1 00:00:00,040 --> 00:00:02,760 Speaker 1: Welcome to How the Money. I'm Joel and I and Matt. 2 00:00:02,960 --> 00:00:06,120 Speaker 1: Today we're discussing the great lockdown effects on spending and 3 00:00:06,160 --> 00:00:27,080 Speaker 1: the housing market. That's right, buddy. We're going to dive 4 00:00:27,080 --> 00:00:30,640 Speaker 1: into some changes to our spending, the spending that the 5 00:00:30,680 --> 00:00:33,960 Speaker 1: country is doing as a whole. Right, it's it's changed dramatically. 6 00:00:34,000 --> 00:00:36,280 Speaker 1: We're gonna talk about that. We're gonna take a couple 7 00:00:36,280 --> 00:00:38,919 Speaker 1: of listener questions later on as well, including one that's 8 00:00:38,960 --> 00:00:42,000 Speaker 1: gonna address the housing market. You know, like spring is 9 00:00:42,000 --> 00:00:44,839 Speaker 1: typically a pretty hot time for housing, but that is 10 00:00:44,880 --> 00:00:46,960 Speaker 1: not the case this year. And uh, I think we 11 00:00:47,000 --> 00:00:50,479 Speaker 1: all know why. So yeah, the virus which need not 12 00:00:50,520 --> 00:00:52,680 Speaker 1: be named. That's right. Well, you've been listening to Harry Potter. 13 00:00:54,440 --> 00:00:56,720 Speaker 1: Which book are you on? By the way, I'm waiting 14 00:00:56,840 --> 00:00:59,480 Speaker 1: for my local library to give me the audio book 15 00:00:59,640 --> 00:01:02,360 Speaker 1: of book seven. I'll be done. Oh my gosh, So 16 00:01:02,440 --> 00:01:04,759 Speaker 1: you just finished six six so good? It's so good, 17 00:01:05,040 --> 00:01:08,920 Speaker 1: pretty brutal at the end. Yeah, man, Yeah, I'm loving, 18 00:01:09,040 --> 00:01:11,759 Speaker 1: loving that series. And the guy who does the voice 19 00:01:11,840 --> 00:01:14,840 Speaker 1: narration for the Harry Potter books is incredible. He really is. 20 00:01:15,040 --> 00:01:18,720 Speaker 1: Jim Dale. Yeah, Kayt and eyes relationship when we first 21 00:01:18,760 --> 00:01:21,880 Speaker 1: started dating was we were long distance, and so we 22 00:01:22,000 --> 00:01:26,560 Speaker 1: both associate Harry Potter with our early months and years 23 00:01:26,600 --> 00:01:29,240 Speaker 1: of dating because as we would drive to the different 24 00:01:29,280 --> 00:01:31,040 Speaker 1: cities to visit each other, we would both listen to 25 00:01:31,120 --> 00:01:33,200 Speaker 1: Harry Potter, and so, yeah, it kind of has a 26 00:01:33,200 --> 00:01:35,440 Speaker 1: spot in our heart in our relationship there at the beginning. 27 00:01:35,440 --> 00:01:37,959 Speaker 1: But yes, the virus that shall not be named the 28 00:01:37,959 --> 00:01:40,600 Speaker 1: Great Lockdown, it seems like it's what this is being called. 29 00:01:40,640 --> 00:01:42,680 Speaker 1: Now we're in week five, man, how how are you 30 00:01:42,720 --> 00:01:45,200 Speaker 1: guys holding up? We're doing pretty good. Yeah, still pretty good. 31 00:01:45,240 --> 00:01:48,760 Speaker 1: I think the getting back to school thing is taking 32 00:01:48,760 --> 00:01:51,040 Speaker 1: a little bit more of a toll on the family, 33 00:01:51,080 --> 00:01:53,680 Speaker 1: on the kids, trying to kind of get into that 34 00:01:53,720 --> 00:01:56,800 Speaker 1: more regular school day. It just feels weird trying to 35 00:01:56,800 --> 00:01:58,800 Speaker 1: do it from home. But we're doing our best well. 36 00:01:58,840 --> 00:02:00,840 Speaker 1: In particular our school, a school that we sent our 37 00:02:00,840 --> 00:02:03,960 Speaker 1: oldest girls too, they've basically launched phase three of that 38 00:02:04,040 --> 00:02:07,080 Speaker 1: home learning right and they've gotten way more serious and 39 00:02:07,160 --> 00:02:09,600 Speaker 1: it's a lot harder. Right. Exactly before it was like 40 00:02:09,680 --> 00:02:12,000 Speaker 1: let's review some stuff and you know what, do some 41 00:02:12,080 --> 00:02:14,640 Speaker 1: related arts of your own, and now it's now we're 42 00:02:14,639 --> 00:02:17,720 Speaker 1: gonna do school for real. Yeah, it's it's legits. It's 43 00:02:17,760 --> 00:02:19,840 Speaker 1: a lot more pressure on our wives since they're the 44 00:02:19,880 --> 00:02:21,639 Speaker 1: ones taking care of the kid as at home while 45 00:02:21,680 --> 00:02:23,799 Speaker 1: you and I continue to work. We both have stay 46 00:02:23,840 --> 00:02:26,680 Speaker 1: at home mama's holding down the fort. We're incredibly thankful 47 00:02:26,720 --> 00:02:28,800 Speaker 1: for them, but it is not easy. Yeah, they do 48 00:02:28,840 --> 00:02:30,959 Speaker 1: the hard work around here, that's for sure, absolutely, man. 49 00:02:31,000 --> 00:02:32,600 Speaker 1: But first we gotta get to the good news, all right. 50 00:02:32,680 --> 00:02:34,600 Speaker 1: That's what we try to start off each of these 51 00:02:34,639 --> 00:02:37,920 Speaker 1: episodes with, is some good news of what's happening out there, 52 00:02:38,240 --> 00:02:41,040 Speaker 1: even in the midst of health and economic turmoil. So 53 00:02:41,080 --> 00:02:43,120 Speaker 1: we have the first item of good news we wanted 54 00:02:43,160 --> 00:02:45,760 Speaker 1: to mention is stimulus checks. We just talked about these 55 00:02:45,760 --> 00:02:48,440 Speaker 1: on Wednesday, Matt, and they are showing up in people's accounts. 56 00:02:48,560 --> 00:02:51,480 Speaker 1: They actually started showing up it seems like either earlier 57 00:02:51,560 --> 00:02:53,760 Speaker 1: this week or potentially late last week from what I'm 58 00:02:53,760 --> 00:02:56,880 Speaker 1: hearing from people in their bank accounts. And that's great. Right, 59 00:02:56,960 --> 00:02:59,120 Speaker 1: We have a listener question about the stimulus checks, so 60 00:02:59,120 --> 00:03:00,959 Speaker 1: we're gonna get to later in the episode, but I 61 00:03:00,960 --> 00:03:03,280 Speaker 1: wanted to ask you, have you received yours yet? Heck, yeah, dude, 62 00:03:03,360 --> 00:03:06,560 Speaker 1: it showed up earlier this week on April fift that 63 00:03:06,680 --> 00:03:08,200 Speaker 1: was the date that they were targeting. I made a 64 00:03:08,200 --> 00:03:10,639 Speaker 1: point to check it that morning because that is the 65 00:03:10,720 --> 00:03:15,000 Speaker 1: date that Secretary minutein Treasury Secretary that's the that's the 66 00:03:15,080 --> 00:03:16,680 Speaker 1: date that they were gunning for, and he was saying 67 00:03:16,720 --> 00:03:20,600 Speaker 1: that eighty million folks should have checks in their accounts 68 00:03:20,639 --> 00:03:23,399 Speaker 1: by that date with a direct deposit. So, um, yeah, 69 00:03:23,440 --> 00:03:24,959 Speaker 1: we were one of those folks that got our payment 70 00:03:25,040 --> 00:03:26,880 Speaker 1: right on time, which was nice, honestly, and it was 71 00:03:26,880 --> 00:03:29,519 Speaker 1: a little surprising to show up like that. I still 72 00:03:29,520 --> 00:03:31,400 Speaker 1: have him received mine and I logged into the IRS 73 00:03:31,400 --> 00:03:33,400 Speaker 1: website to kind of check and see the status. I 74 00:03:33,440 --> 00:03:35,200 Speaker 1: believe mine said that the I r S had not 75 00:03:35,280 --> 00:03:38,040 Speaker 1: determined my eligibility yet, and I think that might freak 76 00:03:38,080 --> 00:03:39,840 Speaker 1: some people out if they know they're eligible and they 77 00:03:39,840 --> 00:03:42,520 Speaker 1: get that response when they log in. Don't get freaked out. 78 00:03:42,640 --> 00:03:45,640 Speaker 1: I think it is them trying to process just so 79 00:03:45,680 --> 00:03:48,480 Speaker 1: many payments in such a short amount of time. If 80 00:03:48,520 --> 00:03:51,800 Speaker 1: you qualify right, if you make under that adjusted gross income, 81 00:03:51,840 --> 00:03:54,000 Speaker 1: which means you're actually going to get some sort of 82 00:03:54,000 --> 00:03:56,200 Speaker 1: a payout, you will get it. Just be patient. I 83 00:03:56,200 --> 00:03:58,600 Speaker 1: think we're going to see more payments, hopefully next week 84 00:03:58,600 --> 00:04:01,240 Speaker 1: in the following week and hopefully before too long we 85 00:04:01,360 --> 00:04:03,480 Speaker 1: all get that money. I know, um, for a lot 86 00:04:03,480 --> 00:04:05,720 Speaker 1: of people, it's more of a need, and so I 87 00:04:05,720 --> 00:04:08,160 Speaker 1: hate that people are having to wait, that anybody is 88 00:04:08,200 --> 00:04:10,480 Speaker 1: having to wait. But it is certainly good news that 89 00:04:10,640 --> 00:04:12,680 Speaker 1: a lot of Americans are getting that money, and they're 90 00:04:12,680 --> 00:04:15,000 Speaker 1: getting it now. Yeah, and and this is just speculation, 91 00:04:15,040 --> 00:04:17,400 Speaker 1: but you just filed your taxes right, your your twenty 92 00:04:17,520 --> 00:04:20,400 Speaker 1: nineteen taxically, just like a week and a half ago. Yeah. 93 00:04:20,600 --> 00:04:23,520 Speaker 1: I suspect this isn't at all confirmed anywhere, but I 94 00:04:23,560 --> 00:04:26,719 Speaker 1: think that folks who have filed their taxes recently, it 95 00:04:26,839 --> 00:04:30,080 Speaker 1: might be slightly slower, slightly delayed, as the I R S, 96 00:04:30,200 --> 00:04:32,520 Speaker 1: as the federal government is looking at the most recent 97 00:04:32,560 --> 00:04:35,080 Speaker 1: return that has been filed. If you haven't filed your 98 00:04:35,080 --> 00:04:38,640 Speaker 1: taxes yet, because you have until July fift you automatically 99 00:04:38,800 --> 00:04:41,719 Speaker 1: get qualified based on your twenty eighteen taxes. But once 100 00:04:41,760 --> 00:04:44,120 Speaker 1: you do file your twenty nineteen tax return, that is 101 00:04:44,160 --> 00:04:46,760 Speaker 1: the return that they based your eligibility on. And so 102 00:04:46,880 --> 00:04:48,720 Speaker 1: with it showing up, you know, I guess more recently. 103 00:04:48,800 --> 00:04:51,360 Speaker 1: I don't know. I'm thinking it might delay things slightly. 104 00:04:51,520 --> 00:04:53,359 Speaker 1: Plus you're all about the snail mail. I know you 105 00:04:53,400 --> 00:04:55,279 Speaker 1: like receiving paper checks in the mail, so I I 106 00:04:55,279 --> 00:04:57,680 Speaker 1: I sent a letter to secondary minution, and I said, 107 00:04:57,880 --> 00:05:00,240 Speaker 1: if I could get it in the mail four months around, 108 00:05:00,240 --> 00:05:02,239 Speaker 1: they'd be great. Yeah. I sent something via the post 109 00:05:02,480 --> 00:05:05,480 Speaker 1: and we're expecting a return in two weeks. Some guy 110 00:05:05,480 --> 00:05:07,839 Speaker 1: on horseback came by and just put it in his 111 00:05:07,839 --> 00:05:11,200 Speaker 1: his leather pouch. Kevin Costner the postman just twice now, 112 00:05:11,279 --> 00:05:13,920 Speaker 1: we've referenced it in the past six months. Yeah, well, 113 00:05:13,920 --> 00:05:16,960 Speaker 1: Matt on that note. Interestingly enough, Apple just launched a 114 00:05:17,000 --> 00:05:20,240 Speaker 1: new iPhone. Se I saw that you're still rolling with 115 00:05:20,279 --> 00:05:24,440 Speaker 1: the old, old original sc love it because it's so small, man. 116 00:05:24,520 --> 00:05:27,760 Speaker 1: It made me so happy to see that Apple recognized 117 00:05:27,839 --> 00:05:30,400 Speaker 1: that the sc has this little cult following because folks 118 00:05:30,400 --> 00:05:33,080 Speaker 1: don't want the giant screens. Like everybody loves the giant screens. 119 00:05:33,120 --> 00:05:35,720 Speaker 1: But I don't want an entire tablet in my pocket 120 00:05:35,760 --> 00:05:37,600 Speaker 1: when I'm going to the store where I guess I'm 121 00:05:37,600 --> 00:05:38,839 Speaker 1: not going to the store these days, when I'm going 122 00:05:38,880 --> 00:05:40,760 Speaker 1: out for a walk, you know, when I'm on my bike, 123 00:05:40,760 --> 00:05:42,640 Speaker 1: I don't want to carry around a little portable computer. 124 00:05:42,960 --> 00:05:45,280 Speaker 1: I want like just a small phone that happens to 125 00:05:45,360 --> 00:05:47,279 Speaker 1: be able to do all the computer like stuff smart 126 00:05:47,279 --> 00:05:49,480 Speaker 1: business move too, because it'll be interesting to see how 127 00:05:49,480 --> 00:05:51,279 Speaker 1: many people are willing to spend a third of their 128 00:05:51,320 --> 00:05:53,920 Speaker 1: stimulus check on a much cheaper Apple phone. And it's 129 00:05:53,960 --> 00:05:56,320 Speaker 1: just nice because for people that like Apple, the one 130 00:05:56,400 --> 00:05:59,760 Speaker 1: drawback is the expense of the phones, and this is 131 00:05:59,800 --> 00:06:02,320 Speaker 1: a really good phone at a much cheaper price point. 132 00:06:02,400 --> 00:06:04,919 Speaker 1: Kind Of in my mind, the sc now compares to 133 00:06:05,120 --> 00:06:07,920 Speaker 1: some of the you know, more middle ground or even 134 00:06:07,920 --> 00:06:11,760 Speaker 1: flagship uh Android phones that are in that four price range. 135 00:06:11,760 --> 00:06:13,360 Speaker 1: So it's nice to kind of see Apple competing with 136 00:06:13,440 --> 00:06:16,040 Speaker 1: a great phone in that you know, lower priced here. 137 00:06:16,360 --> 00:06:19,080 Speaker 1: Does this mean you're even considering switching over from your 138 00:06:19,440 --> 00:06:22,040 Speaker 1: you and your droid ways, I don't think about it, 139 00:06:22,080 --> 00:06:24,120 Speaker 1: But no, I don't know. I said, you're not die 140 00:06:24,160 --> 00:06:26,520 Speaker 1: hard against it, which I've picked up on recently. You're like, 141 00:06:26,680 --> 00:06:28,800 Speaker 1: it's not that you hate Apple products, you just have 142 00:06:28,839 --> 00:06:31,159 Speaker 1: found what you're looking for when it comes to phones, 143 00:06:31,520 --> 00:06:33,359 Speaker 1: Uh yeah, from droid. Yeah. And I think there were 144 00:06:33,360 --> 00:06:35,880 Speaker 1: a few things that Apple was missing for a couple 145 00:06:35,880 --> 00:06:38,400 Speaker 1: of years that I really didn't like in a particular 146 00:06:38,400 --> 00:06:40,560 Speaker 1: back in the iPhone five days, the screens were just 147 00:06:40,600 --> 00:06:42,479 Speaker 1: really small, and I didn't like how small they were. 148 00:06:42,800 --> 00:06:44,520 Speaker 1: And I feel like Apple in recent years has done 149 00:06:44,560 --> 00:06:46,760 Speaker 1: a way better job and they've adapted to some of 150 00:06:46,839 --> 00:06:48,760 Speaker 1: the better parts of what Android offered, And so yeah, 151 00:06:48,760 --> 00:06:51,160 Speaker 1: I would consider moving to an iPhone now, whereas yeah, 152 00:06:51,240 --> 00:06:53,400 Speaker 1: years ago, I would have said, heck no, yeah, it's 153 00:06:53,400 --> 00:06:55,320 Speaker 1: got that slightly larger screen. I think it moved from 154 00:06:55,360 --> 00:06:57,560 Speaker 1: four inches to four point seven. That's a lot better, 155 00:06:57,640 --> 00:06:59,160 Speaker 1: which to most people though it was like, wait, what, 156 00:06:59,279 --> 00:07:04,240 Speaker 1: like it sounds tiny looking for that nine screen Exactly. Yeah, 157 00:07:04,279 --> 00:07:07,160 Speaker 1: I totally agree, though. I think it's a brilliant business 158 00:07:07,160 --> 00:07:09,600 Speaker 1: decision to kind of coincide the release of a new 159 00:07:09,640 --> 00:07:12,559 Speaker 1: phone earlier this week at the same time eighty million 160 00:07:12,560 --> 00:07:16,200 Speaker 1: people get stimulus check. But more good news, Joel, Let's 161 00:07:16,240 --> 00:07:17,880 Speaker 1: let's let's run through it. I mean, I'm not sure 162 00:07:17,920 --> 00:07:20,440 Speaker 1: if we started offering up the good news before John 163 00:07:20,480 --> 00:07:22,920 Speaker 1: Krasinski did, but he is actually doing a great job 164 00:07:22,960 --> 00:07:26,200 Speaker 1: highlighting some happy stuff right now via his his YouTube 165 00:07:26,200 --> 00:07:28,920 Speaker 1: show that he films. I'm pretty sure just in his house, 166 00:07:29,000 --> 00:07:32,080 Speaker 1: like in his office. I love he's got like two 167 00:07:32,160 --> 00:07:34,840 Speaker 1: different camera angles and he just like vacillates between each one. 168 00:07:35,080 --> 00:07:37,120 Speaker 1: I'm pretty sure they both shot with iPhones as well, 169 00:07:37,160 --> 00:07:39,480 Speaker 1: which is basically how it goes these days. But on 170 00:07:39,560 --> 00:07:42,360 Speaker 1: this video on a show earlier this week, he announced 171 00:07:42,360 --> 00:07:44,480 Speaker 1: how A T and T peaking of cellphones and cell 172 00:07:44,480 --> 00:07:46,880 Speaker 1: phone providers. But they're going to provide three months of 173 00:07:47,080 --> 00:07:50,000 Speaker 1: free wireless service for nurses, for doctors as well as 174 00:07:50,040 --> 00:07:52,440 Speaker 1: other healthcare service providers. And they're offering that through the 175 00:07:52,480 --> 00:07:55,360 Speaker 1: specific service that they offer for folks who work in 176 00:07:55,360 --> 00:07:58,560 Speaker 1: the healthcare industry. Super cool. Three months for free is 177 00:07:58,680 --> 00:08:00,400 Speaker 1: is pretty huge, and you know, it's great to see 178 00:08:00,440 --> 00:08:03,000 Speaker 1: them stepping up in that way. Yeah, a couple other 179 00:08:03,120 --> 00:08:05,560 Speaker 1: ways of healthcare workers are getting taken care of, Matt. 180 00:08:05,600 --> 00:08:08,160 Speaker 1: I know you don't really like Costco, but some people do, 181 00:08:08,800 --> 00:08:11,200 Speaker 1: normal people do. I don't hear. Sorry for another quick 182 00:08:11,240 --> 00:08:14,440 Speaker 1: rabbit trail. My parents recently brought us some Costco toilet 183 00:08:14,440 --> 00:08:17,880 Speaker 1: paper the Kirkland signature. Yeah, because we were out and 184 00:08:17,880 --> 00:08:19,360 Speaker 1: we couldn't get get our hands on any and so 185 00:08:19,400 --> 00:08:22,840 Speaker 1: they brought us this giant, industrial size thing of toilet paper. 186 00:08:23,000 --> 00:08:26,040 Speaker 1: And I will say it's really thick. Dare I say 187 00:08:26,120 --> 00:08:29,080 Speaker 1: too thick? I'm not used to using so few squares 188 00:08:29,360 --> 00:08:31,280 Speaker 1: to wipe the bottoms in our household. You know, I'm 189 00:08:31,320 --> 00:08:34,959 Speaker 1: sorry used to going with half fly. Okay, hey, it's 190 00:08:35,000 --> 00:08:38,240 Speaker 1: to ply, but it's reasonable thickness to apply. Like our 191 00:08:38,240 --> 00:08:41,360 Speaker 1: plumbing can't even hardly flush, Like our toilets can't flush 192 00:08:41,480 --> 00:08:43,040 Speaker 1: this toilet paper down the toilet. It just sits on 193 00:08:43,080 --> 00:08:44,760 Speaker 1: top of the water. It doesn't even like soak in. 194 00:08:44,880 --> 00:08:47,199 Speaker 1: It's now I feel like you're just looking for Costco complains. 195 00:08:47,320 --> 00:08:49,640 Speaker 1: Costco is too much al right, Like you could hang 196 00:08:49,720 --> 00:08:51,960 Speaker 1: this toilet paper up in our studio here and it 197 00:08:51,960 --> 00:08:54,839 Speaker 1: would help deaden the echoes like that, that's how thick 198 00:08:54,920 --> 00:08:56,439 Speaker 1: this stuff is. All right, Well, I don't want to know. 199 00:08:56,559 --> 00:08:58,439 Speaker 1: I like ripping about Costco. Let's talk about the good 200 00:08:58,440 --> 00:09:01,480 Speaker 1: thing they do. Some good stuff. They're allowing healthcare workers 201 00:09:01,520 --> 00:09:04,040 Speaker 1: and first responders to skip lines of stores, which how 202 00:09:04,080 --> 00:09:06,360 Speaker 1: cool is that It's cool? And another benefit for healthcare 203 00:09:06,360 --> 00:09:08,480 Speaker 1: workers too. It's not life changing, but it is a 204 00:09:08,480 --> 00:09:10,400 Speaker 1: thoughtful way to make sure that their lives are a 205 00:09:10,440 --> 00:09:13,880 Speaker 1: little easier. Free crocs right now. I gotta be honest, 206 00:09:13,880 --> 00:09:15,960 Speaker 1: You couldn't pay me to wear crocs, but I do 207 00:09:16,000 --> 00:09:18,559 Speaker 1: appreciate that they're giving away free crocs. To healthcare workers. 208 00:09:18,640 --> 00:09:20,600 Speaker 1: I don't think you have to wear crocs if you're 209 00:09:20,600 --> 00:09:22,440 Speaker 1: a nurse, but I know a lot of nurses wear 210 00:09:22,480 --> 00:09:25,480 Speaker 1: them almost mandatory uniform. Yeah, it's like a standard thing. 211 00:09:25,600 --> 00:09:27,640 Speaker 1: I think that nurses to know wears like the non 212 00:09:27,720 --> 00:09:30,400 Speaker 1: skid is important and you can like you know, disinfect 213 00:09:30,400 --> 00:09:32,520 Speaker 1: them as needed and if you get some gross stuff 214 00:09:32,520 --> 00:09:35,360 Speaker 1: on your crocs. Feel like maybe chefs are into crocs too. 215 00:09:35,440 --> 00:09:37,280 Speaker 1: Oh yeah, I think I've seen chefs wear them before. 216 00:09:37,320 --> 00:09:39,040 Speaker 1: But I will admit I had a pair of crocs 217 00:09:39,080 --> 00:09:43,319 Speaker 1: back in the day. This is like two thousand everybody had. 218 00:09:43,440 --> 00:09:45,760 Speaker 1: Everybody did it, but not any more. Man. Yeah. Yeah. 219 00:09:46,400 --> 00:09:48,160 Speaker 1: And one other piece of good news that we want 220 00:09:48,160 --> 00:09:51,160 Speaker 1: to mention is that city group they are offering. There 221 00:09:51,200 --> 00:09:54,840 Speaker 1: there would be summer interns, full time jobs during a 222 00:09:54,920 --> 00:09:57,680 Speaker 1: time when there is so much uncertainty. It's really great 223 00:09:57,720 --> 00:10:00,040 Speaker 1: seeing a company step up and provide some sold a 224 00:10:00,160 --> 00:10:03,040 Speaker 1: financial footing for recent graduates who are going to be 225 00:10:03,120 --> 00:10:05,800 Speaker 1: entering the workforce. And so that's after their internship, right, 226 00:10:05,840 --> 00:10:07,600 Speaker 1: so they've got full time jobs lined up. But then 227 00:10:07,600 --> 00:10:09,800 Speaker 1: in addition to that, these city interns, they will also 228 00:10:09,880 --> 00:10:12,400 Speaker 1: be paid for the ten weeks they were supposed to 229 00:10:12,400 --> 00:10:14,720 Speaker 1: have worked this summer, right, So obviously, right now you 230 00:10:14,760 --> 00:10:17,439 Speaker 1: can't go into, you know, one of the giant City 231 00:10:17,440 --> 00:10:19,680 Speaker 1: Group offices, one of the headquarters in like London or 232 00:10:19,679 --> 00:10:22,800 Speaker 1: Hong Kong, New York perhaps, but they are getting paid 233 00:10:22,840 --> 00:10:25,480 Speaker 1: for that anyway, So yeah, move over, stimulus check. We 234 00:10:25,600 --> 00:10:27,320 Speaker 1: got that City Group money rolling in. If you are 235 00:10:27,440 --> 00:10:29,440 Speaker 1: one of those lucky interns, that's great. Should have applied 236 00:10:29,440 --> 00:10:31,640 Speaker 1: for that internship. And what was I thinking back in 237 00:10:31,720 --> 00:10:34,560 Speaker 1: my day, Matt, They didn't used to pay interns, So 238 00:10:34,840 --> 00:10:37,080 Speaker 1: I was an unpaid intern in my first sint in media. 239 00:10:37,600 --> 00:10:39,520 Speaker 1: But I love that interns are getting paid. I think 240 00:10:39,520 --> 00:10:41,040 Speaker 1: they should get paid. I think that's a good thing 241 00:10:41,040 --> 00:10:43,200 Speaker 1: to do. And I love what City is doing here 242 00:10:43,280 --> 00:10:45,600 Speaker 1: and in particular saying, you know what, all of you 243 00:10:45,640 --> 00:10:47,120 Speaker 1: are going to have a job at the end of this, 244 00:10:47,200 --> 00:10:49,360 Speaker 1: which is really cool. But Matt, let's get onto kind 245 00:10:49,360 --> 00:10:50,840 Speaker 1: of some of the topics that we wanted to cover 246 00:10:50,920 --> 00:10:53,440 Speaker 1: besides just all the good news, and one of the 247 00:10:53,440 --> 00:10:55,439 Speaker 1: things we wanted to cover on today's episode is is 248 00:10:55,480 --> 00:10:58,840 Speaker 1: the changing face of how we're spending as consumers. The 249 00:10:58,840 --> 00:11:01,640 Speaker 1: New York Times dove to the numbers recently from a 250 00:11:01,720 --> 00:11:05,120 Speaker 1: research company. The tracks credit and debit card transactions and 251 00:11:05,160 --> 00:11:08,240 Speaker 1: the changes are remarkable. They've been swift, so like some 252 00:11:08,360 --> 00:11:10,880 Speaker 1: spending is up of course, with more folks cooking get 253 00:11:10,920 --> 00:11:13,640 Speaker 1: home online grocery delivery in meal kits, they've seen a 254 00:11:13,679 --> 00:11:16,240 Speaker 1: massive number of new adopters. Matt I looked up Blue 255 00:11:16,280 --> 00:11:18,480 Speaker 1: Apron stock and it was down to two dollars a 256 00:11:18,520 --> 00:11:20,920 Speaker 1: share recently, and it's up to about twelve dollars a 257 00:11:21,000 --> 00:11:23,560 Speaker 1: share right now. Yeah, so there's been this just massive 258 00:11:23,640 --> 00:11:27,240 Speaker 1: uptick in people subscribing to services like Blue Apron. Checking 259 00:11:27,280 --> 00:11:29,440 Speaker 1: that out, and by the way, that's not an endorsement 260 00:11:29,480 --> 00:11:32,160 Speaker 1: to to buy single stocks or Blue Apron stock. No, 261 00:11:32,240 --> 00:11:33,360 Speaker 1: if you can go back in time and you can 262 00:11:33,400 --> 00:11:34,960 Speaker 1: buy it at two dollars a share, you should do that. 263 00:11:35,040 --> 00:11:39,280 Speaker 1: But also pick up that sports all the neck. Well, yeah, 264 00:11:39,440 --> 00:11:41,040 Speaker 1: and that we had an episode where we talked to 265 00:11:41,120 --> 00:11:43,080 Speaker 1: Beth Monsale about cooking at home on a budget. We 266 00:11:43,160 --> 00:11:45,000 Speaker 1: highly recommend people going back and listening to that. That That 267 00:11:45,120 --> 00:11:47,480 Speaker 1: was episode one if you didn't get to check that out. 268 00:11:47,520 --> 00:11:50,320 Speaker 1: But you know, she actually made reference to these meal 269 00:11:50,360 --> 00:11:53,280 Speaker 1: delivery services and said, yeah, they're not a terrible idea, 270 00:11:53,400 --> 00:11:55,120 Speaker 1: but the better idea is to buy stuff at your 271 00:11:55,120 --> 00:11:57,920 Speaker 1: local grocer, preferably in Aldi and she's got some great 272 00:11:57,920 --> 00:12:00,520 Speaker 1: recipes teat up for people to cook atter at home. 273 00:12:00,880 --> 00:12:03,600 Speaker 1: So more folks are spending money on groceries since they're 274 00:12:03,600 --> 00:12:05,480 Speaker 1: staying at home and cooking, and even on these meal 275 00:12:05,480 --> 00:12:07,959 Speaker 1: in a box delivery services like Blue Apron. Spending is 276 00:12:08,040 --> 00:12:11,400 Speaker 1: up there, but shopping and just overall consumer spending is down. 277 00:12:11,640 --> 00:12:14,640 Speaker 1: One economist stated that this is the sharpest decline in 278 00:12:14,679 --> 00:12:18,120 Speaker 1: consumer spending that we've ever seen, and of course, Joel 279 00:12:18,200 --> 00:12:21,360 Speaker 1: anything and pretty much everything travel related has suffered majorly, 280 00:12:21,400 --> 00:12:24,440 Speaker 1: from airlines to gas stations, electric scooters, they have all 281 00:12:24,480 --> 00:12:27,680 Speaker 1: seen massive declines. And it will certainly be interesting to 282 00:12:27,720 --> 00:12:30,160 Speaker 1: see which of these patterns stick around and which one's 283 00:12:30,200 --> 00:12:33,080 Speaker 1: melts away as our lives hopefully begin to return to 284 00:12:33,200 --> 00:12:35,640 Speaker 1: a somewhat more normal state in the coming weeks, because 285 00:12:35,720 --> 00:12:39,680 Speaker 1: essentially the domain is there right um, it's just being paused. 286 00:12:39,920 --> 00:12:41,960 Speaker 1: Like people want to spend money. A lot of people 287 00:12:42,080 --> 00:12:43,720 Speaker 1: want to be able to go out into restaurants and 288 00:12:43,720 --> 00:12:46,000 Speaker 1: spend their money, you know, on sports and just all 289 00:12:46,040 --> 00:12:48,280 Speaker 1: the things that they're normally used to. But because of 290 00:12:48,320 --> 00:12:51,160 Speaker 1: the health crisis, we can't, and so it's it's different 291 00:12:51,160 --> 00:12:53,600 Speaker 1: in a lot of ways than the Great Recession and 292 00:12:53,640 --> 00:12:56,760 Speaker 1: the Great Depression. The Great Lockdown is odd at least 293 00:12:56,840 --> 00:12:59,160 Speaker 1: right now, because we want to spend money. A lot 294 00:12:59,200 --> 00:13:01,440 Speaker 1: of us, you know, have some funds that we're willing 295 00:13:01,480 --> 00:13:03,920 Speaker 1: to spend. We just can't. We're not being allowed to 296 00:13:03,920 --> 00:13:05,240 Speaker 1: to spend that money. And so as long as the 297 00:13:05,240 --> 00:13:06,960 Speaker 1: lockdown is still going on, though, I think we'll continue 298 00:13:07,040 --> 00:13:09,959 Speaker 1: to see spending sort of reflect that. But as soon 299 00:13:10,000 --> 00:13:11,920 Speaker 1: as you know, the quarantine is lifted a little bit, 300 00:13:11,960 --> 00:13:13,800 Speaker 1: I wouldn't be surprised if we see spending surge. I 301 00:13:13,800 --> 00:13:16,160 Speaker 1: don't think it'll make up for all that law spending 302 00:13:16,160 --> 00:13:18,320 Speaker 1: over the past you know, weeks and maybe even months, 303 00:13:18,600 --> 00:13:20,600 Speaker 1: but it'll be interesting to see. I think it's gonna 304 00:13:20,600 --> 00:13:22,440 Speaker 1: be interesting to see what that bounce back looks like, 305 00:13:22,520 --> 00:13:24,680 Speaker 1: because I'm not as optimistic as you that it's going 306 00:13:24,720 --> 00:13:27,960 Speaker 1: to be immediate after the lockdown is over, because a 307 00:13:27,960 --> 00:13:29,480 Speaker 1: lot of us are gonna be fearful to go to 308 00:13:29,480 --> 00:13:31,560 Speaker 1: sporting events for a while. I don't think we're gonna 309 00:13:31,559 --> 00:13:34,520 Speaker 1: see fifty sixty seventy thousand people jammed into a stadium. 310 00:13:34,760 --> 00:13:37,360 Speaker 1: I think we're gonna see more sparsely attendant events. And 311 00:13:37,360 --> 00:13:39,520 Speaker 1: and to just with the unemployment, how long is how 312 00:13:39,520 --> 00:13:41,160 Speaker 1: long lived is that going to be? You know, I'm 313 00:13:41,160 --> 00:13:44,520 Speaker 1: hoping that these additional months of unemployment benefits are going 314 00:13:44,559 --> 00:13:47,599 Speaker 1: to bridge the gap and allow people to continue to 315 00:13:47,640 --> 00:13:49,920 Speaker 1: spend like they normally would, but that remains to be 316 00:13:49,960 --> 00:13:53,199 Speaker 1: seen too. So, yeah, how quickly are things gonna bounce back? 317 00:13:53,240 --> 00:13:55,880 Speaker 1: I mean, I'm optimistic about the American economy as a whole, 318 00:13:56,000 --> 00:13:57,559 Speaker 1: and if we're talking about more than just the next 319 00:13:57,600 --> 00:14:00,000 Speaker 1: few months, we're gonna be fine. Things are gonna bounce back. 320 00:14:00,440 --> 00:14:02,959 Speaker 1: But yeah, it'll be interesting to see what the yeah, 321 00:14:03,000 --> 00:14:04,719 Speaker 1: the trajectory, what that looks like, and and yeah, the 322 00:14:04,720 --> 00:14:07,000 Speaker 1: pacing of the recovery, I hear you and man as 323 00:14:07,040 --> 00:14:08,600 Speaker 1: we're kind of trying to figure out what the pacing 324 00:14:08,640 --> 00:14:12,079 Speaker 1: is gonna look like. It's really interesting to see that 325 00:14:12,240 --> 00:14:15,240 Speaker 1: one of the lead indicators of what the recovery looks 326 00:14:15,280 --> 00:14:18,840 Speaker 1: like could potentially be something really obscure and something that 327 00:14:18,880 --> 00:14:21,840 Speaker 1: most of us don't think about as being an economic indicator, 328 00:14:21,880 --> 00:14:24,720 Speaker 1: and that is electricity usage. And you know, the New 329 00:14:24,800 --> 00:14:27,160 Speaker 1: York Times had another story that I found fascinating, and 330 00:14:27,200 --> 00:14:29,640 Speaker 1: it basically said that most economic indicators work on some 331 00:14:29,680 --> 00:14:32,440 Speaker 1: sort of a delay, Like unemployment benefits. We we find 332 00:14:32,440 --> 00:14:35,360 Speaker 1: out the previous week's unemployment filings a week down the road. 333 00:14:35,480 --> 00:14:37,360 Speaker 1: But electricity usage you can give us a peek into 334 00:14:37,360 --> 00:14:40,320 Speaker 1: what's actually happening with the economy with almost no delay 335 00:14:40,400 --> 00:14:43,240 Speaker 1: at all. Yeah, not to mention even larger economic indicators 336 00:14:43,240 --> 00:14:46,520 Speaker 1: like quarterly reports and you know, the GDP typically delayed 337 00:14:46,520 --> 00:14:49,000 Speaker 1: by months to see you know, how things were going 338 00:14:49,040 --> 00:14:50,960 Speaker 1: and you know the previous quarter. Yeah. Yeah, we don't 339 00:14:50,960 --> 00:14:53,720 Speaker 1: know exactly what the losses are gonna look like for 340 00:14:53,800 --> 00:14:56,200 Speaker 1: some of these big companies yet, we'll find that out. 341 00:14:56,320 --> 00:14:59,840 Speaker 1: But charting the overall electricity usage in the country can 342 00:14:59,880 --> 00:15:02,480 Speaker 1: be helpful to figure out what's happening right now. So 343 00:15:02,480 --> 00:15:04,800 Speaker 1: we've had a sharp decline in usage, and that's mostly 344 00:15:04,840 --> 00:15:08,080 Speaker 1: because of all the businesses that are currently closed, like restaurants, theaters, 345 00:15:08,120 --> 00:15:11,000 Speaker 1: bar salons, etcetera. Right, And I think that's just kind 346 00:15:11,040 --> 00:15:13,440 Speaker 1: of this interesting thing that I know for me, I'm 347 00:15:13,440 --> 00:15:15,520 Speaker 1: going to keep tracking that. When you look back at 348 00:15:15,560 --> 00:15:18,280 Speaker 1: two thousand eight in the Great Recession, the pick back 349 00:15:18,360 --> 00:15:20,840 Speaker 1: up an electricity usage did seem to mirror kind of 350 00:15:20,840 --> 00:15:22,680 Speaker 1: a bounce back in the overall economy. So we'll be 351 00:15:22,720 --> 00:15:26,320 Speaker 1: fascinating to see if that same correlation still holds true 352 00:15:26,640 --> 00:15:28,760 Speaker 1: in the aftermath and bounce back from you know, the 353 00:15:28,760 --> 00:15:32,040 Speaker 1: Great lockdown. You obviously we're talking about economic indicators here, right, 354 00:15:32,080 --> 00:15:33,960 Speaker 1: and and and when it comes to electricity, we're looking 355 00:15:34,000 --> 00:15:36,560 Speaker 1: at energy use as a as a clear indicator. But 356 00:15:36,640 --> 00:15:39,680 Speaker 1: interestingly we've also been able to see environmental real time 357 00:15:39,760 --> 00:15:42,680 Speaker 1: changes as well. I'm thinking about um NASA. They published 358 00:15:42,720 --> 00:15:46,720 Speaker 1: some of these photos in China before and after the lockdown. 359 00:15:46,960 --> 00:15:49,840 Speaker 1: You know, they're a lockdown, and the amount of pollution, 360 00:15:50,560 --> 00:15:54,040 Speaker 1: the dig the decrease and pollution was mind boggling. I've 361 00:15:54,080 --> 00:15:56,240 Speaker 1: seen pigs of Los Angeles too, and it's had a 362 00:15:56,280 --> 00:15:59,440 Speaker 1: big difference there, so much clear and so obviously you know, 363 00:15:59,640 --> 00:16:02,520 Speaker 1: this is an environmental change, but it's important to see that, 364 00:16:02,560 --> 00:16:04,800 Speaker 1: you know, some of these changes that are occurring aren't 365 00:16:04,800 --> 00:16:09,280 Speaker 1: necessarily economic related, and they're not energy related, but they're environmental. 366 00:16:09,320 --> 00:16:11,080 Speaker 1: And some of these changes that we're seeing are positive 367 00:16:11,080 --> 00:16:13,960 Speaker 1: and so it's not all negative. You know, we are 368 00:16:13,960 --> 00:16:16,520 Speaker 1: seeing numbers drop, but when it comes to the environment 369 00:16:16,560 --> 00:16:18,200 Speaker 1: and just kind of you know, what the world looks 370 00:16:18,200 --> 00:16:20,840 Speaker 1: like right now, at least there's an upside there. Yeah, 371 00:16:20,920 --> 00:16:23,920 Speaker 1: some good news. And obviously tracking electricity use is not 372 00:16:23,960 --> 00:16:26,160 Speaker 1: an exact science, but it is an interesting indicator. I 373 00:16:26,200 --> 00:16:28,680 Speaker 1: found that fascinating. All right, Matt, let's get into some 374 00:16:28,800 --> 00:16:31,160 Speaker 1: of our thoughts on the housing market, the spring housing 375 00:16:31,200 --> 00:16:33,880 Speaker 1: market in particular. We've got a listener who's under contract 376 00:16:33,880 --> 00:16:35,600 Speaker 1: on a house and wants to know what to do. 377 00:16:35,720 --> 00:16:46,440 Speaker 1: We'll get to that right after the break. All right, 378 00:16:46,480 --> 00:16:48,000 Speaker 1: So we're back to the break, and man, what is 379 00:16:48,120 --> 00:16:50,720 Speaker 1: up with the housing market? Right? It's Spring. Generally this 380 00:16:50,760 --> 00:16:52,960 Speaker 1: is the busiest time for homes to be bought and sold, 381 00:16:53,200 --> 00:16:54,880 Speaker 1: but that is not the case right now. We've got 382 00:16:54,880 --> 00:16:58,760 Speaker 1: a listener question about the housing market from Robin. Hey, guys, 383 00:16:59,040 --> 00:17:01,960 Speaker 1: love your show. Okay, but straight to the point, is 384 00:17:02,000 --> 00:17:05,040 Speaker 1: buying a home right now? A good ideas have been 385 00:17:05,040 --> 00:17:07,760 Speaker 1: looking for the home for the past several months, prior 386 00:17:07,760 --> 00:17:10,399 Speaker 1: to this whole pandemic we're actually during, but within the 387 00:17:10,440 --> 00:17:14,600 Speaker 1: last few weeks, we've got to offer accepted. We want 388 00:17:14,640 --> 00:17:16,679 Speaker 1: to ask for the first week of the stay at 389 00:17:16,720 --> 00:17:19,879 Speaker 1: home order that was issued out in southern California. We 390 00:17:19,960 --> 00:17:23,800 Speaker 1: currently live in Los Sounge, California. Where the market is 391 00:17:23,840 --> 00:17:28,479 Speaker 1: extremely competitive and ridiculously overpriced. But we've been told by 392 00:17:28,680 --> 00:17:31,040 Speaker 1: several of our colleagues, friends and family members that just 393 00:17:31,119 --> 00:17:34,160 Speaker 1: to wait because the housing markets gonna go down. They're 394 00:17:34,160 --> 00:17:36,880 Speaker 1: saying it should be buyer's market within the next six 395 00:17:36,960 --> 00:17:40,199 Speaker 1: to eight months. We love the home we're in Escort four, 396 00:17:40,560 --> 00:17:43,399 Speaker 1: but obviously getting cold feet because of what's happening. We 397 00:17:43,440 --> 00:17:46,160 Speaker 1: would love to hear what you both think. Anyways, thank 398 00:17:46,160 --> 00:17:49,760 Speaker 1: you guys for listening to this response and look forward 399 00:17:49,800 --> 00:17:52,880 Speaker 1: to going to what you guys have to say. By Robin, 400 00:17:52,920 --> 00:17:54,639 Speaker 1: that's a great question, and it's certainly something that we 401 00:17:54,680 --> 00:17:56,920 Speaker 1: need to address because a lot of people who whether 402 00:17:57,000 --> 00:17:58,880 Speaker 1: they're under contract on a home right now or they're 403 00:17:58,960 --> 00:18:01,439 Speaker 1: just kind of all that this spring market was the 404 00:18:01,480 --> 00:18:03,480 Speaker 1: time to buy or sell a home. It's important for 405 00:18:03,600 --> 00:18:05,840 Speaker 1: us to think through, you know, what the implications of 406 00:18:05,880 --> 00:18:08,280 Speaker 1: this pandemic are on the housing market. So let's get 407 00:18:08,280 --> 00:18:10,280 Speaker 1: into it, Matt. I think the first thing we have 408 00:18:10,320 --> 00:18:12,920 Speaker 1: to admit is that it's hard to know what's going 409 00:18:12,960 --> 00:18:15,040 Speaker 1: to happen with the housing market in the next few 410 00:18:15,080 --> 00:18:17,240 Speaker 1: weeks or in the next few months. And so Robin 411 00:18:17,320 --> 00:18:19,560 Speaker 1: talking to his friends about many many months down the road. 412 00:18:19,600 --> 00:18:21,600 Speaker 1: What's gonna happen with the housing market. None of us 413 00:18:21,600 --> 00:18:24,520 Speaker 1: can be sure about what's going to happen, but we 414 00:18:24,560 --> 00:18:27,080 Speaker 1: do have some peaks, I would say, into what is 415 00:18:27,080 --> 00:18:29,639 Speaker 1: going on. I think we're definitely seeing many buyers waiting 416 00:18:29,640 --> 00:18:32,280 Speaker 1: to purchase a home, especially with most of us being 417 00:18:32,320 --> 00:18:35,639 Speaker 1: locked in our homes. We're basically prevented from doing in 418 00:18:35,800 --> 00:18:38,240 Speaker 1: in home walkthrough of a house that we're interested in, 419 00:18:38,480 --> 00:18:41,199 Speaker 1: right and so these people might have been looking recently, 420 00:18:41,200 --> 00:18:43,760 Speaker 1: but they put their search on hold for now because 421 00:18:43,800 --> 00:18:46,560 Speaker 1: of COVID nineteen. Banks have also seen that home purchase 422 00:18:46,600 --> 00:18:49,359 Speaker 1: loan applications have fallen for four consecutive weeks to the 423 00:18:49,359 --> 00:18:53,160 Speaker 1: lowest level since So there is an immediate and current 424 00:18:53,200 --> 00:18:55,800 Speaker 1: impact on the market right now. Yeah, man, And so 425 00:18:55,920 --> 00:18:57,879 Speaker 1: the question we're asking now is, you know, will it 426 00:18:57,880 --> 00:19:00,520 Speaker 1: be a buyer's market six months from now? That's almost 427 00:19:00,520 --> 00:19:03,480 Speaker 1: an impossible question to answer. But I'm not as confident 428 00:19:03,520 --> 00:19:05,879 Speaker 1: as your friends and your family members that the housing 429 00:19:05,920 --> 00:19:09,920 Speaker 1: market will continue to deteriorate. For one, mortgage rates are 430 00:19:09,960 --> 00:19:12,800 Speaker 1: incredibly low, and so that means that homes are more 431 00:19:12,840 --> 00:19:16,440 Speaker 1: affordable for everyone right now. But if folks hold out 432 00:19:16,560 --> 00:19:18,439 Speaker 1: due to the health crisis. There's a good chance that 433 00:19:18,480 --> 00:19:21,000 Speaker 1: there will be a lot of pence up demand to 434 00:19:21,119 --> 00:19:23,600 Speaker 1: buy six months from now or whenever we begin to 435 00:19:23,600 --> 00:19:26,400 Speaker 1: resume quote unquote normal life. Yeah, and at the same time, 436 00:19:26,400 --> 00:19:30,040 Speaker 1: housing inventory is low. It's been low for years, right, 437 00:19:30,080 --> 00:19:32,280 Speaker 1: There haven't been this few homes on the market since. 438 00:19:33,440 --> 00:19:35,720 Speaker 1: So while we could see a little dip in housing 439 00:19:35,760 --> 00:19:39,800 Speaker 1: prices as unemployment numbers increase, it's no guarantee. So if 440 00:19:39,840 --> 00:19:41,920 Speaker 1: you are under contract on a home that you love 441 00:19:42,080 --> 00:19:43,840 Speaker 1: and that you plan on living in for a long time, 442 00:19:44,240 --> 00:19:46,239 Speaker 1: I think matt our device would be go through with it. 443 00:19:46,320 --> 00:19:49,560 Speaker 1: Buy a home, take advantage of the uber low rates 444 00:19:49,640 --> 00:19:52,760 Speaker 1: right now, lock in a long term incredibly favorable mortgage 445 00:19:52,840 --> 00:19:54,800 Speaker 1: rate on a home that you really really want to 446 00:19:54,840 --> 00:19:57,080 Speaker 1: live in, and try not to think too much about 447 00:19:57,119 --> 00:19:59,520 Speaker 1: where home prices will be in the future. Yeah, Robin, 448 00:19:59,560 --> 00:20:01,760 Speaker 1: your question has had mostly to do with like the market, right, 449 00:20:01,800 --> 00:20:04,080 Speaker 1: And so there's basically two considerations that you want to 450 00:20:04,119 --> 00:20:06,080 Speaker 1: take into account if you're looking at a home. Personal 451 00:20:06,080 --> 00:20:08,800 Speaker 1: considerations and the market considerations. We don't really know what 452 00:20:08,880 --> 00:20:10,680 Speaker 1: the market is gonna do, and so what we want 453 00:20:10,680 --> 00:20:13,760 Speaker 1: to address specifically here is your you know, your personal considerations, 454 00:20:13,760 --> 00:20:15,439 Speaker 1: like if you guys really love the house by it, 455 00:20:15,640 --> 00:20:18,040 Speaker 1: if you guys are in a solid place financially right, 456 00:20:18,119 --> 00:20:20,199 Speaker 1: like if you've got plenty of cash for that down payment, 457 00:20:20,359 --> 00:20:22,919 Speaker 1: for furnishing that home, for any repairs that you might 458 00:20:22,960 --> 00:20:25,480 Speaker 1: have to make shortly after. Oh and in jobs as well, 459 00:20:25,560 --> 00:20:26,760 Speaker 1: like you want to make sure that you've got a 460 00:20:26,840 --> 00:20:30,000 Speaker 1: job that's you know, where you're gainfully employed and that's 461 00:20:30,000 --> 00:20:32,440 Speaker 1: going to be super solid for the foreseeable future. Um, 462 00:20:32,520 --> 00:20:34,120 Speaker 1: the last thing we would want for you to do 463 00:20:34,280 --> 00:20:36,960 Speaker 1: is to get a new mortgage and then eight twelve 464 00:20:36,960 --> 00:20:38,840 Speaker 1: months from now, you know it's your your strapped and 465 00:20:38,840 --> 00:20:40,960 Speaker 1: and you can't pay that mortgage payment because maybe you know, 466 00:20:41,000 --> 00:20:43,280 Speaker 1: one or both of you have lost your job. That 467 00:20:43,280 --> 00:20:45,280 Speaker 1: would be a really difficult position to be in. So 468 00:20:45,280 --> 00:20:47,080 Speaker 1: it's good to be aware to what the market's doing, 469 00:20:47,080 --> 00:20:49,600 Speaker 1: but don't forget about those personal factors as well. Yeah, 470 00:20:49,680 --> 00:20:51,680 Speaker 1: and depending on the price of the home, Matt, the 471 00:20:51,720 --> 00:20:54,760 Speaker 1: fact that the interest rate is incredibly low matters a lot. 472 00:20:54,920 --> 00:20:57,000 Speaker 1: If interest rates bumped up even just half a point, 473 00:20:57,320 --> 00:20:59,679 Speaker 1: that price reduction that you might end up getting if 474 00:20:59,720 --> 00:21:01,800 Speaker 1: the mark it did end up dipping, well, the lower 475 00:21:01,800 --> 00:21:04,520 Speaker 1: mortgage right might be even more impressive than a small 476 00:21:04,560 --> 00:21:07,120 Speaker 1: price concession. So yeah, that's an important factor and something 477 00:21:07,160 --> 00:21:09,720 Speaker 1: that's definitely in your corner right now, Robin, when you're 478 00:21:09,720 --> 00:21:11,880 Speaker 1: buying this home and Matt, on that note, we're talking 479 00:21:11,920 --> 00:21:14,240 Speaker 1: about getting a mortgage. I read a story this week 480 00:21:14,359 --> 00:21:17,320 Speaker 1: about lending standards going up, and I think I mentioned 481 00:21:17,320 --> 00:21:18,960 Speaker 1: that this might be the case a couple of weeks ago, 482 00:21:19,000 --> 00:21:21,119 Speaker 1: that we saw this after the Great Recession in two 483 00:21:21,160 --> 00:21:23,439 Speaker 1: thousand and eight. We saw we saw banks tightening their 484 00:21:23,520 --> 00:21:27,080 Speaker 1: lending standards and being more forcible in proving a good 485 00:21:27,080 --> 00:21:29,800 Speaker 1: credit score, decent income, stuff like that. You want to 486 00:21:29,840 --> 00:21:31,840 Speaker 1: know how difficult it was to buy your first home 487 00:21:31,880 --> 00:21:33,879 Speaker 1: as a small business owner that had been in business 488 00:21:33,920 --> 00:21:38,600 Speaker 1: for less than two years. Incredibly hard. Yeah, a personal experience. Man. 489 00:21:38,640 --> 00:21:40,480 Speaker 1: It was so staking hard for us to get approved 490 00:21:40,480 --> 00:21:42,199 Speaker 1: for a loan because we didn't have that history of 491 00:21:42,200 --> 00:21:44,680 Speaker 1: corporate tax returns to give to the banks, and so 492 00:21:44,800 --> 00:21:47,520 Speaker 1: it was so much work, a lot of manual underwriting 493 00:21:47,560 --> 00:21:50,160 Speaker 1: and them asking where every single dollar came from, which 494 00:21:50,200 --> 00:21:52,159 Speaker 1: we're seeing already. But yeah, I think we can expect 495 00:21:52,160 --> 00:21:54,640 Speaker 1: to see more of that. Yeah, and specifically Chase bank 496 00:21:54,840 --> 00:21:57,359 Speaker 1: is upping their credit score requirements. You have to have 497 00:21:57,359 --> 00:21:59,680 Speaker 1: at least a seven credit score, and you're gonna be 498 00:21:59,720 --> 00:22:03,800 Speaker 1: required to make you down payment equal to the home's value. So, Matt, 499 00:22:03,840 --> 00:22:06,000 Speaker 1: that's kind of what we recommend already is to try 500 00:22:06,000 --> 00:22:08,080 Speaker 1: to put down to have a good credit score, right 501 00:22:08,080 --> 00:22:09,719 Speaker 1: those but now they're making you do it. But now 502 00:22:09,720 --> 00:22:11,639 Speaker 1: they're making you do it, and your credit score is 503 00:22:11,640 --> 00:22:13,560 Speaker 1: going to become even more important as you seek a 504 00:22:13,560 --> 00:22:16,760 Speaker 1: mortgage with other lenders too. So just important to note 505 00:22:16,920 --> 00:22:19,960 Speaker 1: that if you are buying a home, pay special attention 506 00:22:20,119 --> 00:22:22,720 Speaker 1: to the requirements that a credit union or a bank 507 00:22:22,960 --> 00:22:25,719 Speaker 1: is is placing on you, and and shopping around might 508 00:22:25,720 --> 00:22:28,320 Speaker 1: become even more necessary, especially if you don't have that 509 00:22:28,400 --> 00:22:31,359 Speaker 1: high credit score. Uh, and you don't have that vast 510 00:22:31,400 --> 00:22:34,800 Speaker 1: savings to put down. Yeah, and aside from new home purchases, 511 00:22:35,280 --> 00:22:37,520 Speaker 1: you know, refinancing is is making more and more sense 512 00:22:37,520 --> 00:22:39,639 Speaker 1: for a greater number of folks as well. But again, 513 00:22:39,800 --> 00:22:42,720 Speaker 1: these increased lending standards could really make it difficult for 514 00:22:42,760 --> 00:22:45,040 Speaker 1: many folks who would benefit to be able to take 515 00:22:45,080 --> 00:22:48,159 Speaker 1: advantage of the low rates currently being offered. And at 516 00:22:48,160 --> 00:22:49,560 Speaker 1: the top of the episode, you know we're talking about 517 00:22:49,560 --> 00:22:51,840 Speaker 1: the stimulus checks we've we're mentioning how you know they 518 00:22:52,040 --> 00:22:54,199 Speaker 1: showed up on time, just as they were promised, and 519 00:22:54,240 --> 00:22:56,640 Speaker 1: so our next listener question has to do with that money, 520 00:22:56,640 --> 00:22:59,640 Speaker 1: specifically that a lot of us have already received. Kind 521 00:22:59,680 --> 00:23:02,880 Speaker 1: Jelan Matt, this is Lauren calling from Chicago. First off, 522 00:23:02,880 --> 00:23:05,160 Speaker 1: thanks so much for all the topics you've already covered. 523 00:23:05,440 --> 00:23:08,760 Speaker 1: Building off of episode one eight, could you dive into 524 00:23:08,840 --> 00:23:12,679 Speaker 1: possible tax implications of these stimulus checks. I've heard it's 525 00:23:12,720 --> 00:23:16,320 Speaker 1: alone grant and recently that it replaces our tax return 526 00:23:16,600 --> 00:23:19,840 Speaker 1: so that it might be beneficial to freeze tax decisions presently, 527 00:23:20,359 --> 00:23:21,919 Speaker 1: So I would love if you could dive into that. 528 00:23:22,119 --> 00:23:25,040 Speaker 1: Thanks so much and all of your help is appreciated. Lauren, 529 00:23:25,040 --> 00:23:26,879 Speaker 1: that's a great question. Yeah, we just talked about what 530 00:23:26,920 --> 00:23:29,520 Speaker 1: to do with your stimulus checks on episode, but we 531 00:23:29,560 --> 00:23:32,480 Speaker 1: didn't talk about the tax implications. We should have done it, yes, 532 00:23:32,520 --> 00:23:34,520 Speaker 1: So it is important to note these stimulus checks or 533 00:23:34,720 --> 00:23:39,520 Speaker 1: payments are not taxable income. They are structured as refundable 534 00:23:39,560 --> 00:23:41,800 Speaker 1: tax credits. So the good news is that the whole 535 00:23:42,680 --> 00:23:45,200 Speaker 1: if you're eligible for that amount, or a couple, or 536 00:23:45,240 --> 00:23:47,960 Speaker 1: if you've got eighteen kids and it's five bucks per kids. 537 00:23:48,160 --> 00:23:50,119 Speaker 1: That's that's a lot of money too. All of that 538 00:23:50,280 --> 00:23:52,520 Speaker 1: is yours, So use it wisely and know that you're 539 00:23:52,560 --> 00:23:55,439 Speaker 1: not going to be paying any sort of tax on 540 00:23:55,600 --> 00:23:58,080 Speaker 1: the stimulus money you're receiving. That's right. The stimulus checks 541 00:23:58,080 --> 00:24:02,040 Speaker 1: do not count towards your taxable income, unlike unemployment benefits. 542 00:24:02,320 --> 00:24:03,800 Speaker 1: That's something that we you know, a lot of folks 543 00:24:03,840 --> 00:24:05,560 Speaker 1: are receiving that they're gonna have to report as that 544 00:24:05,600 --> 00:24:08,480 Speaker 1: contributes to their income. But yeah, no income taxes on 545 00:24:08,480 --> 00:24:10,040 Speaker 1: this money. And so I think one of the reasons 546 00:24:10,080 --> 00:24:12,040 Speaker 1: too that we're seeing a lot of folks confused and 547 00:24:12,119 --> 00:24:14,119 Speaker 1: thinking that this is sort of like an advance on 548 00:24:14,119 --> 00:24:17,600 Speaker 1: the return is because of the fact that it's falling 549 00:24:17,600 --> 00:24:20,480 Speaker 1: on April fifte right, It's falling on a date that 550 00:24:20,600 --> 00:24:23,880 Speaker 1: is typically associated with a tax return with a refund, 551 00:24:24,119 --> 00:24:25,560 Speaker 1: and I think that's kind of gunking up the gears 552 00:24:25,560 --> 00:24:27,000 Speaker 1: a little bit. You know, folks are kind of getting 553 00:24:27,000 --> 00:24:29,480 Speaker 1: their wires crossed, and with the stimulus checks being based 554 00:24:29,520 --> 00:24:32,880 Speaker 1: on what we made previously right in nineteen, I've seen 555 00:24:32,880 --> 00:24:35,520 Speaker 1: some questions arise where folks are afraid that by making 556 00:24:35,560 --> 00:24:38,159 Speaker 1: more money this year in twenty that they're going to 557 00:24:38,280 --> 00:24:40,320 Speaker 1: have to owe some of this money back. That's also 558 00:24:40,440 --> 00:24:43,159 Speaker 1: not the case. This is purely based on previous year's returns. 559 00:24:43,320 --> 00:24:44,920 Speaker 1: And if you happen to make more money this year 560 00:24:45,040 --> 00:24:48,040 Speaker 1: somehow in twenty, well you're not going to end up 561 00:24:48,040 --> 00:24:49,960 Speaker 1: owing any of that money back to the government. So 562 00:24:50,000 --> 00:24:52,800 Speaker 1: no worries there. Yeah, that's helpful information. Map the way 563 00:24:52,800 --> 00:24:55,240 Speaker 1: our taxes are structured, there are are all sorts of 564 00:24:55,280 --> 00:24:57,439 Speaker 1: different things that we get. Is it a deduction, is 565 00:24:57,440 --> 00:24:59,359 Speaker 1: it a credit, is it a refund? Like what is 566 00:24:59,359 --> 00:25:01,760 Speaker 1: it in? Those are all all look differently when it 567 00:25:01,800 --> 00:25:03,600 Speaker 1: comes to our taxes, and so yeah, but this one 568 00:25:03,720 --> 00:25:06,439 Speaker 1: is specifically a credit, and once that money is in 569 00:25:06,480 --> 00:25:08,159 Speaker 1: your hands, you will not be taxed on it and 570 00:25:08,160 --> 00:25:10,200 Speaker 1: it can never be clawed back. So yeah, great news 571 00:25:10,280 --> 00:25:13,360 Speaker 1: for all of us, right chedule. Interestingly, in the bank 572 00:25:13,359 --> 00:25:16,560 Speaker 1: account where I received our stimulus check, that deposit, it 573 00:25:16,600 --> 00:25:18,800 Speaker 1: was actually labeled as a refund. It was so it's 574 00:25:18,800 --> 00:25:21,359 Speaker 1: a refundable tax credit. It had that r e F, 575 00:25:21,440 --> 00:25:23,879 Speaker 1: which I assume is refund. Maybe it means reference to 576 00:25:23,960 --> 00:25:26,640 Speaker 1: something else. I don't know, but what I thought, I thought, 577 00:25:26,640 --> 00:25:28,280 Speaker 1: Oh cool, refund, And you know, I r s. It 578 00:25:28,320 --> 00:25:30,640 Speaker 1: was all there. But yeah, hopefully if you haven't received 579 00:25:30,680 --> 00:25:32,639 Speaker 1: yours already, you are, Let's hope darn all of our 580 00:25:32,640 --> 00:25:35,000 Speaker 1: accounts shortly. So all right, man, that's gonna do it 581 00:25:35,040 --> 00:25:37,440 Speaker 1: for this episode. For folks who want more money info, 582 00:25:37,480 --> 00:25:39,879 Speaker 1: head to our website how to money dot com. All right, buddy, Well, 583 00:25:39,880 --> 00:25:42,440 Speaker 1: that's gonna be it until next time. Best friends out, 584 00:25:42,560 --> 00:25:43,280 Speaker 1: Best Friends Out,