> 00:47:08,040
Speaker 1: makes it more vibrant. And I mean it makes me

1062
00:47:08,080 --> 00:47:11,120
Speaker 1: feel better too, Like like we were not directly connected

1063
00:47:11,160 --> 00:47:13,200
Speaker 1: to our listeners, but whenever we do get to hear

1064
00:47:13,239 --> 00:47:14,880
Speaker 1: from listeners and they tell us ways that they've been

1065
00:47:14,920 --> 00:47:17,440
Speaker 1: able to, you know, change their habits for the better

1066
00:47:17,719 --> 00:47:19,880
Speaker 1: and they're able to save more money. That just pours

1067
00:47:19,920 --> 00:47:22,279
Speaker 1: gasoline on the fire. That is how the money, and

1068
00:47:22,440 --> 00:47:24,840
Speaker 1: it kind of propels us forward. So thanks in advance

1069
00:47:25,040 --> 00:47:27,520
Speaker 1: for that, So Joel, that's gonna be it for this episode, buddy,

1070
00:47:27,600 --> 00:47:30,399
Speaker 1: until next time. Best Friends Out, Best Friends Out,