1 00:00:00,120 --> 00:00:03,040 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt, 2 00:00:03,160 --> 00:00:25,680 Speaker 1: and today we're answering your listener questions. That's right, buddy, 3 00:00:25,720 --> 00:00:28,560 Speaker 1: We've got a listener question Monday episode lined up for 4 00:00:28,560 --> 00:00:32,640 Speaker 1: our listeners. We've got five great ones, including a listener 5 00:00:32,720 --> 00:00:36,280 Speaker 1: who's interested and snagging some of those bank bonuses. He 6 00:00:36,320 --> 00:00:38,479 Speaker 1: wants to know if there's any downsides to that we 7 00:00:38,560 --> 00:00:43,040 Speaker 1: will discuss. Another listener is wanting to invest in the 8 00:00:43,040 --> 00:00:46,040 Speaker 1: best way possible during this current market, this current bear market, 9 00:00:46,159 --> 00:00:48,320 Speaker 1: so we will give our thoughts on that one. And 10 00:00:48,479 --> 00:00:52,200 Speaker 1: another listener he's got a kitchen appliance frugal or cheap 11 00:00:52,800 --> 00:00:54,680 Speaker 1: looking forward? I'm actually really looking forward to that question. 12 00:00:55,240 --> 00:00:57,640 Speaker 1: It's a good one. We've got those plus two others. 13 00:00:57,760 --> 00:00:59,920 Speaker 1: We're gonna tackle all of those during this episode. May 14 00:01:00,120 --> 00:01:03,000 Speaker 1: frugals are cheap are always fun because they are. It's 15 00:01:03,000 --> 00:01:05,000 Speaker 1: just a little more personal. But it's a interject some 16 00:01:05,040 --> 00:01:07,679 Speaker 1: of our personal opinions are a little bit uh. We 17 00:01:07,720 --> 00:01:10,720 Speaker 1: all come down on different spots inside that argument from 18 00:01:10,760 --> 00:01:12,600 Speaker 1: time to time in our own personal lives, right Like, 19 00:01:12,640 --> 00:01:15,480 Speaker 1: we all have those those conundrums that we have to make, 20 00:01:15,520 --> 00:01:18,160 Speaker 1: like is this purchase or is this non purchase, Like, 21 00:01:18,280 --> 00:01:19,800 Speaker 1: is it's great about him? Is that? Like, there's no 22 00:01:19,840 --> 00:01:22,320 Speaker 1: clear right answer typically right, because it does come down 23 00:01:22,319 --> 00:01:24,760 Speaker 1: to your your personal opinion and how you feel about 24 00:01:24,800 --> 00:01:27,360 Speaker 1: something where you are on your financial journey. All of 25 00:01:27,360 --> 00:01:29,720 Speaker 1: the above. I literally saw on our Facebook group recently 26 00:01:29,760 --> 00:01:33,200 Speaker 1: somebody said, Okay, so when I I'm slower reading a 27 00:01:33,240 --> 00:01:35,360 Speaker 1: book and because of that, like the library wants that 28 00:01:35,360 --> 00:01:37,600 Speaker 1: book back before I'm ready to give it back. And 29 00:01:37,600 --> 00:01:39,240 Speaker 1: he said, the way around this is to turn the 30 00:01:39,319 --> 00:01:41,920 Speaker 1: WiFi off, and that way the library can't rip that 31 00:01:41,959 --> 00:01:45,000 Speaker 1: book out of my handle. And I was like, that's brilliant. 32 00:01:45,000 --> 00:01:47,200 Speaker 1: Some people might say that's cheap. I'm gonna say that's frugal. 33 00:01:47,280 --> 00:01:49,840 Speaker 1: Turn the WiFi off, just keep reading until you're done, 34 00:01:49,840 --> 00:01:51,160 Speaker 1: and then turn it back on so they can get 35 00:01:51,160 --> 00:01:54,880 Speaker 1: their book back. I might call that cheap. It's a 36 00:01:54,880 --> 00:01:57,160 Speaker 1: good tactic. All right. I've got a quick little something 37 00:01:57,200 --> 00:01:59,600 Speaker 1: I want to share with folks. You know, earlier a 38 00:01:59,600 --> 00:02:02,880 Speaker 1: few months ago, we shared actually dedicated an entire episode 39 00:02:03,120 --> 00:02:06,160 Speaker 1: to some of the factors you need to consider when 40 00:02:06,240 --> 00:02:09,120 Speaker 1: you are thinking about moving. That was actually is an 41 00:02:09,360 --> 00:02:14,280 Speaker 1: episode five, but within that episode we talked about just 42 00:02:14,480 --> 00:02:17,240 Speaker 1: all the different factors that we were considering, the different 43 00:02:17,240 --> 00:02:19,680 Speaker 1: things that we took into account before we decided to 44 00:02:19,680 --> 00:02:22,840 Speaker 1: move our families. Uh, the different things we wanted to prioritize. 45 00:02:22,919 --> 00:02:25,200 Speaker 1: Twenty miles north of the city. It's a big move 46 00:02:25,240 --> 00:02:26,920 Speaker 1: for our families, even though it fields kind of small, 47 00:02:27,000 --> 00:02:29,880 Speaker 1: just a twenty mile it's twenty mile blip, it's it's culturally, 48 00:02:29,880 --> 00:02:32,519 Speaker 1: it was a very it was a big move, yeah, 49 00:02:32,520 --> 00:02:34,560 Speaker 1: I should say, but I mean the things that we 50 00:02:34,560 --> 00:02:36,280 Speaker 1: talked about though, I think it was a good episode. 51 00:02:36,360 --> 00:02:38,480 Speaker 1: I think the parameters and the factors that we considered, 52 00:02:38,480 --> 00:02:40,720 Speaker 1: I think they still hold. But one of the things 53 00:02:41,000 --> 00:02:46,080 Speaker 1: we didn't consider was how creating a new community, basically 54 00:02:46,080 --> 00:02:49,480 Speaker 1: finding new friends, how that was going to cost us money. 55 00:02:49,600 --> 00:02:52,280 Speaker 1: Well that's because for you, Matt in particular, you have 56 00:02:52,280 --> 00:02:55,919 Speaker 1: to buy your friends. That is, that's true, to pay folks. 57 00:02:56,080 --> 00:02:57,280 Speaker 1: And then you're like, oh, I guess I can be 58 00:02:57,320 --> 00:03:01,200 Speaker 1: this guy's real, actual friend. Uh know. I wanted specifically 59 00:03:01,200 --> 00:03:04,480 Speaker 1: to highlights the fact that we no longer have hand 60 00:03:04,520 --> 00:03:06,880 Speaker 1: me downs back where when we were living in town. 61 00:03:06,919 --> 00:03:08,880 Speaker 1: I mean we were living there for over a decade, 62 00:03:09,040 --> 00:03:12,600 Speaker 1: and what that meant was years and years of developing friendships. Also, 63 00:03:12,720 --> 00:03:15,520 Speaker 1: some of our friends who were developing friends friendships with 64 00:03:15,840 --> 00:03:17,880 Speaker 1: had older kids, which meant we kind of had like 65 00:03:17,919 --> 00:03:21,480 Speaker 1: the steady pipeline, the steady stream of hand me down 66 00:03:21,520 --> 00:03:26,120 Speaker 1: clothes in particular for our girls. And after, I mean, 67 00:03:26,200 --> 00:03:28,400 Speaker 1: Kate was just like, oh my gosh, I can't believe 68 00:03:28,400 --> 00:03:30,520 Speaker 1: how much money we're spending out on on kids clothes 69 00:03:30,560 --> 00:03:32,640 Speaker 1: because we don't have those hand me downs. And so 70 00:03:33,120 --> 00:03:35,920 Speaker 1: I guess I wanted to mention that because that's really 71 00:03:36,000 --> 00:03:37,760 Speaker 1: valuable if you if you have that built up in 72 00:03:37,800 --> 00:03:39,880 Speaker 1: your life, that's that's an awesome thing. Don't take it 73 00:03:39,880 --> 00:03:42,800 Speaker 1: for granted. But this is also just something to keep 74 00:03:42,840 --> 00:03:46,920 Speaker 1: in mind. It's not necessarily going to be a reason 75 00:03:47,000 --> 00:03:48,760 Speaker 1: for you to not move if you feel like you 76 00:03:48,760 --> 00:03:51,000 Speaker 1: should move, or you know, or to stay put, but 77 00:03:51,120 --> 00:03:53,840 Speaker 1: it is something to keep in mind. We are definitely 78 00:03:53,880 --> 00:03:58,000 Speaker 1: seeing our clothing budget for the kids in particular impacted 79 00:03:58,360 --> 00:04:00,920 Speaker 1: negatively because we don't have those hand me downs. Yeah, 80 00:04:00,920 --> 00:04:03,040 Speaker 1: it's funny. Our neighbors two doors down they have a 81 00:04:03,040 --> 00:04:04,560 Speaker 1: four year old boy. We have a three year old boy, 82 00:04:04,560 --> 00:04:06,080 Speaker 1: and I was thinking, because that we're gonna we'll get 83 00:04:06,120 --> 00:04:08,240 Speaker 1: some hand me downs. Except for my three year old 84 00:04:08,320 --> 00:04:11,280 Speaker 1: is a giant and he's actually is pretty tall. He's 85 00:04:11,280 --> 00:04:13,680 Speaker 1: probably wearing Biger clothes. He's a freak four year old 86 00:04:13,720 --> 00:04:17,200 Speaker 1: like you exactly, So no hand me downs probably coming 87 00:04:17,240 --> 00:04:18,960 Speaker 1: from that direction. But now that's that, You're right, that's 88 00:04:19,000 --> 00:04:20,960 Speaker 1: a big that can save a lot of money, because 89 00:04:21,320 --> 00:04:23,600 Speaker 1: especially when you're clothing as many kiddos as you are, 90 00:04:24,360 --> 00:04:26,280 Speaker 1: four kids. Man, it's just not something we were considering 91 00:04:26,520 --> 00:04:28,360 Speaker 1: and all of a sudden we're like, why are we spinning? 92 00:04:28,400 --> 00:04:32,960 Speaker 1: So oh, we're having to buy clothes now, Whereas literally, 93 00:04:33,000 --> 00:04:35,160 Speaker 1: I mean, I don't think we hardly ever purchased new 94 00:04:35,480 --> 00:04:38,880 Speaker 1: new clothes, like maybe one new outfit a year, you know, 95 00:04:38,920 --> 00:04:41,080 Speaker 1: like before you take pictures or something like that, and 96 00:04:41,120 --> 00:04:43,000 Speaker 1: then they would just wear that outfit into the ground 97 00:04:43,040 --> 00:04:45,240 Speaker 1: for the next year, in addition to all the all 98 00:04:45,279 --> 00:04:46,719 Speaker 1: the old hand me downs that show up in the 99 00:04:47,120 --> 00:04:49,039 Speaker 1: you know, giant garbage. But really, you're right, I didn't 100 00:04:49,080 --> 00:04:50,960 Speaker 1: even think about that. But that is just you'll feel 101 00:04:51,000 --> 00:04:53,800 Speaker 1: it here, so I know if yeah, if you'll haven't already, 102 00:04:53,800 --> 00:04:55,839 Speaker 1: I'm sure, well I will say. The nice thing about 103 00:04:56,560 --> 00:04:59,760 Speaker 1: uniforms at school is we've had to buy fewer clothes 104 00:05:00,160 --> 00:05:03,359 Speaker 1: and uniforms with there there are used uniform sales at 105 00:05:03,360 --> 00:05:06,120 Speaker 1: the school, which and you can get tops and bottoms 106 00:05:06,120 --> 00:05:08,760 Speaker 1: for two or three dollars, like really cheap. So that 107 00:05:08,839 --> 00:05:11,279 Speaker 1: has been helpful when it comes to our clothing budget. 108 00:05:11,480 --> 00:05:14,520 Speaker 1: I've appreciated that. But yeah, that is a downside of 109 00:05:14,520 --> 00:05:16,719 Speaker 1: of moving, although for the most part it's been a 110 00:05:16,760 --> 00:05:19,440 Speaker 1: good thing for both of our families. But still for it, 111 00:05:19,520 --> 00:05:21,760 Speaker 1: still glad we did it. We're like five months in now, 112 00:05:22,040 --> 00:05:24,320 Speaker 1: definitely don't regret it. Yep, same here. All right, let's 113 00:05:24,400 --> 00:05:26,200 Speaker 1: let's move on. Matt. Let's mention the beer we're having 114 00:05:26,240 --> 00:05:30,320 Speaker 1: on this episode. This is utter chaos. That's a cowpond. 115 00:05:30,400 --> 00:05:32,800 Speaker 1: This is a milk style bolks out. Let's see what 116 00:05:32,839 --> 00:05:36,039 Speaker 1: you did there by Talisman Brewing. And thanks to a 117 00:05:36,040 --> 00:05:38,919 Speaker 1: friend of the show, Andy for dropping this beer off 118 00:05:39,200 --> 00:05:40,719 Speaker 1: for us. We'll give our thoughts at the end of 119 00:05:40,720 --> 00:05:43,520 Speaker 1: the episode, but for now, Matt, let's get onto the 120 00:05:43,560 --> 00:05:46,520 Speaker 1: topic of hand. We're answering listener questions. We are for 121 00:05:46,560 --> 00:05:48,760 Speaker 1: folks who want to ask us a question. We'd love 122 00:05:48,800 --> 00:05:50,200 Speaker 1: to hear it. Just go to how to money dot 123 00:05:50,200 --> 00:05:53,000 Speaker 1: com slash ask. There are simple instructions there for you 124 00:05:53,040 --> 00:05:55,240 Speaker 1: to record a voice memo, send it our way, and 125 00:05:55,240 --> 00:05:58,160 Speaker 1: hopefully we'll take it on the next Ask htm episode. 126 00:05:58,320 --> 00:06:00,640 Speaker 1: This first one that we're gonna get to is a 127 00:06:00,720 --> 00:06:04,960 Speaker 1: frugal or cheap about a dishwasher. Hey, Matt and Joe, 128 00:06:05,080 --> 00:06:08,480 Speaker 1: this is a b in San Antonio, Texas. My question 129 00:06:08,680 --> 00:06:13,720 Speaker 1: today is kind of a frugal or cheap question, also 130 00:06:14,240 --> 00:06:17,360 Speaker 1: kind of a two for one here. So I have 131 00:06:17,640 --> 00:06:20,840 Speaker 1: a dishwasher that I never use for dishwashing. I use 132 00:06:20,880 --> 00:06:23,360 Speaker 1: it more for storage. Um. I don't know if it's 133 00:06:23,360 --> 00:06:26,720 Speaker 1: a Latino thing, but we really don't use the dishwasher 134 00:06:26,920 --> 00:06:30,320 Speaker 1: for washing dishes. So when I was remodeed in my kitchen, 135 00:06:30,839 --> 00:06:32,680 Speaker 1: I asked my wife, Hey, why are we going to 136 00:06:32,760 --> 00:06:36,120 Speaker 1: go and drop six on the new dishwasher when we 137 00:06:36,160 --> 00:06:38,560 Speaker 1: don't use it for dishwashing. How about we just install 138 00:06:38,600 --> 00:06:41,880 Speaker 1: a new cabinet in that place. In the new cabinet 139 00:06:41,920 --> 00:06:44,440 Speaker 1: is a lot less, maybe a hundred two hundred bucks 140 00:06:44,480 --> 00:06:48,520 Speaker 1: for the new cabinet. So by doing that, let's say 141 00:06:48,600 --> 00:06:50,920 Speaker 1: in two years to three years, I want to either 142 00:06:50,960 --> 00:06:54,560 Speaker 1: sell the house or rent it out. Would that hurt 143 00:06:54,680 --> 00:06:58,240 Speaker 1: the value of the home for not having a dishwasher there? 144 00:06:58,400 --> 00:07:01,000 Speaker 1: Or is it something that maybe people would turn a 145 00:07:01,040 --> 00:07:04,040 Speaker 1: blind eye too. Um, is it something that maybe I 146 00:07:04,080 --> 00:07:06,400 Speaker 1: should just bite the bullet right now and pay for 147 00:07:06,440 --> 00:07:10,440 Speaker 1: the dishwasher and continue using it as storage so then 148 00:07:10,440 --> 00:07:12,800 Speaker 1: when I do go to resell or rent place it 149 00:07:12,880 --> 00:07:16,720 Speaker 1: does have a dishwasher. What do you guys think? Thanks? 150 00:07:16,760 --> 00:07:19,720 Speaker 1: All right, A B. We appreciate your question, and for 151 00:07:19,760 --> 00:07:21,400 Speaker 1: everyone else out there for a little a little bit 152 00:07:21,440 --> 00:07:25,080 Speaker 1: of context. We we talked about how a good chunk 153 00:07:25,120 --> 00:07:28,640 Speaker 1: of folks don't actually use their dishwashers in a recent episode. 154 00:07:28,680 --> 00:07:31,280 Speaker 1: I was just shocked to see that's that, Like, what 155 00:07:31,360 --> 00:07:33,960 Speaker 1: was it like a quarter of people? Was a surprisingly 156 00:07:34,120 --> 00:07:38,200 Speaker 1: high percentage of folks were like why definitely didn't. Wasn't 157 00:07:38,240 --> 00:07:40,800 Speaker 1: something that I was aware of, because instead what they 158 00:07:40,800 --> 00:07:42,680 Speaker 1: do that like they opt to wash their their dishes 159 00:07:42,680 --> 00:07:45,520 Speaker 1: by hand, so that way, the dishwasher it just often 160 00:07:45,600 --> 00:07:47,840 Speaker 1: ends up being used the way that a b uses 161 00:07:48,160 --> 00:07:51,120 Speaker 1: his as an expensive storage device or a drying rack, 162 00:07:51,160 --> 00:07:54,080 Speaker 1: which is what my mom did. Uh. It's also interesting, 163 00:07:54,400 --> 00:07:56,040 Speaker 1: like maybe it's not Ah, I thought maybe it was 164 00:07:56,040 --> 00:07:58,680 Speaker 1: an Asian thing, because if it is, literally I hadn't 165 00:07:58,680 --> 00:08:01,360 Speaker 1: heard of anybody else doing that really before I see 166 00:08:01,400 --> 00:08:02,840 Speaker 1: my mom doing that, and I was like, well, maybe 167 00:08:02,840 --> 00:08:05,320 Speaker 1: that's just kind of like a maybe it's just a 168 00:08:05,360 --> 00:08:07,680 Speaker 1: minorities thing. But I mean, what we would say is 169 00:08:07,680 --> 00:08:09,720 Speaker 1: the biggest downside of doing this is is actually that 170 00:08:09,760 --> 00:08:13,400 Speaker 1: if you have a dishwasher, using it will in fact 171 00:08:13,640 --> 00:08:17,560 Speaker 1: save you money because dishwashers they use very little electricity 172 00:08:17,800 --> 00:08:20,320 Speaker 1: and you're gonna use much less water than you would 173 00:08:20,400 --> 00:08:22,520 Speaker 1: use if you were to wash the dishes by hand. 174 00:08:22,960 --> 00:08:25,800 Speaker 1: Full sized dishwashers today they can't use more than five 175 00:08:25,840 --> 00:08:28,840 Speaker 1: gallons of water uh per load, and if you want 176 00:08:28,840 --> 00:08:30,960 Speaker 1: to be considered an energy star appliance, you can only 177 00:08:31,040 --> 00:08:32,920 Speaker 1: use three and a half gallons uh. And so you 178 00:08:32,920 --> 00:08:35,520 Speaker 1: compare that to an average of more than twenty six 179 00:08:35,520 --> 00:08:38,560 Speaker 1: gallons of water were you to wash an entire load 180 00:08:38,559 --> 00:08:41,480 Speaker 1: by hand. Uh. You see how you would actually end 181 00:08:41,520 --> 00:08:45,080 Speaker 1: up saving money this way, uh by actually using your dishwasher. 182 00:08:45,480 --> 00:08:47,400 Speaker 1: So yeah, that being said, let's get into this this 183 00:08:47,559 --> 00:08:51,440 Speaker 1: uh frugal or cheap debate. Let's do it. I'm gonna 184 00:08:51,440 --> 00:08:53,840 Speaker 1: say what a B is doing here is is frugal 185 00:08:54,000 --> 00:08:55,599 Speaker 1: and not cheap. That's kind of the t L the R. 186 00:08:55,679 --> 00:08:57,800 Speaker 1: But you think it's frugal for him to use his 187 00:08:57,880 --> 00:09:00,199 Speaker 1: dishwasher as a storage device, or just for them to 188 00:09:00,200 --> 00:09:02,360 Speaker 1: consider not putting, consider not cutting one in in this 189 00:09:02,400 --> 00:09:04,840 Speaker 1: re model, I would say that opting to forego in 190 00:09:04,880 --> 00:09:07,480 Speaker 1: selling a dishwasher in his house if if he doesn't 191 00:09:07,559 --> 00:09:09,240 Speaker 1: use one, that makes sense to me, like why put 192 00:09:09,280 --> 00:09:10,599 Speaker 1: in something that you're not that you're not going to 193 00:09:10,760 --> 00:09:13,880 Speaker 1: use just because everybody else is doing it? Why spend 194 00:09:13,960 --> 00:09:16,760 Speaker 1: hundreds of dollars math that he doesn't have to if 195 00:09:16,760 --> 00:09:19,080 Speaker 1: he's just not the dishwasher kind of person, or even 196 00:09:19,120 --> 00:09:21,000 Speaker 1: like a thousand plus if you're looking to get in 197 00:09:21,040 --> 00:09:23,880 Speaker 1: one of those German dishwashers that don't break, now you 198 00:09:23,880 --> 00:09:25,440 Speaker 1: can get a Bosch like six hundred bucks. And by 199 00:09:25,440 --> 00:09:26,719 Speaker 1: the way, when you look at you get down on 200 00:09:26,760 --> 00:09:29,760 Speaker 1: sale that consumer reports that top dishwashers, bosh, there takes 201 00:09:29,760 --> 00:09:31,840 Speaker 1: like the top ten spots. I'm never going to buy 202 00:09:31,880 --> 00:09:34,000 Speaker 1: any of the other dishwashers. No, no no, I've fixed so 203 00:09:34,040 --> 00:09:37,040 Speaker 1: many dishwashers now because you get one little thing that 204 00:09:37,040 --> 00:09:39,560 Speaker 1: gets down there in that water pump, not things toasts. 205 00:09:39,600 --> 00:09:41,640 Speaker 1: Repairs are expensive, and so go with something that's tried 206 00:09:41,679 --> 00:09:43,920 Speaker 1: and true. And this is not an advertisement for Bosch. 207 00:09:43,960 --> 00:09:47,280 Speaker 1: This is just truly the ratings on consumer reports show 208 00:09:47,320 --> 00:09:49,080 Speaker 1: that the Bosch dishwashers hold up better than the rest 209 00:09:49,080 --> 00:09:52,040 Speaker 1: what we've experienced personally, And after talking with the plumber, 210 00:09:52,080 --> 00:09:56,079 Speaker 1: he's just like, yeah, never have repaired Bosh dishwashers exactly. 211 00:09:56,080 --> 00:09:57,360 Speaker 1: They just work. And I think the last one I 212 00:09:57,400 --> 00:09:59,480 Speaker 1: got was like five R fifty bucks or something. It's 213 00:09:59,520 --> 00:10:03,560 Speaker 1: not They're not like ridiculously expensive either. And but yeah, 214 00:10:03,640 --> 00:10:05,280 Speaker 1: I think it seems like a reasonable move to me 215 00:10:05,360 --> 00:10:07,200 Speaker 1: to put a cabinet there or something like that instead 216 00:10:07,240 --> 00:10:09,360 Speaker 1: of like, instead of sticking a dishwation there so that 217 00:10:09,400 --> 00:10:11,440 Speaker 1: he can utilize it in a way that he's going 218 00:10:11,480 --> 00:10:15,400 Speaker 1: to actually prefer to use it. But here's the thing. 219 00:10:15,760 --> 00:10:19,040 Speaker 1: Aby has to think about the future, because he mentioned 220 00:10:19,080 --> 00:10:21,319 Speaker 1: moving out in a couple of years, and because this renovation, 221 00:10:21,400 --> 00:10:24,719 Speaker 1: this this kitchen remodel, isn't purely for his enjoyment. He's 222 00:10:24,720 --> 00:10:26,880 Speaker 1: thinking he has to be thinking about and is currently 223 00:10:26,920 --> 00:10:30,200 Speaker 1: thinking about resale value or rental value in the future. 224 00:10:30,520 --> 00:10:33,120 Speaker 1: You have to think about how other people are going 225 00:10:33,160 --> 00:10:36,320 Speaker 1: to want to utilize that space, because it's not that 226 00:10:36,360 --> 00:10:38,559 Speaker 1: far in the future when somebody else is going to 227 00:10:38,600 --> 00:10:40,440 Speaker 1: be living there. So I don't know, I would just 228 00:10:40,559 --> 00:10:43,599 Speaker 1: say that you have to think beyond just what you 229 00:10:43,679 --> 00:10:45,480 Speaker 1: prefer in that kitchen re model, you do want to 230 00:10:45,559 --> 00:10:47,920 Speaker 1: choose something like even when you think about something as 231 00:10:47,960 --> 00:10:49,880 Speaker 1: simple as countertops and paint color, Matt, those are the 232 00:10:49,920 --> 00:10:52,040 Speaker 1: kind of things Aby needs to consider if he wants 233 00:10:52,040 --> 00:10:54,199 Speaker 1: to sell or rented out two years from now. He 234 00:10:54,240 --> 00:10:56,959 Speaker 1: wants to make sure it's palatable to a wider audience. 235 00:10:56,960 --> 00:10:59,920 Speaker 1: And I think I do think having not offensive, yeah, 236 00:11:00,080 --> 00:11:02,600 Speaker 1: And I do think having a dishwasher in that uh 237 00:11:02,960 --> 00:11:05,640 Speaker 1: space is going to make it more palatable to a 238 00:11:05,720 --> 00:11:08,240 Speaker 1: large audience. So I think it's frugal to not put 239 00:11:08,240 --> 00:11:10,760 Speaker 1: a dishwasher in if it's all about your personal enjoyment 240 00:11:10,760 --> 00:11:12,520 Speaker 1: and consumption. And this is a place you're planning to 241 00:11:12,520 --> 00:11:14,640 Speaker 1: be for a long time, but it's it's less frugal 242 00:11:14,880 --> 00:11:16,640 Speaker 1: if you're only doing what you want knowing that you're 243 00:11:16,640 --> 00:11:18,360 Speaker 1: not going to be in that place for very long. Sure. Well, 244 00:11:18,400 --> 00:11:21,120 Speaker 1: but that being said, you know again, maybe he said 245 00:11:21,120 --> 00:11:23,720 Speaker 1: that like this might be a Hispanic thing. Um, well, 246 00:11:23,800 --> 00:11:25,280 Speaker 1: even if you were going to move out in a 247 00:11:25,320 --> 00:11:27,360 Speaker 1: couple of years, there's a good chance that you would 248 00:11:27,480 --> 00:11:30,040 Speaker 1: sell the house or rent this place to another Hispanic. 249 00:11:30,360 --> 00:11:33,080 Speaker 1: I just licked up the demographics in San Antonio and 250 00:11:33,080 --> 00:11:36,679 Speaker 1: you're looking at about six of the population, and so 251 00:11:36,760 --> 00:11:38,959 Speaker 1: you know, again this is of course assuming that this 252 00:11:39,040 --> 00:11:40,959 Speaker 1: is more of a cultural thing which we can't really 253 00:11:40,960 --> 00:11:44,520 Speaker 1: speak to, but it is worth considering. Maybe if a 254 00:11:44,520 --> 00:11:48,400 Speaker 1: lot of folks you know, are also barely using their dishwasher, 255 00:11:48,440 --> 00:11:51,720 Speaker 1: well maybe by not installing the dishwasher, it would even 256 00:11:51,760 --> 00:11:54,120 Speaker 1: set your place apart because folks are like, oh yeah, no, 257 00:11:54,200 --> 00:11:56,440 Speaker 1: more wasted space due to the dishwasher beinger that I 258 00:11:56,480 --> 00:11:58,599 Speaker 1: never use. So I think that's worth I don't know 259 00:11:58,679 --> 00:12:00,360 Speaker 1: keeping in mind, but you know, Joel, I do think 260 00:12:00,360 --> 00:12:03,080 Speaker 1: this is true. It could make sense to go ahead 261 00:12:03,120 --> 00:12:07,439 Speaker 1: and install a dishwasher just for future use perhaps. Um, 262 00:12:07,480 --> 00:12:09,120 Speaker 1: But like that being said, I think you could also 263 00:12:09,160 --> 00:12:10,760 Speaker 1: head your bets a little bit here and just make 264 00:12:10,800 --> 00:12:14,679 Speaker 1: sure and install the plumbing for a dishwasher, but then 265 00:12:14,760 --> 00:12:17,719 Speaker 1: maybe just skip dropping the money on the actual dishwasher, 266 00:12:18,080 --> 00:12:20,520 Speaker 1: because maybe you might find that like, this isn't a 267 00:12:20,559 --> 00:12:22,520 Speaker 1: Hispanic thing, right, it's just the you thing? Are you 268 00:12:22,600 --> 00:12:24,800 Speaker 1: and Matt's mom? And if that's the case, like I'm 269 00:12:24,800 --> 00:12:26,840 Speaker 1: guessing a good chunk of buyers and renters like they 270 00:12:26,880 --> 00:12:28,960 Speaker 1: would prefer to have that dishwasher in place, you know, 271 00:12:29,040 --> 00:12:31,280 Speaker 1: I think that's more of an expectation these days. Uh, 272 00:12:31,320 --> 00:12:34,560 Speaker 1: and that could increase your rent. You'll you'll likely find 273 00:12:34,559 --> 00:12:36,959 Speaker 1: that it's in that case that it would be financially 274 00:12:37,000 --> 00:12:40,040 Speaker 1: savvy to go ahead and get one installed before listing 275 00:12:40,080 --> 00:12:43,040 Speaker 1: it um either for sale or for rent. You know, 276 00:12:43,080 --> 00:12:45,640 Speaker 1: while not having one while you're living in the home 277 00:12:45,760 --> 00:12:47,400 Speaker 1: is totally fine, I think it does make sense to 278 00:12:47,520 --> 00:12:50,560 Speaker 1: at least be repaired, sort of take a hybrid approach here, 279 00:12:50,760 --> 00:12:53,080 Speaker 1: and have the ability to install one in the future. Yeah, 280 00:12:53,200 --> 00:12:55,560 Speaker 1: I agree, And and I think if again, if Abe 281 00:12:55,880 --> 00:12:58,480 Speaker 1: is planning on being in this house for the next decade, 282 00:12:58,720 --> 00:13:02,160 Speaker 1: do the remodel to your exact taste, your exact specifications. 283 00:13:02,280 --> 00:13:05,040 Speaker 1: Don't worry nearly as much about retail value. I think 284 00:13:05,040 --> 00:13:07,959 Speaker 1: a lot of people worry too much about resaill value 285 00:13:08,000 --> 00:13:10,959 Speaker 1: when they're doing renovations to their home, especially if it's 286 00:13:10,960 --> 00:13:12,520 Speaker 1: a home and a reno that they're doing where they 287 00:13:12,520 --> 00:13:14,360 Speaker 1: plan to be there a long time. They're looking at 288 00:13:14,400 --> 00:13:16,400 Speaker 1: what's going in on HDTV as opposed to what they 289 00:13:16,440 --> 00:13:19,440 Speaker 1: actually care about what they want. But you do have 290 00:13:19,480 --> 00:13:21,640 Speaker 1: to think more about what other people want if you're 291 00:13:21,640 --> 00:13:23,520 Speaker 1: not planning on being in that space for a long time, 292 00:13:23,880 --> 00:13:26,160 Speaker 1: which it sounds like Abe is not, and maybe best 293 00:13:26,160 --> 00:13:28,560 Speaker 1: of luck as you hopefully become a landlord here in 294 00:13:28,559 --> 00:13:30,640 Speaker 1: the near future, or if you sell, we hope you 295 00:13:30,679 --> 00:13:32,760 Speaker 1: do well in that regard. I really do like the 296 00:13:32,800 --> 00:13:34,880 Speaker 1: fact that he's thinking two or three years out into 297 00:13:34,880 --> 00:13:37,199 Speaker 1: the future and he knows that man, there's a very 298 00:13:37,200 --> 00:13:39,960 Speaker 1: good possibility that this is going to be something we do, 299 00:13:40,440 --> 00:13:43,200 Speaker 1: because that's going to keep him from maybe doing a 300 00:13:43,240 --> 00:13:46,080 Speaker 1: remodel or a customization joll that would only be for 301 00:13:46,160 --> 00:13:48,840 Speaker 1: him and for his family. Instead, it is good to 302 00:13:48,840 --> 00:13:52,320 Speaker 1: think a little more universally what would be universally appreciated. Yeah, 303 00:13:52,520 --> 00:13:54,200 Speaker 1: I mean it would make me think twice about how 304 00:13:54,280 --> 00:13:56,600 Speaker 1: much I'm spending on certain things. Am I getting custom 305 00:13:56,640 --> 00:13:59,079 Speaker 1: cabinets or am I getting Ikea cabinets? Right? Am I 306 00:13:59,120 --> 00:14:03,360 Speaker 1: getting which are solid square foot countertops? Whor am I 307 00:14:03,360 --> 00:14:05,800 Speaker 1: getting the butcher block ones? Like, all the choices you're 308 00:14:05,800 --> 00:14:07,720 Speaker 1: making and how much money you're spending on this remodel 309 00:14:08,040 --> 00:14:10,439 Speaker 1: should be determined in a lot of ways based on 310 00:14:10,800 --> 00:14:14,160 Speaker 1: the potential r o I of the money that you're 311 00:14:14,200 --> 00:14:17,320 Speaker 1: spending right now, because you're thinking about this property as 312 00:14:17,400 --> 00:14:20,400 Speaker 1: a future, as an investment, basically something you're hoping to 313 00:14:20,400 --> 00:14:22,440 Speaker 1: make money on. You have to think about that as 314 00:14:22,440 --> 00:14:25,040 Speaker 1: you're making changes to the property now. Totally. And another 315 00:14:25,200 --> 00:14:28,360 Speaker 1: piece of unsolicited advice that you're not asking about, abe, 316 00:14:28,480 --> 00:14:32,600 Speaker 1: don't get the Carrera marble countertops because those jokers do 317 00:14:32,680 --> 00:14:35,200 Speaker 1: not age well, I mean the age. I guess that's 318 00:14:35,200 --> 00:14:38,000 Speaker 1: the thing, right, because granite it's age less, Like you 319 00:14:38,040 --> 00:14:42,240 Speaker 1: can't really it's really difficult to destroy granite countertops. But 320 00:14:42,280 --> 00:14:45,480 Speaker 1: if you go for that pretty, you know, white Carrera 321 00:14:45,520 --> 00:14:47,840 Speaker 1: marble with you know, with the veins and and and 322 00:14:48,120 --> 00:14:51,680 Speaker 1: that awesome look, that's fine. But it etches, it chips, 323 00:14:51,960 --> 00:14:55,160 Speaker 1: its stains, and again, these are all factors to consider 324 00:14:55,160 --> 00:14:56,840 Speaker 1: when you're doing a kitchen remodel. Man, I don't know. 325 00:14:56,960 --> 00:14:59,920 Speaker 1: I like those imperfections though too, so say with butcher block. 326 00:15:00,040 --> 00:15:02,520 Speaker 1: Butcher Bloket's a little and something that I'm totally okay that. 327 00:15:02,560 --> 00:15:04,720 Speaker 1: Like at our old house we had Career marble, and 328 00:15:04,880 --> 00:15:06,800 Speaker 1: for me personally, I was totally I mean, we we 329 00:15:06,800 --> 00:15:09,360 Speaker 1: almost thought about like taking lemon, cutting a lemon enough 330 00:15:09,400 --> 00:15:12,000 Speaker 1: and just like going over the entire counter with it 331 00:15:12,040 --> 00:15:14,400 Speaker 1: and literally etching the entire service because there's a few 332 00:15:14,400 --> 00:15:18,160 Speaker 1: spots where it had edged. Some people do that on purpose, right, yeah, exactly, 333 00:15:18,360 --> 00:15:20,240 Speaker 1: and I'm totally fine with that. But other folks would 334 00:15:20,240 --> 00:15:21,920 Speaker 1: see it and be like, oh, this looks kind of 335 00:15:22,000 --> 00:15:24,920 Speaker 1: run down them, you know, especially when it comes to resell. 336 00:15:25,000 --> 00:15:26,640 Speaker 1: It's something that they're like, well, I'm gonna have to 337 00:15:26,760 --> 00:15:30,440 Speaker 1: drop six to ten dollars on countertops because obviously these 338 00:15:30,480 --> 00:15:32,680 Speaker 1: are shot. Yeah, And when you're doing stuff like if 339 00:15:32,680 --> 00:15:34,960 Speaker 1: you're doing a remodel for yourself, again, like you can 340 00:15:34,960 --> 00:15:36,680 Speaker 1: think about your own taste, but when you're doing it 341 00:15:37,040 --> 00:15:39,320 Speaker 1: as an investment, you have to think about other people's tastes, 342 00:15:39,360 --> 00:15:41,080 Speaker 1: and you have to be thinking about the price tag 343 00:15:41,120 --> 00:15:44,040 Speaker 1: associated with catering to those tastes. So best to luck 344 00:15:44,080 --> 00:15:45,680 Speaker 1: a b and and we hope you come around on 345 00:15:45,720 --> 00:15:48,720 Speaker 1: the dishwasher thing, because yeah, we think they can actually 346 00:15:48,720 --> 00:15:51,560 Speaker 1: be a money saver. And yeah, yeah, yeah, yeah we 347 00:15:51,560 --> 00:15:54,320 Speaker 1: can actually Hopefully maybe he does install it and he 348 00:15:54,360 --> 00:15:57,320 Speaker 1: actually ends up using it, which will ultimately save him money. 349 00:15:57,320 --> 00:15:59,120 Speaker 1: Can we convert him to being a dishrusher user? I 350 00:15:59,120 --> 00:16:02,320 Speaker 1: don't know, all right, We more listener questions to get 351 00:16:02,360 --> 00:16:06,480 Speaker 1: to Matt, including one about car insurance. It's costing this 352 00:16:06,560 --> 00:16:08,160 Speaker 1: mom and arm and a leg. We'll get to that 353 00:16:08,240 --> 00:16:19,600 Speaker 1: and more right after this. M all right, we're back 354 00:16:19,640 --> 00:16:22,000 Speaker 1: from the break take and listener questions, and before we 355 00:16:22,040 --> 00:16:25,520 Speaker 1: get to that car insurance question, let's hear one from 356 00:16:25,560 --> 00:16:30,480 Speaker 1: a listener who's asking about bank bonuses. Hey, Matt and Joel, 357 00:16:30,600 --> 00:16:34,200 Speaker 1: this is Jeff from Phoenix, Arizona. I've been a listener 358 00:16:34,280 --> 00:16:37,680 Speaker 1: for about a year, and I want to thank you 359 00:16:37,920 --> 00:16:41,160 Speaker 1: so much for all the good information that you put out. 360 00:16:42,000 --> 00:16:47,040 Speaker 1: My financial life has changed dramatically since I have started listening, 361 00:16:47,160 --> 00:16:50,520 Speaker 1: so thank you. My question for you today is I 362 00:16:50,600 --> 00:16:54,000 Speaker 1: get offers in the mail from the big banks saying 363 00:16:54,040 --> 00:16:57,840 Speaker 1: if I open an account and start direct deposit that 364 00:16:58,000 --> 00:17:01,360 Speaker 1: I can get a two hundred or three d bonus. 365 00:17:02,280 --> 00:17:05,080 Speaker 1: I do read the fine print and it looks like 366 00:17:05,920 --> 00:17:09,920 Speaker 1: I have to open an account and start direct deposit, 367 00:17:10,440 --> 00:17:13,679 Speaker 1: but it usually is not a huge amount that I 368 00:17:13,800 --> 00:17:16,400 Speaker 1: have to have direct deposited in there, and as long 369 00:17:16,440 --> 00:17:19,440 Speaker 1: as it's there for ninety days, I can get two 370 00:17:19,520 --> 00:17:23,040 Speaker 1: or three hundred dollars. What are the downsides to this? 371 00:17:23,960 --> 00:17:27,200 Speaker 1: I feel like I can split up my paycheck between 372 00:17:27,280 --> 00:17:30,760 Speaker 1: a few of these banks, and after the ninety days 373 00:17:30,840 --> 00:17:34,240 Speaker 1: is up and I get my bonus, close the accounts. 374 00:17:34,920 --> 00:17:37,520 Speaker 1: Seems like a no brainer to do this because the 375 00:17:37,520 --> 00:17:40,720 Speaker 1: amounts are usually very low that I have to deposit. 376 00:17:41,440 --> 00:17:44,760 Speaker 1: Thanks so much again for all you do, jeff Man. 377 00:17:44,800 --> 00:17:47,159 Speaker 1: We appreciate your question. And and this is this is 378 00:17:47,200 --> 00:17:49,560 Speaker 1: a good one for personal finance nerds out there, Matt, 379 00:17:49,600 --> 00:17:53,160 Speaker 1: because saving ascounts, by the way, I've gotten just better recently. 380 00:17:53,280 --> 00:17:55,760 Speaker 1: They For a long time, man, it felt like we 381 00:17:55,800 --> 00:17:57,760 Speaker 1: always said cash is not trash, but it felt like 382 00:17:57,800 --> 00:17:59,920 Speaker 1: cash was trash because you couldn't get paid anything on it. 383 00:18:00,200 --> 00:18:03,320 Speaker 1: But that has that's been changing. And and let's talk 384 00:18:03,359 --> 00:18:05,760 Speaker 1: about account bonuses in particular, because they can be a 385 00:18:05,800 --> 00:18:09,280 Speaker 1: great way to juice returns on your savings, which obviously 386 00:18:09,320 --> 00:18:12,000 Speaker 1: interest rates are going up better for savers. Online banks 387 00:18:12,000 --> 00:18:13,840 Speaker 1: now are paying at least some of them north of 388 00:18:13,920 --> 00:18:16,440 Speaker 1: three percent on savings, which for a long time, what 389 00:18:16,600 --> 00:18:19,200 Speaker 1: we we thought half a percent was great, which half 390 00:18:19,280 --> 00:18:22,680 Speaker 1: percent was standard, even though that was pathetic really um, 391 00:18:22,720 --> 00:18:25,360 Speaker 1: and that's not life changing money, but it's at least 392 00:18:25,400 --> 00:18:27,640 Speaker 1: a massive jump from from more rates we're years ago. 393 00:18:28,040 --> 00:18:31,760 Speaker 1: And it's just nice to see that savers aren't getting 394 00:18:31,800 --> 00:18:34,880 Speaker 1: clobbered in the way that they were, uh to three 395 00:18:34,920 --> 00:18:37,159 Speaker 1: or four years ago. But those bonuses that you can 396 00:18:37,240 --> 00:18:39,280 Speaker 1: snag for opening up a new account can can make 397 00:18:39,320 --> 00:18:43,160 Speaker 1: the potential hassle worth it. They can actually juice those earnings. 398 00:18:43,160 --> 00:18:45,479 Speaker 1: And so, yeah, we think that the bank account bonus 399 00:18:45,480 --> 00:18:49,399 Speaker 1: game is worth pursuing for lots of folks. For sure. Yeah, 400 00:18:49,440 --> 00:18:51,560 Speaker 1: some banks will pay you a few hundred bucks, but 401 00:18:51,600 --> 00:18:53,960 Speaker 1: others will pay you uh a lot of money, like 402 00:18:54,000 --> 00:18:56,719 Speaker 1: a thousand bucks or more. And you often, you know, 403 00:18:56,720 --> 00:19:00,240 Speaker 1: score those bigger bonuses by funding that account with more money, 404 00:19:00,240 --> 00:19:02,600 Speaker 1: with larger deposits. Uh. And so the hoops that you'll 405 00:19:02,600 --> 00:19:04,959 Speaker 1: have to jump through in order to snag the bonus, 406 00:19:05,200 --> 00:19:07,679 Speaker 1: they're going to be different for each offer. And so 407 00:19:07,800 --> 00:19:09,800 Speaker 1: with that in mind, Jeff, it is really important to 408 00:19:09,840 --> 00:19:11,399 Speaker 1: read the fine print, and he said he's reading the 409 00:19:11,400 --> 00:19:13,320 Speaker 1: fine print, which I want to say, what you gotta do. 410 00:19:13,400 --> 00:19:15,720 Speaker 1: A lot of people are gonna see the headline number 411 00:19:15,800 --> 00:19:17,919 Speaker 1: and then they might attempt to get the bonus and 412 00:19:18,000 --> 00:19:20,840 Speaker 1: miss out exactly. Yeah, And so I mean different accounts, 413 00:19:20,840 --> 00:19:23,040 Speaker 1: like some are going to require you to have like 414 00:19:23,040 --> 00:19:25,879 Speaker 1: a certain number of direct deposits but others will want 415 00:19:25,920 --> 00:19:28,359 Speaker 1: you to to use like the debit card associated with 416 00:19:28,400 --> 00:19:30,960 Speaker 1: that account a certain number of times, like ten twelve 417 00:19:30,960 --> 00:19:34,080 Speaker 1: times a month, whereas others will maybe want that money 418 00:19:34,160 --> 00:19:36,880 Speaker 1: deposited for a minimum period of time, right like they're 419 00:19:36,880 --> 00:19:38,400 Speaker 1: gonna want you to keep that in there for two 420 00:19:38,400 --> 00:19:41,520 Speaker 1: to three months. But just know what's required in advance, 421 00:19:41,840 --> 00:19:43,560 Speaker 1: so that you can make sure that you that you 422 00:19:43,600 --> 00:19:46,200 Speaker 1: hit all those metrics in order to actually make sure 423 00:19:46,320 --> 00:19:49,159 Speaker 1: you receive that bonus that you actually get paid. All right, 424 00:19:49,240 --> 00:19:52,080 Speaker 1: So can I just say I'm not as good as 425 00:19:52,200 --> 00:19:54,640 Speaker 1: Jeff at this, and I kind of I didn't screw up, 426 00:19:54,840 --> 00:19:56,840 Speaker 1: but I'm still read the fine print, well I'm gonna 427 00:19:56,840 --> 00:19:58,879 Speaker 1: get the bonus. I misstook the fine print, and so 428 00:19:58,960 --> 00:20:00,960 Speaker 1: what they what they said? I just figured this out. 429 00:20:00,960 --> 00:20:03,440 Speaker 1: I opened up account with with City Bank to get 430 00:20:03,440 --> 00:20:05,320 Speaker 1: a bonus, and it basically said that I need to 431 00:20:05,320 --> 00:20:08,120 Speaker 1: meet these requirements within sixty days. And it looked like 432 00:20:08,200 --> 00:20:10,080 Speaker 1: what I thought was and then after ninety days you 433 00:20:10,080 --> 00:20:11,520 Speaker 1: get the pay out. And I was like, Okay, cool, cool, 434 00:20:11,560 --> 00:20:13,600 Speaker 1: I can do that, but no, it wasn't. It wasn't 435 00:20:13,600 --> 00:20:15,080 Speaker 1: after ninety days I get the pay out. It was 436 00:20:15,119 --> 00:20:17,359 Speaker 1: basically the sixty plus ninety, So it's a hundred and 437 00:20:17,359 --> 00:20:20,480 Speaker 1: fifty days until I get the pay out. It was 438 00:20:20,520 --> 00:20:24,000 Speaker 1: it was sneaking. I didn't pay attention to the specific 439 00:20:24,440 --> 00:20:27,280 Speaker 1: linguistics that City Bank was using, and so I'm gonna 440 00:20:27,320 --> 00:20:29,480 Speaker 1: get the bonus, I just have to wait longer tied 441 00:20:29,560 --> 00:20:31,159 Speaker 1: up for than I thought, a few more months than 442 00:20:31,160 --> 00:20:33,679 Speaker 1: you thought. Got it. So kind of frustrating, but it's 443 00:20:33,720 --> 00:20:35,240 Speaker 1: one of those things where if you if you play 444 00:20:35,320 --> 00:20:37,199 Speaker 1: this game, you really do need to pay attention to 445 00:20:37,200 --> 00:20:40,200 Speaker 1: this specific language. Uh, and not just the hoops you 446 00:20:40,200 --> 00:20:41,879 Speaker 1: need to jump through, but the time period, because you 447 00:20:41,960 --> 00:20:45,000 Speaker 1: might find out that your money is stuck in one 448 00:20:45,000 --> 00:20:48,440 Speaker 1: place longer than you hope to. Gotcha. Definitely like this strategy. 449 00:20:48,520 --> 00:20:51,240 Speaker 1: This approach definitely lends itself to those who are into 450 00:20:51,280 --> 00:20:55,360 Speaker 1: the details, into the all the technicalities, and so Jeff, let's, 451 00:20:55,440 --> 00:20:57,120 Speaker 1: you know, let's share where you might find the best 452 00:20:57,119 --> 00:21:00,720 Speaker 1: sign up bonuses for bank accounts, because you might get 453 00:21:00,720 --> 00:21:03,119 Speaker 1: an email or maybe you'll get a physical mailer at 454 00:21:03,160 --> 00:21:05,640 Speaker 1: your house, and some of those accounts might be targeted 455 00:21:05,640 --> 00:21:08,560 Speaker 1: offers that may not be available to other folks, but 456 00:21:08,600 --> 00:21:10,800 Speaker 1: even still, they may not be the best offers the 457 00:21:11,160 --> 00:21:13,560 Speaker 1: best bonuses out there. Uh. And so if you're going 458 00:21:13,600 --> 00:21:16,080 Speaker 1: to do this, we want you to get the most 459 00:21:16,119 --> 00:21:18,760 Speaker 1: money that you possibly can, and you typically do this 460 00:21:18,840 --> 00:21:20,840 Speaker 1: by by being proactive about it. You gotta go out 461 00:21:20,840 --> 00:21:23,119 Speaker 1: there and search for one, and we would recommend that 462 00:21:23,160 --> 00:21:26,359 Speaker 1: you check out Doctor of Credits. That's the site that 463 00:21:26,400 --> 00:21:29,120 Speaker 1: we typically turn to. Will link to their bank account 464 00:21:29,160 --> 00:21:31,080 Speaker 1: bonus page, but they just do a great job of 465 00:21:31,119 --> 00:21:33,080 Speaker 1: keeping that page up to date. Uh and they will 466 00:21:33,119 --> 00:21:36,200 Speaker 1: help you define and apply for the best bonus best 467 00:21:36,240 --> 00:21:39,080 Speaker 1: bonus offers out there. And also, you know, we're pretty 468 00:21:39,080 --> 00:21:42,040 Speaker 1: big fans of doing something similar with credit cards. The 469 00:21:42,440 --> 00:21:45,399 Speaker 1: bonuses that they offer they can easily be in the 470 00:21:45,720 --> 00:21:48,359 Speaker 1: like the seven hundred so like one thousand dollar range 471 00:21:48,960 --> 00:21:51,439 Speaker 1: just for using that new card for spending that you 472 00:21:51,480 --> 00:21:55,119 Speaker 1: were already planning to do. Uh. And so the easiest 473 00:21:55,119 --> 00:21:57,720 Speaker 1: place for you to see those bonuses is the head 474 00:21:57,720 --> 00:22:00,239 Speaker 1: to our new credit card tool head to you how 475 00:22:00,359 --> 00:22:02,800 Speaker 1: money dot Com, forward slash credit cards and you can 476 00:22:02,840 --> 00:22:05,520 Speaker 1: easily sort, buy cash back and see some of the 477 00:22:05,560 --> 00:22:09,359 Speaker 1: best bonus offers available to you. And the upside to 478 00:22:10,119 --> 00:22:13,360 Speaker 1: the credit card bonus versus the bank bonus is that 479 00:22:13,400 --> 00:22:15,840 Speaker 1: the credit card bonus is not taxable, whereas the bank 480 00:22:15,880 --> 00:22:18,880 Speaker 1: account bonus is taxable. You're going to have to pay 481 00:22:18,880 --> 00:22:21,080 Speaker 1: tax on whatever that bonus was that you received. So 482 00:22:21,200 --> 00:22:23,359 Speaker 1: let's say it's a three and fifty dollar bonus, well 483 00:22:23,480 --> 00:22:26,840 Speaker 1: minus I don't know eight whatever your whatever your income 484 00:22:26,840 --> 00:22:30,080 Speaker 1: tax rate is from that from that number. And one 485 00:22:30,119 --> 00:22:32,000 Speaker 1: last thing we want to to stress those to think 486 00:22:32,040 --> 00:22:35,719 Speaker 1: intelligently about your time. It's important not to know your 487 00:22:35,760 --> 00:22:38,400 Speaker 1: hourly rate and how much it's worth, like how much 488 00:22:38,400 --> 00:22:40,480 Speaker 1: time can you pour into this? And at some point 489 00:22:40,520 --> 00:22:43,760 Speaker 1: are you are you using your time inefficiently? And the 490 00:22:43,920 --> 00:22:46,960 Speaker 1: easier bonus grabs they really shouldn't take too much effort 491 00:22:47,000 --> 00:22:50,080 Speaker 1: on your part, right, But it is possible to be 492 00:22:50,160 --> 00:22:52,720 Speaker 1: more cheap than frugal by attempting to get too many 493 00:22:52,720 --> 00:22:56,000 Speaker 1: of these bonuses or ones that maybe aren't paying out 494 00:22:56,040 --> 00:22:57,840 Speaker 1: as much. Like a hundred or a hundred fifty dollar 495 00:22:57,880 --> 00:23:00,800 Speaker 1: bonus that takes you takes five average hours or your time. 496 00:23:01,040 --> 00:23:03,960 Speaker 1: That's a different value proposition than a five one, right, 497 00:23:04,040 --> 00:23:06,080 Speaker 1: that takes the same amount of effort. So just just 498 00:23:06,119 --> 00:23:08,080 Speaker 1: a heads up, think about that ahead of time. But 499 00:23:08,160 --> 00:23:10,840 Speaker 1: the good thing is unlike opening and closing credit card accounts, Matt, 500 00:23:10,840 --> 00:23:13,600 Speaker 1: which you talked about. There is no negative impact on 501 00:23:13,640 --> 00:23:16,240 Speaker 1: your credit for swapping banks. That's something I think people 502 00:23:16,600 --> 00:23:19,159 Speaker 1: have a question about. Sometimes when you open or close 503 00:23:19,240 --> 00:23:21,960 Speaker 1: credit cards, that's going to impact your credit score. But 504 00:23:21,960 --> 00:23:25,120 Speaker 1: when you open new bank accounts, that doesn't have any impact. 505 00:23:25,200 --> 00:23:27,200 Speaker 1: Like the credit cards don't even know that it's happening, 506 00:23:27,200 --> 00:23:29,080 Speaker 1: and so that's not gonna impact you in that. In 507 00:23:29,119 --> 00:23:31,560 Speaker 1: that regard that being said, you apply for new credit card, 508 00:23:31,560 --> 00:23:33,280 Speaker 1: typically you're only going to see like a five like 509 00:23:33,280 --> 00:23:36,480 Speaker 1: a temporary five point drop. Nothing, nothing too big. Yeah, well, 510 00:23:36,760 --> 00:23:39,600 Speaker 1: which is important sure, if you're applying for a new 511 00:23:39,640 --> 00:23:41,359 Speaker 1: loan in the in the very near future, that is. 512 00:23:41,480 --> 00:23:44,040 Speaker 1: But that's true. But for most folks, yeah, a minor blip. 513 00:23:44,119 --> 00:23:45,879 Speaker 1: But as long as it's worth your time, if the 514 00:23:45,880 --> 00:23:48,440 Speaker 1: financial benefits are excellent enough, we'd say why not take 515 00:23:48,440 --> 00:23:51,720 Speaker 1: advantage of these bonuses. It's something clearly that we do ourselves, 516 00:23:51,800 --> 00:23:53,880 Speaker 1: even if we don't do it perfectly from time to time, 517 00:23:54,320 --> 00:23:57,480 Speaker 1: like like me, but I have taken advantage of multiple 518 00:23:57,520 --> 00:24:00,480 Speaker 1: bank account bonus offers in the past, and I see 519 00:24:00,480 --> 00:24:03,320 Speaker 1: myself doing more in the future. That's right, man, All right, 520 00:24:03,359 --> 00:24:06,639 Speaker 1: let's get to our next question, and this is from 521 00:24:06,680 --> 00:24:10,480 Speaker 1: a mother. She's got a question about her teenage son 522 00:24:11,000 --> 00:24:13,920 Speaker 1: and car insurance. Let's hear it. Hello, madd and Joel, 523 00:24:14,119 --> 00:24:17,280 Speaker 1: thanks so much for responding to my email. My name 524 00:24:17,320 --> 00:24:20,199 Speaker 1: is to London and I live in Memphis, Tennessee, and 525 00:24:20,359 --> 00:24:24,080 Speaker 1: my question iss in regards to car insurance coverage for 526 00:24:24,200 --> 00:24:27,760 Speaker 1: my eighteen year old son. He is currently away at 527 00:24:27,760 --> 00:24:32,119 Speaker 1: school in Nashville, and I'm trying to determine whether or 528 00:24:32,160 --> 00:24:36,320 Speaker 1: not to carry a full coverage insurance on his vehicle. 529 00:24:36,960 --> 00:24:40,960 Speaker 1: He has a two thousand and twelve Nissan Ultima and 530 00:24:41,000 --> 00:24:44,280 Speaker 1: the car is owned. There's not a note on the car. 531 00:24:45,200 --> 00:24:48,760 Speaker 1: Before I changed the insurance over to a separate policy, 532 00:24:49,359 --> 00:24:51,400 Speaker 1: which I was told I had to do by Guy 533 00:24:51,480 --> 00:24:54,640 Speaker 1: co Sis, the car would not be in Memphis. Majority 534 00:24:54,680 --> 00:24:58,600 Speaker 1: of the time, I was paying around five hundred over 535 00:24:58,680 --> 00:25:03,440 Speaker 1: five hundred dollars put car insurance for the both of us. Currently, 536 00:25:03,480 --> 00:25:09,280 Speaker 1: I'm only carrying the required amount of liability, comprehensive and 537 00:25:09,560 --> 00:25:12,600 Speaker 1: rose at service on his car. And I'm really trying 538 00:25:12,600 --> 00:25:15,800 Speaker 1: to determine do I really need to cover a collision 539 00:25:16,240 --> 00:25:19,159 Speaker 1: on a car that's at old And how would you 540 00:25:19,280 --> 00:25:23,120 Speaker 1: go about trying to determine how much insurance is enough. 541 00:25:23,640 --> 00:25:26,760 Speaker 1: Thanks for your time and I really enjoyed the podcast. 542 00:25:27,800 --> 00:25:30,119 Speaker 1: She she said, a Nissan Ultima. Didn't you have a 543 00:25:30,200 --> 00:25:35,480 Speaker 1: Nissan Ultima somewhat recently? Yeah? I loved my Niecean ultimately green. 544 00:25:35,720 --> 00:25:38,320 Speaker 1: Yeah exactly. I think when we felt the last stick 545 00:25:38,359 --> 00:25:40,560 Speaker 1: shift out automobile that our own, and I loved it. 546 00:25:40,880 --> 00:25:45,440 Speaker 1: It also had the tint uh like the that was 547 00:25:45,440 --> 00:25:49,480 Speaker 1: halfway peeled off. I would say, I'm very classy. And 548 00:25:49,480 --> 00:25:51,080 Speaker 1: on the best part was that I remember you telling 549 00:25:51,119 --> 00:25:52,920 Speaker 1: me this story because that was like an ex girlfriend. 550 00:25:54,840 --> 00:25:56,080 Speaker 1: She was like, why don't we get rid of this 551 00:25:56,200 --> 00:25:58,040 Speaker 1: awful window tending and we'll make it look better, And 552 00:25:58,160 --> 00:25:59,720 Speaker 1: she halfway peeled it off, and it just looked worse. 553 00:26:00,000 --> 00:26:02,200 Speaker 1: You just like gave up that I dumped here, so 554 00:26:02,960 --> 00:26:06,440 Speaker 1: get out of my car forever. Well, let's let's get 555 00:26:06,440 --> 00:26:08,520 Speaker 1: into question. Let's talk about Yolanda and her son and 556 00:26:08,560 --> 00:26:11,919 Speaker 1: this conundrum they're in and and teenagers or or college 557 00:26:11,960 --> 00:26:14,600 Speaker 1: students and car insurance. They typically don't play well together. 558 00:26:14,640 --> 00:26:18,879 Speaker 1: It's young drivers. I'm not looking forward to having a housefold. 559 00:26:18,920 --> 00:26:21,919 Speaker 1: I know household full of young teenage draft young drivers 560 00:26:21,960 --> 00:26:25,080 Speaker 1: make car insurance a lot more expensive. And I will 561 00:26:25,119 --> 00:26:27,840 Speaker 1: say something that's going in a lot of favor here 562 00:26:27,840 --> 00:26:29,480 Speaker 1: is that they own the car out right. Yeah, that's 563 00:26:29,480 --> 00:26:32,960 Speaker 1: a big help because that that gives you more options 564 00:26:33,000 --> 00:26:35,520 Speaker 1: to get those premiums down, because if you did have 565 00:26:35,560 --> 00:26:37,359 Speaker 1: a car note, the lenders likely going to require you 566 00:26:37,359 --> 00:26:40,560 Speaker 1: to have full coverage. And with this vehicle being I'm 567 00:26:40,560 --> 00:26:43,840 Speaker 1: gonna call it a preteen uh in terms of model years, 568 00:26:43,880 --> 00:26:46,600 Speaker 1: not only should you consider Yolanda foregoing collision, but you 569 00:26:46,600 --> 00:26:51,360 Speaker 1: should also likely consider dropping comprehensive coverage as well. And 570 00:26:51,520 --> 00:26:53,920 Speaker 1: so much depends on how much that it's going to 571 00:26:54,040 --> 00:26:57,080 Speaker 1: drop the premium and if you have the ability to 572 00:26:57,160 --> 00:26:59,879 Speaker 1: self insure, you know, we're definitely making a case for 573 00:27:00,000 --> 00:27:02,480 Speaker 1: having at least five thousand bucks in an emergency fund, 574 00:27:02,800 --> 00:27:04,840 Speaker 1: because it's not wise to get rid of that additional 575 00:27:04,840 --> 00:27:07,040 Speaker 1: coverage if you don't have the cash or a place 576 00:27:07,119 --> 00:27:09,239 Speaker 1: to vehicle if it gets totaled. You want to make 577 00:27:09,240 --> 00:27:13,040 Speaker 1: sure you can buy another car outright if your son 578 00:27:13,080 --> 00:27:15,720 Speaker 1: gets into an at fault accident. But if I were 579 00:27:15,760 --> 00:27:18,120 Speaker 1: you and had the money set aside, I would feel 580 00:27:18,119 --> 00:27:20,879 Speaker 1: comfortable with only the minimum coverage on this car. Totally yep, 581 00:27:20,960 --> 00:27:22,880 Speaker 1: I would as well, man, Uh you law into. Something 582 00:27:22,880 --> 00:27:25,520 Speaker 1: else that you're gonna want to do is to shop 583 00:27:25,560 --> 00:27:29,280 Speaker 1: your coverage around, Like currently, you certainly might have the 584 00:27:29,320 --> 00:27:31,840 Speaker 1: best rate right now, but it's tough to know until 585 00:27:31,880 --> 00:27:35,000 Speaker 1: you actually do some comparison shopping. And you can, you know, 586 00:27:35,040 --> 00:27:37,199 Speaker 1: do this on your own by calling around. Maybe you 587 00:27:37,200 --> 00:27:40,080 Speaker 1: can email some different insurance companies. You can call an 588 00:27:40,080 --> 00:27:44,040 Speaker 1: independent agent or an insurance broker where you live, and 589 00:27:44,080 --> 00:27:47,440 Speaker 1: they can often shop with rates with multiple providers on 590 00:27:47,440 --> 00:27:50,040 Speaker 1: on your behalf. Basically, you want somebody who is on 591 00:27:50,119 --> 00:27:54,200 Speaker 1: your side, not somebody who's basically employed by an insurance company. 592 00:27:54,240 --> 00:27:56,080 Speaker 1: But then you can look online as well, head to 593 00:27:56,440 --> 00:27:59,520 Speaker 1: policy Genius. They also offer a free service where they 594 00:27:59,520 --> 00:28:01,280 Speaker 1: help you to the shop rates with some of the 595 00:28:01,280 --> 00:28:03,639 Speaker 1: main companies out there. It's just important to keep in 596 00:28:03,640 --> 00:28:07,000 Speaker 1: mind that loyalty does not pay in this case, and 597 00:28:07,200 --> 00:28:09,160 Speaker 1: you just might be able to save you know, hundreds 598 00:28:09,200 --> 00:28:12,160 Speaker 1: of dollars a year or more just by jumping ship. Uh. 599 00:28:12,640 --> 00:28:14,520 Speaker 1: I mean it makes me think about like we're talking about, 600 00:28:14,560 --> 00:28:17,200 Speaker 1: Jeff and how banks are increasing the rates that they're 601 00:28:17,200 --> 00:28:19,680 Speaker 1: they're paying out. Well, guess why the bigger banks don't 602 00:28:19,680 --> 00:28:21,919 Speaker 1: have to do that because of consumer inertia. And the 603 00:28:21,960 --> 00:28:24,400 Speaker 1: same thing applies when it comes to something like insurance, 604 00:28:24,400 --> 00:28:27,320 Speaker 1: Like nobody wants to take the time to have to 605 00:28:27,320 --> 00:28:29,880 Speaker 1: shop their coverage around. Nobody wants to have to go 606 00:28:30,000 --> 00:28:32,800 Speaker 1: to a new bank. And the companies the banks the 607 00:28:32,840 --> 00:28:35,280 Speaker 1: insurance provided like they know this, uh and said they 608 00:28:35,320 --> 00:28:37,840 Speaker 1: don't have to offer you the best rate because they 609 00:28:37,840 --> 00:28:39,560 Speaker 1: know most folks are just gonna stick around no matter what. 610 00:28:39,600 --> 00:28:41,240 Speaker 1: That's why Bank of America well as far Ago are 611 00:28:41,240 --> 00:28:43,800 Speaker 1: paying point zero one percent on your same mus accounts. 612 00:28:44,600 --> 00:28:46,479 Speaker 1: I think they increased the boot. I think they increased 613 00:28:46,480 --> 00:28:48,040 Speaker 1: it to like point zero two. I don't even know 614 00:28:48,080 --> 00:28:50,320 Speaker 1: if just so you know, all right, if they have 615 00:28:51,080 --> 00:28:53,959 Speaker 1: an increase, and they probably put that out in their 616 00:28:53,960 --> 00:28:56,160 Speaker 1: newsletter and make people feel good. But really like the 617 00:28:56,200 --> 00:28:58,880 Speaker 1: shareholders like yeah know's they're like, oh wow, I'm really 618 00:28:58,880 --> 00:29:01,520 Speaker 1: doing something great for folks. All they're still getting screwed exactly. 619 00:29:01,560 --> 00:29:04,360 Speaker 1: So yeah, jumping ship loyalty doesn't always pay your your 620 00:29:04,400 --> 00:29:07,200 Speaker 1: exactly your spot on their matt and so uh, at 621 00:29:07,280 --> 00:29:08,920 Speaker 1: least shopping the open market to see if you can 622 00:29:08,920 --> 00:29:11,040 Speaker 1: find a better rate elsewhere. That is, that is where 623 00:29:11,120 --> 00:29:13,800 Speaker 1: some steep savings can be found. It's also important to 624 00:29:13,800 --> 00:29:16,640 Speaker 1: ask about discounts right because you might not even be 625 00:29:16,680 --> 00:29:19,000 Speaker 1: getting the best rate that your own insurance company is 626 00:29:19,040 --> 00:29:21,960 Speaker 1: offering because you haven't. Like I, Matt, I mean you 627 00:29:21,960 --> 00:29:24,240 Speaker 1: should hear the way I talk to people of the 628 00:29:24,280 --> 00:29:27,560 Speaker 1: insurance company. I am. I'm begging for discounts basically, and 629 00:29:27,920 --> 00:29:29,480 Speaker 1: they're like, well, I'm sorry, sir, I don't know if 630 00:29:29,480 --> 00:29:31,920 Speaker 1: we have anymore. I'm like, check again. You got to 631 00:29:31,920 --> 00:29:33,960 Speaker 1: ask them three times. I've heard this. I don't know 632 00:29:34,000 --> 00:29:37,040 Speaker 1: how true this is, and specifically with insurance, but there's 633 00:29:37,040 --> 00:29:38,680 Speaker 1: a certain number of times you have to ask before 634 00:29:38,720 --> 00:29:41,640 Speaker 1: a lot of times customer service representatives well then say okay, 635 00:29:41,720 --> 00:29:43,160 Speaker 1: let me see what I can do for you and 636 00:29:43,240 --> 00:29:45,040 Speaker 1: in which case will give you the better rate. Yeah, 637 00:29:45,040 --> 00:29:48,040 Speaker 1: and with my my agent recently, I was getting quotes 638 00:29:48,040 --> 00:29:50,000 Speaker 1: from someone else and I think that kind of lit 639 00:29:50,000 --> 00:29:51,960 Speaker 1: a fire. She was like, let me let me look 640 00:29:51,960 --> 00:29:54,680 Speaker 1: for additional discount for you. And so, yeah, you have 641 00:29:54,760 --> 00:29:57,680 Speaker 1: to ask about those because it's it's smart to ask about. 642 00:29:58,000 --> 00:29:59,959 Speaker 1: You know, other things that can be applied to your account, 643 00:30:00,040 --> 00:30:03,160 Speaker 1: the low mileage discount, or you've got a son in school, 644 00:30:03,200 --> 00:30:06,640 Speaker 1: a good student, discount. Maybe make a deal with your son, right, 645 00:30:06,680 --> 00:30:08,600 Speaker 1: you can split whatever discount you're able to score from 646 00:30:08,640 --> 00:30:11,120 Speaker 1: him getting good grades. That's a that's a good way 647 00:30:11,120 --> 00:30:13,600 Speaker 1: to go. And it may not be much, but even 648 00:30:13,600 --> 00:30:16,080 Speaker 1: though small incentives can have a positive impact. That can 649 00:30:16,120 --> 00:30:19,400 Speaker 1: lower your bill, your insurance bill. Plus maybe he'll make 650 00:30:19,440 --> 00:30:23,120 Speaker 1: better grades. Right, right, so when when you're making more 651 00:30:23,160 --> 00:30:25,400 Speaker 1: saving more money, but also, man, you are crushing it 652 00:30:25,440 --> 00:30:27,840 Speaker 1: in school, buddy, that's right. And one other like little 653 00:30:27,840 --> 00:30:29,920 Speaker 1: thing that a lot of people almost nobody does, but 654 00:30:29,960 --> 00:30:33,040 Speaker 1: it can give you additional savings on your insurance bill 655 00:30:33,160 --> 00:30:35,959 Speaker 1: is to complete a defensive driving course. It takes like 656 00:30:36,000 --> 00:30:39,640 Speaker 1: forty five minutes online to complete some of your favorite things. Yeah, 657 00:30:39,720 --> 00:30:43,520 Speaker 1: I love this one because it's it's very inexpensive and 658 00:30:43,560 --> 00:30:45,680 Speaker 1: it can save you hundreds of dollars over the year. 659 00:30:45,760 --> 00:30:49,520 Speaker 1: Like scrounging for those discounts, like sucking up whichever ones 660 00:30:49,760 --> 00:30:51,720 Speaker 1: they will throw your way, Like, say, which ones do 661 00:30:51,800 --> 00:30:53,840 Speaker 1: you have that I'm not eligible for? And how can 662 00:30:53,880 --> 00:30:55,920 Speaker 1: I become eligible for them? Like that's a good question 663 00:30:55,960 --> 00:30:58,720 Speaker 1: to ask. Which discounts am I not asking about you? 664 00:30:59,200 --> 00:31:01,960 Speaker 1: That you have? But I just don't I'm not qualifying 665 00:31:02,000 --> 00:31:03,880 Speaker 1: for at this current moment, because then that gives you 666 00:31:03,920 --> 00:31:05,840 Speaker 1: an idea of what you can do. Like there's even 667 00:31:05,880 --> 00:31:08,240 Speaker 1: the tracting devices math that they'll let you put in 668 00:31:08,280 --> 00:31:11,440 Speaker 1: your car for sixty year ninety days invasion of privacy 669 00:31:11,520 --> 00:31:13,680 Speaker 1: to save some money, baby, exactly if it means it's 670 00:31:13,720 --> 00:31:15,959 Speaker 1: gonna lower your bill, Like, I'm all for it. Absolutely, 671 00:31:16,320 --> 00:31:19,400 Speaker 1: You'll onto one other thing worth mentioning here If it 672 00:31:19,560 --> 00:31:22,360 Speaker 1: is prohibitively expensive four years and to have a car 673 00:31:22,440 --> 00:31:25,320 Speaker 1: at college, it might be worth asking if there's another option, 674 00:31:25,480 --> 00:31:28,280 Speaker 1: you know, like does he really need to have a 675 00:31:28,320 --> 00:31:31,360 Speaker 1: car at school? Maybe instead he could ride with friends, Um, 676 00:31:31,400 --> 00:31:34,440 Speaker 1: maybe he could bike more. That's obviously something where fans 677 00:31:34,440 --> 00:31:37,400 Speaker 1: of maybe he can take uber or lift on the 678 00:31:37,440 --> 00:31:40,200 Speaker 1: occasion that he needs to get somewhere off campus. Like 679 00:31:40,280 --> 00:31:42,680 Speaker 1: I know that car ownership at college is a nice 680 00:31:42,720 --> 00:31:45,400 Speaker 1: perk for a young person to have, but all those 681 00:31:45,400 --> 00:31:47,120 Speaker 1: costs at up you know, like we're not just talking 682 00:31:47,160 --> 00:31:50,800 Speaker 1: about insurance, We're talking about the cost of gas, car maintenance. Uh, 683 00:31:50,840 --> 00:31:53,760 Speaker 1: student parking permits on campus those can be really expensive 684 00:31:53,800 --> 00:31:56,880 Speaker 1: as well. Uh, not to mention, like, I'm pretty sure 685 00:31:56,920 --> 00:31:59,880 Speaker 1: the majority of speeding tickets at chedule where while I 686 00:32:00,040 --> 00:32:03,520 Speaker 1: was in college. And guess when you're not driving, yeah don't. 687 00:32:03,520 --> 00:32:07,000 Speaker 1: You don't get speeding tickets, you don't get moving violations 688 00:32:07,240 --> 00:32:09,120 Speaker 1: or whatever. I think I've had one in my post 689 00:32:09,160 --> 00:32:11,000 Speaker 1: college adult life and I was going five miles an 690 00:32:11,000 --> 00:32:12,960 Speaker 1: hour with speed, which you're not supposed to get speeding 691 00:32:12,960 --> 00:32:15,600 Speaker 1: tickets for that. Well. Yeah, so all that being said, 692 00:32:15,640 --> 00:32:17,719 Speaker 1: like all these costs add up, and you know, if 693 00:32:17,720 --> 00:32:20,360 Speaker 1: it's just too expensive, even after you do shop around 694 00:32:20,600 --> 00:32:23,400 Speaker 1: your insurance rates, it might be worth having a tough 695 00:32:23,440 --> 00:32:26,920 Speaker 1: conversation with him, or maybe you know, he can foot 696 00:32:26,960 --> 00:32:29,000 Speaker 1: some of the insurance bill himself. We just don't want 697 00:32:29,000 --> 00:32:32,080 Speaker 1: you to to think that this is completely on your shoulders. 698 00:32:32,120 --> 00:32:35,000 Speaker 1: We want you to realize that there are alternatives. It's 699 00:32:35,000 --> 00:32:37,440 Speaker 1: not like him having a car off at school like that. 700 00:32:37,440 --> 00:32:39,440 Speaker 1: That is a non negotiable. And Andy Alanta said it 701 00:32:39,480 --> 00:32:42,480 Speaker 1: was five bucks, but she didn't specify how often. I'm 702 00:32:42,480 --> 00:32:44,920 Speaker 1: guessing that means a month, which is just a ton 703 00:32:44,960 --> 00:32:46,800 Speaker 1: of money to be spending on insurance. We're talking about 704 00:32:47,440 --> 00:32:50,480 Speaker 1: something close to six thousand dollars a year on car insurance, 705 00:32:50,680 --> 00:32:52,960 Speaker 1: So yeah, you're right, Like, is there another option, like 706 00:32:53,240 --> 00:32:57,720 Speaker 1: rideshare could be cheaper, right than ensuring this car for 707 00:32:57,880 --> 00:33:00,959 Speaker 1: your teenage driver, certainly with with full coverage a very 708 00:33:00,960 --> 00:33:02,840 Speaker 1: at least, Like we said, there's a reason we started 709 00:33:02,880 --> 00:33:04,960 Speaker 1: there because that's going to have a significant impact. And 710 00:33:04,960 --> 00:33:07,800 Speaker 1: at some point you take maybe more drastic measures. And 711 00:33:07,840 --> 00:33:10,640 Speaker 1: at some point, if these attempts at getting a discount 712 00:33:10,640 --> 00:33:12,880 Speaker 1: of paying less money on insurance they're not working, they're 713 00:33:12,920 --> 00:33:15,200 Speaker 1: not bringing them the bill enough, you have to consider 714 00:33:15,200 --> 00:33:17,680 Speaker 1: more drastic options like you mentioned, which could be no 715 00:33:17,840 --> 00:33:20,360 Speaker 1: car on the college campus for for your son, or 716 00:33:20,400 --> 00:33:24,240 Speaker 1: at least him contributing to that prohibitively expensive bill. And lastly, 717 00:33:24,560 --> 00:33:26,960 Speaker 1: I wanted to mention roadside service. You want to mention 718 00:33:27,040 --> 00:33:30,680 Speaker 1: that we would encourage you to drop that coverage for sure. 719 00:33:31,160 --> 00:33:33,880 Speaker 1: It's actually best not to have this coverage, we would say, 720 00:33:34,000 --> 00:33:36,640 Speaker 1: because you don't ever want to make a claim on 721 00:33:36,720 --> 00:33:38,760 Speaker 1: that coverage. And if you do, if you do make 722 00:33:38,800 --> 00:33:41,440 Speaker 1: a roadside claim with your automobile insurance company, it's going 723 00:33:41,480 --> 00:33:43,480 Speaker 1: to go on this thing called your CLUE report, which 724 00:33:43,680 --> 00:33:47,640 Speaker 1: stands for a Comprehensive Loss Underwriting Exchange. It's this industry 725 00:33:47,760 --> 00:33:50,040 Speaker 1: database and it's gonna make it much harder for you 726 00:33:50,040 --> 00:33:52,280 Speaker 1: to get coverage with another insure in the future if 727 00:33:52,280 --> 00:33:53,840 Speaker 1: you have a claim there and it's not just a 728 00:33:53,840 --> 00:33:56,560 Speaker 1: claim because like hey, I got hit and I have 729 00:33:56,680 --> 00:33:59,000 Speaker 1: to make a repair and I had and I needed 730 00:33:59,000 --> 00:34:01,800 Speaker 1: my insurance to pay out. Literally, just getting a toe 731 00:34:01,920 --> 00:34:04,440 Speaker 1: two miles to your mechanic is getting the report. It 732 00:34:04,520 --> 00:34:07,360 Speaker 1: counts almost in the exact same way. So, if you 733 00:34:07,440 --> 00:34:09,880 Speaker 1: do want roadside coverage, if that is gonna put you 734 00:34:09,880 --> 00:34:12,280 Speaker 1: at ease, Triple A is a much better option because 735 00:34:12,280 --> 00:34:15,319 Speaker 1: it's not associated with your insurance company. So yeah, make 736 00:34:15,360 --> 00:34:18,960 Speaker 1: sure to drop that insurance provided roadside assistance. You don't 737 00:34:19,000 --> 00:34:20,440 Speaker 1: want that, you want to you want to go with 738 00:34:20,440 --> 00:34:23,640 Speaker 1: a third party instead. Yeah, Yolanda has got the currently 739 00:34:23,640 --> 00:34:26,560 Speaker 1: she's got like the Cadillac of insurance policies, where she's 740 00:34:26,600 --> 00:34:29,640 Speaker 1: got full coverage, she's got the roadside assistance. We didn't 741 00:34:29,640 --> 00:34:32,319 Speaker 1: even mention this as well. But consider raising your deductibles 742 00:34:32,360 --> 00:34:34,120 Speaker 1: as well, because if you've got that set to something 743 00:34:34,560 --> 00:34:37,720 Speaker 1: really low, like a hundred bucks, you want that significantly higher. 744 00:34:37,880 --> 00:34:39,879 Speaker 1: Of course, you want to again consider how much money 745 00:34:39,880 --> 00:34:42,160 Speaker 1: you've got set aside. You want to consider what car 746 00:34:42,400 --> 00:34:44,160 Speaker 1: it is that you're driving as well, to make sure 747 00:34:44,200 --> 00:34:46,359 Speaker 1: that you're you're properly insured, but we think that there 748 00:34:46,400 --> 00:34:48,319 Speaker 1: are a lot of steps that you can take in 749 00:34:48,440 --> 00:34:51,480 Speaker 1: order to get that insurance bill down. And Yolanda, we 750 00:34:51,520 --> 00:34:53,520 Speaker 1: wish you the best of luck. Joel, We've got a 751 00:34:53,560 --> 00:34:56,200 Speaker 1: couple of additional questions we're gonna get to. We're gonna 752 00:34:56,200 --> 00:34:59,560 Speaker 1: talk about one of the ways that you can juice 753 00:34:59,760 --> 00:35:02,960 Speaker 1: your kids credit score. It's totally illegal. By the way, 754 00:35:03,000 --> 00:35:04,640 Speaker 1: when you say juice, it makes you think of like 755 00:35:04,960 --> 00:35:09,480 Speaker 1: an illegal doping substance. Makes me think of bared bonds. Uh, 756 00:35:09,520 --> 00:35:12,239 Speaker 1: it's on the juice. We'll get to that plus our 757 00:35:12,320 --> 00:35:23,640 Speaker 1: other question right after this. All right, we're back. We're 758 00:35:23,640 --> 00:35:26,880 Speaker 1: still taking your listener questions. And Matt, a lot of 759 00:35:26,880 --> 00:35:30,640 Speaker 1: people have questions about investing in a volatile market, but 760 00:35:30,800 --> 00:35:33,160 Speaker 1: we have a specific one from a listener here who 761 00:35:33,160 --> 00:35:36,600 Speaker 1: wants to know how do I invest safely right now? Hi, guys, 762 00:35:36,640 --> 00:35:40,239 Speaker 1: this is more Hit. I'm from Pittsburgh, love listening to 763 00:35:40,280 --> 00:35:43,680 Speaker 1: your show. I had a question about investing in today's market. 764 00:35:44,440 --> 00:35:48,840 Speaker 1: What do you guys recommend like going for federal investment barns, 765 00:35:49,520 --> 00:35:53,040 Speaker 1: which right now, giving a decent interest rate for four 766 00:35:53,080 --> 00:35:57,279 Speaker 1: and a half percent, are putting money in Vanguard e 767 00:35:57,400 --> 00:36:01,480 Speaker 1: d f s because those right now or the lowest 768 00:36:02,239 --> 00:36:05,240 Speaker 1: since some time, and we know that they will probably 769 00:36:05,239 --> 00:36:08,960 Speaker 1: go up, but the uncertainty is when will they go up. 770 00:36:09,840 --> 00:36:12,160 Speaker 1: So I wanted to see what your thoughts on this are. 771 00:36:12,640 --> 00:36:15,839 Speaker 1: I hope I get included in the podcast. Thank you, 772 00:36:16,640 --> 00:36:18,799 Speaker 1: all right? Well, he of course we are more than 773 00:36:18,800 --> 00:36:21,359 Speaker 1: happy to feature your question here on the Ask How 774 00:36:21,360 --> 00:36:24,400 Speaker 1: the Money episode definitely as well as give our thoughts 775 00:36:24,400 --> 00:36:27,360 Speaker 1: on your investing question here, because yeah, you know, like 776 00:36:27,440 --> 00:36:29,600 Speaker 1: where you would stick your money, like when the markets 777 00:36:29,880 --> 00:36:32,960 Speaker 1: it's still significantly down, it's still pretty volatile these days. Uh. 778 00:36:32,960 --> 00:36:34,719 Speaker 1: And it's down from its its peak that we saw 779 00:36:34,760 --> 00:36:37,600 Speaker 1: earlier this year. And so you mentioned a few options, 780 00:36:37,640 --> 00:36:42,120 Speaker 1: and let's maybe start with the least risky possibility, which 781 00:36:42,239 --> 00:36:46,279 Speaker 1: is cash because you know, we we just talked about this, 782 00:36:46,320 --> 00:36:50,200 Speaker 1: but rates are ticking up steadily on both savings and 783 00:36:50,280 --> 00:36:52,799 Speaker 1: money market accounts, uh, And so you could opt to 784 00:36:52,800 --> 00:36:56,760 Speaker 1: stash some of your money there. Plus, everyone needs access 785 00:36:56,800 --> 00:36:59,520 Speaker 1: to a certain amount of liquid funds no matter what. 786 00:37:00,080 --> 00:37:02,200 Speaker 1: Even still, like we said before, even though savers, you know, 787 00:37:02,239 --> 00:37:05,000 Speaker 1: they're not getting cloppored like like we used to back 788 00:37:05,000 --> 00:37:07,800 Speaker 1: in the day. It's still not an ideal place to 789 00:37:07,840 --> 00:37:11,520 Speaker 1: a whole just a great deal of cash. So for 790 00:37:11,640 --> 00:37:13,560 Speaker 1: most folks were talking about having at least three to 791 00:37:13,640 --> 00:37:16,840 Speaker 1: six months of expenses in that account. And the truth is, 792 00:37:17,000 --> 00:37:19,319 Speaker 1: you know, the greater risk that you're taking on if 793 00:37:19,400 --> 00:37:21,600 Speaker 1: you opt to have excess cash on hand is going 794 00:37:21,640 --> 00:37:24,840 Speaker 1: to be inflation reducing it's purchasing power over time, and 795 00:37:24,840 --> 00:37:26,600 Speaker 1: so that's something you gotta keep in mind. You want 796 00:37:26,600 --> 00:37:28,440 Speaker 1: to find that balance between having some on hand but 797 00:37:28,480 --> 00:37:30,360 Speaker 1: not too much, and that was always the case, but 798 00:37:30,440 --> 00:37:34,799 Speaker 1: obviously clearly we're seeing inflation impact our money in real time. 799 00:37:35,200 --> 00:37:38,080 Speaker 1: Normally it's kind of like slowly eating away our money 800 00:37:38,080 --> 00:37:41,520 Speaker 1: and like barely noticeable, but now it's easier to see 801 00:37:41,800 --> 00:37:44,040 Speaker 1: and and you're right now there are more medium term 802 00:37:44,080 --> 00:37:46,480 Speaker 1: options too that are worth discussing. So save these accounts 803 00:37:46,480 --> 00:37:49,200 Speaker 1: are one of those short term options for people, and 804 00:37:49,239 --> 00:37:53,200 Speaker 1: just a necessity for anyone really to have some of 805 00:37:53,239 --> 00:37:56,120 Speaker 1: their savings stored away. But treasury bills, for instance, are 806 00:37:56,120 --> 00:37:59,200 Speaker 1: getting more pressed right now. We've seen rates on those skyrocket. 807 00:37:59,239 --> 00:38:01,480 Speaker 1: You can get a one year T bill at a 808 00:38:01,560 --> 00:38:04,359 Speaker 1: rate of just over four percent right now. One month 809 00:38:04,440 --> 00:38:06,800 Speaker 1: tea bills are paying like three and a quarter something 810 00:38:06,840 --> 00:38:09,600 Speaker 1: like that, which is really good. But but here's the thing. 811 00:38:10,000 --> 00:38:12,160 Speaker 1: See I T is paying something like which is a 812 00:38:12,160 --> 00:38:14,319 Speaker 1: bank that we talked about from time to time. They're 813 00:38:14,360 --> 00:38:17,120 Speaker 1: they're paying one of the absolute highest savings rates in 814 00:38:17,120 --> 00:38:19,480 Speaker 1: the country and they're paying three percent in just that 815 00:38:19,520 --> 00:38:22,200 Speaker 1: boring old savings account. So although those T bill rates 816 00:38:22,239 --> 00:38:25,279 Speaker 1: have gone up, they're not necessarily a whole lot better 817 00:38:25,520 --> 00:38:28,200 Speaker 1: than what we're seeing from just a traditional bank and 818 00:38:28,840 --> 00:38:31,239 Speaker 1: old school, playing vanilla savings account. It may not be 819 00:38:31,320 --> 00:38:33,520 Speaker 1: worth it considering the fact that that money is locked 820 00:38:33,600 --> 00:38:35,480 Speaker 1: up for a certain amount of times. Yeah, and then 821 00:38:35,600 --> 00:38:38,960 Speaker 1: there's the other option, is is I bonds, because although 822 00:38:38,960 --> 00:38:41,799 Speaker 1: the rate has dropped off some recently, they're still paying 823 00:38:41,800 --> 00:38:44,040 Speaker 1: a better rate than T bills too. So, you know, 824 00:38:44,080 --> 00:38:46,839 Speaker 1: while they make sense for some folks there, they are 825 00:38:46,840 --> 00:38:48,600 Speaker 1: a great place to part cash for a short period 826 00:38:48,600 --> 00:38:51,319 Speaker 1: of time. The I bonds aren't a great long term 827 00:38:51,360 --> 00:38:54,080 Speaker 1: investment either. So those are some decent options, and they 828 00:38:54,200 --> 00:38:57,799 Speaker 1: have clearly gotten better over the past year or so, 829 00:38:58,160 --> 00:39:00,839 Speaker 1: but it still doesn't mean that that's the best place 830 00:39:00,880 --> 00:39:02,560 Speaker 1: for you to be sticking money. Yeah, that's that's not 831 00:39:02,600 --> 00:39:04,880 Speaker 1: where we where We want the majority of your cash 832 00:39:05,000 --> 00:39:08,160 Speaker 1: because we think that the best long term investments are 833 00:39:08,160 --> 00:39:10,960 Speaker 1: going to be and we've remained fairly consistent about this 834 00:39:11,560 --> 00:39:14,600 Speaker 1: the stock market. Uh, and like right now it's actually 835 00:39:14,680 --> 00:39:17,200 Speaker 1: a better time to buy because the stock market is 836 00:39:17,200 --> 00:39:21,120 Speaker 1: on sale right now. And so um, you mentioned Vanguard ETFs. 837 00:39:21,280 --> 00:39:24,040 Speaker 1: It depends specifically on which ones that you're opting to 838 00:39:24,040 --> 00:39:25,960 Speaker 1: stick your money in, because you can buy e t 839 00:39:26,120 --> 00:39:29,680 Speaker 1: f s that invests in specific different sectors of the market. 840 00:39:30,280 --> 00:39:34,360 Speaker 1: We prefer a total stock market or the SMP fund approach. 841 00:39:34,640 --> 00:39:38,000 Speaker 1: Finding an index fund that mirrors those indexes is what 842 00:39:38,000 --> 00:39:40,880 Speaker 1: we would recommend. It's what we do. And you know, 843 00:39:40,920 --> 00:39:43,440 Speaker 1: you mentioned that you don't know when it is that 844 00:39:43,520 --> 00:39:45,400 Speaker 1: the market is going to go up, and that's true. Well, 845 00:39:45,400 --> 00:39:48,200 Speaker 1: guess what, we don't know either. But the cool thing 846 00:39:48,320 --> 00:39:51,640 Speaker 1: about the market is that it's forward looking. That's why, 847 00:39:51,960 --> 00:39:54,360 Speaker 1: you know, even when the world was falling apart during COVID, 848 00:39:54,680 --> 00:39:58,040 Speaker 1: the market it actually recovered really really quickly. In the 849 00:39:58,080 --> 00:40:00,520 Speaker 1: same thing applies here. You know, the market it seems 850 00:40:00,560 --> 00:40:03,480 Speaker 1: to be expecting a recession in the nearest future, but 851 00:40:03,880 --> 00:40:06,760 Speaker 1: you know, like when uh, and if that even happens, 852 00:40:06,960 --> 00:40:09,320 Speaker 1: when that recession hits the market, it's already going to 853 00:40:09,440 --> 00:40:12,040 Speaker 1: be all the way up in all likelihood. Yeah, it's 854 00:40:12,080 --> 00:40:14,480 Speaker 1: always weird to see a lot of tough things happening 855 00:40:14,520 --> 00:40:16,359 Speaker 1: in the economy and the stock market going up. And 856 00:40:16,360 --> 00:40:18,520 Speaker 1: but you're right, man, it's because the market is more 857 00:40:18,560 --> 00:40:20,440 Speaker 1: forward looking. They're not looking at the numbers that got 858 00:40:20,440 --> 00:40:23,359 Speaker 1: reported yesterday. They're looking at kind of what's happening six, eight, 859 00:40:23,360 --> 00:40:26,160 Speaker 1: twelve months in the future. That is where investors that's 860 00:40:26,200 --> 00:40:29,439 Speaker 1: where their gaze is set and moheat. If you opt 861 00:40:29,480 --> 00:40:31,279 Speaker 1: to go this route, by the way, make sure you're 862 00:40:31,320 --> 00:40:34,480 Speaker 1: investing with a long term time horizon, because yes, the 863 00:40:34,880 --> 00:40:36,480 Speaker 1: market is going to be a great place for you 864 00:40:36,520 --> 00:40:39,480 Speaker 1: to stash your money for the future, but so much 865 00:40:39,480 --> 00:40:42,360 Speaker 1: of your decision needs to be based around your specific timeline. 866 00:40:42,360 --> 00:40:44,879 Speaker 1: If you're looking to take this money out a year 867 00:40:44,960 --> 00:40:47,120 Speaker 1: or two from now, you might be putting yourself at 868 00:40:47,160 --> 00:40:51,000 Speaker 1: undue risk. And the longer you have, the more likely 869 00:40:51,480 --> 00:40:53,480 Speaker 1: it is that you should be investing. And let me 870 00:40:53,640 --> 00:40:56,040 Speaker 1: just drive home just how smart it is to be 871 00:40:56,080 --> 00:40:59,120 Speaker 1: investing right now, because when the recovery happens, and it 872 00:40:59,200 --> 00:41:02,239 Speaker 1: historically happened quickly in with great force, you're gonna want 873 00:41:02,239 --> 00:41:03,719 Speaker 1: to be a part of that. And when you look 874 00:41:03,760 --> 00:41:07,719 Speaker 1: at a chart of historical draw downs of or more, 875 00:41:07,760 --> 00:41:10,360 Speaker 1: which is what we've experienced this year, the average market 876 00:41:10,400 --> 00:41:13,960 Speaker 1: return one year later is twenty one and the three 877 00:41:14,040 --> 00:41:16,920 Speaker 1: year average is almost thirty seven percent, and then the 878 00:41:16,960 --> 00:41:21,600 Speaker 1: five year average is almost And so those are historical averages, right, 879 00:41:21,640 --> 00:41:24,320 Speaker 1: Like Matt and I and nobody out there can guarantee 880 00:41:24,560 --> 00:41:26,360 Speaker 1: where the market is going to be one, three, or 881 00:41:26,400 --> 00:41:30,280 Speaker 1: five years from today. But even though history doesn't repeat, 882 00:41:30,280 --> 00:41:32,120 Speaker 1: it does tend to rhyme. And we would say we 883 00:41:32,160 --> 00:41:35,200 Speaker 1: feel better investing today than we did in January, and 884 00:41:35,239 --> 00:41:38,400 Speaker 1: we think every listener should like. The bear market shouldn't 885 00:41:38,640 --> 00:41:41,360 Speaker 1: frighten you. It should actually make you feel more confident 886 00:41:41,400 --> 00:41:43,439 Speaker 1: in the prospects that every dollar you put in now 887 00:41:43,760 --> 00:41:46,200 Speaker 1: is likely to be worth more in the medium and 888 00:41:46,200 --> 00:41:48,600 Speaker 1: long term future than than dollars you put in U 889 00:41:48,760 --> 00:41:50,919 Speaker 1: six months ago. That's true. Yeah, Like I was thinking 890 00:41:50,960 --> 00:41:53,759 Speaker 1: about saying that the way I invest now during a 891 00:41:53,840 --> 00:41:56,720 Speaker 1: volatile bear market is no different than how I invest 892 00:41:56,800 --> 00:42:01,399 Speaker 1: during U of a smooth sailing bowl market. But that's 893 00:42:01,440 --> 00:42:04,000 Speaker 1: actually not true, because I'm actually investing more now like 894 00:42:04,000 --> 00:42:06,719 Speaker 1: I've invested more in the past few months because the 895 00:42:06,760 --> 00:42:09,319 Speaker 1: market is on sale than I typically would. And so 896 00:42:09,360 --> 00:42:12,239 Speaker 1: what that means like, literally, I've I keep of a 897 00:42:12,360 --> 00:42:15,359 Speaker 1: six plus months amount of emergency funds sitting around because 898 00:42:15,360 --> 00:42:18,000 Speaker 1: that's how our family feels comfortable. But because of the 899 00:42:18,000 --> 00:42:19,840 Speaker 1: fact that the market was on sale, I felt comfortable 900 00:42:19,880 --> 00:42:22,759 Speaker 1: pulling some of that money out and channeling that towards investments. 901 00:42:22,920 --> 00:42:25,000 Speaker 1: And so whereas before I had six plus months worth 902 00:42:25,080 --> 00:42:27,120 Speaker 1: of living expenses set aside, it's it's closer to like 903 00:42:27,160 --> 00:42:29,520 Speaker 1: four to five months now. And that's not something I 904 00:42:29,560 --> 00:42:33,040 Speaker 1: would do when the market is basically at all time highs. 905 00:42:33,280 --> 00:42:35,239 Speaker 1: And so while other folks that they're diving for cover 906 00:42:35,280 --> 00:42:37,880 Speaker 1: and they're looking for investments that feel a little bit safer, 907 00:42:37,960 --> 00:42:42,400 Speaker 1: this is a perfect opportunity to basically zig while everybody 908 00:42:42,400 --> 00:42:45,400 Speaker 1: else is zagging to buy the U S economy while 909 00:42:45,480 --> 00:42:47,120 Speaker 1: it is on sale. And so let's go ahead now 910 00:42:47,200 --> 00:42:49,480 Speaker 1: get to our last question of the episode. And we've 911 00:42:49,520 --> 00:42:52,600 Speaker 1: got a listener here who is wondering basically what it 912 00:42:52,640 --> 00:42:55,399 Speaker 1: means to be an authorized user on a credit card. 913 00:42:56,200 --> 00:42:58,799 Speaker 1: I just canting from Ohio. I just like a quick 914 00:42:58,880 --> 00:43:02,400 Speaker 1: question on credit card when a kid turned eighteen, Should 915 00:43:02,440 --> 00:43:05,440 Speaker 1: you take them off as an authorized user or should 916 00:43:05,440 --> 00:43:08,799 Speaker 1: you keep them on? And if you do take them off, well, 917 00:43:08,800 --> 00:43:12,320 Speaker 1: that closed their longest line of credit. Thanks for the hope, 918 00:43:13,120 --> 00:43:16,239 Speaker 1: can't This is a great question, and you know, it's 919 00:43:16,239 --> 00:43:19,080 Speaker 1: something actually we talked about recently on the show in 920 00:43:19,160 --> 00:43:22,239 Speaker 1: episode five eight seven when we talked about setting your 921 00:43:22,320 --> 00:43:24,839 Speaker 1: kids up for financial success. Talked about that last week. Yeah, 922 00:43:24,920 --> 00:43:28,200 Speaker 1: we mentioned that making your kid an authorized user is 923 00:43:28,239 --> 00:43:30,160 Speaker 1: kind of an advanced move that can help your kid 924 00:43:30,280 --> 00:43:33,799 Speaker 1: build credit standing before they're actually prepared to go out 925 00:43:33,840 --> 00:43:36,560 Speaker 1: and do that on their own. And and and part 926 00:43:36,560 --> 00:43:38,880 Speaker 1: of that, by the way, we mentioned that helping your 927 00:43:38,960 --> 00:43:42,520 Speaker 1: kid become financially savvy beyond just helping set up their 928 00:43:42,560 --> 00:43:47,280 Speaker 1: credit score for success is helping them understand how credit 929 00:43:47,320 --> 00:43:49,040 Speaker 1: scoring works too. So that's something you want to do, 930 00:43:49,040 --> 00:43:51,359 Speaker 1: hopefully in their teenage years. Yes, that's not just doing 931 00:43:51,360 --> 00:43:54,719 Speaker 1: something for them, but walking them through that process and 932 00:43:54,760 --> 00:43:57,120 Speaker 1: giving them the knowledge so that they can do it 933 00:43:57,120 --> 00:43:59,520 Speaker 1: on their own. But but adding them as an authorized 934 00:43:59,600 --> 00:44:01,560 Speaker 1: user on one of your credit cards is the best 935 00:44:01,600 --> 00:44:03,560 Speaker 1: way to get them started down the path of having 936 00:44:03,960 --> 00:44:07,279 Speaker 1: an excellent credit standing that they can wield successfully in 937 00:44:07,400 --> 00:44:10,160 Speaker 1: the coming years. And by the way, it's not very 938 00:44:10,200 --> 00:44:13,000 Speaker 1: difficult to do. It's one of those processes that's going 939 00:44:13,080 --> 00:44:15,600 Speaker 1: to give them benefit. But it's also going to take 940 00:44:15,680 --> 00:44:18,440 Speaker 1: you just thirty seconds to a minute of your time. 941 00:44:18,640 --> 00:44:20,560 Speaker 1: It's it's one of you log into the back end 942 00:44:20,600 --> 00:44:23,040 Speaker 1: off your of your credit card account. You can easily 943 00:44:23,080 --> 00:44:25,400 Speaker 1: find the place to add authorized users to your account, 944 00:44:25,760 --> 00:44:28,640 Speaker 1: and as many kiddows as you have, like toss them 945 00:44:28,640 --> 00:44:31,680 Speaker 1: on there and make sure that that your good credit 946 00:44:31,680 --> 00:44:34,919 Speaker 1: card usage is actually helping them build their own solid 947 00:44:34,960 --> 00:44:37,479 Speaker 1: credit standing for the future exactly. But the opposite, of course, 948 00:44:37,560 --> 00:44:39,880 Speaker 1: is also true. If you are not paying your bills 949 00:44:40,000 --> 00:44:42,319 Speaker 1: on time and in full every month, that's going to 950 00:44:42,400 --> 00:44:45,440 Speaker 1: reflect negatively on their their credit remport. And the cool 951 00:44:45,480 --> 00:44:47,000 Speaker 1: thing is too, you get to be really confident that 952 00:44:47,040 --> 00:44:49,799 Speaker 1: you or you're hurting your kids. Yeah, and you can 953 00:44:49,800 --> 00:44:52,880 Speaker 1: pretty much do this at any age, uh, regardless of 954 00:44:52,920 --> 00:44:54,680 Speaker 1: how how old your kid is. Except for AMEX, I 955 00:44:54,719 --> 00:44:57,120 Speaker 1: know that they require your kids to be at least 956 00:44:57,160 --> 00:45:00,560 Speaker 1: thirteen years old before you can add them. But now 957 00:45:00,600 --> 00:45:03,400 Speaker 1: that we've identified that you know authorized user status, that 958 00:45:03,440 --> 00:45:06,080 Speaker 1: this is a good thing, how long should your kids 959 00:45:06,320 --> 00:45:09,240 Speaker 1: be piggybacking, right, and when should you cut the umbilical 960 00:45:09,320 --> 00:45:11,839 Speaker 1: cord kent where you're making them establish their their own 961 00:45:11,840 --> 00:45:16,680 Speaker 1: credit standing. Well, you ideally want these phases to overlap, right, 962 00:45:16,760 --> 00:45:18,359 Speaker 1: Like that makes sense. It's a good idea to wait 963 00:45:18,440 --> 00:45:20,960 Speaker 1: until they've got a couple of lines of credit on 964 00:45:21,040 --> 00:45:24,880 Speaker 1: their own that they're handling effectively and handling responsibly, and 965 00:45:24,880 --> 00:45:28,239 Speaker 1: well before you pull you know, the authorized user rug 966 00:45:28,239 --> 00:45:31,440 Speaker 1: out from under them, because it's going to negatively impact 967 00:45:31,480 --> 00:45:34,040 Speaker 1: their credit score. And the reason for that is because 968 00:45:34,160 --> 00:45:36,640 Speaker 1: not only will you be removing their oldest line of 969 00:45:36,680 --> 00:45:39,960 Speaker 1: credit where you're going to be shortening their credit history basically, 970 00:45:39,960 --> 00:45:43,600 Speaker 1: but you're also reducing the overall amount of credit available 971 00:45:43,640 --> 00:45:47,919 Speaker 1: to them, which would potentially raise their credit utilization rate um. 972 00:45:48,040 --> 00:45:49,520 Speaker 1: And so you know, with that in mind, you know, 973 00:45:49,560 --> 00:45:51,480 Speaker 1: once they do have their own credit cards, once they 974 00:45:51,800 --> 00:45:55,000 Speaker 1: have transition to using them, well, I think then is 975 00:45:55,040 --> 00:45:58,040 Speaker 1: actually a good time to remove that authorized user status 976 00:45:58,520 --> 00:46:00,759 Speaker 1: in your right mat you could impact literally the two 977 00:46:00,840 --> 00:46:03,319 Speaker 1: biggest factors that make up your credit score in one 978 00:46:03,320 --> 00:46:07,360 Speaker 1: fell swoop, which if they haven't established enough credit standing 979 00:46:07,400 --> 00:46:11,200 Speaker 1: personal credit history yet, when you go about the process 980 00:46:11,239 --> 00:46:13,479 Speaker 1: of removing them as an authorized user on your own 981 00:46:13,920 --> 00:46:16,719 Speaker 1: credit card, then they could feel a significant pinch to 982 00:46:16,760 --> 00:46:19,920 Speaker 1: their credit score for a while. And yeah, like you said, 983 00:46:19,960 --> 00:46:22,120 Speaker 1: it's gonna negatively impact their credit score. So it's gonna 984 00:46:22,120 --> 00:46:25,799 Speaker 1: be prudent to talk about this with them before you 985 00:46:25,840 --> 00:46:28,640 Speaker 1: actually pull the rug, before you do give them the 986 00:46:28,680 --> 00:46:32,399 Speaker 1: boot on that authorized user status, because you wouldn't want 987 00:46:32,400 --> 00:46:35,120 Speaker 1: to have forgotten about their status and and then give 988 00:46:35,160 --> 00:46:37,360 Speaker 1: them the boot right as they're trying to get a mortgage, 989 00:46:37,520 --> 00:46:40,360 Speaker 1: pinching them at the worst possible times, like this is 990 00:46:40,400 --> 00:46:42,399 Speaker 1: why I've been working to have such a good credit 991 00:46:42,400 --> 00:46:45,799 Speaker 1: score so that I can get a decent loan, and 992 00:46:45,920 --> 00:46:49,080 Speaker 1: you're upsetting the Apple card at the most inopportune time exactly. 993 00:46:49,080 --> 00:46:51,880 Speaker 1: So yeah, you're gonna want to have that dialogue and say, listen, okay, 994 00:46:51,920 --> 00:46:53,640 Speaker 1: are you applying for credit any time in the next 995 00:46:53,680 --> 00:46:55,759 Speaker 1: six months to a year. If you're not applying for 996 00:46:55,760 --> 00:46:59,080 Speaker 1: anything meaningful, like like a mortgage in particular, that's when 997 00:46:59,080 --> 00:47:02,160 Speaker 1: it's gonna have the biggest impact. Then you can time 998 00:47:02,160 --> 00:47:04,520 Speaker 1: it appropriately. And the thing is, I guess like you 999 00:47:04,600 --> 00:47:07,799 Speaker 1: could even keep them on your as an authorized user 1000 00:47:07,840 --> 00:47:12,719 Speaker 1: on your account indefinitely until they are grown adults, right, 1001 00:47:13,480 --> 00:47:16,000 Speaker 1: But like there's no like he said, when they're eight team, Like, 1002 00:47:16,000 --> 00:47:17,880 Speaker 1: there's no rule that says like when they hit a 1003 00:47:17,920 --> 00:47:20,200 Speaker 1: team that they have to automatically get kicked off. Like 1004 00:47:20,239 --> 00:47:22,920 Speaker 1: just because they're technically an adult now doesn't mean that 1005 00:47:22,960 --> 00:47:26,239 Speaker 1: they can't stay on as an authorized user for like 1006 00:47:26,280 --> 00:47:30,400 Speaker 1: another ten years. Perhaps it doesn't, It doesn't really matter. 1007 00:47:30,719 --> 00:47:33,759 Speaker 1: There really isn't any like sweat off of Kent's bag necessarily. 1008 00:47:34,200 --> 00:47:36,600 Speaker 1: But their piggybacking makes it sound like he's like working 1009 00:47:36,640 --> 00:47:38,880 Speaker 1: hard to do this thing, but like, really, there truly 1010 00:47:38,960 --> 00:47:41,319 Speaker 1: is no additional effort required by him, that's true, but 1011 00:47:41,400 --> 00:47:43,759 Speaker 1: there is the potential for a little bit of at 1012 00:47:43,840 --> 00:47:46,759 Speaker 1: least additional risk. Since your credit is going to be intertwined, 1013 00:47:46,880 --> 00:47:50,160 Speaker 1: and assuming that your child has a solid score in 1014 00:47:50,200 --> 00:47:52,600 Speaker 1: the seven forty plus range, then they're in a great 1015 00:47:52,600 --> 00:47:54,279 Speaker 1: position to go it alone from here on out. We 1016 00:47:54,280 --> 00:47:57,600 Speaker 1: would say, like as they transition into adulthood, asked him 1017 00:47:57,680 --> 00:47:59,799 Speaker 1: questions about their own usage, how their score is doing, 1018 00:48:00,200 --> 00:48:02,759 Speaker 1: and you know, if they're in a great position, let 1019 00:48:02,840 --> 00:48:04,719 Speaker 1: them go it alone from here on out. But the 1020 00:48:04,800 --> 00:48:08,600 Speaker 1: key is to at least briefly allow your child as 1021 00:48:08,600 --> 00:48:11,280 Speaker 1: a young adult to establish their own smart credit usage 1022 00:48:11,440 --> 00:48:14,280 Speaker 1: before you cut those ties in attempt with their input 1023 00:48:14,360 --> 00:48:17,040 Speaker 1: to time at well, so that you're not hamstraeing them 1024 00:48:17,520 --> 00:48:19,600 Speaker 1: as they're trying to make a major purchase. Yeah, it 1025 00:48:19,800 --> 00:48:22,279 Speaker 1: basically would be kind of defeating the entire purpose of 1026 00:48:22,320 --> 00:48:24,640 Speaker 1: giving them that head start on their credit score if 1027 00:48:24,640 --> 00:48:27,920 Speaker 1: you were to unplug it right before they're looking to 1028 00:48:28,000 --> 00:48:30,080 Speaker 1: use it for the biggest purchase of their life. Can't 1029 00:48:30,080 --> 00:48:32,239 Speaker 1: we wish you the best of luck, But Joel, let's 1030 00:48:32,400 --> 00:48:34,160 Speaker 1: shift years and get back to the beer that you 1031 00:48:34,200 --> 00:48:36,840 Speaker 1: and I enjoyed during this episode. This was Utter Chaos, 1032 00:48:37,120 --> 00:48:40,560 Speaker 1: which is a chocolate milk stout by Talisman Brewing. Big 1033 00:48:40,600 --> 00:48:42,840 Speaker 1: thanks to Andy for donating this one to the show. 1034 00:48:43,040 --> 00:48:45,600 Speaker 1: What were your thoughts on this one? Yes, So, milkstouts 1035 00:48:45,640 --> 00:48:48,080 Speaker 1: are are an interesting category, and I feel like if 1036 00:48:48,640 --> 00:48:52,840 Speaker 1: stouts oftentimes can be harder for novice beer offficionados to 1037 00:48:52,880 --> 00:48:55,000 Speaker 1: get into. But I feel like a milkstown is one 1038 00:48:55,040 --> 00:48:57,040 Speaker 1: of those things that almost anybody can enjoy. It's like, 1039 00:48:57,160 --> 00:48:59,160 Speaker 1: if you like you, who you might like a milkstown 1040 00:48:59,480 --> 00:49:02,560 Speaker 1: And and so I think this one, Yeah, it's it's 1041 00:49:02,560 --> 00:49:05,239 Speaker 1: your approachable It's not a very heavy beer. So you 1042 00:49:05,320 --> 00:49:07,080 Speaker 1: might think milks out, Oh, it's gonna be it's gonna 1043 00:49:07,080 --> 00:49:09,919 Speaker 1: be robust and too much and overwhelming, But no, this 1044 00:49:09,920 --> 00:49:11,880 Speaker 1: this feels like a light version of a stout in 1045 00:49:11,880 --> 00:49:15,279 Speaker 1: the lot ways. So if you like dark flavors but 1046 00:49:15,360 --> 00:49:17,799 Speaker 1: you don't want it to be like overwhelming and overpowering, 1047 00:49:18,080 --> 00:49:20,279 Speaker 1: then I think this is this is a good beer totally. Yeah. 1048 00:49:20,280 --> 00:49:23,240 Speaker 1: That lactose that's in there just I mean it's milk basically, 1049 00:49:23,400 --> 00:49:25,320 Speaker 1: like there's milk sugars, and it just helps to smooth 1050 00:49:25,360 --> 00:49:28,160 Speaker 1: everything out, right, Like the it's the same kind of milk, 1051 00:49:28,200 --> 00:49:30,120 Speaker 1: that's it that goes in milk chocolate, right, And so 1052 00:49:30,160 --> 00:49:33,839 Speaker 1: on one hand you've got like the cacao chocolate that's 1053 00:49:34,120 --> 00:49:36,680 Speaker 1: sharp and pungent, and then you've got a bar of 1054 00:49:36,760 --> 00:49:38,960 Speaker 1: nice milk chocolate, which one is going to be easier 1055 00:49:38,960 --> 00:49:41,799 Speaker 1: to eat and smoother. Well, it's the milk chocolate, right. 1056 00:49:41,800 --> 00:49:44,960 Speaker 1: It's the same milk that makes your coffee easier to 1057 00:49:45,040 --> 00:49:47,759 Speaker 1: drink instead of going full black. So I totally agree. 1058 00:49:47,800 --> 00:49:50,719 Speaker 1: It's it's a way to it's like an introductory stouts. 1059 00:49:50,719 --> 00:49:53,359 Speaker 1: This one in particular is a bit lighter as well. 1060 00:49:53,440 --> 00:49:56,000 Speaker 1: Sometimes you can like feel the milk like you can 1061 00:49:56,040 --> 00:49:59,000 Speaker 1: feel the weight of the beer, you know, within your mouth. 1062 00:49:59,600 --> 00:50:01,120 Speaker 1: It has a little bit more body, but this one's 1063 00:50:01,120 --> 00:50:03,560 Speaker 1: a little bit lighter, makes it easier to drink, which again, 1064 00:50:03,600 --> 00:50:06,319 Speaker 1: it's also great if you're you're looking for maybe more 1065 00:50:06,360 --> 00:50:09,080 Speaker 1: of an introductory type of milk stout. Yeah, for sure, 1066 00:50:09,239 --> 00:50:11,520 Speaker 1: all right, Matt, that's gonna do it for this episode. 1067 00:50:11,680 --> 00:50:14,640 Speaker 1: And for listeners who have they're like, you know what, 1068 00:50:14,880 --> 00:50:16,400 Speaker 1: there's a lot of questions. I've got a question on 1069 00:50:16,440 --> 00:50:18,319 Speaker 1: my own, though, well, feel free to holler at us. 1070 00:50:18,320 --> 00:50:20,200 Speaker 1: We'd love to hear and take your question on an 1071 00:50:20,239 --> 00:50:23,000 Speaker 1: upcoming episode. You can find the simple instructions on our 1072 00:50:23,040 --> 00:50:26,080 Speaker 1: website at how to money dot com slash ask. That's 1073 00:50:26,080 --> 00:50:28,200 Speaker 1: all right, but Joel, that's gonna be a buddy for 1074 00:50:28,239 --> 00:50:32,040 Speaker 1: this episode. Until next time, Best Friends Out, Best Friends Out.