1 00:00:00,120 --> 00:00:02,640 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,800 --> 00:00:05,480 Speaker 1: Matt's and today we are asking the question what are 3 00:00:05,519 --> 00:00:27,680 Speaker 1: you worth? That's Rachel, what are you work? It's such 4 00:00:27,680 --> 00:00:30,600 Speaker 1: a provocative question if you actually think about it. It's 5 00:00:30,680 --> 00:00:33,200 Speaker 1: the value of a human life. Man. It's a lot 6 00:00:33,960 --> 00:00:35,879 Speaker 1: economists will actually put a number on it, you know, 7 00:00:35,920 --> 00:00:38,680 Speaker 1: like they run studies and whatnot. But it actually makes 8 00:00:38,680 --> 00:00:42,080 Speaker 1: me think of a near where we live. On our 9 00:00:42,120 --> 00:00:44,919 Speaker 1: part of town, there's an old fast food restaurant that's 10 00:00:44,920 --> 00:00:47,240 Speaker 1: been closed for years, your Long John Silver's. Uh No, 11 00:00:47,440 --> 00:00:49,120 Speaker 1: not that one. On the other side of the street. 12 00:00:49,120 --> 00:00:51,000 Speaker 1: We have a lot of closed down faster restaurants nearby, 13 00:00:51,240 --> 00:00:53,880 Speaker 1: But I'm talking about the one that says on one 14 00:00:53,880 --> 00:00:56,279 Speaker 1: side of the sign that says what's your and then 15 00:00:56,280 --> 00:00:59,240 Speaker 1: on the other side it says sole Purpose. So it's 16 00:00:59,280 --> 00:01:01,400 Speaker 1: always kind of intrigued me. It's it's kind of you know, 17 00:01:01,400 --> 00:01:03,520 Speaker 1: it's it's a provocative sign for me. It always kind 18 00:01:03,520 --> 00:01:05,080 Speaker 1: of get you thinking a little bit. And so, you know, 19 00:01:05,120 --> 00:01:07,520 Speaker 1: that was our goal for this episode, what's Your Worth? 20 00:01:07,600 --> 00:01:10,440 Speaker 1: But we're specifically talking about your net worth. We're not 21 00:01:10,480 --> 00:01:13,040 Speaker 1: gonna necessarily dive into all the things that we need 22 00:01:13,080 --> 00:01:16,640 Speaker 1: to keep in mind when we are judging the quality, 23 00:01:16,920 --> 00:01:19,560 Speaker 1: you know, of our life, our happiness. But yeah, we're 24 00:01:19,640 --> 00:01:21,840 Speaker 1: we're talking about net worth. And I'm actually surprised that 25 00:01:21,840 --> 00:01:24,520 Speaker 1: we haven't talked about this sooner before on the show. Yeah, 26 00:01:24,600 --> 00:01:26,800 Speaker 1: me too. It's such an integral number to personal finance. 27 00:01:26,840 --> 00:01:29,319 Speaker 1: It is, it is, and and obviously your net worth 28 00:01:29,480 --> 00:01:31,760 Speaker 1: is important, but it's also not, of course, the most 29 00:01:31,800 --> 00:01:34,520 Speaker 1: important thing. If it were, that would mean Jeff Bezos 30 00:01:34,560 --> 00:01:37,240 Speaker 1: war is it's two times more important than me. And 31 00:01:37,280 --> 00:01:40,080 Speaker 1: we know that's Hansu maybe maybe one or two billion. 32 00:01:40,080 --> 00:01:42,240 Speaker 1: I'll give him that. He's only worth like five times 33 00:01:42,240 --> 00:01:45,560 Speaker 1: more than you, exactly exactly the human capital. I don't 34 00:01:45,560 --> 00:01:47,360 Speaker 1: know what that means, but right, But yeah, so we're 35 00:01:47,400 --> 00:01:49,640 Speaker 1: gonna talk about net worth today. What net worth means, 36 00:01:49,920 --> 00:01:53,200 Speaker 1: How you can calculate your own net worth, where it 37 00:01:53,280 --> 00:01:55,640 Speaker 1: falls short, all those kind of things. Net Worth is 38 00:01:55,680 --> 00:01:57,680 Speaker 1: the discussion we're gonna be having on the show today. 39 00:01:57,800 --> 00:01:59,440 Speaker 1: Let's do it. But before we get to that, Matt 40 00:01:59,760 --> 00:02:03,960 Speaker 1: not yet frugal or cheap and or the opposite of that, 41 00:02:04,040 --> 00:02:08,440 Speaker 1: and maybe it's neither. Uh. The other day, if I 42 00:02:08,480 --> 00:02:10,919 Speaker 1: did not get ripped off, but we kind of um. 43 00:02:11,520 --> 00:02:14,240 Speaker 1: Birthday cards or buying a card in a store for 44 00:02:14,280 --> 00:02:17,000 Speaker 1: someone is, oh, you ripped yourself off. I ripped myself off. 45 00:02:17,520 --> 00:02:19,720 Speaker 1: I didn't plan ahead. And granted, I have kids, so 46 00:02:19,760 --> 00:02:21,160 Speaker 1: I don't need to buy cards or anyone. I could 47 00:02:21,160 --> 00:02:23,320 Speaker 1: just have them make it out of construction paper. But 48 00:02:23,360 --> 00:02:25,560 Speaker 1: I kind of felt the need for some reason this 49 00:02:25,639 --> 00:02:27,600 Speaker 1: year from my mom's birthday to get a for real card. 50 00:02:27,760 --> 00:02:29,680 Speaker 1: Usually I go to Trader Joe's because there are one 51 00:02:29,720 --> 00:02:32,360 Speaker 1: dollar cards and they're really nice, but I get some 52 00:02:32,480 --> 00:02:34,560 Speaker 1: three butch chuck while you're at it. Yeah, maybe, and 53 00:02:34,600 --> 00:02:36,560 Speaker 1: I just didn't have time to head to Trader Joe's 54 00:02:36,639 --> 00:02:38,240 Speaker 1: this time, so I went to I went to Target, 55 00:02:38,440 --> 00:02:40,600 Speaker 1: and I got a four dollar birthday card. I was 56 00:02:40,600 --> 00:02:42,440 Speaker 1: looking at the cards. Some of them are nine and 57 00:02:42,480 --> 00:02:46,320 Speaker 1: ten dollars for a birthday card, like music playing and 58 00:02:46,360 --> 00:02:48,520 Speaker 1: like fuzzy stuff on the front. It's kind of crazy. 59 00:02:48,560 --> 00:02:50,480 Speaker 1: It's out of control with a lot of money. But yeah, 60 00:02:50,520 --> 00:02:53,280 Speaker 1: so did I rip myself off? Am I should I 61 00:02:53,280 --> 00:02:55,639 Speaker 1: have been more frugal or cheap? Or is it okay 62 00:02:55,639 --> 00:02:57,920 Speaker 1: every once in a while to last minute buy a 63 00:02:58,000 --> 00:02:59,799 Speaker 1: four dollar birthday card for someone you love. I don't 64 00:02:59,800 --> 00:03:02,840 Speaker 1: think need to beat yourself up over it. Four dollars 65 00:03:03,000 --> 00:03:05,440 Speaker 1: in the grand scheme of things, is that a big deal? Like, No, 66 00:03:05,639 --> 00:03:07,280 Speaker 1: if that was us, if we were in that situation, 67 00:03:07,400 --> 00:03:10,399 Speaker 1: that's just an expense that goes into our our giving category, 68 00:03:10,440 --> 00:03:12,480 Speaker 1: which that's our category of our budget every month that 69 00:03:12,520 --> 00:03:14,920 Speaker 1: we set aside for birthdays and money that we spend 70 00:03:14,919 --> 00:03:18,000 Speaker 1: on other people. But could you have spent those three dollars, 71 00:03:18,240 --> 00:03:20,399 Speaker 1: those three additional dollars elsewhere, you know, if you since 72 00:03:20,400 --> 00:03:22,440 Speaker 1: you didn't make it a traitor Joe's yeah, I guess, 73 00:03:22,440 --> 00:03:25,360 Speaker 1: so you could have bought a bottle of wine. But 74 00:03:25,400 --> 00:03:27,240 Speaker 1: I totally hear what you're saying. You know, I'm assuming 75 00:03:27,280 --> 00:03:29,720 Speaker 1: you didn't plan ahead, you know not. And that's actually 76 00:03:29,800 --> 00:03:32,239 Speaker 1: the most frustrating part for me when I spend money 77 00:03:32,280 --> 00:03:35,000 Speaker 1: because I didn't plan ahead. And of course, you know, 78 00:03:35,040 --> 00:03:36,800 Speaker 1: I thought about my mom's birthday, thought about what I 79 00:03:36,800 --> 00:03:39,240 Speaker 1: wanted to give her. I love her very much, and 80 00:03:39,440 --> 00:03:41,720 Speaker 1: it was one of those things though where the vessel 81 00:03:42,040 --> 00:03:44,440 Speaker 1: I just I don't know why I felt the need 82 00:03:44,520 --> 00:03:46,680 Speaker 1: to deliver it that way want to, and typically I'm 83 00:03:46,760 --> 00:03:48,760 Speaker 1: kind of anti that, Like I am the guy who 84 00:03:48,920 --> 00:03:52,080 Speaker 1: will make something out of construction paper myself pre kids 85 00:03:52,160 --> 00:03:54,680 Speaker 1: like I will do that. I don't care, Emily, where's 86 00:03:54,680 --> 00:03:58,240 Speaker 1: the construction paper? I told the markers, I totally used 87 00:03:58,240 --> 00:03:59,920 Speaker 1: to do that. I don't care. Man, Yeah, I don't know. 88 00:04:00,120 --> 00:04:01,560 Speaker 1: Just was one of those things that I I ended up doing, 89 00:04:01,560 --> 00:04:03,120 Speaker 1: and I kind of beat myself up a little bit. 90 00:04:03,120 --> 00:04:05,240 Speaker 1: I think it's totally fine to switch things up, you know, 91 00:04:05,320 --> 00:04:07,240 Speaker 1: like that's something you've done in the past, but you know, 92 00:04:07,280 --> 00:04:09,600 Speaker 1: it kind of makes it when you do by quote 93 00:04:09,680 --> 00:04:12,440 Speaker 1: unquote fancy card, makes it a little more special. And 94 00:04:12,480 --> 00:04:14,200 Speaker 1: on top of that, you're spending it on somebody else, 95 00:04:14,240 --> 00:04:15,800 Speaker 1: And so I tend to feel a little more freedom 96 00:04:15,800 --> 00:04:17,960 Speaker 1: when it comes to spending money on other people. You're 97 00:04:17,960 --> 00:04:20,200 Speaker 1: being a little more altruistic. You're giving that away to 98 00:04:20,200 --> 00:04:22,440 Speaker 1: somebody else. You know, it doesn't necessarily need to be 99 00:04:22,520 --> 00:04:25,039 Speaker 1: the very best deal, because the fact is, like you 100 00:04:25,080 --> 00:04:27,560 Speaker 1: are paying for something. You're paying for a tar J card, 101 00:04:27,720 --> 00:04:29,560 Speaker 1: and I'm guessing those cards might be a little bit 102 00:04:29,600 --> 00:04:32,440 Speaker 1: faancier than than the cards that a traitor Joe's. So 103 00:04:32,480 --> 00:04:33,960 Speaker 1: even though it may not be something like that you 104 00:04:34,040 --> 00:04:35,920 Speaker 1: normally would have done, I think it's I think it's 105 00:04:35,920 --> 00:04:38,080 Speaker 1: totally fine, okay, all right, good, good to know. I'm 106 00:04:38,080 --> 00:04:40,640 Speaker 1: glad you're not kicking me aside from my post as 107 00:04:40,640 --> 00:04:41,960 Speaker 1: the co host of this No, no no, no, you're not 108 00:04:42,000 --> 00:04:44,000 Speaker 1: on my list now for for people who have done 109 00:04:44,040 --> 00:04:46,680 Speaker 1: poor things for their Okay, that's good to know. All right. Well, 110 00:04:46,720 --> 00:04:48,440 Speaker 1: let's Matt mentioned the beer that we're gonna have on 111 00:04:48,440 --> 00:04:51,520 Speaker 1: this episode. This one's called You Who Enter Here, and 112 00:04:51,560 --> 00:04:54,840 Speaker 1: this is an Imperial stout by an awesome brewery right 113 00:04:54,839 --> 00:04:57,880 Speaker 1: down the street from us called Orpheous Brewing. So specifically, man, 114 00:04:57,920 --> 00:05:00,880 Speaker 1: this beer is a very special stat This isn't any 115 00:05:01,080 --> 00:05:02,760 Speaker 1: ordinary stout. But we're not going to get into all 116 00:05:02,800 --> 00:05:04,840 Speaker 1: that now. Well, we'll share our tasting notes and our 117 00:05:04,880 --> 00:05:07,120 Speaker 1: thoughts about this beer at the end of the episode. 118 00:05:07,200 --> 00:05:09,560 Speaker 1: That's right, all right, Matt, Let's get onto the subject 119 00:05:09,600 --> 00:05:13,240 Speaker 1: at hand we're talking about. We'll talk about net worth exactly. 120 00:05:13,520 --> 00:05:15,480 Speaker 1: So the big question of the day is what are 121 00:05:15,520 --> 00:05:17,720 Speaker 1: you worth? And what is your net worth? And net 122 00:05:17,760 --> 00:05:20,719 Speaker 1: worth is a really important measurement of your financial health, 123 00:05:21,400 --> 00:05:24,160 Speaker 1: but you might not have any idea what yours is 124 00:05:24,480 --> 00:05:26,839 Speaker 1: your monthly budget? Well, we've talked about that a lot. 125 00:05:26,920 --> 00:05:30,160 Speaker 1: It's a great snapshot and it actually massively influences your 126 00:05:30,200 --> 00:05:32,839 Speaker 1: net worth because the more you grow the gap between 127 00:05:32,880 --> 00:05:35,480 Speaker 1: your monthly income and your expenses, the more you'll have 128 00:05:35,560 --> 00:05:38,920 Speaker 1: additional money to grow that net worth through saving and investing. 129 00:05:39,160 --> 00:05:41,119 Speaker 1: So I think of budgeting as an amongst the trees 130 00:05:41,200 --> 00:05:43,840 Speaker 1: you while net worth is taking that helicopter ride up 131 00:05:43,839 --> 00:05:46,320 Speaker 1: to get a view of the entire forest. And both 132 00:05:46,320 --> 00:05:49,240 Speaker 1: perspectives are super helpful for anyone who's striving to get 133 00:05:49,240 --> 00:05:52,400 Speaker 1: their finances in order and build wealth. But knowing your 134 00:05:52,440 --> 00:05:54,719 Speaker 1: net worth and knowing how to figure it out and 135 00:05:54,760 --> 00:05:57,720 Speaker 1: then how that factors into how you feel about your 136 00:05:57,760 --> 00:06:01,720 Speaker 1: financial progress is something really important to look at. That's right, man, Essentially, 137 00:06:01,839 --> 00:06:03,960 Speaker 1: net worth like it's a marker of how well you're 138 00:06:03,960 --> 00:06:07,240 Speaker 1: doing specifically financially. You know, like there are going to 139 00:06:07,320 --> 00:06:09,720 Speaker 1: be ups and downs, right depending on how long you've 140 00:06:09,760 --> 00:06:11,920 Speaker 1: been investing. Your net worth might have taken a really 141 00:06:11,920 --> 00:06:15,120 Speaker 1: big hit in March back when the markets declined, but 142 00:06:15,160 --> 00:06:17,080 Speaker 1: if you held on tight like you've likely seen it 143 00:06:17,160 --> 00:06:20,200 Speaker 1: rebound and even surpass maybe where it was before the pandemic. 144 00:06:20,279 --> 00:06:21,839 Speaker 1: But the thing is, when it comes to making smart 145 00:06:21,880 --> 00:06:23,960 Speaker 1: moves with our money, one of the biggest problems is 146 00:06:24,000 --> 00:06:26,719 Speaker 1: that it can just be really difficult to measure or 147 00:06:26,839 --> 00:06:29,200 Speaker 1: judge how well we're doing financially. You know, we talk 148 00:06:29,240 --> 00:06:31,599 Speaker 1: about a lot of different numbers on the show. Personal 149 00:06:31,600 --> 00:06:33,640 Speaker 1: finance can be really confusing, man, And because of this, 150 00:06:33,920 --> 00:06:37,160 Speaker 1: we oftentimes will look outward to things that signal that 151 00:06:37,240 --> 00:06:38,960 Speaker 1: we are doing well, you know. And so I'm talking 152 00:06:38,960 --> 00:06:41,640 Speaker 1: about the things that we buy our home cars, like 153 00:06:41,680 --> 00:06:43,919 Speaker 1: cell phones, and just like the things that we have 154 00:06:44,000 --> 00:06:47,520 Speaker 1: delivered to our front doors. These things are terrible indicators 155 00:06:47,560 --> 00:06:50,120 Speaker 1: as to how we're doing financially, but they're often the 156 00:06:50,200 --> 00:06:52,960 Speaker 1: things that, you know, they catch your eye, and it's 157 00:06:53,000 --> 00:06:55,839 Speaker 1: how we Unfortunately, you know, we'll compare ourselves to others 158 00:06:55,880 --> 00:06:58,240 Speaker 1: as well, and we all know how others how they 159 00:06:58,240 --> 00:07:01,880 Speaker 1: can have an impact on our perception of how we're doing. Yeah, 160 00:07:01,960 --> 00:07:04,719 Speaker 1: and that perception informs so much of how we feel 161 00:07:05,160 --> 00:07:08,640 Speaker 1: about our progress. And another I think in effective way 162 00:07:08,720 --> 00:07:11,360 Speaker 1: for us to measure how we're doing is by one 163 00:07:11,400 --> 00:07:14,720 Speaker 1: other specific number. We consider our salary or our last 164 00:07:14,760 --> 00:07:18,880 Speaker 1: paycheck as being the marker of how well we're doing financially. 165 00:07:18,920 --> 00:07:21,160 Speaker 1: If we make a good income, if that paycheck is 166 00:07:21,200 --> 00:07:24,320 Speaker 1: big every two weeks, then we feel good about where 167 00:07:24,360 --> 00:07:26,920 Speaker 1: we are in in regards to our standing with money. 168 00:07:27,160 --> 00:07:29,160 Speaker 1: But we're talking about net worth and that is a 169 00:07:29,280 --> 00:07:33,040 Speaker 1: much more important factor than just your salary or your income. 170 00:07:33,280 --> 00:07:35,480 Speaker 1: It's a much better barometer of how you're doing. And 171 00:07:35,520 --> 00:07:37,000 Speaker 1: I think if you if you do well, if you 172 00:07:37,040 --> 00:07:40,440 Speaker 1: make a decent salary, it can be attractive to two 173 00:07:40,480 --> 00:07:44,320 Speaker 1: people like software engineers, doctors, or lawyers maybe to consider 174 00:07:44,520 --> 00:07:47,000 Speaker 1: their income as one of the major representatives of how 175 00:07:47,000 --> 00:07:49,920 Speaker 1: they're doing financially. But it doesn't matter how big your 176 00:07:49,960 --> 00:07:52,240 Speaker 1: income is if you're spending it all every month, and 177 00:07:52,280 --> 00:07:54,920 Speaker 1: if you're only looking at income and you're not looking 178 00:07:54,960 --> 00:07:57,760 Speaker 1: at your expenses, then you're only seeing a part of 179 00:07:57,760 --> 00:08:00,960 Speaker 1: the equation. And so compared to buying that others can see, 180 00:08:01,160 --> 00:08:03,560 Speaker 1: our salary is a bit more private, but unfortunately it's 181 00:08:03,560 --> 00:08:05,480 Speaker 1: still a measure we tend to hang our hat on, 182 00:08:05,960 --> 00:08:08,080 Speaker 1: and we think that net worth gives you a kind 183 00:08:08,080 --> 00:08:11,160 Speaker 1: of a more balanced approach to seeing how you're actually 184 00:08:11,160 --> 00:08:13,120 Speaker 1: doing when it comes to your money. Yeah, both of 185 00:08:13,160 --> 00:08:14,920 Speaker 1: these things, right, your salary and what it is you 186 00:08:14,960 --> 00:08:17,440 Speaker 1: spend your money on. Both of these things are relative, 187 00:08:17,480 --> 00:08:20,560 Speaker 1: and so because of that, they are their poor measures 188 00:08:20,560 --> 00:08:23,800 Speaker 1: of how well we actually are doing financially, so obviously, yeah, 189 00:08:23,800 --> 00:08:25,960 Speaker 1: this is where net worth comes in handy and why 190 00:08:25,960 --> 00:08:28,680 Speaker 1: it's so important. It's just a great snapshot to to 191 00:08:28,760 --> 00:08:33,080 Speaker 1: quickly visualize how our overall finances are doing, you know. 192 00:08:33,160 --> 00:08:36,200 Speaker 1: Unlike relying on salary, which only focuses on your income, 193 00:08:36,640 --> 00:08:38,920 Speaker 1: or just relying on buying stuff right, which only focuses 194 00:08:39,000 --> 00:08:42,200 Speaker 1: on some of our expenses. Net worth looks at the 195 00:08:42,360 --> 00:08:44,959 Speaker 1: entire picture and is able to give you cold, hard 196 00:08:45,040 --> 00:08:47,120 Speaker 1: numbers that that tell you like it is, part of 197 00:08:47,160 --> 00:08:50,959 Speaker 1: net worth strength lies in the fact that it's consistent. Uh, 198 00:08:51,000 --> 00:08:54,040 Speaker 1: it's unbiased, you know, it doesn't fluctuate with our emotions. 199 00:08:54,360 --> 00:08:56,680 Speaker 1: We're human and and so that's why it's good for 200 00:08:56,760 --> 00:09:00,000 Speaker 1: us to let data to allow that the proper numbers 201 00:09:00,240 --> 00:09:02,760 Speaker 1: to inform how we're actually doing when it comes to 202 00:09:02,800 --> 00:09:04,960 Speaker 1: our personal finances. And then on top of that too, 203 00:09:05,000 --> 00:09:06,400 Speaker 1: it can also be great when it comes to to 204 00:09:06,520 --> 00:09:09,280 Speaker 1: goal setting. Since you know your net worth, it is 205 00:09:09,400 --> 00:09:12,000 Speaker 1: so easily measured. So yeah, just after the break will 206 00:09:12,000 --> 00:09:13,840 Speaker 1: cover how to track it and how to grow it. 207 00:09:14,080 --> 00:09:16,080 Speaker 1: And of course Matt and I we believe that your 208 00:09:16,120 --> 00:09:18,719 Speaker 1: net worth is important. We've been talking about why it's 209 00:09:18,720 --> 00:09:22,160 Speaker 1: an important gauge. But it also has its shortcomings and 210 00:09:22,200 --> 00:09:34,400 Speaker 1: we'll discuss those things too. Right after this all, Joe, 211 00:09:34,440 --> 00:09:36,720 Speaker 1: we'll back from the break. We're talking about net worth 212 00:09:37,320 --> 00:09:39,880 Speaker 1: and why it's such an important thing, and it is, 213 00:09:39,920 --> 00:09:42,080 Speaker 1: like you said, it's very important for us to detract 214 00:09:42,080 --> 00:09:44,480 Speaker 1: our net worth. It's a very helpful number. But the 215 00:09:44,520 --> 00:09:46,920 Speaker 1: thing is, it's not perfect, you know. It does fall 216 00:09:46,960 --> 00:09:49,400 Speaker 1: short depending on what's going on in the market. Uh, 217 00:09:49,480 --> 00:09:52,120 Speaker 1: your net worth, it can have big ups and downs. 218 00:09:52,400 --> 00:09:54,240 Speaker 1: So for example, I'm thinking, if you bought a home 219 00:09:54,760 --> 00:09:56,680 Speaker 1: in two thousand and six and you still own it 220 00:09:56,760 --> 00:09:59,520 Speaker 1: today for close to a decade, owning that home likely 221 00:09:59,559 --> 00:10:03,160 Speaker 1: didn't not improve your net worth as the value plummeted 222 00:10:03,480 --> 00:10:06,320 Speaker 1: and slowly then begin to to rise in the coming years, 223 00:10:06,760 --> 00:10:08,680 Speaker 1: and so from one year to the next, depending on 224 00:10:08,679 --> 00:10:11,040 Speaker 1: on how your money is allocated. Net Worth isn't the 225 00:10:11,080 --> 00:10:14,600 Speaker 1: best benchmark of how you are actually doing, you know, 226 00:10:14,679 --> 00:10:18,680 Speaker 1: especially considering all the other areas of our lives that 227 00:10:18,760 --> 00:10:21,400 Speaker 1: are arguably even more important than you know, how much 228 00:10:21,400 --> 00:10:23,800 Speaker 1: we're worth. Yeah, your net worth isn't the end all 229 00:10:23,840 --> 00:10:26,480 Speaker 1: be all. It doesn't dictate your level of happiness, right. 230 00:10:26,920 --> 00:10:29,640 Speaker 1: Sometimes the people with the highest net worths are actually 231 00:10:29,640 --> 00:10:32,640 Speaker 1: the unhappiest among us, and vice versa can be true. 232 00:10:32,880 --> 00:10:36,400 Speaker 1: People with very little net worth can find so much 233 00:10:36,480 --> 00:10:39,240 Speaker 1: value in the most important things in life, which are 234 00:10:39,280 --> 00:10:42,400 Speaker 1: typically people and how you spend your time. And you 235 00:10:42,440 --> 00:10:44,800 Speaker 1: don't need a high net worth in order to enjoy 236 00:10:44,880 --> 00:10:47,439 Speaker 1: those finer and cheaper things in life, right, like spending 237 00:10:47,480 --> 00:10:50,400 Speaker 1: time with your friends, going on a family hike, the 238 00:10:50,400 --> 00:10:53,480 Speaker 1: occasional fine craft beer, while that one bottle, like all 239 00:10:53,480 --> 00:10:56,760 Speaker 1: those things, that one bottle might be kind of expensive, 240 00:10:56,960 --> 00:10:59,679 Speaker 1: but it's not ridiculously expensive. And even a lot of 241 00:10:59,720 --> 00:11:02,360 Speaker 1: people a very little means can afford a nice beer 242 00:11:02,400 --> 00:11:05,000 Speaker 1: from time to time. So while we're talking about the 243 00:11:05,000 --> 00:11:07,520 Speaker 1: importance of net worth as a measuring stick in this episode, 244 00:11:07,760 --> 00:11:11,280 Speaker 1: remember the other important non financial measuring sticks to the 245 00:11:11,320 --> 00:11:13,760 Speaker 1: title of this episode is what are you worth? And 246 00:11:13,800 --> 00:11:16,160 Speaker 1: the answer, in part at least, is that you're not 247 00:11:16,280 --> 00:11:18,480 Speaker 1: worth what your net worth is. And while it is 248 00:11:18,480 --> 00:11:21,240 Speaker 1: a good barometer, that doesn't directly inform the value of 249 00:11:21,240 --> 00:11:23,120 Speaker 1: your life and and how much fun and joy you 250 00:11:23,120 --> 00:11:25,280 Speaker 1: can have. Yeah, there are lots of other aspects of life, 251 00:11:25,360 --> 00:11:28,400 Speaker 1: right I'm thinking of like quality relationships. I'm thinking of 252 00:11:28,640 --> 00:11:30,840 Speaker 1: the ability to to kind of manage our own time 253 00:11:30,920 --> 00:11:33,480 Speaker 1: if you have like time, freedom and like meaningful work, Like, 254 00:11:33,520 --> 00:11:35,640 Speaker 1: there are so many different ways that we need to 255 00:11:35,720 --> 00:11:38,400 Speaker 1: keep in mind. All those things lead to more balance 256 00:11:38,440 --> 00:11:40,800 Speaker 1: and happiness in our lives. So we're saying that because 257 00:11:40,800 --> 00:11:42,720 Speaker 1: we want to make sure that we couch this episode 258 00:11:42,720 --> 00:11:44,320 Speaker 1: a little bit and you know, the things that are 259 00:11:44,360 --> 00:11:46,720 Speaker 1: a little more important. But that being said, let's kind 260 00:11:46,720 --> 00:11:49,440 Speaker 1: of move forward now with you know, money, Like, that's 261 00:11:49,480 --> 00:11:51,800 Speaker 1: what we talk about on the show. We've been talking 262 00:11:51,840 --> 00:11:55,280 Speaker 1: about net worth, why it's important, why it's not overly important, 263 00:11:55,400 --> 00:11:57,360 Speaker 1: but let's get a little more practical with it. Let's 264 00:11:57,400 --> 00:12:00,120 Speaker 1: talk about how you can determine your net worth. A 265 00:12:00,120 --> 00:12:02,040 Speaker 1: lot of folks out there probably wondering how you can 266 00:12:02,080 --> 00:12:04,320 Speaker 1: figure the darn thing out. And the simple formula is 267 00:12:04,360 --> 00:12:07,679 Speaker 1: you take your assets owned minus your debts owed. Your 268 00:12:07,720 --> 00:12:10,560 Speaker 1: debts are your liabilities owed. So on the asset side, 269 00:12:10,600 --> 00:12:12,960 Speaker 1: you know, you'll take ato account your your savings, different 270 00:12:12,960 --> 00:12:15,920 Speaker 1: investments you have, the value of your home or maybe 271 00:12:15,920 --> 00:12:19,520 Speaker 1: a business you own, basically anything that has significant value. 272 00:12:19,960 --> 00:12:21,760 Speaker 1: And then on the debt side, you want to include 273 00:12:21,760 --> 00:12:25,960 Speaker 1: car notes, mortgage balances, student loans, credit cards, basically anytime 274 00:12:26,000 --> 00:12:28,920 Speaker 1: you have payments, especially ones that are recurring payments. These 275 00:12:28,920 --> 00:12:32,160 Speaker 1: are all examples of liabilities. All right, question for a friend, then, Matt, 276 00:12:32,440 --> 00:12:35,760 Speaker 1: does their beanie baby collection count in their net worth? Like? 277 00:12:36,000 --> 00:12:38,360 Speaker 1: Is that something that's valuable enough to count? That's actually 278 00:12:38,360 --> 00:12:40,400 Speaker 1: a good question because I think it would depend on 279 00:12:40,520 --> 00:12:44,520 Speaker 1: how valuable that odd thing that they have is, you know, 280 00:12:44,640 --> 00:12:47,080 Speaker 1: because I mean the short answer what you're looking for 281 00:12:47,200 --> 00:12:49,400 Speaker 1: is no, like that doesn't really count. Like these are small, 282 00:12:49,600 --> 00:12:52,679 Speaker 1: insignificant things that we own. Maybe your collection is that's 283 00:12:52,679 --> 00:12:54,360 Speaker 1: the thing, Like, there might be somebody who owns something 284 00:12:54,400 --> 00:12:56,840 Speaker 1: like that's really really valuable in the thousands of dollars. 285 00:12:56,840 --> 00:12:59,240 Speaker 1: And so if you own something that is worth I 286 00:12:59,240 --> 00:13:02,360 Speaker 1: would say over five or ten dollars, I think that's 287 00:13:02,360 --> 00:13:04,880 Speaker 1: when I at least would start including that when I'm 288 00:13:04,920 --> 00:13:06,880 Speaker 1: calculating my net worth. Yeah, if you can hop on 289 00:13:06,920 --> 00:13:09,200 Speaker 1: eBay and tell your meanie babies for five grand tomorrow, 290 00:13:09,240 --> 00:13:11,800 Speaker 1: then count them in your network. That's an asset exactly. 291 00:13:12,000 --> 00:13:13,959 Speaker 1: But I mean that being said, so the way we're 292 00:13:13,960 --> 00:13:16,880 Speaker 1: talking about determining your net worth here like is by 293 00:13:16,920 --> 00:13:19,439 Speaker 1: doing it by hand. And while that is actually a 294 00:13:19,480 --> 00:13:22,240 Speaker 1: pretty simple formula, it's not the easiest way, so they're 295 00:13:22,240 --> 00:13:24,400 Speaker 1: actually better, faster ways to do it, and so that's 296 00:13:24,400 --> 00:13:26,360 Speaker 1: what we're gonna talk about next. Yeah, totally. I love 297 00:13:26,600 --> 00:13:29,000 Speaker 1: kind of having some help in that regard, and it 298 00:13:29,080 --> 00:13:30,920 Speaker 1: just makes me think of why I had to learn 299 00:13:31,000 --> 00:13:33,480 Speaker 1: certain kinds of math when there were calculators that I 300 00:13:33,480 --> 00:13:35,960 Speaker 1: could use. And the same thing holds is that, like, 301 00:13:36,040 --> 00:13:39,239 Speaker 1: you don't necessarily have to figure out how to continually 302 00:13:39,280 --> 00:13:41,880 Speaker 1: update your net worth by hand when you can use 303 00:13:42,200 --> 00:13:44,240 Speaker 1: some sort of software that's gonna help you do that. 304 00:13:44,280 --> 00:13:47,000 Speaker 1: On the rag and Matt, I've been using Mint for 305 00:13:47,040 --> 00:13:49,760 Speaker 1: a long time now, and while it doesn't have any 306 00:13:49,840 --> 00:13:51,959 Speaker 1: of the features that a service like wine app has, 307 00:13:52,040 --> 00:13:55,280 Speaker 1: which is specifically trying to help people budget, Mint is 308 00:13:55,360 --> 00:13:58,480 Speaker 1: great for we're tracking what you have spent, and it 309 00:13:58,520 --> 00:14:01,800 Speaker 1: helps you keep up with your overall assets and liabilities 310 00:14:02,280 --> 00:14:04,440 Speaker 1: and and so in that regard, it helps you stay 311 00:14:04,480 --> 00:14:06,000 Speaker 1: up to speed on your net worth. If you look 312 00:14:06,160 --> 00:14:08,120 Speaker 1: on the left hand side when you log into Mint, 313 00:14:08,160 --> 00:14:10,120 Speaker 1: if you have a Mint account, you can get a 314 00:14:10,160 --> 00:14:13,120 Speaker 1: real handy snapshot of your net worth on all of 315 00:14:13,160 --> 00:14:16,160 Speaker 1: your pertinent accounts as you plug into log in information 316 00:14:16,320 --> 00:14:19,840 Speaker 1: for your bank accounts for your investment accounts and you 317 00:14:20,040 --> 00:14:22,920 Speaker 1: list what sort of car you own and properties you own. 318 00:14:23,000 --> 00:14:26,520 Speaker 1: It will keep an updated tab of exactly where you're 319 00:14:26,560 --> 00:14:28,040 Speaker 1: at when it comes to your net worth, and I 320 00:14:28,080 --> 00:14:30,600 Speaker 1: like being able to see that snapshot on the RAG 321 00:14:30,880 --> 00:14:33,240 Speaker 1: when I log in. It's one of my favorite things 322 00:14:33,280 --> 00:14:36,000 Speaker 1: about using Mint for sure. Nice man, you know, actually 323 00:14:36,120 --> 00:14:38,200 Speaker 1: meant was the first time I saw my net worth? 324 00:14:38,240 --> 00:14:39,760 Speaker 1: You know, like back in the day, I had entered 325 00:14:39,800 --> 00:14:41,680 Speaker 1: in all my accounts, kind of linked up my accounts, 326 00:14:41,920 --> 00:14:43,480 Speaker 1: and that was the first time I kind of was 327 00:14:43,600 --> 00:14:45,400 Speaker 1: aware of the fact that, like, oh yeah, I guess 328 00:14:45,400 --> 00:14:47,480 Speaker 1: net worth is something that is good to start tracking. 329 00:14:47,800 --> 00:14:50,560 Speaker 1: But recently I've been using Personal Capital, you know, so 330 00:14:50,680 --> 00:14:52,480 Speaker 1: like Mint, you can see an up to date figure 331 00:14:52,640 --> 00:14:54,920 Speaker 1: of your net worth without having to do a bunch 332 00:14:54,960 --> 00:14:57,680 Speaker 1: of math by hand, but Personal Capital leans a little 333 00:14:57,720 --> 00:15:00,520 Speaker 1: more into the investing side of things that Mint does. 334 00:15:01,120 --> 00:15:03,720 Speaker 1: One of the things I love about Personal Capital is 335 00:15:03,760 --> 00:15:06,640 Speaker 1: that it's got this thing called a you Index, which 336 00:15:06,680 --> 00:15:09,800 Speaker 1: is essentially how your net worth is performing over time. 337 00:15:10,000 --> 00:15:12,800 Speaker 1: They're able to combine all of your investment holdings into 338 00:15:12,880 --> 00:15:15,720 Speaker 1: a single number, and then you can track that along 339 00:15:16,240 --> 00:15:18,760 Speaker 1: uh and compare it with other indexes like the SMP 340 00:15:18,840 --> 00:15:22,160 Speaker 1: five hundred and so you essentially can see how your 341 00:15:22,400 --> 00:15:24,760 Speaker 1: you know you index, like how you are doing compared 342 00:15:24,800 --> 00:15:27,240 Speaker 1: to the overall market are depending on whichever index you 343 00:15:27,240 --> 00:15:29,200 Speaker 1: want to follow. So, man, I found that to be 344 00:15:29,280 --> 00:15:31,240 Speaker 1: really stinking cool. And a lot of folks have not 345 00:15:31,400 --> 00:15:34,000 Speaker 1: heard of personal capital before. I actually just wrote a 346 00:15:34,040 --> 00:15:36,480 Speaker 1: review up on our website there at how too many 347 00:15:36,520 --> 00:15:38,080 Speaker 1: dot com and we'll make sure that we linked to 348 00:15:38,120 --> 00:15:40,600 Speaker 1: it in our show notes for this episode. So much 349 00:15:40,640 --> 00:15:42,600 Speaker 1: better than like a stone tablet and a chisel, like 350 00:15:42,800 --> 00:15:44,920 Speaker 1: keeping your net worth Like that not the way to 351 00:15:44,920 --> 00:15:47,160 Speaker 1: do it. I prefer Papyrus. Do you know your love 352 00:15:47,240 --> 00:15:50,200 Speaker 1: for ancient Egyptian history is coming out right now? Well? 353 00:15:50,240 --> 00:15:54,960 Speaker 1: I do like history and crappy typefaces, all right. Well, 354 00:15:55,160 --> 00:15:57,240 Speaker 1: so now that we know, maybe the designer side of 355 00:15:57,240 --> 00:15:59,440 Speaker 1: me coming up. Yeah, I mean you know about Pappy, 356 00:15:59,480 --> 00:16:02,480 Speaker 1: about Papa IRUs, I mean, is that is that actually 357 00:16:02,480 --> 00:16:04,520 Speaker 1: a type font? Yeah? I didn't know that. It's it's 358 00:16:04,560 --> 00:16:06,640 Speaker 1: like this, yeah, dude, I know, like times, Doon, Roman 359 00:16:06,640 --> 00:16:08,960 Speaker 1: and aerial, that's all I know. Sorry. And Helvetica here 360 00:16:08,960 --> 00:16:10,840 Speaker 1: A lot of designers like that one, right, Yeah, Hevetica 361 00:16:10,880 --> 00:16:12,720 Speaker 1: is a great one. But Papyrus is like this one 362 00:16:12,760 --> 00:16:14,800 Speaker 1: that's known. It's kind of got this cult following of 363 00:16:14,840 --> 00:16:18,040 Speaker 1: people because so many individuals use it to like when 364 00:16:18,040 --> 00:16:20,120 Speaker 1: they're making like their own business card or they're making 365 00:16:20,120 --> 00:16:21,960 Speaker 1: their own sign or something like that. A lot of 366 00:16:22,000 --> 00:16:23,720 Speaker 1: graphic designers like to make fun of it, because a 367 00:16:23,720 --> 00:16:26,200 Speaker 1: lot of non designers love to use it because it 368 00:16:26,240 --> 00:16:30,040 Speaker 1: looks fun, it looks interesting. Uh, and so it gets 369 00:16:30,080 --> 00:16:32,040 Speaker 1: a bad rat because of that. All right, Yeah, if 370 00:16:32,080 --> 00:16:35,160 Speaker 1: the late person is using it and the professionals not, 371 00:16:35,320 --> 00:16:37,880 Speaker 1: I can understand that. All right, Well, let's talk about 372 00:16:37,880 --> 00:16:40,160 Speaker 1: to Matt. Obviously, if you're using one of those services 373 00:16:40,160 --> 00:16:42,440 Speaker 1: to help you track your net worth, that's gonna be 374 00:16:42,560 --> 00:16:45,960 Speaker 1: really nice. It's gonna come in handy. But evaluating what 375 00:16:46,000 --> 00:16:48,960 Speaker 1: you're seeing then is really important. It would be ideal, 376 00:16:49,000 --> 00:16:51,640 Speaker 1: of course, to see your net worth grow every single month, 377 00:16:52,040 --> 00:16:55,360 Speaker 1: but market shift and you will see fluctuation. And so 378 00:16:55,440 --> 00:16:57,800 Speaker 1: as long as you're consistently saving more of your income 379 00:16:57,800 --> 00:17:00,560 Speaker 1: and investing it wisely while at the same time avoiding 380 00:17:00,680 --> 00:17:03,840 Speaker 1: unhelpful debt, that number will grow. It's just not going 381 00:17:03,920 --> 00:17:07,720 Speaker 1: to be like consistently up into the right trajectory, right 382 00:17:07,840 --> 00:17:09,360 Speaker 1: and I think for those of us who are maybe 383 00:17:09,440 --> 00:17:12,400 Speaker 1: a little more anal retentive when it comes to following 384 00:17:12,400 --> 00:17:15,080 Speaker 1: our net worth and tracking it, we might get bummed 385 00:17:15,320 --> 00:17:17,920 Speaker 1: with the market has a temper centrop in a month 386 00:17:18,240 --> 00:17:21,400 Speaker 1: and we're like, man, my net worst down. That's not cool. Um. 387 00:17:21,440 --> 00:17:23,720 Speaker 1: But yeah, like we said, net worth is a helpful 388 00:17:23,800 --> 00:17:26,680 Speaker 1: measuring stick, but it's not perfect. And so yeah, when 389 00:17:26,760 --> 00:17:30,040 Speaker 1: those markets do shift and when our net worth takes 390 00:17:30,040 --> 00:17:32,600 Speaker 1: a hit, that shouldn't be a hit to our confidence 391 00:17:32,880 --> 00:17:34,520 Speaker 1: or make us feel like we're not doing it right. 392 00:17:34,680 --> 00:17:37,040 Speaker 1: That's just kind of part of how things go as 393 00:17:37,080 --> 00:17:39,240 Speaker 1: we're building wealth for the future, that's right, man. And 394 00:17:39,240 --> 00:17:41,199 Speaker 1: the thing is too, I mean over the course of 395 00:17:41,280 --> 00:17:43,680 Speaker 1: years right over, Like when you zoom out, you do 396 00:17:43,800 --> 00:17:45,760 Speaker 1: want to see your net worth going up over time 397 00:17:45,960 --> 00:17:47,840 Speaker 1: if you are seeing it kind of instead of going 398 00:17:47,920 --> 00:17:49,800 Speaker 1: up into the right, if you're seeing it going down 399 00:17:49,800 --> 00:17:52,080 Speaker 1: into the right, like, that's that's a bad sign cause 400 00:17:52,160 --> 00:17:54,159 Speaker 1: for concern exactly. But I mean, I think a lot 401 00:17:54,200 --> 00:17:56,159 Speaker 1: of our listeners too might be wondering, like when it 402 00:17:56,160 --> 00:17:58,120 Speaker 1: comes to a specific numbers, like what should I be 403 00:17:58,960 --> 00:18:01,399 Speaker 1: not necessarily getting for what's normal right now? You know, 404 00:18:01,440 --> 00:18:03,919 Speaker 1: like where should I be in United We came across 405 00:18:03,920 --> 00:18:06,720 Speaker 1: some stats, uh, and it showed that the median net 406 00:18:06,760 --> 00:18:09,720 Speaker 1: worth for somebody who is under thirty five is eleven 407 00:18:09,720 --> 00:18:12,439 Speaker 1: thousand dollars. And so if you have calculated your net 408 00:18:12,480 --> 00:18:15,119 Speaker 1: worth and you're like, I'm only sitting at like two grand, 409 00:18:16,119 --> 00:18:19,520 Speaker 1: that's okay. There's not this massive chasm between you and 410 00:18:19,600 --> 00:18:22,159 Speaker 1: what the median person has and what. We wanted to 411 00:18:22,160 --> 00:18:24,320 Speaker 1: share that because it can be helpful to see where 412 00:18:24,600 --> 00:18:26,960 Speaker 1: you know your peers were other stack up, yeah, Matt. 413 00:18:26,960 --> 00:18:29,640 Speaker 1: And it's interesting too, because net worth is so much 414 00:18:29,680 --> 00:18:34,040 Speaker 1: about numbers. It's literally this hard number of assets minus debts. 415 00:18:34,080 --> 00:18:36,520 Speaker 1: But at the same time, there's a certain sense to 416 00:18:36,560 --> 00:18:39,359 Speaker 1: which your net worth is not a direct reflection of 417 00:18:39,400 --> 00:18:41,560 Speaker 1: a number. And let me give this example of kind 418 00:18:41,560 --> 00:18:43,760 Speaker 1: of what I mean by that. For instance, if you 419 00:18:43,880 --> 00:18:45,560 Speaker 1: went back to school to get an m b A 420 00:18:45,960 --> 00:18:49,440 Speaker 1: and that cost fifty dollars, and you're now in fifty 421 00:18:49,760 --> 00:18:52,000 Speaker 1: dollars of student loan debt because you went back to 422 00:18:52,000 --> 00:18:54,800 Speaker 1: get that NBA, well, that will negatively affect your net 423 00:18:54,840 --> 00:18:58,120 Speaker 1: worth for a number of years. But the goal of 424 00:18:58,119 --> 00:19:00,800 Speaker 1: getting that n b A is that you will have 425 00:19:01,000 --> 00:19:04,200 Speaker 1: increased earnings after graduation for years and years to come, 426 00:19:04,520 --> 00:19:07,160 Speaker 1: and that your ability to earn just a much better 427 00:19:07,200 --> 00:19:10,560 Speaker 1: income over decades is going to far outwaigh the student 428 00:19:10,560 --> 00:19:12,560 Speaker 1: loan debt you took on in order to get that 429 00:19:12,640 --> 00:19:15,720 Speaker 1: advanced degree. But on the other end of the spectrum, right, 430 00:19:15,800 --> 00:19:18,800 Speaker 1: let's say you bought a new Tesla and that is 431 00:19:18,840 --> 00:19:20,680 Speaker 1: essentially going to be a drag on your net worth 432 00:19:20,720 --> 00:19:22,879 Speaker 1: because you'll never see a return on that investment. A 433 00:19:23,000 --> 00:19:26,280 Speaker 1: car depreciates over time consistently, and is it going to 434 00:19:26,359 --> 00:19:28,840 Speaker 1: pay back in any meaningful way. So when we're talking 435 00:19:28,840 --> 00:19:31,520 Speaker 1: about maybe debts that we take on that will affect 436 00:19:31,560 --> 00:19:34,119 Speaker 1: our net worth, let's think about whether that debt has 437 00:19:34,160 --> 00:19:38,000 Speaker 1: the ability to positively affect our net worth in the future. 438 00:19:38,040 --> 00:19:40,240 Speaker 1: And if it does, then there's a conversation that we 439 00:19:40,280 --> 00:19:42,040 Speaker 1: need to have and it's something we need to think through. 440 00:19:42,200 --> 00:19:44,439 Speaker 1: And if it doesn't, I think it should make us 441 00:19:44,480 --> 00:19:47,320 Speaker 1: pause even more before we consider taking on that debt. 442 00:19:47,440 --> 00:19:49,400 Speaker 1: And I'm not saying that nobody should buy a new car, 443 00:19:49,640 --> 00:19:51,240 Speaker 1: but you might want to make sure your net worth 444 00:19:51,359 --> 00:19:53,719 Speaker 1: is in a good position before you do. Yeah, that's right, man. 445 00:19:53,720 --> 00:19:56,159 Speaker 1: It's important for us to consider the quality or the 446 00:19:56,160 --> 00:19:58,920 Speaker 1: different types of debt that we're settling ourselves with when 447 00:19:58,920 --> 00:20:01,159 Speaker 1: we are calculating our at worth. And one of the 448 00:20:01,160 --> 00:20:03,240 Speaker 1: coolest things too about net worth, man, is you know, 449 00:20:03,280 --> 00:20:06,000 Speaker 1: you don't necessarily have to to make a massive income 450 00:20:06,200 --> 00:20:08,680 Speaker 1: in order to really build up your net worth over time. 451 00:20:08,880 --> 00:20:11,439 Speaker 1: Growing that number requires spending less than you bring in 452 00:20:11,520 --> 00:20:14,280 Speaker 1: and saving and investing that difference. Like, that's it. The 453 00:20:14,359 --> 00:20:16,240 Speaker 1: larger we can grow that gap, the faster that we 454 00:20:16,359 --> 00:20:18,840 Speaker 1: can accelerate our net worth goals. But you don't have 455 00:20:18,920 --> 00:20:21,480 Speaker 1: to make six figures in order to have a meaningful 456 00:20:21,760 --> 00:20:23,800 Speaker 1: net worth every year. You know, I read a story 457 00:20:23,800 --> 00:20:26,240 Speaker 1: about someone who worked a normal job as a secretary 458 00:20:26,320 --> 00:20:29,119 Speaker 1: or a jenitor for like five or six decades and 459 00:20:29,160 --> 00:20:32,200 Speaker 1: then dies with you know, five seven, eight million dollars 460 00:20:32,200 --> 00:20:33,919 Speaker 1: in investments. You know, we'll link to a couple of 461 00:20:33,920 --> 00:20:36,040 Speaker 1: those stories in our show notes, but like those are 462 00:20:36,080 --> 00:20:38,480 Speaker 1: just so stink and inspiring, and it really illustrates the 463 00:20:38,480 --> 00:20:41,240 Speaker 1: fact that you don't have to be a software engineer 464 00:20:41,280 --> 00:20:43,120 Speaker 1: or a lawyer like you mentioned earlier, Joel, in order 465 00:20:43,200 --> 00:20:45,920 Speaker 1: to to have and to grow a massive net worth. Yeah, 466 00:20:45,960 --> 00:20:47,640 Speaker 1: I agree, man, I love reading stuff like that, and 467 00:20:47,640 --> 00:20:50,000 Speaker 1: and the goal is not necessarily to die at the 468 00:20:50,080 --> 00:20:53,960 Speaker 1: right old age of with eight million dollars in investments. Right, 469 00:20:54,359 --> 00:20:56,359 Speaker 1: It's not that your net worth should be hoarded and 470 00:20:56,359 --> 00:20:58,720 Speaker 1: shouldn't be used in retirement. But at the same time, 471 00:20:58,720 --> 00:21:01,520 Speaker 1: when you read those stories in your Man, secretaries and janitors, 472 00:21:01,520 --> 00:21:04,239 Speaker 1: people that had a really low income, we're able to 473 00:21:04,280 --> 00:21:08,040 Speaker 1: build up a meaningful net worth through their investing lifetime. 474 00:21:08,040 --> 00:21:09,560 Speaker 1: And it's like, man, if they can do it, so 475 00:21:09,680 --> 00:21:11,560 Speaker 1: can we all of us out there? All right, Matt, 476 00:21:11,560 --> 00:21:13,760 Speaker 1: we got more to get to, including the difference between 477 00:21:13,960 --> 00:21:16,080 Speaker 1: liquid net worth and overall net worth and what if 478 00:21:16,080 --> 00:21:18,320 Speaker 1: you've got a negative net worth. We'll tackle some of 479 00:21:18,320 --> 00:21:30,440 Speaker 1: those questions right after this break. All right, Joel, we're 480 00:21:30,480 --> 00:21:32,840 Speaker 1: back from the break, and we're talking about net worth man, 481 00:21:32,920 --> 00:21:35,720 Speaker 1: and we're gonna talk about how to grow your net worth. 482 00:21:36,000 --> 00:21:37,520 Speaker 1: But before we talk about that, we're gonna touch on 483 00:21:37,560 --> 00:21:39,560 Speaker 1: liquid net worth. I'll be honest, every time I hear 484 00:21:39,680 --> 00:21:41,399 Speaker 1: liquid net worth, it kind of makes me think of 485 00:21:41,400 --> 00:21:44,119 Speaker 1: like liquid gold, which makes me think of like an alexer. Oh, 486 00:21:44,160 --> 00:21:46,280 Speaker 1: it makes me think of LVDA cheese. Oh my gosh, 487 00:21:46,880 --> 00:21:49,320 Speaker 1: so gross. IM gonna say it makes me think of 488 00:21:50,320 --> 00:21:52,399 Speaker 1: have you ever seen Sweeney Todd. No, I haven't the 489 00:21:52,480 --> 00:21:55,959 Speaker 1: kids sings like this song is like Bye parell Lea's 490 00:21:56,160 --> 00:21:59,879 Speaker 1: miracle e licks. Sir, But is this cure all that 491 00:22:00,040 --> 00:22:02,600 Speaker 1: you hear? Like hawks in like these olden times, I 492 00:22:02,640 --> 00:22:04,879 Speaker 1: can't hear liquid net worth and not think of liquid 493 00:22:04,880 --> 00:22:07,840 Speaker 1: gold elixirs. Get ready for Matt spinoff podcast where all 494 00:22:07,840 --> 00:22:09,320 Speaker 1: he does is sing, I'm just gonna say the only 495 00:22:09,320 --> 00:22:12,720 Speaker 1: two lines from every musical. I know it'll be a 496 00:22:12,760 --> 00:22:15,200 Speaker 1: compact format podcast. I think I think people are gonna 497 00:22:15,200 --> 00:22:16,800 Speaker 1: be into it. Yeah, all right, So let's talk about 498 00:22:16,800 --> 00:22:18,679 Speaker 1: liquid net worth. And when you look at the the 499 00:22:18,720 --> 00:22:21,640 Speaker 1: median American net worth Matt you mentioned, if it's under 500 00:22:21,680 --> 00:22:25,639 Speaker 1: thirty five, it's eleven thousand dollars. The overall age adjusted 501 00:22:25,720 --> 00:22:29,359 Speaker 1: American average net worth is a hundred thousand dollars. But 502 00:22:29,480 --> 00:22:33,160 Speaker 1: most of that net worth is tied up in home equity, 503 00:22:33,200 --> 00:22:36,720 Speaker 1: so it's not typically easily accessed, especially if someone has 504 00:22:36,760 --> 00:22:39,240 Speaker 1: been in a home, let's say for fifteen twenty years, 505 00:22:39,400 --> 00:22:42,360 Speaker 1: and they've built up a meaningful amount of home equity 506 00:22:42,520 --> 00:22:44,560 Speaker 1: as they paid down the mortgage as their home has 507 00:22:44,640 --> 00:22:48,159 Speaker 1: risen in value. That's great, but you don't necessarily have 508 00:22:48,280 --> 00:22:51,480 Speaker 1: easy access to those funds, and so liquid net worth 509 00:22:51,560 --> 00:22:53,840 Speaker 1: can be a better measure of your ability to react 510 00:22:53,840 --> 00:22:57,840 Speaker 1: to financial shocks and financial opportunities than just knowing your 511 00:22:58,000 --> 00:23:00,600 Speaker 1: overall net worth. You don't really have it at hand 512 00:23:00,960 --> 00:23:04,280 Speaker 1: for when needs actually arise. So I think that leads 513 00:23:04,280 --> 00:23:08,399 Speaker 1: to to kind of a subpoint that diversified net worth 514 00:23:08,880 --> 00:23:11,399 Speaker 1: is a really important thing for people to shoot for. Two, 515 00:23:11,680 --> 00:23:14,320 Speaker 1: If they're putting all their eggs in one basket and 516 00:23:14,440 --> 00:23:17,560 Speaker 1: it's all about their homes appreciation and they're not saving, 517 00:23:17,640 --> 00:23:20,160 Speaker 1: and they're not investing, and they're not trying to grow 518 00:23:20,280 --> 00:23:22,800 Speaker 1: their net worth in other ways, well we would suggest 519 00:23:22,840 --> 00:23:24,960 Speaker 1: taking kind of a more of a multi pronged approach 520 00:23:25,000 --> 00:23:26,879 Speaker 1: to growing your net worth and not just banking on 521 00:23:26,920 --> 00:23:29,879 Speaker 1: your home's value increasing. Yeah, which isn't a bad thing, right, 522 00:23:29,920 --> 00:23:31,119 Speaker 1: it's not a bad thing that we've seen in the 523 00:23:31,160 --> 00:23:33,280 Speaker 1: value of our homes increase. But a lot of times 524 00:23:33,280 --> 00:23:36,360 Speaker 1: it's difficult to access that money, you know. I mean, 525 00:23:36,359 --> 00:23:39,040 Speaker 1: how difficult is it right now to get a helock? Uh, 526 00:23:39,040 --> 00:23:41,320 Speaker 1: It's impossible, you know. And even then then you have 527 00:23:41,359 --> 00:23:43,240 Speaker 1: to pay to access your net worth, get to pay 528 00:23:43,240 --> 00:23:44,879 Speaker 1: interest to the bank in order to get some of 529 00:23:44,880 --> 00:23:46,560 Speaker 1: that money back in your life. So it's net worth 530 00:23:46,560 --> 00:23:48,520 Speaker 1: on paper, which is great, but it's not net worth 531 00:23:48,520 --> 00:23:51,080 Speaker 1: in your pocket exactly. Yeah, and so a lot of 532 00:23:51,119 --> 00:23:53,120 Speaker 1: folks too might be asking the question, like, what if 533 00:23:53,160 --> 00:23:56,360 Speaker 1: my net worth is negative? Right? And so, for example, 534 00:23:56,600 --> 00:23:59,200 Speaker 1: let let's say someone is young, like maybe under twenty 535 00:23:59,200 --> 00:24:01,440 Speaker 1: five years old. If they are like, there's a good 536 00:24:01,480 --> 00:24:04,760 Speaker 1: chance that that person has a negative net worth. But 537 00:24:04,800 --> 00:24:06,199 Speaker 1: if you are that young and you know, maybe you 538 00:24:06,200 --> 00:24:08,040 Speaker 1: have a decently positive net worth, and kudos to you 539 00:24:08,080 --> 00:24:10,360 Speaker 1: for for being so on the ball. But for everyone else, 540 00:24:10,440 --> 00:24:12,920 Speaker 1: you know, the main reason your net worth will typically 541 00:24:12,920 --> 00:24:15,199 Speaker 1: be negative at this point is because the student loans 542 00:24:15,359 --> 00:24:18,240 Speaker 1: and or maybe the lack of years of investing under 543 00:24:18,240 --> 00:24:21,080 Speaker 1: your belt. That's one example. Another example might be, uh, 544 00:24:21,080 --> 00:24:24,480 Speaker 1: maybe you are older, right, and maybe you haven't prioritized investing, 545 00:24:24,880 --> 00:24:26,399 Speaker 1: and on top of that, maybe you've been too willing 546 00:24:26,400 --> 00:24:28,840 Speaker 1: to take on debt. In that case, maybe doing that 547 00:24:28,880 --> 00:24:32,199 Speaker 1: calculation and seeing that ugly net worth number can be 548 00:24:32,440 --> 00:24:35,920 Speaker 1: just the motivation you need to to finally make some changes. Yeah, 549 00:24:35,920 --> 00:24:37,879 Speaker 1: we don't want to be like the ostrich, put our 550 00:24:37,880 --> 00:24:40,240 Speaker 1: head in the sand not know the number, because I 551 00:24:40,240 --> 00:24:42,359 Speaker 1: think when we do that, sometimes we maybe think we're 552 00:24:42,400 --> 00:24:44,720 Speaker 1: doing better than we are, or maybe vice versa, sometimes 553 00:24:44,760 --> 00:24:46,399 Speaker 1: we think we're doing worse than we actually are, and 554 00:24:46,440 --> 00:24:48,679 Speaker 1: so having the facts in front of us can help 555 00:24:48,760 --> 00:24:52,040 Speaker 1: us make a more informed, better decision. And Matt, I agree. 556 00:24:52,040 --> 00:24:53,720 Speaker 1: I love what you said about negative net worth. A 557 00:24:53,760 --> 00:24:55,880 Speaker 1: lot of younger people strapped with student loans are going 558 00:24:55,920 --> 00:24:57,760 Speaker 1: to do the calculation and they're going to realize that 559 00:24:57,760 --> 00:24:59,879 Speaker 1: their net worth is negative, and then just getting to 560 00:25:00,200 --> 00:25:03,040 Speaker 1: zero net worth is going to be a huge triumph. 561 00:25:03,080 --> 00:25:05,280 Speaker 1: And it's actually even just more of a reason to 562 00:25:05,320 --> 00:25:07,520 Speaker 1: get on the ball with with tracking it and attempting 563 00:25:07,560 --> 00:25:09,960 Speaker 1: to grow that net worth and then setting new milestones 564 00:25:10,040 --> 00:25:11,680 Speaker 1: for you to be able to achieve. And I think 565 00:25:11,800 --> 00:25:15,320 Speaker 1: net worth milestones, while like we said, can fluctuate, it 566 00:25:15,400 --> 00:25:17,000 Speaker 1: can be helpful to kind of have those in the 567 00:25:17,040 --> 00:25:19,000 Speaker 1: back of your mind as you think about what it 568 00:25:19,040 --> 00:25:22,640 Speaker 1: looks like to make progress with your own personal finances. Yeah. Absolutely, man, 569 00:25:22,800 --> 00:25:25,840 Speaker 1: you definitely don't want to discount climbing out of debt, 570 00:25:25,960 --> 00:25:27,720 Speaker 1: like I mean, basically that's what you're saying. You're saying 571 00:25:27,720 --> 00:25:29,120 Speaker 1: that like a lot of a lot of young folks 572 00:25:29,119 --> 00:25:31,560 Speaker 1: are gonna spend a lot of time getting from negative 573 00:25:31,600 --> 00:25:33,600 Speaker 1: just to get up to zero. Uh. And you don't 574 00:25:33,600 --> 00:25:36,080 Speaker 1: want to discount those gains made, you know, like getting 575 00:25:36,080 --> 00:25:39,640 Speaker 1: on a debt's an awesome goal in and of itself. So, next, dude, 576 00:25:39,720 --> 00:25:42,879 Speaker 1: let's talk about ways for individuals to grow their net worth. 577 00:25:43,040 --> 00:25:44,679 Speaker 1: First of all, it's gonna be slow and steady. You know, 578 00:25:44,720 --> 00:25:47,800 Speaker 1: it's it's a marathon, not a sprint, growing growing your 579 00:25:47,840 --> 00:25:50,800 Speaker 1: net worth. It's not like a get rich scheme. But 580 00:25:50,840 --> 00:25:53,760 Speaker 1: it's a process of building wealth slowly. Uh. And so 581 00:25:53,840 --> 00:25:56,439 Speaker 1: there are just honestly millions of different ways to increase 582 00:25:56,480 --> 00:25:58,840 Speaker 1: your net worth, from something as small as, you know, 583 00:25:58,840 --> 00:26:00,960 Speaker 1: maybe spending a little less on take out, to to 584 00:26:01,119 --> 00:26:03,320 Speaker 1: something larger, you know, something as big as maybe a 585 00:26:03,320 --> 00:26:05,680 Speaker 1: new job with a massive bonus. But then taking those 586 00:26:05,680 --> 00:26:08,480 Speaker 1: different financial wins and then you know, telling that money 587 00:26:08,680 --> 00:26:11,840 Speaker 1: what to do is crucial to growing your net worth. 588 00:26:11,920 --> 00:26:14,280 Speaker 1: And what we're talking about here essentially is budgeting. You 589 00:26:14,320 --> 00:26:15,800 Speaker 1: need to be able to take the money that you 590 00:26:15,880 --> 00:26:18,720 Speaker 1: have and put it to work for you. We've done 591 00:26:18,760 --> 00:26:23,080 Speaker 1: episodes before on budgeting. Episodes fifty one, episodes one seventy six. 592 00:26:23,320 --> 00:26:26,080 Speaker 1: Both of those were kind of different takes on budgeting, 593 00:26:26,440 --> 00:26:29,000 Speaker 1: but for the vast majority of us, budgeting is such 594 00:26:29,080 --> 00:26:31,840 Speaker 1: an important practice for us to implement into our lives 595 00:26:31,840 --> 00:26:34,320 Speaker 1: in order to to grow that net worth number. Yeah, 596 00:26:34,359 --> 00:26:36,480 Speaker 1: if you're not budgeting, there's a there's a good likelihood 597 00:26:36,800 --> 00:26:40,080 Speaker 1: you're not pursuing a higher net worth as as well 598 00:26:40,119 --> 00:26:42,680 Speaker 1: as you could be. And in the end, Matt, we 599 00:26:42,800 --> 00:26:45,439 Speaker 1: come back to this. It's two fundamentals to determine that 600 00:26:45,480 --> 00:26:48,200 Speaker 1: networth number, decreasing debts that you owe and increasing the 601 00:26:48,240 --> 00:26:51,640 Speaker 1: assets that you own. For most folks, this means investing 602 00:26:51,640 --> 00:26:54,960 Speaker 1: more in the stock market, specifically in retirement accounts that 603 00:26:55,000 --> 00:26:57,320 Speaker 1: you have access to. If your employer offers a four 604 00:26:57,359 --> 00:26:59,679 Speaker 1: oh one K with a match starting there, or you 605 00:26:59,680 --> 00:27:02,480 Speaker 1: work or the government and you have a TSP offered 606 00:27:02,480 --> 00:27:04,600 Speaker 1: to you, that's in all likelihood where you're gonna want 607 00:27:04,600 --> 00:27:06,800 Speaker 1: to start investing. And if you don't have access to those, 608 00:27:06,920 --> 00:27:09,480 Speaker 1: opening up your own i RA, a in low cost 609 00:27:09,560 --> 00:27:12,800 Speaker 1: widely diversified index fund that is going to move that 610 00:27:12,920 --> 00:27:15,840 Speaker 1: level of assets that you own, which over time is 611 00:27:15,840 --> 00:27:18,680 Speaker 1: gonna have a massive effect on at least at one 612 00:27:18,680 --> 00:27:21,199 Speaker 1: half of your net worth. Yeah, and practically speaking, you 613 00:27:21,200 --> 00:27:24,639 Speaker 1: can open your own retirement account on platforms that we 614 00:27:24,720 --> 00:27:28,400 Speaker 1: mentioned all the time, like Vanguard, Fidelity, even M one 615 00:27:28,520 --> 00:27:31,640 Speaker 1: and ally have great options as well. And so, Joe, 616 00:27:31,680 --> 00:27:34,679 Speaker 1: you talked about increasing your assets owned, when it comes to, 617 00:27:34,920 --> 00:27:38,080 Speaker 1: you know, decreasing your debts owed, we're talking about paying 618 00:27:38,119 --> 00:27:40,679 Speaker 1: down debt, high interest rate credit card debt like that 619 00:27:40,720 --> 00:27:43,119 Speaker 1: needs to be gone as soon as possible. That's a 620 00:27:43,160 --> 00:27:45,680 Speaker 1: no brainer. But then any debt that you have that's 621 00:27:45,760 --> 00:27:47,800 Speaker 1: maybe less than six percent, that's gonna be a more 622 00:27:47,880 --> 00:27:50,400 Speaker 1: nuanced conversation, right, And so, for example, you don't want 623 00:27:50,400 --> 00:27:53,280 Speaker 1: to give up a company four one K match and 624 00:27:53,280 --> 00:27:55,639 Speaker 1: then the compounding returns that you would receive from the 625 00:27:55,640 --> 00:27:58,280 Speaker 1: market in order to pay off maybe a sub three 626 00:27:58,280 --> 00:28:00,480 Speaker 1: percent mortgage. And so in this is that kind of 627 00:28:00,480 --> 00:28:04,480 Speaker 1: depends on your individual circumstances and what your interest rates are. Yeah, 628 00:28:04,480 --> 00:28:06,600 Speaker 1: most of us, when we're building our net worth, we're 629 00:28:06,600 --> 00:28:08,639 Speaker 1: not focused solely on one or the other. We're almost 630 00:28:08,640 --> 00:28:10,679 Speaker 1: doing both at the same time. Like every month, I'm 631 00:28:10,720 --> 00:28:14,159 Speaker 1: paying off on my mortgage and the mortgages for my 632 00:28:14,240 --> 00:28:17,120 Speaker 1: rental properties, but I'm also putting money into my four 633 00:28:17,119 --> 00:28:19,560 Speaker 1: oh one k in my IRA, and so at the 634 00:28:19,600 --> 00:28:22,640 Speaker 1: same time, I'm decreasing my debts and I'm increasing my assets, 635 00:28:22,800 --> 00:28:25,359 Speaker 1: and so my net worth is starting to see a swing. 636 00:28:25,480 --> 00:28:29,399 Speaker 1: And after you're doing that same process over a number 637 00:28:29,440 --> 00:28:31,800 Speaker 1: of years, you start to see a real shift and 638 00:28:31,840 --> 00:28:34,000 Speaker 1: what your net worth looks like. The great thing about 639 00:28:34,000 --> 00:28:36,200 Speaker 1: building your net worth is that at a certain point 640 00:28:36,240 --> 00:28:38,680 Speaker 1: in time, it starts to swing so hard and keep 641 00:28:38,720 --> 00:28:40,880 Speaker 1: going up so quickly that it feels like the money 642 00:28:40,920 --> 00:28:42,920 Speaker 1: that you've already put into those assets is doing a 643 00:28:42,920 --> 00:28:47,000 Speaker 1: lot of the heavy lifting for you. Exactly. Essentially, that's nirvana, 644 00:28:47,120 --> 00:28:49,680 Speaker 1: right Like when you are able to have your money 645 00:28:49,720 --> 00:28:52,440 Speaker 1: working for you harder than you are working for your money. 646 00:28:52,520 --> 00:28:55,680 Speaker 1: That's basically when you become financially independent. Yeah, exactly, and 647 00:28:55,680 --> 00:28:57,360 Speaker 1: that's when you're like, man, I'm so glad I paid 648 00:28:57,400 --> 00:29:00,040 Speaker 1: attention to my net worth all those years, exactly. It's know. 649 00:29:00,080 --> 00:29:03,160 Speaker 1: Hopefully this conversation has helped people think about their net worth, 650 00:29:03,200 --> 00:29:06,240 Speaker 1: the importance of tracking it, and also the ability to 651 00:29:06,320 --> 00:29:09,520 Speaker 1: know how important it is in your financial life. It's 652 00:29:09,720 --> 00:29:11,640 Speaker 1: of a lot of importance, but it's also not of 653 00:29:11,760 --> 00:29:14,880 Speaker 1: ultimate importance. Basically, when it comes down to it, you 654 00:29:14,920 --> 00:29:17,200 Speaker 1: don't equal your net worth, and in particular, if you're 655 00:29:17,240 --> 00:29:19,520 Speaker 1: a younger listener who recently got out of college and 656 00:29:19,520 --> 00:29:22,280 Speaker 1: you're trying to get your money game together, and your 657 00:29:22,280 --> 00:29:25,640 Speaker 1: net worths in the negative. That doesn't reflect poorly on you. 658 00:29:25,840 --> 00:29:27,640 Speaker 1: And even if you're older and you've got a negative 659 00:29:27,640 --> 00:29:29,840 Speaker 1: net worth, that doesn't mean you're less of a person. 660 00:29:30,240 --> 00:29:32,200 Speaker 1: It's a number that can be really helpful for seeing 661 00:29:32,200 --> 00:29:34,680 Speaker 1: your personal finances in a quick snapshot, and it does 662 00:29:34,840 --> 00:29:38,120 Speaker 1: a decent job of helping to reflect your personal financial 663 00:29:38,120 --> 00:29:40,440 Speaker 1: progress over the years. But if your net worth isn't 664 00:29:40,480 --> 00:29:42,520 Speaker 1: where you want it to be right now, don't let 665 00:29:42,560 --> 00:29:44,600 Speaker 1: that get you down. There are all sorts of ways 666 00:29:44,600 --> 00:29:47,160 Speaker 1: to attack that goal in the future while giving yourselves 667 00:29:47,160 --> 00:29:50,480 Speaker 1: some grace right now recognizing that you aren't exactly where 668 00:29:50,520 --> 00:29:52,560 Speaker 1: you want to be, but you can get there in 669 00:29:52,560 --> 00:29:54,840 Speaker 1: the future. Yeah, I think we should all be tracking 670 00:29:54,880 --> 00:29:56,280 Speaker 1: and keeping it with our net worth, But you know, 671 00:29:56,320 --> 00:29:58,160 Speaker 1: at the same time, this is one of those instances 672 00:29:58,160 --> 00:30:01,120 Speaker 1: where it's important to maintain something Allan's right at the 673 00:30:01,120 --> 00:30:04,400 Speaker 1: same time, like, we should avoid obsessing over that number 674 00:30:04,520 --> 00:30:07,560 Speaker 1: because there's more to life than just a dollar amounts. 675 00:30:08,040 --> 00:30:10,800 Speaker 1: So if you have a mental or personal capital account, 676 00:30:11,160 --> 00:30:13,240 Speaker 1: maybe check that net worth monthly, you know, just to 677 00:30:13,320 --> 00:30:15,400 Speaker 1: check in or maybe even just once a quarter if 678 00:30:15,440 --> 00:30:18,160 Speaker 1: you know you are prone to maybe looking at that 679 00:30:18,240 --> 00:30:20,320 Speaker 1: number a little too much as you're precious. You know, 680 00:30:20,760 --> 00:30:23,280 Speaker 1: it's an important number to know, but make sure you 681 00:30:23,280 --> 00:30:26,320 Speaker 1: know you do keep it in perspective. At the same time, hopefully, 682 00:30:26,680 --> 00:30:30,320 Speaker 1: through consistent habits of saving and investing, we're all steadily 683 00:30:30,360 --> 00:30:34,320 Speaker 1: increasing that net worth towards the status of becoming financially 684 00:30:34,320 --> 00:30:37,440 Speaker 1: independent one day. Yeah, that's the goal man, financial independence. 685 00:30:37,440 --> 00:30:39,440 Speaker 1: I think nirvana. That's that's when you and I are 686 00:30:39,480 --> 00:30:41,400 Speaker 1: aiming four. That's what we want our listeners to be 687 00:30:41,480 --> 00:30:44,680 Speaker 1: aiming for. We we do think that if you handle 688 00:30:44,720 --> 00:30:46,880 Speaker 1: money well over a long period of time, you can 689 00:30:46,920 --> 00:30:50,800 Speaker 1: achieve financial independence. And like we said earlier, Janitor secretaries, 690 00:30:51,040 --> 00:30:53,000 Speaker 1: they've been able to do it over the years on 691 00:30:53,040 --> 00:30:56,040 Speaker 1: small amounts of pay. It doesn't take earning six figures 692 00:30:56,040 --> 00:30:57,760 Speaker 1: in order to get there. All right, Matt, Let's get 693 00:30:57,760 --> 00:30:59,800 Speaker 1: back to the beer that we had on the show today. 694 00:31:00,160 --> 00:31:03,000 Speaker 1: This one's called Ye Who Enter Here by Orpheus Brewing. 695 00:31:03,360 --> 00:31:06,360 Speaker 1: It's an Imperial stout aged in whiskey barrels with chili peppers, 696 00:31:06,360 --> 00:31:08,880 Speaker 1: coffee and vanilla beans. Which means this thing is packed 697 00:31:08,880 --> 00:31:10,840 Speaker 1: with like massive amounts of flavors. So what are your 698 00:31:10,840 --> 00:31:12,920 Speaker 1: thoughts on this beer? Dude? Dude, this is such a 699 00:31:13,000 --> 00:31:16,000 Speaker 1: good beer. Uh, Like you mentioned all the different ingredients there, 700 00:31:16,240 --> 00:31:19,480 Speaker 1: and so I will first state that this beer isn't 701 00:31:19,520 --> 00:31:22,160 Speaker 1: too heavy in body. I think sometimes when you read 702 00:31:22,200 --> 00:31:24,240 Speaker 1: a label like that and you see all the different 703 00:31:24,240 --> 00:31:25,920 Speaker 1: flavors that are packed in there, you expect it to 704 00:31:26,360 --> 00:31:28,600 Speaker 1: maybe almost be like soupy. But I feel like this 705 00:31:28,640 --> 00:31:31,280 Speaker 1: one has found a perfect balance and being you know, 706 00:31:31,360 --> 00:31:34,000 Speaker 1: heavy enough to where it can contain all those flavors, 707 00:31:34,160 --> 00:31:35,840 Speaker 1: but then not too heavy to where you don't want 708 00:31:35,840 --> 00:31:37,880 Speaker 1: to finish this beer. First though, I want to point 709 00:31:37,880 --> 00:31:39,960 Speaker 1: out the fact that the chili peppers, man, it has 710 00:31:39,960 --> 00:31:41,720 Speaker 1: a perfect amount of heat you know in the throat 711 00:31:41,760 --> 00:31:43,800 Speaker 1: for sure, And most people are probably listening are like 712 00:31:44,000 --> 00:31:45,880 Speaker 1: heat in a beer. What are you talking about, dude? 713 00:31:45,880 --> 00:31:49,000 Speaker 1: That chili pepper spice is so good? Chili peppers in 714 00:31:49,000 --> 00:31:51,040 Speaker 1: a stout, Man, it's like a match made in heaven 715 00:31:51,080 --> 00:31:53,160 Speaker 1: in my opinion, and they basically perfected it in this beer. 716 00:31:53,160 --> 00:31:54,560 Speaker 1: It's so good. Yeah, And I feel like to be 717 00:31:54,680 --> 00:31:55,800 Speaker 1: with his beer when you take it and you swirl 718 00:31:55,880 --> 00:31:57,680 Speaker 1: it a little bit. The head of the beer, like 719 00:31:57,720 --> 00:31:59,840 Speaker 1: the tiny little bubbles. It almost has kind of like 720 00:31:59,840 --> 00:32:02,080 Speaker 1: a like a red chili pepper kind of color to it. 721 00:32:02,160 --> 00:32:04,080 Speaker 1: Totally kind of accentuates the fact that there's a little 722 00:32:04,080 --> 00:32:06,160 Speaker 1: bit of heat in this beer. But obviously you can 723 00:32:06,200 --> 00:32:09,400 Speaker 1: taste those coffee notes, like those deep, earthy, uh stout 724 00:32:09,440 --> 00:32:11,440 Speaker 1: like notes. But then it's got that vanilla as well 725 00:32:11,440 --> 00:32:13,160 Speaker 1: to kind of brighten it up and kind of shine 726 00:32:13,200 --> 00:32:14,800 Speaker 1: some light on this beer and give a little little 727 00:32:14,800 --> 00:32:17,320 Speaker 1: bit of sweetness. Yeah, exactly. I mean, I think the 728 00:32:17,320 --> 00:32:20,520 Speaker 1: sweetest suit comes from the fact that's Asian whiskey barrels. 729 00:32:20,520 --> 00:32:22,760 Speaker 1: That always adds a nice sweet note to it that 730 00:32:22,760 --> 00:32:24,680 Speaker 1: I'm always looking for. But yeah, man, what were your 731 00:32:24,880 --> 00:32:27,560 Speaker 1: additional thoughts on this beer? I mean, dude, I love 732 00:32:27,760 --> 00:32:31,680 Speaker 1: stouts with chili peppers that are aged in barrels for 733 00:32:31,720 --> 00:32:34,440 Speaker 1: two years. I mean yeah, this was basically a perfect 734 00:32:34,440 --> 00:32:37,240 Speaker 1: representation of the style and it's one of my favorite styles, 735 00:32:37,320 --> 00:32:40,800 Speaker 1: so I thoroughly enjoyed it. Not to mention on the label, 736 00:32:40,960 --> 00:32:44,200 Speaker 1: one of one of my favorite Atlanta artists got to 737 00:32:44,480 --> 00:32:46,960 Speaker 1: draw the label for this one. His name's our Land 738 00:32:47,240 --> 00:32:49,880 Speaker 1: and his art is incredible and so I mean it's 739 00:32:49,880 --> 00:32:52,800 Speaker 1: like a trifecta of like a local beer, an incredible beer, 740 00:32:53,000 --> 00:32:54,560 Speaker 1: and then awesome art on the label. So yeah, you 741 00:32:54,600 --> 00:32:56,680 Speaker 1: and I we actually both have some are Land artwork 742 00:32:56,760 --> 00:32:59,200 Speaker 1: up on her home. But he's a in particular in 743 00:32:59,240 --> 00:33:01,040 Speaker 1: this part of town, the parts that we live in. 744 00:33:01,200 --> 00:33:03,800 Speaker 1: There is a lot of his artwork around town. You know, 745 00:33:03,840 --> 00:33:05,760 Speaker 1: he's kind of like a street artist, but it's like 746 00:33:05,760 --> 00:33:07,960 Speaker 1: this mix between it's he's kind of like a folk 747 00:33:08,120 --> 00:33:10,680 Speaker 1: street artist. Maybe it's herben Folk or something maybe like 748 00:33:10,720 --> 00:33:13,440 Speaker 1: what I've probably classified as urban forbin folk, Yeah, exactly, 749 00:33:13,680 --> 00:33:17,080 Speaker 1: And so we see a lot of his stuff around town. Uh, 750 00:33:17,120 --> 00:33:18,920 Speaker 1: and it's also great to see his artwork on the 751 00:33:19,000 --> 00:33:20,720 Speaker 1: label as well. So man, I'm glad you and I 752 00:33:20,760 --> 00:33:22,400 Speaker 1: got to share this one. For folks who happen to 753 00:33:22,440 --> 00:33:24,280 Speaker 1: be in the Atlanta area, definitely look or fee us 754 00:33:24,320 --> 00:33:26,560 Speaker 1: up if you haven't already. Yeah, they're basically located in 755 00:33:26,640 --> 00:33:29,560 Speaker 1: Piedmont Park, right off the belt line. It's a great place, 756 00:33:29,800 --> 00:33:32,440 Speaker 1: very central in Atlanta. Yeah for sure. All right, Matt, 757 00:33:32,440 --> 00:33:34,840 Speaker 1: that's gonna do it for this episode. For anybody who 758 00:33:34,880 --> 00:33:37,560 Speaker 1: wants show notes for this episode, including a link to 759 00:33:37,920 --> 00:33:40,040 Speaker 1: some of the places where you can accurately track your 760 00:33:40,040 --> 00:33:42,520 Speaker 1: net worth. Check out our show notes on our website 761 00:33:42,520 --> 00:33:44,600 Speaker 1: at how to money dot com, and we would be 762 00:33:44,640 --> 00:33:47,040 Speaker 1: incredibly thankful, if you haven't already, if you left us 763 00:33:47,080 --> 00:33:50,520 Speaker 1: a review over at Apple Podcasts or honestly, wherever it 764 00:33:50,600 --> 00:33:52,640 Speaker 1: is that you listen to podcast those reviews, honestly, they 765 00:33:52,640 --> 00:33:55,160 Speaker 1: help us keep going and growing at the same time. Man, 766 00:33:55,440 --> 00:33:57,080 Speaker 1: all right, that's gonna be it for this episode, Joel. 767 00:33:57,160 --> 00:34:00,320 Speaker 1: Until next time, Best Friends Out, Best Friends Out.